Stock Code: 600415 Stock Short Name: 小商品城
Zhejiang China Commodities City Group
Co., Ltd.
2020 Annual Report
Important NoteI. The board of directors, the supervisory committee and the directors,supervisors and senior management of the Company hereby warrant thetruthfulness, accuracy and completeness of the contents of the AnnualReport, guarantee that there are no false representations, misleadingstatements or material omissions contained in this Annual Report, andare jointly and severally responsible for the liabilities of the Company.
II. Absent directors
Title of absent directors | Name of absent directors | Reasons for the absence of directors | Name of person entrusted |
Independent director | HONG Jianqiao | Due to work reasons | MA Shuzhong |
Director | GU Zhixu | Due to work reasons | XU Hang |
VI. Risk statement with forward-looking representations
√Appicable □Not Applicable
The forward-looking representations involved in this Report such as future plans anddevelopment strategies do not constitute the Company’s substantial commitments to investors.Investors shall watch out for the investment risks.
VII. Is the Company’s cash occupied by its controlling shareholder or any of
its affiliates for non-operational purposes?NO
VIII. Has the Company provided external guarantee in violation of the
prescribed decision-making procedures?NO
IX. Whether more than half of the directors can not warrant the truthfulness,
accuracy and completeness of the annual report disclosed by the
CompanyNO
X. Reminder of major risks
The Company has described the risks that may exist in this Report in details. Please refer to thepossible risks in the discussion and analysis of operation in Section 4 of this report.
XI. Others
□Applicable √Not applicable
Table of Contents
Section I. Definitions ...........................................................................................................5
Section II. Company Profile and Financial Highlights............................................................6
Section III. Company Operational Highlights .......................................................................12
Section IV. Discussion and Analysis of Operation ................................................................16
Section V. Significant Matters .............................................................................................48
Section VI. Changes in Common Shares and Shareholders ................................................71
Section VII. Preferred Shares ...............................................................................................78
Section VIII. Directors, Supervisors, Senior Managers and Employees .................................79
Section IX. Corporate Governance ......................................................................................88
Section X. Corporate Bonds ...............................................................................................93
Section XI. Financial Report ................................................................................................98
Section XII. Documents for Inspection ................................................................................243
Section I. Definitions
I. DefinitionsFor the purpose of this Report, unless otherwise stated in the context, the following terms shall havethe following meanings:
Definitions | ||
SCO | means | Yiwu State-owned Capital Operation Co., Ltd. |
MDG | means | Yiwu Market Development Group Co., Ltd. |
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. |
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. |
Import and Export Company | means | Yiwu China Commodities City Import and Export Co., Ltd. |
Supply Chain Company | means | Yiwu China Commodities City Supply Chain Management Co., Ltd. |
Meipinshu | means | Yiwu Meipinshu Supply Chain 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 Highlights
I. Company profile
Company name (Chinese) | 浙江中国小商品城集团股份有限公司 |
Company short name (Chinese) | 小商品城 |
Company name (English) | Zhejiang China Commodities City Group Co., Ltd |
Company short name (English) | YIWU CCC |
Legal representative | ZHAO Wenge |
Board Secretary | Securities Affairs Representative | |
Name | XU Hang | RAO Yangjin |
Address | Ocean Business Building, No.105 Futian Road, Yiwu | Ocean 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 |
Registered address | Ocean Business Building, No.105 Futian Road, Yiwu, Zhejiang Province |
Postal code at the registered address | 322000 |
Office address | Ocean 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 |
Designated media channels for information disclosure | China Securities Journal, Shanghai Securities News and Securities Times |
Designated websites for the publication of the annualreport as approved by CSRC | www.sse.com.cn |
Place for access to the Company’s annual reports | Securities Department of the Company |
Stock profile | ||||
Type of stock | Place of listing | Stock short name | Stock code | Stock short name before change |
A shares | Shanghai Stock Exchange | 小商品城 | 600415 | None |
CPAs engaged by the Company (domestic) | Name | Ernst & Young Hua Ming Certified Public Accountants (special general partnership) |
Office address | 16th Floor, Ernst & Young Building, Oriental Plaza, 1 |
Chang'an Street, Dongcheng District, Beijing, China | |
Name of the Signing Certified Public Accountants | YIN Guowei, YANG Zhuye |
Major accounting data | Year 2020 | Year 2019 | Increase/decrease in the current period vs. the prior corresponding period (%) | Year 2018 |
Operating income | 3,725,686,100.39 | 4,042,767,521.18 | -7.84 | 3,593,748,474.73 |
Net profits attributable to shareholders of the Listed Company | 926,626,706.42 | 1,255,276,023.70 | -26.18 | 1,082,631,394.54 |
Net profits attributable to shareholders of the Listed Company after deducting non-recurring profit and loss | 517,246,267.88 | 930,676,526.71 | -44.42 | 357,013,210.41 |
Net cash flow from operating activities | 828,788,261.95 | -1,538,907,257.55 | Not applicable | 1,307,247,226.51 |
End of year 2020 | End of Year 2019 | Increase/decrease at the end of the current period vs. the end of the prior corresponding period (%) | End of year 2018 | |
Net assets attributable to shareholders of the Listed Company | 13,558,228,377.08 | 13,020,619,449.36 | 4.13 | 11,762,025,060.79 |
Total assets | 28,750,127,146.86 | 31,323,233,994.44 | -8.21 | 26,877,858,287.71 |
Major financial indictors | Year 2020 | Year 2019 | Increase/decrease in the current period as compared to the prior corresponding period (%) | Year 2018 |
Basic EPS (RMB) | 0.17 | 0.23 | -26.09 | 0.20 |
Diluted EPS (RMB) | 0.17 | 0.23 | -26.09 | 0.20 |
Basic EPS after deducting non-recurring profit and loss (RMB/share) | 0.10 | 0.17 | -41.18 | 0.07 |
Weighted average ROE (%) | 6.88 | 10.04 | Down 3.16 ppt | 9.40 |
Weighted average ROE after deducting non-recurring profit and loss (%) | 3.84 | 7.44 | Down 3.60 ppt | 3.10 |
Explanation of main accounting data and financial indicators of the Company in the previous threeyears at the end of the report period
√Applicable □Not applicable
1. Net profit attributable to shareholders of the Listed Company after deducting non-recurringprofit and loss in 2020 decreased by RMB 413 million compared with that in 2019, mainly due to thedecrease of RMB 328 million year over year (YoY) in the net profit attributable to the Company, andthe increase of RMB 85 million YoY in non-recurring profit and loss.Net profit attributable to shareholders of the Listed Company after deducting non-recurring profitand loss in 2019 increased by RMB 574 million compared with that in 2018. The main reasons werethat the net profit attributable to the Company in 2019 increased by RMB 173 million YoY, and thenon-recurring profit and loss decreased by RMB 328 million YoY.
2. Net cash flows from operating activities in 2020 increased by RMB 2.368 billion YoY. Cashreceived from sales of goods and providing services in 2020 increased by RMB 375 million YoY. Thecash paid for purchasing goods and receiving services in 2020 decreased by RMB 1.931 billion YoYdue to the land transfer fee for the Station Block paid in 2019.
Net cash flows from operating activities in 2019 decreased by RMB 2.846 billion compared withthat in 2018. Cash received from sales of goods and providing services decreased by RMB 880million YoY. The main reasons were the decrease of RMB 1.38 billion in market receipts, theincrease of RMB 500 million in real estate sales returns, and the increase of RM 2.127 billion in cashpaid for purchasing goods and receiving services due to the payment of land transfer fees for theStation Blocks.
VIII. Differences in accounting data between foreign and Chinese accounting standards(i) Differences between the net profit and net assets attributable to shareholders of the
Company disclosed in accordance with international accounting standards and
China accounting standards in the financial report
□Applicable √Not applicable
(ii) Differences between the net profit and net assets attributable to shareholders of the
Company disclosed in accordance with overseas accounting standards and China
accounting standards in the financial report
□Applicable √Not applicable
(iii) Explanation of differences between domestic and overseas accounting standards
□Applicable √Not applicable
IX. Key financial indicators by quarter
Unit: RMB
Q1 Jan-Mar | Q2 Apr-June | Q3 Jul-Sep | Q4 Oct-Dec | |
Operating income | 755,360,528.90 | 1,366,088,265.41 | 1,033,708,048.38 | 570,529,257.70 |
Net profits attributable to shareholders of the | 267,701,151.53 | 451,894,157.13 | 390,042,198.99 | -183,010,801.23 |
Listed Company | ||||
Net profit attributable to shareholders of the Listed Company after deducting non-recurring profit and loss | 207,007,351.47 | 395,186,450.49 | 12,387,730.69 | -97,335,264.77 |
Net cash flow from operating activities | -589,922,271.57 | -113,144,428.59 | -2,636,067,778.36 | 4,167,922,740.47 |
Non-recurring items | Year 2020 | Remark (if applicable) | Year 2019 | Year 2018 |
Profit and loss from the disposal of non-current assets | 383,206,932.21 | It is mainly due to the profit and loss of equity disposal of Yiwu China Commodities City Property Development Co., Ltd. (CCCP), Pujiang Green Valley and Yiwu Gongchen Shangbo Property Co., Ltd. (Gongchen Shangbo) | 108,675,734.58 | 680,881,371.43 |
Government grants that are recognized in the current profit and 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 | 18,655,980.14 | Please see details of government grants accounted for profit and loss for the current period | 9,031,831.74 | 13,403,840.00 |
Cash occupation fees charged from non-financial enterprises that are recognized in the current profit and loss | 124,744,826.38 | Fees paid for using fund collected from joint ventures including Gongchen Shangbo and Tonghui Shangbo | 241,150,826.18 | 3,834,965.67 |
Gain arising from investment costs for acquisition of subsidiaries, associates and joint ventures by the | 31,308,053.80 | Mainly due to the profit of RMB 30.457 million which is the result of |
corporation being less than its share of fair value of identifiable net assets of the investees on acquisition | re-measurement of the remaining equity at fair value after the loss of control right of CCCP and Pujiang Green Valley | |||
Profits and losses arising from contingencies that are unrelated to the normal business operation of the Company | -10,706,996.21 | |||
Profit and 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 and other debt instruments, except for effective hedging during the ordinary course of business | -32,578,800.48 | Mainly due to profit and loss arising from the change in fair value of financial assets held for trading | 68,526,573.42 | 86,543,470.60 |
Reversal of provision for impairment of accounts receivable and contract assets that have been separately tested for impairment | 6,669,844.75 | |||
Profits and losses arising from external entrusted loans | 11,786,857.07 | Due to the income obtained from the issuance of entrusted loans | ||
Net income from other non-operating activities | -4,107,200.75 | 1,049,413.04 | 53,540,958.05 | |
Investment income from wealth management products and structured deposits | 688,953.43 | |||
Effect of minority interest | -1,408,133.75 | -6,697.76 | 635.18 | |
Effect of income tax | -122,917,029.51 | -103,828,184.21 | -108,549,905.34 | |
Total | 409,380,438.54 | 324,599,496.99 | 725,618,184.13 |
Project | Opening balance | Closing balance | Change for the current period | Amount of impact on current profits |
Held-for-trading financial assets | 3,807.77 | 5,171.27 | 1,363.50 | 277.22 |
Other equity instruments investment | 64,218.80 | 66,225.63 | 2,006.83 | 1,003.42 |
Other non-current financial assets | 151,944.94 | 152,392.52 | 447.58 | 658.08 |
Total | 219,971.51 | 223,789.42 | 3,817.91 | 1,938.72 |
Section III. Company Operational Highlights
I. Main business, business model and industry situation during the reporting periodAccording to the definitions in the Guidelines for Industry Classification of Listed Companies(revised in 2012) released by the CSRC, the Company is engaged in “Business Service” (L72) in“Lease and Business Service” (L).(i) Main businesses
The Company is engaged in market development and operation and supporting services,providing online trading platform and services, online trading market development and operation,etc., belonging to the comprehensive industry category.(ii) Operating model
1. Market operation
Market operation business is mainly operated and managed by the Company's subordinatemarket branches. The main business income of the market operation segment is mainly the incomefrom the use of commercial space. The Company adopts a commercial space rental model, that is,the ownership of the commercial space belongs to the Company, and the merchants only have theright to use the commercial space within the contract period. The Company and the merchant sign acontract to clearly stipulate the use period, usage fee and business purpose of the commercial space.The merchant shall not change the agreed business purpose, and shall not sublet without theCompany’s consent. Generally, the payment methods of usage fee are one-time payment orinstallment payment according to the contract terms. Currently the markets that the Company isresponsible for operating include Zone 1 to Zone 5 of the International Trade City, Importing Market,Zone 1 East Expansion Market, Huangyuan Market and International Production Goods Market.
2. Online trading platform
During the reporting period, the Company officially launched the platform of Yiwu ChinaCommodities City, the official website of Yiwu market (www.chinagoods.com, hereinafter referred toas "chinagoods platform"). The chinagoods platform relies on the resources of 75,000 physicalshops in the market that the Company operates and serves two million small, medium and microenterprises in the upstream of the industry chain. It is driven by the integration of trade data,connecting the supply and demand parties in areas of manufacturing, demonstrating andtransactions, warehousing and logistics, financial credit, market management, etc., so as to achieveeffective and precise allocation of market resources and build a true, open and integrated digitaltrade comprehensive service platform.
3. Hotel services
The hotel service business is mainly operated and managed by the Company’s subordinate hotelbranches. The hotels operated by the Company mainly provide comprehensive services such asaccommodation, catering, leisure and entertainment, and conferences, etc. The main revenuesources of the hotels include room sales, catering sales, commodity sales and venue leasing, etc.Sales of guest rooms and catering mainly rely on channels such as clients agreement, conferences,wedding banquets and recommendation by operators of online booking platforms.
(iii) The situation of industry
1. Market operation
According to the "Statistical Yearbook of China Commodity Trading Market", the marketoperated by the Company belongs to the comprehensive market of industrial consumer goods in thesegment market category. For many years, the total annual turnover of the Company has been atthe forefront of the national comprehensive market. In terms of transaction amount, year-endbusiness area and number of commercial spaces, the Company's share in the nationalcomprehensive market has remained stable. In 2020, the total turnover of YIWU CCC was RMB
162.661 billion. 2. Online trading platform
As of the end of the reporting period, there were around 50,000 merchants settled atchinagoods platform, more than 800,000 registered purchasers (52% of the registered purchasershad been to the Yiwu physical market), the platform product SKUs reached 2.6 million, the numberof APP downloads was 2 million, and the turnover reached RMB 2.894 billion since the officiallaunch. After the official launch, the average daily visits exceeded 3.25 million, with a peak of over 5million. As an important measure of the Company's digital transformation, the chinagoods platformis an important and effective means for the Company's transformation, upgrading, and developmentin the tide of trade digitization and information technology progress. It is also a sign of theCompany's online-offline market integration and progress.
3. Hotel services
In terms of room numbers, as of the end of 2020, the total number of hotel rooms operated bythe Company was 1,559. The Company's hotel business accounts for a small share in the industryand makes a small contribution to the Company's profits.
II. Material changes in major assets during the reporting period
√Applicable □Not applicable
The Group transferred 51% of the equity of CCCP and Pujiang Green Valley Real Estate Co.,Ltd. this year, and the remaining 49% of the equity was measured at the fair value of RMB1,867,205,576.66 on the date of disposal, which affected the book value of long-term equityinvestment of RMB 1,851,245,420.56. For more details, please refer to Note VII ConsolidatedFinancial Statement Item Note 17, Long-term Equity Investment.
Among them: foreign assets are 184,753,621.71 (unit: Yuan, currency: RMB), accounting for
0.64% of the total assets.
III. Analysis of core competencies during the reporting period
√Applicable □Not applicable
(i) First-mover advantages
At the start of China’s reform and opening-up, Yiwu took the lead in establishing the commoditiesmarket. During the recent forty years, the market has been upgraded five times and expanded tentimes and has been among the top comprehensive national markets with the highest turnover,
pointing to its remarkable first-mover advantages. As the largest commodities distribution center inthe world, the Yiwu commodities market provides more than 2million products, which fall in 26categories and supports one-stop purchase. The market boasts enormous resources and hugebusiness flow, goods flow, cash flow and information flow.(ii) Brand advantages“Yiwu China Commodities City” is the first market identified by the SAIC as a well-knowntrademark among the national commodities trading markets. The Company has taken multiplemeasures to give play to the brand of “Yiwu China Commodities City” and is committed to improvingits influence and leading role in the industry. Its brand advantages and influence have keptenhancing.(iii) Auxiliary services advantagesThe People’s Government of Yiwu has been providing policy support for the development of themarket for years, and the auxiliary industries are developing rapidly in Yiwu.
1. Convenient logistics system
Yiwu has in place perfect commerce and trade auxiliary facilities and advantageous logisticsservice. The logistics network has full coverage in Yiwu. A large number of large-sized internationaland domestic express delivery and logistics companies have regional distribution centers in Yiwu,and a world-oriented goods transport and distribution network has been established. Yiwu has beenlisted among the “commerce and trade-oriented national logistics hubs” by the NationalDevelopment and Reform Commission and the Ministry of Transport. According to the Operation ofPostal Industry in 2020 announced by the State Post Office, the express business volume of Jinhua(Yiwu) in 2020 surpassed that of Guangzhou and ranked the first in China.
2. Industry support
During the recent years, thanks to the Yiwu China Commodities City, the Yiwu-centeredmanufacturing industry cluster has been developing fast, an commodities industrial belt that iscentered in Yiwu and covers Jinhua, Lishui, Quzhou, Hangzhou, Jiaxing, Taihu, Shaoxing, Ningbo,Wenzhou and Taizhou with an area of nearly 10,000 sq.m has been established, and a benignmechanism under which the Yiwu wholesales market and the peripheral industry cluster developtogether has been formed.
3. Support from exhibition service
The major international trade exhibitions held by the Company’s exhibition business divisionsuch as China Yiwu International Commodities Fair, China Yiwu International Forest Products Fair,China Yiwu International Imported Commodities Fair and China Yiwu Hardware and Electrical Exposupport and cultivate vertical exhibition in multiple industries such as stationery and textiles, havedeveloped multiple professional and international exhibition brands, and are important nationalplatforms for the China Commodities City to lead industry development, develop the city economyand maintain the clusters of traders and commodities.
(iv) Diversified businessesThe Company has strengthened its presence in the related industries, made efforts on financialinvestment, kept developing the exhibition business, created a new e-commerce model, developedthe hotel business and also run international trade, modern logistics, advertising information,shopping and tourism businesses. It has created a group structure and profit-making model ofshared and interactive development of market resources.(v) Management advantages
In terms of personnel, management and technology, excellent operation and management abilityis one of the core competences of the Company as a professional market operating company. TheCompany has developed a series of perfect management systems for market operation andmanagement, accumulated rich experience in operation and management, and has cultivated aprofessional management team with reasonable knowledge and expertise structures and strategicdevelopment insights.
Section IV. Discussion and Analysis of OperationI. Discussion and analysis of operationDuring the reporting period, the Company achieved operating income of RMB 3.726 billion, witha decrease of RMB 317 million or 7.84% YoY; the total profit was RMB 1.422 billion, with a decreaseof RMB 211 million or 12.93% YoY; the net profit attributable to the shareholders of the parentcompany was RMB 927 million, with a decrease of RMB 329 million or 26.18% YoY.(i) Market operationIn the past year, the Company faced many challenges, such as COVID-19 epidemic preventionand control, complex and changeable domestic and international economic and trade situations, etc.The Company has adopted a series of measures to stabilize the core businesses while vigorouslypromote market innovation and development, and make every effort to build an upgraded version ofthe physical market with "the highest degree of digitalization, the best business environment, and thestrongest trade service capabilities", further enhancing the Company's core advantages in themarkets. In 2020, the rental rate of commercial space in YIWU CCC remained above 96%, and themarket continued to operate steadily and positively.
1. The Company promotes precise and intelligent control measures featured as "standardization,market access mechanism, prohibition, inspection system, and informatization", practically adopts"street battle" style of "enhancing CPC + Unit" to guard the "safe door" of global procurement. In thecontext of COVID-19 epidemic prevention and control, YIWU CCC was partially re-opened onFebruary 18 and fully resumed on March 1, becoming one of the first batch of markets in the countryto resume trading.
2. The Company linked 121 downstream markets, held 21 trade matchmaking events, regainedmore than 200,000 buyers and expanded the domestic trade market. More than 10,000 kinds ofgoods were displayed in Czech Republic, Dubai, Rwanda and other overseas stations, completedoverseas warehouses cooperation projects of more than 250,000 square meters, and foreign tradeorders were stabilized.
3. The Company innovatively constructed digital Integrated Free Trade Zone, and earlyplanning work of the new import market and Zone 6 of the International Trade City started in allaspects.
(ii) Promoting trade digitalization
In 2020, COVID-19 epidemic spread worldwide, which had a profound impact on the globalindustrial chain and supply chain stability and the direct flow of people and goods, and limited the
growth of international trade. Digitalization of trade has become a new driving force for thedevelopment of global trade, and the market urgently needs to achieve in-depth integration of onlineand offline. The Company promotes the market and merchants to “adopt cloud, big data andintelligent technology” to build a digital platform.During the reporting period, the Company officially launched the platform of Yiwu ChinaCommodities City, the official website of Yiwu market (domain name: www.chinagoods.com,hereinafter referred to as "chinafoods platform"). The chinagoods platform is an important carrier ofthe company's digital reform, it relies on the resources of 75,000 physical shops in the market andserves two million small, medium and micro enterprises in the upstream of the industry chain. It isdriven by the integration of trade data, connecting the supply and demand parties in areas ofmanufacturing, demonstrating and transactions, warehousing and logistics, financial credit, marketmanagement, etc., so as to achieve effective and precise allocation of market resources and build atrue, open and integrated digital trade comprehensive service platform.As of the end of the reporting period, there were around 50,000 merchants settled atchinagoods platform, more than 800,000 registered purchasers, the platform product SKUs reached
2.6 million, the number of APP downloads was 2 million, and the accumulative turnover reachedRMB 2.894 billion since the official launch on October 21, 2020. After the official launch, the averagedaily visits exceeded 3.25 million, with a peak of over 5 million. As an important measure of theCompany's digital transformation, the chinagoods platform is an important and effective means forthe Company's transformation, upgrading, and development in the tide of trade digitization andinformation technology progress. It is also a sign of the Company's online-offline market integrationand progress.(iii) Building a global supply chain service systemYiwu market is an important platform connecting the domestic and international, domestic andforeign trade supply chains, and is at the key node of the global small commodity supply chain. Itplays an important role in smoothing the internal circulation, improving the external circulation, andserving the new pattern of "dual circulation".
In recent years, the contradiction between supply and demand of global warehousing logisticshas become increasingly prominent. As the basis of dual circulation, the strategic value of supportingfacilities such as warehousing base and logistics center has become more and more prominent. Atthe same time, the global trade ecological chain is imperfect, all links are fragmented, the trends of
smaller orders, fragmentation and digitization of global market procurement is obvious. Theadjustment of the global industrial pattern is accelerating, and the formation of multi-centralization isalso accelerating. All these put forward new requirements for the improvement Yiwu market supplychain, and also expand new space for the Company's market innovation and development.During the reporting period, the Company accelerated the construction of a global supply chainsystem. Accelerated the construction of digital trade hubs, accelerated the deployment of overseaswarehouses, overseas logistics distribution centers, overseas sub-markets and other overseasprojects, and extended the market industry chain, service chain, and value chain. The company hasdeployed 53 overseas warehouses, completed overseas warehouses cooperation projects of morethan 250,000 square meters, and deployed more than 450,000 square meters of local and overseaswarehouses accumutively. "Yiwu Goods" "ICMALL" have more than 300 offline outlets. "CCCL"logistics park, the mall warehouse park commercial and trade station project and Yiwu mall supplychain base Shangbo cloud warehouse will soon be completed. A large domestic and foreignwarehousing system has takenshape. CCCL has launched 105 international logistics dedicated lines,covering more than 600 cities in 66 countries including Russia, the United States, Thailand, Malaysia,etc. and a global supply chain service system serving the "dual circulation" has taken shape. Theconstruction of a global supply chain service system helps to move Yiwu market, commodities andlogistics to the "door, computer and mobile phone" of foreign businessmen, helping the merchants toquickly grab orders and expand the market, and helping foreign purchasers and suppliers to beconnected with the Chinese market at a lower threshold and more conveniently.By unifying storage information platforms and authorizing access to chinagoods platform, theCompany helps to solve the key issues that the businesses face and reduce foreign trade risks.Currently most of Yiwu's export trade is credit sales, and the merchants face the risk ofuncontrollable rights of goods. In the context of COVID-19 epidemic, in order to reduce the risk offoreign trade, further reduce the credit risk, and enhance the export trade confidence of themerchants, chinagoods and CCCL launched the innovative product "Money Treasure" to guaranteethe payment for goods in the market through the digital contract-performing capabilities and to bettercontrol the goods through overseas warehouses, so as to solve the problem of market purchasetrade balance guarantee for merchants and reduce the risk of credit sales.
(iv) Coordinated development of related businesses
During the reporting period, the exhibition, hotel and advertising business sectors of theCompany developed in a coordinated way, and the business situation was stable. The online andoffline integration of the exhibition sector has been promoted, the online exhibition platform wasinnovatively developed, the online Hardware Fair was successfully held, and YIEXPO, Forest Expoand Cultural Tourism Fair online and offline activities were integrated, and six national YIEXPOroadshows was completed. The business of the hotel sector has gradually recovered, and theimpact of COVID-19 epidemic has been gradually eliminated. The advertising business wasdeveloped steadily, and operating income increased steadily.
II. Operating status during the reporting period
In 2020, in the face of sudden COVID-19 epidemic, the Company faced the difficulties and tookactive measures. While take measures to prevent and control epidemic in an orderly manner, theCompany focused on the business plan and objectives of 2020, continued reforming and innovating,and actively responded to the challenges. In 2020, the Company achieved operating income of RMB
3.726 billion, with a decrease of RMB 317 million or 7.84% compared with the prior year; the totalprofit was RMB 1.422 billion, with a decrease of RMB 211 million or 12.93% over the prior year.(i) Analysis of main business
1. Analysis of changes in related accounting subjects of income statement and cash
flow statement
Unit: RMB
Item | Year 2020 | Year 2019 | YoY change (%) |
Operating income | 3,725,686,100.39 | 4,042,767,521.18 | -7.84 |
Cost of sales | 1,811,136,443.99 | 1,696,954,129.50 | 6.73 |
Selling expenses | 241,889,186.44 | 157,579,827.86 | 53.5 |
General and administrative expenses | 377,516,845.45 | 281,213,431.82 | 34.25 |
R&D expenses | 18,507,626.99 | 18,268,182.12 | 1.31 |
Financial expenses | 182,089,699.33 | 227,559,106.75 | -19.98 |
Net cash flow from operating activities | 828,788,261.95 | -1,538,907,257.55 | Not applicable |
Net cash flow from investing activities | 636,113,348.17 | 102,151,452.90 | 522.72 |
Net cash flow from financing activities | -2,855,836,638.69 | 2,231,497,012.84 | -227.98 |
2. Revenue and cost analysis
√Applicable □Not applicable
None.
(1). Main businesses by industry, product and region
Unit: RMB10,000
Main business by industry | ||||||
By industry | Operating income | Cost of sales | Gross profit margin (%) | Change of operating revenue YoY (%) | Change of operating cost YoY (%) | Change of gross profit margin YoY |
Market operation | 212,713.55 | 89,835.59 | 57.77 | 0.31 | -1.74 | Up 0.89 ppt |
Sales of goods | 38,378.68 | 38,201.55 | 0.46 | 459.44 | 443.24 | Up 2.97 ppt |
Real estate sales | 5,903.79 | 2,537.33 | 57.02 | -90.87 | -91.22 | Up 1.67 ppt |
Hotel service | 14,949.73 | 14,388.49 | 3.75 | -29.27 | -25.95 | Down 4.32 ppt |
Exhibition and advertising | 9,634.12 | 10,631.57 | -10.35 | -24.08 | -8.15 | Down 19.13 ppt |
Other services | 24,356.66 | 14,001.31 | 42.52 | 101.76 | 210.91 | Down 20.18 ppt |
Subtotal | 305,936.53 | 169,595.84 | 44.57 | -7.15 | 4.14 | Down 6.01 ppt |
Costs by industry | |||||||
By industry | Cost components | Amount in the current period | Proportion in the total cost in the current period (%) | Amount in the same period of prior year | Proportion in the total cost in the prior corresponding period (%) | Proportion change YoY (%) | Explanation |
Market operation | Depreciation and amortization | 46,198.46 | 27.24 | 47,050.52 | 28.89 | -1.81 |
Market operation | Wages and benefits | 20,669.29 | 12.19 | 24,275.60 | 14.91 | -14.86 | |
Market operation | Other costs | 22,967.84 | 13.54 | 20,100.35 | 12.34 | 14.27 | |
Sales of goods | Cost of product sales | 38,201.55 | 22.53 | 7,032.23 | 4.32 | 443.24 | Due to the increase of product sales business |
Real estate sales | Cost of real estate sales | 2,537.3 | 1.5 | 28,882.87 | 17.74 | -91.22 | |
Hotel service | Depreciation and amortization | 2,557.02 | 1.51 | 6,151.87 | 3.78 | -58.44 | Depreciation of some equipment is due |
Hotel service | Cost of food and beverage raw materials | 5,969.28 | 3.52 | 5,206.65 | 3.2 | 14.65 | |
Hotel service | Wages and benefits | 4,077.68 | 2.4 | 5,689.35 | 3.49 | -28.33 | |
Hotel service | Material and fuel consumption | 716.93 | 0.42 | 864.78 | 0.53 | -17.1 | |
Hotel service | Other costs | 1,067.58 | 0.63 | 1,517.72 | 0.93 | -29.66 | |
Exhibition advertising service | Depreciation and amortization | 3,771.71 | 2.22 | 3,458.66 | 2.12 | 9.05 | |
Exhibition advertising service | Exhibition and advertising cost | 5,172.71 | 3.05 | 6,390.66 | 3.92 | -19.06 | |
Exhibition advertising service | Other costs | 1,687.16 | 0.99 | 1,725.77 | 1.06 | -2.24 | |
Other services | Property management cost | 2,237.42 | 1.32 | 3,074.06 | 1.89 | -27.22 | |
Other services | Network transformation and service | 7,975.07 | 4.7 | 1,382.92 | 0.85 | 476.68 | It is mainly the operating expenses of new platforms |
Other services | Other costs | 3,788.81 | 2.23 | 46.27 | 0.03 | 8,088.48 | Increase in commercial building operating costs |
Total | 169,595.84 | 99.99 | 162,850.28 | 100.00 | 4.14 |
3. Costs
√Applicable □Not applicable
Unit: RMB10,000
Item | Year 2020 | Year 2019 | Change YoY | Proportion change YoY (%) | Explanation on changes |
Selling expenses | 24,188.92 | 15,757.98 | 8,430.94 | 53.50 |
General and administrative expenses | 37,751.68 | 28,121.34 | 9,630.34 | 34.25 | Mainly due to the increase in labor costs, consulting expenses for intermediary agencies compared with the prior year, and new epidemic prevention and control costs, etc. |
R&D expenses | 1,850.76 | 1,826.82 | 23.94 | 1.31 | |
Financial expenses | 18,208.97 | 22,755.91 | -4,546.94 | -19.98 | Interest bearing liabilities decreased and interest expenses decreased |
Income taxes | 49,975.50 | 38,391.52 | 11,583.98 | 30.17 |
Item | Year 2020 | Year 2019 | Change YoY | Proportion change YoY (%) |
Staff expenses and work clothes | 24,502.91 | 21,461.39 | 3,041.52 | 14.17 |
Advertising fees | 9,441.10 | 8,114.32 | 1,326.78 | 16.35 |
Security and insurance costs | 2,711.54 | 2,766.22 | -54.68 | -1.98 |
R&D expenses | 1,850.76 | 1,826.82 | 23.94 | 1.31 |
Depreciation and amortization | 3,868.23 | 1,592.83 | 2,275.40 | 142.85 |
Promotion and investment promotion | 10,567.68 | 3,798.86 | 6,768.82 | 178.18 |
Other expenses | 4,320.47 | 1,292.93 | 3,027.54 | 234.16 |
Intermediary expenses | 3,852.94 | 2,558.46 | 1,294.48 | 50.60 |
Office expenses | 2,003.44 | 1,760.02 | 243.42 | 13.83 |
Water, electricity and fuel consumption | 365.14 | 372.05 | -6.91 | -1.86 |
Rent and property management | 307.15 | 162.24 | 144.91 | 89.32 |
Subtotal of management, R&D and sales expenses | 63,791.36 | 45,706.14 | 18,085.22 | 39.57 |
Expended R&D investment in this period | 1,850.76 |
Capitalized R&D investment in this period | 2,222.31 |
Total R&D investment | 4,073.07 |
Total R&D investment as a percentage of operating income (%) | 1.09 |
Number of R&D personnel | 95 |
Number of R&D personnel as a percentage of the Company’s total personnel number (%) | 2.11 |
Proportion of capitalization of R&D investment (%) | 54.56 |
Item | 2020 | 2019 | YoY change |
Net cash flow (used)/generated from operating activities | 82,878.83 | -153,890.73 | 236,769.56 |
Net cash flow (used)/generated from investment activities | 63,611.33 | 10,215.15 | 53,396.18 |
Net cash flow (used)/generated from financing activities | -285,583.66 | 223,149.70 | -508,733.36 |
Net (decrease)/increase in cash and cash equivalents | -139,406.97 | 79,455.22 | -218,862.19 |
compared with that in 2019, and the net cash inflow of financial aid in 2020 decreased by RMB 1.488billion compared with that in 2019.
3. The net cash flow from financing activities in 2020 decreased by RMB 5.087 billion comparedwith that in 2019. In 2020, the net inflow from financing activities decreased by RMB 5.405 billioncompared with that in 2019, the cash paid for dividend, profit distribution or interest paymentincreased by RMB 235 million compared with that in 2019, and the cash received from investmentincreased by RMB 148 million compared with that in 2019.
(ii) Material changes to profits caused by non-main businesses
□Applicable √Not applicable
(iii) Analysis of assets and liabilities
√Applicable □Not applicable
1. Assets and liabilities
Unit: RMB10,000
Project | Closing blance in the current period | Proportion of the closing balance to total assets in the current period | Closing balance in the prior corresponding period | Proportion of the closing balance to total assets in the prior corresponding period (%) | Proportion change of the closing balance YoY (%) | Reasons for change |
Total assets | 2,875,012.71 | 100.00 | 3,132,323.41 | 100.00 | -8.21 | |
Monetary capital | 561,264.29 | 19.52 | 648,640.87 | 20.71 | -13.47 | |
Held-for-trading financial assets | 5,171.27 | 0.18 | 3,807.77 | 0.12 | 35.81 | Mainly due to the increase in equity instruments investment |
Accounts Receivable | 15,357.35 | 0.53 | 1,603.11 | 0.05 | 857.97 | Mainly due to the growth of the product sales and the increase in accounts receivables |
Prepayments | 10,518.75 | 0.37 | 4,467.82 | 0.14 | 135.43 | Mainly due to the growth of the product sales and the increase in advance payment |
Other receivables | 270,847.81 | 9.42 | 139,722.84 | 4.46 | 93.85 | Mainly due to the increase in financial aid |
receivables | ||||||
Inventories | 132,946.77 | 4.62 | 429,606.14 | 13.72 | -69.05 | 51% equity disposal of CCCP and Pujiang Green Valley and stock transfer out in the current period |
Other current assets | 17,972.47 | 0.63 | 309,995.59 | 9.90 | -94.2 | It is mainly due to the transfer out of prepaid land transfer fees at the end of prior year |
Long-term receivables | 12,675.66 | 0.44 | 6,125.00 | 0.20 | 106.95 | Newly added financial aid receivables from Dubai Project Company this year |
Long-term equity investment | 383,289.75 | 13.33 | 177,142.01 | 5.66 | 116.37 | The accounting method of remaining 49% of CCCP and Pujiang Green Valley were converted from the cost method to the equity method in the current period |
Other equity instruments investment | 66,225.63 | 2.30 | 64,218.80 | 2.05 | 3.12 | |
Other non-current financial assets | 152,392.53 | 5.30 | 151,944.94 | 4.85 | 0.29 | |
Investment real estate | 196,042.63 | 6.82 | 186,321.84 | 5.95 | 5.22 | |
Property, plant and equipment | 523,429.38 | 18.21 | 478,381.91 | 15.27 | 9.42 | Yixi supporting project completed and transferred in |
Construction in progress | 98,289.19 | 3.42 | 86,575.46 | 2.76 | 13.53 | Yixi supporting project completed and |
transferred out, newly added integrated free trade zone and other projects | ||||||
Intangible assets | 390,078.10 | 13.57 | 345,613.72 | 11.03 | 12.87 | Newly added land for International Land and Port Logistics Park |
Development expenditures | 2,222.31 | 0.08 | - | - | - | |
Long-term deferred expenses | 11,072.87 | 0.39 | 13,950.24 | 0.45 | -20.63 | |
Deferred tax assets | 9,966.43 | 0.35 | 18,040.48 | 0.58 | -44.76 | Transfer out after re-calculation |
Other non-current assets | 15,249.52 | 0.53 | 66,164.87 | 2.11 | -76.95 | It is mainly due to the transfer to investment real estate after the delivery of Zhongfu Building |
Total liabilities | 1,517,541.78 | 52.78 | 1,823,893.48 | 58.23 | -16.80 | |
Short-term loans | 125,717.94 | 4.37 | 417,890.37 | 13.34 | -69.92 | Repayment of due borrowings |
Accounts payable | 63,646.38 | 2.21 | 52,524.15 | 1.68 | 21.18 | |
Advances from customers | 11,275.29 | 0.39 | 450,845.51 | 14.39 | -97.5 | Under the new income standard, the accounting subjects were reclassified and adjusted out, and the pre-collected house sale payment decreased after the equity transfer of the real estate sector |
Contract liabilities | 244,221.18 | 8.49 | 0.00 | Under the new income standard, the accounting |
subjects were reclassified and adjusted in | ||||||
Employee compensations payable | 16,149.90 | 0.56 | 19,717.44 | 0.63 | -18.09 | |
Taxes payable | 49,540.05 | 1.72 | 28,018.43 | 0.89 | 76.81 | Increase in accrued taxes and fees |
Other payables | 164,634.56 | 5.73 | 90,948.31 | 2.90 | 81.02 | Mainly due to the increase of investment allocation to be confirmed |
Non-current liabilities due within one year | 131,502.66 | 4.57 | 27,033.24 | 0.86 | 386.45 | It refers to the transfer in of medium-term notes due within one year |
Other current liabilities | 302,360.80 | 10.52 | 202,301.21 | 6.46 | 49.46 | It is the increase of ultra-short-term financing issued in this period |
Long- term loans | 28,200.00 | 0.98 | 53,069.43 | 1.69 | -46.86 | Repayment of due borrowings |
Bonds payable | 355,216.17 | 12.36 | 456,429.14 | 14.57 | -22.17 | It refers to the transfer out of medium-term notes due within one year |
Estimated liabilities | 11,062.03 | 0.38 | 11,062.03 | 0.35 | - | |
Deferred incomes | 2,654.53 | 0.09 | 2,796.68 | 0.09 | -5.08 | |
Deferred income tax liabilities | 11,360.29 | 0.40 | 11,257.43 | 0.36 | 0.91 | |
Other non-current liabilities | 0.00 | 0.00 | 0.11 | 0.00 | -100 |
Item | Yaer 2020 | Year 2019 |
Monetary capital | 60.58 | 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 | 720,429,971.58 | 776,626,013.62 |
International Exhibition (Yiwu) Co., Ltd. decreased by RMB 2,654,200 in liquidation, and ZhejiangHuajie’s equity decreased by RMB 603,600 due to accounting method converted from equity methodto cost method.
3. Accrued net investment income of RMB 34,968,600 of long-term equity investment usingequity methodDuring the reporting period, investment in other equity instruments increased by RMB20,068,400 year-on-year, which was due to the gains and losses arising from Shenwan HongyuanGroup Co., Ltd. fair value change of RMB 20,068,400 during the reporting period.Financial assets held for trading during the reporting period increased by RMB 13.635 millionyear-on-year, of which: newly added RMB 51,706,100 for Oriental International EntrepreneurshipCo., Ltd., Fujian Zongteng Network Co., Ltd. decreased by RMB 32,076,500 after debt-to-equityswap, and bank wealth management product redemptions decreased by RMB 6 million.Other non-current financial assets during the reporting period increased by RMB 4,475,900year-on-year, of which: RMB 32,076,500 from Fujian Zongteng Network Co., Ltd., RMB 1.5 millionfrom Chengjianbao (Beijing) Consulting Service Co., Ltd., RMB 20 million from Yiwu ShanyueEquity Investment Partnership (Limited Partnership); RMB 11,269,200 recovered investment fromJiaxing Zhehua Zijing Investment Partnership (Limited Partnership), RMB 3,169,500 recoveredinvestment from Suzhou Yiyun Venture Capital Center (Limited Partnership); minus RMB34,662,000 gains and losses arising from changes in fair value.
Main investments are as follows:
Unit: RMB10,000
Investment object | Main businesses of the investment object | Cost of investment | Book value at the end of December 2020 | Shareholding ratio (%) |
Yiwu Shanglv Investment Development Co., Ltd. | Industry investment, investment management (excluding financial businesses such as securities and futures), property service, design, production 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 | 39,200.00 | 36,583.08 | 49 |
Yiwu Rongshang Property Co., Ltd. | Real estate development and operation, landscape engineering and decoration engineering | 5,000.00 | 2,231.91 | 49 |
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 | 1,144.48 | 24 |
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 | 202.26 | 20 |
Jiangsu Jin’an Hefeng Network Technology Co., Ltd. | Wholesale and retail; and e-commerce technology development and technical services | 200.00 | 100.74 | 40 |
Yiwu China Commodities City Creative Design and Development | 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 | 98.00 | 102.96 | 49 |
Services Co., Ltd. | necessities; and exhibition and display services | |||
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 | 354.18 | 45 |
Hangzhou Binjiang Shangbo Property Development Co., Ltd. | Real estate development and operation | 2,450.00 | 15,415.23 | 49 |
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 | 12,420.00 | 7,139.66 | 23 |
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 | 37,132.07 | 26 |
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 guarantee, agency wealth management, fundraising (financing) from the public and other financial businesses) | 5,000.00 | 7,807.26 | 10.42 |
Yiwu Huishang Redbud 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) | 5,000.00 | 4,828.12 | 9.43 |
Yiwu Meipinshu Supply Chain Management Co., Ltd. | Supply chain management service, software development, and business management consulting | 1,820.14 | 1,790.23 | 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 | 671.85 | 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 | 128.42 | 40 |
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 | 101.50 | 45 |
Zhejiang YXE Supply Chain Management Co., Ltd. | Supply chain management service; global trade & domestic trade; and wholesale & retail | 80.00 | 31.46 | 25 |
Hunan Shang Yun Zhonghe Scientific Research and Trade Co., Ltd. | Wholesale & retail; and development of e-commerce platforms and related services | 350.00 | 35 | |
Henan Yiwugou Technology Development Co., Ltd. | Wholesale & retail; and development, business expansion and technical service of e-commerce | 200.00 | 40 | |
Yiwu China Commodities City Investment Management Co., Ltd. | Investment management | 980.00 | 49 | |
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 financial businesses) | 69,000.00 | 68,975.68 | 49.98 |
Shenwan Hongyuan Group Co., Ltd. | Securities brokerage, securities investment consulting and securities underwriting & sponsorship | 55,362.54 | 66,225.63 | 0.501 |
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 | 1,510.00 | 10 |
Zhejiang Yiwu Tap Water Co., Ltd. | Centralized water supply, and construction of the auxiliary pipe network for tap water supply | 207.29 | 2,320.60 | 2.83 |
Beijing Yiyun Clean Technology Venture Capital Co., Ltd. | Venture capital, agency of other VC institutions or individuals’ VC business | 1,891.82 | 360.00 | 15 |
Suzhou Yiyun Venture Capital Center (limited partnership) | Venture capital and related consulting business | 956.56 | 12,351.95 | 11.71 |
Shenzhen Tiantu Investment Management Co., Ltd. | PE investment management in the consumer goods industry | 11,438.62 | 4,812.23 | 1.54 |
Beijing Redbud Huarong Equity Investment Partnership | Asset management, investment management and investment consulting | 10,000.00 | 17,557.86 | 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 | 5,167.50 | 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 | 8,873.08 | 12,016.76 | 17.51 |
not be engaged in the absorption of deposits, financial guarantee, agency wealth management, fundraising (financing) from the public and other financial businesses] | ||||
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 | 61.64 | 8.27 |
Nantong Redbud Huatong Equity Investment Partnership (limited partnership) | Equity investment; investment consulting; and investment management | 20,000.00 | 25,484.32 | 21.05 |
Yiwu Shangfu Chuangzhi Investment Center (limited partnership) | Asset management, investment management, and investment consulting service | 61,751.14 | 61,751.14 | 74.99 |
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 |
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 | 4,128.54 | 0.6863 |
Oriental International Entrepreneurship Co., Ltd. | Food business; self-operated and agent for the import and export of products and technologies other than those that are uniformly organized or approved by the state, "three forms of OEM and compensation trades" and processing of imported materials, development, production, and sales of biological, pharmaceutical and chemical products, international freight forwarding agent, industrial and high-tech industry investment, counter trade, transit trade and service trade, sales: clothing and apparel, shoes and hats, knitwear, leather products, luggage and bags, daily necessities; the second-category medical devices sales. | 5,000.00 | 5,170.61 | 0.72 |
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 | 49.00 | |
Cheng Jian Bao (Beijing) Consulting Services Co., Ltd. | Economic and trade consulting; market research; corporate management consulting; public relations services; corporate planning and design; advertising designing, producing, agency, and publishing; corporate management; conference services; translation services; technology development, technology promotion, technology transfer, technology consulting, technical service; organizing exhibition activities | 150.00 | 150.00 | 15.00 |
Yiwu Digital Port Technology Co., Ltd. | Communication equipment repair; communication equipment sales; communication equipment manufacturing; computer and communication equipment leasing; information technology equipment sales; computer software and hardware and auxiliary equipment wholesale; computer software and hardware and auxiliary equipment retail; information consulting services (excluding licensing information consulting services) ; socio-economic consulting services; advertising design, agency; advertising production; advertising publishing (excluding channels such as radio, television, newspaper publishing units); technical services, technology development, technology consulting, technology exchange, technology transfer, technology promotion; software development; sales of chemical product (excluding licensed chemical products); business agent services; general goods warehousing services (excluding hazardous chemicals and other items that require license approval) | 765.00 | 750.34 | 51.00 |
Yiwu China Commodities City Property Development Co., Ltd. | Real estate development, sales, leasing (used together with valid qualification certificates), real estate brokerage services, interior decoration; landscaping | 149,354.77 | 147,157.30 | 49.00 |
Pujiang Lvgu Property Co., Ltd. | Real estate development, sales, leasing and property management | 37,365.79 | 37,967.25 | 49.00 |
Yiwu Shanyue Equity Investment Partnership (limited partnership) | Equity investment; equity investment fund management, investment consulting, and operation and management of state-owned assets | 2,000.00 | 2,000.00 | 39.60 |
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 | 2,871.10 | 2,363.94 | 30.00 |
Investment object | Main businesses of the inverstment object | Actual investment amount during the reporting period (RMB10,000) | Proportion in the equity of the inverstment object as of the end of the reporting period | Remarks |
Oriental International Entrepreneurship Co., Ltd. | Food business; self-operated and agent for the import and export of products and technologies other than those that are uniformly organized or approved by the state, "three forms of OEM and compensation trades" and processing of imported materials, development, production, and sales of biological, pharmaceutical and chemical products, international freight forwarding agent, industrial and high-tech industry investment, counter trade, transit trade and service trade, sales: clothing and apparel, shoes and hats, knitwear, leather products, luggage and bags, daily necessities; the second-category medical devices sales. | 5,000.00 | 0.72 | The subscribed capital was RMB 50 million, and as of the end of the reporting period, the actual capital contributed was RMB 50 million |
Yiwu Guoshen | Real estate development, sale and lease; real | 2,000.00 | 49.00 | It subscribed for |
Shangbo Property Co., Ltd. | estate brokerage service, interior decoration service; and landscaping service | RMB20million of capital contribution and had contributed RMB20million 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; corporate management consulting; public relations services; corporate planning and design; advertising designing, producing, agency, and publishing; corporate management; conference services; translation services; technology development, technology promotion, technology transfer, technology consulting, technical service; organizing exhibition activities | 150.00 | 15.00 | It subscribed for RMB1.5million of capital contribution and had contributed RMB1.5million of paid-in capital as of the end of the reporting period |
Yiwu Digital Port Technology Co., Ltd. | Communication equipment repair; communication equipment sales; communication equipment manufacturing; computer and communication equipment leasing; information technology equipment sales; computer software and hardware and auxiliary equipment wholesale; computer software and hardware and auxiliary equipment retail; information consulting services (excluding licensing information consulting services) ; socio-economic consulting services; advertising design, agency; advertising production; advertising publishing (excluding channels such as radio, television, newspaper publishing units); technical services, technology development, technology consulting, technology exchange, technology transfer, technology promotion; software development; sales of chemical product (excluding licensed chemical products); business agent services; general goods warehousing services (excluding hazardous chemicals and other items that require license approval) | 765.00 | 51.00 | The subscribed capital is RMB 25.5 million, and as of the end of the reporting period, the actual capital contributed was RMB 7.65 million |
Yiwu Shanyue Equity Investment Partnership (limited partnership) | Equity investment; equity investment fund management, investment consulting, and operation and management of state-owned assets | 2,000.00 | 39.60 | It subscribed for RMB20million of capital contribution and had contributed RMB20million of paid-in capital as of the end of the reporting period |
Project | Project amount (RMB 10 thousand) | Progress | Amount invested during the reporting period (RMB 10 thousand) | Accumulated actual amount inversted (RMB 10 thousand) |
West Yiwu International Means of Production Market Auxiliary Project | 133,916.00 | The office building was delivered, the underground space was completed and transferred to fixed assets, the hotel decoration | 10,855.63 | 96,108.48 |
Haicheng Yiwu China Commodities City Commerce Phase I Project—Hotel Project | 180,000.00 | The main work was under construction | 3,229.05 | |
Yiwu Shangbo | 62,007.00 | Completed | 6,562.14 | 43,613.30 |
Phase I Project of Yiwu Integrated Free Trade Zone | 448,572.00 | The first phase of the customs closure and fence facilities, the overpass bridge project, and the first phase of customs supervision informatizationproject completed | 50,579.23 | 50,579.23 |
Commercial Station of Yiwu Mall Storehouse Park | 19,000.00 | The preliminary completion inspection completed | 8,989.41 | 8,989.41 |
East Parking Building Project of Zone 2 of Yiwu International Trade City | 60,706.00 | The acceptance inspection of earthwork and foundation pit support engineering work completed, the general contracting bidding work completed and on-site construction under in progress | 8,673.29 | 8,673.29 |
Yiwu Yindu Hotel renovation project | 25,000.00 | The demolition of interior decoration was basically completed, the curtain wall construction plan passed experts' review, the Yindu Hotel renovation scheme passed the municipal planning review meeting and was submitted to the Bureau of Natural Resources and Planning for approval, and the general contracting bidding was completed | 5,555.37 | 5,555.37 |
Binwang Market Culture Creative Industry Park Project | 50,756.00 | Completed | 5,889.61 | 20,647.52 |
Name | Value of initial investment cost | Opening Book value | Closing book value | Profit and loss during the reporting period | Accounting item | Source of funds |
Shenzhen Zhaowei Electromechanical Co., Ltd. | 0.10 | 0.10 | Held-for-trading financial assets | Self-owned funds | ||
Changchun Jida Zhengyuan | 0.20 | 0.20 | Held-for-trading financial assets | Self-owned funds |
Information Technology Co., Ltd. | ||||||
Hebei Zhongci Electronic Technology Co., Ltd. | 0.17 | 0.17 | Held-for-trading financial assets | Self-owned funds | ||
Zu Ming Bean Products Co., Ltd. | 0.20 | 0.20 | Held-for-trading financial assets | Self-owned funds | ||
Oriental International Entrepreneurship Co., Ltd. | 5,000.00 | 5,170.60 | 170.60 | Held-for-trading financial assets | Self-owned funds | |
Shenyin & Wanguo Securities Co., Ltd. | 55,362.54 | 64,218.80 | 66,225.63 | 1,003.42 | Other equity instruments investment | Self-owned funds |
Jiaxing Zhehua Zijing Investment Partnership (limited partnership) | 10,000.00 | 12,148.20 | 12,016.76 | 995.48 | Other non-current financial assets | Self-owned funds |
Beijing Redbud Huarong Equity Investment Co., Ltd. | 10,000.00 | 15,275.45 | 17,557.86 | 2,282.41 | Other non-current financial assets | Self-owned funds |
Nantong Redbud Huatong Equity Investment Partnership (limited partnership) | 20,000.00 | 22,809.21 | 25,484.32 | 2,675.11 | Other non-current financial assets | Self-owned funds |
Beijing Wudaokou Education Technology Co., Ltd. | 500.00 | 67.32 | 61.64 | -5.68 | Other non-current financial assets | Self-owned funds |
Zhejiang Yiwu Tap Water Co., Ltd. | 100.00 | 2,264.00 | 2,320.60 | 56.60 | Other non-current financial assets | Self-owned funds |
Yiwu Water Resources Development Co., Ltd. | 200.00 | 1,915.00 | 1,510.00 | -405.00 | Other non-current financial assets | Self-owned funds |
Suzhou Yiyun Venture Capital Center (limited partnership) | 4,000.00 | 22,336.51 | 12,351.95 | -9,667.61 | Other non-current financial assets | Self-owned funds |
Beijing Yiyun Clean Technology Venture Capital Co., Ltd. | 6,091.82 | 480.00 | 360.00 | -120.00 | Other non-current financial assets | Self-owned funds |
Mashang Consumer Finance Co., Ltd. | 3,000.00 | 3,772.50 | 5,167.50 | 1,395.00 | Other non-current financial assets | Self-owned funds |
Shenzhen Tiantu Investment Management Co., Ltd. | 11,802.00 | 6,405.63 | 4,812.22 | -1,593.41 | Other non-current financial assets | Self-owned funds |
Yiwu Shanfeng Investment Partnership (limited partnership) | 2,600.00 | 2,600.00 | 2,600.00 | - | Other non-current financial assets | Self-owned funds |
Cheng Jian Bao (Beijing) Consulting Services Co., Ltd. | 150.00 | 150.00 | 150.00 | Other non-current financial assets | Self-owned funds | |
from Yiwu Shanyue Equity Investment Partnership (Limited Partnership) | 2,000.00 | 2,000.00 | Other non-current financial assets | Self-owned funds | ||
Yiwu Smart Transport Co., Ltd. | 120.00 | 120.00 | 120.00 | - | Other non-current financial assets | Self-owned funds |
Fujian Zongteng Network Co., Ltd. | 3,000.00 | 3,207.65 | 4,128.53 | 920.88 | 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 |
Company name | Business scope | Registered capital | Total assets | Net assets | Net profit |
Yiwu China | Real estate development and | 250,000.00 | 815,721.15 | 308,434.92 | -1,853.66 |
Commodities City Property Development Co., Ltd. | sale | ||||
Pujiang Lvgu Property Co., Ltd. | Real estate development and sale | 70,000.00 | 171,162.12 | 75,559.79 | 3,561.41 |
Hangzhou Shangbo Nanxing Property Co., Ltd. | Real estate development and sale | 5,000.00 | 1,124.21 | 7,993.23 | -1,331.93 |
Haicheng Yiwu China Commodities City Investment Development Co., Ltd. | Industry investment, investment management, property service, market development and operation, market auxiliary service, real estate development, sale and lease, design, production and agency of domestic advertising, and operation and management of parking garages | 60,000.00 | 230,315.26 | -71,368.12 | -13,339.37 |
Yiwu Shangbo Property Co., Ltd. | Real estate development and sale | 30,000.00 | 46,438.42 | 34,862.89 | -1,764.78 |
Yiwu Commodities City Gonglian Property Co., Ltd. | Real estate development and sale | 20,000.00 | 16,512.81 | 15,837.85 | 56.44 |
Yiwu China Commodities City Information Technology Co., Ltd. | R&D of computer and multimedia software | 20,000.00 | 22,889.04 | 19,964.71 | -226.36 |
Zhejiang Yiwugou E-commerce Co., Ltd. | Computer software, multimedia technologies, computer network and application, and wholesale & retail | 10,000.00 | 11,167.57 | 8,486.95 | 669.01 |
Yiwu China Commodities City Payment Network Technology Co., Ltd. | R&D of computer and multimedia software | 15,000.00 | 12,332.30 | 12,280.61 | -13.42 |
Yiwu China Commodities City Credit Investigation Co., Ltd. | Business credit investigation and related businesses; information market consulting, investment consulting, and information technology service (excluding Internet information service) | 1,000.00 | 1,169.31 | 835.21 | 144.87 |
Yiwu China Commodities City Exhibition Co., Ltd. | Exhibition service | 1,800.00 | 7,254.22 | 4,393.09 | 1,314.43 |
Yiwu China Commodities City Logistics and Warehousing Co., Ltd. | Ordinary cargo transport and goods warehousing | 10,000.00 | 1,534.25 | 899.98 | -448.83 |
Yiwu China Commodities City Advertising Co., Ld. | Designing, producing, acting as an agent for, and publishing various domestic advertisements | 1,000.00 | 6,220.00 | 3,614.34 | 1,832.99 |
Yiwu China Commodities City Supply Chain Management Co., Ltd. | Supply chain management service | 10,000.00 | 7,990.56 | -2,486.30 | -893.97 |
Yiwu China Commodities City Import and Export Co., Ltd. | Domestic trade and international trade | 10,000.00 | 24,739.41 | -33.00 | -4,011.48 |
Yiwu China Commodities City Financial Holdings Co., Ltd. | Enterprise's own capital investment, asset management, investment consulting services, investment management services | 400,000.00 | 223,255.30 | 209,635.85 | 8,017.41 |
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 | 11,503.60 | 8,966.69 | -276.73 |
Yiwu China Commodities City Overseas Investment and Development Co., Ltd. | Overseas industry investment, and construction and operation of overseas shopping malls | 10,000.00 | 10,128.92 | 9,046.14 | -460.76 |
Yiwu China Commodities City Assets Operation and Management Co., Ltd. | Assets operation and management, real estate property management, and consulting service | 1,000.00 | 4,164.37 | -140.12 | -621.37 |
Yiwu Shanglv Investment 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 | 155,755.05 | 77,994.94 | 3,513.97 |
Hangzhou Binjiang Shangbo Property Development Co., Ltd. | Real estate development and sale | 5,000.00 | 45,029.52 | 32,241.90 | 3,463.97 |
Yiwu Rongshang Property Co., Ltd. | Real estate development and sale | 10,204.08 | 679,421.06 | 4,554.91 | -1,239.13 |
Yiwu Chuangcheng Property Co., Ltd. | Real estate development and sale | 8,333.33 | 462,106.61 | 4,768.66 | -2,758.63 |
Yiwu Huishang Micro-finance Co., Ltd. | Micro loans | 54,000.00 | 31,699.29 | 31,223.84 | 823.58 |
Zhejiang Chouzhou Financial Lease Co., Ltd. | Financial lease service, and transfer of financial lease assets | 100,000.00 | 1,208,622.24 | 142,565.91 | 15,022.62 |
Yiwu Huishang Zijing Equity Investment Co., Ltd. | Equity investment and related consulting services | 49,000.00 | 82,996.88 | 74,925.69 | -618.41 |
Yiwu Huishang Redbud Phase II Investment Partnership (limited partnership) | Investment management and asset management | 106,100.00 | 64,911.54 | 62,910.54 | -758.36 |
Yiwu Huishang Zijing Capital Management Co., Ltd. | Asset management, investment management, and investment consulting service | 1,000.00 | 1,400.74 | 1,011.28 | 254.54 |
Yiwu Meipinshu Supply Chain Management Co., Ltd. | Supply chain management service | 165.51 | 2,759.03 | 2,163.38 | -749.92 |
Yiwu Hongyi Equity | Investment management, equity | 200,100.00 | 138,160.68 | 138,020.37 | 1,877.25 |
Investment Fund Partnership (limited partnership) | investment, asset management and investment consulting | ||||
Zhejiang Huajie Investment and Development Co., Ltd. | Industry investment, investment management, investment consulting, business information consulting, and asset management services | 50,000.00 | 7,825.65 | 7,718.54 | -366.14 |
European Huajie Investment Development Co., Ltd. | Freight station (yard) operation; warehousing services; goods and technology import and export; supply chain management services; asset management services; corporate management consulting; business information consulting; freight information consulting services; cargo transportation and loading/unloading services; advertising designing, producing, agency, and publishing; exhibition services, etc. | CZK 1,580.00 | 3,364.62 | 1,573.30 | -2,258.68 |
Yiwu Digital Port Technology Co., Ltd. | Communication equipment repair; communication equipment sales; communication equipment manufacturing; computer and communication equipment leasing; information technology equipment sales; computer software and hardware and auxiliary equipment wholesale | 5,000.00 | 1,477.73 | 1,402.28 | -97.72 |
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 | AED 16,800.00 | 46,593.74 | 7,879.81 | -1,216.73 |
Yiwu Guoshen Shangbo Property Co., Ltd. | Real estate development, sale and lease; real estate brokerage service, interior decoration service; and landscaping service | 408,163.00 | 884,955.23 | -4,365.98 | -8,447.61 |
Yiwu China Commodities City Big Data Co., Ltd. | Internet data services; professional design services; intelligent control system integration; computer information technology development, technical consulting, technical services, technology transfer, etc. | 10,000.00 | 23,693.63 | 7,335.82 | -814.46 |
Yiwu Global Yida Logistics Co., Ltd. | International air cargo transport agency; land international freight forwarding agency; international freight forwarding agency, etc. | 5,000.00 | 938.41 | 583.35 | -418.79 |
Yiwu Comprehensive Bonded Zone Operation and Management Co., Ltd. | Property management; low-temperature storage; general goods warehousing services (excluding hazardous chemicals and other items that require license approval); information consulting services; warehousing equipment rental services, etc. | 10,000.00 | 504.83 | 374.55 | -226.94 |
BETTER SILK ROAD RWANDA Ltd | Container handling; land transport-related services; and land transport supporting | RF 27,000.00 | 68.99 | -32.93 | -243.06 |
activities-related business
(viii) Structured entities controlled by the Company
□Applicable √Not applicable
I. Discussion and Analysis of the Company's Future Development(i) Industry Pattern and Trends
√Applicable □Not applicable
In 2020, facing the severe and complex international and domestic situation, especially thesudden COVID-19 epidemic, Yiwu market implemented the “ensure 'six priorities' and stability in sixareas” with “wartime” status and measures, explored new paths for market development, achievedthe capital inflow around the market, and the total volume of public transport of highways, railways,and airlines beginning to increase month-on-month since April 2020. According to the "StatisticalYearbook of China Commodity Trading Market", the total turnover of YIWU CCC market in 2020 wasRMB 162.661 billion.In 2021, epidemic prevention and control, international politics, and global economy areintertwined. Uncertainty and instability of international trade, and restructuring of international tradepattern will become the new normal. At the same time, the signing of RCEP marks the official kick-offof the world's largest free trade area. In this context, the Company will base itself on the positioningas a trade service provider, vigorously promote market innovation and development, and makeevery effort to build an upgraded version of the physical market with "the highest degree ofdigitalization, the best business environment, and the strongest trade service capabilities" so as tobuild up the sixth-generation market and serve the domestic and international dual circulationobjectives. Build up the first digital Integrated Free Trade Zone in China, relying on the full-link andfull-function services formed by the chinagoods platform to empower the physical market, promotethe stability and prosperity of the physical market, and then form a support system driven by twowheels of "online + offline" channels to strengthen the leading position in the market.
(ii) Development strategy of the Company
√Applicable □Not applicable
At the Fifth China-Africa Entrepreneurs Conference, General Secretary Xi Jinping called Yiwuthe "Small Commodity Capital" of the world, pointing out the direction for the development of themarket and the Company. The Company puts forward the development strategy of “taking themarket as the main business, taking the digital as the link, taking the platform as the support,building an international trade comprehensive service provider”.
With the goal of building the world's "Small Commodity Capital" with high quality and highstandards, focusing on the main market business, promoting various resource elements toconcentrate in the main business, opening up all links of the domestic and foreign trade supply chainthrough vigorously developing digital trade, and continuously enhancing and upgrading the core
competitiveness of market and the Company to empower the small commodity industry chain andecosystem, promoting the transformation of the physical market into a global trade service platformfor small, medium and micro enterprises, and the transformation of the Company from a marketmanager to a comprehensive trade service provider.
(iii) Business plan
√Applicable □Not applicable
In 2021, under the premise of strict epidemic prevention and control, the Company will continueto aim at the strategic goal of building "the World's Small Commodity Capital" with high quality andhigh standards, focusing on institutional innovation, digital transformation and internationaldeployment, and strengthening the reform and planning in three major aspects, i.e., the free tradezone, dual circulation and state-owned enterprise reform, accelerating market innovation anddevelopment and the Company transformation and upgrading. Business plan goals of 2021: basedon 2019 performance, operating income growth rate is not less than 75%; earnings per share is notless than RMB 0.20; main business income in 2021 accounts for not less than 90% of operatingincome; GMV of chinagoods platform, which is the innovative business of the Company, is not lessthan RMB 13 billion (the business plan goals of 2021 do not represent the Company's profit forecastand commitment).
1. Market operation
Continuing to maintain a steady and good development trend of the market, stimulating marketvitality, vigorously promoting market innovation and development, and further consolidating the coreadvantages of the market. Innovatively developing the sixth-generation market marked by thenew-type import market and Zone 6 of the International Trade City, building up the largest importedsmall commodity distribution center in China, and accelerating the construction of Zone 6 and eastmarket of Zone 2.
Regarding the construction of the east market of Zone 2: the project is positioned as aspecialized market and equipped with the function of a parking lot. After the completion of the project,it will not only help improve the overall business environment of the International Trade City andexpand the operating area of the specialized market, but also help improve the traffic environmentaround the International Trade City, which will effectively help to enhance the overallcompetitiveness of the International Trade City.
The sixth-generation market is the system integration of the "Scene Forms" of markettransformation and upgrading. It takes the new-type import market and Zone 6 of the International
Trade City as the core symbols to achieve the integration of "export, import and transit trade";achieve online and offline integration, "cloud computing + mobile Internet + intelligent terminal"digital linkage; promote standards and design into the market, and move up to the high end of thevalue chain; integrate "market + manufacturing" to strengthen the support of the real economy;highlight the functions of Yiwu wharf, world commodities base and trade paradise. Strengthening thecharacteristics of "diversified forms, diversified functions, digital transactions, liberalized marketaccess, trade internationalization, and electronic settlement". The construction and promotion of theZone 6 market provide new impetus for promoting innovation and development of the Yiwu marketand building the world's "Small Commodity Capital" with high quality and high standards. Zone 6 ofthe International Trade City is scheduled to start construction in 2021.
2. The level of trade digitization is further improved
Striving to strengthen the chinagoods platform, with chinagoods as the core, linking variousdigital platforms that empower the market, and make the offline trade ecosystem online, forming adigital trade service system with the characteristics of "trade data as the core, credit rating as thebasis, and one-stop performance as the feature". Improving the functions of the chinagoods platform,achieving GMV of RMB 13 billion in the whole year, and cultivating more than 10,000 activemerchants and more than 1,000 core merchants.
Building version 2.0 of market procurement and promoting the digitization of the trade chain.Relying on the chinagoods platform, accelerating the development of "market procurement +cross-border e-commerce", and bringing various participants into the closed loop of digital tradeservices, including market merchants, foreign businessmen, foreign trade companies andcommodity organizers, etc.
Building a digital Integrated Free Trade Zone in an all-round way, achieving "cloudinterconnection" of all elements and digital supervision across the region, exploring new modes andnew formats of digital trade, such as "bonded + live broadcast", "bonded + designated ports +specialized market", and striving to be among the forefront of newly established integrated free tradezones in China within this year.
Improving the functions of the public service platform and exploring new rules of digital tradeservices. Making active efforts to acquire third-party payment license and become digital RMBapplication pilot, promoting the facilitation of trade payment and settlement.
3. Building a global supply chain service system
The core of building a global supply chain service system is to form a closed trade service loopof "Yiwu Goods (ICMALL) + Smart Warehousing (Overseas Warehouses) + CCCL logistics servicechain + Supply Chain Finance", forming the Company's complete service chain and industrial chain,building a global supply chain service system to enhance the competitiveness of the main business,and building the second growth curve of supply chain services.Accelerating the construction of warehousing and logistics system, opening and operating theCCCL logistics park (48 thousand square meters) steadily, and building the bonded warehouse(317,000 square meters) of Yiwu Integrated Free Trade Zone; relying on the large warehousemanagement system, deploying 100 digital cloud warehouses in China and integrating 100 domesticlogistics trunk lines and increasing international logistics dedicated lines to 200; promoting "MoneyTreasure" business steadily.Constructing a closed trade service loop of dual circulation, establishing a "Yiwu Goods" supplyand demand matching and product selection system, cultivating 300 city managers within the year;while at the same time promoting innovation of the RCEP border trade markets and the newcommercial complex project, and realizing the prototype trial operation within the year.
Speeding up international expansion, increasing the market-oriented deployment of overseaswarehouses to more than 120; establishing 10 new "Bring You to China" trade service centers; rentalrate of Dubai project reaching the level of more than 90% and the project being officially opened andoperated within the year; setting up African head office.
4. Platform and brand building
Chinagoods: with the chinagoods platform as the core carrier, building a framework system of"market entities + business platform + service platform + infrastructure", promoting the constructionof national stations and the expansion of cross-border trade business, integrating into theinternational circulation, and building the market trade ecosystem featured with full links, full scenesand digitalization, demonstrating "one platform on the cloud, one network on the ground", achievingthe seamless connection and coordinated development of the online and offline Yiwu market andmaking trade easier.
Taking full advantage of Yiwu market, such as favorable policies related to commodities andtrade service and its logistics, the chinagoods platform will build three core businesses, i.e.,commodity center, sales channel center, and trade service center, to provide both trade parties withone-stop procurement supporting services including commodity demonstrating, trading, exhibitions,hotels, warehousing, etc.
CCCL: in recent years, the scale of market procurement trade has continued to rise, and thetrend of trade fragmentation has become prominent. At the same time, there are some problems inthe market procurement trade logistics industry, such as small-scale business entities, high financialpressures, weak bargaining power with actual carriers such as shipping companies, shipping spacenot guaranteed, insufficient logistics digitization capabilities, insufficient logistics standardization,insufficient supporting logistics infrastructure, etc. In this context, the Company set up CCCL, alogistics and trade platform, to provide digital cross-border logistics solutions for small andmedium-sized foreign trade enterprises. The platform enables online ordering and payment, fullvisualization and 24-hour online customer service. It is positioned to establish a single window foronline fulfillment of Yiwu international logistics service products, achieving the integration of Yiwuinternational logistics resources, forming a price comparison mechanism, providing more convenient,efficient, and low-cost customs clearance logistics services for trade parties, improving the control ofgoods rights in international trade process, and extending the back-end services of market supplychain.Yiwu Goods: Focusing on channel expansion, brand enhancement, supply chain innovation,and trade services, the Company carries out in-depth domestic expansion layout. The Companybuilds a cobweb distribution system and deepen the Yiwu Goods strategy. The Company promotesthe formation of a domestic trade market system dominated by the Yiwu market, undertook bydownstream channels, and mutually beneficial to all parties. At the same time, Yiwu Goods activelydeploys online channels and foreign trade channels, vigorously develops the mode of live broadcaste-commerce, government and corporate procurement and etc., actively promotes foreign tradeexport services, rapidly enhances brand influence, enlarges and strengthens transaction volume,and helps merchants in Yiwu to expand distribution channels, in order to achieve innovativedevelopment of online and offline integration, wholesale and retail linkage, and domestic sales andforeign trade collaboration. Focusing on innovation channels, in-depth expansion of operations, newproduct development, design and creativity empowerment, explosive product creation, brandplanning and dissemination, the Company has devoted efforts to make Yiwu's small commodityindustry chain intensive, digitalized, standardized, and branded. The Company promotes theoptimization and upgrading of the small commodity industry structure and build a world-renownedhigh-quality small commodity supply chain.Aiximao: Committed to the dual cycle plan to expand domestic distribution channels forimported products of Aiximao. A total of 2,000 domestic sales cooperation outlets have been
expanded, and online and offline distribution channels have achieved revenue of RMB 300 million.The Company will build a distribution center for imported commodity brands, optimize the existingcommodity structure, and incubate potential imported brands. Through centralized sourcing, bringingyou to China overseas direct sourcing and etc., the Company can control the source of goods andstrengthen the core advantages of the supply chain. The Company strives to create 2,000 superiorproducts, complete 100 brand agents or authorizations throughout the year, and create 5 newAiximao and sub-brand OEM products. We expand cross-border commerce and build a cross-borderimport supply chain.(iv) Potential risks
√Applicable □Not applicable
1. Market operation risk
Large-sized shopping malls, hypermarkets, warehouse stores and e-commerce platforms arestrong competitors in the commodities trading market. Large-sized shopping malls offer products ofreliable quality and well-known brands; hypermarkets or warehouse stores supply diversifiedproducts at low prices; e-commerce platforms provide new trading means and facilitate consumers.Purchasers or consumers may also choose to make procurement or consumption via e-commerceplatforms for convenience. Therefore, the Company may compete with other forms of business. Inaddition, affected by the rising specialized market, robust development of the industry market andrapid development of the central and western regions, the Company may also face competition fromother similar specialized markets.
2. Risk of insufficient reserve of talents
With the acceleration of market transformation and the expansion of the Company’s business,and with the expansion of experienced international trade, warehousing and logistics, supply chain,overseas development, information data, industrial investment, and business operations, theCompany may face the risk of insufficient reserves of professional talents and compound talents.
3. The risk of increasing external uncertainty
In the context of the normalization of epidemic prevention and control, the development ofglobal market trade is more complicated and severer than before. The global epidemic and reverseglobalization are parallel, and the downward pressure on the world economy has increased. Newtechnologies have accelerated the birth of new opportunities, and new trade models and newbusiness formats have emerged. In the post-epidemic era, uncertainty will become the greatestcertainty for the development of market trade, and the global epidemic will continue for a long time,showing a repeated see-saw state. Epidemic prevention and control, international politics, andglobal economy are intertwined. Uncertainty, instability, and restructuring of international trade willbecome the new normal. The Company may face the risk of increased external uncertainty.
(v) Others
□Applicable √Not applicale
II. The Company failed to disclose and explain the reasons in accordance with thestandards due to special reasons such as non-applicable standards or statesecrets and trade secrets.
□Applicable √Not applicale
Section V. Significant Matters
I. Proposal for common stock profit distribution or capital reserve conversion(i) Formulation, implementation or adjustment of cash dividend policy
√Applicable □Not applicable
According to the China Securities Regulatory Commission's Notice on Further Implementationof Cash Dividends by Listed Companies (ZJF [2012] 37) and Zhejiang Securities RegulatoryBureau’s Notice on Forwarding the Notice on Further Implementation of Cash Dividends by ListedCompanies (ZZJSSZ [2012] 138) Regulations, the Company held the 24th meeting of the sixth boardof directors on August 15, 2012, and reviewed and approved the Proposal on Amending the Articlesof Association, which revised the Company’s profit distribution policy and adjustmentdecision-making mechanism, and was deliberated and approved in the second extraordinary generalmeeting of shareholders held on September 3,2012. In order to further implement the newrequirements of the China Securities Regulatory Commission's Guidelines for the Supervision ofListed Companies No. 3-Cash Dividend Distribution of Listed Companies (November 30, 2013) andShanghai Stock Exchange’s Guidelines for Cash Dividend Distribution of Listed Companies, theforty-fourth meeting of the sixth board of directors of the Company held on April 17, 2014 reviewedand approved the Proposal on Amending Profit Distribution Clauses in the Articles of Association ofthe Company. The Company further clarified the basic principles, distribution forms, specific policies,decision-making mechanisms and procedures of the Company's profit distribution, which werereviewed and approved by the 2013 Annual General Meeting of Shareholders held on May 12, 2014.The nineteenth meeting of the seventh board of directors of the Company held on December 25,2015 reviewed and approved the Plan of Zhejiang China Commodity City Group Co., Ltd. onShareholder Dividend Return Plan.The Company's 2019 annual general meeting of shareholders held on May 22, 2020 reviewedand approved the Company's profit distribution plan for 2019. In 2019, based on the total sharecapital of 5,443,214,176 shares on December 31, 2019, a cash dividend of RMB 0.7 (including tax)will be distributed for every 10 shares). A total of RMB 381,024,992.32 was allocated. TheCompany's board of directors published the Announcement on the Implementation of the Distributionof Rights and Interests in YIWU CCC2019 on the website of the Shanghai Stock Exchange and theChina Securities Journal, Shanghai Securities News and Securities Times on July 14, 2020. Theprofits had been completed before July 21, 2020. The decision-making procedures related to theCompany's profit distribution comply with the provisions of the Articles of Association. The Companylistens to the opinions and demands of small and medium shareholders, and the profit distribution isbased on factors such as the Company's industry characteristics, development stage and profitabilitylevel, and capital needs. It takes into account the requirements for investors to share the results ofthe Company's development and growth and obtain reasonable investment returns.
(ii) The Company's common stock dividend distribution plan or pre-plan for the past
three years (including the reporting period), and the capital reserve conversion planand pre-plan
Unit: RMB
Annual dividends | Number of bonus shares for every 10 shares | Dividend payout for every 10 shares (tax inclusive) | Number of shares converted from the capitalization of capital reserve for every 10 shares | The amount of cash dividends (Tax included) | Net profit attributable to common shareholders of listed companies in the annual consolidated statements of dividends | Percentage of net profit attributable to common shareholders of listed companies in the consolidated statements (%) |
2020 | 0 | 0.55 | 0 | 301,945,279.68 | 926,626,706.42 | 32.59 |
2019 | 0 | 0.70 | 0 | 381,024,992.32 | 1,255,276,023.70 | 30.35 |
Year 2018 | 0 | 0.60 | 0 | 326,592,850.56 | 1,082,631,394.54 | 30.17 |
V. The Company's analysis and explanation on the reasons and effects of changes
in accounting policies, accounting estimates or corrections of major accountingerrors(i) The Company's analysis and explanation on the reasons and effects of changes inaccounting policies and accounting estimates
√Applicable □Not applicable
For details, please refer to Section 11 Financial Report V. Significant Accounting Policies andAccounting Estimates 44. Changes on Significant Accounting Policies and Accounting Estimates.
(ii) The Company's analysis and explanation on the reasons and effects of major
accounting errors correction
□Applicable √Not applicable
(iii) Communication with the former accounting firm
□Applicable √Not applicable
(iv) Other descriptions
□Applicable √Not applicable
VI. Engagement and termination of engagement of accounting firm
Unit: RMB10,000
Current engaged accounting firm | |
Name of the engaged domestic accounting firm | Ernst & Young Hua Ming Certified Public Accountants (special general partnership) |
Remuneration of the engaged domestic accounting firm | 175 |
Audit period of the engaged domestic accounting firm | 13 |
Name | Remuneration | |
Internal control auditing accounting firm | Ernst & Young Hua Ming Certified Public Accountants (special general partnership) | 47.5 |
VII. The risk of listing suspension(i) Reasons for suspension of listing
□Applicable √Not applicable
(ii) The Company's proposed response measures
□Applicable √Not applicable
VIII. Termination of listing and reasons
□Applicable √Not applicable
IX. Matters relating to bankruptcy and reorganization
□Applicable √Not applicable
X. Matters relating to litigations and arbitrations
√There are matters relating to litigations or arbitrations in current reporting period
□No matters relating to litigations or arbitrations in current reporting period(i) Litigations and arbitrations have been disclosed in the temporary announcements
and have had no further progresses
□Applicable √Not applicable
(ii) Litigations and arbitrations that have not been disclosed in the temporaryannouncements or have had further progresses
√Applicable □Not applicable
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) | Did 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] | 1,068 | NO | Judgment has been made | Dismiss the appeal and uphold the original verdict | / |
Ganglong Holdings Group Co., Ltd., Anshan Ganglong Guoxin Property Co., Ltd. | The Company | None | Litigation | Second instance of unfair competition dispute [(2019) SMZ No. 1473] | 1,212 | NO | Judgment has been made | Dismiss the appeal and uphold the original verdict | Legal enforcement has been applied for |
Dragonair Holding Group Co., Ltd., Huai'an Dragonair Building Materials | The Company | None | Litigation | Second instance of unfair competition dispute [(2019) SMZ No. 1474] | 1,212 | NO | Judgment has been made | Dismiss the appeal and uphold the original verdict | Received RMB 6,233,900 subject to enforcement |
Home City Management Co., Ltd. | |||||||||
Wenzhou Ganglong Property Co., Ltd., Ganglong Holdings Group Co., Ltd., Wenzhou Ganglong Yiwu Commodities City Operation and Management Co., Ltd. | The Company | None | Litigation | Second instance of trademark infringement dispute [(2019) ZMZ No. 1431] | 1,212 | NO | Judgment has been made | Dismiss the appeal and uphold the original verdict | Received RMB 2.5 million subject to enforcement |
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. | The Company | None | Litigation | Second instance of trademark infringement and unfair competition dispute 【(2019) ZMZ No. 711】 | 1,212 | NO | Judgment has been made | Dismiss the appeal and uphold the original verdict | Legal enforcement has been applied for |
Zhejiang Yiwu Chuanglian Market Investment and Management Co., Ltd., Changde Xinri Property Co., Ltd., Changde Xinri Yiwu International Trade City Co., Ltd. | The Company | None | Litigation | Second instance of trademark infringement and unfair competition dispute 【(2019) ZMZ No. 712】 | 812 | NO | Judgment has been made | Dismiss the appeal and uphold the original verdict | Received execution money of RMB 649 thousand |
Hebei Jiangcheng Real Estate Development Co., Ltd., Handan | The Company | None | Litigation | Second instance of trademark infringement and unfair competition | 1,212 | NO | Judgment has been made | Dismiss the appeal and uphold the original verdict | Court enforcement has been sought |
Zheshang Yiwu Small Commodity City Co., Ltd. | dispute [(2019) ZMZ No. 713] | ||||||||
Zhejiang Yiwu Chuanglian Market Investment Management Co., Ltd. | The Company | None | Litigation | Second instance of trademark infringement and unfair competition disputes [(2019) ZMZ No. 1105] | 1,212 | NO | Judgment has been made | Dismiss the appeal and uphold the original verdict | Court enforcement has been sought |
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. | The Company | None | Litigation | Second instance of trademark infringement and unfair competition dispute [(2020) ZMZ No. 216] | 1,215 | NO | Judgment has been made | Dismiss the appeal and uphold the original verdict | Received RMB 2.5 million subject to enforcement. |
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] | 492 | NO | Judgment has been made | The defendants Zhang Xizhong, Chen Zhihua, and Chuzhou Chuangda Yiwu Commercial City Co., Ltd. jointly compensated RMB 3.5 million for economic losses. | / |
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] | 492 | NO | Judgment has been made | The defendants Zhang Xizhong, Chen Zhihua, Huai'an Chuangda Yiwu Commercial City Development Co., Ltd., | / |
Huang Keyu and Chen Jianzhong jointly compensated the plaintiff RMB 4 million for economic losses. | |||||||||
The Company | Xianning Luzhou Yiwu Small Commodities Wholesale City Co., Ltd. | None | Litigation | Dispute over unfair competition [(2019) Zhe 0782 Min Chu No. 18835] | 492 | NO | Judgment has been made | The defendant compensated the plaintiff for economic losses of RMB 3.8 million. | / |
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] | 492 | NO | Judgment has been made | The defendant jointly compensated the plaintiff for economic losses of RMB 3.2 million. | / |
The Company | Sanmenxia Zheshang Alliance Property Co., Ltd. | None | Litigation | Dispute over unfair competition [(2019) Zhe 0782 Min Chu No. 18839] | 492 | NO | Judgment has been made | The defendant jointly compensated the plaintiff for economic losses of RMB 4.1 million. | / |
The Company | Anhui Zhongheng Business Development Co., Ltd. | None | Litigation | Dispute over unfair competition [(2019) Zhe 0782 Min Chu No. 18844] | 492 | NO | Judgement has been made | The defendant compensated the plaintiff for economic losses of RMB 4.5 million. | / |
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 | Judgment has been made | The defendant jointly compensated the plaintiff for economic losses of RMB 3 million. | / |
Corporate | Shenzhen Shifang Global Commercial Management Co., Ltd., Laibin Shengyuan Real Estate | None | Litigation | Trademark infringement dispute case [(2020) Y03MC No. 1676] | 1,212 | NO | Hearings have been held but no judgment has been made | / | / |
Development Co., Ltd. | |||||||||
The Company | Meizhou Yuanrong Yiwu Small Commodity Wholesale City Co., Ltd., Shenzhen Shifang Global Business Management Co., Ltd., Guangdong Fangrong Investment Co., Ltd. | None | Litigation | Case of unfair competition dispute [(2020) Y03MC No. 1263] | 1,212 | NO | Hearings have been held but no judgment has been made | / | / |
The Company | Shenzhen Shifang Global Commercial Management Co., Ltd., Xinyang Nanhai Real Estate Development Co., Ltd. | None | Litigation | Trademark infringement and unfair competition disputes [(2020) Y03MC No. 1680] | 512 | NO | Hearings have been held but no judgment has been made | / | / |
The Company | Shenzhen Shifang Global Business Management Co., Ltd., Pingdingshan Yuhong Jiaye Real Estate Development Co., Ltd., Pingdingshan Wanshang Yiwu Small Commodity Market Operation Co., Ltd. | None | Litigation | Disputes over trademark infringement [(2020) Y03MC No. 1682] | 512 | NO | Hearings have been held but no judgment has been made | / | / |
The Company | Xinyang Wanjia Denghuo Industrial Co., Ltd., Xinyang Yiwu Wanjia Denghuo International Trade City Co., Ltd., Shenzhen Shifang Global Business Management Co., Ltd. | None | Litigation | Unfair competition dispute case [(2020) Y03MC No. 1264] | 1,212 | NO | Trial has started, but no judgment has been made | / | / |
The Company | Shenzhen Shajing Yiwu Trade City Management Co., Ltd., Shenzhen | None | Litigation | Trademark infringement dispute case [(2020) Y03MC No. 1948] | 512 | NO | Trial has started, but no judgment has been made | / | / |
Shenmingfeng Industrial Co., Ltd., Shenzhen Shenmingfeng Investment Development Co., Ltd., Shenzhen Inte Digital Investment Development Co., Ltd. | |||||||||
The Company | Shenzhen West Yiwu Commodity City Co., Ltd. | None | Litigation | Trademark infringement dispute case [(2020) Y03MC No. 1029] | 1,212 | NO | Trial has started, but no judgment has been made | / | / |
The Company | Shenzhen Shifang Global Business Management Co., Ltd., Heyuan Yiwu Small Commodity City Co., Ltd. | None | Litigation | Unfair competition dispute case [(2020) Y03MC No. 1266] | 1,212 | NO | Trial has started, but no judgment has been made | / | / |
The Company | Jiangmen Yiwu Commodity City Co., Ltd., Shenzhen Shifang Global Business Management Co., Ltd., Jiangmen Luzhou Commercial Investment Development Co., Ltd. | None | Litigation | Trademark infringement dispute case [(2020) Y03MC No. 1961] | 1,212 | NO | Hearings have been held but no judgment has been made | / | / |
The Company | Zhejiang Yiwu Chuanglian Market Investment Management Co., Ltd., Qinhuangdao North Logistics Real Estate Co., Ltd., Qinhuangdao Yiwu Small Commodity City Management Co., Ltd. | None | Litigation | Disputes over unfair competition and trademark infringement [(2020) Z07MC No. 174] | 792 | NO | Trial has started, but no judgment has been made | / | / |
The Company | Zhejiang Yiwu Shangju Market Investment Management Co., Ltd., | None | Litigation | Disputes over unfair competition and trademark infringement [(2020) | 792 | NO | No hearings have not been held | / | / |
Weihai Xiuyu Real Estate Development Co., Ltd., Shenzhen Evergreen Real Estate Consulting Co., Ltd., Weihai Fenghe Commercial Operation Management Co., Ltd. | Z07MC No. 175] | ||||||||
Huangshi Duolong Yiwu Small Commodity Wholesale City Management Co., Ltd. | The Company | None | Litigation | Disputes over unfair competition [(2020) Z07MZ No. 2745] | 492 | NO | Dismiss the appeal and uphold the original verdict | / | / |
ZHANG Xizhong, CHEN Zhihua | The Company | None | Litigation | Disputes over unfair competition and trademark infringement [(2020) Z07MZ No. 2897] | 492 | NO | Trial has started, but no judgment has been made | / | / |
ZHANG Xizhong, CHEN Zhihua, Huai An Chuangda Yiwu International Trade City Co., Ltd., HUANG Keyu, CHEN Jianzhong | The Company | None | Litigation | Disputes over trademark infringement and unfair competition [(2020) Z07MZ No.3196] | 492 | NO | Trial has started, but no judgment has been made | / | / |
Anhui Zhongheng Business Development Co., Ltd. | The Company | None | Litigation | Disputes over unfair competition [(2020) Z07MZ No. 3746] | 492 | NO | The appeal was rejected, and the original verdict was upheld. | / | / |
The Company | Chongqing Guosheng Foundation Investment Co., Ltd., Chongqing Wanrun Property Service Co., Ltd. | None | Litigation | Disputes over unfair competition [(2020) Z07MC No. 305] | 792 | NO | No hearings have not been held | / | / |
The Company | Yiwu Angxiao Market Development Co., Ltd., Longchuan | None | Litigation | Disputes over unfair competition [(2020) Z07MC No. | 792 | NO | No hearings have not been held | / | / |
County Yuegang Real Estate Development Co., Ltd., Longchuan County Yuegang Industrial Co., Ltd., Huizhou Heyun Industrial Co., Ltd., Longchuan County Haojiado Yiwu Small Commodity Wholesale Co., Ltd. | 307] | ||||||||
The Company | Zhejiang Yiwu Chuanglian Market Investment Management Co., Ltd., Hunan Zotye Real Estate Development Co., Ltd., Deng Shenping, Wang Zhiyong | None | Litigation | Disputes over unfair competition [(2020) Z07MC No. 374] | 792 | NO | No hearings have not been held | / | / |
The Company | Zhejiang Yiwu Chuanglian Market Investment Management Co., Ltd., Linqing Yiwu Commercial City Co., Ltd. | None | Litigation | Disputes over unfair competition [(2020) Z0782MC No. 18412] | 492 | NO | No hearings have not been held | / | / |
The Company | Jiangxi Wuhua Comprehensive Market Co., Ltd., Jiangxi Wuhua Comprehensive Market Co., Ltd. | None | Litigation | Disputes over unfair competition [(2020) Z0782MC No. 18529] | 492 | NO | No hearings have not been held | / | / |
Zhejiang Yiwugou E-commerce Co., Ltd. | Yiwu China Commodity City Big Data Co., Ltd. | None | Litigation | Disputes over unfair competition [(2020) Z01MC No. 2202] | 1,000 | NO | Trial has started, but no judgment has been made | / | / |
Bank of China | The Company and Commodities City Trade | None | Litigation | Dispute over letter of credit | 11,367.57 | 11,062.03 | Transferred to Yiwu Public Security Bureau and the plaintiff's case acceptance fee |
refunded.
(iii) Other descriptions
□Applicable √Not applicable
XI. Punishments of and rectifications by the Listed Company and its directors,supervisors, senior officers, actual controller and acquirers
□Applicable √Not applicable
XII. Credit standing of the Company and its controlling shareholder and actualcontroller
√Applicable □Not applicable
There was no outstanding court judgment or overdue debt of a large amount involving theCompany or its controlling shareholder or actual controller during the reporting period.
XIII. Incentive stock option plans, employee stock ownership plans and other
employee incentives granted by the Company and the impact thereof(i) Relevant incentive matters have been disclosed in the temporary announcement and
there is no progress or change in subsequent implementation.
√Applicable □Not applicable
Overview of the matter | Query website |
On October 23, 2020, the twenty-third meeting of the eighth session of the Company's board of directors passed the Proposal on the Company's 2020 Restricted Stock Incentive Plan (Draft) and Its Summary, Proposal on the Measures for the Evaluation and Management of the Implementation of the Company's 2020 Restricted Stock Incentive Plan, Proposal on Requesting the General Meeting of Shareholders to Authorize the Board of Directors to Handle Issues Related to Equity Incentives. The independent directors of the Company issued relevant independent opinions. On October 23, 2020, the sixth meeting of the eighth board of supervisors of the Company deliberated and approved the Proposal on the Company's 2020 Restricted Stock Incentive Plan (Draft) and its Summary, The Proposal on the Implementation Evaluation and Management Measures for the Company's 2020 Restricted Stock Incentive Plan, Proposal on Verification of the List of Incentive Objects of the Company's 2020 Restricted Stock Incentive Plan. The board of supervisors issued relevant verification opinions. Independent financial consultants, lawyers and other intermediary agencies issued corresponding opinions. | For details, please refer to the Company's announcement on the website of the Shanghai Stock Exchange (www.sse.com.cn) on October 24, 2020. |
On November 18, 2020, it received the Approval for Approving Zhejiang China Commodity City Group Co., Ltd. to implement the 2020 restricted stock incentive plan issued by the | For details, please refer to the Company's announcement on the website of the Shanghai |
State-owned Assets Supervision and Administration Office of the People's Government of Yiwu City, forwarded by Yiwu China Commodity City Holdings Ltd. (Yiwu SASAOF〔2020〕51). | Stock Exchange (www.sse.com.cn) on November 20, 2020. |
From November 20, 2020 to November 29, 2020, the list of incentive objects and positions of the 2020 restricted stock incentive plan were internally publicized. Within the time limit of the publicity, the board of supervisors of the Company did not receive any objection from any organization or individual or bad feedback, without feedback record. On November 30, 2020, the Board of Supervisors of the Company issued the Examination Opinions and Public Statement of the Board of Supervisors on the List of Incentive Objects of the Company's 2020 Restricted Stock Incentive Plan. | For details, please refer to the Company's announcement on the website of the Shanghai Stock Exchange (www.sse.com.cn) on December 1, 2020. |
On December 10, 2020, the Company’s 2020 fifth extraordinary general meeting of shareholders reviewed and approved the Proposal on the Company's 2020 Restricted Stock Incentive Plan (Draft) and its Summary, Proposal on the Measures for the Evaluation and Management of the Implementation of the Company's 2020 Restricted Stock Incentive Plan, Proposal on requesting the general meeting of shareholders to authorize the board of directors to handle issues related to equity incentives, and also disclosed the Self-inspection Report on the Company's 2020 Restricted Stock Incentive Plan Insider Information on the Purchase and Sale of Company Stocks by Insiders. | For details, please refer to the Company's announcement on the website of the Shanghai Stock Exchange (www.sse.com.cn) on December 11, 2020. |
On December 11, 2020, the twenty-sixth meeting of the eighth session of the Company's board of directors passed the Proposal on Granting Restricted Shares to Incentive Objects for the First Time. The independent directors of the Company issued relevant independent opinions. On December 11, 2020, the seventh meeting of the Company's eighth board of supervisors passed the Proposal on Granting Restricted Stocks to Incentive Objects for the First Time. The Board of Supervisors issued the Verification Opinions of the Board of Supervisors on Matters Related to the First Grant of the Company's 2020 Restricted Stock Incentive Plan. Independent financial consultants, lawyers and other intermediary agencies issued corresponding opinions. | For details, please refer to the Company's announcement on the website of the Shanghai Stock Exchange (www.sse.com.cn) on December 12, 2020. |
On January 15, 2021, the Company received the Securities Change Registration Certificate issued by the Shanghai Branch of China Securities Depository and Clearing Co., Ltd., and the Company completed the registration of the first grant of restricted stocks to incentive objects. | For details, please refer to the Company's announcement on the website of the Shanghai Stock Exchange (www.sse.com.cn) on January |
19, 2021.
(ii) Incentives that have not been disclosed in the temporary announcements or had
further progressesIncentive stock option
□Applicable √Not applicable
Other descriptions
□Applicable √Not applicable
Employee stock ownership plans
□Applicable √Not applicable
Other incentives
□Applicable √Not applicable
XIV. Material related-party transactions(i) Related-party transactions relating to regular corporate operation
1. Matters that have been disclosed in the temporary announcements and had no
further progresses or changes
□Applicable √Not applicable
2. Matters that have been disclosed in the temporary announcements but hadfurther progresses or changes
□Applicable √Not applicable
3. Matters that have not been disclosed in the temporary announcements
√Applicable □Not applicable
Unit: RMB
Related transaction party of related transaction | Relationship | Type of related-party transaction | Contents of related-party transaction | Pricing principle | Price of related-party transaction | Amount of related-party transaction | Percentage in the amount of similar transactions (%) | Settlement method | Market M/Price | Reasons for the large difference between the price of the transaction and reference market price |
MDG | Controlling shareholder of the Company’s largest shareholder | Other inflows | Provide office space, collect rent and property management fees | Market price | 836,793.82 | 43.43 | Account transfer | |||
Yourworld International | Other inflows | Entrusted management fees | Negotiated price | 1,020,591.87 | 52.97 | Account transfer |
Conference Center, subordinated to Yiwu Market Development Group | and license fees | |||||||||
Yiwu Security Service Co., Ltd. | Acceptance of labor service | Cash security service for the business outlets of the currency exchange company | Market price | 69,300.00 | 3.60 | Account transfer | ||||
Total | / | / | 1,926,685.69 | 100.00 | / | / | / | |||
Return of large-value goods sales | ||||||||||
Illustration on related-party transactions |
Overview of the matter | Query website |
The Company transferred its wholly-owned subsidiary Yiwu China Commodity City Property Development Co., Ltd. and Pujiang Lvgu Real Estate Co., Ltd. 51% of the shares each to its controlling shareholder, CCCH, for 2.232 billion yuan. During the reporting period, the Company has received a transfer payment of 2.232 billion yuan from CCCH. CCCP and Pujiang Lvgu have completed the procedures for registration of change with the Administration for Market Regulation. | For details, please refer to the Announcement on the Proposed Transfer of Part of the Equity Interests in a Wholly-owned Subsidiary and Related Transactions (Announcement No.: L2020) disclosed on the website of the Shanghai Stock Exchange (www.sse.com.cn) on June 13, 2020. -048) and the Announcement on the Progress of the Transfer of Part of the Equity in a Wholly Owned Subsidiary on July 16, 2020 (Announcement No.: L2020-057). |
Announcement on the Progress of External Investment and Related-Party Transactions(Announcement No. Temporary 2020-018).
During the reporting period, Zhejiang Huajie Investment Development Co., Ltd. has completedthe relevant industrial and commercial change registration procedures.
(2) In order to meet the needs of Handing Shangbo, a wholly-owned subsidiary of its subsidiary,CCCP, to develop a real estate project on the east side of the intersection of Fotang Avenue andShuangfeng Road, Fotang Town, Yiwu, the Company provides Handing Shangbo with financialassistance of no more than RMB 490 million, and the Company's controlling shareholder, CCCH, willprovide the same proportion of financial assistance to Handing Commercial Bo in accordance withits indirect shareholding ratio. For details, please refer to the Announcement on Providing ExternalFinancial Assistance and Related Party Transactions (Announcement Number: L2020-098).
As of the end of the reporting period, the Company has provided RMB 472 million in financialassistance, and CCCH has provided RMB 491 million in financial assistance.
3. Matters that have not been disclosed in the temporary announcements
□Applicable √Not applicable
4. If any agreement on the operating results is involved, the achievement ofoperating results during the reporting period shall be disclosed
□Applicable √Not applicable
(iii) Related-party transactions arising from joint external investment
1. Matters that have been disclosed in the temporary announcements and had no
further progresses or changes
□Applicable √Not applicable
2. Matters that have been disclosed in the temporary announcements but hadfurther progresses or changes
□Applicable √Not applicable
3. Matters that have not been disclosed in the temporary announcements
□Applicable √Not applicable
(iv) Related-party credits and debts
1. Matters that have been disclosed in the temporary announcements and had nofurther progresses or changes
□Applicable √Not applicable
2. Matters that have been disclosed in the temporary announcements but hadfurther progresses or changes
□Applicable √Not applicable
3. Matters that have not been disclosed in the temporary announcements
□Applicable √Not applicable
(v) Others
□Applicable √Not applicable
XV. Material contracts and performance thereof(i) Trusteeship, contracting and leases
1. Hosting
□Applicable √Not applicable
2. Contracting
□Applicable √Not applicable
3. Renting
□Applicable √Not applicable
(ii) Guarantees
√Applicable □Not applicable
Unit: RMB10,000
External guarantees provided by the Company (excluding those provided for the subsidiaries) | |||||||||||||
Guaranteeing party | Relationship between the guarantor and the Listed Company | Guaranteed party | Guaranteed amount | Date of guarantee (signing date of the agreement) | Guarantee Starting date | Guarantee Expiry date | Type of guarantee | Whether the guarantee has been fulfilled | Is the guarantee overdue | Overdue amount of the guarantee | Is there a counter guarantee | Is it a related-party guarantee | Related Relationship |
Corporate | The Company itself | Huangyuan Shangbo | 63,165.83 | August 13, 2019 | August 23, 2022 | August 22, 2024 | Joint and several liability guarantee | NO | NO | NO | Yes | Joint venture | |
Corporate | The Company itself | Chengzhen Property | 8,647.58 | November 26, 2019 | September 22, 2022 | September 21, 2024 | Joint and several liability guarantee | NO | NO | NO | Yes | Joint venture | |
Corporate | The Company itself | Yiwu Shanglv | 23,405.33 | December 16, 2015 | July 1, 2015 | December 15, 2026 | Joint and several liability guarantee | NO | NO | Yes | Yes | Joint venture | |
Corporate | The Company itself | Yiwu Shanglv | 563.50 | August 13, 2020 | December 25, 2020 | December 24, 2022 | Joint and several liability guarantee | NO | NO | Yes | Yes | Joint venture | |
Hangzhou Shangbo | Wholly-owned subsidiary | House purchaser | 1,617.01 | Joint and several | NO | NO | NO | NO |
Nanxing | liability guarantee | |||
Amount of guarantees made during the reporting period (excluding the guarantees provided for subsidiaries) | -87,989.14 | |||
Balance of guarantees at the end of the reporting period (A) (excluding the guarantees provided for subsidiaries) | 97,399.25 | |||
The guarantee of the Company and its subsidiaries to the subsidiaries | ||||
Amount of guarantees provided for subsidiaries during the reporting period | ||||
Balance of guarantees provided for subsidiaries at the end of the reporting period (B) | ||||
Total guarantees provided by the Company (including those provided for the subsidiaries) | ||||
Total amount of guarantees (A+B) | 97,399.25 | |||
Ratio of the total amount of guarantees to the Company’s net assets (%) | 7.18 | |||
Among them, | ||||
Amount of guarantees provided for shareholders, actual controller and their related parties (C) | ||||
Amount of guarantees provided directly or indirectly for the debtors whose debt-to-asset ratio exceed 70% (D) | 71,813.41 | |||
Portion of total amount of guarantees in excess of 50% of net assets (E) | ||||
Total (C+D+E) | 71,813.41 | |||
Statement on the joint and several liability for satisfaction 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.As of December 31, 2020, Huangyuan Shangbo actually borrowed RMB 674,889,305.56 from Yiwu Branch of Industrial and Commercial Bank of China and RMB 614,209,347.22 from Shanghai Pudong Development Yiwu Branch (December 31, 2019: RMB 700,923,611.11, RMB 981,198,055.56) ).According to the guarantee contract, it assumes a guarantee liability of RMB 330,695,759.72 for the Yiwu Branch of Industrial and Commercial Bank of China, and a guarantee liability of RMB 300,962,580.14 for the Yiwu Branch of Shanghai Pudong Development Bank (December 31, 2019: RMB 343,452,569.44, RMB 480,787,047.22). 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 RMB391.2million 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 December 31, 2020, Chengzhen Real Estate actually borrowed RMB 360,315,776.39 from Yiwu Branch of Evergrowing Bank (December 31, 2019: RMB 839,702,769.44).In accordance with the guarantee contract, it assumed a guarantee liability of RMB 86,475,786.33 for |
Yiwu Branch of Evergrowing Bank (December 31, 2019:
RMB 201,528,664.67).
3. According to the resolution of the 15th meeting of the 7th
Board of Directors on Jul 1, 2015, the Group applied to theYiwu Branch of ABC for an RMB750million loan for YiwuShanglv and provided guarantee based on its shareholdingratio. The guarantee was a joint and several liabilityguarantee, the maximum amount of guarantee wasRMB367.5million and the term was 11 years.As ofDecember 31, 2020, Yiwu Shanglvactually borrowed RMB477,659,739.88 from banks (December 31, 2019: RMB587,412,606.21).In accordance with the guarantee contract,it assumed a guarantee liability of RMB 234,053,272.54 tothe Yiwu Branch of Agricultural Bank of China (December31, 2019: RMB 287,832,177.04).Yiwu State-owned CapitalOperation Co., Ltd. provided a counter guarantee for thisguarantee.
4. According to the resolution of the nineteenth meeting of
the eighth session of the board of directors on August 13,2020, the Group applied for a loan of no more than RMB100 million from Bank of Communications Co., Ltd. YiwuBranch for Yiwu Shanglv and provided guarantees inaccordance with the equity ratio. The guarantee methodwas the joint liability guarantee which has a maximumamount of RMB 49 million. The guarantee period is from thedate of the expiry of the debt performance period agreed inthe independent contract to two years after the date of theexpiration of the debt performance period of the last dueprincipal debt under all the main contracts.As of December31, 2020, Yiwu Shanglv actually totally borrowed RMB11,500,000.00 from banks (December 31, 2019: RMB 0).Inaccordance with the guarantee contract, it assumed aguarantee liability of RMB 5,635,000.00 to the YiwuBranch of the Agricultural Bank of China (December 31,2019: RMB 0).Yiwu China Commodity City Holdings Limitedprovided counter-guarantee for this guarantee.
5. According to relevant regulations, before the purchaser of
the commercial housing completing the housing ownershipcertificate, the Group selling the commercial housing shallprovide the bank with a mortgage guarantee for thepurchaser. As of December 31, 2020, the unsettledguarantee amount is RMB 16,170,141.08. (December 31,2019: RMB 540,283,351.51).Those guarantees would bereleased after the issuance of the property ownershipcertificates and are thus little likely to incur losses.Therefore, the management believed that it was notnecessary to make provision for the guarantees.
(iii) Entrust the management of the cash assets of others
1. Entrusted financial management
(1) The totality of entrusted financial management
□Applicable √Not applicable
Other information
□Applicable √Not applicable
(2) Individual entrusted financial management
□Applicable √Not applicable
Other information
□Applicable √Not applicable
(3) Entrusted financial management impairment provision
□Applicable √Not applicable
2. Entrusted Loan
(1) Total entrusted loan
√Applicable □Not applicable
Unit: RMB10,000
Type | Source of funds | Amount | Unexpired balance | Overdue unrecovered amount |
Special entrusted loan | Export-Import Bank of China | 321.08 | ||
Single Entrusted Loan | Self-owned funds | 85,000.00 | 0 |
Trustee | Type of entrusted loan | Entrusted loan amount | Entrusted loan start date | Entrusted loan termination date | Fund sources Source | Fund sources Investment | Remuneration determination Method | Annualized rate of return | Expected return (If any) | Actual profit and loss | Actual recovery | Statutory procedures | Entrusted loan program | Amount of provision for impairment (if any) |
Yiwu Branch of Agricultural Bank of China Co., Ltd. | Working capital loan | 85,000 | April 16, 2020 | August 26, 2020 | Self-owned funds | Supplement corporate liquidity | 6.5% | 1,178.69 | 85,000 | Yes | NO |
Item | Opening balance | Increase in the current period | Decrease in the current period | Closing balance |
Entrusted loan impairment provision | RMB 185,500 | 0 | 0 | RMB 185,500 |
Serial No. | Name of contract | Contracting party | Contract price (RMB10,000) |
1 | eWTP cooperative project procurement contract | Alibaba (China) Co., Ltd. | 5291.92 |
2 | Yiwu Yindu Hotel Reconstruction and Reinforcement Project | Zhejiang Construction Special Technology Engineering Co., Ltd. | 1278.40 |
3 | Yiwu Comprehensive Bonded Zone Phase I Customs Supervision Information Equipment and System Integration Procurement Project Contract | Zhejiang Public Information Industry Co., Ltd. | 3158.76 |
4 | Yiwu Yindu Hotel Facade Renovation Project Contract | Jinyuanda Construction Holdings Co., Ltd. | 1357.59 |
5 | Technical service contract for the second phase of cloud storage project of Smart Security of Mall Group | Zhejiang Public Information Industry Co., Ltd. | 3030 |
6 | Yiwu Comprehensive Bonded Zone Sales Exhibition Phase I Basement Foundation Pit Earthwork and Support Engineering Construction Contract | Zhejiang Rongcheng Construction Group Co., Ltd. | 5037.71 |
7 | Earthwork and foundation pit support project in the basement of the East Parking Building in the Second District of Yiwu International Trade City | Yuanyang Construction Group Co., Ltd. | 1208.18 |
8 | Construction contract for the power supply project of Zhejiang China Commodity City Group Co., Ltd. (Phase I of Yiwu Comprehensive Bonded Zone) | Yiwu Power Transmission and Transformation Engineering Co., Ltd., State Grid Zhejiang Yiwu Power | 2655.84 |
Supply Co., Ltd. | |||
9 | Yiwu International Production Material Market Supporting Project-Hotel Decoration Project (Part I) | Zhejiang World Trade Decoration Co., Ltd. | 3464.94 |
10 | Yiwu International Production Material Market Supporting Project-Hotel Decoration Project (Second Tender Section) | Shenzhen Pengrun Construction Group Co., Ltd. | 5575.42 |
11 | Yiwu International Trade City Upgrading and Reconstruction Project (Lighting Project) EPC Project General Contracting Project General Contracting Contract | Shenzhen Golden Lighting Technology Co., Ltd. | 3100.02 |
12 | Contract I for the first phase of Yiwu Comprehensive Bonded Zone (Phase I of logistics and warehousing) | China Twentieth Metallurgical Group Co., Ltd. | 22165.80 |
13 | Bidding section II contract for the first phase of the Yiwu Comprehensive Bonded Zone (the first phase of logistics and warehousing) | Beijing Urban Construction Group Co., Ltd. | 86711.78 |
14 | Advertising contract | Shanghai Yuanyue Advertising Co., Ltd. | 2282 |
15 | Agreement (CCCH provides counter-guarantee for the Mall Group) | CCCH | 4900 |
16 | Yiwu Comprehensive Bonded Zone Project Phase I Project Supervision | Zhejiang Qiushi Engineering Consulting Supervision Co., Ltd. | 1024.67 |
17 | Construction Contract for Renovation of the City Parlor of E2 Pavilion of Expo Center | Zhejiang Baisha Construction Co., Ltd. | 2252.33 |
18 | Construction Contract for Yiwu CCC Warehouse Park Trade Station (Construction of Warehouse 1# and 2#) | Zhejiang Longsha Construction Group Co., Ltd. | 10447.45 |
19 | Guarantee contract (guarantee for the working capital loan of Yiwu Shanglv) | Bank of Communications Co., Ltd. Yiwu Branch (Sub-branch) | 4900 |
20 | Contract for Contracted Construction of the Auxiliary Overpass Works of Yiwu Comprehensive Bonded Zone Project | Tianyang Construction Group Co., Ltd. | 3667.18 |
3. Explanation for the failure of the company not listed among the key polluters to
disclose environmental issues
□Applicable √Not applicable
4. Further progress or change of the environmental issues disclosed during thereporting period
□Applicable √Not applicable
(iv) Other descriptions
□Applicable √Not applicable
XVIII. Convertible corporate bonds
□Applicable √Not applicable
Section VI. Changes in Common Shares and ShareholdersI. Changes in common stock(i) Changes in common shares
1. Changes in common shares
During the reporting period, the total number of common shares and share capital structures of theCompany remained unchanged.
2. Description of changes in common shares
□Applicable √Not applicable
3. The impact of changes in common shares on financial indicators such asearnings per share and net assets per share in the most recent year and themost recent period (if any)
□Applicable √Not applicable
4. Other matters the Company deems it necessary to disclose or required by the
securities regulatory authority to be disclosed
√Applicable □Not applicable
On January 15, 2021, the Company completed the registration of shares granted for the firsttime under the 2020 restricted stock incentive plan. The total share capital of the Companyincreased by 46,700,000 shares, and the total share capital after the increase was 5,489,914,176shares.
(ii) Changes in non-tradable shares
□Applicable √Not applicable
II. Securities issuance and listing(i) Securities issuance as of the reporting period
√Applicable □Not applicable
Currency: million shares Currency: RMB
Stocks and derivatives Types of securities | Issuing date | Issuing price (or interest rate) | Issuing number | Listing date | Number of approved listing transactions | Transaction termination date |
Convertible corporate bonds, separate transaction convertible bonds, corporate bonds | ||||||
19 YIWU CCC 01 | June 3, 2019 | 4.30% | 8 | June 18, 2019 | 8 | June 5, 2022 |
19 YIWU CCC 02 | September 26, 2019 | 3.99% | 7 | October 15, 2019 | 7 | September 27, 2022 |
corporate bonds on June 3, 2019. The face value of the current bonds is RMB 100 and the couponrate is 4.30 %. It was listed and traded on the Shanghai Stock Exchange on June 18, 2019. Theabbreviation of the bond is 19XS01 and the bond code is 155450.In accordance with the document Zheng Jian Li [2019] No. 380 issued by the China SecuritiesRegulatory Commission on March 14, 2019, the Company publicly issued RMB 700,000,000 ofcorporate bonds on September 26, 2019. The face value of the current bonds is RMB 100, and thecoupon rate is 3.99%. It was listed and traded on the Shanghai Stock Exchange on October 15,2019. The abbreviation of the bond is 19XS02 and the bond code is 155750.
(ii) The total number of common shares of the Company, changes in the shareholderstructure, and changes in the Company's assets and liabilities structure
□Applicable √Not applicable
(iii) Existing internal employee shares
□Applicable √Not applicable
III. Shareholders and actual controllers(i) Total number of shareholders
Number of common shareholders as of the end of the reporting period | 222,616 |
The total number of common shareholders (households) at the end of the previous month before the disclosure of the annual report | 208,131 |
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 | (%) | Number of non-tradable shares held | Pledge or freezing | Shareholders Nature | |
Shares Status | Number | ||||||
Yiwu China Commodities City Holdings Limited | 3,038,179,392 | 3,038,179,392 | 55.82 | 0 | None | 0 | State-owned legal person |
China Securities Finance Co., Ltd. | -49,250,374 | 217,468,111 | 4.00 | 0 | None | 0 | Unknown |
Zhejiang Financial Development Co., 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 | ||||||
Category | Number | |||||||
Yiwu China Commodities City Holdings Limited | 3,038,179,392 | RMB-denominated common share | 3,038,179,392 | |||||
China Securities Finance Co., Ltd. | 217,468,111 | RMB-denominated common share | 217,468,111 | |||||
Zhejiang Financial Development Co., 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 Finance Development Co., Ltd. holds 9.44% of the shares of Yiwu State-owned Capital Operation Co., Ltd., the controlling shareholder of Yiwu China Commodity City Holding Limited, the controlling shareholder of Yiwu Market Development Group Co., Ltd. | |||
Explanation on the preferred shareholders whose voting rights had been restituted and the quantity of shares held thereby | None |
Name | Yiwu China Commodities City Holdings |
Limited | |
The person in charge or legal representative of the unit | ZHAO Wenge |
Date of establishment | October 29, 2019 |
Main business | State-owned shareholding platform |
Shareholdings of other domestic and overseas listed companies that hold or participate in shares during the reporting period | None |
Other statements | None |
(ii) The actual controller1 Legal person
√Applicable □Not applicable
Name | State-owned Assets Supervision and Administration Office of the People’s Government of Yiwu |
The person in charge or legal representative of the unit | YU Huazhong |
Date of establishment | March 26, 2009 |
Main business | State-owned capital management and state-owned equity management |
Shareholdings of other domestic and overseas listed companies that hold or participate in shares during the reporting period | None |
Other statements | None |
6 The actual controller controls the Company through trust or other assetmanagement methods.
□Applicable √Not applicable
(iii) Other introductions of controlling shareholders and actual controllers
□Applicable √Not applicable
V. Other corporate shareholders holding more than 10% of the shares
□Applicable √Not applicable
VI. Description of share restriction reduction
□Applicable √Not applicable
Section VII. Preferred Shares
□Applicable √Not applicable
Section VIII. Directors, Supervisors, Senior Managers and Employees
I. Changes in shareholding and remuneration(i) Changes in shareholding and remuneration of current and resigned directors, supervisors and senior executives during the reporting
period
√Applicable □Not applicable
Unit: Ten Thousand Shares
Name | Position (Note) | Gender | Age | Start date of tenure | Term end date | Number of shares held at the beginning of the year | Number of shares held at the end of the year | The amount of stock increase or decrease during the year | Reasons for change | Total pre-tax remuneration received from the Company during the reporting period (RMB 10,000) | Remuneration received from related parties of the Company |
ZHAO Wenge | Board chairman | Male | 53 | September 27, 2018 | 4 | 4 | 49.20 | NO | |||
WANG Dong | Vice Chairman and General Manager | Male | 49 | March 8, 2019 | 0 | 0 | 49.20 | NO | |||
WANG Chunming | Director | Male | 49 | August 27, 2019 | 0 | 0 | 0 | Yes | |||
LI Chengqun | Director | Male | 49 | May 12, 2014 | 0 | 0 | 0 | Yes | |||
XU Hang | Director, Secretary of the Board | Male | 47 | December 12, 2017 | 0 | 0 | 41.82 | NO | |||
GU Zhixu | Director | Male | 33 | December 10, 2020 | 0 | 0 | 0 | NO | |||
ZHU Hang | Director | Male | 33 | December 16, 2016 | November 19, 2020 | 0 | 0 | 0 | NO | ||
MA Shuzhong | Independent director | Male | 53 | August 27, 2019 | 0 | 0 | 7.2 | NO | |||
HONG Jianqiao | Independent director | Male | 55 | May 22, 2020 | 0 | 0 | 4.8 | NO | |||
JIN Yanghua | Independent director | Male | 45 | May 22, 2020 | September 2, 2020 | 0 | 0 | 2.4 | NO |
LIU Zhiyuan | Independent director | Male | 57 | May 12, 2014 | April 28, 2020 | 0 | 0 | 2.4 | NO | ||
WU Yabin | Independent director | Male | 47 | August 27, 2019 | March 17, 2020 | 0 | 0 | 1.2 | NO | ||
HUANG Ping | Supervisor | Male | 52 | August 19, 2016 | September 15, 2020 | 0 | 0 | 0 | NO | ||
JIN Xiaojia | Supervisor | Male | 33 | December 16, 2016 | 0 | 0 | 0 | Yes | |||
WANG Gaiying | Supervisor | Female | 41 | August 27, 2019 | 0 | 0 | 0 | Yes | |||
WANG Jinjian | Supervisor | Male | 49 | October 26, 2020 | 0 | 0 | 0 | Yes | |||
FANG Min | Employee supervisor | Male | 36 | December 8, 2020 | 0 | 0 | 16.10 | NO | |||
JIN Yongsheng | Employee supervisor | Male | 43 | December 8, 2020 | 0 | 0 | 18.25 | NO | |||
ZHANG Yuhu | Employee supervisor | Male | 47 | August 27, 2019 | December 8, 2020 | 0 | 0 | 48.26 | NO | ||
LIU Zhenting | Employee supervisor | Female | 47 | August 27, 2019 | December 8, 2020 | 5 | 8 | 3 | Buying shares in the secondary market | 44.93 | NO |
JIN Gengzhong | Vice general manager | Male | 51 | September 18, 2020 | 0 | 0 | 31.98 | NO | |||
WU Xiubin | Vice general manager | Male | 50 | July 17, 2020 | 0 | 0 | 41.82 | NO | |||
ZHANG Qizhen | Vice general manager | Male | 52 | July 7, 2017 | 0 | 0 | 41.82 | NO | |||
WEI Gang | Vice general manager | Male | 33 | September 19, 2016 | 0 | 0 | 41.82 | NO | |||
ZHOU Long | Vice general manager | Male | 45 | July 3, 2020 | 0 | 0 | 39.38 | NO | |||
ZHAO Difang | Financial Manager | Female | 48 | May 12, 2014 | 5.01 | 5.01 | 36.90 | NO | |||
Total | / | / | / | / | / | 14.01 | 17.01 | 3 | / | 519.48 | / |
Name | Main working experience |
ZHAO | He used to be Deputy Secretary of the Party Committee and mayor of Chi'an Town, Yiwu City, Deputy Secretary of the Party Committee, Vice Chairman and |
Wenge | General Manager of the Company, and is currently Secretary of the Party Committee and Chairman of the Company. |
WANG Dong | He used to be a member and deputy director of the Party Committee of Yiwu SASAO, and deputy director (concurrently) of the management committee of the State-owned Assets Operation Center, and is currently the deputy secretary of the Company’s party committee, vice chairman and general manager. |
WANG Chunming | He used to be Secretary of the Party Committee and Chairman of Yiwu Water Affairs Construction Group Co., Ltd., and is currently Secretary of the Party Committee and Chairman of Yiwu Market Development Group Co., Ltd. and Director of the Company. |
LI Chengqun | He is currently Deputy Secretary of the Party Committee, Vice Chairman, General Manager and Director of Yiwu Market Development Group Co., Ltd. |
XU Hang | He used to be deputy manager, manager and representative of securities affairs of the Company's investment and securities department, and manager and representative of securities affairs of the Company's securities legal department, and is currently a director and secretary of the Company. |
GU Zhixu | He used to be the project manager of Business Division 4 of Tianjian Accounting Firm, the business manager of Investment Division I of Zhejiang Financial Holding Investment Management Co., Ltd., the senior financial manager of the Planning and Finance Department of Zhejiang Financial Holding Co., Ltd., and the senior financial manager of the Planning and Finance Department of Zhejiang Financial Development Co., Ltd., and is currently assistant to the director of the Comprehensive Office of Zhejiang Finance Development Co., Ltd. and director of the Company. |
MA Shuzhong | He used to be a lecturer and associate professor at Zhejiang University, and is currently a professor at Zhejiang University, independent director of the Company, and independent director of Hangzhou Silan Microelectronics Co., Ltd. |
HONG Jianqiao | He is currently the dean of the Accounting Department of the School of Management of Fudan University, an executive director of the China Accounting Society, a director of the China Auditing Society, and a director of the China Accounting Review. He is currently an independent director of the Company, and concurrently an independent director of Shanghai Laiyifen Co., Ltd., Shanghai Jinjiang International Industrial Investment Co., Ltd., China Tianying Co., Ltd., and Jiangsu Boqian New Materials Co., Ltd. |
JIN Yanghua | He is currently the vice president of Zhejiang Gongshang University, the dean of the Institute of Organizational Behavior and Entrepreneurship Management, the vice president of the Zhejiang Society of Behavioral Sciences, the Zhejiang Zhijiang Youth Social Science Scholar, and the Zhejiang Provincial Youth and Middle-aged Discipline Leader. He resigned as an independent director of the Company on September 2, 2020 (before the Company elects a new independent director, he still performs his duties as an independent director). |
ZHU Hang | He used to be the investment management post of the Investment Management Department of Zhejiang Financial Development Company, the investment manager and senior investment manager of the financial management department of Zhejiang Financial Holding Co., Ltd., and the assistant to the general manager of the financial management department. He resigned as a director of the Company on November 19, 2020. |
LIU Zhiyuan | He has served successively as the dean of the Accounting Department of Nankai University, the deputy director of the Corporate Governance Center, the deputy dean of the School of Business, and other academic positions, such as a professor of accounting at the School of Business of Nankai University, a doctoral supervisor, and a member of the National Accounting Graduate Professional Degree Education Steering Committee. He resigned as an independent director of the Company on April 28, 2020. |
WU Yabin | He used to be the Dean of the School of International Business and Economics of the University of International Business and Economics, and the Executive Dean of the Global Value Chain Research Institute of the University of International Business and Economics. He resigned as an independent director of the Company on March 17, 2020. |
JIN Xiaojia | He used to be the senior auditor of the third audit department of Lixin Certified Public Accountants (Zhejiang Branch), the accounting supervisor of the Finance Department of Yiwu Transportation Investment and Construction Group, and the current supervisor and chairman of the board of supervisors of the Company. |
WANG | She used to be the project manager of the audit department of Zhejiang New Century Certified Public Accountants, and is currently a full-time supervisor and |
Gaiying | company supervisor of the Supervisor Service Center of the State-owned Assets Supervision and Administration Office of Yiwu City. |
WANG Jinjian | He used to be the deputy general manager of Yiwu China Commodity City Property Development Co., Ltd., and is currently the general manager and company supervisor of Yiwu China Commodity City Property Development Co., Ltd. |
FANG Min | He used to be a clerk in the Company’s Huangyuan market branch, a business commissioner of the Company’s human resources department (party construction office), and currently serves as the Company’s human resources department (party construction office) business supervisor and employee supervisor of the Company. |
JIN Yongsheng | He used to be the head of internal control of the Company's supervision and audit department, the manager of the financial department of the Company's Yawu Expo Hotel, and the manager of the financial department of the Company's ocean hotel. He is currently the head of internal audit of the Company's legal audit department and a company supervisor. |
HUANG Ping | Former Secretary of Beiyuan Street, Yiwu City. From August 2016 to September 15, 2020, he served as a supervisor of the Company. |
ZHANG Yuhu | He used to be the general manager of the second branch of the Company's international trade city, the general manager of the Company's marketing department, the Company's market development director and general manager of the market development department, and the current general manager of the Company's strategy and development reform department. From August 2019 to December 8, 2020, he served as employee supervisor of the Company. |
LIU Zhenting | She used to be the Deputy General Manager of the Fifth Branch of the Company's International Trade Mart and the General Manager of the Fifth Branch of the Company's International Trade Mart. She is currently the Deputy General Manager of the Market Operation Company and HRBP. From August 2019 to December 8, 2020, she served as the employee supervisor of the Company. |
JIN Gengzhong | He used to be the Deputy Director of the Party Leadership Group of Yiwu Municipal Bureau of Land and Port Affairs and Port Administration, the Deputy General Manager of the Party Leadership Group of Zhejiang Huajie Investment Development Co., Ltd., and the Deputy General Manager of Europe Huajie Development Co., Ltd. He is currently the deputy general manager of the Company. |
WU Xiubin | He used to be a member of the party committee and deputy general manager of Yiwu Urban and Rural New Community Investment and Construction Group Co., Ltd., a member of the party committee and deputy general manager of Yiwu Construction Investment Group Co., Ltd. and is currently the deputy general manager of the Company. |
ZHANG Qizhen | He used to be the Company's marketing manager and marketing director and is currently the Company's deputy general manager. |
WEI Gang | He used to be the branch director of Shishi Company of China Telecom Quanzhou Branch, and is currently the deputy general manager of the Company. |
ZHOU Long | Served as the general manager of the supply chain business department of Chuanhua Logistics Group and Chuanhua Zhilian Co., Ltd., the general manager of the industrial cluster business department of Baoneng Logistics Group Co., Ltd., and the general manager of the supply chain business department of Jiangsu Private Investment Holding Co., Ltd. and the general manager of Jiangsu Private Investment Supply Chain Management (Wuxi) Co., Ltd. and is currently the deputy general manager of the Company. |
ZHAO Difang | She used to be the manager of the Company's financial department and is currently the head of the Company's finance. |
1. The remuneration received by some of the Company's directors and executives is the pre-paid remuneration for 2020, and the actual remuneration will bedetermined after the completion of relevant assessments and the implementation of relevant procedures.
2. ZHANG Yuhu, LIU Zhenting, FANG Min, and JIN Yongsheng are the employee representative supervisors, and the remuneration listed in the table is thetotal remuneration received after the annual appraisal based on the position in the Company.
(ii) Equity incentives granted to directors and senior executives during the reporting period
□Applicable √Not applicable
II. Appointments of current and resigned directors, supervisors and senior executives during the reporting period(i) Position in shareholder units
√Applicable □Not applicable
Name of incumbent | Name of shareholder unit | Positions held in shareholder units | Start date of tenure | Term end date |
ZHAO Wenge | CCCH | Chairman and General Manager | October 2019 | |
WANG Dong | CCCH | Director | February 2021 | |
WANG Chunming | MDG | Board chairman | July 2019 | |
LI Chengqun | MDG | Vice Chairman and General Manager | February 2014 | |
GU Zhixu | Zhejiang Financial Development Co., Ltd. | Planning and Finance Department | February 2021 | |
JIN Xiaojia | Yiwu State-owned Assets and State-owned Enterprise Development Service Center | Assigned full-time supervisor | ||
WANG Gaiying | Yiwu State-owned Assets and State-owned Enterprise Development Service Center | Assigned full-time supervisor | ||
Description of the position of the shareholder unit | None |
Name of incumbent | Names of other units | Positions held in other units | Start date of tenure | Term end date |
XU Hang | Yiwu China Commodities City Investment Management Co., Ltd. | Director | March 2017 |
MA Shuzhong | Hangzhou Silan Microelectronics Co., Ltd. | Independent director | July 2016 | |
HONG Jianqiao | Shanghai Laiyifen Co., Ltd. | Independent director | ||
HONG Jianqiao | Shanghai Jinjiang International Industrial Investment Co., Ltd. | Independent director | ||
HONG Jianqiao | China Tianying Co., Ltd. | Independent director | ||
HONG Jianqiao | Jiangsu Boqian New Material Co., Ltd. | Independent director | ||
WANG Jinjian | Yiwu China Commodities City Property Development Co., Ltd. | Chairman, general manager | January 2019 | |
Description of employment in other units | None |
Decision-making procedures for the remuneration of directors, supervisors and senior executives | The remuneration of the Company’s remunerated directors, supervisors and senior executives shall be reviewed by the remuneration and appraisal committee of the Company’s board of directors and submitted to the board of directors for review and approval. The remuneration of directors and supervisors shall also be submitted to the general meeting of shareholders for review and approval. |
The basis for determining the remuneration of directors, supervisors and senior managers | The remuneration of independent directors is determined in accordance with the Independent Director Allowance System. The Independent Director Allowance System is deliberated and formulated by the board of directors and approved by the general meeting shareholders. The remuneration of the Company’s directors, supervisors and senior management shall be reviewed and determined by the Board of Directors’ Compensation and Appraisal Committee in conjunction with the assessment opinions and results of the state-owned regulatory authority, and submitted to the board of directors for deliberation. |
Actual payment of remuneration for directors, supervisors and senior management | The relevant assessment for 2020 has not yet been completed, and the actual payment will be determined after the assessment is completed and the relevant procedures are performed. |
The total remuneration actually received by all directors, supervisors and senior management at the end of the reporting period | The actual payment of remuneration will be determined after completing the assessment and performing the relevant procedures. The salary currently paid is the pre-paid salary for 2020, totaling RMB 5,194,800 before tax. |
Name | Title | Change | Reasons for change |
GU Zhixu | Director | Election | Election |
ZHU Hang | Director | Leaving office | Due to job adjustments, he resigned from director. |
HONG Jianqiao | Independent director | Election | Election |
JIN Yanghua | Independent director | Election | Election |
JIN Yanghua | Independent director | Leaving office | Due to job adjustments, he resigned from independent director. |
LIU Zhiyuan | Independent director | Leaving office | Resign as an independent director at the end of his term |
WU Yabin | Independent director | Leaving office | Due to job adjustments, he resigned from independent director. |
HUANG Ping | Chairman of the Supervisory Board | Leaving office | Due to job adjustments, he resigned from Chairman of the Supervisory Board. |
WANG Jinjian | Supervisor | Election | Election |
FANG Min | Employee supervisor | Election | Election of employee supervisors |
JIN Yongsheng | Employee supervisor | Election | Election of employee supervisors |
ZHANG Yuhu | Employee supervisor | Leaving office | Due to job adjustments, he resigned from Employee Supervisor. |
LIU Zhenting | Employee supervisor | Leaving office | Due to job adjustments, he resigned from Employee Supervisor. |
JIN Gengzhong | Vice general manager | Hiring | Hiring |
ZHOU Long | Vice general manager | Hiring | Hiring |
VI. Employees of the parent company and major subsidiaries(i) Employees
Number of employees in the parent company | 3,427 |
Number of employees in major subsidiaries | 1,070 |
Total number of employees | 4,497 |
Number of retired employees for whom the parent company and major subsidiaries have to bear expenses | 186 |
Professional composition | |
Professional composition category | Professional composition |
Production staff | 135 |
Salesperson | 136 |
Technical staff | 2,427 |
Financial officer | 148 |
Administration staff | 386 |
Security personnel | 790 |
Vehicle management staff | 475 |
Total | 4,497 |
Education level | |
Education level category | Quantity (person) |
Postgraduate | 103 |
Undergraduate | 1,501 |
Junior college | 1,428 |
High school | 1,028 |
Junior high school and below | 437 |
Total | 4,497 |
3. The remuneration of specially hired staff, staff waiting for duty, retired staff and timingpiecework staff shall be stipulated separately.
4. The Company's employee income generally includes four parts: job skill wages, bonuses,benefits, and allowances.
(iii) Training program
√Applicable □Not applicable
According to the different training organizations, the Company's employee training can bedivided into: OJT training, company internal training, expatriate training and online training.
1. OJT (On the Job Training) The training of ordinary employees and new employees by leadersof various departments, experienced or skilled employees belongs to OJT training, including theCompany's administrative management series training, business management series training,engineering technology series training, and security logistics series training.
2. Enterprise internal training. According to the Company's training needs, the Companyorganizes internal trainers or invites external training institutions to tailor training courses for theCompany, allowing employees to receive systematic training, including corporate culture, companyorganizational structure and rules and regulations, industry status and prospects, and professionalethics, etiquette, code of conduct, language, computer skills, etc.
3. Expatriate training In accordance with the needs of the Company's business developmentand job skills, the Company organizes personnel in specific positions to go out to participate in thetraining of training institutions, including financial securities series training, human resourcemanagement training, and enterprise management series training.
4. Network training It is an online training for employees through the application of informationtechnology and Internet technology, and different training contents are set for different positions, sothat training and learning are independent and personalized, and the use of resources is maximized.
(iv) Labor outsourcing
√Applicable □Not applicable
Total number of working hours of labor outsourcing | 11987.2 months |
Total remuneration paid for labor outsourcing | RMB 40,079,900 |
Section IX. Corporate GovernanceI. Description of corporate governance
√Applicable □Not applicable
In strict accordance with the Company Law, Securities Law, Guidelines for CorporateGovernance of Listed Companies and the relevant provisions of the China Securities RegulatoryCommission and other laws and regulations, the Company continuously establishes and improvesrelevant systems, strives to improve the corporate governance structure, standardize operations,and operate in compliance with laws. There is no difference between the corporate governancestructure of the Company and the regulatory documents on the governance of listed companiesissued by the China Securities Regulatory Commission.
1. Shareholders and general meetings
The Company convenes and holds a general meeting of shareholders in strict accordance withthe Rules of Procedure for the General Meeting of Shareholders to ensure that all shareholders of theCompany fully exercise their rights, especially those of small and medium shareholders. Inpeacetime, we earnestly receive visits and calls from shareholders to ensure the shareholders’ rightsto know, participate and vote on major company issues, so that shareholders can truly enjoy equalrights.
2. Controlling shareholders and listed companies
The controlling shareholder of the Company exercised the rights of investors through thegeneral meeting of shareholders in accordance with the law, and did not directly or indirectlyintervene in the Company's decision-making and business activities beyond the general meeting ofshareholders. The Company has achieved the five independences of personnel, assets, finances,institutions and businesses. The Company's board of directors, board of supervisors and internalinstitutions can operate independently. The controlling shareholder of the Company can strictlyabide by the promise made to the Company to avoid horizontal competition. The company shouldstrictly follows the Related Transaction Decision and Implementation System when it has connectedtransactions with its controlling shareholders to ensure that the connected transactions are fair andjust.
3. Directors and Board of Directors
The Company selects directors in strict accordance with the procedures stipulated in the Articlesof Association; convenes and holds board meetings in strict accordance with the Rules ofProcedures for the Board of Directors. All directors of the Company can seriously attend the board ofdirectors and shareholders meetings, actively participate in training, and earnestly perform theirduties as directors. Three independent directors can earnestly perform the duties and obligationsentrusted by laws, regulations and the Company's Articles of Association, and express independentopinions and suggestions on important company matters, so as to effectively protect the legitimaterights and interests of shareholders. Clarified the annual report review procedures of the AuditCommittee of the Board of Directors, and effectively played the role of each special committees.
4. Supervisors and Board of Supervisors
During the reporting period, the Company held four board of supervisors, and the conveningand holding procedures of each meeting complied with the provisions of the Company Law, theArticles of Association and the Rules of Procedure of the Board of Supervisors. Companysupervisors can earnestly perform their duties, supervise major company matters, supervise thelegality and compliance of the Company's directors and senior managers in performing their duties,safeguarding the legitimate rights and interests of the Company and shareholders.
5. Information disclosure and investor relationship management
According to the Information Disclosure Management System, the Company discloses relevantinformation truthfully, accurately, completely and in a timely manner. Investors can learn about theCompany through media promotion, telephone consultation, and company website. In addition tocompleting the mandatory periodic reports and temporary announcements disclosed by laws andregulations, the Company also actively carry out compliance and voluntary information disclosure,so that investors can have a continuous understanding of the operations that they care about, andtruly protect the shareholders' right to know.
Whether there are major differences between the corporate governance and the requirements of therelevant regulations of the China Securities Regulatory Commission; if there are major differences,the reasons should be explained.
□Applicable √Not applicable
II. 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 |
2019 Annual General Meeting of Shareholders | 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 |
2020 Fourth Extraordinary General Meeting of Shareholders | October 26, 2020 | www.sse.com.cn | October 27, 2020 |
2020 Fifth Extraordinary General Meeting of Shareholders | December 10, 2020 | www.sse.com.cn | December 11, 2020 |
Distribution Plan, Proposal on Renewing the Appointment of Accounting Firms, Proposal on theProposed Issuance of Debt Financing Instruments in the Next 12 Months, Proposal on AdditionalIndependent Directors.
4. The 2020 Third Extraordinary General Meeting of Shareholders reviewed and approved theProposal on the Proposal to Transfer Part of the Equity Interests in a Wholly-owned Subsidiary andRelated Transactions.
5. The 2020 Fourth Extraordinary General Meeting of Shareholders reviewed and approved theProposal on the Redemption of Some Directors' Remuneration in 2019 and the Proposal on theBy-election of Supervisors.
6. The Fifth Extraordinary General Meeting of Shareholders in 2020 deliberated and approvedthe Proposal on the Company's 2020 Restricted Stock Incentive Plan (Draft)and its summary,Proposal on the Measures for the Evaluation and Management of the Implementation of theCompany's 2020 Restricted Stock Incentive Plan, Proposal on requesting the shareholders meetingto authorize the board of directors to handle equity incentive related matters, Proposal on by-electionof directors.
III. Duties performed by directors(i) Board of Directors and Shareholders Meetings attended by Directors
Director Name | Independent director or not | Participation in Board of Directors | Participation in General meeting of shareholders | |||||
Number of board meetings this year | Number of attendances in person | Number of participations by communication | Number of delegates attended | Absence Frequency | Failure to attend the meeting in person twice in a row or not | The number of shareholders attending the general meeting | ||
ZHAO Wenge | NO | 20 | 19 | 17 | 1 | 0 | NO | 3 |
WANG Dong | NO | 20 | 20 | 17 | 0 | 0 | NO | 5 |
WANG Chunming | NO | 20 | 20 | 17 | 0 | 0 | NO | 2 |
LI Chengqun | NO | 20 | 20 | 17 | 0 | 0 | NO | 2 |
XU Hang | NO | 20 | 20 | 17 | 0 | 0 | NO | 6 |
GU | NO | 2 | 2 | 2 | 0 | 0 | 0 |
Zhixu | NO | |||||||
ZHU Hang | NO | 17 | 15 | 14 | 2 | 0 | Yes | 2 |
MA Shuzhong | Yes | 20 | 20 | 17 | 0 | 0 | NO | 5 |
HONG Jianqiao | Yes | 14 | 14 | 12 | 0 | 0 | NO | 3 |
JIN Yanghua | Yes | 14 | 14 | 12 | 0 | 0 | NO | 4 |
LIU Zhiyuan | Yes | 6 | 6 | 5 | 0 | 0 | NO | 1 |
WU Yabin | Yes | 6 | 6 | 5 | 0 | 0 | NO | 0 |
Number of board meetings held during the year | 20 |
Including: the number of on-site meetings | 3 |
Number of meetings held by communication | 17 |
Number of meetings held on site combined with communication methods | 0 |
VI. The Company's explanation on the fact that it cannot guarantee independence or
maintain its ability to operate independently with its controlling shareholder inbusiness, personnel, assets, organization, and finance
□Applicable √Not applicable
Where there is competition in the same industry, the Company's corresponding solution measures,work progress and follow-up work plan.
□Applicable √Not applicable
VII. The evaluation mechanism for senior managers during the reporting period, as
well as the establishment and implementation of incentive mechanisms
√Applicable □Not applicable
The salary appraisal of the senior management personnel is completed and determinedaccording to the performance appraisal method of the head of the enterprise and the Company'soperation and related appraisal indicators, then the salary determination is completed.
VIII. Disclosure of internal control self-evaluation report or not
√Applicable □Not applicable
The Company has compiled and disclosed the 2020 Internal Control Self-evaluation Report. Fordetails, please refer to the announcement on the Shanghai Stock Exchange website(www.sse.com.cn).
Explanation of major deficiencies in internal control during the reporting period
□Applicable √Not applicable
IX. Explanation of the internal control audit report
√Applicable □Not applicable
The Company hired Ernst & Young Hua Ming Certified Public Accountants (special generalpartnership) to audit the effectiveness of the Company's internal control in its 2020 financial report.The accounting firm has issued a standard unqualified internal control audit report. It is believed thatthe Company maintained effective internal control of financial reporting in all major aspects inaccordance with the Basic Standards for Corporate Internal Control and related regulations onDecember 31, 2020. For details of the internal control audit report, please refer to the announcementon the Shanghai Stock Exchange website (www.sse.com.cn).Disclosure of internal control audit report: YesOpinion type of internal control audit report: standard unqualified opinion
X. Others
□Applicable √Not applicable
Section X. Corporate Bonds
√Applicable □Not applicable
I. Basic information on corporate bonds
Unit: RMB100million
Bond name | Abbreviation | Code | Issue date | Expiry date | Outstanding amount | Interest rate (%) | Method of principal repayment and interest payment | Marketplace |
Publicly offered corporate bond 2019 of Zhejiang China Commodities City Group Co., Ltd (Phase I) | 19 YIWU 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 2019 of Zhejiang China Commodities City Group Co., Ltd (Phase II) | 19 YIWU 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 |
√Applicable □Not applicable
On June 5, 2020, the Company paid interest to all "19XS01" holders on time from June 5, 2019to June 4, 2020.On September 28, 2020, the Company paid interest to all "19XS02" holders on time fromSeptember 27, 2019 to September 26, 2020.
Other statement on corporate bonds
□Applicable √Not applicable
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 | |
Contacts | ZHANG Nan | |
Contact number | 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 |
made a series of plans and arrangements for the timely and full repayment of the corporate bonds,including determining the specific department and personnel to be in charge, opening a special bondrepayment account, formulating and strictly implementing the cash management plan, makingproper organization and coordination, giving full play to the role of the bond trustee and strictlyperforming the information disclosure obligation to develop a set of measures to ensure interestpayment and principal repayment for the bonds.
VI. Convention of bondholders’ meetings
□Applicable √Not applicable
VII. Performance of duties by the bond trustee of the Company’s corporate bonds
√Applicable □Not applicable
The trustee of the Company’s corporate bonds, Haitong Securities Co., Ltd., during thereporting period, performed its duty as the trustee in compliance with the Administrative Measuresfor the Issuance and Trading of Corporate Bonds, the Rules for Listing of Corporate Bonds onShanghai Stock Exchange, the Code of Conduct for Trustees of Corporate Bonds and other relatedlaws 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 the corporate bonds,principal repayment and interest payment in the Company’s designated special account.
VIII. The Company's accounting data and financial indicators for the past 2 years as of
the end of the reporting period
√Applicable □Not applicable
Unit: RMB10,000
Major indicator | 2020 | 2019 | Increase/decrease in the current period as compared to the prior corresponding period (%) | Reasons for change |
EBITDA | 251,515.14 | 275,610.05 | -8.74 | |
Current ratio | 91.44% | 120.44% | -29.00 | |
Quick ratio | 79.45% | 87.12% | -7.67 | |
Debt-to-asset ratio (%) | 52.78 | 58.23 | -5.44 | |
EBITDA to total debt ratio | 0.27 | 0.15 | 78.18 | |
Interest coverage ratio | 4.42 | 4.65 | -5.02 | |
Cash interest protection multiple | 3.13 | -1.79 | -274.91 | |
EBITDA-to-interest coverage ratio | 6.04 | 5.99 | 0.91 | |
Loan repayment rate (%) | 100 | 100 | ||
Interest payment rate (%) | 100 | 100 |
IX. Payment of interest and repayment of principal for other bonds and debt
financing instruments of the Company
√Applicable □Not applicable
1. The Company issued a 270-day super-short-term commercial paper of RMB1bn at an annualinterest rate of 3.30% on Aug 29, 2019. The lead underwriter was China Merchants Bank Co., Ltd.and the joint underwriter was Industrial and Commercial Bank of China Co., Ltd.. The Companyrepaid the principal and paid the interest for the bond upon its maturity on May 29, 2020.
2. The Company issued 180-day ultra-short-term financing bonds of RMB 1 billion on February18, 2020, with an annual interest rate of 2.89%. The lead underwriter is Agricultural Bank of ChinaCo., Ltd. The joint lead underwriter is Bank of Ningbo Co., Ltd., which is due to redeem the principaland interest on August 18, 2020.
3. The Company issued 120-day ultra-short-term financing bonds of RMB 1 billion on May 14,2020, with an annual interest rate of 1.97%. The lead underwriter is China Construction BankCorporation. The joint underwriter is the Export-Import Bank of China Co., Ltd., which is due toredeem the principal and interest on September 15, 2020.
4. The Company issued 120-day ultra-short-term financing bonds of RMB 1 billion on August 12,2020, with an annual interest rate of 2.89%. The lead underwriter is Industrial and Commercial Bankof China. The joint underwriter is the Export-Import Bank of China Co., Ltd., which is due to redeemthe principal and interest on December 12, 2020.
5. The Company issued 90-day ultra-short-term financing bonds of RMB 1 billion on September1, 2020, with an annual interest rate of 2.2%. The lead underwriter is Shanghai PudongDevelopment Bank Co., Ltd., which is due to redeem the principal and interest on December 2,2020.
6. The Company issued 90-day ultra-short-term financing bonds of RMB 1 billion on September28, 2020, with an annual interest rate of 2.5%. The lead underwriter is the Agricultural Bank of ChinaCo., Ltd., which is due to redeem the principal and interest on December 29, 2020.
7. The Company issued 90-day ultra-short-term financing bonds of RMB 1 billion on November25, 2020, with an annual interest rate of 2.5%. The lead underwriter is the Agricultural Bank of ChinaCo., Ltd., which is due to redeem the principal and interest on February 25, 2021.
8. The Company issued 90-day ultra-short-term financing bonds of RMB 1 billion on December8, 2020, with an annual interest rate of 2.45%. The lead underwriter is Shanghai PudongDevelopment Bank Co., Ltd., which is due to redeem the principal and interest on March 9, 2021.
9. The Company issued 28-day ultra-short-term financing bonds of RMB 1 billion on December24, 2020. The annual interest rate of the issuance is 2.70%. The lead underwriter is Industrial andCommercial Bank of China Co., Ltd., and the principal and interest are due on January 22, 2021.
X. Lines of credit from banks during the reporting period
√Applicable □Not applicable
As of the end of the reporting period, the Company’s bank credit lines totaled RMB 10 billion.Among them, the used credit line is RMB 1.838 billion, and the unused line is RMB 8.162 billion.
XI. Execution of promises or commitments in the prospectus of the Company’s
corporate bonds during the reporting period
√Applicable □Not applicable
During the reporting period, the Company strictly fulfilled the promises or commitments in theprospectus of the Company’s corporate bonds, used the raised funds in compliance therewith, andpaid interest of the corporate bonds in time, without prejudice to the interests of bond investors.
XII. Major events in the Company and their impacts on the Company’s operations and
solvency
√Applicable □Not applicable
The 22.667% equity in Hunan Provincial Asset Management Co., Ltd. held by the industry fundYiwu Shangfu Chuangzhi Investment Center (limited partnership), for which the Company’swholly-owned subsidiary CCCF subscribed, was frozen by the Public Security Bureau of Shanghaifor a term from Sep 6, 2018 until Sep 6, 2019. For details, please refer to the Announcement ofChina Commodities City on the Freezing of the Investment Project of the Industry Fund Subscribedfor by China Commodities 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 (limitedpartnership) in Hunan Provincial Asset Management Co., Ltd. kept being frozen by the PublicSecurity Bureau of Shanghai for a term from Sep 6, 2019 until Mar 5, 2020. For details, please referto the Announcement on the Progress of the Freezing of the Investment Project of the Industry FundSubscribed for by China Commodities City Financial Holdings (Announcement Code: Temporary2019-067) 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 Investment Center(limited partnership) in Hunan Provincial Asset Management Co., Ltd. kept being frozen by thePublic Security Bureau of Shanghai for a term from Mar 6, 2020 until Sep 5, 2020. For details,please refer to the Announcement of China Commodities City on the Freezing of the InvestmentProject of the Industry Fund Subscribed for by China Commodities City Financial Holdings(Announcement code: Temporary 2020-010) disclosed on the website of Shanghai Stock Exchangewww.sse.com.cn.
On September 6, 2020, the 22.667% equity of Hubei Asset Management Co., Ltd. held by YiwuShangfu Chuangzhi Investment Center (Limited Partnership) was frozen by Shanghai PublicSecurity Bureau. The freezing period is from September 6, 2020 to 2021. March 5th. For details,please refer to YIWU CCCs Announcement on the Freezing of Industrial Fund Investment ProjectsInvolved in Subscribing for CCCF(Announcement No.: L2020-067) disclosed by the Company on theShanghai Stock Exchange website www.sse.com.cn on September 8, 2020. ).
The amount involved in the freezing of the investment project of the industry fund subscribed forby CCCF occupied a small share in the Company’s total assets and revenue. Therefore, it would nothave materially adverse impact on the Company’s operation and solvency.
Section XI. Financial ReportI. Auditor’s report
√Applicable □Not applicable
All the shareholders of Zhejiang China Commodities City Group Co., Ltd,
1. Audit opinion
We have audited the financial statements of Zhejiang China Commodities City GroupCo., Ltd., including Consolidated & Corporate Balance Sheets as of December 31, 2020,Consolidated & Corporate Income Statements, Consolidated & Corporate Cash FlowStatements, Consolidated & Corporate Statements of Changes in Owner’s Equity for 2020and Notes to the Financial Statements.We believe that the attached financial statements were prepared according toAccounting Standards for Zhejiang China Commodities City Group Co., Ltd. in all materialaspects as a fair reflection of the consolidated and parent company’s financial status ofZhejiang China Commodities City Group Co., Ltd. on the December 31, 2020 and theoperation outcomes and cash flows of the company for 2020.
2. Basis of audit opinion
We conducted our audit in accordance with the Auditing Standards for ChineseCertified Public Accountants. The section “CPAs’ Responsibility for Audit of FinancialStatements” in the audit report further describes on our responsibilities under thesestandards. In accordance with the CPA Code of Ethics in China, we are independent ofZhejiang China Commodities City Group Co., Ltd. and have performed otherresponsibilities in respect of professional ethics.We believe that the audit evidence we have acquired is sufficient and effective, providing areasonable basis for our opinion.
3. Key audit matters
Key audit matters are matters that we believe are the most important matters for theaudit of the financial statements based on professional judgment. The response to suchmatters is based on the background of auditing the financial statements as a whole andforming an audit opinion. We do not express independent opinions on such matters. Thiswas also the background for our description for how every matter below was responded inthe audit.
We have fulfilled the responsibilities described in the "Certified Accountants'Responsibilities for the Audit of Financial Statements" section of this report, including thoserelated to these key audit matters. Correspondingly, our audit work included theimplementation of audit procedures designed to deal with the assessed risk of materialmisstatement in the financial statements. The results of our audit procedures, including theprocedures performed in response to the following key audit matters, provide a basis for theexpression of the audit opinion in the financial statements as a whole.
Key audit matters: | Audit response to the matter: |
Impairment of non-goodwill long-term assets with certain useful life | |
As of December 31, 2020, the book value of the non-goodwill assets with certain useful life in the Group’s market and supporting hotels, exhibition halls and commercial buildings, such as the corresponding property, plant and equipment, investment real estate, land use rights, construction in progress and long-term deferred expenses(hereinafter collectively referred to as "long-term assets") totaled RMB 12,189.12 million, | We reviewed the judgment of the management on the indications of impairment of long-term assets during the audit: 1. For long-term assets that involve impairment testing for indications of impairment, we have assessed the reasonableness of the asset groups identified by the management; 2. With the assistance of internal valuation experts, we assessed the |
accounting for 42% of the total book value of the consolidated assets of the Group. When identifying whether the above-mentioned long-term assets have any indications of impairment, and when carrying out impairment tests on the long-term assets with indications of impairment, the recoverable amount of the asset or asset group needs to be reviewed, the Group needs to review the recoverable amount of the asset or asset group. This requires the management to use major judgments and estimates to determine the estimated future sales income, gross profit, operating costs, the disposal value forecast and discount rate at the end of the useful life of the relevant assets and other key assumptions when predicting the present value of future cash flows.The evaluation process is complicated, so we identify them as key audit matters. Relevant information has been disclosed in Consolidated Notes III/ 30 and Consolidated Notes V.12, 13, 14, 15, and 17 of the financial statements. | reasonableness of the major assumptions and evaluation methods used by the Group management, like discount rates; 3. We assessed the reasonableness of key assumptions such as estimated sales income, gross profit, operating costs, and disposal value predictions at the end of the useful life of related assets in the future years, and checked basic data on the present value of expected future cash flows with relevant supporting evidence. 4. We compared and analyzed the actual performance of the current year with the predicted performance of the previous year; 5. We checked the adequacy and completeness of the relevant disclosures of the Group in the notes to the financial statements. |
Provision for falling price of inventory | |
As of December 31, 2020, the book value of the Group's some assets including development products, development costs, and land to be developed (hereinafter collectively referred to as “inventory”) totaled RMB 1,329.47 million, and the balance of the provision for falling price of inventory was RMB 28.30 million. On the balance sheet date, the inventory measured at the lower of cost and net realizable value. The calculation of net realizable value requires the use of assumptions and estimates, including the estimation of the selling price and the costs and expenses to be incurred until completion. As the amount of inventory is significant, and the calculation of net realizable value involves significant accounting estimates, we identified the provision for falling price of inventory as a key audit matter. Relevant information has been disclosed in Consolidated Notes III. 30 and Consolidated Notes V. 6 of the financial | We implemented the following procedures during the audit: 1. We have reviewed the method used by management for provision for falling price of inventory 2. We acquired the inventory falling price reserve calculation table provided by the management, reviewed the calculation of the provision for falling price of inventory by the management, assessed the reasonableness of the estimated selling price and the costs and expenses to be incurred by the time of completion, and compared which is higher between net realizable value of estimated selling price of inventory minus the amount of costs and expenses that will be incurred until completion and the book value to determine whether the amount of inventory depreciation reserves is correct. |
statements.
4. Other information
Zhejiang China Commodities City Group Co., Ltd.’s management is responsible forother information. Such information includes the information covered by the annual report,but the financial statements and the audit report provided by us are excluded.
Our audit opinion released in the financial statements do not cover other informationand we do not release any form of assurance conclusion on other information.
Our responsibility is to read other information in conjunction with our audit of thefinancial statements. During the process, we consider whether there is a materialinconsistency or other material misstatement in the financial statements with the knowledgeacquired by us during the audit process.
Based on the work we have performed, if we determine that there is a materialmisstatement of other information, we should report the fact. We have nothing to report inthis aspect.
5. Responsibility of management and governance for financial statements
The management is responsible for preparing financial statements in accordance withthe provisions of the Accounting Standards for Business Enterprises to achieve fairreflection, and designing, implementing and maintaining necessary internal controlsto prevent these financial statements from material misstatement arising from fraud or error.
During preparing the financial statements, the management is responsible forassessing the sustainability management capabilities of Zhejiang China Commodities CityGroup Co., Ltd., disclosing, as applicable, going-concern-related matters and applying thegoing-concern assumption unless the management plans to liquidate Zhejiang ChinaCommodities City Group Co., Ltd. and discontinue operations or has no other realisticchoices.
The governance is responsible for supervising the financial reporting process ofZhejiang China Commodities City Group Co., Ltd.
6. Certified Public Accountants’ responsibility for audit of financial statements
Our goal is to obtain reasonable assurance about whether the financial statements arefree from material misstatement caused by fraud or error and express an opinion on thesefinancial statements based on our audits. The reasonable assurance is a guarantee at ahigh level, but there is no guarantee that an audit performed in accordance with the auditingstandards will always identify existing material misstatement. Misstatements may be causedby fraud or error. Misstatement is generally considered to be material if it is reasonablyexpected that the misstatement, alone or aggregated, may affect the financial decisionmade by the users of the financial statements based on the financial statements.
We applied professional judgment and professional skepticism during conducting auditwork in accordance with the Auditing Standards for CPA while performing following works:
(1) Identifying and evaluating the risk of material misstatements of financial statements
for fraud or error designing and implementing audit procedures to deal with theserisks and obtaining adequate and appropriate audit evidence as a basis for releaseof our audit opinion. As fraud may involve collusion, forgery, willful omission,misrepresentation or override of internal control, the risk of not discovering a materialmisstatement due to fraud is higher than the risk of not discovering a materialmisstatement resulting from an error.
(2) Understanding the internal control related to the audit in order to design the
appropriate audit procedures.
(3) Evaluating the appropriateness of the accounting policies selected by management
level and the reasonableness of accounting estimates and related disclosures.
(4) Concluding the appropriateness of management level’s use of the going concern
assumption while drawing a conclusion as to whether there is any materialuncertainty about the issues or circumstances that may cause major doubts aboutthe ability of the Zhejiang China Commodities City Group Co., Ltd. to continue as agoing concern on basis of the audit evidence acquired. If we conclude that there is asignificant uncertainty, the auditing standards require us to remind user of thestatements of the relevant disclosures in the financial statements in the audit report.If the disclosures are inadequate, we should release an unqualified opinion. Ourconclusion is based on the information available by the date of the audit report.However, future events or circumstances may result in Zhejiang China CommoditiesCity Group Co., Ltd. being unable to continue as a going concern.
(5) Evaluating the overall presentation, structure and content (including disclosure) of
the financial statements as well as whether the financial statements are a fairreflection of the related transactions and matters.
(6) Obtaining adequate and appropriate audit evidence on the financial information of
the entities or business activities in Zhejiang China Commodities City Group Co., Ltd.to express an opinion on the financial statements. We are responsible for directing,supervising and implementing the Group’s audit and assume full responsibility for theaudit opinion.We have communicated with the governance on the matters such as the scope andtiming of audit and major audit findings, including the notable defects of internal controlidentified in our audit.We also provided a statement to the governance that we had complied with theprofessional ethics requirements related to independence, and communicated with thegovernance all relationships and other matters that may be reasonably believed to affectour independence, and related preventive measures (if applicable).In the matters communicated with the governance, we determined which mattersshould be the most important to the audit of the financial statements of the current period,and should constitute the key audit matters accordingly. We described such matters in theaudit report, unless laws and regulations had prohibited public disclosure of these matters,or in rare cases, we determined that such matters should not be communicated in the auditreport if the negative consequences of communicating a matter in the audit report arereasonably expected to outweigh the public interests.
Chinese CPA: YIN Guowei(Project Partner)
Chinese CPA: YANG ZhuyeBeijing, China April 28, 2021
II. Financial statements
Consolidated Balance Sheet
December 31, 2020Prepared by: Zhejiang China Commodities City Group Co., Ltd.
Unit: RMB
Item | December 31, 2020 | December 31, 2019 |
Current assets: | ||
Monetary capital | 5,612,642,932.21 | 6,486,408,651.88 |
Held-for-trading financial assets | 51,712,734.31 | 38,077,703.92 |
Accounts Receivable | 153,573,476.86 | 16,031,078.05 |
Prepayments | 105,187,528.26 | 44,678,187.98 |
Other receivables | 2,708,478,136.25 | 1,397,228,398.98 |
In which: interest receivable | 121,401,210.48 | 191,064,382.11 |
Inventories | 1,329,467,728.17 | 4,296,061,444.25 |
Other current assets | 179,724,694.17 | 3,099,955,902.50 |
Total current assets | 10,140,787,230.23 | 15,378,441,367.56 |
Non-current assets: | ||
Long-term receivables | 126,756,573.81 | 61,250,000.00 |
Long-term equity investment | 3,832,897,502.71 | 1,771,420,054.57 |
Other equity instruments investment | 662,256,342.79 | 642,187,968.78 |
Other non-current financial assets | 1,523,925,249.81 | 1,519,449,439.02 |
Investment real estate | 1,960,426,291.73 | 1,863,218,356.40 |
Property, plant and equipment | 5,234,293,786.87 | 4,783,819,070.71 |
Construction in progress | 982,891,877.14 | 865,754,600.02 |
Intangible assets | 3,900,780,981.92 | 3,456,137,246.02 |
Development expenditures | 22,223,061.09 | - |
Long-term deferred expenses | 110,728,723.36 | 139,502,382.87 |
Deferred tax assets | 99,664,328.84 | 180,404,801.30 |
Other non-current assets | 152,495,196.56 | 661,648,707.19 |
Total non-current assets | 18,609,339,916.63 | 15,944,792,626.88 |
Total assets | 28,750,127,146.86 | 31,323,233,994.44 |
Current liabilities: | ||
Short-term loans | 1,257,179,389.40 | 4,178,903,704.82 |
Accounts payable | 636,463,802.23 | 525,241,493.48 |
Advances from customers | 112,752,897.25 | 4,508,455,128.63 |
Contract liabilities | 2,442,211,788.88 | - |
Employee compensations payable | 161,498,997.53 | 197,174,419.96 |
Taxes payable | 495,400,499.73 | 280,184,253.26 |
Other payables | 1,646,345,561.62 | 909,483,132.47 |
Non-current liabilities due within one year | 1,315,026,574.43 | 270,332,413.94 |
Other current liabilities | 3,023,608,041.68 | 2,023,012,118.22 |
Total current liabilities | 11,090,487,552.75 | 12,892,786,664.78 |
Non-current liabilities: | ||
Long- term loans | 282,000,000.00 | 530,694,313.98 |
Bonds payable | 3,552,161,709.68 | 4,564,291,387.81 |
Estimated liabilities | 110,620,306.10 | 110,620,306.10 |
Deferred incomes | 26,545,277.30 | 27,966,750.98 |
Deferred income tax liabilities | 113,602,923.79 | 112,574,338.69 |
Other non-current liabilities | - | 1,148.89 |
Total non-current liabilities | 4,084,930,216.87 | 5,346,148,246.45 |
Total Liabilities | 15,175,417,769.62 | 18,238,934,911.23 |
Owners' equity (or shareholders' equity): | ||
Paid-in capital (or equity) | 5,489,914,176.00 | 5,443,214,176.00 |
Capital reserves | 1,594,906,524.67 | 1,524,183,779.64 |
Less: treasury stocks | 137,298,000.00 | - |
Other comprehensive income | 78,149,661.33 | 66,267,192.74 |
Surplus reserve | 1,364,257,808.58 | 1,236,166,911.81 |
Retained earnings | 5,168,298,206.50 | 4,750,787,389.17 |
Total owner’s equity (or shareholders’ equity) attributable to the parent company | 13,558,228,377.08 | 13,020,619,449.36 |
Minority shareholders' equity | 16,481,000.16 | 63,679,633.85 |
Total owner’s equity (or shareholders’ equity) | 13,574,709,377.24 | 13,084,299,083.21 |
Total liabilities and owners’ equity (or shareholders’ equity) | 28,750,127,146.86 | 31,323,233,994.44 |
Item | December 31, 2020 | December 31, 2019 |
Current assets: | ||
Monetary capital | 5,435,867,497.50 | 6,312,119,746.26 |
Held-for-trading financial assets | 6,632.72 | 1,211.14 |
Accounts Receivable | 14,671,577.47 | 2,381,698.23 |
Prepayments | 29,452,445.04 | 11,914,907.36 |
Other receivables | 2,651,640,610.06 | 1,280,138,618.41 |
In which: interest receivable | 121,401,210.48 | 134,543,859.25 |
Inventories | 10,144,965.06 | 6,622,207.78 |
Other current assets | 3,082,340,716.76 | 4,252,429,806.32 |
Total current assets | 11,224,124,444.61 | 11,865,608,195.50 |
Non-current assets: | ||
Long-term receivables | 61,250,000.00 | 61,250,000.00 |
Long-term equity investment | 6,083,135,428.02 | 6,886,096,995.77 |
Other equity instruments investment | 662,256,342.79 | 642,187,968.78 |
Other non-current financial assets | 266,722,811.41 | 371,736,330.52 |
Investment real estate | 1,501,734,504.79 | 1,062,037,085.45 |
Property, plant and equipment | 4,444,239,239.28 | 3,929,018,558.56 |
Construction in progress | 856,248,099.10 | 780,166,171.12 |
Intangible assets | 3,777,092,772.41 | 3,331,543,646.76 |
Long-term deferred expenses | 58,705,952.97 | 63,262,990.25 |
Deferred tax assets | 85,739,381.21 | 94,333,102.87 |
Other non-current assets | 519,850,000.00 | |
Total non-current assets | 17,797,124,531.98 | 17,741,482,850.08 |
Total assets | 29,021,248,976.59 | 29,607,091,045.58 |
Current liabilities: | ||
Short-term loans | 1,257,179,389.40 | 4,178,903,704.82 |
Accounts payable | 444,254,309.61 | 208,383,192.69 |
Advances from customers | 97,380,931.49 | 2,918,036,408.24 |
Contract liabilities | 2,283,994,068.70 | |
Employee compensations payable | 131,469,702.81 | 162,095,870.71 |
Taxes payable | 546,100,633.28 | 280,400,924.97 |
Other payables | 1,333,312,494.36 | 618,839,560.98 |
Non-current liabilities due within one year | 1,315,026,574.43 | 270,332,413.94 |
Other current liabilities | 3,556,664,822.79 | 3,044,639,789.79 |
Total current liabilities | 10,965,382,926.87 | 11,681,631,866.14 |
Non-current liabilities: | ||
Long- term loans | 282,000,000.00 | 530,694,313.98 |
Bonds payable | 3,552,161,709.68 | 4,564,291,387.81 |
Estimated liabilities | 110,620,306.10 | 110,620,306.10 |
Deferred incomes | 26,545,277.30 | 27,966,750.98 |
Deferred income tax liabilities | 69,623,249.14 | 92,975,854.98 |
Other non-current liabilities | 187.73 | |
Total non-current liabilities | 4,040,950,542.22 | 5,326,548,801.58 |
Total Liabilities | 15,006,333,469.09 | 17,008,180,667.72 |
Owners' equity (or shareholders' equity): | ||
Paid-in capital (or equity) | 5,489,914,176.00 | 5,443,214,176.00 |
Capital reserves | 1,833,256,515.22 | 1,489,516,614.19 |
Less: treasury stocks | 137,298,000.00 | |
Other comprehensive income | 81,473,183.84 | 66,421,903.33 |
Surplus reserve | 1,364,204,332.75 | 1,236,113,435.98 |
Retained earnings | 5,383,365,299.69 | 4,363,644,248.36 |
Total owner’s equity (or shareholders’ equity) | 14,014,915,507.50 | 12,598,910,377.86 |
Total liabilities and owners’ equity (or shareholders’ equity) | 29,021,248,976.59 | 29,607,091,045.58 |
Legal representative: ZHAO Wenge Person in charge of accounting: WANG DongPerson in charge of the accounting body: ZHAO Difang
Consolidated Income Statement
January -December 2020
Unit: RMB
Item | 2020 | 2019 |
I. Total operating incomes | 3,725,686,100.39 | 4,042,767,521.18 |
Including: operating incomes | 3,725,686,100.39 | 4,042,767,521.18 |
II. Total operating costs | 2,797,025,785.03 | 2,651,993,165.55 |
Including: operating costs | 1,811,136,443.99 | 1,696,954,129.50 |
Taxes and surcharges | 165,885,982.83 | 270,418,487.50 |
Selling expenses | 241,889,186.44 | 157,579,827.86 |
General and administrative expenses | 377,516,845.45 | 281,213,431.82 |
R&D expenses | 18,507,626.99 | 18,268,182.12 |
Financial expenses | 182,089,699.33 | 227,559,106.75 |
Including: interest | 416,095,890.57 | 459,857,576.35 |
Interest income | 230,212,773.93 | 221,495,467.21 |
Add: other income | 17,986,332.14 | 9,026,831.74 |
Investment income (losses presented with "-") | 524,214,123.84 | 203,643,739.21 |
Including: investment income from associated enterprises and joint ventures | 34,968,640.68 | 52,930,591.13 |
Gains from changes in fair value (losses presented with "-") | -32,955,861.63 | 33,687,762.95 |
Credit impairment loss (loss is indicated by “-”) | -2,282,683.90 | -6,225,482.23 |
Loss for asset impairment (losses presented with "-") | - | 639,659.42 |
Income from asset disposal (losses presented with "-") | 8,180,591.72 | 140,269.17 |
III. Operating profit (losses presented with "-") | 1,443,802,817.53 | 1,631,687,135.89 |
Plus: non-operating income | 4,425,072.97 | 5,288,007.56 |
Less: non-operating expenses | 26,636,816.07 | 4,233,594.52 |
IV. Total profits (total loss presented with "-") | 1,421,591,074.43 | 1,632,741,548.93 |
Less: income taxes | 499,755,019.22 | 383,915,221.97 |
V. Net profit (net loss presented with "-") | 921,836,055.21 | 1,248,826,326.96 |
(I) Categorized by continuity of operation | ||
Net profits from continuing operation (net loss is indicated by “-”) | 921,836,055.21 | 1,248,826,326.96 |
2. Net profit from business discontinuity (net loss presented with “-”) | ||
(II) Categorized by ownership | ||
Net profits attributable to shareholders of the parent company (net loss is indicated by “-”) | 926,626,706.42 | 1,255,276,023.70 |
Minority interest(net loss is indicated by “-”) | -4,790,651.21 | -6,449,696.74 |
VI. Net after-tax amount of other comprehensive income | 11,916,631.45 | 98,584,983.09 |
(I) Other comprehensive income attributable to owners of the parent company, net of tax | 11,882,468.59 | 98,584,983.09 |
1. Other comprehensive income that cannot be reclassified as profits or loss | 15,051,280.51 | 98,774,028.40 |
(3) Changes in fair value of investments in other equity instruments | 15,051,280.51 | 98,774,028.40 |
2 . Other comprehensive income that will be reclassified as profits or loss | -3,168,811.92 | -189,045.31 |
(5) Cash flow hedging reserve | ||
(6) Difference arising from the translation of foreign currency financial statements | -3,168,811.92 | -189,045.31 |
(2) After -tax net of other comprehensive income attributable to minority shareholders | 34,162.86 | - |
VII. Total comprehensive income | 933,752,686.66 | 1,347,411,310.05 |
(I) Total comprehensive income attributable to owners of the parent company | 938,509,175.01 | 1,353,861,006.79 |
(II) Total comprehensive income attributable to minority shareholders | -4,756,488.35 | -6,449,696.74 |
VIII. Earnings per share: | ||
(I) Basic earnings per share | 0.17 | 0.23 |
(II) Diluted earnings per share | 0.17 | 0.23 |
Item | 2020 | 2019 |
I. Revenue | 3,004,461,701.48 | 3,162,564,146.39 |
Less: cost of sales | 1,057,141,636.22 | 1,105,173,102.86 |
Taxes and surcharges | 132,358,447.92 | 138,381,103.93 |
Selling expenses | 239,654,404.97 | 122,612,363.93 |
General and administrative expenses | 214,977,084.50 | 166,314,853.79 |
R&D expenses | ||
Financial expenses | 187,866,954.47 | 225,148,910.49 |
Including: interest | 416,572,917.39 | 459,857,576.35 |
Interest income | 230,214,546.47 | 221,495,467.21 |
Add: other income | 8,780,068.91 | 4,078,128.04 |
Investment income (losses presented with "-") | 658,729,792.04 | 266,253,278.48 |
Including: investment income from associated enterprises and joint ventures | 64,824,176.63 | 77,023,131.33 |
Gains from changes in fair value (losses presented with "-") | -103,343,955.11 | -1,514,075.48 |
Credit impairment loss (loss is indicated by “-”) | 205,158.05 | -465,882.00 |
Income from asset disposal (losses presented with "-") | 7,092,990.67 | 145,317.29 |
II. Operating profits (loss is indicated by “-”) | 1,743,927,227.96 | 1,673,430,577.72 |
Plus: non-operating income | 2,350,534.71 | 4,850,230.60 |
Less: non-operating expenses | 20,162,609.18 | 4,144,948.91 |
III. Profits before tax (loss is indicated by “-”) | 1,726,115,153.49 | 1,674,135,859.41 |
Less: income taxes | 445,206,185.75 | 315,478,874.35 |
IV. Net profits (net loss is indicated by “-”) | 1,280,908,967.74 | 1,358,656,985.06 |
(I) Categorized by continuity of operation(net loss is indicated by “-”) | 1,280,908,967.74 | 1,358,656,985.06 |
V. Other comprehensive income, net of tax | 15,051,280.51 | 98,774,028.40 |
(1) Other comprehensive income that cannot be reclassified into profit and loss | 15,051,280.51 | 98,774,028.40 |
3. Changes in fair value of investments in other equity instruments | 15,051,280.51 | 98,774,028.40 |
VI. Total comprehensive income | 1,295,960,248.25 | 1,457,431,013.46 |
Consolidated Cash Flow Statement
January -December 2020
Unit: RMB
Item | 2020 | 2019 |
1. Cash flow for operating activities: | ||
Cash received from selling goods and providing labor services | 4,448,611,152.91 | 4,073,995,655.26 |
Cash received for taxes and surcharges refunded | 4,456,323.70 | 254.91 |
Other cash received related to operating activities | 408,789,146.30 | 351,488,979.71 |
Subtotal of cash inflow from operating activities | 4,861,856,622.91 | 4,425,484,889.88 |
Cash paid for purchasing goods and receiving labor services | 2,379,428,567.25 | 4,260,309,838.08 |
Cash paid to and for employees | 585,624,913.63 | 541,605,553.26 |
Taxes and surcharges paid | 473,925,483.80 | 711,310,750.38 |
Other cash paid related to operating activities | 594,089,396.28 | 451,166,005.71 |
Subtotal of cash outflow from operating activities | 4,033,068,360.96 | 5,964,392,147.43 |
Net cash flow from operating activities | 828,788,261.95 | -1,538,907,257.55 |
II. Cash flow for investment activities: | ||
Cash received from investment | 13,116,015,960.26 | 2,195,019,595.80 |
Cash received from investment income | 297,606,559.61 | 312,418,038.76 |
Net cash received from disposal of property, plant and equipment, intangible assets and other long-term assets | 10,313,579.94 | 803,264.41 |
Net cash received from disposal of subsidiaries and other business units | 192,466,418.65 | -6,879,257.73 |
Other cash received related to investing activities | 4,450,486,259.27 | 5,183,236,686.81 |
Subtotal of cash inflow from investing activities | 18,066,888,777.73 | 7,684,598,328.05 |
Cash paid for acquisition of property, plant and equipment, intangible assets and other long-term assets | 1,212,154,493.64 | 951,820,970.76 |
Cash paid for investment | 13,865,803,003.64 | 5,030,090,904.39 |
Other cash paid related to investing activities | 2,352,817,932.28 | 1,600,535,000.00 |
Subtotal of cash outflow for investing activities | 17,430,775,429.56 | 7,582,446,875.15 |
Net cash flow from investing activities | 636,113,348.17 | 102,151,452.90 |
III. Cash flow for financing activities: | ||
Cash received for investment taking | 156,298,000.00 | 8,000,000.00 |
Including: cash received by subsidiaries from absorbing minority shareholders' investment | 19,000,000.00 | 8,000,000.00 |
Cash received for obtaining loans | 13,142,000,000.00 | 16,306,241,019.62 |
Other cash received related to financing activities | ||
Subtotal of cash inflow from financing activities | 13,298,298,000.00 | 16,314,241,019.62 |
Cash paid for debt paying | 15,552,228,773.17 | 13,310,614,256.00 |
Cash paid for distribution of dividends and profits, or payment for interest | 537,445,865.52 | 772,129,750.78 |
Including: dividends and profits paid by subsidiaries to minority shareholders | 114,400.00 | 480,000.00 |
Other cash paid related to financing activities | 64,460,000.00 | |
Subtotal of cash outflow from financing activities | 16,154,134,638.69 | 14,082,744,006.78 |
Net cash flow from financing activities | -2,855,836,638.69 | 2,231,497,012.84 |
IV. Impact of changes in exchange rate on cash and cash equivalents | -3,134,649.06 | -189,045.92 |
V. Net increase in cash and cash equivalents | -1,394,069,677.63 | 794,552,162.27 |
Add: 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 | 2,032,642,871.63 | 3,426,712,549.26 |
Legal representative: ZHAO Wenge Person in charge of accounting: WANG Dong Person in chargeof the accounting body: ZHAO Difang
Cash Flow Statement of Parent Company
January -December 2020
Unit: RMB
Item | 2020 | 2019 |
1. Cash flow for operating activities: | ||
Cash received from selling goods and providing labor services | 2,446,781,848.92 | 2,367,649,023.27 |
Cash received for taxes and surcharges refunded | 1,149,176.75 | 254.91 |
Other cash received related to operating activities | 241,467,188.43 | 303,539,111.80 |
Subtotal of cash inflow from operating activities | 2,689,398,214.10 | 2,671,188,389.98 |
Cash paid for purchasing goods and receiving labor services | 556,362,710.98 | 322,702,465.25 |
Cash paid to and for employees | 401,702,437.14 | 334,018,894.70 |
Taxes and surcharges paid | 258,399,863.90 | 517,758,701.35 |
Other cash paid related to operating activities | 450,114,859.64 | 200,703,001.32 |
Subtotal of cash outflow from operating activities | 1,666,579,871.66 | 1,375,183,062.62 |
Net cash flow from operating activities | 1,022,818,342.44 | 1,296,005,327.36 |
II. Cash flow for investment activities: | ||
Cash received from investment | 13,081,060,305.96 | 2,082,420,749.21 |
Cash received from investment income | 225,062,189.56 | 384,476,812.15 |
Net cash received from disposal of property, plant and equipment, intangible assets and other long-term assets | 474,396.78 | 774,343.89 |
Net cash received from disposal of subsidiaries and other business units | 2,232,000,000.00 | |
Other cash received related to investing activities | 2,775,280,817.96 | 4,717,358,398.04 |
Subtotal of cash inflow from investing activities | 18,313,877,710.26 | 7,185,030,303.29 |
Cash paid for acquisition of property, plant and equipment, intangible assets and other long-term assets | 1,192,740,121.04 | 792,555,494.44 |
Cash paid for investment | 14,745,855,008.73 | 8,965,543,014.54 |
Other cash paid related to investing activities | 2,007,512,948.00 | 157,575,000.00 |
Subtotal of cash outflow for investing activities | 17,946,108,077.77 | 9,915,673,508.98 |
Net cash flow from investing activities | 367,769,632.49 | -2,730,643,205.69 |
III. Cash flow for financing activities: | ||
Cash received for investment taking | 137,298,000.00 | |
Cash received for obtaining loans | 13,142,000,000.00 | 16,285,312,419.62 |
Subtotal of cash inflow from financing activities | 13,279,298,000.00 | 16,285,312,419.62 |
Cash paid for debt paying | 15,552,228,773.17 | 13,289,685,656.00 |
Cash paid for distribution of dividends and profits, or payment for interest | 537,331,465.52 | 771,649,750.78 |
Subtotal of cash outflow from financing activities | 16,089,560,238.69 | 14,061,335,406.78 |
Net cash flow from financing activities | -2,810,262,238.69 | 2,223,977,012.84 |
IV. Impact of changes in exchange rate on cash and cash equivalents | ||
V. Net increase in cash and cash equivalents | -1,419,674,263.76 | 789,339,134.51 |
Add: 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 | 1,885,867,436.92 | 3,305,541,700.68 |
Consolidated Statement of Changes in Owners’ Equity
January -December 2020
Unit: RMB
Item | 2020 | ||||||||
Equity attributable to equity holders | Minority shareholders' equity | Total owner's equity | |||||||
Paid-in capital (or equity) | Capital reserves | Less: treasury stocks | Other comprehensive income | Surplus reserve | Retained earnings | Subtotal | |||
1. Balance at the end of 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 “-”) | 46,700,000.00 | 70,722,745.03 | 137,298,000.00 | 11,882,468.59 | 128,090,896.77 | 417,510,817.33 | 537,608,927.72 | -47,198,633.69 | 490,410,294.03 |
(1) Total comprehensive income | 11,882,468.59 | 926,626,706.42 | 938,509,175.01 | -4,756,488.35 | 933,752,686.66 | ||||
(2) Capital invested and reduced by owner | 46,700,000.00 | 70,905,533.03 | 137,298,000.00 | -19,692,466.97 | -42,327,745.34 | -62,020,212.31 | |||
1.Common shares contributed by owners | 46,700,000.00 | 90,598,000.00 | 137,298,000.00 | ||||||
2. Capital invested in minority shareholders | 19,000,000.00 | 19,000,000.00 | |||||||
3. Amount of share-based payment into owner’s equity | 1,880,981.38 | 1,880,981.38 | 17,483.68 | 1,898,465.06 | |||||
4. Disposal of partial equity of subsidiaries without losing control | 1,625,966.37 | 1,625,966.37 | -1,625,966.37 | ||||||
5. Disposal of subsidiaries | 0.00 | -18,495,518.55 | -18,495,518.55 | ||||||
6. Acquisition of minority shareholders’ equity | -21,309,501.72 | -21,309,501.72 | -43,113,657.10 | -64,423,158.82 |
7. Deemed acquisition of minority shareholders’ equity | -1,889,913.00 | -1,889,913.00 | 1,889,913.00 | ||||||
(III) Profits distribution | 128,090,896.77 | -509,115,889.09 | -381,024,992.32 | -114,400.00 | -381,139,392.32 | ||||
1.Withdrawal of surplus reserve | 128,090,896.77 | -128,090,896.77 | |||||||
3.Distribution to owners (or shareholders) | -381,024,992.32 | -381,024,992.32 | -114,400.00 | -381,139,392.32 | |||||
(VI) Others | -182,788.00 | -182,788.00 | -182,788.00 | ||||||
IV. Closing balance of the current period | 5,489,914,176.00 | 1,594,906,524.67 | 137,298,000.00 | 78,149,661.33 | 1,364,257,808.58 | 5,168,298,206.50 | 13,558,228,377.08 | 16,481,000.16 | 13,574,709,377.24 |
Item | 2019 | |||||||
Equity attributable to equity holders | Minority shareholders' equity | Total owner's equity | ||||||
Paid-in capital (share capital) | Capital reserves | Other comprehensive income | Surplus reserve | Retained earnings | Subtotal | |||
1. Balance at the end of previous year | 5,443,214,176.00 | 1,520,831,406.81 | -32,317,790.35 | 1,080,217,404.75 | 3,750,079,863.58 | 11,762,025,060.79 | 62,990,540.97 | 11,825,015,601.76 |
Add: Changes in accounting policies | 20,083,808.55 | 207,890,050.96 | 227,973,859.51 | 227,973,859.51 | ||||
II. Opening balance of the current year | 5,443,214,176.00 | 1,520,831,406.81 | -32,317,790.35 | 1,100,301,213.30 | 3,957,969,914.54 | 11,989,998,920.30 | 62,990,540.97 | 12,052,989,461.27 |
III. YoY change (decrease is indicated by “-”) | 3,352,372.83 | 98,584,983.09 | 135,865,698.51 | 792,817,474.63 | 1,030,620,529.06 | 689,092.88 | 1,031,309,621.94 | |
(1) Total comprehensive income | 98,584,983.09 | 1,255,276,023.70 | 1,353,861,006.79 | -6,449,696.74 | 1,347,411,310.05 | |||
(2) Capital | 7,618,789.62 | 7,618,789.62 |
invested and reduced by owner | ||||||||
1.Common shares contributed by owners | 8,000,000.00 | 8,000,000.00 | ||||||
Disposal of subsidiaries | -381,210.38 | -381,210.38 | ||||||
(III) Profits distribution | 135,865,698.51 | -462,458,549.07 | -326,592,850.56 | -480,000.00 | -327,072,850.56 | |||
1.Withdrawal of surplus reserve | 135,865,698.51 | -135,865,698.51 | ||||||
3.Distribution to owners (or shareholders) | -326,592,850.56 | -326,592,850.56 | -480,000.00 | -327,072,850.56 | ||||
(VI) Others | 3,352,372.83 | 3,352,372.83 | 3,352,372.83 | |||||
IV. Closing balance of the current period | 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 |
Item | 2020 | ||||||
Paid-in capital (share capital) | Capital reserves | Less: treasury stocks | Other comprehensive income | Surplus reserve | Retained earnings | Total owner's equity | |
1. Balance at the end of previous year | 5,443,214,176.00 | 1,489,516,614.19 | 0.00 | 66,421,903.33 | 1,236,113,435.98 | 4,363,644,248.36 | 12,598,910,377.86 |
Add: Changes in accounting policies | |||||||
Correction for previous errors | |||||||
Others | |||||||
II. Opening balance of the current year | 5,443,214,176.00 | 1,489,516,614.19 | 0.00 | 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 “-”) | 46,700,000.00 | 343,739,901.03 | 137,298,000.00 | 15,051,280.51 | 128,090,896.77 | 1,019,721,051.33 | 1,416,005,129.64 |
(1) Total comprehensive income | 15,051,280.51 | 0.00 | 1,280,908,967.74 | 1,295,960,248.25 | |||
(2) Capital invested and reduced by owner | 46,700,000.00 | 343,739,901.03 | 137,298,000.00 | 0.00 | 0.00 | 0.00 | 253,141,901.03 |
1.Common shares contributed by | 46,700,000.00 | 90,598,000.00 | 137,298,000.00 | 0.00 |
owners | |||||||
2.Amount of share-based payment into owner’s equity | 1,880,981.38 | 1,880,981.38 | |||||
3. Disposal of subsidiaries | 251,260,919.65 | 251,260,919.65 | |||||
(III) Profits distribution | 128,090,896.77 | -509,115,889.09 | -381,024,992.32 | ||||
1.Withdrawal of surplus reserve | 128,090,896.77 | -128,090,896.77 | |||||
2. Distribution to owner (or shareholders) | -381,024,992.32 | -381,024,992.32 | |||||
(VI) Others | 247,927,972.68 | 247,927,972.68 | |||||
IV. Closing balance of the current period | 5,489,914,176.00 | 1,833,256,515.22 | 137,298,000.00 | 81,473,183.84 | 1,364,204,332.75 | 5,383,365,299.69 | 14,014,915,507.50 |
Item | 2019 | |||||
Paid-in capital (share capital) | Capital reserves | Other comprehensive income | Surplus reserve | Retained earnings | Total owner's equity | |
1. Balance at the end of previous year | 5,443,214,176.00 | 1,489,516,614.19 | -32,352,125.07 | 1,080,163,928.92 | 3,286,691,535.45 | 11,267,234,129.49 |
Add: Changes in accounting policies | 20,083,808.55 | 180,754,276.92 | 200,838,085.47 | |||
II. Opening balance of the current year | 5,443,214,176.00 | 1,489,516,614.19 | -32,352,125.07 | 1,100,247,737.47 | 3,467,445,812.37 | 11,468,072,214.96 |
III. YoY change (decrease is indicated by “-”) | 98,774,028.40 | 135,865,698.51 | 896,198,435.99 | 1,130,838,162.90 | ||
(1) Total comprehensive income | 98,774,028.40 | 1,358,656,985.06 | 1,457,431,013.46 | |||
(2) Capital invested and reduced by owner | ||||||
(III) Profits distribution | 135,865,698.51 | -462,458,549.07 | -326,592,850.56 | |||
1.Withdrawal of surplus reserve | 135,865,698.51 | -135,865,698.51 | ||||
2. Distribution to owner (or shareholders) | -326,592,850.56 | -326,592,850.56 | ||||
IV. Closing balance of the current period | 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. Basic information of the Company
1. Company profile
√Applicable □Not applicable
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’s main business activities: market development and operation andsupporting services, provision of online trading platforms and services,development and management of online trading market, etc., in the category ofcomprehensive services.The parent company of the Group is Yiwu China Commodities City HoldingsLimited (hereinafter referred to as “CCCH”) and the final controller of the Group isthe State-owned Assets Supervision and Administration Office of the People’sGovernment of Yiwu.These financial statements were approved by the company's board of directors onApril 28, 2021. According to the company's articles of association, these financialstatements are to be submitted to the general meeting of shareholders fordeliberation.
2. Consolidation scope of financial statements
√Applicable □Not applicable
The consolidation of financial statements is determined on the basis of control. Forthe changes in the current year, please refer to Note VIII.
IV. Preparation basis for 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. If an asset is impaired, thecorresponding provision for impairment should be made in accordance with relevantregulations.
2. Going concern
√Applicable □Not applicable
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 Estimates
Reminders on specific accounting policies and accounting estimates:
√Applicable □Not applicable
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 on compliance with Accounting Standards for Business Enterprises
The 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. Fiscal period
The Company’s accounting year is from Jan 1 to Dec 31 of each calendar year.
3. Operating cycle
√Applicable □Not applicable
The business cycle of the company is relatively short, and 12 months are used asthe standard for defining the liquidity of assets and liabilities.
4. Bookkeeping currency
The Company’s functional currency is RMB.The Group uses RMB as its functional currency and in the preparation of financialstatements. 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 andmerger of the enterprises not under common control
√Applicable □Not applicable
Business mergers are divided into business mergers under the same control andbusiness mergers not under the same control.Business merger under the same controlIf the enterprises participating in the merger are ultimately controlled by the sameparty or the same parties before and after the merger, and the control is nottemporary, the deal is a business merger under the same control. For a businessmerger under the same control, the party that acquires control of other participatingcompanies on the merger date is the merging party, and the other enterpriseparticipating in the merger are the merged party. The merger date refers to the dateon which the merging party actually obtains control of 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.
Business merger not under common controlIf the enterprises participating in the merger are not under the ultimate control of thesame party or the same parties before and after the merger, the deal is businessmerger not under the same control. For a business merger not under the samecontrol, the party that acquires control of other participating companies on theacquisition date is the acquirer, and the other companies participating in the mergerare the acquiree. The acquisition date refers to the date on which the acquireractually obtains control of the acquiree.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 andloss 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 and loss for the current period; othercomprehensive income from the long-term equity investment of the acquiree beforethe date of acquisition under the equity method shall be accounted on the samebasis as that for the direct disposal of related assets or liabilities by the investee,and other changes in shareholders’ equity than net profit and loss, other
comprehensive income and profit distribution shall be recognized in the profit andloss for the period where the date of acquisition falls.
6. Preparation method of consolidated financial statements
√Applicable □Not applicable
The financial statements to be consolidated is determined on the basis of control,including those of the Company and all of its subsidiaries. Subsidiaries refer to theentities 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.Assets, liabilities, equity, income, expenses and cash flows generated from all dealsbetween companies within the Group are fully offset at the time of merger.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 a business merger not under the same control,the operating results and cash flows of the acquiree will be included in theconsolidated financial statements from the day when the Group acquires control,until the control of the Group ceases. In the preparation of consolidated financialstatements, adjustments will be made to the financial statements of the subsidiarybased on the fair value of its identifiable assets, liabilities or contingent liabilitiesdetermined on the date of acquisition.For a subsidiary acquired through a business merger under the same control, theoperating results and cash flows of merged party will be included in theconsolidated financial statements since the beginning of the current period of themerger. In the preparation of consolidated financial statements, adjustments will bemade to the related items in its previous financial statements as if the reportingentity formed after the merger has been existing as from the ultimate controllerstarts 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 joint operations
√Applicable □Not applicable
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 basedon 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. Standard for determining cash and cash equivalents
Cash refers to the Group’s cash on hand and deposits that can be used for paymentat any time; cash equivalent refers to the investment held by the Group with a shortterm, strong liquidity, easy to convert into cash with a known amount, and with lowrisk of value changes.
9. Foreign currency transactions and translation of foreign currency financialstatements
√Applicable □Not applicable
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 and 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 and 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, othercomprehensive income relating to the foreign business is recognized in the profitand loss 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
√Applicable □Not applicable
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 receive cash flows from financial assets expires;
(2) The Group has transferred the right to collect the cash flow of financial assets, orassumed the obligation to pay the collected cash flow in full to a third party in atimely manner under the “handover agreement”; and (a) substantially transferredalmost all risks and rewards related to the ownership of financial assets, or(b)waived the control over the financial asset although almost all the risks andrewards of the ownership of the financial asset are neither transferred nor retained.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 profitand loss 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 orprevailing 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 andloss 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 and loss for the current period, the relatedtransaction fees will be directly recognized in the profit and loss for the currentperiod; the related transaction fees of other financial assets will be recognized in theinitially recognized 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 profit and loss from thede-recognition, modification or impairment thereof are all recognized in the profitand loss for the current period.Investment in the equity instruments that are measured by fair value and of whichthe changes in fair value are recognized in other comprehensive incomeThe 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 therelated dividend income (except for the dividend income expressly acting as arecovery of investment cost) is recognized in the profit and loss for the currentperiod, while the subsequent changes in fair value are recognized in othercomprehensive income, and no provision is required for impairment. When thefinancial assets are derecognized, the accumulated profit and loss previouslyrecognized in other comprehensive income will be moved out of othercomprehensive income and recognized in retained earnings.Financial assets that are measured at fair value and whose changes are included inthe current profit and lossThe 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 and 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 and 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 and loss for the current period and other financial assets.For the financial liabilities that are measured by fair value and of which the changesin fair value are recognized in the profit and loss for the current period, the relatedtransaction fees are recognized directly in the profit and 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 at fair value and whose changes are includedin the current profit and lossThe financial liabilities that are measured by fair value and of which the changes infair value are recognized in the profit and 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 and loss for the current period. The financial liabilities heldfor trading (including the derivative instruments as financial liabilities) aresubsequently measured by fair value and all changes in the fair value arerecognized in the profit and 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 receivables that do not contain significant financing components, the Groupmeasures the loss provision based on the amount of expected credit loss equivalentto the entire duration under a simplified measurement method,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.The Group's criteria for judging a significant increase in credit risk, the definition ofcredit-impaired assets, and the assumptions for the measurement of expectedcredit losses are disclosed in Note VIII.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 notes receivable
□Applicable√Not applicable
12. Accounts Receivable
Determination and accounting treatment of the expected credit loss of accountsreceivable
√Applicable □Not applicable
Please refer to Notes X-2. Risks of Financial Instruments
13. Accounts receivable financing
□Applicable √Not applicable
14. Other receivables
Determination and accounting treatment of the expected credit loss of other receivables
√Applicable □Not applicable
Please refer to Notes X-2. Risks of Financial Instruments
15. Inventories
√Applicable □Not applicable
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-valueconsumables 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 realestate development costs and development products include the land acquisitioncost, expenditures on construction and installation works, capitalized interest andother direct and indirect development expenses. The use right of the land fordevelopment purpose at the development of a project is amortized and recognizedas the development cost of the project based on the site area of the developmentproduct, and the development cost will be changed over to development productafter 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 and lossfor the current period. If the impact of the previous provision for inventorydepreciation has disappeared and the net realizable value of the inventory becomes
higher than the book value thereof, the amounts written down previously in theoriginal provision for inventory depreciation will be restituted and recognized in theprofit and loss for the 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
√Applicable □Not applicable
The Group presents contractual assets or contractual liabilities in the balance sheet basedon the relationship between performance obligations and customers’ payments. The Groupoffsets the contractual assets and contractual liabilities under the same contract as a netamount.A contractual asset refers to the right to receive a consideration for the transfer ofgoods or services to a customer, and this right depends on the factors other thanthe passage of time.
(2).Determination and accounting treatment of the expected credit loss of contractassets
□Applicable √Not applicable
17. Held-for -sale assets
□Applicable √Not applicable
18. Debt investments
(1).Determination and accounting treatment of the expected credit loss of debt
investments
□Applicable √Not applicable
19. Other debt investments
(1).Determination and accounting treatment of the expected credit loss of other debtinvestments
□Applicable √Not applicable
20. Long-term receivables
(1).Determination and accounting treatment of the expected credit loss of long-term
receivables
□Applicable √Not applicable
21. Long-term equity investment
√Applicable □Not applicable
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 a long-term equity investment acquired through abusiness merger under the same control, the initial investment cost is the share ofthe book value of the merged party’s owner’s equity acquired on the merger date inthe ultimate controlling party’s consolidated financial statements; The differencebetween the initial investment cost and the book value of the merger considerationis adjusted to the capital reserve (if it is insufficient to offset, the retained earningswill be offset); other comprehensive income before the merger date is accounted foron the same basis as that for the investee’s direct disposal of related assets orliabilities when disposing of the investment. The shareholders’ equity recognized bythe investee due to the changes in shareholders’ equity other than net profit andloss, other comprehensive income, and profit distribution is transferred to thecurrent profit and loss when the investment is disposed of; those that are stilllong-term equity investments after disposal are carried forward in proportion, andthose that are converted into financial instruments after disposal are carried forwardin full. For a long-term equity investment acquired through a business merger notunder the same control, the merger cost shall be used as the initial investment cost(for the business merger not under the same control realized step by step in apackage deal, the sum of the book value and the new investment cost on theacquisition date is used as the initial investment cost). The merger cost includes thesum of fair values of the assets paid, the liabilities incurred or assumed, and theequity securities issued by the acquirer; the other comprehensive income held priorto the acquisition date that is recognized for accounting under the equity method isaccounted for on the same basis as that for the investee’s direct disposal of relatedassets or liabilities when disposing of the investment. The shareholders’ equityrecognized by the investee due to the changes in shareholders’ equity other thannet profit and loss, other comprehensive income, and profit distribution istransferred to the current profit and loss when the investment is disposed of; thosethat are still long-term equity investments after disposal are carried forward inproportion, and those that are converted into financial instruments after disposal arecarried forward in full. The initial investment costs of the long-term equityinvestment acquired other than through merger are determined with the followingmethods: if an investment is acquired through the payment of cash, its initialinvestment cost consists of the purchase price actually paid and the expenses,taxes and other necessary expenses directly relating to the acquisition of theinvestment; and if an investment is acquired through the offering of equitysecurities, its initial investment cost is the fair value of the equity securities offered.For the accounting of the long-term equity investment through which the 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 and 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 investmentprofit and loss 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 profit and loss and other comprehensive income realized by the investees to beenjoyed or assumed. The share in the investee’s net profit and loss to be enjoyedshall be determined based on the fair value of the investee’ s identifiable assets atthe acquisition of investment, according to the Group’s accounting policies andaccounting periods and after net profits of the investee are adjusted with the portionof profit and loss from the internal transactions with its associates and joint venturesthat is attributable to the investor based on the share to be enjoyed by it (but if theloss from internal transactions falls in the assets impairment loss, it shall berecognized 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 profit and loss, othercomprehensive 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 thelong-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 profit and loss, 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 comprehensive
income 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 theshareholders’ equity recognized due to the investees’ other changes inshareholders’ equity than net profit and loss, other comprehensive income andprofit distribution will be recognized in the profit and loss for the current period prorata.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 and loss for the currentperiod.
22. Investment real estate
(1).In cost measurement model:
Depreciation 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 beenleased, 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 and 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:
Service life | Estimated net residual value | Annual depreciation rate | |
Houses and buildings | 20-30 years | 4% | 3.2%-4.8% |
Land use rights | 40-70 years | - | 1.4%-2.5% |
Type | Depreciation method | Depreciation period (number of years) | Residual value rate | Annual depreciation rate |
Houses and buildings | Straight-line method | 10-40 | 4% | 2.4%-9.6% |
General equipment | Straight-line method | 5-10 | 4% | 9.6%-19.2% |
Transport vehicles | Straight-line method | 6 | 4% | 16.0% |
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
√Applicable □Not applicable
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 and 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) Asset expenditure has occurred;
(2) Borrowing costs have been incurred;
(3) The acquisition or production activities necessary for the asset to reach theintended usable or saleable state have already begun.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 and loss for the current period.During capitalization, the amount of interest to be capitalized during eachaccounting period is determined as follows:
(1) Special borrowings are determined by the actual interest expense in the currentperiod, minus income from interest over temporary deposits or investment income.
(2) Occupied general borrowings are calculated and determined by multiplying theweighted average of asset expenditures for the portion of accumulated assetexpenditures beyond special borrowings by the weighted average interest rate ofthe occupied general borrowings.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 andloss for the current period until the acquisition, construction or production of theasset is resumed.
26. Biological assets
□Applicable √Not applicable
27. Oil and gas assets
□Applicable √Not applicable
28. Right-of-use assets
□Applicable √Not applicable
29. Intangible assets
(1).Measurement method, service life and impairment test
√Applicable □Not applicable
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 measuredreliably, and will be initially measured by cost. However, the intangible assetsacquired from the merger of the enterprises not under common control will beindividually recognized so long as the fair values thereof can be measured reliably,and will be measured 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 rights | 40-50 years |
Software | 10 years |
not satisfy the above conditions are included in the current profits and losses whenincurred.
30. Impairment of long-term assets
√Applicable □Not applicable
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. Anassets 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 bookvalue, the Group will write down its book value to the recoverable value and theamount written down will be recognized in the profit and 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 deferred expenses
√Applicable □Not applicable
Long-term prepaid expenses are amortized with the straight-line method and theamortization periods are as follows:
Amortization periodDecorations for houses and buildings 3-5 yearsAdvertising facilities 3-5 years
32. Contract liabilities
(1).Recognition of contract liabilities
√Applicable □Not applicable
The Group presents contractual assets or contractual liabilities in the balance sheet basedon the relationship between performance obligations and customers’ payments. The Groupoffsets the contractual assets and contractual liabilities under the same contract as a netamount.A contractual liability refers to an obligation to transfer goods or services to acustomer for the consideration received or receivable from the customer, such asthe amount received by the enterprise before the transfer of committed goods orservices.
33. Employee compensations
(1).Accounting treatment of short-term compensations
√Applicable □Not applicable
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 and loss for the current period or costs of related assets.
(2).Accounting treatment of post-employment benefits
√Applicable □Not applicable
The employees of the Group participate in the endowment insurance andunemployment insurance managed by the local government, as well as theenterprise annuity, and the corresponding expenditures are included in the relevantasset cost or current profit and loss when incurred.
(3).Accounting treatment of severance benefits
√Applicable □Not applicable
Where the Group provides severance benefits to its employees, the employeecompensation liabilities arising from the severance benefits will be recognized, andthe amount will be recognized in the profit and 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
□Applicable √Not applicable
34. Lease liabilities
□Applicable √Not applicable
35. Estimated liabilities
√Applicable □Not applicable
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) This obligation is the current obligation assumed by the Group;
(2) The performance of such obligation is likely to cause outflow of economicbenefits from the Group;
(3) The amount of such 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 reflect
the current best estimate, the book value will be adjusted based on the current bestestimate.
36. Share-based payment
√Applicable □Not applicable
Share-based payment is divided into equity-settled share-based payment andcash-settled share-based payment. An equity-settled share-based payment refersto a deal in which the Group uses shares or other equity instruments as theconsideration for settlement to obtain services.The equity-settled share-based payment in exchange for services provided byemployees shall be measured at the fair value of the equity instruments granted toemployees. If it can be exercised immediately after the grant, it shall be included inthe relevant costs or expenses at fair value on the grant date, and the capitalreserve shall be increased accordingly; if it cannot be exercised until the servicewithin the waiting period has been completed or the specified performanceconditions have been satisfied on each balance sheet date during the waitingperiod, the Group will, based on the best estimate of the number of exercisableequity instruments, include the services acquired in the current period, as relevantcosts or expenses based on the fair value on the grant date, and increase thecapital reserve accordingly .None of cost or expense shall be recognized for a share payment that cannot beexercised due to failure to meet non-market conditions and/or service periodconditions. Where market conditions or non-exercising conditions are stipulated inthe share-based payment agreement, regardless of whether the market conditionsor non-exercising conditions are satisfied, it shall be deemed as exercisable as longas all other performance conditions and/or service period conditions have beensatisfied.If the equity-settled share payment is canceled, it will be treated as an acceleratedexercise on the cancellation day, and the unrecognized amount shall be recognizedimmediately. If an employee or other party has option to satisfy the non-exercisingconditions but fails to satisfy within the waiting period, it shall be treated ascancellation of equity-settled share-based payment. However, if a new equityinstrument is granted and if it is determined that the new equity instrument grantedis used to replace the canceled equity instrument on the grant date of the newequity instrument, the replacement equity instruments granted in the same wayshall be treated in the same way as that for the modification of the terms andconditions for the original equity instrument.
37. Preferred stocks, perpetual bonds and other financial instruments
□Applicable √Not applicable
38. Incomes
(1).Accounting policies for the recognition and measurement of revenue
√Applicable □Not applicable
Incomes from contracts with customers (since January 1, 2020)The Group recognizes incomes when it has fulfilled its performance obligations inthe contract, that is, the customer has acquired the control over the relevant goodsor services. The acquisition of the control over related goods or services means the
ability to control the use of the goods or the provision of the service and obtainalmost all of the economic benefits from them.Commodity sales contractsCommodity sales contracts between the Group and customers usually only includeperformance obligations for the transferred commodities. The Group generallyrecognizes incomes on the basis of comprehensive consideration of the followingfactors, at the time when the customer obtains control of the relevant products: theacquisition of the current right to receive payment for the commodities, the transferof the major risks and rewards in the ownership of the commodities, the transfer ofthe legal ownership of the commodities, the transfer of the physical assets of thecommodities, and the acceptance of the commodities by the customer.Service contractsThe service contracts between the Group and its customers usually includeperformance obligations such as the provision of the use of commercial spaces inthe Commodity City and its operating supporting services, the provision of hotelaccommodation services and hotel catering services, and the provision offixed-term paid funding services to related parties outside the Group.The use of commercial spaces in the Commodity City and its supporting servicesSince customers obtain and consume the economic benefits brought about by theGroup’s performance at the time of the performance by the Group, the Groupregards them as a performance obligation to be fulfilled within a certain period oftime and recognizes an income based on the performance progress, except that theperformance progress cannot be reasonably determined. Under the output method,the Group determines the performance progress of the provision of the use ofcommercial spaces in the Commodity City and the supporting services for itsoperation based on the number of using days of the commercial spaces When theperformance progress cannot be reasonably determined, if the cost incurred by theGroup is expected to be compensated, the income shall be recognized according tothe amount of the cost incurred until the performance progress can be reasonablydetermined.Hotel accommodation businessSince customers obtain and consume the economic benefits brought about by theGroup’s performance at the time of the performance by the Group, the Groupregards them as a performance obligation to be fulfilled within a certain period oftime and recognizes an income based on the performance progress, except that theperformance progress cannot be reasonably determined. In accordance with theoutput method, the Group determines the performance progress of hotelaccommodation services based on the number of staying days. . When theperformance progress cannot be reasonably determined, if the cost incurred by theGroup is expected to be compensated, the income shall be recognized according tothe amount of the cost incurred until the performance progress can be reasonablydetermined.Hotel catering businessFor individual performance obligations in the provision of hotel catering services,the Group prices hotel catering services separately, and uses the completion ofhotel catering services as the point of income recognition.Fixed -time paid funding servicesSince customers obtain and consume the economic benefits brought about by theGroup’s performance at the time of the performance by the Group, the Group
regards them as a performance obligation to be fulfilled within a certain period oftime and recognizes an income based on the performance progress, except that theperformance progress cannot be reasonably determined. Under the output method,the Group determines the performance progress of the services for the fixed-termpaid funding services based on the number of using days of funds. When theperformance progress cannot be reasonably determined, if the cost incurred by theGroup is expected to be compensated, the income shall be recognized according tothe amount of the cost incurred until the performance progress can be reasonablydetermined.Income (applicable to 2019)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 thebuyer, the Group no longer exercises continued management right or actual controlover the project, the related revenue has been received or can be proved to bereceived, the costs relating to the project can be measured reliably, and thenrevenue can be recognized.Income from labor 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 followingconditions 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.
Royalty incomeIt 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 business underdifferent business models
□Applicable √Not applicable
39. Contract cost
□Applicable √Not applicable
40. Government grants
√Applicable □Not applicable
A government grant is recognized when it can meet the requirements and can bereceived. If a government grant is a monetary asset, it should be measured at 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 and 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 andloss or against the related costs for the current period.The asset-related government grants shall be used to offset the book value ofrelated assets; orrecognized as deferred income, and included in profit and loss instages under a reasonable and systematic method during the useful life of therelated assets (but government grants measured at a nominal amount shall bedirectly included in the current profit and loss); if the relevant asset is sold,transferred, scrapped or damaged before the end of its useful life, the balance ofthe undistributed deferred income shall be transferred to the current profit and losswhen the asset is disposal.
41. Deferred income tax assets and deferred income tax liabilities
√Applicable □Not applicable
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 and 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 theitems 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 in the following types oftransactions: the initial recognition of goodwill, or the initial recognition of assets orliabilities generated in a transaction with the following characteristics: thetransaction is not a business merger, and neither affecting accounting profits, norimpacting taxable incomes or deductible losses.
(2) For taxable temporary differences related to investments in subsidiaries, jointventures and associated enterprises, the time for the reversal of the temporarydifferences can be controlled and the temporary differences may not be reversed inthe foreseeable 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 in the following types oftransactions: the transaction is not a business merger, and neither affectingaccounting profits, nor impacting taxable incomes or deductible losses.
(2) For deductible temporary differences related to investments in subsidiaries,joint ventures, and associated enterprises,the corresponding deferred income taxassets are recognized when theyhave satisfied the following conditions at the sametime: the temporary differences are likely to be reversed in the foreseeable future,and it is likely to obtain taxable income that can be used to offset 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 be
offset against the benefits of deferred income tax assets in the future, the bookvalue of deferred income tax assets will be written down. On the balance sheetdate, 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
√Applicable □Not applicable
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 and loss for the current period with the straight-line method during eachperiod of the lease terms; contingent rentals are recognized in the profit and 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 and loss forthe current period with the straight-line method during each period of the leaseterms; contingent rentals are recognized in the profit and loss for the period at thetime of being actually incurred.Rental concessions triggered by the COVID-19 epidemicFor rental reductions, such as rental reductions andpayment postponement on theexisting lease contracts that are directly caused by the COVID-19 epidemic,between the Group and the counter-parties, if all of the following conditions havebeen satisfied at the same time, the Group will adopt a simplified method for allleases:
(1) The lease consideration after the concession is reduced or basically unchangedfrom that before the concession;
(2) The concessions are only for the rentals payable before June 30, 2021;
(3) Through comprehensive consideration of qualitative and quantitative factors, it isdetermined that there are no major changes in other terms and conditions of thelease.As a tenantFor operating leases, the Group will continue to include the original contractualrentals in the relevant asset costs or expenses in the same way as that before theconcession. In the event of any rental reduction or exemption, the Group will treatthe exempted rental as contingent rental and include it in the profit and loss duringthe exemption period.
As a lessorFor an operating lease, the Group continues to recognize the original contract rentalas lease income in the same way as before the reduction; if rental reduction orexemption occurs, the Group will treat the reduced or exempted rental as acontingent rental and offset the rental income during the reduction or exemptionperiod.
(2).Accounting treatment of financial lease
√Applicable □Not applicable
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 and loss forthe period at the time of being actually incurred.
(3).Determination and accounting treatment of leases under the new lease standards
□Applicable √Not applicable
43. Other important accounting policies and accounting estimates
√Applicable □Not applicable
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 that market participants canreceive from the sale of an asset or need to pay for the transfer of a liability in anorderly transaction that occurs on the measurement date. The Group measures therelated asset or liability by fair value, assuming that the orderly transaction of sellingthe asset or transferring the liability is executed in the principal market of relatedasset or liability, or if there is no principal market, assuming that the transaction isexecuted in the most advantageous market of related asset or liability. The principalmarket (or most advantageous market) is the marketplace which the Group canenter on the measurement date. The Group adopts the assumptions used bymarket players to maximize economic benefits in the pricing of the assets orliabilities.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 the
lowest-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 liabilitiesother 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 estimatesThe preparation of financial statements requires management to make judgments,estimates and assumptions, which would affect the presentation and disclosure ofincome, expenses, assets and liabilities, as well as the disclosure of contingentliabilities on the balance sheet date. However, the uncertainties of these assumptions and estimates may causematerial adjustment to the book value of the assets or liabilities that will be affectedin 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—as 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 –Merger 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 bedeemed 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 the
performance 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, the
management 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.Development expendituresWhen determining the amount of capitalization, management must makeassumptions on the expected future cash flow, the applicable discount rate, and theexpected benefit period of the asset.Deferred 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 ofdeferred 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
√Applicable □Not applicable
Contents and reason for changes in accounting policies | Approving procedure | Remarks (substantially affected items and amounts) |
In 2017, the Ministry of Finance promulgated the revised “Accounting Standards for Business Enterprises No. 14-Income” (referred to as the “New Income Standard”). The Group | Changes in statutory accounting policies | See other notes for details |
beganits accounting in accordance with the newly revised standards on January 1, 2020. According to the regulations for the transition period, the information of comparable period will not be adjusted, andthe difference due to the implementation of the new standardon the first day from the figure under the current standard will be retrospectively adjusted intoopening retained earnings for the reporting period. | ||
Amount in the Statements | Assuming that the original standard is implemented | Affected amount | |||||||
Advances from customers | 184,001,760.29 | 4,508,455,128.63 | (4,324,453,368.34 | ) | |||||
Contract liabilities | 4,202,117,719.47 | - | 4,202,117,719.47 | ||||||
Other current liabilities | 2,145,347,767.09 | 2,023,012,118.22 | 122,335,648.87 | ||||||
6,531,467,246.85 | 6,531,467,246.85 | - |
Corporate balance sheet
Amount in the Statements | Assuming that the original standard is implemented | Affected amount | |||||||
Advances from customers | 168,228,013.92 | 2,918,036,408.24 | (2,749,808,394.32 | ) | |||||
Contract liabilities | 2,749,808,394.32 | - | 2,749,808,394.32 | ||||||
2,918,036,408.24 | 2,918,036,408.24 | - |
Amount in the Statements | Assuming that the original standard is implemented | Affected amount | |||||||
Advances from customers | 112,752,897.25 | 2,562,235,439.30 | (2,449,482,542.05 | ) | |||||
Contract liabilities | 2,442,211,788.88 | - | 2,442,211,788.88 | ||||||
Other current liabilities | 3,023,608,041.68 | 3,016,337,288.51 | 7,270,753.17 | ||||||
5,578,572,727.81 | 5,578,572,727.81 | - |
Amount in the Statements | Assuming that the original standard is implemented | Affected amount | |||||||
Advances from customers | 97,380,931.49 | 2,381,375,000.19 | (2,283,994,068.70 | ) | |||||
Contract liabilities | 2,283,994,068.70 | - | 2,283,994,068.70 | ||||||
2,381,375,000.19 | 2,381,375,000.19 | - |
Item | December 31, 2019 | Jan 1, 2020 | Adjustment |
Current assets: | |||
Monetary capital | 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 | |
Prepayments | 44,678,187.98 | 44,678,187.98 | |
Other receivables | 1,397,228,398.98 | 1,397,228,398.98 | |
Inventories | 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 | |
Investment real estate | 1,863,218,356.40 | 1,863,218,356.40 | |
Property, plant and equipment | 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 | |
Development expenditures | |||
Long-term deferred expenses | 139,502,382.87 | 139,502,382.87 | |
Deferred 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 loans | 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 | 184,001,760.29 | -4,324,453,368.34 |
Contract liabilities | 4,202,117,719.47 | 4,202,117,719.47 | |
Employee compensations payable | 197,174,419.96 | 197,174,419.96 | |
Taxes 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 | 2,145,347,767.09 | 122,335,648.87 |
Total current liabilities | 12,892,786,664.78 | 12,892,786,664.78 | |
Non-current liabilities: | |||
Long- term loans | 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 incomes | 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 equity) | 5,443,214,176.00 | 5,443,214,176.00 | |
Capital reserves | 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 | |
Retained earnings | 4,750,787,389.17 | 4,750,787,389.17 | |
Total owner’s equity (or shareholders’ equity) attributable to the parent company | 13,020,619,449.36 | 13,020,619,449.36 | |
Minority shareholders' equity | 63,679,633.85 | 63,679,633.85 | |
Total owner’s 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 |
Item | December 31, 2019 | Jan 1, 2020 | Adjustment |
Current assets: | |||
Monetary capital | 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 | |
Prepayments | 11,914,907.36 | 11,914,907.36 | |
Other receivables | 1,280,138,618.41 | 1,280,138,618.41 | |
Inventories | 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 |
Investment real estate | 1,062,037,085.45 | 1,062,037,085.45 | |
Property, plant and equipment | 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 deferred expenses | 63,262,990.25 | 63,262,990.25 | |
Deferred 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 loans | 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 | 168,228,013.92 | -2,749,808,394.32 |
Contract liabilities | 2,749,808,394.32 | 2,749,808,394.32 | |
Employee compensations payable | 162,095,870.71 | 162,095,870.71 | |
Taxes 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 loans | 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 incomes | 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 equity) | 5,443,214,176.00 | 5,443,214,176.00 | |
Capital reserves | 1,489,516,614.19 | 1,489,516,614.19 | |
Less: treasury stocks | |||
Other comprehensive income | 66,421,903.33 | 66,421,903.33 | |
Surplus reserve | 1,236,113,435.98 | 1,236,113,435.98 | |
Retained earnings | 4,363,644,248.36 | 4,363,644,248.36 | |
Total owner’s equity (or 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 |
45. Others
□Applicable √Not applicable
VI. Taxes
1. Main tax varieties and tax rates
Major taxes and tax rates
√Applicable □Not applicable
Tax variety | Base of taxation | Tax rate |
VAT | Sale of goods or rendering of taxable service | The company is a general taxpayer. For the taxable income, the output tax is calculated at the rate of 13%, 9% and 6%, respectively, and the value-added tax is calculated on the basis of the difference after the input tax that is allowed to be deducted in the current period has been 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 | The corporate income taxes payable by the domestic enterprises are calculated at 25% of the taxable income; Yiwu Small Commodities City (Hong Kong) International Trade Co., Ltd. was registered in Hong Kong Special Administrative Region, and the profits tax rate of 16.50% that is applicable in Hong Kong is implemented; BETTER SILK ROAD FZE was registered in Dubai, and no corporate income tax is payable. | |
Land appreciation tax | Ratio of appreciation value to deductible items | Four-bracket progressive tax rate (30%~60%) |
Property tax | If the tax is levied according to price, the amount is 1.2% of the balance of the original value of the property after a 30% deduction; if the tax is levied according to rental, the amount is 12% of the rental income. | 1.2% or 12% |
Education surcharge | Indirect tax actually paid | 3% |
Local education surcharge | Indirect tax actually paid | 2% |
Cultural undertaking development fee | Advertising turnover | 3% |
Taxpayer | Income tax rate (%) |
Yiwu China Commodities City (Hong Kong) International Trade Co., Ltd. | 16.50% |
BETTER SILK ROAD FZE | Not levied |
VII. Notes to items in consolidated financial statements
1. Monetary capital
√Applicable □Not applicable
Unit: RMB
Item | Closing balance | Opening balance |
Cash in stock | 292,999.29 | 523,925.97 |
Bank Deposits | 4,812,189,759.31 | 6,181,870,591.84 |
Other monetary capital | 800,160,173.61 | 304,014,134.07 |
Total | 5,612,642,932.21 | 6,486,408,651.88 |
In which: amount deposited abroad | 25,679,209.72 | 5,282,591.84 |
Item | Closing balance | Opening balance |
Financial assets that are measured at fair value and whose changes are included in the current profit and loss | ||
Among them, | ||
Convertible bonds investment | 32,076,492.78 | |
Bank financing products | 6,000,000.00 | |
Equity instrument investment | 51,712,734.31 | 1,211.14 |
Total | 51,712,734.31 | 38,077,703.92 |
(5). Categorized disclosure based on the bad debt provision method
□Applicable √Not applicable
Accounts receivable for which bad debt provision is made individually:
□Applicable√Not applicable
Explanation for making bad debt provision for accounts receivable by group:
□Applicable√Not applicable
If the bad debt provision is made according to the general model of expected credit loss, please referto the disclosure of other receivables:
□Applicable √Not applicable
(6). Provisions for bad debts
□Applicable √Not applicable
(7). Notes receivable actually written off during the current period
□Applicable √Not applicable
Other descriptions
□Applicable √Not applicable
5. Accounts Receivable
(1).Disclosure based on account age
√Applicable □Not applicable
Unit: RMB
Age | Closing book balance |
Within 1 year | |
Within 1 year | 153,251,937.55 |
1 to 2 years | 440,254.08 |
2 to 3 years | |
Above 3 years | 11,562.06 |
Less: bad debt provision for accounts receivable | 130,276.83 |
Total | 153,573,476.86 |
Type | Closing balance | Opening balance | ||||||||
Book balance | Bad debt provision | Book value | Book balance | Bad debt provision | Book value | |||||
Amount | (%) | Amount | Provision ratio (%) | Amount | (%) | Amount | Provision ratio (%) |
Accounts receivable for which bad debt provision is made individually | 90,795,847.76 | 59.07 | 90,795,847.76 | 78,801.18 | 0.48 | 78,801.18 | 100.00 | |||
Accounts receivable for which bad debt provision is made by group | 62,907,905.93 | 40.93 | 130,276.83 | 0.21 | 62,777,629.10 | 16,258,851.28 | 99.52 | 227,773.23 | 1.40 | 16,031,078.05 |
Total | 153,703,753.69 | / | 130,276.83 | / | 153,573,476.86 | 16,337,652.46 | / | 306,574.41 | / | 16,031,078.05 |
2020 | 2019 | |||||||||||||||||
Book balance with expected | Expected credit | Expected credit loss for | Book balance with expected | Expected credit | Expected credit loss for | |||||||||||||
defaut | loss rate (%) | the entire duration | defaut | loss rate (%) | the entire duration | |||||||||||||
Within 1 year | 62,456,089.79 | 0.13 | 80,018.87 | 16,047,805.22 | 0.10 | 16,727.17 | ||||||||||||
1 - 2 years | 440,254.08 | 8.79 | 38,695.90 | - | 7.15 | - | ||||||||||||
2 -3 years | - | 23.53 | - | - | 19.14 | - | ||||||||||||
Above 3 years | 11,562.06 | 100.00 | 11,562.06 | 211,046.06 | 100.00 | 211,046.06 | ||||||||||||
62,907,905.93 | 130,276.83 | 16,258,851.28 | 227,773.23 |
Type | Opening balance | Amount of change during the current period | Closing balance | |||
Accrual | Recovery or reversal | Charge-off or write-off | Other changes | |||
Bad debt provision for | 306,574.41 | 239,253.07 | 216,028.20 | 199,522.45 | 130,276.83 |
accounts receivable | ||||||
Total | 306,574.41 | 239,253.07 | 216,028.20 | 199,522.45 | 130,276.83 |
Balance | Balance of bad debt provision | Proportion in the balance of accounts receivable (%) | ||||
Total balance of the accounts receivable with the top five entities | 115,983,771.59 | 32,270.82 | 75.58 |
Age | Closing balance | Opening balance |
Amount | (%) | Amount | (%) | |
Within 1 year | 102,657,415.19 | 97.59 | 42,831,583.46 | 95.86 |
1 to 2 years | 2,329,113.07 | 2.22 | 503,472.23 | 1.13 |
2 to 3 years | 413,870.29 | 0.93 | ||
Above 3 years | 201,000.00 | 0.19 | 929,262.00 | 2.08 |
Total | 105,187,528.26 | 100 | 44,678,187.98 | 100 |
Book balance | Proportion in the closing balance of prepayment at the end of the year (%) | |
Sociedad Nacional de Galapagos C.A. SONGA | 7,691,029.33 | 7.31 |
Zhejiang Jiangong Lvzhi Steel Structure Co., Ltd. | 7,480,053.08 | 7.11 |
Zhejiang Public Information Industry Co., Ltd. | 6,474,786.47 | 6.16 |
Chen Shanshan | 3,994,118.17 | 3.80 |
Bright Diva International Limited | 3,904,331.69 | 3.71 |
29,544,318.74 | 28.09 |
Item | Closing balance | Opening balance |
Interest receivable | 121,401,210.48 | 191,064,382.11 |
Other receivables | 2,587,076,925.77 | 1,206,164,016.87 |
Total | 2,708,478,136.25 | 1,397,228,398.98 |
Interest receivable
(1).Categorization of interest receivable
√Applicable □Not applicable
Unit: RMB
Item | Closing balance | Opening balance |
Cash occupation fee for receivables | 121,401,210.48 | 191,064,382.11 |
Total | 121,401,210.48 | 191,064,382.11 |
Age | Closing book balance |
Within 1 year | |
In which: sub-items | |
Within 1 year | 2,560,427,689.70 |
1 to 2 years | 2,986,155.27 |
2 to 3 years | 7,720,630.75 |
Above 3 years | 19,710,962.48 |
Less: Provision for bad debts of other receivables | 3,768,512.43 |
Total | 2,587,076,925.77 |
(2).Classification based on the nature of accounts
√Applicable □Not applicable
Unit: RMB
Nature of account | Closing book balance | Opening book balance |
Financial grants receivables from joint ventures and associated enterprises | 2,480,172,779.00 | 1,135,980,817.96 |
Withholdings, deposit and margin | 59,045,233.81 | 69,391,522.96 |
Receivables from self-operated land | 42,493,714.00 | |
Receivables from export tax rebate | 4,841,801.31 | |
Reserve | 523,397.65 | 791,675.95 |
Total | 2,587,076,925.77 | 1,206,164,016.87 |
Bad debt provision | Phase I | Phase II | Phase III | 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 | ||
Balance on January 1, 2020 in current period | ||||
Provision made in the current period | 2,391,793.47 | 2,391,793.47 | ||
Current reversal | 132,334.44 | 132,334.44 | ||
Current write-off | 12,220,187.04 | 12,220,187.04 | ||
Balance on December 31, 2020 | 3,768,512.43 | 3,768,512.43 |
Type | Opening balance | Amount of change during the current period | Closing balance | |||
Accrual | Recovery or reversal | Charge-off or write-off | Other changes | |||
Bad debt provision for other | 13,729,240.44 | 2,391,793.47 | 132,334.44 | 12,220,187.04 | 3,768,512.43 |
receivables | ||||||
Total | 13,729,240.44 | 2,391,793.47 | 132,334.44 | 12,220,187.04 | 3,768,512.43 |
Debtor | Nature of receivable | Closing balance | Age | Weight in the total closing balance of other receivables (%) | Bad debt provision Closing balance |
Yiwu Tonghui Shangbo Real Estate Co., Ltd. | Financial assistance | 1,486,368,548.00 | Within 1 year | 57.37 | |
Yiwu Gongchen Shangbo Property Co., Ltd. | Financial assistance | 521,659,831.00 | Within 1 year | 20.13 | |
Yiwu Handing Shangbo Real Estate Co., Ltd. | Financial assistance | 472,144,400.00 | Within 1 year | 18.22 | |
Yiwu Natural Resources and Planning Bureau | Receivables from land | 42,493,714.00 | Within 1 year | 1.64 | |
Hangzhou Property Maintenance Funds Management Center | Residential property maintenance funds | 13,180,039.22 | Above 3 years | 0.52 | 2,636,007.84 |
Total | / | 2,535,846,532.22 | / | 97.88 | 2,636,007.84 |
□Applicable √Not applicable
9. Inventories
(1).Category of inventory
√Applicable □Not applicable
Unit: RMB
Item | Closing balance | Opening balance | ||||
Book balance | Provision for inventory depreciation/provision for impairment of contract performance cost | Book value | Book balance | Provision for inventory depreciation/provision for impairment of contract performance cost | Book value | |
Raw materials | 402,020.27 | 402,020.27 | 785,843.60 | 785,843.60 | ||
Finished goods | 75,506,826.35 | 75,506,826.35 | 22,798,397.61 | 22,798,397.61 | ||
Land to be developed | - | - | - | - | ||
Development costs | 341,654,440.82 | 28,303,338.06 | 313,351,102.76 | 3,033,536,072.23 | 28,303,338.06 | 3,005,232,734.17 |
Development products | 932,153,659.76 | 932,153,659.76 | 1,263,222,441.45 | 1,263,222,441.45 | ||
Work-in-progress materials | 8,054,119.03 | 8,054,119.03 | 4,022,027.42 | 4,022,027.42 | ||
Total | 1,357,771,066.23 | 28,303,338.06 | 1,329,467,728.17 | 4,324,364,782.31 | 28,303,338.06 | 4,296,061,444.25 |
Item | Opening balance | Increase in the current period | Decrease in the current period | Closing balance | ||
Accrual | Others | Charge-off or write-off | Others | |||
Development costs | 28,303,338.06 | 28,303,338.06 | ||||
Total | 28,303,338.06 | 28,303,338.06 |
2020
Inventory-development costs
Project Opening blance Current increase Current decrease
Closing balance
Pujiang Lvgu 865,287,512.92 28,484,888.90 - 893,772,401.82 -
Haicheng Phase I Business Street67,907,950.27 - - - 67,907,950.27Haicheng Phase II 135,754,710.48 137,991,780.07 - - 273,746,490.55Jiamei Plaza 1,198,924,906.61 96,529,521.41 - 1,295,454,428.02 -Suxi Yinxiang 765,539,329.95 125,353,714.35 - 890,893,044.30 -Gongchen Shangbo 121,662.00 3,172,193,186.94 - 3,172,314,848.94 -
3,033,536,072.23 3,560,553,091.67 - 6,252,434,723.08 341,654,440.82
Inventory—development products
Project Opening blance Current increase Current decrease
Closing balance
Pujiang Lvgu 130,954,254.73 - - 130,954,254.73 -
Haicheng Phase I Business Street918,976,130.79 - - - 918,976,130.79Mingshi 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 Apartment31,653,448.92 - 9,096,509.42 22,556,939.50 -Qiantang Yinxiang 238,807.22 - - - 238,807.22Fenghuang Yinxiang 150,488,116.13 7,632,666.18 10,616,164.68 147,504,617.63 -He Tang Yue Se 10,845,072.64 - 65,435.89 10,779,636.75 -Shuangchuang Building 17,364,805.35 - 4,426,083.60 - 12,938,721.75
1,263,222,441.45 7,632,666.18 24,688,151.46 314,013,296.41 932,153,659.76
2019
Inventory-land to be developed
Project Opening balance Current increase Current decrease Closing balance
Land in Haicheng Phase II 115,714,005.00 - 115,714,005.00 -
Inventory-development costs
Fenghuang Yinxiang - 4,603,888.80 4,603,888.80 -Pujiang Lvgu 740,740,134.21 124,547,378.71 - 865,287,512.92Haicheng Phase I Business Street 67,907,950.27 - - 67,907,950.27Haicheng Phase II - 135,754,710.48 - 135,754,710.48Jiamei Plaza 1,076,075,702.30 122,849,204.31 - 1,198,924,906.61Suxi Yinxiang - 765,539,329.95 - 765,539,329.95Shuangchuang Building - 201,912,287.56 201,912,287.56 -Gongchen Shangbo - 121,662.00 - 121,662.00
1,884,723,786.78 1,355,328,461.81 206,516,176.36 3,033,536,072.23
Inventory—development products
Project Opening balance Current increase Delivery in the current year Closing balance
Pujiang Lvgu 150,775,486.13 - 19,821,231.40 130,954,254.73Haicheng Phase I Business Street 918,976,130.79 - - 918,976,130.79Mingshi Jiayuan 976,309.16 - 29,585.13 946,724.03Trade City Century Village 23,993.03 - - 23,993.03Jin Qiao Ren Jia 2,345,848.06 - 614,759.45 1,731,088.61Hangzhou Dongcheng Yinxiang Apartment 56,897,766.07 - 25,244,317.15 31,653,448.92Jiahe Square 1,241,659.42 - 1,241,659.42 -Qiantang Yinxiang 7,241,373.17 - 7,002,565.95 238,807.22Fenghuang Yinxiang 167,469,729.17 20,998,923.35 37,980,536.39 150,488,116.13He Tang Yue Se 57,548,424.68 - 46,703,352.04 10,845,072.64Shuangchuang Building - 201,912,287.56 184,547,482.21 17,364,805.35
1,363,496,719.68 222,911,210.91 323,185,489.14 1,263,222,441.45
Transfer-out by
disposal ofsubsidiariesTransfer-out by
disposal ofsubsidiaries
10. Contract assets
(1).Overview of contract assets
□Applicable √Not applicable
(2).Amount of and reasons for material changes to book value during the reportingperiod
□Applicable √Not applicable
(3).Provision for impairment of contract assets in the current period
□Applicable √Not applicable
If the bad debt provision is made according to the general model of expected creditloss, please refer to the disclosure of other receivables:
□Applicable √Not applicable
Other notes:
□Applicable √Not applicable
11. Held-for -sale assets
□Applicable √Not applicable
12. Non-current assets due within one year
□Applicable √Not applicable
Important debt investments and other debt investments at the end of the period:
□Applicable √Not applicable
Other descriptionsNone
13. Other current assets
√Applicable □Not applicable
Unit: RMB
Item | Closing balance | Opening balance |
Entrusted loans to the merchants | 3,279,187.50 | 3,234,841.81 |
Other entrusted loans | 35,000,000.00 | |
To-be-deducted input tax | 162,435,010.24 | 172,556,881.73 |
To-be-certified input tax | 14,195,996.43 | 1,449,678.96 |
Prepaid land transfer fees | 2,887,900,000.00 | |
Less: bad debt provision for entrusted loans | -185,500.00 | -185,500.00 |
Total | 179,724,694.17 | 3,099,955,902.50 |
(3).Provision for impairment
□Applicable √Not applicable
Amount of impairment provision for the current period and the basis for assessingwhether there is significant increase in the credit risk of financial instruments
□Applicable √Not applicable
Other descriptions
□Applicable √Not applicable
15. Other debt investments
(1).Overview of other debt investment
□Applicable √Not applicable
(2).Important other debt investment as of the close of the reporting period
□Applicable √Not applicable
(3).Provision for impairment
□Applicable √Not applicable
Amount of impairment provision for the current period and the basis for assessingwhether there is significant increase in the credit risk of financial instruments
□Applicable √Not applicable
Other notes:
□Applicable √Not applicable
16. Long-term receivables
(1).Overview of long-term receivables
√Applicable □Not applicable
Unit: RMB
Item | Closing balance | Opening balance | Range of discount rate | ||||
Book balance | Bad debt provision | Book value | Book balance | Bad debt provision | Book value | ||
Financial assistance receivable from joint ventures | 126,756,573.81 | 126,756,573.81 | 61,250,000.00 | 61,250,000.00 | |||
Total | 126,756,573.81 | 126,756,573.81 | 61,250,000.00 | 61,250,000.00 | / |
(3).Long-term receivables derecognized due to transfer of financial assets
□Applicable √Not applicable
(4).Amounts of assets and liabilities formed by the transfer of long-term receivables andcontinuing involvement
□Applicable √Not applicable
Other descriptions
□Applicable √Not applicable
17. Long-term equity investment
√Applicable □Not applicable
Unit: RMB
Investee | Balance | Change in the current period | Balance | Closing balance of impairment provision | |||
Additional investment | Reduced investment | Investment profit and loss recognized with the equity method | Others | ||||
1. Joint ventures | |||||||
Yiwu Shanglv | 348,139,707.06 | 17,691,049.85 | 365,830,756.91 | ||||
Yiwu Rongshang Property | 23,890,291.66 | -1,571,216.02 | 22,319,075.64 | ||||
Yiwu Chuangcheng Property | 17,885,010.32 | -6,440,223.58 | 11,444,786.74 | ||||
Yiwu Guoshen Shangbo Property | 20,000,000.00 | -20,000,000.00 | |||||
Others | 7,361,415.44 | 7,650,000.00 | 273,304.74 | 15,284,720.18 | 3,327,216.16 | ||
Subtotal | 397,276,424.48 | 27,650,000.00 | -10,047,085.01 | 414,879,339.47 | 3,327,216.16 | ||
2. Associates | |||||||
Binjiang Shangbo | 137,128,387.75 | 17,023,879.67 | 154,152,267.42 | ||||
Huishang Micro-finance | 83,302,336.78 | 13,800,000.00 | 1,894,229.29 | 71,396,566.07 | |||
Huishang Zijing | 70,556,851.19 | 7,515,718.04 | 78,072,569.23 | ||||
Chouzhou Financial Lease | 330,665,464.31 | 40,655,197.71 | 371,320,662.02 | ||||
Yiwu China Commodities City Investment Management Co., Ltd. | 9,508,049.22 | ||||||
Yiwu China Commodity City Fuxing Investment Center (Limited Liability Partnership) | 102,918,559.00 | 102,918,559.00 | |||||
Pujiang Lvgu Property Co., Ltd. | - | 6,014,599.92 | 373,657,866.73 | 379,672,466.65 | |||
Yiwu China Commodities City Property Development Co., Ltd. | - | -21,974,756.02 | 1,493,547,709.93 | 1,471,572,953.91 | |||
Yiwu Hongyi Equity Investment Fund Partnership | 590,375,442.26 | 90,000,000.00 | 9,381,362.86 | 689,756,805.12 | |||
Others | 59,196,588.80 | 58,711,015.67 | 3,257,784.87 | -15,494,505.78 | 99,155,313.82 | ||
Subtotal | 1,374,143,630.09 | 148,711,015.67 | 17,057,784.87 | 45,015,725.69 | 1,867,205,576.66 | 3,418,018,163.24 | 9,508,049.22 |
Total | 1,771,420,054.57 | 176,361,015.67 | 17,057,784.87 | 34,968,640.68 | 1,867,205,576.66 | 3,832,897,502.71 | 12,835,265.38 |
Management Co., Ltd. (Note 2) 9,508,049.22 - - 9,508,049.22Others 3,327,216.16 - - 3,327,216.16
12,835,265.38 - - 12,835,265.38
Note 1: In current year, the Group transferred 51% of the equity of Yiwu China Commodities CityProperty Development Co., Ltd. and Pujiang Lvgu Real Estate Co., Ltd., and the remaining 49% ofthe equity was measured at the fair value of RMB 1,867,205,576.66 on the disposal date. See NoteVIII.4 for details.Note 2: In 2017, Yiwu China Commodities City Financial Holdings Co., Ltd. (hereinafter referred to as“CCCF”), a wholly-owned subsidiary of the Group, and Shanghai Fuxing Industrial Group Co., Ltd.(hereinafter referred to as “Fuxing”) jointly incorporatedan fund of funds, Yiwu China Commodity CityFuxing Investment Center (Limited Liability Partnership) (hereinafter referred to as “FOF”). The FOFinvested12 sub-funds including Yiwu Shangfu Chuangzhi Investment Center (Limited LiabilityPartnership) (hereinafter referred to as “Shangfu Chuangzhi Funds”). CCCF, as a limited partner,subscribed RMB 998 million in the FOF, accounting for 49.9% of the subscribed capital. The paid-incapital was RMB 102.92 million, and there is no deadline for the payment for the unpaid capitalcontribution. The other limited partner of the FOF is Fuxing. CCCF also contributed RMB 9.8 million,49% of total shares, to jointly establish Yiwu China Commodity City Investment Management Co.,Ltd. (hereinafter referred to as “CCCIM”) with Fuxing as the general partner of the above-mentionedFOF and sub-funds. The FoF and CCCIM are both under the control of Fuxing and are associates ofCCCF. The above paid-in capital contribution made by CCCF to the FoF has been contributed toShangfu Chuangzhi Fund together with the capital contribution of Fuxing to the FoF through the FoFas a limited partner. With the capital contribution from the FoF as a limited partner and CCCF’s capitalcontribution to Shangfu Chuangzhi Fund as a limited partner, Shangfu Chuangzhi Fund made capitalcontribution of RMB820.54million to subscribe for the increase in the registered capital of HubeiProvincial Asset Management Co., Ltd. to acquire 22.667% equity therein.In 2018, CCCF learned during its after-investment follow-up management that Fuxing and its actualcontroller ZHU Yidong were suspected of having committed a criminal offense and the 22.667%equity held by Shangfu Chuangzhi Fund in Hubei Provincial Asset Management Co., Ltd. was frozenby the Public Security Bureau of Shanghai due to Fuxing’s contribution to the sources of the capitalcontribution. The Group believes that, on December 31, 2020, the Group’s investment in the FOF andShangfu Chuangzhi Fund was not related to the Fuxing’s investment, and the underlying assets hadno indications of impairment. Although they were still frozen, but there was no impairment on themsince they had not affected the Group’s equity. However, for the equity investment in CCCIM, a fullimpairment provision has been made since 2018. See Note XII.1 and Note V. 58 for details.
18. Other equity instruments investment
(1).Overview of other equity instruments investment
√Applicable □Not applicable
Unit: RMB
Item | Closing balance | Opening balance |
Shenwan Hongyuan Group Co., Ltd. | 662,256,342.79 | 642,187,968.78 |
Total | 662,256,342.79 | 642,187,968.78 |
Item | Closing balance | Opening balance |
Unlisted equity investment | 134,582,725.75 | 81,388,186.57 |
PE investment | 1,341,220,243.72 | 1,374,004,972.45 |
NEEQ equity investment | 48,122,280.34 | 64,056,280.00 |
Total | 1,523,925,249.81 | 1,519,449,439.02 |
Item | Buildings and structures | Land use rights | 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 | 537,982,200.09 | - | 537,982,200.09 |
(1) Outsourcing | 17,349,108.30 | - | 17,349,108.30 |
(3) Increase in business merger | |||
Transfer in from intangible assets | 10,665,898.19 | 10,665,898.19 | |
Transfer in from other non-current assets | 509,967,193.60 | 509,967,193.60 | |
3. Decrease in the current period | 279,135,883.38 | 148,437,955.74 | 427,573,839.12 |
(1) Disposal | 9,796,929.31 | 3,431,878.11 | 13,228,807.42 |
(2) Other transfer out | |||
Transferred out to construction in progress | 52,006,766.28 | - | 52,006,766.28 |
Transfer-out by disposal of subsidiaries | 217,332,187.79 | 145,006,077.63 | 362,338,265.42 |
4. Closing balance | 1,952,906,526.61 | 428,095,086.44 | 2,381,001,613.05 |
II. Cumulative depreciation and amortization | |||
1. Opening balance | 331,296,074.26 | 76,078,821.42 | 407,374,895.68 |
2. Increase in the current period | 80,223,550.55 | 13,070,689.35 | 93,294,239.90 |
(1) Accruals or amortization | 78,438,462.98 | 13,070,689.35 | 91,509,152.33 |
Transfer in from intangible assets | 1,785,087.57 | - | 1,785,087.57 |
3. Decrease in the current period | 59,370,274.93 | 20,723,539.33 | 80,093,814.26 |
(1) Disposal | 612,031.31 | 689,583.05 | 1,301,614.36 |
(2) Other transfer out | |||
Transferred out to construction in progress | 26,656,972.79 | - | 26,656,972.79 |
Transfer-out by disposal of subsidiaries | 32,101,270.83 | 20,033,956.28 | 52,135,227.11 |
4. Closing balance | 352,149,349.88 | 68,425,971.44 | 420,575,321.32 |
III. Provision for impairment | |||
IV. Book value | |||
1. Opening book value | 1,600,757,176.73 | 359,669,115.00 | 1,960,426,291.73 |
2. Closing book value | 1,362,764,135.64 | 500,454,220.76 | 1,863,218,356.40 |
Item | Book value | Reasons for having not obtained the ownership certificate |
Office building of the auxiliary project in western Yiwu | 103,587,608.79 | Completion settlement not completed |
Total | 103,587,608.79 |
Item | Closing balance | Opening balance |
Property, plant and equipment | 5,234,293,786.87 | 4,783,819,070.71 |
Total | 5,234,293,786.87 | 4,783,819,070.71 |
Item | Houses and buildings | Machinery and equipment | Transport vehicles | 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 | 724,202,660.14 | 181,203,099.10 | 989,815.99 | 906,395,575.23 |
(1) Acquisition | 18,448,199.34 | 21,948,700.98 | 989,815.99 | 41,386,716.31 |
(2) Changeover from construction in progress | 671,896,734.64 | 152,743,710.78 | 824,640,445.42 | |
(3) Increase in business merger | 14,950,757.11 | 6,510,687.34 | 21,461,444.45 | |
(4) Other transfer -in | 18,906,969.05 | 18,906,969.05 | ||
3. Decrease in the current period | 104,538,679.28 | 60,995,544.50 | 3,141,823.77 | 168,676,047.55 |
(1) Disposal or scrap | 12,154,159.32 | 56,250,070.41 | 280,000.00 | 68,684,229.73 |
(2) Transfer out to construction in progress | 56,422,037.27 | 56,422,037.27 | ||
(3) Transfer out for | 35,962,482.69 | 4,745,474.09 | 2,861,823.77 | 43,569,780.55 |
accounting of subsidiaries | ||||
4. Closing balance | 7,419,947,051.90 | 3,785,579,073.90 | 17,844,183.85 | 11,223,370,309.65 |
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 | 292,342,691.37 | 102,233,802.10 | 964,117.92 | 395,540,611.39 |
(1) Accruals | 288,627,855.93 | 101,716,355.72 | 964,117.92 | 391,308,329.57 |
(2) Business mergers not under the same control | 3,714,835.44 | 517,446.38 | 4,232,281.82 | |
3. Decrease in the current period | 52,663,108.89 | 53,001,531.58 | 2,631,159.40 | 108,295,799.87 |
(1) Disposal or scrap | 3,186,043.44 | 49,037,674.55 | 268,800.01 | 52,492,518.00 |
(2) Transfer out to construction in progress | 39,245,581.60 | 39,245,581.60 | ||
(3) Transfer out for disposal of subsidiaries | 10,231,483.85 | 3,963,857.03 | 2,362,359.39 | 16,557,700.27 |
4. Closing balance | 2,443,460,695.43 | 3,061,676,908.45 | 12,775,451.05 | 5,517,913,054.93 |
III. Provision for impairment | ||||
1. Opening balance | 471,163,467.85 | 471,163,467.85 | ||
4. Closing balance | 471,163,467.85 | 471,163,467.85 | ||
IV. Book value | ||||
1. Opening book value | 4,505,322,888.62 | 723,902,165.45 | 5,068,732.80 | 5,234,293,786.87 |
2. Closing book value | 4,125,338,490.24 | 652,926,881.37 | 5,553,699.10 | 4,783,819,070.71 |
Item | Original book value | Accumulated depreciation | Impairment provision | Book value |
General equipment | 6,084,431.99 | 5,841,054.71 | - | 243,377.28 |
Item | Book value | Reasons for the absence of the property right certificates |
Huangyuan Clothing Market | 288,521,707.59 | Completion settlement not completed |
CCC Hotel | 54,609,498.16 | Completion settlement not completed |
Liaoning Xiliu Yiwu China Commodity City | 457,364,435.99 | Completion settlement not completed |
The hotel as a supporting work for Liaoning Xiliu Yiwu China Commodity City | 514,343,238.46 | Completion settlement not completed |
Hedi | 1,314,838,880.20 |
Other notes:
√Applicable □Not applicable
Note 1: The impairment of property, plant and equipment was RMB 471,163,467.85, as theimpairment of property, plant and equipment of Haicheng Yiwu China Commodities City InvestmentDevelopment Co., Ltd.As of December 31, 2020, the total amount of property, plant and equipmentfor which the propertyright certificates had not been received due to the final settlement was still in progress was RMB1,314,838,880.20.
Liquidation of property, plant and equipment
□Applicable √Not applicable
22. Construction in progress
Presentation of items
√Applicable □Not applicable
Unit: RMB
Item | Closing balance | Opening balance |
Construction in progress | 982,891,877.14 | 865,754,600.02 |
Total | 982,891,877.14 | 865,754,600.02 |
Item | Closing balance | Opening balance | ||||
Book balance | Impairment provision | Book value | Book balance | Impairment provision | Book value | |
Binwang Market Culture Creative Industry Park Project | 34,195,677.60 | 34,195,677.60 | ||||
West Yiwu International Means of Production Market Auxiliary Project | 166,382,416.70 | 166,382,416.70 | 715,506,628.67 | 715,506,628.67 | ||
Liaoning Xiliu Yiwu China Commodities City Commerce Phase I Project—Hotel Project | 32,290,506.33 | -4,635,059.96 | 27,655,446.37 | 32,290,506.33 | -4,635,059.96 | 27,655,446.37 |
The Zhimei Dachen tourismproject | 43,194,369.48 | - | 43,194,369.48 | 29,859,985.81 | - | 29,859,985.81 |
The Chian West Sea tourism project | 54,552,839.23 | - | 54,552,839.23 | 28,072,996.72 | - | 28,072,996.72 |
The renovation project for A side of the square | - | - | - | 17,155,743.56 | - | 17,155,743.56 |
The reconstruction project of Meihu Convention and Exhibition Center | - | - | - | 5,415,678.90 | - | 5,415,678.90 |
The renovation project of Yindu Hotel and Office Building | 55,553,736.33 | - | 55,553,736.33 | - | - | - |
The comprehensive bonded zone project of the engineering company | 505,797,275.02 | - | 505,797,275.02 | - | - | - |
The business station project of the warehouse park of the Yiwu CCC | 89,894,127.82 | - | 89,894,127.82 | - | - | - |
The lighting project in the four zones | 29,724,101.17 | - | 29,724,101.17 | - | - | - |
Other projects | 10,137,565.02 | - | 10,137,565.02 | 7,892,442.39 | - | 7,892,442.39 |
Total | 987,526,937.10 | -4,635,059.96 | 982,891,877.14 | 870,389,659.98 | -4,635,059.96 | 865,754,600.02 |
Project | Budget | Opening amount Balance | Increase in the current period | Amount changed into fixed assets | Closing amount Balance | Proportion of total project investment in budget (%) | Progress of project | Cumulative amount of interest capitalized | In which: capitalized interest in the current period | Interest capitalization ratio for the current period (%) | Source of funds |
Binwang Market Culture Creative Industry Park Project | 507,560,000.00 | 34,195,677.60 | 58,896,086.21 | 93,091,763.81 | - | 100.00 | Self-owned | ||||
West Yiwu International Means of Production Market Auxiliary Project | 1,339,160,000.00 | 715,506,628.67 | 108,556,310.53 | 657,680,522.50 | 166,382,416.70 | 80.31 | Under construction as a whole | 89,136,955.95 | 29,273,761.94 | 3.67% | Self-owned/financing |
Liaoning Xiliu Yiwu China Commodities City Commerce Phase I Project—Hotel Project | 1,800,000,000.00 | 27,655,446.37 | - | - | 27,655,446.37 | 96.32 | Suspended | 1,546,108.03 | - | 4.05% | Self-owned/financing |
The Zhimei Dachen tourismproject | 60,000,000.00 | 29,859,985.81 | 13,334,383.67 | - | 43,194,369.48 | 71.99 | Self-owned | ||||
The Chian West Sea tourism project | 60,000,000.00 | 28,072,996.72 | 26,479,842.51 | - | 54,552,839.23 | 90.92 | Self-owned | ||||
The renovation project for A side of the square | 22,000,000.00 | 17,155,743.56 | 4,814,209.73 | 21,969,953.29 | - | 100.00 | Self-owned | ||||
The reconstruction project of Meihu Convention and Exhibition Center | 42,000,000.00 | 5,415,678.90 | 36,259,439.34 | 41,675,118.24 | - | 100.00 | Self-owned | ||||
The renovation project of Yindu Hotel and Office Building | 250,000,000.00 | - | 55,553,736.33 | - | 55,553,736.33 | 22.22 | Under construction as a whole | Self-owned | |||
The Yiwu Comprehensive Bonded Zone Project | 945,366,500.00 | - | 505,797,275.02 | - | 505,797,275.02 | 53.50 | Under construction as a whole | Self-owned | |||
Other projects | - | 7,892,442.39 | 12,468,210.21 | 10,223,087.58 | 10,137,565.02 | - | Self-owned | ||||
The business station project of the warehouse park of the Yiwu CCC | 190,000,000.00 | - | 89,894,127.82 | - | 89,894,127.82 | 47.31 | Self-owned | ||||
The lighting project in the four zones | - | - | 29,724,101.17 | - | 29,724,101.17 | - | Self-owned | ||||
Total | 5,216,086,500.00 | 865,754,600.02 | 941,777,722.54 | 824,640,445.42 | 982,891,877.14 | / | / | 90,683,063.98 | 29,273,761.94 | / | / |
23. Productive biological assets
(1).Bearer biological asset measured by cost
□Applicable √Not applicable
(2).Bearer biological asset measured by fair value
□Applicable √Not applicable
Other descriptions
□Applicable √Not applicable
24. Oil and gas assets
□Applicable √Not applicable
25. Right-of-use assets
□Applicable √Not applicable
26. Intangible assets
(1).Overview of intangible assets
√Applicable □Not applicable
Unit: RMB
Item | Land use rights | 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 | 619,516,800.00 | 10,668,946.25 | 630,185,746.25 |
(1) Acquisition | 619,516,800.00 | 10,668,946.25 | 630,185,746.25 |
3. Decrease in the current period | 82,718,030.02 | 36,000.00 | 82,754,030.02 |
(1) Disposal | 60,058,394.56 | - | 60,058,394.56 |
Transfer out to investment real estate | 10,665,898.19 | - | 10,665,898.19 |
Transfer-out by disposal of subsidiaries | 11,993,737.27 | 36,000.00 | 12,029,737.27 |
4. Closing balance | 5,390,387,256.44 | 19,279,040.17 | 5,409,666,296.61 |
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 | 128,855,341.87 | 1,123,713.38 | 129,979,055.25 |
(1) Accruals | 128,855,341.87 | 1,123,713.38 | 129,979,055.25 |
3. Decrease in the current period | 27,170,906.54 | 20,168.38 | 27,191,074.92 |
(1) Disposal | 23,843,766.89 | - | 23,843,766.89 |
Transfer out to investment real estate | 1,785,087.57 | - | 1,785,087.57 |
Transfer-out by disposal of subsidiaries | 1,542,052.08 | 20,168.38 | 1,562,220.46 |
4. Closing balance | 1,504,667,791.47 | 4,217,523.22 | 1,508,885,314.69 |
III. Provision for impairment | |||
IV. Book value | |||
1. Opening book value | 3,885,719,464.97 | 15,061,516.95 | 3,900,780,981.92 |
2. Closing book value | 3,450,605,130.32 | 5,532,115.70 | 3,456,137,246.02 |
(2).Information of land use rights without property right certificates
□Applicable √Not applicable
Other notes:
□Applicable √Not applicable
27. Development expenditures
√Applicable □Not applicable
Unit: RMB
Item | Opening amount Balance | Increase in the current period | Decrease in the current period | Closing amount Balance | ||
Internal development expenditure | Others | Recognized as intangible assets | Transferred into current profit and loss | |||
The development project for platform “chinagoods” | - | 22,223,061.09 | - | - | - | 22,223,061.09 |
Total | - | 22,223,061.09 | - | - | - | 22,223,061.09 |
Item | Opening balance | Increase in the current period | Amortized amount in the current period | Other decrease | Closing balance |
Decoration of buildings and | 130,917,605.11 | 33,704,795.62 | 57,130,265.44 | 349,674.48 | 107,142,460.81 |
structures | |||||
Advertising facilities | 8,584,777.76 | 2,539,130.89 | 7,537,646.10 | - | 3,586,262.55 |
Total | 139,502,382.87 | 36,243,926.51 | 64,667,911.54 | 349,674.48 | 110,728,723.36 |
Item | Closing balance | Opening balance | ||
Deductible temporary difference | assets | Deductible temporary difference | assets | |
Provision for impairment of assets | 18,551,468.79 | 4,637,867.20 | 28,086,747.07 | 7,021,686.77 |
Unrealized profits of internal transactions | 1,094,793.10 | 273,698.27 | 107,448,552.68 | 26,862,138.17 |
Deductible loss | 19,006,883.14 | 4,751,720.78 | 85,414,896.12 | 21,353,724.03 |
Estimated profit of pre-sold houses | - | - | 92,177,928.27 | 23,044,482.07 |
Recognized but unpaid liabilities | 268,732,373.15 | 67,183,093.30 | 333,438,714.83 | 83,359,678.71 |
Overspent advertising cost | 9,689,617.59 | 2,422,404.41 | 10,604,186.36 | 2,651,046.59 |
Changes infair value of other non-current financial assets | 81,582,179.51 | 20,395,544.88 | 64,448,179.86 | 16,112,044.96 |
Total | 398,657,315.28 | 99,664,328.84 | 721,619,205.19 | 180,404,801.30 |
Item | Closing balance | Opening balance | ||
Taxable temporary difference | Deferred income tax debt | Taxable temporary difference | Deferred income tax debt | |
Asset evaluation appreciation for merger of the enterprises not under common control | 1,068,720.92 | 267,180.23 | 1,257,714.04 | 314,428.51 |
Change in fair value of other equity instruments investment | 108,630,911.81 | 27,157,727.95 | 88,562,537.80 | 22,140,634.45 |
Changes in fair value of other non-current financial assets | 343,005,960.28 | 85,751,490.08 | 360,477,102.93 | 90,119,275.73 |
Changes in fair | 1,706,102.10 | 426,525.53 | - | - |
value of trading financial assets | ||||
Total | 454,411,695.11 | 113,602,923.79 | 450,297,354.77 | 112,574,338.69 |
Item | Closing balance | Opening balance |
Deductible temporary difference | 466,278,633.25 | 36,832,234.08 |
Deductible loss | 908,844,380.05 | 663,848,325.35 |
Total | 1,375,123,013.30 | 700,680,559.43 |
Year | Closing amount | Opening amount | Remarks |
2020 | - | 45,804,174.10 | |
2021 | 34,738,115.44 | 34,738,115.44 | |
2022 | 245,346,275.18 | 245,346,275.18 | |
2023 | 145,652,609.01 | 145,652,609.01 | |
2024 | 226,329,502.26 | 192,307,151.62 | |
2025 | 256,777,878.16 | ||
Total | 908,844,380.05 | 663,848,325.35 | / |
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 | - | - | 519,850,000.00 | 519,850,000.00 |
transfer fees | ||||||
Prepayment for renovation works and prepaid decoration rent | 14,241,880.56 | 14,241,880.56 | 3,545,391.19 | 3,545,391.19 | ||
Total | 152,495,196.56 | 152,495,196.56 | 661,648,707.19 | 661,648,707.19 |
Item | Closing balance | Opening balance |
Credit loans | 1,257,179,389.40 | 4,178,903,704.82 |
Total | 1,257,179,389.40 | 4,178,903,704.82 |
Unit: RMB
Item | Closing balance | Opening balance |
Accounts payable for real estate projects | 57,763,664.12 | 300,646,681.02 |
Accounts payable for market and auxiliary works projects | 511,789,572.40 | 180,639,638.94 |
Accounts payable for procurement for the hotel project | 26,767,337.63 | 23,650,330.93 |
Others | 40,143,228.08 | 20,304,842.59 |
Total | 636,463,802.23 | 525,241,493.48 |
Item | Closing balance | Reasons for not being paid or carried forward |
Accounts payable for real estate projects | 27,330,062.36 | Settlement has not been completed or the projects are within the warranty periods |
Total | 27,330,062.36 | / |
Item | Closing balance | Opening balance |
Advances from customers for goods | 4,120,226.22 | |
Rental advances | 105,773,195.96 | 100,001,145.95 |
Others | 6,979,701.29 | 79,880,388.12 |
Total | 112,752,897.25 | 184,001,760.29 |
Item | Closing balance | Opening balance |
Advances from customers for use fee of commercial spaces | 2,243,528,509.65 | 2,699,412,399.89 |
Advances from customers for housing purchase | 3,856,621.50 | 1,394,350,500.13 |
Advances from customers for goods | 100,786,067.26 | 14,584,986.91 |
Advances from customers for use fee of networking cables | 10,534,354.07 | 13,595,451.68 |
Advances from customers for advertising fee | 57,095,601.13 | 21,031,374.87 |
Advances from customers for loyalty of brands | 3,270,729.29 | 6,846,360.91 |
Others | 23,139,905.98 | 52,296,645.08 |
Total | 2,442,211,788.88 | 4,202,117,719.47 |
Item | Opening balance | Increase in the current period | Decrease in the current period | Closing balance |
I. Short-term compensations | 196,068,529.87 | 527,924,869.84 | 564,290,244.16 | 159,703,155.55 |
II. Post-employment benefits-defined contribution plans | 1,105,890.09 | 21,400,735.41 | 20,710,783.52 | 1,795,841.98 |
III. Dismissal benefits | - | 623,885.95 | 623,885.95 | - |
Total | 197,174,419.96 | 549,949,491.20 | 585,624,913.63 | 161,498,997.53 |
Item | Opening balance | Increase in the current period | Decrease in the current period | Closing balance |
I. Salaries, bonuses, allowances and subsidies | 195,405,526.67 | 429,021,642.37 | 465,851,221.18 | 158,575,947.86 |
II. Employee benefits | 36,202.12 | 44,884,910.83 | 44,921,112.95 | - |
III. Social insurance premiums | 411,043.10 | 15,254,243.77 | 14,700,055.28 | 965,231.59 |
Including: medical insurance premiums | 365,691.23 | 14,514,446.07 | 13,992,842.36 | 887,294.94 |
Work-related injury insurance premiums | 22,289.75 | 305,826.83 | 280,104.98 | 48,011.60 |
Maternity insurance premiums | 23,062.12 | 433,970.87 | 427,107.94 | 29,925.05 |
IV. Housing provident funds | 85,803.00 | 28,654,658.00 | 28,630,444.00 | 110,017.00 |
V. Labor union funds and employee education funds | 129,954.98 | 10,109,414.87 | 10,187,410.75 | 51,959.10 |
Total | 196,068,529.87 | 527,924,869.84 | 564,290,244.16 | 159,703,155.55 |
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 | 20,678,856.42 | 20,033,219.60 | 1,665,658.10 |
2. Contribution to the unemployment insurance scheme | 85,868.81 | 721,878.99 | 677,563.92 | 130,183.88 |
Total | 1,105,890.09 | 21,400,735.41 | 20,710,783.52 | 1,795,841.98 |
Item | Closing balance | Opening balance |
VAT | 90,094,604.12 | 41,578,727.82 |
Business tax | -431,783.32 | -15,123,820.98 |
Corporate income tax | 341,382,542.08 | 187,716,475.31 |
Personal income tax | 1,008,552.21 | 958,941.24 |
Urban maintenance and construction tax | 5,176,906.98 | -876,344.54 |
Land appreciation tax | -47,134,688.35 | -36,912,707.44 |
Property tax | 93,881,697.54 | 99,398,810.58 |
land holding tax | 5,357,865.24 | 4,905,517.10 |
Others | 6,064,803.23 | -1,461,345.83 |
Total | 495,400,499.73 | 280,184,253.26 |
International trade city market | Qiantang Impression Real Estate Project | Occident Center Real Estate Project | Total amount of prepaid tax | ||||||
Land appreciation tax | - | 109,576,320.66 | - | 109,576,320.66 | |||||
Business tax | 191,769.77 | 240,013.55 | - | 431,783.32 | |||||
Urban maintenance and construction tax | - | - | 731,793.32 | 731,793.32 | |||||
Education surcharges and | |||||||||
Local education surcharge | - | - | 522,709.51 | 522,709.51 | |||||
191,769.77 | 109,816,334.21 | 1,254,502.83 | 111,262,606.81 |
41. Other payables
Presentation of items
√Applicable □Not applicable
Unit: RMB
Item | Closing balance | Opening balance |
Other payables | 1,646,345,561.62 | 909,483,132.47 |
Total | 1,646,345,561.62 | 909,483,132.47 |
Item | Closing balance | Opening balance |
Withholdings, deposit and margin | 584,880,967.08 | 622,982,815.42 |
Operating expenses payable | 234,420,448.09 | 181,518,107.60 |
House reservation fees | 4,876,852.70 | |
Yiwugou’s bank reserve fund | 23,223,609.46 | 21,381,358.25 |
Restricted stock incentive plan | 137,298,000.00 | |
Pending investment refunds | 666,512,070.29 | 78,258,090.89 |
Others | 10,466.70 | 465,907.61 |
Total | 1,646,345,561.62 | 909,483,132.47 |
Item | Closing balance | Opening balance |
Long-term borrowings within one year | 300,634,822.21 | 270,332,413.94 |
Bonds payable due within 1 year | 1,014,391,752.22 | - |
Total | 1,315,026,574.43 | 270,332,413.94 |
Item | Closing balance | Opening balance |
Short-term financing notes payable | 3,004,009,789.85 | 2,011,484,133.28 |
To-be-reported output tax | 15,466,581.46 | 129,951,338.96 |
Dividend announced but not collected before listing | 2,083,112.65 | 2,083,112.65 |
Dividend payable to to-be-recognized accounts | 2,048,557.72 | 1,829,182.20 |
Total | 3,023,608,041.68 | 2,145,347,767.09 |
Bond Name | Face value | Issuing Date | Bond Term | Issuing Amount | Opening amount Balance | Current period Issuing | Interest accrued at face value | Premium and discount amortization | Current period Repayment | Closing amount Balance |
Super-short-term commercial paper | 100 | August 29, 2019 | 270 days | 1,000,000,000.00 | 1,010,236,895.84 | 13,434,426.23 | 1,023,671,322.07 | - | ||
Super-short-term commercial paper | 100 | December 9, 2019 | 270 days | 1,000,000,000.00 | 1,001,247,237.44 | 22,927,049.18 | 1,024,174,286.62 | - | ||
Super-short-term commercial paper | 100 | November 27, 2020 | 90 days | 1,000,000,000.00 | - | 1,000,000,000.00 | 2,397,260.27 | 80,052.40 | 1,002,227,312.68 | |
Super-short-term commercial paper | 100 | December 9, 2020 | 90 days | 1,000,000,000.00 | - | 1,000,000,000.00 | 517,808.22 | 95,833.33 | 1,000,238,641.55 | |
Super-short-term commercial paper | 100 | December 25, 2020 | 28 days | 1,000,000,000.00 | - | 1,000,000,000.00 | 1,543,835.62 | - | - | 1,001,543,835.62 |
Total | / | / | / | 5,000,000,000.00 | 2,011,484,133.28 | 3,000,000,000.00 | 40,820,379.52 | 175,885.73 | 2,047,845,608.69 | 3,004,009,789.85 |
Item | Closing balance | Opening balance |
Guarantee loans | - | 200,239,555.56 |
Credit loans | 282,000,000.00 | 330,454,758.42 |
Total | 282,000,000.00 | 530,694,313.98 |
Item | Closing balance | Opening balance |
MTN | 2,024,870,915.16 | 3,037,000,593.29 |
Corporate bonds | 1,527,290,794.52 | 1,527,290,794.52 |
Total | 3,552,161,709.68 | 4,564,291,387.81 |
Bond name | Face value | Issuing Date | Bond Term | Issuing Amount | Opening amount Balance | Current period Issuing | Interest accrued at face value | Premium and discount amortization | Current period Repayment | Closing amount Balance |
MTN | 100 | September 6, 2019 | 3 years | 1,000,000,000.00 | 1,012,965,562.70 | 47,630,136.99 | 1,296,052.52 | - | ||
MTN | 100 | July 15, 2019 | 3 years | 1,000,000,000.00 | 1,017,459,101.28 | 39,950,476.09 | 369,773.45 | 1,017,879,350.82 | ||
MTN | 100 | October 21, 2019 | 3 years | 1,000,000,000.00 | 1,006,575,929.31 | 39,721,099.63 | 394,535.40 | 1,006,991,564.34 | ||
Corporate bonds | 100 | June 5, 2019 | 3 years | 800,000,000.00 | 819,791,780.82 | 34,400,000.00 | - | 819,791,780.82 |
Corporate bonds | 100 | September 25, 2019 | 3 years | 700,000,000.00 | 707,499,013.70 | 27,930,000.00 | - | 707,499,013.70 | ||
Total | / | / | / | 4,500,000,000.00 | 4,564,291,387.81 | - | 189,631,712.71 | 2,060,361.37 | 3,552,161,709.68 |
Item | Opening balance | Closing balance | Cause of formation |
Pending L/C losses | 110,620,306.10 | 110,620,306.10 | - |
Total | 110,620,306.10 | 110,620,306.10 | / |
Based on the principle of prudence, the Group recognized estimated liabilities for the estimatedpotential losses. On Apr 30, 2018, the Group lost control over the subsidiary due to its disposal ofsome equity in the subsidiary. As of December 31, 2020, this matter had not been resolved.
51. Deferred incomes
Overview of deferred income
√Applicable □Not applicable
Unit: RMB
Item | Opening balance | Increase in the current period | Decrease in the current period | Closing balance | Cause of formation |
Asset-related government grants | 27,966,750.98 | 1,421,473.68 | 26,545,277.30 | ||
Income-related government grants | 3,000,000.00 | 3,000,000.00 | |||
Total | 27,966,750.98 | 3,000,000.00 | 4,421,473.68 | 26,545,277.30 | / |
Liability item | Opening balance | Increase in grant amount in the current period | Amount recognized in other income in the current period | Closing balance | Asset-related or income-related |
Subsidy for service industry cluster project | 5,776,779.23 | 266,666.64 | 5,510,112.59 | Asset-related | |
Interest subsidy for the international exhibition center construction fund | 22,189,971.75 | 1,154,807.04 | 21,035,164.71 | Asset-related | |
Subsidy for construction and operation of credit data center in Yiwu Credit Center | 3,000,000.00 | 3,000,000.00 | Income-related |
Opening balance | Increase or decrease in the current period (+, -) | Closing balance |
Issuing New shares | Bonus shares | Provident funds Conversion into shares | Others | Subtotal | |||
Total number of shares | 5,443,214,176.00 | 46,700,000.00 | - | - | - | 46,700,000.00 | 5,489,914,176.00 |
Item | Opening balance | Increase in the current period | Decrease in the current period | Closing balance |
Capital surplus (share premium) | 1,468,014,797.11 | 90,598,000.00 | 1,558,612,797.11 | |
Other capital reserve | 56,168,982.53 | 3,506,947.75 | 23,382,202.72 | 36,293,727.56 |
Total | 1,524,183,779.64 | 94,104,947.75 | 23,382,202.72 | 1,594,906,524.67 |
Item | Opening balance | Increase in the current period | Decrease in the current period | Closing balance |
Restricted stock incentive plan | 137,298,000.00 | 137,298,000.00 | ||
Total | 137,298,000.00 | 137,298,000.00 |
On December 11, 2020, the Group implemented a restricted stock incentive plan, granting47,920,000 restricted stocks to incentive objects. On December 29, 2020, the Group received RMB137,298,000.00 for the restricted stock subscription from the incentive objects. The number ofshares subscribed was 46,700,000, which has been verifiedby Ernst & Young Huaming CertifiedPublic Accountants (Special General Partnership) with a capital verification report ((2020) Y Z No.60709629_B01).
57. Other comprehensive income
√Applicable □Not applicable
Unit: RMB
Item | Opening amount Balance | Amount in the current period | Closing amount Balance | ||
Amount before tax incurred in the current period | Less: income taxes | Amount after tax attributable to parent company | |||
I. Other comprehensive income that cannot be reclassified into profit and loss | 66,421,903.33 | 20,068,374.01 | 5,017,093.5 | 15,051,280.51 | 81,473,183.84 |
Change in fair value of other equity instruments investment | 66,421,903.33 | 20,068,374.01 | 5,017,093.5 | 15,051,280.51 | 81,473,183.84 |
II. Other comprehensive income to be reclassified into profit and loss | -154,710.59 | -3,168,811.92 | -3,168,811.92 | -3,323,522.51 | |
Translation reserve | -154,710.59 | -3,168,811.92 | -3,168,811.92 | -3,323,522.51 | |
Total other comprehensive income | 66,267,192.74 | 16,899,562.09 | 5,017,093.5 | 11,882,468.59 | 78,149,661.33 |
Item | Opening balance | Increase in the current period | Decrease in the current period | Closing balance |
Statutory surplus reserve | 1,184,282,215.22 | 128,090,896.77 | - | 1,312,373,111.99 |
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 | 128,090,896.77 | 1,364,257,808.58 |
Notes on surplus reserves, including those on the changes in the current period and the reasonstherefor:
According to the “Company Law” and the Company’s articles of association, the company accrued astatutory surplus reserve in terms of 10% of its net profit. If the amount of statutory surplus reserveaccrued reaches more than 50% of the company's registered capital, the accrual may cease.The company can accruefree surplus reserve after accruing the statutory surplus reserve. With theapproval, the free surplus reserve can be used to make up for previous losses or to increase sharecapital.
60. Retained earnings
√Applicable □Not applicable
Unit: RMB
Item | Current period | Previous period |
Undistributed profits at the end of the previous reporting period before adjustment | 4,750,787,389.17 | 3,750,079,863.58 |
Adjustment of the total amount of opening retained earnings (+ for increase and - for decrease) | - | 207,890,050.96 |
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 | 926,626,706.42 | 1,255,276,023.70 |
Less: withdrawal of statutory surplus reserve | 128,090,896.77 | 135,865,698.51 |
Common share dividend payable | 381,024,992.32 | 326,592,850.56 |
Closing undistributed profits | 5,168,298,206.50 | 4,750,787,389.17 |
Item | Amount in the current period | Amount in the previous period | ||
Incomes | Costs | Incomes | Costs | |
Main business | 3,059,365,345.58 | 1,695,958,420.47 | 3,294,973,907.45 | 1,628,502,837.80 |
Other businesses | 666,320,754.81 | 115,178,023.52 | 747,793,613.73 | 68,451,291.70 |
Total | 3,725,686,100.39 | 1,811,136,443.99 | 4,042,767,521.18 | 1,696,954,129.50 |
Classified by type of contract | XXX-Segment | Total |
Types of goods | ||
Sales of goods | 467,868,477.86 | |
The use of commercial spaces in the | 2,512,590,861.43 |
Commodity City and its supporting services | ||
Hotel accommodation and catering services | 149,497,323.09 | |
Royalty income | 124,744,826.38 | |
Other services | 331,084,040.17 | |
Classified by business area | ||
Chinamainland | 3,585,785,528.93 | |
Sales of goods | 467,868,477.86 | |
Hotel catering services | 99,720,975.78 | |
Other services | 234,742,792.36 | |
Classified by contract period | ||
The use of commercial spaces in the Commodity City and its supporting services | 2,512,590,861.43 | |
Hotel accommodation service | 49,776,347.31 | |
Royalty income | 124,744,826.38 | |
Other services | 96,341,247.81 | |
Total | 3,585,785,528.93 |
Year 2020 | ||||
Sales of goods | 68,713,877.37 | |||
The use of commercial spaces in the Commodity City and its supporting services | 2,049,590,815.28 | |||
Hotel accommodation service | 4,571,618.80 | |||
Other services | 40,216,575.76 | |||
2,163,092,887.21 |
in advance before the use of commercial spaces in the Commodity Cityand thesupporting services for business are provided.
Hotel accommodation businessThe performance obligation is fulfilled when providing hotel accommodationservices. For the hotel accommodation business, the progress of contractualperformance is determined based on the number of days of stay. For hotelaccommodation services, a partial deposit iscollected from the customer first, andthe remaining contract price is usually collected upon the completion of the hotelaccommodation services.
Hotel catering businessThe performance obligation is fulfilled when the hotel catering services areprovided. The contract price for hotel catering services is usually charged when thehotel catering services are performed.
Fixed -time paid funding servicesThe performance obligation is fulfilled when the fixed-time paid funding service isprovided. For the fixed-time paid funding service, the progress of contractualperformance is determined based on the number of using days the fund. For thefixed-time paid funding service, the contract price is usually charged regularly asagreed in the contract.
(4).Amortization to remaining contract performance obligations
√Applicable □Not applicable
At the end of the reporting period, the amount of income corresponding to thesigned performance obligations that have not been performed or completed wasRMB 2,442,211,788.88, including:
RMB 2,442,211,788.88, that is expected to be recognized as income in 2025
Other notes:
None
62. Taxes and surcharges
√Applicable □Not applicable
Unit: RMB
Item | Amount in the current period | Amount in the previous period |
Business tax | 14,077,088.53 | 16,379,233.66 |
Land appreciation tax | 10,586,314.21 | 95,803,585.25 |
Urban maintenance and construction tax | 8,757,433.19 | 9,103,757.46 |
Education surcharge | 3,759,495.94 | 3,906,935.69 |
Property tax | 111,702,852.72 | 125,268,158.58 |
land holding tax | 9,601,436.31 | 12,692,931.55 |
Local education surcharge | 2,495,683.67 | 2,607,911.04 |
Cultural undertaking development fee | 116,214.00 | 1,052,183.47 |
Vehicle and vessel use tax | 32.90 | 26.64 |
Stamp duty | 4,789,431.36 | 3,603,764.16 |
Total | 165,885,982.83 | 270,418,487.50 |
Item | Amount in the current period | Amount in the previous period |
Advertising fees | 94,410,960.56 | 81,143,186.92 |
Marketing expenses | 104,738,904.24 | 37,498,514.04 |
Security and insurance expenses | 27,115,364.49 | 27,662,222.19 |
Depreciation and amortization | 1,345,275.41 | 597,232.05 |
Water, electricity and fuel expenses | 3,651,395.20 | 3,720,492.74 |
Employee expenses | 7,379.32 | 896,933.12 |
Others | 10,619,907.22 | 6,061,246.80 |
Total | 241,889,186.44 | 157,579,827.86 |
Item | Amount in the current period | Amount in the previous period |
Employee and uniform expenses | 245,021,737.66 | 213,716,941.74 |
Depreciation and amortization | 37,337,018.02 | 15,331,035.80 |
Intermediary expenses | 38,529,410.46 | 25,584,608.60 |
Travel expenses | 5,353,751.01 | 6,550,118.05 |
Office expenses | 14,680,708.68 | 11,050,072.13 |
Promotion and merchants introduction expenses | 937,941.53 | 490,039.39 |
Lease and property management expenses | 3,071,515.25 | 1,622,447.69 |
Others | 32,584,762.84 | 6,868,168.42 |
Total | 377,516,845.45 | 281,213,431.82 |
Item | Amount in the current period | Amount in the previous period |
Employee expenses | 6,293,791.55 | 14,362,675.64 |
Depreciation and amortization | 343,037.80 | 1,129,018.06 |
Technology development fee | 7,050,178.63 | 863,936.68 |
Others | 4,820,619.01 | 1,912,551.74 |
Total | 18,507,626.99 | 18,268,182.12 |
Item | Amount in the current | Amount in the previous |
period | period | |
Interest | 416,095,890.57 | 459,857,576.35 |
Amortization of commercial paper discount | 3,269,879.47 | 5,097,531.46 |
Amortization of discounted bonds payable | 2,060,361.37 | 2,541,047.54 |
Less: interest income | -230,212,773.93 | -221,495,467.21 |
Less:capitalized amount of interest | -29,273,761.94 | -27,860,611.88 |
Foreign exchange profit and loss | 13,574,395.11 | 3,988,114.57 |
Others | 6,575,708.68 | 5,430,915.92 |
Total | 182,089,699.33 | 227,559,106.75 |
Item | Amount in the current period | Amount in the previous period |
Interest subsidy for the international exhibition center construction fund | 1,154,807.04 | 1,162,336.58 |
Government subsidy for service industry cluster for 2011 | 266,666.64 | 266,666.64 |
Refund of social security contribution | 4,870,959.47 | |
Grant for the construction and operation of Yiwu credit data center | 3,000,000.00 | 1,000,000.00 |
R&D investment prize from Yiwu Science and Technology Bureau | 2,104,180.00 | |
Additional deduction of input tax | 1,376,744.49 | 1,589,393.47 |
Exhibition and conference subsidies | 1,309,000.00 | |
Employment stabilization subsidy | 1,091,612.71 | |
Others | 2,812,361.79 | 2,430,325.96 |
Subsidy for 2019 China Yiwu Import Commodities Fair | 1,487,200.00 | |
Fund of Yiwu E-commerce Credit Information System Construction Project | 1,090,909.09 | |
Total | 17,986,332.14 | 9,026,831.74 |
Item | Amount in the current period | Amount in the previous period |
Long-term equity investment income under the equity method | 34,968,640.68 | 52,930,591.12 |
Investment income from disposal of long-term equity investments | -30,134.35 | |
Investment income from held-for-trading financial assets during holding period | ||
Dividend income from other equity instruments investment during holding period | 10,034,187.04 | 6,271,366.90 |
Interest income from debt investment during holding period | 11,786,857.07 | |
Interest income from other debt investments during the holding period |
Investment income from disposal of held-for-trading financial assets | 377,061.15 | 315,943.29 |
Investment income from disposal of other equity instrument investments | ||
Investment income from disposal of debt investment | ||
Investment income fromdisposal of other debt investments | ||
Income acquired from other non-current financial assets during the holding period | 41,242,844.09 | 1,067,505.30 |
Gains from re -measurement of the remaining equity at fair value after the loss of control | 30,456,963.96 | 9,432,366.22 |
Investment income from disposal of subsidiaries and related claims | 394,658,616.42 | 99,133,233.54 |
Investment income from disposal of wealth management products | 688,953.43 | 34,522,867.19 |
Total | 524,214,123.84 | 203,643,739.21 |
Sources of income from changes in fair value | Amount in the current period | Amount in the previous period |
Held-for-trading financial assets | 1,706,102.10 | 2,974,965.78 |
Other non-current financial assets | -34,661,963.73 | 30,712,797.17 |
Total | -32,955,861.63 | 33,687,762.95 |
Item | Amount in the current period | Amount in the previous period |
Bad debt loss of accounts receivable | 23,224.87 | -2,621.57 |
Loss for bad debts of other receivables | 2,259,459.03 | 6,228,103.80 |
Total | 2,282,683.90 | 6,225,482.23 |
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 |
Item | Amount in the current period | Amount in the previous period |
Income from disposal of intangible assets | 6,819,021.38 | 140,269.17 |
Income from disposal of property, plant and equipment | 1,361,570.34 | - |
Total | 8,180,591.72 | 140,269.17 |
Item | Amount in the current period | Amount in the prior period | Amount recognized in profit and loss of nonrecurring items for the current period |
Government grants | 669,648.00 | 5,000.00 | 669,648.00 |
Incomes from liquidated damages | 1,402,173.09 | 1,876,042.63 | 1,402,173.09 |
Others | 2,353,251.88 | 3,406,964.93 | 2,353,251.88 |
Total | 4,425,072.97 | 5,288,007.56 | 4,425,072.97 |
Grant items | Amount in the current period | Previous amount | Asset-related or income-related |
Tourism development special award | 50,000.00 | Income-related | |
Relief fund for small and micro enterprises and individual business households in Shangcheng District | 10,000.00 | Income-related | |
Subsidy for booth fee of 2020 Shanghai Gifts Exhibition | 56,448.00 | Income-related | |
2019 overseas investment fund from Yiwu Municipal Bureau of Commerce | 550,000.00 | Income-related | |
Subsidy from Yiwu Market Development Committee | 3,200.00 | Income-related | |
Subsidy from “Employment Salon” activity from Employment Administration | 5,000.00 | Income-related | |
Total | 669,648.00 | 5,000.00 |
□Applicable √Not applicable
75. Operating expenses
√Applicable □Not applicable
Unit: RMB
Item | Amount in the current period | Amount in the previous period | Amount recognized in profit and loss of nonrecurring items for the current period |
Total loss for disposal of non-current assets | 19,632,275.93 | 423,539.32 | 19,632,275.93 |
Including: loss for disposal of property, plant and equipment | 19,632,275.93 | 423,539.32 | 19,632,275.93 |
External donation | 6,540,313.91 | 1,700,000.00 | 6,540,313.91 |
Water conservancy construction fund | 249,883.92 | 385,414.98 | 249,883.92 |
Others | 214,342.31 | 1,724,640.22 | 214,342.31 |
Total | 26,636,816.07 | 4,233,594.52 | 26,636,816.07 |
Item | Amount in the current period | Amount in the previous period |
Current income taxes | 510,006,312.87 | 416,011,315.18 |
Deferred income tax expenses | -10,251,293.65 | -32,096,093.21 |
Total | 499,755,019.22 | 383,915,221.97 |
Item | Amount in the current period |
Profits before tax | 1,421,591,074.43 |
Income tax expenses calculated at the statutory/applicable tax rate | 355,397,768.61 |
Impact of different tax rates applied by subsidiaries | -796,675.22 |
Effect of adjusting income tax of previous period | 22,988,360.92 |
Effect of non-taxable income | -5,852,491.11 |
Effect of non-deductible costs, expenses and losses | 4,512,924.49 |
Effect of using deductible losses of unrecognized deferred income tax assets in previous period | 140,442,040.95 |
Effect of deductible temporary differences or deductible losses of unrecognized deferred income tax assets in the current period | -2,974,306.87 |
Profit and loss attributable to joint ventures and associates | -13,962,602.55 |
Income taxes | 499,755,019.22 |
Item | Amount in the current period | Amount in the previous period |
Deposit and margin received | 164,887,997.67 | 112,459,798.73 |
Government grants received | 3,573,983.14 | 6,506,919.43 |
Bank deposit interest income received | 230,212,493.06 | 221,320,446.07 |
Liquidated damages received from market merchants | 1,402,173.09 | 1,876,042.63 |
Yiwugo’s Bank Reserve Fund received | 1,842,251.21 | 5,913,807.91 |
Others | 6,870,248.13 | 3,411,964.94 |
Total | 408,789,146.30 | 351,488,979.71 |
Item | Amount in the current period | Amount in the previous period |
Major expenses paid | 365,010,313.02 | 221,395,376.76 |
Repair costs and expenses paid | 132,298,446.26 | 134,845,105.22 |
Deposit and security paid | 95,090,779.43 | 88,613,132.66 |
Others | 1,689,857.57 | 6,312,391.07 |
Total | 594,089,396.28 | 451,166,005.71 |
Item | Amount in the current period | Amount in the previous period |
Recoveredpending investment refunds | 43,027,285.60 | 61,690,788.77 |
Advance subsidy for joint venture’s subsidiaries that was recovered from the joint venture party | 1,608,852,069.00 | 404,187,500.00 |
Subsidy for joint venture’s | 2,775,280,817.96 | 4,717,358,398.04 |
subsidiaries | ||
Receipt of redeemed financing products | 6,000,000.00 | |
Cash balance on acquisition date of subsidiary | 17,326,086.71 | |
Total | 4,450,486,259.27 | 5,183,236,686.81 |
Item | Amount in the current period | Amount in the previous period |
Advance for land for proposed joint venture | 281,839,499.86 | 1,442,960,000.00 |
Financial subsidy paid to Tonghui Shangbo | 1,486,368,548.00 | |
Financial subsidy paid to Handing Shangbo | 472,144,400.00 | |
Financial subsidy paid tothe joint venture in Dubai | 63,465,484.42 | |
Financial subsidy paid to Gongchen Shangbo | 49,000,000.00 | |
Financial subsidy paid to Huangyuan Shangbo | 157,575,000.00 | |
Total | 2,352,817,932.28 | 1,600,535,000.00 |
Item | Amount in the current period | Amount in the previous period |
Acquisition of minority shareholders' equity in subsidiaries | 64,460,000.00 | |
Total | 64,460,000.00 |
Supplementary information | Amount in the current period | Amount in the previous period |
1.Adjust net profits to cash flow from operating activities: | ||
Net profit | 921,836,055.21 | 1,248,826,326.96 |
Add: Provision for asset impairment | 2,282,683.90 | 5,585,822.81 |
Loss of impairment of credit | ||
Depreciation of property, plant and equipment, depletion of oil and gas assets, and depreciation of productive biological assets | 391,308,329.57 | 381,208,844.34 |
Amortization of right-of-use assets | ||
Amortization of intangible assets | 129,979,055.25 | 121,670,213.82 |
Depreciation and amortization of investment real estate | 91,509,152.33 | 84,154,546.46 |
Amortization of long-term deferred expenses | 64,667,911.54 | 76,452,536.09 |
Loss on disposal of property, plant and equipment, intangible assets and other long-term assets (gain presented with "-") | 11,451,684.21 | -140,269.17 |
Loss from scrapping of property, plant and equipment (gain presented with "-") | ||
Loss from changes in fair value (gain presented with "-") | 32,955,861.63 | -33,687,762.95 |
Financial expense (gain presented with "-") | 392,152,088.59 | 439,640,799.51 |
Investment loss (gain presented with "-") | -648,958,950.22 | -444,794,565.39 |
Decrease in deferred income tax assets (increase presented with "-") | -7,112,433.29 | -43,200,735.59 |
Increase in deferred income tax liabilities (decrease presented with "-") | -3,988,508.40 | 11,104,642.41 |
Decrease in inventory (increase presented with "-") | -1,156,397,502.91 | -734,413,178.09 |
Decrease in operating receivables (increase presented with "-") | -538,592,969.66 | -2,769,921,310.46 |
Increase in operating payables (decrease presented with "-") | 1,145,695,804.20 | 118,606,831.70 |
Others | ||
Net cash flow from operating activities | 828,788,261.95 | -1,538,907,257.55 |
2.Significant investing and financing activities not involving cash receipt and payment: | ||
When the joint venture company was established based on the equity of the subsidiary, the original financial subsidy for subsidiary’s prepayment for land was converted to other receivables from the subsidiary of the joint venture | 1,545,759,831.00 | |
3.Net changes in cash and cash equivalents: | ||
Closing balance of cash | 2,032,642,871.63 | 3,426,712,549.26 |
Less: opening balance of cash | 3,426,712,549.26 | 2,632,160,386.99 |
Add: closing balance of cash equivalents | ||
Less: opening balance of cash equivalents | ||
Net increase in cash and cash equivalents | -1,394,069,677.63 | 794,552,162.27 |
Amount | |
Cash or cash equivalents received for disposal of subsidiaries in the current period | 2,232,000,000.00 |
Less: Cash and cash equivalents held by the company on the date of loss of control | 2,039,533,581.35 |
Add: Cash or cash equivalents received in the current period from the disposal of the subsidiary in the previous period |
Net cash received from disposal of subsidiaries | 192,466,418.65 |
Item | Closing balance | Opening balance |
I. Cash | 2,032,642,871.63 | 3,426,712,549.26 |
Including: cash on hand | 292,999.29 | 523,925.97 |
Bank deposit that can be used for payment at any time | 2,032,189,759.31 | 3,425,411,273.52 |
Other monetary capital that can be used for payment at any time | 160,113.03 | 777,349.77 |
II. Cash equivalents | ||
Including: bond investments due within three months | ||
III. Closing balance of cash and cash equivalents | 2,032,642,871.63 | 3,426,712,549.26 |
Including:cash and cash equivalents with restricted use by the parent company or its subsidiaries | 60.58 | 56,196,102.62 |
Year 2020 | Year 2019 | |||||
Negotiated deposits | 3,580,000,000.00 | 3,003,500,000.00 |
Item | Closing book value | Reason for restriction |
Monetary capital | 60.58 | |
Long-term equity investment | 102,918,559.00 | |
Other non-current financial assets | 617,511,352.00 | |
Total | 720,429,971.58 | / |
with book value of RMB 617,511,352.00 (December 31, 2019: RMB 617,511,352.00) had beenfrozen by Shanghai Public Security Bureau. See Note XIV.1 for details.
82. Foreign currency monetary items
(1).Foreign currency monetary items
√Applicable □Not applicable
Unit: RMB Yuan
Item | Closing balance in foreign currency | Exchange rate | Closing amount after conversation: RMB Balance |
Monetary capital | - | - | |
In which: USD | 2,793,102.25 | 6.5249 | 18,224,712.87 |
EURO | 810,087.78 | 8.0250 | 6,500,954.43 |
Rwandan Franc | 6,995,780.00 | 0.0066 | 46,172.15 |
Dirham | 349,462.68 | 1.7761 | 620,680.67 |
Koruna | 1,333,480.79 | 0.3055 | 407,373.38 |
Accounts Receivable | - | - | |
In which: USD | 15,996,491.14 | 6.5249 | 104,375,505.04 |
EURO | 140,792.44 | 8.0250 | 1,129,859.33 |
Koruna | 25,340.99 | 0.3055 | 7,741.67 |
Including: EURO | 1,209,676.00 | 8.0250 | 9,707,649.90 |
Koruna | 309,530.00 | 0.3055 | 94,561.42 |
Accounts payable | |||
Including: EURO | 152,738.85 | 6.5249 | 996,605.72 |
Koruna | 311,029.37 | 0.3055 | 95,019.47 |
Other payables | |||
In which: USD | 1,799,920.00 | 6.5249 | 11,744,298.01 |
EURO | 1,233,855.98 | 8.0250 | 9,901,694.24 |
Category | Amount | Presentation | Amount recognized in profit and loss for the current period |
Tourism development special award | 50,000.00 | Non-operating income | 50,000.00 |
Relief fund for small and micro enterprises and individual business | 10,000.00 | Non-operating income | 10,000.00 |
households in Shangcheng District | |||
Subsidy for booth fee of 2020 Shanghai Gifts Exhibition | 56,448.00 | Non-operating income | 56,448.00 |
2019 overseas investment fund from Yiwu Municipal Bureau of Commerce | 550,000.00 | Non-operating income | 550,000.00 |
Subsidy from Yiwu Market Development Committee | 3,200.00 | Non-operating income | 3,200.00 |
Interest subsidy for the international exhibition center construction fund | 1,154,807.04 | Other incomes | 1,154,807.04 |
Government subsidy for service industry cluster for 2011 | 266,666.64 | Other incomes | 266,666.64 |
Refund of social security contribution | 4,870,959.47 | Other incomes | 4,870,959.47 |
Grant for the construction and operation of Yiwu credit data center | 3,000,000.00 | Other incomes | 3,000,000.00 |
R&D investment prize from Yiwu Science and Technology Bureau | 2,104,180.00 | Other incomes | 2,104,180.00 |
Additional deduction of input tax | 1,376,744.49 | Other incomes | 1,376,744.49 |
Exhibition and conference subsidies | 1,309,000.00 | Other incomes | 1,309,000.00 |
Employment stabilization subsidy | 1,091,612.71 | Other incomes | 1,091,612.71 |
Others | 2,812,361.79 | Other incomes | 2,812,361.79 |
Total | 18,655,980.14 | 18,655,980.14 |
Acquiree | Time point of equity acquisition | Cost of equity acquisition | Percentage of equity acquired (%) | Method of equity acquisition | Acquisition date | Date for determining acquisition date | Income of acquiree from acquisition date as of the end of the period | Net profit of acquiree from acquisition date as of the end of the period |
Zhejiang Huajie Investme | April 10, 2020 | 56.40 | Acquisition | April 10, 2020 | The earliest date | 12,896,707.15 | -25,539,778.66 |
nt and Development Co., Ltd. | when the transfer of control is effectuated |
Merger cost | Zhejiang Huajie |
--Cash | |
--Fair value of the equity that had been held before the acquisition date on the acquisition date | 603,609.81 |
--Others | |
Total merger costs | 603,609.81 |
Less: The share in the fair value of identifiable net assets acquired | 1,454,699.65 |
The difference between the goodwill/consolidation cost and the share in the fair valueof identifiable net assets acquired | -851,089.84 |
Zhejiang Huajie | ||
Fair value on acquisition date | Book value acquisition date | |
Assets: | 36,287,989.93 | 36,287,989.93 |
Current assets | 18,884,042.30 | 18,884,042.30 |
Non-current assets | 17,403,947.63 | 17,403,947.63 |
Liabilities: | 34,778,965.40 | 34,778,965.40 |
Loans | ||
Payables | 34,778,965.40 | 34,778,965.40 |
Net assets | 1,509,024.53 | 1,509,024.53 |
Less: Minority shareholders' equity | 54,324.88 | 54,324.88 |
Net assets acquired | 1,454,699.65 | 1,454,699.65 |
4. Disposal of subsidiaries
Has the Group lost control upon a single disposal of investment in a subsidiary?
√Applicable □Not applicable
Unit: RMB
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 | 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 | Profit and loss from the remaining shareholding re-calculated by fair value |
CCCP | 1,790,000,000.00 | 51 | July 15, 2020 | The earliest date when the transfer of control is effectuated | 243,462,577.08 | 49 | 1,485,888,896.53 | 1,493,547,709.92 | 7,658,813.39 | |
Pujiang Lvgu | 442,000,000.00 | 51 | July 15, 2020 | The earliest date when the transfer of control is effectuated | 76,819,479.09 | 49 | 350,859,716.17 | 373,657,866.74 | 22,798,150.57 | |
Gongchen Shangbo | 100 | February 28, 2020 | The earliest date when the transfer of control is effectuated | 74,376,560.25 |
Other notes:
√Applicable □Not applicable
Note 1: On July 12, 2020, the YIWU CCC and CCCH signed an equity transfer agreement. The YIWU CCC transferred 51% of the equity of each of Yiwu ChinaCommodities City Property Development Co., Ltd. (hereinafter referred to as “CCCP”) and Pujiang Green Valley Real Estate Co., Ltd. (Hereinafter referred toas “Pujiang Green Valley”) to CCCH. Through negotiation between both parties, based on the evaluation value, the transfer consideration was RMB 2.232billion. According to the revised articles of association of the company, the board of directors occupied by the Group and the proportion of votes held in theshareholders’ meeting can realize the power to participate in the decision-making of the financial and operating policies of the CCCP and Pujiang Green Valleyby taking part in the resolution process of the shareholders’ meeting and the board of directors, but the proportion of the votes held cannot control, or jointlycontrolwith other parties, the making of such policies.Afterthe disposal, the company's shareholding ratio in the CCP and Pujiang Green Valley declined from 100% to 49%, and the articles of association of thecompany and the registration with the administration for industry and commercehave been completed. The disposal date is July 15, 2020. Therefore, startingfrom July 15, 2020, the Group no longer incorporated the CCCP and Pujiang Green Valley into the scope of consolidation.
Note 2: The Group’s subsidiary, CCCP and Shenzhen Guoshen Real Estate Development Co., Ltd. signed a cooperative developmentagreement on February 25, 2020 to jointly incorporate a joint venture, Yiwu Guoshen Shangbo Real Estate Co., Ltd. (hereinafter referred to as“Guoshen Shangbo”) for co-development of the project of the plot for station construction.Shangcheng Real Estate acquired 49% of the equity of Guoshen Shangbo withits100% equity of Yiwu Gongchen Shangbo Real Estate Co.,Ltd. (hereinafter referred to as “Gongchen Shangbo”) as a capital contribution of RMB 20,000,000.00, and completed the changes in theregistration with the administration for industry and commerce, and the company appointed directors on February 28, 2020. The disposal dateis February 28, 2020. Therefore, as of February 28, 2020, the Group no longer included Gongchen Shangbo into the scope of consolidation.Did the Group dispose of subsidiaries through multiple transactions and lose control in the current period?
□Applicable√Not applicable
Package deal
□Applicable √Not applicable
Non-package deal
□Applicable √Not applicable
5. Changes in consolidation scope for other reasons
Changes in the consolidation scope for other reasons (e.g. new establishment of subsidiaries, liquidation of subsidiaries, etc.) and the related information:
√Applicable □Not applicable
In the current period, the company set its subsidiaries including Yiwu China Commodity City Big Data Co., Ltd., Yiwu Comprehensive Free Trade ZoneOperation Management Co., Ltd. and Yiwu China Commodity City Research Institute Co., Ltd.; acquired Zhejiang Huajie Investment Development Co., Ltd.and its subsidiary Europe Huajie Development Co., Ltd. in a business merger not under common control; the company's subsidiary Yiwu China CommodityCity Logistics Warehousing Co., Ltd. set a subsidiary Yiwu Global Yida Logistics Co., Ltd. in current period.
6. Others
□Applicable √Not applicable
IX. Equity in Other Entity
1. Equity in subsidiaries
(1).Composition of the enterprise group
√Applicable □Not applicable
Subsidiary Name | Principal business place | Registering place | Nature of business | Shareholding ratio (%) | Acquisition Method | |
Direct | Indirect | |||||
Yiwu Shanglv Investment Development Co., Ltd. | Yiwu, Zhejiang | Yiwu, Zhejiang | Real estate | 49.00 | Establishment | |
Hunan Shang Yun Zhonghe Scientific Research and Trade Co., Ltd. | Changsha, Hunan | Changsha, Hunan | Retail | 35.00 | Establishment | |
Jiangsu Jin’an Hefeng Network Technology Co., Ltd. | Nanjing, Jiangsu | Nanjing, Jiangsu | Retail | 40.00 | Establishment | |
Henan Yiwugou Technology Development Co., Ltd. | Puyang, Henan | Puyang, Henan | Retail | 40.00 | Establishment | |
Yiwu Huishang Zijing Capital Management Co., Ltd. | Yiwu, Zhejiang | Yiwu, Zhejiang | Service | 20.00 | Establishment | |
Yiwu China Commodities City Creative Design and Development Services Co., Ltd. | Yiwu, Zhejiang | Yiwu, Zhejiang | Lease and business service | 49.00 | Establishment | |
Yiwu Rongshang Property Co., Ltd. | Yiwu, Zhejiang | Yiwu, Zhejiang | Real estate | 49.00 | Establishment | |
Zhejiang Commodities City China Olympic Sports Industry Co., Ltd. | Yiwu, Zhejiang | Yiwu, Zhejiang | Culture, sports and entertainment | 45.00 | Establishment | |
Yiwu Chuangcheng Property Co., Ltd. | Yiwu, Zhejiang | Yiwu, Zhejiang | Real estate | 24.00 | Establishment | |
Yiwu Digital Port Technology Co., Ltd. | Yiwu, Zhejiang | Yiwu, Zhejiang | Wholesale | 51.00 | Establishment | |
Yiwu Guoshen Shangbo Property Co., Ltd. | Yiwu, Zhejiang | Yiwu, Zhejiang | Real estate | 49.00 | Establishment | |
Yiwu Huishang Micro-finance Co., Ltd. | Yiwu, Zhejiang | Yiwu, Zhejiang | Service | 23.00 | Establishment | |
Hangzhou Binjiang Shangbo Property Development Co., Ltd. | Hangzhou, Zhejiang | Hangzhou, Zhejiang | Real estate | 49.00 | Establishment | |
Yiwu Meipinshu Supply Chain Management Co., Ltd. | Yiwu, Zhejiang | Yiwu, Zhejiang | Service | 20.57 | Establishment | |
Yiwu Huishang Zijing Equity Investment Co., Ltd. | Yiwu, Zhejiang | Yiwu, Zhejiang | Commercial services | 10.42 | Establishment | |
Zhejiang Zhiku Co., Ltd. | Hangzhou, Zhejiang | Hangzhou, Zhejiang | Service | 45.00 | Establishment | |
Zhejiang Chouzhou Financial Lease Co., Ltd. | Yiwu, Zhejiang | Yiwu, Zhejiang | Service | 26.00 | Establishment | |
Yiwu Huishang Zijing Phase II Investment Partnership (Limited Liability Partnership) (Note 1) | Yiwu, Zhejiang | Yiwu, Zhejiang | Lease and business service | 9.43 | Establishment | |
Yiwu China Commodities City Investment Management Co., Ltd. | Yiwu, Zhejiang | Yiwu, Zhejiang | Lease and business service | 49.00 | Establishment | |
Yiwu China Commodities City Fuxing Investment Center (limited partnership) | Yiwu, Zhejiang | Yiwu, Zhejiang | Lease and business service | 49.90 | Establishment |
Zhejiang Yemai Data Technology Co., Ltd. | Hangzhou, Zhejiang | Hangzhou, Zhejiang | Scientific research and technical service | 40.00 | Establishment | |
Zhejiang YXE Supply Chain Management Co., Ltd. | Yiwu, Zhejiang | Yiwu, Zhejiang | Service | 25.00 | Establishment | |
Yiwu Hongyi Equity Investment Fund Partnership | Yiwu, Zhejiang | Yiwu, Zhejiang | Service | 49.98 | Establishment | |
Hangzhou MicroAnts Co., Ltd. | Hangzhou, Zhejiang | Hangzhou, Zhejiang | Service | 49.04 | Establishment | |
Pujiang Lvgu Property Co., Ltd. | Pujiang, Zhejiang | Pujiang, Zhejiang | Real estate | 49.00 | Establishment | |
Yiwu China Commodities City Property Development Co., Ltd. | Yiwu, Zhejiang | Yiwu, Zhejiang | Real estate | 49.00 | Establishment | |
JEBEL ALI FREE ZONE TRADER MARKET DEVELOPMENT AND OPERATION FZCO (Note 2) | Dubai, UAE | Dubai, UAE | Lease and business service | - | 30.00 | Establishment |
Subsidiary | Shareholding ratio of minority shareholders . | Profit and loss 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 Company | 49.00% | 3,277,435.48 | 41,586,075.54 | |
Haicheng Company | 5.00% | -6,669,684.24 | -35,686,244.88 |
(3).Major financial information of important non-wholly-owned subsidiaries
√Applicable □Not applicable
Unit: RMB
Subsidiary | Closing balance | |||||
Current assets | Non-current assets | Total assets | Current liabilities | Non-current liabilities | Total Liabilities | |
Yiwugou Company | 101,316,274.63 | 10,359,392.32 | 111,675,666.95 | 26,806,125.02 | 26,806,125.02 | |
Haicheng Company | 1,245,105,579.07 | 1,058,046,983.05 | 2,303,152,562.12 | 3,016,831,194.87 | 2,555.83 | 3,016,833,750.70 |
Payment Network Company |
Subsidiary | Amount in the current period | Amount in the previous period | ||||||
Operating income | Net profit | Total comprehensive income | Cash flow from operating activities | Operating income | Net profit | Total comprehensive income | Cash flow from operating activities | |
Yiwugou Company | 46,205,789.69 | 6,688,643.84 | 6,688,643.84 | 62,982,206.67 | 48,045,841.64 | 3,820,211.52 | 3,820,211.52 | -37,782,895.89 |
Haicheng Company | 5,466,263.3 | -133,393,684.88 | -133,393,684.88 | -54,602,532.25 | 2,004,886.95 | -145,287,795.79 | -145,287,795.79 | -130,773,836.26 |
Payment Network Company | 1,256,700.78 | -155,976.91 | -155,976.91 | -4,035,116.93 |
3. Equity in joint ventures or associates
□Applicable □Not applicable
(1).Important joint ventures or associates
√Applicable □Not applicable
Unit: RMB
Name of joint venture or associate | Principal business place | Registering place | Nature of business | Shareholding ratio (%) | Accounting treatment method of investment in the joint venture or associate | |
Direct | Indirect | |||||
Joint venture | ||||||
Yiwu Shanglv Investment Development Co., Ltd. | Yiwu, Zhejiang | Yiwu, Zhejiang | Real estate | 49.00 | Equity method | |
Hunan Shang Yun Zhonghe Scientific Research and Trade Co., Ltd. | Changsha, Hunan | Changsha, Hunan | Retail | 35.00 | Equity method | |
Jiangsu Jin’an Hefeng Network Technology Co., Ltd. | Nanjing, Jiangsu | Nanjing, Jiangsu | Retail | 40.00 | Equity method | |
Henan Yiwugou Technology Development Co., Ltd. | Puyang, Henan | Puyang, Henan | Retail | 40.00 | Equity method | |
Yiwu Huishang Zijing Capital Management Co., Ltd. | Yiwu, Zhejiang | Yiwu, Zhejiang | Service | 20.00 | Equity method | |
Yiwu China Commodities City Creative Design and Development Services Co., Ltd. | Yiwu, Zhejiang | Yiwu, Zhejiang | Lease and business service | 49.00 | Equity method | |
Yiwu Rongshang Property Co., Ltd. | Yiwu, Zhejiang | Yiwu, Zhejiang | Real estate | 49.00 | Equity method | |
Zhejiang Commodities City China Olympic Sports Industry Co., Ltd. | Yiwu, Zhejiang | Yiwu, Zhejiang | Culture, sports and entertainment | 45.00 | Equity method | |
Yiwu Chuangcheng Property Co., Ltd. | Yiwu, Zhejiang | Yiwu, Zhejiang | Real estate | 24.00 | Equity method | |
Yiwu Digital Port Technology Co., Ltd. | Yiwu, Zhejiang | Yiwu, Zhejiang | Wholesale | 51.00 | Equity method | |
Yiwu Guoshen Shangbo Property Co., Ltd. | Yiwu, Zhejiang | Yiwu, Zhejiang | Real estate | 49.00 | Equity method | |
Associate | ||||||
Yiwu Huishang Micro-finance Co., Ltd. | Yiwu, Zhejiang | Yiwu, Zhejiang | Service | 23.00 | Equity method | |
Hangzhou Binjiang Shangbo Property Development Co., Ltd. | Hangzhou, Zhejiang | Hangzhou, Zhejiang | Real estate | 49.00 | Equity method | |
Yiwu Meipinshu Supply Chain Management Co., Ltd. | Yiwu, Zhejiang | Yiwu, Zhejiang | Service | 20.57 | Equity method | |
Yiwu Huishang Zijing Equity Investment Co., Ltd. | Yiwu, Zhejiang | Yiwu, Zhejiang | Commercial services | 10.42 | Equity method | |
Zhejiang Zhiku Co., Ltd. | Hangzhou, Zhejiang | Hangzhou, Zhejiang | Service | 45.00 | Equity method | |
Zhejiang Chouzhou Financial Lease Co., Ltd. | Yiwu, Zhejiang | Yiwu, Zhejiang | Service | 45.00 | Equity method | |
Yiwu Huishang Zijing Phase II Investment Partnership (Limited Liability Partnership) (Note 1) | 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 | 49.00 | Equity method | |
Yiwu China Commodities City Fuxing | Yiwu, | Yiwu, | Lease and | 49.00 | Equity method |
Investment Center (limited partnership) | Zhejiang | Zhejiang | business service | |||
Zhejiang Yemai Data Technology Co., Ltd. | Hangzhou, Zhejiang | Hangzhou, Zhejiang | Scientific research and technical service | 40.00 | Equity method | |
Zhejiang YXE Supply Chain Management Co., Ltd. | Yiwu, Zhejiang | Yiwu, Zhejiang | Service | 25.00 | Equity method | |
Yiwu Hongyi Equity Investment Fund Partnership | Yiwu, Zhejiang | Yiwu, Zhejiang | Service | 49.98 | Equity method | |
Hangzhou MicroAnts Co., Ltd. | Hangzhou, Zhejiang | Hangzhou, Zhejiang | Service | 49.04 | Equity method | |
Pujiang Lvgu Property Co., Ltd. | Hangzhou, Zhejiang | Hangzhou, Zhejiang | Real estate | 49.00 | Equity method | |
Yiwu China Commodities City Property Development Co., Ltd. | Hangzhou, Zhejiang | Hangzhou, Zhejiang | Real estate | 49.00 | Equity method | |
JEBEL ALI FREE ZONE TRADER MARKET DEVELOPMENT AND OPERATION FZCO (Note 2) | Dubai, UAE | Dubai, UAE | Lease and business service | 30.00 | Equity method |
Closing balance/amount in the current period | Opening balance/amount in the previous period | |
Yiwu Shanglv | Yiwu Shanglv |
Current assets | 187,602,175.56 | 206,568,731.62 |
In which: cash and cash equivalents | 24,893,904.53 | 11,332,301.02 |
Non-current assets | 1,369,948,370.68 | 1,679,507,095.46 |
Total assets | 1,557,550,546.24 | 1,886,075,827.08 |
Current liabilities | 420,643,904.92 | 663,841,939.73 |
Non-current liabilities | 356,957,211.08 | 477,412,606.21 |
Total Liabilities | 777,601,116.00 | 1,141,254,545.94 |
Shareholders’ equity attributable to parent company | 779,949,430.24 | 744,821,281.14 |
Share of net assets calculated based shareholding ratio | 382,175,220.82 | 364,962,427.76 |
Adjustments | -16,344,463.91 | -16,822,720.70 |
--Goodwill | ||
--unrealized profits of internal transactions | -16,344,463.91 | -16,822,720.70 |
--Others | ||
Book value of equity investment in joint ventures | 365,830,756.91 | 348,139,707.06 |
Operating income | 209,478,335.98 | 204,689,977.41 |
Financial expenses | 25,646,329.54 | 28,735,644.73 |
Net profit | 35,139,746.38 | 11,347,037.00 |
Total comprehensive income | 35,139,746.38 | 11,347,037.00 |
Dividends received from joint ventures this year |
Chouzhou Financial Lease | Closing balance/amount in the current period | Opening balance/amount in the previous period | ||||||
Binjiang Shangbo | Chouzhou Financial Lease | Hongyi Fund | CCCP | Pujiang Lvgu | Binjiang Shangbo | Chouzhou Financial Lease | Hongyi Fund | |
Current assets | 449,245,302.87 | 729,334,144.06 | 187,130,287.14 | 7,550,699,967.90 | 1,698,615,236.39 | 550,436,271.65 | 570,925,159.80 | 465,583,259.40 |
Non-current assets | 1,049,938.63 | 23,528,567,351.36 | 1,194,476,521.00 | 402,934,926.18 | 13,005,941.32 | 1,469,646.15 | 8,564,000,577.98 | 715,918,730.13 |
Total assets | 450,295,241.50 | 24,257,901,495.42 | 1,381,606,808.14 | 7,953,634,894.08 | 1,711,621,177.71 | 551,905,917.80 | 9,134,925,737.78 | 1,181,501,989.53 |
Current liabilities | 127,876,218.58 | 9,453,119,751.14 | 1,403,096.04 | 4,672,430,334.07 | 881,609,580.53 | 266,275,422.72 | 6,875,287,112.49 | 160,734.38 |
Non-current liabilities | 1,244,031,946.25 | 209,025,799.71 | 74,413,699.44 | 984,205,719.99 | ||||
Total Liabilities | 127,876,218.58 | 10,697,151,697.39 | 1,403,096.04 | 4,881,456,133.79 | 956,023,279.97 | 266,275,422.72 | 7,859,492,832.48 | 160,734.38 |
Shareholders’ equity attributable to parent company | 322,419,022.92 | 1,431,799,050.32 | 1,380,203,712.10 | 3,072,178,760.29 | 755,597,897.74 | 285,630,495.08 | 1,275,432,905.30 | 1,181,341,255.15 |
Share of net assets calculated based shareholding ratio | 157,985,321.23 | 372,267,753.09 | 689,756,805.12 | 1,505,367,592.54 | 370,242,969.89 | 139,958,942.59 | 331,612,555.38 | 590,434,359.32 |
Adjustments | -3,833,053.81 | -947,091.07 | - | -33,794,638.63 | 9,429,496.76 | -2,830,554.84 | -947,091.07 | -58,917.06 |
--unrealized profits of internal transactions | -3,833,053.81 | -947,091.07 | - | -33,794,638.63 | 9,429,496.76 | -2,830,554.84 | -947,091.07 | -58,917.06 |
Book value of equity investment in joint ventures | 154,152,267.42 | 371,320,662.02 | 689,756,805.12 | 1,471,572,953.91 | 379,642,466.65 | 137,128,387.75 | 330,665,464.31 | 590,375,442.26 |
Operating income | 97,702,754.69 | 451,218,203.15 | 9,448,329.63 | 191,339,108.98 | 197,049,762.36 | 377,690,315.90 | 325,849,792.42 | |
Net profit | 34,639,674.53 | 156,366,145.02 | 18,722,456.95 | -18,536,559.79 | 35,614,089.83 | 122,584,327.71 | 133,430,276.76 | -19,258,744.85 |
Total comprehensive income | 34,639,674.53 | 156,366,145.02 | 18,722,456.95 | -18,536,559.79 | 35,614,089.83 | 122,584,327.71 | 133,430,276.76 | -19,258,744.85 |
None
(4).Summary financial information of unimportant joint ventures and associates
√Applicable □Not applicable
Unit: RMB
Closing balance/amount in the current period | Opening balance/amount in the previous period | |
Joint ventures: | ||
Total book value of investments | 49,048,582.56 | 68,584,729.53 |
Total amounts of the following items calculated based on shareholding ratio | ||
--Net profits | -27,738,134.86 | -30,197,372.68 |
Associates: | ||
Total book value of investments | 351,543,008.12 | 213,223,986.88 |
Total amounts of the following items calculated based on shareholding ratio | ||
--Net profits | -6,084,558.45 | 14,103,997.65 |
The book values of financial instruments on the balance sheet date are as follows:
Year 2020
Financial assets
Financialliabilities
Other financial liabilities | |||||
Short-term loans | 1,257,179,389.40 | ||||
Accounts payable | 636,463,802.23 | ||||
Other payables | 1,646,345,561.62 | ||||
Non-current liabilities due within one year | 1,315,026,574.43 | ||||
Other current liabilities | 3,008,141,460.22 | ||||
Long- term loans | 282,000,000.00 | ||||
Bonds payable | 3,552,161,709.68 | ||||
11,697,318,497.58 |
Measured at fair value and whose changes are included in other comprehensive income | |||||||||
Financial assets that are measured at fair value and whose changes are included in the current profit and loss | Measured at amortized cost | Total | |||||||
Requirements in the standard | Designated | ||||||||
Monetary capital | - | 5,612,642,932.21 | - | 5,612,642,932.21 | |||||
Held-for-trading financial assets | 51,712,734.31 | - | - | 51,712,734.31 | |||||
Accounts Receivable | - | 153,573,476.86 | - | 153,573,476.86 | |||||
Other receivables | - | 2,708,478,136.25 | - | 2,708,478,136.25 | |||||
Other current assets | - | 3,279,187.50 | - | 3,279,187.50 | |||||
Long-term receivables | - | 126,756,573.81 | - | 126,756,573.81 | |||||
Other equity instruments investment | - | - | 662,256,342.79 | 662,256,342.79 | |||||
Other non-current financial assets | 1,523,925,249.81 | - | - | 1,523,925,249.81 | |||||
1,575,637,984.12 | 8,604,730,306.63 | 662,256,342.79 | 10,842,624,633.54 |
Measured at fair value and whose changes are included in other comprehensive income | |||||||||
Financial assets that are measured at fair value and whose changes are included in the current profit and loss | Measured at amortized cost | Total | |||||||
Requirements in the standard | Designated | ||||||||
Financialliabilities
Other financial liabilities | |||||
Short-term loans | 4,178,903,704.82 | ||||
Accounts payable | 525,241,493.48 | ||||
Other payables | 909,483,132.47 | ||||
Non-current liabilities due within one year | 270,332,413.94 | ||||
Other current liabilities | 2,011,484,113.28 | ||||
Long- term loans | 530,694,313.98 | ||||
Bonds payable | 4,564,291,387.81 | ||||
12,990,430,579.78 |
Monetary capital | - | 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 | |||||
Other receivables | - | 1,397,228,398.98 | - | 1,397,228,398.98 | |||||
Other current assets | - | 38,049,341.81 | - | 38,049,341.81 | |||||
Long-term receivables | - | 61,250,000.00 | - | 61,250,000.00 | |||||
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 | |||||
1,557,527,142.94 | 7,998,967,470.72 | 642,187,968.78 | 10,198,682,582.44 |
counterparties, 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.
For quantitative data on the credit risk exposure of the Group due to accountsreceivable and other receivables, see Note V.3 and 5 for details.
Criteria for significant increase in credit riskThe Group evaluates, on each balance sheet date, whether the credit risk ofrelated financial instruments has increased significantly since the initial recognitionthereof. In determining whether the credit risk of a financial instrument hasincreased significantly since the initial recognition thereof, the Group takes intoaccount the reasonable and well-grounded information that is accessible withoutunnecessary extra costs or efforts, including the qualitative and quantitativeanalyses based on the Group’s historical data, external credit risk rating andforward-looking information. The Group compares the risk of financial instrumentsdefaulting on the balance sheet date and the risk of them defaulting on the date ofinitial recognition based on an individual financial instrument or a group of financialinstruments with similar credit risk characteristics to determine the changes inanticipated default risk of 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 the
remaining duration on the reporting date rises by a certain margin from that atits initial recognition;
(2) The main qualitative criterion is that the debtor has materially adverse
changes 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 connectionwith the debtor’s financial difficulty;
(4) the debtor is very likely to go bankrupt or enter into other financialreorganizations;
(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
discount points 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) The probability of default refers to the possibility that the debtor will be
unable to fulfill its payment obligations in the next 12 months or throughoutthe remaining duration. The Group adjusts the probability of default based onthe results of the expected credit loss model and with forward-lookinginformation included to reflect the debtors’ probability of default under thecurrent macro economic environment.
(2) The default loss rate refers to the Group’s expectation on the extent of losses
incurred due to the default risk exposure. The loss given default varies withthe type of counterparty, the form and priority of claims and collaterals. Theloss given default is the percentage of risk exposure loss at the time ofdefault and is calculated based on the coming 12 months or the entireremaining duration.
(3) The default risk exposure refers to the amount that the Group should pay out
when a default occurs in the next 12 months or throughout the remainingduration.
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 provides for the expected credit lossesin the next 12 months using thesimplified method for other receivables and the general method for otherreceivables. See Note V. 3 and Note V.5 for details.
Liquidity risk
The 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. As of December 31,2020, 66.99% (December 31, 2019: 60.81%) of the Group’s debts would becomedue in less than one year.
The following table summarizes theanalysis on the due day of financial liabilitiesbased on non-discounted contractual cash flows:
Year 2020
At call | 1-3 months | 3 months-1 year (1 year inclusive) | 1 year - 5 years (5 years inclusive) | Above 5 years | Total | ||||||||||||
Short-term loans | 3,043,884.75 | 704,443,269.49 | 559,256,951.23 | - | - | 1,266,744,105.47 | |||||||||||
Accounts payable | 538,556,910.03 | 97,906,892.20 | - | - | - | 636,463,802.23 | |||||||||||
Other payables | 1,168,708,392.46 | - | - | 477,637,169.16 | - | 1,646,345,561.62 | |||||||||||
Other current liabilities | 4,131,670.37 | 1,002,071,232.88 | 2,012,205,479.45 | - | - | 3,018,408,382.70 | |||||||||||
Due within 1 year Non-current liabilities | 980,000.00 | 51,731,333.33 | 1,285,433,398.48 | - | - | 1,338,144,731.81 | |||||||||||
Long- term loans | 868,333.33 | 1,736,666.67 | 7,815,000.00 | 298,671,166.67 | - | 309,091,166.67 | |||||||||||
Bonds payable | - | - | 141,930,000.00 | 3,588,613,260.27 | - | 3,730,543,260.27 | |||||||||||
1,716,289,190.94 | 1,857,889,394.57 | 4,006,640,829.16 | 4,364,921,596.10 | - | 11,945,741,010.77 |
At call | 1-3 months | 3 months-1 year (1 year inclusive) | 1 year - 5 years (5 years inclusive) | Above 5 years | Total | ||||||||||||
Short-term loans | 732,682,609.75 | 1,986,244,310.47 | 1,498,332,939.75 | - | - | 4,217,259,859.97 | |||||||||||
Accounts payable | 204,289,969.87 | 320,951,523.61 | - | - | - | 525,241,493.48 | |||||||||||
Other payables | 286,500,317.05 | - | - | 622,982,815.42 | - | 909,483,132.47 | |||||||||||
Other current liabilities | - | - | 2,049,339,726.03 | - | - | 2,049,339,726.03 | |||||||||||
Due within 1 year Non-current liabilities | 906,583.33 | 1,813,166.67 | 273,619,855.56 | - | - | 276,339,605.56 | |||||||||||
Long- term loans | 1,893,583.33 | 3,787,166.67 | 17,042,250.00 | 557,830,211.11 | - | 580,553,211.11 | |||||||||||
Bonds payable | - | - | 189,575,674.15 | 4,762,947,369.86 | - | 4,952,523,044.01 | |||||||||||
1,226,273,063.33 | 2,312,796,167.42 | 4,027,910,445.49 | 5,943,760,396.39 | - | 13,510,740,072.63 |
Foreign exchange rate riskThe Group faces trading exchange rate risks. Such risks are caused by sales orpurchases made by certain business units in currencies other than theirbookkeeping currency. 3%(2019: 1%)of the Group’s current sales amount weredenominated in currencies other than the bookkeeping currencies of the businessunits where the sales occurred, and 98% (2019: 99%) of the cost were nominated inthe bookkeeping currencies of the business units. Considering the Group’s shorttime of inventory and timely collection of accounts receivable, the managementbelieve that its foreign exchange rate risk is relatively low.
Price risk of equity instrument investmentsThe price risk of equity instrument investments refers to the risk of the fair value of
equity securities decreasing due to the changes in stock indices and value of
individual securities. On December 31, 2020, the Group was exposed to the price
risk of equity instrument investment arising from individual equity instrument
investments that is measured at fair value and whose changes are included in the
current profit and loss (Note V. 2) andindividual equity instrument investmentsthat is
measured at fair value and whose changes are included in the other comprehensive
income (Note V. 10). The listed equity instruments that were invested and held by
the Group were listed on the Shanghai Stock Exchange and the Shenzhen Stock
Exchange, respectively, the determination is made through discounting and
adjustment using the trading prices of similar circulating stocks of the same listed
company on the balance sheet date, combined with liquidity.
The market stock indexes of the following stock exchanges at the closing point of
the trading day that is closest to the balance sheet date, and their respective highest
and lowest closing points during the year are as follows:
At the end of 2020 | Highest/lowest in 2020 | At the end of 2019 | Highest/lowest in 2019 |
Equity instrument investment book value | Increase/(decrease) in net profit and loss | Increase/(decrease) in after-tax net in other comprehensive income | Increase/(decrease) in total shareholders’ equity | |
Equity instrument investment Fair value increase/decrease by10% SZSE—Equity instrument investments that are measured at fair value and whose changes are included in other comprehensive income | 662,256,342.79 | - | 49,669,225.71 | 49,669,225.71 |
Shanghai—Equity instrument investments that are measured by fair value and whose | 51,712,734.31 | 3,878,455.07 | - | 3,878,455.07 |
changes are included in thecurrent profit and loss
Year 2019
Equity instrument investment book value | Increase/(decrease) in net profit and loss | Increase/(decrease) in after-tax net in other comprehensive income | Increase/(decrease) in total shareholders’ equity | |
Equity instrument investment Fair value increase/decrease by10% SZSE—Equity instrument investments that are measured at fair value and whose changes are included in other comprehensive income | 642,187,968.78 | - | 48,164,097.66 | 48,164,097.66 |
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 | 6,632.73 | 51,706,101.60 | 51,712,734.33 | |
1. Financial assets that are measured at fair value and whose changes are included in the current profit and loss | 6,632.73 | 51,706,101.60 | 51,712,734.33 | |
(2) Investment in equity instruments | 6,632.73 | 51,706,101.60 | 51,712,734.33 | |
(2) Other debt investments | ||||
(3) Other equity instruments investment | 662,256,342.79 | 662,256,342.79 | ||
(4) Other non-current financial assets | 179,388,640.95 | 1,344,536,608.86 | 1,523,925,249.81 | |
Total assets continuously | 662,262,975.52 | 231,094,742.55 | 1,344,536,608.86 | 2,237,894,326.93 |
measured by fairvalue
2. Basis for determining the market prices of the items continuously and
non-continuously measured by Level 1 fair value
√Applicable □Not applicable
The Group’s level-1 items continuously measured at fair value mainly include listed equityinstruments, and the fair value is determined based on the market quotation on the lasttrading day of 2020.
3. Valuation techniques and qualitative and quantitative information of importantparameters for the items continuously and non-continuously measured by Level2 fair value
√Applicable □Not applicable
The Group’s level-2 items continuously measured at fair value mainly include unlistedequity investments and listed equity instruments with restricted sales conditions. The fairvalue of unlisted equity investments is determined based on the information in the financialstatements of these unlisted companies on December 31, 2020, combined withcomparable information of listed companies in the same industry under the comparablecompany multiplier method. In the listed equity instruments subject to restricted salesconditions, the valuation model is used to determine the fair value based on the marketquotation, and the important observable input value is the liquidity discount.
4. Valuation techniques and qualitative and quantitative information of importantparameters for the items continuously and non-continuously measured by Level3 fair value
√Applicable □Not applicable
The Group’s level-3 items continuously measured at fair value include equityinvestments and debt investments in non-listed companies for which thecomparable company multiplier method cannot be used. The fair value of the equityinvestments and debt investments in non-listed companies for which thecomparable company multiplier method cannot be used are determined under theasset-based method as of December 31, 2020.
5. Adjustment information between the opening book value and closing book value,and the sensitivity analysis of unobservable parameters for items continuouslymeasured by Level 3 fair value
□Applicable √Not applicable
6. For items continuously measured by fair value, if there is conversion betweendifferent levels in the current period, the reasons for the conversion and thepolicy for determining the time of conversion
□Applicable √Not applicable
7. Changes in valuation techniques in the current period and reasons for changes
□Applicable √Not applicable
8. Fair value of financial assets and financial liabilities not measured by fair value
√Applicable □Not applicable
Assets and liabilities disclosed by fair value
Year 2020
Entries used in the fair value measurement | ||||
Quotation in an active market Level 1 | Important observable entry Level 2 | Important observable entry Level 2 | Total | |
Bonds payable (current portion included) | 4,566,553,461.90 | 4,566,553,461.90 | ||
Book value | Fair value | ||||
Year 2020 | Year 2019 | Year 2020 | Year 2019 | ||
Financial liabilities bonds payable (current portion included) | 4,584,565,819.27 | 4,564,291,387.81 | 4,566,553,461.90 | 4,553,867,057.85 |
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.
If there are no restrictions on the sale of listed equity instruments, the fair value isdetermined at the quoted market price. In the listed equity instruments subject torestricted sales conditions, the valuation model is used to determine the fair valuebased on the market quotation, and the important observable input value is theliquidity discount. The Group believes that the fair value estimated by valuationtechniques is reasonable and is also the most appropriate value on the balancesheet date.
There was no major transfer of financial instruments measured at fair value by theGroup and the Company between levels in current and previous years.
XII. Related parties and related-party transactions
1. Parent company of the Company
√Applicable □Not applicable
Unit: RMB10,000
Name of parent company | Registering place | Nature of business | Registered capital | Shareholding ratio in the Company (%) | Voting right ratio in the Company (%) |
CCCH | Yiwu, Zhejiang | Asset management | 100,000 | 55.82 | 55.82 |
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 |
Zhejiang Yemai Data Technology Co., Ltd. | Associate |
Yiwu Meipinshu Supply Chain Management Co., Ltd. | Associate |
JEBEL ALI FREE ZONE TRADER MARKET DEVELOPMENT AND OPERATZON FZCO | Associate |
Yiwu Digital Port Technology Co., Ltd. | Joint venture |
Yiwu China Commodities City Property Development Co., Ltd. | Associate |
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 Market Development Group Co., Ltd. | Controlling shareholder 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. | Subsidiaries of joint ventures |
Yiwu Chengzhen Property Co., Ltd. | Subsidiaries of joint ventures |
Yiwu Gongchen Shangbo Property Co., Ltd. | Subsidiaries of joint ventures |
Yiwu Tonghui Shangbo Real Estate Co., Ltd. | Subsidiaries of joint ventures |
Zhejiang Shangbo Property Co., Ltd. | Subsidiaries of associates |
Yiwu Handing Shangbo Real Estate Co., Ltd. | Subsidiaries of associates |
Related party | Contents 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 | 69,300.00 | 100,237.50 |
Xingfuhu International Conference Center | Materials for COVID-19 epidemic prevention and control | 205,143.40 |
Related party | Contents of related-party transaction | Amount in the current period | Amount in the previous period |
MDG and its branch Xingfuhu International Conference Center | Laundry costs, venue rental costs, etc. | 6,323,286.35 | 8,987,041.46 |
Meipinshu | Procurement agency | 310,367.07 |
Name of consignor/employer | Name of consignee/contractor | Type of entrusted/contracted assets | Starting date of entrustment /contracting | Ending date of entrustment /contracting | Pricing of entrustment income/contracting income | Entrustment income/contracting income recognized in the current period |
MDG | Our company | Entrustment of other assets | Negotiated price | 1,020,591.87 |
Name of lessee | Type of leased asset | Rental income recognized in the current period | Rental income recognized in the previous period |
MDG | Office space | 836,793.82 | 1,131,789.65 |
Huishang Micro-finance | Office space | 312,233.27 | 434,319.39 |
Redbud Capital | Office space | 246,819.09 | 220,921.54 |
Zhejiang Yemai Data Technology Co., Ltd. | Office space | 28,793.86 | 53,104.44 |
Guaranteed party | Guaranteed amount | Starting date of the guarantee | Expiry date of the guarantee | Whether the guarantee has been fulfilled |
Yiwu Shanglv | 234,053,272.54 | July 1, 2015 | December 15, 2026 | NO |
Yiwu Shanglv | 5,635,000.00 | December 25, 2020 | December 24, 2023 | NO |
Huangyuan Shangbo | 631,658,339.86 | August 23, 2019 | August 22, 2024 | NO |
Chengzhen Property | 86,475,786.33 | September 22, 2019 | September 21, 2024 | NO |
Guaranteeing party | Guaranteed amount | Starting date of the guarantee | Expiry date of the guarantee | Whether the guarantee has been fulfilled |
MDG | 200,000,000.00 | April 22, 2013 | October 22, 2021 | NO |
CCCH | 5,635,000.00 | December 25, 2020 | December 24, 2025 | NO |
Related party | Amount | Starting date | Expiry date | Explanation |
Borrowings | ||||
Huangyuan Shangbo | 539,000,000.00 | July 31, 2020 | In 2020, the Group borrowed a total of RMB 539,000,000.00 from Huangyuan Shangbo according to the shareholding ratio, atthe annual |
interest rate of 0%. The due date is determined based on the funding requirements of the Huangyuan Shangbo project. | ||||
Chengzhen Property | 27,200,000.00 | October 22, 2020 | In 2020, the Group borrowed a total of RMB 27,200,000.00 from Chengzhen Real Estate according to the shareholding ratio, atthe annual interest rate of 0%. The due date is determined based on the funding requirements of the Chengzhen Real Estate project. |
Related party | Amount | Starting date | Expiry date | Explanation |
Lending to | ||||
Huangyuan Shangbo | 157,575,000.00 | February 25, 2019 | July 31, 2020 | The Group provided a total of RMB 526,589,117.96 of financial assistance in 2018, and a total of RMB 157,575,000.00 of financial assistance in 2019 to Huangyuan Shangbo, atthe annual interest rate of 0% or 10%. Among them, the annual interest rate of the portion beyond the shareholding ratio is 10%. As of December 31, 2020, Huangyuan Shangbohas repaid off successively. |
Huangyuan Shangbo | 526,589,117.96 | December 12, 2018 | July 1, 2020 | Ditto |
Chengzhen Property | 451,816,700.00 | June 27, 2019 | October 22, 2020 | In 2019, the Group provideda total of RMB 451,816,700.00 of financial assistance to Chengzhen Real Estate at an annual interest rate of 0% or 10%. Among them, the annual interest rate of the portion beyond the shareholding ratio is 10%. As of December 31, 2020, Chengzhen Real Estate has repaid off successively. |
Gongchen Shangbo | 1,073,100,000.00 | December 28, 2020 | December 28, 2020 | In 2020, the Group provided a total of RMB 1,594,759,831.00 for financial assistance to Gongchen Shangbo at the annual interest rate of 10%. Gongchen Shangbo has repaid RMB 1,073,100,000.00successivelyin 2020. |
Gongchen Shangbo | 472,659,831.00 | December 28, 2020 | Ditto | |
Gongchen Shangbo | 49,000,000.00 | May 14, 2020 | Ditto | |
Tonghui Shangbo | 1,486,368,548.00 | October 23, 2020 | In 2020, the Group provided a total of RMB 1,486,368,548.00 of financial assistance to Tonghui Shangbo at an annual interest rate of 6.5%. The repayment period of the financial assistance is determined based on the progress of the project. | |
Handing Shangbo | 472,144,400.00 | December 11, 2020 | In 2020, the Group provided a total of RMB 472,144,400.00 of financial assistance to Hangding Shangbo at the annual interest rate of 6%. The repayment period of the financial assistance is determined based on the progress of the project. | |
JEBEL ALI FREE ZONE | 63,465,484.42 | March 9, 2020 | The Group provided a total of RMB 63,465,484.42 of financial assistance to JEBEL ALI FREE ZONE TRADER |
TRADER MARKET DEVELOPMENT AND OPERATZON FZCO | MARKET DEVELOPMENT AND OPERATZON FZCO in 2020 at the annual interest rate in terms of 6-month average EIBOR plus 5%. The repayment period of the financial assistance is determined based on the progress of the project. |
Related party | Contents of related-party transaction | Amount in the current period | Amount in the previous period |
Zhejiang Shangbo Property Co., Ltd. | Acquisition of property, plant and equipment and investment real estate | 19,881,919.03 |
Item | Amount in the current period | Amount in the previous period |
Remunerations of key officers | 22,487,812.15 | 13,392,667.80 |
Project | Related party | Closing balance | Opening balance | ||
Book balance | Bad debt provision | Book balance | Bad debt provision | ||
Accounts Receivable | Yiwu Meipinshu Supply Chain Management | 3,791,271.51 | |||
Total | 3,791,271.51 | ||||
Other receivables-interest receivable | Gongchen Shangbo | 101,380,259.61 | |||
Other receivables-interest receivable | Tonghui Shangbo | 18,391,082.53 | |||
Other receivables-interest receivable | Handing Shangbo | 1,629,868.34 | |||
Other receivables-interest receivable | Chengzhen Property | 191,064,382.11 | |||
Other receivables | Huangyuan Shangbo | 684,164,117.96 |
Other receivables | Chengzhen Property | 451,816,700.00 | |||
Other receivables | Gongchen Shangbo | 521,659,831.00 | |||
Other receivables | Tonghui Shangbo | 1,486,368,548.00 | |||
Other receivables | Handing Shangbo | 472,144,400.00 | |||
Total | 2,601,573,989.48 | 1,327,045,200.07 | |||
Long-term receivables | Yiwu Shanglv | 61,250,000.00 | 61,250,000.00 | ||
Long-term receivables | JEBEL ALI FREE ZONE TRADER MARKET DEVELOPMENT AND OPERATZON FZCO | 65,506,573.81 | |||
Total | 126,756,573.81 | 61,250,000.00 |
Project | Related party | Closing book balance | Opening book balance |
Accounts payable | Zhejiang Yemai Data Technology | 1,944,907.37 | 912,462.01 |
Total | 1,944,907.37 | 912,462.01 | |
Advance from customers | Yiwu China Commodities City Property Development Co., Ltd. | 612,289.00 | |
Advance from customers | Huishang Micro-finance | 119,444.13 | 229,295.66 |
Advance from customers | Yiwu Digital Port Technology | 116,090.04 | |
Advance from customers | Redbud Capital | 82,272.97 | 90,759.79 |
Advance from customers | Zhejiang Yemai Data Technology | 7,395.00 | 4,425.37 |
Advance from customers | Yiwu Meipinshu Supply Chain Management | 29,076.43 | |
Total | 966,567.57 | 324,480.82 | |
Contract liabilities | Huishang Micro-finance | 12,609.59 | |
Contract liabilities | Yiwu Digital Port Technology | 2,192.92 | |
Total | 14,802.51 | ||
Other payables | Huangyuan Shangbo | 539,000,000.00 | |
Other payables | Chengzhen Property | 27,200,000.00 | |
Other payables | MDG | 400,421.10 | 140,354.00 |
Other payables | Huishang Micro-finance | 85,000.00 | |
Other payables | Zhejiang Yemai Data Technology | 24,000.00 | 267,150.20 |
Other payables | Yiwu China Commodities City Property Development Co., Ltd. | 240,000.00 | |
Other payables | Yiwu Meipinshu Supply Chain Management | 57,000.00 | |
Other payables | Yiwu Digital Port Technology | 26,300.00 | |
Total | 567,032,721.10 | 407,504.20 |
Total amount of equity instruments granted by the company in the current period | 46,700,000.00 |
Scope of the exercise price of the stock options issued by the companyand the remaining period of the contractat the end of the period | 2.94 |
60 months since theregistering date of grant
Other descriptionsNone
2. Share-based payment settled with equity
√Applicable □Not applicable
Unit: RMB
Method for determining the fair value of equity instruments on the grant date | Market price on grant day |
Basis for determining the number of exercisable equity instruments | Determined based on the number of incentive objects that have reached the assessment target, through annual assessment on the company’s financial performance indicators and personal performance indicators. |
Cumulative amount of equity-settled share-based payments included in the capital reserve | 1,880,981.38 |
Total amount of expenses recognized by equity-settled share payments in the current period | 1,880,981.38 |
On December 10, 2020, the 2020 fifth extraordinary general meeting of shareholders of thecompany reviewed and approved the “Plan on the Company's Restricted Stock IncentivePlan 2020 (Draft)” and its summary. A total of 50,480,000 restricted stocks were granted,accounting for 0.927% of 5,443,214,176 shares, the company’s total share capital, of which47,920,000 shares were granted for the first time and 2,560,000 shares reserved; thenumber of incentive recipients granted for the first time under the plan was 405, and therestricted stock incentive recipients were the company’s (including its subsidiaries’)directors, senior management, core technical personnel, and other personnel deemed bythe board of directors to be motivated; the initial grant price of some restricted stocksgranted in this plan is RMB 2.94/share.According to the authorization of the fifth extraordinary general meeting of shareholders in2020, the company held the 26
thmeeting of the eighth board of directors on December 11,2020, and reviewed and passed the “Plan on Initially Granting Restricted Shares toIncentive Objects”. The first grant date is December 11, 2020. The number of first grants is47,920,000 shares, and the grant price is RMB 2.94/share. The source of the restrictedstock incentive plan is the company's directional issuance of restricted stocks to incentiveobjects, and the types of stocks is RMB common stocks. During the subscription process,10 incentive objects voluntarily waived 1,220,000 restricted stocks to be granted to themdue to personal reasons; therefore, 46,700,000 restricted stocks were granted, and thenumber of incentive objects was 395 in this action. On December 29, 2020, the companyreceived the subscription payment for restricted stocks for RMB 137,298,000.00 from theincentive objects. The actual number of stocks subscribed was 46,700,000, which wasverified by Ernst & Young Hua Ming Certified Public Accountants (Special GeneralPartnership) with a capital verification report ( (2020) YZ No. 60709629_B01). On January15, 2021, the company's board of directors has completed the registration of the first grantof restricted stocks.The restricted stocks granted for the first time under the restricted stock incentive planshould be vested in three terms from the first trading day after 24 months after the grantregistration is completed until the last trading day in 60 months after the grant registration iscompleted. That is, after the vesting conditions have been satisfied, employees have theright to purchase stocks at the vesting price. If the vesting conditions of the restricted stockincentive plan have been satisfied during the vesting period, the incentive objects can applyfor the ownership of stocks and being listed for circulation.
3. Share-based payment settled with cash
□Applicable √Not applicable
4. Modification and termination of share-based payment
□Applicable √Not applicable
5. Others
□Applicable √Not applicable
XIV. Commitments and contingencies
1. Important commitments
√Applicable □Not applicable
Important external commitments, nature and amount thereof as of the balancesheet dates
Capital commitment Year 2020 Year 2019Signed but not provided 1,346,968,354.17 128,556,605.78
Investment commitments:
In 2017, the Group’s wholly-owned subsidiary Yiwu China Commodities City FinancialHoldings Co., Ltd. (“CCCF”) and Shanghai Fuxing Industry Group Co., Ltd. (“Fuxing”) jointlyestablished an industry fund Yiwu China Commodities City Fuxing Investment Center (limitedpartnership) (hereinafter referred to as the “FoF”). The FoF invested in 12 sub-funds including YiwuShangfu Chuangzhi Investment Center (limited partnership) (“Shangfu Chuangzhi Fund”). CCCFsubscribed for capital contribution of RMB998million in the FoF as a limited partner, accounting for
49.9% of the total capital contribution, and has paid in RMB102.92million. The unpaid portion of itssubscribed capital contribution was promised to be RMB895.08million and was not subject to aterm. CCCF also made capital contribution of RMB9.8million (49% equity) to Yiwu ChinaCommodities City Investment and Management Co., Ltd. (hereinafter referred to as the “CCCIM”),which was a general partner of the above FoF and sub-funds. Fuxing made capital contribution of51% to and had control over CCCIM.
Shangfu Chuangzhi Fund raised funds of RMB823.36million in total. The FoF has subscribedfor and paid in capital contribution of RMB205.84million as a limited partner (including the aboveRMB102.92million from CCCIM and the rest was contributed by Fuxing, the other limited partner ofthe FoF). As the other limited partner of Shangfu Chuangzhi Fund, CCCF has separatelysubscribed for and paid in capital contribution of RMB617.51million. In addition, neither the Groupnor CCCF have invested in other sub-funds of the FoF. Subsequently, Shangfu Chuangzhi Fundmade capital contribution of RMB820.54million to subscribe for the increase in the registeredcapital of Hubei Provincial Asset Management Co., Ltd. to acquire 22.667% equity therein. By2019, 9 out of the above 12 sub-funds had been deregistered.
In 2018, CCCF learned during its after-investment follow-up management that Fuxing and itsactual controller ZHU Yidong were suspected of having committed a criminal offense and the
22.667% equity held by Shangfu Chuangzhi Fund in Hubei Provincial Asset Management Co., Ltd.was frozen by the Public Security Bureau of Shanghai for a term from Sep 6, 2018 to Sep 6, 2019due to Fuxing’s contribution in the sources of the capital contribution. As of the approval date of thefinancial statements, the freeze period has been extended until September 2, 2021.
As of the approval date of the financial statements, the Group had not received any notice ofcapital contribution other than the above contributions that had been made or any notice of actioninvolving the Group, CCCF, FoF and its sub-funds.
In addition, as of December 31, 2020, the Group had other investment commitments for RMB
201.71 million (December 31, 2019: RMB 401.86 million) in total.
2. Contingencies
(1).Important contingencies on the balance sheet dates
√Applicable □Not applicable
Year 2020. Year 2019Contingent liability due toexternal guarantees 973,992,539.81 1,853,883,809.89
According to relevant regulations, before the buyer of the commodity housing hascompleted the property ownership certificate, the Group needs to provide amortgage guarantee to the bank for the sale of commodity housing. As ofDecember 31, 2020, the guarantee amount not settled was RMB 16,170,141.08(December 31, 2019: RMB 540,283,351.51). Those guarantees would be releasedafter the issuance of the property ownership certificates and are thus little likely toincur losses. Therefore, the management believed that it was not necessary tomake provision for the guarantees.
According to the resolution of the 15th meeting of the 7th Board of Directors on Jul1, 2015, the Group applied to the Yiwu Branch of ABC for a RMB750million loan forYiwu Shanglv and provided guarantee based on its shareholding ratio. Theguarantee was a joint and several liability guarantee, the maximum amount ofguarantee was RMB367.5million and the term was 11 years. As of December 31,2020, Yiwu Shanglvactually borrowed RMB 477,659,739.88 from banks (December31, 2019: RMB 587,412,606.21). In accordance with the guarantee contract, theGroup assumed the guarantee liability for RMB 234,053,272.54 (December 31,2019: RMB 287,832,177.04) with Yiwu Branch of the Agricultural Bank of China.Yiwu State-owned Capital Operation Co., Ltd. provided a counter guarantee for thisguarantee.
According to the resolution of the 19
th
meeting of the eighth session of the board ofdirectors on August 23, 2020, the Group applied for a loan of no more than RMB100 million with the Yiwu Branch of Bank of Communications for Yiwu Shanglv andprovided a guarantee based on the equity ratio. The guarantee method was jointliability guarantee, with the highest guarantee. The amount was RMB 49 million,and the guarantee period was two years from the day after the expiration of the loanperiod under the independent contract. As of December 31, 2020, Yiwu Shanglvactually borrowed RMB 11,500,000.00 from the bank (December 31, 2019: RMBzero). According to the guarantee contract, the Group shall assume the guaranteeliability for RMB 5,635,000.00 (December 31, 2019: RMB zero) to the Yiwu Branchof Bank of Communications. Yiwu China Commodity City Holdings Limited providedcounter-guarantee for this guarantee.
According to the resolution of the 65th 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. As of December 31, 2020, HuangyuanShangbo actually borrowed RMB 674,889,305.56 from Yiwu Branch of Industrialand Commercial Bank of China and RMB 614,209,347.22 from Shanghai PudongDevelopment Yiwu Branch (December 31, 2019: RMB 700,923,611.11, RMB981,198,055.56) ). According to the guarantee contract, the Group assumed a
guarantee liability for RMB 330,695,759.72 to the Yiwu Branch of Industrial andCommercial Bank of China, and a guarantee liability for RMB 300,962,580.14 to theYiwu Branch of Shanghai Pudong Development Bank (December 31, 2019: RMB343,452,569.44, and RMB 480,787,047.22, respectively).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 wasRMB391.2million and the term was from the maturity date of the debt agreed underthe corresponding loan contract until two years after the maturity date of the debtagreed in the loan contract with the latest expiration date among all loan contracts.As of December 31, 2020, Chengzhen Real Estate actually borrowed RMB360,315,776.39 from Yiwu Branch of Evergrowing Bank (December 31, 2019: RMB839,702,769.44). In accordance with the guarantee contract, it assumed aguarantee liability of RMB 86,475,786.33 for Yiwu Branch of Evergrowing Bank(December 31, 2019: RMB 201,528,664.67).
(2).Notes shall also be made even if the Company has no important contingencies to be
disclosed:
□Applicable √Not applicable
3. Others
□Applicable √Not applicable
XV. Matters after the balance sheet date
1. Important non-adjusting events
√Applicable □Not applicable
Unit: RMB
Item | Content | Effect on financial status and operating results | Issuance of ultra-short-term financing notes for which the impact cannot be estimated: Reasons |
Issuance of ultra-short - term financing bonds | On January 14, 2021, the company issued 88-day Zhejiang China Commodities City Group Co., Ltd.’s 2021 ultra-short-term financing bonds (I) for RMB 1 billion at the rate of 3.2%. On February 20, 2021, the company issued 182-day Zhejiang China Commodities City Group Co., Ltd.’s 2021 ultra-short-term financing bonds (II) for RMB 1 billion at the rate of 3.4%. From March 4, 2021 to March 5, 2021, the company issued 88-day Zhejiang China Commodities City Group Co., Ltd.’s 2021 ultra-short-term financing bonds (III) with one-off principal and interest repayment upon maturity for RMB 1 billion at the rate of 3.09%. |
Profits or dividends to be distributed | 301,945,279.68 |
Profits or dividends announced through deliberation and approval | 301,945,279.68 |
(e) Exhibition advertising segment refers to the design, production, release, and agencyadvertising business;(f) Other service segments include the provision of market-related supporting services.The transfer pricing between divisions is made based on the prices offered to third parties and thethen prevailing market prices.
(2).Financial information of reporting divisions
√Applicable □Not applicable
Unit: RMB million
Item | Market operation | Sales of goods | Real estate sales | Hotel service | Exhibition and advertising | Other services | Set-offs among divisions | Total |
Revenue from external transactions | 2,736 | 424 | 38 | 156 | 110 | 262 | 0 | 3,726 |
Revenue from inter-division transactions | 33 | 51 | 0 | 14 | 45 | 69 | 212 | 0 |
Loss for asset impairment | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Profits before tax | 1,714 | -48 | 1 | -55 | -23 | 48 | 216 | 1,421 |
Total assets | 36,501 | 379 | 641 | 282 | 648 | 3,560 | 13,261 | 28,750 |
Total liabilities | 21,677 | 402 | 54 | 335 | 632 | 478 | 8,403 | 15,175 |
Capital expenditures | 1,158 | 6 | 0 | 32 | 40 | 92 | 0 | 1,328 |
Long-term equity investment in joint ventures and associates | 2,906 | 0 | 0 | 0 | 0 | 927 | 0 | 3,833 |
2020 | 2019 | |||||
Within 1 year (1 year inclusive) | 5,481,259.27 | 6,843,030.36 | ||||
1-2 years (2 years inclusive) | 15,750,503.12 | 10,173,297.19 | ||||
2-3 years (3 years inclusive) | 14,325,047.19 | 5,440,615.15 | ||||
Above 3 years | 194,335,820.19 | 3,456,383.31 |
229,892,629.77 | 25,913,326.02 |
Age | Closing book balance |
Within 1 year | |
Within 1 year | 14,267,749.52 |
1 to 2 years | 407,254.08 |
Above 3 years | 11,562.06 |
Less: bad debt provision for accounts receivable | -14,988.19 |
Total | 14,671,577.47 |
Type | Closing balance | Opening balance | ||||||||
Book balance | Bad debt provision | Book value | Book balance | Bad debt provision | Book value | |||||
Amount | (%) | Amount | Provision ratio (%) | Amount | (%) | Amount | Provision ratio (%) | |||
Accounts receivable for which bad debt provision is made individually | 78,801.18 | 3.19 | 78,801.18 | 100.00 | ||||||
Accounts receivable for which bad debt provision is made by group | 14,686,565.66 | 100.00 | 14,988.19 | 0.10 | 14,671,577.47 | 2,393,443.69 | 96.81 | 11,745.46 | 0.19 | 2,381,698.23 |
Total | 14,686,565.66 | / | 14,988.19 | / | 14,671,577.47 | 2,472,244.87 | / | 90,546.64 | / | 2,381,698.23 |
Name | Closing balance | ||
Accounts Receivable | Bad debt provision | Provision ratio (%) | |
Provision for bad debt by combination of credit risk characteristics | 14,686,565.66 | 14,988.19 | 0.10 |
Total | 14,686,565.66 | 14,988.19 | 0.10 |
Standard for recognition of provision for bad debt by combination of credit risk characteristics anddescriptions:
√Applicable □Not applicable
None
If the bad debt provision is made according to the general model of expected credit loss, please referto the disclosure of other receivables:
√Applicable □Not applicable
Year 2020 | Year 2019 | ||||||||||||||||
Book blance with expected default | Expected credit loss rate (%) | Expected credit loss for the entire duration | Book blance with expected defaul | Expected credit loss rate (%) | Expected credit loss for the entire duration | ||||||||||||
Within 1 year | 14,267,749.52 | 0.01 | 1,350.33 | 2,381,881.63 | 0.01 | 183.40 | |||||||||||
1 - 2 years | 407,254.08 | 0.51 | 2,075.80 | - | 0.41 | - | |||||||||||
2 -3 years | - | 13.76 | - | - | 11.19 | - | |||||||||||
Above 3 years | 11,562.06 | 100.00 | 11,562.06 | 11,562.06 | 100.00 | 11,562.06 | |||||||||||
14,686,565.66 | 14,988.19 | 2,393,443.69 | 11,745.46 |
Type | Opening balance | Amount of change during the current period | Closing balance | |||
Accrual | Recovery or reversal | Charge-off or write-off | Other changes | |||
Bad debt provision for accounts receivable | 90,546.64 | 75,558.45 | 14,988.19 | |||
Total | 90,546.64 | 75,558.45 | 14,988.19 |
(7).Amounts of assets and liabilities formed by the transfer of accounts receivable andcontinuing involvement
□Applicable √Not applicable
Other notes:
√Applicable □Not applicable
The Company is mainly engaged in market operation and hotel services and its revenue from anindividual client is very low. Therefore, the combined accounts receivable from the top five clientsoccupied a very small share in its total balance of accounts receivable.
2. Other receivables
Presentation of items
√Applicable □Not applicable
Unit: RMB
Item | Closing balance | Opening balance |
Interest receivable | 121,401,210.48 | 134,543,859.25 |
Other receivables | 2,530,239,399.58 | 1,145,594,759.16 |
Total | 2,651,640,610.06 | 1,280,138,618.41 |
Item | Closing balance | Opening balance |
Cash occupation fee for receivables | 121,401,210.48 | 134,543,859.25 |
Total | 121,401,210.48 | 134,543,859.25 |
(2).Important dividend receivable with an account age longer than 1 year
□Applicable √Not applicable
(3).Bad debt provision
□Applicable √Not applicable
Other notes:
□Applicable √Not applicable
Other receivables
(1). Disclosure based on account age
√Applicable □Not applicable
Unit: RMB
Age | Closing book balance |
Within 1 year | |
Within 1 year | 2,525,769,414.60 |
1 to 2 years | 303,032.27 |
2 to 3 years | 1,007,122.97 |
Above 3 years | 3,445,419.62 |
Less: Provision for bad debts of other receivables | -285,589.88 |
Total | 2,530,239,399.58 |
Nature of account | Closing book balance | Opening book balance |
Financial grants receivable | 2,480,172,779.00 | 1,135,980,817.96 |
Receivables from land | 42,493,714.00 | |
Reserve | 430,887.57 | 599,890.14 |
Withholdings, deposit and margin | 7,142,019.01 | 9,014,051.06 |
Total | 2,530,239,399.58 | 1,145,594,759.16 |
Bad debt provision | Stage 1 | Stage 2 | Stage 3 | Total |
Expected credit loss in the coming 12 months | Expected credit loss in the entire duration (credit has not been impaired) | Expected credit loss in the entire duration (credit has been impaired) | ||
Balance as of Jan 1, 2020 | 540,270.80 | 540,270.80 | ||
Balance on January 1, 2020 in current period | ||||
--Transfer to stage 2 | ||||
--Transfer to stage 3 | ||||
- Return to stage 2 | ||||
--Return to stage 1 | ||||
Provision made in | 2,734.85 | 2,734.85 |
the current period | ||||
Current reversal | 132,334.44 | 132,334.44 | ||
Write-off in current period | ||||
Current write-off | 125,081.33 | 125,081.33 | ||
Other changes | ||||
Balance on December 31, 2020 | 285,589.88 | 285,589.88 |
Type | Opening balance | Amount of change during the current period | Closing balance | |||
Accrual | Recovery or reversal | Charge-off or write-off | Other changes | |||
Bad debt provision for other receivables | 540,270.80 | 2,734.85 | 132,334.44 | 125,081.33 | 285,589.88 | |
Total | 540,270.80 | 2,734.85 | 132,334.44 | 125,081.33 | 285,589.88 |
Debtor | Nature of receivable | Closing balance | Age | Weight in the total closing balance of other receivables (%) | Bad debt provision Closing balance |
Yiwu Tonghui Shangbo Real Estate Co., Ltd. | Financial assistance | 1,486,368,548.00 | Within 1 year | 58.86 | |
Yiwu Gongchen Shangbo Property Co., Ltd. | Financial assistance | 521,659,831.00 | Within 1 year | 20.61 | |
Yiwu Handing Shangbo Real Estate Co., Ltd. | Financial assistance | 472,144,400.00 | Within 1 year | 18.66 | |
Yiwu Natural Resources and Planning Bureau | Receivables from land | 42,493,714.00 | Within 1 year | 1.68 |
Yiwu International Production Material Market Construction Headquarters | Construction commencement deposit | 2,400,000.00 | Above 3 years | 0.10 | |
Total | / | 2,525,066,493.00 | / | 99.91 |
Item | Closing balance | Opening balance | ||||
Book balance | Impairment provision | Book value | Book balance | Impairment provision | Book value | |
Investment in subsidiary | 3,157,825,391.43 | 3,157,825,391.43 | 5,958,370,031.25 | 5,958,370,031.25 | ||
Investment in associates and joint ventures | 2,925,310,036.59 | 2,925,310,036.59 | 927,726,964.52 | 927,726,964.52 | ||
Total | 6,083,135,428.02 | 6,083,135,428.02 | 6,886,096,995.77 | 6,886,096,995.77 |
Investee | Opening balance | Increase in the current period | Decrease in the current period | Closing balance | Closing balance of impairment provision |
Yiwu China Commodities City Property Development Co., Ltd. | 2,595,500,000.00 | 2,595,500,000.00 | |||
Yiwu China Commodities City Advertising Co., Ld. | 9,380,000.00 | 29,841,752.54 | 39,221,752.54 | ||
Yiwu China Commodities City Exhibition Co., Ltd. | 6,000,000.00 | 12,044,533.91 | 18,044,533.91 | ||
Yiwu China Commodities City Logistics Co., Ltd. | 19,000,000.00 | 4,471,131.52 | 23,471,131.52 |
Yiwu China Commodities City Information Technology Co., Ltd. | 200,594,000.00 | 200,594,000.00 | |||
China Yiwu International Commodities Fair Co., Ltd. | 10,000,000.00 | 10,000,000.00 | |||
Pujiang Lvgu Property Co., Ltd. | 700,000,000.00 | 700,000,000.00 | |||
Haicheng Company | - | 43,709.21 | 43,709.21 | 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 | 110,053,605.63 | 1,957,469,636.88 | ||
Yiwu China Commodities City Import and Export Co., Ltd. | 50,000,000.00 | 73,398.48 | 50,073,398.48 | ||
Yiwu China Commodities City Tourism Development Co., Ltd. | 70,200,000.00 | 64,019.49 | 70,264,019.49 | ||
Yiwu China Commodities City Overseas Investment and Development Co., Ltd. | 100,000,000.00 | 41,073.44 | 100,041,073.44 | ||
Yiwu China Commodities City Commerce and Trade Service Training Center Co., Ltd. | 100,000.00 | 100,000.00 | |||
Yiwu China Commodities City Assets Operation and Management Co., Ltd. | 180,000.00 | 4,900,000.00 | 5,080,000.00 | ||
Zhejiang Yindu Hotel Management Co., Ltd. | 1,570,540.29 | 1,570,540.29 | |||
Yiwu China Commodities City Big Data Co., Ltd. | 81,534,944.31 | 81,534,944.31 | |||
Yiwu Comprehensive Bonded Zone Operation and Management Co., Ltd. | 6,014,844.64 | 6,014,844.64 | |||
Yiwu China Commodities City Research Institute Co., Ltd. | 1,124,741.06 | 1,124,741.06 | |||
Zhejiang Huajie Investment and Development Co., Ltd. | 53,121,810.63 | 53,121,810.63 | |||
Yiwu Commodities City Gonglian Property Co., Ltd. | 200,000,000.00 | 200,000,000.00 | |||
Yiwu China Commodities City Supply Chain Management Co., Ltd. | 55,255.02 | 55,255.02 | |||
Total | 5,958,370,031.25 | 504,955,360.17 | 3,305,500,000.00 | 3,157,825,391.42 | 570,000,000.00 |
Investment object | Opening Balance | Change in the current period | Closing Balance | Closing balance of impairment provision | ||||
Additional investment | Reduced investment | Investment profit and loss recognized with the equity method | Adjustment of other comprehensive income | Changes in other equity | ||||
1. Joint ventures | ||||||||
Yiwu Shanglv | 348,139,707.06 | 17,691,049.85 | 365,830,756.91 | |||||
Yiwu Rongshang Property Co., Ltd. | 18,903,763.93 | 3,415,311.71 | 22,319,075.64 | |||||
Yiwu Chuangcheng Property Co., | 15,744,385.06 | -4,299,598.32 | 11,444,786.74 |
Ltd. | ||||||||
Yiwu Guoshen Shangbo Property Co., Ltd. | 14,795,558.65 | -14,795,558.65 | - | |||||
Others | 1,125,415.74 | 7,650,000.00 | -62,370.45 | 8,713,045.29 | ||||
Subtotal | 349,265,122.80 | 57,093,707.64 | 1,948,834.14 | 408,307,664.58 | ||||
2. Associates | ||||||||
Binjiang Shangbo | 137,128,387.75 | 17,023,879.67 | 154,152,267.42 | |||||
Huishang Micro-finance | 83,302,336.78 | 13,800,000.00 | 1,894,229.29 | 71,396,566.07 | ||||
Chouzhou Financial Lease | 330,665,464.31 | 40,655,197.71 | 371,320,662.02 | |||||
Pujiang Lvgu Property Co., Ltd. | 17,526,774.88 | 343,000,000.00 | 9,792,065.88 | 370,318,840.76 | ||||
Yiwu China Commodities City Property Development Co., Ltd. | (9,413,121.78) | 1,271,795,000.00 | 238,135,906.80 | 1,500,517,785.02 | ||||
Others | 27,365,652.88 | 30,000,000.00 | 3,257,784.88 | -4,811,617.28 | 49,296,250.72 | |||
Subtotal | 578,461,841.72 | 30,000,000.00 | 17,057,784.88 | 62,875,342.49 | 1,614,795,000.00 | 247,927,972.68 | 2,517,002,372.01 | |
Total | 927,726,964.52 | 87,093,707.64 | 17,057,784.88 | 64,824,176.63 | 1,614,795,000.00 | 247,927,972.68 | 2,925,310,036.59 |
Item | Amount in the current period | Amount in the prior period | ||
Incomes | Costs | Incomes | Costs | |
Main business | 2,323,724,833.35 | 979,994,093.76 | 2,382,097,264.23 | 1,063,799,720.32 |
Other businesses | 680,736,868.13 | 77,147,542.46 | 780,466,882.16 | 41,373,382.54 |
Total | 3,004,461,701.48 | 1,057,141,636.22 | 3,162,564,146.39 | 1,105,173,102.86 |
Classified by type of contract | Total |
Types of goods | |
The use of commercial spaces in the Commodity City and its supporting services | 2,518,760,008.72 |
Hotel accommodation and catering services | 151,368,495.20 |
Royalty income | 158,666,105.16 |
Other services | 44,762,805.89 |
Total | 2,873,557,414.97 |
Classified by business area |
Chinamainland | 2,873,557,414.97 |
Classification by time of good transfer | |
Hotel catering services | 101,370,661.17 |
Other services | 13,810,641.69 |
Classified by contract period | |
The use of commercial spaces in the Commodity City and its supporting services | 2,518,760,008.72 |
Hotel accommodation service | 49,997,834.03 |
Royalty income | 158,666,105.16 |
Other services | 30,952,164.20 |
Total | 2,873,557,414.97 |
Year 2020 | ||||||
The use of commercial spaces in the Commodity City and its supporting services for business | 2,045,470,400.02 | |||||
Hotel accommodation service | 4,571,618.80 | |||||
Other services | 10,347,082.83 | |||||
2,060,389,101.65 |
The performance obligation is fulfilled when the fixed-time paid funding service is provided.For the fixed-time paid funding service, the progress of contractual performance isdetermined based on the number of using days the fund. For the fixed-time paid fundingservice, the contract price is usually charged regularly as agreed in the contract.
(4). Amortization to remaining contract performance obligations
□Applicable √Not applicable
Other notes:
As of December 31, 2020, the transaction price allocated to the remaining performanceobligations was RMB 2,283,994,068.70. The Group expects that this amount will berecognized as an income in the next 5 years with the progress of the relevant service.
5. Investment income
√Applicable □Not applicable
Unit: RMB
Item | Amount in the current period | Amount in the previous period |
Income from long-term equity investment with the cost method | 149,000,000.00 | |
Long-term equity investment income under the equity method | 64,824,176.63 | 77,023,131.33 |
Investment income from disposal of long-term equity investments | 551,295,000.00 | |
Dividend income from other equity instruments investment during holding period | 10,034,187.04 | 6,271,366.90 |
Investment income from disposal of held-for-trading financial assets | 377,061.16 | 315,943.29 |
Investment income from disposal of other equity instrument investments | 31,738,134.32 | 1,067,505.30 |
Investment income from disposal of wealth management products | 461,232.89 | 32,575,331.66 |
Total | 658,729,792.04 | 266,253,278.48 |
Item | Amount | Explanation |
Profit and loss from the disposal of non-current assets | 383,206,932.21 | It is mainly due to the profit and loss of equity disposal of Yiwu China Commodities City Property Development Co., Ltd. (CCCP), Pujiang Green Valley and Yiwu Gongchen Shangbo |
Property Co., Ltd. (Gongchen Shangbo) | ||
Government grants that are recognized in the current profit and 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 | 18,655,980.14 | Please see details of government grants accounted for profit and loss for the current period |
Cash occupation fees charged from non-financial enterprises that are recognized in the current profit and loss | 124,744,826.38 | Fees paid for using fund collected from joint ventures including Gongchen Shangbo and Tonghui Shangbo |
Gain arising from investment costs for acquisition of subsidiaries, associates and joint ventures by the corporation being less than its share of fair value of identifiable net assets of the investees on acquisition | 31,308,053.80 | This is mainly due to the profit of RMB 30.457 million which is the result of re-measurement of the remaining equity at fair value after the loss of control right of CCCP and Pujiang Green Valley |
Profit and 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 and other debt instruments, except for effective hedging during the ordinary course of business | -32,578,800.48 | Mainly due to profit and loss arising from the change in fair value of financial assets held for trading |
Profits and losses arising from external entrusted loans | 11,786,857.07 | Refers to the income obtained from the issuance of entrusted loans |
Investment income from wealth management products and structured deposits | 688,953.43 | |
Net income from other non-operating activities | -4,107,200.75 | |
Effect of income tax | -122,917,029.51 | |
Effect of minority interest | -1,408,133.75 | |
Total | 409,380,438.54 |
Profits in the reporting period | Weighted average ROE (%) | EPS | |
Basic earnings per share | Diluted earnings per share | ||
Net profits attributable to common shareholders of the Company | 6.88 | 0.17 | 0.17 |
Net profits attributable to common shareholders of the Company after deducting non-recurring profit and loss | 3.84 | 0.10 | 0.09 |
Section XII. Documents for Inspection
Documents for Inspection | The financial statements with signatures and seals of the Legal Representative, Financial Director and Head of Finance Department of the company. |
Documents for Inspection | The original audit report with the seal of Ernst & Young Huaming Certified Public Accountants (Special General Partnership) and the signatures and seals of CPAs Yin Guowei and Yang Zhuye. |
Documents for Inspection |