Company Code: 600415 Stock Short Name: 小商品城
Zhejiang China Commodities City Group
Co., Ltd.Semi-annual Report for 2021
Important Note
I. The board of directors, the board of supervisors, directors, supervisors, and senior
management of the Company guarantee that the contents of the semi-annual report aretrue, accurate, and complete, and that there are no false records, misleading statementsor major omissions, and that they are willing to bear individual and joint legal liabilities forabove statements.
II. All directors of the Company were present at the board meeting.
III. This semi-annual report has not been audited yet.
IV. ZHAO Wenge, Head of the Company, WANG Dong, Head in charge of accounting, andZHAO Difang, Head of the accounting department (Accounting Supervisor), declare thatthey warrant the truthfulness, accuracy and completeness of the financial report in thesemi-annual report.
V. The profit distribution plan for the reporting period or the plan for public reserve fundsinto share capital that was approved by the board of directorsNone
VI. Risk statement with forward-looking representations
√Applicable □Not applicable
The forward-looking representations involved in this Report such as future plans and developmentstrategies do not constitute the Company’s substantial commitments to investors. Investors shallwatch 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 there is circumstance that more than half of the directors cannot guaranteethe authenticity, accuracy and completeness of the semi-annual report disclosed by theCompanyNO
X. Reminder of major risks
The Company has described the risks that may exist in this Report in details. Please refer to “(i)Possible Risks” in “Section 3 Discussion and Analysis of Operation” in this report.
XI. Others
□Applicable √Not applicable
Table of Contents
Section I. Definitions .........................................................................................................5
Section II. Company Profile and Financial Highlights...................................................6
Section III. Discussion and Analysis of Managers .......................................................10
Section IV. Corporate Governance .................................................................................32
Section V. Environmental and Social Responsibilities ...............................................36
Section VI. Significant Matters .........................................................................................37
Section VII. Changes in Shares and Shareholders .......................................................47
Section VIII. Preferred Shares ..........................................................................................54
Section IX. Bonds ..............................................................................................................55
Section X. Financial Report ............................................................................................63
| Documents for Inspection | Accounting statements with the signatures and stamps of the person in charge of the Company, person in charge of accounting and person in charge of the accounting department. |
| Resolutions of the 35th Meeting of the 8th Board of Directors, resolutions of the 9th Meeting of the 8th Board of Supervisors | |
| Written confirmation opinions of directors, supervisors and senior management on the Company's 2021 Semi-annual Report and Summary |
Section I. Definitions
For 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. |
| CCCH | means | Yiwu China Commodities City Holdings Limited |
| 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. |
| Huangyuan Shangbo | means | Yiwu Huangyuan Shangbo Property Co., Ltd. |
| Meipinshu | means | Yiwu Meipinshu Supply Chain Management Co., Ltd. |
| Big Data Company | means | Yiwu China Commodities City Big Data Co., Ltd. |
| Tonghui Shangbo | means | Yiwu Tonghui Shangbo Real Estate Co., Ltd. |
| Handing Shangbo | means | Yiwu Handing Shangbo Real Estate Co., Ltd. |
| Chengzhen Property | means | Yiwu Chengzhen Property Co., Ltd. |
| Digital Port | means | Yiwu Digital Port Technology Co., Ltd. |
| Redbud Capital | means | Yiwu Huishang Redbud Capital 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
| Chinese name | Zhejiang China Commodities City Group Co., Ltd. |
| Chinese short name | 小商品城 |
| English name | Zhejiang China Commodities City Group Co.,Ltd |
| English short name | YIWU CCC |
| Legal representative | ZHAO Wenge |
| Board Secretary | Securities Affairs Representative | |
| Name | XU Hang | RAO Yangjin |
| Address | Haiyang Business Building, No.105 Futian Road, Yiwu | Haiyang Business Building, No.105 Futian Road, Yiwu |
| Telephone | 0579-85182812 | 0579-85182812 |
| Fax | 0579-85197755 | 0579-85197755 |
| Hxu@cccgroup.com.cn | Hxu@cccgroup.com.cn |
| Registered address | Haiyang Business Building, No.105 Futian Road, Yiwu, Zhejiang Province |
| Office address | Haiyang Business Building, No.105 Futian Road, Yiwu, Zhejiang Province |
| Postal code at the office address | 322000 |
| Corporate website | www.cccgroup.com.cn |
| 600415@cccgroup.com.cn | |
| Search index for the change during the reporting period | www.sse.com.cn |
| Newspaper selected by the Company for information disclosure | China Securities Journal, Shanghai Securities News and Securities Times |
| Website for publishing the Semi-annual Report | www.sse.com.cn |
| Place for access to the Company’s Semil-annual Report | Securities Department of the Company |
| Search index for the change during the reporting period | www.sse.com.cn |
| Type of stock | Exchange | Stock short name | Stock code | Stock short name before change |
| A share | Shanghai Stock Exchange | 小商品城 | 600415 | None |
VII. Main accounting data and financial indicators of the Company
(i) Major accounting data
Unit: RMB
| Major accounting data | Current reporting period (Jan-Jun) | Jan-Jun 2020 | Increase/decrease during the reporting period over the same period of the previous year (%) |
| Operating income | 2,072,627,727.00 | 2,121,448,794.31 | -2.30 |
| Net profits attributable to shareholders of the Listed Company | 850,514,460.93 | 719,595,308.66 | 18.19 |
| Net profits attributable to shareholders of the Listed Company with non-recurring items excluded | 804,980,899.44 | 602,193,801.96 | 33.67 |
| Net cash flow from operating activities | 166,735,824.75 | -703,066,700.16 | Not applicable |
| As of the end of the current reporting period | As of the end of 2020 | Increase/decrease at the end of the reporting period over the end of the previous year (%) | |
| Net assets attributable to shareholders of the Listed Company | 14,066,655,036.17 | 13,558,228,377.08 | 3.75 |
| Total assets | 29,713,907,698.33 | 28,750,127,146.86 | 3.35 |
| Major financial indictors | Jan-Jun 2021 (Jan-Jun) | Jan-Jun 2020 | Increase/decrease during the reporting period over the same period of the previous year (%) |
| Basic EPS (RMB) | 0.16 | 0.13 | 23.08 |
| Diluted EPS (RMB) | 0.15 | 0.13 | 15.38 |
| Basic EPS after deducting non-recurring gains and losses (RMB/share) | 0.15 | 0.11 | 36.36 |
| Weighted average ROE (%) | 6.09 | 5.38 | Up 0.71 ppt |
| Weighted average ROE after deducting non-recurring gains and losses (%) | 5.77 | 4.50 | Up1.27 ppt |
3. The net cash flow from operating activities increased by RMB 870 million year-on-year. Themain reasons include that, the cash received from selling goods and providing labor servicesincreased by RMB 496 million year-on-year, the cash paid for purchasing goods and receiving laborservices increased by RMB 344 million year-on-year, and the deposit of fixed deposits in the sameperiod last year caused other cash paid related to operating activities decreased by RMB 576 millionyear-on-year.
VIII. Differences in accounting data between foreign and Chinese accounting standards
□Applicable √Not applicable
IX. Non-recurring items and amounts thereof
√Applicable □Not applicable
Unit: RMB
| Non-recurring items | Amount | Remark (if applicable) |
| Gain or loss from the disposal of non-current assets | -630,703.53 | |
| Government grants that are recognized in the current profit or loss, excluding the government grants that are closely related to the normal operation of the Company and are provided in a fixed amount or quantity continuously according to the national polices and certain standards | 8,679,086.10 | The main reasons include that, the value-added tax deductible input tax for taxpayers of production and living services plus 100% was used to deduct tax payable for RMB 2.8458 million, the special incentive fund for modern supply chain system innovation for 2020 was RMB 2.6827 million, the opening-up promotion reward from for 2020 was RMB 960,700, the subsidy for pilot counties in service industry for 2020 was RMB 500,000, the interest subsidy for funding of the construction of the International Expo Center was RMB 577,400, and the reward for general trading companies was RMB 336,200, and so on. |
| Cash occupation fees charged from non-financial enterprises that are recognized in the current profit or loss | 50,288,507.85 | Cash occupation fee for receiving financial aid |
| Gain or loss from changes in fair value of held-for-trading financial assets, derivative financial assets, financial liabilities held for trading and derivative financial liabilities, and investment income from the disposal of held-for-trading financial assets, derivative financial assets, financial liabilities held for trading, derivative financial liabilities and other | 1,171,429.82 | Mainly changes in the fair value of held-for-trading assets |
| debt instruments, except for effective hedging during the ordinary course of business | ||
| Net income from other non-operating activities | 955,973.37 | Mainly confiscated deposits, collected liquidated damages and other similar items for RMB 1.139 million, external donations for RMB 200,000, etc. |
| Effect of minority interest | -91,655.24 | |
| Effect of income tax | -14,839,076.88 | |
| Total | 45,533,561.49 |
Section III. Discussion and Analysis of ManagersI. Description of the industry and the Company’s main business during the reportingperiodAccording 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 businessesThe 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
Relying on the Company's market resources of 75,000 off-line shops, Yiwu market officialwebsite “chinagoods” platform (www.chinagoods.com, referred to as "chinagoods platform")provides service for 2 million small, medium and micro enterprises in the upper reaches of theindustry chain. With trade data integration as the core driver, it meets the needs of both supply anddemand parties in manufacturing, display transactions, warehousing and logistics, financial credit,market management and other links to achieve effective and accurate allocation of market resources,and build a true, open, and integrated digital trade 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.
II. Analysis of core competencies during the reporting period
√Applicable □Not applicable
(i) First-mover advantagesAt the start of China’s reform and opening-up, Yiwu took the lead in establishing thecommodities market. During the recent forty years, the market has been upgraded five times andexpanded ten times and has been among the top comprehensive national markets with the highestturnover, pointing to its remarkable first-mover advantages. As the largest commodities distributioncenter in the world, the Yiwu commodities market provides more than 2million products, which fall in26 categories 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 ofthe postal industry in 2021 that was announced by the State Post Bureau, the express businessvolume of Jinhua (Yiwu) ranked first in the country for the first half of 2021.
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 benign
mechanism under which the Yiwu wholesales market and the peripheral industry cluster developtogether has been formed.
3. Support for 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 managementability is one of the core competences of the Company as a professional market operating company.The Company 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.
(vi) Advantage of online and offline platform integration
The Company’s international trade city is the global leading commodity market. The Company’sofficial Yiwu CCC website, chinagoods platform, relying on the Company’s 75,000 off-line shops,through integration of online and offline services, serves 2 million small, medium and microenterprises in the upper reaches of the industry chain. With trade data integration as the core driver,it meets the needs of both supply and demand parties in manufacturing, display transactions,warehousing and logistics, financial credit, market management and other links.
(vii) Advantage of international logistics
The Company's Global Yida international logistics business, establishes a logistics platform toreplace the multi-layer freight forwarder system, thus shortening the level of freight forwarderdistribution, and improving logistics efficiency. In contrast, the traditional foreign trade freightforwarders are divided into multiple levels, the logistics and transportation services are notstandardized, and the service prices vary widely and are usually not the lowest price.
(viii) Advantage of data integration
Based on the logistics platform data, the Company has built a domestic warehousing andconstruction platform chinagoods, integrated logistics and freight forwarding services, andconstructed overseas warehouses. At the same time, with lower debt financing costs, the Companyhas formed the integration of logistics, information flow and capital flow for the export trades ofmerchants of YIWU CCC merchants to develop supply chain finance and provide merchants in themarket with supply chain financial services at lower loan interest rates.
III. Discussion and analysis of operation status
(i) Market operation
2021 is the first year of the "14th Five-Year Plan" period, the 100
th
anniversary of the founding ofthe Communist Party of China, and the 15
thanniversary of learning and promoting the "Yiwu’sExperience in Development". On the afternoon of June 28, the National "Outstanding Party Workers,Outstanding Party Members, and Advanced Grassroots Party Organizations” commendationmeeting was held in the Great Hall of the People in Beijing. The Central Committee of theCommunist Party of China awarded the Group’s party committee the title of "National AdvancedGrassroots Party Organization" to encourage all employees of the Company to strive for the firstplace, make contributions, and give full play to the role of pioneer and battle fortress.During the reporting period, the Company focused on digital empowerment, domestic andinternational trade chain expansion and institutional innovation, to improve the quality of goods, toserve businessmen, to empower enterprises, to improve the efficiency of management, andconstantly promote the prosperity of the market. During January - June, the market turnover reachedRMB 96.44 billion, a year-on-year increase of 48.5%. The occupancy rate of business spacesremained above 97%, with steady and positive market operation, the Company has furtherconsolidated its leading advantage in the commodity market has been further consolidated.
(1) Intelligent upgrading of epidemic prevention and control: Based on the precision intelligentcontrol system of "standardization, access system, prohibitions, inspection system and information",promote the construction of intelligent bayonet for epidemic prevention and control, so that people ofthe market can enter and leave "without feeling".
(2) Continues to accelerate market transformation, and the four major actions of design,standards, live broadcasting and "entering the market" for college students are continuouslyimplemented to build the core market competitiveness with innovation, design, brand, quality andstandards as the main contents. During the reporting period, the Company successfully docked with35 colleges and universities, organized 400 design talents to introduce more than 4,000 new products,and completed the “CCC Cup” design competition; conducted the standard publicity thorough the
whole market, and docked with Yiwu Standard Research Institute to conduct 43 merchant standardtraining sessions that trained more than 5,500 merchants; organized 418 merchants to carry outcross-border live broadcasts, completed cross-border trade matching meetings such as the HainanConsumer Fair and the West China Fair; completed the docking with 50 domestic universities such asZhejiang University and Zhejiang Sci-Tech University, and inspected 660 sinking channel layoutpoints. During the reporting period, the number of merchants launching new products every month inthe market accounted for 51.6%, 24 major industries have achieved operations under expressstandard, more than 40,000 merchants have carried out live broadcast training, and the proportion ofmerchants with a college degree or above reached 26.4 % of total.
(3) Expanded service network for domestic trade The Company has established domestic tradeexpansion investment promotion liaison offices in 8 provinces across the country, set up 10investment promotion teams, completed 203 visits to the comprehensive pilot areas and trademarkets, accurately docked with 484 enterprises and business associations, and signed cooperationcontracts with 10 secondary markets in Dongguan, Kashgar and some other places and increasedthe number of members of the domestic professional market alliances to 25.
(4) Exploration and innovation of trade exhibition mode The Company has held seven dockingactivities such as 10,000 mile market tour, and 10,000 mile market tour for Yiwu goods in Chongqing,Hainan and some other places. During the Fifth China Yiwu Hardware & Electrical Appliance Expo,for the first time, the Company has completely achieved the digitization of the procurement,verification and settlement process and introduced the team living broadcasting. There were nearly260,000 visits to the online live broadcasting. The Company also held a special matchmakingmeeting for online and offline overseas procurement simultaneously, so as to achieve the intendedtransaction amount of more than RMB 10 million. The Company has successfully held the Benin(West Africa) International Online Exhibition and completed more than 60 precise negotiations.
(5) The Digital Comprehensive Bonded Zone has successfully passed the pre-acceptance andthe investment attraction for the 85% of the completed area in the first phase has been completed;the Company has started the construction of a new important market and completed the mainstructure of the first phase and attracted 700 merchants; for the market in the sixth zone of theInternational Trade City, the first phase is expected to be started by the end of this year.
(ii) Promote trade digitalization
Build a digital market: With information means, collect market operation data, to build a human,product, field digital portrait system. According to the portrait reconstruction trade scene, designapplication products, provide procurement full process, full cycle of operation, operation and
maintenance of a full range of digital services, comprehensively improve the ability and level ofmarket enabling trade.
During the reporting period, the Company optimized the digital functions and applications of thechinagoods platform for display transactions, logistics performance, trade finance, overseasinterconnection and some other fields in depth. The big data company (the operator of thechinagoods platform) has realized a profit of RMB 7.7391 million in the first half of 2021. Theplatform has achieved profitability after it has officially launched for 8 months. By the end of thereporting period, the number of front-end shops on the platform was 59,000, the cumulative numberof SKUs on the shelves exceeded 3 million, the number of registered purchasers reached over969,500, the average daily number of the IP visits reached nearly 65,000, and the platform GMV hadreached RMB 6.8 billion; digital trading cockpit 2.0 had completed the first phase of developmentand online testing; the digital logistics module has realized one-stop digital logistics service functionssuch as short-distance transfer, express delivery, and international logistics; the payment settlementmodule, in cooperation with Lianlian Payment, had achieved multiple payment channels such asonline banking payment, cloud quick payment and quick payment; more than 40,000 merchants hadopened payment functions, and actively obtained third-party payment licenses; 31,395 Guokuanbaousers (including 80 foreign trade companies) had obtained credit lines of more than RMB 55.1 billionin total; digital warehousing module and large warehousing management system have been put intouse Global Yida Industrial Park, Houzhai Small and Micro Storage Park, and 3 overseaswarehouses in Canada, Spain, and Malaysia; the Company has built a full-link supply chainintermediary platform to accurately dock channel resources, provide one-drop shipping service, andsolve the difficulty of living broadcasting organizations in selecting products. Currently, there are 60suppliers settled in the platform, with more than 3,000 SKUs on the shelves.The Company is actively deploying four licenses of payment, factoring, credit investigation, andsmall-sum loans to build a complete import and export trade service performance system andpromote the digital upgrade of market procurement trade. On the one hand, it has effectivelyimproved the financial service capabilities for business users, and on the other hand, it has formed aclosed-loop ecosystem of capital flow and information flow on the chinagoods platform. Withpayment services as the flow entrance, supported by the precipitation of real trade and logistics dataacross the entire link, it is to build corporate credit reporting service capabilities, and then developfactoring business to enhance platform profitability, solve the pain points of the industry and keepboosting the prosperity of the market.The Company has made full efforts to promote the construction of data center, accelerate thedevelopment of digital tools such as Guanjiabao, and accelerate the manifestation of trade data. TheCompany has built a database, carried out the collection of basic market data, Yixinbu data,chinagoods platform data, exhibition data, hotel data, and company system docking, and completed
the establishment of the labeling system of merchants in the six major sectors including merchantbasic information, operation, evaluation, credit, service, and property.The overall business framework of chinagoods:
Integration of online and offline, and linkage of domestic and foreign trades to create a digitalfree trade hub.
(iii) Industry pattern and trend and future development of the Company
The Company will focus on the market procurement trade track, build a contract performancesystem serving the global mass trade and fragmented trade, and form an infrastructure network withYiwu as the center and connecting the whole world.
Contract fulfillment flowchart of chinagoods and Global Yida platforms
The market procurement trade method (Customs Code 1039) refers to a trade method aimingmarket with multiple variety, small batch, and multiple transactions, in which qualified operatorspurchase in the recognized market agglomeration area, the value of a single-ticket declaration doesnot exceed USD 150,000, and the customs clearance procedures for export commodities arehandled at the designated port. For goods exported through market procurement trade, thepreferential policy of VAT exemption and refund shall be implemented; Customs declaration bycategory to facilitate customs clearance measures; The supply merchants without import andexport right are allowed to collect and settle foreign exchange directly.
The market procurement trade mode has the characteristics of flexible and diverse participants,low transaction cost, common trade consolidation cabinets, and integration of domestic trade andforeign trade. In 2020, in the market procurement trade, the size was RMB 706 billion nationwide,and RMB 305.6 billion in Yiwu area. It is expected that the size of the national market procurementtrade will exceed RMB 1 trillion in 2021.Currently, the market procurement trade faces some problems such as continuous risingstorage costs, unsatisfactory warehousing needs, high financial pressure on operating entities, weakbargaining power with shipping companies and other actual carriers, unguaranteed positions, highspot advance costs, few financing channels, and difficulty in fund recovery and exchange settlement.In this context, the Company has established the chinagoods platform and the Global Yida logisticsand trade platform to face the global mass trade and fragmented trade. Especially using the 1039market procurement trade method, it matched the demands of supply and demand parties in theproduction, manufacturing, display and trade, warehousing and logistics, financing loans, marketmanagement and some other links to achieve the effective and precise allocation of marketresources, provide digital cross-border logistics solutions, payment guarantee solutions, andgradually realize online consolidation, online order and payment, and online Financing, onlinebooking, and full link visualization, form a logistics price comparison mechanism in order to providetrading entities with more convenient, efficient, and low-cost integrated services and make tradeeasier.
Major changes in the Company's business conditions during the reporting period,and events occurring during the reporting period that have a major impact on theCompany's business conditions and are expected to have a major impact in thefuture
□Applicable √Not applicable
IV. Operating status during the reporting period(i) Analysis of main business1 Analysis of the changes to the items in the financial statement
Unit: RMB10,000
| Item | Current reporting period of Jan-Jun 2021 | Reporting period of Jan-Jun 2020 | YoY change (%) |
| Operating income | 207,262.77 | 212,144.88 | -2.30 |
| Cost of sales | 92,541.06 | 86,922.76 | 6.46 |
| Selling expenses | 7,404.29 | 8,788.71 | -15.75 |
| General and administrative expenses | 16,669.89 | 13,045.09 | 27.79 |
| Financial expenses | 4,735.10 | 9,127.19 | -48.12 |
| R&D expenses | 456.91 | 1,708.12 | -73.25 |
| Net cash flow from operating activities | 16,673.58 | -70,306.67 | Not applicable |
| Net cash flow from investing activities | -3,616.21 | 61,702.57 | -105.86 |
| Net cash flow from financing activities | -20,435.12 | 13,001.06 | -257.18 |
| Item | January-June 2021 | January-June 2020 | YoY change | Percentage change ±% |
| Market operation | 1,119,528,495.20 | 1,009,159,906.85 | 110,368,588.35 | 10.94 |
| Sales of goods | -19,667,101.32 | -5,694,034.94 | -13,973,066.38 | Not applicable |
| Real estate sales | - | -5,656,548.46 | 5,656,548.46 | Not applicable |
| Hotel service | -15,043,356.54 | -21,014,757.95 | 5,971,401.41 | Not applicable |
| Exhibition and advertising | -17,830,866.21 | -23,032,242.66 | 5,201,376.45 | Not applicable |
| Other businesses | -7,166,013.33 | 39,266,533.26 | -46,432,546.59 | -118.25 |
| Profits before tax | 1,059,821,157.80 | 993,028,856.10 | 66,792,301.70 | 6.73 |
| Project | Amount at the end of the current period | % of total assets at the end of the current period | Amount at the end of the same period of 2020 | Percentage of the closing balance of the previous year to the total assets (%) | Percentage of difference between the closing balance of the current period and the closing balance of the previous year (%) | Reasons for change |
| Monetary capital | 301,963.54 | 10.16 | 561,264.29 | 19.52 | -46.20 | |
| Held-for-trading financial assets | 5,756.80 | 0.19 | 5,171.27 | 0.18 | 11.32 | |
| Receivables | 13,960.36 | 0.47 | 15,357.35 | 0.53 | -9.10 | |
| Advance from customers | 59,638.27 | 2.01 | 10,518.75 | 0.37 | 466.97 | Mainly due to the growth of the product sales and the increase in advance payment |
| Other receivables | 307,248.68 | 10.34 | 270,847.81 | 9.42 | 13.44 | |
| Inventories | 139,719.26 | 4.70 | 132,946.77 | 4.62 | 5.09 | |
| Other current assets | 23,709.17 | 0.80 | 17,972.47 | 0.63 | 31.92 | |
| Long-term receivables | 18,609.47 | 0.63 | 12,675.66 | 0.44 | 46.81 | Mainly due to the increase in the financial aid receivable from Dubai Project Company |
| Long-term equity investment | 528,451.99 | 17.78 | 383,289.75 | 13.33 | 37.87 | Mainly due to the increase in capital of CCCP |
| Other equity | 58,825.42 | 1.98 | 66,225.63 | 2.30 | -11.17 |
| instruments investment | ||||||
| Other non-current financial assets | 156,552.35 | 5.27 | 152,392.53 | 5.30 | 2.73 | |
| Investment real estate | 191,412.53 | 6.44 | 196,042.63 | 6.82 | -2.36 | |
| Property, plant and equipment | 504,324.53 | 16.97 | 523,429.38 | 18.21 | -3.65 | |
| Construction in progress | 201,159.72 | 6.77 | 98,289.19 | 3.42 | 104.66 | Mainly due to the payment for construction projects such as comprehensive protection zones |
| Right-of-use assets | 17,980.43 | 0.61 | - | - | Not applicable | Presented for the adjustment under the new standard for lease |
| Intangible assets | 398,931.80 | 13.43 | 390,078.10 | 13.57 | 2.27 | |
| Development expenditures | 3,645.63 | 0.12 | 2,222.31 | 0.08 | 64.05 | Mainly due to the payment for R&D fee |
| Long-term deferred expenses | 8,847.97 | 0.30 | 11,072.87 | 0.39 | -20.09 | |
| Deferred tax assets | 8,591.30 | 0.29 | 9,966.43 | 0.35 | -13.80 | |
| Other non-current assets | 22,061.54 | 0.74 | 15,249.52 | 0.53 | 44.67 | Mainly due to the payment for equity transfer in the current period |
| Short-term loans | 123,489.05 | 4.16 | 125,717.94 | 4.37 | -1.77 | |
| Accounts payable | 80,740.11 | 2.72 | 63,646.38 | 2.21 | 26.86 | |
| Advances from customers | 10,818.54 | 0.36 | 11,275.29 | 0.39 | -4.05 | |
| Contract liabilities | 252,559.87 | 8.50 | 244,221.18 | 8.49 | 3.41 | |
| Employee compensations payable | 5,211.97 | 0.18 | 16,149.90 | 0.56 | -67.73 | Mainly due to the payment for accrued year-end benefits in 2020 |
| Taxes payable | 23,206.16 | 0.78 | 49,540.05 | 1.72 | -53.16 | Mainly due to the payment for taxes and fees accrued |
| Other payables | 177,577.27 | 5.98 | 164,634.56 | 5.73 | 7.86 | |
| Non-current liabilities due within one year | 203,184.92 | 6.84 | 131,502.66 | 4.57 | 54.51 | Presented corporate debts due in one year |
| Other current liabilities | 306,178.55 | 10.30 | 302,360.80 | 10.52 | 1.26 | |
| Long- term loans | 60,400.00 | 2.03 | 28,200.00 | 0.98 | 114.18 | Mainly added long-term borrowings due during the current period |
| Bonds payable | 278,607.64 | 9.38 | 355,216.17 | 12.36 | -21.57 | Removed corporate debts due in one year |
| Lease liabilities | 17,587.80 | 0.59 | - | - | Not applicable | Presented for the adjustment under the new standard for lease |
| Estimated | 11,062.03 | 0.37 | 11,062.03 | 0.38 | - |
| liabilities | ||||||
| Deferred incomes | 2,583.45 | 0.09 | 2,654.53 | 0.09 | -2.68 | |
| Deferred income tax liabilities | 9,583.33 | 0.32 | 11,360.29 | 0.40 | -15.64 |
| Item | End of June 2021 | End of year 2020 |
| Monetary capital | 60.68 | 60.58 |
| 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 | 720,429,971.68 | 720,429,971.58 |
1. During the reporting period, the new long-term equity investment was RMB 1,299,192,100,including RMB 1.225 billion for Yiwu China Commodities City Property Development Co., Ltd. , RMB30 million for Yiwu Huishang Redbud Phase II Investment Partnership (LLP), RMB 24.2671 millionfor JEBEL ALI FREE ZONE TRADER MARKET DEVELOPMENT AND OPERATION FZCO, RMB
17.85 million for Yiwu Digital Port Technology Co., Ltd., RMB 1.075 million for Zhejiang YixinouSupply Chain Management Co., Ltd., and RMB 1 million for Quanzhou Huayun TianchengE-commerce Co., Ltd.
2. The net investment income accrued under the long-term equity investment equity methodwas RMB 263,789,000, the dividend distributed by Binjiang Shangbo distributed was RMB 98 million,and others were RMB -13.3585 million.
2. During the reporting period, the investment in other equity instruments decreased byRMB 74.0021 million year-on-year, which was the gains and losses for changes in fair value ofShenwan Hongyuan Group Co., Ltd. during the reporting period for RMB 74.0021 million.
3. During the reporting period, the trading financial assets increased by RMB 5.8553 millionyear-on-year, including, an increase of RMB 8.50 million for purchase of bank financingproducts, the gains and losses for changes in fair value of Orient International Ventures Co., Ltd.during the reporting period were RMB -2.6401 million, and an decrease of RMB 4,600 due toselling of subscribed new stocks.
4. During the reporting period, other non-current financial assets increased by RMB
41.5982 million year-on-year, including: an increase of RMB 40 million for Suzhou XiangzhongVenture Capital Partnership (LLP), an increase of RMB 2.1704 million for investment recoveryby Suzhou Yiyun Venture Capital Center (LLP), and increase of RMB 3.7686 million for thegains and losses for changes in fair value.
The main investment is as follows:
Unit: RMB10,000
| Target | Main business | Cost of investment | Book value at the end of June 2021 | 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 | 37,861.99 | 49.00 |
| Yiwu Rongshang Property Co., Ltd. | Real estate development and operation, landscape engineering and decoration engineering | 5,000.00 | 2,091.13 | 49.00 |
| Yiwu Chuangcheng Property Co., Ltd. | Real estate development and sale; lease of proprietary houses; real estate brokerage service; interior decoration service; and landscaping service | 2,000.00 | 874.51 | 24.00 |
| Hangzhou Binjiang | Real estate development and operation | 2,450.00 | 7,692.51 | 49.00 |
| Shangbo Property Development Co., Ltd. | ||||
| 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 | 6,961.25 | 23.00 |
| Zhejiang Chouzhou Financial Lease Co., Ltd. | Financial lease service; transfer of financial lease assets; fixed-income securities investment; acceptance of lessees’ lease margin; absorption of time deposit with a term no shorter than three months from non-bank shareholders; inter-financial institutional lending; borrowing from financial institutions; overseas borrowing; sale and disposal of leased items; and economic consulting | 26,000.00 | 40,077.88 | 26.00 |
| Yiwu China Commodities City Fuxing Investment Center (limited partnership) | Equity investment, investment management and investment consulting | 10,291.86 | 10,291.86 | 49.90 |
| Yiwu Huishang Redbud 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 | 8,639.35 | 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) | 8,000.00 | 7,830.57 | 9.43 |
| Yiwu Meipinshu Supply Chain Management Co., Ltd. | Supply chain management service, software development, and business management consulting | 1,820.14 | 1,705.24 | 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 | 573.95 | 49.04 |
| 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 | 69,305.39 | 49.98 |
| Shenwan Hongyuan Group Co., Ltd. | Securities brokerage, securities investment consulting and securities underwriting & sponsorship | 55,362.54 | 58,825.42 | 0.501 |
| Beijing Yiyun Clean Technology Venture Capital Co., Ltd. | Venture capital, agency of other VC institutions or individuals’ VC business | 1,891.82 | 360.00 | 15.00 |
| Shenzhen Tiantu Investment Management Co., Ltd. | PE investment management in the consumer goods industry | 11,438.62 | 5,284.64 | 1.536 |
| Beijing Redbud Huarong Equity | Asset management, investment management and investment consulting | 10,000.00 | 17,557.86 | 12.36 |
| Investment Partnership | ||||
| 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 Redbud Investment Partnership (limited partnership) | Industry investment, venture capital, investment management, business management, social and economic consulting. (Operating activities subject to approval in accordance with laws shall only be conducted after approval from related authority) [it shall not be engaged in the absorption of deposits, financial guarantee, agency wealth management, fundraising (financing) from the public and other financial businesses] | 8,873.08 | 12,016.76 | 17.51 |
| 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 |
| 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 | 4,906.60 | 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 |
| 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) | 2,550.00 | 2,435.96 | 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 | 271,854.77 | 276,508.58 | 49.00 |
| Pujiang Lvgu Property Co., Ltd. | Real estate development, sales, leasing and property management | 37,365.79 | 49,744.46 | 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 | 5,144.20 | 4,615.02 | 30.00 |
| Suzhou Xiangzhong Venture Capital Partnership (Limited Partnership) | Venture capital (limited to investment in unlisted enterprises); Equity investment | 4,000.00 | 4,000.00 | 8.00 |
| Target | Main business | Actual investment amount during the reporting period (RMB10,000) | Percentage in total equity in the invested project as of the end of the reporting period (%) | Remarks |
| Suzhou Xiangzhong Venture Capital Partnership (Limited Partnership) | Venture capital (limited to investment in unlisted enterprises); Equity investment | 4,000.00 | 8.00 | The subscribed capital contribution was RMB 200 million, and as of the end of the reporting |
period, RMB40 millionhas beenpaid.
(2) Major non-equity investments
√Applicable □Not applicable
Unit:
RMB10,000
| Project | Project amount | Progress | Investment amount in current period | Accumulative invested amount |
| West Yiwu International Means of Production Market Auxiliary Project | 133,916.00 | The office building has been delivered, 95% of the hotel decoration has been completed, and the underground space has been completed | 6,889.14 | 102,997.62 |
| Haicheng Yiwu China Commodities City Commerce Phase I Project—Hotel Project | 180,000.00 | The main work is under construction | - | 3,229.05 |
| Phase I Project of Yiwu Integrated Free Trade Zone | 624,250.00 | The upper span bridge and the fence have passed the final acceptance; the first bid section has been completed and 95% of the second bid section has been completed for warehousing work. | 69,861.91 | 120,441.14 |
| East Parking Building Project of Zone 2 of Yiwu International Trade City | 60,706.00 | Completion of civil air defense foundation acceptance, the first floor pouring completed | 13,861.58 | 22,534.87 |
| Yiwu Yindu Hotel renovation project | 25,000.00 | The renovation of the facade has been completed, and 50% of the interior decoration has been completed | 6,922.48 | 12,477.85 |
| Global Digital Free Trade Center Project | 598,124.00 | Site leveling completed, project design phase | 1,577.29 | 1,577.29 |
| Name | Initial investment cost | Opening book value | Closing book value | Gains or losses during the reporting period | Accounting item | Source of funds |
| Hunan Hualing Cable Co., LTD | 0.20 | - | 0.20 | - | Held-for-trading financial assets | Self-owned funds |
| Wealth management products of Industrial Bank | 850.00 | - | 850.00 | - | Held-for-trading financial assets | Self-owned funds |
| Oriental International Entrepreneurship Co., Ltd. | 5,000.00 | 5,170.61 | 4,906.60 | -264.01 | Held-for-trading financial assets | Self-owned funds |
| Shenyin & Wanguo Securities Co., Ltd. | 55,362.54 | 66,225.63 | 58,825.42 | - | Other equity instruments investment | Self-owned funds |
| Jiaxing Zhehua Redbud Investment Partnership (limited partnership) | 10,000.00 | 12,016.76 | 12,016.76 | - | Other non-current financial assets | Self-owned funds |
| Beijing Redbud Huarong Equity Investment Co., Ltd. | 10,000.00 | 17,557.86 | 17,557.86 | - | Other non-current financial assets | Self-owned funds |
| Nantong Redbud Huatong Equity Investment Partnership (limited partnership) | 20,000.00 | 25,484.32 | 25,484.32 | - | Other non-current financial assets | Self-owned funds |
| Beijing Wudaokou Education Technology Co., Ltd. | 500.00 | 61.64 | 61.64 | - | Other non-current financial assets | Self-owned funds |
| Zhejiang Yiwu Tap Water Co., Ltd. | 100.00 | 2,320.60 | 2,320.60 | - | Other non-current financial assets | Self-owned funds |
| Yiwu Water Resources Development Co., Ltd. | 200.00 | 1,510.00 | 1,510.00 | - | Other non-current financial assets | Self-owned funds |
| Suzhou Yiyun Venture Capital Center (limited partnership) | 4,000.00 | 12,351.95 | 12,039.35 | -95.54 | Other non-current financial assets | Self-owned funds |
| Beijing Yiyun Clean Technology Venture Capital Co., Ltd. | 6,091.82 | 360.00 | 360.00 | - | Other non-current financial assets | Self-owned funds |
| Mashang Consumer Finance Co., Ltd. | 3,000.00 | 5,167.50 | 5,167.50 | - | Other non-current financial assets | Self-owned funds |
| Shenzhen Tiantu Investment Management Co., Ltd. | 11,802.00 | 4,812.23 | 5,284.64 | 472.41 | 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 |
| Yiwu Shanyue Equity Investment Partnership (limited partnership) | 2,000.00 | 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 | 4,128.54 | 4,128.54 | - | Other non-current financial | Self-owned funds |
| assets | ||||||
| Yiwu Shangfu Chuangzhi Investment Center (limited partnership) | 61,751.14 | 61,751.14 | 61,751.14 | - | Other non-current financial assets | Self-owned funds |
| Suzhou Xiangzhong Venture Capital Partnership (Limited Partnership) | 4,000.00 | 0.00 | 4,000.00 | - | Other non-current financial assets | Self-owned funds |
| Company name | Business | Registered capital | Total assets | Net assets | Net profit |
| 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 | 229,923.99 | -78,496.50 | -7,128.38 |
| Yiwu Shangbo Property Co., Ltd. | Real estate development and sale | 30,000.00 | 37,835.38 | 33,897.66 | -965.24 |
| Yiwu Commodities City Gonglian Property Co., Ltd. | Real estate development and sale | 20,000.00 | 15,919.94 | 15,784.42 | -53.43 |
| Yiwu China Commodities City Information Technology Co., Ltd. | R&D of computer and multimedia software | 20,000.00 | 23,149.24 | 19,897.46 | -67.25 |
| Zhejiang Yiwugou E-commerce Co., Ltd. | Computer software, multimedia technologies, computer network and application, and wholesale & retail | 10,000.00 | 12,003.04 | 9,350.33 | 553.52 |
| Yiwu China Commodities City Payment Network Technology Co., Ltd. | R&D of computer and multimedia software | 15,000.00 | 12,112.51 | 12,106.53 | -174.08 |
| Yiwu China Commodities City Logistics and Warehousing Co., Ltd. | Ordinary cargo transport and goods warehousing | 10,000.00 | 2,646.68 | 2,268.63 | -203.35 |
| Yiwu China Commodities City Supply Chain Management Co., Ltd. | Supply chain management service | 10,000.00 | 26,475.80 | -3,491.41 | -1,005.11 |
| Yiwu China Commodities City Import and Export Co., Ltd. | Domestic trade and international trade | 10,000.00 | 60,105.36 | 3,632.38 | -1,334.62 |
| Yiwu China Commodities City Financial Holdings Co., Ltd. | Enterprise free capital investment, asset management, investment consulting services, investment management services | 400,000.00 | 227,736.24 | 214,087.52 | 451.66 |
| 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 | 13,431.97 | 8,830.21 | -136.48 |
| Yiwu China Commodities City Overseas Investment and Development Co., Ltd. | Overseas industry investment, and construction and operation of overseas shopping malls | 10,000.00 | 18,303.76 | 8,827.48 | -218.66 |
| 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 | 151,151.73 | 80,556.75 | 2,561.80 |
| Yiwu China Commodities City Property Development Co., Ltd. | Real estate development and sale | 500,000.00 | 1,233,151.57 | 573,911.24 | 15,476.32 |
| Pujiang Lvgu Property Co., Ltd. | Real estate development and sale | 70,000.00 | 111,538.42 | 99,501.23 | 23,941.44 |
| Zhejiang Huajie Investment and Development Co., Ltd. | Industry investment, investment management, investment consulting, business information consulting, and asset management services | 50,000.00 | 8,255.84 | 8,232.32 | -116.22 |
| 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 | 26,700.63 | 9,964.73 | 773.91 |
| 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 | 800.24 | 719.90 | -234.65 |
| BETTER SILK ROAD RWANDA Ltd | Container handling; land transport-related services; and land transport supporting activities-related business | RF27,000 | 105.16 | -90.05 | -57.61 |
| Hangzhou Binjiang Shangbo Property Development Co., Ltd. | Real estate development and sale | 5,000.00 | 20,006.38 | 17,355.53 | 4,234.21 |
| Yiwu Rongshang Property Co., Ltd. | Real estate development and sale | 10,204.08 | 704,240.31 | 4,267.62 | -287.30 |
| Yiwu Huishang Micro-finance Co., Ltd. | Micro loans | 54,000.00 | 30,852.35 | 30,406.45 | -775.69 |
| Zhejiang Chouzhou Financial Lease Co., Ltd. | Financial lease service, and transfer of financial lease assets | 100,000.00 | 1,273,630.22 | 154,096.56 | 11,330.05 |
| Yiwu Huishang Redbud Equity Investment Co., Ltd. | Equity investment and related consulting services | 49,000.00 | 92,492.18 | 82,937.72 | 2,708.56 |
| Yiwu Huishang Redbud Phase II Investment Partnership (limited partnership) | Investment management and asset management | 106,100.00 | 84,834.24 | 82,832.39 | 25.91 |
| Yiwu Hongyi Equity Investment Fund Partnership (limited partnership) | Investment management, equity investment, asset management and investment consulting | 200,100.00 | 138,714.32 | 138,680.08 | 682.67 |
| 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 | 47,881.05 | 8,747.04 | -53.00 |
| 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 | 1,411,326.20 | -5,598.92 | -3,099.62 |
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 spread of the epidemicand reverse globalization are parallel, and the downward pressure on the world economy hasincreased. New technologies have accelerated the birth of new opportunities, and new trade modelsand new business formats have emerged. In the post-epidemic era, uncertainty will become thegreatest certainty for the development of market trade, and the global epidemic will continue for along time, showing a repeated see-saw state. Epidemic prevention and control, international politics,and global economy are intertwined. Uncertainty, instability, and restructuring of international tradewill become the new normal. The Company may face the risk of increased external uncertainty.
(ii) Other disclosure matters
□Applicable √Not applicable
Section IV. Corporate Governance
I. Shareholders’ meetings
| Session of meeting | Date | Designated website on which the resolution is published | Date of disclosure of the resolution | Resolution of the meeting |
| The first provisional shareholders meeting in 2021 | April 9, 2021 | www.sse.com.cn | April 10, 2021 | Resolution of the first provisional general meeting of shareholders in 2021 |
| The second provisional shareholders meeting in 2021 | April 19, 2021 | www.sse.com.cn | April 20, 2021 | Resolutions of the second provisional general meeting of shareholders in 2021 |
| 2020 Annual General Meeting of Shareholders | May 25, 2021 | www.sse.com.cn | May 26, 2021 | Resolutions of the 2020 Annual General Meeting of Shareholders |
| Name | Title | Change |
| LUO Jinming | Independent director | Election |
| Whether to distribute profits or capitalize the | NO |
| capital reserve | |
| Number of bonus shares for every 10 shares | 0 |
| Dividend payout for every 10 shares (tax inclusive) | 0 |
| Number of shares converted from the capitalization of capital reserve for every 10 shares | 0 |
| Statement on the proposal on profits distribution or capitalization of capital reserve | |
| None | |
| 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 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). | For details, see the Company's announcement on the website of the Shanghai Stock Exchange (www.sse.com.cn) on November 20, 2020. |
| From November 20, 2020 to November 29, 2020, the list of incentive objects and positions of the 2020 restricted stock incentive plan were internally publicized. Within the time limit of the publicity, the board of supervisors of the Company did not receive any | For details, please refer to the Company's announcement on the website of the Shanghai |
| 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. | Stock Exchange (www.sse.com.cn) on December 1, 2020. |
| On December 10, 2020, the Company's 2020 Fifth Provisional General Meeting of Shareholders deliberated and approved the “Proposal on the ‘Company's 2020 Restricted Stock Incentive Plan (Draft)’ and Summary”, the “Proposal on the “Measures of Assessment and Management of Implementation of ‘Company’s 2020 Restricted Stock Incentive Plan’”, and the “Proposal on Requesting the General Meeting of Shareholders to Authorize the Board of Directors to Deal with Equity Incentive Related Matters”, and disclosed the “Self-examination Report on the Trades of Company’s Stocks by Insiders of 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 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. |
Employee stock ownership plans
□Applicable √Not applicable
Other incentives
□Applicable √Not applicable
Section V. Environmental and Social ResponsibilitiesI. Environmental issues(i) Description of the environmental protection status of the Company and its mainsubsidiaries that are key pollutant discharging units announced by the environmentalprotection authorities
□Applicable √Not applicable
(ii) Description of the environmental protection status of the companies other than the keypollutant discharging units
□Applicable √Not applicable
(iii) Further progress or change of the environmental issues disclosed during thereporting period
□Applicable √Not applicable
(iv) Relevant information that is conducive to protecting ecology, preventing pollution, and
fulfilling environmental responsibilities
□Applicable √Not applicable
(v) Measures taken to reduce their carbon emissions during the reporting period and theeffect
□Applicable √Not applicable
II. Status of consolidation and expansion of the results of poverty alleviation, ruralrevitalization and other specific work
□Applicable √Not applicable
Section VI. Significant MattersI. Fulfillment of commitments(i) Commitments made by the actual controller, shareholders, affiliates and acquirer of
the Company, the Company itself and other related parties during the reportingperiod or as of the reporting period
□Applicable √Not applicable
II. Non-operating capital occupation by controlling shareholders and other related partiesduring the reporting period
□Applicable √Not applicable
III. Illegal guarantees
□Applicable √Not applicable
IV. Information about audit on the semi-annual report
□Applicable √Not applicable
V. Changes and handling of matters involved in modified audit opinion in the previousyear’s annual report
□Applicable √Not applicable
VI. Matters relating to bankruptcy and reorganization
□Applicable √Not applicable
VII. Material litigations and arbitrations
√ The Company had no material litigations and arbitrations □The Company had materiallitigations and arbitrations
(i) Litigations and arbitrations have been disclosed in the temporary announcements andhave 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) | Does the litigation (arbitration) cause estimated liabilities and the amount thereof | Status of litigation (arbitration) | Results of litigation (arbitration) and effect thereof | Enforcement of judgment (award) |
| Hongsheng | Yiwu Shangb | None | Litigation | Dispute over a | 1,146.39 | NO | Mediation | The defenda | The sentenc |
| Construction Group Co., Ltd. | o Property Co., Ltd. | construction contract [(2021) Z 0782 M C No. 7272] | completed | nt paid the plaintiff's construction fund for RMB 5.0206 million | e has been carried out | ||||
| Zhejiang Yiwugou E-commerce Co., Ltd. | The Company, Big Data Company | None | Litigation | Dispute over unfair competitions [(2020) Z 01 M C No. 2202] | 1,000 | NO | Trial has started, but no judgment has been made | / | / |
X. 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 nofurther progresses or changes
□Applicable √Not applicable
2、 Matters that have been disclosed in the temporary announcements but had furtherprogresses or changes
□Applicable √Not applicable
3、 Matters that have not been disclosed in the temporary announcements
√Applicable □Not applicable
Unit: RMB10,000
| Related counterparty | Relationship | Type of related-party transaction | Contents of related-party transaction | Pricing principle | Price of related-party transaction | Amount of related-party transaction | 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 |
| Yourworld International Conference Center, subordinated to Yiwu Market Development Group | Others | Other inflow | Commissioning management fee, license fee , etc. . | Negotiated price | 89.58 | 95.98 | Account transfer | |||
| Yiwu Security Service Co., Ltd. | Others | Acceptance of labor service | Escort service for RMB and foreign currency cash withdrawal at the Company's business outlets | Market price | 3.75 | 4.02 | Account transfer |
| Total | / | / | 93.33 | 100.00 | / | / | / | |
| Return of large-value goods sales | ||||||||
| Illustration on related-party transactions | ||||||||
(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 had furtherprogresses or changes
√Applicable □Not applicable
In order to meet the development needs of Handing Shangbo, a wholly-owned subsidiary of theCompany's subsidiary CCCP for the development of real estate project on the east side of theintersection of Fotang Avenue and Shuangfeng Road, Fotang Town, Yiwu, the Company providedHanding Shangbo with a financial aid of no more than RMB 490 million. CCCH, the Company’scontrolling shareholder, will provide Handing Shangbo with the financial aid in the same proportion ofits indirect shareholding in Handing Shangbo. For details, please refer to the Announcement onProviding External Financial Assistance and Related Party Transactions (Announcement Number:
L2020-098).
By the end of the reporting period, the Company has provided financial aid of RMB 490 million,and CCCH has provided financial aid of RMB 510 million.
3、 Matters that have not been disclosed in the temporary announcements
□Applicable √Not applicable
(v) Financial business between the Company and the associated financial companies,the Company's holding financial company and the related parties
□Applicable □Not applicable
1. Deposit business
□Applicable √Not applicable
2. Loan business
□Applicable √Not applicable
3. Credit granting and other financial businesses
□Applicable √Not applicable
4. Other descriptions
□Applicable √Not applicable
(vi) Other significant related transactions
□Applicable √Not applicable
(vii) Others
□Applicable √Not applicable
XI. Material contracts and performance thereof1 Trusteeship, contracting and leases
√Applicable □Not applicable
(1) Hosting
□Applicable √Not applicable
(2) Contracting
□Applicable √Not applicable
(3) Renting
□Applicable √Not applicable
2 Material guarantees fulfilled or not completely fulfilled in the reporting period
√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 Maturity date | Type of guarantee | Principal debts | Collateral (if any) | Whether the guarantee has been fulfilled | Is the guarantee overdue | Overdue amount of the guarantee | Counter guarantees | Is it a related-party guarantee | Related Relationship |
| Corporate | The Company itself | Huangyuan Shangbo | 28,424.47 | Aug 13, 2019 | Aug 23, 2022 | Aug 22, 2024 | Joint and several liability guarantee | NO | NO | Yes | Joint venture | ||||
| Corporate | The Company itself | Yiwu Shanglv | 18,483.73 | December 16, 2015 | Jul 1, 2015 | December 15, 2026 | Joint and several liability guarantee | NO | NO | State-owned operating company provided a counter-guarantee | Yes | Joint venture | |||
| Corporate | The Company itself | Yiwu Shanglv | 1,391.81 | Aug 13, 2020 | December 25, 2020 | December 24, 2023 | Joint and several liability guarantee | NO | NO | CCCH provided a counter-guarantee | Yes | Joint venture | |||
| Hangzhou Shangbo Nanxing | Wholly-owned subsidiary | House purchaser | 992.89 | Joint and several | NO | NO | NO | ||||||||
| liability guarantee | ||
| Amount of guarantees made during the reporting period (excluding the guarantees provided for subsidiaries) | -48,106.35 | |
| Balance of guarantees at the end of the reporting period (A) (excluding the guarantees provided for subsidiaries) | 49,292.90 | |
| Guarantees provided by the Company for its subsidiaries | ||
| Amount of guarantees provided for subsidiaries during the reporting period | ||
| Balance of guarantees provided for subsidiaries at the end of the reporting period (B) | ||
| Total guarantees provided by the Company (including those provided for the subsidiaries) | ||
| Total amount of guarantees (A+B) | 49,292.90 | |
| Ratio of the total amount of guarantees to the Company’s net assets (%) | 3.50 | |
| 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) | 28,424.47 | |
| Portion of total amount of guarantees in excess of 50% of net assets (E) | ||
| Total (C+D+E) | 28,424.47 | |
| Statement on the joint and several liability that may be assumed due to outstanding guarantees | ||
| Statement on guarantees | 1. According to the resolution of the 65th meeting of the 7th Board of Directors on Jul 23, 2019, the Group applied to the Yiwu Branch of ICBC and Yiwu Branch of SPDB for RMB1bn loans respectively for Huangyuan Shangbo and provided guarantees for the loans based on its shareholding ratio. As of June 30, 2021, Huangyuan Shangbo actually borrowed RMB 266,421,958.33 from Industrial and Commercial Bank of China Yiwu Branch and RMB 313,669,198.33 from Shanghai Pudong Development Yiwu Branch (December 31, 2020: RMB 674,889,305.56, RMB 614,209,347.22). According to the agreement in the guarantee contract, it assumed the guarantee liability of RMB 130,546,759.58 for the Yiwu Branch of Industrial and Commercial Bank of China, and RMB 153,697,907.18 for the Yiwu Branch of | |
Shanghai Pudong Development Bank (December 31, 2020: RMB 330,695,759.72, RMB300,962,580.14).
2. According to the resolution of the 15
th Meeting of the 7
thBoard of Directors on July 1,2015, the Group applied for a RMB 750 million loan with Agricultural Bank of China YiwuBranch for Yiwu Shanglv and provided guarantees in accordance with the shareholdingratio. The guarantee method was joint liability guarantee, the highest guarantee amount wasRMB 367.5 million and the guarantee term was11 years. As of June 30, 2021, Yiwu Shanglvactually borrowed RMB 377,219,002.51 from the banks in total December 31, 2020: RMB477,659,739.88). According to the agreement of the guarantee contract, it assumed theguarantee liability of RMB 184,837,311.23 for the Agricultural Bank of China Yiwu Branch(December 31, 2020: RMB 234,053,272.54). Yiwu State-owned Capital Operation Co., Ltd.provided a counter guarantee for this guarantee.
3. According to the resolution of the 19
th Meeting of the 8
thBoard of Directors on August 13,2020, the Group applied for a loan with a total amount of not more than RMB 100 million forYiwu Shanglv with Bank of Communications Co., Ltd. Yiwu Branch and provided aguarantee in proportion to the shareholding ratio. The guarantee method was joint liabilityguarantee, the maximum amount of the guarantee was RMB 49 million, and the guaranteeperiod is two years, from the date of the expiry of the debt performance period agreed in theindependent contract until the date of the expiration of the debt performance period of all lastdue main debt under the master contract. As of June 30, 2021, Yiwu Shanglv actuallyborrowed RMB 28,404,291.89 from the banks in total (December 31, 2020: RMB11,500,000.00). According to the agreement of the guarantee contract, it assumed theguarantee liability of RMB 13,918,103.03 for the Agricultural Bank of China Yiwu Branch(December 31, 2020: RMB 5,635,000.00). Yiwu China Commodity City Holdings Limitedprovided counter-guarantee for this guarantee.
4. According to relevant regulations, before the purchaser of the commercial housing sold bythe Group has obtained the property certificate, the Group shall provide the purchaser with abank mortgage guarantee. As of June 30, 2021, the unsettled guarantee amount was RMB9,928,856.22 (December 31, 2020: RMB 16,170,141.08). Those guarantees would bereleased after the issuance of the property ownership certificates and are thus little likely toincur losses. Therefore, the management believed that it was not necessary to makeprovision for the guarantees.
3 Other material contracts
√Applicable □Not applicable
On June 16, 2021, the Company and Haier Group (Qingdao) Financial Holdings Co., Ltd.signed the “Agreement on Transfer of Equity of QuickPass Payment Service Co., Ltd. of ZhejiangHaier Network Technology Co., Ltd. Between Haier Group (Qingdao) Financial Holdings Co., Ltd.and Zhejiang China Commodities City Group Co., Ltd, providing for that the Company will acquire100% equity of Zhejiang Haier Network Technology Co., Ltd. (hereinafter referred to as "HaierNetwork") held by it at the consideration of RMB 449.3 million.Through audit by Zhongshen Asia Pacific Certified Public Accountants (Special GeneralPartnership), the book value of the net assets of Haier Network's statements on the base dateDecember 31, 2020 was RMB 189,894,500 (the book value of net assets of the consolidatedstatements was RMB 156,361,800). Through evaluation of Jiangsu China Enterprise HuazhongtianAssets Appraisal Co., Ltd., the value of all shareholders' equity of Haier Networks was RMB 454million on the base date December 31, 2020. Based on the assessed value, and the total transactionamount of this transaction was confirmed to be RMB 449.3 million. For details of this transaction, seethe “Announcement on the Proposed Acquisition of 100% of Equity of Zhejiang Haier NetworkTechnology Co., Ltd.” (Lin 2021-033).
By the end of the reporting period, the Company had paid Haier Financial Holdings the equitytransfer price (Issue 1) of RMB 67.395 million, and both parties had completed the first phase ofdelivery in accordance with the agreement.XII. Other significant matters
□Applicable √Not applicable
Section VII. Changes in Shares and Shareholders
I. Changes in equity(i) Exhibition of changes in shares
1、 Exhibition of changes in shares
Unit: share
| Before this change | Increase or decrease in the current period (+, -) | After this change | |||||||
| Number | (%) | New shares issued | Bonus shares | Shares converted from capital reserve | Others | Subtotal | Number | (%) | |
| I. Restricted shares | 0 | 0 | 46,700,000 | 0 | 0 | 0 | 46,700,000 | 46,700,000 | 0.85 |
| 1. Shares held by the state | |||||||||
| 2. Shares held by state-owned legal persons | |||||||||
| 3. Shares held by other domestic capitals | 0 | 0 | 46,700,000 | 0 | 0 | 0 | 46,700,000 | 46,700,000 | 0.85 |
| In which: shares held by domestic non-state-owned legal persons | |||||||||
| shares held by domestic natural persons | 0 | 0 | 46,700,000 | 0 | 0 | 0 | 46,700,000 | 46,700,000 | 0.85 |
| 4. Shares held by foreign capitals | |||||||||
| In which: shares held by foreign non-state-owned legal persons | |||||||||
| shares held by foreign natural persons | |||||||||
| II. Unrestricted shares | 5,443,214,176 | 100.00 | 5,443,214,176 | 99.15 | |||||
| 1. RMB-denominated common shares | 5,443,214,176 | 100.00 | 0 | 0 | 0 | 0 | 0 | 5,443,214,176 | 99.15 |
| 2. Foreign shares listed in China | |||||||||
| 3. Foreign shares listed abroad | |||||||||
| 4. Others | |||||||||
| III. Total number of shares | 5,443,214,176 | 100.00 | 46,700,000 | 0 | 0 | 0 | 46,700,000 | 5,489,914,176 | 100.00 |
2、 Description of changes in shares
√Applicable □Not applicable
During the reporting period, according to the 2020 restricted stock incentive plan, the Companygranted 46,700,000 restricted stocks to 395 incentive objects for the first time, and completed theregistration of stocks. The Company increased its share capital by 46,700,000 shares, and the totalshare capital increased to 5,489,914,176 shares.
3、 The impact of share changes on financial indicators such as earnings per share and netassets per share during the period from the end of the reporting period to the disclosure dateof the semi-annual report (if any)
□Applicable √Not applicable
4、 Other matters the Company deems it necessary to disclose or required by the securities
regulatory authority to be disclosed
□Applicable √Not applicable
(ii) Changes in non-tradable shares
√Applicable □Not applicable
Unit: share
| Shareholder | Number of restricted shares at the beginning of the period | Number of restricted shares released during the reporting period | Number of increased restricted shares during the reporting period | Number of restricted shares at the end of the period | Reasons for restriction on trade | Release date |
| 395 incentive objects granted by the restricted stock incentive plan for the first time in 2020 | 0 | 0 | 46,700,000 | 46,700,000 | Restricted stock incentives | / |
| Total | 0 | 0 | 46,700,000 | 46,700,000 | / | / |
| Number of common shareholders as of the end of the reporting period | 191,448 |
| Total number of preferred shareholders whose voting rights had been restituted as of the end of the reporting period | 0 |
(ii) Shareholdings of the top 10 shareholders and top 10 holders of tradable shares (or shareholders not subject to trading restrictions)
Unit: share
| Shares held by top 10 shareholders | |||||||
| Shareholder (fullname) | Change during the reporting period | Number of shares held at the end of the reporting period | (%) | Number of non-tradable shares held | Pledge, mark or freezing | Ownership of shareholder | |
| Status of shares | Number | ||||||
| Yiwu China Commodities City Holdings Limited | 0 | 3,038,179,392 | 55.34 | 0 | None | 0 | State-owned legal person |
| Zhejiang Financial Development Co., Ltd. | 0 | 147,466,528 | 2.69 | 0 | None | 0 | State-owned legal person |
| Central Huijin Investment Ltd. | -15,857,796 | 50,513,204 | 0.92 | 0 | None | 0 | State-owned legal person |
| LI Guoping | 41,472,900 | 41,472,900 | 0.76 | 0 | None | 0 | Domestic natural person |
| Hong Kong Central Clearing Company Limited | 24,270,207 | 37,742,829 | 0.69 | 0 | None | 0 | Unknown |
| Bosera Funds－Agricultural Bank of China－Bosera China Securities Financial Assets Management Scheme | 0 | 27,672,800 | 0.50 | 0 | None | 0 | Unknown |
| E Fund－Agricultural Bank of China－E Fund China Securities Financial Assets Management Scheme | 0 | 27,672,800 | 0.50 | 0 | None | 0 | Unknown |
| Dacheng Fund－Agricultural Bank of China－Dacheng China Securities Financial Assets Management Scheme | 0 | 27,672,800 | 0.50 | 0 | None | 0 | Unknown |
| Harvest Fund－Agricultural Bank of China－Harvest China Securities Financial Assets Management Scheme | 0 | 27,672,800 | 0.50 | 0 | None | 0 | Unknown |
| GF Fund－Agricultural Bank of China－GF China Securities Financial Assets Management Scheme | 0 | 27,672,800 | 0.50 | 0 | None | 0 | Unknown | |||
| Zhong Ou AMC－Agricultural Bank of China－Zhong Ou China Securities Financial Assets Management Scheme | 0 | 27,672,800 | 0.50 | 0 | None | 0 | Unknown | |||
| Southern Asset Management－Agricultural Bank of China－Southern China Securities Financial Assets Management Scheme | 0 | 27,672,800 | 0.50 | 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 | 0.50 | 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 | |||||||
| Zhejiang Financial Development Co., Ltd. | 147,466,528 | RMB-denominated common share | 147,466,528 | |||||||
| Central Huijin Investment Ltd. | 50,513,204 | RMB-denominated common share | 50,513,204 | |||||||
| LI Guoping | 41,472,900 | RMB-denominated common share | 41,472,900 | |||||||
| Hong Kong Central Clearing Company Limited | 37,742,829 | RMB-denominated common share | 37,742,829 | |||||||
| 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 | |
| The special accounts for repo for top 10 shareholders | / | |||
| Description of the entrusted voting rights, entrusted voting rights, and waiver of voting rights for above-mentioned shareholders | / | |||
| 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 | / | |||
(iii) Strategic investors or general legal persons became the top ten shareholders due to the
placement of new shares
□Applicable √Not applicable
III. Directors, supervisors and senior management(i) Changes in shareholdings of present and resigned directors, supervisors and seniormanagement during the reporting period
□Applicable √Not applicable
Statement on other matters
□Applicable √Not applicable
(ii) The equity incentives granted to directors, supervisors and senior management duringthe reporting period
□Applicable √Not applicable
√Applicable □Not applicable
Unit: share
| Name | Title | Number of restricted stocks held at the beginning of the period | Number of restricted stocks granted during the reporting period | Released shares | Unreleased share | Number of restricted stocks held at the end of the period |
| ZHAO Wenge | Director | 0 | 300,000 | 0 | 300,000 | 300,000 |
| WANG Dong | Director | 0 | 300,000 | 0 | 300,000 | 300,000 |
| JIN Gengzhong | Senior officer | 0 | 300,000 | 0 | 300,000 | 300,000 |
| WU Xiubin | Senior officer | 0 | 300,000 | 0 | 300,000 | 300,000 |
| ZHANG Qizhen | Senior officer | 0 | 300,000 | 0 | 300,000 | 300,000 |
| WEI Gang | Senior officer | 0 | 300,000 | 0 | 300,000 | 300,000 |
| XU Hang | Director | 0 | 300,000 | 0 | 300,000 | 300,000 |
| ZHAO Difang | Senior officer | 0 | 300,000 | 0 | 300,000 | 300,000 |
| Total | / | 0 | 2,400,000 | 0 | 2,400,000 | 2,400,000 |
Section VIII. Preferred Shares
□Applicable √Not applicable
Section IX. Bonds
I. Corporate bonds, corporate bonds and non-financial corporate debt financinginstruments
√Applicable □Not applicable
(i) Corporate bonds
□Applicable √Not applicable
(ii) Corporate bonds
√Applicable □Not applicable
1. Basic information on corporate bonds
Unit: RMB 100 million Currency: RMB
| Bond name | Abbreviation | Code | Issue date | Value date | Maturity date | Outstanding amount | Interest rate (%) | Method of principal repayment and interest payment | Marketplace | Trade mechanism | Whether there is a risk of terminating the transaction in the stock market |
| Publicly offered corporate bond 2019 of Zhejiang China Commodities City Group Co., Ltd (Phase I) | 19 Yiwu CCC 01 | 155450 | Jun 3, 2019 | June 5, 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 | NO | |
| Zhejiang China Commodities City Group Co., Ltd.’s 2019 Public Corporate Bonds (Issue 2) | 19 SYiwu CCC 02 | 155750 | Sep 26, 2019 | Sep 27, 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 | NO |
Bonds overdue
□Applicable √Not applicable
Explanation on overdue debts
□Applicable √Not applicable
2. Issuer or investor option clause, investor protection clause trigger and enforcement
□Applicable √Not applicable
3. Adjustment in credit rating results
□Applicable √Not applicable
4. The implementation and changes of guarantees, debt repayment plans and other debtrepayment protection measures during the reporting period and their impacts
□Applicable √Not applicable
5. Other statement on corporate bonds
√Applicable □Not applicable
2019 Corporate Bonds (Issue 1), with a total amount of raised funds of RMB 800 million. TheCompany has used the funds after deduction of issuance fees to repay its interest-bearing liabilitiesin accordance with the plan for the use of raised funds as agreed in the prospectus.
2019 Corporate Bonds (Issue 2), with a total raised capital of RMB 700 million. The Companyhas used the funds after deduction of issuance fees to repay its interest-bearing liabilities inaccordance with the plan for the use of raised funds as agreed in the prospectus.(iii) Non-financial corporate debt financing instruments in the inter-bank bond
market
√Applicable □Not applicable
1. Non-financial corporate debt financing instruments
Unit: RMB 100 million Currency: RMB
| Bond name | Abbreviation | Code | Issue date | Value date | Maturity date | Outstanding amount | Interest rate (%) | Method of principal repayment and interest payment | Marketplace | Trade mechanism | Whether there is a risk of terminating the transaction in the stock market |
| Zhejiang China Commodities City Group Co., Ltd.’s 2018 MTN (Issue 1) | 18 Zhejiang Yiwu CCC MTN001 | 101801043 | September 4, 2018- September 5, 2018 | September 6, 2018 | Sep 6, 2021 | 10 | 4.75 | The interest of the current MTN is paid once a year, and the principal is redeemed in one lump sum on the redemption date. The interest payment and redemption of the current MTN will be handled by the custodian | Shanghai Clearing House | NO |
| (if the maturity date falls on a statutory holiday, the redemption will be postponed to the next working day, and no interest will be accrued during the postponement period). | |||||||||||
| Zhejiang China Commodities City Group Co., Ltd.’s 2019 MTN (Issue 1) | 19 Zhejiang Yiwu CCC MTN001 | 101900921 | July 11, 2019- July 12, 2019 | July 15, 2019 | Jul 15, 2022 | 10 | 3.99 | The interest of the current MTN is paid once a year, and the principal is redeemed in one lump sum on the redemption date. The interest payment and redemption of the current MTN will be handled by the custodian (if the maturity date falls on a statutory holiday, the redemption will be postponed to the next working day, and no interest will be accrued during the postponement period). | Shanghai Clearing House | NO | |
| Zhejiang China Commodities City Group Co., Ltd.’s 2019 MTN (Issue 2) | 19 Zhejiang Yiwu CCC MTN002 | 101901396 | October 17, 2019-October 18, 2019 | October 21, 2019 | Oct 21, 2022 | 10 | 3.97 | The interest of the current MTN is paid once a year, and the principal is redeemed in one lump sum on the redemption date. The interest payment and redemption of the current | Shanghai Clearing House | NO |
| MTN will be handled by the custodian (if the maturity date falls on a statutory holiday, the redemption will be postponed to the next working day, and no interest will be accrued during the postponement period). | |||||||||||
| Zhejiang China Commodities City Group Co., Ltd.’s 2021 Super Short-term Financing Bonds (Issue 2) | 21 Zhejiang Yiwu CCC SCP002 | 012100639 | February 20, 2021-February 22, 2021 | Feb 23, 2021 | Aug 24, 2021 | 10 | 3.40 | Payment of principal and interest in one lump sum at maturity. The issuer shall publish the “Redemption Announcement” in the information media recognized by the competent authority in accordance with relevant regulations five working days before the redemption date of the current ultra-short-term financing bonds; for the redemption of the current ultra-short-term financing bonds, according to the Company's regulations, the Interbank Market Clearing House Co., Ltd. will complete the interest payment | Shanghai Clearing House | NO |
| and redemption work as an agent; related matters will be disclosed in the “Redemption Announcement” in details. | |||||||||||
| Zhejiang China Commodities City Group Co., Ltd.’s 2021 Super Short-term Financing Bonds (Issue 4) | 21 Zhejiang Yiwu CCC SCP004 | 012101427 | April 12, 2021-April 13, 2021 | Apr 14, 2021 | Jul 13, 2021 | 10 | 2.93 | The issuer shall publish the “Redemption Announcement” in the information media recognized by the competent authority in accordance with relevant regulations five working days before the redemption date of the current ultra-short-term financing bonds; for the redemption of the current ultra-short-term financing bonds, according to the Company's regulations, the Interbank Market Clearing House Co., Ltd. will complete the interest payment and redemption work as an agent; related matters will be disclosed in the “Redemption Announcem | Shanghai Clearing House | NO |
| ent” in details. | |||||||||||
| Zhejiang China Commodities City Group Co., Ltd.’s 2021 Super Short-term Financing Bonds (Issue 5) | 21 Zhejiang Yiwu CCC SCP005 | 012102030 | May 31, 2021-June 2, 2021 | Jun 2, 2021 | Oct 29, 2021 | 10 | 2.84 | The issuer shall publish the “Redemption Announcement” in the information media recognized by the competent authority in accordance with relevant regulations five working days before the redemption date of the current ultra-short-term financing bonds; for the redemption of the current ultra-short-term financing bonds, according to the Company's regulations, the Interbank Market Clearing House Co., Ltd. will complete the interest payment and redemption work as an agent; related matters will be disclosed in the “Redemption Announcement” in details. | Shanghai Clearing House | NO |
□Applicable √Not applicable
2. Issuer or investor option clause, investor protection clause trigger and enforcement
□Applicable √Not applicable
3. Adjustment in credit rating results
□Applicable √Not applicable
4. The implementation and changes of guarantees, debt repayment plans and otherdebt repayment protection measures during the reporting period and their impacts
□Applicable √Not applicable
5. Explanation on other situations relevant to non-financial corporate debt financing
instruments
√Applicable □Not applicable
1. The Company issued 90-day ultra-short-term financing bonds of RMB 1 billion on November25, 2020, at an annual interest rate of 2.5%. The lead underwriter was Agricultural Bank of China.The bonds have become mature on February 25, 2021 with principal and interest cashed.
2. The Company issued 90-day ultra-short-term financing bonds of RMB 1 billion on December8, 2020, at an annual interest rate of 2.45%. The lead underwriter was Shanghai PudongDevelopment Bank Co., Ltd. The bonds have become mature on March 9, 2021 with principal andinterest cashed.
3. The Company issued 28-day ultra-short-term financing bonds of RMB 1 billion on December24, 2020, at an annual interest rate of 2.70%. The lead underwriter is Industrial and CommercialBank of China. The bonds have become mature on January 22, 2021 with principal and interestcashed.
4. The Company issued 88-day ultra-short-term financing bonds of RMB 1 billion on January 14,2021, at an annual interest rate of 3.20%. The lead underwriter was Agricultural Bank of China Co.,Ltd. The bonds have become mature on April 16, 2021 with principal and interest cashed.
5. The Company issued 88-day ultra-short-term financing bonds of RMB 1 billion on March 4,2021, at an annual interest rate of 3.09%. The lead underwriter was Industrial and Commercial Bankof China. The bonds have become mature on June 4, 2021 with principal and interest cashed.
(iv) During the reporting period, the Company's loss in the scope of consolidated
statements exceeded 10% of its net assets as of the the end of the previous year.
□Applicable √Not applicable
(v) Main accounting data and financial indicators
√Applicable □Not applicable
Unit: RMB10,000
| Major indicator | As of the end of the current reporting period | As of the end of 2020 | Increase/decrease at the end of the reporting period over the end of the previous year (%) | Reasons for change |
| Current ratio | 72.02% | 91.44% | Down 19.42 % | |
| Quick ratio | 70.02% | 79.45% | Down 9.43 % | |
| Debt-to-asset ratio (%) | 52.59 | 52.78 | Down 0.19 % | |
| Jan-Jun 2021 | Jan-Jun 2020 | Increase/decrease during the reporting period over the same period of the previous year (%) | Reasons for change |
| Net profit after deduction of non-recurring gains and losses | 80,498.09 | 60,219.38 | 33.67 | The net profit attributable to the parent company’s owner increased by RMB 131 million year-on-year, and non-recurring gains and losses decreased by RMB 72 million year-on-year |
| EBITDA to total debt ratio | 0.23 | 0.27 | -14.81 | |
| Interest coverage ratio | 7.09 | 5.23 | 35.56 | The interest expenses decreased by RMB 61 million year-on-year |
| Cash interest protection multiple | 5.32 | 0.72 | 637.55 | The net cash flow from operating activities during the current period increased by RMB 870 million year-on-year, and interest payments decreased by RMB 61 million year-on-year. |
| EBITDA-to-interest coverage ratio | 9.04 | 5.99 | 50.92 | The interest expenses decreased by RMB 61 million year-on-year |
| Loan repayment rate (%) | 100 | 100 | ||
| Interest payment rate (%) | 100 | 100 |
Section X. Financial Report
I. Auditor’s report
□Applicable √Not applicable
II. Financial statements
Consolidated Balance Sheet
June 30, 2021Prepared by: Zhejiang China Commodities City Group Co., Ltd.
Unit: RMB
| Item | Notes | June 30, 2021 | December 31, 2020 |
| Current assets: | |||
| Monetary capital | 3,019,635,447.13 | 5,612,642,932.21 | |
| Held-for-trading financial assets | 57,568,002.17 | 51,712,734.31 | |
| Accounts Receivable | 139,603,567.84 | 153,573,476.86 | |
| Prepayments | 596,382,710.86 | 105,187,528.26 | |
| Other receivables | 3,072,486,757.71 | 2,708,478,136.25 | |
| In which: interest receivable | 184,625,160.72 | 121,401,210.48 | |
| Inventories | 1,397,192,587.83 | 1,329,467,728.17 | |
| Other current assets | 237,091,677.93 | 179,724,694.17 | |
| Total current assets | 8,519,960,751.47 | 10,140,787,230.23 | |
| Non-current assets: | |||
| Long-term receivables | 186,094,734.90 | 126,756,573.81 | |
| Long-term equity investment | 5,284,519,935.53 | 3,832,897,502.71 | |
| Other equity instruments investment | 588,254,213.58 | 662,256,342.79 | |
| Other non-current financial assets | 1,565,523,492.51 | 1,523,925,249.81 | |
| Investment real estate | 1,914,125,314.85 | 1,960,426,291.73 | |
| Property, plant and equipment | 5,043,245,326.60 | 5,234,293,786.87 | |
| Construction in progress | 2,011,597,180.39 | 982,891,877.14 | |
| Right-of-use assets | 179,804,271.63 | - | |
| Intangible assets | 3,989,317,996.79 | 3,900,780,981.92 | |
| Development expenditures | 36,456,278.42 | 22,223,061.09 | |
| Long-term deferred expenses | 88,479,735.68 | 110,728,723.36 | |
| Deferred tax assets | 85,913,021.35 | 99,664,328.84 | |
| Other non-current assets | 220,615,444.63 | 152,495,196.56 | |
| Total non-current assets | 21,193,946,946.86 | 18,609,339,916.63 | |
| Total assets | 29,713,907,698.33 | 28,750,127,146.86 | |
| Current liabilities: | |||
| Short-term loans | 1,234,890,481.77 | 1,257,179,389.40 | |
| Accounts payable | 807,401,123.93 | 636,463,802.23 | |
| Advances from customers | 108,185,394.49 | 112,752,897.25 | |
| Contract liabilities | 2,525,598,728.31 | 2,442,211,788.88 | |
| Employee compensations payable | 52,119,743.98 | 161,498,997.53 | |
| Taxes payable | 232,061,631.42 | 495,400,499.73 | |
| Other payables | 1,775,772,737.40 | 1,646,345,561.62 | |
| Non-current liabilities due within one year | 2,031,849,229.82 | 1,315,026,574.43 | |
| Other current liabilities | 3,061,785,512.50 | 3,023,608,041.68 | |
| Total current liabilities | 11,829,664,583.62 | 11,090,487,552.75 | |
| Non-current liabilities: | |||
| Long- term loans | 604,000,000.00 | 282,000,000.00 | |
| Bonds payable | 2,786,076,439.37 | 3,552,161,709.68 | |
| Lease liabilities | 175,878,039.33 | - | |
| Estimated liabilities | 110,620,306.10 | 110,620,306.10 | |
| Deferred incomes | 25,834,540.46 | 26,545,277.30 | |
| Deferred income tax liabilities | 95,833,279.47 | 113,602,923.79 | |
| Total non-current liabilities | 3,798,242,604.73 | 4,084,930,216.87 | |
| Total Liabilities | 15,627,907,188.35 | 15,175,417,769.62 | |
| Owners' equity (or shareholders' equity): | |||
| Paid-in capital (or equity) | 5,489,914,176.00 | 5,489,914,176.00 | |
| Capital reserves | 1,611,917,337.79 | 1,594,906,524.67 | |
| Less: treasury stocks | 137,298,000.00 | 137,298,000.00 | |
| Other comprehensive income | 20,996,326.05 | 78,149,661.33 | |
| Surplus reserve | 1,364,257,808.58 | 1,364,257,808.58 | |
| Retained earnings | 5,716,867,387.75 | 5,168,298,206.50 | |
| Total owner’s equity (or shareholders’ equity) attributable to the parent company | 14,066,655,036.17 | 13,558,228,377.08 | |
| Minority shareholders' equity | 19,345,473.81 | 16,481,000.16 | |
| Total owner’s equity (or shareholders’ equity) | 14,086,000,509.98 | 13,574,709,377.24 | |
| Total liabilities and owners’ equity (or shareholders’ equity) | 29,713,907,698.33 | 28,750,127,146.86 |
Legal Representative: ZHAO Wenge Person in Charge of Finance: WANG Dong Head of FinanceDepartment: ZHAO Difang
Balance Sheet of Parent Company
June 30, 2021Prepared by: Zhejiang China Commodities City Group Co., Ltd.
Unit: RMB
| Item | Notes | June 30, 2021 | December 31, 2020 |
| Current assets: | |||
| Monetary capital | 2,818,878,844.46 | 5,435,867,497.50 | |
| Held-for-trading financial assets | 2,000.15 | 6,632.72 | |
| Accounts Receivable | 6,894,652.11 | 14,671,577.47 | |
| Prepayments | 35,388,066.41 | 29,452,445.04 | |
| Other receivables | 2,996,245,219.88 | 2,651,640,610.06 | |
| In which: interest receivable | 184,625,160.72 | 121,401,210.48 | |
| Inventories | 9,416,625.96 | 10,144,965.06 | |
| Other current assets | 3,347,123,936.64 | 3,082,340,716.76 | |
| Total current assets | 9,213,949,345.61 | 11,224,124,444.61 | |
| Non-current assets: | |||
| Long-term receivables | 61,250,000.00 | 61,250,000.00 | |
| Long-term equity investment | 7,645,123,240.17 | 6,083,135,428.02 | |
| Other equity instruments investment | 588,254,213.58 | 662,256,342.79 | |
| Other non-current financial assets | 268,321,054.11 | 266,722,811.41 | |
| Investment real estate | 1,464,961,605.75 | 1,501,734,504.79 | |
| Property, plant and equipment | 4,287,761,821.48 | 4,444,239,239.28 | |
| Construction in progress | 1,863,073,492.57 | 856,248,099.10 | |
| Right-of-use assets | 171,878,246.76 | - | |
| Intangible assets | 3,866,223,861.24 | 3,777,092,772.41 | |
| Long-term deferred expenses | 50,758,414.87 | 58,705,952.97 | |
| Deferred tax assets | 71,754,574.34 | 85,739,381.21 | |
| Other non-current assets | 67,395,000.00 | - | |
| Total non-current assets | 20,406,755,524.87 | 17,797,124,531.98 | |
| Total assets | 29,620,704,870.48 | 29,021,248,976.59 | |
| Current liabilities: | |||
| Short-term loans | 1,234,890,481.77 | 1,257,179,389.40 | |
| Accounts payable | 595,073,617.56 | 444,254,309.61 | |
| Advances from customers | 81,824,785.92 | 97,380,931.49 | |
| Contract liabilities | 1,919,954,541.32 | 2,283,994,068.70 | |
| Employee compensations payable | 46,832,827.75 | 131,469,702.81 | |
| Taxes payable | 359,818,683.29 | 546,100,633.28 | |
| Other payables | 1,446,659,579.24 | 1,333,312,494.36 | |
| Non-current liabilities due within one year | 2,031,849,229.82 | 1,315,026,574.43 | |
| Other current liabilities | 3,530,643,289.78 | 3,556,664,822.79 | |
| Total current liabilities | 11,247,547,036.45 | 10,965,382,926.87 | |
| Non-current liabilities: | |||
| Long- term loans | 604,000,000.00 | 282,000,000.00 | |
| Bonds payable | 2,786,076,439.37 | 3,552,161,709.68 | |
| Lease liabilities | 167,905,156.44 | - | |
| Estimated liabilities | 110,620,306.10 | 110,620,306.10 | |
| Deferred incomes | 25,834,540.46 | 26,545,277.30 | |
| Deferred income tax liabilities | 52,303,754.50 | 69,623,249.14 | |
| Total non-current liabilities | 3,746,740,196.87 | 4,040,950,542.22 | |
| Total Liabilities | 14,994,287,233.32 | 15,006,333,469.09 | |
| Owners' equity (or shareholders' equity): | |||
| Paid-in capital (or equity) | 5,489,914,176.00 | 5,489,914,176.00 | |
| Capital reserves | 1,844,177,445.65 | 1,833,256,515.22 | |
| Less: treasury stocks | 137,298,000.00 | 137,298,000.00 | |
| Other comprehensive income | 25,971,586.93 | 81,473,183.84 | |
| Surplus reserve | 1,364,204,332.75 | 1,364,204,332.75 | |
| Retained earnings | 6,039,448,095.83 | 5,383,365,299.69 | |
| Total owner’s equity (or shareholders’ equity) | 14,626,417,637.16 | 14,014,915,507.50 | |
| Total liabilities and owners’ equity (or shareholders’ equity) | 29,620,704,870.48 | 29,021,248,976.59 |
Consolidated Income Statement
January-June 2021
Unit: RMB
| Item | Notes | Jan-Jun 2021 | Jan-Jun 2020 |
| I. Total operating incomes | 2,072,627,727.00 | 2,121,448,794.31 | |
| Including: operating incomes | 2,072,627,727.00 | 2,121,448,794.31 | |
| II. Total operating costs | 1,286,710,176.88 | 1,277,687,351.73 | |
| Including: operating costs | 925,410,625.41 | 869,227,556.47 | |
| Taxes and surcharges | 68,637,589.35 | 81,768,664.49 | |
| Selling expenses | 74,042,931.03 | 87,887,071.86 | |
| General and administrative expenses | 166,698,886.58 | 130,450,924.63 | |
| R&D expenses | 4,569,138.44 | 17,081,225.94 | |
| Financial expenses | 47,351,006.07 | 91,271,908.34 | |
| Including: interest | 173,963,591.17 | 234,530,903.42 | |
| Interest income | 117,153,799.20 | 120,683,282.59 | |
| Add: other income | 9,046,028.12 | 13,684,424.06 | |
| Investment income (losses presented with "-") | 263,831,792.50 | 119,150,641.25 | |
| Including: investment income from associated enterprises and joint ventures | 263,788,954.78 | 13,185,907.49 | |
| Gains from changes in fair value (losses presented with "-") | 1,128,592.10 | 20,193,509.58 | |
| Credit impairment loss (loss is indicated by “-”) | -429,274.88 | -2,379,335.67 | |
| Income from asset disposal (losses presented with "-") | 101,911.42 | 1,095,496.24 | |
| III. Operating profit (losses presented with "-") | 1,059,596,599.38 | 995,506,178.04 | |
| Plus: non-operating income | 1,345,652.86 | 753,575.18 | |
| Less: non-operating expenses | 1,121,094.44 | 3,230,897.12 | |
| IV. Total profits (total loss presented with "-") | 1,059,821,157.80 | 993,028,856.10 | |
| Less: income taxes | 212,576,766.64 | 272,987,186.07 | |
| V. Net profit (net loss presented with "-") | 847,244,391.16 | 720,041,670.03 | |
| (I) Categorized by continuity of operation | |||
| Net profits from continuing operation (net loss is indicated by “-”) | 847,244,391.16 | 720,041,670.03 | |
| (II) Categorized by ownership | |||
| Net profits attributable to shareholders of the parent company (net loss is indicated by “-”) | 850,514,460.93 | 719,595,308.66 | |
| Minority interest(net loss is indicated by “-”) | -3,270,069.77 | 446,361.37 | |
| VI. Net after-tax amount of other comprehensive income | -57,171,933.87 | -6,851,012.93 | |
| (I) Other comprehensive income attributable to owners of the parent company, net of tax | -57,153,335.28 | -6,851,012.93 | |
| 1. Other comprehensive income that cannot be reclassified as profits or loss | -55,501,596.91 | -6,584,935.23 | |
| (3) Changes in fair value of investments in other equity instruments | -55,501,596.91 | -6,584,935.23 | |
| 2 . Other comprehensive income that will be reclassified as profits or loss | -1,651,738.37 | -266,077.70 | |
| (6) Difference arising from the translation of foreign currency financial statements | -1,651,738.37 | -266,077.70 | |
| (2) After -tax net of other comprehensive income attributable to minority shareholders | -18,598.59 | - | |
| VII. Total comprehensive income | 790,072,457.29 | 713,190,657.10 | |
| (I) Total comprehensive income attributable to owners of the parent company | 793,361,125.65 | 712,744,295.73 | |
| (II) Total comprehensive income attributable to minority shareholders | -3,288,668.36 | 446,361.37 | |
| VIII. Earnings per share: | |||
| (I) Basic earnings per share | 0.16 | 0.13 | |
| (II) Diluted earnings per share | 0.15 | 0.13 |
| Item | Notes | Jan-Jun 2021 | Jan-Jun 2020 |
| I. Revenue | 1,588,046,245.78 | 1,662,962,086.90 | |
| Less: cost of sales | 429,090,936.75 | 417,683,630.26 | |
| Taxes and surcharges | 58,484,528.13 | 65,927,422.27 | |
| Selling expenses | 47,108,501.28 | 71,698,416.11 | |
| General and administrative expenses | 90,199,678.31 | 68,180,551.76 | |
| Financial expenses | 46,070,392.65 | 93,978,042.43 | |
| Including: interest | 173,963,591.17 | 234,530,903.42 | |
| Interest income | 116,062,301.61 | 119,943,387.77 | |
| Add: other income | 6,818,726.38 | 8,427,874.93 | |
| Investment income (losses presented with "-") | 242,410,649.86 | 43,373,764.99 | |
| Including: investment income from associated enterprises and joint ventures | 242,367,812.14 | 22,242,937.96 | |
| Gains from changes in fair value (losses presented with "-") | 3,768,691.70 | -11,815,305.33 | |
| Credit impairment loss (loss is indicated by “-”) | -472,652.89 | -75,439.45 | |
| Income from asset disposal (losses presented with "-") | - | -776.57 | |
| II. Operating profits (loss is indicated by “-”) | 1,169,617,623.71 | 985,404,142.64 | |
| Plus: non-operating income | 1,312,807.46 | 469,374.66 | |
| Less: non-operating expenses | 1,119,542.70 | 1,413,092.81 | |
| III. Profits before tax (loss is indicated by “-”) | 1,169,810,888.47 | 984,460,424.49 | |
| Less: income taxes | 211,782,812.65 | 243,885,033.19 | |
| IV. Net profits (net loss is indicated by “-”) | 958,028,075.82 | 740,575,391.30 | |
| (I) Categorized by continuity of operation(net loss is indicated by “-”) | 958,028,075.82 | 740,575,391.30 | |
| V. Other comprehensive income, net of tax | -55,501,596.91 | -6,584,935.23 | |
| (1) Other comprehensive income that cannot be reclassified into profit and loss | -55,501,596.91 | -6,584,935.23 | |
| 3. Changes in fair value of investments in other equity instruments | -55,501,596.91 | -6,584,935.23 | |
| VI. Total comprehensive income | 902,526,478.91 | 733,990,456.07 | |
| VII. Earnings per share: | |||
| (I) Basic earnings per share | 0.18 | 0.14 | |
| (II) Diluted earnings per share | 0.17 | 0.14 |
Consolidated Cash Flow Statement
January-June 2021
Unit: RMB
| Item | Notes | Jan-Jun 2021 | Jan-Jun 2020 |
| 1. Cash flow for operating activities: | |||
| Cash received from selling goods and providing labor services | 2,103,613,100.95 | 1,607,591,030.14 | |
| Cash received for taxes and surcharges refunded | 31,958,670.65 | - | |
| Other cash received related to operating activities | 185,781,336.71 | 142,203,534.16 | |
| Subtotal of cash inflow from operating activities | 2,321,353,108.31 | 1,749,794,564.30 | |
| Cash paid for purchasing goods and receiving labor services | 1,072,180,983.15 | 728,107,752.48 | |
| Cash paid to and for employees | 321,909,809.23 | 335,913,290.70 | |
| Taxes and surcharges paid | 585,534,877.66 | 637,729,363.85 | |
| Other cash paid related to operating activities | 174,991,613.52 | 751,110,857.43 | |
| Subtotal of cash outflow from operating activities | 2,154,617,283.56 | 2,452,861,264.46 | |
| Net cash flow from operating activities | 166,735,824.75 | -703,066,700.16 | |
| II. Cash flow for investment activities: | |||
| Cash received from investment | 5,052,210,999.83 | 2,247,254,852.56 | |
| Cash received from investment income | 103,616,646.00 | 21,358,547.58 | |
| Net cash received from disposal of property, plant and equipment, intangible assets and other long-term assets | 43,092,520.72 | - | |
| Other cash received related to investing activities | 1,326,599,831.00 | 192,154,897.34 | |
| Subtotal of cash inflow from investing activities | 6,525,519,997.55 | 2,460,768,297.48 | |
| Cash paid for acquisition of property, plant and equipment, intangible assets and other long-term assets | 1,064,887,215.22 | 1,193,403,588.05 | |
| Cash paid for investment | 3,945,813,863.27 | 650,338,982.38 | |
| Other cash paid related to investing activities | 1,550,981,005.00 | - | |
| Subtotal of cash outflow for investing activities | 6,561,682,083.49 | 1,843,742,570.43 | |
| Net cash flow from investing activities | -36,162,085.94 | 617,025,727.05 | |
| III. Cash flow for financing activities: | |||
| Cash received for investment taking | 6,000,000.00 | - | |
| Including: cash received by subsidiaries from absorbing minority shareholders' investment | 6,000,000.00 | - | |
| Cash received for obtaining loans | 1,422,000,000.00 | 4,490,000,000.00 | |
| Cash received from bond issuance | 5,000,000,000.00 | 1,999,200,628.92 | |
| Subtotal of cash inflow from financing activities | 6,428,000,000.00 | 6,489,200,628.92 | |
| Cash paid for debt paying | 6,232,000,000.00 | 6,200,000,000.00 | |
| Cash paid for distribution of dividends and profits, or payment for interest | 400,351,190.76 | 159,190,038.50 | |
| Including: dividends and profits paid by subsidiaries to minority shareholders | - | 114,400.00 | |
| Subtotal of cash outflow from financing activities | 6,632,351,190.76 | 6,359,190,038.50 |
| Net cash flow from financing activities | -204,351,190.76 | 130,010,590.42 | |
| IV. Impact of changes in exchange rate on cash and cash equivalents | 769,966.77 | - | |
| V. Net increase in cash and cash equivalents | -73,007,485.18 | 43,969,617.31 | |
| Add: Opening balance of cash and cash equivalents | 2,032,642,871.63 | 3,426,712,549.26 | |
| VI. Closing balance of cash and cash equivalents | 1,959,635,386.45 | 3,470,682,166.57 |
| Item | Notes | Jan-Jun 2021 | Jan-Jun 2020 |
| 1. Cash flow for operating activities: | |||
| Cash received from selling goods and providing labor services | 1,118,280,046.33 | 215,927,804.72 | |
| Cash received for taxes and surcharges refunded | 23,527,341.26 | - | |
| Other cash received related to operating activities | 1,789,613,350.06 | 136,220,582.47 | |
| Subtotal of cash inflow from operating activities | 2,931,420,737.65 | 352,148,387.19 | |
| Cash paid for purchasing goods and receiving labor services | 154,026,249.28 | 244,988,576.96 | |
| Cash paid to and for employees | 222,414,525.26 | 227,142,936.38 | |
| Taxes and surcharges paid | 492,951,916.52 | 433,944,546.40 | |
| Other cash paid related to operating activities | 1,990,862,090.20 | 504,258,445.05 | |
| Subtotal of cash outflow from operating activities | 2,860,254,781.26 | 1,410,334,504.79 | |
| Net cash flow from operating activities | 71,165,956.39 | -1,058,186,117.60 | |
| II. Cash flow for investment activities: | |||
| Cash received from investment | 5,052,210,999.83 | 2,243,593,538.47 | |
| Cash received from investment income | 99,366,646.00 | 21,358,547.58 | |
| Net cash received from disposal of property, plant and equipment, intangible assets and other long-term assets | 42,716,005.31 | - | |
| Other cash received related to investing activities | 1,326,599,831.00 | 135,595,485.59 | |
| Subtotal of cash inflow from investing activities | 6,520,893,482.14 | 2,400,547,571.64 | |
| Cash paid for acquisition of property, plant and equipment, intangible assets and other long-term assets | 970,900,182.64 | 1,114,320,349.50 | |
| Cash paid for investment | 3,985,050,918.27 | 415,508,687.71 | |
| Other cash paid related to investing activities | 1,492,745,800.00 | - | |
| Subtotal of cash outflow for investing activities | 6,448,696,900.91 | 1,529,829,037.21 | |
| Net cash flow from investing | 72,196,581.23 | 870,718,534.43 |
| activities | |||
| III. Cash flow for financing activities: | |||
| Cash received for obtaining loans | 1,422,000,000.00 | 4,490,000,000.00 | |
| Cash received from bond issuance | 5,000,000,000.00 | 1,999,200,628.92 | |
| Subtotal of cash inflow from financing activities | 6,422,000,000.00 | 6,489,200,628.92 | |
| Cash paid for debt paying | 6,232,000,000.00 | 6,200,000,000.00 | |
| Cash paid for distribution of dividends and profits, or payment for interest | 400,351,190.76 | 158,618,038.50 | |
| Subtotal of cash outflow from financing activities | 6,632,351,190.76 | 6,358,618,038.50 | |
| Net cash flow from financing activities | -210,351,190.76 | 130,582,590.42 | |
| IV. Impact of changes in exchange rate on cash and cash equivalents | |||
| V. Net increase in cash and cash equivalents | -66,988,653.14 | -56,884,992.75 | |
| Add: Opening balance of cash and cash equivalents | 1,885,867,436.92 | 3,305,541,700.68 | |
| VI. Closing balance of cash and cash equivalents | 1,818,878,783.78 | 3,248,656,707.93 |
Consolidated Statement of Changes in Owners’ Equity
January-June 2021
Unit: RMB
| Item | Jan-Jun 2021 | ||||||||
| Equity attributable to equity holders | Minority shareholders' equity | Total owner's equity | |||||||
| Paid-in capital (share capital) | Capital reserves | Less: treasury stocks | Other comprehensive income | Surplus reserve | Retained earnings | Subtotal | |||
| I. Closing balance of the same reporting period of previous year | 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 |
| II. Opening balance of the current year | 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 |
| III. YoY change (decrease is indicated by “-”) | 17,010,813.12 | -57,153,335.28 | 548,569,181.25 | 508,426,659.09 | 2,864,473.65 | 511,291,132.74 | |||
| (1) Total comprehensive income | -57,153,335.28 | 850,514,460.93 | 793,361,125.65 | -3,288,668.36 | 790,072,457.29 | ||||
| (2) Capital invested and reduced by owner | 17,010,813.12 | 17,010,813.12 | 6,153,142.01 | 23,163,955.13 | |||||
| 1．Common shares contributed by owners | 6,000,000.00 | 6,000,000.00 | |||||||
| 3. Amount of share-based payment into owner’s equity | 17,010,813.12 | 17,010,813.12 | 153,142.01 | 17,163,955.13 | |||||
| (III) Profits distribution | -301,945,279.68 | -301,945,279.68 | -301,945,279.68 | ||||||
| 3．Distribution to owners (or | -301,945,279.68 | -301,945,279.68 | -301,945,279.68 | ||||||
| shareholders) | |||||||||
| IV. Closing balance of the current period | 5,489,914,176.00 | 1,611,917,337.79 | 137,298,000.00 | 20,996,326.05 | 1,364,257,808.58 | 5,716,867,387.75 | 14,066,655,036.17 | 19,345,473.81 | 14,086,000,509.98 |
| Item | Jan-Jun 2020 | |||||||
| Equity attributable to equity holders | Minority shareholders' equity | Total owner's equity | ||||||
| Paid-in capital (or equity) | Capital reserves | Other comprehensive income | Surplus reserve | Retained earnings | Subtotal | |||
| I. Closing balance of the same reporting period 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 “-”) | -15,959,450.81 | -6,851,012.93 | 719,595,308.66 | 696,784,844.92 | -28,148,773.10 | 668,636,071.82 | ||
| (1) Total comprehensive income | -6,851,012.93 | 719,595,308.66 | 712,744,295.73 | 446,361.37 | 713,190,657.10 | |||
| (2) Capital invested and reduced by owner | -15,959,450.81 | -15,959,450.81 | -28,595,134.47 | -44,554,585.28 | ||||
| 1．Common shares contributed by owners | 4,000,000.00 | 4,000,000.00 | ||||||
| 4．Others | -15,959,450.81 | -15,959,450.81 | -32,595,134.47 | -48,554,585.28 | ||||
| IV. Closing balance of the current period | 5,443,214,176.00 | 1,508,224,328.83 | 59,416,179.81 | 1,236,166,911.81 | 5,470,382,697.83 | 13,717,404,294.28 | 35,530,860.75 | 13,752,935,155.03 |
| Item | Jan-Jun 2021 | ||||||
| Paid-in capital (share capital) | Capital reserves | Less: treasury stocks | Other comprehensive income | Surplus reserve | Retained earnings | Total owner's equity | |
| I. Closing balance of the same reporting period of previous year | 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 |
| II. Opening balance of the current year | 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 |
| III. YoY change (decrease is indicated by “-”) | 10,920,930.43 | -55,501,596.91 | 656,082,796.14 | 611,502,129.66 | |||
| (1) Total comprehensive income | -55,501,596.91 | 958,028,075.82 | 902,526,478.91 | ||||
| (2) Capital invested and reduced by owner | 10,920,930.43 | 10,920,930.43 | |||||
| 3. Amount of share-based payment into owner’s equity | 10,920,930.43 | 10,920,930.43 | |||||
| (III) Profits distribution | -301,945,279.68 | -301,945,279.68 | |||||
| 2. Distribution to owner (or shareholders) | -301,945,279.68 | -301,945,279.68 | |||||
| IV. Closing balance of the current period | 5,489,914,176.00 | 1,844,177,445.65 | 137,298,000.00 | 25,971,586.93 | 1,364,204,332.75 | 6,039,448,095.83 | 14,626,417,637.16 |
| Item | Jan-Jun 2020 |
| Paid-in capital (share capital) | Capital reserves | Other comprehensive income | Surplus reserve | Retained earnings | Total owner's equity | |
| I. Closing balance of the same reporting period of previous year | 5,443,214,176.00 | 1,489,516,614.19 | 66,421,903.33 | 1,236,113,435.98 | 4,363,644,248.36 | 12,598,910,377.86 |
| II. Opening balance of the current year | 5,443,214,176.00 | 1,489,516,614.19 | 66,421,903.33 | 1,236,113,435.98 | 4,363,644,248.36 | 12,598,910,377.86 |
| III. YoY change (decrease is indicated by “-”) | -1,420,000.00 | -6,584,935.23 | 740,575,391.30 | 732,570,456.07 | ||
| (1) Total comprehensive income | -6,584,935.23 | 740,575,391.30 | 733,990,456.07 | |||
| (2) Capital invested and reduced by owner | -1,420,000.00 | -1,420,000.00 | ||||
| 4．Others | -1,420,000.00 | -1,420,000.00 | ||||
| IV. Closing balance of the current period | 5,443,214,176.00 | 1,488,096,614.19 | 59,836,968.10 | 1,236,113,435.98 | 5,104,219,639.66 | 13,331,480,833.93 |
III. Basic information of the Company
1. Company profile
√Applicable □Not applicable
Zhejiang China Commodities City Group Co., Ltd. (the “Company”) is acompany limited by share and was incorporated on Dec 28, 1993 in Zhejiangprovince of the People’s Republic of China. The RMB-denominated common Ashares issued by the Company got listed on Shanghai Stock Exchange on May 9,2002. The Company 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.
2. Consolidation scope of financial statements
√Applicable □Not applicable
The consolidation of financial statements is determined on the basis of control.For the changes in the current year, please refer to Note VIII. Changes inconsolidation scope
IV. Preparation basis for financial statements
1. Basis of preparation
The financial statements of the Company were prepared on a going-concernbasis. 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 EstimatesReminders on specific accounting policies and accounting estimates:
√Applicable □Not applicable
The Group has formulated specific accounting policies and accountingestimates based on the characteristics of actual production and operation, which
are mainly reflected in the bad debt provisions for receivables, inventory valuationmethods, depreciation of fixed assets, amortization of intangible assets, incomerecognition and measurement, recognition of property investments and fixed assets,and service life and residual value of fixed assets.
1. Statement on compliance with Accounting Standards for Business EnterprisesThe financial statements prepared by the Company comply with therequirements of the Accounting Standards, and truly and completely reflect theCompany’s financial conditions, operating results, changes in shareholders’ equity,cash flows and other related 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
Because of the period of the Company's business, the 12-month cycle is usedto classify current assets and current liabilities.
4. Bookkeeping currency
The Company’s functional currency is RMB.
The Group uses RMB as its functional currency and in the preparation offinancial statements. Unless specifically stated, all amounts are expressed in RMB.
The subsidiaries, joint ventures and associates of the Group determine theirfunctional currencies at their own discretion based on the main economicenvironments in their places of businesses and convert all amounts into RMB whilepreparing financial statements.
5. Accounting methods for merger of the enterprises under common control and
merger of the enterprises not under common control
√Applicable □Not applicable
Business mergers are divided into business mergers under the same controland business mergers not under the same control.
Business merger under the same control
Merger of the enterprises under common control refers to the merger of theenterprises that are under ultimate control of the same party or parties before andafter the merger and the control is not temporary. For a merger of the enterprisesunder common control, the party obtaining control over the other(s) involved in themerger on the date of merger is the merging party and the other(s) is(are) themerged party. The merger date refers to the date on which the merging partyactually 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 the
capital reserve shall be adjusted; if the share capital premium is not sufficient toabsorb the difference, the retained earnings shall be adjusted.
Mergers of the enterprises not under common controlMerger of the enterprises not under common control refers to the merger of theenterprises that are not under ultimate control of the same party or parties beforeand after the merger. For a merger of the enterprises not under common control,the party obtaining control over the other(s) involved in the merger on the date ofacquisition is the acquirer and the other(s) is(are) the acquiree. The acquisition daterefers to the date on which the acquirer actually obtains control of the acquiree.The acquiree’s identifiable assets, liabilities and contingent liabilities obtainedfrom the merger of the enterprises not under common control are measured at theirfair values on the date of acquisition.If the sum of the fair value of the consideration paid for the merger (or fair valueof the equity securities issued) and the fair value of the acquiree’s equity heldbefore the date of acquisition is higher than the share in the fair value of theacquiree’s identifiable net assets acquired from the merger, the difference betweenthem is recognized as goodwill, which will be subsequently measured by the costless accumulated impairment loss. If the sum of the fair value of the considerationpaid for the merger (or fair value of the equity securities issued) and the fair value ofthe acquiree’s equity held before the date of acquisition is lower than the share inthe fair value of the acquiree’s identifiable net assets acquired from the merger, themeasurement of the fair value of the acquiree’s identifiable assets, liabilities andcontingent liabilities, the fair value of the consideration paid for the merger (or fairvalue of the equity securities issued) and the fair value of the acquiree’s equity heldbefore the date of acquisition will be reviewed, and if the sum of the fair value of theconsideration paid for the merger (or fair value of the equity securities issued) andthe fair value of the acquiree’s equity held before the date of acquisition is still lowerthan the share in the fair value of the acquiree’s identifiable net assets acquiredfrom the merger after such review, the difference will be recognized in the profit orloss for the current period.For mergers of the enterprises not under common control that are executedthrough multiple transactions, the long-term equity investment of the acquireebefore the date of acquisition shall be re-measured based on the fair value thereofon the date of acquisition and any difference between the fair value and book valuethereof shall be recognized in the profit or 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 gains or losses, othercomprehensive income and profit distribution shall be recognized in the profit orloss 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 ofcontrol, including those of the Company and all of its subsidiaries. Subsidiaries referto the entities controlled by the Company (including the severable parts ofenterprises and invested entities, and the structured entities controlled by theCompany).
In the preparation of consolidated financial statements, the subsidiaries adoptthe same accounting year and accounting policies as those adopted by theCompany. Assets, liabilities, equity, income, expenses and cash flows generatedfrom all deals between companies within the Group are fully offset at the time ofmerger.If the amount of loss for the current period attributable to the minorityshareholders of a subsidiary exceeds the minority shareholders’ share in theopening balance of shareholders’ equity in the subsidiary, the excess will still berecognized against minority interest.For a subsidiary acquired through a business merger not under the samecontrol, 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,the operating 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 thechanges in related facts and circumstances, the Group will re-evaluate whether tocontrol the investee.
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 itsshare in the joint operation: assets held individually by it and assets held jointlybased on its share; liabilities assumed individually by it and liabilities assumedjointly based on its share; revenue from the sale of its share in the output of the jointoperation; revenue from the sale of the output of the joint operation based on itsshare; expenses incurred individually by it and expenses incurred by the jointoperation based on its share.
8. Standard for determining cash and cash equivalents
Cash equivalents refer to the short-term (generally three months from the dateof purchase) and highly liquid investments that are readily convertible to knownamounts of cash and have a very low risk of change in value.
9. Foreign currency transactions and translation of foreign currency financial
statements
√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 or loss for the current period, except for thedifference arising from the special foreign currency borrowing relating to theacquisition and construction of the assets qualified for capitalization, which will betreated based on the principles for the capitalization of borrowing expenses. Theforeign currency non-monetary items measured by historical cost are alsotranslated according to the spot exchange rate on the date of transaction, withoutchanging the functional currency amounts thereof. The foreign currencynon-monetary items measured by fair value are translated according to the spotexchange rate on the fair value determination date and the difference arisingtherefrom is recognized in the profit or loss or other comprehensive income for thecurrent period based on the nature of the items.
The Group translates the functional currency of its foreign business into RMBwhile preparing the financial statements. The assets and liabilities items in thebalance sheet are translated according to the spot exchange rate on the balancesheet date, the shareholders’ equity items are translated according to the spotexchange rate at the occurrence of the items except for “undistributed profits”;revenue and expenses items in the income statement are translated according tothe average exchange rate during the period in which the transaction happens. Thetranslation differences of foreign currency statements arising from the abovetranslations are recognized as other comprehensive income. For the disposal offoreign business, other comprehensive income relating to the foreign business isrecognized in the profit or loss of the disposal for the current period and iscalculated pro rata for partial disposal.
The foreign currency cash flow and cash flow of foreign subsidiaries aretranslated according to the spot exchange rate on the occurrence date of cashflow/average exchange rate during the period in which the cash flow occurs. Theamount of impact of the changes in exchange rate on cash is separately stated inthe cash flow 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 instruments
The Group recognizes a financial asset or financial liability at the time ofbecoming a party to a financial instrument contract. The Group will derecognize afinancial asset (or a part of the financial asset or a part of a group of similar financialassets), i.e. writing off the asset from its account and balance sheet, if:
(1) the right to collect cash flow from the financial asset has expired;
(2) The right to collect cash flows of financial assets has been transferred, orthe obligation to pay the collected cash flows in full and in time to a third party underthe “handover agreement” has been undertaken; and (a) all risks and rewards in theownership of the financial assets have been substantially transferred, or (b) almostall risks and rewards in the ownership of the financial asset have been neithertransferred nor retained, but control of the financial asset has been waived.If a financial liability has been fulfilled, revoked or expired, it will bederecognized. If an existing financial liability is replaced by the same creditor withanother financial liability under substantially different terms or the terms of theexisting liability are substantially modified in whole, the existing liability will bederecognized and the new liability will be recognized, and the difference will berecognized in the profit or 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 assetsand the features of the contractual cash flow of financial assets, the Group’sfinancial assets are classified at initial recognition into the financial assets that aremeasured by fair value and of which the changes in fair value are recognized in theprofit or loss for the current period, the financial assets measured by amortized costand the financial assets that are measured by fair value and of which the changes infair value are recognized in other comprehensive income.If a financial asset is measured by fair value at initial recognition, but theaccounts receivable or notes receivable from the sale of goods or rendering ofservice do not include significant financing components or the financingcomponents with a term no longer than one year are not considered, the initialmeasurement will be made based on the transaction price.For the financial assets that are measured by fair value and of which thechanges in fair value are recognized in the profit or loss for the current period, therelated transaction fees will be directly recognized in the profit or 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 classification
thereof:
Investment in debt instruments measured by amortized cost
A financial asset is classified into those measured by amortized cost, if thebusiness model for the management of the asset is for the purpose of collectingcontractual cash flow; and the terms of the contract of the asset stipulate that thecash flow generated on the specific date is only the repayment of principal and thepayment of interest on the outstanding principal. The interest income of suchfinancial assets is recognized with the effective interest method, and the gains orlosses from the de-recognition, modification or impairment thereof are allrecognized in the profit or loss for the current period.
Investment in the equity instruments that are measured by fair value and
of which the changes in fair value are recognized in other comprehensive
income
The Group has irrevocably chosen to designate some non-trading equityinstrument investments as the financial assets that are measured by fair value andof which the changes in fair value are recognized in other comprehensive income.Only the related dividend income (except for the dividend income expressly actingas a recovery of investment cost) is recognized in the profit or 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 gains or losses 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 areincluded in the current profit and lossThe financial assets other than the above financial assets measured byamortized cost and the above financial assets that are measured by fair value andof which the changes in fair value are recognized in other comprehensive incomeare classified as the financial assets that are measured by fair value and of whichthe changes in fair value are recognized in the profit or loss for the current period.Those financial assets are subsequently measured by fair value and all changes inthe fair value thereof are recognized in the profit or loss for the current period.Classification and measurement of financial liabilitiesThe Group’s financial liabilities are classified at initial recognition into thefinancial liabilities that are measured by fair value and of which the changes in fairvalue are recognized in the profit or loss for the current period and other financialassets. For the financial liabilities that are measured by fair value and of which thechanges in fair value are recognized in the profit or loss for the current period, therelated transaction fees are recognized directly in the profit or loss for the currentperiod, while the related transaction fees of other financial liabilities are recognizedin the initially recognized amounts thereof.The subsequent measurement of financial liabilities depends on theclassification thereof:
Financial liabilities that are measured at fair value and whose changes
are included in the current profit and loss
The financial liabilities that are measured by fair value and of which thechanges in fair value are recognized in the profit or loss for the current periodinclude financial liabilities held for trading (including the derivative instruments asfinancial liabilities) and the liabilities that are designated at initial recognition as thefinancial liabilities that are measured by fair value and of which the changes in fairvalue are recognized in the profit or loss for the current period. The financialliabilities held for trading (including the derivative instruments as financial liabilities)are subsequently measured by fair value and all changes in the fair value arerecognized in the profit or loss for the current period.
Other financial liabilities
Those financial liabilities are subsequently measured by amortized cost withthe effective interest method.
Impairment of financial instruments
The Group has treated and recognized the impairment of the financial assetsmeasured by amortized cost based on the expected credit loss.
For the accounts receivable and contract assets without material financingcomponents, the Group uses a simplified method and measures the provision forloss based on the amount of expected credit loss during the entire term.
For financial assets other than those under above-mentioned simplifiedmeasurement method, the Group assesses whether its credit risk has increasedsignificantly since the initial recognition on each balance sheet date. If the credit riskhas not increased significantly since the initial recognition, it is in the first stage andthe Group will measure the loss provision at the amount equivalent to the expectedcredit losses in the next 12 months, and calculate the interest income based on thebook balance and the actual interest rate; if the credit risk has increasedsignificantly since the initial recognition but no credit impairment has occurred, it isin the second phase, and the Group will measure the loss provision at the amountequivalent to the expected credit loss during the entire duration, and calculates theinterest income based on the book balance and the actual interest rate; if the creditimpairment occurs after initial recognition, it is in the third stage, and the Group willmeasure the loss provision at the amount equivalent to the expected credit lossduring the entire duration and calculate the interest income based on the amortizedcost and the actual interest rate.The Group evaluates the expected credit losses of financial instruments on theindividual and group bases. It evaluates the expected credit loss of accountsreceivable by taking into account the credit risk characteristics of different clientsand based on the account aging-based asset groups.For the disclosure of the Group’s criteria for a significant increase in credit risk,definition of the assets whose credit has been impaired and assumptions for themeasurement of expected credit loss, please refer to Notes X. 2.When the Group no longer reasonably expects that it can recover thecontractual cash flow of a financial asset in whole or in part, it will directly writedown the book balance 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. Risks Associated with 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. Risks Associated with Financial Instruments
15. Inventories
√Applicable □Not applicable
Inventory includes raw materials, work-in-progress materials, finished goods,real estate development costs and real estate development products. Inventory isinitially measured by cost. The costs of inventory except development costs anddevelopment products include the procurement cost, processing cost and othercosts. The actual costs of items out of inventory are determined with the weightedaverage method. Work-in-progress materials include low-value consumables andpackages, which are amortized with the one-off amortization method.
Development costs refer to the properties that have not been completed andare developed 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 relateddevelopment product, the facilities will be allocated to and recognized in thedevelopment cost of related development project based on the floor space of theproject after final accounting of the facilities upon completion; if the public auxiliaryfacilities are completed later than the related development product, they will berecognized in the development cost of related development project based on thepredicted cost of the public auxiliary facilities.
Hotel, catering and fresh goods inventories are subject to onsite inventory,while other inventories are subject to perpetual inventory.
On the balance sheet date, inventory is measured by cost and net realizablevalue, whichever is lower. If the cost is higher than the net realizable value,provision will be made for inventory depreciation, which will be recognized in theprofit or loss for the current period. If the impact of the previous provision forinventory depreciation has disappeared and the net realizable value of the inventorybecomes higher than the book value thereof, the amounts written down previouslyin the original provision for inventory depreciation will be restituted and recognizedin the profit or 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 balancesheet based on the relationship between performance obligations and customers’payments. The Group offsets the contractual assets and contractual liabilities underthe same contract as a net amount.
A contractual asset refers to the right to receive a consideration for the transferof goods 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 contract
assets
□Applicable √Not applicable
17. Held-for -sale assets
□Applicable √Not applicable
18. Debt investments
Determination and accounting treatment of the expected credit loss of debt investments
□Applicable √Not applicable
19. Other debt investments
Determination and accounting treatment of the expected credit loss of other debtinvestments
□Applicable √Not applicable
20. Long-term receivables
Determination and accounting treatment of the expected credit loss of long-termreceivables
□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 costat the 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 the
acquisition 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 equity securities,its initial investment cost is the fair value of the equity securities offered.For the accounting of the long-term equity investment through which theCompany can exercise control over the investees, the Company adopts the costmethod in individual financial statements. Control refers to the power over aninvestee, with which the investor enjoys variable return by participating in theinvestee’s related activities and is able to exercise its power over the investee toaffect the amount of return.
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,the long-term equity investment will be measured with the equity method. Jointcontrol refers to joint control over an arrangement in accordance with relatedagreements, and decisions on the activities relating to the arrangement shall bemade only after the parties sharing the control reach an agreement. Significantinfluence refers to the power over the decision-making on the financial affairs andbusiness policies of the investee, but the investor does not have control or jointcontrol with others over the formulation of those policies.
In the equity method, if the initial investment cost of long-term equityinvestment is higher than the share enjoyed by the Group in the fair value of theinvestee’s identifiable net assets at investment, the excess will be recognized in theinitial investment cost of the long-term equity investment; if the initial investmentcost of long-term equity investment is lower than the share enjoyed by the Group inthe fair value of the investee’s identifiable net assets at investment, the differencewill be recognized in the profit or loss for the current period and the cost of thelong-term equity investment will be adjusted simultaneously.
In the equity method, after long-term equity investment is acquired, theinvestment gains or losses and other comprehensive income shall be recognizedand the book value of the long-term equity investment shall be adjusted based onthe share in the net gains or losses and other comprehensive income realized bythe investees to be enjoyed or assumed. The share in the investee’s net gains orlosses to be enjoyed shall be determined based on the fair value of the investee’ s
identifiable assets at the acquisition of investment, according to the Group’saccounting policies and accounting periods and after net profits of the investee areadjusted with the portion of gains or losses from the internal transactions with itsassociates and joint ventures that is attributable to the investor based on the shareto be enjoyed by it (but if the loss from internal transactions falls in the assetsimpairment loss, it shall be recognized in full) offset, except for the invested andsold assets that constitute businesses. The book value of long-term equityinvestment shall be reduced according to the share to be enjoyed by it in the profitsor cash dividend declared by the investees to be distributed. For an investee’s netlosses recognized by the Group, the book value of the long-term equity investmentand other long-term equity that substantially constitute net investment in theinvestee shall be written down to zero at maximum, except for the extra losses forwhich the Group is liable. For the investee’s other changes in shareholders’ equityother than net gains or losses, other comprehensive income and profit distribution,the book value of the long-term equity investment will be adjusted and the changeswill be recognized in the shareholders’ equity.For the disposal of long-term equity investment, the difference between thebook value of long-term equity investment and the proceeds actually received fromthe disposal 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 gains or losses, other comprehensive income andprofit distribution will be recognized in the profits or loss for the current period in full;if the equity method is still adopted, the original related other comprehensiveincome measured with the equity method will be accounted on the same basis asthat for the direct disposal of related assets or liabilities by the investees andrecognized in the profits or loss for the current period pro rata, and theshareholders’ equity recognized due to the investees’ other changes inshareholders’ equity than net gains or losses, other comprehensive income andprofit distribution will be recognized in the profit or loss for the current period prorata.
Where the Company loses control over a subsidiary due to step-by-stepdisposal of its equity investment in the subsidiary through multiple transactions, ifthe transactions constitute a package of deals, each transaction will be accountedas a transaction that disposes of the subsidiary and causes the loss of control overthe subsidiary; however, the difference between the proceeds from each disposaland the 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 loss
of control and its book value will be recognized in the profit or loss for the currentperiod.
22. Investment real estate
(1). Under cost measurement model
Depreciation or amortization methods
A 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 a property investment will be recognized in the cost of the propertyinvestment if the economic benefits relating to the asset are very likely to flow in andthe cost thereof can be measured reliably. Otherwise, they will be recognized in theprofit or loss for the current period at the time of being incurred.
The Group subsequently measures its property investments with the costmodel. The depreciation/amortization of property investments is calculated on astraight line basis. The service life, estimated net residual value and annualdepreciation rate of property investments are as follows:
| Type | 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 | Residual value rate | Annual depreciation rate |
| years) | ||||
| 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 for the assets qualified for capitalization shall cease beingcapitalized when the assets reach the predetermined ready-for-use or sale statusafter the acquisition, construction or production. The borrowing costs incurredsubsequently will be recognized in the profit or loss for the current period.During capitalization, the amount of interest to be capitalized during eachaccounting period is determined as follows:
(1) For special borrowings, the amount of interest to be capitalized is theinterest expenses actually incurred during the current period less the temporarydeposits interest income or investment income.
(2) For occupied general borrowings, it is calculated and determined based onthe weighted average of asset expenditures of the accumulated asset expenditureexceeding the portion of special borrowings multiplied by the weighted averageinterest rate of the occupied general borrowings. If an asset qualified forcapitalization is interrupted abnormally for more than three months during itsacquisition, construction or production except due to the necessary procedures for itto reach the predetermined ready-for-use or sale status, the capitalization of itsborrowing costs will be suspended. The borrowing costs incurred during theinterruption will be recognized as expenses and in the profit or loss for the currentperiod until the acquisition, construction or production of the asset is resumed.
26. Biological assets
□Applicable √Not applicable
27. Oil and gas assets
□Applicable √Not applicable
28. Right-of-use assets
√Applicable □Not applicable
On the commencement date of the lease term, the Group recognizes its right touse the leased assets during the lease term as the right to use them, including: theinitial measurement amount of the liabilities of the lease; The amount of the leasepayment paid on or before the commencement date of the lease term, where thereis a lease incentive, shall be deducted from the amount of the lease incentivealready enjoyed; Initial direct costs incurred by lessee; Costs expected to beincurred by the Lessee to disassemble and remove the leased asset, restore theleased asset to the site, or restore the leased asset to the state agreed upon in thelease terms. The Group subsequently shall adopt the straight-line method for thedepreciation of the usufruct assets. Where the ownership of the leased asset canbe reasonably determined at the end of the lease term, the Group shall takedepreciation during the remaining service life of the leased asset. Where it is notreasonably certain that ownership of the leased asset will be acquired at the end ofthe lease term, the Group shall make depreciation within the shorter period of thelease term or the remaining service life of the leased asset.
When the Group measures the lease liabilities again according to the presentvalue of the changed lease payment amount and adjusts the book value of the rightto use assets accordingly, if the book value of the right to use assets has beenreduced to zero, but the lease liabilities still need to be further reduced, the Groupshall record the remaining amount into the current profit and loss.
29. Intangible assets
(1). Measurement method, service life and impairment test
√Applicable □Not applicable
Intangible assets will be recognized only if the economic benefits relatingthereto are 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 intangible assets is determined according to the periodduring which they can bring economic benefits to the Group. If the period duringwhich they can bring economic benefits to the Group cannot be determined, theywill be classified as intangible assets 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 |
The Group determines the impairment of the assets other than inventory,deferred income 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 theasset less the disposal expenses or the present value of the expected future cashflows of the asset, whichever is higher. The Group estimates the recoverable valueof each asset. For an asset whose recoverable value is hard to be estimated, theGroup estimates the recoverable value of the assets group which the asset belongsto. An assets group is identified based on whether the main cash inflows from theGroup are 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 or loss for the current period;meanwhile, it will make provision for the impairment thereof. The above assetsimpairment loss will not be reversed during the subsequent accounting periods.
31. Long-term deferred expenses
√Applicable □Not applicable
Long-term prepaid expenses are amortized with the straight-line method andthe amortization periods are as follows:
| Type | Amortization period |
| Architectural ornaments of buildings | 3-5 years |
| Advertising facilities | 3-5 years |
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.
(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 or loss for the current period on theearlier date below: the date when the Group cannot unilaterally withdraw theseverance benefits provided as a result of the employment termination plan ordownsizing proposal; or the date when the Group recognizes the costs or expensesrelating to the reorganization involving the payment of severance benefits.
(4)、Accounting treatment of other long-term employee benefits
□Applicable √Not applicable
34. Lease liabilities
√Applicable □Not applicable
At the commencement date of the lease period, the Group recognizes the presentvalue of the outstanding lease payments as a lease liability, except for short termand low value leases. In calculating the present value of the lease payments, theGroup uses the lease embedded interest rate as the discount rate; If the inherentinterest rate of the lease cannot be determined, the lessee's incremental borrowingrate shall be used as the discount rate. The Group calculates the interest expenseof the lease liability in each period of the lease term in accordance with the fixedcyclical interest rate and records it into the current profit and loss, except asotherwise stipulated in the cost of the relevant assets. The variable lease paymentnot included in the measurement of lease liabilities shall be recorded into the profitand loss of the current period when it actually occurs, except for those included inthe cost of related assets as otherwise stipulated.After the lease term begins, in the future when substantial changes occurred in thefixed payment, the guaranteed residual value is expected to cope with the amountof change, is used to determine the lease payment ratio index or change, calloptions, renewal options or terminate the option evaluation results or the actualexercise changes, after the Group according to the change of the present value ofthe lease payments to measure lease liability.
35. Estimated liabilities
√Applicable □Not applicable
Except for the contingent considerations and contingent liabilities assumed inthe mergers of enterprises not under common control, an obligation relating tocontingent matters will be recognized by the Group as estimated liabilities if meetingthe following requirements simultaneously:
(1) The obligation is a current obligation assumed by the Group;
(2) The performance of the obligation may result in the outflow of economicbenefits from the Group;
(3) The amount of the obligation can be measured reliably.
Estimated liabilities are initially measured based on the best estimate of theexpenses required for the performance of related current obligations, and the risks,uncertainties and time value of money relating to the contingent matters are alsofactored in. The book value of estimated liabilities is reviewed on each balancesheet date. If any conclusive evidence indicates that the book value cannot reflectthe current best estimate, the book value will be adjusted based on the current bestestimate.
36. Share-based payment
√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 waiting period,the Group will, based on the best estimate of the number of exercisable equityinstruments, include the services acquired in the current period, as relevant costs orexpenses based on the fair value on the grant date, and increase the capitalreserve accordingly .
None of cost or expense shall be recognized for a share payment that cannotbe exercised 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 anaccelerated exercise on the cancellation day, and the unrecognized amount shallbe recognized immediately. If an employee or other party has option to satisfy thenon-exercising conditions but fails to satisfy within the waiting period, it shall betreated as cancellation of equity-settled share-based payment. However, if a newequity instrument is granted and if it is determined that the new equity instrumentgranted is used to replace the canceled equity instrument on the grant date of thenew equity 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
The Group recognizes incomes when it has fulfilled its performance obligationsin the contract, that is, the customer has acquired the control over the relevantgoods or services. The acquisition of the control over related goods or servicesmeans the ability to control the use of the goods or the provision of the service andobtain almost all of the economic benefits from them.Commodity sales contractsCommodity sales contracts between the Group and customers usually onlyinclude performance obligations for the transferred commodities. The Groupgenerally recognizes incomes on the basis of comprehensive consideration of thefollowing factors, at the time when the customer obtains control of the relevantproducts: the acquisition of the current right to receive payment for the commodities,the transfer of the major risks and rewards in the ownership of the commodities, thetransfer of the legal ownership of the commodities, the transfer of the physicalassets of the commodities, and the acceptance of the commodities by thecustomer.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 supportingservicesSince customers obtain and consume the economic benefits brought about bythe Group’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 business
Since customers obtain and consume the economic benefits brought about bythe Group’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 hotel
accommodation 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 cateringservices, the Group prices hotel catering services separately, and uses thecompletion of hotel catering services as the point of income recognition.
Fixed -time paid funding servicesSince customers obtain and consume the economic benefits brought about bythe Group’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 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.
(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 canbe received. If a government grant is a monetary asset, it should be measured atthe amount 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 toacquire or construct or otherwise form long-term assets will be deemed as anasset-related government grant; if no government documents have expressprovisions, the grants that are used to acquire or construct or otherwise formlong-term assets will be deemed as asset-related government grants and others asincome-related government grants.The Group treats the account of government grants with the total amountmethod.The income-related government grants that are used to compensate for therelated costs, expenses or losses during the subsequent periods are recognized asdeferred income and will be recognized in the profit or loss or against the relatedcosts for the period when the related costs, expenses or losses are recognized. Theincome-related government grants used to compensate for the related costs,
expenses or losses that have been incurred are directly recognized in the profit orloss or against the related costs for the current period.The asset-related government grants shall be used to offset the book value ofrelated assets; or recognized as deferred income, and included in profit and loss instages under a reasonable and systematic method during the service 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 service 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 forthe income tax arising from the adjustment of goodwill caused by the mergers ofenterprises or the income tax that is related to the transactions or matters directlyrecognized in shareholders’ equity, which are recognized in the shareholders’equity, income tax will be recognized in the profit or loss for the current period asincome tax expenses or income.The Group measures the current income tax liabilities or assets formed duringthe current period and the previous periods by the estimated amount of income taxto be paid or refunded as calculated in accordance with the tax law.The Group recognizes deferred income tax with the balance sheet liabilitymethod based on the temporary difference between the book value of assets andliabilities on the balance sheet date and the tax base and that between the bookvalue of the items that have not been recognized as assets and liabilities but whosetax base can 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,joint ventures 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 differences are generated in the followingtransactions: The transaction is not a business combination, and when theoccurrence of the transaction affects neither accounting profits nor taxable incomeor deductible losses.
(2) For deductible temporary differences related to investments in subsidiaries,joint ventures and associates, if all of the following conditions are satisfied
simultaneously, the corresponding deferred income tax assets are recognized: thetemporary differences are likely to be reversed in the foreseeable future, and it islikely to obtain taxable income that can be used to offset the deductible temporarydifferences in the future.The Group measures, on the balance sheet date, the deferred income taxassets and liabilities based on the applicable tax rate for the period when the assetsare expected to be recovered or the liabilities are expected to be paid off, inaccordance with the tax law, which will also reflect the impact of the way of theexpected recovery of assets or repayment of liabilities on the income tax on thebalance sheet date.The Group reviews the book value of deferred income tax assets on thebalance sheet date. If it is very likely to be unable to acquire adequate taxableincome to be offset against the benefits of deferred income tax assets in the future,the book value of deferred income tax assets will be written down. On the balancesheet date, the Group re-evaluates the unrecognized deferred income tax assetsand recognizes the same to the extent that it is very likely to acquire adequatetaxable income to reverse all or part of the deferred income tax assets.If all the following requirements are met, deferred income tax assets andliabilities will be presented in net amount after offsetting: the Group has the legalright to settle the current income tax assets and liabilities in net amount; thedeferred income tax assets and liabilities are related to the income tax levied by anidentical tax authority on an identical taxpayer, or are related to the income taxlevied by an identical tax authority on different taxpayers, but during each importantperiod when the deferred income tax assets and liabilities are reversed, theinvolved taxpayers intend to settle the current income tax assets and liabilities in netamount or acquire assets or pay off debts simultaneously.
42. Lease
(1). Accounting treatment of operating lease
√Applicable □Not applicable
Original lease rulesThe leases that substantially transfer all risks and compensations in connectionwith the 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 ofassets or the profit or loss for the current period with the straight-line method duringeach period of the lease terms; contingent rentals are recognized in the profit orloss for the period at the time of being actually incurred.The Group as the lessor to operating leasesThe rental income under operating leases is recognized in the profit or loss forthe current period with the straight-line method during each period of the leaseterms; contingent rentals are recognized in the profit or loss for the period at thetime of being actually incurred.
Rental concessions triggered by the COVID-19 epidemicFor rental reductions, such as rental reductions and payment postponement onthe existing 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 basicallyunchanged from 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 is determined that there are no major changes in other terms and conditions of thelease.
As a tenant
For 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 lessor
For an operating lease, the Group continues to recognize the original contractrental as lease income in the same way as before the reduction; if rental reductionor exemption 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
Original lease rules
For an asset leased under a finance lease, the entry value of the leased asseton the starting date of the lease team is the fair value of the asset on the startingdate of the lease or the present value of the minimum lease payment, whichever islower; and the amount of the minimum lease payment is taken as the entry value oflong-term accounts payable; the difference between them is unrecognized financingexpenses and will be amortized with the effective interest method during eachperiod of the lease term. Contingent rentals are recognized in the profit or loss forthe period at the time of being actually incurred.
(3). Determination and accounting treatment of leases under the new lease standards
√Applicable □Not applicable
When the Group is the lessee, it shall, on the commencement date of the lease,recognize the use-right assets and lease liabilities in addition to the short-termleases and low-value asset leases which are chosen to adopt simplified treatment.After the commencement of the lease period, the Group uses the cost model forsubsequent measurement of the right to use assets. The use right assets aredepreciation with reference to the related depreciation regulations in the“Accounting Standards for Business Enterprises No. 4—Fixed Assets”. Where theownership of the leased asset can be reasonably determined at the end of the leaseterm, the Group shall take depreciation during the remaining service life of theleased asset. Where it is not reasonably certain that ownership of the leased assetwill be acquired at the end of the lease term, the Group shall make depreciationwithin the shorter period of the lease term or the remaining service life of the leasedasset. The Group determines whether the use right assets is impaired inaccordance with the “Accounting Standards for Business Enterprises No. 8-Asset
Impairment”, and accounts for the identified impairment losses. The Groupcalculates the interest expense of the lease liability in each period of the lease termin accordance with the fixed cyclical interest rate and records it into the current profitand loss. For those that should be included in relevant assets costs in accordancewith the provisions in the “Accounting Standards for Business Enterprises No.17-Borrowing Costs” and other standards, the provisions shall be implemented.
Where the Group acts as the lessor, it shall, during each period of the leaseterm, adopt the straight line method to recognize the lease receipts from theoperating lease as rental income. Capitalizing the initial direct expenses incurred inconnection with the operating lease, apportionment during the lease term on thesame basis as the recognition of rental income, and recording them into currentprofits and losses in stages. For fixed assets in operating leased assets, the Groupadopts the depreciation policy for similar assets. Other operating leased assetsshall be amortized in a systematic and reasonable manner in accordance with theapplicable accounting standards for business enterprises for such assets. Inaccordance with the “Accounting Standards for Business Enterprises No. 8-AssetImpairment”, the Company determines whether there is any impairment of assetsunder operating lease and performs corresponding accounting treatments.
43. Other important accounting policies and accounting estimates
√Applicable □Not applicable
Distribution of profits
The Company’s cash dividend is recognized as liabilities after approval by theshareholders’ meeting.
Measurement of fair value
The 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 inthe financial statements, the levels of fair value are determined based on thelowest-level input of important significance for the overall measurement of fairvalues: Level 1 input is the unadjusted offer price for an identical asset or liabilitythat can be obtained in an active market on the measurement date; Level 2 inputsare the inputs that are directly or indirectly observable for related assets or liabilities
other than Level 1 inputs; Level 3 inputs are the inputs that are observable forrelated assets or liabilities.
On each balance date, the Group re-evaluates the assets and liabilities that arerecognized in the financial statements and keep being measured by fair value so asto determine whether to change the measurement levels of fair value.Significant accounting judgments and estimatesIn the preparation of financial statements, the management need to makejudgments, estimates and assumptions, which will affect the presented amountsand disclosure of revenue, expenses, assets and liabilities and the disclosure ofcontingent liabilities on the balance sheet date. However, the uncertainties of theseassumptions and estimates may cause material adjustment to the book value of theassets or liabilities that will be affected in the future.JudgmentsWhen applying the Group’s accounting policies, the management have madethe following judgments which have had significant influence on the amountsrecognized in the financial statements:
Operating lease—as the lessor
The 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 assets
The Group classifies the buildings and structures leased out other than for themain businesses 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 enterprises
When 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 model
The classification of financial assets at initial recognition depends on theGroup’s business model for the management of financial assets. When judging thebusiness model, the Group factors in the enterprise evaluation, the way of reportingfinancial assets performance to key management personnel, the risks affecting theperformance of financial assets, the way of managing financial assets and the wayof related business management personnel obtaining remunerations. Whenassessing whether to aim at the collection of contractual cash flow, the Groupneeds to analyze the reasons, time, frequency and value for sale of the financialassets to be sold before the Maturity date s thereof.
Characteristics of contractual cash flow
The 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 (excludinggoodwill)The Group determines, on the balance sheet date, whether the non-currentassets other than financial assets have a sign of being impaired. For a non-currentasset other than financial asset, if it is indicated that its book value cannot berecovered, an impairment test will be made. When the book value of an asset or agroup of assets is higher than its recoverable value, i.e. fair value less the disposalexpenses or the present value of expected future cash flow, whichever is higher,the asset or group has been impaired. For the fair value less the disposal expenses,the Group refers to the agreed selling price or observable market price of the similarasset in a fair transaction, less the cost increase directly attributable to the disposalof the asset. When predicting the present value of future cash flows, themanagement must estimate the expected future cash flows of the asset or group ofassets and select 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 incometo be offset against the deductible losses, the Group shall recognize deferredincome tax assets in connection with the outstanding deductible losses. Thisrequires the management to use lots of judgments to estimate the acquisition timeand amount of the taxable income to be acquired in the future to determine theamount of deferred income tax assets to be recognized, in consideration of the taxpayment planning 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 2018, the Ministry of Finance revised and issued the “Accounting Standards for Business Enterprises No. 21-Leases” (Cai Kuai [2018] No. 35) (hereinafter collectively referred to as the “New Standard for Lease”). The company will disclose the accounting statements according to the requirements of the New Standard for Lease. | Changes in statutory accounting policies | See other notes for details |
financial statement items is: On January 1, 2021, the consolidated balance sheetreduced the prepayment by RMB 13,149,903.82, and increased the use rightassets and lease liabilities by RMB 185,837,176.77 and RMB 172,687,272.95respectively.
(2). Changes in important accounting estimates
□Applicable √Not applicable
(3). The adjustment of the current opening financial statements for the firstimplementation of the New Standard for Lease from 2021
√Applicable □Not applicable
Consolidated Balance Sheet
Unit: RMB
| Item | December 31, 2020 | January 1, 2021 | Adjustment |
| Current assets: | |||
| 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 | |
| Prepayments | 105,187,528.26 | 92,037,624.44 | -13,149,903.82 |
| Other receivables | 2,708,478,136.25 | 2,708,478,136.25 | |
| In which: interest receivable | 121,401,210.48 | 121,401,210.48 | |
| Inventories | 1,329,467,728.17 | 1,329,467,728.17 | |
| Other current assets | 179,724,694.17 | 179,724,694.17 | |
| Total current assets | 10,140,787,230.23 | 10,127,637,326.41 | -13,149,903.82 |
| Non-current assets: | |||
| Long-term receivables | 126,756,573.81 | 126,756,573.81 | |
| Long-term equity investment | 3,832,897,502.71 | 3,832,897,502.71 | |
| 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 | |
| Investment real estate | 1,960,426,291.73 | 1,960,426,291.73 | |
| Property, plant and equipment | 5,234,293,786.87 | 5,234,293,786.87 | |
| Construction in progress | 982,891,877.14 | 982,891,877.14 | |
| Right-of-use assets | 185,837,176.77 | 185,837,176.77 | |
| Intangible assets | 3,900,780,981.92 | 3,900,780,981.92 | |
| Development expenditures | 22,223,061.09 | 22,223,061.09 | |
| Long-term deferred expenses | 110,728,723.36 | 110,728,723.36 | |
| Deferred tax assets | 99,664,328.84 | 99,664,328.84 | |
| Other non-current assets | 152,495,196.56 | 152,495,196.56 | |
| Total non-current assets | 18,609,339,916.63 | 18,795,177,093.40 | 185,837,176.77 |
| Total assets | 28,750,127,146.86 | 28,922,814,419.81 | 172,687,272.95 |
| Current liabilities: | |||
| Short-term loans | 1,257,179,389.40 | 1,257,179,389.40 | |
| Accounts payable | 636,463,802.23 | 636,463,802.23 | |
| Advances from customers | 112,752,897.25 | 112,752,897.25 | |
| Contract liabilities | 2,442,211,788.88 | 2,442,211,788.88 | |
| Employee compensations payable | 161,498,997.53 | 161,498,997.53 | |
| Taxes payable | 495,400,499.73 | 495,400,499.73 | |
| Other payables | 1,646,345,561.62 | 1,646,345,561.62 | |
| Non-current liabilities due within one year | 1,315,026,574.4 | 1,315,026,574.4 | |
| Other current liabilities | 3,023,608,041.68 | 3,023,608,041.68 | |
| Total current liabilities | 11,090,487,552.75 | 11,090,487,552.75 | |
| Non-current liabilities: | |||
| Long- term loans | 282,000,000.00 | 282,000,000.00 | |
| Bonds payable | 3,552,161,709.68 | 3,552,161,709.68 | |
| Lease liabilities | 172,687,272.95 | 172,687,272.95 | |
| Estimated liabilities | 110,620,306.10 | 110,620,306.10 | |
| Deferred incomes | 26,545,277.30 | 26,545,277.30 | |
| Deferred income tax liabilities | 113,602,923.79 | 113,602,923.79 | |
| Total non-current liabilities | 4,084,930,216.87 | 4,257,617,489.82 | 172,687,272.95 |
| Total Liabilities | 15,175,417,769.62 | 15,348,105,042.57 | 172,687,272.95 |
| Owners' equity (or shareholders' equity): | |||
| Paid-in capital (or equity) | 5,489,914,176.00 | 5,489,914,176.00 | |
| Capital reserves | 1,594,906,524.67 | 1,594,906,524.67 | |
| Less: treasury stocks | 137,298,000.00 | 137,298,000.00 | |
| Other comprehensive income | 78,149,661.33 | 78,149,661.33 | |
| Surplus reserve | 1,364,257,808.58 | 1,364,257,808.58 | |
| Retained earnings | 5,168,298,206.50 | 5,168,298,206.50 | |
| Total owner’s equity (or shareholders’ equity) attributable to | 13,558,228,377.08 | 13,558,228,377.08 | |
| the parent company | |||
| Minority shareholders' equity | 16,481,000.16 | 16,481,000.16 | |
| Total owner’s equity (or shareholders’ equity) | 13,574,709,377.24 | 13,574,709,377.24 | |
| Total liabilities and owners’ equity (or shareholders’ equity) | 28,750,127,146.86 | 28,922,814,419.81 | 172,687,272.95 |
| Item | December 31, 2020 | January 1, 2021 | Adjustment |
| Current assets: | |||
| Monetary capital | 5,435,867,497.50 | 5,435,867,497.50 | |
| Held-for-trading financial assets | 6,632.72 | 6,632.72 | |
| Accounts Receivable | 14,671,577.47 | 14,671,577.47 | |
| Prepayments | 29,452,445.04 | 29,371,534.38 | -80,910.66 |
| Other receivables | 2,651,640,610.06 | 2,651,640,610.06 | |
| In which: interest receivable | 121,401,210.48 | 121,401,210.48 | |
| Inventories | 10,144,965.06 | 10,144,965.06 | |
| Other current assets | 3,082,340,716.76 | 3,082,340,716.76 | |
| Total current assets | 11,224,124,444.61 | 11,224,043,533.95 | -80,910.66 |
| Non-current assets: | |||
| Long-term receivables | 61,250,000.00 | 61,250,000.00 | |
| Long-term equity investment | 6,083,135,428.02 | 6,083,135,428.02 | |
| Other equity instruments investment | 662,256,342.79 | 662,256,342.79 | |
| Other non-current financial assets | 266,722,811.41 | 266,722,811.41 | |
| Investment real estate | 1,501,734,504.79 | 1,501,734,504.79 | |
| Property, plant and equipment | 4,444,239,239.28 | 4,444,239,239.28 | |
| Construction in progress | 856,248,099.10 | 856,248,099.10 | |
| Right-of-use assets | 716,801.15 | 716,801.15 | |
| Intangible assets | 3,777,092,772.41 | 3,777,092,772.41 | |
| Long-term deferred expenses | 58,705,952.97 | 58,705,952.97 | |
| Deferred tax assets | 85,739,381.21 | 85,739,381.21 | |
| Total non-current assets | 17,797,124,531.98 | 17,797,841,333.13 | 716,801.15 |
| Total assets | 29,021,248,976.59 | 29,021,884,867.08 | 635,890.49 |
| Current liabilities: | |||
| Short-term loans | 1,257,179,389.40 | 1,257,179,389.40 | |
| Accounts payable | 444,254,309.61 | 444,254,309.61 | |
| Advances from customers | 97,380,931.49 | 97,380,931.49 | |
| Contract liabilities | 2,283,994,068.70 | 2,283,994,068.70 | |
| Employee compensations payable | 131,469,702.81 | 131,469,702.81 | |
| Taxes payable | 546,100,633.28 | 546,100,633.28 | |
| Other payables | 1,333,312,494.36 | 1,333,312,494.36 | |
| Non-current liabilities due within one year | 1,315,026,574.43 | 1,315,026,574.43 | |
| Other current liabilities | 3,556,664,822.79 | 3,556,664,822.79 | |
| Total current liabilities | 10,965,382,926.87 | 10,965,382,926.87 | |
| Non-current liabilities: | |||
| Long- term loans | 282,000,000.00 | 282,000,000.00 | |
| Bonds payable | 3,552,161,709.68 | 3,552,161,709.68 | |
| Lease liabilities | 635,890.49 | 635,890.49 | |
| Estimated liabilities | 110,620,306.10 | 110,620,306.10 | |
| Deferred incomes | 26,545,277.30 | 26,545,277.30 | |
| Deferred income tax liabilities | 69,623,249.14 | 69,623,249.14 | |
| Total non-current liabilities | 4,040,950,542.22 | 4,041,586,432.71 | 635,890.49 |
| Total Liabilities | 15,006,333,469.09 | 15,006,969,359.58 | 635,890.49 |
| Owners' equity (or shareholders' equity): | |||
| Paid-in capital (or equity) | 5,489,914,176.00 | 5,489,914,176.00 | |
| Capital reserves | 1,833,256,515.22 | 1,833,256,515.22 | |
| Less: treasury stocks | 137,298,000.00 | 137,298,000.00 | |
| Other comprehensive income | 81,473,183.84 | 81,473,183.84 | |
| Surplus reserve | 1,364,204,332.75 | 1,364,204,332.75 | |
| Retained earnings | 5,383,365,299.69 | 5,383,365,299.69 | |
| Total owner’s equity (or shareholders’ equity) | 14,014,915,507.50 | 14,014,915,507.50 | |
| Total liabilities and owners’ equity (or shareholders’ equity) | 29,021,248,976.59 | 29,021,884,867.08 | 635,890.49 |
| Tax variety | Base of taxation | Tax rate |
| VAT | Sale of goods or rendering of taxable service | The Company is a general taxpayer. The taxable income is calculated at 13%, 9% and 6% tax rates as output tax, and the value-added tax is calculated and paid on the basis of the difference after deduction of the input tax allowed to be deducted in the current period. In addition, for the sale of the self-developed old real estate projects (the contract start date indicated in the “Construction Project Construction Permit” is before April 30, 2016) and the lease of the real estate acquired before April 30, 2016, the simplified tax calculation method shall apply at the rate of 5%. |
| Urban maintenance | Indirect tax actually paid | 5% or 7% |
| and construction tax | ||
| Corporate income tax | Domestic enterprises should pay 25% of the taxable income of corporate income tax; Yiwu China Commodities City (Hong Kong) International Trade Co., Ltd. was registered in Hong Kong Special Administrative Region, so it is subject to the Hong Kong income tax rate, 16.50%; BETTER SILK ROAD FZE was registered in Dubai and no corporate income tax is levied. | |
| 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 | 0 |
3. Others
□Applicable √Not applicable
VII. Notes to items in consolidated financial statements
1. Monetary capital
√Applicable □Not applicable
Unit: RMB
| Item | Closing balance | Opening balance |
| Cash in stock | 203,319.92 | 292,999.29 |
| Bank Deposits | 3,019,405,717.31 | 4,812,189,759.31 |
| Other monetary capital | 26,409.90 | 800,160,173.61 |
| Total | 3,019,635,447.13 | 5,612,642,932.21 |
| In which: amount deposited abroad | 27,247,689.61 | 25,679,209.72 |
| Item | Closing balance | Opening balance |
| Financial assets that are measured at fair value and whose changes are included in the current profit and loss | 57,568,002.17 | 51,712,734.31 |
| Among them, | ||
| Bank financing products | 8,500,000.00 | - |
| Equity instrument investment | 49,068,002.17 | 51,712,734.31 |
| Total | 57,568,002.17 | 51,712,734.31 |
(2). Notes receivable having been pledged by the Company as of the close of the
reporting period
□Applicable √Not applicable
(3). Notes receivable having been endorsed or discounted by the Company as of the
close of the reporting period and having not been due as of the balance sheetdate
□Applicable √Not applicable
(4). Notes turned into accounts receivable due to the drawers’ non-performance at the
close of the reporting period
□Applicable √Not applicable
(5). Categorized disclosure based on the bad debt provision method
□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 notes:
□Applicable √Not applicable
5. Accounts Receivable
(1). Disclosure based on account age
√Applicable □Not applicable
Unit: RMB
| Age | Closing book balance |
| Within 1 year | 139,343,225.15 |
| 1 to 2 years | 111,942.00 |
| 2 to 3 years | 285,968.46 |
| Above 3 years | 6,118.00 |
| Less: bad debt provision for accounts receivable | 143,685.77 |
| Total | 139,603,567.84 |
| 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 | 92,169,507.54 | 65.95 | - | - | 92,169,507.54 | 90,795,847.76 | 59.07 | - | - | 90,795,847.76 |
| Accounts receivable for which bad debt provision is made by group | 47,577,746.07 | 34.05 | 143,685.77 | 0.30 | 47,434,060.30 | 62,907,905.93 | 40.93 | 130,276.83 | 0.21 | 62,777,629.10 |
| Total | 139,747,253.61 | / | 143,685.77 | / | 139,603,567.84 | 153,703,753.69 | / | 130,276.83 | / | 153,573,476.86 |
| Age | End of June 2021 | ||
| Estimated book balance in default | Expected credit loss rate (%) | Expected credit loss in whole duration | |
| Within 1 year | 47,173,717.61 | 0.13 | 60,439.05 |
| 1 - 2 years | 111,942.00 | 8.79 | 9,839.08 |
| 2 -3 years | 285,968.46 | 23.53 | 67,289.64 |
| Above 3 years | 6,118.00 | 100.00 | 6,118.00 |
| Total | 47,577,746.07 | 143,685.77 | |
| 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 | 130,276.83 | 13,408.94 | - | - | - | 143,685.77 |
| Total | 130,276.83 | 13,408.94 | - | - | - | 143,685.77 |
| Balance | Balance of bad debt provision | Percentage in the balance of accounts receivable (%) | |
| Total balance of the accounts receivable with the top five entities | 137,348,630.74 | 57,883.58 | 98.28 |
7. Prepayments
(1). Presentation of prepayment by age
√Applicable □Not applicable
Unit: RMB
| Age | Closing balance | Opening balance | ||
| Amount | (%) | Amount | (%) | |
| Within 1 year | 581,250,317.28 | 97.46 | 89,507,511.37 | 97.24 |
| 1 to 2 years | 13,692,579.73 | 2.30 | 2,329,113.07 | 2.54 |
| 2 to 3 years | 1,338,813.85 | 0.22 | - | - |
| Above 3 years | 101,000.00 | 0.02 | 201,000.00 | 0.22 |
| Total | 596,382,710.86 | 100 | 92,037,624.44 | 100 |
| Proportion in the closing balance | ||
| Supplier | Book balance | of prepayments (%) |
| JEFI AQUATECH RESOURCES SDN.BHD. | 25,666,395.57 | 4.30 |
| PACIFIC SEAFOOD TRADER SA | 21,511,180.45 | 3.61 |
| PROCESADORA DE MARISCOS DE EL ORO PROMARO S.A. | 13,997,619.48 | 2.35 |
| NEGOCIOS INDUSTRIALES REAL NIRSA S.A. | 13,365,870.70 | 2.24 |
| Zhejiang Public Information Industry Co., Ltd. | 11,396,482.03 | 1.91 |
| Total | 85,937,548.23 | 14.41 |
| Item | Closing balance | Opening balance |
| Interest receivable | 184,625,160.72 | 121,401,210.48 |
| Other receivables | 2,887,861,596.99 | 2,587,076,925.77 |
| Total | 3,072,486,757.71 | 2,708,478,136.25 |
Interest receivable
(1). Categorization of interest receivable
√Applicable □Not applicable
Unit: RMB
| Item | Closing balance | Opening balance |
| Cash occupation fee for receivables | 184,625,160.72 | 121,401,210.48 |
| Total | 184,625,160.72 | 121,401,210.48 |
| Age | Closing book balance |
| Within 1 year | 2,854,871,193.91 |
| 1 to 2 years | 7,384,224.96 |
| 2 to 3 years | 4,017,126.39 |
| Above 3 years | 25,743,430.09 |
| Less: Provision for bad debts of other receivables | 4,154,378.36 |
| Total | 2,887,861,596.99 |
| Nature of account | Closing book balance | Opening book balance |
| Financial assistance receivable from joint ventures | 2,791,718,748.00 | 2,480,172,779.00 |
| Withholdings, deposit and margin | 85,534,352.32 | 59,045,233.81 |
| Receivables from self-operated land | - | 42,493,714.00 |
| Receivables from export tax rebate | 8,977,301.44 | 4,841,801.31 |
| Reserve | 1,631,195.23 | 523,397.65 |
| Total | 2,887,861,596.99 | 2,587,076,925.77 |
| 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 January 1, 2021 | 3,768,512.43 | 3,768,512.43 | ||
| Balance as of January 1, 2021 in the current period | ||||
| Provision made in the current period | 535,949.33 | 535,949.33 | ||
| Current reversal | 120,083.39 | 120,083.39 | ||
| Write-off in current period | 30,000.01 | 30,000.01 | ||
| Balance as of June 30, 2021 | 4,154,378.36 | 4,154,378.36 |
| 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 | 3,768,512.43 | 535,949.33 | 120,083.39 | 30,000.01 | - | 4,154,378.36 |
| provision for other receivables | ||||||
| Total | 3,768,512.43 | 535,949.33 | 120,083.39 | 30,000.01 | - | 4,154,378.36 |
| Debtor | Nature of receivable | Closing balance | Age | Weight in the total closing balance of other receivables (%) | Bad debt provision Closing balance |
| Yiwu Guoshen Shangbo Property Co., Ltd. | Financial assistance | 1,372,000,000.00 | Within 1 year | 47.44 | - |
| Yiwu Tonghui Shangbo Real Estate Co., Ltd. | Financial assistance | 929,728,548.00 | Within 1 year | 32.15 | - |
| Yiwu Handing Shangbo Real Estate Co., Ltd. | Financial assistance | 489,990,200.00 | Within 1 year | 16.94 | - |
| Yisha Chengdu International Trade City Co., Ltd. | Current payments | 15,000,000.00 | Within 1 year | 0.52 | - |
| Hangzhou Property Maintenance Funds Management Center | Residential property maintenance funds | 13,180,039.22 | Above 3 years | 0.46 | 2,636,007.84 |
| Total | / | 2,819,898,787.22 | / | 97.51 | 2,636,007.84 |
(12). Amounts of assets and liabilities formed by the transfer of accounts receivable and
continuing involvement
□Applicable √Not applicable
Other notes:
□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 | 245,661.18 | - | 245,661.18 | 402,020.27 | - | 402,020.27 |
| Finished goods | 102,207,980.24 | - | 102,207,980.24 | 75,506,826.35 | - | 75,506,826.35 |
| Development costs | 381,426,679.54 | 28,303,338.06 | 353,123,341.48 | 341,654,440.82 | 28,303,338.06 | 313,351,102.76 |
| Development products | 932,153,659.76 | - | 932,153,659.76 | 932,153,659.76 | - | 932,153,659.76 |
| Work-in-progress materials | 9,461,945.17 | - | 9,461,945.17 | 8,054,119.03 | - | 8,054,119.03 |
| Total | 1,425,495,925.89 | 28,303,338.06 | 1,397,192,587.83 | 1,357,771,066.23 | 28,303,338.06 | 1,329,467,728.17 |
| 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 |
(3). Closing balance of inventory containing capitalized borrowing costs
√Applicable □Not applicable
On June 30, 2021, the inventory with a book value of RMB 35,797,443.87(December 31, 2020: RMB 35,797,443.87) was formed by capitalization ofborrowing costs.
(4). Amortization of contract performance cost during the current period
□Applicable √Not applicable
Other notes:
√Applicable □Not applicable
Inventory-Development Cost Unit: RMB-yuan Currency: RMB
| Project | Opening balance | Increase in the current period | Decrease in the current period | Closing balance |
| Haicheng Phase I Business Street | 67,907,950.27 | - | - | 67,907,950.27 |
| Haicheng Phase II Business Street | 273,746,490.55 | 39,772,238.72 | - | 313,518,729.27 |
| Total | 341,654,440.82 | 39,772,238.72 | - | 381,426,679.54 |
| Project | Opening balance | Increase in the current period | Delivered during current reporting period | Closing balance |
| Haicheng Phase I Business Street | 918,976,130.79 | - | - | 918,976,130.79 |
| Qiantang Yinxiang | 238,807.22 | - | - | 238,807.22 |
| Shuangchuang Building | 12,938,721.75 | - | - | 12,938,721.75 |
| Total | 932,153,659.76 | - | - | 932,153,659.76 |
13. Other current assets
√Applicable □Not applicable
Unit: RMB
| Item | Closing balance | Opening balance |
| Entrusted loans to the merchants | 2,917,329.34 | 3,279,187.50 |
| To-be-deducted input tax | 228,287,916.99 | 162,435,010.24 |
| To-be-certified input tax | 6,071,931.60 | 14,195,996.43 |
| Less: bad debt provision for entrusted loans | -185,500.00 | -185,500.00 |
| Total | 237,091,677.93 | 179,724,694.17 |
| 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 | 186,094,734.90 | - | 186,094,734.90 | 126,756,573.81 | - | 126,756,573.81 | |
| Total | 186,094,734.90 | - | 186,094,734.90 | 126,756,573.81 | - | 126,756,573.81 | / |
| Investee | Opening amount Balance | Change in the current period | Closing amount Balance | Closing balance of impairment provision | |||
| Additional investment | Investment gains or losses recognized with the equity method | Declared a cash dividend or profit | Others | ||||
| 1. Joint ventures | |||||||
| Yiwu Shanglv | 365,830,756.91 | 12,789,131.55 | 378,619,888.46 | ||||
| Yiwu Rongshang Property Co., Ltd. | 22,319,075.64 | -1,407,757.91 | 20,911,317.73 | ||||
| Yiwu Chuangcheng Property Co., Ltd. | 11,444,786.74 | -2,699,662.50 | 8,745,124.24 | ||||
| Others | 15,284,720.18 | 17,850,000.00 | -821,967.18 | 32,312,753.00 | 3,327,216.16 | ||
| Subtotal | 414,879,339.47 | 17,850,000.00 | 7,859,743.96 | 440,589,083.43 | 3,327,216.16 | ||
| 2. Associates | |||||||
| Binjiang Shangbo | 154,152,267.42 | 20,772,839.91 | 98,000,000.00 | 76,925,107.33 | |||
| Huishang Micro-finance | 71,396,566.07 | -1,784,080.98 | 69,612,485.09 | ||||
| Yiwu Huishang Redbud Equity Investment Co., Ltd. | 78,072,569.23 | 8,320,885.50 | 86,393,454.73 | ||||
| Chouzhou Financial Lease | 371,320,662.02 | 29,458,129.47 | 400,778,791.49 | ||||
| Yiwu China Commodities City Investment Management Co., Ltd. | 9,508,049.22 | ||||||
| Yiwu China Commodities City Fuxing Investment Center (limited partnership) | 102,918,559.00 | 102,918,559.00 | |||||
| Pujiang Lvgu Property Co., Ltd. | 379,672,466.65 | 117,772,150.42 | 497,444,617.07 | ||||
| CCCP | 1,471,572,953.91 | 1,225,000,000.00 | 81,906,773.78 | -13,393,890.76 | 2,765,085,836.93 | ||
| Yiwu Hongyi Equity Investment Fund Partnership (limited partnership) | 689,756,805.12 | 3,297,063.43 | 693,053,868.55 | ||||
| Others | 99,155,313.82 | 56,342,096.66 | -3,814,550.71 | 35,272.14 | 151,718,131.91 | ||
| Subtotal | 3,418,018,163.24 | 1,281,342,096.66 | 255,929,210.82 | 98,000,000.00 | -13,358,618.62 | 4,843,930,852.10 | 9,508,049.22 |
| Total | 3,832,897,502.71 | 1,299,192,096.66 | 263,788,954.78 | 98,000,000.00 | -13,358,618.62 | 5,284,519,935.53 | 12,835,265.38 |
| Investee | Opening | Increase | Decrease | Closing |
| balance | in the current period | in the current period | balance | |
| Yiwu China Commodities City Investment Management Co., Ltd. (Note 1) | 9,508,049.22 | - | - | 9,508,049.22 |
| Others | 3,327,216.16 | - | - | 3,327,216.16 |
| Total | 12,835,265.38 | - | - | 12,835,265.38 |
| Item | Closing balance | Opening balance |
| Shenwan Hongyuan Group Co., | 588,254,213.58 | 662,256,342.79 |
| Ltd. | ||
| Total | 588,254,213.58 | 662,256,342.79 |
| Item | Closing balance | Opening balance |
| Unlisted equity investment | 134,582,725.74 | 134,582,725.75 |
| PE investment | 1,378,094,335.77 | 1,341,220,243.72 |
| NEEQ equity investment | 52,846,431.00 | 48,122,280.34 |
| Total | 1,565,523,492.51 | 1,523,925,249.81 |
| Item | Buildings and structures | Land use rights | Total |
| I. Original book value | |||
| 1. Opening balance | 1,952,906,526.61 | 428,095,086.44 | 2,381,001,613.05 |
| 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 | 352,149,349.88 | 68,425,971.44 | 420,575,321.32 |
| 2. Increase in the current period | 40,831,270.32 | 5,469,706.56 | 46,300,976.88 |
| (1) Accruals or amortization | 40,831,270.32 | 5,469,706.56 | 46,300,976.88 |
| 4. Closing balance | 392,980,620.20 | 73,895,678.00 | 466,876,298.20 |
| III. Provision for impairment | - | - | - |
| IV. Book value | |||
| 1. Opening book value | 1,559,925,906.41 | 354,199,408.44 | 1,914,125,314.85 |
| 2. Closing book value | 1,600,757,176.73 | 359,669,115.00 | 1,960,426,291.73 |
Unit: RMB
| Item | Book value | Reasons for having not obtained the ownership certificate |
| Office building of the auxiliary project in western Yiwu | 108,069,210.67 | Completion settlement not completed |
| Total | 108,069,210.67 |
| Item | Closing balance | Opening balance |
| Property, plant and equipment | 5,043,245,326.60 | 5,234,293,786.87 |
| Total | 5,043,245,326.60 | 5,234,293,786.87 |
| Item | Houses and buildings | Machinery and equipment | Transport vehicles | Total |
| I. Original book value: | ||||
| 1. Opening balance | 7,419,947,051.90 | 3,785,579,073.90 | 17,844,183.85 | 11,223,370,309.65 |
| 2. Increase in the current period | 2,946,619.06 | 2,592,653.24 | 271,281.00 | 5,810,553.30 |
| (1) Acquisition | - | 2,505,974.59 | 271,281.00 | 2,777,255.59 |
| (2) Changeover from construction in progress | 2,946,619.06 | 86,678.65 | - | 3,033,297.71 |
| 3. Decrease in the current period | - | 9,442,337.92 | 397,282.05 | 9,839,619.97 |
| (1) Disposal or scrap | - | 9,442,337.92 | 397,282.05 | 9,839,619.97 |
| 4. Closing balance | 7,422,893,670.96 | 3,778,729,389.22 | 17,718,182.80 | 11,219,341,242.98 |
| II. Accumulated depreciation | ||||
| 1. Opening balance | 2,443,460,695.43 | 3,061,676,908.45 | 12,775,451.05 | 5,517,913,054.93 |
| 2. Increase in the current period | 144,652,398.57 | 51,510,771.48 | 466,947.92 | 196,630,117.97 |
| (1) Accruals | 144,652,398.57 | 51,510,771.48 | 466,947.92 | 196,630,117.97 |
| 3. Decrease in the current period | - | 9,229,333.60 | 381,390.77 | 9,610,724.37 |
| (1) Disposal or scrap | - | 9,229,333.60 | 381,390.77 | 9,610,724.37 |
| 4. Closing balance | 2,588,113,094.00 | 3,103,958,346.33 | 12,861,008.20 | 5,704,932,448.53 |
| 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 | 4,363,617,109.11 | 674,771,042.89 | 4,857,174.60 | 5,043,245,326.60 |
| 2. Closing book value | 4,505,322,888.62 | 723,902,165.45 | 5,068,732.80 | 5,234,293,786.87 |
| 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 | 266,148,929.12 | Completion settlement not completed |
| CCC Hotel | 55,177,830.32 | Completion settlement not completed |
| Liaoning Xiliu Yiwu China Commodity City | 424,042,319.75 | Completion settlement not completed |
| The hotel as a auxiliary work for Yixi Project | 505,723,716.40 | Completion settlement not completed |
| Total | 1,251,092,795.59 |
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 | 2,011,597,180.39 | 982,891,877.14 |
| Total | 2,011,597,180.39 | 982,891,877.14 |
| Item | Closing balance | Opening balance | ||||
| Book balance | Impairment provision | Book value | Book balance | Impairment provision | Book value | |
| West Yiwu International Means of Production Market Auxiliary Project | 235,273,844.69 | 235,273,844.69 | 166,382,416.70 | 166,382,416.70 | ||
| Liaoning Xiliu Yiwu China Commodities City Commerce Phase I Project—Hotel Project | 32,290,506.33 | -4,635,059.96 | 27,655,446.37 | 32,290,506.33 | -4,635,059.96 | 27,655,446.37 |
| The Zhimei Dachen tourism project | 60,444,034.88 | 60,444,034.88 | 43,194,369.48 | 43,194,369.48 | ||
| The Chian West Sea tourism project | 59,538,399.10 | 59,538,399.10 | 54,552,839.23 | 54,552,839.23 | ||
| The renovation project of Yindu Hotel and Office Building | 124,778,522.12 | 124,778,522.12 | 55,553,736.33 | 55,553,736.33 | ||
| The Yiwu Comprehensive Bonded Zone Project | 1,204,416,342.88 | 1,204,416,342.88 | 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 | 89,894,127.82 | 89,894,127.82 | ||
| The lighting project in Zone IV | 29,724,101.17 | 29,724,101.17 | 29,724,101.17 | 29,724,101.17 | ||
| Zone II East Parking Lot Project | 145,961,821.34 | 145,961,821.34 | 7,346,035.44 | 7,346,035.44 | ||
| Global Digital Free Trade Center Project | 15,772,923.38 | 15,772,923.38 | - | - | ||
| Other projects | 18,137,616.64 | 18,137,616.64 | 2,791,529.58 | 2,791,529.58 | ||
| Total | 2,016,232,240.35 | -4,635,059.96 | 2,011,597,180.39 | 987,526,937.10 | -4,635,059.96 | 982,891,877.14 |
| 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 |
| West Yiwu International Means of Production Market Auxiliary Project | 133,916.00 | 16,638.24 | 6,889.14 | 23,527.38 | 85.45 | Under construction as a whole | 9,466.76 | 553.06 | 3.65 | Self-owned/financing | |
| Liaoning Xiliu Yiwu China Commodities City Commerce Phase I Project—Hotel Project | 180,000.00 | 2,765.54 | - | - | 2,765.54 | 96.32 | Suspended | 154.61 | - | Self-owned/financing | |
| The Zhimei Dachen tourism project | 6,000.00 | 4,319.44 | 1,724.97 | - | 6,044.41 | 100 | Under construction as a whole | Self-owned | |||
| The Chian West Sea tourism project | 6,000.00 | 5,455.28 | 498.56 | - | 5,953.84 | 99.23 | The infrastructure project has been completed | Self-owned | |||
| The renovation project of Yindu Hotel and Office Building | 25,000.00 | 5,555.37 | 6,922.48 | - | 12,477.85 | 49.91 | Under construction as a whole | Self-owned | |||
| The Yiwu Comprehensive Bonded Zone Project | 624,250.00 | 50,579.73 | 69,861.91 | - | 120,441.64 | 19.29 | Under construction as a whole | 1,196.60 | 1,196.60 | 3.65 | Self-owned/financing |
| The business station project of the warehouse park of the Yiwu CCC | 19,000.00 | 8,989.41 | - | - | 8,989.41 | 47.31 | Under construction as a whole | Self-owned | |||
| The lighting project in Zone IV | 4,000.00 | 2,972.41 | - | - | 2,972.41 | - | Under construction as a whole | Self-owned | |||
| Zone II East Parking Lot Project | 60,706.00 | 734.60 | 13,861.58 | - | 14,596.18 | 24.04 | Under construction as a whole | Self-owned | |||
| Other projects | 279.17 | 3,415.22 | 303.33 | 3,391.06 | - | Self-owned |
| Total | 1,058,872.00 | 98,289.19 | 103,173.86 | 303.33 | 201,159.72 | / | / | 10,817.97 | 1,749.66 | / | / |
| Item | Houses and buildings | Total |
| I. Original book value | ||
| 1. Opening balance | 185,837,176.77 | 185,837,176.77 |
| 4. Closing balance | 185,837,176.77 | 185,837,176.77 |
| II. Accumulated depreciation | ||
| 1. Opening balance | - | - |
| 2. Increase in the current period | 6,032,905.14 | 6,032,905.14 |
| (1) Provision | 6,032,905.14 | 6,032,905.14 |
| 4. Closing balance | 6,032,905.14 | 6,032,905.14 |
| III. Provision for impairment | ||
| IV. Book value | ||
| 1. Opening book value | 179,804,271.63 | 179,804,271.63 |
| 2. Closing book value | 185,837,176.77 | 185,837,176.77 |
None
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 | 5,390,387,256.44 | 19,279,040.17 | 5,409,666,296.61 |
| 2. Increase in the current period | 151,101,000.00 | 7,035,970.17 | 158,136,970.17 |
| (1) Acquisition | 151,101,000.00 | 7,035,970.17 | 158,136,970.17 |
| 4. Closing balance | 5,541,488,256.44 | 26,315,010.34 | 5,567,803,266.78 |
| II. Accumulated amortization | |||
| 1. Opening balance | 1,504,667,791.47 | 4,217,523.22 | 1,508,885,314.69 |
| 2. Increase in the current period | 68,419,767.05 | 1,180,188.25 | 69,599,955.30 |
| (1) Accruals | 68,419,767.05 | 1,180,188.25 | 69,599,955.30 |
| 4. Closing balance | 1,573,087,558.52 | 5,397,711.47 | 1,578,485,269.99 |
| III. Provision for impairment | |||
| IV. Book value | |||
| 1. Opening book value | 3,968,400,697.92 | 20,917,298.87 | 3,989,317,996.79 |
| 2. Closing book value | 3,885,719,464.97 | 15,061,516.95 | 3,900,780,981.92 |
| 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 | 11,638,877.71 | - | - | - | 33,861,938.80 |
| International | - | 2,594,339.62 | - | - | - | 2,594,339.62 |
| logistics platform development project | ||||||
| Total | 22,223,061.09 | 14,233,217.33 | - | - | - | 36,456,278.42 |
| Item | Opening balance | Increase in the current period | Amortized amount in the current period | Closing balance |
| Decoration of buildings and structures | 107,142,460.81 | 4,085,879.10 | 24,393,382.04 | 86,834,957.87 |
| Advertising facilities | 3,586,262.55 | 36,575.00 | 1,978,059.74 | 1,644,777.81 |
| Total | 110,728,723.36 | 4,122,454.10 | 26,371,441.78 | 88,479,735.68 |
None
30. Deferred income tax assets/deferred income tax liabilities
(1). Deferred income tax assets having not been offset
√Applicable □Not applicable
Unit: RMB
| Item | Closing balance | Opening balance | ||
| Deductible temporary difference | Deferred tax assets | Deductible temporary difference | Deferred tax assets | |
| Provision for impairment of assets | 49,487,964.19 | 12,371,991.05 | 18,551,468.79 | 4,637,867.20 |
| Unrealized profits of internal transactions | 1,094,793.10 | 273,698.28 | 1,094,793.10 | 273,698.27 |
| Deductible loss | 19,006,883.14 | 4,751,720.79 | 19,006,883.14 | 4,751,720.78 |
| Recognized but unpaid liabilities | 180,901,191.31 | 45,225,297.83 | 268,732,373.15 | 67,183,093.30 |
| Overspent advertising cost | 9,689,617.59 | 2,422,404.40 | 9,689,617.59 | 2,422,404.41 |
| Changes in the fair value of other non-current financial assets | 83,471,636.00 | 20,867,909.00 | 81,582,179.51 | 20,395,544.88 |
| Total | 343,652,085.33 | 85,913,021.35 | 398,657,315.28 | 99,664,328.84 |
| Item | Closing balance | Opening balance | ||
| Taxable temporary difference | Deferred income tax liabilities | Taxable temporary difference | Deferred income tax liabilities | |
| Asset evaluation appreciation for merger of the enterprises not under common control | 974,224.40 | 243,556.10 | 1,068,720.92 | 267,180.23 |
| Change in fair value of other equity instruments investment | 34,628,782.60 | 8,657,195.65 | 108,630,911.81 | 27,157,727.95 |
| Changes in the fair value of other non-current financial assets | 347,730,110.89 | 86,932,527.72 | 343,005,960.28 | 85,751,490.08 |
| Changes in fair value of trading financial assets | - | - | 1,706,102.10 | 426,525.53 |
| Total | 383,333,117.89 | 95,833,279.47 | 454,411,695.11 | 113,602,923.79 |
(3). Deferred income tax assets or liabilities presented in net amount after offsetting
□Applicable √Not applicable
(4). Breakdown of unrecognized deferred income tax assets
√Applicable □Not applicable
Unit: RMB
| Item | Closing balance | Opening balance |
| Deductible temporary difference | 441,165,046.56 | 466,278,633.25 |
| Deductible loss | 980,125,994.92 | 908,844,380.05 |
| Total | 1,421,291,041.48 | 1,375,123,013.30 |
| Year | Closing amount | Opening amount | Remarks |
| 2021 | 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 | 226,329,502.26 | |
| 2025 | 256,777,878.16 | 256,777,878.16 | |
| 2026 | 106,019,730.31 | ||
| Total | 980,125,994.92 | 908,844,380.05 | / |
| 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 |
| Prepayment for renovation works and prepaid decoration rent | 14,967,128.63 | - | 14,967,128.63 | 14,241,880.56 | - | 14,241,880.56 |
| Prepaid payment for equity transfer | 67,395,000.00 | - | 67,395,000.00 | - | - | - |
| Total | 220,615,444.63 | - | 220,615,444.63 | 152,495,196.56 | - | 152,495,196.56 |
| Item | Closing balance | Opening balance |
| Credit loans | 1,234,890,481.77 | 1,257,179,389.40 |
| Total | 1,234,890,481.77 | 1,257,179,389.40 |
Unit: RMB
| Item | Closing balance | Opening balance |
| Accounts payable for real estate projects | 40,440,743.90 | 57,763,664.12 |
| Accounts payable for market and auxiliary works projects | 665,524,219.25 | 511,789,572.40 |
| Accounts payable for procurement for the hotel project | 23,091,039.22 | 26,767,337.63 |
| Others | 78,345,121.56 | 40,143,228.08 |
| Total | 807,401,123.93 | 636,463,802.23 |
| Item | Closing balance | Reasons for not being paid or carried forward |
| Accounts payable for real estate projects | 11,447,649.57 | Settlement has not been completed or the projects are within the warranty periods |
| Total | 11,447,649.57 | / |
| Item | Closing balance | Opening balance |
| Rental advances | 101,804,405.84 | 105,773,195.96 |
| Others | 6,380,988.65 | 6,979,701.29 |
| Total | 108,185,394.49 | 112,752,897.25 |
38. Contract liabilities
(1). Overview of contract liabilities
√Applicable □Not applicable
Unit: RMB
| Item | Closing balance | Opening balance |
| Advances from customers for use fee of commercial spaces | 1,890,268,302.59 | 2,243,528,509.65 |
| Advances from customers for housing purchase | 3,856,621.50 | 3,856,621.50 |
| Advances from customers for goods | 495,200,615.30 | 100,786,067.26 |
| Advances from customers for use fee of networking cables | 11,538,314.52 | 10,534,354.07 |
| Advances from customers for advertising fee | 86,543,507.04 | 57,095,601.13 |
| Advances from customers for loyalty of brands | 2,262,863.75 | 3,270,729.29 |
| Others | 35,928,503.61 | 23,139,905.98 |
| Total | 2,525,598,728.31 | 2,442,211,788.88 |
| Item | Opening balance | Increase in the current period | Decrease in the current period | Closing balance |
| I. Short-term compensations | 159,703,155.55 | 191,071,712.41 | 300,942,771.10 | 49,832,096.86 |
| II. Post-employment benefits-defined contribution plans | 1,795,841.98 | 15,757,387.86 | 15,265,582.72 | 2,287,647.12 |
| III. Dismissal benefits | - | 3,092,292.95 | 3,092,292.95 | - |
| Total | 161,498,997.53 | 209,921,393.22 | 319,300,646.77 | 52,119,743.98 |
| Item | Opening balance | Increase in the | Decrease in the | Closing balance |
| current period | current period | |||
| I. Salaries, bonuses, allowances and subsidies | 158,575,947.86 | 146,651,124.27 | 257,068,765.76 | 48,158,306.37 |
| II. Employee benefits | - | 14,325,052.88 | 14,325,052.88 | - |
| III. Social insurance premiums | 965,231.59 | 10,010,465.56 | 9,803,559.00 | 1,172,138.15 |
| Including: medical insurance premiums | 887,294.94 | 9,738,778.11 | 9,543,258.67 | 1,082,814.38 |
| Work-related injury insurance premiums | 48,011.60 | 229,147.31 | 216,827.84 | 60,331.07 |
| Maternity insurance premiums | 29,925.05 | 42,540.14 | 43,472.49 | 28,992.70 |
| IV. Housing provident funds | 110,017.00 | 14,302,293.00 | 14,325,437.00 | 86,873.00 |
| V. Labor union funds and employee education funds | 51,959.10 | 5,782,776.70 | 5,419,956.46 | 414,779.34 |
| Total | 159,703,155.55 | 191,071,712.41 | 300,942,771.10 | 49,832,096.86 |
| Item | Opening balance | Increase in the current period | Decrease in the current period | Closing balance |
| 1. Contribution to the basic endowment insurance scheme | 1,665,658.10 | 15,258,412.83 | 14,781,498.78 | 2,142,572.15 |
| 2. Contribution to the unemployment insurance scheme | 130,183.88 | 498,975.03 | 484,083.94 | 145,074.97 |
| Total | 1,795,841.98 | 15,757,387.86 | 15,265,582.72 | 2,287,647.12 |
| Item | Closing balance | Opening balance |
| VAT | 27,519,872.91 | 90,094,604.12 |
| Business tax | -240,013.55 | -431,783.32 |
| Corporate income tax | 181,887,473.04 | 341,382,542.08 |
| Personal income tax | 1,219,628.49 | 1,008,552.21 |
| Urban maintenance and construction tax | 1,849,817.52 | 5,176,906.98 |
| Land appreciation tax | -109,576,320.66 | -47,134,688.35 |
| Property tax | 121,152,658.95 | 93,881,697.54 |
| land holding tax | 7,358,993.26 | 5,357,865.24 |
| Others | 889,521.46 | 6,064,803.23 |
| Total | 232,061,631.42 | 495,400,499.73 |
| Item | Qiantang Yinxiang | Oumei Center | Total amount of prepaid tax |
| Land appreciation tax | 109,576,320.66 | - | 109,576,320.66 |
| Business tax | 240,013.55 | - | 240,013.55 |
| Urban maintenance and construction tax | - | 731,793.32 | 731,793.32 |
| Education surcharge and local education surcharge | - | 522,709.51 | 522,709.51 |
| Total | 109,816,334.21 | 1,254,502.83 | 111,070,837.04 |
| Item | Closing balance | Opening balance |
| Other payables | 1,775,772,737.40 | 1,646,345,561.62 |
| Total | 1,775,772,737.40 | 1,646,345,561.62 |
| Item | Closing balance | Opening balance |
| Withholdings, deposit and margin | 462,279,739.52 | 584,880,967.08 |
| Operating expenses payable | 329,981,321.58 | 234,420,448.09 |
| Bank reserve of Zhejiang Yiwugou E-commerce Co., Ltd. | 24,273,488.75 | 23,223,609.46 |
| Restricted stock incentive plan | 137,298,000.00 | 137,298,000.00 |
| Pending investment | 816,095,590.89 | 666,512,070.29 |
| refunds | ||
| Others | 5,844,596.66 | 10,466.70 |
| Total | 1,775,772,737.40 | 1,646,345,561.62 |
| Item | Closing balance | Opening balance |
| Long-term borrowings within one year | 190,790,333.31 | 300,634,822.21 |
| Bonds payable due within 1 year | 1,841,058,896.51 | 1,014,391,752.22 |
| Total | 2,031,849,229.82 | 1,315,026,574.43 |
| Item | Closing balance | Opening balance |
| Short-term bonds payable | 3,019,926,484.02 | 3,004,009,789.85 |
| To-be-reported output tax | 37,554,993.81 | 15,466,581.46 |
| Dividend announced but not collected before listing | 2,083,112.65 | 2,083,112.65 |
| Dividend payable to to-be-recognized accounts | 2,220,922.02 | 2,048,557.72 |
| Total | 3,061,785,512.50 | 3,023,608,041.68 |
| 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 | November 27, 2020 | 90 days | 1,000,000,000 | 1,002,227,312.68 | 3,937,070.88 | 1,006,164,383.56 |
| Super-short-term commercial paper | 100 | December 9, 2020 | 90 days | 1,000,000,000 | 1,000,238,641.55 | 5,802,454.34 | 1,006,041,095.89 | |||
| Super-short-term commercial paper | 100 | December 25, 2020 | 28 days | 1,000,000,000 | 1,001,543,835.62 | 527,397.26 | 1,002,071,232.88 | |||
| Super-short-term commercial paper | 100 | Jan 18, 2021 | 88 days | 1,000,000,000 | 1,000,000,000 | 7,965,068.49 | 1,007,715,068.49 | |||
| Super-short-term commercial paper | 100 | Feb 23, 2021 | 182 days | 1,000,000,000 | 1,000,000,000 | 11,424,657.53 | 350,684.93 | 1,011,775,342.46 | ||
| Super-short-term commercial paper | 100 | Mar 8, 2021 | 88 days | 1,000,000,000 | 1,000,000,000 | 7,449,863.01 | 1,007,449,863.01 | |||
| Super-short-term commercial paper | 100 | Apr 14, 2021 | 90 days | 1,000,000,000 | 1,000,000,000 | 6,011,369.86 | 216,666.67 | 1,006,228,036.53 | ||
| Super-short-term commercial paper | 100 | Jun 2, 2021 | 149 days | 1,000,000,000 | 1,000,000,000 | 1,842,549.47 | 80,555.56 | 1,001,923,105.03 | ||
| Total | / | / | / | 8,000,000,000 | 3,004,009,789.85 | 5,000,000,000 | 44,960,430.84 | 647,907.16 | 5,029,441,643.83 | 3,019,926,484.02 |
| Item | Closing balance | Opening balance |
| Credit loans | 604,000,000.00 | 282,000,000.00 |
| Total | 604,000,000.00 | 282,000,000.00 |
| Item | Closing balance | Opening balance |
| MTN | 2,064,727,206.49 | 2,024,870,915.16 |
| Bonds payable | 721,349,232.88 | 1,527,290,794.52 |
| Total | 2,786,076,439.37 | 3,552,161,709.68 |
(2). Change in bonds payable (excluding other financial instruments classified as
financial liabilities, such as preferred shares and perpetual bonds)
√Applicable □Not applicable
Unit: RMB
| 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 |
| Medium-term notes (Note 1) | 100 | September 6, 2019 | 3 years | 1,000,000,000 | - | - | 23,554,794.52 | 661,938.82 | - | - |
| MTN | 100 | July 15, 2019 | 3 years | 1,000,000,000 | 1,017,879,350.82 | - | 19,786,027.39 | 187,031.09 | - | 1,037,852,409.30 |
| MTN | 100 | October 21, 2019 | 3 years | 1,000,000,000 | 1,006,991,564.34 | - | 19,686,849.32 | 196,383.53 | - | 1,026,874,797.19 |
| Corporate bonds (Note 2) | 100 | June 5, 2019 | 3 years | 800,000,000 | 819,791,780.82 | - | 17,058,630.14 | - | 34,400,000.00 | - |
| Corporate bonds | 100 | September 25, 2019 | 3 years | 700,000,000 | 707,499,013.70 | - | 13,850,219.18 | - | - | 721,349,232.88 |
| Total | / | / | / | 4,500,000,000 | 3,552,161,709.68 | - | 93,936,520.55 | 1,045,353.44 | 34,400,000.00 | 2,786,076,439.37 |
| Item | Closing balance | Opening balance |
| Long term lease liabilities | 175,878,039.33 | 172,687,272.95 |
| Total | 175,878,039.33 | 172,687,272.95 |
Note: The Group uses the incremental borrowing rate of 3.67% when it is alessee as the book value of the discount rate to determine the lease liability andmeasure the sue right assets.
48. Long-term payables
Presentation of items
□Applicable √Not applicable
Long-term payables
□Applicable √Not applicable
Special payables
□Applicable √Not applicable
49. Long-term employee compensation payable
□Applicable √Not applicable
50. Estimated liabilities
√Applicable □Not applicable
Unit: RMB
| Item | Opening balance | Closing balance | Cause of formation |
| Pending L/C losses | 110,620,306.10 | 110,620,306.10 | - |
| Total | 110,620,306.10 | 110,620,306.10 | / |
| Item | Opening balance | Increase in the current period | Decrease in the current period | Closing balance | Cause of formation |
| Asset-related government grants | 26,545,277.30 | - | 710,736.84 | 25,834,540.46 | |
| Total | 26,545,277.30 | - | 710,736.84 | 25,834,540.46 | / |
Items involving government grants:
√Applicable □Not applicable
Unit: RMB
| Liability item | Opening balance | Increase in grant amount in the current period | Amount included in non-operating income in the current period | Amount recognized in other income in the current period | Other changes | Closing balance | Asset-related or income-related |
| Subsidy for service industry cluster project | 5,510,112.59 | - | - | 133,333.32 | - | 5,376,779.27 | Asset-related |
| Interest subsidy for the international exhibition center construction fund | 21,035,164.71 | - | - | 577,403.52 | - | 20,457,761.19 | Asset-related |
| Opening balance | Increase or decrease in the current period (+, -) | Closing balance | |||||
| Issuing new shares | Bonus shares | Provident funds conversed into shares | Others | Subtotal | |||
| Total number of shares | 5,489,914,176.00 | - | - | - | - | - | 5,489,914,176.00 |
(2) Changes in other financial instruments such as preferred shares and perpetualbonds outstanding at the end of the reporting period
□Applicable √Not applicable
Changes in other equity instruments in the current period, the reasons therefor andthe basis for relevant accounting treatment:
□Applicable √Not applicable
Other notes:
□Applicable √Not applicable
55. Capital reserves
√Applicable □Not applicable
Unit: RMB
| Item | Opening balance | Increase in the current period | Decrease in the current period | Closing balance |
| Capital surplus (share premium) | 1,558,612,797.11 | - | - | 1,558,612,797.11 |
| Other capital reserve | 36,293,727.56 | 17,010,813.12 | - | 53,304,540.68 |
| Total | 1,594,906,524.67 | 17,010,813.12 | - | 1,611,917,337.79 |
| 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 |
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 or loss | 81,473,183.84 | -74,002,129.21 | -18,500,532.30 | -55,501,596.91 | 25,971,586.93 |
| Change in fair value of other equity instruments investment | 81,473,183.84 | -74,002,129.21 | -18,500,532.30 | -55,501,596.91 | 25,971,586.93 |
| II. Other comprehensive income to be reclassified into profit or loss | -3,323,522.51 | -1,651,738.37 | - | -1,651,738.37 | -4,975,260.88 |
| Translation reserve | -3,323,522.51 | -1,651,738.37 | - | -1,651,738.37 | -4,975,260.88 |
| Total other comprehensive income | 78,149,661.33 | -75,653,867.58 | -18,500,532.30 | -57,153,335.28 | 20,996,326.05 |
| Item | Opening balance | Increase in the current period | Decrease in the current period | Closing balance |
| Statutory surplus reserve | 1,312,373,111.99 | - | - | 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 | 1,364,257,808.58 | - | - | 1,364,257,808.58 |
The Company can accrue free surplus reserve after accruing the statutorysurplus reserve. With the approval, the free surplus reserve can be used to make upfor previous losses or to increase share capital.
60. Retained earnings
√Applicable □Not applicable
Unit: RMB
| Item | Current period | Previous year |
| Undistributed profits at the end of the previous reporting period before adjustment | 5,168,298,206.50 | 4,750,787,389.17 |
| Opening undistributed profits after adjustment | 5,168,298,206.50 | 4,750,787,389.17 |
| Plus: net profits attributable to shareholders of the parent company in the current period | 850,514,460.93 | 926,626,706.42 |
| Less: withdrawal of statutory surplus reserve | - | 128,090,896.77 |
| Common share dividend payable | 301,945,279.68 | 381,024,992.32 |
| Closing undistributed profits | 5,716,867,387.75 | 5,168,298,206.50 |
| Item | Amount in the current period | Amount in the previous period | ||
| Incomes | Costs | Incomes | Costs | |
| Main business | 1,877,033,846.97 | 863,801,815.15 | 1,720,825,843.49 | 855,681,051.35 |
| Other businesses | 195,593,880.03 | 61,608,810.26 | 400,622,950.82 | 13,546,505.12 |
| Total | 2,072,627,727.00 | 925,410,625.41 | 2,121,448,794.31 | 869,227,556.47 |
| Classified by type of contract | Total |
| Types of goods | |
| Sales of goods | 347,274,324.50 |
| The use of commercial spaces in the Commodity City and its supporting services | 1,368,907,990.72 |
| Hotel accommodation and catering services | 62,730,512.18 |
| Royalty income | 47,497,796.29 |
| Other services | 149,139,123.42 |
| Classified by business area | |
| China mainland | 1,975,549,747.11 |
| Classified by contract period | |
| Revenue confirmed at certain time point | |
| Sales of goods | 347,274,324.50 |
| Hotel catering services | 42,497,500.87 |
| Other services | 128,086,929.69 |
| Revenue confirmed during certain time period | |
| The use of commercial spaces in the Commodity City and its supporting services | 1,368,907,990.72 |
| Hotel accommodation service | 20,233,011.31 |
| Royalty income | 47,497,796.29 |
| Other services | 21,052,193.73 |
| Total | 1,975,549,747.11 |
| Type of contract | Current period |
| Sales of goods | 73,909,708.08 |
| The use of commercial spaces in the Commodity City and its supporting services | 1,355,717,243.98 |
| Hotel accommodation service | 9,242,614.59 |
| Other services | 9,059,873.51 |
| Total | 1,447,929,440.16 |
in advance before the use of commercial spaces in the Commodity City and 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 is collected 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 serviceis provided. 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 theperformance obligations that have been signed but not yet performed or not yetcompleted was RMB 2,525,598,728.31, of which:
RMB 2,525,598,728.31 is expected to be recognized as an income in 2026
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 | 200,048.93 | 14,045,794.11 |
| Urban maintenance and construction tax | 3,687,622.46 | 2,314,536.16 |
| Education surcharge | 1,581,474.20 | 991,721.15 |
| Property tax | 55,296,306.71 | 51,999,617.07 |
| land holding tax | 5,387,595.00 | 4,196,070.42 |
| Vehicle and vessel use tax | - | 32.90 |
| Stamp duty | 1,421,427.19 | 2,006,907.56 |
| Land appreciation tax | 9,038.82 | 5,552,018.39 |
| Local education surcharge | 1,054,316.04 | 661,966.73 |
| Cultural undertaking | -240.00 | - |
| development fee | ||
| Total | 68,637,589.35 | 81,768,664.49 |
| Item | Amount in the current period | Amount in the previous period |
| Advertising fees | 19,829,104.82 | 37,445,306.55 |
| Marketing expenses | 39,083,745.14 | 38,347,950.83 |
| Security and insurance expenses | 11,869,661.68 | 8,872,959.16 |
| Depreciation and amortization | 356,584.59 | 93,888.35 |
| Water, electricity and fuel expenses | 1,946,862.81 | 2,647,286.40 |
| Others | 956,971.99 | 479,680.57 |
| Total | 74,042,931.03 | 87,887,071.86 |
| Item | Amount in the current period | Amount in the previous period |
| Employee and uniform expenses | 130,142,013.05 | 98,049,547.02 |
| Depreciation and amortization | 20,578,214.86 | 10,598,352.97 |
| Intermediary expenses | 4,610,462.83 | 7,983,319.28 |
| Travel expenses | 2,715,004.31 | 1,992,980.09 |
| Office expenses | 6,488,902.87 | 6,236,038.03 |
| Promotion and merchants introduction expenses | 159,870.08 | 496,350.00 |
| Lease and property management expenses | 1,651,675.14 | 556,659.50 |
| Others | 352,743.44 | 4,537,677.74 |
| Total | 166,698,886.58 | 130,450,924.63 |
| Item | Amount in the current | Amount in the |
| period | previous period | |
| Employee expenses | 2,702,889.51 | 3,834,282.80 |
| Depreciation and amortization | 62,670.46 | 284,072.04 |
| Technology R&D expenses | 516,473.30 | 12,962,871.10 |
| Others | 1,287,105.17 | - |
| Total | 4,569,138.44 | 17,081,225.94 |
| Item | Amount in the current period | Amount in the previous period |
| Interest | 173,963,591.17 | 234,936,097.83 |
| Amortization of commercial paper discount | 2,406,651.36 | 2,673,477.84 |
| Interest income | -117,153,799.20 | -132,172,237.44 |
| Capitalized interest | -17,496,623.81 | -15,494,362.77 |
| Foreign exchange gains or losses | 1,986,636.12 | -393,092.75 |
| Others | 3,644,550.43 | 1,722,025.63 |
| Total | 47,351,006.07 | 91,271,908.34 |
| Item | Amount in the current period | Amount in the previous period |
| Government subsidy for service industry cluster for 2011 | 133,333.32 | 133,333.32 |
| Interest subsidy for the international exhibition center construction fund | 577,403.52 | 577,403.52 |
| Award for provincial service industry cluster | - | 550,000.00 |
| Grant for the construction and operation of the credit data center | - | 1,500,000.00 |
| R&D investment award from Science and Technology Bureau for 2018 | - | 978,100.00 |
| High-tech awards from Science and Technology Bureau for 2019 | - | 600,000.00 |
| Subsidy for 2020 Online Hardware Fair Exhibition | - | 600,000.00 |
| Tourism development special award from Culture and Tourism Bureau | - | 50,000.00 |
| Grant for civilized units from Civilization Construction Office | - | 3,000.00 |
| Additional deduction of input tax | 2,845,835.35 | 2,634,909.22 |
| Education surcharges refunded by the tax bureau | 148.65 | 9.78 |
| Refund of the service charges of individual income tax | 368,142.02 | 144,060.64 |
| Refund of social security contribution | - | 5,899,392.92 |
| Employment stabilization subsidy | 23,190.40 | - |
| VAT reduction for the recruitment of retired soldiers finding jobs on their own | 86,065.86 | - |
| Electricity charge award for production resumption | - | 14,214.66 |
| Subsidy for pilot counties in service industry for 2020 | 500,000.00 | - |
| Subsidy for six small industries in the Spring Festival | 300,000.00 | - |
| Subsidy for Demonstrative Units of "eliminating pornography and illegal publications" from Jinhua Municipal Financial Treasury | 10,000.00 | - |
| Deduction for cultural undertaking development fee | 90,780.00 | - |
| Additional deduction of R&D input award from Yiwu Municipal Science and Technology Bureau | 131,520.00 | - |
| Opening-up Promotion Reward from Yiwu Bureau of Commerce for 2020 | 960,743.00 | - |
| Special Incentive Fund for Modern Supply Chain System Innovation from Yiwu Bureau of Commerce for 2020 | 2,682,704.00 | - |
| Award for general trading enterprises from Yiwu Municipal Bureau of Commerce | 336,162.00 | - |
| Total | 9,046,028.12 | 13,684,424.06 |
| Item | Amount in the current period | Amount in the previous period |
| Long-term equity investment income under the equity method | 263,788,954.78 | 13,185,907.49 |
| Investment income from held-for-trading financial assets during holding period | - | 20,500,000.00 |
| Interest income from debt investment during holding period | - | 8,196,820.88 |
| Investment income from disposal of held-for-trading financial assets | 42,837.72 | 169,594.15 |
| Investment income from disposal of subsidiaries and related claims | - | 76,523,765.30 |
| Investment income from disposal of wealth management products | - | 574,553.43 |
| Total | 263,831,792.50 | 119,150,641.25 |
| Sources of income from changes in fair value | Amount in the current period | Amount in the previous period |
| Held-for-trading financial assets | -2,640,099.60 | - |
| Other non-current financial assets | 3,768,691.70 | 20,193,509.58 |
| Total | 1,128,592.10 | 20,193,509.58 |
| Item | Amount in the current period | Amount in the previous period |
| Bad debt loss of accounts receivable | -13,408.94 | -2,379,335.67 |
| Loss for bad debts of other receivables | -415,865.94 | - |
| Total | -429,274.88 | -2,379,335.67 |
73. Income from asset disposal
√Applicable □Not applicable
Unit: RMB
| Item | Amount in the current period | Amount in the previous period |
| Income from disposal of property, plant and equipment | 101,911.42 | 1,095,496.24 |
| Total | 101,911.42 | 1,095,496.24 |
| Item | Amount in the current period | Amount in the previous period | Amount recognized in profit or loss of nonrecurring items for the current period |
| Government grants | 1,200.00 | - | 1,200.00 |
| Incomes from liquidated damages | 1,258,664.54 | 415,800.00 | 1,258,664.54 |
| Others | 85,788.32 | 337,775.18 | 85,788.32 |
| Total | 1,345,652.86 | 753,575.18 | 1,345,652.86 |
| Grant items | Amount in the current period | Previous amount | Asset-related or income-related |
| Subsidy for enterprise monitoring from Choucheng Subdistrict | 1,200.00 | - | Income-related |
| Total | 1,200.00 | - |
| Item | Amount in the current period | Amount in the previous period | Amount recognized in |
| profit or loss of nonrecurring items for the current period | |||
| Total loss for disposal of non-current assets | 791,449.35 | - | 791,449.35 |
| Including: loss for disposal of property, plant and equipment | 791,449.35 | - | 791,449.35 |
| External donation | 200,000.00 | 2,731,413.91 | 200,000.00 |
| Water conservancy construction fund | 6.76 | 249,451.94 | 6.76 |
| Others | 129,638.33 | 250,031.27 | 129,638.33 |
| Total | 1,121,094.44 | 3,230,897.12 | 1,121,094.44 |
| Item | Amount in the current period | Amount in the previous period |
| Current income taxes | 198,094,571.17 | 260,211,241.65 |
| Deferred income tax expenses | 14,482,195.47 | 12,775,944.42 |
| Total | 212,576,766.64 | 272,987,186.07 |
| Item | Amount in the current period |
| Profits before tax | 1,059,821,157.80 |
| Income tax expenses calculated at the statutory/applicable tax rate | 264,955,289.45 |
| Impact of different tax rates applied by subsidiaries | 606,716.47 |
| Effect of adjusting income tax of previous period | -18,765,823.73 |
| Effect of non-taxable income | 1,034,697.67 |
| Effect of non-deductible costs, expenses and losses | 203,633.97 |
| Effect of using deductible losses of unrecognized deferred income tax assets in previous period | 3,984,558.93 |
| Effect of deductible temporary differences or deductible losses of unrecognized deferred income tax assets in the current period | 26,504,932.58 |
| Profits or losses attributable to joint ventures and associates | -65,947,238.70 |
| Income taxes | 212,576,766.64 |
| Item | Amount in the current period | Amount in the previous period |
| Bank deposit interest income received | 117,153,799.20 | 120,684,004.99 |
| Government grants received | 4,925,477.20 | 10,859,472.56 |
| Deposit and margin received | 60,501,618.69 | 10,660,056.61 |
| Bank reserve received | 876,213.71 | - |
| Others | 2,324,227.91 | - |
| Total | 185,781,336.71 | 142,203,534.16 |
| Item | Amount in the current period | Amount in the previous period |
| Margins paid | 55,168,466.81 | 125,625,663.45 |
| Fees paid | 117,283,494.99 | 111,864,579.58 |
| Bank reserve paid to Zhejiang Yiwugou E-commerce Co., Ltd. | - | -3,157,824.29 |
| Collection of property ownership certificate fees paid | - | 1,335,791.74 |
| Cash paid to purchase time deposits | - | 496,500,000.00 |
| Others | 2,539,651.72 | 18,942,646.95 |
| Total | 174,991,613.52 | 751,110,857.43 |
| Item | Amount in the current period | Amount in the previous period |
| Financial assistance recovered from joint ventures | 1,326,599,831.00 | 192,154,897.34 |
| Total | 1,326,599,831.00 | 192,154,897.34 |
| Item | Amount in the current period | Amount in the previous period |
| Financial assistance paid for joint ventures | 1,550,981,005.00 | - |
| Total | 1,550,981,005.00 | - |
| Supplementary information | Amount in the current period | Amount in the previous period |
| 1．Adjust net profits to cash flow from operating activities: | ||
| Net profit | 847,244,391.16 | 720,041,670.03 |
| Add: Provision for asset impairment | - | - |
| Loss of impairment of credit | 429,274.88 | 2,379,335.67 |
| Depreciation of property, plant and equipment, depletion of oil and gas assets, and depreciation of productive biological assets | 196,630,117.97 | 232,464,508.86 |
| Amortization of right-of-use assets | 6,032,905.14 | - |
| Amortization of intangible assets | 69,599,955.30 | 65,522,814.07 |
| Amortization of long-term deferred expenses | 26,371,441.78 | 33,684,186.50 |
| Loss on disposal of property, plant and equipment, intangible assets and other long-term assets (gain presented with "-") | -101,911.42 | -1,095,407.99 |
| Loss from scrapping of property, plant and equipment (gain presented with "-") | 791,449.35 | -88.25 |
| Loss from changes in fair value (gain presented with "-") | -1,128,592.10 | -20,193,509.58 |
| Financial expense (gain presented with "-") | 177,154,357.55 | 15,494,362.77 |
| Investment loss (gain presented with "-") | -263,831,792.50 | -311,305,538.59 |
| Decrease in deferred income tax assets (increase presented with "-") | 13,751,307.49 | -22,701,798.39 |
| Increase in deferred income tax liabilities (decrease presented with "-") | -17,769,644.32 | 1,084,796.43 |
| Decrease in inventory (increase presented with "-") | -67,724,859.66 | -239,207,823.16 |
| Decrease in operating receivables (increase presented with "-") | -1,120,122,291.93 | -879,633,090.02 |
| Increase in operating payables (decrease presented with "-") | 299,409,716.06 | -299,601,118.51 |
| Others | ||
| Net cash flow from operating activities | 166,735,824.75 | -703,066,700.16 |
| 2．Significant investing and financing activities not involving cash receipt and payment: | ||
| 3．Net changes in cash and cash equivalents: | ||
| Closing balance of cash | 1,959,635,386.45 | 3,470,682,166.57 |
| Less: opening balance of cash | 2,032,642,871.63 | 3,426,712,549.26 |
| Add: closing balance of cash equivalents | ||
| Less: opening balance of cash equivalents | ||
| Net increase in cash and cash equivalents | -73,007,485.18 | 43,969,617.31 |
(3) Net cash received from disposal of subsidiaries in the current period
□Applicable √Not applicable
(4) Composition of cash and cash equivalents
√Applicable □Not applicable
Unit: RMB
| Item | Closing balance | Opening balance |
| I. Cash | 1,959,635,386.45 | 2,032,642,871.63 |
| Including: cash on hand | 203,319.92 | 292,999.29 |
| Bank deposit that can be used for payment at any time | 1,959,405,717.31 | 2,032,189,759.31 |
| Other monetary capital that can be used for payment at any time | 26,349.22 | 160,113.03 |
| II. Cash equivalents | ||
| III. Closing balance of cash and cash equivalents | 1,959,635,386.45 | 2,032,642,871.63 |
| Including: cash and cash equivalents with restricted use by the parent company or its subsidiaries | 60.68 | 60.58 |
| Item | Closing balance | Opening balance |
| Negotiated deposits | 1,060,000,000.00 | 3,580,000,000.00 |
| Item | Closing book value | Reason for restriction |
| Monetary capital | 60.68 | |
| Long-term equity investment | 102,918,559.00 | |
| Other non-current assets | 617,511,352.00 | |
| Total | 720,429,971.68 | / |
Note 1. On June 30, 2021, bank deposits with a book value of RMB 60.68(December 31, 2020: RMB 60.58) were restricted for ownership or use rights due tobeing as security deposits for obtaining commercial housing mortgage loan.Note 2: As of June 30, 2021, long-term equity investments with a book value ofRMB 102,918,559.00 (December 31, 2020: RMB 102,918,559.00) and othernon-current assets of RMB 617,511,352.00 (December 31, 2020: RMB617,511,352.00) were frozen by Shanghai Municipal Public Security Bureau. SeeNote XIV.1 Important commitments 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 balance conversed into RMB |
| Monetary capital | - | - | |
| In which: USD | 3,234,568.66 | 6.4601 | 20,895,637.00 |
| EURO | 42,563.62 | 7.6829 | 327,012.04 |
| Dirham | 293,088.41 | 1.7587 | 515,454.59 |
| Koruna | 18,707,573.41 | 0.3010 | 5,631,418.85 |
| Accounts Receivable | - | - | |
| In which: USD | 3,116,422.25 | 6.4601 | 20,132,399.38 |
| Koruna | 7,989,665.21 | 0.3010 | 2,405,076.82 |
| Other receivables | - | - | |
| In which: USD | 59,503.15 | 6.4601 | 384,396.29 |
| EURO | 3,147.80 | 7.6829 | 24,184.23 |
| Koruna | 37,171,848.63 | 0.3010 | 11,189,599.23 |
| Accounts payable | - | - | |
| In which: USD | 150,013.56 | 6.4601 | 969,102.60 |
| Koruna | 7,480.00 | 0.3010 | 2,251.66 |
| Other payables | - | - | |
| In which: USD | 1,213,426.02 | 6.4601 | 7,838,853.43 |
| EURO | 18,698.84 | 7.6829 | 143,661.32 |
| Koruna | 66,173,444.90 | 0.3010 | 19,919,760.66 |
84. Government grants
1. Overview of government grants
√Applicable □Not applicable
Unit: RMB
| Category | Amount | Presentation | Amount recognized in profit or loss for the current period |
| Subsidy for enterprise monitoring from Choucheng Subdistrict | 1,200.00 | Non-operating income | 1,200.00 |
| Government subsidy for service industry cluster for 2011 | 133,333.32 | Other incomes | 133,333.32 |
| Interest subsidy for the international exhibition center construction fund | 577,403.52 | Other incomes | 577,403.52 |
| Additional deduction of input tax | 2,845,835.35 | Other incomes | 2,845,835.35 |
| Education surcharges refunded by the tax bureau | 148.65 | Other incomes | 148.65 |
| Employment stabilization subsidy | 23,190.40 | Other incomes | 23,190.40 |
| VAT reduction for the recruitment of retired soldiers finding jobs on their own | 86,065.86 | Other incomes | 86,065.86 |
| Subsidy for pilot counties in service industry for 2020 | 500,000.00 | Other incomes | 500,000.00 |
| Subsidy for six small industries in the Spring Festival | 300,000.00 | Other incomes | 300,000.00 |
| Subsidy for Demonstrative Units of "eliminating pornography and illegal publications" from Jinhua Municipal Financial Treasury | 10,000.00 | Other incomes | 10,000.00 |
| Deduction for cultural undertaking development fee | 90,780.00 | Other incomes | 90,780.00 |
| Additional deduction of R&D input award from Yiwu Municipal Science and Technology Bureau | 131,520.00 | Other incomes | 131,520.00 |
| Opening-up Promotion Reward from Yiwu Bureau of Commerce for 2020 | 960,743.00 | Other incomes | 960,743.00 |
| Special Incentive Fund for Modern Supply Chain System Innovation from Yiwu Bureau of Commerce for 2020 | 2,682,704.00 | Other incomes | 2,682,704.00 |
| Award for general trading enterprises from Yiwu Municipal Bureau of Commerce | 336,162.00 | Other incomes | 336,162.00 |
| Total | 8,679,086.10 | 8,679,086.10 |
2. Refund of government grants
□Applicable √Not applicable
Other descriptionsNone
85. Others
□Applicable √Not applicable
VIII. Changes in consolidation scope
1、 Business merger not under common control
□Applicable √Not applicable
2、 Business merger under common control
□Applicable √Not applicable
3、 Reverse acquisition
□Applicable √Not applicable
4、 Disposal of subsidiaries
Has the Group lost control upon a single disposal of investment in a subsidiary?
□Applicable √Not applicable
Other notes:
□Applicable √Not applicable
5、 Changes in consolidation scope for other reasons
Changes in the consolidation scope for other reasons (e.g. new establishment of subsidiaries, liquidation of subsidiaries, etc.) andthe related information:
□Applicable √Not applicable
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 China Commodities City Logistics and Warehousing Co., Ltd. | Yiwu, Zhejiang | Yiwu, Zhejiang | Service | 100 | Establishment | |
| Yiwu Commodities City Gonglian Property Co., Ltd. | Yiwu, Zhejiang | Yiwu, Zhejiang | Real estate | 100 | Establishment | |
| Yiwu China Commodities City Exhibition Co., Ltd. | Yiwu, Zhejiang | Yiwu, Zhejiang | Service | 100 | Establishment | |
| Yiwu China Commodities City Advertising Co., Ld. | Yiwu, Zhejiang | Yiwu, Zhejiang | Advertising | 100 | Establishment | |
| Yiwu China Commodities City Information Technology Co., Ltd. | Yiwu, Zhejiang | Yiwu, Zhejiang | IT | 100 | Establishment | |
| Yiwu China Commodity City RMB and Foreign Currency Exchange Co., Ltd. | Yiwu, Zhejiang | Yiwu, Zhejiang | Service | 100 | Establishment | |
| Hangzhou Shangbo Nanxing Property Co., Ltd. | Hangzhou, Zhejiang | Hangzhou, Zhejiang | Real estate | 100 | Establishment | |
| Yiwu China Commodities City Payment Network Technology Co., Ltd. | Yiwu, Zhejiang | Yiwu, Zhejiang | IT | 100 | Establishment | |
| Yiwu China Commodities City Credit Investigation Co., Ltd. | Yiwu, Zhejiang | Yiwu, Zhejiang | Service | 85 | Establishment | |
| Haicheng Yiwu China Commodities City Investment Development Co., Ltd. | Haicheng, Liaoning | Haicheng, Liaoning | Real estate | 95 | Establishment | |
| Zhejiang Yiwugou E-commerce Co., Ltd. | Yiwu, Zhejiang | Yiwu, Zhejiang | E-commerce | 51 | Establishment | |
| Yiwu Shangbo Property Co., Ltd. | Hangzhou, Zhejiang | Hangzhou, Zhejiang | Real estate | 100 | Establishment | |
| Yiwu China Commodities City Import and Export Co., Ltd. | Yiwu, Zhejiang | Yiwu, Zhejiang | Wholesale | 100 | Establishment | |
| Yiwu China Commodities City Supply Chain Management Co., Ltd. | Yiwu, Zhejiang | Yiwu, Zhejiang | Service | 100 | Establishment | |
| Yiwu China Commodities City Tourism Development Co., Ltd. | Yiwu, Zhejiang | Yiwu, Zhejiang | Lease and business service | 100 | Establishment | |
| Yiwu China Commodities City Financial Holdings Co., Ltd. | Yiwu, Zhejiang | Yiwu, Zhejiang | Service | 100 | Establishment | |
| Yiwu China Commodity City (Germany) Co., Ltd. | Frankfurt, Germany | Frankfurt, Germany | Service | 100 | Establishment | |
| Yiwu International Trade Comprehensive Service Co., Ltd. | Yiwu, Zhejiang | Yiwu, Zhejiang | Wholesale | 60 | Establishment | |
| Yiwu Aiximao Supply Chain Management Co., Ltd. | Yiwu, Zhejiang | Yiwu, Zhejiang | Service | 100 | Establishment | |
| Yiwu China Commodities City (Hong Kong) International Trade Co., Ltd. | Hong Kong, China | Hong Kong, China | Wholesale | 100 | Establishment | |
| Ningxia Yiwu China Commodity City Supply Chain Management Co., Ltd. | Shizuishan, Ningxia | Shizuishan, Ningxia | Service | 100 | Establishment | |
| Yiwu China Commodities City Overseas Investment and Development Co., Ltd. | Yiwu, Zhejiang | Yiwu, Zhejiang | Wholesale | 100 | Establishment | |
| Yiwu China Commodities City Commerce and Trade Service Training Center Co., Ltd. | Yiwu, Zhejiang | Yiwu, Zhejiang | Education | 100 | Establishment | |
| Yiwu China Commodities City Assets Operation and Management Co., Ltd. | Yiwu, Zhejiang | Yiwu, Zhejiang | Lease and business service | 100 | Establishment | |
| Zhejiang Yindu Hotel Management Co., Ltd. | Yiwu, Zhejiang | Yiwu, Zhejiang | Lease and business service | 100 | Establishment | |
| Hong Kong Better Silk Road Co., Ltd. | Hong Kong, China | Hong Kong, China | Service | 100 | Establishment | |
| BETTER SILK ROAD FZE | Dubai, UAE | Dubai, UAE | Service | 100 | Establishment | |
| BETTER SILK ROAD RWANDA Ltd | Kigali, Rwanda | Kigali, Rwanda | Service | 100 | Establishment | |
| Yiwu China Commodities City Research Institute Co., Ltd. | Yiwu, Zhejiang | Yiwu, Zhejiang | Business service | 100 | Establishment | |
| Yiwu Comprehensive Bonded Zone Operation and Management Co., Ltd. | Yiwu, Zhejiang | Yiwu, Zhejiang | Business service | 100 | Establishment | |
| Yiwu China Commodities City Big Data Co., Ltd. | Yiwu, Zhejiang | Yiwu, Zhejiang | Software and Information Technology Service Industry | 100 | Establishment | |
| Yiwu Global Yida Logistics Co., Ltd. | Yiwu, Zhejiang | Yiwu, Zhejiang | Multimodal transport and transportation agency | 60 | Establishment | |
| Yiwu China Commodities City Internet Financial Information Service Co., Ltd. | Yiwu, Zhejiang | Yiwu, Zhejiang | Service | 100 | Incorporation+acquisition | |
| Zhejiang Huajie Investment and Development Co., Ltd. | Yiwu, Zhejiang | Yiwu, Zhejiang | Commercial services | 96.4 | Incorporation+acquisition | |
| European Huajie Investment Development Co., Ltd. | Prague, Czech Republic | Prague, Czech Republic | Commercial services | 96.4 | Incorporation+acquisition |
| Subsidiary | Shareholding ratio of minority shareholders Proportion (%) | Profits or losses attributable to minority shareholders in the current period | Dividends declared to be distributed to minority shareholders for the current period | Closing balance of minority interest |
| Zhejiang Yiwugou E-commerce Co., Ltd. | 49 | 1,974,877.84 | 43,560,953.39 |
| Haicheng Company | 5 | -3,564,192.03 | -39,248,251.46 |
| Subsidiary | Closing balance | Opening balance | |||||||||
| Current assets | Non-current assets | Total assets | Current liabilities | Total Liabilities | Current assets | Non-current assets | Total assets | Current liabilities | Non-current liabilities | Total Liabilities | |
| Zhejiang Yiwugou E-commerce Co., Ltd. | 10,456.98 | 1,092.39 | 11,549.37 | 2,659.38 | 2,659.38 | 10,131.63 | 1,035.94 | 11,167.57 | 2,680.61 | - | 2,680.61 |
| Haicheng Company | 141,955.48 | 87,968.51 | 229,923.99 | 308,420.50 | 308,420.50 | 124,510.56 | 105,804.70 | 230,315.26 | 301,683.12 | 0.26 | 301,683.38 |
| 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 | |
| Zhejiang Yiwugou E-commerce Co., Ltd. | 2,289.66 | 403.04 | 403.04 | -1,005.35 | 2,329.05 | 735.05 | 735.05 | 617.67 |
| Haicheng Company | 591.49 | -7,128.38 | -7,128.38 | 4,098.84 | 170.49 | -7,510.97 | -7,510.97 | 456.24 |
2. Transactions in which the Group’s share of owners’ equity in a subsidiary changesand the Group still controls the subsidiary
□Applicable √Not applicable
3. Equity in joint ventures or associates
√Applicable □Not applicable
(1). Important joint ventures or associates
√Applicable □Not applicable
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 | Equity method | |
| Yiwu Huishang Redbud Capital Management Co., Ltd. | Yiwu, Zhejiang | Yiwu, Zhejiang | Service | 20 | Equity method | |
| Associate | ||||||
| Hangzhou Binjiang Shangbo Property Development Co., Ltd. | Hangzhou, Zhejiang | Hangzhou, Zhejiang | Real estate | 49 | Equity method | |
| Yiwu Huishang Redbud Equity Investment Co., Ltd.(注 1) | Yiwu, Zhejiang | Yiwu, Zhejiang | Commercial services | 10.42 | Equity method | |
| Zhejiang Chouzhou Financial Lease Co., Ltd. | Yiwu, Zhejiang | Yiwu, Zhejiang | Service | 26 | Equity method | |
| Yiwu Huishang Redbud Phase II Investment Partnership (LLP) (Note 2) | Yiwu, Zhejiang | Yiwu, Zhejiang | Lease and business service | 9.43 | Equity method | |
| Yiwu Hongyi Equity Investment Fund Partnership | Yiwu, Zhejiang | Yiwu, Zhejiang | Service | 49.98 | Equity method | |
| Pujiang Lvgu Property Co., Ltd. | Pujiang, Zhejiang | Pujiang, Zhejiang | Real estate | 49 | Equity method | |
| Yiwu China Commodities City Property Development Co., Ltd. | Yiwu, Zhejiang | Yiwu, Zhejiang | Real estate | 49 | Equity method | |
Bases for holding less than 20% of the voting rights but having significant influence,or holding 20% or more of the voting rights but not having significant influence:
1. The Company holds 10.42% (2020: 10.42%) of equity of Yiwu HuishangRedbud Equity Investment Co., Ltd. (hereinafter referred to as "Redbud EquityInvestment"), but regards it as an associated enterprise of the Company. Accordingto Redbud Investment’s articles of association, it is engaged in investing and itsimportant financial and operating decision-making activities are to pick and manageinvestment projects, which have been fully entrusted to the Company’s joint ventureYiwu Huishang Redbud Capital Management Co., Ltd. (“Redbud Capital”). RedbudCapital picks and manages investment projects via its investment decision-makingcommittee. Except for special investment matters, which are subject to theresolution of Redbud Investment’s board of directors, other important financial andoperating decision-making activities are conducted by Redbud Capital on the behalfof Redbud Investment. Therefore, the Company was able to exercise significantinfluence on Redbud Investment in which the Company held 10.42% of total equity.
2.The Company holds 9.43% (9.43% in 2020) equity in Yiwu Huishang RedbudPhase II Investment Partnership (limited partnership) (“Redbud Phase II”), but takesthe latter as its associate. According to Redbud Phase II’s articles of association, itis engaged in investing and its important financial and operating decision-makingactivities are to pick and manage investment projects, which have been fullyentrusted to the Company’s joint venture Redbud Capital. Redbud Capital picks andmanages investment projects via its investment decision-making committee. Exceptfor special investment matters, which are subject to the resolution of Redbud PhaseII’s board of directors, other important financial and operating decision-makingactivities are conducted by Redbud Capital on the behalf of Redbud Phase II.Therefore, the Company can exert significant influence on Redbud Phase II inwhich it holds 9.43% equity.
(2). Main financial information of important joint ventures
√Applicable □Not applicable
Unit: RMB
| Closing balance/amount in the current period | Opening balance/amount in the previous period | |
| Yiwu Shanglv | Yiwu Shanglv | |
| Current assets | 160,212,991.84 | 187,602,175.56 |
| In which: cash and cash equivalents | 22,573,321.54 | 24,893,904.53 |
| Non-current assets | 1,351,304,281.55 | 1,369,948,370.68 |
| Total assets | 1,511,517,273.39 | 1,557,550,546.24 |
| Current liabilities | 348,992,582.10 | 420,643,904.92 |
| Non-current liabilities | 356,957,211.08 | 356,957,211.08 |
| Total Liabilities | 705,949,793.18 | 777,601,116.00 |
| Shareholders’ equity attributable to parent company | 805,567,480.21 | 779,949,430.24 |
| Share of net assets calculated based shareholding ratio | 394,728,065.32 | 382,175,220.82 |
| Adjustments | -16,108,176.86 | -16,344,463.91 |
| --unrealized profits of internal transactions | -16,108,176.86 | -16,344,463.91 |
| Book value of equity investment in joint ventures | 378,619,888.46 | 365,830,756.91 |
| Operating income | 119,151,345.93 | 86,301,394.39 |
| Financial expenses | 13,130,464.22 | 15,128,184.57 |
| Net profit | 25,618,049.97 | 2,397,343.82 |
| Total comprehensive income | 25,618,049.97 | 2,397,343.82 |
| 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 | CCCP | Pujiang Lvgu | |
| Current assets | 20,006.38 | 1,265,303.68 | 5,183.52 | 1,192,625.24 | 109,945.07 | 44,924.53 | 1,202,046.20 | 18,713.03 | 755,070.00 | 169,861.52 |
| Non-current assets | - | 8,326.54 | 133,530.80 | 40,526.33 | 1,593.35 | 104.99 | 2,883.99 | 119,447.65 | 40,293.49 | 1,300.60 |
| Total assets | 20,006.38 | 1,273,630.22 | 138,714.32 | 1,233,151.57 | 111,538.42 | 45,029.52 | 1,204,930.19 | 138,160.68 | 795,363.49 | 171,162.12 |
| Current liabilities | 2,650.84 | 843,554.97 | 34.24 | 659,240.33 | 11,960.43 | 12,787.62 | 941,372.19 | 140.31 | 467,243.03 | 88,160.96 |
| Non-current liabilities | - | 275,978.70 | - | - | 76.76 | - | 124,684.14 | - | 20,902.58 | 7,441.37 |
| Total Liabilities | 2,650.84 | 1,119,533.67 | 34.24 | 659,240.33 | 12,037.19 | 12,787.62 | 1,066,056.33 | 140.31 | 488,145.61 | 95,602.33 |
| Shareholders’ equity attributable to parent company | 17,355.54 | 154,096.55 | 138,680.08 | 572,748.64 | 99,501.23 | 32,241.90 | 138,873.86 | 138,020.37 | 307,217.88 | 75,559.79 |
| Share of net assets calculated based shareholding ratio | 8,504.21 | 40,065.10 | 69,305.39 | 280,646.83 | 48,755.60 | 15,798.53 | 36,107.20 | 68,975.68 | 150,536.76 | 37,024.30 |
| Adjustments | -811.70 | 12.77 | - | -4,138.25 | 988.86 | -383.31 | -94.71 | - | -3,379.46 | 942.95 |
| --unrealized profits of internal transactions | -811.70 | 12.77 | - | -4,138.25 | 988.86 | -383.31 | -94.71 | - | -3,379.46 | 942.95 |
| Book value of equity investment in joint ventures | 7,692.51 | 40,077.88 | 69,305.39 | 276,508.58 | 49,744.46 | 15,415.23 | 37,132.07 | 68,975.68 | 147,157.30 | 37,964.25 |
| Operating income | 3,853.49 | 19,148.81 | 743.86 | 130,649.27 | 89,556.04 | 8,748.17 | 20,390.00 | 609.57 | ||
| Net profit | 4,234.21 | 11,330.05 | 682.67 | 15,476.32 | 23,941.44 | 3,169.81 | 7,876.21 | -1,636.99 | ||
| Total comprehensive income | 4,234.21 | 11,330.05 | 682.67 | 15,476.32 | 23,941.44 | 3,169.81 | 7,876.21 | -1,636.99 | ||
(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 | 61,969,194.96 | 49,048,582.56 |
| Total amounts of the following items calculated based on shareholding ratio | ||
| --Net profits | -17,417,905.83 | -58,781,609.61 |
| --Total comprehensive income | -17,417,905.83 | -58,781,609.61 |
| Associates: | ||
| Total book value of investments | 410,104,474.22 | 351,543,008.12 |
| Total amounts of the following items calculated based on shareholding ratio | ||
| --Net profits | -2,760,126.81 | 2,988,663.47 |
| --Total comprehensive income | -2,760,126.81 | 2,988,663.47 |
6. Others
□Applicable √Not applicable
X. Risks associated with financial instruments
√Applicable □Not applicable
1. Categorization of financial instruments
The book values of financial instruments on the balance sheet date are as follows:
June 30, 2021Financial assets
Other financial liabilities
| Short-term loans | 1,234,890,481.77 | ||||
| Accounts payable | 807,401,123.93 | ||||
| Other payables | 1,775,772,737.40 | ||||
| Non-current liabilities due within one year | 2,031,849,229.82 | ||||
| Other current liabilities | 3,061,785,512.50 | ||||
| Long- term loans | 604,000,000.00 | ||||
| Bonds payable | 2,786,076,439.37 | ||||
| 12,301,775,524.79 |
| Financial liabilities | Financial assets that are measured at fair value and whose changes are included in the current profit and loss | Measured at amortized cost | measured at fair value and whose changes are included in other comprehensive income | Total | |||||
| Requirements in the standard | Designated | ||||||||
| Monetary capital | - | 3,019,635,447.13 | - | 3,019,635,447.13 | |||||
| Held-for-trading financial assets | 57,568,002.17 | - | - | 57,568,002.17 | |||||
| Accounts Receivable | - | 139,603,567.84 | - | 139,603,567.84 | |||||
| Other receivables | - | 3,072,486,757.71 | - | 3,072,486,757.71 | |||||
| Other current assets | - | 237,091,677.93 | - | 237,091,677.93 | |||||
| Long-term receivables | - | 186,094,734.90 | - | 186,094,734.90 | |||||
| Other equity instruments investment | - | - | 588,254,213.58 | 588,254,213.58 | |||||
| Other non-current financial assets | 1,565,523,492.51 | - | - | 1,565,523,492.51 | |||||
| 1,623,091,494.68 | 6,654,912,185.51 | 588,254,213.58 | 8,866,257,893.77 |
| Financial liabilities | Financial assets that are measured at fair value and whose changes are included in the current profit and loss | Measured at amortized cost | measured at fair value and whose changes are included in other comprehensive income | 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 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 |
| 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 |
The 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 marginfrom that at its 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 listof 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 events
together and may not necessarily be caused by an individually identifiable event.
Measurement parameters of expected credit loss
Depending on whether credit risk has increased significantly and whether credit has
been impaired, the Group makes impairment provisions for the expected credit
losses of different assets within 12 months or the entire durations. The key
parameters of expected credit loss include the probability of default, loss given
default and default risk exposure. The Group has built the models of probability of
default, 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 orthroughout the remaining duration. The Group adjusts theprobability of default based on the results of the expected creditloss model and with forward-looking information included to reflectthe debtors’ probability of default under the current macro economicenvironment.
（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 givendefault varies with the type of counterparty, the form and priority ofclaims and collaterals. The loss given default is the percentage ofrisk exposure loss at the time of default and is calculated based onthe coming 12 months or the entire remaining 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 orthroughout the remaining duration.
The determination of significant increase in credit risk and the calculation ofexpected credit loss both involve forward-looking information. The Group identifiesthe key economic indicators that affect the credit risk and expected credit loss ofvarious types of businesses through the analysis of historical data.
The influence of those economic indicators on the probability of default and lossgiven default varies with the type of business. The Group predicts those indicatorson a quarterly basis based on experts’ judgments and determines their influence onthe probability of default and loss given default through regression analysis.
The Group makes impairment provisions for the expected credit loss of accountsreceivable and other receivables within the coming 12 months with the simplifiedmethod and general method respectively. Please refer to Notes VII. 5 and 8 fordetails.
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. On June 30, 2021,
70.28% of the Group's debts would be due within one year (December 31, 2020:
66.99%).
The following table summarizes the analysis on the due day of financial liabilitiesbased on non-discounted contractual cash flows:
June 30, 2021
| Item | 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 | 1,147,906.03 | 10,675,526.11 | 1,249,374,764.93 | 1,261,198,197.07 | ||
| Accounts payable | 688,615,258.47 | 118,785,865.46 | 807,401,123.93 | |||
| Other payables | 1,313,492,997.88 | 462,279,739.52 | 1,775,772,737.40 | |||
| Other current liabilities | 4,304,034.67 | 2,024,351,506.85 | 1,011,671,232.88 | 3,040,326,774.40 | ||
| Non-current liabilities due within one year | 206,888.89 | 1,099,184,511.11 | 975,273,288.89 | 2,074,664,688.89 | ||
| Long- term loans | 583,444.44 | 5,426,033.33 | 15,986,377.78 | 624,787,284.44 | 646,783,139.99 | |
| Bonds payable | 39,900,000.00 | 87,236,904.11 | 2,720,293,095.89 | 2,847,430,000.00 | ||
| Total | 2,008,350,530.38 | 3,298,323,442.86 | 3,339,542,568.59 | 3,807,360,119.85 | 12,453,576,661.68 |
| Item | 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 | ||
| Non-current liabilities due within one year | 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 | |||
| Total | 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 |
investments classified as the financial instruments that are measured by fair valueand of which the changes in fair value are recognized in income in current period(Note VII. 2) or recognized in other comprehensive income (Note VII. 18). Thelisted equity instruments that were invested and held by the Group were listed onthe Shanghai Stock Exchange and the Shenzhen Stock Exchange, respectively,thedetermination is made through discounting and adjustment using the trading pricesof similar circulating stocks of the same listed company on the balance sheet date,combined with liquidity.
3. Capital management
The main objective of the Group in capital management is to ensure the Group’s
ability to continue operations and maintain a healthy capital ratio to support itsbusiness development and maximize the values for shareholders.
The Group manages and adjusts its capital structure based on the changes in theeconomic situation and the risk characteristics of related assets. To maintain or adjust thecapital structure, the Group may adjust the distribution of profits to shareholders, returncapital contribution to shareholders or issue new shares. The Group is not subject toexternal mandatory capital requirements. From January to June in 2021 and in 2020, therewas no change in capital management objectives, policies or procedures.
XI. Disclosure of fair value
1. Closing fair value of the assets and liabilities measured by fair value
√Applicable □Not applicable
Unit: RMB
| Item | Closing fair value | |||
| Level 1 fair value | Level 2 fair value | Level 3 fair value | Total | |
| I. Continuous fair value measurement | ||||
| (1) Held-for-trading financial assets | 2,000.15 | 57,566,002.02 | 57,568,002.17 | |
| 1. Financial assets that are measured at fair value and whose changes are included in the current profit and loss | 2,000.15 | 57,566,002.02 | 57,568,002.17 | |
| (2) Investment in equity instruments | 2,000.15 | 49,066,002.02 | 49,068,002.17 | |
| (4) Bank wealth management products | 8,500,000.00 | 8,500,000.00 | ||
| (3) Other equity instruments investment | 588,254,213.58 | 588,254,213.58 | ||
| (vi) Other non-current financial assets | 224,112,791.60 | 1,341,410,700.91 | 1,565,523,492.51 | |
| Total assets continuously measured by fair value | 588,256,213.73 | 281,678,793.62 | 1,341,410,700.91 | 2,211,345,708.26 |
3. Valuation techniques and qualitative and quantitative information of importantparameters for the items continuously and non-continuously measured by Level 2fair value
√Applicable □Not applicable
The Group’s level-2 items continuously measured at fair value mainly includeunlisted equity investments and listed equity instruments with restricted salesconditions. The fair value of unlisted equity investments is determined based on theinformation in the financial statements of these unlisted companies as of June 30,2021, combined with comparable information of listed companies in the industry,using the comparable company multiplier method. In the listed equity instrumentssubject to restricted sales conditions, the valuation model is used to determine thefair value based on the market quotation, and the important observable input valueis the liquidity discount.
4. Valuation techniques and qualitative and quantitative information of important
parameters for the items continuously and non-continuously measured by Level 3
fair value
√Applicable □Not applicable
The 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 is not suitable are determined with theasset-based method as of June 30, 2021.
5. Adjustment information between the opening book value and closing book value,
and the sensitivity analysis of unobservable parameters for items continuously
measured by Level 3 fair value
□Applicable √Not applicable
6. For items continuously measured by fair value, if there is conversion between
different levels in the current period, the reasons for the conversion and the policy
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
June 30, 2021
| 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) | 4,623,646,006.73 | 4,623,646,006.73 | ||
9. Others
√Applicable □Not applicable
Estimate of fair value
Fair value of financial instruments
The table below shows the differences between book value and fair value ofthe Group’s financial instruments other than the financial instruments withvery small differences between book value and fair value and the equityinstruments that did not have an offering price in the active market andwhose fair value could not be measured reliably:
| Book value | Fair value | ||||
| June 30, 2021 | 2020 | June 30, 2021 | 2020 | ||
| Financial liabilities bonds payable (current portion included) | 4,627,135,335.88 | 4,584,565,819.27 | 4,623,646,006.73 | 4,566,553,461.90 | |
restricted 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 significant conversion of the Group’s and the Company’s financialinstruments measured by fair value between different levels in the current year andin the previous year.
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 | 55.34 | 55.34 |
| 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 |
| Meipinshu | Associate |
| JEBEL ALI FREE ZONE TRADER MARKET DEVELOPMENT AND OPERATION FZCO | Associate |
| Digital Port | Joint venture |
| CCCP | Associate |
| Name of other related party | Relationship with the Company |
| Yourworld International Conference Center Company of Yiwu Market Development Group Co., Ltd. | Branch of Controlling shareholder of the Company’s largest shareholder |
| Yiwu Security Service Co., Ltd. | Subsidiary of controlling shareholder of the Company’s largest shareholder |
| MDG | Controlling shareholder of the Company’s largest shareholder |
| SCO | Parent company of controlling shareholder of the Company’s largest shareholder |
| Huangyuan Shangbo | Subsidiaries of joint ventures |
| Chengzhen Property | Subsidiaries of joint ventures |
| Gongchen Shangbo | Subsidiaries of joint ventures |
| Tonghui Shangbo | Subsidiaries of joint ventures |
| Zhejiang Shangbo Property Co., Ltd. | Subsidiaries of associates |
| Handing Shangbo | Subsidiaries of associates |
| Yiwu Guoshen Shangbo Property Co., Ltd. | Joint venture |
| 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 | 37,500 | 42,500 |
Selling goods/rendering service
√Applicable □Not applicable
Unit: RMB
| Related party | Contents of related-party transaction | Amount in the current period | Amount in the previous period |
| Xingfuhu International Conference Center | Laundry costs, venue rental costs, etc. | 2,406,375.28 | 506,168.10 |
| Meipinshu | Procurement agency | 1,566,898.69 | - |
| CCCP | Payment for pandemic prevention materials | 1,280.00 | - |
| Pujiang Lvgu Property Co., Ltd. | Payment for pandemic prevention materials | 272.00 | - |
| 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 | Feb 1, 2020 | Jan 31, 2025 | Negotiated price | 895,759.55 |
(3). Related-party lease
The Company as the lessor:
√Applicable □Not applicable
Unit: RMB
| Name of lessee | Type of leased asset | Rental income recognized in the current period | Rental income recognized in the previous period |
| Huishang Micro-finance | Office space | 196,476.69 | 217,159.71 |
| Redbud Capital | Office space | 123,409.53 | 135,779.71 |
| Zhejiang Yemai Data Technology Co., Ltd. | Office space | 22,184.76 | 56,131.90 |
| Guaranteed party | Guaranteed amount | Starting date of the guarantee | Maturity date of the guarantee | Whether the guarantee has been fulfilled |
| Yiwu Shanglv | 184,837,311.23 | July 1, 2015 | December 15, 2026 | NO |
| Yiwu Shanglv | 13,918,103.03 | December 25, 2020 | December 24, 2023 | NO |
| Huangyuan Shangbo | 284,244,666.76 | August 23, 2019 | August 22, 2024 | NO |
| Guaranteeing party | Guaranteed amount | Starting date of the guarantee | Maturity date of the guarantee | Whether the guarantee has been fulfilled |
| MDG | 90,000,000.00 | April 22, 2013 | October 22, 2021 | NO |
200million as of Dec 31, 2020) under this guarantee, for which MDG assumed jointand several liability in full.
2. The Group provided Yiwu Shanglv with a loan guarantee with the maximumamount not exceeding RMB 49 million to Yiwu Branch of Bank of CommunicationsCo., Ltd. As of June 30, 2021, Yiwu Shanglv actually borrowed RMB 28.4043million from the bank (December 31, 2020: RMB 11.50 million). As agreed in theguarantee contract, the Bank of Communications Co., Ltd. Yiwu Branch assumed aguarantee liability of RMB 13.9181 million (December 31, 2020: RMB 5.635 million).CCCH provided a counter-guarantee
4. The Group provided guarantee for the borrowings of Yiwu Shanglv. As of Jun30, 2021, Yiwu Shanglv actually borrowed RMB377.219million(RMB477.6597million as of Dec 31, 2020) from banks. According to the guaranteecontract, the Group assumed liability for RMB184.8373million (RMB234.0533millionas of Dec 31, 2020). SCO provided a counter-guarantee
4. The Group provided guarantee for the borrowings of Huangyuan Shangbo. Asof Jun 30, 2021, Huangyuan Shangbo actually borrowed RMB580.0912million(RMB1.2890987 billian as of Dec 31, 2020) from banks. According to the guaranteecontract, the Group assumed liability for RMB284.2447million (RMB631.6583millionas of Dec 31, 2020).
(5). Related-party lending and borrowing
√Applicable □Not applicable
Unit: RMB
| Related party | Amount | Starting date | Maturity date | Explanation |
| Borrowings | ||||
| Huangyuan Shangbo | 98,000,000.00 | Jan 26, 2021 | In January 2021, the Group borrowed a total of RMB 98,000,000.00 from Huangyuan Shangbo in the proportion to the shareholding ratio at the annual interest rate of 0%. The repayment date will be determined based on the funding requirements of the Huangyuan Shangbo project. | |
| Huangyuan Shangbo | 73,500,000.00 | Mar 2, 2021 | In March 2021, the Group borrowed a total of RMB 73,500,000.00 from Huangyuan Shangbo in the proportion to the shareholding ratio at the annual interest rate of 0%. The repayment date is determined according to the funding requirements of the Huangyuan Shangbo project. | |
| Chengzhen Property | 72,000,000.00 | Jan 26, 2021 | In 2020, the Group borrowed a total of RMB 27,200,000.00 from Chengzhen Real Estate; in January 2021, the Group borrowed a total of RMB 72,000,000.00 from Chengzhen Real Estate. All these were borrowed in the proportion to the shareholding ratio at the annual interest rate of 0%. The repayment date is determined according to the funding requirements of the Chengzhen Real Estate project. | |
| Chengzhen Property | 4,800,000.00 | May 20, 2021 | In May 2021, the Group borrowed a total of RMB 4,800,000.00 from Chengzhen Real Estate in the proportion to the shareholding | |
| ratio at the annual interest rate of 0%. The repayment date is determined according to the funding requirements of the Chengzhen Real Estate project. | ||||
| Gongchen Shangbo | 472,659,831.00 | December 28, 2020 | May 27, 2021 | In 2020, the Group provided Gongchen Shangbo with financial assistance totaling RMB 472,659,831.00 at the annual interest rate of 10%. As of May 31, 2021, Gongchen Shangbo has been repaid off in succession. |
| Gongchen Shangbo | 49,000,000.00 | May 14, 2020 | May 27, 2021 | In 2020, the Group provided Gongchen Shangbo with financial assistance totaling RMB 49,000,000.00 at the annual interest rate of 10%. As of May 31, 2021, Gongchen Shangbo has been repaid off in succession. |
| Tonghui Shangbo | 556,640,000.00 | October 23, 2020 | In 2020, the Group provided Tonghui Shangbo with financial assistance totaling RMB 1,486,368,548.00 at the annual interest rate of 6.5%. As of June 30, 2021, Tonghui Shangbo has successively repaid RMB 556,640,000.00. |
| Related party | Amount | Starting date | Maturity date | Explanation |
| Lending to | ||||
| Huangyuan Shangbo | 102,900,000.00 | July 31, 2020 | In 2020, the Group has borrowed a total of RMB 539,000,000.00 from Huangyuan Shangbo in the proportion to the shareholding ratio at the annual interest rate of 0%. RMB 102,900,000.00 of them has been repaid in April 2021. The repayment date of the remaining debts will be determined according to the funding requirements of Huangyuan Shangbo project. | |
| Handing Shangbo | 17,845,800.00 | May 11, 2021 | In 2020, the Group provided Handing Shangbo with financial assistance totaling RMB 472,144,400.00; in May 2021, the Group provided Handing Shangbo with financial assistance totaling RMB 17,845,800.00, all at the annual interest rate of 6%. The repayment term of the financial assistance is determined based on the progress of the project. | |
| Guoshen Shangbo | 1,372,000,000.00 | Apr 19, 2021 | In April 2021, the Group provided Guoshen Shangbo with financial assistance totaling RMB 1,372,000,000.00 at the annual interest rate of 0%. The repayment term of the financial assistance is determined based on the progress of the project. | |
| JEBEL ALI FREE ZONE TRADER MARKET DEVELOPMENT AND OPERATZON FZCO | 58,235,205.00 | Mar 15, 2021 | In 2020, the Group provided JEBEL ALI FREE ZONE TRADER MARKET DEVELOPMENT AND OPERATION FZCO financial assistance totaling RMB 63,465,484.42; in March 2021, the Group provided it will financial assistance totaling RMB 58,235,205.00, all at the annual interest rate of 6-month average EIBOR plus 5%. The repayment term of the | |
financial assistance is determined basedon the progress of the project.
(6). Related-party transfer of assets and restructuring of debts
□Applicable √Not applicable
(7). Remunerations of key officers
√Applicable □Not applicable
Unit: RMB10,000
| Item | Amount in the current period | Amount in the previous period |
| Remunerations of key officers | 827.37 | 1,213.93 |
| Project | Related party | Closing balance | Opening balance | ||
| Book balance | Bad debt provision | Book balance | Bad debt provision | ||
| Accounts Receivable | Tonghui Shangbo | 1,100,000.00 | 0.00 | ||
| Accounts Receivable | Huishang Micro-finance | 10,993.00 | 0.00 | ||
| Accounts Receivable | Yixinou Supply Chain | 3,841.20 | 0.00 | ||
| Accounts Receivable | Meipinshu | 4,761,867.01 | 3,791,271.51 | ||
| Total | 5,876,701.21 | 3,791,271.51 | |||
| Interest receivable | Handing Shangbo | 15,827,392.54 | 1,629,868.34 | ||
| Interest receivable | Gongchen Shangbo | 106,986,844.63 | 101,380,259.61 | ||
| Interest receivable | Tonghui Shangbo | 61,810,923.55 | 18,391,082.53 | ||
| Total | 184,625,160.72 | 121,401,210.48 | |||
| Other receivables | Handing Shangbo | 489,990,200.00 | 472,144,400.00 | ||
| Other receivables | Guoshen Shangbo | 1,372,000,000.00 | 0.00 | ||
| Other receivables | Tonghui Shangbo | 929,728,548.00 | 1,486,368,548.00 | ||
| Total | 2,791,718,748.00 | 2,480,172,779.00 | |||
| Long-term receivables | Yiwu Shanglv | 61,250,000.00 | 61,250,000.00 | ||
| Long-term | Dubai Joint | 124,844,734.90 | 65,506,573.81 | ||
| receivables | Venture Company | ||||
| Total | 186,094,734.90 | 126,756,573.81 |
| Project | Related party | Closing book balance | Opening book balance |
| Accounts payable | Zhejiang Yemai Data Technology Co., Ltd. | 234,991.51 | 1,944,907.37 |
| Accounts payable | Meipinshu | 216,645.00 | 0.00 |
| Total | 451,636.51 | 1,944,907.37 | |
| Advance from customers | Redbud Capital | 205,682.56 | 82,272.97 |
| Advance from customers | Huishang Micro-finance | 17,063.49 | 119,444.13 |
| Advance from customers | Meipinshu | 87,749.26 | 29,076.43 |
| Advance from customers | CCCP | 244,915.60 | 612,289.00 |
| Advance from customers | Digital Port | 31,877.64 | 116,090.04 |
| Advance from customers | Suxi Shangbo | 81,000.00 | 0.00 |
| Total | 668,288.55 | 966,567.57 | |
| Contract liabilities | Huishang Micro-finance | 9,587.95 | 12,609.59 |
| Contract liabilities | Digital Port | 18,532.07 | 2,192.92 |
| Total | 28,120.02 | 14,802.51 | |
| Other payables | Huangyuan Shangbo | 607,600,000.00 | 539,000,000.00 |
| Other payables | Chengzhen Property | 104,000,000.00 | 27,200,000.00 |
| Other payables | MDG | 67,938.05 | 400,421.10 |
| Other payables | Digital Port | 26,300.00 | 26,300.00 |
| Other payables | Huishang Micro-finance | 33,000.00 | 85,000.00 |
| Other payables | CCCP | 240,000.00 | 240,000.00 |
| Other payables | Meipinshu | 57,000.00 | 57,000.00 |
| Total | 712,024,238.05 | 567,032,721.10 |
8. Others
□Applicable √Not applicable
XIII. Share-based payment
1. Overview of share-based payment
√Applicable □Not applicable
Unit: Share Currency: RMB
| Total amount of equity instruments granted by the Company in the current period | |
| The total amount of equity instruments exercised by the Company during the current period | |
| The total amount of the Company's equity instruments that have lapsed during the current period | |
| Scope of the exercise price of the stock options issued by the Company and the remaining period of the contract at the end of the period | The grant price was RMB 2.94, in 60 months from the date of grant registration |
| Scope of the exercise price of other equity instruments issued by the Company and the remaining period of the contract at the end of the period |
| 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. |
| Reason for the significant difference between the estimates in the current period and in the previous period | |
| Cumulative amount of equity-settled share-based payments included in the capital reserve | 18,891,794.50 |
| Total amount of expenses recognized by equity-settled share payments in the current period | 17,010,813.12 |
5,443,214,176 shares, the Company’s total share capital, of which 47,920,000shares were granted for the first time and 2,560,000 shares reserved; the number ofincentive objects granted for the first time in this plan was 405, and the restrictedstock incentive objects were directors, senior management and core technicalpersonnel of the Company (including subsidiaries), and other personnel deemedby the board of directors to be motivated; the grant price of some restricted stocksgranted in this plan for the first time was RMB 2.94 per share.According to the authorization of the fifth extraordinary general meeting ofshareholders in 2020, the Japanese Company held the 26
thmeeting of the eighthboard of directors on December 11, 2020, and reviewed and passed the “Plan onInitially Granting Restricted Shares to Incentive Objects”. The first grant date isDecember 11, 2020. The number of first grants is 47,920,000 shares, and the grantprice is RMB 2.94/share. The source of the restricted stock incentive plan is theCompany's directional issuance of restricted stocks to incentive objects, and thetypes of stocks is RMB A-share common stocks. During the subscription process,10 incentive objects voluntarily waived 1,220,000 restricted stocks to be granted tothem due to personal reasons; therefore, 46,700,000 restricted stocks were granted,and the number of incentive objects was 395 in this action. On December 29, 2020,the Company received the subscription payment for restricted stocks for RMB137,298,000.00 from the incentive objects. The actual number of stocks subscribedwas 46,700,000, which was verified by Ernst & Young Hua Ming Certified PublicAccountants (Special General Partnership) with a capital verification report ( (2020)YZ No. 60709629_B01). On January 15, 2021, the Company's board of directorshas completed the registration of the first grant of restricted stocks.The first grant of restricted shares under the restricted share incentive plan willvest in three phases from the first trading day 24 months after the date ofcompletion of the grant registration to the last trading day 60 months after the dateof completion of the grant registration, that is, upon satisfying the vesting conditions,the employee has the right to purchase the share at the option price. Within thevesting period, if the vesting conditions of the restricted share incentive plan aremet, the incentive object may apply for the vesting of the share and be listed forcirculation.
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
Unit: RMBYuan
| Capital commitments | June 30, 2021 | 2020 |
| Signed but not provided | 841,672,802.56 | 1,346,968,354.17 |
| Item | June 30, 2021 | 2020 |
| Contingent liabilities resulting from the guarantee provided externally | 492,928,937.24 | 973,992,539.81 |
(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 | Reason why the effect cannot be estimated |
| Issuance of ultra-short-term financing bonds | On July 6, 2021, the Company issued Zhejiang China Commodities City Group Co., Ltd.’s 2021 6th issue of ultra-short-term financing bonds with a maturity of 152 days and a one-off repayment of RMB 1 billion, at the interest rate of 2.70%. |
3. Exchange of assets
(1). Exchange of non-monetary assets
□Applicable √Not applicable
(2). Exchange of other assets
□Applicable √Not applicable
4. Annuity plan
□Applicable √Not applicable
5. Termination of operations
□Applicable √Not applicable
6. Information of divisions
(1). Determination basis and accounting policy of reporting divisions
√Applicable □Not applicable
Information of divisions is reported based on business divisions of the Group.In the identification of region-based divisions, revenue is attributable to the divisionsin the regions where the clients are located, and assets are attributable to thedivisions in the regions where the assets are located. As the Group’s mainoperating activities and operating assets are both concentrated in mainland China,it is not required to report more detailed information on region-based divisions.The Group’s businesses are organized and managed separately based on thenature of business and the products and services provided. Each business divisionof the Group is a business department or a subsidiary and provides the productsand services that face the risk different from that faced by other business divisionsand bring the compensations different from those brought by other businessdivisions. The detailed information on business divisions are summarized asfollows:
(a) Market operation segment refers to the business that the Group is engagedin market operation, including the collection of business space usage fees and therent of auxiliary buildings and office buildings;
(b) The commodities sales division engages in the purchase and sale of goodssuch as export trade;
(c) The hotel service division engages in the operation of hotels includingaccommodation and catering services;
(d) The exhibition advertising division engages in the design, production,placement and agency of advertisements;
(e) Other services division covers the provision of market-related auxiliaryservices.
The transfer pricing between divisions is made based on the prices offered tothird parties and the then prevailing market prices.
(2). Financial information of reporting divisions
√Applicable □Not applicable
Unit: RMB million
| Item | Market | Sales | Hotel | Exhibition | Other | Set-offs | Total |
| operation | of goods | service | and advertising | services | among divisions | ||
| Revenue from external transactions | 1,493 | 351 | 68 | 43 | 118 | - | 2,073 |
| Revenue from inter-division transactions | 26 | 4 | 3 | 5 | 15 | 53 | - |
| Loss for asset impairment | - | - | - | - | - | - | - |
| Profits before tax | 1,120 | -20 | -15 | -18 | 26 | 33 | 1,060 |
| Total assets | 38,104 | 679 | 355 | 650 | 4,894 | 14,968 | 29,714 |
| Total liabilities | 23,163 | 944 | 371 | 585 | 1,620 | 11,055 | 15,628 |
| Capital expenditures | 1,117 | - | 70 | 7 | 63 | - | 1,257 |
| Long-term equity investment in joint ventures and associates | 1,273 | 1 | - | - | 25 | - | 1,299 |
| Age | Closing book balance |
| Within 1 year | 6,537,270.58 |
| 1 to 2 years | 111,942.00 |
| 2 to 3 years | 285,968.46 |
| Above 3 years | 6,118.00 |
| Less: bad debt provision for accounts receivable | 46,646.93 |
| Total | 6,894,652.11 |
(2). Disclosure by category according to the method of provision for baddebt
√Applicable □Not applicable
Unit: RMB
| 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 by group | 6,941,299.04 | 100.00 | 46,646.93 | 0.67 | 6,894,652.11 | 14,686,565.66 | 100.00 | 14,988.19 | 0.10 | 14,671,577.47 |
| Total | 6,941,299.04 | / | 46,646.93 | / | 6,894,652.11 | 14,686,565.66 | / | 14,988.19 | / | 14,671,577.47 |
| Name | Closing balance | ||
| Accounts receivable | Bad debt provision | Provision ratio (%) | |
| Provision for bad debt by combination of credit risk characteristics | 6,941,299.04 | 46,646.93 | 0.67 |
| Total | 6,941,299.04 | 46,646.93 | 0.67 |
| Age | June 30, 2021 | 2020 | ||||
| Estimated book balance in default | Expected credit loss rate (%) | Expected credit loss in whole duration | Estimated book balance in default | Expected credit loss rate (%) | Expected credit loss in whole duration | |
| Within 1 year | 6,537,270.58 | 0.01 | 618.70 | 14,267,749.52 | 0.01 | 1,350.33 |
| 1 - 2 years | 111,942.00 | 0.51 | 570.57 | 407,254.08 | 0.51 | 2,075.80 |
| 2 -3 years | 285,968.46 | 13.76 | 39,339.66 | - | 13.76 | - |
| Above 3 years | 6,118.00 | 100.00 | 6,118.00 | 11,562.06 | 100.00 | 11,562.06 |
| Total | 6,941,299.04 | 46,646.93 | 14,686,565.66 | 14,988.19 | ||
| 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 | 14,988.19 | 43,220.80 | 11,562.06 | 46,646.93 | ||
| Total | 14,988.19 | 43,220.80 | 11,562.06 | - | - | 46,646.93 |
2. Other receivables
Presentation of items
√Applicable □Not applicable
Unit: RMB
| Item | Closing balance | Opening balance |
| Interest receivable | 184,625,160.72 | 121,401,210.48 |
| Other receivables | 2,811,620,059.16 | 2,530,239,399.58 |
| Total | 2,996,245,219.88 | 2,651,640,610.06 |
| Item | Closing balance | Opening balance |
| Cash occupation fee for receivables | 184,625,160.72 | 121,401,210.48 |
| Total | 184,625,160.72 | 121,401,210.48 |
Unit: RMB
| Age | Closing book balance |
| Within 1 year | 2,807,478,943.79 |
| 1 to 2 years | 562,964.60 |
| 2 to 3 years | 1,153,947.81 |
| Above 3 years | 3,120,786.98 |
| Less: Provision for bad debts of other receivables | 696,584.02 |
| Total | 2,811,620,059.16 |
| Nature of account | Closing book balance | Opening book balance |
| Financial assistance receivable from joint ventures | 2,791,718,748.00 | 2,480,172,779.00 |
| Receivables from self-operated land | - | 42,493,714.00 |
| Reserve | 1,695,632.28 | 430,887.57 |
| Withholdings, deposit and margin | 18,205,678.88 | 7,142,019.01 |
| Total | 2,811,620,059.16 | 2,530,239,399.58 |
| 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 January 1, 2021 | 285,589.88 | 285,589.88 | ||
| Balance as of January 1, 2021 in the current period | ||||
| Provision made in the current period | 561,077.54 | 561,077.54 | ||
| Current reversal | 120,083.39 | 120,083.39 | ||
| Write-off in current period | 30,000.01 | 30,000.01 | ||
| Balance as of June 30, 2021 | 696,584.02 | - | - | 696,584.02 |
Basis for the bad debt provision made in the current period and for assessingwhether the credit risk of financial instruments has increased significantly:
□Applicable √Not applicable
(10). Provisions for bad debts
√Applicable □Not applicable
Unit: RMB
| 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 | 285,589.88 | 561,077.54 | 120,083.39 | 30,000.01 | 696,584.02 | |
| Total | 285,589.88 | 561,077.54 | 120,083.39 | 30,000.01 | - | 696,584.02 |
| Debtor | Nature of receivable | Closing balance | Age | Weight in the total closing balance of other receivables (%) | Bad debt provision Closing balance |
| Yiwu Guoshen Shangbo Property Co., Ltd. | Financial assistance | 1,372,000,000.00 | Within 1 year | 48.79 | |
| Yiwu Tonghui Shangbo Real Estate Co., Ltd. | Financial assistance | 929,728,548.00 | Within 1 year | 33.06 | |
| Yiwu Handing Shangbo Real Estate Co., Ltd. | Financial assistance | 489,990,200.00 | Within 1 year | 17.42 | |
| Yiwu International Production Material Market Construction Headquarters | Construction commencement deposit | 2,400,000.00 | Above 3 years | 0.09 | |
| Yiwu Power Transmission and Transformation Engineering Co., Ltd. | Guarantee deposit | 279,365.00 | Within 1 year | 0.01 | |
| Total | / | 2,794,398,113.00 | / | 99.37 |
(14). Other receivables derecognized due to transfer of financial assets
□Applicable √Not applicable
(15). Amounts of assets and liabilities formed by the transfer of other receivables and
continuing involvement
□Applicable √Not applicable
Other notes:
□Applicable √Not applicable
3. Long-term equity investment
√Applicable □Not applicable
Unit: RMB
| Item | Closing balance | Opening balance | ||||
| Book balance | Impairment provision | Book value | Book balance | Impairment provision | Book value | |
| Investment in subsidiary | 3,872,595,391.43 | 570,000,000.00 | 3,302,595,391.43 | 3,727,825,391.43 | 570,000,000.00 | 3,157,825,391.43 |
| Investment in associates and joint ventures | 4,342,527,848.74 | - | 4,342,527,848.74 | 2,925,310,036.59 | - | 2,925,310,036.59 |
| Total | 8,215,123,240.17 | 570,000,000.00 | 7,645,123,240.17 | 6,653,135,428.02 | 570,000,000.00 | 6,083,135,428.02 |
| Investee | Opening balance | Increase in the current period | Decrease in the current period | Closing balance | Current provision for impairment | Closing balance of impairment provision |
| Yiwu China Commodities City Supply Chain Management Co., Ltd. | 55,255.03 | 55,255.03 | ||||
| Yiwu China Commodities City Import and Export Co., Ltd. | 50,073,398.48 | 50,000,000.00 | 100,073,398.48 | |||
| Yiwu China Commodities City Tourism Development Co., Ltd. | 100,024,741.06 | 100,024,741.06 | ||||
| Yiwu China Commodities City Overseas Investment and Development Co., Ltd. | 100,041,073.44 | 100,041,073.44 | ||||
| Yiwu China Commodities City Commerce and Trade Service Training Center Co., Ltd. | 100,000.00 | 100,000.00 | ||||
| Zhejiang Yindu Hotel Management Co., Ltd. | 1,570,540.29 | 1,330,000.00 | 2,900,540.29 |
| Yiwu China Commodities City Big Data Co., Ltd. | 81,502,780.94 | 18,550,000.00 | 100,052,780.94 | |||
| Yiwu Global Yida Logistics Co., Ltd. | 21,442.25 | 21,442.25 | ||||
| Yiwu Comprehensive Bonded Zone Operation and Management Co., Ltd. | 6,014,844.64 | 5,800,000.00 | 11,814,844.64 | |||
| Yiwu China Commodities City Research Institute Co., Ltd. | 1,124,741.06 | 2,150,000.00 | 3,274,741.06 | |||
| Zhejiang Huajie Investment and Development Co., Ltd. | 53,121,810.63 | 6,300,000.00 | 59,421,810.63 | |||
| Yiwu International Trade Comprehensive Service Co., Ltd. | 6,597.62 | 6,597.62 | ||||
| Yiwu China Commodities City Assets Operation and Management Co., Ltd. | 5,119,278.43 | 4,920,000.00 | 10,039,278.43 | |||
| Yiwu China Commodities City Exhibition Co., Ltd. | 18,044,533.91 | 18,044,533.91 | ||||
| Yiwu China Commodities City Advertising Co., Ld. | 9,411,856.11 | 9,411,856.11 | ||||
| Hangzhou Shangbo Nanxing Property Co., Ltd. | 50,000,000.00 | 50,000,000.00 | ||||
| Yiwu Commodities City Gonglian Property Co., Ltd. | 200,000,000.00 | 200,000,000.00 | ||||
| Yiwu Shangbo Property Co., Ltd. | 300,000,000.00 | 300,000,000.00 | ||||
| Yiwu China Commodities City Information Technology Co., Ltd. | 200,603,896.42 | 200,603,896.42 | ||||
| Yiwu China Commodities City Payment Network Technology Co., Ltd. | 3,298.81 | 3,298.81 | ||||
| Yiwu China Commodities City Credit Investigation Co., Ltd. | 22,266.95 | 22,266.95 | ||||
| Yiwu China Commodities City Logistics and Distribution Co., Ltd. | 23,449,689.27 | 15,720,000.00 | 39,169,689.27 | |||
| Haicheng Yiwu China Commodities City Investment Development Co., | 43,709.21 | 43,709.21 | 570,000,000 |
| Ltd. | ||||||
| Yiwu China Commodities City Financial Holdings Co., Ltd. | 1,957,469,636.88 | 40,000,000.00 | 1,997,469,636.88 | |||
| Total | 3,157,825,391.43 | 144,770,000.00 | 3,302,595,391.43 | 570,000,000 |
| Investment Unit | Opening amount Balance | Change in the current period | Closing amount Balance | ||
| Additional investment | Reduced investment | Investment gains or losses recognized with the equity method | |||
| 1. Joint ventures | |||||
| Yiwu Shanglv Investment Development Co., Ltd. | 365,830,756.92 | 12,789,131.55 | 378,619,888.47 | ||
| Yiwu Rongshang Property Co., Ltd. | 22,319,075.64 | -1,407,757.91 | 20,911,317.73 | ||
| Yiwu Chuangcheng Property Co., Ltd. | 11,444,786.74 | -2,699,662.50 | 8,745,124.24 | ||
| Others | 8,713,045.31 | 17,850,000.00 | -999,717.25 | 25,563,328.06 | |
| Subtotal | 408,307,664.61 | 17,850,000.00 | 7,681,993.89 | 433,839,658.50 | |
| 2. Associates | |||||
| Binjiang Shangbo | 154,152,267.42 | 98,000,000.00 | 20,772,839.91 | 76,925,107.33 | |
| Huishang Micro-finance | 71,396,566.07 | -1,784,080.98 | 69,612,485.09 | ||
| Chouzhou Financial Lease | 371,320,662.02 | 29,458,129.47 | 400,778,791.49 | ||
| Pujiang Lvgu Property Co., Ltd. | 370,318,840.77 | 117,772,150.42 | 488,090,991.19 | ||
| CCCP | 1,500,517,785.02 | 1,225,000,000.00 | 68,512,883.02 | 2,794,030,668.04 | |
| Others | 49,296,250.70 | 30,000,000.00 | -46,103.60 | 79,250,147.10 | |
| Subtotal | 2,517,002,372.00 | 1,255,000,000.00 | 98,000,000.00 | 234,685,818.24 | 3,908,688,190.24 |
| Total | 2,925,310,036.61 | 1,272,850,000.00 | 98,000,000.00 | 242,367,812.13 | 4,342,527,848.74 |
| Item | Amount in the current period | Amount in the previous period | ||
| Incomes | Costs | Incomes | Costs | |
| Main business | 1,381,597,109.86 | 380,762,791.32 | 1,259,705,715.29 | 391,267,375.06 |
| Other businesses | 206,449,135.92 | 48,328,145.43 | 403,256,371.61 | 26,416,255.20 |
| Total | 1,588,046,245.78 | 429,090,936.75 | 1,662,962,086.90 | 417,683,630.26 |
| Classified by type of contract | Total |
| Types of goods | |
| The use of commercial spaces in the Commodity City and its supporting services | 1,385,613,008.44 |
| Hotel accommodation and catering services | 63,369,848.47 |
| Royalty income | 60,891,687.05 |
| Other services | 8,167,489.86 |
| Classified by business area | |
| China mainland | 1,518,042,033.82 |
| Classified by contract period | |
| Revenue confirmed at certain time point | |
| Hotel catering services | 42,497,500.87 |
| Other services | 2,795,012.09 |
| Revenue confirmed during certain time period | |
| The use of commercial spaces in the Commodity City and its supporting services | 1,385,613,008.44 |
| Hotel accommodation service | 20,872,347.60 |
| Royalty income | 60,891,687.05 |
| Other services | 5,372,477.77 |
| Total | 1,518,042,033.82 |
| Type of contract | Current period |
| The use of commercial spaces in the Commodity City and its supporting services | 1,342,225,022.87 |
| Hotel accommodation service | 9,242,614.59 |
| Total | 1,351,467,637.46 |
The use of commercial spaces in the Commodity City and its supportingservicesThe contractual performance obligation is fulfilled when providing the use ofcommercial spaces in the Commodity City and the supporting services for business.For the use of commercial spaces in the Commodity City and the supportingservices for business, the progress of contract performance is determined based onthe number of using days of the commercial spaces. Customers usually need to payin advance before the use of commercial spaces in the Commodity City and 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 is collected 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 serviceis provided. 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
Other notes:
On June 30, 2021, the transaction price allocated to the remaining performanceobligations was RMB 1,919,954,541.32. The Group expects that this amount will berecognized as an income in the coming 5 years with the progress of relevant serviceprovision.
5. Investment income
√Applicable □Not applicable
Unit: RMB
| Item | Amount in the current period | Amount in the previous period |
| Long-term equity investment income under the equity method | 242,367,812.14 | 22,242,937.96 |
| Investment income from disposal of held-for-trading financial assets | 42,837.72 | 21,130,827.03 |
| Total | 242,410,649.86 | 43,373,764.99 |
6. Others
□Applicable √Not applicable
XVIII. Supplementary information
1. Detailed statement of current non-recurring items
√Applicable □Not applicable
Unit: RMB
| Item | Amount | Explanation |
| Gain or loss from the disposal of non-current assets | -630,703.53 | |
| Government grants that are recognized in the current profit or loss, excluding government grants that are closely related to the businesses of the Company and are provided in a fixed amount or quantity according to the unified national standards | 8,679,086.10 | The main reasons include that, the value-added tax deductible input tax for taxpayers of production and living services plus 100% was used to deduct tax payable for RMB 2.8458 million, the special incentive fund for modern supply chain system innovation for 2020 was RMB 2.6827 million, the opening-up promotion reward from for 2020 was RMB 960,700, the subsidy for pilot counties in service industry for 2020 was RMB 500,000, the interest subsidy for funding of the construction of the International Expo Center was RMB 577,400, and the reward for general trading companies was RMB 336,200, and so on. |
| Cash occupation fees charged from non-financial enterprises that are recognized in the current profit or loss | 50,288,507.85 | Cash occupation fee for receiving financial aid |
| Gain or loss from changes in fair value of held-for-trading financial assets, derivative financial assets, financial liabilities held for trading and derivative financial liabilities, and investment income from the disposal of held-for-trading financial assets, derivative financial assets, financial liabilities held for trading, derivative financial liabilities and | 1,171,429.82 | Mainly changes in the fair value of held-for-trading assets |
| other debt instruments, except for effective hedging during the ordinary course of business | ||
| Net income from other non-operating activities | 955,973.37 | |
| Effect of income tax | -14,839,076.88 | |
| Effect of minority interest | -91,655.24 | |
| Total | 45,533,561.49 |
| 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 | 6.09 | 0.16 | 0.15 |
| Net profits attributable to common shareholders of the Company after deducting non-recurring gains and losses | 5.77 | 0.15 | 0.15 |