Stock code: 600415 Stock short name: СÉÌÆ·³Ç
Zhejiang China Commodities City Group Co., Ltd.
Semi-annual Report 2020
Important Note
1. The Board of Directors, the Board of Supervisors, directors, supervisorsand senior officers of the Company warrant that the informationcontained in this Semi-annual Report is true, accurate and complete andthis Semi-annual Report is free from any misrepresentation, misleadingstatement or material omission, and agree to assume joint and severalliability therefor.
2. All directors of the Company attended the meeting of the Board ofDirectors.
3. This Semi-annual Report has not been audited.
4. ZHAO Wenge, head of the Company, WANG Dong, the person in charge of
accounting and ZHAO Difang, the person in charge of the accountingbody (head of accounting) represent that the financial statementscontained in this Semi-annual Report are true, accurate and complete.
5. Is there any profit distribution proposal or capital reserve conversion
proposal for the reporting period that has been deliberated by the Boardof Directors?No
6. Risk statement with forward-looking representations"¡Ì Applicable" ¡õN/AThe forward-looking representations involved in this Report such as future plansand development strategies do not constitute the Company¡¯s substantialcommitments to investors. Investors shall watch out for the investment risks.
7. Is the Company¡¯s cash occupied by its controlling shareholder or any ofits affiliates for non-operational purposes?No
8. Has the Company provided external guarantee in violation of theprescribed decision-making procedures?No
9. Reminder of major risks
The Company has described the risks that may exist in this Report in details.Please read ¡°Potential Risks¡± in ¡°Section IV Analysis of Business Status¡± of thisReport.
10. Others
¡õApplicable ¡ÌN/A
Table of Contents
Section I Definitions ...... 5
Section II Company Profile and Financial Highlights ...... 6
Section III Operational Highlights ...... 10
Section IV Analysis of Business Status ...... 12
Section V Significant Matters ...... 37
Section VI Changes in common shares and shareholders ...... 54
Section VII Preferred Shares ...... 59
Section VIII Directors, Supervisors and Senior Officers ...... 60
Section IX Corporate Bonds ...... 62
Section X Financial Report ...... 67
Section XI Documents for Inspection ...... 214
Section I DefinitionsFor the purpose of this Report, unless otherwise stated in the context, the followingterms shall have the following meanings:
Definitions | ||
Yiwu SASAO | means | State-owned Assets Supervision and Administration Office of the People¡¯s Government of Yiwu |
SCO | means | Yiwu State-owned Capital Operation Co., Ltd. |
MDG | means | Yiwu Market Development Group Co., Ltd. |
CCCH | means | Yiwu China Commodities City Holdings Limited |
CCCP | means | Yiwu China Commodities City Property Development Co., Ltd. |
CCCF | means | Yiwu China Commodities City Financial Holdings Co., Ltd. |
IT Company | means | Yiwu China Commodities City Information Technology Co., Ltd. |
Yiwugou | means | Zhejiang Yiwugou E-commerce Co., Ltd. |
Payment Network Company | means | Yiwu China Commodities City Payment Network Technology Co., Ltd. |
Huishang Micro-finance | means | Yiwu Huishang Micro-finance Co., Ltd. |
Haicheng Company | means | Haicheng Yiwu China Commodities City Investment Development Co., Ltd. |
Binjiang Shangbo | means | Hangzhou Binjiang Shangbo Property Development Co., Ltd. |
Yiwu Shanglv | means | Yiwu Shanglv Investment Development Co., Ltd. |
Chouzhou Financial Lease | means | Zhejiang Chouzhou Financial Lease Co., Ltd. |
Yiwu Shangbo | means | Yiwu Shangbo Property Co., Ltd. |
Gongchen Shangbo | means | Yiwu Gongchen Shangbo Property Co., Ltd. |
Sunac Xinheng | means | Sunac Xinheng Investment Group Co., Ltd. |
Huangyuan Shangbo | means | Yiwu Huangyuan Shangbo Property Co., Ltd. |
Yongtongchang | means | Beijing Dongxing Yongtongchang Investment Management Co., Ltd. |
The Company, the Listed Company or the Group | means | Zhejiang China Commodities City Group Co., Ltd. |
Section II Company Profile and Financial HighlightsI Company profile
Chinese name | Õã½ÖйúСÉÌÆ·³Ç¼¯ÍŹɷÝÓÐÏÞ¹«Ë¾ |
Chinese short name | СÉÌÆ·³Ç |
English name | Zhejiang China Commodities City Group Co.,Ltd |
English short name | YIWUCCC |
Legal representative | ZHAO Wenge |
II Contact information
Board Secretary | Securities Affairs Representative | |
Name | XU Hang | RAO Yangjin |
Address | Haiyang Business Building, No.105 Futian Road, Yiwu | Haiyang Business Building, No.105 Futian Road, Yiwu |
Telephone | 0579-85182812 | 0579-85182812 |
Fax | 0579-85197755 | 0579-85197755 |
Hxu@cccgroup.com.cn | Hxu@cccgroup.com.cn |
III Change of basic information
Registered address | Haiyang Business Building, No.105 Futian Road, Yiwu, Zhejiang Province |
Postal code at the registered address | 322000 |
Office address | Haiyang Business Building, No.105 Futian Road, Yiwu, Zhejiang Province |
Postal code at the office address | 322000 |
Corporate website | www.cccgroup.com.cn |
600415@cccgroup.com.cn | |
Search index for the change during the reporting period | www.sse.com.cn |
IV Change of media for information disclosure and place for keeping the
financial reports
Newspaper selected by the Company for information disclosure | China Securities Journal, Shanghai Securities News and Securities Times |
Website designated by the CSRC for publishing the Semi-annual Report | www.sse.com.cn |
Place for keeping the Company¡¯s Semi-annual Report | Securities Department of the Company |
Search index for the change during the reporting period | www.sse.com.cn |
V Stock profile
Type of stock | Exchange | Stock short name | Stock code | Stock short name |
before change | ||||
A share | Shanghai Stock Exchange | СÉÌÆ·³Ç | 600415 | None |
VI Other information
¡õApplicable ¡ÌN/A
VII Major accounting data and financial indictors
1. Major accounting data
Unit: RMB
Major accounting data | Current reporting period (Jan-Jun 2020) | Reporting period of Jan-Jun 2019 | YoY change (%) |
Revenue | 2,121,448,794.31 | 1,803,596,554.74 | 17.62 |
Net profits attributable to shareholders of the Listed Company | 719,595,308.66 | 673,681,239.39 | 6.82 |
Net profits attributable to shareholders of the Listed Company with non-recurring items excluded | 602,193,801.96 | 482,601,595.46 | 24.78 |
Net cash flow from operating activities | -703,066,700.16 | -75,834,031.89 | |
Jun 30, 2020 | Jun 30, 2019 | YoY change (%) | |
Net assets attributable to shareholders of the Listed Company | 13,717,404,294.28 | 13,020,619,449.36 | 5.35 |
Total assets | 31,974,312,343.63 | 31,323,233,994.44 | 2.08 |
2. Major financial indictors
Major financial indicators | Current reporting period (Jan-Jun 2020) | Reporting period of Jan-Jun 2019 | YoY change (%) |
Basic EPS (RMB) | 0.13 | 0.12 | 8.33 |
Diluted EPS (RMB) | 0.13 | 0.12 | 8.33 |
Basic EPS with non-recurring items excluded (RMB/share) | 0.11 | 0.09 | 22.22 |
Weighted average ROE (%) | 5.38 | 5.54 | -0.16 percentage points |
Weighted average ROE with non-recurring items excluded (%) | 4.50 | 3.97 | +0.53 percentage points |
Illustration on major accounting data and financial indicators
¡ÌApplicable ¡õN/A
1. The Company¡¯s revenue increased by RMB318mn YoY, mainly due to YoYincrease in the revenue from the sales of goods by the supply chain and import &export companies during the current period.
2. The net profits attributable to shareholders of the Listed Company withnon-recurring items excluded grew by RMB120mn YoY, mainly due to the YoYincrease in the revenue from booth auction and admission fees and the YoY declinein depreciation and amortization.
3. The net cash flow from operating activities shrank by RMB627mn YoY, mainlydue to the YoY increase of RMB496mn in time deposit and the YoY increase ofRMB152mn in taxes paid.VIII Differences in accounting data between foreign and Chinese accounting
standards
¡õApplicable ¡ÌN/A
IX Non-recurring items and amounts thereof
¡ÌApplicable ¡õN/A
Unit: RMB
Non-recurring items | Amount | Remark (if applicable) |
Gain or loss from the disposal of non-current assets | 57,619,261.54 | Mainly the investment income from the disposal of subsidiaries and related claims |
Tax refund or credit due to approval beyond the authority or without official approval or contingent tax refund or credit | ||
Government grants that are recognized in the current profit or loss, excluding the government grants that are closely related to the normal operation of the Company and are provided in a fixed amount or quantity continuously according to the national polices and certain standards | 13,526,949.49 | Employment stabilization subsidy and refund of RMB5.9167mn, additional VAT deduction (+10%) of RMB2.6042mn, amortization of the subsidy for the data construction and operation of the information center of RMB1.5mn, hardware exhibition subsidy of RMB0.6mn, new and high-tech award of RMB0.6mn in 2019, provincial service demonstration zone award of RMB0.55mn in 2019, additional R&D input deduction of RMB0.9781mn in 2018 and interest subsidy for the construction of the international exhibition center of RMB0.5774mn |
Cash occupation fees charged from non-financial enterprises that are recognized in the current profit or loss | 48,341,409.06 | Cash occupation fees charged for the financial assistance provided to Yiwu Shanglv, Chengzhen Property and Gongchen Property |
Gain or loss from changes in fair value of held-for-trading financial assets, derivative financial assets, financial liabilities held for trading and derivative financial liabilities, and investment income from the disposal of held-for-trading financial assets, derivative financial assets, financial liabilities held for trading, derivative financial liabilities | 41,552,057.16 | RMB20.1935mn of gains from changes in fair value of derivative financial assets, RMB20.5mn of investment income from the disposal of financial assets held for trading, RMB0.689mn of income from the purchase of wealth management products, and RMB0.1696mn of income from IPO subscription |
and other debt instruments, except for effective hedging during the ordinary course of business | ||
Net income from other non-operating activities | -2,477,321.94 | Mainly external donation of RMB2.7314nm and confiscated margin and penalty of RMB0.3311mn |
Effect of minority interest | -1,082,219.35 | |
Effect of income tax | -40,078,629.26 | |
Total | 117,401,506.70 |
X Others
¡õApplicable ¡ÌN/A
Section III Operational Highlights
I Main business, business model and industry situation during thereporting periodAccording to the definitions in the Guidelines for Industry Classification of ListedCompanies (revised in 2012) released by the CSRC, the Company is engaged in¡°Business Service¡± (L72) in ¡°Lease and Business Service¡± (L).II Material changes in major assets during the reporting period
¡õApplicable ¡ÌN/A
III Analysis of core competencies during the reporting period
¡ÌApplicable ¡õN/A
1. First-mover advantages
At the start of China¡¯s reform and opening-up, Yiwu took the lead in establishing thecommodities market. During the recent forty years, the market has been upgradedfive times and expanded ten times and has been among the top comprehensivenational markets with the highest turnover, pointing to its remarkable first-moveradvantages. As the largest commodities distribution center in the world, the Yiwucommodities market provides more than 2mn products, which fall in 26 categoriesand supports one-stop purchase. The market boasts enormous resources and hugebusiness flow, goods flow, cash flow and information flow.
2. Brand advantages
¡°Yiwu China Commodities City¡± is the first market identified by the SAIC as awell-known trademark among the national commodities trading markets. TheCompany has taken multiple measures to give play to the brand of ¡°Yiwu ChinaCommodities City¡± and is committed to improving its influence and leading role inthe industry. Its brand advantages and influence have kept enhancing.
3. Auxiliary services advantages
The People¡¯s Government of Yiwu has been providing policy support for thedevelopment of the market for years, and the auxiliary industries are developingrapidly in Yiwu.
(1) Convenient logistics system
Yiwu has in place perfect commerce and trade auxiliary facilities and advantageouslogistics service. The logistics network has full coverage in Yiwu. A large number of
large-sized international and domestic express delivery and logistics companieshave regional distribution centers in Yiwu, and a world-oriented goods transport anddistribution network has been established. Yiwu has been listed among the¡°commerce and trade-oriented national logistics hubs¡± by the National Developmentand Reform Commission and the Ministry of Transport.
(2) Industry support
During the recent years, thanks to the Yiwu China Commodities City, theYiwu-centered manufacturing industry cluster has been developing fast, ancommodities industrial belt that is centered in Yiwu and covers Jinhua, Lishui,Quzhou, Hangzhou, Jiaxing, Taihu, Shaoxing, Ningbo, Wenzhou and Taizhou withan area of nearly 10,000 sq.m has been established, and a benign mechanismunder which the Yiwu wholesales market and the peripheral industry clusterdevelop together has been formed.
(3) Support from exhibition service
The major international trade exhibitions held by the Company¡¯s exhibition businessdivision such as China Yiwu International Commodities Fair, China YiwuInternational Forest Products Fair, China Yiwu International Imported CommoditiesFair and China Yiwu Hardware and Electrical Expo support and cultivate verticalexhibition in multiple industries such as stationery and textiles, have developedmultiple professional and international exhibition brands, and are important nationalplatforms for the China Commodities City to lead industry development, develop thecity economy and maintain the clusters of traders and commodities.
(4) Diversified businesses
The Company has strengthened its presence in the related industries, made effortson financial investment, kept developing the exhibition business, created a newe-commerce model, developed the hotel business and also run international trade,modern logistics, advertising information, shopping and tourism businesses. It hascreated a group structure and profit-making model of shared and interactivedevelopment of market resources.
(5) Management advantages
In terms of personnel, management and technology, excellent operation andmanagement ability is one of the core competences of the Company as aprofessional market operating company. The Company has developed a series ofperfect management systems for market operation and management, accumulatedrich experience in operation and management, and has cultivated a professionalmanagement team with reasonable knowledge and expertise structures andstrategic development insights.
Section IV Analysis of Business StatusI Analysis of business statusDuring the reporting period, the Company generated revenue of RMB2.121bn, upRMB318mn or 17.62% YoY, profits before tax of RMB993mn, up RMB117mn or
13.34% YoY and net profits attributable to shareholders of parent company ofRMB720mn, up RMB46mn or 6.82% YoY from the RMB674mn during the sameperiod of 2019.1 Market operation
(1) Remarkable achievements in the development of domestic trade(a) Domestic purchasers have kept concentrating. The Company has actively ¡°goneout¡± for purchasers and regularly matched merchants with downstream purchasersin line with the distribution of the domestic markets. Since the market was openedthis year, the Company has sent 20 teams to 27 provinces and cities across thecountry and attracted nearly 180,000 domestic purchasers. The average dailyincrease in the number of approved purchasers since Apr approaches 10,000. Theintroduction of purchasers is very productive.(b) The domestic trade system has been taking shape at an accelerating pace. TheCompany has selected the secondary markets with which it can deepencooperation and promoted the brands such as Yiwu Haohuo and ICMall importedgoods in the forms of brand licensing, resources swap and business cooperation.By far, it has reached a cooperation intent or agreement with 100 entities toformulate a domestic trade system which is led by the Yiwu market and supportedby downstream markets and features mutualism among all parties.(c) The new exhibition trade model has worked. The Company has organizedindustry associations to hold new products releases both online and offline, and 21of such releases have been held, covering 29 industries, 19,800 new products and615,000 professional purchasers. Especially, an epidemic prevention and controlcommodities exhibition was successfully held and attracted 308,000 purchasers.(d) The ¡°Market Long March¡± campaign has been progressing steadily. Relying onthe networks of the secondary and tertiary markets, the Company has given play tothe role of commerce chambers as pacesetters in the development of domestictrade and launched the ¡°Market Long March¡± and ¡°Yiwu Haohuo Long March¡±campaigns to expand its share in domestic trade. It has successfully held 10 tradematchmaking events in Guiyang, Jingdezhen, Linyi and Huaihua and plans tocomplete 20 trade matchmaking events in 2020.
(2) Innovation and breakthroughs in the stabilization of foreign trade
(a) The trade matching function of overseas outlets has been strengthening. On thetop of outlets construction overseas, the Company has made use of its overseaswarehouses and ¡°Bring You to China¡± exhibition halls and expanded thecommodities display function of its overseas warehouses and the export matchingfunction of ¡°Bring You to China¡± exhibition halls to facilitate overseas purchasers¡¯sample inspection, order placement and goods pickup and enable overseaspurchasers to make purchases locally. By far, nearly 10,000 SKUs of goods havebeen displayed in the Czech, Dubai and Rwanda exhibition halls, and fit-out is inprogress in the Japanese outlet.(b) The stocking-up program for overseas warehouses has been progressingsteadily. The Company has given play to its role as a market maker and its creditadvantages as a state-owned enterprise to actively cooperate with the overseaswarehouses and outstanding overseas Chinese in and outside Yiwu. It hastransported merchants¡¯ goods to the overseas warehouses in advance on credit orsupplied goods to outstanding overseas Chinese on credit to achieve saleimmediately upon the recovery from the epidemic overseas. By far, it hascooperated with 224,000 sq.m of overseas warehouses and exported RMB1.1bnworth of goods.(c) Proprietary import trade has been developing at an accelerating pace. On thesupply side, the number of SKUs increased by more than 2,400 to over 10,000, andthe Company has signed contracts with 14 overseas brands; on the distribution side,the number of domestic offline distribution outlets increased by 52 to 258, theturnover of ICMall flagship store on Kaola Global exceeded RMB7mn, ICMallflagship stores on Chinagoods and Tmall Global were launched; on the service side,the Company signed import supply chain financial transactions of nearly RMB70mnin 1H20.
(3) Accelerating online and offline integration
(a) The construction of Yiwu CCC comprehensive trade services platform(Chinagoods) has been accelerated. The Company has been developing an onlinecomprehensive trade services platform that integrates online display and trade,smart warehousing and logistics, digital customs clearance, inspection, currencyexchange and tariff payment, online payment and settlement, supply chain financeand data-empowered production and puts all processes and scenarios online. Theproject was officially launched at the end of Feb. The Version 1.0 has been releasedfor testing and more than 18,000 merchants were invited to the first round of testing.By far, the platform has collected the information on more than 50,000 merchantsand nearly 900,000 products, and has been available for such trading functions asproduct display, livestreaming, navigation and payment, as well as the basicfunctions such as booth rent reduction, online application for business license,application for parking space and questionnaire. The Version 2.0 (web version) was
released for testing on Jun 8. The Company¡¯s ability to empower small andmicro-sized enterprises across the world with digitalization has been improving atan accelerating pace.(b) E-commerce livestreaming has been penetrating into the market. The Companyhas strongly promoted livestreaming in the China Commodities Market. By far, themerchants have held 19,000 independent livestreaming shows and invited morethan 4,500 Internet influencers to make more than 33,000 livestreaming shows. TheCompany has built a 21-floor building with a total floor area of 25,000 sq.m. to serveas an Internet influencer livestreaming industry park. The park has accommodated268 suppliers and 30 Internet influencer livestreaming cooperation institutions. Ithas launched the online ¡°trade lecture¡± cloud class, completed 513 trainingsessions on live commerce and provided offline or online training for more than
2.05mn persons.
(c) The online exhibition model has made substantial progress. The Company¡¯sonline exhibition platform has been in place. It supports online negotiation, onlinetrading, zero touch and cloud signing via information tools such as data matching,information transfer and real-time communication and thereby puts the exhibitionsonline. The online hardware and electrical expo was successfully held with 1,095exhibitors, 145,000 purchasers, 398,000 visits and more than RMB12mn ofturnover.
(4) Breakthroughs in a batch of functional supporting projects
(a) The Company has been building a comprehensive bonded zone up to highstandards. The Company has focused on developing bonded exhibition and tradeand bonded logistics, innovated the data-driven, market-interactive andindustry-supported comprehensive bonded zone construction model andcooperated with Alibaba to build an eWTP digital comprehensive bonded zone. Itwill build a warehousing, exhibition and sale-integrated new-type bonded importmarket within the zone, develop a bonded industry belt in coordination with otherregions, and establish a digital trade ecosystem that connects the domestic andoverseas markets. Currently, it has completed the Phase I warehouse design and aclassified supervised warehousing business plan, formulated an electronic fencesupervision plan, preliminary planning for the electronic fence pilot area and adesign plan for the public area of the electronic fence pilot area, signed an eWTPYiwu joint venture cooperation agreement with Alibaba on worldwide developmentof digital trade, and introduced 80 traders into the bonded zone, new-type importmarket and pilot area.(b) The Company has been planning on building a ¡°future market¡± in the east of thefifth section. It has been planning on developing a global digital free trade centerthat integrates R&D, design, brand incubation, sampling, customization, intelligentfashion, exhibition trade, Internet influencer livestreaming, new sale exhibition,
trade service, office and living. Currently, it has completed the overall planning ofthe project.(c) The Company has accelerated the construction of a temporary storage park inthe south of the fifth section. It has planned to build a supply chain base storagepark with a total area of 100,000 sq.m. The project is about to come underconstruction upon the approval of the local government.(d) The Company has been building a new Binwang commerce and trade complex.It has been developing a new-generation innovative commodities operation marketthat integrates ¡°design innovation, new wholesale and new retail¡± in the Section Band E of the Binwang market and is going to make it a replicable and generalizablemodel. Currently, Section B has been open for business and has 64 merchants; theglobal living hall in the Section E has been renovated and will officially open on Sep1, 2020 according to the schedule.2 Active fulfillment of social responsibilities
(1) Progressive achievements in epidemic prevention and control(a) The Company has developed an epidemic prevention and control system thatcan be replicated and generalized. Led by the epidemic prevention and controlauthority and market authority of Yiwu, the Company has taken precision andintelligent prevention and control measures that are based on standardization,access control, prohibition, patrolling and informatization, built a ¡°Party building +unit¡± combat system and developed an epidemic prevention and control networkconsisting of three-tier ¡°pyramid¡± combat units and 1762 minimum combat units tosecure global purchase. Those practices have been praised by the leaders of theprovincial Party committee and provincial government, and the Ministry ofCommerce has published an article to promote them nationwide.(b) The Company has achieved orderly resumption and stable operation of the Yiwumarket. Subject to proper epidemic prevention and control, the Yiwu market hasbeen reopened in a stable and orderly manner in three batches. The first batch ofmerchants were reopened on Feb 18 and the entire market was reopened on Mar 1.The Yiwu market was among the first markets that reopened in China. On Mar 13,Premier Li Keqiang made a video call to the Yiwu market, praised its resumptionand hoped that the market could effectively expand the domestic demand, makeefforts to maintain its share in the global market and become a symbol of China¡¯sforeign trade. Currently, the market is recovering strongly. The number of daily visitsis stably above 100,000, equivalent to around 70% of that during the same period ofthe previous years, and the opening rate is higher than 93% among the merchants.The merchants are generally confident.
(2) Implementation of enterprise benefiting policies
(a) The loan-to-value ratio for booth mortgage has been raised. Since the outbreakof the COVID-19 epidemic, the Company has raised the loan-to-value ratio to 100%for booth mortgage. Since the market was opened this year, it has handled 1815booth mortgage loans with a total amount of RMB1.04bn, further expanding thefinancing channels for the merchants.(b) Market resumption loans have been offered. It obtained RMB1bn marketresumption loans from the Zhejiang branch of the Import-Export Bank at apreferential rate of 3.5-3.9% to support work and production resumption by themerchants in the market, which eased the financing pressure on the merchantsduring the epidemic.(c) The merchants were exempted from booth rents for two months. With theincreasing impact of the epidemic on trade, the Company, following CCCH¡¯s rentexemption policy, exempted the merchants from the booth rents for Feb and Mar.As a result, the merchants were exempted from nearly RMB350mn rents in total.The rent exemption has stabilized the market, trade and development.II Operating status during the reporting period1 Analysis of main business
(1) Analysis of the changes to the items in the financial statement
Unit: RMB10,000
Item | Current reporting period of Jan-Jun 2020 | Reporting period of Jan-Jun 2019 | YoY change (%) |
Revenue | 212,144.88 | 180,359.66 | 17.62 |
Cost of sales | 86,922.76 | 64,268.28 | 35.25 |
Sales expenses | 8,788.71 | 4,737.51 | 85.51 |
Administrative expenses | 13,045.09 | 11,642.62 | 12.05 |
Financial expenses | 9,127.19 | 8,770.55 | 4.07 |
R&D expenses | 1,708.12 | 596.77 | 186.23 |
Net cash flow from operating activities | -70,306.67 | -7,583.40 | N/A |
Net cash flow from investing activities | 61,702.57 | -261,498.15 | N/A |
Net cash flow from financing activities | 13,001.06 | 257,231.06 | -94.95 |
Reasons for the change to revenue: mainly YoY increase in the revenue from salesof goods by the supply chain and import and export companies during the currentperiod, as well as the increased recognized revenue from auction from the previousyear and the increased admission fees.Reasons for the change to cost of sales: mainly YoY increase in the cost of sales ofthe supply chain and import and export companies during the current period.Reasons for the change to sales expenses: increased expenses on informatization
construction, advertising and epidemic prevention and control.Reasons for the change to administrative expenses: increased amortization ofintangible assets, salaries and office expenses.Reasons for the change to financial expenses: increased interest expenses.Reasons for the change to R&D expenses: increased spending on R&D.Reasons for the change to net cash flow from operating activities: mainly the YoYincrease of RMB496mn in time deposit and the YoY increase of RMB152mn intaxes paid.Reasons for the change to net cash flow from investing activities: YoY decline ofRMB2.518bn in the purchase of wealth management products, YoY decline ofRMB1.006bn in lending to joint ventures, and YoY increase of RMB683mn in thepurchase and construction of long-term assets.Reasons for the change to net cash flow from financing activities: YoY decline ofRMB1.034bn in borrowing, YoY decline of RMB1.8bn in bond issuance, YoY declineof RMB225mn in debt repayment and YoY decline of RMB167mn in dividenddistribution and interest payment.
(2) Others
(a) Material changes to the components or sources of profits
¡ÌApplicable ¡õN/A
Unit: RMB
Item | Jan-Jun 2020 | Jan-Jun 2019 | YoY change | Percentage change ¡À% |
Market operation | 1,009,159,906.85 | 833,798,603.24 | 175,361,303.61 | 21.03 |
Sales of goods | -5,694,034.94 | -710,273.07 | -4,983,761.87 | N/A |
Real estate sales | -5,656,548.46 | 54,118,896.23 | -59,775,444.69 | -110.45 |
Hotel service | -21,014,757.95 | -12,079,021.78 | -8,935,736.17 | N/A |
Exhibition and advertising | -23,032,242.66 | -7,305,354.72 | -15,726,887.94 | N/A |
Other businesses | 39,266,533.26 | 8,317,866.20 | 30,948,667.06 | 372.07 |
Profits before tax | 993,028,856.10 | 876,140,716.10 | 116,888,140.00 | 13.34 |
i. The profits of market operation grew by RMB175mn YoY, mainly due to the YoYincreased revenue from booth auction and admission fees and the YoY decreaseddepreciation and amortization.ii. The profits of real estate sales shrank by RMB60mn, mainly due to the YoYdeclined delivery of He Tang Yue Se, Pujiang Lv Gu and Jiangxi Shangbo.
(b) Others
¡õApplicable ¡ÌN/A
2 Material changes to profits caused by non-main businesses
¡õApplicable ¡ÌN/A
3 Analysis of assets and liabilities
¡ÌApplicable ¡õN/A
(1) Assets and liabilities
Unit: RMB10,000
Item | Amount at the end of the current period | % of total assets at the end of the current period | Amount at the end of the same period of 2019 | % of total assets at the end of the same period in 2019 | YoY change (%) | Reasons for change |
Cash and cash equivalents | 718,017.55 | 22.46 | 648,640.87 | 20.71 | 10.70 | |
Held-for-trading financial assets | 3,209.25 | 0.10 | 3,807.77 | 0.12 | -15.72 | |
Accounts receivable | 22,923.47 | 0.72 | 1,603.11 | 0.05 | 1,329.94 | Mainly the YoY increase in the accounts receivable from the sales of goods by the import and export company |
Prepayments | 18,382.17 | 0.57 | 4,467.82 | 0.14 | 311.43 | Mainly the increased prepayments by the import and export company |
Other receivables | 250,124.13 | 7.82 | 139,722.84 | 4.46 | 79.01 | Mainly the recovery of lending to Gongcheng Shangbo during the current period |
Inventory | 453,268.80 | 14.18 | 429,606.14 | 13.72 | 5.51 | |
Other current assets | 87,205.61 | 2.73 | 309,995.59 | 9.90 | -71.87 | Changeover of the prepaid land fees for Chezhan Road after full payment |
Long-term receivables | 9,365.04 | 0.29 | 6,125.00 | 0.20 | 52.90 | Better Silk Road¡¯s lending of RMB32.4mn to the joint venture |
Long-term equity investment | 190,672.88 | 5.96 | 177,142.01 | 5.66 | 7.64 | |
Other equity instruments investment | 63,340.81 | 1.98 | 64,218.80 | 2.05 | -1.37 | |
Other non-current financial assets | 155,741.86 | 4.87 | 151,944.94 | 4.85 | 2.50 | |
Property investment | 233,518.16 | 7.30 | 186,321.84 | 5.95 | 25.33 | |
Fixed assets | 530,689.80 | 16.60 | 478,381.91 | 15.27 | 10.93 | |
Construction in progress | 33,657.92 | 1.05 | 86,575.46 | 2.76 | -61.12 | Mainly the recognition of the auxiliary project in western Yiwu as fixed assets |
Intangible assets | 383,607.25 | 12.00 | 345,613.72 | 11.03 | 10.99 | |
Long-term prepaid expenses | 10,589.46 | 0.33 | 13,950.24 | 0.45 | -24.09 | |
Deferred income tax assets | 17,041.73 | 0.53 | 18,040.48 | 0.58 | -5.54 | |
Other non-current assets | 16,075.33 | 0.50 | 66,164.87 | 2.11 | -75.70 | Mainly the recognition of the prepaid land fees for Zhongfu Square as property investment |
Short-term borrowings | 357,747.42 | 11.19 | 417,890.37 | 13.34 | -14.39 | |
Notes payable | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |
Accounts payable | 69,047.72 | 2.16 | 52,524.15 | 1.68 | 31.46 | Mainly the increased accounts payable by the supply chain company during the current period |
Advances from customers | 1,867.30 | 0.06 | 450,845.51 | 14.39 | -99.59 | Reclassification of the items under the new principles |
Payroll payable | 7,102.62 | 0.22 | 19,717.44 | 0.63 | -63.98 | Mainly the payment of payroll payable recognized at the end of the previous period during the current period |
Tax payable | 8,648.25 | 0.27 | 28,018.43 | 0.89 | -69.13 | Payment of some taxes for 2019 during the current period |
Other payables | 75,947.42 | 2.38 | 90,948.31 | 2.90 | -16.49 | |
Contract liabilities | 440,375.50 | 13.77 | 0.00 | 0.00 | N/A | Reclassification of the items under the new principles |
Non-current liabilities due within one year | 32,036.48 | 1.00 | 27,033.24 | 0.86 | 18.51 |
Other current liabilities | 304,282.07 | 9.52 | 202,301.21 | 6.46 | 50.41 | Mainly the issuance of RMB2bn of super-short-term commercial paper and repayment of RMB1bn during the current period |
Long-term borrowings | 37,044.88 | 1.16 | 53,069.43 | 1.69 | -30.20 | Mainly the repayment of long-term borrowings due during the current period |
Bonds payable | 462,515.02 | 14.47 | 456,429.14 | 14.57 | 1.33 | |
Estimated liabilities | 11,062.03 | 0.35 | 11,062.00 | 0.35 | 0.00 | |
Deferred income | 2,875.60 | 0.09 | 2,796.68 | 0.09 | 2.82 | |
Deferred income tax liabilities | 11,585.41 | 0.36 | 11,257.43 | 0.36 | 2.91 |
Other statementsNone
(2) Encumbrances on major assets as of the end of the reporting period
¡ÌApplicable ¡õN/A
Unit: RMB
Item | At the end of Jun 2020 | At the end of 2019 |
Cash and cash equivalents | 209,493,305.80 | 56,196,102.62 |
Long-term equity investment | 102,918,559.00 | 102,918,559.00 |
Other non-current financial assets | 617,511,352.00 | 617,511,352.00 |
Total | 929,923,216.80 | 776,626,013.62 |
1. On Jun 30, 2020, its title or use right of the bank deposit with book value ofRMB209,493,305.80 (RMB56,196,102.62 on Dec 31, 2019) was restricted sincethe deposit was used as security for house mortgage loans and as funds for thesupervision of advance sales of houses.
2. On Jun 30, 2020, its long-term equity investment with book value of RMB102,918,559.00 (RMB102,918,559.00 on Dec 31, 2019) and other non-currentfinancial assets with book value of RMB617,511,352.00 (RMB617,511,352.00 onDec 31, 2019) were frozen by Shanghai Municipal Bureau of Public Security. Fordetails, please see XIV-2. Contingencies.
(3) Other statements
¡õApplicable ¡ÌN/A
4 Analysis of investments
(1) Overview of external equity investment
¡ÌApplicable ¡õN/A
At the end of Jun 2020, the Company¡¯s external investment totaledRMB4.129648bn (including RMB32.0925mn of held-for-trading financial assets,RMB633.4081mn of investment in other equity instruments, RMB1.5574186bn ofother non-current financial assets and RMB1.9067288bn of long-term equityinvestment), increasing by RMB158.5128mn or 3.99% from the RMB3.9711352bnat the end of 2019 (including RMB38.0777mn of held-for-trading financial assets,RMB642.188mn of investment in other equity instruments, RMB1.5194494bn ofother non-current financial assets and RMB1.7714201bn of long-term equityinvestment). The main changes are as follows.(a) During this reporting period, the Company made new long-term equityinvestment of RMB125.3859mn, including RMB90mn in Yiwu Hongyi EquityInvestment Fund Partnership (limited partnership), RMB20mn in Yiwu GuoshenShangbo Property Co., Ltd., RMB13.8859mn in Jebel Ali Free Zone TraderMarket Development and Operation FZCO and RMB1.5mn in Cheng Jian Bao(Beijing) Consulting Services Co., Ltd.(b) During this reporting period, the Company recovered long-term equity
investment of RMB2.6542mn in Zhongyi International Expo (Yiwu) Co., Ltd.(c) The Company recognized RMB14.6499mn of net investment income from
long-term equity investment by the equity method.(d) During this reporting period, the Company made new investment in financial
assets of RMB20.0148mn, including RMB20mn in Yiwu Shanyue Equity
Investment Partnership (limited partnership) and RMB14,800 in offline IPO
subscription.(e) During this reporting period, the change in fair value increased by
RMB20.1935mn due to the adoption of the new international financial reporting
standards for financial instruments.
Main investments: Unit: RMB10,000
Target | Main business | Cost of investment | Book value at the end of Jun 2020 | Shareholding ratio (%) |
Yiwu Shanglv Investment Development Co., | Industry investment, investment management (excluding financial businesses such as securities and futures), property service, design, production | 39,200.00 | 34,931.44 | 49.00 |
Ltd. | and agency of domestic advertising, operation and management of parking garages, marketing planning, operation and management consulting, operation and management of shopping malls and business management consulting | |||
Yiwu Rongshang Property Co., Ltd. | Real estate development and operation, landscape engineering and decoration engineering | 5,000.00 | 1,962.73 | 49.00 |
Yiwu Chuangcheng Property Co., Ltd. | Real estate development and sale; lease of proprietary houses; real estate brokerage service; interior decoration service; and landscaping service | 2,000.00 | 1,544.86 | 24.00 |
Yiwu Guoshen Shangbo Property Co., Ltd. | Real estate development, sale and lease; real estate brokerage service, interior decoration service; and landscaping service | 2,000.00 | 894.20 | 49.00 |
Yiwu Huishang Zijing Capital Management Co., Ltd. | Asset management (excluding the assets subject to special state regulation such as state-owned assets), investment management (excluding financial businesses such as securities and futures), and investment consulting service | 140.00 | 203.16 | 20.00 |
Jiangsu Jin¡¯an Hefeng Network Technology Co., Ltd. | Wholesale and retail; and e-commerce technology development and technical services | 200.00 | 100.76 | 40.00 |
Yiwu China Commodities City Creative Design and Development Services Co., Ltd. | Design of industrial goods; development of computer software (excluding electronic publications); online sale and offline sale of electronic products (excluding electronic publications), artware, accessories and daily necessities; and exhibition and display services | 98.00 | 96.89 | 49.00 |
Zhejiang Commodities City China Olympic Sports Industry Co., Ltd. | Organization and planning consulting of sports events, operation of sports venues, operation of sports activities (excluding dangerous sports activities), design, production and sale of sports goods | 440.00 | 364.94 | 45.00 |
Hangzhou Binjiang Shangbo Property Development Co., Ltd. | Real estate development and operation | 2,450.00 | 15,266.05 | 49.00 |
Yiwu Huishang Micro-finance Co., Ltd. | Micro-loans in Yiwu, and consulting services in connection with the development, management and finance for small-sized enterprises | 13,800.00 | 7,554.59 | 23.00 |
Zhejiang Chouzhou Financial Lease Co., Ltd. | Financial lease service; transfer of financial lease assets; fixed-income securities investment; acceptance of lessees¡¯ lease margin; absorption of time deposit with a term no shorter than three months from non-bank shareholders; inter-financial institutional lending; borrowing from financial institutions; overseas borrowing; sale and disposal of leased items; and economic consulting | 26,000.00 | 35,114.36 | 26.00 |
Yiwu China Commodities City Fuxing Investment Center (limited partnership) | Equity investment, investment management and investment consulting | 10,291.86 | 10,291.86 | 49.90 |
Yiwu Huishang Zijing Equity Investment Co., Ltd. | Equity investment and related consulting services (without approval of the industry regulatory authorities such as the finance regulatory authority, the company warrants that it will not be engaged in the absorption of deposits, financial | 5,000.00 | 7,470.91 | 10.41 |
guarantee, agency wealth management, fundraising (financing) from the public and other financial businesses) | ||||
Yiwu Huishang Zijing Phase II Investment Partnership (limited partnership) | Investment management, asset management (excluding the assets subject to special state regulation such as state-owned assets) (the above business scope excludes financial businesses such as securities and futures; and without approval of the industry regulatory authorities such as the finance regulatory authority, the company shall not be engaged in the absorption of deposits, financial guarantee, agency wealth management, fundraising (financing) from the public and other financial businesses) | 2,000.00 | 1,864.32 | 9.43 |
Yiwu Meipinshu Supply Chain Management Co., Ltd. | Supply chain management service, software development, and business management consulting | 1,820.14 | 1,868.40 | 20.57 |
Hangzhou MicroAnts Co., Ltd. | Services: technology development, technical consulting, technical services and achievements transfer of computer hardware and software and network information technologies and webpage design; wholesale and retail: computer software | 1,275.00 | 908.71 | 49.04 |
Zhejiang Yemai Data Technology Co., Ltd. | Services: technology development, technical consulting, technical services and achievements transfer of data technologies, computer hardware and software, and information technologies, webpage design, processing of computer data, integration of computer systems, design of industrial goods; and business information consulting (excluding commodities agency) | 600.00 | 173.11 | 40.00 |
Zhejiang Zhiku Co., Ltd. | Market planning and design, marketing planning, brand management service, enterprise consulting and management, economic information consulting and training service (excluding training classes) | 180.00 | 107.39 | 45.00 |
Zhejiang YXE Supply Chain Management Co., Ltd. | Supply chain management service; global trade & domestic trade; and wholesale & retail | 80.00 | 39.09 | 25.00 |
Hunan Shang Yun Zhonghe Scientific Research and Trade Co., Ltd. | Wholesale & retail; and development of e-commerce platforms and related services | 350.00 | 35.00 | |
Henan Yiwugou Technology Development Co., Ltd. | Wholesale & retail; and development, business expansion and technical service of e-commerce | 200.00 | 40.00 | |
Yiwu China Commodities City Investment Management Co., Ltd. | Investment management | 980.00 | 49.00 | |
Yiwu Hongyi Equity Investment Fund Partnership (limited partnership) | Investment management, equity investment, asset management and investment consulting (without approval of the industry regulatory authorities such as the finance regulatory authority, the company shall not be engaged in the absorption of deposits, financial guarantee, agency wealth management, fundraising (financing) from the public and other | 69,000.00 | 68,221.86 | 49.98 |
financial businesses) | ||||
Shenwan Hongyuan Securities Co., Ltd. | Securities brokerage, securities investment consulting and securities underwriting & sponsorship | 55,362.54 | 63,340.81 | 0.50 |
Yiwu Water Resources Development Co., Ltd. | Development, deployment and comprehensive utilization of water resources in the northern areas of Yiwu, and operation, management and maintenance of the water diversion works for Badu reservoir and Hengbin reservoir | 200.00 | 1,915.00 | 10.00 |
Zhejiang Yiwu Tap Water Co., Ltd. | Centralized water supply, and construction of the auxiliary pipe network for tap water supply | 207.29 | 2,264.00 | 2.83 |
Beijing Yiyun Clean Technology Venture Capital Co., Ltd. | Venture capital, agency of other VC institutions or individuals¡¯ VC business | 1,891.82 | 300.00 | 15.00 |
Suzhou Yiyun Venture Capital Center (limited partnership) | Venture capital and related consulting business | 1,273.51 | 22,465.73 | 11.78 |
Shenzhen Tiantu Investment Management Co., Ltd. | PE investment management in the consumer goods industry | 11,438.62 | 5,052.44 | 1.54 |
Beijing Redbud Huarong Equity Investment Partnership | Asset management, investment management and investment consulting | 10,000.00 | 16,526.15 | 12.36 |
Mashang Consumer Finance Co., Ltd. | Granting of personal consumption loans; acceptance of deposits from shareholders¡¯ domestic subsidiaries and domestic shareholders; lending to domestic financial institutions; issuance of financial bonds upon approval; inter-financial institution lending in China; consumption finance-related consulting; agency sale of insurance products related to consumption loans; and fixed-income securities investment | 3,000.00 | 3,772.50 | 0.75 |
Jiaxing Zhehua Zijing Investment Partnership (limited partnership) | Industry investment, venture capital, investment management, business management, social and economic consulting. (Operating activities subject to approval in accordance with laws shall only be conducted after approval from related authority) [it shall not be engaged in the absorption of deposits, financial guarantee, agency wealth management, fundraising (financing) from the public and other financial businesses] | 10,000.00 | 13,787.04 | 17.51 |
Beijing Wudaokou Education Technology Co., Ltd. | Technology promotion service; computer system service; basic software service, application software service (excluding medical software); software development; product design; model design; packaging and decoration design; and education consulting (excluding overseas studying consulting and intermediary service) | 500.00 | 67.32 | 9.91 |
Nantong Redbud Huatong Equity Investment Partnership (limited partnership) | Equity investment; investment consulting; and investment management | 20,000.00 | 23,120.55 | 21.05 |
Yiwu Shangfu Chuangzhi Investment Center | Asset management, investment management, and investment consulting service | 61,751.14 | 61,751.14 | 75.00 |
(limited partnership) | ||||
Yiwu Shanfeng Investment Partnership (limited partnership) | Investment management, asset management and investment consulting | 2,600.00 | 2,600.00 | 56.40 |
Yiwu Smart Transport Co., Ltd. | Technology development, technical service, technical consulting, technology promotion and achievements transfer | 120.00 | 120.00 | 12.00 |
Fujian Zongteng Network Co., Ltd. | Network information technology service; computer system integration service; development and technical service of computer hardware and software; wholesale, agency purchase and agency sale of maternal and infant products; online operation of electronic products and components and accessories thereof, household supplies and components and accessories thereof, and outdoor goods and components and accessories thereof; market research; business management consulting; enterprise marketing planning; international freight forwarding; and domestic trade agency service; and foreign trade | 3,000.00 | 3,207.65 | Convertible bond |
Yiwu Guoshen Shangbo Property Co., Ltd. | Real estate development, sale and lease; real estate brokerage service, interior decoration service; and landscaping service | 2,000.00 | 894.20 | 49.00 |
Cheng Jian Bao (Beijing) Consulting Services Co., Ltd. | Economic and trade consulting; market research; business management consulting; public relations service; and enterprise planning design | 150.00 | 138.51 | 15.00 |
(1) Major equity investments
¡ÌApplicable ¡õN/A
Target | Main business | Actual investment amount during the reporting period (RMB10,000) | % of the equity of the target as of the end of the reporting period | Remarks |
Yiwu Shanyue Equity Investment Partnership (limited partnership) | Equity investment; equity investment fund management, investment consulting, and operation and management of state-owned assets | 2000 | 39.6 | It subscribed for RMB20mn of capital contribution and had contributed RMB20mn of paid-in capital as of the end of the reporting period |
Yiwu Hongyi Equity Investment Fund Partnership (limited partnership) | Investment management, equity investment, asset management, investment consulting (without approval of the industry regulatory authorities such as the finance regulatory authority, the company shall not be engaged in the absorption of | 9000 | 49.98 | It subscribed for RMB1bn of capital contribution and had contributed RMB690mn of paid-in capital as of the end of the reporting period |
deposits, financial guarantee, agency wealth management, fundraising (financing) from the public and other financial businesses) | ||||
Yiwu Guoshen Shangbo Property Co., Ltd. | Real estate development, sale and lease; real estate brokerage service, interior decoration service; and landscaping service | 2,000 | 49 | It subscribed for RMB20mn of capital contribution and had contributed RMB20mn of paid-in capital as of the end of the reporting period |
Cheng Jian Bao (Beijing) Consulting Services Co., Ltd. | Economic and trade consulting; market research; business management consulting; public relations service; and enterprise planning design | 150.00 | 15 | It subscribed for RMB1.5mn of capital contribution and had contributed RMB1.5mn of paid-in capital as of the end of the reporting period |
Jebel Ali Free Zone Trader Market Development and Operation FZCO | Lease and management of proprietary properties; and lease and management of the properties owned by others | DHS7.2mn | 30 | It subscribed for DHS50.4mn of capital contribution and had contributed DHS7.2mn of paid-in capital as of the end of the reporting period |
(2) Major non-equity investments
¡ÌApplicable ¡õN/A
Unit: RMB10,000
Project | Total investment amount | Progress | Amount invested during the current period | Accumulative invested amount |
West Yiwu International Means of Production Market Auxiliary Project | 133,916.00 | The office building has been delivered, the underground space has been recognized as fixed assets, and design of the decoration for the hotel is in progress | 6,110.14 | 91,362.99 |
Haicheng Yiwu China Commodities City Commerce Phase I Project¡ªHotel Project | 180,000.00 | The main work is under construction | 0 | 3,229.05 |
Binwang Market Culture Creative Industry Park Project | 50,756.00 | The renovation of Section A, B, C, D and E has been completed, and the renovation of the central square has been completed by 50% | 4,808.57 | 12,218.00 |
Yiwu Comprehensive Bonded Zone Project | 624,250.00 | 80% of the earthwork has been completed, the overpass works have come under construction, and invitations have been made for the bidding for Phase I project of the comprehensive | 1,028.09 | 1,028.09 |
(3) Financial assets measured with fair value
¡ÌApplicable ¡õN/A
Unit: RMB10,000
bonded zone (civil works ofcustoms supervision facilities)Name
Name | Initial investment cost | Opening book value | Closing book value | Gains or losses during the reporting period | Change in shareholders¡¯ equity during the reporting period | Accounting item | Source of funds |
Wuxi DK Electronic Materials Co., Ltd. | 0.38 | 0.38 | 0.38 | Held-for-trading financial assets | Self-owned funds | ||
Shenzhen Crastal Technology Co., Ltd. | 0.19 | 0.19 | 0.19 | Held-for-trading financial assets | Self-owned funds | ||
Beijing Capital Online Data Service Co., Ltd. | 0.13 | 0.13 | 0.13 | Held-for-trading financial assets | Self-owned funds | ||
Shenglan Technology Co., Ltd. | 0.27 | 0.27 | 0.27 | Held-for-trading financial assets | Self-owned funds | ||
Zhengzhou Jie¡¯an Hi-Tech Co., Ltd. | 0.31 | 0.31 | 0.31 | Held-for-trading financial assets | Self-owned funds | ||
HG Technologies Co., Ltd. | 0.32 | 0.32 | 0.32 | Held-for-trading financial assets | Self-owned funds | ||
Fujian Zongteng Network Co., Ltd. | 3,000.00 | 3207.65 | 3207.65 | Held-for-trading financial assets | Self-owned funds | ||
Shenyin & Wanguo Securities Co., Ltd. | 55,362.54 | 64,218.80 | 63,340.81 | -877.99 | Investment in other equity instruments | Self-owned funds | |
Jiaxing Zhehua Zijing Investment Partnership (limited partnership) | 10,000.00 | 12,148.20 | 13,787.04 | 1,638.84 | Other non-current financial assets | Self-owned funds | |
Beijing Redbud Huarong Equity Investment Co., Ltd. | 10,000.00 | 15,275.45 | 16,526.15 | 1,250.70 | Other non-current financial assets | Self-owned funds | |
Nantong Redbud Huatong Equity Investment Partnership (limited partnership) | 20,000.00 | 22,809.21 | 23,120.55 | 311.34 | Other non-current financial assets | Self-owned funds | |
Beijing Wudaokou Education Technology Co., Ltd. | 500 | 67.32 | 67.32 | Other non-current financial assets | Self-owned funds | ||
Zhejiang Yiwu Tap Water Co., | 100 | 2,264.00 | 2,264.00 | Other non-current | Self-owned funds |
Ltd. | financial assets | ||||||
Yiwu Water Resources Development Co., Ltd. | 200 | 1,915.00 | 1,915.00 | Other non-current financial assets | Self-owned funds | ||
Suzhou Yiyun Venture Capital Center (limited partnership) | 4,000.00 | 22,336.51 | 22,465.73 | 129.22 | Other non-current financial assets | Self-owned funds | |
Beijing Yiyun Clean Technology Venture Capital Co., Ltd. | 6,091.82 | 480.00 | 300.00 | -180.00 | Other non-current financial assets | Self-owned funds | |
Mashang Consumer Finance Co., Ltd. | 3,000.00 | 3,772.50 | 3,772.50 | Other non-current financial assets | Self-owned funds | ||
Shenzhen Tiantu Investment Management Co., Ltd. | 11,802.00 | 6,405.63 | 5,052.44 | -1,353.19 | Other non-current financial assets | Self-owned funds | |
Yiwu Shanfeng Investment Partnership (limited partnership) | 2,600.00 | 2600 | 2,600.00 | Other non-current financial assets | Self-owned funds | ||
Yiwu Smart Transport Co., Ltd. | 120 | 120 | 120 | Other non-current financial assets | Self-owned funds | ||
Yiwu Shangfu Chuangzhi Investment Center (limited partnership) | 61,751.14 | 61,751.14 | 61,751.14 | Other non-current financial assets | Self-owned funds | ||
Yiwu Shanyue Equity Investment Partnership (limited partnership) | 2,000.00 | 2,000.00 | Other non-current financial assets | Self-owned funds |
5 Sale of major assets and equity
¡õApplicable ¡ÌN/A
6 Analysis of major subsidiaries and associates
¡ÌApplicable ¡õN/A
Unit: RMB10,000
Company | Business | Registered capital | Total assets at the end of Jun 2020 | Net assets at the end of Jun 2020 | Net profits in Jan-Jun 2020 |
Yiwu China Commodities City Property Development Co., Ltd. | Real estate development and sale | 250,000.00 | 445,800.20 | 333,795.27 | -198.17 |
Pujiang Lvgu Property Co., Ltd. | Real estate development and sale | 70,000.00 | 154,977.66 | 71,469.92 | -528.46 |
Hangzhou Shangbo Nanxing Property Co., Ltd. | Real estate development and sale | 5,000.00 | 1,243.84 | 9,217.25 | -107.92 |
Haicheng Yiwu China Commodities City Investment and Development Co., Ltd. | Industry investment, investment management, property service, market development and operation, market auxiliary service, real estate development, sale and lease, design, production and agency of domestic advertising, and operation and management of parking garages | 60,000.00 | 219,546.60 | -65,544.09 | -7,510.97 |
Yiwu Shangbo Property Co., Ltd. | Real estate development and sale | 30,000.00 | 50,886.93 | 34,541.84 | -2,085.83 |
Yiwu Commodities City Gonglian Property Co., Ltd. | Real estate development and sale | 20,000.00 | 15,920.93 | 15,774.98 | -6.43 |
Zhejiang Shangbo Property Co., Ltd. | Real estate development and sale | 5,000.00 | 10,881.34 | 7,985.56 | 771.17 |
Jiangxi Shangbo Property Co., Ltd. | Real estate development and sale | 50,000.00 | 63,377.79 | 52,832.57 | 593.18 |
Yiwu China Commodities City Property Service Co., Ltd. | Property service and landscaping | 300.00 | 2,283.80 | 1,411.15 | 626.23 |
Jiangxi Commodities City Property Management Co., Ltd. | Property management | 50.00 | 112.62 | 39.12 | -9.80 |
Yiwu Suxi Shangbo Property Co., Ltd. | Real estate development and sale | 10,000.00 | 105,022.57 | 9,888.37 | -367.80 |
Yiwu China Commodities City Information Technology Co., Ltd. | R&D of computer and multimedia software | 20,000.00 | 28,708.73 | 20,740.81 | 550.73 |
Zhejiang Yiwu E-commerce Co., Ltd. | Computer software, multimedia technologies, computer network and application, and wholesale & retail | 10,000.00 | 11,159.21 | 8,553.14 | 735.05 |
Yiwu China Commodities City Payment Network Technology Co., Ltd. | R&D of computer and multimedia software | 15,000.00 | 12,355.64 | 12,338.90 | 45.20 |
Yiwu China Commodities City Credit Investigation Co., Ltd. | Business credit investigation and related businesses; information market | 1,000.00 | 1,111.18 | 782.92 | 94.80 |
consulting, investment consulting, and information technology service (excluding Internet information service) | |||||
Yiwu China Commodities City (Germany) Co., Ltd. | Business consulting; trade of import and export commodities (excluding the commodities subject to approval, hazardous goods and prohibited goods); organization of international visit projects and tourism projects; organization of expos, exhibitions and cultural exchange activities | € 100.00 | 246.58 | 240.66 | -87.38 |
Yiwu International Trade Comprehensive Service Co., Ltd. | Supply chain management service; and supply chain information consulting service | 10,000.00 | 1,686.88 | 1,674.24 | -68.36 |
Yiwu China Commodities City Exhibition Co., Ltd. | Exhibition service | 1,800.00 | 4,288.76 | 2,913.04 | -161.16 |
China Yiwu International Commodities Fair Co., Ltd. | Exhibition service | 1,000.00 | 0.00 | 0.00 | 3.26 |
Yiwu China Commodities City Logistics and Warehousing Co., Ltd. | Ordinary cargo transport and goods warehousing | 1,900.00 | 1,902.18 | 602.90 | -325.94 |
Yiwu China Commodities City Advertising Co., Ld. | Design, production, and publication and agency of advertisements in China | 1,000.00 | 5,467.85 | 3,192.23 | 1,414.07 |
Yiwu China Commodities City Supply Chain Management Co., Ltd. | Supply chain management service | 10,000.00 | 24,195.13 | -2,049.25 | -451.39 |
Yiwu China Commodities City Import and Export Co., Ltd. | Domestic trade and international trade | 10,000.00 | 13,987.82 | 3,426.34 | -544.79 |
Yiwu China Commodities City Financial Holdings Co., Ltd. | Enterprise free capital investment, asset management, investment consulting service, and investment management service | 400,000.00 | 273,372.20 | 205,465.29 | 3,852.21 |
Yiwu China Commodities City Internet Finance Information Service Co., Ltd. | Financial information service, technology development and technical service of computer software (excluding electronic publications), investment consulting and economic information consulting | 1,000.00 | 902.33 | 902.33 | -0.03 |
Yiwu China Commodities City Currency Exchange Co., Ltd. | Exchange between RMB and foreign currencies | 1,000.00 | 104.62 | 103.27 | -8.43 |
Yiwu China Commodities City Tourism Development Co., Ltd. | Development of tourism resources and tourism projects; domestic tourism business, inbound tourism business; tourism information consulting; and wholesale of fruits, vegetables, aquatic products and primary edible agricultural products | 10,000.00 | 9,306.27 | 9,150.68 | -90.26 |
Yiwu China Commodities City Commerce and Trade Service Training Center Co., Ltd. | Cultural education and training for adults; business information consulting service; and marketing planning | 500.00 | 20.57 | 19.89 | 14.21 |
Yiwu China Commodities City Overseas Investment and Development Co., Ltd. | Overseas industry investment, and construction and operation of overseas shopping malls | 10,000.00 | 9,332.88 | 9,304.72 | -198.07 |
Yiwu ICMall Supply Chain Management Co., Ltd. | Supply chain management service; simple processing and value-added service of bonded goods; and global procurement and international distribution | 500.00 | 40.68 | 37.01 | -33.55 |
Yiwu China Commodities City Assets Operation and Management Co., Ltd. | Assets operation and management, real estate property management, and consulting service | 1,000.00 | 1,664.67 | 463.65 | -13.67 |
Yiwu China Commodities City (Hong Kong) International Trade Co., Ltd. | International trade, wholesale of commodities, and agency procurement of commodities | HKD1.00 | 3,690.67 | 28.05 | 8.94 |
Ningxia Yiwu Commodities City | Supply chain management service | 2,000.00 | 223.71 | -77.11 | -72.08 |
Supply Chain Management Co., Ltd. | |||||
Yiwu Shanglv Investment and Development Co., Ltd. | Industry investment, investment management, property service, operation and management of parking garages, business marketing planning, operation and management consulting, and operation and management of shopping malls | 80,000.00 | 188,607.58 | 74,482.13 | 239.73 |
Hangzhou Binjiang Shangbo Property Development Co., Ltd. | Real estate development and sale | 5,000.00 | 47,273.85 | 31,732.86 | 3,169.81 |
Yiwu Rongshang Property Co., Ltd. | Real estate development and sale | 10,204.08 | 591,447.39 | 4,005.57 | -747.26 |
Yiwu Chuangcheng Property Co., Ltd. | Real estate development and sale | 8,333.33 | 435,437.48 | 6,436.92 | -1014.11 |
Jiangsu Jin¡¯an Hefeng Network Technology Co., Ltd. | Wholesale and retail of textiles, clothing and household supplies; technology development and technical service for e-commerce; and design, construction and technical service of interior decoration works | 500.00 | 260.19 | 251.91 | -0.05 |
Yiwu Huishang Micro-finance Co., Ltd. | Micro loans | 60,000.00 | 36,735.89 | 36,249.46 | -3,372.35 |
Zhejiang Chouzhou Financial Lease Co., Ltd. | Financial lease service, and transfer of financial lease assets | 100,000.00 | 1,000,448.50 | 135,419.50 | 7,876.21 |
Yiwu Huishang Redbud Equity Investment Co., Ltd. | Equity investment and related consulting services | 49,000.00 | 78,980.31 | 71,752.03 | 480.38 |
Yiwu Huishang Redbud Phase II Investment Partnership (limited partnership) | Investment management and asset management | 106,100.00 | 47,302.01 | 45,295.38 | -374.38 |
Yiwu Huishang Rebud Capital Management Co., Ltd. | Asset management, investment management and investment consulting service | 1,000.00 | 1017.96 | 1015.81 | 257.26 |
Yiwu Meipinshu Supply Chain Management Co., Ltd. | Supply chain management service | 165.51 | 3,246.04 | 2,543.41 | -371.42 |
Yiwu Hongyi Equity Investment Fund Partnership (limited partnership) | Investment management, equity investment, asset management and investment consulting | 200,100.00 | 136,517.73 | 136,511.95 | -1,636.99 |
Hangzhou MicroAnts Co., Ltd. | Services: technology development, technical consulting, technical services and achievements transfer of computer hardware and software and network information technologies, webpage design; and wholesale and retail: computer software | 2,600.00 | 935.76 | 852.97 | -174.34 |
Zhejiang Yemai Data Technology Co., Ltd. | Technical services, wholesale and retail | 1,500.00 | 507.02 | 281.07 | 82.17 |
Zhejiang Commodities City China Olympic Sports Industry Co., Ltd. | Organization and planning consulting of sports events, operation of sports venues, and operation of sports activities | 10,000.00 | 396 | 393.43 | -13.7 |
Yiwu China Commodities City Creative Design and Development Services Co., Ltd. | Design of industrial goods; development of computer software (excluding electronic publications); online sale and offline sale of electronic products (excluding electronic publications), artware, accessories and daily necessities; and exhibition and display services | 200.00 | 216.19 | 198.18 | -31.93 |
Zhejiang YXE Supply Chain Management Co., Ltd. | Supply chain management service | 2,000.00 | 420.14 | 291.37 | -43.77 |
Zhejiang Zhiku Co., Ltd. | Market planning and design, marketing planning, brand management service, and enterprise consulting and management | 10,000.00 | 238.65 | 238.65 | -13.35 |
Zhejiang Huajie Investment and Development Co., Ltd. | Industry investment, investment management, investment consulting, business information consulting, and asset management services | 50,000.00 | 6,473.78 | 6,326.28 | -68.34 |
Yiwu Guoshen Shangbo Property Co., Ltd. | Real estate development, sale and lease; real estate brokerage service, interior decoration service; and landscaping service | 4,081.63 | 457,248.43 | 1,824.89 | -2256.74 |
Cheng Jian Bao (Beijing) Consulting Services Co., Ltd. | Economic and trade consulting; market research; business management consulting; public relations service; and enterprise planning design | 1,000.00 | 633.88 | -160.08 | -76.63 |
Yiwu Global Yida Logistics Co., Ltd. | Agency international air transport of cargoes; agency international land transport of cargoes; agency international transport of cargoes; advertising design and agency; and technical services | 5,000.00 | 974.84 | 967.87 | -32.13 |
Zhejiang Yindu Hotel Management Co., Ltd. | Hotel management, property service, enterprise brand management, and enterprise image planning | 1,000.00 | 71.08 | 60 | -40 |
Yiwu China Commodities City Big Data Co., Ltd. | Internet data service; professional design service; and computer information technology development | 10,000.00 | 1,653.78 | 667.86 | -692.14 |
Hong Kong Better Silk Road Co., Ltd. | International trade, import and export, investment and consulting | HKD10800 | 4,880.78 | 4,880.78 | -0.12 |
Better Silk FZ | Investment management; industrial investment and management; business investment and management; regular investment business operation and management | DHS5040 | 4,627.85 | 4,627.85 | -0.18 |
Jebel Ali Free Zone Trader Market Development and Operation FZCO | Lease and management of proprietary properties; and lease and management of the properties owned by others | DHS16800 | 15,784.68 | 4,525.36 | -101.14 |
BETTER SILK ROAD RWANDA Ltd | Container handling; land transport-related services; and land transport supporting | RWF27000 | 163.78 | 54.05 | -156.89 |
activities-related business | |||||
Yiwu Comprehensive Bonded Zone Operation and Management Co., Ltd. | Property management; low-temperature warehousing, ordinary goods warehousing service; information consulting service; and warehousing equipment lease service | 10,000.00 | 0.00 | 0.00 | 0.00 |
Yiwu China Commodities City Research Institute Co., Ltd. | Consulting and planning services; information consulting service; marketing planning; market research; and business management | 1,000.00 | 0.00 | 0.00 | 0.00 |
7 Structured entities controlled by the Company
¡õApplicable ¡ÌN/A
III Other matters to be disclosed1 Warning or statement that the estimated net profits for the period from thestart of the current year to the end of the next reporting period may benegative or vary greatly on a YoY basis
¡õApplicable ¡ÌN/A
2 Potential risks
¡ÌApplicable ¡õN/A
(1) Market operation risk
Large-sized shopping malls, hypermarkets, warehouse stores and e-commerceplatforms are strong competitors in the commodities trading market. Large-sizedshopping malls offer products of reliable quality and well-known brands;hypermarkets or warehouse stores supply diversified products at low prices;e-commerce platforms provide new trading means and facilitate consumers.Purchasers or consumers may also choose to make procurement or consumptionvia e-commerce platforms for convenience. Therefore, the Company may competewith other forms of business. In addition, affected by the rising specialized market,robust development of the industry market and rapid development of the central andwestern regions, the Company may also face competition from other similarspecialized markets.
(2) Risk of insufficient reserve of talents
With the development of retail sales, centralized procurement, warehousing,logistics and overseas businesses, the Company¡¯s reserve of professional talentsand inter-disciplinary talents may be insufficient.3 Other matters to be disclosed
¡õApplicable ¡ÌN/A
Section V Significant Matters
I Shareholders¡¯ meetings
Session of meeting | Date | Designated website on which the resolution is published | Date of disclosure of the resolution |
The first extraordinary shareholders¡¯ meeting in 2020 | Jan 15, 2020 | www.sse.com.cn | Jan 16, 2020 |
The second extraordinary shareholders¡¯ meeting in 2020 | Feb 24, 2020 | www.sse.com.cn | Feb 25, 2020 |
The 2019 annual shareholders¡¯ meeting | May 22, 2020 | www.sse.com.cn | May 23, 2020 |
The third extraordinary shareholders¡¯ meeting in 2020 | Jun 29, 2020 | www.sse.com.cn | Jun 30, 2020 |
Statement on shareholders¡¯ meetings
¡ÌApplicable ¡õN/A
1. The first extraordinary shareholders¡¯ meeting in 2020 deliberated on and adoptedthe following proposal:
(1) Proposal on the Payment of Remunerations of Some Directors in 2018
2. The second extraordinary shareholders¡¯ meeting in 2020 deliberated on andadopted the following proposal:
(1) Proposal on External Donation
3. The 2019 annual shareholders¡¯ meeting deliberated on and adopted the followingproposals:
(1) Work Report of the Board of Directors for 2019
(2) Work Report of the Board of Supervisors for 2019
(3) 2019 Annual Report and Summary
(4) 2019 Final Accounts Report
(5) 2020 Financial Budget Report
(6) 2019 Profits Distribution Plan
(7) Proposal on Renewing the Engagement of Accounting Firm
(8) Proposal on Issuing Debt Instruments within the Coming 12 Months
(9) Proposal on Adding Independent Directors
4. The third extraordinary shareholders¡¯ meeting in 2020 deliberated on andadopted the following proposal:
(1) Proposal on the Transfer of Some Equity in Wholly-owned Subsidiaries andRelated-Party TransactionsII Proposal on profits distribution or capitalization of the capital reserve
1. Semi-annual proposals on profits distribution and capitalization of capitalreserve
Whether to distribute profits or capitalize the capital reserve | No |
Number of bonus shares for every 10 shares | 0 |
Dividend payout for every 10 shares (tax inclusive) | 0 |
Number of shares converted from the capitalization of capital reserve for every 10 shares | 0 |
Statement on the proposal on profits distribution or capitalization of capital reserve | |
None |
III Fulfillment of commitments
1. Commitments made by the actual controller, shareholders, affiliates and
acquirer of the Company, the Company itself and other related partiesduring the reporting period or as of the reporting period
¡õApplicable ¡ÌN/A
IV Engagement and termination of engagement of accounting firmStatement on the engagement or termination of engagement of accounting firm
¡ÌApplicable ¡õN/A
The 13
th meeting of the 8
thBoard of Directors of the Company held on Apr 28, 2020and the 2019 annual shareholders¡¯ meeting held on May 22, 2020 deliberated onand adopted the Proposal on Renewing the Engagement of Accounting Firm,agreeing to keep engaging Ernst & Young Hua Ming Accounting Firm (LLP) as itsfinancial and internal control auditor. For details, please refer to the Temporary2020-028 Announcement dated Apr 30, 2020 and Temporary 2019-039Announcement dated May 23, 2020 on www.sse.com.cn.Statement on replacing the accounting firm during the audit
¡õApplicable ¡ÌN/A
Statement on the ¡°modified audit report¡± issued by the accounting firm
¡õApplicable ¡ÌN/A
Statement on the ¡°modified audit report¡± issued by the certified accountant for thefinancial report in the Company¡¯s annual report for the last year.
¡õApplicable ¡ÌN/A
V Matters relating to bankruptcy and reorganization
¡õApplicable ¡ÌN/A
VI Material litigations and arbitrations
¡ÌThe Company has been involved in material litigation or arbitration during thereporting period?The Company has not been involved in any material litigation or arbitration duringthe reporting period
1. Litigations and arbitrations have been disclosed in the temporaryannouncements and have had no further progresses
¡õApplicable ¡ÌN/A
2. Litigations and arbitrations that have not been disclosed in the temporaryannouncements or have had further progresses
¡ÌApplicable ¡õN/A
Unit: RMB10,000
During the reporting period: | |||||||||
Plaintiff (claimant) | Defendant (respondent) | Party Bearing Joint Liabilities | Litigation or arbitration | Basic information of litigation (arbitration) | Value involved in litigation (arbitration) | Does the litigation (arbitration) cause estimated liabilities and the amount thereof | Status of litigation (arbitration) | Results of litigation (arbitration) and effect thereof | Enforcement of judgment (award) |
The Company | Changsha Ruinian Real Estate Development Co., Ltd. | None | Litigation | Second instance for the dispute over unfair competition and trademark right infringement [(2020) Xiang Min Zhi Zhong No.216] | 212 | No | Judgment has been made | / | / |
The Company | Ganglong Holdings Group Co., Ltd., Anshan Ganglong Guoxin | None | Litigation | Dispute over trademark right infringement | 212 | No | Judgment has been made | Judgment of second instance: appeal | Court enforcement has been sought |
Property Co., Ltd. | and unfair competition [(2018) Su 05 Min Chu No.64] | dismissed, and original judgment rectified | |||||||
The Company | Ganglong Holdings Group Co., Ltd., Huai An Ganglong Building Materials and Home Furnishing City Management Co., Ltd., Huai An Ganglong Yiwu China Commodities City Operation and Management Co., Ltd. | None | Litigation | Dispute over trademark right infringement and unfair competition [(2018) Su 05 Min Chu No.65] | 612 | No | Judgment has been made | Judgment of second instance: appeal dismissed, and original judgment rectified | Court enforcement has been sought |
The Company | Wenzhou Ganglong Property Co., Ltd., Ganglong Holdings Group Co., Ltd., Wenzhou Ganglong Yiwu Commodities City Operation and Management Co., Ltd. | None | Litigation | Dispute over trademark right infringement [(2018) Zhe 02 Min Chu No.25] | 300 | No | Judgment has been made | Judgment of second instance: appeal dismissed, and original judgment rectified | Court enforcement has been sought |
The Company | Zhejiang Yiwu Chuanglian Market Investment and Management Co., Ltd., Suzhou Pingjiang Ganglong Real Estate Co., Ltd., Suzhou Ganglong Business Management Co., Ltd., Ganglong Holdings Group Co., Ltd. | None | Litigation | Dispute over trademark right infringement and unfair competition [(2018) Zhe 01 Min Chu No.47] | 310.94 | No | Judgment has been made | Judgment of second instance: appeal dismissed, and original judgment rectified | Court enforcement has been sought |
The Company | Zhejiang Yiwu Chuanglian Market Investment and Management Co., Ltd., Changde Xinri Property Co., Ltd., Changde Xinri Yiwu International Trade City Co., Ltd. | None | Litigation | Dispute over trademark right infringement and unfair competition [(2018) Zhe 01 Min Chu No.50] | 161.17 | No | Judgment has been made | Judgment of second instance: appeal dismissed, and original judgment rectified | The Company has received the enforced amount of RMB649,000 |
The Company | Zhejiang Yiwu Chuanglian Market Investment and Management Co., Ltd., Hebei Jiangcheng Real Estate Development Co., Ltd., Handan Zheshang Yiwu China Commodities City Co., Ltd. | None | Litigation | Dispute over trademark right infringement and unfair competition [(2018) Zhe 01 Min Chu No.51] | 610.34 | No | Judgment has been made | Judgment of second instance: appeal dismissed, and original judgment rectified | Court enforcement has been sought |
The Company | Zhejiang Yiwu Chuanglian | None | Litigation | Dispute over trademark | 610.58 | No | Judgment has been made | Judgment of second | Court enforcement |
Market Investment and Management Co., Ltd., Ningxiang Hengyuan Real Estate Development Co., Ltd., Hunan Zhong Zhi Ying Tou Holdings Group Co., Ltd. | right infringement and unfair competition [(2018) Zhe 01 Min Chu No.48] | instance: appeal dismissed, and original judgment rectified | has been sought | ||||||
The Company | Youxian Xinxing Real Estate Development Co., Ltd., Youxian Xiangdong Yiwu International Trade City Development Co., Ltd., Hunan Xiangdong Yiwu International Trade City Operation and Management Co., Ltd. | None | Litigation | Dispute over trademark right infringement and unfair competition [(2019) Zhe 01 Min Chu No.11] | 250 | No | Judgment has been made | Judgment of second instance: appeal dismissed, and original judgment rectified | The bank account of Youxian Xinxing Real Estate Development Co., Ltd. was seized and frozen |
The Company | ZHANG Xizhong, CHEN Zhihua, Chuzhou Chuangda Yiwu International Trade City Co., Ltd. | None | Litigation | Dispute over trademark right infringement and unfair competition [(2019) Zhe 0782 Min Chu No. 10704] | 350 | No | Judgment has been made | 1. The defendant Chuzhou Chuangda Yiwu International Trade City Co., Ltd. shall immediately cease infringement of exclusive use right to the plaintiff¡¯s No. 14115979 registered trademark, i.e. ceasing the use of ¡°Chuzhou Chuangda Yiwu International Trade City¡± or ¡°Chuzhou Yiwu International Trade City¡± marks on market signboards and in advertising, online advertising and other operating activities; 2. The defendants ZHANG Xizhong, CHEN Zhihua and Chuzhou Chuangda Yiwu International Trade City Co., Ltd. shall | / |
jointly and severally compensate RMB3.5mn (including reasonable expenses) for the plaintiff¡¯s economic losses, which shall be fulfilled within ten days after effectiveness date of the judgment; 3. Other claims made by the plaintiff were rejected. | |||||||||
The Company | ZHANG Xizhong, CHEN Zhihua, Huai An Chuangda Yiwu International Trade City Co., Ltd., HUANG Keyu, CHEN Jianzhong | None | Litigation | Dispute over trademark right infringement and unfair competition [(2019) Zhe 0782 Min Chu No. 10705] | 400 | No | Judgment has been made | 1. The defendant Huai An Chuangda Yiwu International Trade City Co., Ltd. shall immediately cease infringement of exclusive use right to the plaintiff¡¯s No. 14115979 registered trademark, i.e. ceasing the use of ¡°Huai An Chuangda Yiwu International Trade City¡± mark on market signboards and in advertising, online advertising and other operating activities; 2. The defendants ZHANG Xizhong, CHEN Zhihua, Huai An Chuangda Yiwu International Trade City Co., Ltd., HUANG Keyu and CHEN Jianzhong shall jointly and severally compensate RMB4mn (including reasonable expenses) for the plaintiff¡¯s | / |
economic losses, which shall be fulfilled within ten days after effectiveness date of the judgment; 3. Other claims made by the plaintiff were rejected. | |||||||||
The Company | Xianning Luzhou Yiwu Small Commodities Wholesale City Co., Ltd. | None | Litigation | Dispute over unfair competition [(2019) Zhe 0782 Min Chu No. 18835] | 380 | No | Judgment has been made | 1. The defendant shall immediately cease infringement of the plaintiff¡¯s service names with certain influence, i.e. ¡°Yiwu International Trade City¡± and ¡°Yiwu China Commodities City¡±, including but not limited to ceasing the use of ¡°Xianning Yiwu International Trade City¡± and ¡°Xianning Luzhou Yiwu Commodities Wholesale City¡± marks on market signboards and in advertising, online advertising and other operating activities; 2. The defendant shall compensate RMB3.8mn (including reasonable expenses on the protection of legal rights) for the plaintiff¡¯s economic losses, which shall be fulfilled within fifteen days after effectiveness date of the judgment; 3. Other claims | / |
made by the plaintiff were rejected. | |||||||||
The Company | Hubei Xizi Property Co., Ltd., Huangshi Duolong Yiwu Small Commodities Wholesale City Management Co., Ltd. | None | Litigation | Dispute over unfair competition [(2019) Zhe 0782 Min Chu No. 18837] | 320 | No | Judgment has been made | 1. The defendant shall immediately cease infringement of the plaintiff¡¯s service name with certain influence, i.e. ¡°Yiwu International Trade City¡±, including but not limited to ceasing the use of ¡°Huangshi Yiwu International Trade City¡± mark on market signboards and in advertising, online advertising and other operating activities; 2. The defendant shall compensate RMB3.2mn (including reasonable expenses on the protection of legal rights) for the plaintiff¡¯s economic losses, which shall be fulfilled within fifteen days after effectiveness date of the judgment; 3. Other claims made by the plaintiff were rejected. | / |
The Company | Sanmenxia Zheshang Alliance Property Co., Ltd. | None | Litigation | Dispute over unfair competition [(2019) Zhe 0782 Min Chu No. 18839] | 410 | No | Judgment has been made | 1. The defendant shall immediately cease infringement of the plaintiff¡¯s service name with certain influence, i.e. ¡°Yiwu International Trade City¡±, including but | / |
not limited to ceasing the use of ¡°Sanmenxia Yiwu International Trade City¡± and ¡°Sanmenxia Yiwu Trade City¡± marks on market signboards and in advertising, online advertising and other operating activities; 2. The defendant shall compensate RMB4.1mn (including reasonable expenses on the protection of legal rights) for the plaintiff¡¯s economic losses, which shall be fulfilled within fifteen days after effectiveness date of the judgment; 3. Other claims made by the plaintiff were rejected. | |||||||||
The Company | Henan Zhongyi Property Group Co., Ltd., Zhumadian Zhongyi Shopping Mall Business Management Co., Ltd. | None | Litigation | Dispute over unfair competition [(2019) Zhe 0782 Min Chu No. 18842] | 492 | No | Trial has started, but no judgment has been made | / | / |
The Company | Anhui Zhongheng Business Development Co., Ltd. | None | Litigation | Dispute over unfair competition [(2019) Zhe 0782 Min Chu No. 18844] | 492 | No | Trial has started, but no judgment has been made | / | / |
The Company | Guangdong Duolong Enterprise Group Co., Ltd., Zhanjiang Yongsheng Industry Co., Ltd., Zhanjiang Duolong Yiwu Small Commodities Wholesale City Co., Ltd. | None | Litigation | Dispute over unfair competition and trademark right infringement [(2019) Yue 13 Min Chu No. 206] | 812 | No | Trial has started, but no judgment has been made | / | / |
The Company | Dongguan Qianyufa Small Commodities City | None | Litigation | Dispute over trademark right | 1,212 | No | Trial has started, but no judgment has | / | / |
Co., Ltd., ZHANG Yuhui, LU Weijian, MA Wenbo, LEI Mingliang, ZHU Ruixiang, MO Zhenfeng, CHENG Aiguo | infringement and unfair competition [(2019) Yue 19 Min Chu No. 115] | been made | |||||||
Bank of China | The Company and Commodities City Trade | None | Litigation | Dispute over letter of credit | 11,367.57 | 11,062.03 | The case has been transferred to the Public Resources Trading Supervision and Administration Bureau of Yiwu, and the court acceptance fees have been refunded to the plaintiff |
Note: during the reporting period, the Company initiated a series of brand protectioncases, including 6 cases for first instance, 8 cases for second instance and 4 casesfor which trials have started but no judgments have been made. For the firstinstance and second instance cases for which judgments have been made, theinfringing parties shall compensate RMB51.3903mn for the Company¡¯s economiclosses in total.
3. Other statement
¡õApplicable ¡ÌN/A
VII Punishments of and rectifications by the Listed Company and its
directors, supervisors, senior officers, actual controller and acquirers
¡õApplicable ¡ÌN/A
VIII Credit standing of the Company and its controlling shareholder andactual controller
¡ÌApplicable ¡õN/A
There was no outstanding court judgment or overdue debt of a large amountinvolving the Company or its controlling shareholder or actual controller during thereporting period.
IX Incentive stock option plans, employee stock ownership plans and other
employee incentives granted by the Company and the impact thereof1 Matters relating to incentive stock options that have been disclosed in
the temporary announcements and have had no further progresses orchanges
¡õApplicable ¡ÌN/A
2 Incentives that have not been disclosed in the temporary
announcements or had further progressesIncentive stock option
¡õApplicable ¡ÌN/A
Other statement
¡õApplicable ¡ÌN/A
Employee stock ownership plans
¡õApplicable ¡ÌN/A
Other incentives
¡õApplicable ¡ÌN/A
X Material related-party transactions1 Related-party transactions relating to regular corporate operation
(1) Matters that have been disclosed in the temporary announcements andhad no further progresses or changes
¡õApplicable ¡ÌN/A
(2) Matters that have been disclosed in the temporary announcements buthad further progresses or changes
¡õApplicable ¡ÌN/A
(3) Matters that have not been disclosed in the temporary announcements
¡ÌApplicable ¡õN/A
Unit: RMB10,000
Related counterparty | Relationship | Type of related-party transaction | Contents of related-party transaction | Pricing principle | Price of related-party transaction | Amount of related-party transaction | % of the total amount of all related-party transactions | Settlement method | Market price | Reasons for the large difference between the price of the transaction and reference market price |
Yourworld International Conference Center, subordinated to Yiwu Market Development Group | Parent company | Other inflow | Entrusted management fees and license fees | Negotiated price | 45.30 | 91.42 | Account transfer | |||
Yiwu Security Service Co., Ltd. | Wholly-owned subsidiary of the parent company | Acceptance of labor service | Cash security service for the business outlets of the currency exchange company | Market price | 4.25 | 8.58 | Account transfer | |||
Total | / | / | 49.55 | 100.00 | / | / | / | |||
Return of large-value goods sales | ||||||||||
Illustration on related-party transactions |
2 Related-party transactions arising from the acquisition or sale of assetsor equity
(1) Matters that have been disclosed in the temporary announcements andhad no further progresses or changes
¡õApplicable ¡ÌN/A
(2) Matters that have been disclosed in the temporary announcements but
had further progresses or changes
¡ÌApplicable ¡õN/A
(a) The Company transferred 51% equity in its wholly-owned subsidiaries Yiwu
China Commodities City Property Development Co., Ltd. and Pujiang LvguProperty Co., Ltd. respectively to its controlling shareholder CCCH at the priceof RMB2.232bn. For details, please refer to the Announcement on the Transferof Some Equity in Wholly-owned Subsidiaries and Related-Party Transaction(Announcement No. Temporary 2020-048).By far, the Company has received RMB2.232bn from CCCH. CCCP and PujiangLvgu have completed the procedures for registration of change with theAdministration for Market Regulation.(b) The Company accepted the transfer of 35.72% equity held by ShanghaiYuantong Jiaolong Investment Development Group Co. Ltd. and 20.68% equityheld by Yiwu International LandPort Group Co., Ltd. in Zhejiang Huajie
Investment and Development Co., Ltd.. For details, please refer to theAnnouncement on the Progress of External Investment and Related-PartyTransactions (Announcement No. Temporary 2020-018).By far, Zhejiang Huajie Investment and Development Co., Ltd. has completedthe procedures for registration of change with the Administration for MarketRegulation.
(3) Matters not disclosed in the temporary announcements
¡õApplicable ¡ÌN/A
(4) If any agreement on the operating results is involved, the achievement of
operating results during the reporting period shall be disclosed
¡õApplicable ¡ÌN/A
3 Related-party transactions arising from joint external investment
(1) Matters that have been disclosed in the temporary announcements andhad no further progresses or changes
¡ÌApplicable ¡õN/A
Overview of the matter | Query website |
The Company¡¯s wholly-owned subsidiaries CCC Logistics and Zhejiang Jicheng Yunchuang Technology Co., Ltd., and affiliates Yiwu Lugang Information Technology Co., Ltd. and Yiwu Security Co., Ltd. jointly invested in the establishment of Yiwu Smart Transport Co., Ltd. | www.sse.com.cn |
(2) Matters that have been disclosed in the temporary announcements but
had further progresses or changes
¡õApplicable ¡ÌN/A
(3) Matters not disclosed in the temporary announcements
¡õApplicable ¡ÌN/A
4 Related-party credits and debts
(1) Matters that have been disclosed in the temporary announcements andhad no further progresses or changes
¡õApplicable ¡ÌN/A
(2) Matters that have been disclosed in the temporary announcements buthad further progresses or changes
¡õApplicable ¡ÌN/A
(3) Matters not disclosed in the temporary announcements
¡õApplicable ¡ÌN/A
5 Other material related-party transactions
¡õApplicable ¡ÌN/A
6 Others
¡õApplicable ¡ÌN/A
XI Material contracts and performance thereof1 Trusteeship, contracting and leases
¡õApplicable ¡ÌN/A
2 Guarantees
¡ÌApplicable ¡õN/A
Unit: RMB10,000
External guarantees provided by the Company (excluding those provided for the subsidiaries) | ||||||||||||||
Guarantor | Relationship between the guarantor and the Listed Company | The guaranteed | Amount of guarantee | Date of guarantee (signing date of the agreement) | Starting date of the guarantee | Expiry date of guarantee | Type of guarantee | Is the guarantee fulfilled in full | Is the guarantee overdue | Overdue amount of the guarantee | Is there a counter guarantee | Is it a related-party guarantee | relationship | |
CCC | The Company itself | Huangyuan Shangbo | 90,702.10 | Aug 13, 2019 | Aug 23, 2022 | Aug 22, 2024 | Joint and several liability guarantee | No | No | - | No | No | ||
CCC | The Company itself | Chengzhen Property | 20,145.44 | Nov 26, 2019 | Sep 22, 2022 | Sep 21, 2024 | Joint and several liability guarantee | No | No | - | No | No | ||
CCC | The Company itself | Yiwu Shanglv | 26,082.82 | Dec 16, 2015 | Jul 1, 2015 | Dec 15, 2026 | Joint and several liability guarantee | No | No | - | Yes | No | ||
CCCP | Wholly-owned subsidiary | House purchaser | 90,283.94 | Joint and several liability guarantee | No | No | - | No | No | |||||
Amount of guarantees made during the reporting period (excluding the guarantees provided for subsidiaries) | 41,825.91 | |||||||||||||
Balance of guarantees at the end of the reporting period (A) (excluding the guarantees provided for subsidiaries) | 227,214.30 | |||||||||||||
Guarantees provided by the Company for its subsidiaries | ||||||||||||||
Amount of guarantees provided for subsidiaries during the reporting period | ||||||||||||||
Balance of guarantees provided for subsidiaries at the end of the reporting period (B) | ||||||||||||||
Total guarantees provided by the Company (including those provided for the subsidiaries) |
Total amount of guarantees (A+B) | 227,214.30 |
Ratio of the total amount of guarantees to the Company¡¯s net assets (%) | 16.52 |
Among which: | |
Amount of guarantees provided for shareholders, actual controller and their related parties (C) | |
Amount of guarantees provided directly or indirectly for the debtors whose debt-to-asset ratio exceed 70% (D) | |
Portion of total amount of guarantees in excess of 50% of net assets (E) | |
Total (C+D+E) | |
Statement on the joint and several liability that may be assumed due to outstanding guarantees | |
Statement on guarantees | 1. According to the resolution of the 65th meeting of the 7th Board of Directors on Jul 23, 2019, the Group applied to the Yiwu Branch of ICBC and Yiwu Branch of SPDB for RMB1bn loans respectively for Huangyuan Shangbo and provided guarantees for the loans based on its shareholding ratio. The guarantees were joint and several liability guarantees, the maximum amounts of guarantees were RMB490mn and the terms were two years from the dates immediately following the maturities of the loans under corresponding loan contracts. As of Jun 30, 2020, Huangyuan Shangbo actually borrowed RMB887,170,875 from the Yiwu Branch of ICBC and RMB963,892,550 from the Yiwu Branch of SPDB (RMB700,923,611.11 and RMB981,198,055.56 by Dec 31, 2019). According to the guarantee contracts, the Group assumed guarantees of RMB434,713,728.75 to the Yiwu Branch of ICBC and RMB472,307,349.5 to the Yiwu Branch of SPDB (RMB343,452,569.44 and RMB480,787,047.22 by Dec 31, 2019). 2. According to the resolution of the fourth meeting of the 8th Board of Directors on Nov 4, 2019, the Group applied to the Yiwu Branch of Hengfeng Bank for a loan with a total amount no higher than RMB1.63bn for Chengzhen Property and provided guarantee based on its shareholding ratio. The guarantee was a joint and several liability guarantee, the maximum amount of guarantee was RMB391.2mn and the term was from the maturity date of the debt agreed under the corresponding loan contract until two years after the maturity date of the debt agreed in the loan contract with the latest expiration date among all loan contracts. As of Jun 30, 2020, Chengzhen Property actually borrowed RMB839,393,175 from the Yiwu Branch of Hengfeng Bank (RMB839,702,769.44 by Dec 31, 2019). According to the guarantee contract, the Group assumed guarantee of RMB201,454,362 to the Yiwu Branch of Hengfeng Bank (RMB201,528,664.67 by Dec 31, 2019). 3. According to the resolution of the 15th meeting of the 7th Board of Directors on Jul 1, 2015, the Group applied to the Yiwu Branch of ABC for an RMB750mn loan for Yiwu Shanglv and provided guarantee based on its shareholding ratio. The guarantee was a joint and several liability guarantee, the maximum amount of guarantee was RMB367.5mn and the term was 11 years. As of Jun 30, 2020, Yiwu Shanglv actually borrowed RMB532,302,406.56 from the Yiwu Branch of ABC (Dec 31, 2019: RMB587,412,606.21). According to the guarantee contract, the Group provided guarantee for RMB260,828,179.21 to the Yiwu Branch of ABC (RMB287,832,177.04 by Dec 31, 2019). Yiwu State-owned Capital Operation Co., Ltd. provided a counter guarantee for this guarantee. 4. According to relevant provisions, while selling houses, the Group shall provide guarantees for the mortgage loans of the buyers before they obtain the property ownership certificates. The outstanding amount of guarantees as of Jun 30, 2020 was RMB902,839,447.86 (RMB540,283,351.51 on Dec 31, 2019). Those guarantees would be released after the issuance of the property ownership certificates. |
3 Other material contracts
¡ÌApplicable ¡õN/A
No. | Name of contract | Contracting party | Contract price (RMB10,000) |
1 | Lease Agreement for Floor 3-4 and 8-21 of Building No.4 (Shuangchuang Building 1) of CCC Europe and U.S. Center | Zhejiang Jielian Network Technology Co., Ltd. | 1,117.15 |
2 | CCTV-4 Focus Today Advertisement Pre-sale Contract | CTV Golden Bridge Advertising Co., Ltd. | 1,280.81 |
3 | Construction Contract for Renovation of the City Parlor of E2 Pavilion of Expo Center | Zhejiang Baisha Construction Co., Ltd. | 2,252.33 |
4 | Construction Contract for Yiwu CCC Warehouse Park Trade Station (Construction of Warehouse 1# and 2#) | Zhejiang Longsha Construction Group Co., Ltd. | 10,447.45 |
5 | Contract for Contracted Construction of the Auxiliary Overpass Works of Yiwu Comprehensive Bonded Zone Project | Tianyang Construction Group Co., Ltd. | 3,667.18 |
XII Poverty alleviation by the Listed Company
¡õApplicable ¡ÌN/A
XIII Convertible corporate bonds
¡õApplicable ¡ÌN/A
XIV Environmental issues1 Statement on the environmental issues of the company listed among thekey polluters announced by the environmental protection authority andits important subsidiaries
¡õApplicable ¡ÌN/A
2 Statement on the environmental issues of the company not listed amongthe key polluters
¡õApplicable ¡ÌN/A
3 Explanation for the failure of the company not listed among the keypolluters to disclose environmental issues
¡õApplicable ¡ÌN/A
4 Further progress or change of the environmental issues disclosed duringthe reporting period
¡õApplicable ¡ÌN/A
XV Other significant matters1 Changes in the accounting policies, accounting estimates and accountingmethod from those during the last accounting period and the reasons andimpact thereof
¡ÌApplicable ¡õN/A
For details, please refer to Section X Financial Report-V Important AccountingPolicies and Accounting Estimates-(44) Changes in Important Accounting Policiesand Accounting Estimates-(a) Changes in Important Accounting Policies.
2 Retrospective restatement due to correction of material accounting errorsduring the reporting period, the corrected amount, the reasons andimpact
¡õApplicable ¡ÌN/A
3 Others
¡õApplicable ¡ÌN/A
Section VI Changes in common shares and shareholders
I Changes in capital stock1 Changes in shares
(1) Changes in shares
During the reporting period, the total number of shares and capital stock structure ofthe Company did not change.
(2) Explanation for the changes in shares
¡õApplicable ¡ÌN/A
(3) Impact of the changes in shares between the end of the reporting periodand the disclosure date of the Semi-Annual Report on financial data such asEPS and BVPS (if any)
¡õApplicable ¡ÌN/A
(4) Other matters the Company deems it necessary to disclose or required bythe securities regulatory authority to be disclosed
¡õApplicable ¡ÌN/A
2 Changes in non-tradable shares
¡õApplicable ¡ÌN/A
II ShareholdersTotal number of shareholders:
Number of common shareholders as of the end of the reporting period | 236,509 |
Total number of preferred shareholders whose voting rights had been restituted as of the end of the reporting period | 0 |
1 Shareholdings of the top 10 shareholders and top 10 holders of tradable
shares (or shareholders not subject to trading restrictions)
Unit: number of shares
Shares held by top 10 shareholders | |||||||
Shareholder (full name) | Change during the reporting period | Number of shares held at the end of the reporting period | Shareholding ratio (%) | Number of non-tradable shares held | Pledge or freezing | Ownership of shareholder | |
Status of shares | Quantity |
Yiwu China Commodities City Holdings Limited | 0 | 3,038,179,392 | 55.82 | 0 | None | 0 | State-owned legal person |
China Securities Finance Co., Ltd. | 0 | 266,718,485 | 4.90 | 0 | None | 0 | Unknown |
Zhejiang Provincial Finance Development Ltd. | 0 | 147,466,528 | 2.71 | 0 | None | 0 | State-owned legal person |
Central Huijin Investment Ltd. | 0 | 66,371,000 | 1.22 | 0 | None | 0 | State-owned legal person |
Bosera Funds£Agricultural Bank of China£Bosera China Securities Financial Assets Management Scheme | 0 | 27,672,800 | 0.51 | 0 | None | 0 | Unknown |
E Fund£Agricultural Bank of China£E Fund China Securities Financial Assets Management Scheme | 0 | 27,672,800 | 0.51 | 0 | None | 0 | Unknown |
Dacheng Fund£Agricultural Bank of China£Dacheng China Securities Financial Assets Management Scheme | 0 | 27,672,800 | 0.51 | 0 | None | 0 | Unknown |
Harvest Fund£Agricultural Bank of China£Harvest China Securities Financial Assets Management Scheme | 0 | 27,672,800 | 0.51 | 0 | None | 0 | Unknown |
GF Fund£Agricultural Bank of China£GF China Securities Financial Assets Management Scheme | 0 | 27,672,800 | 0.51 | 0 | None | 0 | Unknown | |||
Zhong Ou AMC£Agricultural Bank of China£Zhong Ou China Securities Financial Assets Management Scheme | 0 | 27,672,800 | 0.51 | 0 | None | 0 | Unknown | |||
Southern Asset Management£Agricultural Bank of China£Southern China Securities Financial Assets Management Scheme | 0 | 27,672,800 | 0.51 | 0 | None | 0 | Unknown | |||
ICBC Credit Suisse Asset Management£Agricultural Bank of China£ICBC Credit Suisse China Securities Financial Assets Management Scheme | 0 | 27,672,800 | 0.51 | 0 | None | 0 | Unknown | |||
Shares held by top 10 holders of tradable shares | ||||||||||
Shareholder | Number of tradable shares held | Type and quantity of shares | ||||||||
Type | Quantity | |||||||||
Yiwu China Commodities City Holdings Limited | 3,038,179,392 | RMB-denominated common share | 3,038,179,392 | |||||||
China Securities Finance Co., Ltd. | 266,718,485 | RMB-denominated common share | 266,718,485 | |||||||
Zhejiang Provincial Finance Development Ltd. | 147,466,528 | RMB-denominated common share | 147,466,528 | |||||||
Central Huijin Investment Ltd. | 66,371,000 | RMB-denominated common share | 66,371,000 |
Bosera Funds£Agricultural Bank of China£Bosera China Securities Financial Assets Management Scheme | 27,672,800 | RMB-denominated common share | 27,672,800 |
E Fund£Agricultural Bank of China£E Fund China Securities Financial Assets Management Scheme | 27,672,800 | RMB-denominated common share | 27,672,800 |
Dacheng Fund£Agricultural Bank of China£Dacheng China Securities Financial Assets Management Scheme | 27,672,800 | RMB-denominated common share | 27,672,800 |
Harvest Fund£Agricultural Bank of China£Harvest China Securities Financial Assets Management Scheme | 27,672,800 | RMB-denominated common share | 27,672,800 |
GF Fund£Agricultural Bank of China£GF China Securities Financial Assets Management Scheme | 27,672,800 | RMB-denominated common share | 27,672,800 |
Zhong Ou AMC£Agricultural Bank of China£Zhong Ou China Securities Financial Assets Management Scheme | 27,672,800 | RMB-denominated common share | 27,672,800 |
Southern Asset Management£Agricultural Bank of China£Southern China Securities Financial Assets Management Scheme | 27,672,800 | RMB-denominated common share | 27,672,800 |
ICBC Credit Suisse Asset Management£Agricultural Bank of China£ICBC Credit Suisse China Securities Financial Assets Management Scheme | 27,672,800 | RMB-denominated common share | 27,672,800 |
Explanation on the relationship or concerted action between the above shareholders | Zhejiang Provincial Finance Development Ltd. had a stake of 10% in Yiwu Market Development Group Co., Ltd., which was the controlling shareholder of Yiwu China Commodities City Holdings Limited |
Explanation on the preferred shareholders whose voting rights had been restituted and the quantity of shares held thereby | None |
Number of shares held by the top 10 shareholders subject to trading restrictionsand the trading restrictions
¡õApplicable ¡ÌN/A
2 Any strategic investor or ordinary legal person became one of the top 10
shareholders due to the allotment of new shares
¡õApplicable ¡ÌN/A
III Changes in controlling shareholder or actual controller
¡ÌApplicable ¡õN/A
New controlling shareholder | Yiwu China Commodities City Holdings Limited |
New actual controller | State-owned Assets Supervision and Administration Office of the People¡¯s Government of Yiwu |
Date of change | May 11, 2020 |
Designated website for query and date | www.sse.com.cn May 13, 2020 |
Section VII Preferred Shares
¡õApplicable ¡ÌN/A
Section VIII Directors, Supervisors and Senior Officers
I Changes in shares held by directors, supervisors and senior officers1 Changes in shares held by incumbent directors, supervisors and seniorofficers and those leaving office during the reporting period
¡ÌApplicable ¡õN/A
Unit: share
Name | Title | Opening number of shares held | Closing number of shares held | Change in shares held during the reporting period | Reasons for change |
ZHAO Wenge | Director | 40,000 | 40,000 | ||
WANG Dong | Director | ||||
WANG Chunming | Director | ||||
LI Chengqun | Director | ||||
XU Hang | Director | ||||
ZHU Hang | Director | ||||
LIU Zhiyuan | Independent director | ||||
MA Shuzhong | Independent director | ||||
HONG Jianqiao | Independent director | ||||
JIN Yanghua | Independent director | ||||
WU Yabin | Independent director | ||||
HUANG Ping | Supervisor | ||||
JIN Xiaojia | Supervisor | ||||
WANG Gaiying | Supervisor | ||||
ZHANG Yuhu | Supervisor | ||||
LIU Zhenting | Supervisor | 50,000 | 80,000 | 30,000 | Buying shares in the secondary market |
WU Xiubin | Senior officer | ||||
ZHANG Qizhen | Senior officer | ||||
WEI Gang | Senior officer | ||||
ZHAO Difang | Senior officer | 50,100 | 50,100 |
Statement on other matters
¡õApplicable ¡ÌN/A
2 Stock option incentives granted to directors, supervisors and seniorofficers during the reporting period
¡õApplicable ¡ÌN/A
¡õApplicable ¡ÌN/A
II Changes in directors, supervisors and senior officers of the Company
¡ÌApplicable ¡õN/A
Name | Title | Change |
HONG Jianxiao | Independent director | Election |
JIN Yanghua | Independent director | Election |
LIU Zhiyuan | Independent director | Leaving office |
WU Yabin | Independent director | Leaving office |
Statement on the changes in directors, supervisors and senior officers of theCompany
¡õApplicable ¡ÌN/A
III Others
¡õApplicable ¡ÌN/A
Section IX Corporate Bonds
¡ÌApplicable ¡õN/A
I Basic information on corporate bonds
Unit: RMB100mn
Name of bond | Abbreviation | Code | Issue date | Maturity date | Outstanding amount | Interest rate (%) | Method of principal repayment and interest payment | Marketplace |
Publicly offered corporate bond 2019of Zhejiang China Commodities City Group Co.,Ltd (Phase I) | 19 CCC 01 | 155450 | Jun 3, 2019 | Jun 5, 2022 | 8 | 4.3 | For the principal repayment and interest payment of the bond, the list of bondholders would be made according to the relevant provisions of the bond registration authority. The specific matters shall be handled according to the relevant provisions of the bond registration authority. | Shanghai Stock Exchange |
Publicly offered corporate bond 2019of Zhejiang China Commodities City Group Co.,Ltd (Phase II) | 19 CCC 02 | 155750 | Sep 26, 2019 | Sep 27, 2022 | 7 | 3.99 | For the principal repayment and interest payment of the bond, the list of bondholders would be made according to the relevant provisions of the bond registration authority. The specific matters shall be handled according to the relevant provisions of the bond registration authority. | Shanghai Stock Exchange |
Principal repayment and interest payment of corporate bonds
¡ÌApplicable ¡õN/A
On Jun 5, 2020, the Company paid interest to all holders of 19 CCC 01 for theperiod from Jun 5, 2019 to Jun 4, 2020.Other statement on corporate bonds
¡õApplicable ¡ÌN/A
II Bond trustee, contact information of the trustee and contact information
of credit rating agency
Bond trustee | Name | Haitong Securities Co., Ltd. |
Office address | 15/F Yuanxiangtai Building, No.5 Anding Road, Chaoyang District, Beijing | |
Contact person | ZHANG Nan | |
Telephone | 010-88027267 | |
Credit rating agency | Name | Shanghai Brilliance Credit Rating & Investors Service Co., Ltd. |
Office address | 14/F Huasheng Tower, No.398 Hankou Road, Shanghai |
Other statement:
¡õApplicable ¡ÌN/A
III Use of funds raised from corporate bonds
¡ÌApplicable ¡õN/A
RMB800mn of funds were raised from the 2019 corporate bond (Phase I). TheCompany has used the funds after deduction of issuance fees to repay itsinterest-bearing liabilities in accordance with the plan for the use of raised funds asagreed in the prospectus.RMB700mn of funds were raised from the 2019 corporate bond (Phase II). TheCompany has used the funds after deduction of issuance fees to repay itsinterest-bearing liabilities in accordance with the plan for the use of raised funds asagreed in the prospectus.
IV Credit ratings of corporate bonds
¡ÌApplicable ¡õN/A
Shanghai Brilliance Credit Rating & Investors Service Co., Ltd. issued the CreditRating Surveillance Report on Zhejiang China Commodities City Group Co., Ltd.
and the 2019 CCC 01 and 2019 CCC 02 [Brilliance Surveillance (2020) 100930] onJun 29, 2020. The Company had an issuer rating of AAA with stable outlook, andthe bonds had a rating of AAA.V Credit enhancement mechanism for corporate bonds, bond repaymentplans and other related matters during the reporting period
¡ÌApplicable ¡õN/A
During the reporting period, there was no change to the credit enhancementmechanism, bond repayment plans or other bond repayment protection measuresfor the corporate bonds issued by the Company. In order to fully and effectivelyprotect the bondholders¡¯ interests, the Company has made a series of plans andarrangements for the timely and full repayment of the corporate bonds, includingdetermining the specific department and personnel to be in charge, opening aspecial bond repayment account, formulating and strictly implementing the cashmanagement plan, making proper organization and coordination, giving full play tothe role of the bond trustee and strictly performing the information disclosureobligation to develop a set of measures to ensure interest payment and principalrepayment for the bonds.VI Convention of bondholders¡¯ meetings
¡õApplicable ¡ÌN/A
VII Performance of duties by the bond trustee of the Company¡¯s corporatebonds
¡ÌApplicable ¡õN/A
The trustee of the Company¡¯s corporate bonds, Haitong Securities Co., Ltd., duringthe reporting period, performed its duty as the trustee in compliance with theAdministrative Measures for the Issuance and Trading of Corporate Bonds, theRules for Listing of Corporate Bonds on Shanghai Stock Exchange, the Code ofConduct for Trustees of Corporate Bonds and other related laws and regulations,including but not limited to paying continuing attention to the Company¡¯s creditstatus and supervising the receipt, deposit, transfer of the funds raised from thecorporate bonds, principal repayment and interest payment in the Company¡¯sdesignated special account.VIII The following accounting data and financial indicators as of the end of thereporting period and the end of 2019 (or as of the end of the currentreporting period or the end of the same period in the previous year)
¡ÌApplicable ¡õN/A
Unit: RMB
Major indicator | As of the end of the current reporting period | As of the end of 2019 | Change from the end of 2019 (%) | Reasons for change |
Current ratio | 119.74% | 120.44% | -0.70 percentage points | |
Quick ratio | 84.80% | 87.12% | -2.32 percentage points | |
Debt-to-asset ratio (%) | 56.99 | 58.23 | -1.24 percentage points | |
Loan repayment rate (%) | 100.00 | 100.00 | ||
Current reporting period (Jan-Jun) | Same period in the previous year | YoY change (%) | Reasons for change | |
EBITDA-to-interest coverage ratio | 5.23 | 5.99 | -0.76 | |
Interest payment rate (%) | 100.00 | 100.00 |
IX Overdue debts
¡õApplicable ¡ÌN/A
X Payment of interest and repayment of principal for other bonds and debtfinancing instruments of the Company
¡ÌApplicable ¡õN/A
1. The Company issued a 270-day super-short-term commercial paper of RMB1bnat an annual interest rate of 3.30% on Aug 29, 2019. The lead underwriter wasChina Merchants Bank Co., Ltd. and the joint underwriter was Industrial andCommercial Bank of China Co., Ltd.. The Company repaid the principal and paidthe interest for the bond upon its maturity on May 29, 2020.
2. The Company issued a 180-day super-short-term commercial paper of RMB1bnat an annual interest rate of 2.89% on Feb 18, 2020. The lead underwriter wasAgricultural Bank of China Co., Ltd. and the joint underwriter was Bank of NingboCo., Ltd.. The bond has not matured yet.
3. The Company issued a 120-day super-short-term commercial paper of RMB1bnat an annual interest rate of 1.97% on May 14, 2020. The lead underwriter wasChina Construction Bank Co., Ltd. and the joint underwriter was Export-Import Bankof China Co., Ltd.. The bond has not matured yet.XI Lines of credit from banks during the reporting period
¡ÌApplicable ¡õN/A
As of the end of the reporting period, the Company had been granted by banks linesof credit with an aggregate amount of RMB10bn, RMB4.264bn of which was usedand RMB5.736bn was unused.
XII Execution of promises or commitments in the prospectus of the
Company¡¯s corporate bonds during the reporting period
¡ÌApplicable ¡õN/A
During the reporting period, the Company strictly fulfilled the promises orcommitments in the prospectus of the Company¡¯s corporate bonds, used the raisedfunds in compliance therewith, and paid interest of the corporate bonds in time,without prejudice to the interests of bond investors.XIII Significant matters of the Company and impact thereof on the Company¡¯soperation and solvency
¡ÌApplicable ¡õN/A
The 22.667% equity in Hunan Provincial Asset Management Co., Ltd. held by theindustry fund Yiwu Shangfu Chuangzhi Investment Center (limited partnership), forwhich the Company¡¯s wholly-owned subsidiary CCCF subscribed, was frozen bythe Public Security Bureau of Shanghai for a term from Sep 6, 2018 until Sep 6,2019. For details, please refer to the Announcement of China Commodities City onthe Freezing of the Investment Project of the Industry Fund Subscribed for by ChinaCommodities City Financial Holdings (Announcement code: Temporary 2018-045)disclosed on the website of Shanghai Stock Exchange www.sse.com.cn.In 2019, the 22.667% equity held by Yiwu Shangfu Chuangzhi Investment Center(limited partnership) in Hunan Provincial Asset Management Co., Ltd. kept beingfrozen by the Public Security Bureau of Shanghai for a term from Sep 6, 2019 untilMar 5, 2020. For details, please refer to the Announcement on the Progress of theFreezing of the Investment Project of the Industry Fund Subscribed for by ChinaCommodities City Financial Holdings (Announcement Code: Temporary 2019-067)disclosed on the website of Shanghai Stock Exchange www.sse.com.cn.On Mar 6, 2020, the 22.667% equity held by Yiwu Shangfu Chuangzhi InvestmentCenter (limited partnership) in Hunan Provincial Asset Management Co., Ltd. keptbeing frozen by the Public Security Bureau of Shanghai for a term from Mar 6, 2020until Sep 5, 2020. For details, please refer to the Announcement of ChinaCommodities City on the Freezing of the Investment Project of the Industry FundSubscribed for by China Commodities City Financial Holdings (Announcement code:
Temporary 2020-010) disclosed on the website of Shanghai Stock Exchangewww.sse.com.cn.The amount involved in the freezing of the investment project of the industry fundsubscribed for by CCCF occupied a small share in the Company¡¯s total assets andrevenue. Therefore, it would not have materially adverse impact on the Company¡¯soperation and solvency.
Section X Financial Report
I Auditor¡¯s report
¡õApplicable ¡ÌN/A
II Financial statements
Consolidated Balance Sheet
Jun 30, 2020Prepared by: Zhejiang China Commodities City Group Co., Ltd.
Unit: RMB
Item | Note | Jun 30, 2020 | Dec 31, 2019 |
Current assets: |
Cash and cash equivalents | 7,180,175,472.37 | 6,486,408,651.88 |
Held-for-trading financial assets | 32,092,542.45 | 38,077,703.92 |
Accounts receivable | 229,234,716.07 | 16,031,078.05 |
Prepayments | 183,821,744.68 | 44,678,187.98 |
Other receivables | 2,501,241,301.06 | 1,397,228,398.98 |
In which: interest receivable | 136,159,029.06 | 191,064,382.11 |
Inventory | 4,532,687,980.47 | 4,296,061,444.25 |
Other current assets | 872,056,057.97 | 3,099,955,902.50 |
Total current assets | 15,531,309,815.07 | 15,378,441,367.56 |
Non-current assets: |
Long-term receivables | 93,650,436.15 | 61,250,000.00 |
long-term equity investment | 1,906,728,774.14 | 1,771,420,054.57 |
Other equity instruments investment | 633,408,055.13 | 642,187,968.78 |
Other non-current financial assets | 1,557,418,628.60 | 1,519,449,439.02 |
Property investment | 2,335,181,557.64 | 1,863,218,356.40 |
Fixed assets | 5,306,898,046.33 | 4,783,819,070.71 |
Construction in progress | 336,579,220.70 | 865,754,600.02 |
Intangible assets | 3,836,072,536.98 | 3,456,137,246.02 |
Long-term prepaid expenses | 105,894,632.01 | 139,502,382.87 |
Deferred income tax assets | 170,417,324.88 | 180,404,801.30 |
Other non-current assets | 160,753,316.00 | 661,648,707.19 |
Total non-current assets | 16,443,002,528.56 | 15,944,792,626.88 |
Total assets | 31,974,312,343.63 | 31,323,233,994.44 |
Current liabilities: |
Short-term borrowings | 3,577,474,227.22 | 4,178,903,704.82 |
Accounts payable | 690,477,218.81 | 525,241,493.48 |
Advances from customers | 18,672,952.84 | 4,508,455,128.63 |
Contract liabilities | 4,403,754,987.45 | 0.00 |
Payroll payable | 71,026,158.06 | 197,174,419.96 |
Tax payable | 86,482,536.21 | 280,184,253.26 |
Other payables | 759,474,210.61 | 909,483,132.47 |
Non-current liabilities due within one year | 320,364,833.35 | 270,332,413.94 |
Other current liabilities | 3,042,820,666.59 | 2,023,012,118.22 |
Total current liabilities | 12,970,547,791.14 | 12,892,786,664.78 |
Non-current liabilities: |
Long-term borrowings | 370,448,777.78 | 530,694,313.98 |
Bonds payable | 4,625,150,185.91 | 4,564,291,387.81 |
Estimated liabilities | 110,620,306.10 | 110,620,306.10 |
Deferred income | 28,756,014.14 | 27,966,750.98 |
Deferred income tax liabilities | 115,854,113.53 | 112,574,338.69 |
Other non-current liabilities | 1,148.89 |
Total non-current liabilities | 5,250,829,397.46 | 5,346,148,246.45 |
Total liabilities | 18,221,377,188.60 | 18,238,934,911.23 |
Owners¡¯ equity (or shareholders¡¯ equity) |
Paid-in capital (or share capital) | 5,443,214,176.00 | 5,443,214,176.00 |
Capital reserve | 1,508,224,328.83 | 1,524,183,779.64 |
Other comprehensive income | 59,416,179.81 | 66,267,192.74 |
Surplus reserve | 1,236,166,911.81 | 1,236,166,911.81 |
Undistributed profits | 5,470,382,697.83 | 4,750,787,389.17 |
Total equity attributable to owners (shareholders) of the parent company | 13,717,404,294.28 | 13,020,619,449.36 |
Minority interest | 35,530,860.75 | 63,679,633.85 |
Total owners¡¯ equity (or shareholders¡¯ equity) | 13,752,935,155.03 | 13,084,299,083.21 |
Total liabilities and owners¡¯ equity (or shareholders¡¯ equity) | 31,974,312,343.63 | 31,323,233,994.44 |
Legal representative: ZHAO Wenge Person in charge of accounting: WANG Dong Person incharge of the accounting body: ZHAO Difang
Balance Sheet of Parent Company
Jun 30, 2020Prepared by: Zhejiang China Commodities City Group Co., Ltd.
Unit: RMB
Item | Note | Jun 30, 2020 | Dec 31, 2019 |
Current assets: | |||
Cash and cash equivalents | 6,748,814,610.37 | 6,312,119,746.26 | |
Held-for-trading financial assets | 16,049.67 | 1,211.14 | |
Accounts receivable | 26,821,273.41 | 2,381,698.23 | |
Accounts receivable financing | 0.00 | 0.00 | |
Prepayments | 49,755,429.68 | 11,914,907.36 | |
Other receivables | 2,193,799,656.48 | 1,280,138,618.41 | |
In which: interest receivable | 98,225,073.23 | 134,543,859.25 | |
Inventory | 10,102,415.36 | 6,622,207.78 | |
Other current assets | 3,458,085,275.62 | 4,252,429,806.32 | |
Total current assets | 12,487,394,710.59 | 11,865,608,195.50 | |
Non-current assets: | |||
Long-term receivables | 61,250,000.00 | 61,250,000.00 | |
long-term equity investment | 7,394,353,341.94 | 6,886,096,995.77 | |
Other equity instruments investment | 633,408,055.13 | 642,187,968.78 | |
Other non-current financial assets | 357,696,705.19 | 371,736,330.52 | |
Property investment | 1,553,272,163.71 | 1,062,037,085.45 | |
Fixed assets | 4,472,530,982.43 | 3,929,018,558.56 | |
Construction in progress | 226,954,881.00 | 780,166,171.12 | |
Intangible assets | 3,712,506,172.27 | 3,331,543,646.76 | |
Long-term prepaid expenses | 43,495,273.46 | 63,262,990.25 | |
Deferred income tax assets | 69,376,871.65 | 94,333,102.87 | |
Other non-current assets | 15,500,000.00 | 519,850,000.00 | |
Total non-current assets | 18,540,344,446.78 | 17,741,482,850.08 | |
Total assets | 31,027,739,157.37 | 29,607,091,045.58 | |
Current liabilities: | |||
Short-term borrowings | 3,577,474,227.22 | 4,178,903,704.82 | |
Accounts payable | 153,082,065.62 | 208,383,192.69 | |
Advances from customers | 4,043,841.10 | 2,918,036,408.24 | |
Contract liabilities | 1,569,052,064.60 | 0.00 | |
Payroll payable | 59,895,491.96 | 162,095,870.71 | |
Tax payable | 160,025,080.54 | 280,400,924.97 | |
Other payables | 553,820,632.89 | 618,839,560.98 | |
In which: interest payable | 2,320,084.41 | 602,658.03 | |
Non-current liabilities due within one year | 320,364,833.35 | 270,332,413.94 | |
Other current liabilities | 6,076,747,752.00 | 3,044,639,789.79 | |
Total current liabilities | 12,474,505,989.28 | 11,681,631,866.14 | |
Non-current liabilities: |
Long-term borrowings | 370,448,777.78 | 530,694,313.98 | |
Bonds payable | 4,625,150,185.91 | 4,564,291,387.81 | |
Estimated liabilities | 110,620,306.10 | 110,620,306.10 | |
Deferred income | 27,256,014.14 | 27,966,750.98 | |
Deferred income tax liabilities | 88,277,050.23 | 92,975,854.98 | |
Other non-current liabilities | 0.00 | 187.73 | |
Total non-current liabilities | 5,221,752,334.16 | 5,326,548,801.58 | |
Total liabilities | 17,696,258,323.44 | 17,008,180,667.72 | |
Owners¡¯ equity (or shareholders¡¯ equity) | |||
Paid-in capital (or share capital) | 5,443,214,176.00 | 5,443,214,176.00 | |
Capital reserve | 1,488,096,614.19 | 1,489,516,614.19 | |
Other comprehensive income | 59,836,968.10 | 66,421,903.33 | |
Surplus reserve | 1,236,113,435.98 | 1,236,113,435.98 | |
Undistributed profits | 5,104,219,639.66 | 4,363,644,248.36 | |
Total owners¡¯ equity (shareholders¡¯ equity) | 13,331,480,833.93 | 12,598,910,377.86 | |
Total liabilities and owners¡¯ equity (or shareholders¡¯ equity) | 31,027,739,157.37 | 29,607,091,045.58 |
Legal representative: ZHAO Wenge Person in charge of accounting: WANG Dong Person incharge of the accounting body: ZHAO Difang
Consolidated Income Statement
Jan-Jun 2020
Unit: RMB
Item | Note | 1H20 | 1H19 |
I. Gross revenue | 2,121,448,794.31 | 1,803,596,554.74 | |
In which: revenue | 2,121,448,794.31 | 1,803,596,554.74 | |
II. Gross cost | 1,277,687,351.73 | 989,226,948.18 | |
In which: cost of sales | 869,227,556.47 | 642,682,794.18 | |
Taxes and surcharges | 81,768,664.49 | 89,069,721.05 | |
Sales expenses | 87,887,071.86 | 47,375,102.54 | |
Administrative expenses | 130,450,924.63 | 116,426,201.46 | |
R&D expenses | 17,081,225.94 | 5,967,667.36 | |
Financial expenses | 91,271,908.34 | 87,705,461.59 | |
In which: interest expenses | 234,530,903.42 | 223,018,844.81 | |
Interest income | 120,683,282.59 | 131,284,052.33 | |
Plus: other income | 13,684,424.06 | 3,593,440.80 | |
Investment income (loss is indicated by ¡°-¡±) | 119,150,641.25 | 56,649,194.91 | |
In which: income from investment in associates and joint ventures | 13,185,907.49 | 27,183,714.48 | |
Changes in fair value (loss is indicated by ¡°-¡±) | 20,193,509.58 | 5,642,525.18 | |
Credit impairment loss (loss is indicated by ¡°-¡±) | -2,379,335.67 | -5,552,323.74 | |
Assets impairment loss (loss is indicated by ¡°-¡±) | 0.00 | 639,659.42 | |
Income from disposal of assets (loss is indicated by ¡°-¡±) | 1,095,496.24 | -78,794.35 | |
III. Operating profit (loss is indicated by ¡°-¡±) | 995,506,178.04 | 875,263,308.78 | |
Plus: income from non-operating activities | 753,575.18 | 1,623,558.60 | |
Less: expenses from non-operating activities | 3,230,897.12 | 746,151.28 | |
IV. Profits before tax (loss is indicated by ¡°-¡±) | 993,028,856.10 | 876,140,716.10 | |
Less: income tax | 272,987,186.07 | 207,057,697.90 | |
V. Net profits (net loss is indicated by ¡°-¡±) | 720,041,670.03 | 669,083,018.20 | |
(I) Categorized by continuity of operation | |||
1. Net profits from continuing operation (net loss is indicated by ¡°-¡±) | 720,041,670.03 | 669,083,018.20 | |
(II) Categorized by ownership | |||
1. Net profits attributable to shareholders of the parent company (net loss is indicated by ¡°-¡±) | 719,595,308.66 | 673,681,239.39 | |
2. Minority interest(net loss is indicated by ¡°-¡±) | 446,361.37 | -4,598,221.19 | |
VI. Other comprehensive income, net of tax | -6,851,012.93 | 88,455,940.29 | |
(I) Other comprehensive income attributable to owners of the parent company, net of tax | -6,851,012.93 | 88,455,940.29 | |
1. Other comprehensive income that cannot be reclassified as profits or loss | -6,584,935.23 | 88,426,273.04 |
(3) Changes in fair value of investments in other equity instruments | -6,584,935.23 | 88,426,273.04 | |
2 . Other comprehensive income that will be reclassified as profits or loss | -266,077.70 | 29,667.25 | |
(6) Difference arising from the translation of foreign currency financial statements | -266,077.70 | 29,667.25 | |
VII. Total comprehensive income | 713,190,657.10 | 757,538,958.49 | |
(I) Total comprehensive income attributable to owners of the parent company | 712,744,295.73 | 762,137,179.68 | |
(II) Total comprehensive income attributable to minority shareholders | 446,361.37 | -4,598,221.19 | |
VIII. Earnings per share: | |||
(I) Basic earnings per share | 0.13 | 0.12 | |
(II) Diluted earnings per share | 0.13 | 0.12 |
For merger of the enterprises under common control during the current period, net profits of themerged party prior to the merger were RMB 0, and net profits of the merged party during theprevious period were RMB 0.Legal representative: ZHAO Wenge Person in charge of accounting: WANG Dong Person incharge of the accounting body: ZHAO Difang
Income Statement of Parent Company
Jan-Jun 2020
Unit: RMB
Item | Note | 1H20 | 1H19 |
I. Revenue | 1,662,962,086.90 | 1,559,477,764.56 | |
Less: cost of sales | 417,683,630.26 | 473,294,334.89 | |
Taxes and surcharges | 65,927,422.27 | 63,338,458.90 | |
Sales expenses | 71,698,416.11 | 34,751,998.43 | |
Administrative expenses | 68,180,551.76 | 68,815,752.68 | |
R&D expenses | 0.00 | 0.00 | |
Financial expenses | 93,978,042.43 | 89,545,189.66 | |
In which: interest expenses | 234,530,903.42 | 223,018,844.81 | |
Interest income | 119,943,387.77 | 130,758,727.73 | |
Plus: other income | 8,427,874.93 | 1,921,576.37 | |
Investment income (loss is indicated by ¡°-¡±) | 43,373,764.99 | 193,096,367.40 | |
In which: income from investment in associates and joint ventures | 22,242,937.96 | 164,367,325.33 | |
Income from changes in fair value (loss is indicated by ¡°-¡±) | -11,815,305.33 | 5,642,525.18 | |
Credit impairment loss (loss is indicated by ¡°-¡±) | -75,439.45 | -1,413,587.00 | |
Income from disposal of assets (loss is indicated by ¡°-¡±) | -776.57 | -86,174.15 | |
II. Operating profits (loss is indicated by ¡°-¡±) | 985,404,142.64 | 1,028,892,737.80 | |
Plus: income from non-operating activities | 469,374.66 | 1,472,052.72 | |
Less: expenses from non-operating activities | 1,413,092.81 | 703,390.17 | |
III. Profits before tax (loss is indicated by ¡°-¡±) | 984,460,424.49 | 1,029,661,400.35 | |
Less: income tax | 243,885,033.19 | 197,548,738.20 | |
IV. Net profits (net loss is indicated by ¡°-¡±) | 740,575,391.30 | 832,112,662.15 | |
(I) Categorized by continuity of operation(net loss is indicated by ¡°-¡±) | 740,575,391.30 | 832,112,662.15 | |
V. Other comprehensive income, net of tax | -6,584,935.23 | 88,426,273.04 | |
(I) Other comprehensive income that cannot be reclassified as profit or loss | -6,584,935.23 | 88,426,273.04 | |
3. Changes in fair value of investments in other equity instruments | -6,584,935.23 | 88,426,273.04 | |
VI. Total comprehensive income | 733,990,456.07 | 920,538,935.19 | |
VII. Earnings per share: | |||
(I) Basic earnings per share | 0.14 | 0.15 | |
(II) Diluted earnings per share | 0.14 | 0.15 |
Legal representative: ZHAO Wenge Person in charge of accounting: WANG Dong Person incharge of the accounting body: ZHAO Difang
Consolidated Cash Flow Statement
Jan-Jun 2020
Unit: RMB
Item | Note | 1H20 | 1H19 |
I. Cash flow from operating activities: | |||
Cash received from sale of goods and rendering of services | 1,607,591,030.14 | 1,476,568,920.71 | |
Other cash receipts relating to operating activities | 142,203,534.16 | 259,877,358.98 | |
Sub-total of cash inflow from operating activities | 1,749,794,564.30 | 1,736,446,279.69 | |
Cash paid for goods and services | 728,107,752.48 | 769,062,206.11 | |
Cash paid to and on behalf of employees | 335,913,290.70 | 284,631,678.65 | |
Payments of taxes | 637,729,363.85 | 486,166,592.02 | |
Other cash payments relating to operating activities | 751,110,857.43 | 272,419,834.80 | |
Sub-total of cash outflow from operating activities | 2,452,861,264.46 | 1,812,280,311.58 | |
Net cash flow from operating activities | -703,066,700.16 | -75,834,031.89 | |
II. Cash flow from investing activities: | |||
Cash received from recovery of investment | 2,247,254,852.56 | 2,493,332,727.90 | |
Cash received from investment income | 21,358,547.58 | 28,724,313.19 | |
Other cash receipts relating to investing activities | 192,154,897.34 | ||
Sub-total of cash inflow from investing activities | 2,460,768,297.48 | 2,522,057,041.09 | |
Cash paid to acquire and construct fixed assets, intangible assets and other long-term assets | 1,193,403,588.05 | 510,756,044.48 | |
Cash paid to acquire investments | 650,338,982.38 | 4,626,282,489.59 | |
Sub-total of cash outflow from investing activities | 1,843,742,570.43 | 5,137,038,534.07 | |
Net cash flow from investing activities | 617,025,727.05 | -2,614,981,492.98 | |
III. Cash flow from financing activities: | |||
Cash received from borrowings | 4,490,000,000.00 | 5,523,718,080.00 | |
Cash received from bond issuance | 1,999,200,628.92 | 3,800,000,000.00 | |
Sub-total of cash inflow from financing activities | 6,489,200,628.92 | 9,323,718,080.00 | |
Cash paid for debts repayment | 6,200,000,000.00 | 6,425,000,000.00 | |
Cash paid for distribution of dividends or profits or payment of interest | 159,190,038.50 | 326,407,444.27 | |
In which: dividends or profits paid by subsidiaries to minority shareholders | 114,400.00 | ||
Sub-total of cash outflow from financing activities | 6,359,190,038.50 | 6,751,407,444.27 | |
Net cash flow from financing activities | 130,010,590.42 | 2,572,310,635.73 | |
IV. Effect of foreign exchange rate changes on cash and cash equivalents | |||
V. Net increase in cash and cash equivalents | 43,969,617.31 | -118,504,889.14 |
Plus: opening balance of cash and cash equivalents | 3,426,712,549.26 | 2,632,160,386.99 | |
VI. Closing balance of cash and cash equivalents | 3,470,682,166.57 | 2,513,655,497.85 |
Legal representative: ZHAO Wenge Person in charge of accounting: WANG Dong Person incharge of the accounting body: ZHAO Difang
Cash Flow Statement of Parent Company
Jan-Jun 2020
Unit: RMB
Item | Note | 1H20 | 1H19 |
I. Cash flow from operating activities: | |||
Cash received from sale of goods and rendering of services | 215,927,804.72 | 940,381,616.60 | |
Other cash receipts relating to operating activities | 136,220,582.47 | 226,993,031.71 | |
Sub-total of cash inflow from operating activities | 352,148,387.19 | 1,167,374,648.31 | |
Cash paid for goods and services | 244,988,576.96 | 163,735,765.13 | |
Cash paid to and on behalf of employees | 227,142,936.38 | 214,599,730.27 | |
Payments of taxes | 433,944,546.40 | 357,990,217.95 | |
Other cash payments relating to operating activities | 504,258,445.05 | 137,556,845.36 | |
Sub-total of cash outflow from operating activities | 1,410,334,504.79 | 873,882,558.71 | |
Net cash flow from operating activities | -1,058,186,117.60 | 293,492,089.60 | |
II. Cash flow from investing activities: | |||
Cash received from recovery of investments | 2,243,593,538.47 | 2,053,332,727.90 | |
Cash received from investment income | 21,358,547.58 | 27,987,874.83 | |
Other cash receipts relating to investing activities | 135,595,485.59 | ||
Sub-total of cash inflow from investing activities | 2,400,547,571.64 | 2,081,320,602.73 | |
Cash paid to acquire and construct fixed assets, intangible assets and other long-term assets | 1,114,320,349.50 | 201,898,274.23 | |
Cash paid to acquire investments | 415,508,687.71 | 4,996,518,435.13 | |
Sub-total of cash outflow from investing activities | 1,529,829,037.21 | 5,198,416,709.36 | |
Net cash flow from investing activities | 870,718,534.43 | -3,117,096,106.63 | |
III. Cash flow from financing activities: | |||
Cash received from borrowings | 4,490,000,000.00 | 5,523,718,080.00 | |
Cash received from bond issuance | 1,999,200,628.92 | 3,800,000,000.00 | |
Sub-total of cash inflow from financing activities | 6,489,200,628.92 | 9,323,718,080.00 | |
Cash paid for debts repayment | 6,200,000,000.00 | 6,425,000,000.00 | |
Cash paid for distribution of dividends or profits or payment of interest | 158,618,038.50 | 326,407,444.27 | |
Sub-total of cash outflow from financing activities | 6,358,618,038.50 | 6,751,407,444.27 | |
Net cash flow from financing activities | 130,582,590.42 | 2,572,310,635.73 | |
IV. Effect of foreign exchange rate changes on cash and cash equivalents | |||
V. Net increase in cash and cash equivalents | -56,884,992.75 | -251,293,381.30 | |
Plus: opening balance of cash and cash equivalents | 3,305,541,700.68 | 2,516,202,566.17 |
VI. Closing balance of cash and cash equivalents | 3,248,656,707.93 | 2,264,909,184.87 |
Legal representative: ZHAO Wenge Person in charge of accounting: WANG Dong Person incharge of the accounting body: ZHAO Difang
Statement of Changes in Consolidated Owners¡¯ Equity
Jan-Jun 2020
Unit: RMB
Item | 1H20 | |||||||
Equity attributable to owners of the parent company | Minority interest | Total owners¡¯ equity | ||||||
Paid-in capital (share capital) | Capital reserve | Other comprehensive income | Surplus reserve | Undistributed profits | Sub-total | |||
I. Closing balance of the previous year | 5,443,214,176.00 | 1,524,183,779.64 | 66,267,192.74 | 1,236,166,911.81 | 4,750,787,389.17 | 13,020,619,449.36 | 63,679,633.85 | 13,084,299,083.21 |
II. Opening balance of the current year | 5,443,214,176.00 | 1,524,183,779.64 | 66,267,192.74 | 1,236,166,911.81 | 4,750,787,389.17 | 13,020,619,449.36 | 63,679,633.85 | 13,084,299,083.21 |
III. YoY change (decrease is indicated by ¡°-¡±) | -15,959,450.81 | -6,851,012.93 | 719,595,308.66 | 696,784,844.92 | -28,148,773.10 | 668,636,071.82 | ||
(I) Total comprehensive income | -6,851,012.93 | 719,595,308.66 | 712,744,295.73 | 446,361.37 | 713,190,657.10 | |||
(II)Owners¡¯ contribution to and reduction in capital | -15,959,450.81 | -15,959,450.81 | -28,595,134.47 | -44,554,585.28 | ||||
1£®Common shares contributed by owners | - | 4,000,000.00 | 4,000,000.00 | |||||
4£®Others | -15,959,450.81 | -15,959,450.81 | -32,595,134.47 | -48,554,585.28 | ||||
IV. Closing balance of the current period | 5,443,214,176.00 | 1,508,224,328.83 | 59,416,179.81 | 1,236,166,911.81 | 5,470,382,697.83 | 13,717,404,294.28 | 35,530,860.75 | 13,752,935,155.03 |
Item | 1H19 | |||||||
Equity attributable to owners of the parent company | Minority interest | Total owners¡¯ equity | ||||||
Paid-in capital (share capital) | Capital reserve | Other comprehensive income | Surplus reserve | Undistributed profits | Sub-total | |||
I. Closing balance of the previous year | 5,443,214,176.00 | 1,520,831,406.81 | -32,317,790.35 | 1,086,808,237.88 | 3,957,969,914.54 | 11,976,505,944.88 | 62,990,540.97 | 12,039,496,485.85 |
II. Opening balance of the current year | 5,443,214,176.00 | 1,520,831,406.81 | -32,317,790.35 | 1,086,808,237.88 | 3,957,969,914.54 | 11,976,505,944.88 | 62,990,540.97 | 12,039,496,485.85 |
III. YoY change (decrease is indicated | -322,000.00 | 88,421,605.57 | 347,088,388.83 | 435,187,994.40 | -4,598,221.19 | 430,589,773.21 |
by ¡°-¡±) | ||||||||
(I) Total comprehensive income | -322,000.00 | 88,421,605.57 | 673,681,239.39 | 761,780,844.96 | -4,598,221.19 | 757,182,623.77 | ||
(III) Profits distribution | -326,592,850.56 | -326,592,850.56 | -326,592,850.56 | |||||
3£®Distribution to owners (or shareholders) | -326,592,850.56 | -326,592,850.56 | -326,592,850.56 | |||||
IV. Closing balance of the current period | 5,443,214,176.00 | 1,520,509,406.81 | 56,103,815.22 | 1,086,808,237.88 | 4,305,058,303.37 | 12,411,693,939.28 | 58,392,319.78 | 12,470,086,259.06 |
Legal representative: ZHAO Wenge Person in charge of accounting: WANG Dong Person in charge of the accounting body: ZHAO Difang
Statement of Changes in Owners¡¯ Equity of Parent Company
Jan-Jun 2020
Unit: RMB
Item | 1H20 | |||||
Paid-in capital (share capital) | Capital reserve | Other comprehensive income | Surplus reserve | Undistributed profits | Total owners¡¯ equity | |
I. Closing balance of the previous year | 5,443,214,176.00 | 1,489,516,614.19 | 66,421,903.33 | 1,236,113,435.98 | 4,363,644,248.36 | 12,598,910,377.86 |
II. Opening balance of the current year | 5,443,214,176.00 | 1,489,516,614.19 | 66,421,903.33 | 1,236,113,435.98 | 4,363,644,248.36 | 12,598,910,377.86 |
III. YoY change (decrease is indicated by ¡°-¡±) | - | -1,420,000.00 | -6,584,935.23 | - | 740,575,391.30 | 732,570,456.07 |
(I) Total comprehensive income | - | - | -6,584,935.23 | - | 740,575,391.30 | 733,990,456.07 |
(II)Owners¡¯ contribution to and reduction in capital | - | -1,420,000.00 | - | - | - | -1,420,000.00 |
4£®Others | -1,420,000.00 | - | - | - | -1,420,000.00 | |
IV. Closing balance of the current period | 5,443,214,176.00 | 1,488,096,614.19 | 59,836,968.10 | 1,236,113,435.98 | 5,104,219,639.66 | 13,331,480,833.93 |
Item | 1H19 | |||||
Paid-in capital (share capital) | Capital reserve | Other comprehensive income | Surplus reserve | Undistributed profits | Total owners¡¯ equity | |
I. Closing balance of the previous year | 5,443,214,176.00 | 1,489,516,614.19 | -32,352,125.07 | 1,086,754,762.05 | 3,329,531,950.82 | 11,316,665,377.99 |
II. Opening balance of the current year | 5,443,214,176.00 | 1,489,516,614.19 | -32,352,125.07 | 1,086,754,762.05 | 3,329,531,950.82 | 11,316,665,377.99 |
III. YoY change (decrease is indicated by ¡°-¡±) | 88,426,273.04 | 487,741,922.95 | 576,168,195.99 | |||
(I) Total comprehensive income | 88,426,273.04 | 832,112,662.16 | 920,538,935.20 | |||
(III) Profits distribution | -326,592,850.56 | -326,592,850.56 | ||||
1£®Withdrawal of surplus reserve | -326,592,850.56 | -326,592,850.56 | ||||
(VI) Others | -17,777,888.65 | -17,777,888.65 | ||||
IV. Closing balance of the current period | 5,443,214,176.00 | 1,489,516,614.19 | 56,074,147.97 | 1,086,754,762.05 | 3,817,273,873.77 | 11,892,833,573.98 |
Legal representative: ZHAO Wenge Person in charge of accounting: WANG Dong Person in charge of the accounting body: ZHAO Difang
III Basic information of the Company
1. Company profile
¡ÌApplicable ¡õN/A
Zhejiang China Commodities City Group Co., Ltd. (the ¡°Company¡±) is a companylimited by share and was incorporated on Dec 28, 1993 in Zhejiang province of thePeople¡¯s Republic of China. The RMB-denominated common A shares issued bythe Company got listed on Shanghai Stock Exchange on May 9, 2002. TheCompany is headquartered at No.105 Futian Road, Yiwu, Zhejiang.The Group is mainly engaged in market development, operation and auxiliaryservices, development, sale and trade of real estate properties, provision of onlinetrading platforms and services, and development and operation of online tradingmarkets, and belongs to the comprehensive industry.The parent company of the Group is Yiwu China Commodities City Holdings Limited(hereinafter referred to as ¡°CCCH¡±) and the final controller of the Group is theState-owned Assets Supervision and Administration Office of the People¡¯sGovernment of Yiwu.
2. Consolidation scope of financial statements
¡ÌApplicable ¡õN/A
The consolidation of financial statements is determined on the basis of control. Forthe changes in the current year, please refer to Note VIII.IV Basis of preparation of financial statements
1. Basis of preparation
The financial statements of the Company were prepared on a going-concern basis.The financial statements were prepared in accordance with the AccountingStandards for Enterprises-Basic Standards and the specific accounting standards,application guidelines, interpretations and other related regulations promulgatedand amended thereafter (collectively referred to as ¡°Accounting Standards¡±).The financial statements were all prepared based on the valuation principle ofhistorical cost, except for certain financial instruments. In case of assets impairment,corresponding provision was made in accordance with relevant provisions.
2. Going concern
¡ÌApplicable ¡õN/A
The Company prepared its financial statements on a going-concern basis. Themanagement of the Company expected that the Group would generate adequatecash inflow from the future day-to-day operation, which in combination with theGroup¡¯s adequate lines of credit from banks could be sufficient to repay its duedebts.V Important Accounting Policies and Accounting EstimatesReminders on specific accounting policies and accounting estimates:
¡ÌApplicable ¡õN/A
The Group has formulated specific accounting policies and accounting estimatesbased on the characteristics of actual production and operation, which are mainlyreflected in the bad debt provisions for receivables, inventory valuation methods,depreciation of fixed assets, amortization of intangible assets, income recognitionand measurement, recognition of property investments and fixed assets, andservice life and residual value of fixed assets.
1. Statement of compliance with the Accounting StandardsThe financial statements prepared by the Company comply with the requirements ofthe Accounting Standards, and truly and completely reflect the Company¡¯s financialconditions, operating results, changes in shareholders¡¯ equity, cash flows and otherrelated information.
2. Accounting period
The Company¡¯s accounting year is from Jan 1 to Dec 31 of each calendar year.
3. Operating cycle
¡ÌApplicable ¡õN/A
Except for the real estate business, the Company¡¯s businesses have shortoperating cycles and the 12-month cycle is used to classify current assets andcurrent liabilities. The operating cycle of the real estate business is generally longerthan 12 months from the development to sale and monetization and the specificcycle depends on the development projects. The operating cycle of the real estatebusiness would be used to classify current assets and current liabilities of thisbusiness.
4. Functional currency
The Company¡¯s functional currency is RMB. The Group uses RMB as its functionalcurrency and in the preparation of financial statements. Unless specifically stated,all amounts are expressed in RMB.The subsidiaries, joint ventures and associates of the Group determine theirfunctional currencies at their own discretion based on the main economicenvironments in their places of businesses and convert all amounts into RMB whilepreparing financial statements.
5. Accounting methods for merger of the enterprises under common control
and merger of the enterprises not under common control
¡ÌApplicable ¡õN/A
The mergers of enterprises are divided into the mergers of the enterprises undercommon control and mergers of the enterprises not under common control.Mergers of the enterprises under common controlMerger of the enterprises under common control refers to the merger of theenterprises that are under ultimate control of the same party or parties before andafter the merger and the control is not temporary. For a merger of the enterprisesunder common control, the party obtaining control over the other(s) involved in themerger on the date of merger is the merging party and the other(s) is(are) themerged party. The date of merger refers to the date when the merging party actuallyobtains control over the merged party.The assets and liabilities acquired by the merging party in a merger of theenterprises under common control (including the goodwill formed through theacquisition of the merged party by the ultimate controller) are accounted accordingto the book value thereof in the ultimate controller¡¯s financial statements on the dateof merger. For the difference between the book value of the net assets obtained bythe merging party and the book value of the consideration paid for the merger (orthe total nominal value of the shares issued), the share capital premium in thecapital reserve shall be adjusted; if the share capital premium is not sufficient toabsorb the difference, the retained earnings shall be adjusted.Mergers of the enterprises not under common controlMerger of the enterprises not under common control refers to the merger of theenterprises that are not under ultimate control of the same party or parties beforeand after the merger. For a merger of the enterprises not under common control, theparty obtaining control over the other(s) involved in the merger on the date ofacquisition is the acquirer and the other(s) is(are) the acquiree. The date of
acquisition refers to the date when the acquirer actually obtains control over theacquiree.The acquiree¡¯s identifiable assets, liabilities and contingent liabilities obtained fromthe merger of the enterprises not under common control are measured at their fairvalues on the date of acquisition.If the sum of the fair value of the consideration paid for the merger (or fair value ofthe equity securities issued) and the fair value of the acquiree¡¯s equity held beforethe date of acquisition is higher than the share in the fair value of the acquiree¡¯sidentifiable net assets acquired from the merger, the difference between them isrecognized as goodwill, which will be subsequently measured by the cost lessaccumulated impairment loss. If the sum of the fair value of the consideration paidfor the merger (or fair value of the equity securities issued) and the fair value of theacquiree¡¯s equity held before the date of acquisition is lower than the share in thefair value of the acquiree¡¯s identifiable net assets acquired from the merger, themeasurement of the fair value of the acquiree¡¯s identifiable assets, liabilities andcontingent liabilities, the fair value of the consideration paid for the merger (or fairvalue of the equity securities issued) and the fair value of the acquiree¡¯s equity heldbefore the date of acquisition will be reviewed, and if the sum of the fair value of theconsideration paid for the merger (or fair value of the equity securities issued) andthe fair value of the acquiree¡¯s equity held before the date of acquisition is still lowerthan the share in the fair value of the acquiree¡¯s identifiable net assets acquiredfrom the merger after such review, the difference will be recognized in the profit orloss for the current period.For mergers of the enterprises not under common control that are executed throughmultiple transactions, the long-term equity investment of the acquiree before thedate of acquisition shall be re-measured based on the fair value thereof on the dateof acquisition and any difference between the fair value and book value thereofshall be recognized in the profit or loss for the current period; other comprehensiveincome from the long-term equity investment of the acquiree before the date ofacquisition under the equity method shall be accounted on the same basis as thatfor the direct disposal of related assets or liabilities by the investee, and otherchanges in shareholders¡¯ equity than net gains or losses, other comprehensiveincome and profit distribution shall be recognized in the profit or loss for the periodwhere the date of acquisition falls.
6. Preparation method of consolidated financial statements
¡ÌApplicable ¡õN/A
The financial statements to be consolidated is determined on the basis of control,including those of the Company and all of its subsidiaries. Subsidiaries refer to the
entities controlled by the Company (including the severable parts of enterprises andinvested entities, and the structured entities controlled by the Company).In the preparation of consolidated financial statements, the subsidiaries adopt thesame accounting year and accounting policies as those adopted by the Company.The assets, liabilities, equity, revenue, expenses and cash flows generated by alltransactions among the companies within the Group are offset in full when beingconsolidated.If the amount of loss for the current period attributable to the minority shareholdersof a subsidiary exceeds the minority shareholders¡¯ share in the opening balance ofshareholders¡¯ equity in the subsidiary, the excess will still be recognized againstminority interest.For a subsidiary acquired through the merger of enterprises not under commoncontrol, the operating results and cash flow of the acquiree will be consolidated asfrom the Group obtaining control over the acquiree until termination of such control.In the preparation of consolidated financial statements, adjustments will be made tothe financial statements of the subsidiary based on the fair value of its identifiableassets, liabilities or contingent liabilities determined on the date of acquisition.For a subsidiary acquired through the merger of enterprises under common control,the operating results and cash flow of the acquiree will be consolidated as from thestart of the reporting period when the merger happens. In the preparation ofconsolidated financial statements, adjustments will be made to the related items inits previous financial statements as if the reporting entity formed after the mergerhas been existing as from the ultimate controller starts to exercise control.In case of any change to one or more elements of the control due to the changes inrelated facts and circumstances, the Group will re-evaluate whether to control theinvestee.
7. Classification of joint arrangements and accounting treatment of jointoperations
¡ÌApplicable ¡õN/A
Joint arrangements are divided into joint operations and joint ventures. Jointoperation refers to a joint arrangement in which the parties thereto enjoy the assetsrelating to such arrangement and assume the liabilities relating to sucharrangement. Joint venture refers to a joint arrangement in which the parties theretoonly enjoy rights to the net assets in this arrangement.Each party to a joint arrangement recognizes the following items relating to its sharein the joint operation: assets held individually by it and assets held jointly based onits share; liabilities assumed individually by it and liabilities assumed jointly based
on its share; revenue from the sale of its share in the output of the joint operation;revenue from the sale of the output of the joint operation based on its share;expenses incurred individually by it and expenses incurred by the joint operationbased on its share.
8. Criteria for the identification of cash and cash equivalentsCash equivalents refer to the short-term (generally three months from the date ofpurchase) and highly liquid investments that are readily convertible to knownamounts of cash and have a very low risk of change in value.
9. Foreign currency transactions and translation of foreign currencyfinancial statements
¡ÌApplicable ¡õN/A
For foreign currency transactions, the Group will translate the foreign currencyamounts into its functional currency amounts.In the initial recognition of a foreign currency transaction, the foreign currencyamount is translated to a functional currency amount according to the spotexchange rate on the date of transaction. On the balance sheet date, the foreigncurrency monetary items are translated according to the spot exchange rate on thebalance sheet date. The translation difference between settlement and monetaryitems is recognized in the profit or loss for the current period, except for thedifference arising from the special foreign currency borrowing relating to theacquisition and construction of the assets qualified for capitalization, which will betreated based on the principles for the capitalization of borrowing expenses. Theforeign currency non-monetary items measured by historical cost are alsotranslated according to the spot exchange rate on the date of transaction, withoutchanging the functional currency amounts thereof. The foreign currencynon-monetary items measured by fair value are translated according to the spotexchange rate on the fair value determination date and the difference arisingtherefrom is recognized in the profit or loss or other comprehensive income for thecurrent period based on the nature of the items.The Group translates the functional currency of its foreign business into RMB whilepreparing the financial statements. The assets and liabilities items in the balancesheet are translated according to the spot exchange rate on the balance sheet date,the shareholders¡¯ equity items are translated according to the spot exchange rate atthe occurrence of the items except for ¡°undistributed profits¡±; revenue and expensesitems in the income statement are translated according to the average exchangerate during the period in which the transaction happens. The translation differencesof foreign currency statements arising from the above translations are recognizedas other comprehensive income. For the disposal of foreign business, other
comprehensive income relating to the foreign business is recognized in the profit orloss of the disposal for the current period and is calculated pro rata for partialdisposal.The foreign currency cash flow and cash flow of foreign subsidiaries are translatedaccording to the spot exchange rate on the occurrence date of cash flow/averageexchange rate during the period in which the cash flow occurs. The amount ofimpact of the changes in exchange rate on cash is separately stated in the cashflow statement as an adjustment item.
10. Financial instruments
¡ÌApplicable ¡õN/A
Financial instruments refer to the contracts which form financial assets of anenterprise and form financial liabilities or equity instruments of other entities.Recognition and de-recognition of financial instrumentsThe Group recognizes a financial asset or financial liability at the time of becominga party to a financial instrument contract.The Group will derecognize a financial asset (or a part of the financial asset or apart of a group of similar financial assets), i.e. writing off the asset from its accountand balance sheet, if:
(1) the right to collect cash flow from the financial asset has expired;
(2) the right to collect cash flow from the financial asset has been transferred, or theGroup is obligated to pay the cash flow collected to a third party in full and in timeunder a ¡°transfer agreement¡±; and (a) it has substantially transferred almost all risksand return in connection with the title of the financial asset, or (b) although it has notsubstantially transferred nor retained almost all risks and return in connection withthe title of the financial asset, it has waived control over the asset.If a financial liability has been fulfilled, revoked or expired, it will be derecognized. Ifan existing financial liability is replaced by the same creditor with another financialliability under substantially different terms or the terms of the existing liability aresubstantially modified in whole, the existing liability will be derecognized and thenew liability will be recognized, and the difference will be recognized in the profit orloss for the current period.For the transactions of financial assets in regular ways, the recognition andde-recognition thereof will be conducted based on the accounting on the transactiondate. Transactions of financial assets in regular ways refer to the collection ordelivery of financial assets within the time limit prescribed by laws and regulation or
prevailing practices in accordance with the contract terms. The transaction daterefers to the date when the Group promises to buy or sell the financial assets.Classification and measurement of financial assetsBased on the Group¡¯s business model for the management of financial assets andthe features of the contractual cash flow of financial assets, the Group¡¯s financialassets are classified at initial recognition into the financial assets that are measuredby fair value and of which the changes in fair value are recognized in the profit orloss for the current period, the financial assets measured by amortized cost and thefinancial assets that are measured by fair value and of which the changes in fairvalue are recognized in other comprehensive income.If a financial asset is measured by fair value at initial recognition, but the accountsreceivable or notes receivable from the sale of goods or rendering of service do notinclude significant financing components or the financing components with a termno longer than one year are not considered, the initial measurement will be madebased on the transaction price.For the financial assets that are measured by fair value and of which the changes infair value are recognized in the profit or loss for the current period, the relatedtransaction fees will be directly recognized in the profit or loss for the current period;the related transaction fees of other financial assets will be recognized in the initiallyrecognized amounts thereof.The subsequent measurement of financial assets depends on the classificationthereof:
Investment in debt instruments measured by amortized costA financial asset is classified into those measured by amortized cost, if the businessmodel for the management of the asset is for the purpose of collecting contractualcash flow; and the terms of the contract of the asset stipulate that the cash flowgenerated on the specific date is only the repayment of principal and the payment ofinterest on the outstanding principal. The interest income of such financial assets isrecognized with the effective interest method, and the gains or losses from thede-recognition, modification or impairment thereof are all recognized in the profit orloss for the current period.Investment in the equity instruments that are measured by fair value and ofwhich the changes in fair value are recognized in other comprehensiveincomeThe Group has irrevocably chosen to designate some non-trading equity instrumentinvestments as the financial assets that are measured by fair value and of which thechanges in fair value are recognized in other comprehensive income. Only the
related dividend income (except for the dividend income expressly acting as arecovery of investment cost) is recognized in the profit or loss for the current period,while the subsequent changes in fair value are recognized in other comprehensiveincome, and no provision is required for impairment. When the financial assets arederecognized, the accumulated gains or losses previously recognized in othercomprehensive income will be moved out of other comprehensive income andrecognized in retained earnings.Financial assets that are measured by fair value and of which the changes infair value are recognized in the profit or loss for the current periodThe financial assets other than the above financial assets measured by amortizedcost and the above financial assets that are measured by fair value and of which thechanges in fair value are recognized in other comprehensive income are classifiedas the financial assets that are measured by fair value and of which the changes infair value are recognized in the profit or loss for the current period. Those financialassets are subsequently measured by fair value and all changes in the fair valuethereof are recognized in the profit or loss for the current period.Classification and measurement of financial liabilitiesThe Group¡¯s financial liabilities are classified at initial recognition into the financialliabilities that are measured by fair value and of which the changes in fair value arerecognized in the profit or loss for the current period and other financial assets. Forthe financial liabilities that are measured by fair value and of which the changes infair value are recognized in the profit or loss for the current period, the relatedtransaction fees are recognized directly in the profit or loss for the current period,while the related transaction fees of other financial liabilities are recognized in theinitially recognized amounts thereof.The subsequent measurement of financial liabilities depends on the classificationthereof:
Financial liabilities that are measured by fair value and of which the changesin fair value are recognized in the profit or loss for the current periodThe financial liabilities that are measured by fair value and of which the changes infair value are recognized in the profit or loss for the current period include financialliabilities held for trading (including the derivative instruments as financial liabilities)and the liabilities that are designated at initial recognition as the financial liabilitiesthat are measured by fair value and of which the changes in fair value arerecognized in the profit or loss for the current period. The financial liabilities held fortrading (including the derivative instruments as financial liabilities) are subsequentlymeasured by fair value and all changes in the fair value are recognized in the profitor loss for the current period.
Other financial liabilitiesThose financial liabilities are subsequently measured by amortized cost with theeffective interest method.Impairment of financial instrumentsThe Group has treated and recognized the impairment of the financial assetsmeasured by amortized cost based on the expected credit loss.For the accounts receivable and contract assets without material financingcomponents, the Group uses a simplified method and measures the provision forloss based on the amount of expected credit loss during the entire term.For the financial assets not measured with the simplified method, the Groupevaluates on each balance sheet date whether their credit risks have increasedsignificantly since the initial recognition. If the credit risk of a financial asset has notincreased significantly since the initial recognition, the asset is in the first stage andthe Group will make provision for loss based on the amount of expected credit losswithin the coming 12 months and calculate interest income based on the bookbalance and effective interest rate; if the credit risk has increased significantly sincethe initial recognition, but credit has not been impaired, the asset is in the secondstage and the Group will make provision for loss equivalent to the amount ofexpected credit loss during the entire term and calculate interest income based onthe book balance and effective interest rate; if credit has been impaired after theinitial recognition, the asset is in the third stage and the Group will make provisionfor loss equivalent to the amount of expected credit loss during the entire term andcalculate interest income based on the amortized cost and effective interest rate.The Group evaluates the expected credit losses of financial instruments on theindividual and group bases. It evaluates the expected credit loss of accountsreceivable by taking into account the credit risk characteristics of different clientsand based on the account aging-based asset groups.For the disclosure of the Group¡¯s criteria for a significant increase in credit risk,definition of the assets whose credit has been impaired and assumptions for themeasurement of expected credit loss, please refer to Notes X-2.When the Group no longer reasonably expects that it can recover the contractualcash flow of a financial asset in whole or in part, it will directly write down the bookbalance of the asset.
11. Notes receivable
Determination and accounting treatment of the expected credit loss of notesreceivable
¡ÌApplicable ¡õN/A
Due to a short term, a low default risk and strong ability to pay contractual cash flowwithin a short time of notes receivable, the Company deems notes receivable as afinancial instrument with a low credit risk and directly assumes that the credit riskthereof has not increased significantly since the initial recognition. Considering thezero default in history, the Company makes no bad debt provision for notesreceivable.
12. Accounts receivable
Determination and accounting treatment of the expected credit loss ofaccounts receivable
¡ÌApplicable ¡õN/A
Please refer to Notes X-2. Risks of Financial Instruments
13. Accounts receivable financing
¡õApplicable ¡ÌN/A
14. Other receivables
Determination and accounting treatment of the expected credit loss of otherreceivables
¡ÌApplicable ¡õN/A
Please refer to Notes X-2. Risks of Financial Instruments
15. Inventory
¡ÌApplicable ¡õN/A
Inventory includes raw materials, work-in-progress materials, finished goods, realestate development costs and real estate development products.Inventory is initially measured by cost. The costs of inventory except developmentcosts and development products include the procurement cost, processing cost andother costs. The actual costs of items out of inventory are determined with theweighted average method. Work-in-progress materials include low-value
consumables and packages, which are amortized with the one-off amortizationmethod.Development costs refer to the properties that have not been completed and aredeveloped for the purpose of being sold. Development products refer to theproperties that have been completed and are ready for sale.The actual costs of real estate development costs and development productsinclude the land acquisition cost, expenditures on construction and installationworks, capitalized interest and other direct and indirect development expenses. Theuse right of the land for development purpose at the development of a project isamortized and recognized as the development cost of the project based on the sitearea of the development product, and the development cost will be changed over todevelopment product after being completed.If the public auxiliary facilities are completed earlier than the related developmentproduct, the facilities will be allocated to and recognized in the development cost ofrelated development project based on the floor space of the project after finalaccounting of the facilities upon completion; if the public auxiliary facilities arecompleted later than the related development product, they will be recognized in thedevelopment cost of related development project based on the predicted cost of thepublic auxiliary facilities.Hotel, catering and fresh goods inventories are subject to onsite inventory, whileother inventories are subject to perpetual inventory.On the balance sheet date, inventory is measured by cost and net realizable value,whichever is lower. If the cost is higher than the net realizable value, provision willbe made for inventory depreciation, which will be recognized in the profit or loss forthe current period. If the impact of the previous provision for inventory depreciationhas disappeared and the net realizable value of the inventory becomes higher thanthe book value thereof, the amounts written down previously in the original provisionfor inventory depreciation will be restituted and recognized in the profit or loss forthe current period.Net realizable value is the estimated selling price of inventory less the costestimated to occur as of completion, estimated sales expenses and related taxes. Inprinciple, provisions for inventory depreciation shall be made for inventory itemsindividually. For the inventory with a large quantity and a low unit price, inventorydepreciation provision will be made based on the groups of items.
16. Contract assets
(1) Determination and criteria for contract assets
¡õApplicable ¡ÌN/A
(2) Determination and accounting treatment of the expected credit loss ofcontract assets
¡õApplicable ¡ÌN/A
17. Held-for-sale assets
¡õApplicable ¡ÌN/A
18. Debt investments
Determination and accounting treatment of the expected credit loss of debtinvestments
¡õApplicable ¡ÌN/A
19. Other debt investments
Determination and accounting treatment of the expected credit loss of otherdebt investments
¡õApplicable ¡ÌN/A
20. Long-term receivables
Determination and accounting treatment of the expected credit loss oflong-term receivables
¡õApplicable ¡ÌN/A
21. Long-term equity investment
¡ÌApplicable ¡õN/A
Long-term equity investment includes equity investment in subsidiaries, jointventures and associates.Long-term equity investment is initially measured by the initial investment cost atthe time of being acquired. For the long-term equity investment acquired throughthe merger of the enterprises under common control, the initial investment cost isthe share of the book value of the owners¡¯ equity of the acquiree in the consolidatedfinancial statements of the ultimate controller on the date of merger; for thedifference between the initial investment cost and the book value of the mergerconsideration, capital reserve will be adjusted ( if the capital reserve is insufficientfor the difference, retained earnings will be adjusted). In the disposal of aninvestment, the other comprehensive income before the date of merger will betreated on the same basis as that for the direct disposal of related assets or
liabilities by the investee, and the shareholders¡¯ equity recognized due to theinvestee¡¯s other changes in shareholders¡¯ equity than net profits or loss, othercomprehensive income and profit distribution will be recognized in the profit or lossfor the current period; to be specific, the portion that remains long-term equityinvestment after the disposal will be changed over pro rata, while the portion that isconverted to financial instruments after the disposal will be changed over in full. Forlong-term equity investment acquired through the merger of the enterprises notunder common control, the initial investment cost is the merger cost (for themergers of the enterprises not under common control that are executed throughmultiple transactions, the initial investment cost is the sum of the book value of theequity investment in the acquireee before the date of acquisition and the newinvestment cost on the date of acquisition). The merger cost is the sum of the fairvalues of the assets paid by the acquirer, the liabilities incurred or assumed by theacquirer and the equity securities offered by the acquirer. In the disposal of aninvestment, the other comprehensive income held before the date of acquisitionand recognized due to the adoption of the equity method will be treated on thesame basis as that for the direct disposal of related assets or liabilities by theinvestee, and the shareholders¡¯ equity recognized due to the investee¡¯s otherchanges in shareholders¡¯ equity than net profits or loss, other comprehensiveincome and profit distribution will be recognized in the profit or loss for the currentperiod; to be specific, the portion that remains long-term equity investment after thedisposal will be changed over pro rata, while the portion that is converted tofinancial instruments after the disposal will be changed over in full. The initialinvestment costs of the long-term equity investment acquired other than throughmerger are determined with the following methods: if an investment is acquiredthrough the payment of cash, its initial investment cost consists of the purchaseprice actually paid and the expenses, taxes and other necessary expenses directlyrelating to the acquisition of the investment; and if an investment is acquiredthrough the offering of equity securities, its initial investment cost is the fair value ofthe equity securities offered.For the accounting of the long-term equity investment through which the Companycan exercise control over the investees, the Company adopts the cost method inindividual financial statements. Control refers to the power over an investee, withwhich the investor enjoys variable return by participating in the investee¡¯s relatedactivities and is able to exercise its power over the investee to affect the amount ofreturn.In the cost method, the long-term equity investment is measured by initialinvestment cost. If the investment is added or recovered, the cost of long-termequity investment will be adjusted. The cash dividend or profit declared by theinvestees to be distributed is recognized as the investment income for the currentperiod.
If the Group has joint control over or significant influence on the investee, thelong-term equity investment will be measured with the equity method. Joint controlrefers to joint control over an arrangement in accordance with related agreements,and decisions on the activities relating to the arrangement shall be made only afterthe parties sharing the control reach an agreement. Significant influence refers tothe power over the decision-making on the financial affairs and business policies ofthe investee, but the investor does not have control or joint control with others overthe formulation of those policies.In the equity method, if the initial investment cost of long-term equity investment ishigher than the share enjoyed by the Group in the fair value of the investee¡¯sidentifiable net assets at investment, the excess will be recognized in the initialinvestment cost of the long-term equity investment; if the initial investment cost oflong-term equity investment is lower than the share enjoyed by the Group in the fairvalue of the investee¡¯s identifiable net assets at investment, the difference will berecognized in the profit or loss for the current period and the cost of the long-termequity investment will be adjusted simultaneously.In the equity method, after long-term equity investment is acquired, the investmentgains or losses and other comprehensive income shall be recognized and the bookvalue of the long-term equity investment shall be adjusted based on the share in thenet gains or losses and other comprehensive income realized by the investees tobe enjoyed or assumed. The share in the investee¡¯s net gains or losses to beenjoyed shall be determined based on the fair value of the investee¡¯ s identifiableassets at the acquisition of investment, according to the Group¡¯s accounting policiesand accounting periods and after net profits of the investee are adjusted with theportion of gains or losses from the internal transactions with its associates and jointventures that is attributable to the investor based on the share to be enjoyed by it(but if the loss from internal transactions falls in the assets impairment loss, it shallbe recognized in full) offset, except for the invested and sold assets that constitutebusinesses. The book value of long-term equity investment shall be reducedaccording to the share to be enjoyed by it in the profits or cash dividend declared bythe investees to be distributed. For an investee¡¯s net losses recognized by theGroup, the book value of the long-term equity investment and other long-term equitythat substantially constitute net investment in the investee shall be written down tozero at maximum, except for the extra losses for which the Group is liable. For theinvestee¡¯s other changes in shareholders¡¯ equity other than net gains or losses,other comprehensive income and profit distribution, the book value of the long-termequity investment will be adjusted and the changes will be recognized in theshareholders¡¯ equity.For the disposal of long-term equity investment, the difference between the bookvalue of long-term equity investment and the proceeds actually received from thedisposal thereof is recognized in the profits or loss for the current period. For the
long-term equity investment measured with the equity method, if the equity methodis terminated due to the disposal, the original related other comprehensive incomemeasured with the equity method will be accounted on the same basis as that forthe direct disposal of related assets or liabilities by the investees, and theshareholders¡¯ equity recognized due to the investees¡¯ other changes inshareholders¡¯ equity than net gains or losses, other comprehensive income andprofit distribution will be recognized in the profits or loss for the current period in full;if the equity method is still adopted, the original related other comprehensiveincome measured with the equity method will be accounted on the same basis asthat for the direct disposal of related assets or liabilities by the investees andrecognized in the profits or loss for the current period pro rata, and the shareholders¡¯equity recognized due to the investees¡¯ other changes in shareholders¡¯ equity thannet gains or losses, other comprehensive income and profit distribution will berecognized in the profit or loss for the current period pro rata.Where the Company loses control over a subsidiary due to step-by-step disposal ofits equity investment in the subsidiary through multiple transactions, if thetransactions constitute a package of deals, each transaction will be accounted as atransaction that disposes of the subsidiary and causes the loss of control over thesubsidiary; however, the difference between the proceeds from each disposal andthe book value of the corresponding long-term equity investment disposed of isrecognized as other comprehensive income in individual financial statementsbefore the Company loses control and is recognized in the profits or loss for theperiod in which the control is lost at the loss of control. If the transactions do notconstitute a package of deals, each transaction will be accounted separately. In theevent that the Company loses control, if the residual equity after the disposalenables the Company to have joint control over or significant influence on thesubsidiary, it will be recognized as long-term equity investment in individualfinancial statements and be accounted in accordance with the relevant rules forchanging the cost method to the equity method; otherwise, it will be recognized as afinancial instrument and the difference between its fair value on the date of the lossof control and its book value will be recognized in the profit or loss for the currentperiod.
22. Property investment
(1) If measured by cost
Depreciation or amortization methodsDepreciation or amortization methodsA property investment is a real estate property held with the intention of earningrents or of capital appreciation or both, including land use rights that have been
leased, land use rights that are held and ready to be transferred after appreciation,and buildings that have been leased.Property investments are initially measured by cost. The subsequent expensesrelating to an property investment will be recognized in the cost of the propertyinvestment if the economic benefits relating to the asset are very likely to flow in andthe cost thereof can be measured reliably. Otherwise, they will be recognized in theprofit or loss for the current period at the time of being incurred.The Group subsequently measures its property investments with the cost model.The depreciation/amortization of property investments is calculated on a straightline basis. The service life, estimated net residual value and annual depreciationrate of property investments are as follows:
Type | Service life | Estimated net residual value | Annual depreciation rate |
Buildings and structures | 20-30 years | 4% | 3.2%-4.8% |
Land use right | 40-70 years | - | 1.4%-2.5% |
23. Fixed assets
(1) Recognition requirements
¡ÌApplicable ¡õN/A
A fixed asset will be recognized only if the economic benefits relating thereto arevery likely to flow into the Group and its cost can be measured reliably. If meetingthe above recognition requirement, the subsequent expenses relating to a fixedasset will be recognized in the cost of the fixed asset, and the book value of thereplaced part will be deleted; otherwise, the subsequent expenses will berecognized in the profit or loss for the current period at the time of being incurred.Fixed assets are initially measured by cost. The costs of purchasing a fixed assetinclude the purchase price, related taxes and other expenses that are incurredbefore the fixed asset is made to the predetermined ready-for-use status and aredirectly attributable to the asset.The Group reviews and makes adjustment to, if necessary, the service life,estimated residual value and depreciation method of its fixed assets at least at theend of each year.
(2) Depreciation methods
¡ÌApplicable ¡õN/A
Type | Depreciation method | Depreciation period (number of years) | Residual value rate | Annual depreciation rate |
Buildings and | Straight-line method | 10-40 | 4% | 2.4%-9.6% |
structures | ||||
General equipment | Straight-line method | 5-10 | 4% | 9.6%-19.2% |
Transportation equipment | Straight-line method | 6 | 4% | 16% |
(3) Identification basis, pricing and depreciation method of the fixed assets
under financial lease
¡ÌApplicable ¡õN/A
The depreciation method for the fixed assets under financial lease are the same asthat for proprietary fixed assets. If it can be reasonably determined that theownership of a leased asset will be acquired upon expiry of the lease term, thedepreciation will be based on its service life; if it cannot be reasonably determinedthat the ownership of a leased asset can be acquired upon expiry of the lease term,the depreciation will be based on the lease term or the service life of the asset,whichever is shorter.
24. Construction in progress
¡ÌApplicable ¡õN/A
The cost of construction in progress is determined based on the actual expenses,including the necessary expenses on the works incurred during the construction,the borrowing costs incurred before the works reach the predeterminedready-for-use status that shall be capitalized and other related expenses.The construction in progress will be recognized as fixed assets, property investmentand long-term prepaid expenses when reaching the predetermined ready-for-usestatus.
25. Borrowing costs
¡ÌApplicable ¡õN/A
Borrowing costs refer to the interests incurred by the Group for its borrowings andother related costs, including interest, amortization of discounts or premiums,ancillary costs and exchange difference arising from foreign currency borrowings.Borrowing costs that are directly attributable to the acquisition, construction orproduction of the assets qualified for capitalization shall be capitalized, and otherborrowing costs shall be recognized in the profit or loss for the current period. Theassets qualified for capitalization refer to the fixed assets, property investment,inventory and other assets that can reach the predetermined ready-for-use or salestatus only after a quite long time of acquisition, construction or production.
Borrowing costs can start to be capitalized only if they meet the followingrequirements simultaneously:
(1) the expenses on assets have been incurred;
(2) the borrowing costs have been incurred;
(3) the acquisition, construction or production required for the assets to reach the
predetermined ready-for-use or sale status has started.The borrowing costs for the assets qualified for capitalization shall cease beingcapitalized when the assets reach the predetermined ready-for-use or sale statusafter the acquisition, construction or production. The borrowing costs incurredsubsequently will be recognized in the profit or loss for the current period.During capitalization, the amount of interest to be capitalized during eachaccounting period is determined as follows:
(1) For special borrowings, the amount of interest to be capitalized is the interest
expenses actually incurred during the current period less the temporary deposits
interest income or investment income.
(2) For the general borrowings occupied, the amount of interest to be capitalized is
the weighted average of the accumulated asset expenses in excess of special
borrowings multiplied by the weighted average interest rate of the general
borrowings occupied.If an asset qualified for capitalization is interrupted abnormally for more than threemonths during its acquisition, construction or production except due to thenecessary procedures for it to reach the predetermined ready-for-use or sale status,the capitalization of its borrowing costs will be suspended. The borrowing costsincurred during the interruption will be recognized as expenses and in the profit orloss for the current period until the acquisition, construction or production of theasset is resumed.
26. Biological assets
¡õApplicable ¡ÌN/A
27. Oil and gas assets
¡õApplicable ¡ÌN/A
28. Right-of-use assets
¡õApplicable ¡ÌN/A
29. Intangible assets
(1) Measurement method, service life and impairment test
¡ÌApplicable ¡õN/A
Intangible assets will be recognized only if the economic benefits relating theretoare very likely to flow into the Group and the costs thereof can be measured reliably,and will be initially measured by cost. However, the intangible assets acquired fromthe merger of the enterprises not under common control will be individuallyrecognized so long as the fair values thereof can be measured reliably, and will bemeasured by fair value.The service life of an intangible asset is determined based on the term during whichit can bring economic benefits to the Group. If the term during which an intangibleasset can bring economic benefits to the Group is unforeseeable, it will be deemedas an intangible asset with uncertain service life.The service life of intangible assets is as follows:
Type | Service life |
Land use right | 40-50 years |
Software | 10 years |
The land use rights acquired by the Group are generally accounted as intangibleassets. The buildings constructed by the Group itself, the related land use rightsand buildings are accounted as intangible assets and fixed assets respectively. Theprice paid for the land and buildings purchased externally shall be allocatedbetween the land use rights and buildings. If it is hard to reasonably allocate theprice, the price in full will be treated as fixed assets.The intangible assets with finite service life shall be amortized with the straight-linemethod during their service life. The Group reviews and makes adjustment to, ifnecessary, the service life and amortization method of its intangible assets withfinite service life at least at the end of each year.
(2) Accounting policies for internal R&D expenses
¡ÌApplicable ¡õN/A
The Company¡¯s expenses on internal R&D projects are divided into researchexpenses and development expenses.Research expenses are recognized in the profit or loss for the current period at thetime of being incurred.
Development expenses will be recognized as an intangible asset if meeting thefollowing requirements simultaneously, or will be recognized in the profit or loss forthe current period if failing to meet the following requirements:
1) The intangible asset has been completed and is technically feasible for use orsale;
2) There¡¯s intention of completing and using or selling the intangible asset;
3) The way in which the intangible asset generates economic benefits, including insuch a way that is able to prove that the product produced using the intangibleasset has a market or the intangible asset itself has a market; or prove itsusefulness if the intangible asset is used internally;
4) There are adequate technology and financial resources and other resources tocomplete the development of the intangible asset, and the intangible asset is able tobe used or sold;
5) The development expenses attributable to the intangible asset can bemeasured reliably.The R&D expenses that cannot be differentiated between the research expensesand development expenses will be recognized in the profit or loss for the currentperiod in full.
30. Impairment of long-term assets
¡ÌApplicable ¡õN/A
The Group determines the impairment of the assets other than inventory, deferredincome tax and financial assets with the following methods.The Group decides on the balance sheet date whether an asset has a sign ofimpairment. If it has a sign of impairment, the Group will estimate its recoverablevalue and carry out an impairment test. For the goodwill formed due to the mergerof enterprises and the intangible assets with uncertain service life, the Group carriesout impairment tests at least at the end of each year, regardless of the impairmentsigns. For the intangible assets that have not been ready for use, the Group alsocarries out impairment tests every year.The recoverable value of an asset is determined based on the fair value of the assetless the disposal expenses or the present value of the expected future cash flows ofthe asset, whichever is higher. The Group estimates the recoverable value of eachasset. For an asset whose recoverable value is hard to be estimated, the Groupestimates the recoverable value of the assets group which the asset belongs to. An
assets group is identified based on whether the main cash inflows from the groupare independent from the cash inflows from other assets or assets groups.When the recoverable value of an asset or assets group is lower than its book value,the Group will write down its book value to the recoverable value and the amountwritten down will be recognized in the profit or loss for the current period; meanwhile,it will make provision for the impairment thereof.The above assets impairment loss will not be reversed during the subsequentaccounting periods.
31. Long-term prepaid expenses
¡ÌApplicable ¡õN/A
Long-term prepaid expenses are amortized with the straight-line method and theamortization periods are as follows:
Type | Amortization period |
Architectural ornaments of buildings | 3-5 years |
Advertising facilities | 3-5 years |
32. Contract liabilities
Recognition of contract liabilities
¡ÌApplicable ¡õN/A
The Group¡¯s obligations to transfer goods or render service to the clients for theconsiderations received or receivable from the clients are recognized as contractliabilities.
33. Employee compensations
(1) Accounting treatment of short-term compensations
¡ÌApplicable ¡õN/A
The short-term compensations actually incurred during the accounting period whenthe employees provide service for the Group are recognized as liabilities and arerecognized in the profit or loss for the current period or costs of related assets.
(2) Accounting treatment of post-employment benefits
¡ÌApplicable ¡õN/A
The expenditures incurred in connection with the Group¡¯s employees¡¯ participationin local government-administered social security programs such as endowment
insurance and unemployment insurance are recognized in the costs of relatedassets or the profit or loss for the current period at the time of being incurred.
(3) Accounting treatment of severance benefits
¡ÌApplicable ¡õN/A
Where the Group provides severance benefits to its employees, the employeecompensation liabilities arising from the severance benefits will be recognized, andthe amount will be recognized in the profit or loss for the current period on theearlier date below: the date when the Group cannot unilaterally withdraw theseverance benefits provided as a result of the employment termination plan ordownsizing proposal; or the date when the Group recognizes the costs or expensesrelating to the reorganization involving the payment of severance benefits.
(4) Accounting treatment of other long-term employee benefits
¡õApplicable ¡ÌN/A
34. Lease liabilities
¡õApplicable ¡ÌN/A
35. Estimated liabilities
¡ÌApplicable ¡õN/A
Except for the contingent considerations and contingent liabilities assumed in themergers of enterprises not under common control, an obligation relating tocontingent matters will be recognized by the Group as estimated liabilities if meetingthe following requirements simultaneously:
(1) The obligation is a current obligation assumed by the Group;
(2) The performance of the obligation may result in the outflow of economic benefitsfrom the Group;
(3) The amount of the obligation can be measured reliably.
Estimated liabilities are initially measured based on the best estimate of theexpenses required for the performance of related current obligations, and the risks,uncertainties and time value of money relating to the contingent matters are alsofactored in. The book value of estimated liabilities is reviewed on each balancesheet date. If any conclusive evidence indicates that the book value cannot reflectthe current best estimate, the book value will be adjusted based on the current bestestimate.
36. Share-based payment
¡õApplicable ¡ÌN/A
37. Preferred shares, perpetual bonds and other financial instruments
¡õApplicable ¡ÌN/A
38. Revenue
(1) Accounting policies for the recognition and measurement of revenue
¡ÌApplicable ¡õN/A
Revenue will be recognized if the economic benefits are very likely to flow into theGroup, the amount can be measured reliably and the following requirements aremet simultaneously.Revenue from the sales of goodsThe Group has transferred the main risks and compensations on the title of goodsto the buyers and no longer retains the continued management right associatedwith title or exercises effective control over the goods, the related costs incurred orto be incurred can be measured reliably, and then revenue can be recognized. Theamount of revenue from the sales of goods is determined based on the contractprice or agreed price received or receivable from the buyers, except that thecontract price or agreed price received or receivable from the buyers is unfair; if thecontract price or agreed price is collected in a deferred way and is a kind offinancing in nature, the amount shall be determined based on the fair value thereof.For the sales of real estate properties, a development product has completed andbeen accepted after inspection, the sales contract has been signed, the obligationsstipulated in the contract have been performed, i.e. the main risks andcompensations on the title of the development product have transferred to the buyer,the Group no longer exercises continued management right or actual control overthe project, the related revenue has been received or can be proved to be received,the costs relating to the project can be measured reliably, and then revenue can berecognized.Revenue from the rendering of serviceOn the balance sheet date, if the results of rendering service can be estimatedreliably, the revenue from the rendering of service will be recognized based on thepercentage of the service completed; otherwise, the revenue will be recognizedbased on the cost of the service that has been incurred and can be compensatedfor. The results of rendering service can be estimated reliably if the following
conditions are met simultaneously: the amount of the revenue can be measuredreliably, the related economic benefits are very likely to flow into the Group, theprogress of the transaction can be determined reliably, and the costs incurred andto be incurred during the transaction can be measured reliably. The Groupdetermines the progress of rendering service based on the percentage of theservice provided in the service that should be provided. The total revenue from therendering of service is determined based on the contract price or agreed pricereceived or receivable from the service recipients, except that the contract price oragreed price received or receivable from the service recipients is unfair.Interest incomeIt is determined based on the time of use by others of and effective interest rate ofthe cash and cash equivalents of the Group.Revenue from use feesIt is determined based on the charging periods and methods agreed in the relatedcontracts or agreements.Rental incomeFor operating lease, the rental income is recognized with the straight-line methodduring each period of the lease terms based on the lease dates and rentals agreedin the lease contracts or agreements when the rentals have been received or canbe proved to be received.
(2) Differences in the revenue recognition policies for the same businessunder different business models
¡õApplicable ¡ÌN/A
39. Contract cost
¡õApplicable ¡ÌN/A
40. Government grants
¡ÌApplicable ¡õN/A
A government grant is recognized when it can meet the requirements and can bereceived. If a government grant falls in monetary assets, it will be measured by theamount received or receivable. If a government grant does not fall in monetaryassets, it will be measured by fair value. If the fair value of a grant cannot bedetermined reliably, it will be measured by its nominal amount.
A government grant prescribed by government documents to be used to acquire orconstruct or otherwise form long-term assets will be deemed as an asset-relatedgovernment grant; if no government documents have express provisions, the grantsthat are used to acquire or construct or otherwise form long-term assets will bedeemed as asset-related government grants and others as income-relatedgovernment grants.The Group treats the account of government grants with the total amount method.The income-related government grants that are used to compensate for the relatedcosts, expenses or losses during the subsequent periods are recognized asdeferred income and will be recognized in the profit or loss or against the relatedcosts for the period when the related costs, expenses or losses are recognized. Theincome-related government grants used to compensate for the related costs,expenses or losses that have been incurred are directly recognized in the profit orloss or against the related costs for the current period.The asset-related government grants can be recognized against the book value ofrelated assets. They can also be recognized as deferred income and recognized inthe profit or loss by installment with a reasonable and systematic method during theservice life of related assets (the government grants measured by the nominalamount are directly recognized in the profit or loss for the current period);if a relatedasset is sold, transferred, retired or damaged before the end of the service lifethereof, the undistributed balance of related deferred income will be recognized inthe profit or loss for the period when the asset is disposed of.
41. Deferred income tax assets and deferred income tax liabilities
¡ÌApplicable ¡õN/A
Income tax consists of current income tax and deferred income tax. Except for theincome tax arising from the adjustment of goodwill caused by the mergers ofenterprises or the income tax that is related to the transactions or matters directlyrecognized in shareholders¡¯ equity, which are recognized in the shareholders¡¯equity, income tax will be recognized in the profit or loss for the current period asincome tax expenses or income.The Group measures the current income tax liabilities or assets formed during thecurrent period and the previous periods by the estimated amount of income tax tobe paid or refunded as calculated in accordance with the tax law.The Group recognizes deferred income tax with the balance sheet liability methodbased on the temporary difference between the book value of assets and liabilitieson the balance sheet date and the tax base and that between the book value of the
items that have not been recognized as assets and liabilities but whose tax basecan be determined according to the tax law and the tax base thereof.All taxable temporary differences will be recognized as deferred income taxliabilities, unless:
(1) The taxable temporary difference is generated from the following transactions:
initial recognition of goodwill; or initial recognition of the assets or liabilitiesarising from the transactions with the following characteristics: the transactionsare not mergers of enterprises, and the transactions affect neither theaccounting profits nor the taxable income or deductible losses at the occurrencethereof.
(2) For the taxable temporary differences relating to the investments in thesubsidiaries, joint ventures and associates, the time of reversing can becontrolled and the temporary differences are very unlikely to be reversed in theforeseeable future.For the deductible temporary differences and the deductible losses and taxdeductions that can be carried forward to the subsequent years, the Grouprecognizes the deferred income tax assets arising therefrom within the limit of thefuture taxable income that is very likely to be obtained and used to be offset againstthe deductible temporary differences, deductible losses and tax deductions, unless:
(1) The deductible temporary difference is generated from the transactions that arenot mergers of enterprises and affect neither the accounting profits nor thetaxable income or deductible losses at the occurrence thereof.
(2) The deductible temporary differences relating to the investments in the
subsidiaries, joint ventures and associates will be recognized as deferredincome tax assets correspondingly if meeting all the following requirements: thedifferences are very likely to be reversed in the foreseeable future and it is verylikely to obtain the taxable income that can be offset against the deductibletemporary differences in the future.The Group measures, on the balance sheet date, the deferred income tax assetsand liabilities based on the applicable tax rate for the period when the assets areexpected to be recovered or the liabilities are expected to be paid off, in accordancewith the tax law, which will also reflect the impact of the way of the expectedrecovery of assets or repayment of liabilities on the income tax on the balance sheetdate.The Group reviews the book value of deferred income tax assets on the balancesheet date. If it is very likely to be unable to acquire adequate taxable income to beoffset against the benefits of deferred income tax assets in the future, the book
value of deferred income tax assets will be written down. On the balance sheet date,the Group re-evaluates the unrecognized deferred income tax assets andrecognizes the same to the extent that it is very likely to acquire adequate taxableincome to reverse all or part of the deferred income tax assets.If all the following requirements are met, deferred income tax assets and liabilitieswill be presented in net amount after offsetting: the Group has the legal right tosettle the current income tax assets and liabilities in net amount; the deferredincome tax assets and liabilities are related to the income tax levied by an identicaltax authority on an identical taxpayer, or are related to the income tax levied by anidentical tax authority on different taxpayers, but during each important period whenthe deferred income tax assets and liabilities are reversed, the involved taxpayersintend to settle the current income tax assets and liabilities in net amount or acquireassets or pay off debts simultaneously.
42. Lease
(1) Accounting treatment of operating lease
¡ÌApplicable ¡õN/A
The leases that substantially transfer all risks and compensations in connection withthe title of assets are financial leases, and others are operating leases.The Group as the lessee to operating leasesThe rental expenses under operating leases are recognized in the costs of assetsor the profit or loss for the current period with the straight-line method during eachperiod of the lease terms; contingent rentals are recognized in the profit or loss forthe period at the time of being actually incurred.The Group as the lessor to operating leasesThe rental income under operating leases are recognized in the profit or loss for thecurrent period with the straight-line method during each period of the lease terms;contingent rentals are recognized in the profit or loss for the period at the time ofbeing actually incurred.
(2) Accounting treatment of financial lease
¡ÌApplicable ¡õN/A
The Group as the lessee to finance leasesFor an asset leased under a finance lease, the entry value of the leased asset onthe starting date of the lease team is the fair value of the asset on the starting dateof the lease or the present value of the minimum lease payment, whichever is lower;
and the amount of the minimum lease payment is taken as the entry value oflong-term accounts payable; the difference between them is unrecognized financingexpenses and will be amortized with the effective interest method during eachperiod of the lease term. Contingent rentals are recognized in the profit or loss forthe period at the time of being actually incurred.
(3) Determination and accounting treatment of leases under the new lease
standards
¡õApplicable ¡ÌN/A
43. Other important accounting policies and accounting estimates
¡ÌApplicable ¡õN/A
Distribution of profitsThe Company¡¯s cash dividend is recognized as liabilities after approval by theshareholders¡¯ meeting.Measurement of fair valueThe Group measures the fair values of equity instruments investments on eachbalance sheet date. Fair value refers to the price received from the sale of an assetor paid for the transfer of a liability by a market player in the orderly transactions onthe measurement date. The Group measures the related asset or liability by fairvalue, assuming that the orderly transaction of selling the asset or transferring theliability is executed in the principal market of related asset or liability, or if there is noprincipal market, assuming that the transaction is executed in the mostadvantageous market of related asset or liability. The principal market (or mostadvantageous market) is the marketplace which the Group can enter on themeasurement date. The Group adopts the assumptions used by market players tomaximize economic benefits in the pricing of the assets or liabilities.The Group adopts the valuation technique that is applicable under the currentconditions and is supported with sufficient available data and other information anduses the related observable inputs with priority. The unobservable inputs will beused only if the observable inputs are unavailable or it is unfeasible to acquire theobservable inputs.For the assets and liabilities which are measured or disclosed by fair value in thefinancial statements, the levels of fair value are determined based on thelowest-level input of important significance for the overall measurement of fairvalues: Level 1 input is the unadjusted offer price for an identical asset or liabilitythat can be obtained in an active market on the measurement date; Level 2 inputsare the inputs that are directly or indirectly observable for related assets or liabilities
other than Level 1 inputs; Level 3 inputs are the inputs that are observable forrelated assets or liabilities.On each balance date, the Group re-evaluates the assets and liabilities that arerecognized in the financial statements and keep being measured by fair value so asto determine whether to change the measurement levels of fair value.Significant accounting judgments and estimatesIn the preparation of financial statements, the management need to makejudgments, estimates and assumptions, which will affect the presented amountsand disclosure of revenue, expenses, assets and liabilities and the disclosure ofcontingent liabilities on the balance sheet date. However, the uncertainties of theseassumptions and estimates may cause material adjustment to the book value of theassets or liabilities that will be affected in the future.JudgmentsWhen applying the Group¡¯s accounting policies, the management have made thefollowing judgments which have had significant influence on the amountsrecognized in the financial statements:
Operating lease¡ªas the lessorThe Group has signed lease contracts for the property investments. The Groupthinks that according to the terms of the lease contracts, the Group retains all majorrisks and compensations on the titles of those real estate properties and thushandles them as operating leases.Partition between property investments and fixed assetsThe Group classifies the buildings and structures leased out other than for the mainbusinesses such as market and hotel services as well as the auxiliary land userights thereof as property investments, including but not limited to the auxiliarybanking and catering outlets for market operation and the auxiliary service outletsfor hotels. Other buildings and structures leased out are classified as fixed assets.Judgments on assets acquisition and mergers of enterprisesWhen determining whether an acquisition transaction constitutes a merger, theGroup assesses various factors, including whether the acquiree constitutes abusiness, in accordance with the Accounting Standards for Enterprises No. 20 ¨CMerger of Enterprises. A business refers to a group of some production andoperation activities or assets and liabilities within an enterprise, which has the input,processing and output abilities and whose costs and expenses or revenue can becalculated independently, but an asset or a group of assets or liabilities can be
deemed as a business so long as it has the input and processing processes. TheGroup makes comprehensive judgments by combining the asset acquired and theprocessing process.Business modelThe classification of financial assets at initial recognition depends on the Group¡¯sbusiness model for the management of financial assets. When judging the businessmodel, the Group factors in the enterprise evaluation, the way of reporting financialassets performance to key management personnel, the risks affecting theperformance of financial assets, the way of managing financial assets and the wayof related business management personnel obtaining remunerations. Whenassessing whether to aim at the collection of contractual cash flow, the Groupneeds to analyze the reasons, time, frequency and value for sale of the financialassets to be sold before the expiry dates thereof.Characteristics of contractual cash flowThe classification of financial assets at initial recognition depends on thecharacteristics of the contractual cash flow of the financial assets. For the judgmenton whether the contractual cash flow is the repayment of principal and the paymentof interest on outstanding principal, including the evaluation of the adjustment to thetime value of money, it should be judged whether it is significantly different from thebenchmark cash flow; for the financial assets with the early repaymentcharacteristic, it should be judged whether the fair value of the early repaymentcharacteristic is extremely low.Uncertainties of estimatesThe key assumptions on the balance sheet date for the future and other keysources of the uncertainties of estimates are shown below, which may causesignificant adjustments to the book values of assets and liabilities during the futureaccounting periods.Impairment of financial instrumentsThe Group evaluates the impairment of financial instruments with the expectedcredit loss model. To apply the model, the Group needs to make significantjudgments and estimates and take into account all reasonable and evidencedinformation, including forward-looking information. When making these judgmentsand estimates, the Group infers the expected changes in the debtors¡¯ credit risksbased on their historical repayment data, in combination with the economic policies,macroeconomic indicators and industry risks. Different estimates may affect theprovisions for impairment and the provision that has been made for impairment maynot necessarily be equal to the actual amount of impairment loss in the future.
Net realizable value of property inventoryThe Group¡¯s property inventory is measured by cost or net realizable value,whichever is lower. For the calculation of net realizable value, assumptions andestimates should be used. If the management adjust the estimated price and thecosts and expenses to be incurred until the completion, it will affect the estimate ofthe net realizable value of the inventory and the difference will affect the provisionfor inventory depreciation.Impairment of non-current assets other than financial assets (excluding goodwill)The Group determines, on the balance sheet date, whether the non-current assetsother than financial assets have a sign of being impaired. For a non-current assetother than financial asset, if it is indicated that its book value cannot be recovered,an impairment test will be made. When the book value of an asset or a group ofassets is higher than its recoverable value, i.e. fair value less the disposal expensesor the present value of expected future cash flow, whichever is higher, the asset orgroup has been impaired. For the fair value less the disposal expenses, the Grouprefers to the agreed selling price or observable market price of the similar asset in afair transaction, less the cost increase directly attributable to the disposal of theasset. When predicting the present value of future cash flows, the managementmust estimate the expected future cash flows of the asset or group of assets andselect an appropriate discount rate. When identifying a group of assets, themanagement consider whether the smallest identifiable group of assets cangenerate income and cash flows independently from other departments or units, orthe income and cash inflows generated thereby are mostly independent from otherdepartments or units, and also take into account the way of managing or monitoringproduction and operating activities and the way of making decisions on thecontinued use or disposal of the asset.Fair value of unlisted equity investmentValuation of the unlisted equity investment is the expected future cash flowsdiscounted at the current discount rate of other financial instruments with similarcontract terms and risk characteristics. This requires the Group to estimate theexpected future cash flows, credit risk, volatility and discount rate, which bringsuncertainties.Deferred income tax assetsTo the extent that it is very likely for the Group to have enough taxable income to beoffset against the deductible losses, the Group shall recognize deferred income taxassets in connection with the outstanding deductible losses. This requires themanagement to use lots of judgments to estimate the acquisition time and amountof the taxable income to be acquired in the future to determine the amount of
deferred income tax assets to be recognized, in consideration of the tax paymentplanning strategy.Service life and residual value of fixed assetsThe Group makes provisions for the depreciation of its fixed assets during theexpected service life thereof after considering their residual value. The Groupreviews the expected service life and residual value of related assets on a regularbasis to determine the amount of depreciation expenses to be recognized for eachreporting period. The Group determines the service life and residual value of assetsbased on its experience in similar assets and in combination with the expectedtechnology changes. If the previous estimates have material changes, thedepreciation expenses will be adjusted for the future periods.
44. Changes in important accounting policies and accounting estimates
(1) Changes in important accounting policies
¡ÌApplicable ¡õN/A
Other statements:
On Jul 5, 2017, the Ministry of Finance released the Accounting Standards forEnterprises No.14¡ªRevenue (amended in 2017) (Cai Hui [2017] No.22) (hereafterreferred to as the ¡°New Revenue Standards¡±), which required the enterprises listedwithin China to implement the New Revenue Standards as from Jan 1, 2020.According to the requirements of the New Revenue Standards, the Company willadjust the amounts of related items in the financial statements at the start of 2020based on the cumulative effect of initial implementation of the New RevenueStandards, while not adjusting the data for comparable periods. The Company willimplement the new lease standards as from Jan 1, 2021.
(2) Changes in important accounting estimates
¡õApplicable ¡ÌN/A
(3) Financial statements at the start of the initial year when the New Revenue
Standards are implemented from 2020 and when the new lease standardsare implemented
¡ÌApplicable ¡õN/A
Consolidated Balance Sheet
Unit: RMB
Item | Dec 31, 2019 | Jan 1, 2020 | Adjustment |
Current assets: | |||
Cash and cash equivalents | 6,486,408,651.88 | 6,486,408,651.88 | |
Held-for-trading financial assets | 38,077,703.92 | 38,077,703.92 | |
Accounts receivable | 16,031,078.05 | 16,031,078.05 | |
Prepayment | 44,678,187.98 | 44,678,187.98 | |
Other receivables | 1,397,228,398.98 | 1,397,228,398.98 | |
In which: Interest receivable | 191,064,382.11 | 191,064,382.11 | |
Inventory | 4,296,061,444.25 | 4,296,061,444.25 | |
Other current assets | 3,099,955,902.50 | 3,099,955,902.50 | |
Total current assets | 15,378,441,367.56 | 15,378,441,367.56 | |
Non-current assets: | |||
Long-term receivables | 61,250,000.00 | 61,250,000.00 | |
long-term equity investment | 1,771,420,054.57 | 1,771,420,054.57 | |
Other equity instruments investment | 642,187,968.78 | 642,187,968.78 | |
Other non-current financial assets | 1,519,449,439.02 | 1,519,449,439.02 | |
Property investment | 1,863,218,356.40 | 1,863,218,356.40 | |
Fixed assets | 4,783,819,070.71 | 4,783,819,070.71 | |
Construction in progress | 865,754,600.02 | 865,754,600.02 | |
Intangible assets | 3,456,137,246.02 | 3,456,137,246.02 | |
Long-term prepaid expenses | 139,502,382.87 | 139,502,382.87 | |
Deferred income tax assets | 180,404,801.30 | 180,404,801.30 | |
Other non-current assets | 661,648,707.19 | 661,648,707.19 | |
Total non-current assets | 15,944,792,626.88 | 15,944,792,626.88 | |
Total assets | 31,323,233,994.44 | 31,323,233,994.44 | |
Current liabilities: | |||
Short-term borrowings | 4,178,903,704.82 | 4,178,903,704.82 | |
Accounts payable | 525,241,493.48 | 525,241,493.48 | |
Advances from customers | 4,508,455,128.63 | 250,436,393.04 | -4,258,018,735.59 |
Contract liabilities | 4,258,018,735.59 | 4,258,018,735.59 | |
Payroll payable | 197,174,419.96 | 197,174,419.96 | |
Tax payable | 280,184,253.26 | 280,184,253.26 | |
Other payables | 909,483,132.47 | 909,483,132.47 | |
Non-current liabilities due within one year | 270,332,413.94 | 270,332,413.94 | |
Other current liabilities | 2,023,012,118.22 | 2,023,012,118.22 | |
Total current liabilities | 12,892,786,664.78 | 12,892,786,664.78 | |
Non-current liabilities: | |||
Long-term borrowings | 530,694,313.98 | 530,694,313.98 | |
Bonds payable | 4,564,291,387.81 | 4,564,291,387.81 | |
Estimated liabilities | 110,620,306.10 | 110,620,306.10 | |
Deferred income | 27,966,750.98 | 27,966,750.98 | |
Deferred income tax liabilities | 112,574,338.69 | 112,574,338.69 | |
Other non-current liabilities | 1,148.89 | 1,148.89 | |
Total non-current liabilities | 5,346,148,246.45 | 5,346,148,246.45 | |
Total liabilities | 18,238,934,911.23 | 18,238,934,911.23 | |
Owners¡¯ equity (or shareholders¡¯ equity) | |||
Paid-in capital (or share capital) | 5,443,214,176.00 | 5,443,214,176.00 | |
Capital reserve | 1,524,183,779.64 | 1,524,183,779.64 | |
Other comprehensive income | 66,267,192.74 | 66,267,192.74 |
Surplus reserve | 1,236,166,911.81 | 1,236,166,911.81 | |
Undistributed profits | 4,750,787,389.17 | 4,750,787,389.17 | |
Total owners¡¯ equity (shareholders¡¯ equity) attributable to the parent company | 13,020,619,449.36 | 13,020,619,449.36 | |
Minority interest | 63,679,633.85 | 63,679,633.85 | |
Total owners¡¯ equity (or shareholders¡¯ equity) | 13,084,299,083.21 | 13,084,299,083.21 | |
Total liabilities and owners¡¯ equity (or shareholders¡¯ equity) | 31,323,233,994.44 | 31,323,233,994.44 |
Statements on item adjustment:
¡ÌApplicable ¡õN/A
None
Balance Sheet of Parent Company
Unit: RMB
Item | Dec 31, 2019 | Jan 1, 2020 | Adjustment |
Current assets: | |||
Cash and cash equivalents | 6,312,119,746.26 | 6,312,119,746.26 | |
Held-for-trading financial assets | 1,211.14 | 1,211.14 | |
Accounts receivable | 2,381,698.23 | 2,381,698.23 | |
Prepayment | 11,914,907.36 | 11,914,907.36 | |
Other receivables | 1,280,138,618.41 | 1,280,138,618.41 | |
In which: Interest receivable | 134,543,859.25 | 134,543,859.25 | |
Inventory | 6,622,207.78 | 6,622,207.78 | |
Other current assets | 4,252,429,806.32 | 4,252,429,806.32 | |
Total current assets | 11,865,608,195.50 | 11,865,608,195.50 | |
Non-current assets: | |||
Long-term receivables | 61,250,000.00 | 61,250,000.00 | |
long-term equity investment | 6,886,096,995.77 | 6,886,096,995.77 | |
Other equity instruments investment | 642,187,968.78 | 642,187,968.78 | |
Other non-current financial assets | 371,736,330.52 | 371,736,330.52 | |
Property investment | 1,062,037,085.45 | 1,062,037,085.45 | |
Fixed assets | 3,929,018,558.56 | 3,929,018,558.56 | |
Construction in progress | 780,166,171.12 | 780,166,171.12 | |
Intangible assets | 3,331,543,646.76 | 3,331,543,646.76 | |
Long-term prepaid expenses | 63,262,990.25 | 63,262,990.25 | |
Deferred income tax assets | 94,333,102.87 | 94,333,102.87 | |
Other non-current assets | 519,850,000.00 | 519,850,000.00 | |
Total non-current assets | 17,741,482,850.08 | 17,741,482,850.08 | |
Total assets | 29,607,091,045.58 | 29,607,091,045.58 | |
Current liabilities: | |||
Short-term borrowings | 4,178,903,704.82 | 4,178,903,704.82 | |
Accounts payable | 208,383,192.69 | 208,383,192.69 | |
Advances from customers | 2,918,036,408.24 | 196,988,360.89 | -2,721,048,047.35 |
Contract liabilities | 2,721,048,047.35 | 2,721,048,047.35 | |
Payroll payable | 162,095,870.71 | 162,095,870.71 | |
Tax payable | 280,400,924.97 | 280,400,924.97 | |
Other payables | 618,839,560.98 | 618,839,560.98 | |
Non-current liabilities due within one year | 270,332,413.94 | 270,332,413.94 | |
Other current liabilities | 3,044,639,789.79 | 3,044,639,789.79 | |
Total current liabilities | 11,681,631,866.14 | 11,681,631,866.14 | |
Non-current liabilities: | |||
Long-term borrowings | 530,694,313.98 | 530,694,313.98 | |
Bonds payable | 4,564,291,387.81 | 4,564,291,387.81 | |
Estimated liabilities | 110,620,306.10 | 110,620,306.10 | |
Deferred income | 27,966,750.98 | 27,966,750.98 | |
Deferred income tax liabilities | 92,975,854.98 | 92,975,854.98 | |
Other non-current liabilities | 187.73 | 187.73 | |
Total non-current liabilities | 5,326,548,801.58 | 5,326,548,801.58 | |
Total liabilities | 17,008,180,667.72 | 17,008,180,667.72 | |
Owners¡¯ equity (or shareholders¡¯ equity) | |||
Paid-in capital (or share capital) | 5,443,214,176.00 | 5,443,214,176.00 | |
Capital reserve | 1,489,516,614.19 | 1,489,516,614.19 | |
Other comprehensive income | 66,421,903.33 | 66,421,903.33 | |
Surplus reserve | 1,236,113,435.98 | 1,236,113,435.98 | |
Undistributed profits | 4,363,644,248.36 | 4,363,644,248.36 |
Total owners¡¯ equity (shareholders¡¯ equity) | 12,598,910,377.86 | 12,598,910,377.86 | |
Total liabilities and owners¡¯ equity (or shareholders¡¯ equity) | 29,607,091,045.58 | 29,607,091,045.58 |
Statements on item adjustment:
¡ÌApplicable ¡õN/A
None
(4) Retroactive adjustments to comparative data for the previous periods
after initial implementation of the New Revenue Standards from 2020 andinitial implementation of the new lease standards
¡õApplicable ¡ÌN/A
45. Others
¡õApplicable ¡ÌN/A
VI Taxes
1. Major taxes and tax rates
Major taxes and tax rates
¡ÌApplicable ¡õN/A
Tax | Base of taxation | Tax rate |
VAT | Sale of goods or rendering of taxable service | The Company is a general taxpayer. The output tax of its taxable revenue was levied at the rate of 16%, 10% and 6% before Apr 1, 2019, and at the rate of 13%, 9% and 6% as from Apr 1, 2019, and the VAT is levied with the deductible input tax deducted. In addition, the sale of old real estate projects developed by itself (the starting date of construction indicated in the Construction Permit for Construction Project was before Apr 30, 2016) and the lease of its real estate properties acquired before Apr 30, 2016 are subject to simple taxation, with a tax rate of 5%. |
Urban maintenance and construction tax | Indirect tax actually paid | 5% or 7% |
Corporate income tax | Taxable corporate income | 25% |
Land appreciation tax | Ratio of appreciation value to deductable items | Four-bracket progressive tax rate (30%¡«60%) |
Real estate tax | If the tax is levied according to price, the amount is 1.2% of the balance of the original | 1.2% or 12% |
value of the property after a 30% deduction; if the tax is levied according to rental, the amount is 12% of the rental income. | ||
Education surcharge | Indirect tax actually paid | 3% |
Local education surcharge | Indirect tax actually paid | 2% |
Cultural undertaking development fee | Advertising turnover | 3% |
Disclosure of taxpayers subject to different income tax rates
¡õApplicable ¡ÌN/A
2. Tax preference
¡ÌApplicable ¡õN/A
According to the Yi Di Shui Han [2017] No.56 Notification on the Yiwu¡¯sImplementing Measures for Adjusting Urban Land Use Tax Policies to PromoteIntensive and Economic Utilization of Land, based on the calculation of per mu tax,the Company is entitled to a 90% reduction of the land use tax.
3. Others
¡õApplicable ¡ÌN/A
VII Notes to items in consolidated financial statements1 Cash and cash equivalents
¡ÌApplicable ¡õN/A
Unit: RMB
Item | Closing balance | Opening balance |
Cash on hand | 369,439.29 | 523,925.97 |
Bank deposits | 7,178,418,970.68 | 6,181,870,591.84 |
Other cash and cash equivalents | 1,387,062.40 | 304,014,134.07 |
Total | 7,180,175,472.37 | 6,486,408,651.88 |
In which: amount deposited abroad | 19,522,661.86 | 5,282,591.84 |
Other notes:
For the cash and cash equivalents which are restricted in use, please refer to NotesVII-81 Assets with Restricted Title or Right of Use.
Interest income of demand deposits is accrued based on the demand deposit ratesof banks. The term of short-term time deposits ranges from three months to half ayear and depends on the Group¡¯s cash demand, and the interest income thereof isaccrued based on the corresponding time deposit rates of banks.2 Held-for-trading financial assets
¡ÌApplicable ¡õN/A
Unit: RMB
Item | Closing balance | Opening balance |
Financial assets that are measured by fair value and of which the changes in fair value are recognized in the profit or loss for the current period | 32,092,542.45 | 38,077,703.92 |
In which: | ||
Convertible bonds investment | 32,076,492.78 | 32,076,492.78 |
Wealth management products | 6,000,000.00 | |
Others | 16,049.67 | 1,211.14 |
Total | 32,092,542.45 | 38,077,703.92 |
Other notes:
¡õApplicable ¡ÌN/A
3 Derivative financial assets
¡õApplicable ¡ÌN/A
4 Notes receivable
(1) Categorized presentation of notes receivable
¡õApplicable ¡ÌN/A
(2) Notes receivable having been pledged by the Company as of the close ofthe reporting period
¡õApplicable ¡ÌN/A
(3) Notes receivable having been endorsed or discounted by the Company asof the close of the reporting period and having not been due as of the balancesheet date
¡õApplicable ¡ÌN/A
(4) Notes turned into accounts receivable due to the drawers¡¯non-performance at the close of the reporting period
¡õApplicable ¡ÌN/A
(5) Categorized disclosure based on the bad debt provision method
¡õApplicable ¡ÌN/A
(6) Provisions for bad debts
¡õApplicable ¡ÌN/A
(7) Notes receivable actually written off during the current period
¡õApplicable ¡ÌN/A
Other notes:
¡õApplicable ¡ÌN/A
5 Accounts receivable
(1) Disclosure based on account age
¡ÌApplicable ¡õN/A
Unit: RMB
Account age | Closing book balance |
Within 1 year | 229,367,008.49 |
1 to 2 years | |
2 to 3 years | |
Over 3 years | 211,046.06 |
Less: bad debt provision for accounts receivable | -343,338.48 |
Total | 229,234,716.07 |
(2) Categorized disclosure based on the bad debt provision method
¡ÌApplicable ¡õN/A
Unit: RMB
Category | Closing balance | Opening balance | ||||||||
Book balance | Bad debt provision | Book value | Book balance | Bad debt provision | Book value | |||||
Amount | Weight (%) | Amount | Provision ratio (%) | Amount | Weight (%) | Amount | Provision ratio (%) | |||
Accounts receivable for which bad debt provision is made individually | 31,912.97 | 0.01 | 31,912.97 | 100.00 | 78,801.18 | 0.48 | 78,801.18 | 100.00 | ||
Accounts receivable for which bad debt provision is made by group | 229,546,141.58 | 99.99 | 311,425.51 | 0.14 | 229,234,716.07 | 16,258,851.28 | 99.52 | 227,773.23 | 1.40 | 16,031,078.05 |
Total | 229,578,054.55 | / | 343,338.48 | / | 229,234,716.07 | 16,337,652.46 | / | 306,574.41 | / | 16,031,078.05 |
Accounts receivable for which bad debt provision is made individually:
¡ÌApplicable ¡õN/A
Unit: RMB
Item | Closing balance | |||
Book balance | Bad debt provision | Provision ratio (%) | Reason for provision | |
Credit consumption of hotel | 31,912.97 | 31,912.97 | 100 | The amount is estimated to be unrecoverable |
Total | 31,912.97 | 31,912.97 | 100 | / |
Explanation for making bad debt provision for accounts receivable individually:
¡õApplicable ¡ÌN/A
Explanation for making bad debt provision for accounts receivable by group:
¡õApplicable ¡ÌN/A
If the bad debt provision is made according to the general model of expected creditloss, please refer to the disclosure of other receivables:
¡ÌApplicable ¡õN/A
Item | Closing balance | ||
Accounts receivable | Bad debt provision | Provision ratio (%) | |
Within 1 year | 229,335,095.52 | 100,379.45 | 0.04 |
Over 3 years | 211,046.06 | 211,046.06 | 100.00 |
Total | 229,546,141.58 | 311,425.51 | 0.14 |
(3) Bad debt provisions
¡ÌApplicable ¡õN/A
Unit: RMB
Category | Opening balance | Amount of change during the current period | Closing balance | |||
Provision | Recovery or reversal | Charge-off or write-off | Other changes | |||
Bad debt provision for accounts receivable | 306,574.41 | 36,764.07 | 343,338.48 | |||
Total | 306,574.41 | 36,764.07 | 0.00 | 0.00 | 343,338.48 |
In which the recovered or reversed amount is important:
¡õApplicable ¡ÌN/A
(4) Accounts receivable actually written off during the current period
¡õApplicable ¡ÌN/A
(5) Accounts receivable from the five debtors with the highest closing
balance
¡ÌApplicable ¡õN/A
Debtor | Book balance | Weight % |
HOUS GROUP CO.,LIMITED | 22,321,840.49 | 9.74 |
YOSICIL SRL SOS. | 17,114,079.62 | 7.47 |
GLOBAL MANDIRI SDN BHD | 14,668,326.53 | 6.40 |
LETOILE S.A. | 11,375,669.61 | 4.96 |
ALWAGEBAT AL-ALMEIA ADVANCED BUSINESS CO.,LTD | 8,242,222.43 | 3.60 |
Total | 73,722,138.68 | 32.16 |
(6) Accounts receivable derecognized due to transfer of financial assets
¡õApplicable ¡ÌN/A
(7) Amounts of assets and liabilities formed by the transfer of accountsreceivable and continuing involvement
¡õApplicable ¡ÌN/A
Other notes:
¡õApplicable ¡ÌN/A
6 Accounts receivable financing
¡õApplicable ¡ÌN/A
7 Prepayment
(1) Presentation of prepayment by age
¡ÌApplicable ¡õN/A
Unit: RMB
Age | Closing balance | Opening balance | ||
Amount | Weight (%) | Amount | Weight (%) | |
Within 1 year | 182,826,958.31 | 99.46 | 42,831,583.46 | 95.87 |
1 to 2 years | 146,509.55 | 0.08 | 503,472.23 | 1.13 |
2 to 3 years | - | 413,870.29 | 0.93 | |
Over 3 years | 848,276.82 | 0.46 | 929,262.00 | 2.08 |
Total | 183,821,744.68 | 100.00 | 44,678,187.98 | 100.00 |
Explanation for failure to settle the prepayments with an account age longer thanone year and in important amounts:
None
(2) Prepayments to the five suppliers with the highest closing balance
¡ÌApplicable ¡õN/A
Supplier | Book balance | Weight % |
Yiwu Lanlan E-commerce Trading Company | 34,860,524.97 | 18.96 |
Suzhou Zehai Wulian Intelligent Technology Co., Ltd. | 18,402,696.00 | 10.01 |
Zhejiang Baisha Construction Co., Ltd. | 13,110,577.03 | 7.13 |
Zhejiang Hengfeng Group Co., Ltd. | 11,428,571.40 | 6.22 |
Zhejiang Jipeng Import and Export Trade Co., Ltd. | 4,819,276.00 | 2.62 |
Total | 82,621,645.40 | 44.95 |
Other notes
¡õApplicable ¡ÌN/A
8 Other receivablesPresentation of items
¡ÌApplicable ¡õN/A
Unit: RMB
Item | Closing balance | Opening balance |
Interest receivable | 136,159,029.06 | 191,064,382.11 |
Other receivables | 2,365,082,272.00 | 1,206,164,016.87 |
Total | 2,501,241,301.06 | 1,397,228,398.98 |
Other notes:
¡õApplicable ¡ÌN/A
Interest receivable
(1) Classification of interest receivable
¡ÌApplicable ¡õN/A
Unit: RMB
Item | Closing balance | Opening balance |
Cash occupation fee for receivables | 136,159,029.06 | 191,064,382.11 |
Total | 136,159,029.06 | 191,064,382.11 |
(2) Significant overdue interest
¡õApplicable ¡ÌN/A
(3) Bad debt provision
¡õApplicable ¡ÌN/A
Other notes:
¡ÌApplicable ¡õN/A
1. The cash occupation fee for receivables is the cash occupation fee for thefinancial assistance receivable from joint ventures. For details, please refer to NotesXII-6 Accounts Receivable from and Payable to Related PartiesDividend receivable
(1) Dividend receivable
¡õApplicable ¡ÌN/A
(2) Important dividend receivable with an account age longer than 1 year
¡õApplicable ¡ÌN/A
(3) Bad debt provision
¡õApplicable ¡ÌN/A
Other notes:
¡õApplicable ¡ÌN/A
Other receivables
(1) Disclosure based on account age
¡ÌApplicable ¡õN/A
Unit: RMB
Age | Closing book balance |
Within 1 year | |
In which: sub-items | |
Sub-total of other receivables with the age within 1 year | 1,957,805,521.67 |
1 to 2 years | 355,591,035.53 |
2 to 3 years | 2,493,462.21 |
Over 3 years | 65,525,723.79 |
Less: bad debt provision | -16,333,471.20 |
Total | 2,365,082,272.00 |
(2) Classification based on the nature of accounts
¡ÌApplicable ¡õN/A
Unit: RMB
Nature of receivable | Closing book balance | Opening book balance |
Financial assistance receivable from joint ventures | 2,048,606,687.48 | 1,135,980,817.96 |
Reserve | 614,471.83 | 791,675.95 |
Withholding, deposit and margin | 315,861,112.69 | 69,391,522.96 |
Total | 2,365,082,272.00 | 1,206,164,016.87 |
(3) Bad debt provision
¡ÌApplicable ¡õN/A
Unit: RMB
Bad debt provision | Phase 1 | Phase 2 | Phase 3 | Total |
Expected credit loss in the coming 12 months | Expected credit loss in the entire duration (credit has not been impaired) | Expected credit loss in the entire duration (credit has been impaired) | ||
Balance as of Jan 1, 2020 | 13,729,240.44 | 13,729,240.44 | ||
Provision made in the current period | 2,604,230.76 | 2,604,230.76 | ||
Balance as of Jun 30, 2020 | 16,333,471.20 | 16,333,471.20 |
Significant changes in the book balance of other receivables with changes in lossprovisions:
¡õApplicable ¡ÌN/A
Basis for the bad debt provision made in the current period and for assessingwhether the credit risk of financial instruments has increased significantly:
¡õApplicable ¡ÌN/A
(4) Bad debt provision
¡ÌApplicable ¡õN/A
Unit: RMB
Category | Opening balance | Change in the current period | Closing balance | |||
Provision | Recovery or reversal | Charge-off or write-off | Other changes | |||
Bad debt | 13,729,240.44 | 2,604,230.76 | 16,333,471.2 |
provision for other receivables | 0 | |||||
Total | 13,729,240.44 | 2,604,230.76 | 16,333,471.20 |
In which the recovered or reversed amount is important:
¡õApplicable ¡ÌN/A
(5) Other receivables actually written off during the current period
¡õApplicable ¡ÌN/A
(6) Other receivables from the five debtors with highest closing balance
¡ÌApplicable ¡õN/A
Unit: RMB
Debtor | Nature of receivable | Closing balance | Account age | Weight in the total closing balance of other receivables (%) | Closing balance of bad debt provision |
Yiwu Gongchen Shangbo Property Co., Ltd. | Financial assistance | 1,594,759,831.00 | Within 1 year | 67.76 | |
Yiwu Huangyuan Shangbo Property Co., Ltd. | Financial assistance | 228,464,117.96 | Within 1 year and 1 to 2 years | 9.71 | |
Yiwu Chengzhen Property Co., Ltd. | Financial assistance | 225,228,282.35 | 1 to 2 years | 9.57 | |
Yiwu Land and Resources Bureau | Land bid deposit | 211,770,000.00 | Within 1 year | 9.00 | |
Hangzhou Property Maintenance Funds Management Center | Residential property maintenance funds | 13,180,039.22 | Over 3 years | 0.56 | 2,636,007.84 |
Total | / | 2,273,402,270.53 | / | 96.60 | 2,636,007.84 |
(7) Receivables involving government grants
¡õApplicable ¡ÌN/A
(8) Other receivables derecognized due to transfer of financial assets
¡õApplicable ¡ÌN/A
(9) Amounts of assets and liabilities formed by the transfer of accountsreceivable and continuing involvement
¡õApplicable ¡ÌN/A
Other notes:
¡õApplicable ¡ÌN/A
9 Inventory
(1) Classification of inventory
¡ÌApplicable ¡õN/A
Unit: RMB
Item | Closing balance | Opening balance | ||||
Book balance | Provision for inventory depreciation/provision for impairment of contract performance cost | Book value | Book balance | Provision for inventory depreciation/provision for impairment of contract performance cost | Book value | |
Raw materials | 757,336.53 | 757,336.53 | 785,843.60 | 785,843.60 | ||
Finished goods | 24,027,003.40 | 24,027,003.40 | 22,798,397.61 | 22,798,397.61 | ||
work-in-progress materials | 6,610,105.61 | 6,610,105.61 | 4,022,027.42 | 4,022,027.42 | ||
Development cost | 3,283,796,900.03 | 28,303,338.06 | 3,255,493,561.97 | 3,033,536,072.23 | 28,303,338.06 | 3,005,232,734.17 |
Development products | 1,245,799,972.96 | 1,245,799,972.96 | 1,263,222,441.45 | 1,263,222,441.45 | ||
Total | 4,560,991,318.53 | 28,303,338.06 | 4,532,687,980.47 | 4,324,364,782.31 | 28,303,338.06 | 4,296,061,444.25 |
(2) Provision for inventory depreciation/provision for impairment of contractperformance cost
¡ÌApplicable ¡õN/A
Unit: RMB
Item | Opening balance | Increase in the current period | Decrease in the current period | Closing balance | ||
Provision | Others | Charge-off or write-off | Others | |||
Development cost | 28,303,338.06 | 28,303,338.06 | ||||
Total | 28,303,338.06 | 28,303,338.06 |
(3) Closing balance of inventory containing capitalized borrowing costs
¡ÌApplicable ¡õN/A
As of Jun 30, 2020, the inventory with book value of RMB36,196,787.20(RMB36,196,787.20 on Dec 31, 2019) was formed from the capitalization ofborrowing costs.
(4) Amortization of contract performance cost during the current period
¡õApplicable ¡ÌN/A
Other notes:
¡ÌApplicable ¡õN/A
Inventory¡ªdevelopment cost | ||||
Name of project | Opening balance of the current year | Increase in the current year | Decrease in the current year | Closing balance of the current year |
Pujiang Lvgu | 865,287,512.92 | 30,264,673.90 | 895,552,186.82 | |
Haicheng Phase I Business Street | 67,907,950.27 | 67,907,950.27 | ||
Haicheng Phase II Business Street | 135,754,710.48 | 2,862,496.10 | 138,617,206.58 | |
Jiamei Plaza | 1,198,924,906.61 | 96,419,075.23 | 1,295,343,981.84 | |
Suxi Yinxiang | 765,539,329.95 | 117,653,829.24 | 883,193,159.19 | |
Gongchen Shangbo | 121,662.00 | 121,662.00 | ||
Jiangxi Shangbo | 3,182,415.33 | 3,182,415.33 | ||
Total | 3,033,536,072.23 | 250,382,489.80 | 121,662.00 | 3,283,796,900.03 |
Inventory¡ªdevelopment products | ||||
Name of project | Opening balance of the current year | Increase in the current year | Delivery in the current year | Closing balance of the current year |
Pujiang Lvgu | 130,954,254.73 | -1,779,785.00 | 129,174,469.73 | |
Haicheng Phase I Business Street | 918,976,130.79 | 918,976,130.79 | ||
Mingshi Jiayuan | 946,724.03 | 88,755.38 | 857,968.65 | |
Trade City Century Village | 23,993.03 | 23,993.03 | ||
Jin Qiao Ren Jia | 1,731,088.61 | 395,202.49 | 1,335,886.12 | |
Hangzhou Dongcheng Yinxiang Apartment | 31,653,448.92 | 9,096,509.42 | 22,556,939.50 | |
Qiantang Yinxiang | 238,807.22 | 238,807.22 | ||
Fenghuang Yinxiang | 150,488,116.13 | 5,246,430.06 | 145,241,686.07 | |
He Tang Yue Se | 10,845,072.64 | 65,435.89 | 10,779,636.75 | |
Shuangchuang Building | 17,364,805.35 | 750,350.25 | 16,614,455.10 | |
Total | 1,263,222,441.45 | -1,779,785.00 | 15,642,683.49 | 1,245,799,972.96 |
10 Contract assets
(1) Overview of contract assets
¡õApplicable ¡ÌN/A
(2) Amount of and reasons for material changes to book value during thereporting period
¡õApplicable ¡ÌN/A
(3) Provision for impairment of contract assets in the current period
¡õApplicable ¡ÌN/A
Other notes:
¡õApplicable ¡ÌN/A
11 Held-for-sale assets
¡õApplicable ¡ÌN/A
12 Non-current assets due within one year
¡õApplicable ¡ÌN/A
13 Other current assets
¡ÌApplicable ¡õN/A
Unit: RMB
Item | Closing balance | Opening balance |
Entrusted loans to the merchants | 3,229,841.79 | 3,234,841.81 |
Other entrusted loans | 35,000,000.00 | |
To-be-deducted input tax | 265,442,293.26 | 172,556,881.73 |
To-be-certified input tax | 3,450,333.22 | 1,449,678.96 |
Additional deduction | 5,119,089.70 | |
Prepaid land transfer fees | 2,887,900,000.00 | |
Debt investment | 595,000,000.00 | |
Less: bad debt provision for entrusted loans | -185,500.00 | -185,500.00 |
Total | 872,056,057.97 | 3,099,955,902.50 |
Other notes:
None
14 Debt investment
(1) Overview of debt investment
¡õApplicable ¡ÌN/A
(2) Important debt investment as of the close of the reporting period
¡õApplicable ¡ÌN/A
(3) Provision for impairment
¡õApplicable ¡ÌN/A
15 Other debt investment
(1) Overview of other debt investment
¡õApplicable ¡ÌN/A
(2) Important other debt investment as of the close of the reporting period
¡õApplicable ¡ÌN/A
(3) Provision for impairment
¡õApplicable ¡ÌN/A
Other notes:
¡õApplicable ¡ÌN/A
16 Long-term receivables
(1) Overview of long-term receivables
¡ÌApplicable ¡õN/A
Unit: RMB
Item | Closing balance | Opening balance | Range of discount rate | ||||
Book value | Bad debt provision | Book value | Book balance | Bad debt provision | Book value | ||
Financial assistance receivable from joint ventures | 93,650,436.15 | 93,650,436.15 | 61,250,000.00 | 61,250,000.00 | |||
Total | 93,650,436.15 | 93,650,436.15 | 61,250,000.00 | 61,250,000.00 | / |
(2) Bad debt provision
¡õApplicable ¡ÌN/A
(3) Long-term receivables derecognized due to transfer of financial assets
¡õApplicable ¡ÌN/A
(4) Amounts of assets and liabilities formed by the transfer of long-termreceivables and continuing involvement
¡õApplicable ¡ÌN/A
Other notes:
¡ÌApplicable ¡õN/A
For receivable financial assistances, please refer to Notes XII-6 AccountsReceivable from and Payable to Related Parties.17 Long-term equity investment
¡ÌApplicable ¡õN/A
Unit: RMB
Investee | Opening balance | Change in the current period | Closing balance | Closing balance of impairment provision | |||||||
Additional investment | Decrease in investment | Investment gains or losses recognized with the equity method | Adjustment of other comprehensive income | Change in other benefits | Cash dividend or profits declared to be distributed | Impairment provision | Others | ||||
1. Joint ventures | |||||||||||
Yiwu Shanglv | 348,139,707.06 | 1,410,985.53 | 349,550,692.59 | ||||||||
Yiwu Rongshang Property | 23,890,291.66 | -4,262,987.41 | 19,627,304.25 | ||||||||
Yiwu Chuangcheng Property | 17,885,010.32 | -2,436,401.16 | 15,448,609.16 | ||||||||
Yiwu Guoshen Property | 20,000,000.00 | -11,058,047.24 | 8,941,952.76 | ||||||||
Others | 26,809,427.55 | -467,881.45 | 26,341,546.10 | 3,327,216.16 | |||||||
Subtotal | 416,724,436.59 | 20,000,000.00 | -16,814,331.73 | 419,910,104.86 | 3,327,216.16 | ||||||
2. Associates | |||||||||||
Binjiang Shangbo | 137,128,387.75 | 16,729,010.14 | 153,857,397.89 | ||||||||
Huishang Micro-Finance | 83,302,336.78 | -7,756,416.35 | 75,545,920.43 | ||||||||
Chouzhou Financial Lease | 330,665,464.31 | 20,478,144.40 | 351,143,608.71 | ||||||||
Yiwu China Commodities City Investment and Management Co., Ltd. | 9,508,049.22 | ||||||||||
Yiwu China Commodities City Fuxing Investment Center (limited partnership) | 102,918,559.00 | 102,918,559.00 |
Hangzhou MicroAnts Co., Ltd. | 10,480,198.77 | -854,967.39 | 9,625,231.38 | ||||||||
Yiwu Hongyi Equity Investment Fund Partnership (limited partnership) | 590,375,442.26 | 90,000,000.00 | 1,843,206.70 | 682,218,648.96 | |||||||
Others | 99,825,229.11 | 15,385,901.20 | 2,654,175.06 | 1,025,208.16 | 2,072,860.50 | 111,509,302.91 | |||||
Sub-total | 1,354,695,617.98 | 105,385,901.20 | 2,654,175.06 | 31,464,185.66 | 2,072,860.50 | 1,486,818,669.28 | 9,508,049.22 | ||||
Total | 1,771,420,054.57 | 125,385,901.20 | 2,654,175.06 | 14,649,853.93 | 2,072,860.50 | 1,906,728,774.14 | 12,835,265.38 |
Other notes
Provision for impairment of long-term equity investment£º
Opening balance of the current year | Increase in the current year | Decrease in the current year | Closing balance | |
Yiwu China Commodities City Investment and Management Co., Ltd. | 9,508,049.22 | 9,508,049.22 | ||
Others | 3,327,216.16 | 3,327,216.16 | ||
12,835,265.38 | 12,835,265.38 |
Note 1: in 2017, the Group¡¯s wholly-owned subsidiary Yiwu China Commodities CityFinancial Holdings Co., Ltd. (¡°CCCF¡±) and Shanghai Fuxing Industry Group Co., Ltd.(¡°Fuxing¡±) jointly established an industry fund Yiwu China Commodities City FuxingInvestment Center (limited partnership) (hereinafter referred to as the ¡°FoF¡±). TheFoF has invested in 12 sub-funds including Yiwu Shangfu Chuangzhi InvestmentCenter (limited partnership) (¡°Shangfu Chuangzhi Fund¡±). CCCF subscribed forcapital contribution of RMB998mn in the FoF as a limited partner, accounting for
49.9% of the total capital contribution, and has paid in RMB102.92mn, and theunpaid portion is not subject to any term. Fuxing is also a limited partner of the FoF.CCCF also made capital contribution of RMB9.8mn (49% equity) to establish, jointlywith Fuxing, Yiwu China Commodities City Investment and Management Co., Ltd.(hereinafter referred to as the ¡°CCCIM¡±) to be a general partner of the above FoFand sub-funds. The FoF and CCCIM are both under the control of Fuxing and areassociates of CCCF. As a limited partner of Shangfu Chuangzhi Fund, CCCF hassubscribed for and made capital contribution of RMB617.51mn. Due to thesubstance of Fuxing¡¯s fixed income as guarantee for the capital contribution, thecapital contribution was recognized as other non-current assets at the end of 2018(please refer to Notes V-19 for details); in 2019, due to the implementation of thenew standards for financial instruments, the investment could not pass thecontractual cash flow test and was thus re-classified into the financial assets thatare measured by fair value and of which the changes in fair value are recognized inthe profit or loss for the current period, and was presented as other non-currentfinancial assets (please refer to Notes VII-18 for details). The above paid-in capitalcontribution made by CCCF to the FoF has been contributed to Shangfu ChuangzhiFund together with the capital contribution of Fuxing to the FoF through the FoF as
a limited partner. With the capital contribution from the FoF as a limited partner andCCCF¡¯s capital contribution to Shangfu Chuangzhi Fund as a limited partner,Shangfu Chuangzhi Fund made capital contribution of RMB820.54mn to subscribefor the increase in the registered capital of Hubei Provincial Asset Management Co.,Ltd. to acquire 22.667% equity therein.In 2018, CCCF learned during its after-investment follow-up management thatFuxing and its actual controller ZHU Yidong were suspected of having committed acriminal offense and the 22.667% equity held by Shangfu Chuangzhi Fund in HubeiProvincial Asset Management Co., Ltd. was frozen by the Public Security Bureau ofShanghai due to Fuxing¡¯s contribution to the sources of the capital contribution. TheGroup thought that as of Dec 31, 2018, the Group¡¯s capital contributions to the FoFand Shangfu Chuangzhi Fund were irrelevant to Fuxing¡¯s capital contribution andhad not been impaired, but it made full provision for its equity investment in CCCIM.Please refer to Notes VII-81 and Notes XIV-1.18 Other equity instruments investment
(1) Overview of other equity instruments investment
¡ÌApplicable ¡õN/A
Unit: RMB
Item | Closing balance | Opening balance |
Shenwan Hongyuan Securities Co., Ltd. | 633,408,055.13 | 642,187,968.78 |
Total | 633,408,055.13 | 642,187,968.78 |
(2) Non-trading equity instruments investment
¡õApplicable ¡ÌN/A
Other notes:
¡õApplicable ¡ÌN/A
19 Other non-current financial assets
¡ÌApplicable ¡õN/A
Unit: RMB
Item | Closing balance | Opening balance |
PE investment | 1,379,506,051.18 | 1,374,004,972.45 |
Unlisted equity investment | 127,388,186.57 | 81,388,186.57 |
NEEQ equity investment | 50,524,390.85 | 64,056,280.00 |
Total | 1,557,418,628.60 | 1,519,449,439.02 |
Other notes:
The above included the investment of RMB617,511,352.00 made by CCCF in YiwuShangfu Chuangzhi Investment Center (limited partnership) as a limited partner.20 Property investmentMeasurement models
(1) Property investment measured by cost
Unit: RMB
Item | Buildings and structures | Land use right | Total |
I. Original book value | |||
1. Opening balance | 1,694,060,209.90 | 576,533,042.18 | 2,270,593,252.08 |
2. Increase in the current period | 523,034,076.97 | - | 523,034,076.97 |
(1) Outsourcing | 515,928,954.94 | 515,928,954.94 | |
(2) Inventory\fixed assets\construction in progress changed into property investment | 7,086,024.37 | 7,086,024.37 | |
(3) Others | 19,097.66 | 19,097.66 | |
3. Decrease in the current period | 4,193,501.25 | 3,431,878.11 | 7,625,379.36 |
(1) Disposal | 315,716.96 | 1,209,465.00 | 1,525,181.96 |
(2) Other changeover | 3,877,784.29 | 2,222,413.11 | 6,100,197.40 |
4. Closing balance | 2,212,900,785.62 | 573,101,164.07 | 2,786,001,949.69 |
II. Accumulated depreciation and accumulated amortization | - | ||
1. Opening balance | 331,296,074.26 | 76,078,821.42 | 407,374,895.68 |
2. Increase in the current period | 39,467,365.81 | 5,279,744.92 | 44,747,110.73 |
(1) Provision or amortization | 39,467,365.81 | 5,279,744.92 | 44,747,110.73 |
3. Decrease in the current period | 612,031.31 | 689,583.05 | 1,301,614.36 |
(1) Disposal | 167,540.18 | 403,611.40 | 571,151.58 |
(2) Other changeover | 444,491.13 | 285,971.65 | 730,462.78 |
4. Closing balance | 370,151,408.76 | 80,668,983.29 | 450,820,392.05 |
III. Depreciation provision | |||
IV. Book value | |||
1. Opening book value | 1,842,749,376.86 | 492,432,180.78 | 2,335,181,557.64 |
2. Closing book value | 1,362,764,135.64 | 500,454,220.76 | 1,863,218,356.40 |
(2) Property investment for which the ownership certificates have not been
obtained:
¡ÌApplicable ¡õN/A
Unit: RMB
Item | Book value | Reasons for having not obtained the ownership certificate |
Jiangxi Yinxiang Xintiandi Commercial City | 173,954,508.54 | Completion settlement not completed |
Office building of the auxiliary project in western Yiwu | 108,790,539.02 | Completion settlement not completed |
Total | 282,745,047.56 |
Other notes:
¡õApplicable ¡ÌN/A
21 Fixed assetsPresentation of items
¡ÌApplicable ¡õN/A
Unit: RMB
Item | Closing balance | Opening balance |
Fixed assets | 5,306,898,046.33 | 4,783,819,070.71 |
Total | 5,306,898,046.33 | 4,783,819,070.71 |
Other notes:
NoneFixed assets
(1) Overview of fixed assets
¡ÌApplicable ¡õN/A
Unit: RMB
Item | Buildings and structures | Machinery equipment | Transportation equipment | Total |
I. Original book value: | ||||
1. Opening balance | 6,800,283,071.04 | 3,665,371,519.30 | 19,996,191.63 | 10,485,650,781.97 |
2. Increase in the current period | 542,009,226.35 | 171,655,048.85 | - | 713,664,275.20 |
(1) Purchase | 17,010,957.58 | 17,010,957.58 | ||
(2) Changeover from construction in progress | 542,009,226.35 | 133,281,174.97 | 675,290,401.32 | |
(3) Increase due to mergers | 21,362,916.30 | 21,362,916.30 | ||
3. Decrease in the current period | 3,111,858.44 | 4,219,406.07 | - | 7,331,264.51 |
(1) Disposal or retirement | 1,065,282.97 | 3,374,968.35 | 4,440,251.32 | |
(2) Other changeover | 2,046,575.47 | 844,437.72 | 2,891,013.19 | |
4. Closing balance | 7,339,180,438.95 | 3,832,807,162.08 | 19,996,191.63 | 11,191,983,792.66 |
II. Accumulated depreciation | - | |||
1. Opening balance | 2,203,781,112.95 | 3,012,444,637.93 | 14,442,492.53 | 5,230,668,243.41 |
2. Increase in the current period | 138,382,872.92 | 48,776,324.15 | 558,201.06 | 187,717,398.13 |
(1) Provision | 138,382,872.92 | 48,776,324.15 | 558,201.06 | 187,717,398.13 |
3. Decrease in the current period | 450,565.42 | 4,012,797.64 | - | 4,463,363.06 |
(1) Disposal or retirement | 450,565.42 | 4,012,797.64 | 4,463,363.06 | |
4. Closing balance | 2,341,713,420.45 | 3,057,208,164.44 | 15,000,693.59 | 5,413,922,278.48 |
III. Impairment provision | - | |||
1. Opening balance | 471,163,467.85 | 471,163,467.85 | ||
2. Closing balance | 471,163,467.85 | 471,163,467.85 | ||
IV. Book value | ||||
1. Closing book value | 4,526,303,550.65 | 775,598,997.64 | 4,995,498.04 | 5,306,898,046.33 |
2. Opening book value | 4,125,338,490.24 | 652,926,881.37 | 5,553,699.10 | 4,783,819,070.71 |
(2) Temporarily idle fixed assets
¡õApplicable ¡ÌN/A
(3) Fixed assets leased in through financial lease
¡ÌApplicable ¡õN/A
Unit: RMB
Item | Original book value | Accumulated depreciation | Impairment provision | Book value |
General equipment | 6,084,431.99 | 5,841,054.71 | 243,377.28 |
(4) Fixed assets leased out through operating lease
¡õApplicable ¡ÌN/A
(5) Fixed assets for which the ownership certificates have not been obtained
¡ÌApplicable ¡õN/A
Unit: RMB
Item | Book value | Reasons for having not obtained the ownership certificate |
Huangyuan Clothing Market | 296,303,143.99 | Completion settlement not completed |
CCC Hotel | 54,903,102.37 | Completion settlement not completed |
Total | 351,206,246.36 |
Other notes:
¡ÌApplicable ¡õN/A
The impairment of fixed assets was RMB471,163,467.85, which was theimpairment of the fixed assets of Yiwu China Commodities City.Disposal of fixed assets
¡õApplicable ¡ÌN/A
22 Construction in progressPresentation of items
¡ÌApplicable ¡õN/A
Unit: RMB
Item | Closing balance | Opening balance |
Construction in progress | 336,579,220.70 | 865,754,600.02 |
Total | 336,579,220.70 | 865,754,600.02 |
Other notes:
NoneConstruction in progress
(1) Overview of construction in progress
¡ÌApplicable ¡õN/A
Unit: RMB
Item | Closing balance | Opening balance | ||||
Book balance | Impairment provision | Book value | Book balance | Impairment provision | Book value | |
West Yiwu International Means of Production Market Auxiliary Project | 118,927,524.32 | 118,927,524.32 | 715,506,628.67 | 715,506,628.67 | ||
Liaoning Xiliu Yiwu China Commodities City Commerce Phase I Project¡ªHotel Project | 32,290,506.33 | 4,635,059.96 | 27,655,446.37 | 32,290,506.33 | 4,635,059.96 | 27,655,446.37 |
Culture Creative Industry Park Project | 65,215,636.52 | 65,215,636.52 | 34,195,677.60 | 34,195,677.60 | ||
Zhimei Dachen Project | 29,859,985.81 | 29,859,985.81 | 29,859,985.81 | 29,859,985.81 | ||
Chi¡¯an Xihai Project | 28,072,996.72 | 28,072,996.72 | 28,072,996.72 | 28,072,996.72 | ||
Dafan Hotel Project | 10,399,882.84 | 10,399,882.84 | ||||
Auxiliary Project of Tourism Project | 13,521,181.26 | 13,521,181.26 | ||||
Section A Plaza Renovation Project | 18,295,254.29 | 18,295,254.29 | 17,155,743.56 | 17,155,743.56 | ||
Meihu Exhibition Center Renovation Project | 1,750,924.63 | 1,750,924.63 | 5,415,678.90 | 5,415,678.90 |
Yiwu Comprehensive Bonded Zone Project | 10,280,939.73 | 10,280,939.73 | ||||
Trade City Station in Warehouse Park | 997,950.11 | 997,950.11 | ||||
Other projects | 11,601,498.10 | 11,601,498.10 | 7,892,442.39 | 7,892,442.39 | ||
Total | 341,214,280.66 | 4,635,059.96 | 336,579,220.70 | 870,389,659.98 | 4,635,059.96 | 865,754,600.02 |
(2) Changes to important construction in progress during the current period
¡ÌApplicable ¡õN/A
Unit: RMB
Name of project | Budget | Opening balance | Increase in the current period | Amount changed into fixed assets | Other decrease in the current period | Closing balance | Ratio of accumulated investment to budget (%) | Progress of project | Accumulated capitalized interest | In which: capitalized interest in the current period | Interest capitalization ratio for the current period (%) | Source of funds |
West Yiwu International Means of Production Market Auxiliary Project | 1,339,160,000.00 | 715,506,628.67 | 61,101,418.15 | 657,680,522.50 | 118,927,524.32 | 76.43 |
75,357,556.78 | 15,494,362.77 | 4.05 | Self-owned/financing | |||||||||
Liaoning Xiliu Yiwu China Commodities City Commerce Phase I Project¡ªHotel Project | 1,800,000,000.00 | 32,290,506.33 | 32,290,506.33 | 90.85 | The main work is under construction | Self-owned/financing | ||||||
Culture Creative Industry Park Project | 507,560,000.00 | 34,195,677.60 | 48,085,672.74 | 17,065,713.82 | 65,215,636.52 | 38.61 | The renovation of Section A, B, C, D and E has been completed, and the renovation of the central square has been completed by 50% | Self-owned | ||||
Zhimei Dachen Project | 30,000,000.00 | 29,859,985.81 | 29,859,985.81 | 99.53 | The basic construction works such as the tourist center landscape renovation works and tourist footpath Phase 5 works have been completed | Self-owned | ||||||
Chi¡¯an Xihai Project | 30,000,000.00 | 28,072,996.72 | 28,072,996.72 | 93.58 | The basic construction works such as the basic infrastructures of Shangyang Countryside Complex and Shangyang-Laishan road have been completed | Self-owned |
Dafan Hotel Project | 50,740,000.00 | - | 10,399,882.84 | 10,399,882.84 | 20.50 | The construction of the main structure roofs, the confirmation of the decoration plan and the infrastructure construction for the auxiliary park of the 1-9# buildings of the hotel have been completed | Self-owned | |||||
Auxiliary Project of Tourism Project | 38,500,000.00 | - | 13,521,181.26 | 13,521,181.26 | 35.12 | The basic construction works of Maodian-Guanyu road, Dacheng Dongtang ecological parking lot and Chi¡¯an Maodian-Guanyu road to Laishansi road have been completed | Self-owned | |||||
Section A Plaza Renovation Project | 20,600,000.00 | 17,155,743.56 | 1,139,510.73 | 18,295,254.29 | 88.81 | 85% of the project has been completed | Self-owned | |||||
Meihu Exhibition Center Renovation Project | 12,000,000.00 | 5,415,678.90 | 5,565,765.79 | 9,230,520.06 | 1,750,924.63 | 91.51 | 95% of the project has been completed | Self-owned | ||||
Yiwu Comprehensive Bonded Zone Project | 6,242,500,000.00 | 10,280,939.73 | 10,280,939.73 | 0.16 | 80% of the earthwork has been completed, the overpass works have come under construction, invitations are being made for the bidding for Phase I project of the comprehensive bonded zone (civil works of customs supervision facilities) | Self-owned | ||||||
Trade City Station in Warehouse Park | 104,474,460.00 | 997,950.11 | 997,950.11 | 15.36 | Application for the construction permit is being made and the constructor is being determined | Self-owned | ||||||
Other projects | 7,892,442.39 | 4,144,220.71 | 435,165.00 | 11,601,498.10 | ||||||||
Total | 10,175,534,460.00 | 870,389,659.98 | 155,236,542.06 | 684,411,921.38 | 341,214,280.66 | / | / | 75,357,556.78 | 15,494,362.77 | / | / |
(3) Provision made for the impairment of construction in progress in thecurrent period
¡õApplicable ¡ÌN/A
Other notes
¡õApplicable ¡ÌN/A
Construction materials
¡õApplicable ¡ÌN/A
23 Bearer biological asset
(1) Bearer biological asset measured by cost
¡õApplicable ¡ÌN/A
(2) Bearer biological asset measured by fair value
¡õApplicable ¡ÌN/A
Other notes
¡õApplicable ¡ÌN/A
24 Oil and gas assets
¡õApplicable ¡ÌN/A
25 Right-of-use assets
¡õApplicable ¡ÌN/A
26 Intangible assets
(1) Overview of intangible assets
¡ÌApplicable ¡õN/A
Unit: RMB
Item | Land use right | Software | Total |
I. Original book value | |||
1. Opening balance | 4,853,588,486.46 | 8,646,093.92 | 4,862,234,580.38 |
2. Increase in the current period | 444,166,900.00 | 1,831,140.08 | 445,998,040.08 |
(1) Purchase | 444,166,900.00 | 1,831,140.08 | 445,998,040.08 |
3. Decrease in the current period | 806,310.00 | 806,310.00 | |
(1) Disposal | 806,310.00 | 806,310.00 | |
4. Closing balance | 5,296,949,076.46 | 10,477,234.00 | 5,307,426,310.46 |
II. Accumulated amortization | |||
1. Opening balance | 1,402,983,356.14 | 3,113,978.22 | 1,406,097,334.36 |
2. Increase in the current period | 64,825,023.01 | 697,791.06 | 65,522,814.07 |
(1) Provision | 64,825,023.01 | 697,791.06 | 65,522,814.07 |
3. Decrease in the current period | 266,374.95 | 266,374.95 | |
(1) Disposal | 266,374.95 | 266,374.95 | |
4. Closing balance | 1,467,542,004.20 | 3,811,769.28 | 1,471,353,773.48 |
II. Impairment provision | |||
IV. Book value |
1. Closing book value | 3,829,407,072.26 | 6,665,464.72 | 3,836,072,536.98 |
2. Opening book value | 3,450,605,130.32 | 5,532,115.70 | 3,456,137,246.02 |
The proportion of the balance of intangible assets formed through internal R&D was0% at the end of the current period
(2) Land use right for which the ownership certificate has not been obtained
¡õApplicable ¡ÌN/A
Other notes:
¡õApplicable ¡ÌN/A
27 Development expenses
¡õApplicable ¡ÌN/A
28 Goodwill
(1) Original book value of goodwill
¡õApplicable ¡ÌN/A
(2) Provision for goodwill impairment
¡õApplicable ¡ÌN/A
(3) Information on the assets group or combination of assets groups towhich the goodwill belongs
¡õApplicable ¡ÌN/A
(4) Goodwill impairment test process, key parameters (e.g. growth rate in
the forecast period, growth rate in the stable period, profit margin,discount rate, forecast period for the estimate of present value of futurecash flows, if applicable) and recognition of goodwill impairment loss
¡õApplicable ¡ÌN/A
(5) Impact of goodwill impairment test
¡õApplicable ¡ÌN/A
Other notes:
¡õApplicable ¡ÌN/A
29 Long-term prepaid expenses
¡ÌApplicable ¡õN/A
Unit: RMB
Item | Opening balance | Increase in the current period | Amortized amount in the current period | Other decrease | Closing balance |
Decoration of buildings and structures | 130,917,605.11 | 8,511.11 | 27,441,413.32 | 103,484,702.90 | |
Advertising facilities | 8,584,777.76 | 67,924.53 | 6,242,773.18 | 2,409,929.11 | |
Total | 139,502,382.87 | 76,435.64 | 33,684,186.50 | 105,894,632.01 |
Other notes:
None30 Deferred income tax assets/deferred income tax liabilities
(1) Deferred income tax assets having not been offset
¡ÌApplicable ¡õN/A
Unit: RMB
Item | Closing balance | Opening balance | ||
Deductible temporary difference | Deferred income tax assets | Deductible temporary difference | Deferred income tax assets | |
Provision for impairment of assets | 54,886,084.00 | 13,721,521.00 | 28,086,747.07 | 7,021,686.77 |
Unrealized profits of internal transactions | 105,807,284.56 | 26,451,821.14 | 107,448,552.68 | 26,862,138.17 |
Deductible losses | 58,364,771.96 | 14,591,192.99 | 85,414,896.12 | 21,353,724.03 |
Prepayment of income tax on presold houses | 177,808,146.00 | 44,452,036.50 | 92,177,928.27 | 23,044,482.07 |
Recognized but unpaid liabilities | 218,544,922.56 | 54,636,230.63 | 333,438,714.83 | 83,359,678.71 |
Overspent advertising cost | 9,910.64 | 2,477.66 | 10,604,186.36 | 2,651,046.60 |
Change in fair value of other non-current financial liabilities | 66,248,179.88 | 16,562,044.96 | 64,448,179.86 | 16,112,044.95 |
Total | 681,669,299.60 | 170,417,324.88 | 721,619,205.19 | 180,404,801.30 |
(2) Deferred income tax liabilities having not been offset
¡ÌApplicable ¡õN/A
Unit: RMB
Item | Closing balance | Opening balance | ||
Taxable temporary difference | Deferred income tax liabilities | Taxable temporary difference | Deferred income tax liabilities | |
Asset evaluation appreciation for merger of the enterprises not under common control | 1,163,217.48 | 290,804.37 | 1,257,714.04 | 314,428.51 |
Change in fair value of other equity instruments investment | 79,782,624.12 | 19,945,656.03 | 88,562,537.80 | 22,140,634.45 |
Change in fair value of other non-current financial assets | 382,470,612.56 | 95,617,653.13 | 360,477,102.93 | 90,119,275.73 |
Total | 463,416,454.16 | 115,854,113.53 | 450,297,354.77 | 112,574,338.69 |
(3) Deferred income tax assets or liabilities presented in net amount after
offsetting
¡õApplicable ¡ÌN/A
(4) Breakdown of unrecognized deferred income tax assets
¡ÌApplicable ¡õN/A
Unit: RMB
Item | Closing balance | Opening balance |
Deductible temporary difference | 3,385,634.19 | 36,832,234.08 |
Deductible loss | 767,927,960.89 | 663,848,325.35 |
Total | 771,313,595.08 | 700,680,559.43 |
(5) The deductible loss in unrecognized deferred income tax assets will be
due in the following years
¡ÌApplicable ¡õN/A
Unit: RMB
Year | Closing amount | Opening amount | Remark |
2020 | 45,804,174.10 | ||
2021 | 34,738,115.44 | 34,738,115.44 | |
2022 | 245,346,275.18 | 245,346,275.18 | |
2023 | 148,493,718.68 | 145,652,609.01 | |
2024 | 226,329,502.26 | 192,307,151.62 | |
2025 | 113,020,349.33 | ||
Total | 767,927,960.89 | 663,848,325.35 | / |
Other notes:
¡ÌApplicable ¡õN/A
The Group believed that the above deductible temporary differences such asprovision for impairment of assets and estimated profits of presold houses and the
deductible loss of some subsidiaries could be deducted in the foreseeable futureand the Group would have adequate profits before tax for such deduction during thereversal period. Therefore, the Group deemed it necessary to recognize the abovedeferred income tax assets.31 Other non-current assets
¡ÌApplicable ¡õN/A
Unit: RMB
Item | Closing balance | Opening balance | ||||
Book balance | Impairment provision | Book value | Book balance | Impairment provision | Book value | |
Prepaid land transfer fees | 138,253,316.00 | 138,253,316.00 | 138,253,316.00 | 138,253,316.00 | ||
Prepaid office building transfer fees | 22,500,000.00 | 22,500,000.00 | 519,850,000.00 | 519,850,000.00 | ||
Prepayment for renovation works and prepaid decoration rent | 3,545,391.19 | 3,545,391.19 | ||||
Total | 160,753,316.00 | 160,753,316.00 | 661,648,707.19 | 661,648,707.19 |
Other notes:
None32 Short-term borrowings
(1) Classification of short-term borrowings
¡ÌApplicable ¡õN/A
Unit: RMB
Item | Closing balance | Opening balance |
Credit loans | 3,577,474,227.22 | 4,178,903,704.82 |
Total | 3,577,474,227.22 | 4,178,903,704.82 |
Note to the classification of short-term borrowings:
As of Jun 30, 2020, the annual interest rate of the above borrowings was
1.10%-4.15% (1.10%-4.35% as of Dec 31, 2019). For the guarantees for theborrowings, please refer to Notes 12-5-(4) Related-Party Guarantees
(2) Overdue short-term borrowings
¡õApplicable ¡ÌN/A
Other notes:
¡õApplicable ¡ÌN/A
33 Held-for-trading financial liabilities
¡õApplicable ¡ÌN/A
34 Derivative financial liabilities
¡õApplicable ¡ÌN/A
35 Notes payable
¡õApplicable ¡ÌN/A
36 Accounts payable
(1) Presentation of accounts payable
¡ÌApplicable ¡õN/A
Unit: RMB
Item | Closing balance | Opening balance |
Accounts payable for real estate projects | 302,129,281.17 | 300,646,681.02 |
Accounts payable for market and auxiliary works projects | 132,700,009.10 | 180,639,638.94 |
Accounts payable for procurement for the hotel project | 27,202,590.77 | 23,650,330.93 |
Accounts payable for import and export | 193,414,224.96 | |
Others | 35,031,112.81 | 20,304,842.59 |
Total | 690,477,218.81 | 525,241,493.48 |
(2) Important accounts payable with age over 1 year
¡ÌApplicable ¡õN/A
Unit: RMB
Item | Closing balance | Reasons for not being paid or carried forward |
Accounts payable for real estate projects | 35,931,620.16 | Settlement has not been completed or the projects are within the warranty periods |
Total | 35,931,620.16 | / |
Other notes:
¡ÌApplicable ¡õN/A
The accounts payable are free of interest and are generally paid within two monthsafter receipt of the payment notice or based on the project contracts and progress ofprojects. The balance payments for the projects are made after completion ofsettlement.
37 Advances from customers
(1) Presentation of advances from customers
¡ÌApplicable ¡õN/A
Unit: RMB
Item | Closing balance | Opening balance |
Rental advances | 18,672,952.84 | 250,436,393.04 |
Total | 18,672,952.84 | 250,436,393.04 |
(2) Important advances with the age over 1 year
¡õApplicable ¡ÌN/A
Other notes:
¡õApplicable ¡ÌN/A
38 Contract liabilities
(1) Overview of contract liabilities
¡ÌApplicable ¡õN/A
Unit: RMB
Item | Closing balance | Opening balance |
Market booth use fees | 1,506,064,215.01 | 2,657,979,673.50 |
House payment | 2,712,470,230.85 | 1,515,939,313.37 |
Goods payment | 53,781,966.82 | 20,601,261.43 |
Network cable use fees | 11,851,148.33 | 14,275,224.26 |
Advertising fees | 16,324,369.37 | 19,199,914.96 |
Exhibition fees | 1,998,842.80 | 7,188,678.96 |
Others | 101,264,214.27 | 22,834,669.11 |
Total | 4,403,754,987.45 | 4,258,018,735.59 |
(2) Amount of and reason for significant change in book value during the
reporting period
¡õApplicable ¡ÌN/A
Other notes:
¡õApplicable ¡ÌN/A
39 Payroll payable
(1) Presentation of payroll payable
¡ÌApplicable ¡õN/A
Unit: RMB
Item | Opening balance | Increase in the current period | Decrease in the current period | Closing balance |
I. Short-term compensation | 196,068,529.87 | 186,237,127.75 | 313,081,650.21 | 69,224,007.41 |
II. Post employment benefits ¨C defined contribution plan | 1,105,890.09 | 23,159,577.60 | 22,463,317.04 | 1,802,150.65 |
III. Severance benefits | 368,323.45 | 368,323.45 | ||
IV. Other benefits due within one year | ||||
Total | 197,174,419.96 | 209,765,028.80 | 335,913,290.70 | 71,026,158.06 |
(2) Presentation of short-term compensation
¡ÌApplicable ¡õN/A
Unit: RMB
Item | Opening balance | Increase in the current period | Decrease in the current period | Closing balance |
1. Salary, bonus, allowance and subsidy | 195,405,526.67 | 140,750,161.58 | 267,847,764.84 | 68,307,923.41 |
2. Employee benefits | 36,202.12 | 19,100,101.22 | 19,075,524.00 | 60,779.34 |
3. Social security contribution | 411,043.10 | 6,757,193.13 | 6,473,692.83 | 694,543.40 |
In which: contribution to medical insurance scheme | 365,691.23 | 6,441,056.57 | 6,185,257.75 | 621,490.05 |
Contribution to work-related injury insurance scheme | 22,289.75 | 151,011.52 | 133,291.57 | 40,009.70 |
Contribution to maternity insurance scheme | 23,062.12 | 165,125.04 | 155,143.51 | 33,043.65 |
4. Housing provident fund | 85,803.00 | 14,259,063.00 | 14,281,542.00 | 63,324.00 |
5. Contribution to trade union fund and employee education fund | 129,954.98 | 5,370,608.82 | 5,403,126.54 | 97,437.26 |
Total | 196,068,529.87 | 186,237,127.75 | 313,081,650.21 | 69,224,007.41 |
(3) Presentation of defined contribution plan
¡ÌApplicable ¡õN/A
Unit: RMB
Item | Opening balance | Increase in the current period | Decrease in the current period | Closing balance |
1. Contribution to the basic endowment insurance scheme | 1,020,021.28 | 8,843,336.41 | 8,192,998.50 | 1,670,359.19 |
2. Contribution to the unemployment insurance scheme | 85,868.81 | 304,696.51 | 258,773.86 | 131,791.46 |
3. Contribution to enterprise annuity | 14,011,544.68 | 14,011,544.68 | - | |
Total | 1,105,890.09 | 23,159,577.60 | 22,463,317.04 | 1,802,150.65 |
Other notes:
¡õApplicable ¡ÌN/A
40 Taxes payable
¡ÌApplicable ¡õN/A
Unit: RMB
Item | Closing balance | Opening balance |
VAT | 2,961,114.31 | 41,578,727.82 |
Business tax | -1,094,595.61 | -15,123,820.98 |
Corporate income tax | 110,793,460.16 | 187,716,475.31 |
Individual income tax | 817,363.59 | 958,941.24 |
Urban maintenance and construction tax | -4,455,424.60 | -876,344.54 |
Land appreciation tax | -62,694,045.07 | -36,912,707.44 |
Real estate tax | 42,504,762.30 | 99,398,810.58 |
Land use tax | 2,384,947.95 | 4,905,517.10 |
Others | -4,735,046.82 | -1,461,345.83 |
Total | 86,482,536.21 | 280,184,253.26 |
Other notes:
The main taxes prepaid by the Group as of Jun 30, 2020 are listed as follows:
International trade city market | He Tang Yue Se | Qiantang Yinxiang | Fenghuang Yinxiang | Europe and U.S. Center | Pujiang Lvgu | Jiamei Plaza | Suxi Shangbo | Total amount of prepaid tax | |
Business tax | 201,063.51 | 509,383.05 | 240,013.55 | 144,135.50 | 1,094,595.61 | ||||
Urban maintenance and construction tax | 36,603.75 | 156,013.43 | 731,793.32 | 1,096,159.50 | 2,008,454.31 | 1,114,074.11 | 5,143,098.42 | ||
Land appreciation tax | 0.00 | 119,905,833.25 | 337,976.86 | 74,632,317.96 | 20,275,824.43 | 15,745,580.77 | 230,897,533.27 | ||
Education surcharge and local education surcharge | 26,145.30 | 111,438.16 | 522,709.51 | 1,096,159.82 | 1,434,610.24 | 1,114,074.09 | 4,305,137.12 | ||
Total | 201,063.51 | 572,132.10 | 120,145,846.80 | 411,587.09 | 1,592,479.69 | 76,824,637.28 | 23,718,888.98 | 17,973,728.97 | 241,440,364.42 |
41 Other payablesPresentation of items
¡ÌApplicable ¡õN/A
Unit: RMB
Item | Closing balance | Opening balance |
Other payables | 759,474,210.61 | 909,483,132.47 |
Total | 759,474,210.61 | 909,483,132.47 |
Other notes:
NoneInterest payable
¡õApplicable ¡ÌN/A
Dividend payable
¡õApplicable ¡ÌN/A
Other payables
(1) Presentation of other payables by nature
¡ÌApplicable ¡õN/A
Unit: RMB
Item | Closing balance | Opening balance |
Withholdings, deposit and margin | 488,278,549.04 | 622,982,815.42 |
Miscellaneous expenses payable | 209,999,653.34 | 181,518,107.60 |
House reservation fees | 4,876,852.70 | 4,876,852.70 |
Bank reserve | 24,601,394.00 | 21,381,358.25 |
Others | 31,717,761.53 | 78,723,998.50 |
Total | 759,474,210.61 | 909,483,132.47 |
(2) Important other payables with account age over 1 year
¡õApplicable ¡ÌN/A
Other notes:
¡ÌApplicable ¡õN/A
As other payables were mainly sourced from the deposit and margin of marketbooths, the bid bond for engineering projects and the house reservation fees forreal estate projects, and the amount of each item was small, the Group did not haveimportant other payables with account age over 1 year on Jun 30, 2020.42 Held-for-sale liabilities
¡õApplicable ¡ÌN/A
43 Non-current liabilities due within one year
¡ÌApplicable ¡õN/A
Unit: RMB
Item | Closing balance | Opening balance |
Long-term borrowings within one year | 320,364,833.35 | 270,332,413.94 |
Total | 320,364,833.35 | 270,332,413.94 |
Other notes:
None44 Other current liabilities
¡ÌApplicable ¡õN/A
Unit: RMB
Item | Closing balance | Opening balance |
Short-term bonds payable | 3,031,046,913.21 | 2,011,484,133.28 |
To-be-reported output tax | 7,861,458.53 | 7,615,690.09 |
Dividend announced but not collected before listing | 2,083,112.65 | 2,083,112.65 |
Dividend payable to to-be-recognized accounts | 1,829,182.20 | 1,829,182.20 |
Total | 3,042,820,666.59 | 2,023,012,118.22 |
Changes in short-term bonds payable:
¡ÌApplicable ¡õN/A
Unit: RMB
Bond | Face value | Issue date | Maturity | Issue value | Opening balance | Current issue | Interest accrued based on face value | Premium/discount amortization | Current repayment | Closing balance |
Super short-term commercial paper | 100 | Aug 29, 2019 | 270D | 1,000,000,000 | 1,010,236,895.84 | 13,404,536.27 | 702,830.19 | 1,000,000,000 | ||
Super short-term commercial paper | 100 | Dec 9, 2019 | 270D | 1,000,000,000 | 1,001,247,237.44 | 16,803,835.62 | 480,020.97 | 1,018,565,056.29 | ||
Super short-term commercial paper | 100 | Feb 18, 2020 | 180D | 1,000,000,000 | 1,000,000,000 | 10,451,506.85 | 366,666.67 | 1,010,318,173.52 | ||
Super short-term commercial paper | 100 | May 14, 2020 | 120D | 1,000,000,000 | 1,000,000,000 | 2,374,794.52 | 122,222.22 | 1,002,163,683.40 | ||
Total | / | / | / | 4,000,000,000 | 2,011,484,133.28 | 2,000,000,000 | 43,034,673.26 | 1,671,740.05 | 1,000,000,000 | 3,031,046,913.21 |
Other notes:
¡ÌApplicable ¡õN/A
As of Jun 30, 2020, the annualized interest rates of the above commercial paperswere 1.97%-3.37% (4.19%-5.42% as of Dec 31, 2019).45 Long-term borrowings
(1) Classification of long-term borrowings
¡ÌApplicable ¡õN/A
Unit: RMB
Item | Closing balance | Opening balance |
Guaranteed borrowings | 90,098,000.00 | 200,239,555.56 |
Credit borrowings | 280,350,777.78 | 330,454,758.42 |
Total | 370,448,777.78 | 530,694,313.98 |
Notes on the classification of long-term borrowings:
NoneOther notes, including the interest rate range:
¡ÌApplicable ¡õN/A
As of Jun 30, 2020, the annualized interest rates of the above borrowings were
3.92%-4.51% (3.92%-4.51% as of Dec 31, 2019). For the guarantee information ofguaranteed borrowings, please refer to Notes XII-5-(4) Related-Party Guarantees.46 Bonds payable
(1) Bonds payable
¡ÌApplicable ¡õN/A
Unit: RMB
Item | Closing balance | Opening balance |
Bonds payable | 4,625,150,185.91 | 4,564,291,387.81 |
Total | 4,625,150,185.91 | 4,564,291,387.81 |
(2) Change in bonds payable (excluding other financial instrumentsclassified as financial liabilities, such as preferred shares and perpetualbonds)
¡ÌApplicable ¡õN/A
Unit: RMB
Bond | Face value | Issue date | Maturity | Issue value | Opening balance | Current issue | Interest accrued based on face value | Premium/discount amortization | Current repayment | Closing balance |
MTN | 100 | Sep 6, 2018 | 3Y | 1,000,000,000 | 1,012,965,562.70 | 23,684,931.51 | 634,565.60 | 1,037,285,059.81 | ||
MTN | 100 | Jul 15, 2019 | 3Y | 1,000,000,000 | 1,017,459,101.28 | 19,840,983.61 | 180,283.67 | 1,037,480,368.56 | ||
MTN | 100 | Oct 21, 2019 | 3Y | 1,000,000,000 | 1,006,575,929.31 | 19,741,530.05 | 191,133.80 | 1,026,508,593.16 | ||
Corporate bonds | 100 | Jun 5, 2019 | 3Y | 800,000,000 | 819,791,780.82 | 17,058,630.14 | 34,400,000 | 802,450,410.96 | ||
Corporate bonds | 100 | Sep 25, 2019 | 3Y | 700,000,000 | 707,499,013.70 | 13,926,739.72 | 721,425,753.42 | |||
Total | / | / | / | 4,500,000,000 | 4,564,291,387.81 | 94,252,815.03 | 1,005,983.07 | 34,400,000 | 4,625,150,185.91 |
(3) Conditions and time for the conversion of convertible corporate bonds
¡õApplicable ¡ÌN/A
(4) Notes on other financial instruments classified as financial liabilitiesBasic information of other financial instruments such as preferred shares andperpetual bonds outstanding at the end of the reporting period
¡õApplicable ¡ÌN/A
Changes in other financial instruments such as preferred shares and perpetualbonds outstanding at the end of the reporting period
¡õApplicable ¡ÌN/A
Basis for other financial instruments being classified as financial liabilities
¡õApplicable ¡ÌN/A
Other notes:
¡ÌApplicable ¡õN/A
As of Jun 30, 2020, the annualized interest rates of the above bonds payable were
3.97%-4.75% (3.97%-4.75% as of Dec 31, 2019).
47 Lease liabilities
¡õApplicable ¡ÌN/A
48 Long-term accounts payablePresentation of items
¡õApplicable ¡ÌN/A
Long-term accounts payable
¡õApplicable ¡ÌN/A
Special accounts payable
¡õApplicable ¡ÌN/A
49 Long-term payroll payable
¡õApplicable ¡ÌN/A
50 Estimated liabilities
¡ÌApplicable ¡õN/A
Unit: RMB
Item | Opening balance | Closing balance | Cause of formation |
Letter of credit compensation loss | 110,620,306.10 | 110,620,306.10 | In 2017, the letters of credit issued by the Group¡¯s subsidiary based on international trade agency business became overdue successively due to the principals¡¯ failure to make payments as agreed. Based on the principle of prudence, the Group recognized estimated liabilities for the estimated potential losses. On Apr 30, 2018, the Group lost control over the subsidiary due to its disposal of some equity in the subsidiary. As of Jun 30, 2020, the matter was still pending. |
Total | 110,620,306.10 | 110,620,306.10 | / |
Other notes, including the notes on related important assumptions and estimates ofimportant estimated liabilities:
None51 Deferred incomeOverview of deferred income
¡ÌApplicable ¡õN/A
Unit: RMB
Item | Opening balance | Increase in the current period | Decrease in the current period | Closing balance | Cause of formation |
Government grants | |||||
Asset-related government grants | 27,966,750.98 | 710,736.84 | 27,256,014.14 | ||
Income-related government grants | 3,000,000.00 | 1,500,000.00 | 1,500,000.00 | ||
Total | 27,966,750.98 | 3,000,000.00 | 2,210,736.84 | 28,756,014.14 | / |
Items involving government grants:
¡ÌApplicable ¡õN/A
Unit: RMB
Liability item | Opening balance | Increase in grant amount in the current period | Amount recognized in revenue from non-operating activities in the current period | Amount recognized in other income in the current period | Other changes | Closing balance | Asset-related or income-related |
Subsidy for service industry cluster project | 5,776,779.23 | 133,333.32 | 5,643,445.91 | Asset-related | |||
Interest subsidy for the international exhibition center construction fund | 22,189,971.75 | 577,403.52 | 21,612,568.23 | Asset-related | |||
Grant for the | 3,000,000.00 | 1,500,000.00 | 1,500,000.00 | Income-related |
Other notes:
¡õApplicable ¡ÌN/A
52 Other non-current liabilities
¡ÌApplicable ¡õN/A
Unit: RMB
construction andoperation of thecredit data centerItem
Item | Closing balance | Opening balance |
To-be-reported output tax | 1,148.89 | |
Total | 1,148.89 |
Other notes:
None53 Capital stock
¡ÌApplicable ¡õN/A
Unit: RMB
Opening balance | Increase or decrease in the current period (+, -) | Closing balance | |||||
New shares issued | Bonus shares | Shares converted from capital reserve | Others | Sub-total | |||
Total number of shares | 5,443,214,176.00 | 5,443,214,176.00 |
Other notes:
None54 Other equity instruments
(1) Basic information of other financial instruments such as preferred sharesand perpetual bonds outstanding at the end of the reporting period
¡õApplicable ¡ÌN/A
(2) Changes in other financial instruments such as preferred shares andperpetual bonds outstanding at the end of the reporting period
¡õApplicable ¡ÌN/A
Changes in other equity instruments in the current period, the reasons therefor andthe basis for relevant accounting treatment:
¡õApplicable ¡ÌN/A
Other notes:
¡õApplicable ¡ÌN/A
55 Capital reserve
¡ÌApplicable ¡õN/A
Unit: RMB
Item | Opening balance | Increase in the current period | Decrease in the current period | Closing balance |
Capital surplus (share premium) | 1,468,014,797.11 | 1,468,014,797.11 | ||
Other capital reserve | 56,168,982.53 | 15,959,450.81 | 40,209,531.72 | |
Total | 1,524,183,779.64 | 15,959,450.81 | 1,508,224,328.83 |
Other notes including those on the changes in the current period and the reasonstherefor:
None56 Treasury shares
¡õApplicable ¡ÌN/A
57 Other comprehensive income
¡ÌApplicable ¡õN/A
Unit: RMB
Item | Opening balance | Amount in the current period | Closing balance | ||
Amount before tax incurred in the current period | Less: income tax expenses | Amount after tax attributable to parent company | |||
I. Other comprehensive income that cannot be reclassified into profit or loss | 66,421,903.33 | -8,779,913.65 | -2,194,978.42 | -6,584,935.23 | 59,836,968.10 |
Changes in fair value of other equity instruments investment | 66,421,903.33 | -8,779,913.65 | -2,194,978.42 | -6,584,935.23 | 59,836,968.10 |
II. Other comprehensive income to be reclassified into profit or loss | -154,710.59 | -266,077.70 | -266,077.70 | -420,788.29 | |
Difference arising from the translation of foreign currency financial | -154,710.59 | -266,077.70 | -266,077.70 | -420,788.29 |
statements | |||||
Total other comprehensive income | 66,267,192.74 | -9,045,991.35 | -2,194,978.42 | -6,851,012.93 | 59,416,179.81 |
Other notes, including those on the adjustment of the initially recognized amount ofhedged items converted from the effective part of gains or losses from cash flowhedging:
None58 Special reserve
¡õApplicable ¡ÌN/A
59 Surplus reserves
¡ÌApplicable ¡õN/A
Unit: RMB
Item | Opening balance | Increase in the current period | Decrease in the current period | Closing balance |
Statutory surplus reserve | 1,184,282,215.22 | 1,184,282,215.22 | ||
Discretionary surplus reserve | 40,195,855.68 | 40,195,855.68 | ||
Others | 11,688,840.91 | 11,688,840.91 | ||
Total | 1,236,166,911.81 | 1,236,166,911.81 |
Notes on surplus reserves, including those on the changes in the current period andthe reasons therefor:
None60 Undistributed profits
¡ÌApplicable ¡õN/A
Unit: RMB
Item | Current period | Previous year |
Undistributed profits at the end of the previous reporting period before adjustment | 4,750,787,389.17 | 3,957,969,914.54 |
Opening undistributed profits after adjustment | 4,750,787,389.17 | 3,957,969,914.54 |
Plus: net profits attributable to shareholders of the parent company in the current period | 719,595,308.66 | 1,255,276,023.70 |
Less: withdrawal of statutory surplus reserve | 135,865,698.51 | |
Common share dividend payable | 326,592,850.56 | |
Closing undistributed profits | 5,470,382,697.83 | 4,750,787,389.17 |
Details of the adjustment of opening undistributed profits:
1. The opening undistributed profits affected by the retroactive adjustment made inaccordance with the Accounting Standards for Enterprises and related newprovisions amounted to RMB0.
2.The opening undistributed profits affected by the changes in accounting policiesamounted to RMB0.
3. The opening undistributed profits affected by the correction of major accountingerrors amounted to RMB0.
4. The opening undistributed profits affected by changes in the scope of mergerscaused by common control amounted to RMB0.
5. The opening undistributed profits affected by other adjustments togetheramounted to RMB0.61 Revenue and cost of sales
(1) Overview of revenue and cost of sales
¡ÌApplicable ¡õN/A
Unit: RMB
Item | Amount in the current period | Amount in the previous period | ||
Revenue | Cost of sales | Revenue | Cost of sales | |
Main business | 1,720,825,843.49 | 855,681,051.35 | 1,378,063,465.52 | 614,332,523.61 |
Other businesses | 400,622,950.82 | 13,546,505.12 | 425,533,089.22 | 28,350,270.57 |
Total | 2,121,448,794.31 | 869,227,556.47 | 1,803,596,554.74 | 642,682,794.18 |
(2) Revenue generated from contracts
¡õApplicable ¡ÌN/A
(3) Contract performance obligations
¡õApplicable ¡ÌN/A
(4) Amortization to remaining contract performance obligations
¡õApplicable ¡ÌN/A
Other notes:
None62 Taxes and surcharges
¡ÌApplicable ¡õN/A
Unit: RMB
Item | Amount in the current period | Amount in the previous period |
Business tax | 14,045,794.11 | 7,792,040.13 |
Urban maintenance and construction tax | 2,314,536.16 | 3,673,260.00 |
Education surcharges | 991,721.15 | 1,571,314.98 |
Real estate tax | 51,999,617.07 | 57,616,471.08 |
Land use tax | 4,196,070.42 | 5,766,214.00 |
Vehicle and vessel use tax | 32.90 | 26.64 |
Stamp duty | 2,006,907.56 | 2,150,689.64 |
Land appreciation tax | 5,552,018.39 | 8,816,844.44 |
Local education surcharges | 661,966.73 | 1,051,373.57 |
Cultural undertaking development fee | 631,486.57 | |
Total | 81,768,664.49 | 89,069,721.05 |
Other notes:
None63 Sales expenses
¡ÌApplicable ¡õN/A
Unit: RMB
Item | Amount in the current period | Amount in the previous period |
Advertising expenses | 37,445,306.55 | 26,050,575.23 |
Marketing expenses | 22,055,175.36 | 6,908,251.28 |
Security and insurance expenses | 7,101,404.90 | 8,114,200.04 |
Depreciation and amortization | 93,888.35 | 148,512.03 |
Water, electricity and fuel expenses | 2,647,286.40 | 3,084,626.27 |
Transport expenses | 1,602,775.54 | 780.00 |
Repair expenses | 1,519,754.37 | 1,413,750.70 |
Sanitation expenses | 251,799.89 | 116,921.49 |
Epidemic prevention and control expenses | 9,322,583.01 | |
Informatization construction | 5,367,416.92 | |
Employee expenses | 46,767.12 | 723,217.05 |
Others | 432,913.45 | 814,268.45 |
Total | 87,887,071.86 | 47,375,102.54 |
Other notes:
None64 Administrative expenses
¡ÌApplicable ¡õN/A
Unit: RMB
Item | Amount in the current period | Amount in the previous period |
Employee and uniform expenses | 98,049,547.02 | 91,417,943.32 |
Depreciation and amortization | 10,598,352.97 | 8,362,624.79 |
Intermediary expenses | 7,983,319.28 | 6,022,292.02 |
Travel expenses | 1,992,980.09 | 2,860,124.96 |
Office expenses | 6,236,038.03 | 3,930,554.51 |
Lease and property management expenses | 556,659.50 | 304,486.19 |
Promotion and merchants introduction expenses | 496,350.00 | 193,214.88 |
Others | 4,537,677.74 | 3,334,960.79 |
Total | 130,450,924.63 | 116,426,201.46 |
Other notes:
None65 R&D expenses
¡ÌApplicable ¡õN/A
Unit: RMB
Item | Amount in the current period | Amount in the previous period |
Labor cost | 3,834,282.80 | 4,645,053.41 |
Technology R&D expenses | 12,962,871.10 | 1,164,190.29 |
Depreciation and amortization | 284,072.04 | 158,423.66 |
Total | 17,081,225.94 | 5,967,667.36 |
Other notes:
None66 Financial expenses
¡ÌApplicable ¡õN/A
Unit: RMB
Item | Amount in the current period | Amount in the previous period |
Interest expenses | 234,936,097.83 | 223,018,844.81 |
Amortization of commercial paper discount | 2,673,477.84 | 4,334,876.02 |
Interest income | -132,172,237.44 | -131,284,052.33 |
Capitalized interest | -15,494,362.77 | -14,918,398.67 |
Foreign exchange gains or losses | -393,092.75 | 3,049,415.79 |
Others | 1,722,025.63 | 3,504,775.97 |
Total | 91,271,908.34 | 87,705,461.59 |
Other notes:
None67 Other income
¡ÌApplicable ¡õN/A
Unit: RMB
Item | Amount in the current period | Amount in the previous period |
Government subsidy for service industry cluster | 133,333.32 | 133,333.32 |
Interest subsidy for international exhibition center construction | 577,403.52 | 581,921.34 |
Financial assistance to Yiwu e-commerce business credit system construction project | 545,454.54 | |
Subsidy for undergraduates internship and practical training | 46,360.00 | |
Award for provincial service industry cluster | 550,000.00 | |
VAT refund at levying for software products | 9,108.98 | |
Grant for the construction and operation of the credit data center | 1,500,000.00 | 500,000.00 |
Provincial technology SME award | 10,000.00 | |
Software copyright subsidy | 2,700.00 | |
Special fund for the promotion of import trade | 188,800.00 | |
PV installation subsidy from the economy and information technology bureau | 616,308.00 | |
2018 R&D input award from the technology bureau | 978,100.00 | |
2019 new and high-tech award from the technology bureau | 600,000.00 | |
Subsidy for the autumn fair of the import exhibition | 570,000.00 | |
2020 online hardware exhibition subsidy | 600,000.00 | |
Tourism development special award from culture and tourism bureau | 50,000.00 | |
Civilized entity grant | 3,000.00 | |
Additional deduction of input tax from VAT | 2,634,909.22 | 353,199.71 |
Education surcharges refunded by the tax bureau | 9.78 | 254.91 |
Refund of the service charges of individual income tax | 144,060.64 | |
Refund of social security contributions (Employment stabilization subsidy) | 5,899,392.92 | |
VAT reduction for the recruitment of retired soldiers finding jobs on their own | 36,000.00 | |
Electricity charge award for production resumption | 14,214.66 | |
Total | 13,684,424.06 | 3,593,440.80 |
Other notes:
None68 Investment income
¡ÌApplicable ¡õN/A
Unit: RMB
Item | Amount in the current period | Amount in the previous period |
Income from long-term equity investment calculated with the equity method | 13,185,907.49 | 27,924,881.72 |
Investment income from disposal of long-term equity investment |
Investment income from held-for-trading financial assets during holding period | 20,500,000.00 | |
Dividend income from other equity instruments investment during holding period | 6,271,366.90 | |
Interest income from debt investment during holding period | 8,196,820.88 | |
Investment income from disposal of held-for-trading financial assets | 169,594.15 | 22,382,904.11 |
Investment income from disposal of subsidiaries and related claims | 76,523,765.30 | |
Investment income from disposal of wealth management products | 574,553.43 | |
Investment income from disposal of available-for-sale financial assets | 70,042.18 | |
Total | 119,150,641.25 | 56,649,194.91 |
Other notes:
None69 Income from net exposure hedging
¡õApplicable ¡ÌN/A
70 Income from changes in fair value
¡ÌApplicable ¡õN/A
Unit: RMB
Sources of income from changes in fair value | Amount in the current period | Amount in the previous period |
Other non-current financial assets | 20,193,509.58 | 5,642,525.18 |
Total | 20,193,509.58 | 5,642,525.18 |
Other notes:
None71 Loss of impairment of credit
¡ÌApplicable ¡õN/A
Unit: RMB
Item | Amount in the current period | Amount in the previous period |
Bad debt loss of accounts receivable | -2,379,335.67 | -5,552,323.74 |
Total | -2,379,335.67 | -5,552,323.74 |
Other notes:
None
72 Loss of impairment of assets
¡ÌApplicable ¡õN/A
Unit: RMB
Item | Amount in the current period | Amount in the previous period |
I. Bad debt loss | ||
II. Inventory depreciation loss and loss of impairment of contract performance cost | 639,659.42 | |
Total | 639,659.42 |
Other notes:
None73 Income from disposal of assets
¡ÌApplicable ¡õN/A
Unit: RMB
Item | Amount in the current period | Amount in the previous period |
Gains from the disposal of fixed assets | 1,096,272.81 | 216,562.96 |
Losses from the disposal of fixed assets | -776.57 | -295,357.31 |
Total | 1,095,496.24 | -78,794.35 |
Other notes:
¡õApplicable ¡ÌN/A
74 Revenue from non-operating activities
¡ÌApplicable ¡õN/A
Unit: RMB
Item | Amount in the current period | Amount in the previous period | Amount recognized in profit or loss of nonrecurring items for the current period |
Income from penalties for market booth | 415,800.00 | 641,453.65 | 415,800.00 |
Others | 337,775.18 | 982,104.95 | 337,775.18 |
Total | 753,575.18 | 1,623,558.60 | 753,575.18 |
Government grants recognized in the profit or loss for the current period
¡õApplicable ¡ÌN/A
Other notes:
¡õApplicable ¡ÌN/A
75 Expenses from non-operating activities
¡ÌApplicable ¡õN/A
Unit: RMB
Item | Amount in the current period | Amount in the previous period | Amount recognized in profit or loss of nonrecurring items for the current period |
External donation | 2,731,413.91 | ||
Water conservancy construction fund | 249,451.94 | 244,400.45 | |
Others | 250,031.27 | 501,750.83 | 250,031.27 |
Total | 3,230,897.12 | 746,151.28 | 250,031.27 |
Other notes:
None76 Income tax expenses
(1) Overview of income tax expenses
¡ÌApplicable ¡õN/A
Unit: RMB
Item | Amount in the current period | Amount in the previous period |
Current income tax expenses | 260,211,241.65 | 195,568,804.97 |
Deferred income tax expenses | 12,775,944.42 | 11,488,892.93 |
Total | 272,987,186.07 | 207,057,697.90 |
(2) Adjustment process of accounting profits and income tax expenses
¡ÌApplicable ¡õN/A
Unit: RMB
Item | Amount in the current period |
Profits before tax | 993,028,856.10 |
Income tax expenses calculated at the statutory/applicable tax rate | 248,257,214.03 |
Effect of adjusting income tax of previous period | 3,255,463.70 |
Effect of non-taxable income | -3,946,902.14 |
Effect of non-deductible costs, expenses and losses | 484,985.20 |
Effect of using deductible losses of unrecognized deferred income tax assets in previous period | -13,179.23 |
Effect of deductible temporary differences or deductible losses of unrecognized deferred income tax assets in the current period | 28,255,087.33 |
Profits or losses attributable to joint ventures and associates | -3,305,482.82 |
Income tax expenses | 272,987,186.07 |
Other notes:
¡õApplicable ¡ÌN/A
77 Other comprehensive income
¡ÌApplicable ¡õN/A
Please refer to Notes 57 Other Comprehensive Income for details78 Items of cash flow statement
(1) Other cash receipts relating to operating activities
¡ÌApplicable ¡õN/A
Unit: RMB
Item | Amount in the current period | Amount in the previous period |
Bank deposit interest income received | 120,684,004.99 | 131,284,052.33 |
Government grants received | 10,859,472.56 | 1,943,947.48 |
Deposit and margin received | 10,660,056.61 | 31,517,576.33 |
Financial assistance recovered | 94,465,000.00 | |
Property ownership certificate fees collected temporarily | 666,782.84 | |
Total | 142,203,534.16 | 259,877,358.98 |
Notes on other cash receipts relating to operating activities:
None
(2) Other cash payments relating to operating activities
¡ÌApplicable ¡õN/A
Unit: RMB
Item | Amount in the current period | Amount in the previous period |
Margins paid | 125,625,663.45 | 118,950,778.69 |
Fees paid | 111,864,579.58 | 116,594,322.47 |
Bank reserves paid for Yiwugou | -3,157,824.29 | -88,930.44 |
Property ownership certificate fees paid | 1,335,791.74 | 4,482,403.45 |
Cash paid to purchase time deposits | 496,500,000.00 | |
Others | 18,942,646.95 | 32,481,260.63 |
Total | 751,110,857.43 | 272,419,834.80 |
Notes on other cash payments relating to operating activities:
None
(3) Other cash receipts relating to investing activities
¡ÌApplicable ¡õN/A
Unit: RMB
Item | Amount in the current period | Amount in the previous period |
Financial assistance recovered from joint ventures | 192,154,897.34 | |
Total | 192,154,897.34 |
Notes on other cash receipts relating to investing activities:
None
(4) Other cash payments relating to investing activities
¡õApplicable ¡ÌN/A
(5) Other cash receipts relating to financing activities
¡õApplicable ¡ÌN/A
(6) Other cash payments relating to financing activities
¡õApplicable ¡ÌN/A
79 Supplements to cash flow statement
(1) Supplements to cash flow statement
¡ÌApplicable ¡õN/A
Unit: RMB
Supplements | Amount in the current period | Amount in the previous period |
1£®Adjust net profits to cash flow from operating activities: | ||
Net profits | 720,041,670.03 | 669,083,018.20 |
Plus: provision for impairment of assets | 0.00 | -639,659.42 |
Loss of impairment of credit | 2,379,335.67 | 5,552,323.74 |
Depreciation of fixed assets, depletion of oil and gas assets and depreciation of bearer biological assets | 232,464,508.86 | 222,652,086.20 |
Amortization of intangible assets | 65,522,814.07 | 64,732,258.81 |
Amortization of long-term prepaid expenses | 33,684,186.50 | 37,537,272.51 |
Loss from disposal of fixed assets, intangible assets and other long-term assets (gains indicated by ¡°-¡±) | -1,095,407.99 | 286,652.03 |
Loss from fixed assets retirement (gains indicated by ¡°-¡±) | -88.25 | |
Loss from changes in fair value (gains indicated by ¡°-¡±) | -20,193,509.58 | -5,642,525.18 |
Financial expenses (gains indicated by ¡°-¡±) | 15,494,362.77 | 87,705,461.59 |
Investment loss (gains indicated by ¡°-¡±) | -311,305,538.59 | -56,649,194.91 |
Decrease in deferred income tax assets (increase indicated by ¡°£¡±) | -22,701,798.39 | 4,711,309.48 |
Increase in deferred income tax liabilities (decrease indicated by ¡°£¡±) | 1,084,796.43 | 38,602,823.80 |
Decrease in inventory (increase indicated by ¡°£¡±) | -239,207,823.16 | -835,275,638.62 |
Decrease in operating receivables (increase indicated by ¡°£¡±) | -879,633,090.02 | 210,361,275.66 |
Increase in operating payables (decrease indicated by | -299,601,118.51 | -519,136,095.48 |
¡°£¡±) | ||
Others | 284,599.70 | |
Net cash flow from operating activities | -703,066,700.16 | -75,834,031.89 |
2£®Significant investing and financing activities not involving cash receipt and payment: | ||
3£®Net changes in cash and cash equivalents: | ||
Closing balance of cash | 3,470,682,166.57 | 2,513,655,497.85 |
Less: opening balance of cash | 3,426,712,549.26 | 2,632,160,386.99 |
Net increase in cash and cash equivalents | 43,969,617.31 | -118,504,889.14 |
(2) Net cash paid for acquisition of subsidiaries in the current period
¡õApplicable ¡ÌN/A
(3) Net cash received from disposal of subsidiaries in the current period
¡õApplicable ¡ÌN/A
(4) Composition of cash and cash equivalents
¡ÌApplicable ¡õN/A
Unit: RMB
Item | Closing balance | Opening balance |
I. Cash | 3,470,682,166.57 | 3,426,712,549.26 |
In which: cash on hand | 369,439.29 | 523,925.97 |
Bank deposits available for payment at any time | 3,470,312,727.28 | 3,425,411,273.53 |
Other cash and cash equivalents available for payment at any time | 1,072,959.97 | 777,349.77 |
III. Closing balance of cash and cash equivalents | 3,470,682,166.57 | 3,426,712,549.26 |
Other notes:
¡õApplicable ¡ÌN/A
80 Notes to items in statement of changes in owners¡¯ equityNames of ¡°others¡± items whose closing balances in the previous year are adjustedand the amounts of adjustments:
¡õApplicable ¡ÌN/A
81 Assets with restricted title or right of use
¡ÌApplicable ¡õN/A
Unit: RMB
Item | Closing book value | Reasons for restriction |
Cash and cash equivalents | 209,493,305.80 | [Note 1] |
Long-term equity investment | 102,918,559.00 | [Note 2] |
Other non-current assets | 617,511,352.00 | [Note 2] |
Total | 929,923,216.80 | / |
Other notes:
Note 1: As of Jun 30, 2020, its title or use right of the bank deposits with book valueof RMB209,493,305.80 (RMB56,196,102.62 as of Dec 31, 2019) was restrictedsince the deposits were used as security for obtaining house mortgage loans andas funds for the supervision of advance sales of houses.Note 2: As of Jun 30, 2020, its long-term equity investment with book value of RMB102,918,559.00 (RMB102,918,559.00 as of Dec 31, 2019) and other non-currentassets with book value of RMB617,511,352.00 (RMB617,511,352.00 as of Dec 31,2019) were frozen by Shanghai Municipal Bureau of Public Security. For details,please see XIV-1.82 Foreign currency monetary items
(1) Foreign currency monetary items
¡ÌApplicable ¡õN/A
Item | Closing balance in foreign currency | Exchange rate | Closing balance in RMB |
Cash and cash equivalents | 19,522,661.86 | ||
In which: USD | 2,274,151.81 | 7.0795 | 16,099,857.74 |
EUR | 384,083.92 | 7.9400 | 3,049,626.32 |
AED | 116,287.84 | 1.9277 | 224,168.76 |
RWF | 19,723,566.00 | 0.0076 | 149,009.04 |
Other notes:
None
(2) Notes on overseas business entities, including, with respect to important
overseas business entities, disclosure of their overseas main businessplaces, functional currency and the basis of choosing the functionalcurrency, and the reasons for changes in functional currency (if any)
¡õApplicable ¡ÌN/A
83 Hedging
¡õApplicable ¡ÌN/A
84 Government grants1 Overview of government grants
¡ÌApplicable ¡õN/A
Unit: RMB
Category | Amount | Presentation | Amount recognized in profit or loss for the current period |
Interest subsidy for the international exhibition center construction | 577,403.52 | Asset-related | 577,403.52 |
Government subsidy for service industry cluster for 2011 | 133,333.32 | Asset-related | 133,333.32 |
Civilized entity award | 3,000.00 | Income-related | 3,000.00 |
Additional deduction of 10% input tax from VAT for production and life service taxpayers | 2,604,188.90 | Income-related | 2,604,188.90 |
Employment stabilization subsidy | 5,916,709.09 | Income-related | 5,916,709.09 |
Additional deduction of R&D input award for 2018 | 978,100.00 | Income-related | 978,100.00 |
Tourism development special award | 50,000.00 | Income-related | 50,000.00 |
Award for 2018 provincial service industry cluster demonstration zone | 550,000.00 | Income-related | 550,000.00 |
2020 online hardware exhibition subsidy | 600,000.00 | Income-related | 600,000.00 |
Grant for the construction and operation of Yiwu credit data center | 1,500,000.00 | Income-related | 1,500,000.00 |
2019 new and high-tech award | 600,000.00 | Income-related | 600,000.00 |
Electricity charge award for production resumption | 14,214.66 | Income-related | 14,214.66 |
Total | 13,526,949.49 | 13,526,949.49 |
2 Refund of government grants
¡õApplicable ¡ÌN/A
Other notes:
None85 Others
¡õApplicable ¡ÌN/A
VIII Changes in consolidation scope1 Mergers of enterprises not under common control
¡õApplicable ¡ÌN/A
2 Mergers of enterprises under common control
¡õApplicable ¡ÌN/A
3 Reverse acquisition
¡õApplicable ¡ÌN/A
4 Disposal of subsidiariesHas the Group lost control upon a single disposal of investment in a subsidiary?
¡ÌApplicable ¡õN/A
Unit: RMB
Name of subsidiary | Consideration of the equity disposal | Percentage of equity disposed of (%) | Form of disposal | Time of loss of control | Basis for determining the time of loss of control | Difference between the consideration of the disposal and the share in the subsidiary¡¯s net assets in the consolidated financial statement corresponding to the investment disposed of | Remaining shareholding ratio on the date of loss of control (%) | Book value of remaining shareholding on the date of loss of control | Fair value of remaining shareholding on the date of loss of control | Gains or losses from the remaining shareholding re-calculated by fair value | Determination of the fair value of remaining shareholding on the date of loss of control and main assumptions therefor | Amount of other comprehensive income relating to the original equity investment in the subsidiary that is recognized in investment gains or losses |
Yiwu Gongchen Shangbo Property Co., Ltd. | 20,000,000 | 100 | Investment | Feb 27, 2020 | The earliest date when the transfer of control is effectuated | 76,523,765.30 |
Other notes:
¡ÌApplicable ¡õN/A
The Group¡¯s subsidiary CCCP and Beijing Golden Resources Hongda Property Co., Ltd. signed a cooperative developmentagreement on Dec 12, 2019 in connection with the establishment of a joint venture named Yiwu Guoshen Shangbo Property Co.,Ltd. for cooperative development of Yiwu Choucheng Street Station 01, 02 and 03 Land Plots. CCCP made capital contribution ofRMB20,000,000.00 with its 100% equity in Yiwu Gongcheng Shangbo Property Co., Ltd. and thus acquired 49% equity in GuoshenShangbo, and completed the registration of change. The date of disposal was Feb 27, 2020. Therefore, as from Feb 27, 2020, theGroup no longer consolidated Yiwu Gongcheng Shangbo Property Co., Ltd.. The financial information relating to the Company¡¯sdisposal of Yiwu Gongcheng Shangbo Property Co., Ltd. is listed as follows:
Feb 27, 2020 Book value | Dec 31, 2019 Book value | |
Current assets | 3,174,401,258.69 | 1,543,078,265.77 |
Non-current assets | 3,765,234.40 | 3,705,485.81 |
Current liabilities | 3,234,690,258.39 | 1,537,900,209.01 |
Non-current liabilities | - | - |
-56,523,765.30 | 8,883,542.57 | |
Minority interest | - | - |
Income from the disposal | 76,523,765.30 | |
Consideration of disposal | 20,000,000.00 | |
Jan 1-Feb 27, 2020 | ||
Revenue | ||
Cost of sales | ||
Net loss | -176,452.49 |
The consolidated net assets attributable to the Group on the disposal date of Gongchen Shangbo were RMB -56,523,765.30. Thedifference between the amount and the net assets of RMB8,407,090.08 in the individual financial statement of Gongchen Shangbowas unrealized gross profits formed by internal transactions within the Group.Did the Group dispose of subsidiaries through multiple transactions and lose control in the current period?
¡õApplicable ¡ÌN/A
5 Changes in consolidation scope for other reasonsChanges in the consolidation scope for other reasons (e.g. new establishment of subsidiaries, liquidation of subsidiaries, etc.) andthe related information:
¡ÌApplicable ¡õN/A
During the current period, the Company established several subsidiaries, namely Yiwu China Commodities City Big Data Co., Ltd.,Yiwu Global Yida Logistics Co., Ltd., Yiwu Comprehensive Bonded Zone Operation and Management Co., Ltd. and Yiwu ChinaCommodities City Research Institute Co., Ltd.; and also acquired equity in Zhejiang Huajie Investment and Development Co., Ltd.and European Huajie Development Co., Ltd. subordinated thereto in the way of merger by capital contribution increase.6 Others
¡õApplicable ¡ÌN/A
IX Equity in Other Entity1 Equity in subsidiaries
(1) Composition of the enterprise group
¡ÌApplicable ¡õN/A
Name of subsidiary | Main place of business | Place of registration | Business | Shareholding ratio (%) | Method of acquisition | |
Direct | Indirect | |||||
Yiwu China Commodities City Property Development Co., Ltd. | Yiwu, Zhejiang | Yiwu, Zhejiang | Real estate | 100 | Establishment | |
Zhejiang Shangbo Property Co., Ltd. | Hangzhou, Zhejiang | Hangzhou, Zhejiang | Real estate | 100 | Establishment | |
Yiwu China Commodities City Logistics and Distribution Co., Ltd. | Yiwu, Zhejiang | Yiwu, Zhejiang | Service | 100 | Establishment | |
Yiwu Commodities City Gonglian Property Co., Ltd. | Yiwu, Zhejiang | Yiwu, Zhejiang | Real estate | 100 | Establishment | |
Yiwu China Commodities City Property Service Co., Ltd. | Yiwu, Zhejiang | Yiwu, Zhejiang | Service | 60 | Establishment | |
Yiwu China Commodities City Exhibition Co., Ltd. | Yiwu, Zhejiang | Yiwu, Zhejiang | Service | 100 | Establishment | |
China Yiwu International Commodities Fair Co., Ltd. | Yiwu, Zhejiang | Yiwu, Zhejiang | Service | 100 | Establishment | |
Yiwu China Commodities City Advertising Co., Ltd. | Yiwu, Zhejiang | Yiwu, Zhejiang | Advertising | 100 | Establishment | |
Yiwu China Commodities City Information Technology Co., Ltd. | Yiwu, Zhejiang | Yiwu, Zhejiang | IT | 100 | Establishment | |
Yiwu China Commodities City Currency Exchange Co., Ltd. | Yiwu, Zhejiang | Yiwu, Zhejiang | Service | 100 | Establishment | |
Jiangxi Shangbo Property Co., Ltd. | Nanchang, Jiangxi | Nanchang, Jiangxi | Real estate | 100 | Establishment | |
Hangzhou Shangbo Nanxing Property Co., Ltd. | Hangzhou, Zhejiang | Hangzhou, Zhejiang | Real estate | 100 | Establishment | |
Yiwu China Commodities City Payment Network Technology Co., Ltd. | Yiwu, Zhejiang | Yiwu, Zhejiang | IT | 100 | Establishment | |
Pujiang Lvgu Property Co., Ltd. | Pujiang, Zhejiang | Pujiang, Zhejiang | Real estate | 100 | Establishment |
Yiwu China Commodities City Credit Investigation Co., Ltd. | Yiwu, Zhejiang | Yiwu, Zhejiang | Service | 85 | Establishment | |
Haicheng Yiwu China Commodities City Investment and Development Co., Ltd. | Haicheng, Liaoning | Haicheng, Liaoning | Real estate | 95 | Establishment | |
Zhejiang Yiwugou E-commerce Co., Ltd. | Yiwu, Zhejiang | Yiwu, Zhejiang | E-commerce | 51 | Establishment | |
Jiangxi Commodities City Property Management Co., Ltd. | Nanchang, Jiangxi | Nanchang, Jiangxi | Service | 60 | Establishment | |
Yiwu Shangbo Property Co., Ltd. | Yiwu, Zhejiang | Yiwu, Zhejiang | Real estate | 100 | Establishment | |
Yiwu China Commodities City Import and Export Co., Ltd. | Yiwu, Zhejiang | Yiwu, Zhejiang | Wholesale | 100 | Establishment | |
Yiwu China Commodities City Supply Chain Management Co., Ltd. | Yiwu, Zhejiang | Yiwu, Zhejiang | Service | 100 | Establishment | |
Yiwu China Commodities City Tourism Development Co., Ltd. | Yiwu, Zhejiang | Yiwu, Zhejiang | Lease and business service | 100 | Establishment | |
Yiwu China Commodities City Financial Holdings Co., Ltd. | Yiwu, Zhejiang | Yiwu, Zhejiang | Service | 100 | Establishment | |
Yiwu China Commodities City (Germany) Co., Ltd. | Frankfurt, Germany | Frankfurt, Germany | Service | 100 | Establishment | |
Yiwu Suxi Shangbo Property Co., Ltd. | Yiwu, Zhejiang | Yiwu, Zhejiang | Real estate | 100 | Establishment | |
Yiwu International Trade Comprehensive Service Co., Ltd. | Yiwu, Zhejiang | Yiwu, Zhejiang | Wholesale | 60 | Establishment | |
Yiwu ICMall Supply Chain Management Co., Ltd. | Yiwu, Zhejiang | Yiwu, Zhejiang | Service | 100 | Establishment | |
Yiwu China Commodities City (Hong Kong) International Trade Co., Ltd. | Hong Kong, China | Hong Kong, China | Wholesale | 100 | Establishment | |
Ningxia Yiwu Commodities City Supply Chain Management Co., Ltd. | Shizuishan, Ningxia | Shizuishan, Ningxia | Service | 100 | Establishment | |
Yiwu China Commodities City Overseas Investment and Development Co., Ltd. | Yiwu, Zhejiang | Yiwu, Zhejiang | Wholesale | 100 | Establishment | |
Yiwu China Commodities City Commerce and Trade Service Training Center Co., Ltd. | Yiwu, Zhejiang | Yiwu, Zhejiang | Education | 100 | Establishment | |
Yiwu China | Yiwu, | Yiwu, | Lease and | 100 | Establishment |
Commodities City Assets Operation and Management Co., Ltd. | Zhejiang | Zhejiang | business service | |||
Zhejiang Yindu Hotel Management Co., Ltd. | Yiwu, Zhejiang | Yiwu, Zhejiang | Lease and business service | 100 | Establishment | |
Hong Kong Better Silk Road Co., Ltd. | Hong Kong, China | Hong Kong, China | Service | 100 | Establishment | |
BETTER SILK ROAD FZ | Dubai, UAE | Dubai, UAE | Service | 100 | Establishment | |
BETTER SILK ROAD RWANDA Ltd | Kigali, Rwanda | Kigali, Rwanda | Service | 100 | Establishment | |
Yiwu China Commodities City Internet Finance Information Service Co., Ltd. | Yiwu, Zhejiang | Yiwu, Zhejiang | Service | 100 | Establishment + acquisition | |
Zhejiang Huajie Investment and Development Co., Ltd. | Yiwu, Zhejiang | Yiwu, Zhejiang | Lease and business service | 96.4 | Establishment + acquisition | |
Yiwu Global Yida Logistics Co., Ltd. | Yiwu, Zhejiang | Yiwu, Zhejiang | Service | 60 | Establishment | |
Yiwu Comprehensive Bonded Zone Operation and Management Co., Ltd. | Yiwu, Zhejiang | Yiwu, Zhejiang | Service | 100 | Establishment | |
Yiwu China Commodities City Research Institute Co., Ltd. | Yiwu, Zhejiang | Yiwu, Zhejiang | Service | 100 | Establishment |
Explanation for the difference between the shareholding ratio and voting right ratioin a subsidiary:
NoneBasis for holding half or less voting rights in but still controlling an investee, andholding more than half of the voting rights in but not controlling an investee:
NoneBasis for controlling important structured entities included in the consolidationscope:
NoneBasis for determining whether a company is an agent or a principal:
NoneOther notes:
None
(2) Important non-wholly-owned subsidiaries
¡ÌApplicable ¡õN/A
Unit: RMB
Name of subsidiary | Shareholding ratio of minority shareholders (%) | Profits or losses attributable to minority shareholders in the current period | Dividends declared to be distributed to minority shareholders for the current period | Closing balance of minority interest |
Yiwugou | 49% | 3,601,759.11 | 41,910,399.18 | |
Haicheng Company | 5% | -3,755,483.12 | -32,772,043.77 |
Explanation for the difference between the shareholding ratio and voting right ratioof minority shareholders in a subsidiary:
¡õApplicable ¡ÌN/A
Other notes:
¡õApplicable ¡ÌN/A
(3) Major financial information of important non-wholly-owned subsidiaries
¡ÌApplicable ¡õN/A
Unit: RMB
Name of subsidiary | Closing balance | Opening balance | ||||||||
Current assets | Non-current assets | Total assets | Current liabilities | Total liabilities | Current assets | Non-current assets | Total assets | Current liabilities | Total liabilities | |
Yiwugou | 99,900,921.15 | 11,691,224.07 | 111,592,145.22 | 26,060,718.33 | 26,060,718.33 | 90,082,372.79 | 12,291,197.88 | 102,373,570.67 | 24,192,672.57 | 24,192,672.57 |
Haicheng Company | 1,244,729,042.32 | 950,736,997.07 | 2,195,466,039.39 | 2,850,906,914.77 | 2,850,906,914.77 | 1,101,186,085.56 | 1,140,086,229.48 | 2,241,272,315.04 | 2,821,603,527.95 | 2,821,603,527.95 |
Name of subsidiary | Amount in the current period | Amount in the previous period | ||||||
Revenue | Net profits | Total comprehensive income | Cash flow from operating activities | Revenue | Net profits | Total comprehensive income | Cash flow from operating activities | |
Yiwugou | 23,290,461.09 | 7,350,528.79 | 7,350,528.79 | 6,176,724.91 | 21,321,065.24 | 819,010.50 | 819,010.50 | 1,710,963.71 |
Haicheng Company | 1,704,851.23 | -75,109,662.47 | -75,109,662.47 | 4,562,423.14 | 569,526.45 | -80,473,526.46 | -80,473,526.46 | -82,779,776.07 |
Other notes:
None
(4) Major restrictions on the use of the enterprise group¡¯s assets andrepayment of the enterprise group¡¯s debts:
¡õApplicable ¡ÌN/A
(5) Financial support or other support provided to structured entitiesincluded in the consolidated financial statements:
¡õApplicable ¡ÌN/A
Other notes:
¡õApplicable ¡ÌN/A
2 Transactions in which the Group¡¯s share of owners¡¯ equity in a subsidiarychanges and the Group still controls the subsidiary
¡õApplicable ¡ÌN/A
3 Equity in joint ventures or associates
¡ÌApplicable ¡õN/A
(1) Important joint ventures or associates
¡ÌApplicable ¡õN/A
Unit: RMB
Name of joint venture or associate | Main place of business | Place of registration | Business | Shareholding ratio (%) | Accounting treatment method of investment in the joint venture or associate | |
Direct | Indirect | |||||
Yiwu Shanglv Investment and Development Co., Ltd. | Yiwu, Zhejiang | Yiwu, Zhejiang | Real estate | 49 | Equity method | |
Hunan Shang Yun Zhonghe Scientific Research and Trade Co., Ltd. | Changsha, Hunan | Changsha, Hunan | Retail | 35 | Equity method | |
Jiangsu Jin¡¯an Hefeng Network Technology Co., Ltd. | Nanjing, Jiangsu | Nanjing, Jiangsu | Retail | 40 | Equity method | |
Henan Yiwugou Technology Development Co., Ltd. | Puyang, Henan | Puyang, Henan | Retail | 40 | Equity method | |
Yiwu Huishang Redbud Capital Management Co., Ltd. | Yiwu, Zhejiang | Yiwu, Zhejiang | Finance | 20 | Equity method | |
Yiwu China Commodities City Creative Design and Development Services Co., Ltd. | Yiwu, Zhejiang | Yiwu, Zhejiang | Lease and business service | 49 | Equity method | |
Yiwu Rongshang Property Co., Ltd. | Yiwu, Zhejiang | Yiwu, Zhejiang | Real estate | 49 | Equity method | |
Zhejiang Commodities City China Olympic Sports Industry Co., Ltd. | Yiwu, Zhejiang | Yiwu, Zhejiang | Culture, sports and entertainment | 45 | Equity method | |
Yiwu Huishang | Yiwu, | Yiwu, | Finance | 23 | Equity method |
Micro-finance Co., Ltd. | Zhejiang | Zhejiang | ||||
Hangzhou Binjiang Shangbo Property Development Co., Ltd. | Hangzhou, Zhejiang | Hangzhou, Zhejiang | Real estate | 49 | Equity method | |
Yiwu Huishang Redbud Equity Investment Co., Ltd. | Yiwu, Zhejiang | Yiwu, Zhejiang | Finance | 10.41 | Equity method | |
Zhejiang Zhiku Co., Ltd. | Hangzhou, Zhejiang | Hangzhou, Zhejiang | Service | 45 | Equity method | |
Zhejiang Chouzhou Financial Lease Co., Ltd. | Yiwu, Zhejiang | Yiwu, Zhejiang | Finance | 26 | Equity method | |
Yiwu Huishang Redbud Phase II Investment Partnership (limited partnership) | Yiwu, Zhejiang | Yiwu, Zhejiang | Lease and business service | 9.43 | Equity method | |
Yiwu China Commodities City Investment Management Co., Ltd. | Yiwu, Zhejiang | Yiwu, Zhejiang | Lease and business service | 49 | Equity method | |
Yiwu China Commodities City Fuxing Investment Center (limited partnership) | Yiwu, Zhejiang | Yiwu, Zhejiang | Lease and business service | 49.9 | Equity method | |
Zhejiang Yemai Data Technology Co., Ltd. | Hangzhou, Zhejiang | Hangzhou, Zhejiang | Scientific research and technical service | 40 | Equity method | |
Yiwu Chuangcheng Property Co., Ltd. | Yiwu, Zhejiang | Yiwu, Zhejiang | Real estate | 24 | Equity method | |
Yiwu Meipinshu Supply Chain Management Co., Ltd. | Yiwu, Zhejiang | Yiwu, Zhejiang | Service | 20.57 | Equity method | |
Zhejiang YXE Supply Chain Management Co., Ltd. | Yiwu, Zhejiang | Yiwu, Zhejiang | Service | 25 | Equity method | |
Yiwu Hongyi Equity Investment Fund Partnership | Yiwu, Zhejiang | Yiwu, Zhejiang | Finance | 49.98 | Equity method | |
Hangzhou MicroAnts Co., Ltd. | Hangzhou, Zhejiang | Hangzhou, Zhejiang | Service | 49.04 | Equity method | |
Yiwu Guoshen Shangbo Property Co., Ltd. | Yiwu, Zhejiang | Yiwu, Zhejiang | Real estate | 49 | Equity method | |
Cheng Jian Bao (Beijing) Consulting Services Co., Ltd. | Beijing | Beijing | Business management consulting | 15 | Equity method |
Explanation for the difference between the shareholding ratio and voting right ratioin a joint venture or associate:
NoneBases for holding less than 20% of the voting rights but having significant influence,or holding 20% or more of the voting rights but not having significant influence:
1.The Company holds 10.41% (10.41% in 2019) equity in Yiwu Huishang RedbudEquity Investment Co., Ltd. (¡°Redbud Investment¡±), but takes the latter as itsassociate. According to Redbud Investment¡¯s articles of association, it is engaged
in investing and its important financial and operating decision-making activities areto pick and manage investment projects, which have been fully entrusted to theCompany¡¯s joint venture Yiwu Huishang Redbud Capital Management Co., Ltd.(¡°Redbud Capital¡±). Redbud Capital picks and manages investment projects via itsinvestment decision-making committee. Except for special investment matters,which are subject to the resolution of Redbud Investment¡¯s board of directors, otherimportant financial and operating decision-making activities are conducted byRedbud Capital on the behalf of Redbud Investment. Therefore, the Company canexert significant influence on Redbud Investment in which it holds 10.41% equity.
2.The Company holds 9.43% (16:39% in 2019) equity in Yiwu Huishang RedbudPhase II Investment Partnership (limited partnership) (¡°Redbud Phase II¡±), but takesthe latter as its associate. According to Redbud Phase II¡¯s articles of association, itis engaged in investing and its important financial and operating decision-makingactivities are to pick and manage investment projects, which have been fullyentrusted to the Company¡¯s joint venture Redbud Capital. Redbud Capital picks andmanages investment projects via its investment decision-making committee. Exceptfor special investment matters, which are subject to the resolution of Redbud PhaseII¡¯s board of directors, other important financial and operating decision-makingactivities are conducted by Redbud Capital on the behalf of Redbud Phase II.Therefore, the Company can exert significant influence on Redbud Phase II inwhich it holds 9.43% equity.
(2) Main financial information of important joint ventures
¡ÌApplicable ¡õN/A
Unit: RMB
Closing balance/amount in the current period | Opening balance/amount in the previous period | |
Yiwu Shanglv | Yiwu Shanglv | |
Current assets | 149,532,357.01 | 206,568,731.62 |
In which: cash and cash equivalents | 13,773,570.93 | 11,332,301.02 |
Non-current assets | 1,406,054,867.68 | 1,679,507,095.46 |
Total assets | 1,555,587,224.69 | 1,886,075,827.08 |
Current liabilities | 391,194,388.71 | 663,841,939.73 |
Non-current liabilities | 417,215,494.21 | 477,412,606.21 |
Total liabilities | 808,409,882.92 | 1,141,254,545.94 |
Shareholders¡¯ equity attributable to parent company | 747,177,341.77 | 744,821,281.14 |
Share of net assets calculated based shareholding ratio | 366,116,897.47 | 364,962,427.76 |
Adjustments | -16,822,720.70 | |
--unrealized profits of internal transactions | -16,822,720.70 | |
Book value of equity investment in joint ventures | 366,116,897.47 | 348,139,707.06 |
Revenue | 86,301,394.39 | 90,585,096.97 |
Financial expenses | 15,128,184.57 | 17,750,126.77 |
Net profits | 2,397,343.82 | 1,777,528.99 |
Total comprehensive income | 2,397,343.82 | 1,777,528.99 |
Other notes:
None
(3) Main financial information of important associates
¡ÌApplicable ¡õN/A
Unit: RMB
Closing balance/amount in the current period | Opening balance/amount in the previous period | |||||||
Binjiang Shangbo | Huishang Micro-Finance | Chouzhou Financial Lease | Hongyi Fund | Binjiang Shangbo | Huishang Micro-Finance | Chouzhou Financial Lease | Hongyi Fund | |
Current assets | 472,639,007.30 | 318,695,061.71 | 361,952,288.81 | 5,758,553.02 | 550,436,271.65 | 352,311,663.51 | 570,925,159.80 | 465,583,259.40 |
Non-current assets | 99,504.05 | 12,414,015.66 | 9,642,532,745.36 | 1,359,418,730.13 | 1,469,646.15 | 12,899,627.58 | 8,564,000,577.98 | 715,918,730.13 |
Total assets | 472,738,511.35 | 331,109,077.37 | 10,004,485,034.17 | 1,365,177,283.15 | 551,905,917.80 | 365,211,291.09 | 9,134,925,737.78 | 1,181,501,989.53 |
Current liabilities | 155,409,913.66 | 2,180,159.36 | 7,757,262,817.73 | 57,771.39 | 266,275,422.72 | 2,716,662.60 | 6,875,287,112.49 | 160,734.38 |
Non-current liabilities | 893,027,217.31 | 984,205,719.99 | ||||||
Total liabilities | 155,409,913.66 | 2,180,159.36 | 8,650,290,035.04 | 57,771.39 | 266,275,422.72 | 2,716,662.60 | 7,859,492,832.48 | 160,734.38 |
Minority interest | ||||||||
Shareholders¡¯ equity attributable to parent company | 317,328,597.69 | 328,928,918.01 | 1,354,194,999.13 | 1,365,119,511.76 | 285,630,495.08 | 362,494,628.49 | 1,275,432,905.30 | 1,181,341,255.15 |
Share of net assets calculated based on shareholding ratio | 155,491,012.87 | 75,653,651.14 | 352,090,699.77 | 682,286,731.98 | 139,958,942.59 | 83,373,764.55 | 331,612,555.38 | 590,434,359.32 |
Adjustments | 0.00 | 0.00 | 0.00 | 0.00 | -2,830,554.54 | -71,427.77 | -947,091.07 | -58,917.06 |
--Goodwill | ||||||||
--unrealized profits of internal transactions | -2,830,554.54 | -71,427.77 | -947,091.07 | -58,917.06 | ||||
--Others | ||||||||
Book value of equity investment in joint ventures | 155,491,012.87 | 75,653,651.14 | 352,090,699.77 | 682,286,731.98 | 137,128,388.05 | 83,302,336.78 | 330,665,464.31 | 590,375,442.26 |
Fair value of equity investment in associates with public offering price | ||||||||
Revenue | 87,481,651.37 | 7,266,005.51 | 203,900,029.53 | 6,095,701.31 | 115,229,870.70 | 30,680,326.05 | 146,353,532.63 | |
Net profits | 31,698,102.61 | -33,723,549.36 | 78,762,093.83 | -16,369,907.27 | 18,343,264.48 | -2,007,932.21 | 133,430,276.76 | 4,757.45 |
Net profits of discontinued operations | ||||||||
Other comprehensive income | ||||||||
Total comprehensive income | 31,698,102.61 | -33,723,549.36 | 78,762,093.83 | -16,369,907.27 | 18,343,264.48 | -2,007,932.21 | 133,430,276.76 | 4,757.45 |
Dividend on | 98,000,000.00 |
Other notes:
None
(4) Summary financial information of unimportant joint ventures andassociates
¡ÌApplicable ¡õN/A
Unit: RMB
associatesreceived in thecurrent year
Closing balance/amount in the current period | Opening balance/amount in the previous period | |
Joint ventures: | ||
Total book value of investments | 99,188,141.60 | 49,136,717.42 |
Total amounts of the following items calculated based on shareholding ratio | ||
--Net profits | -58,781,609.61 | -799,211.91 |
--Other comprehensive income | 0.00 | 424,150.54 |
--Total comprehensive income | -58,781,609.61 | -375,061.36 |
Associates: | ||
Total book value of investments | 209,938,868.75 | 232,671,998.99 |
Total amounts of the following items calculated based on shareholding ratio | ||
--Net profits | 2,988,663.47 | 16,594,030.08 |
--Total comprehensive income | 2,988,663.47 | 16,594,030.08 |
Other notes:
None
(5) Restrictions on the ability of joint ventures or associates to transfermoney to the Company
¡õApplicable ¡ÌN/A
(6) Excess losses of joint ventures or associates
¡õApplicable ¡ÌN/A
(7) Unrecognized commitments relating to investment in joint ventures
¡õApplicable ¡ÌN/A
(8) Contingent liabilities relating to investment in joint ventures orassociates
¡õApplicable ¡ÌN/A
4 Important joint operations
¡õApplicable ¡ÌN/A
5 Equity in structured entities not included in the consolidated financialstatementsNotes on structured entities not included in the consolidated financial statements:
¡õApplicable ¡ÌN/A
6 Others
¡õApplicable ¡ÌN/A
X Risks associated with financial instruments
¡ÌApplicable ¡õN/A
Risks associated with financial instrumentsThe risks associated with financial instruments faced by the Group in regularactivities mainly include credit risk, liquidity risk and market risk. The main financialinstruments of the Group include cash, borrowings from banks, bonds payable andcommercial papers payable. Those instruments are used mainly to finance theoperation of the Group. The Group has lots of other financial assets and liabilitiesdirectly arising from operation, such as accounts receivable, other receivables,accounts payable and other payables. The risks associated with those financialinstruments and the risk management strategy taken by the Group to reduce thoserisks are stated as follows.Credit riskThe Group only deals with the recognized third parties with good reputation.According to its policy, the Group needs to carry out credit review on all clients whorequire to deal with the Group on credit. In addition, the Group keeps monitoring thebalance of accounts receivable to ensure it will not face any material bad debt risk.For the transactions settled other than in the functional currency of related businessentities, unless with specific approval of the Group¡¯s credit control department, theGroup will not provide the conditions for dealing on credit. The Group also facescredit risk due to the provision of financial guarantees. Please refer to the disclosurein Notes XIV-2 for details.As the counterparties to the transactions of cash are banks with good reputationand high credit ratings, the credit risk of those financial instruments is relatively low.
The Group¡¯s other financial assets include cash, debt investment, other receivablesand certain derivatives, the credit risk of which is sourced from default by thecounterparties, and the maximum risk exposure is equal to the book value of thoseinstruments.As the clients from which the Group¡¯s accounts receivable are receivable arescattered in different sectors and industries, there¡¯s no material credit riskconcentrated within the Group. The Group does not have any collaterals or othercredit enhancements for the balance of its accounts receivable.Criteria for significant increase in credit riskThe group evaluates, on each balance sheet date, whether the credit risk of relatedfinancial instruments has increased significantly since the initial recognition thereof.In determining whether the credit risk of a financial instrument has increasedsignificantly since the initial recognition thereof, the Group takes into account thereasonable and well-grounded information that is accessible without unnecessaryextra costs or efforts, including the qualitative and quantitative analyses based onthe Group¡¯s historical data, external credit risk rating and forward-lookinginformation. The Group compares the risk of financial instruments defaulting on thebalance sheet date and the risk of them defaulting on the date of initial recognitionbased on an individual financial instrument or a group of financial instruments withsimilar credit risk characteristics to determine the changes in anticipated default riskof the financial instrument(s) within the duration thereof.If a financial instrument meets one or more of the following quantitative orqualitative criteria, the Group will determine that its credit risk has increasedsignificantly:
(1) The main quantitative criterion is that its probability of default within theremaining duration on the reporting date rises by a certain margin from thatat its initial recognition;
(2) The main qualitative criterion is that the debtor has materially adversechanges in business or financial conditions or is on the warning list of clients.Definition of the assets whose credit has been impairedIn order to determine whether the credit of an asset has been impaired, the Groupadopts the criteria consistent with its internal credit risk management goal forrelated financial instruments and also takes into account the quantitative andqualitative indicators. The Group mainly considers the following factors whileassessing whether the credit of a debtor has been impaired:
(1) the issuer or debtor suffers material financial difficulty;
(2) the debtor is in breach of contract, such as breach in interest payment,
principal repayment or overdue payment;
(3) the creditor makes a compromise to the debtor which it would in no case
make, based on the economic or contract considerations in connection withthe debtor¡¯s financial difficulty;
(4) the debtor is very likely to go bankrupt or enter into other financial
reorganizations;
(5) the financial difficulty of the issuer or debtor results in the disappearance of
the active market of the financial asset;
(6) a financial asset is purchased or derived at a large discount and the discountpoints to the fact of credit loss having been incurred.The credit impairment of financial assets may be caused by multiple eventstogether and may not necessarily be caused by an individually identifiable event.Measurement parameters of expected credit lossDepending on whether credit risk has increased significantly and whether credit hasbeen impaired, the Group makes impairment provisions for the expected creditlosses of different assets within 12 months or the entire durations. The keyparameters of expected credit loss include the probability of default, loss givendefault and default risk exposure. The Group has built the models of probability ofdefault, loss given default and default risk exposure based on the quantitativeanalysis of historical data (e.g. rating of counterparties, form of guarantee andcategory of collaterals or pledges, form of repayment) and forward-lookinginformation.The related definitions are as follows:
(1) Probability of default refers to the probability of a debtor failing to fulfill itsrepayment obligation within the coming 12 months or the entire remaining duration.The Group adjusts the probability of default based on the results of the expectedcredit loss model and with forward-looking information included to reflect thedebtors¡¯ probability of default under the current macro economic environment.
(2) Loss given default refers to the Group¡¯s expectation of loss to be incurred due tothe exposure of default risk. The loss given default varies with the type ofcounterparty, the form and priority of claims and collaterals. The loss given default isthe percentage of risk exposure loss at the time of default and is calculated basedon the coming 12 months or the entire remaining duration.
(3) Default risk exposure refers to the amount that shall be paid to the Group at the
time of default within the coming 12 months or the remaining duration.The determination of significant increase in credit risk and the calculation ofexpected credit loss both involve forward-looking information. The Group identifiesthe key economic indicators that affect the credit risk and expected credit loss ofvarious types of businesses through the analysis of historical data.The influence of those economic indicators on the probability of default and lossgiven default varies with the type of business. The Group predicts those indicatorson a quarterly basis based on experts¡¯ judgments and determines their influence onthe probability of default and loss given default through regression analysis.The Group makes impairment provisions for the expected credit loss of accountsreceivable and other receivables within the coming 12 months with the simplifiedmethod and general method respectively. Please refer to Notes VII-5 and 8 fordetails.As of Jun 30, 2020, the Group did not have any accounts receivable or otherreceivables that had been overdue but not been impaired.Liquidity riskThe Group manages the cash shortage risk with the cyclical liquidity plan tool. Thetool considers not only the maturity dates of financial instruments but also theestimated cash flows arising from the operation of the Group.The Group aims to make use of such financing instruments as bank loans,commercial papers, MTNs, corporate bonds and long-term borrowings to maintainthe balance between the continuity and flexibility of financing.Market risksInterest rate riskThe Group manages interest costs by maintaining an appropriate combination offixed-rate debts and variable-rate debts. As of Jun 30, 2020, the Company hadlong-term borrowings of RMB370mn among its long-term liabilities, the interestrates of which were adjusted on an annual basis based on the benchmark loan rateon the anniversary dates. Therefore, the management believe that its risk of marketinterest rate change is relatively low.Foreign exchange rate riskThe Group faces transactional foreign exchange rate risk, which is caused by somebusiness entities¡¯ sale or purchase in the currencies other than their functionalcurrencies. Considering the Group¡¯s short time of inventory and timely collection of
accounts receivable, the management believe that its foreign exchange rate risk isrelatively low.Price risk of equity instrument investmentsThe price risk of equity instrument investments refers to the risk of the fair value ofequity securities decreasing due to the changes in stock indices and value ofindividual securities. As of Jun 30, 2020, the Group was exposed to the price risk ofequity instrument investments arising from the individual equity instrumentinvestments classified as the financial instruments that are measured by fair valueand of which the changes in fair value are recognized in other comprehensiveincome (Notes VII-18). The listed equity instrument investments held by the Groupare listed on the SZSE, and their values are determined at a discount on thebalance sheet dates based on the price of similar tradable shares of the identicallisted company and the status of liquidity.XI Disclosure of fair value1 Closing fair value of the assets and liabilities measured by fair value
¡ÌApplicable ¡õN/A
Unit: RMB
Item | Closing fair value | |||
Level 1 fair value | Level 2 fair value | Level 3 fair value | Total | |
I. Continuous fair value measurement | ||||
(1) Held-for-trading financial assets | 16,049.67 | 32,076,492.78 | 32,092,542.45 | |
(3) Other equity instruments investment | 633,408,055.13 | 633,408,055.13 | ||
(4) Other non-current financial assets | 130,039,390.85 | 1,427,379,237.75 | 1,557,418,628.60 | |
Total assets continuously measured by fair value | 633,424,104.80 | 130,039,390.85 | 1,459,455,730.53 | 2,222,919,226.18 |
2 Basis for determining the market prices of the items continuously and
non-continuously measured by Level 1 fair value
¡ÌApplicable ¡õN/A
The Group¡¯s continuous Level 1 fair value measurement covers listed equityinstruments, the fair value of which was determined based on the market offeringprices on Jun 30, 2020.
3 Valuation techniques and qualitative and quantitative information ofimportant parameters for the items continuously and non-continuouslymeasured by Level 2 fair value
¡ÌApplicable ¡õN/A
The Group¡¯s continuous Level 2 fair value measurement mainly covers unlistedequity investments. The fair value of unlisted equity investments was determinedbased on the financial statements of those unlisted companies and the comparableinformation of listed companies in the same sectors as of Jun 30, 2020 by thecomparable multiples approach.4 Valuation techniques and qualitative and quantitative information ofimportant parameters for the items continuously and non-continuouslymeasured by Level 3 fair value
¡ÌApplicable ¡õN/A
The Group¡¯s continuous Level 3 fair value measurement covers convertible bondinvestments, unlisted equity investment to which the comparable multiplesapproach cannot apply and debt investments. The fair value of convertible bondinvestments consists of the value of straight bonds and the value of options. To bespecific, the fair value of straight bonds was determined with the discounted futurecash flow method, that of options was determined with the Black-Scholes optionpricing model. The fair value of unlisted equity investment to which the comparablemultiples approach cannot apply and debt investments was determined by theasset-based approach as of Jun 30, 2020.5 Adjustment information between the opening book value and closingbook value, and the sensitivity analysis of unobservable parameters foritems continuously measured by Level 3 fair value
¡õApplicable ¡ÌN/A
6 For items continuously measured by fair value, if there is conversionbetween different levels in the current period, the reasons for theconversion and the policy for determining the time of conversion
¡õApplicable ¡ÌN/A
7 Changes in valuation techniques in the current period and reasons forchanges
¡õApplicable ¡ÌN/A
8 Fair value of financial assets and financial liabilities not measured by fairvalue
¡ÌApplicable ¡õN/A
Assets and liabilities disclosed by fair valueJun 30, 2020
Input values for fair value measurementOffering price in active market Important observable Important unobservable input Input valueLevel 1 Level 2 Level 3 total
Bonds payable - 4,615,755,065.77 - 4,615,755,065.77
9 Others
¡ÌApplicable ¡õN/A
The table below shows the differences between book value and fair value of theGroup¡¯s financial instruments other than the financial instruments with very smalldifferences between book value and fair value and the equity instruments that didnot have an offering price in the active market and whose fair value could not bemeasured reliably:
Book value | Fair value | |||
Jun 2020 | 2019 | Jun 2020 | 2019 | |
Financial liabilities Bonds payable | 4,625,150,185.91 | 4,564,291,387.81 | 4,615,755,065.77 | 4,553,867,057.85 |
The management have evaluated cash and cash equivalents, accounts receivable,notes payable and accounts payable. Their fair values were equivalent to their bookvalues as their remaining terms were not long. The fair values of long-termreceivables, other non-current assets, long and short-term borrowings andlong-term accounts payable were determined with the discounted future cash flowmethod, with the market yields of other financial instruments with similar contractterms, credit risks and remaining terms as the discount rates. Their fair values wereequivalent to their book values.On each balance date, the financial department and investment managementdepartment analyze the changes in the value of financial instruments, determine themain inputs of valuation and submit the valuation to the Group¡¯s financial directorfor review and approval. For the preparation of semi-annual and annual financialstatements, the valuation process and results are discussed with the auditcommittee twice a year.
The fair values of financial assets and financial liabilities refer to the amountsdetermined based on the voluntary exchange of assets or repayment of debts bythe parties to arm¡¯s length transactions who are familiar with the transactions ratherthan forced sale or liquidation. The following methods and assumptions are used toestimate fair value.The fair value of bonds payable is determined with the discounted future cash flowmethod, with the market yields of other financial instruments with similar contractterms, credit risks and remaining terms as the discount rates, and falls in Level 2.The significant unobservable inputs for measurement of the fair value of bondspayable are the prepayment rate and loss given default.The fair value of listed equity instruments investment is determined based onmarket offering prices.There was no significant conversion of the Group¡¯s and the Company¡¯s financialinstruments measured by fair value between different levels in the current periodand in the previous year.XII Related parties and related-party transactions1 Parent company of the Company
¡ÌApplicable ¡õN/A
Unit: RMB10,000
Name of parent company | Place of registration | Business | Registered capital | Shareholding ratio in the Company (%) | Voting right ratio in the Company (%) |
Yiwu China Commodities City Holdings Limited | Yiwu, Zhejiang | Holding company services, consulting service and trading | 100,000.00 | 55.82 | 55.82 |
Market Development Group | Yiwu, Zhejiang | Asset management | 7,833.77 | 55.82 | 55.82 |
Notes on the parent company of the CompanyYiwu China Commodities City Holdings LimitedThe ultimate controller of the Company is the State-owned Assets Supervision andAdministration Office of the Yiwu Municipal Government.Other notes:
None
2 Subsidiaries of the CompanyFor details of the Company¡¯s subsidiaries, please refer to the Notes
¡õApplicable ¡ÌN/A
3 Joint ventures and associates of the CompanyFor details of the Company¡¯s important joint ventures or associates, please refer tothe Notes
¡õApplicable ¡ÌN/A
Other joint ventures or associates that have related-party transactions with theCompany in the current period or had related-party transactions with the Companyin the previous periods which resulted in an outstanding amount are as follows
¡ÌApplicable ¡õN/A
Name of joint venture or associate | Relationship with the Company |
Yiwu Shanglv | Joint venture |
Binjiang Shangbo | Associate |
Huishang Micro-finance | Associate |
Redbud Capital | Joint venture |
Other notes:
¡õApplicable ¡ÌN/A
4 Other related parties
¡ÌApplicable ¡õN/A
Name of other related party | Relationship with the Company |
Zhejiang Xingfuhu Sports Development Co., Ltd. | Subsidiary of the Company¡¯s largest shareholder |
Yiwu Security Service Co., Ltd. | Subsidiary of the Company¡¯s largest shareholder |
Yiwu State-owned Capital Operation Co., Ltd. | Controlling shareholder of the Company¡¯s largest shareholder |
Yiwu Huangyuan Shangbo Property Co., Ltd. | Subsidiary of the Company¡¯s joint venture |
Yiwu Chengzhen Property Co., Ltd. | Subsidiary of the Company¡¯s joint venture |
Other notesNone
5 Related-party transactions
(1) Related-party transactions of purchasing and selling goods and rendering
and accepting servicePurchasing goods/accepting service
¡ÌApplicable ¡õN/A
Unit: RMB
Related party | Content of related-party transaction | Amount in the current period | Amount in the previous period |
Yiwu Security Service Co., Ltd. | Local and foreign currencies truck escort security service fees | 42,500.00 | 53,437.50 |
Selling goods/rendering service
¡ÌApplicable ¡õN/A
Unit: RMB
Related party | Content of related-party transaction | Amount in the current period | Amount in the previous period |
Yourworld International Conference Center | Laundering fees | 506,168.10 | 788,810.80 |
Notes on related-party transactions of purchasing and selling goods and renderingand accepting service
¡õApplicable ¡ÌN/A
(2) Entrustment/contracting from and to related parties
Entrustment/contracting to the Company:
¡ÌApplicable ¡õN/A
Unit: RMB
Name of entruster/employer | Name of entrustee/contractor | Type of entrusted/contracted assets | Starting date of entrustment /contracting | Ending date of entrustment /contracting | Pricing of entrustment income/contracting income | Entrustment income/contracting income recognized in the current period |
Market Development Group | The Company | Entrustment of other assets | Negotiated price | 452,962.93 |
Notes on entrustment/contracting from related parties
¡ÌApplicable ¡õN/A
According to the Yourworld International Conference Center Management Contractentered into by and between the Company and MDG, the Company was entrustedto manage the Yourworld International Conference Center located in No.100Xingfuhu Road, Yiwu. In the current period, the Company collected hotelmanagement fees of RMB452,962.93 (RMB252,670.35 in Jan-Jun 2018).Entrustment/contracting from the Company:
¡õApplicable ¡ÌN/A
Notes on related-party management/contracting
¡õApplicable ¡ÌN/A
(3) Related-party lease
The Company as the lessor:
¡ÌApplicable ¡õN/A
Unit: RMB
Name of lessee | Type of leased asset | Rental income recognized in the current period | Rental income recognized in the previous period |
Huishang Micro-Finance | Office space | 217,159.71 | 217,159.71 |
Redbud Capital | Office space | 135,779.71 | 272,279.94 |
Zhejiang Yemai | Office space | 56,131.90 |
The Company as the lessee
¡õApplicable ¡ÌN/A
Notes on related-party lease
¡ÌApplicable ¡õN/A
1. As of Jun 30, the Group leased office space to Huishang Micro-Finance at themarket price, and the rental and property management fees recognized in thecurrent reporting period were RMB217,159.71 (RMB217,159.71 in Jan-Jun 2019).
2. As of Jun 30, the Group leased office space to Redbud Capital at the marketprice, and the rental and property management fees recognized in the currentreporting period were RMB135,779.71 (RMB272,279.94 in Jan-Jun 2019).
3. As of Jun 30, the Group leased office space to Zhejiang Yemai Data TechnologyCo., Ltd. at the market price, and the rental and property management feesrecognized in the current reporting period were RMB56,131.90 (RMB0 in Jan-Jun2019).
(4) Related-party guarantees
The Company as the guarantor
¡ÌApplicable ¡õN/A
Unit: RMB
Guaranteed party | Amount of guarantee | Starting date of guarantee | Due date of guarantee | Whether the guarantee has been fulfilled |
Yiwu Shanglv | 260,828,179.21 | Jul 1, 2015 | Dec 15, 2026 | No |
Huangyuan Shangbo | 907,021,078.25 | Aug 23, 2019 | Aug 22, 2024 | No |
Chengzhen Property | 201,454,362.00 | Sep 22, 2019 | Sep 21, 2024 | No |
The Company as the guaranteed party
¡ÌApplicable ¡õN/A
Unit: RMB
Guarantor | Amount of guarantee | Starting date of guarantee | Due date of guarantee | Whether the guarantee has been fulfilled |
Market Development Group | 310,000,000.00 | 2013/4/22 | Oct 22, 2021 | No |
Notes on related-party guarantees
¡ÌApplicable ¡õN/A
1. MDG provided guarantee for the Group¡¯s loan from the Export-Import Bank ofChina Zhejiang Branch, with a total amount of guarantee being RMB420mn(RMB420mn as of Dec 31, 2019). As of Jun 30, 2020, the Group borrowedRMB310mn (RMB420mn as of Dec 31, 2019) under this guarantee, for which MDGassumed joint and several liability in full.
2. The Group provided guarantee for the borrowings of Yiwu Shanglv. As of Jun 30,2020, Yiwu Shanglv actually borrowed RMB532.3024mn (RMB587.4126mn as ofDec 31, 2019) from banks. According to the guarantee contract, the Groupassumed liability for RMB260.8282mn (RMB287.8322mn as of Dec 31, 2019). YiwuState-owned Capital Operation Co., Ltd. provided a counter guarantee for thisguarantee.
3. The Group provided guarantee for the borrowings of Huangyuan Shangbo. As ofJun 30, 2020, Huangyuan Shangbo actually borrowed RMB1851.0634mn(RMB1682.1217mn as of Dec 31, 2019) from banks. According to the guarantee
contract, the Group assumed liability for RMB907.0211mn (RMB824.2396mn as ofDec 31, 2019).
4. The Group provided guarantee for the borrowings of Chengzhen Property. As ofJun 30, 2020, Chengzhen Property actually borrowed RMB839.3932mn(RMB839.7028mn as of Dec 31, 2019) from banks. According to the guaranteecontract, the Group assumed liability for RMB201.4544mn (RMB201.5287mn as ofDec 31, 2019).
(5) Related-party lending and borrowing
¡ÌApplicable ¡õN/A
Unit: RMB
Related party | Amount | Starting date | Maturity date | Remark |
Lending to | ||||
Huangyuan Shangbo | 228,464,117.96 | Feb 5, 2019 | ||
Chengzhen Property | 225,228,282.35 | Jun 30, 2019 | ||
Gongchen Shangbo | 1,594,759,831.00 | Mar 30, 2020 |
(6) Related-party transfer of assets and restructuring of debts
¡õApplicable ¡ÌN/A
(7) Remunerations of key officers
¡ÌApplicable ¡õN/A
Unit: RMB10,000
Item | Amount in the current period | Amount in the previous period |
Remunerations of key officers | 1,213.93 | 811.31 |
(8) Other related-party transactions
¡õApplicable ¡ÌN/A
6 Accounts receivable from and payable to related parties
(1) Receivables
¡ÌApplicable ¡õN/A
Unit: RMB
Item | Related party | Closing balance | Opening balance | ||
Book balance | Bad debt provision | Book balance | Bad debt provision | ||
Interest receivable | Gongchen Shangbo | 97,547,403.23 | |||
Interest receivable | Chengzhen Property | 191,064,382.11 | |||
Interest receivable | Yiwu Shanglv | 677,670.00 | |||
Other receivables | Huangyuan Shangbo | 228,464,117.96 | 684,164,117.96 |
Other receivables | Gongchen Shangbo | 1,594,759,831.00 | |||
Other receivables | Chengzhen Property | 225,228,282.35 | 451,816,700.00 | ||
Total | 2,146,677,304.54 | 1,327,045,200.07 | |||
Long-term receivables | Yiwu Shanglv | 61,250,000.00 | 61,250,000.00 | ||
Total | 61,250,000.00 | 61,250,000.00 |
(2) Payables
¡ÌApplicable ¡õN/A
Unit: RMB
Item | Related party | Closing book balance | Opening book balance |
Advance from customers | Zhejiang Yemai | 45,767.43 | 4,425.37 |
Advance from customers | Redbud Capital | 226,899.51 | 90,759.79 |
Advance from customers | Huishang Micro-Finance | 229,295.66 | |
Contract liabilities | Huishang Micro-Finance | 27,227.72 | |
Accounts payable | Zhejiang Yemai | 820,810.10 | 912,462.01 |
Other payables | Market Development Group | 140,354.00 | 140,354.00 |
Other payables | Zhejiang Yemai | 68,100.00 | 267,150.20 |
Total | 1,329,158.76 | 1,644,447.03 |
7 Related-party commitments
¡õApplicable ¡ÌN/A
8 Others
¡õApplicable ¡ÌN/A
XIII Share-based payment1 Overview of share-based payment
¡õApplicable ¡ÌN/A
2 Share-based payment settled with equity
¡õApplicable ¡ÌN/A
3 Share-based payment settled with cash
¡õApplicable ¡ÌN/A
4 Modification and termination of share-based payment
¡õApplicable ¡ÌN/A
5 Others
¡õApplicable ¡ÌN/A
XIV Commitments and contingencies1 Important commitments
¡ÌApplicable ¡õN/A
Important external commitments, nature and amount thereof as of the balancesheet dates
Jun 30, 2020 Dec 31, 2019
Capital commitmentsCapital commitments that
have been contracted but
not provided for 128,556,605.78 128,556,605.78
Investment commitments:
In 2017, the Group¡¯s wholly-owned subsidiary Yiwu China Commodities CityFinancial Holdings Co., Ltd. (¡°CCCF¡±) and Shanghai Fuxing Industry Group Co., Ltd.(¡°Fuxing¡±) jointly established an industry fund Yiwu China Commodities City FuxingInvestment Center (limited partnership) (hereinafter referred to as the ¡°FoF¡±). TheFoF invested in 12 sub-funds including Yiwu Shangfu Chuangzhi Investment Center(limited partnership) (¡°Shangfu Chuangzhi Fund¡±). CCCF subscribed for capitalcontribution of RMB998mn in the FoF as a limited partner, accounting for 49.9% ofthe total capital contribution, and has paid in RMB102.92mn. The unpaid portion ofits subscribed capital contribution was promised to be RMB895.08mn and was notsubject to a term. CCCF also made capital contribution of RMB9.8mn (49% equity) toYiwu China Commodities City Investment and Management Co., Ltd. (hereinafterreferred to as the ¡°CCCIM¡±), which was a general partner of the above FoF andsub-funds. Fuxing made capital contribution of 51% to and had control over CCCIM.Shangfu Chuangzhi Fund raised funds of RMB823.36mn in total. The FoF hassubscribed for and paid in capital contribution of RMB205.84mn as a limited partner(including the above RMB102.92mn from CCCIM and the rest was contributed byFuxing, the other limited partner of the FoF). As the other limited partner of ShangfuChuangzhi Fund, CCCF has separately subscribed for and paid in capitalcontribution of RMB617.51mn. In addition, neither the Group nor CCCF haveinvested in other sub-funds of the FoF. Subsequently, Shangfu Chuangzhi Fundmade capital contribution of RMB820.54mn to subscribe for the increase in theregistered capital of Hubei Provincial Asset Management Co., Ltd. to acquire
22.667% equity therein. By 2019, 9 out of the above 12 sub-funds had beenderegistered.In 2018, CCCF learned during its after-investment follow-up management thatFuxing and its actual controller ZHU Yidong were suspected of having committed acriminal offense and the 22.667% equity held by Shangfu Chuangzhi Fund in HubeiProvincial Asset Management Co., Ltd. was frozen by the Public Security Bureau ofShanghai for a term from Sep 6, 2018 to Sep 6, 2019 due to Fuxing¡¯s contribution inthe sources of the capital contribution. As of the approval date of the financialstatements, the term of freezing had been extended to Sep 5, 2020.As of the approval date of the financial statements, the Group had not received anynotice of capital contribution other than the above contributions that had been madeor any notice of action involving the Group, CCCF, FoF and its sub-funds.In addition, as of Dec 31, 2019, the Group had promised other investments ofRMB401.86mn in total (RMB401.86mn by Dec 31, 2019).2 Contingencies
(1) Important contingencies on the balance sheet dates
¡ÌApplicable ¡õN/A
Jun 30, 2020 2019Contingent liabilitiesarising from the provisionof external guarantees 2,272,143,067.32 1,853,883,809.89According to relevant provisions, while selling houses, the Group shall provideguarantees for the mortgage loans of the house buyers before they obtain theproperty ownership certificates. The outstanding amount of guarantees as of Jun 30,2020 was RMB902,839,447.86 (RMB540,283,351.51 as of Dec 31, 2019). Thoseguarantees would be released after the issuance of the property ownershipcertificates and are thus little likely to incur losses. Therefore, the managementbelieved that it was not necessary to make provision for the guarantees.According to the resolution of the 15
thmeeting of the 7th Board of Directors on Jul 1,2015, the Group applied to the Yiwu Branch of ABC for a RMB750mn loan for YiwuShanglv and provided guarantee based on its shareholding ratio. The guaranteewas a joint and several liability guarantee, the maximum amount of guarantee wasRMB367.5mn and the term was 11 years. As of Jun 30, 2020, Yiwu Shanglvactually borrowed RMB532,302,406.56 from the Yiwu Branch of ABC(RMB587,412,606.21 as of Dec 31, 2019). According to the guarantee contract, theGroup provided guarantee for RMB260,828,179.21 (RMB287,832,177.04 as of Dec31, 2019) to the Yiwu Branch of ABC. Yiwu State-owned Capital Operation Co., Ltd.provided a counter guarantee for this guarantee.
According to the resolution of the 65
th
meeting of the 7th Board of Directors on Jul23, 2019, the Group applied to the Yiwu Branch of ICBC and Yiwu Branch of SPDBfor RMB1bn loans respectively for Huangyuan Shangbo and provided guaranteesfor them based on its shareholding ratio. The guarantees were joint and severalliability guarantees, the maximum amounts of guarantees were RMB490mn and theterms were two years from the dates immediately following the maturities of theloans under corresponding loan contracts. As of Jun 30, 2020, HuangyuanShangbo actually borrowed RMB887,170,875 (RMB700,923,611.11 as of Dec 31,2019) from the Yiwu Branch of ICBC and RMB963,892,550 (RMB981,198,055.56as of Dec 31, 2019) from the Yiwu Branch of SPDB. According to the guaranteecontracts, the Group provided guarantees for RMB434,713,728.75(RMB343,452,569.44 as of Dec 31, 2019) to the Yiwu Branch of ICBC andRMB472,307,349.5 (RMB480,787,047.22 as of Dec 31, 2019) to the Yiwu Branchof SPDB.According to the resolution of the fourth meeting of the 8th Board of Directors onNov 4, 2019, the Group applied to the Yiwu Branch of Hengfeng Bank for a loanwith a total amount no higher than RMB1.63bn for Chengzhen Property andprovided guarantee based on its shareholding ratio. The guarantee was a joint andseveral liability guarantee, the maximum amount of guarantee was RMB391.2mnand the term was from the maturity date of the debt agreed under the correspondingloan contract until two years after the maturity date of the debt agreed in the loancontract with the latest expiration date among all loan contracts. As of Jun 30, 2020,Chengzhen Property actually borrowed RMB839,393,175 (RMB839,702,769.44 asof Dec 31, 2019) from the Yiwu Branch of Hengfeng Bank. According to theguarantee contract, the Group provided guarantee for RMB201,454,362(RMB201,528,664.67 as of Dec 31, 2019) to the Yiwu Branch of Hengfeng Bank.
(2) Notes shall also be made even if the Company has no importantcontingencies to be disclosed:
¡õApplicable ¡ÌN/A
3 Others
¡õApplicable ¡ÌN/A
XV Post-balance sheet date events1 Important non-adjusting events
¡ÌApplicable ¡õN/A
Unit: RMB
Item | Content | Effect on financial status and operating | Reasons for inability to |
results | estimate the effect | ||
Stripping of some wholly-owned subsidiaries | Please refer to the Announcement on the Transfer of Some Equity in Wholly-owned Subsidiaries and Related-Party Transaction (Announcement No. Temporary 2020-048) for details. |
2 Profit distribution
¡õApplicable ¡ÌN/A
3 Sales return
¡õApplicable ¡ÌN/A
4 Other post-balance sheet date events
¡ÌApplicable ¡õN/A
1) Assessment of the impact of COVID-19 epidemic
Since the nationwide outbreak of the COVID-19 epidemic in Jan 2020, theCompany has kept implementing epidemic prevention and control in all its businesspremises across the country to protect its employees and clients in accordance withthe guidance of related authorities and complied with the related epidemicprevention and control requirements of local governments.The epidemic exerts certain impact on the entire economy and may affect theCompany¡¯s future revenue and profits to some extent depending on the duration ofthe epidemic, the epidemic prevention and control measures and the actualimplementation thereof.The Company will keep a close eye on the epidemic and assess and actively dealwith the impact on its financial status and operating results. As of the reporting date,the impact was still being assessed.
2) Bidding in land auction
In Apr 2020, the Company won the bid for the land use right of 1-42# and 1-43#land plots of Yiwu International Landport Logistics Park at a price of RMB431.23mn.As of the reporting date, the delivery was still under way and the Company had notactually obtained the land use right of the above land plots yet.
XVI Other important events1 Correction of previous accounting errors
(1) Retrospective restatement
¡õApplicable ¡ÌN/A
(2) Prospective application
¡õApplicable ¡ÌN/A
2 Debt restructuring
¡õApplicable ¡ÌN/A
3 Exchange of assets
(1) Exchange of non-monetary assets
¡õApplicable ¡ÌN/A
(2) Exchange of other assets
¡õApplicable ¡ÌN/A
4 Annuity plan
¡õApplicable ¡ÌN/A
5 Termination of operations
¡õApplicable ¡ÌN/A
6 Information of divisions
(1) Determination basis and accounting policy of reporting divisions
¡ÌApplicable ¡õN/A
Information of divisions is reported based on business divisions of the Group. In theidentification of region-based divisions, revenue is attributable to the divisions in theregions where the clients are located, and assets are attributable to the divisions inthe regions where the assets are located. As the Group¡¯s main operating activitiesand operating assets are both concentrated in mainland China, it is not required toreport more detailed information on region-based divisions.
The Group¡¯s businesses are organized and managed separately based on thenature of business and the products and services provided. Each business divisionof the Group is a business department or a subsidiary and provides the productsand services that face the risk different from that faced by other business divisionsand bring the compensations different from those brought by other businessdivisions. The detailed information on business divisions are summarized asfollows:
(a) The market operation division refers to the Group¡¯s market operation business
where the Group charges market booth use fees and auxiliary houses and officebuilding rentals;(b) The commodities sales division engages in the purchase and sale of goods suchas export trade;(c) The property sales division engages in the development and sale of real estateproperties;(d) The hotel service division engages in the operation of hotels includingaccommodation and catering services;(e) The exhibition advertising division engages in the design, production, placementand agency of advertisements;(f) Other services division covers the provision of market-related auxiliary services.The transfer pricing between divisions is made based on the prices offered to thirdparties and the then prevailing market prices.
(2) Financial information of reporting divisions
¡ÌApplicable ¡õN/A
Unit: RMB mn
Item | Market operation | Commodities sales | Property sales | Hotel service | Exhibition advertising | Other services | Set-offs among divisions | Total |
Revenue from external transactions | 1,562 | 106 | 54 | 62 | 37 | 362 | 2,183 | |
Revenue from inter-division transactions | -15 | -1 | -4 | -8 | -15 | -19 | -62 | |
Loss of impairment of assets | ||||||||
Profits before tax | 956 | -6 | -6 | -21 | -23 | 39 | -54 | 993 |
Total assets | 39,326 | 177 | 8,481 | 296 | 613 | 3,945 | 20,864 | 31,974 |
Total liabilities | 25,540 | 142 | 3,126 | 316 | 593 | 1,111 | 12,607 | 18,221 |
Capital expenditures | 1,765 | 1 | 15 | 27 | 1,808 | |||
Long-term equity investment in joint ventures and associates | 995 | 923 | 1,918 |
(3) If the Company does not have reporting divisions or is unable to disclose
the total assets and total liabilities of each division, please explain
¡õApplicable ¡ÌN/A
(4) Other notes
¡õApplicable ¡ÌN/A
7 Other important transactions and events that have influence on investors¡¯decisions
¡õApplicable ¡ÌN/A
8 Others
¡õApplicable ¡ÌN/A
XVII Notes to main items in financial statements of parent company1 Accounts receivable
(1) Disclosure by account age
¡ÌApplicable ¡õN/A
Unit: RMB
Account age | Closing book balance |
Within 1 year | 26,853,260.66 |
Over 3 years | 11,562.06 |
Less: bad debt provision for accounts receivable | -43,549.31 |
Total | 26,821,273.41 |
(2) Disclosure by bad debt provision method
¡ÌApplicable ¡õN/A
Unit: RMB
Category | Closing balance | Opening balance | ||||||||
Book balance | Bad debt provision | Book value | Book balance | Bad debt provision | Book value | |||||
Amount | Weight (%) | Amount | Provision ratio (%) | Amount | Weight (%) | Amount | Provision ratio (%) | |||
Accounts receivable for which bad debt provision is made individually | 31,912.97 | 0.12 | 31,912.97 | 100.00 | 78,801.18 | 3.19 | 78,801.18 | 0.03 | ||
Accounts receivable for which bad debt provision is made by group | 26,832,909.75 | 99.88 | 11,636.34 | 0.04 | 26,821,273.41 | 2,393,443.69 | 96.81 | 11,745.46 | 5.38 | 2,381,698.23 |
Total | 26,864,822.72 | 100.00 | 43,549.31 | / | 26,821,273.41 | 2,472,244.87 | 100.00 | 90,546.64 | / | 2,381,698.23 |
Accounts receivable for which bad debt provision is made individually:
¡ÌApplicable ¡õN/A
Unit: RMB
Item | Closing balance | |||
Book balance | Bad debt provision | Provision ratio (%) | Reason for provision | |
Credit consumption of hotel | 31,912.97 | 31,912.97 | 100% | The amount is estimated to be unrecoverable |
Total | 31,912.97 | 31,912.97 | 100% | / |
Explanation for making bad debt provision for accounts receivable individually:
¡õApplicable ¡ÌN/A
Explanation for making bad debt provision for accounts receivable by group:
¡õApplicable ¡ÌN/A
If the bad debt provision is made according to the general model of expected creditloss, please refer to the disclosure of other receivables:
¡ÌApplicable ¡õN/A
Item | Closing balance | ||
Accounts receivable | Bad debt provision | Provision ratio (%) | |
Within 1 year | 26,821,347.69 | 74.28 | 0.00 |
Over 3 years | 11,562.06 | 11,562.06 | 100.00 |
Total | 26,832,909.75 | 11,636.34 |
(3) Bad debt provision
¡ÌApplicable ¡õN/A
Unit: RMB
Category | Opening balance | Amount of change in the current period | Closing balance | |||
Provision | Recovery or reversal | Charge-off or write-off | Other changes | |||
Bad debt provision for accounts receivable | 90,546.64 | -46,997.33 | 43,549.31 | |||
Total | 90,546.64 | -46,997.33 | 43,549.31 |
In which the recovered or reversed amount is important:
¡õApplicable ¡ÌN/A
(4) Accounts receivable actually written off during the current period
¡õApplicable ¡ÌN/A
(5) Accounts receivable from the five debtors with the highest closingbalance
¡ÌApplicable ¡õN/A
The Company is mainly engaged in market operation and hotel services and itsrevenue from an individual client is very low. Therefore, the combined accountsreceivable from the top five clients occupied a very small share in its total balance ofaccounts receivable.
(6) Accounts receivable derecognized due to transfer of financial assets
¡õApplicable ¡ÌN/A
(7) Amounts of assets and liabilities formed by the transfer of accountsreceivable and continuing involvement
¡õApplicable ¡ÌN/A
Other notes:
¡õApplicable ¡ÌN/A
2 Other receivablesPresentation of items
¡ÌApplicable ¡õN/A
Unit: RMB
Item | Closing balance | Opening balance |
Interest receivable | 98,225,073.23 | 134,543,859.25 |
Other receivables | 2,095,574,583.25 | 1,145,594,759.16 |
Total | 2,193,799,656.48 | 1,280,138,618.41 |
Other notes:
¡õApplicable ¡ÌN/A
Interest receivable
(1) Classification of interest receivable
¡ÌApplicable ¡õN/A
Unit: RMB
Item | Closing balance | Opening balance |
Cash occupation fee for receivables | 98,225,073.23 | 134,543,859.25 |
Total | 98,225,073.23 | 134,543,859.25 |
(2) Important overdue interest
¡õApplicable ¡ÌN/A
(3) Bad debt provision
¡õApplicable ¡ÌN/A
Other notes:
¡õApplicable ¡ÌN/A
Dividend receivable
(1) Overview of dividend receivable
¡õApplicable ¡ÌN/A
(2) Important dividend receivable with the account age longer than 1 year
¡õApplicable ¡ÌN/A
(3) Bad debt provision
¡õApplicable ¡ÌN/A
Other notes:
¡õApplicable ¡ÌN/A
Other receivables
(1) Disclosure by account age
¡ÌApplicable ¡õN/A
Unit: RMB
Account age | Closing book balance |
Within 1 year | 1,736,977,885.11 |
1 to 2 years | 354,659,163.07 |
2 to 3 years | 1,289,345.50 |
Over 3 years | 3,496,397.15 |
-848,207.58 | |
Total | 2,095,574,583.25 |
(2) Classification by the nature of accounts
¡ÌApplicable ¡õN/A
Unit: RMB
Nature of receivable | Closing book balance | Opening book balance |
Financial assistance receivable from joint ventures | 2,048,452,231.31 | 1,135,980,817.96 |
Reserve | 387,590.99 | 599,890.14 |
Withholding, deposit and margin | 46,734,760.95 | 9,014,051.06 |
Total | 2,095,574,583.25 | 1,145,594,759.16 |
(3) Bad debt provision
¡ÌApplicable ¡õN/A
Unit: RMB
Bad debt provision | Phase 1 | Phase 2 | Phase 3 | Total |
Expected credit loss in the coming 12 months | Expected credit loss in the entire duration (credit has not been impaired) | Expected credit loss in the entire duration (credit has been impaired) | ||
Balance as of Jan 1, 2020 | 540,270.80 | 540,270.80 | ||
Provision made in the current period | 307,936.78 | 307,936.78 | ||
Balance as of Jun 30, 2020 | 848,207.58 | 848,207.58 |
Significant changes in the book balance of other receivables with changes in lossprovisions in the current period:
¡õApplicable ¡ÌN/A
Basis for the bad debt provision made in the current period and for assessingwhether the credit risk of financial instruments has increased significantly:
¡õApplicable ¡ÌN/A
(4) Bad debt provision
¡ÌApplicable ¡õN/A
Unit: RMB
Category | Opening balance | Change in the current period | Closing balance | |||
Provision | Recovery or reversal | Charge-off or write-off | Other changes | |||
Bad debt | 540,270.80 | 307,936.78 | 848,207.58 |
provision for other receivables | ||||||
Total | 540,270.80 | 307,936.78 | 848,207.58 |
In which the recovered or reversed amount is important:
¡õApplicable ¡ÌN/A
(5) Other receivables actually written off in the current period
¡õApplicable ¡ÌN/A
Notes on the write-off of other receivables:
¡õApplicable ¡ÌN/A
(6) Other receivables from the five debtors with the highest closing balance
¡ÌApplicable ¡õN/A
Unit: RMB
Debtor | Nature of receivable | Closing balance | Account age | Percentage in the total closing balance of other receivables (%) | Closing balance of bad debt provision |
Yiwu Gongchen Shangbo Property Co., Ltd. | Financial assistance | 1,594,759,831.00 | Within 1 year | 76.10 | |
Yiwu Huangyuan Shangbo Property Co., Ltd. | Financial assistance | 228,464,117.96 | Within 1 year and 1 to 2 years | 10.90 | |
Yiwu Chengzhen Property Co., Ltd. | Financial assistance | 225,228,282.35 | 1 to 2 years | 10.75 | |
Yiwu International Production Materials Market Construction Headquarters | Construction commencement deposit | 2,400,000.00 | Over 3 years | 0.11 | |
Yiwu Xuanniao Supply Chain Management Co., Ltd. | Disbursement of warehouse rental | 1,073,782.80 | 1 to 2 years and 2 to 3 years | 0.05 | 214,756.56 |
Total | / | 2,051,926,014.11 | / | 97.91 | 214,756.56 |
(7) Receivables involving government grants
¡õApplicable ¡ÌN/A
(8) Other receivables derecognized due to transfer of financial assets
¡õApplicable ¡ÌN/A
(9) Amounts of assets and liabilities formed by the transfer of otherreceivables and continuing involvement
¡õApplicable ¡ÌN/A
Other notes:
¡õApplicable ¡ÌN/A
3 Long-term equity investment
¡ÌApplicable ¡õN/A
Unit: RMB
Item | Closing balance | Opening balance | ||||
Book balance | Impairment provision | Book value | Book balance | Impairment provision | Book value | |
Investment in subsidiaries | 6,968,166,767.38 | 570,000,000.00 | 6,398,166,767.38 | 6,528,370,031.25 | 570,000,000.00 | 5,958,370,031.25 |
Investment in associates and joint ventures | 996,186,574.56 | 996,186,574.56 | 927,726,964.52 | 927,726,964.52 | ||
Total | 7,964,353,341.94 | 570,000,000.00 | 7,394,353,341.94 | 7,456,096,995.77 | 570,000,000.00 | 6,886,096,995.77 |
(1) Investment in subsidiaries
¡ÌApplicable ¡õN/A
Unit: RMB
Investee | Opening balance | Increase in the current period | Decrease in the current period | Closing balance | Impairment provision made in the current period | Closing balance of impairment provision |
Yiwu China Commodities City Property Development Co., Ltd. | 2,595,500,000.00 | 40,556,292.36 | 2,636,056,292.36 | |||
Yiwu China Commodities City Advertising Co., Ltd. | 9,380,000.00 | 9,380,000.00 | ||||
Yiwu China Commodities City Exhibition Co., Ltd. | 6,000,000.00 | 12,000,000.00 | 18,000,000.00 | |||
Yiwu China Commodities City Logistics Co., Ltd. | 19,000,000.00 | 250,000.00 | 19,250,000.00 | |||
Yiwu China Commodities | 200,594,000.00 | 200,594,000.00 |
City Information Technology Co., Ltd. | ||||||
Yiwu International Commodities Fair Co., Ltd. | 10,000,000.00 | 10,000,000.00 | 0.00 | |||
Pujiang Lvgu Property Co., Ltd. | 700,000,000.00 | 700,000,000.00 | ||||
Haicheng Company | 0.00 | 570,000,000.00 | ||||
Hangzhou Shangbo Nanxing Property Co., Ltd. | 50,000,000.00 | 50,000,000.00 | ||||
Yiwu Shangbo Property Co., Ltd. | 300,000,000.00 | 300,000,000.00 | ||||
Yiwu China Commodities City Financial Holdings Co., Ltd. | 1,847,416,031.25 | 110,000,000.00 | 1,957,416,031.25 | |||
Yiwu China Commodities City Import and Export Co., Ltd. | 50,000,000.00 | 50,000,000.00 | ||||
Yiwu China Commodities City Tourism Development Co., Ltd. | 70,200,000.00 | 29,800,000.00 | 100,000,000.00 | |||
Yiwu China Commodities City Overseas Investment and Development Co., Ltd. | 100,000,000.00 | 100,000,000.00 | ||||
Yiwu China Commodities City Commerce and Trade Service Training Center Co., Ltd. | 100,000.00 | 100,000.00 | ||||
Yiwu China Commodities City Assets Operation | 180,000.00 | 4,900,000.00 | 5,080,000.00 |
and Management Co., Ltd. | ||||||
Zhejiang Yindu Hotel Management Co., Ltd. | 0.00 | 1,000,000.00 | 1,000,000.00 | |||
Yiwu China Commodities City Big Data Co., Ltd. | 0.00 | 13,600,000.00 | 13,600,000.00 | |||
Zhejiang Huajie Investment and Development Co., Ltd. | 0.00 | 37,690,443.77 | 37,690,443.77 | |||
Yiwu Commodities City Gonglian Property Co., Ltd. | 0.00 | 200,000,000.00 | 200,000,000.00 | |||
Total | 5,958,370,031.25 | 449,796,736.13 | 10,000,000.00 | 6,398,166,767.38 | 570,000,000.00 |
(2) Investment in associates and joint ventures
¡ÌApplicable ¡õN/A
Unit: RMB
Investee | Opening balance | Change in the current period | Closing balance | Closing balance of impairment provision | |||||||
Additional investment | Decrease in investment | Investment gains or losses recognized with the equity method | Adjustment of other comprehensive income | Change in other equity | Cash dividend or profits declared to be distributed | Impairment provisions | Others | ||||
1. Joint ventures | |||||||||||
Yiwu Shanglv | 348,139,707.06 | 1,410,985.53 | 349,550,692.59 | ||||||||
Yiwu Rongshang Property | 50,000,000.00 | -30,372,695.75 | 19,627,304.25 | ||||||||
Yiwu Chuangcheng Property | 20,000,000.00 | -4,551,390.84 | 15,448,609.16 | ||||||||
Yiwu Guoshen Shangbo Property | 20,000,000.00 | -11,058,047.24 | 8,941,952.76 | ||||||||
Others | 1,125,415.75 | -156,476.74 | 968,939.01 | ||||||||
Subtotal | 349,265,122.81 | 90,000,000.00 | -44,727,625.04 | 394,537,497.77 | |||||||
2. Associates | |||||||||||
Binjiang Shangbo | 137,128,387.75 | 16,729,010.14 | 153,857,397.89 | ||||||||
Huishang Micro-Finance | 83,302,336.78 | -7,756,416.35 | 75,545,920.43 | ||||||||
Chouzhou | 330,665,464.31 | 20,478,144.40 | 351,143,608.71 |
Financial Lease | |||||||||||
Others | 27,365,652.87 | 1,500,000.00 | -3,036,467.55 | 2,654,175.06 | -2,072,860.50 | 21,102,149.76 | |||||
Subtotal | 578,461,841.71 | 1,500,000.00 | 26,414,270.64 | 2,654,175.06 | -2,072,860.50 | 601,649,076.79 | |||||
Total | 927,726,964.52 | 91,500,000.00 | -18,313,354.40 | 2,654,175.06 | -2,072,860.50 | 996,186,574.56 |
Other notes
¡õApplicable ¡ÌN/A
4 Revenue and cost of sales
(1) Overview of revenue and cost of sales
¡ÌApplicable ¡õN/A
Unit: RMB
Item | Amount in the current period | Amount in the previous period | ||
Revenue | Cost of sales | Revenue | Cost of sales | |
Main business | 1,259,705,715.29 | 391,267,375.06 | 1,186,687,468.41 | 455,209,940.59 |
Other businesses | 403,256,371.61 | 26,416,255.20 | 372,790,296.15 | 18,084,394.30 |
Total | 1,662,962,086.90 | 417,683,630.26 | 1,559,477,764.56 | 473,294,334.89 |
(2) Revenue generating from contracts
¡õApplicable ¡ÌN/A
(3) Contract performance obligations
¡õApplicable ¡ÌN/A
(4) Amortization to remaining contract performance obligations
¡õApplicable ¡ÌN/A
Other notes:
None5 Investment income
¡ÌApplicable ¡õN/A
Unit: RMB
Item | Amount in the current period | Amount in the previous period |
Income from long-term equity investment with the cost method | 149,000,000.00 | |
Income from long-term equity investment with the equity method | 22,242,937.96 | 16,108,492.57 |
Dividend income from other equity instruments investment during holding period | 6,271,366.90 | |
Investment income from disposal of held-for-trading | 20,669,594.15 | 21,716,507.93 |
financial assets | ||
Investment income from disposal of wealth management products | 461,232.88 | |
Total | 43,373,764.99 | 193,096,367.40 |
Other notes:
None6 Others
¡õApplicable ¡ÌN/A
XVIII Supplementary materials1 Detailed statement of current non-recurring items
¡ÌApplicable ¡õN/A
Unit: RMB
Item | Amount | Remark |
Gain or loss from the disposal of non-current assets | 57,619,261.54 | Mainly the investment income arising from the disposal of subsidiaries and related claims |
Tax refund or credit due to approval beyond the authority or without official approval | ||
Government grants that are recognized in the current profit or loss, excluding government grants that are closely related to the businesses of the Company and are provided in a fixed amount or quantity according to the unified national standards | 13,526,949.49 | Employment stabilization subsidy of RMB5.9167mn, additional VAT deduction (10%) of RMB2.6042mn, amortization of the subsidy for the data construction and operation of information center of RMB1.5mn, hardware exhibition subsidy of RMB0.6mn, new and high-tech award of RMB0.6mn in 2019, provincial service demonstration zone award of RMB0.55mn in 2019, additional R&D input deduction of RMB0.9781mn in 2018 and interest subsidy of RMB0.5774mn for the construction of the international exhibition center |
Cash occupation fees charged from non-financial enterprises that are recognized in the current profit or loss | 48,341,409.06 | Cash occupation fees charged for the provision of financial assistance to Yiwu Shanglv, Chengzhen Property and Gongchen Property |
Gain or loss from changes in fair value of held-for-trading financial assets, derivative financial assets, held-for-trading financial liabilities and derivative financial liabilities, and investment income from the disposal of held-for-trading financial assets, derivative financial assets, held-for-trading financial | 41,552,057.16 | RMB20.1935mn of gains from changes in fair value of derivative financial assets, RMB20.5mn of investment income from the disposal of held-for-trading financial assets, RMB0.689mn of income from the purchase of |
liabilities, derivative financial liabilities andother debt instruments, except for effectivehedging during theordinary course of business
wealth management products, and RMB0.1696mn of income from IPO subscription | ||
Net income from other non-operating activities | -2,477,321.94 | Mainly external donation of RMB2.7314nm and confiscated margin and penalty of RMB0.3311mn |
Effect of income tax | -40,078,629.26 | |
Effect of minority interest | -1,082,219.35 | |
Total | 117,401,506.70 |
Explanations shall be made for the non-recurring items identified by the Companyaccording the Explanatory Announcement No. 1 on Information Disclosure byCompanies Publicly Offering Securities ¨C Non-recurring Items, and for theCompany identifying the non-recurring items enumerated in the ExplanatoryAnnouncement No. 1 on Information Disclosure by Companies Publicly OfferingSecurities ¨C Non-recurring Items as recurring items.
¡ÌApplicable ¡õN/A
Unit: RMB
Item | Involved amount | Reasons |
Investment income from the disposal of subsidiaries and related claims | 56,523,765.30 | The Group identified non-recurring items according to the Explanatory Announcement No. 1 on Information Disclosure by Companies Publicly Offering Securities ¨C Non-recurring Items (CSRC Announcement [2018] No.43) |
Government grants | 13,526,949.49 | Ditto |
Penalties for market booths | 267,800.00 | Ditto |
Cash occupation fees | 48,341,409.06 | Ditto |
Gains or losses from the changes in fair value arising from the holding of held-for-trading financial assets and other noncurrent financial assets | 40,693,509.58 | Ditto |
Investment income from the disposal of wealth management products | 688,953.43 | Ditto |
Investment income from the disposal of held-for-trading financial assets | 169,594.15 | Ditto |
2 ROE and EPS
¡ÌApplicable ¡õN/A
Profits in the reporting period | Weighted average ROE (%) | EPS | |
Basic EPS | Diluted EPS | ||
Net profits attributable to common shareholders of the Company | 5.38 | 0.13 | 0.13 |
Net profits attributable to common shareholders of the Company with non-recurring items excluded | 4.50 | 0.11 | 0.11 |
3 Differences in accounting data between foreign and Chinese accounting
standards
¡õApplicable ¡ÌN/A
4 Others
¡õApplicable ¡ÌN/A
Section XI Documents for Inspection
Documents for inspection | Accounting statements with the signatures and stamps of the Company¡¯s legal representative, person in charge of accounting and person in charge of the accounting body. |
All of the Company¡¯s original documents and announcements disclosed publicly on Shanghai Securities News, China Securities Journal and Securities Times during the reporting period. |
Chairman of Board Of Directors: ZHAO WengeDate of approval by the Board Of Directors: Aug 13, 2020
Amendment
¡õApplicable ¡ÌN/A