Company Code: 600415 Stock Short Name: 小商品城
Zhejiang China Commodities City Group
Co., Ltd.Semi-annual Report for 2022
Important NoteI. The Board of Directors, the Board of Supervisors and the directors, supervisors and
senior management of the Company hereby warrant the truthfulness, accuracy andcompleteness of the contents of the Semi-annual Report, guarantee that there are no falserepresentations, misleading statements or material omissions contained in thisSemi-annual Report, and are jointly and severally responsible for the liabilities of theCompany.
II. All directors of the Company were present at the board meeting.
III. This semi-annual report has not yet been audited.
IV. ZHAO Wenge, Legal Representative, WANG Dong, Head in charge of accounting, and
ZHAO Difang, Head of Accounting Department (Accounting Supervisor) hereby state that,they guarantee 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 directorsNil
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 fornon-operational purposes?No
VIII. Has the Company provided external guarantee in violation of the prescribeddecision-making procedures?No
IX. Whether there is circumstance that more than half of the directors cannot guarantee
the authenticity, accuracy and completeness of the semi-annual report disclosed by theCompanyNo
X. Reminder of major risksThe Company has described the risks that may exist in this Report in details. Please refer to“Potential Risks” in “Section III Discussion and Analysis of Managers” of this Report.
XI. Others
□Applicable √Not applicable
Table of Contents
Section I. Definitions ......................................................................................................... 5
Section II. Company Profile and Financial Highlights .................................................. 6
Section III. Discussion and Analysis of Managers ......................................................... 9
Section IV. Corporate Governance ................................................................................. 30
Section V. Environmental and Social Responsibilities ............................................... 35
Section VI. Significant Matters ......................................................................................... 36
Section VII. Changes in Shares and Shareholders ....................................................... 46
Section VIII. Preferred Shares .......................................................................................... 50
Section IX. Bonds .............................................................................................................. 51
Section X. Financial Report ............................................................................................ 57
| Documents for Inspection | Accounting statements with the signatures and stamps of the person incharge of the Company, person in charge of accounting and person in charge of the accounting department. |
| Resolutions of the 52 th Meeting of the 8th Board of Directors, resolutions of the 15 th Meeting of the 8th Board of Supervisors | |
| Written confirmation opinions of directors, supervisors and senior management on the Company's 2022 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. |
| CCCH | means | Yiwu China Commodities City Holdings Limited |
| CCCP | means | Yiwu China Commodities City Property Development Co., Ltd. |
| CCCF | means | Yiwu China Commodities City Financial Holdings Co., Ltd. |
| Huishang Micro-finance | means | Yiwu Huishang Micro-finance Co., Ltd. |
| Haicheng Company | means | Haicheng Yiwu China Commodities City Investment Development Co., Ltd. |
| Yiwu Shanglv | means | Yiwu Shanglv Investment Development Co., Ltd. |
| Chouzhou Financial Lease | means | Zhejiang Chouzhou Financial Lease Co., Ltd. |
| Pujiang Lvgu | means | Pujiang Lvgu Property Co., Ltd. |
| Handing Shangbo | means | Yiwu Handing Shangbo Real Estate Co., Ltd. |
| Huangyuan Shangbo | means | Yiwu Huangyuan Shangbo Property Co., Ltd. |
| Yiwu Rongshang Property | means | Yiwu Rongshang Property Co., Ltd. |
| Yiwu Chuangcheng Property | means | Yiwu Chuangcheng Property Co., Ltd. |
| Chengzhen Property | means | Yiwu Chengzhen Property Co., Ltd. |
| Tonghui Shangbo | means | Yiwu Tonghui Shangbo Real Estate 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 | 浙江中国小商品城集团股份有限公司 |
| Chinese short name | 小商品城 |
| English name | Zhejiang China Commodities City Group Co.,Ltd |
| English short name | YIWU CCC |
| Legal representative | ZHAO Wenge |
II. Contact information
| Board Secretary | Securities Affairs Representative | |
| Name | XU Hang | RAO Yangjin |
| Address | Haiyang Business Building, No.105 Futian Road, Yiwu | Haiyang Business Building, No.105 Futian Road, Yiwu |
| Telephone | 0579-85182812 | 0579-85182812 |
| Fax | 0579-85197755 | 0579-85197755 |
| Hxu@cccgroup.com.cn | Hxu@cccgroup.com.cn |
III. Introduction to changes in basic information
| 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 |
IV. Changes in information disclosure and filing place
| 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 |
V. Stock profile
| Type of stock | Exchange | Stock short name | Stock code | Stock short name before change |
| A-share | Shanghai Stock Exchange | 小商品城 | 600415 | Nil |
VI. Other relevant information
□Applicable √Not applicable
VII. Major accounting data and financial indicators of the Company(i) Major accounting data
Unit: RMB
| Major accounting data | Current reporting period (Jan-Jun 2022) | Jan-Jun 2021 | Increase/decrease during the reporting period over the same period of the previous year (%) |
| Operating revenue | 4,207,027,616.46 | 2,072,627,727.00 | 102.98 |
| Net profits attributable to shareholders of the Listed Company | 1,222,205,978.81 | 850,514,460.93 | 43.70 |
| Net profits attributable to shareholders of the Listed Company with non-recurring items excluded | 1,181,715,806.64 | 804,980,899.44 | 46.80 |
| Net cash flow from operating activities | -666,587,333.62 | 166,735,824.75 | -499.79 |
| As of the end of the current reporting period | As of the end of 2021 | 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 | 15,381,084,979.34 | 14,610,845,868.33 | 5.27 |
| Total assets | 30,206,562,945.71 | 31,014,635,513.35 | -2.61 |
(ii) Major financial indictors
| Major financial indictors | Current reporting period (Jan-Jun 2022) | Jan-Jun 2021 | Increase/decrease during the reporting period over the same period of the previous year (%) |
| Basic EPS (RMB) | 0.22 | 0.16 | 37.50 |
| Diluted EPS (RMB) | 0.22 | 0.15 | 46.67 |
| Basic EPS after deducting non-recurring gains and losses (RMB/share) | 0.22 | 0.15 | 46.67 |
| Weighted average ROE (%) | 8.05 | 6.09 | Up 1.96 ppt |
| Weighted average ROE after deducting non-recurring gains and losses (%) | 7.78 | 5.77 | Up 2.01 ppt |
Illustration on major accounting data and financial indicators
□ Applicable √Not applicable
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 | Remarks (if applicable) |
| Gain or loss from the disposal of non-current assets | -54,710.90 | |
| 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 | 16,645,616.31 | Please refer to details of other income and government grants accounted for profit or loss for the current period |
| Cash occupation fees charged from non-financial enterprises that are recognized in the current profit or loss | 32,264,049.60 | 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 debt instruments, except for effective hedging during the ordinary course of business | -390,717.89 | Investment income from disposal of financial assets held for trading, and gains and losses from changes in fair value of financial assets held for trading |
| Net income from other non-operating activities | 3,443,596.86 | Mainly confiscated deposits, collected liquidated damages and other similar items |
| Other profit and loss items that meet the definition of non-recurring profit and loss | 26,619.73 | |
| Less: effect of income tax | 10,410,076.49 | |
| Effect of minority interest (after-tax) | 1,034,205.05 | |
| Total | 40,490,172.17 |
Expanation about defining the non-recurring profit and loss items listed in the Explanatory Notice No.1 of Information Disclosure of Companies Publicly Issuing Securities - Non-recurring Profit and Lossitems as the current profit and loss items
□Applicable √Not applicable
X. Others
□Applicable √Not applicable
Section III. Discussion and Analysis of ManagersI. Description of the industry and the Company’s main business during the reportingperiod(i) Description of the industry to which the Company belongsIn recent years, thanks to China's stable economic and social development and its leadingposition in the world in pandemic prevention and control, China's potential of the foreign tradeindustry was fully tapped and its comprehensive competitiveness continued to improve. Thechanging flow of commerce promoted the emergence and evolution of the structural trend of foreigntrade. China is at the key point of "top-down" comprehensive transformation and upgrading offoreign trade in the national strategy, and Yiwu plays a pivotal role in this key point.
1. Industry policy
The "Opinions of the Central Committee of the Communist Party of China and the State Councilon Accelerating the Construction of a Large National Market" (hereinafter referred to as the"Opinions") was released in April 2022. The "Opinions" provide an action plan for the construction ofa large national market in the future. It is mentioned in the "Opinions" that it is necessary to optimizethe layout of commercial and trade circulation infrastructure, accelerate digital construction, promotethe integrated development of online and offline, and form more new platforms, new formats andnew models of commercial and trade circulation. It is mentioned in the "Opinions" that vigorouslydevelop third-party logistics, support the construction of digital third-party logistics delivery platforms,promote innovation in technology and business models in the third-party logistics industry, cultivate agroup of digital platform companies and supply chain companies with global influence, and promotecost reduction and efficiency in logistics across society.
2. Yiwu Market
As an "important window" for import and export trade, Yiwu achieved a total import and exportvolume of RMB 222.25 billion yuan in the first half of the year, up 32.8% YoY; of which exports wereRMB 202.95 billion yuan, up 28.3% YoY; imports were RMB 19.30 billion yuan, up109.5% YoY.
Yiwu's express delivery business continues to be at the forefront of the country, and is known asthe "wind vane" of the national express delivery business. In the first half of the year, the businessincome of the postal industry in Yiwu City (excluding the direct operating income of the PostalSavings Bank) reached a total of RMB 13.11 billion yuan, up 14.3% YoY; the business volume ofYiwu express service enterprises reached a total of 4.245 billion pieces, and the business incomereached a total of RMB 12.2 billion yuan, up 11.3% YoY.
(ii) Description of main business
According to the definitions in the Guidelines for Industry Classification of Listed Companies(revised in 2012) released by the CSRC, the Company is engaged in “Business Service” (L72) in“Lease and Business Service” (L).
1. Main Business
The Company is engaged in market development and operation and supporting services,providing online trading platform and services, online trading market development and operation,etc., belonging to the comprehensive industry category.
2. Business 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 shops. The Company adopts a shop rental model, that is, the ownership of the shopsbelongs to the Company, and market traders only have the right to use the shop within the contractperiod. The Company and market traders sign a contract to clearly stipulate the use period, usagefee and business purpose of the shops. The merchant shall not change the agreed businesspurpose, and shall not sublet without the Company’s consent. Generally, the payment methods ofusage fee are one-time payment or installment payment according to the contract terms. Currently,the markets that the Company is responsible for operating include Zone 1 to Zone 5 of theInternational Trade City, Importing Market, Zone 1 East Expansion Market, Huangyuan Market andInternational 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 over 2 million micro, small, and medium 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.
II. Analysis of core competencies during the reporting period
√Applicable □Not Applicable
(i) First-mover advantages
At the start of China’s reform and opening-up, Yiwu took the lead in establishing 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 2.1 million products, which fallinto 26 categories and supports one-stop purchase. The market boasts enormous resources andhuge business 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 hascomplete commercial and trade supporting facilities, and has significant advantages in logistics anddistribution service clusters. It vigorously builds a "new eight routes" logistics system consisting ofhighways, railways, sea routes, air routes, postal routes, Internet, Yixinou and Yiyongzhou. Yiwu hasbeen listed among the “commerce and trade-oriented national logistics hubs” by the NationalDevelopment and Reform Commission and the Ministry of Transport.
2. Industry support
Yiwu City has planned and developed two industrial zones in the northeast and southwest,covering an area of 100 square kilometers each, led by foreign investment zones, according to itslocation advantages and industry layout characteristics. The northeastern industrial zone of Yiwufocuses on the development of high-tech and advantageous industries such as export productprocessing, clothing, knitting, and printing; the southwestern industrial zone of Yiwu has been builtinto an internationally competitive modernization, International manufacturing base.
In recent years, thanks to the Yiwu China Commodities City, the Yiwu-centered manufacturingindustry cluster has been developing fast, an commodities industrial belt that covers Jinhua, Lishui,Quzhou, Hangzhou, Jiaxing, Huzhou, Shaoxing, Ningbo, Wenzhou and Taizhou with an area ofnearly 10,000 km
has been established, and it has magnified Yiwu Market's advantages andcontinued to create values for circulation of small commodities.
3. Development of 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) Advantages of digital market
The Company's International Trade City is the world's leading small commodity entity market.The "Yiwu Small Commodities City" platform (www.chinagoods.com), as the official website of YiwuMarket, was officially launched in October 2020. The platform builds a framework system of "marketentities + business platforms + service platforms + infrastructure", builds a full-link, full-scenario,digital market and trade ecosystem, demonstrates "a platform on the cloud, a network on theground", and jointly promotes the in-depth development of the market trade system of "online and
offline integration, import and export linkage, communication between domestic and overseasmarket, and simutaneous developemt of domestic and foreign trade". In the context of the era ofcommon prosperity, it serves the domestic and international dual circulation.
(v) Advantages of 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.(vi) Management advantagesIn 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 well-established management systems for marketoperation and management, accumulated rich experience in operation and management, and hascultivated a professional management team with reasonable knowledge and expertise structuresand strategic development insights.
III. Discussion and analysis of operation status2022 is the year of the 20th National Congress of the Communist Party of China, a key year forthe implementation of the "14th Five-Year Plan", and the 40th anniversary of Yiwu Market. In the firsthalf of the year, facing the challenges of repeated global outbreaks of Covid-19, geopolitical conflicts,rising raw material and logistics costs, and accelerated onlineization of traditional foreign trade forms,the Company focused on the strategic goal of an integrated service provider for international trade,and under the framework of a unified national market, the Company coordinated the prevention ofthe Covid-19 pandemic and promotion of transformation development, to break through the physicallimitations of traditional business with digital reform, consolidate and enhance the corecompetitiveness of the Market.
In the first half of 2022, the total import and export volume of Yiwu City was RMB 222.25 billionyuan, up 32.8% YoY. Among them, exports were RMB 202.95 billion yuan, up 28.3% YoY. Importswere RMB 19.30 billion yuan, up 109.5% YoY. Market procurement trade was still the main forcedriving the growth of Yiwu's export share. In terms of region, the total import and export volume toNorth America and the EU increased by more than 70% YoY, and the growth rate of the total importand export volume to East Asia such as South Korea increased by over 150%. The shift tosmall-town and rural markets in some regions and the signing of the RCEP agreement have broughtnew opportunities to the Yiwu Market.
During the reporting period, the Company's operating income was RMB 4.207 billion, up
102.98% YoY, and the net profit attributable to shareholders of the Listed Company was RMB 1.222billion, up 43.70% YoY.
(i) Market operation
1. Overview of market operation
During the reporting period, the Company effectively carried out Covid-19 pandemic preventionand control work, and took multiple measures to continue to stimulate market vitality. The occupancyrate of booths remained above 96%. From January to June, the market turnover was RMB 99.967billion, up 3.71% YoY.
2. Expansion of the domestic markets
In the first half of the year, the construction of the domestic markets progressed in an orderlymanner. The Company's Yiwu International Trade City Second District East Market has completedthe project construction and business location at the end of June. At present, investment promotionwork has started. The Second District East Market has a construction area of about 132,000 squaremeters. It is adjacent to the International Trade City Station of light rail lines. The area of anindividual shop has been increased, making it easier to display diversified products in an all-roundway. As a model of the sixth-generation market in Yiwu, the East Market of the Second District hasimplanted a series of digital applications, such as AI cameras, interactive screens, etc., to provideintelligent services such as AI interaction; it improves the efficiency of product selection andprocurement by using applets and contact points in the market, and use efficiency to measure thelevel of market digital services and iterating digital technology.
3. Overseas market expansion
Dubai Yiwu China Commodities City (hereinafter referred to as Dubai Market) was officiallyopened as of the end of June, with an overall occupancy rate of nearly 99%. It takes a 15-minutedrive from Maktoum Airport and Jebel Ali Port, one of the largest ports in the Middle East, to theDubai Market, effectively radiating the consumer market of nearly 1 billion people around (the MiddleEast, North Africa, Europe, etc.). The Dubai Market is the first overseas submarket in the Company's"global strategy", and it is also one of the important measures for the Company to integrate into thenew development pattern of domestic and international dual circulation.
Dubai is the "Gateway to the Middle East" and the largest trade distribution center forMade-in-Yiwu commodities in the Middle East. The Dubai Market has broken through the limitationof time and space, which is equivalent to moving the Yiwu market overseas, and gradually "moving"more than 2 million kinds of commodities to Dubai, solving the problems of foreign buyers not beingable to come to Yiwu to purchase, the lack of physical experience of online display, and the lowinefficiency of online communication, etc. At the same time, the project has built a goldeninternational logistics channel between Yiwu and Dubai to promote the efficient flow of Chinesecommodities in the UAE, and make Dubai a "bridgehead" for Chinese commodities to seamlesslyconnect with the Middle East, Africa and Europe.
(ii) Digital reform
1. Digital + Market
(1) Chinagoods platform
Yiwu Market's official website "Yiwu Small Commodities City" platform (www.chinagoods.com,referred to as "chinagoods platform") relies on the Company's market resources of 75,000
brick-and-mortar stores to serve more than 2 million small, medium and micro enterprises in theupstream of the industry chain. During the reporting period, the chinagoods platform achieved GMVof RMB 15.178 billion.The chinagoods platform takes the integration of trade data as the core driving force, meets theneeds of both supply and demand in production, display transactions, warehousing and logistics,financial credit, market management and other links, and builds a real, open and integrated digitalcomprehensive service platform for trade. It's the core carrier for the Company to realize thedigitalization of trade.
(2) Caigoubao
Caigoubao was launched on the chinagoods platform in November 2021. In view of thecharacteristics of scattered orders, LCL declaration, and no-ticket tax exemption in marketprocurement trade, combined with the "cargo unitizer system", one-click "documentary procurement","digital cargo examination", "loading and shipping" and "smart customs declaration" can be realized.The order sheet, packing list, customs declaration form and foreign exchange settlement form areconnected in series to form a unique closed-loop information of market procurement trade methods;chinagoods platform logistics, overseas warehouses, supply chain financial services and otherfunctions form a closed loop of logistics; licenses of the Company for payment, factoring, small loans,local and foreign currency exchange, and products such as Daikuanbao amd Jiehuibao are used toform a closed loop of payment flow and capital flow. "Three Flow Convergence" simplifies trade links,improves trade efficiency, and helps Chinese small commodities go overseas. As of the end of thereporting period, the transaction volume of Caigoubao was 503 million.
(3) Benben Zhaohuo
Benben is the mascot of chinagoods platform. Benben Zhaohuo by adopting the "Didi Model" toallow buyers to issue personalized needs, gradually get rid of the dependence on the traditional"search" transaction model, try to break the "rat race" of advertising industry, and combine the "BeikeModel" with the endorsement of offline store certification and selection. Integrate supply, empower
"transformation of foreign trade into domestic trade" in the form of services, achieve new, revitalized,and precise access to effective users, and improve circulation efficiency.Benben Zhaohuo has been online for a quarter, with an average daily consultation volume ofabout 1,500, and maintains an average monthly growth of more than 50%. During the reportingperiod, Benben Zhaohuo realized response to a business opportunity clue within 1 hour, merchantsoffering quotations within 4 hours, and 24-hour tracking service guarantee, reaching merchants 3.3million times.
2. Digital + Finance
(1) Payment
At present, the Company has completed the acquisition of payment licenses, and will provideservices such as smart cashiers, cross-border payments, and smart account sharing for the smallcommodity industry ecosystem. Focusing on the payment and settlement business, the Companypromotes the digital transformation of the Yiwu Market, builds a closed loop of "people-goods-field"for capital flow and information flow, and builds a new strategic financial infrastructure for digitaltrade globalization.
(2) Pilot program of e-CNY application
The pilot program of e-CNY application in the International Trade City has been fully launched.The Company relies on the rich trade scenarios in Yiwu to carry out the pilot program of e-CNY,actively explores the "Yiwu model" and "Yiwu experience", expands the application and innovation ofe-CNY in the field of commercial and trade circulation, and builds multi-industry participation in thee-CNY circulation ecosystem. As of June 30, there were 22,395 merchants accepting e-CNY and36,589 e-CNY wallets.(iii) Self-operated trade
During the reporting period, the Company focused on the strategic goal of "comprehensiveservice provider for international trade", entered the upstream and downstream of market tradethrough self-operated trade, gave full play to the Company's platform and brand advantages, linkedtrade with the market and fed back the market, forming a situation of virtuous and orderly cycle.
The Company has deployed self-operated trade since 2019. After more than two years ofmarket exploration and customer development and accumulation, by the second half of 2021, theself-operated trade business had ushered in explosive growth. In the first half of 2022, relying on theCompany's advantages in overseas centralized procurement, the customer stickiness was relativelyhigh, and the domestic distribution demand was relatively strong, which maintained a certain growthscale; however, due to the of global outbreaks of Covid-19 pandemic and other factors, there are stilluncertain factors in the international trade business. In the first half of 2022, trade revenue was RMB
2.401 billion yuan, an increase of 584.05% from RMB 351 million yuan in the same period last year.
(iv) Increasing speed and efficiency of construction of commercial and trade
infrastructure
1. Domestic cloud warehouse
Intensive and automated warehousing facilities and equipment have been introduced intochinagoods shared cloud warehouses, which have attracted a number of industry chambers ofcommerce to settle in. The Company explores models such as "digital inventory management andstandardized cross-border sales of non-standard small commodities" and digital operation ofindustry vertical warehouses to better meet the warehousing needs of small, medium and microtraders. The overall occupancy rate in the first half of the year was over 86%.
2. Overseas warehouse
The overseas warehouse is an important overseas node for cross-border trade, a new type offoreign trade infrastructure, and an important platform for driving the growth of foreign trade anddeveloping overseas markets. During the reporting period, the Company continued to actively build anetwork of overseas warehouses and trade hubs, integrated trade service resource elements, andstrived to create a trade performance business supported by overseas warehouse cargo andpayment control, which includes warehousing, cargo unitizing and financial services. The Companyhad a total of 144 overseas warehouses with an area of over 1.1 million square meters, covering 47countries around the world, and initially formed 5 warehouse groups in America, Asia, Europe, Africaand Oceania. In trade node cities in Germany, Rwanda, the Czech Republic and other countries, 20"Take You to China" series of trade service centers have been established to promote theadvancement of the commodities market and lay a solid foundation for trade facilitation anddigitalization.
Major changes in the Company's business conditions during the reporting period, and eventsoccurring during the reporting period that have a major impact on the Company's businessconditions and are expected to have a major impact in the future
□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 | Jan-Jun 2021 | Jan-Jun 2021 | YoY change (%) |
| Operating revenue | 420,702.76 | 207,262.77 | 102.98 |
| Operating cost | 315,929.81 | 92,541.06 | 241.39 |
| Sales expenses | 9,328.21 | 7,404.29 | 25.98 |
| Administrative expenses | 22,657.14 | 16,669.89 | 35.92 |
| Financial expenses | 6,289.19 | 4,735.10 | 32.82 |
| R&D expenses | 570.80 | 456.91 | 24.93 |
| Net cash flow from operating activities | -66,658.73 | 16,673.58 | -499.79 |
| Net cash flow from investing activities | -47,226.21 | -3,616.21 | Not applicable |
| Net cash flow from financing activities | 60,377.06 | -20,435.12 | Not applicable |
Reasons for the change in operating revenue: the Company’s operating revenue increased by
102.98% YoY, mainly due to the increase in the sales of goods during the current period.Reasons for the change in operating cost: the Company’s operating cost increased by 241.39% YoY,mainly due to the increase in the sales of goods during the current period.Reasons for changes in administrative expenses: administrative expenses increased by 35.92% YoY,due to the YoY increase in the accrued wages based on benefits in the first half of the year, due tothe YoY increase in benefits according to the method for accruing total wages.Reasons for changes in financial expenses: Financial expenses increased by 32.82% YoY, due tothe decrease in interest income.Reasons for the change in the net flow generated by operating activities: mainly due to an decreaseof RMB 868 million in net cash deducted from payment for selling goods and providing services.Reasons for changes in net cash flow from investment activities: mainly because the net outflow ofinvestment during the current period increased by RMB 278 million YoY, and cash paid forpurchasing and construction of fixed assets, intangible assets and other long-term assets increasedby RMB 116 million YoY.Explanation for the change in the net cash flow from financing activities: mainly due to an increase ofRMB 885 million YoY in the net inflow of financing in the current period.
2 Details of material changes to the business types, the components or sources of profits
of the Company in this reporting period
□Applicable √Not applicable
(ii) Material changes to profits caused by non-main businesses
□Applicable √Not applicable
(iii) Analysis of assets and liabilities
√Applicable □Not applicable
1. Assets and liabilities
Unit: RMB10,000
| Item | Amount at the end of the current period | % of total assets at the end of the current period | Amount at the end of the same period of 2021 | 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 | 449,933.40 | 14.90 | 483,146.84 | 15.58 | -6.87 | |
| Receivables | 7,378.22 | 0.24 | 18,523.75 | 0.60 | -60.17 | Mainly due to the collection of receivables from the sales of goods |
| Inventory | 168,475.51 | 5.58 | 132,740.26 | 4.28 | 26.92 | |
| Property investment | 291,645.32 | 9.66 | 297,393.64 | 9.59 | -1.93 | |
| Long-term equity investment | 577,395.84 | 19.11 | 577,245.52 | 18.61 | 0.03 | |
| Fixed assets | 486,272.61 | 16.10 | 507,859.09 | 16.37 | -4.25 | |
| Construction in progress | 169,809.72 | 5.62 | 109,057.80 | 3.52 | 55.71 | Mainly due to the payment for construction projects such as comprehensive bonded zone |
| Right-of-use assets | 21,125.81 | 0.70 | 22,534.71 | 0.73 | -6.25 | |
| Short-term borrowings | 58,743.58 | 1.94 | 94,273.61 | 3.04 | -37.69 | Due to repayment of due borrowings |
| Contract liabilities | 265,058.06 | 8.77 | 405,841.92 | 13.09 | -34.69 | Mainly due to the carry-forward of advance market payment on schedule |
| Long-term borrowings | 20,450.00 | 0.68 | 77,125.00 | 2.49 | -73.48 | Due to repayment of due borrowings |
| Lease liabilities | 20,360.25 | 0.67 | 20,594.27 | 0.66 | -1.14 |
Other descriptionNil
2. Overseas assets
√Applicable □Not applicable
(1) Scale of assets
Among them: offshore assets was RMB 880 million, accounting for 2.91% of the total assets.
(2) Explanation one the high proportion of offshore assets
□Applicable √Not applicable
Other statementsNil
3. Encumbrances on major assets as of the end of the reporting period
√Applicable □Not applicable
Unit: RMB
| Item | June 30, 2022 | 2021 |
| Cash and cash equivalents | 60.88 | 60.78 |
| Long-term equity investment | 102,918,559.00 | 102,918,559.00 |
| Other non-current financial assets | 636,870,392.09 | 636,870,392.09 |
| Total | 739,789,011.97 | 739,789,011.87 |
1. As of June 30, 2022, bank deposits with a book value of RMB 60.88 (December 31, 2021:
RMB 60.78) were restricted for ownership or use rights due to being as security deposits forobtaining commercial housing mortgage loan.
2. As of June 30, 2022, long-term equity investments with a book value of RMB 102,918,559.00(December 31, 2021: RMB 102,918,559.00) and other non-current assets of RMB 636,870,392.09(December 31, 2021: RMB 636,870,392.09) were frozen by Shanghai Municipal Public SecurityBureau.
4. Other statements
□Applicable √Not applicable
(iv) Analysis of investments
1. Overview of external equity investment
At the end of June 2022, the external investment amounted to RMB 7,936,163,100 (includingRMB 51,033,600 for financial assets held for trading, RMB 538,083,300 for investment in otherequity instruments, RMB 1,573,087,800 for other non-current financial assets, and RMB5,773,958,400 for long-term equity investment), a decrease of RMB 78,674,500 or 0.98%, from RMB8,014,837,600 (including RMB 75,375,100 for financial assets held for trading, RMB 642,188,000 forinvestments in other equity instruments, RMB 1,524,819,300 for other non-current financial assets,and RMB 5,772,455,200 for long-term equity investments) at the end of the previous year. The mainchanges are as follows:
I. Long-term equity investment during the reporting period increased by RMB 1,503,100 YoY,mainly due to:
1. The net investment cost decreased by RMB 4.3813 million. The investment principalincreased by RMB 20,118,700, including: RMB 19,493,700 for JEBEL ALI FREE ZONE TRADERMARKET DEVELOPMENT AND OPERATION FZCO, RMB 625,000 for Zhejiang Yixinou SupplyChain Management Co., Ltd.; the recovered investment principal of RMB 24,500,000 was due to therecovery of investment funds from Hangzhou Binjiang Shangbo Real Estate Development Co., Ltd.
2. A net increase of RMB 5,884,400 was recorded in the accrued income by equity method.Among them, the investment income and other equity changes accrued during the reporting period
were RMB 748.7954 million; the dividends received were RMB 742.9110 million, including RMB
580.8656 million from Rongshang Real Estate, RMB 88.2 million from Pujiang Lvgu, RMB 60 millionfrom Chuangcheng Real Estate, and RMB 13.8454 million from Hangzhou Binjiang Shangbo RealEstate Development Co., Ltd.
II. During the reporting period, the investment in other equity instruments decreased by RMB
104.1047 million year-on-year, due to the change in fair value of Shenwan Hongyuan Group Co.,Ltd.
III. During the reporting period, the financial assets held for trading decreased by RMB24,341,500 YoY, which was mainly due to the decrease of RMB 22,675,800 from the sale of part ofthe equity of Orient International Venture Co., Ltd.IV. During the reporting period, other non-current financial assets increased by RMB 48.2685million compared with the end of the previous year, mainly due to the newly added RMB 60 millionfor Suzhou Xiangzhong Venture Capital Partnership (Limited Partnership) and the recovery ofinvestment funds of RMB 11.1851 million from Nantong Zijing Huatong Equity InvestmentPartnership (Limited Partnership).The main investment is as follows:
Unit: RMB10,000
| Invested target | Main business | Cost of investment | Book value at the end of June 2022 | Shareholding ratio (%) |
| 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 | 285,826.24 | 49.00 |
| Yiwu Hongyi Equity Investment Fund Partnership (limited partnership) | Investment management, equity investment, asset management and investment consulting (without approval of the industry regulatory authorities such as the finance regulatory authority, the Company shall not be engaged in the absorption of deposits, financial guarantee, agency wealth management, fundraising (financing) from the public and other financial businesses) | 84,000.00 | 89,525.45 | 49.975 |
| Yiwu Shangfu Chuangzhi Investment Center (limited partnership) | Asset management, investment management, and investment consulting service | 61,751.14 | 63,687.04 | 74.9982 |
| Shenwan Hongyuan Group Co., Ltd. | Securities brokerage, securities investment consulting and securities underwriting & sponsorship | 55,362.54 | 53,808.33 | 0.501 |
| 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 | 39,024.18 | 49.00 |
| Pujiang Lvgu Property Co., Ltd. | Real estate development, sales, leasing and property management | 37,365.79 | 38,094.79 | 49.00 |
| 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 | 46,169.00 | 26.00 |
| Nantong Redbud Huatong Equity Investment Partnership (limited partnership) | Equity investment; investment consulting; and investment management | 18,881.49 | 24,752.50 | 21.05 |
| 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 | 8,388.54 | 23.00 |
| Shenzhen Tiantu Investment Management Co., Ltd. | PE investment management in the consumer goods industry | 11,438.62 | 4,003.52 | 1.536 |
| 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 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) | 10,000.00 | 10,667.13 | 9.43 |
| Suzhou Xiangzhong Venture Capital Partnership (Limited Partnership) | Venture capital (limited to investment in unlisted enterprises); Equity investment | 10,000.00 | 10,761.35 | 17.17 |
| 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] | 8,152.97 | 11,562.84 | 17.51 |
| 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 | 9,299.65 | 7,601.60 | 30.00 |
| Beijing Redbud Huarong Equity Investment Partnership | Asset management, investment management and investment consulting | 6,171.78 | 13,846.69 | 12.36 |
| Yiwu Rongshang Property Co., Ltd. | Real estate development and operation, landscape engineering and decoration engineering | 5,000.00 | 10,975.31 | 49.00 |
| 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) | 3,277.64 | 6,762.49 | 10.42 |
| 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 | 4,854.75 | 0.75 |
| 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 | 11,151.71 | 0.5631 |
| 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. | 2,768.54 | 2,603.05 | 0.39 |
| Yiwu Shanfeng Investment Partnership (limited partnership) | Investment management, asset management and investment consulting | 2,600.00 | 2,388.19 | 56.40 |
| Yiwu Meipinshu Supply Chain Management Co., Ltd. | Supply chain management service, software development, and business management consulting | 2,570.14 | 2,690.74 | 22.11 |
| 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 | 2,458.81 | 51.00 |
| Yiwu Guoshen Shangbo Property Co., Ltd. | Real estate development, sale and lease; real estate brokerage service, interior decoration service; and landscaping service | 2,000.00 | 3,819.20 | 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 | 1,689.66 | 39.60 |
| 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 | 13,597.44 | 24.00 |
(1) Major equity investments
√Applicable □Not applicable
| Invested target | Main business | Actual investment amount during the reporting period (RMB10,000) | Percentage in total equity in the invested project By the end of the reporting period (%) | Remarks |
| 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 | 1,949.37 | 30.00 |
The subscribedcapital was AED
50.40 million, and
as of the end of thereporting period,the actual capitalcontributed wasAED 50.40 million
| Suzhou Xiangzhong Venture Capital Partnership (Limited Partnership) | Venture capital (limited to investment in unlisted enterprises); Equity investment | 6,000.00 | 17.17 | The subscribed capital was RMB 200 million, and as of the end of the reporting period, the actual capital contributed was RMB 100 million |
(2) Major non-equity investments
√Applicable □Not applicable
Unit: RMB10,000
| Item | Project amount | Progress | Investment amount in current period | Accumulative invested amount |
| The Yiwu Comprehensive Bonded Zone Project | 624,250.00 | The BD warehouse has been completed and put into use, the main part of the north area of the import market has been completed, 90% of the main project of the basement in the north and the south has been completed, the main part of the north area of the processing park has been completed, and 25% of the main part of the project in the south area has been completed. | 55,936.22 | 196,857.57 |
| Yiwu Digital Trade Industrial Park | 39,579.00 | The concrete pouring and tamping of the 18th floor of the core tube has been completed, 80% of the 12th floor slab has been laid, and 42% of the main body has been completed. | 2,675.90 | 8,682.98 |
(3) Financial assets measured with fair value
√Applicable □Not applicable
Unit: RMB10,000
| Name | Initial investment cost | Opening book value | Closing book value | Gains or losses during the reporting period | Accounting item | Source of funds |
| Guangdong Yangshan Union Precision Manufacturing Co., Ltd. | 0.31 | - | 0.31 | - | Held-for-trading financial assets | Self-owned funds |
| Wealth management products | 2,500.00 | 2,500.00 | 2,500.00 | 2.66 | Held-for-trading financial assets | Self-owned funds |
| Oriental International Entrepreneurship Co., Ltd. | 2,768.54 | 5,037.36 | 2,603.05 | 12.65 | Held-for-trading financial assets | Self-owned funds |
| Shenyin & Wanguo Securities Co., Ltd. | 55,362.54 | 64,218.80 | 53,808.33 | - | Other equity instruments investment | Self-owned funds |
| Yiwu Shangfu Chuangzhi Investment Center (limited partnership) | 61,751.14 | 63,687.04 | 63,687.04 | - | Other non-current financial assets | Self-owned funds |
| Nantong Redbud Huatong Equity Investment Partnership (limited partnership) | 18,881.49 | 25,871.01 | 24,752.51 | - | Other non-current financial assets | Self-owned funds |
| Shenzhen Tiantu Investment Management Co., Ltd. | 15,519.21 | 4,788.21 | 4,003.52 | -784.68 | Other non-current financial assets | Self-owned funds |
| Beijing Redbud Huarong Equity Investment Co., Ltd. | 6,171.78 | 13,846.69 | 13,846.69 | Other non-current financial assets | Self-owned funds | |
| Jiaxing Zhehua Redbud Investment Partnership (limited partnership) | 8,152.97 | 11,562.84 | 11,562.84 | - | Other non-current financial assets | Self-owned funds |
| Suzhou Xiangzhong Venture Capital Partnership (Limited Partnership) | 10,000.00 | 4,042.17 | 10,761.35 | 719.18 | Other non-current financial assets | Self-owned funds |
| Beijing Yiyun Clean Technology Venture Capital Co., Ltd. | 1,891.82 | 288.00 | 288.00 | - | Other non-current financial assets | Self-owned funds |
| Suzhou Yiyun Venture Capital Center (limited partnership) | 637.91 | 2,957.37 | 2,968.25 | 10.87 | Other non-current financial assets | Self-owned funds |
| Fujian Zongteng Network Co., Ltd. | 3,000.00 | 11,151.71 | 11,151.71 | - | Other non-current financial assets | Self-owned funds |
| Mashang Consumer Finance Co., Ltd. | 3,000.00 | 4,854.75 | 4,854.75 | - | Other non-current financial assets | Self-owned funds |
| Yiwu Shanfeng Investment Partnership (limited partnership) | 2,600.00 | 2,388.19 | 2,388.19 | - | Other non-current financial assets | Self-owned funds |
| Yiwu Shanyue Equity Investment Partnership (limited partnership) | 2,000.00 | 1,689.66 | 1,689.66 | - | Other non-current financial assets | Self-owned funds |
| Beijing Wudaokou Education Technology Co., Ltd. | 500.00 | 59.38 | 59.38 | - | Other non-current financial assets | Self-owned funds |
| Yiwu Water Resources Development Co., Ltd. | 200.00 | 1,860.00 | 1,860.00 | - | 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 Smart Transport Co., Ltd. | 120.00 | 120.00 | 120.00 | - | Other non-current financial assets | Self-owned funds |
| Zhejiang Yiwu Tap Water Co., Ltd. | 207.29 | 3,064.89 | 3,064.89 | - | Other non-current financial assets | Self-owned funds |
| Quanzhou Huayun Tiancheng E-commerce Co., Ltd. | 100.00 | 100.00 | 100.00 | - | Other non-current financial assets | Self-owned funds |
(v) Major sales of assets and equity
□Applicable √Not applicable
(vi) Analysis of major subsidiaries and associates
√Applicable □Not applicable
Unit: RMB10,000
| Company name | Business | Registered capital | Total assets | Net assets | Net profits |
| Yiwu China Commodities City Financial Holdings Co., Ltd. | Enterprise's own capital investment, asset management, investment consulting services, investment management services | 400,000.00 | 266,197.12 | 253,037.40 | 793.75 |
| 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 | 210,431.24 | -89,445.74 | -3,459.65 |
| Zhejiang Huajie Investment and Development Co., Ltd. | Industry investment, investment management, investment consulting, business information consulting, and asset management services | 50,000.00 | 9,095.08 | 9,087.20 | -44.95 |
| Yiwu Shangbo Yuncang Enterprise Management Co., Ltd. | Enterprise management; property management, etc. | 30,000.00 | 52,985.62 | 33,305.63 | -1,093.67 |
| Yiwu Commodities City Gonglian Property Co., Ltd. | Real estate development and sale | 20,000.00 | 15,977.18 | 15,799.73 | -69.68 |
| Yiwu China Commodities City Payment Network Technology Co., Ltd. | R&D of computer and multimedia software | 15,000.00 | 11,962.29 | 11,956.70 | -122.58 |
| Yiwu China Commodities City Import and Export Co., Ltd. | Domestic trade and international trade | 10,000.00 | 86,999.84 | 906.25 | -1,488.13 |
| 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 | 33,144.96 | 11,666.51 | -557.87 |
| Yiwu China Commodities City Supply Chain Management Co., Ltd. | Supply chain management service | 10,000.00 | 18,060.49 | 5,312.80 | -600.43 |
| Yiwu China Commodities City Overseas Investment and Development Co., Ltd. | Overseas industry investment, and construction and operation of overseas shopping malls | 10,000.00 | 29,933.96 | 8,203.79 | -257.52 |
| Yiwu China Commodities City Tourism | Development of tourism resources and tourism projects; domestic tourism business, | 10,000.00 | 14,299.57 | 8,600.73 | -72.87 |
| Development Co., Ltd. | inbound tourism business; tourism information consulting; and wholesale of fruits, vegetables, aquatic products and primary edible agricultural products | ||||
| Zhejiang Yiwugou E-commerce Co., Ltd. | Computer software, multimedia technologies, computer network and application, and wholesale & retail | 10,000.00 | 12,801.32 | 9,814.58 | 668.17 |
| Yiwu China Commodities City Logistics and Warehousing Co., Ltd. | Ordinary cargo transport and goods warehousing | 10,000.00 | 6,555.58 | 4,677.71 | -489.58 |
| 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 | 4,947.57 | 2,161.13 | 1,095.97 |
| Yiwu China Commodities City Information Technology Co., Ltd. | R&D of computer and multimedia software | 5,000.00 | 8,010.30 | 5,234.69 | -45.94 |
| Yiwu China Commodities City Property Development Co., Ltd. | Real estate development and sale | 500,000.00 | 1,425,287.57 | 596,824.04 | 25,513.10 |
| Yiwu Hongyi Equity Investment Fund Partnership (limited partnership) | Investment management, equity investment, asset management and investment consulting | 200,100.00 | 179,195.73 | 179,158.39 | 8,934.93 |
| Yiwu Huishang Redbud Phase II Investment Partnership (limited partnership) | Investment management and asset management | 106,100.00 | 132,480.00 | 127,033.45 | 35.39 |
| Zhejiang Chouzhou Financial Lease Co., Ltd. | Financial lease service, and transfer of financial lease assets | 100,000.00 | 1,558,670.21 | 177,573.08 | 13,718.90 |
| 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 | 131,342.96 | 82,831.45 | 1,293.30 |
| Pujiang Lvgu Property Co., Ltd. | Real estate development and sale | 70,000.00 | 110,388.46 | 75,820.08 | 2,013.56 |
| Yiwu Huishang Micro-finance Co., Ltd. | Micro loans | 54,000.00 | 36,356.87 | 36,010.74 | 461.17 |
| Yiwu Huishang Redbud Equity Investment Co., Ltd. | Equity investment and related consulting services | 49,000.00 | 73,056.17 | 64,919.86 | 4,642.38 |
| Yiwu Rongshang Property Co., Ltd. | Real estate development and sale | 10,204.08 | 196,567.21 | 22,398.58 | 96,577.78 |
| Yiwu Chuangcheng Property Co., Ltd. | Real estate development and sale | 8,333.33 | 153,251.77 | 56,655.98 | 44,962.93 |
| Yiwu Guoshen Shangbo Property Co., Ltd. | Real estate development, sale and lease; real estate brokerage service, interior decoration service; and landscaping service | 4,081.63 | 1,266,861.71 | 7,794.28 | 2,862.34 |
| 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 | 125,642.27 | 25,338.67 | -2,523.91 |
(vii) Structured entities controlled by the Company
□Applicable √Not applicable
V. Other disclosure matters(i) Potential risks
√Applicable □Not applicable
1. Market operation risk
Large-sized shopping malls, hypermarkets, warehouse stores and e-commerce platforms arestrong competitors in the commodities trading market. Large-sized shopping malls offer products ofreliable quality and well-known brands; hypermarkets or warehouse stores supply diversifiedproducts at low prices; e-commerce platforms provide new trading means and facilitate consumers.Purchasers or consumers may also choose to make procurement or consumption via e-commerceplatforms for convenience. Therefore, the Company may compete with other forms of business. Inaddition, affected by the rising specialized market, robust development of the industry market andrapid development of the central and western regions, the Company may also face competition fromother similar specialized markets.
2. Risk of insufficient reserve of talents
With the acceleration of market transformation and the expansion of the Company’s business,and with the expansion of experienced international trade, warehousing and logistics, supply chain,overseas development, information data, industrial investment, and business operations, theCompany may face the risk of insufficient reserves of professional talents and compound talents.
3. The risk of increasing external uncertainty
In the context of the normalization of pandemic prevention and control, the development ofglobal market trade is more complicated and severer than before. The global spread of the pandemic
and 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-pandemic era, uncertainty will become thegreatest certainty for the development of market trade, and the global pandemic will continue for along time, showing a repeated see-saw state. Pandemic 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 GovernanceI. General meeting of shareholders
| Session of meeting | Date | Designated website on which the resolution is published | Date of disclosure of the resolution | Resolution of the meeting |
| Resolution of the first provisional general meeting of shareholders in 2022 | Mar 10, 2022 | www.sse.com.cn | Mar 11, 2022 | See the resolution notice for details |
| 2021 Annual General Meeting of Shareholders | April 13, 2022 | www.sse.com.cn | April 14, 2022 | See the resolution notice for details |
The preferred shareholders whose voting rights had been resituated requested to an extraordinarygeneral meeting of shareholders
□Applicable √Not applicable
Statement on shareholders’ meetings
√Applicable □Not applicable
1. The 2022 First Provisional General Meeting of Shareholders deliberated and adopted the“Proposal on By-election of Supervisors”.
The 2021 Annual General Meeting of Shareholders deliberated and adopted “2021 Board ofDirectors Work Report”, “2021 Board of Supervisors Work Report”, “2021 Annual Report andSummary”, “2021 Final Accounts Report”, “2022 Financial Budget Report”, and “2021 ProfitDistribution Plan”, “Proposal on the Proposed Issuance of Various Debt Financing Instruments in theComing 12 Months”.
II. Changes in directors, supervisors and senior officers of the Company
√Applicable □Not applicable
| Name | Title | Change |
| HUANG Haiyang | Vice general manager | Hiring |
| LI Xiaobao | Vice general manager | Hiring |
| WU Xiubin | Vice general manager | Leaving office |
| WU Menghua | Supervisor | Election |
| WANG Gaiying | Supervisor | Leaving office |
Statement on the changes in directors, supervisors and senior officers of the Company
□Applicable √Not applicable
III. Plan for profit distribution or capital reserve into stock capitalSemi-annual proposals on profits distribution and capitalization of capital reserve
| Whether to distribute profits or capitalize the capital reserve | No |
IV. Incentive stock option plans, employee stock ownership plans and other employee
incentives granted by the Company and the impact thereof(i) Related equity incentive matters that have been disclosed in the provisional
announcement without progress or change in subsequent implementation
√Applicable □Not applicable
| Overview of the matter | Query website |
| On October 23, 2020, the twenty-third meeting of the eighth session of the Company's board of directors passed the Proposal on the Company's 2020 Restricted Equity Incentive Plan (Draft) and Its Summary, Proposal on the Measures for the Evaluation and Management of the Implementation of the Company's 2020 Restricted Equity 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 Equity Incentive Plan (Draft) and its Summary, The Proposal on the Implementation Evaluation and Management Measures for the Company's 2020 Restricted Equity Incentive Plan, Proposal on Verification of the List of Incentive Objects of the Company's 2020 Restricted Equity 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 Commodities City Group Co., Ltd. to implement the 2020 restricted equity incentive plan issued by the State-owned Assets Supervision and Administration Office of the People's Government of Yiwu City, forwarded by Yiwu China Commodities City Holdings Ltd. (Yiwu SASAOF〔2020〕51). | For details, please refer to the Company's announcement on the website of the Shanghai Stock Exchange (www.sse.com.cn) on November 20, 2020. |
| From November 20, 2020 to November 29, 2020, the list of incentive objects and positions of the 2020 restricted equity incentive plan were internally publicized. Within the time limit of the publicity, the board of supervisors of the Company did not receive any objection from any | For details, please refer to the Company's announcement on the website of the Shanghai |
| 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 Equity 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 Equity Incentive Plan (Draft)’ and Summary”, the “Proposal on the “Measures of Assessment and Management of Implementation of ‘Company’s 2020 Restricted Equity 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 Equity 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 Equity Incentive Plan. Independent financial consultants, lawyers and other intermediary agencies issued corresponding opinions. | For details, please refer to the Company's announcement on the website of the Shanghai Stock Exchange (www.sse.com.cn) on December 12, 2020. |
| On January 15, 2021, the Company received the Securities Change Registration Certificate issued by the Shanghai Branch of China Securities Depository and Clearing Co., Ltd., and the Company completed the registration of the first grant of restricted stocks to incentive objects. | For details, please refer to the Company's announcement on the website of the Shanghai Stock Exchange (www.sse.com.cn) on January 19, 2021. |
| On August 9, 2021, the 35th meeting of the eighth board of directors of the Company passed the "Proposal on Reserved Granting Restricted Stocks to Incentive Objects", "On Adjusting the Repurchase Price of Restricted Stocks and Repurchasing and Cancelling Some Restricted | For details, please refer to the Company's announcement on the website of the Shanghai |
| Stocks" 's proposal". The independent directors of the Company issued relevant independent opinions. On August 9, 2021, the ninth meeting of the eighth Boarder of Supervisors of the Company passed the "Proposal on Reserved Granting Restricted Stocks to Incentive Objects", "Proposal on Adjusting the Repurchase Price of Restricted Stocks and Repurchasing and Cancelling Some Restricted Stocks". The Board of Supervisors issued the Verification Opinions of the Board of Supervisors on Matters Related to the Company's Reserved Grant of the Restricted Equity Incentive Plan in 2020. | Stock Exchange (www.sse.com.cn) on August 11, 2021. |
| On November 4, 2021, the Company received the Securities Change Registration Certificate issued by the Shanghai Branch of China Securities Depository and Clearing Co., Ltd., and the Company completed the registration of the reserved grant of restricted stocks to incentive objects. | For details, see the Company's announcement on the website of the Shanghai Stock Exchange (www.sse.com.cn) on November 6, 2021. |
| On November 17, 2021, the Company applied to China Securities Depository and Clearing Co., Ltd. Shanghai Branch for repurchase and cancellation of restricted stocks that have been granted but not yet lifted by some resigned employees. On November 30, 2021, the Company received the "Securities Change Registration Certificate" issued by China Securities Depository and Clearing Co., Ltd. Shanghai Branch, and the Company has completed the registration of the restricted stock repurchase and cancellation. | For details, see the Company's announcement on the website of the Shanghai Stock Exchange (www.sse.com.cn) on November 26, 2021. |
| On July 19, 2022, the 51st meeting of the 8th Board of Directors of the Company passed the "Proposal on Adjusting the Repurchase Price of Restricted Shares and Repurchasing and Cancelling Some Restricted Shares". The independent directors of the Company issued relevant independent opinions. On July 19, 2022, the 14th meeting of the 8th Board of Supervisors of the Company passed the "Proposal on Adjusting the Repurchase Price of Restricted Shares and Repurchasing and Cancelling Some Restricted Shares". | For details, see the Company's announcement on the website of the Shanghai Stock Exchange (www.sse.com.cn) on July 20, 2022. |
(ii) Incentives that have not been disclosed in the temporary announcements or had further
progressesIncentive stock option
□Applicable √Not applicable
Other statements
□Applicable √Not applicable
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 main
subsidiaries 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 the reporting
period
□Applicable √Not applicable
(iv) Relevant information that is conducive to protecting ecology, preventing pollution, andfulfilling environmental responsibilities
□Applicable √Not applicable
(v) Measures taken to reduce their carbon emissions during the reporting period and the
effect
□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. Fulfilment 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 reporting period or asof 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
√Applicable □Not applicable
(i) Litigations and arbitrations have been disclosed in the temporary announcements and
have had no further progresses
□Applicable √Not applicable
(ii) Litigations and arbitrations that have not been disclosed in the temporary
announcements 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) |
| The Company | Zhejiang Yiwu Chuanglian Market Investment and Manageme | Nil | Litigation | Unfair Competition Dispute | 485 | No | No hearings have not been held | / | / |
| nt Co., Ltd., Hebei Jiangcheng Real Estate Development Co., Ltd., Handan Zheshang Yiwu China Commodities Wholesale City Co., Ltd. | |||||||||
| The Company | Jiangsu Zhonghaojiayuan Holding Group Co., Ltd., Suqian Yiwu International Trade City Market Management Co., Ltd., Suqian Maike Information Technology Co., Ltd. | Nil | Litigation | Unfair Competition Dispute | 512 | No | Hearings have been held but no judgment has been made | / | / |
| The Company | Golden Curtain Wall Group Co., Ltd. | Nil | Litigation | Dispute over construction project construction contract | 900.35 | No | No hearings have not been held | / | / |
| The Company | Chongqing Jingtou Investment Group Co., Ltd., Chongqing Jingtou Wanyu Real Estate Co., Ltd. | Nil | Litigation | Second Instance of Unfair Competition Dispute and Infringement of Trademark Exclusive Right | 512 | No | Hearings have been held but no judgment has been made | / | / |
| Nanjing Yiwu China Commodities City Co., Ltd., Nanjing Zheshang Investment Co., Ltd., Nanjing Xiezhong Group | The Company | Nil | Litigation | Second Instance of Unfair Competition Dispute | 812 | No | No hearings have not been held | / | / |
| Real Estate Development Co., Ltd. | |||||||||
| Zhenjiang Hongda Real Estate Co., Ltd., Zhenjiang Hongda Yiwu Small Commodity Market Management Co., Ltd. | The Company | Nil | Litigation | Second Instance of Unfair Competition Dispute | 812 | No | No hearings have not been held | / | / |
| Sun Lijun, Tu Lixin | Bafang Construction Group Co., Ltd., the Company, the first branch of the International Trade City | Nil | Litigation | Dispute over construction project subcontract | 546.98 | No | No hearings have not been held | / | / |
| Ningxia Shenghong Construction Engineering Co., Ltd. v. | Shizuishan Shengyuze Asset Management Co., Ltd., Yiwu China Commodities City Supply Chain Management Co., Ltd., the Company | Nil | Litigation | Dispute over construction project construction contract | 650.69 | No | No hearings have not been held | / | / |
| Ying Jianhua | The Company, third party Shenzhen Pengrun Construction Group Co., Ltd. | Nil | Litigation | Dispute over construction project construction contract | 836.31 | No | No hearings have not been held | / | / |
| Xinyang Wanjia Lighting Industry Co., Ltd., Henan Zhongda Commercial Operation | The Company | Nil | Litigation | Second Instance of Unfair Competition Dispute | 792 | No | No hearings have not been held | / | / |
ManagementCo., Ltd.
(iii) Other statements
√Applicable □Not applicable
In March 2018, the Company and Shangcheng Trade Co., Ltd. (the Company’s former holdingsubsidiary, present participating company, in which the Company holds 35.8% of shares) was suedby Bank of China Co., Ltd. Yiwu Branch (hereinafter referred to as “Bank of China Yiwu Branch”) dueto a letter of credit dispute” to the Jinhua Intermediate People’s Court of Zhejiang Province(hereinafter referred to as “Jinhua Intermediate Court”). For details, see the “Announcement onLitigation Involved in the Company and Its Holding Subsidiaries" (Lin 2018-008) disclosed by theCompany on March 2, 2018. Later, the lawsuit was dismissed by Jinhua Intermediate Court.
On May 18, 2018, Bank of China Yiwu Branch transferred all the rights of the principal andinterest, compound interest, liquidated damages, compensation and other claims under the letter ofcredit involved to China Cinda Asset Management Co., Ltd. Zhejiang Branch (hereinafter referred toas "Cinda Assets").
On June 25, 2021, Cinda Assets again filed a civil lawsuit with the Jinhua Intermediate People'sCourt on the dispute over the letter of credit. For details, see the “Announcement on the Progress ofLitigation Involved in the Company and its Subsidiaries” (Lin 2021-036) disclosed by the Companyon July 21, 2021.
No decision has been made as of the end of the reporting period.
VIII. Information of the listed company and its directors, supervisors, senior management,
controlling shareholder, and actual controller suspected of violations of laws and
regulations, penalties and rectification
□Applicable √Not applicable
IX. Credit standing of the Company and its controlling shareholder and actual controller
√Applicable □Not applicable
There was no outstanding court judgment or overdue debt of a large amount involving theCompany or its controlling shareholder or actual controller during the reporting period.
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 no further
progresses or changes
□Applicable √Not applicable
2. Matters that have been disclosed in the temporary announcements but had further
progresses or changes
□Applicable √Not applicable
3. Matters that have not been disclosed in the temporary announcements
√Applicable □Not applicable
Unit: RMB
| Related counterparty | Relationship | Type of related-party transacti | Contents of related-party | Pricing principle | Price of related-party transaction | Amount of related-party transaction | Percentage in the amount | Settlement method | Market M/Price | Reasons for the large |
| on | transaction | of similar transactions (%) | difference between the price of the transaction and reference market price | |||||||
| Yiwu China Commodities City Property Service Co., Ltd. | Controlling subsidiaries of controlling shareholders | Acceptance of labor service | Property service fee and greening maintenance fee | Market price | 72,002,626.73 | 72,002,626.73 | 85.70 | Account transfer | ||
| Yiwu Security Service Co., Ltd. | Subsidiaries of controlling shareholder parent company | Acceptance of labor service | Pandemic prevention and control and exhibition security service fee | Market price | 10,543,139.42 | 10,543,139.42 | 12.55 | Account transfer | ||
| CCCP | Controlling subsidiaries of controlling shareholders | Lease out | Office space rental | Market price | 468,572.46 | 468,572.46 | 0.56 | Account transfer | ||
| Xingfuhu International Conference Center, subordinated to Yiwu Market Development Group | Branches of the controlling shareholder parent company | Acceptance of labor service | Laundering fees | Market price | 438,145.35 | 438,145.35 | 0.52 | Account transfer | ||
| Yiwu China Commodities City Creative Design and Development Services Co., Ltd. | Associates | Acceptance of labor service | Design fee | Market price | 379,844.66 | 379,844.66 | 0.45 | Account transfer |
| Xingfuhu International Conference Center, subordinated to Yiwu Market Development Group | Branches of the controlling shareholder parent company | Other inflows | Entrusted management fees and license fees | Negotiated price | 182,819.84 | 182,819.84 | 0.22 | Account transfer | ||
| Total | / | / | 84,015,148.46 | 100.00 | / | / | / | |||
| Return of large-value goods sales | ||||||||||
| Illustration on related-party transactions | ||||||||||
(ii) Related transactions arising from asset acquisitions or equity acquisitions and sales
1. Matters that have been disclosed in the temporary announcements and had no further
progresses or changes
□Applicable √Not applicable
2. Matters that have been disclosed in the temporary announcements but had further
progresses or changes
□Applicable √Not applicable
3. Matters that have not been disclosed in the temporary announcements
□Applicable √Not applicable
4. If any agreement on the operating results is involved, the achievement of operating
results during the reporting period shall be disclosed
□Applicable √Not applicable
(iii) Related-party transactions arising from joint external investment
1. Matters that have been disclosed in the temporary announcements and had no further
progresses or changes
□Applicable √Not applicable
2. Matters that have been disclosed in the temporary announcements but had furtherprogresses or changes
□Applicable √Not applicable
3. Matters that have not been disclosed in the temporary announcements
□Applicable √Not applicable
(iv) Related-party credits and debts
1. Matters that have been disclosed in the temporary announcements and had no further
progresses or changes
□Applicable √Not applicable
2. Matters that have been disclosed in the temporary announcements but had further
progresses or changes
√Applicable □Not applicable
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 provided
Handing 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).
As of the end of the reporting period, the balance of financial assistance provided by theCompany was RMB 208 million, and the balance of financial assistance provided by CCCH wasRMB 216 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
(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
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) | |||||||||||||||
| Guarantor | Relationship between the guarantor and the Listed Company | The guaranteed | Amount of guarantee | Date of guarantee (signing date of the agreement) | Guarantee Starting date | Guarantee Maturity date | Type of guarantee | Principal debts | Collateral (if any) | Is the guarantee fulfilled in full | Is the guarantee overdue | Overdue amount of the guarantee | Counter guarantees | Is it a related-party guarantee | Related Relationship |
| The Company | The Company itself | Yiwu Shanglv | 12,542.86 | Dec 16, 2015 | Jul 1, 2015 | Dec 15, 2026 | Joint and several liability guarantee | Normal | No | No | - | SCO provided a counter-guarantee | Yes | Joint venture | |
| Hangzhou Shangbo Nanxing | Wholly-owned subsidiary | House purchaser | 495.48 | Joint and several liability guarantee | Normal | No | No | - | No | ||||||
| Amount of guarantees made during the reporting period (excluding the guarantees provided for subsidiaries) | -2,825.07 | ||||||||||||||
| Balance of guarantees at the end of the reporting period (A) (excluding the guarantees provided for subsidiaries) | 13,038.34 | ||||||||||||||
| 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) | 13,038.34 | ||||||||||||||
| Ratio of the total amount of guarantees to the Company’s net assets (%) | 0.85 | ||||||||||||||
| Among which: | |||||||||||||||
| Amount of guarantees provided for shareholders, actual controller and their related parties (C) | - | ||||||||||||||
| Amount of guarantees provided directly or indirectly for the debtors whose debt-to-asset ratio exceed 70% (D) | - | ||||||||||||||
| Portion of total amount of guarantees in excess of 50% of net assets (E) | - | ||||||||||||||
| Total (C+D+E) | 13,038.34 | ||||||||||||||
| Statement on the joint and several liability that may be assumed due to outstanding guarantees | Nil | ||||||||||||||
| Statement on guarantees | 1. According to the resolution of the 15th Meeting of the 7th Board of Directors on July 1, 2015, the Group applied for a RMB 750 million loan with Agricultural Bank of China Yiwu Branch for Yiwu Shanglv and provided guarantees in accordance with the shareholding ratio. The guarantee method was joint liability guarantee, the highest guarantee amount was RMB 367.5 million and the guarantee term was11 years. As of June 30, 2022, Yiwu Shanglv actually borrowed RMB 255,976,751.57 from banks in total (December 31, 2021: RMB 296,505,577.63). According to the agreement of the guarantee contract, it assumed the guarantee liability of RMB 125,428,608.27 (December 31, 2021: RMB 145,287,733.04) with the Agricultural Bank of China Yiwu Branch. SCO provided a counter-guarantee for this guarantee. 2. According to relevant regulations, before the purchaser of the commercial housing sold by the Group has obtained the property certificate, the Group shall provide the purchaser with a bank mortgage guarantee. As of June 30, 2022, the unsettled guarantee amount was RMB 4,954,833.62 (December 31, 2021: RMB 5,063,333.60). Those guarantees would be released after the issuance of the property ownership certificates and are thus little likely to incur losses. Therefore, the management believed that it was not necessary to make provision for the guarantees. |
3 Other material contracts
√Applicable □Not applicable
| No. | Name of contract | Contracting party | Contract price (RMB10,000) |
| 1 | The lot 2 of the first phase of the logistics warehousing project in the Comprehensive Bonded Zone | Beijing Urban Construction Group Co., Ltd. | 86,711.78 |
| 2 | Yiwu Comprehensive Bonded Zone New Import Market - North Zone Engineering Contract | China Construction Seventh Engineering Bureau Co., Ltd. | 72,323.68 |
| 3 | Yiwu Comprehensive Bonded Zone New Import Market - South Zone Engineering Contract | Zhejiang Construction Engineering Group Co., Ltd. | 63,710.82 |
| 4 | Yiwu Comprehensive Bonded Zone International Trade Digital Industry Project | Yuanyang Construction Group Co., Ltd. | 40,498.09 |
XII. Other significant matters
□Applicable √Not applicable
Section VII. Changes in Shares and ShareholdersI. Changes in equity(i) Exhibition of changes in shares
1. Exhibition of changes in shares
During the reporting period, the total number of shares and capital stock structure of the Companydid not change.
□Applicable √Not applicable
2. Description of changes in shares
□Applicable √Not applicable
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 disclosuredate of the semi-annual report (if any)
□Applicable √Not applicable
4. Other matters the Company deems it necessary to disclose or required by the securitiesregulatory authority to be disclosed
□Applicable √Not applicable
(ii) Changes in non-tradable shares
□Applicable √Not applicable
II. Information of restricted shareholders(i) Information of shareholders:
| Total number of common shareholders as of the end of the reporting period | 171,362 |
(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 (full name) | Change during the reporting period | Number of shares held at the end of the reporting period | Proportion (%) | Number of non-tradable shares held | Pledge, mark or freezing | Ownership of shareholder | |
| Status of shares | Quantity | ||||||
| Yiwu China Commodities City Holdings Limited | 0 | 3,038,179,392 | 55.33 | 0 | Nil | 0 | State-owned legal person |
| Zhejiang Provincial Finance Development Ltd. | 0 | 147,466,528 | 2.69 | 0 | Nil | 0 | State-owned legal person |
| Hong Kong Securities Clearing Company Ltd. | 6,409,291 | 70,319,616 | 1.28 | 0 | Unknown | 0 | Others |
| Ping An Life Insurance Company of China - Unit-linked - Individual Unit-linked Insurance | 56,000,019 | 56,000,019 | 1.02 | 0 | Unknown | 0 | Unknown |
| Dacheng Fund－Agricultural Bank of China－Dacheng China Securities Financial Assets Management Scheme | 0 | 27,672,800 | 0.50 | 0 | Unknown | 0 | Unknown |
| GF Fund－Agricultural Bank of China－GF China Securities Financial Assets Management Scheme | 0 | 27,672,800 | 0.50 | 0 | Unknown | 0 | Unknown |
| Southern Asset Management－Agricultural Bank of China－Southern China Securities Financial Assets Management Scheme | 0 | 27,672,800 | 0.50 | 0 | Unknown | 0 | Unknown | |||
| Zhong Ou AMC－Agricultural Bank of China－Zhong Ou China Securities Financial Assets Management Scheme | -4,378,100 | 23,294,700 | 0.42 | 0 | Unknown | 0 | Unknown | |||
| E Fund－Agricultural Bank of China－E Fund China Securities Financial Assets Management Scheme | -4,662,700 | 23,010,100 | 0.42 | 0 | Unknown | 0 | Unknown | |||
| Zhu Lina | 2,002,800 | 20,406,003 | 0.37 | 0 | Unknown | 0 | Domestic natural person | |||
| Shares held by top 10 holders of tradable shares | ||||||||||
| Shareholder | Number of tradable shares held | Type and quantity of shares | ||||||||
| Type | Quantity | |||||||||
| Yiwu China Commodities City Holdings Limited | 3,038,179,392 | RMB-denominated common share | 3,038,179,392 | |||||||
| Zhejiang Provincial Finance Development Ltd. | 147,466,528 | RMB-denominated common share | 147,466,528 | |||||||
| Hong Kong Securities Clearing Company Ltd. | 70,319,616 | RMB-denominated common share | 70,319,616 | |||||||
| Ping An Life Insurance Company of China - Unit-linked - Individual Unit-linked Insurance | 56,000,019 | RMB-denominated common share | 56,000,019 | |||||||
| Dacheng Fund－Agricultural Bank of China－Dacheng 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 | |||||||
| Southern Asset Management－Agricultural Bank of China－Southern 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 | 23,294,700 | RMB-denominated common share | 23,294,700 | |
| E Fund－Agricultural Bank of China－E Fund China Securities Financial Assets Management Scheme | 23,010,100 | RMB-denominated common share | 23,010,100 | |
| Zhu Lina | 20,406,003 | RMB-denominated common share | 20,406,003 | |
| 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 Commodities 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 | Nil | |||
Number of shares held by the top 10 shareholders subject to trading restrictions and the tradingrestriction conditions
□Applicable √Not applicable
(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 senior
management 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 during
the reporting period
□Applicable √Not applicable
(iii) Other statements
□Applicable √Not applicable
IV. Changes in controlling shareholder or actual controller
□Applicable √Not applicable
Section VIII. Preferred Shares
□Applicable √Not applicable
Section IX. BondsI. Corporate bonds, corporate bonds and non-financial corporate debt financing
instruments
√Applicable □Not applicable
(i) Corporate bonds
□Applicable √Not applicable
(ii) Corporate bonds
√Applicable □Not applicable
1. Basic information on corporate bonds
Unit: RMB 100 million
| Name of bond | Abbreviation | Code | Issue date | Value date | Maturity date | Outstanding amount | Interest rate (%) | Method of principal repayment and interest payment | Marketplace | 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 II) | 19 YIWU 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 |
The Company's measures to deal with the risk of bond termination
□Applicable √Not applicable
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
Other statements
Shanghai Brilliance Credit Rating & Investors Service Co., Ltd. issued the Credit RatingSurveillance Report on Zhejiang China Commodities City Group Co., Ltd. and Bonds Publicly Issuedby It [Brilliance Surveillance (2022) 00023] on May 20, 2022. The Company had an issuer rating ofAAA with stable outlook, and the bonds had a rating of AAA.
4. The implementation, changes and impacts of guarantees, debt repayment plans and other
debt repayment protection measures during the reporting period and their impacts
□Applicable √Not applicable
Other statementsNil
5. Other statement on corporate bonds
□Applicable √Not applicable
(iii) Non-financial corporate debt financing instruments in the inter-bank bond market
√Applicable □Not applicable
1. Non-financial corporate debt financing instruments
Unit: RMB 100 million Currency: RMB
| Name of bond | Abbreviation | Code | Issue date | Value date | Maturity date | Outstanding amount | Interest rate (%) | Method of principal repayment and interest payment | Marketplace | Investor appropriate arrangements (if any) | Trade mechanism | Whether there is a risk of terminating the transaction in the stock market |
| Zhejiang China Commodities City Group Co., Ltd.’s 2019 MTN (Issue 1) | 19 Zhejiang Yiwu CCC MTN001 | 0101900921 | July 11, 2019 to July 12, 2019 | Jul 15, 2019 | Jul 15, 2022 | 10 | 3.99 | One-time repayment of principal and interest at maturity. | Interbank market | Nil | No | |
| Zhejiang China Commodities City Group Co., Ltd.’s 2019 MTN (Issue 2) | 19 Zhejiang Yiwu CCC MTN002 | 0101901396 | October 17, 2019 to October 18, 2019 | Oct 21, 2019 | Oct 21, 2022 | 10 | 3.97 | One-time repayment of principal and interest at maturity. | Interbank market | Nil | No | |
| Zhejiang China Commodities City Group Co., Ltd.’s 2022 MTN (Issue 1) | 22 Zhejiang Yiwu CCC MTN001 | 0102280347 | Feb 2, 2022 to Feb 23, 2022 | Feb 24, 2022 | Feb 24, 2025 | 10 | 3.29 | One-time repayment of principal and interest at maturity. | Interbank market | Nil | No | |
| Zhejiang China Commodities City Group Co., Ltd.’s 2022 MTN (Issue 2) | 22 Zhejiang Yiwu CCC MTN002 | 0102280660 | Mar 25, 2022 to Mar 28, 2022 | Mar 29, 2022 | Mar 29, 2022 | 5 | 3.57 | One-time repayment of principal and interest at maturity. | Interbank market | Nil | No | |
| Zhejiang China Commodities City Group Co., Ltd.’s 2021 Super Short-term Financing Bonds (Issue 8) | 21 Zhejiang Yiwu CCC SCP008 | 012103893 | Oct 25, 2021 to Oct 26, 2021 | Oct 27, 2021 | Jul 22, 2022 | 10 | 2.98 | One-time repayment of principal and interest at maturity. | Interbank market | Nil | No | |
| Zhejiang China Commodities City Group Co., Ltd.’s 2021 Super Short-term Financing Bonds (Issue 9) | 21 Zhejiang Yiwu CCC SCP009 | 012104113 | Nov11, 2021 to Nov 12, 2021 | Nov 15, 2021 | Aug 12, 2022 | 10 | 2.87 | One-time repayment of principal and interest at maturity. | Interbank market | Nil | No |
| Zhejiang China Commodities City Group Co., Ltd.’s 2021 Super Short-term Financing Bonds (Issue 10) | 21 Zhejiang Yiwu CCC SCP010 | 012105209 | Nov 26, 2021 to Nov 29, 2021 | Nov 30, 2021 | Aug 26, 2022 | 10 | 2.84 | One-time repayment of principal and interest at maturity. | Interbank market | Nil | No | |
| Zhejiang China Commodities City Group Co., Ltd.’s 2022 Super Short-term Financing Bonds (Issue 1) | 22 Zhejiang Yiwu CCC SCP001 | 012282279 | Jun 27, 2022 to Jun 28, 2022 | Jun 29, 2022 | Jul 29, 2022 | 10 | 2.2 | One-time repayment of principal and interest at maturity. | Interbank market | Nil | No |
The Company's measures to deal with the risk of bond termination
□Applicable √Not applicable
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
Other statementsShanghai Brilliance Credit Rating & Investors Service Co., Ltd. issued the Credit Rating SurveillanceReport on Zhejiang China Commodities City Group Co., Ltd. and Bonds Publicly Issued by It[Brilliance Surveillance (2022) 00023] on May 20, 2022. The Company had an issuer rating of AAAwith stable outlook, and the bonds had a rating of AAA.
4. The implementation, changes and impacts of guarantees, debt repayment plans and otherdebt repayment protection measures during the reporting period and their impacts
□Applicable √Not applicable
Other statementsNil
5. Explanation on other situations relevant to non-financial corporate debt financinginstruments
□Applicable √Not applicable
(iv) During the reporting period, the Company's loss in the scope of consolidated statementsexceeded 10% of its net assets as of 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 2021 | Increase/decrease at the end of the reporting period over the end of the previous year (%) | Reasons for change |
| Current ratio | 60.37% | 58.91% | 1.46 | |
| Quick ratio | 46.98% | 50.12% | -3.14 | |
| Debt-to-asset ratio (%) | 49.01 | 52.83 | -3.82 | |
| Jan-Jun 2022 | Jan-Jun 2021 | 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 | 118,171.58 | 80,498.09 | 46.80 | Net profit increased by RMB 375 million YoY |
| EBITDA to total debt ratio | 0.20 | 0.23 | -13.04 | |
| Interest coverage ratio | 9.83 | 7.09 | 38.65 | EBIT increased by RMB 286 million YoY |
| Cash interest protection multiple | -1.93 | 5.32 | -136.21 | The net cash flow from operating activities shrank |
| by RMB 833 million YoY | ||||
| EBITDA-to-interest coverage ratio | 12.08 | 9.04 | 33.62 | |
| Loan repayment rate (%) | 100 | 100 | - | |
| Interest payment rate (%) | 100 | 100 | - |
II. Convertible corporate bonds
□Applicable √Not applicable
Section X. Financial Report
I. Audit report
□Applicable √Not applicable
II. Financial statements
Consolidated Balance Sheet
June 30, 2022Prepared by: Zhejiang China Commodities City Group Co., Ltd.
Unit: RMB
| Item | Note | Closing balance | Opening balance |
| Current assets: | |||
| Cash and cash equivalents | 4,499,334,048.52 | 4,831,468,386.25 | |
| Held-for-trading financial assets | 51,033,592.50 | 75,375,083.20 | |
| Accounts receivable | 73,782,158.07 | 185,237,530.89 | |
| Prepayments | 361,239,084.72 | 875,167,709.48 | |
| Other receivables | 746,718,985.83 | 1,355,924,282.96 | |
| In which: interest receivable | 3,107,715.32 | 92,249,275.44 | |
| Inventory | 1,684,755,094.66 | 1,327,402,567.99 | |
| Other current assets | 177,152,158.93 | 248,662,219.40 | |
| Total current assets | 7,594,015,123.23 | 8,899,237,780.17 | |
| Non-current assets: | |||
| Long-term receivables | 270,534,332.30 | 222,307,363.40 | |
| Long-term equity investment | 5,773,958,377.25 | 5,772,455,242.84 | |
| Other equity instruments investment | 538,083,278.52 | 642,187,968.77 | |
| Other non-current financial assets | 1,573,087,817.52 | 1,524,819,255.41 | |
| Property investment | 2,916,453,207.65 | 2,973,936,400.46 | |
| Fixed assets | 4,862,726,129.51 | 5,078,590,929.75 | |
| Construction in progress | 1,698,097,157.31 | 1,090,577,963.27 | |
| Right-of-use assets | 211,258,055.82 | 225,347,077.14 | |
| Intangible assets | 4,232,587,518.36 | 4,043,564,662.35 | |
| Development expenses | 18,685,324.05 | 6,359,814.02 | |
| Long-term prepaid expenses | 175,587,961.61 | 188,184,376.43 | |
| Deferred income tax assets | 125,668,332.39 | 135,737,028.89 | |
| Other non-current assets | 215,820,330.19 | 211,329,650.45 | |
| Total non-current assets | 22,612,547,822.48 | 22,115,397,733.18 | |
| Total assets | 30,206,562,945.71 | 31,014,635,513.35 | |
| Current liabilities: | |||
| Short-term borrowings | 587,435,842.88 | 942,736,046.04 | |
| Accounts payable | 293,544,737.63 | 493,360,429.02 | |
| Advances from customers | 113,351,334.60 | 153,566,311.13 | |
| Contract liabilities | 2,650,580,628.21 | 4,058,419,224.84 | |
| Payroll payable | 164,527,450.31 | 243,964,755.38 | |
| Tax payable | 170,871,026.68 | 559,496,547.34 | |
| Other payables | 1,326,087,294.15 | 1,908,742,835.15 | |
| Non-current liabilities due within one year | 3,204,867,360.53 | 3,664,241,923.08 | |
| Other current liabilities | 4,066,990,475.43 | 3,081,384,800.50 | |
| Total current liabilities | 12,578,256,150.42 | 15,105,912,872.48 | |
| Non-current liabilities: | |||
| Long-term borrowings | 204,500,000.00 | 771,250,000.00 | |
| Bonds payable | 1,514,288,084.70 | - | |
| Lease liabilities | 203,602,525.97 | 205,942,673.93 | |
| Estimated liabilities | 110,620,306.10 | 110,620,306.10 | |
| Deferred income | 104,292,866.78 | 78,170,103.62 | |
| Deferred income tax liabilities | 89,666,983.34 | 111,897,463.42 | |
| Total non-current liabilities | 2,226,970,766.89 | 1,277,880,547.07 | |
| Total liabilities | 14,805,226,917.31 | 16,383,793,419.55 | |
| Owners’ equity (or shareholders’ equity) | |||
| Paid-in capital (share capital) | 5,491,274,176.00 | 5,491,274,176.00 | |
| Capital reserve | 1,647,923,697.45 | 1,631,509,114.96 | |
| Less: treasury stocks | 137,494,800.00 | 137,494,800.00 | |
| Other comprehensive income | -6,667,700.42 | 60,850,735.02 | |
| Surplus reserve | 1,505,209,795.50 | 1,505,209,795.50 | |
| Undistributed profits | 6,880,839,810.81 | 6,059,496,846.85 | |
| Total equity attributable to owners (shareholders) of the parent company | 15,381,084,979.34 | 14,610,845,868.33 | |
| Minority interest | 20,251,049.06 | 19,996,225.47 | |
| Total owners’ equity (or shareholders’ equity) | 15,401,336,028.40 | 14,630,842,093.80 | |
| Total liabilities and owners’ equity (or shareholders’ equity) | 30,206,562,945.71 | 31,014,635,513.35 | |
Legal Representative: ZHAO Wenge, Head in charge of accounting: WANG Dong, Head ofAccounting Department: ZHAO Difang
Balance Sheet of Parent Company
June 30, 2022Prepared by: Zhejiang China Commodities City Group Co., Ltd.
Unit: RMB
| Item | Note | Closing balance | Opening balance |
| Current assets: | |||
| Cash and cash equivalents | 4,045,621,633.06 | 4,327,117,133.34 | |
| Held-for-trading financial assets | 3,080.00 | 1,484.70 | |
| Accounts receivable | 25,424,746.34 | 23,629,682.69 | |
| Prepayments | 14,153,905.05 | 11,213,809.02 | |
| Other receivables | 653,433,594.64 | 1,207,086,885.99 | |
| In which: interest receivable | 3,107,715.32 | 92,249,275.44 | |
| Inventory | 5,000,843.85 | 7,308,939.20 | |
| Other current assets | 3,565,923,715.25 | 3,282,706,248.36 | |
| Total current assets | 8,309,561,518.19 | 8,859,064,183.30 | |
| Non-current assets: | |||
| Long-term receivables | 41,669,604.79 | 41,668,837.64 | |
| Long-term equity investment | 8,288,658,823.14 | 8,246,000,020.80 | |
| Other equity instruments investment | 538,083,278.52 | 642,187,968.77 | |
| Other non-current financial assets | 171,894,026.00 | 179,632,207.32 | |
| Property investment | 2,873,773,394.30 | 2,533,374,736.14 | |
| Fixed assets | 3,756,492,933.16 | 4,333,691,395.01 | |
| Construction in progress | 1,538,628,671.27 | 936,297,029.41 | |
| Right-of-use assets | 112,591,599.79 | 118,591,035.63 | |
| Intangible assets | 3,887,514,197.64 | 3,878,208,204.47 | |
| Long-term prepaid expenses | 156,364,077.85 | 165,720,500.56 | |
| Deferred income tax assets | 112,083,303.88 | 122,565,730.38 | |
| Other non-current assets | 67,395,000.00 | 65,607,343.55 | |
| Total non-current assets | 21,545,148,910.34 | 21,263,545,009.68 | |
| Total assets | 29,854,710,428.53 | 30,122,609,192.98 | |
| Current liabilities: | |||
| Short-term borrowings | 587,435,842.88 | 942,736,046.04 | |
| Accounts payable | 125,750,763.10 | 349,268,967.90 | |
| Advances from customers | 83,269,401.44 | 104,805,243.57 | |
| Contract liabilities | 1,927,881,713.96 | 3,029,673,931.75 | |
| Payroll payable | 112,381,861.90 | 203,724,767.47 | |
| Tax payable | 190,945,626.00 | 527,641,861.33 | |
| Other payables | 1,035,183,717.62 | 1,596,947,195.91 | |
| Non-current liabilities due within one year | 3,190,242,996.49 | 3,656,595,072.25 | |
| Other current liabilities | 4,528,612,888.61 | 3,452,451,678.36 | |
| Total current liabilities | 11,781,704,812.00 | 13,863,844,764.58 | |
| Non-current liabilities: | |||
| Long-term borrowings | 204,500,000.00 | 771,250,000.00 | |
| Bonds payable | 1,514,288,084.70 | - | |
| Lease liabilities | 117,673,614.09 | 113,367,062.05 | |
| Estimated liabilities | 110,620,306.10 | 110,620,306.10 | |
| Deferred income | 104,292,866.78 | 78,170,103.62 | |
| Deferred income tax liabilities | 21,756,720.68 | 43,870,176.87 | |
| Total non-current liabilities | 2,073,131,592.35 | 1,117,277,648.64 | |
| Total liabilities | 13,854,836,404.35 | 14,981,122,413.22 | |
| Owners’ equity (or shareholders’ equity) | |||
| Paid-in capital (share capital) | 5,491,274,176.00 | 5,491,274,176.00 | |
| Capital reserve | 1,870,356,367.84 | 1,866,141,278.50 | |
| Less: treasury stocks | 137,494,800.00 | 137,494,800.00 | |
| Other comprehensive income | -11,656,614.36 | 66,421,903.33 | |
| Surplus reserve | 1,505,156,319.67 | 1,505,156,319.67 | |
| Undistributed profits | 7,282,238,575.03 | 6,349,987,902.26 | |
| Total owners’ equity (or shareholders’ equity) | 15,999,874,024.18 | 15,141,486,779.76 | |
| Total liabilities and owners’ equity (or shareholders’ equity) | 29,854,710,428.53 | 30,122,609,192.98 | |
Legal Representative: ZHAO Wenge, Head in charge of accounting: WANG Dong, Head ofAccounting Department: ZHAO Difang
Consolidated Income Statement
Jan-Jun 2022
Unit: RMB
| Item | Note | Jan-Jun 2022 | Jan-Jun 2021 |
| I. Gross revenue | 4,207,027,616.46 | 2,072,627,727.00 | |
| In which: operating revenue | 4,207,027,616.46 | 2,072,627,727.00 | |
| II. Gross cost | 3,611,063,999.15 | 1,286,710,176.88 | |
| In which: Operating cost | 3,159,298,146.77 | 925,410,625.41 | |
| Taxes and surcharges | 63,312,437.35 | 68,637,589.35 | |
| Sales expenses | 93,282,063.73 | 74,042,931.03 | |
| Administrative expenses | 226,571,368.27 | 166,698,886.58 | |
| R&D expenses | 5,708,047.58 | 4,569,138.44 | |
| Financial expenses | 62,891,935.45 | 47,351,006.07 | |
| In which: interest expenses | 154,500,444.77 | 173,963,591.17 | |
| Interest income | 89,271,567.84 | 117,153,799.20 | |
| Plus: other income | 16,715,248.69 | 9,046,028.12 | |
| Investment income (loss is indicated by “-”) | 750,723,439.63 | 263,831,792.50 | |
| In which: income from investment in associates and joint ventures | 748,873,944.26 | 263,788,954.78 | |
| Changes in fair value (loss is indicated by “-”) | -2,213,593.53 | 1,128,592.10 | |
| Credit impairment loss (loss is indicated by “-”) | 27,935.44 | -429,274.88 | |
| Income from disposal of assets (loss is indicated by “-”) | 1,389.88 | 101,911.42 | |
| III. Operating profit (loss is indicated by “-”) | 1,361,218,037.42 | 1,059,596,599.38 | |
| Plus: income from non-operating activities | 4,017,499.69 | 1,345,652.86 | |
| Less: expenses from non-operating activities | 430,003.61 | 1,121,094.44 | |
| IV. Profits before tax (loss is indicated by “-”) | 1,364,805,533.50 | 1,059,821,157.80 | |
| Less: income tax | 142,279,469.17 | 212,576,766.64 | |
| V. Net profits (net loss is indicated by “-”) | 1,222,526,064.33 | 847,244,391.16 | |
| (I) Categorized by continuity of operation | |||
| Net profits from continuing operation (net loss is indicated by “-”) | 1,222,526,064.33 | 847,244,391.16 | |
| (II) Categorized by ownership | |||
| Net profits attributable to shareholders of the parent company (net loss is indicated by “-”) | 1,222,205,978.81 | 850,514,460.93 | |
| Minority interest(net loss is indicated by “-”) | 320,085.52 | -3,270,069.77 | |
| VI. Other comprehensive income, net of tax | -67,583,697.37 | -57,171,933.87 | |
| (I) Other comprehensive income attributable to owners of the parent company, net of tax | -67,518,435.44 | -57,153,335.28 | |
| 1. Other comprehensive income that cannot be reclassified as profits or loss | -78,078,517.69 | -55,501,596.91 | |
| (3) Changes in fair value of investments in other equity instruments | -78,078,517.69 | -55,501,596.91 | |
| 2 . Other comprehensive income that will be reclassified as profits or loss | 10,560,082.25 | -1,651,738.37 | |
| Other comprehensive income that can be transferred into profit and loss under equity method | -78,548.99 | - | |
| (6) Difference arising from the translation of foreign currency financial statements | 10,638,631.24 | -1,651,738.37 | |
| (2) After -tax net of other comprehensive income attributable to minority shareholders | -65,261.93 | -18,598.59 | |
| VII. Total comprehensive income | 1,154,942,366.96 | 790,072,457.29 | |
| (I) Total comprehensive income attributable to owners of the parent company | 1,154,687,543.37 | 793,361,125.65 | |
| (II) Total comprehensive income attributable to minority shareholders | 254,823.59 | -3,288,668.36 | |
| VIII. Earnings per share: | |||
| (I) Basic earnings per share | 0.22 | 0.16 | |
| (II) Diluted earnings per share | 0.22 | 0.15 | |
For merger of the enterprises under common control during the current period, net profits of themerged party prior to the merger were RMB 0, and net profits of the merged party during theprevious period were RMB 0.Legal Representative: ZHAO Wenge, Head in charge of accounting: WANG Dong, Head ofAccounting Department: ZHAO Difang
Income Statement of Parent Company
Jan-Jun 2022
Unit: RMB
| Item | Note | Jan-Jun 2022 | Jan-Jun 2021 |
| I. Operating revenue | 1,436,820,545.38 | 1,588,046,245.78 | |
| Less: Operating cost | 444,169,635.03 | 429,090,936.75 | |
| Taxes and surcharges | 49,112,350.75 | 58,484,528.13 | |
| Sales expenses | 39,499,869.87 | 47,108,501.28 | |
| Administrative expenses | 99,654,988.83 | 90,199,678.31 | |
| Financial expenses | 75,012,149.89 | 46,070,392.65 | |
| In which: interest expenses | 154,500,444.77 | 173,963,591.17 | |
| Interest income | 86,046,217.34 | 116,062,301.61 | |
| Plus: other income | 6,672,653.40 | 6,818,726.38 | |
| Investment income (loss is indicated by “-”) | 754,092,157.92 | 242,410,649.86 | |
| In which: income from investment in associates and joint ventures | 753,179,755.40 | 242,367,812.14 | |
| Changes in fair value (loss is indicated by “-”) | -7,738,181.32 | 3,768,691.70 | |
| Credit impairment loss (loss is indicated by “-”) | -151,096.47 | -472,652.89 | |
| Income from disposal of assets (loss is indicated by “-”) | 1,971,031.95 | - | |
| II. Operating profits (loss is indicated by “-”) | 1,484,218,116.49 | 1,169,617,623.71 | |
| Plus: income from non-operating activities | 3,754,970.99 | 1,312,807.46 | |
| Less: expenses from non-operating activities | 131,077.29 | 1,119,542.70 | |
| III. Profits before tax (loss is indicated by “-”) | 1,487,842,010.19 | 1,169,810,888.47 | |
| Less: income tax | 154,728,322.57 | 211,782,812.65 | |
| IV. Net profits (net loss is indicated by “-”) | 1,333,113,687.62 | 958,028,075.82 | |
| (I) Categorized by continuity of operation(net loss is indicated by “-”) | 1,333,113,687.62 | 958,028,075.82 | |
| V. Other comprehensive income, net of tax | -78,078,517.69 | -55,501,596.91 | |
| (I) Other comprehensive income that cannot be reclassified as profit or loss | -78,078,517.69 | -55,501,596.91 | |
| 3. Changes in fair value of investments in other equity instruments | -78,078,517.69 | -55,501,596.91 | |
| VI. Total comprehensive income | 1,255,035,169.93 | 902,526,478.91 |
Legal Representative: Zhao Wenge Head in charge of accounting: Wang Dong Head of AccountingDepartment: Zhao Difang
Consolidated Cash Flow Statement
Jan-Jun 2022
Unit: RMB
| Item | Note | Jan-Jun 2022 | Jan-Jun 2021 |
| I. Cash flow from operating activities: | |||
| Cash received from sale of goods and rendering of services | 3,817,631,052.46 | 2,103,613,100.95 | |
| Cash received for taxes and surcharges refunded | 224,460,979.51 | 31,958,670.65 | |
| Other cash receipts relating to operating activities | 222,892,462.11 | 185,781,336.71 | |
| Sub-total of cash inflow from operating activities | 4,264,984,494.08 | 2,321,353,108.31 | |
| Cash paid for goods and services | 3,653,727,304.04 | 1,072,180,983.15 | |
| Cash paid to and on behalf of employees | 325,183,213.92 | 321,909,809.23 | |
| Payments of taxes | 605,322,164.89 | 585,534,877.66 | |
| Other cash payments relating to operating activities | 347,339,144.85 | 174,991,613.52 | |
| Sub-total of cash outflow from operating activities | 4,931,571,827.70 | 2,154,617,283.56 | |
| Net cash flow from operating activities | -666,587,333.62 | 166,735,824.75 | |
| II. Cash flow from investing activities: | |||
| Cash received from recovery of investment | 2,838,060,000.34 | 5,052,210,999.83 | |
| Cash received from investment income | 118,704,141.34 | 103,616,646.00 | |
| Net cash received from disposal of property, plant and equipment, intangible assets and other long-term assets | 355,650.91 | 43,092,520.72 | |
| Other cash receipts relating to investing activities | 901,774,483.00 | 1,326,599,831.00 | |
| Sub-total of cash inflow from investing activities | 3,858,894,275.59 | 6,525,519,997.55 | |
| Cash paid to acquire and construct fixed assets, intangible assets and other long-term assets | 1,180,574,429.74 | 1,064,887,215.22 | |
| Cash paid to acquire investments | 3,082,074,693.64 | 3,945,813,863.27 | |
| Other cash paid related to investing activities | 68,507,285.00 | 1,550,981,005.00 | |
| Sub-total of cash outflow from investing activities | 4,331,156,408.38 | 6,561,682,083.49 | |
| Net cash flow from investing activities | -472,262,132.79 | -36,162,085.94 | |
| III. Cash flow from 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 from borrowings | 2,275,250,000.00 | 1,422,000,000.00 | |
| Cash received from bond issuance | 2,500,000,000.00 | 5,000,000,000.00 | |
| Sub-total of cash inflow from financing activities | 4,775,250,000.00 | 6,428,000,000.00 | |
| Cash paid for debts repayment | 3,700,000,000.00 | 6,232,000,000.00 | |
| Cash paid for distribution of dividends or profits or payment of interest | 459,508,761.85 | 400,351,190.76 | |
| Other cash paid related to financing activities | 11,970,676.79 | - | |
| Sub-total of cash outflow from financing activities | 4,171,479,438.64 | 6,632,351,190.76 | |
| Net cash flow from financing activities | 603,770,561.36 | -204,351,190.76 | |
| IV. Effect of foreign exchange rate changes on cash and cash equivalents | 2,944,567.22 | 769,966.77 | |
| V. Net increase in cash and cash equivalents | -532,134,337.83 | -73,007,485.18 | |
| Plus: opening balance of cash and cash equivalents | 4,006,468,325.47 | 2,032,642,871.63 | |
| VI. Closing balance of cash and cash equivalents | 3,474,333,987.64 | 1,959,635,386.45 |
Legal Representative: ZHAO Wenge, Head in charge of accounting: WANG Dong, Head ofAccounting Department: ZHAO Difang
Cash Flow Statement of Parent Company
Jan-Jun 2022
Unit: RMB
| Item | Note | Jan-Jun 2022 | Jan-Jun 2021 |
| I. Cash flow from operating activities: | |||
| Cash received from sale of goods and rendering of services | 358,669,144.91 | 1,118,280,046.33 | |
| Cash received for taxes and surcharges refunded | 168,188,111.96 | 23,527,341.26 | |
| Other cash receipts relating to operating activities | 97,589,662.20 | 1,789,613,350.06 | |
| Sub-total of cash inflow from operating activities | 624,446,919.07 | 2,931,420,737.65 | |
| Cash paid for goods and services | 166,099,659.04 | 154,026,249.28 | |
| Cash paid to and on behalf of employees | 203,530,312.37 | 222,414,525.26 | |
| Payments of taxes | 537,128,931.09 | 492,951,916.52 | |
| Other cash payments relating to operating activities | 251,492,294.32 | 1,990,862,090.20 | |
| Sub-total of cash outflow from operating activities | 1,158,251,196.82 | 2,860,254,781.26 | |
| Net cash flow from operating activities | -533,804,277.75 | 71,165,956.39 | |
| II. Cash flow from investing activities: | |||
| Cash received from recovery of investment | 5,314,515,684.34 | 5,052,210,999.83 | |
| Cash received from investment income | 107,024,942.32 | 99,366,646.00 | |
| Net cash received from disposal of property, plant and equipment, intangible assets and other long-term assets | 329,836.53 | 42,716,005.31 | |
| Net cash received from disposal of subsidiaries and other business units | 9,380,000.00 | - | |
| Other cash receipts relating to investing activities | 886,118,683.00 | 1,326,599,831.00 | |
| Sub-total of cash inflow from investing activities | 6,317,369,146.19 | 6,520,893,482.14 | |
| Cash paid to acquire and construct fixed assets, intangible assets and other long-term assets | 989,899,828.33 | 970,900,182.64 | |
| Cash paid to acquire investments | 5,864,167,378.64 | 3,985,050,918.27 | |
| Other cash paid related to investing activities | 26,734,400.00 | 1,492,745,800.00 | |
| Sub-total of cash outflow from investing activities | 6,880,801,606.97 | 6,448,696,900.91 | |
| Net cash flow from investing activities | -563,432,460.78 | 72,196,581.23 | |
| III. Cash flow from financing activities: | |||
| Cash received from borrowings | 2,275,250,000.00 | 1,422,000,000.00 | |
| Cash received from bond issuance | 2,500,000,000.00 | 5,000,000,000.00 | |
| Sub-total of cash inflow from financing activities | 4,775,250,000.00 | 6,422,000,000.00 | |
| Cash paid for debts repayment | 3,700,000,000.00 | 6,232,000,000.00 | |
| Cash paid for distribution of dividends or profits or payment of interest | 459,508,761.85 | 400,351,190.76 | |
| Sub-total of cash outflow from financing activities | 4,159,508,761.85 | 6,632,351,190.76 | |
| Net cash flow from financing activities | 615,741,238.15 | -210,351,190.76 | |
| IV. Effect of foreign exchange rate changes on | - | - | |
| cash and cash equivalents | |||
| V. Net increase in cash and cash equivalents | -481,495,500.38 | -66,988,653.14 | |
| Plus: opening balance of cash and cash equivalents | 3,527,117,072.56 | 1,885,867,436.92 | |
| VI. Closing balance of cash and cash equivalents | 3,045,621,572.18 | 1,818,878,783.78 |
Legal Representative: ZHAO Wenge, Head in charge of accounting: WANG Dong, Head ofAccounting Department: ZHAO Difang
Statement of Changes in Consolidated Owners’ Equity
Jan-Jun 2022
Unit: RMB
| Item | Jan-Jun 2022 | ||||||||
| Equity attributable to owners of the parent company | Minority interest | Total owners’ equity | |||||||
| Paid-in capital (share capital) | Capital reserve | Less: treasury stocks | Other comprehensive income | Surplus reserve | Undistributed profits | Sub-total | |||
| I. Closing balance of the same reporting period of previous year | 5,491,274,176.00 | 1,631,509,114.96 | 137,494,800.00 | 60,850,735.02 | 1,505,209,795.50 | 6,059,496,846.85 | 14,610,845,868.33 | 19,996,225.47 | 14,630,842,093.80 |
| II. Opening balance of the current year | 5,491,274,176.00 | 1,631,509,114.96 | 137,494,800.00 | 60,850,735.02 | 1,505,209,795.50 | 6,059,496,846.85 | 14,610,845,868.33 | 19,996,225.47 | 14,630,842,093.80 |
| III. Change in current period (decrease is indicated by “-”) | - | 16,414,582.49 | - | -67,518,435.44 | - | 821,342,963.96 | 770,239,111.01 | 254,823.59 | 770,493,934.60 |
| (I) Total comprehensive income | - | - | - | -67,518,435.44 | - | 1,222,205,978.81 | 1,154,687,543.37 | 254,823.59 | 1,154,942,366.96 |
| (II)Owners’ contribution to and reduction in capital | - | 16,414,582.49 | - | - | - | - | 16,414,582.49 | - | 16,414,582.49 |
| 3. Amount of share-based payment into owner’s equity | - | 16,414,582.49 | - | - | - | - | 16,414,582.49 | - | 16,414,582.49 |
| (III) Profits distribution | - | - | - | - | - | -400,863,014.85 | -400,863,014.85 | - | -400,863,014.85 |
| 3．Distribution to owners (or shareholders) | - | - | - | - | - | -400,863,014.85 | -400,863,014.85 | - | -400,863,014.85 |
| IV. Closing balance of the current period | 5,491,274,176.00 | 1,647,923,697.45 | 137,494,800.00 | -6,667,700.42 | 1,505,209,795.50 | 6,880,839,810.81 | 15,381,084,979.34 | 20,251,049.06 | 15,401,336,028.40 |
| Item | Jan-Jun 2021 | ||||||||
| Equity attributable to owners of the parent company | Minority interest | Total owners’ equity | |||||||
| Paid-in capital (share capital) | Capital reserve | Less: treasury stocks | Other comprehensive income | Surplus reserve | Undistributed profits | Sub-total | |||
| 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. Change in current period (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 |
| (I) Total comprehensive income | - | - | - | -57,153,335.28 | - | 850,514,460.93 | 793,361,125.65 | -3,288,668.36 | 790,072,457.29 |
| (II)Owners’ contribution to and reduction in capital | - | 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 | - | 17,010,813.12 | - | - | - | - | 17,010,813.12 | 153,142.01 | 17,163,955.13 |
| share-based payment into owner’s equity | |||||||||
| (III) Profits distribution | - | - | - | - | - | -301,945,279.68 | -301,945,279.68 | - | -301,945,279.68 |
| 3．Distribution to owners (or shareholders) | - | - | - | - | - | -301,945,279.68 | -301,945,279.68 | - | -301,945,279.68 |
| 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 |
Legal Representative: ZHAO Wenge, Head in charge of accounting: WANG Dong, Head of Accounting Department: ZHAO Difang
Statement of Changes in Owners’ Equity of Parent Company
Jan-Jun 2022
Unit: RMB
| Item | Jan-Jun 2022 | ||||||
| Paid-in capital (share capital) | Capital reserve | Less: treasury stocks | Other comprehensive income | Surplus reserve | Undistributed profits | Total owners’ equity | |
| I. Closing balance of the same reporting period of previous year | 5,491,274,176.00 | 1,866,141,278.50 | 137,494,800.00 | 66,421,903.33 | 1,505,156,319.67 | 6,349,987,902.26 | 15,141,486,779.76 |
| II. Opening balance of the current year | 5,491,274,176.00 | 1,866,141,278.50 | 137,494,800.00 | 66,421,903.33 | 1,505,156,319.67 | 6,349,987,902.26 | 15,141,486,779.76 |
| III. Change in current period (decrease is indicated by “-”) | - | 4,215,089.34 | - | -78,078,517.69 | - | 932,250,672.77 | 858,387,244.42 |
| (I) Total comprehensive income | - | - | - | -78,078,517.69 | - | 1,333,113,687.62 | 1,255,035,169.93 |
| (II)Owners’ contribution to and reduction in capital | - | 4,215,089.34 | - | - | - | - | 4,215,089.34 |
| 3. Amount of share-based payment into owner’s equity | - | 4,215,089.34 | - | - | - | - | 4,215,089.34 |
| (III) Profits distribution | - | - | - | - | - | -400,863,014.85 | -400,863,014.85 |
| 2. Distribution to owner (or shareholders) | - | - | - | - | - | -400,863,014.85 | -400,863,014.85 |
| IV. Closing balance of the current period | 5,491,274,176.00 | 1,870,356,367.84 | 137,494,800.00 | -11,656,614.36 | 1,505,156,319.67 | 7,282,238,575.03 | 15,999,874,024.18 |
| Item | Jan-Jun 2021 | ||||||
| Paid-in capital (share capital) | Capital reserve | Less: treasury stocks | Other comprehensive income | Surplus reserve | Undistributed profits | Total owners’ 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. Change in current period (decrease is indicated by “-”) | - | 10,920,930.43 | - | -55,501,596.91 | - | 656,082,796.14 | 611,502,129.66 |
| (I) Total comprehensive income | - | - | - | -55,501,596.91 | - | 958,028,075.82 | 902,526,478.91 |
| (II)Owners’ contribution to and reduction in capital | - | 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 |
Legal Representative: ZHAO Wenge, Head in charge of accounting: WANG Dong, Head of Accounting Department: ZHAO Difang
III. Basic information of the Company
1. Company profile
√Applicable □Not applicable
Zhejiang China Commodities City Group Co., Ltd. (the “Company”) is a company limited byshare and was incorporated on Dec 28, 1993 in Zhejiang province of the People’s Republic of China.The RMB-denominated common A shares issued by the Company got listed on Shanghai StockExchange 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 and supportingservices, sales of commodities, provision of online trading platforms and services, development andmanagement of online trading market, etc., in the category of comprehensive services.
The parent company of the Group is Yiwu China Commodities City Holdings Limited (hereinafterreferred to as “CCCH”) and the final controller of the Group is the State-owned Assets Supervisionand Administration Office of the People’s Government 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 changesin the reporting period, please refer to Note VIII. Changes in consolidation scope.
IV. Basis of preparation of financial statements
1. Basis of preparation
The financial statements of the Company were prepared on a going-concern basis.
The financial statements were prepared in accordance with the Accounting Standards forEnterprises-Basic Standards and the specific accounting standards, application guidelines,interpretations and other related regulations promulgated and amended thereafter (collectivelyreferred to as “Accounting Standards”).
The financial statements were all prepared based on the valuation principle of historical cost,except for certain financial instruments. In case of assets impairment, corresponding impairmentprovision was made in accordance with relevant provisions.
2. Going concern
√Applicable □Not applicable
The Company prepared its financial statements on a going-concern basis. The management ofthe Company expected that the Group would generate adequate cash inflow from the futureday-to-day operation, which in combination with the Group’s adequate lines of credit from bankscould be sufficient to repay its due debts.
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 accounting estimates based on thecharacteristics of actual production and operation, which are mainly reflected in the bad debtprovisions for receivables, inventory valuation methods, depreciation of fixed assets, amortization ofintangible assets, income recognition and measurement, recognition of property investments andfixed assets, and service life and residual value of fixed assets.
1. Statement of compliance with the Accounting Standards
The financial statements prepared by the Company comply with the requirements of theAccounting Standards, and truly and completely reflect the Company’s financial conditions,operating results, changes in shareholders’ equity, cash flows and other related information.
√Applicable □Not applicable
2. Accounting period
The Company’s accounting year is from Jan 1 to Dec 31 of each calendar year.
3. Operating cycle
√Applicable □Not applicable
The business cycle of the Company is relatively short, and 12 months are used as the standardfor defining the liquidity of assets and liabilities.
4. Functional currency
The Company’s functional currency is RMB. The Group uses RMB as its functional currencyand in the preparation of financial statements. Unless specifically stated, all amounts are expressedin RMB.
5. Accounting methods for merger of the enterprises under common control and merger of
the enterprises not under common control
√Applicable □Not applicable
The mergers of enterprises are divided into the mergers of the enterprises under commoncontrol and mergers of the enterprises not under common control.
Mergers of the enterprises under common control
Merger of the enterprises under common control refers to the merger of the enterprises that areunder ultimate control of the same party or parties before and after the merger and the control is nottemporary. For a merger of the enterprises under common control, the party obtaining control overthe other(s) involved in the merger on the date of merger is the merging party and the other(s) is(are)the merged party. The date of merger refers to the date when the merging party actually obtainscontrol over the merged party.
The assets and liabilities acquired by the merging party in a merger of the enterprises undercommon control (including the goodwill formed through the acquisition of the merged party by theultimate controller) are accounted according to the book value thereof in the ultimate controller’sfinancial statements on the date of merger. For the difference between the book value of the netassets obtained by the 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 shallbe adjusted; if the share capital premium is not sufficient to absorb the difference, the retainedearnings shall be adjusted.
Mergers of the enterprises not under common control
Merger of the enterprises not under common control refers to the merger of the enterprises thatare not under ultimate control of the same party or parties before and after the merger. For a mergerof the enterprises not under common control, the party obtaining control over the other(s) involved inthe merger on the date of acquisition is the acquirer and the other(s) is(are) the acquiree. The date ofacquisition refers to the date when the acquirer actually obtains control over the acquiree.
The acquiree’s identifiable assets, liabilities and contingent liabilities obtained from the mergerof the enterprises not under common control are measured at their fair values on the date ofacquisition.
If the sum of the fair value of the consideration paid for the merger (or fair value of the equitysecurities issued) and the fair value of the acquiree’s equity held before the date of acquisition ishigher than the share in the fair value of the acquiree’s identifiable net assets acquired from themerger, the difference between them is recognized as goodwill, which will be subsequentlymeasured by the cost less accumulated impairment loss. If the sum of the fair value of theconsideration paid 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 in the fair value of theacquiree’s identifiable net assets acquired from the merger, the measurement of the fair value of theacquiree’s identifiable assets, liabilities and contingent liabilities, the fair value of the considerationpaid for the merger (or fair value of the equity securities issued) and the fair value of the acquiree’sequity held before 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) and the fair value ofthe acquiree’s equity held before the date of acquisition is still lower than the share in the fair value ofthe acquiree’s identifiable net assets acquired from the merger after such review, the difference willbe recognized in the profit or loss for the current period.
For mergers of the enterprises not under common control that are executed through multipletransactions, the long-term equity investment of the acquiree before the date of acquisition shall bere-measured based on the fair value thereof on the date of acquisition and any difference between
the fair value and book value thereof shall be recognized in the profit or loss for the current period;other comprehensive income from the long-term equity investment of the acquiree before the date ofacquisition under the equity method shall be accounted on the same basis as that for the directdisposal of related assets or liabilities by the investee, and other changes in shareholders’ equitythan net gains or losses, other comprehensive income and profit distribution shall be recognized inthe profit or loss for the period where the date of acquisition falls.
6. Preparation method of consolidated financial statements
√Applicable □Not applicable
The financial statements to be consolidated is determined on the basis of control, includingthose of the Company and all of its subsidiaries. Subsidiaries refer to the entities controlled by theCompany (including the severable parts of enterprises and invested entities, and the structuredentities controlled by the Company).In the preparation of consolidated financial statements, the subsidiaries adopt the sameaccounting year and accounting policies as those adopted by the Company. Assets, liabilities, equity,income, expenses and cash flows generated from all deals between companies within the Group arefully offset at the time of merger.If the amount of loss for the current period attributable to the minority shareholders of asubsidiary exceeds the minority shareholders’ share in the opening balance of shareholders’ equityin the subsidiary, the excess will still be recognized against minority interest.For a subsidiary acquired through a business merger not under the same control, the operatingresults and cash flows of the acquiree will be included in the consolidated financial statements fromthe day when the Group acquires control, until the control of the Group ceases. In the preparation ofconsolidated financial statements, adjustments will be made to the financial statements of thesubsidiary based 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 operatingresults and cash flows of merged party will be included in the consolidated financial statements sincethe beginning of the current period of the merger. In the preparation of consolidated financialstatements, adjustments will be made to the related items in its previous financial statements as ifthe reporting entity formed after the merger has been existing as from the ultimate controller starts toexercise control.In case of any change to one or more elements of the control due to the changes in related factsand circumstances, the Group will re-evaluate whether to control 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. Joint operation refers toa joint arrangement in which the parties thereto enjoy the assets relating to such arrangement andassume the liabilities relating to such arrangement. Joint venture refers to a joint arrangement inwhich the parties thereto only enjoy rights to the net assets in this arrangement.
Each party to a joint arrangement recognizes the following items relating to its share in the jointoperation: assets held individually by it and assets held jointly based on its share; liabilities assumedindividually by it and liabilities assumed jointly based on its share; revenue from the sale of its sharein the output of the joint operation; revenue from the sale of the output of the joint operation based onits share; expenses incurred individually by it and expenses incurred by the joint operation based onits share.
8. Criteria for the identification of cash and cash equivalents
Cash refers to the Group’s cash on hand and deposits that can be used for payment at any time;cash equivalent refers to the investment held by the Group with a short term, strong liquidity, easy toconvert into cash with a known amount, and with low risk of value changes.
9. Foreign currency transactions and translation of foreign currency financial statements
√Applicable □Not applicable
For foreign currency transactions, the Group will translate the foreign currency amounts into itsfunctional currency amounts.In the initial recognition of a foreign currency transaction, the foreign currency amount istranslated to a functional currency amount according to the spot exchange rate on the date oftransaction. On the balance sheet date, the foreign currency monetary items are translatedaccording to the spot exchange rate on the balance sheet date. The translation difference betweensettlement and monetary items is recognized in the profit or loss for the current period, except for thedifference arising from the special foreign currency borrowing relating to the acquisition andconstruction of the assets qualified for capitalization, which will be treated based on the principles forthe capitalization of borrowing expenses. The foreign currency non-monetary items measured byhistorical cost are also translated according to the spot exchange rate on the date of transaction,without changing the functional currency amounts thereof. The foreign currency non-monetary itemsmeasured by fair value are translated according to the spot exchange rate on the fair valuedetermination date and the difference arising therefrom is recognized in the profit or loss or othercomprehensive income for the current period based on the nature of the items.The Group translates the functional currency of its foreign business into RMB while preparingthe financial statements. The assets and liabilities items in the balance sheet are translatedaccording to the spot exchange rate on the balance sheet date, the shareholders’ equity items aretranslated according to the spot exchange rate at the occurrence of the items except for“undistributed profits”; revenue and expenses items in the income statement are translatedaccording to the average exchange rate during the period in which the transaction happens. Thetranslation differences of foreign currency statements arising from the above translations arerecognized as other comprehensive income. For the disposal of foreign business, othercomprehensive income relating to the foreign business is recognized in the profit or loss of thedisposal for the current period and is calculated pro rata for partial disposal.The foreign currency cash flow and cash flow of foreign subsidiaries are translated according tothe spot exchange rate on the occurrence date of cash flow/average exchange rate during the periodin which the cash flow occurs. The amount of impact of the changes in exchange rate on cash isseparately stated in the cash flow statement as an adjustment item.
10. Financial instruments
√Applicable □Not applicable
Financial instruments refer to the contracts which form financial assets of an enterprise andform financial liabilities or equity instruments of other entities.
Recognition and de-recognition of financial instruments
The Group recognizes a financial asset or financial liability at the time of becoming a party to afinancial instrument contract.
The Group will derecognize a financial asset (or a part of the financial asset or a part of a groupof similar financial assets), 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, or the obligation topay the collected cash flows in full and in time to a third party under the “handover agreement” hasbeen undertaken; and (a) all risks and rewards in the ownership of the financial assets have beensubstantially transferred, or (b) almost all risks and rewards in the ownership of the financial assethave been neither transferred nor retained, but control of the financial asset has been waived.
If a financial liability has been fulfilled, revoked or expired, it will be derecognized. If an existingfinancial liability is replaced by the same creditor with another financial liability under substantiallydifferent terms or the terms of the existing liability are substantially modified in whole, the existingliability will be derecognized 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 and de-recognitionthereof will be conducted based on the accounting on the transaction date. Transactions of financialassets in regular ways refer to the collection or delivery of financial assets within the time limitprescribed by laws and regulation or prevailing practices in accordance with the contract terms. Thetransaction date refers to the date when the Group promises to buy or sell the financial assets.
Classification and measurement of financial assets
Based on the Group’s business model for the management of financial assets and the featuresof the contractual cash flow of financial assets, the Group’s financial assets are classified at initialrecognition into the financial assets that are measured by fair value and of which the changes in fair
value are recognized in the profit or loss for the current period, the financial assets measured byamortized cost and 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 the accounts receivable ornotes receivable from the sale of goods or rendering of service do not include significant financingcomponents or the financing components with a term no longer than one year are not considered,the initial measurement will be made based on the transaction price.For the financial assets that are measured by fair value and of which the changes in fair valueare recognized in the profit or loss for the current period, the related transaction fees will be directlyrecognized in the profit or loss for the current period; the related transaction fees of other financialassets will be recognized in the initially recognized amounts thereof.The subsequent measurement of financial assets depends on the classification thereof:
Investment in debt instruments measured by amortized costA financial asset is classified into those measured by amortized cost, if the business model forthe management of the asset is for the purpose of collecting contractual cash flow; and the terms ofthe contract of the asset stipulate that the cash flow generated on the specific date is only therepayment of principal and the payment of interest on the outstanding principal. The interest incomeof such financial assets is recognized with the effective interest method, and the gains or losses fromthe de-recognition, modification or impairment thereof are all recognized in the profit or loss for thecurrent period.
Investment in the equity instruments that are measured by fair value and of which thechanges in fair value are recognized in other comprehensive income
The Group has irrevocably chosen to designate some non-trading equity instrumentinvestments as the financial assets that are measured by fair value and of which the changes in fairvalue are recognized in other comprehensive income. Only the related dividend income (except forthe dividend income expressly acting as a recovery of investment cost) is recognized in the profit orloss for the current period, while the subsequent changes in fair value are recognized in othercomprehensive income, and no provision is required for impairment. When the financial assets arederecognized, the accumulated gains or losses previously recognized in other comprehensiveincome will be moved out of other comprehensive income and recognized in retained earnings.
Financial assets that are measured by fair value and of which the changes in fair valueare recognized in the profit or loss for the current period
The financial assets other than the above financial assets measured by amortized cost and theabove financial assets that are measured by fair value and of which the changes in fair value arerecognized in other comprehensive income are classified as the financial assets that are measuredby fair value and of which the changes in fair value are recognized in the profit or loss for the currentperiod. Those financial assets are subsequently measured by fair value and all changes in the fairvalue thereof are recognized in the profit or loss for the current period.
Classification and measurement of financial liabilities
The Group’s financial liabilities are classified at initial recognition into the financial liabilities thatare measured by fair value and of which the changes in fair value are recognized in the profit or lossfor the current period and other financial assets. For the financial liabilities that are measured by fairvalue and of which the changes in fair value are recognized in the profit or loss for the current period,the related transaction fees are recognized directly in the profit or loss for the current period, whilethe related transaction fees of other financial liabilities are recognized in the initially recognizedamounts thereof.
The subsequent measurement of financial liabilities depends on the classification thereof:
Financial liabilities that are measured by fair value and of which the changes in fair valueare recognized in the profit or loss for the current period
The financial liabilities that are measured by fair value and of which the changes in fair value arerecognized in the profit or loss for the current period include financial liabilities held for trading(including the derivative instruments as financial liabilities) and the liabilities that are designated atinitial recognition as the financial liabilities that are measured by fair value and of which the changesin fair value are recognized in the profit or loss for the current period. The financial liabilities held fortrading (including the derivative instruments as financial liabilities) are subsequently measured byfair value and all changes in the fair value are recognized in the profit or loss for the current period.
Other financial liabilities
Those financial liabilities are subsequently measured by amortized cost with the effectiveinterest method.
Impairment of financial instruments
The Group has treated and recognized the impairment of the financial assets measured byamortized cost based on the expected credit loss.For receivables that do not contain significant financing components, the Group measures the lossprovision based on the amount of expected credit loss equivalent to the entire duration under asimplified measurement method,For the financial assets not measured with the simplified method, the Group evaluates on eachbalance sheet date whether their credit risks have increased significantly since the initial recognition.If the credit risk of a financial asset has not increased significantly since the initial recognition, theasset is in the first stage and the Group will make provision for loss based on the amount of expectedcredit loss within the coming 12 months and calculate interest income based on the book balanceand effective interest rate; if the credit risk has increased significantly since the initial recognition, butcredit has not been impaired, the asset is in the second stage and the Group will make provision forloss equivalent to the amount of expected credit loss during the entire term and calculate interestincome based on the book balance and effective interest rate; if credit has been impaired after theinitial recognition, the asset is in the third stage and the Group will make provision for loss equivalentto the amount of expected credit loss during the entire term and calculate interest income based onthe amortized cost and effective interest rate.The Group evaluates the expected credit losses of financial instruments on the individual andgroup bases. It evaluates the expected credit loss of accounts receivable by taking into account thecredit risk characteristics of different clients and 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 theassets whose credit has been impaired and assumptions for the measurement of expected creditloss, please refer to Notes X. 2.When the Group no longer reasonably expects that it can recover the contractual cash flow of afinancial asset in whole or in part, it will directly write down 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 accounts receivable
√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. Inventory
√Applicable □Not applicable
Inventory includes raw materials, work-in-progress materials, finished goods, real estatedevelopment costs and real estate development products.
Inventory is initially measured by cost. The costs of inventory except development costs anddevelopment products include the procurement cost, processing cost and other costs. The actualcosts of items out of inventory are determined with the weighted average method. Work-in-progressmaterials include low-value consumables and packages, which are amortized with the one-offamortization method.
Development costs refer to the properties that have not been completed and are developed forthe purpose of being sold. Development products refer to the properties that have been completed
and are ready for sale. The actual costs of real estate development costs and development productsinclude the land acquisition cost, expenditures on construction and installation works, capitalizedinterest and other direct and indirect development expenses. The use right of the land fordevelopment purpose at the development of a project is amortized and recognized as thedevelopment cost of the project based on the site area of the development product, and thedevelopment cost will be changed over to development product after being completed.If the public auxiliary facilities are completed earlier than the related development product, thefacilities will be allocated to and recognized in the development cost of related development projectbased on the floor space of the project after final accounting of the facilities upon completion; if thepublic auxiliary facilities are completed later than the related development product, they will berecognized in the development cost of related development project based on the predicted cost ofthe public auxiliary facilities.Hotel, catering and fresh goods inventories are subject to onsite inventory, while otherinventories are subject to perpetual inventory.On the balance sheet date, inventory is measured by cost and net realizable value, whichever islower. If the cost is higher than the net realizable value, provision will be made for inventorydepreciation, which will be recognized in the profit or loss for the current period. If the impact of theprevious provision for inventory depreciation has disappeared and the net realizable value of theinventory becomes higher than the book value thereof, the amounts written down previously in theoriginal provision for inventory depreciation will be restituted and recognized in the profit or loss forthe current period.Net realizable value is the estimated selling price of inventory less the cost estimated to occuras of completion, estimated sales expenses and related taxes. In principle, provisions for inventorydepreciation shall be made for inventory items individually. For the inventory with a large quantityand a low unit price, inventory depreciation provision will be made based on the Groups of items.
16. Contract assets
(1). Determination and criteria for contract assets
□Applicable √Not applicable
(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-term receivables
√Applicable □Not applicable
Please refer to Notes X. Risks Associated with Financial Instruments
21. Long-term equity investment
√Applicable □Not applicable
Long-term equity investment includes equity investment in subsidiaries, joint ventures andassociates.Long-term equity investment is initially measured by the initial investment cost at the time ofbeing acquired. For a long-term equity investment acquired through a business merger under the
same control, the initial investment cost is the share of the book value of the merged party’s owner’sequity acquired on the merger date in the ultimate controlling party’s consolidated financialstatements; The difference between the initial investment cost and the book value of the mergerconsideration is adjusted to the capital reserve (if it is insufficient to offset, the retained earnings willbe offset); other comprehensive income before the merger date is accounted for on the same basisas that for the investee’s direct disposal of related assets or liabilities when disposing of theinvestment. The shareholders’ equity recognized by the investee due to the changes inshareholders’ equity other than net profit and loss, other comprehensive income, and profitdistribution is transferred to the current profit and loss when the investment is disposed of; those thatare still long-term equity investments after disposal are carried forward in proportion, and those thatare converted into financial instruments after disposal are carried forward in full. For a long-termequity investment acquired through a business merger not under the same control, the merger costshall be used as the initial investment cost (for the business merger not under the same controlrealized step by step in a package deal, the sum of the book value and the new investment cost onthe acquisition date is used as the initial investment cost). The merger cost includes the sum of fairvalues of the assets paid, the liabilities incurred or assumed, and the equity securities issued by theacquirer; the other comprehensive income held prior to the acquisition date that is recognized foraccounting under the equity method is accounted for on the same basis as that for the investee’sdirect disposal of related assets or liabilities when disposing of the investment. The shareholders’equity recognized by the investee due to the changes in shareholders’ equity other than net profitand loss, other comprehensive income, and profit distribution is transferred to the current profit andloss when the investment is disposed of; those that are still long-term equity investments afterdisposal are carried forward in proportion, and those that are converted into financial instrumentsafter disposal are carried forward in full. The initial investment costs of the long-term equityinvestment acquired other than through merger are determined with the following methods: if aninvestment is acquired through the payment of cash, its initial investment cost consists of thepurchase price actually paid and the expenses, taxes and other necessary expenses directly relatingto the acquisition of the investment; and if an investment is acquired through the offering of equitysecurities, its initial investment cost is the fair value of the equity securities offered.For the accounting of the long-term equity investment through which the Company can exercisecontrol over the investees, the Company adopts the cost method in individual financial statements.Control refers to the power over an investee, with which the investor enjoys variable return byparticipating in the investee’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 initial investment cost. If theinvestment is added or recovered, the cost of long-term equity investment will be adjusted. The cashdividend or profit declared by the investees to be distributed is recognized as the investment incomefor the current period.If the Group has joint control over or significant influence on the investee, the long-term equityinvestment will be measured with the equity method. Joint control refers to joint control over anarrangement in accordance with related agreements, and decisions on the activities relating to thearrangement shall be made only after the parties sharing the control reach an agreement. Significantinfluence refers to the power over the decision-making on the financial affairs and business policiesof the investee, but the investor does not have control or joint control with others over the formulationof those policies.
In the equity method, if the initial investment cost of long-term equity investment is higher thanthe share enjoyed by the Group in the fair value of the investee’s identifiable net assets atinvestment, the excess will be recognized in the initial investment cost of the long-term equityinvestment; if the initial investment cost of long-term equity investment is lower than the shareenjoyed by the Group in the fair value of the investee’s identifiable net assets at investment, thedifference will be recognized in the profit or loss for the current period and the cost of the long-termequity investment will be adjusted simultaneously.In the equity method, after long-term equity investment is acquired, the investment gains orlosses and other comprehensive income shall be recognized and the book value of the long-termequity investment shall be adjusted based on the share in the net gains or losses and othercomprehensive income realized by the investees to be enjoyed or assumed. The share in theinvestee’s net gains or losses to be enjoyed shall be determined based on the fair value of theinvestee’ s identifiable assets at the acquisition of investment, according to the Group’s accountingpolicies and accounting periods and after net profits of the investee are adjusted with the portion ofgains or losses from the internal transactions with its associates and joint ventures that is attributable
to the investor based on the share to be enjoyed by it (but if the loss from internal transactions falls inthe assets impairment loss, it shall be recognized in full) offset, except for the invested and soldassets that constitute businesses. The book value of long-term equity investment shall be reducedaccording to the share to be enjoyed by it in the profits or cash dividend declared by the investees tobe distributed. For an investee’s net losses recognized by the Group, the book value of the long-termequity investment and other long-term equity that substantially constitute net investment in theinvestee shall be written down to zero at maximum, except for the extra losses for which the Group isliable. For the investee’s other changes in shareholders’ equity other than net gains or losses, othercomprehensive income and profit distribution, the book value of the long-term equity investment willbe adjusted and the changes will be recognized in the shareholders’ equity.For the disposal of long-term equity investment, the difference between the book value oflong-term equity investment and the proceeds actually received from the disposal thereof isrecognized in the profits or loss for the current period. For the long-term equity investment measuredwith the equity method, if the equity method is terminated due to the disposal, the original relatedother comprehensive income measured with the equity method will be accounted on the same basisas that for the direct disposal of related assets or liabilities by the investees, and the shareholders’equity recognized due to the investees’ other changes in shareholders’ equity than net gains orlosses, other comprehensive income and profit distribution will be recognized in the profits or loss forthe current period in full; if the equity method is still adopted, the original related othercomprehensive income measured with the equity method will be accounted on the same basis asthat for the direct disposal of related assets or liabilities by the investees and recognized in the profitsor loss for the current period pro rata, and the shareholders’ equity recognized due to the investees’other changes in shareholders’ equity than net gains or losses, other comprehensive income andprofit distribution will be recognized in the profit or loss for the current period pro rata.
Where the Company loses control over a subsidiary due to step-by-step disposal of its equityinvestment in the subsidiary through multiple transactions, if the transactions constitute a package ofdeals, each transaction will be accounted as a transaction that disposes of the subsidiary andcauses the loss of control over the subsidiary; however, the difference between the proceeds fromeach disposal and the book value of the corresponding long-term equity investment disposed of isrecognized as other comprehensive income in individual financial statements before the Companyloses control and is recognized in the profits or loss for the period in which the control is lost at theloss of control. If the transactions do not constitute a package of deals, each transaction will beaccounted separately. In the event that the Company loses control, if the residual equity after thedisposal enables the Company to have joint control over or significant influence on the subsidiary, itwill be recognized as long-term equity investment in individual financial statements and beaccounted in accordance with the relevant rules for changing the cost method to the equity method;otherwise, it will be recognized as a financial instrument and the difference between its fair value onthe date of the loss of control and its book value will be recognized in the profit or loss for the currentperiod.
22. Property investment
(1). Under cost measurement model
Depreciation or amortization methods
A property investment is a real estate property held with the intention of earning rents or ofcapital appreciation or both, including land use rights that have been leased, land use rights that areheld and ready to be transferred after appreciation, and buildings that have been leased.
Property investments are initially measured by cost. The subsequent expenses relating to anproperty investment will be recognized in the cost of the property investment if the economic benefitsrelating to the asset are very likely to flow in and the cost thereof can be measured reliably.Otherwise, they will be recognized in the profit or loss for the current period at the time of beingincurred.
The Group subsequently measures its property investments with the cost model. Thedepreciation/amortization of property investments is calculated on a straight line basis. The servicelife, estimated net residual value and annual depreciation rate of property investments are asfollows:
| Category | Service life | Estimated net residual value | Annual depreciation rate |
| Buildings and structures | 20-30 years | 4% | 3.2%-4.8% |
| Land use right | 40-70 years | - | 1.4%-2.5% |
23. Fixed assets
(1). Recognition requirements
√Applicable □Not applicable
A fixed asset will be recognized only if the economic benefits relating thereto are very likely toflow into the Group and its cost can be measured reliably. If meeting the above recognitionrequirement, the subsequent expenses relating to a fixed asset will be recognized in the cost of thefixed asset, and the book value of the replaced part will be deleted; otherwise, the subsequentexpenses will be recognized in the profit or loss for the current period at the time of being incurred.Fixed assets are initially measured by cost. The costs of purchasing a fixed asset include thepurchase price, related taxes and other expenses that are incurred before the fixed asset is made tothe predetermined ready-for-use status and are directly attributable to the asset.
(2). Depreciation methods
√Applicable □Not applicable
| Category | Depreciation methods | Depreciation period (number of years) | Residual value rate | Annual depreciation rate |
| Buildings and structures | Straight-line method | 10-40 | 4% | 2.4%-9.6% |
| General equipment | Straight-line method | 5-10 | 4% | 9.6%-19.2% |
| Transportation equipment | Straight-line method | 6 | 4% | 16.0% |
(3). Identification basis, pricing and depreciation method of the fixed assets under financial
lease
√Applicable □Not applicable
The depreciation method for the fixed assets under financial lease is the same as that forproprietary fixed assets. If it can be reasonably determined that the ownership of a leased asset willbe acquired upon expiry of the lease term, the depreciation will be based on its service life; if itcannot be reasonably determined that the ownership of a leased asset can be acquired upon expiryof the lease term, the depreciation will be based on the lease term or the service life of the asset,whichever is shorter.
24. Construction in progress
√Applicable □Not applicable
The cost of construction in progress is determined based on the actual expenses, including thenecessary expenses on the works incurred during the construction, the borrowing costs incurredbefore the works reach the predetermined ready-for-use status that shall be capitalized and otherrelated expenses.
The construction in progress will be recognized as fixed assets, property investment andlong-term prepaid expenses when reaching the predetermined ready-for-use status.
25. Borrowing costs
√Applicable □Not applicable
Borrowing costs refer to the interests incurred by the Group for its borrowings and other relatedcosts, including interest, amortization of discounts or premiums, ancillary costs and exchangedifference arising from foreign currency borrowings.
Borrowing costs that are directly attributable to the acquisition, construction or production of theassets qualified for capitalization shall be capitalized, and other borrowing costs shall be recognizedin the profit or loss for the current period. The assets qualified for capitalization refer to the fixedassets, property investment, inventory and other assets that can reach the predeterminedready-for-use or sale status only after a quite long time of acquisition, construction or production.
Borrowing costs can start to be capitalized only if they meet the following requirementssimultaneously:
(1) the expenses on assets have been incurred;
(2) the borrowing costs have been incurred;
(3) The purchase, construction or production activities necessary to make the asset reach theintended usable or saleable status have started.The borrowing costs for the assets qualified for capitalization shall cease being capitalized whenthe assets reach the predetermined ready-for-use or sale status after the acquisition, construction orproduction. The borrowing costs incurred subsequently will be recognized in the profit or loss for thecurrent period.During capitalization, the amount of interest to be capitalized during each accounting period isdetermined as follows:
For special borrowings, the amount of interest to be capitalized is the interest expenses actuallyincurred during the current period less the temporary deposits interest income or investment income.
(2) For occupied general borrowings, it is calculated and determined based on the weightedaverage of asset expenditures of the accumulated asset expenditure exceeding the portion ofspecial borrowings multiplied by the weighted average interest rate of the occupied generalborrowings.
If an asset qualified for capitalization is interrupted abnormally for more than three monthsduring its acquisition, construction or production except due to the necessary procedures for it toreach the predetermined ready-for-use or sale status, the capitalization of its borrowing costs will besuspended. The borrowing costs incurred during the interruption will be recognized as expenses andin the profit or loss for the current period until the acquisition, construction or production of the assetis resumed.
26. Biological assets
□Applicable √Not applicable
27. Oil and gas assets
□Applicable √Not applicable
28. Right-of-use assets
√Applicable □Not applicable
The Group's right-of-use asset classes mainly include buildings and lands.
On the commencement date of the lease term, the Group recognizes its right to use the leasedassets during the lease term as the right to use them, including: the initial measurement amount ofthe liabilities of the lease; The amount of the lease payment paid on or before the commencementdate of the lease term, where there is a lease incentive, shall be deducted from the amount of thelease incentive already enjoyed; Initial direct costs incurred by lessee; Costs expected to be incurredby the Lessee to disassemble and remove the leased asset, restore the leased asset to the site, orrestore the leased asset to the state agreed upon in the lease terms. The Group subsequently shalladopt the straight-line method for the depreciation of the usufruct assets. Where the ownership ofthe leased asset can be reasonably determined at the end of the lease term, the Group shall takedepreciation during the remaining useful life of the leased asset. Where it is not reasonably certainthat ownership of the leased asset will be acquired at the end of the lease term, the Group shallmake depreciation within the shorter period of the lease term or the remaining useful life of theleased asset.
When the Group measures the lease liabilities again according to the present value of thechanged lease payment amount and adjusts the book value of the right to use assets accordingly, ifthe book value of the right to use assets has been reduced to zero, but the lease liabilities still needto be further reduced, the Group shall 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 relating thereto are very likelyto flow into the Group and the costs thereof can be measured reliably, and will be initially measuredby cost. However, the intangible assets acquired from the merger of the enterprises not undercommon control will be individually recognized so long as the fair values thereof can be measuredreliably, and will be measured by fair value.The service life of an intangible asset is determined based on the term during which it can bringeconomic benefits to the Group. If the term during which an intangible asset can bring economicbenefits to the Group is unforeseeable, it will be deemed as an intangible asset with uncertainservice life.
The service life of intangible assets is as follows:
| Category | Service life |
| Land use right | 40-50 years |
| Software | 10 years |
The land use rights acquired by the Group are generally accounted as intangible assets. Thebuildings constructed by the Group itself, the related land use rights and buildings are accounted asintangible assets and fixed assets respectively. The price paid for the land and buildings purchasedexternally shall be allocated between the land use rights and buildings. If it is hard to reasonablyallocate the price, the price in full will be treated as fixed assets.
The intangible assets with finite service life shall be amortized with the straight-line methodduring their service life. The Group reviews and makes adjustment to, if necessary, the service lifeand amortization method of its intangible assets with finite service life at least at the end of eachyear.
(2). Accounting policies for internal R&D expenses
√Applicable □Not applicable
The Group divides expenditures for internal R & D projects into research expenditures anddevelopment expenditures. Research expenses are recognized in the profit or loss for the currentperiod at the time of being incurred. Development expenditures can be capitalized only when all ofthe following conditions are met at the same time, that is, it is technically feasible to complete theintangible asset to make them usable or saleable; there is an intention to complete the intangibleasset and use or sell it; the way for intangible assets to generate economic benefits, including theability to prove that there are markets for the products generated by the intangible assetsor theintangible assets themselves. Intangible assets that will be used internally can prove their usefulness;there are sufficient technology, financial resources and other resource supports to complete thedevelopment of the intangible asset and ability to use or sell the intangible asset; the expenditureattributable to the development of such intangible asset can be reliably measured. Developmentexpenditures that do not satisfy the above conditions are included in the current profits and losseswhen incurred.
30. Impairment of long-term assets
√Applicable □Not applicable
The Group determines the impairment of the assets other than inventory, deferred income taxand financial assets with the following methods.
The Group decides on the balance sheet date whether an asset has a sign of impairment. If ithas a sign of impairment, the Group will estimate its recoverable value and carry out an impairmenttest. For the goodwill formed due to the merger of enterprises and the intangible assets withuncertain service life, the Group carries out impairment tests at least at the end of each year,regardless of the impairment signs. For the intangible assets that have not been ready for use, theGroup also carries out impairment tests every year.
The recoverable value of an asset is determined based on the fair value of the asset less thedisposal expenses or the present value of the expected future cash flows of the asset, whichever ishigher. The Group estimates the recoverable value of each asset. For an asset whose recoverablevalue is hard to be estimated, the Group estimates the recoverable value of the assets group whichthe asset belongs to. 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 book value, the Groupwill write down its book value to the recoverable value and the amount written down will berecognized in the profit or loss for the current period; meanwhile, it will make provision for theimpairment thereof.
The above assets impairment loss will not be reversed during the subsequent accountingperiods.
31. Long-term prepaid expenses
√Applicable □Not applicable
Long-term prepaid expenses are amortized with the straight-line method and the amortizationperiods are as follows:
| Category | Amortization period |
| Architectural ornaments of buildings | 3-5 years |
| Advertising facilities | 3-5 years |
32. Contract liabilities
Recognition of contract liabilities
√Applicable □Not applicable
The Group presents contractual assets or contractual liabilities in the balance sheet based onthe relationship between performance obligations and customers’ payments. The Group offsets thecontractual assets and contractual liabilities under the same contract as a net amount.
A contractual liability refers to an obligation to transfer goods or services to a customer for theconsideration received or receivable from the customer, such as the amount received by theenterprise before the transfer of committed goods or services.
33. Employee compensations
(1) Accounting treatment of short-term compensations
√Applicable □Not applicable
The short-term compensations actually incurred during the accounting period when theemployees provide service for the Group are recognized as liabilities and are recognized in the profitor loss for the current period or costs of related assets.
(2) Accounting treatment of post-employment benefits
√Applicable □Not applicable
The employees of the Group participate in the endowment insurance and unemploymentinsurance managed by the local government, as well as the enterprise annuity, and thecorresponding expenditures are included in the relevant asset cost or current profit and loss whenincurred.
(3) Accounting treatment of severance benefits
√Applicable □Not applicable
When the Group provides severance benefits to its employees, the employee compensationliabilities arising from the severance benefits will be recognized, and the amount will be recognizedin the profit or loss for the current period on the earlier date below: the date when the Group cannotunilaterally withdraw the severance benefits provided as a result of the employment termination planor downsizing proposal; or the date when the Group recognizes the costs or expenses relating to thereorganization 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 present value of theoutstanding lease payments as a lease liability, except for short term and low value leases. Incalculating the present value of the lease payments, the Group uses the lease embedded interestrate as the discount rate; If the inherent interest rate of the lease cannot be determined, the lessee'sincremental borrowing rate shall be used as the discount rate. The Group calculates the interestexpense of the lease liability in each period of the lease term in accordance with the fixed cyclicalinterest rate and records it into the current profit and loss, except as otherwise stipulated in the costof the relevant assets. The variable lease payment not included in the measurement of lease
liabilities shall be recorded into the profit and loss of the current period when it actually occurs,except for those included in the cost of related assets as otherwise stipulated.After the lease term begins, in the future when substantial changes occurred in the fixed payment,the guaranteed residual value is expected to cope with the amount of change, is used to determinethe lease payment ratio index or change, call options, renewal options or terminate the optionevaluation results or the actual exercise changes, after the Group according to the change of thepresent value of the lease payments to measure lease liability.
35. Estimated liabilities
√Applicable □Not applicable
Except for the contingent considerations and contingent liabilities assumed in the mergers ofenterprises not under common control, an obligation relating to contingent matters will be recognizedby the Group as estimated liabilities if meeting the following requirements simultaneously:
(1) The obligation is a current obligation assumed by the Group;
(2) The performance of the obligation may result in the outflow of economic benefits from theGroup;
(3) The amount of the obligation can be measured reliably.
Estimated liabilities are initially measured based on the best estimate of the expenses requiredfor the performance of related current obligations, and the risks, uncertainties and time value ofmoney relating to the contingent matters are also factored in. The book value of estimated liabilitiesis reviewed on each balance sheet date. If any conclusive evidence indicates that the book valuecannot reflect the current best estimate, the book value will be adjusted based on the current bestestimate.
36. Share-based payment
√Applicable □Not applicable
Share-based payment is divided into equity-settled share-based payment and cash-settledshare-based payment. An equity-settled share-based payment refers to a deal in which the Groupuses shares or other equity instruments as the consideration for settlement to obtain services.
The equity-settled share-based payment in exchange for services provided by employees shallbe measured at the fair value of the equity instruments granted to employees. If it can be exercisedimmediately after the grant, it shall be included in the relevant costs or expenses at fair value on thegrant date, and the capital reserve shall be increased accordingly; if it cannot be exercised until theservice within the waiting period has been completed or the specified performance conditions havebeen satisfied on each balance sheet date during the waiting period, the Group will, based on thebest estimate of the number of exercisable equity instruments, include the services acquired in thecurrent period, as relevant costs or expenses based on the fair value on the grant date, and increasethe capital reserve accordingly .
None of cost or expense shall be recognized for a share payment that cannot be exercised dueto failure to meet non-market conditions and/or service period conditions. Where market conditionsor non-exercising conditions are stipulated in the share-based payment agreement, regardless ofwhether the market conditions or non-exercising conditions are satisfied, it shall be deemed asexercisable as long as all other performance conditions and/or service period conditions have beensatisfied.
If the equity-settled share payment is canceled, it will be treated as an accelerated exercise onthe cancellation day, and the unrecognized amount shall be recognized immediately. If an employeeor other party has option to satisfy the non-exercising conditions but fails to satisfy within the waitingperiod, it shall be treated as cancellation of equity-settled share-based payment. However, if a newequity instrument is granted and if it is determined that the new equity instrument granted is used toreplace the canceled equity instrument on the grant date of the new equity instrument, thereplacement equity instruments granted in the same way shall be treated in the same way as that forthe modification of the terms and conditions for the original equity instrument.
37. Preferred shares, perpetual bonds and other financial instruments
□Applicable √Not applicable
38. Revenue
(1). Accounting policies for the recognition and measurement of revenue
√Applicable □Not applicable
The Group recognizes incomes when it has fulfilled its performance obligations in the contract,that is, the customer has acquired the control over the relevant goods or services. The acquisition ofthe control over related goods or services means the ability to control the use of the goods or theprovision of the service and obtain almost all of the economic benefits from them.Commodity sales contractsCommodity sales contracts between the Group and customers usually only include performanceobligations for the transferred commodities. The Group generally recognizes incomes on the basis ofcomprehensive consideration of the following factors, at the time when the customer obtains controlof the relevant products: 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, the transfer of thelegal ownership of the commodities, the transfer of the physical assets of the commodities, and theacceptance of the commodities by the customer.Service contractsThe service contracts between the Group and its customers usually include performanceobligations such as the provision of the use of shops in the China Commodities Cities and itsoperating supporting services, the provision of hotel accommodation services and hotel cateringservices, and the provision of fixed-term paid funding services to related parties outside the Group.The use of shops in the China Commodities Cities and its supporting servicesSince customers obtain and consume the economic benefits brought about by the Group’sperformance at the time of the performance by the Group, the Group regards them as a performanceobligation to be fulfilled within a certain period of time and recognizes an income based on theperformance progress, except that the performance progress cannot be reasonably determined.Under the output method, the Group determines the performance progress of the provision of theuse of shops in the China Commodities Cities and the supporting services for its operation based onthe number of using days of the shops When the performance progress cannot be reasonablydetermined, if the cost incurred by the Group is expected to be compensated, the income shall berecognized according to the amount of the cost incurred until the performance progress can bereasonably determined.Hotel accommodation businessSince customers obtain and consume the economic benefits brought about by the Group’sperformance at the time of the performance by the Group, the Group regards them as a performanceobligation to be fulfilled within a certain period of time and recognizes an income based on theperformance progress, except that the performance progress cannot be reasonably determined. Inaccordance with the output method, the Group determines the performance progress of hotelaccommodation services based on the number of staying days. When the performance progresscannot be reasonably determined, if the cost incurred by the Group is expected to be compensated,the income shall be recognized according to the amount of the cost incurred until the performanceprogress can be reasonably determined.Hotel catering businessFor individual performance obligations in the provision of hotel catering services, the Groupprices hotel catering services separately, and uses the completion of hotel catering services as thepoint of income recognition.
Fixed -time paid funding services
Since customers obtain and consume the economic benefits brought about by the Group’sperformance at the time of the performance by the Group, the Group regards them as a performanceobligation to be fulfilled within a certain period of time and recognizes an income based on theperformance progress, except that the performance progress cannot be reasonably determined.Under the output method, the Group determines the performance progress of the services for thefixed-term paid funding services based on the number of using days of funds. When the performanceprogress cannot be reasonably determined, if the cost incurred by the Group is expected to becompensated, the income shall be recognized according to the amount of the cost incurred until theperformance progress can be reasonably determined.
(2). Differences in the revenue recognition policies for the same business under different
business models
□Applicable √Not applicable
39. Contract cost
□Applicable √Not applicable
40. Government grants
√Applicable □Not applicable
A government grant is recognized when it can meet the requirements and can be received. If agovernment grant falls in monetary assets, it will be measured by the amount received or receivable.If a government grant does not fall in monetary assets, it will be measured by fair value. If the fairvalue of a grant cannot be determined reliably, it will be measured by its nominal amount.A government grant prescribed by government documents to be used to acquire or construct orotherwise form long-term assets will be deemed as an asset-related government grant; if nogovernment documents have express provisions, the grants that are used to acquire or construct orotherwise form long-term assets will be deemed as asset-related government grants and others asincome-related government grants.The income-related government grants that are used to compensate for the related costs,expenses or losses during the subsequent periods are recognized as deferred income and will berecognized in the profit or loss or against the related costs for the period when the related costs,expenses or losses are recognized. The income-related government grants used to compensate forthe 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 of related assets;orrecognized as deferred income, and included in profit and loss in stages under a reasonable andsystematic method during the useful life of the related assets (but government grants measured at anominal amount shall be directly included in the current profit and loss); if the relevant asset is sold,transferred, scrapped or damaged before the end of its useful life, the balance of the undistributeddeferred income shall be transferred to the current profit and loss when the asset is disposal.
If the finance allocates the discounted funds to the loan bank, and the loan bank provides theGroup with a loan at a policy-oriented preferential interest rate, the Group takes the actual loanamount received as the book value of the loan, and the loan principal and the policy The preferentialinterest rate calculates the relevant borrowing costs.
41. Deferred income tax assets and deferred income tax liabilities
√Applicable □Not applicable
Income tax consists of current income tax and deferred income tax. Except for the income taxarising from the adjustment of goodwill caused by the mergers of enterprises or the income tax thatis related to the transactions or matters directly recognized in shareholders’ equity, which arerecognized in the shareholders’ equity, income tax will be recognized in the profit or loss for thecurrent period as income tax expenses or income.
The Group measures the current income tax liabilities or assets formed during the currentperiod and the previous periods by the estimated amount of income tax to be paid or refunded ascalculated in accordance with the tax law.
The Group recognizes deferred income tax with the balance sheet liability method based on thetemporary difference between the book value of assets and liabilities on the balance sheet date andthe tax base and that between the book value of the items that have not been recognized as assetsand liabilities but whose tax base can be determined according to the tax law and the tax basethereof.
All taxable temporary differences will be recognized as deferred income tax liabilities, unless:
(1) The taxable temporary difference is generated in the following types of transactions: theinitial recognition of goodwill, or the initial recognition of assets or liabilities generated in atransaction with the following characteristics: the transaction is not a business merger, and neitheraffecting accounting profits, nor impacting taxable incomes or deductible losses when a transactionoccurs.
(2) For taxable temporary differences related to investments in subsidiaries, joint ventures andassociated enterprises, the time for the reversal of the temporary differences can be controlled andthe temporary differences may not be reversed in the foreseeable future.
For the deductible temporary differences and the deductible losses and tax deductions that canbe carried forward to the subsequent years, the Group recognizes the deferred income tax assetsarising therefrom within the limit of the future taxable income that is very likely to be obtained andused to be offset against the deductible temporary differences, deductible losses and tax deductions,unless:
(1) The deductible temporary differences are generated in the following transactions: Thetransaction is not a business combination, and when the occurrence of the transaction affectsneither accounting profits nor taxable income or deductible losses.
(2) For deductible temporary differences related to investments in subsidiaries, joint venturesand associates, if all of the following conditions are satisfied simultaneously, the correspondingdeferred income tax assets are recognized: the temporary differences are likely to be reversed in theforeseeable future, and it is likely to obtain taxable income that can be used to offset the deductibletemporary differences in the future.
The Group measures, on the balance sheet date, the deferred income tax assets and liabilitiesbased on the applicable tax rate for the period when the assets are expected to be recovered or theliabilities are expected to be paid off, in accordance with the tax law, which will also reflect the impactof the way of the expected 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 the balance sheet date. If itis very likely to be unable to acquire adequate taxable income to be offset against the benefits ofdeferred income tax assets in the future, the book value of deferred income tax assets will be writtendown. On the balance sheet date, the Group re-evaluates the unrecognized deferred income taxassets and recognizes the same to the extent that it is very likely to acquire adequate taxable incometo reverse all or part of the deferred income tax assets.
If all the following requirements are met, deferred income tax assets and liabilities will bepresented in net amount after offsetting: the Group has the legal right to settle the current income taxassets and liabilities in net amount; the deferred income tax assets and liabilities are related to theincome tax levied by an identical tax authority on an identical taxpayer, or are related to the incometax levied by an identical tax authority on different taxpayers, but during each important period whenthe deferred income tax assets and liabilities are reversed, the involved taxpayers intend to settle thecurrent income tax assets and liabilities in net amount or acquire assets or pay off debtssimultaneously.
42. Lease
(1). Accounting treatment of operating lease
□Applicable √Not applicable
(2). Accounting treatment of financial lease
□Applicable √Not applicable
(3). Determination and accounting treatment of leases under the new lease standards
√Applicable □Not applicable
Identification of the lease
On the commencement date of the contract, the Group evaluates whether the contract is alease or an inclusive lease if a party in the contract cedes the right to control the use of one or moreidentified assets for a certain period in exchange for consideration. To determine whether thecontract cedes the right to control the use of the identified assets for a certain period, the Groupassesses whether the client in the contract is entitled to receive almost all the economic benefitsarising from the use of the identified assets during the use period and to dominate the use of theidentified assets during the use period.
Identification of separate leases
If the contract contains multiple separate leases at the same time, the Group will split thecontract and account for each separate lease separately. The right to use the identified assetconstitutes a separate lease in the contract if both of the following conditions are met:
(1) The lessee can profit from the use of the asset alone or in combination with other readilyavailable resources;
(2) The asset is not highly dependent or highly related to other assets in the contract.
Separation of lease and non-lease componentsIf the contract contains both lease and non-lease parts, when the Group acts as the lessor andlessee, the lease and non-lease parts are separated for accounting treatment.Evaluation of the lease termThe lease term is the irrevocable period during which the Group has the right to use the leasedasset. The Group has the option to renew the lease, that is, it has the right to choose to renew thelease of the asset, and if it is reasonably certain that the option will be exercised, the lease term alsoincludes the period covered by the renewal option. The Group has the option to terminate the lease,that is, it has the right to choose to terminate the lease of the asset, but if it is reasonably certain thatthe option will not be exercised, the lease term includes the period covered by the option to terminatethe lease. In the event of a major event or change within the control of the Group and affectingwhether the Group is reasonably certain to exercise the corresponding option, whether the Group isreasonably certain to exercise the option to renew the lease, purchase the option or not exercise theoption to terminate the lease right to be reassessed.
As a tenantSee Note V. 28 and Note V. 34 for the general accounting treatment of the Group as a lessee.Change in leaseChange in lease is the change in lease scope, lease consideration and lease term beyond theoriginal contract terms, including increasing or terminating the right to use one or more leased assets,extending or shortening the lease term specified in the contract, etc.If the lease changes and the following conditions are met at the same time, the Group willaccount for the change in lease as a separate lease:
(1) The change in lease expands the scope of the lease by increasing the right to use one ormore leased assets;
(2) The increased consideration is equivalent to the amount adjusted by the individual price ofthe expanded part of the lease scope according to the contract.
If the lease modification is not accounted for as a separate lease, on the effective date of thelease modification, the Group re-determines the lease term and discounts the modified leasepayments using the revised discount rate to remeasure the lease liability . When calculating thepresent value of the lease payment after the change, the Group uses the lease embedded interestrate of the remaining lease period as the discount rate; If it is impossible to determine the embeddedinterest rate of the remaining lease period, the Group's incremental loan interest rate on the effectivedate of the lease change shall be used as the discount rate.
Regarding the impact of the above lease liability adjustment, the Group conducts accountingtreatment according to the following situations:
(1) If the change in lease results in the narrowing of the lease scope or the shortening of thelease term, the Group reduces the book value of the right-of-use assets to reflect the partial orcomplete termination of the lease, and the relevant gains or losses from the partial or completetermination of the lease are included in profit and loss for the current period;
(2) For other changes in lease, the Group adjusts the book value of the right-of-use assetaccordingly.
Short-term leases and leases of low-value assets
The Group regards leases with a lease term shorter than 12 months and excluding purchaseoptions as short-term leases on the commencement date of the lease term; leases with a value notexceeding RMB 40,000 when a single leased asset is a brand-new asset is identified as a low-valueasset lease. If the Group subleases or expects to sublease the leased assets, the original lease isnot recognized as a low-value asset lease. The Group chooses not to recognize right-of-use assetsand lease liabilities for short-term leases and leases of low-value assets. In each period of the leaseterm, it is included in the relevant asset cost or current profit and loss on a straight-line basis.
As a lessor
The lease that transfers virtually all the risks and rewards related to the ownership of the leasedasset on the lease commencement date is a finance lease, and other leases are operating leases.
The Group as the lessor to operating leases
Rental income from operating leases is recognised in profit or loss on a straight-line basis overeach period of the lease term, and variable lease payments not included in lease receipts areincluded in profit or loss for the current period when actually incurred.
If an operating lease is changed, the Group will account for it as a new lease from the effectivedate of the change, and the advance receipts or lease receivables related to the lease before thechange will regarded as the receipts of the new lease.
43. Other important accounting policies and accounting estimates
√Applicable □Not applicable
Distribution of profitsThe Company’s cash dividend is recognized as liabilities after approval by the shareholders’meeting.
Measurement of fair valueThe Group measures the fair values of equity instruments investments on each balance sheetdate. Fair value refers to the price received from the sale of an asset or paid for the transfer of aliability by a market player in the orderly transactions on the measurement date. The Groupmeasures the related 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 related asset or liability, orif there is no principal market, assuming that the transaction is executed in the most advantageousmarket of related asset or liability. The principal market (or most advantageous market) is themarketplace which the Group can enter on the measurement date. The Group adopts theassumptions used by market players to maximize economic benefits in the pricing of the assets orliabilities.When measuring non-financial assets at fair value, consider the ability of market participants touse the asset for the best use to generate economic benefits, or to sell the asset to other marketparticipants who can use the asset for the best use to generate economic benefits.
The Group adopts the valuation technique that is applicable under the current conditions and issupported with sufficient available data and other information and uses the related observable inputswith priority. The unobservable inputs will be used only if the observable inputs are unavailable or itis unfeasible to acquire the observable inputs.For the assets and liabilities which are measured or disclosed by fair value in the financialstatements, the levels of fair value are determined based on the lowest-level input of importantsignificance for the overall measurement of fair values: Level 1 input is the unadjusted offer price foran identical asset or liability that can be obtained in an active market on the measurement date;Level 2 inputs are the inputs that are directly or indirectly observable for related assets or liabilitiesother than Level 1 inputs; Level 3 inputs are the inputs that are observable for related assets orliabilities.On each balance date, the Group re-evaluates the assets and liabilities that are recognized inthe financial statements and keep being measured by fair value so as to determine whether tochange the measurement levels of fair value.
Significant accounting judgments and estimates
In the preparation of financial statements, the management need to make judgments, estimatesand assumptions, which will affect the presented amounts and disclosure of revenue, expenses,assets and liabilities and the disclosure of contingent liabilities on the balance sheet date. However,the uncertainties of these assumptions and estimates may cause material adjustment to the bookvalue of the assets or liabilities that will be affected in the future.
Judgments
When applying the Group’s accounting policies, the management have made the followingjudgments which have had significant influence on the amounts recognized in the financialstatements:
Operating lease - as the lessor
The Group has signed lease contracts for the property investments. The Group thinks thataccording to the terms of the lease contracts, the Group retains all major risks and compensationson the titles of those real estate properties and thus handles them as operating leases.
Partition between property investments and fixed assets
The Group classifies the buildings and structures leased out other than for the main businessessuch as market and hotel services as well as the auxiliary land use rights thereof as propertyinvestments, including but not limited to the auxiliary banking and catering outlets for marketoperation and the auxiliary service outlets for hotels. Other buildings and structures leased out areclassified as fixed assets.
Judgments on assets acquisition and mergers of enterprises
When determining whether an acquisition transaction constitutes a merger, the Group assessesvarious factors, including whether the acquiree constitutes a business, in accordance with theAccounting Standards for Enterprises No. 20 – Merger of Enterprises. A business refers to a groupof some production and operation activities or assets and liabilities within an enterprise, which has
the input, processing and output abilities and whose costs and expenses or revenue can becalculated independently, but an asset or a group of assets or liabilities can be deemed as abusiness so long as it has the input and processing processes. The Group makes comprehensivejudgments by combining the asset acquired and the processing process.Business modelThe classification of financial assets at initial recognition depends on the Group’s businessmodel for the management of financial assets. When judging the business model, the Group factorsin the enterprise evaluation, the way of reporting financial assets performance to key managementpersonnel, the risks affecting the performance of financial assets, the way of managing financialassets and the way of related business management personnel obtaining remunerations. Whenassessing whether to aim at the collection of contractual cash flow, the Group needs to analyze thereasons, time, frequency and value for sale of the financial assets to be sold before the expiry datesthereof.Characteristics of contractual cash flowThe classification of financial assets at initial recognition depends on the characteristics of thecontractual cash flow of the financial assets. For the judgment on whether the contractual cash flowis the repayment of principal and the payment of interest on outstanding principal, including theevaluation of the adjustment to the time value of money, it should be judged whether it is significantlydifferent from the benchmark cash flow; for the financial assets with the early repaymentcharacteristic, it should be judged whether the fair value of the early repayment characteristic isextremely low.Uncertainties of estimatesThe key assumptions on the balance sheet date for the future and other key sources of theuncertainties of estimates are shown below, which may cause significant adjustments to the bookvalues of assets and liabilities during the future accounting periods.Impairment of financial instrumentsThe Group evaluates the impairment of financial instruments with the expected credit lossmodel. To apply the model, the Group needs to make significant judgments and estimates and takeinto account all reasonable and evidenced information, including forward-looking information. Whenmaking these judgments and estimates, the Group infers the expected changes in the debtors’ creditrisks based on their historical repayment data, in combination with the economic policies,macroeconomic indicators and industry risks. Different estimates may affect the provisions forimpairment and the provision that has been made for impairment may not necessarily be equal tothe 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 and estimates should be used. If themanagement adjust the estimated price and the costs and expenses to be incurred until thecompletion, it will affect the estimate of the net realizable value of the inventory and the differencewill affect the provision for inventory depreciation.
Impairment of non-current assets other than financial assets (excluding goodwill)The Group determines, on the balance sheet date, whether the non-current assets other thanfinancial assets have a sign of being impaired. For a non-current asset other than financial asset, if itis indicated that its book value cannot be recovered, an impairment test will be made. When the bookvalue of an asset or a group of assets is higher than its recoverable value, i.e. fair value less thedisposal expenses or the present value of expected future cash flow, whichever is higher, the assetor group has been impaired. For the fair value less the disposal expenses, the Group refers to theagreed selling price or observable market price of the similar asset in a fair transaction, less the costincrease directly attributable to the disposal of the asset. When predicting the present value of futurecash flows, the management 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 managementconsider whether the smallest identifiable group of assets can generate income and cash flowsindependently from other departments or units, or the income and cash inflows generated therebyare mostly independent from other departments or units, and also take into account the way ofmanaging or monitoring production 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 flows discounted at thecurrent discount rate of other financial instruments with similar contract terms and risk characteristics.
This requires the Group to estimate the expected future cash flows, credit risk, volatility and discountrate, which brings uncertainties.Development expensesWhen determining the amount of capitalization, management must make assumptions on theexpected future cash flow, the applicable discount rate, and the expected benefit period of the asset.
Deferred income tax assetsTo the extent that it is very likely for the Group to have enough taxable income to be offsetagainst the deductible losses, the Group shall recognize deferred income tax assets in connectionwith the outstanding deductible losses. This requires the management to use lots of judgments toestimate the acquisition time and amount of the taxable income to be acquired in the future todetermine the amount 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 the expected servicelife thereof after considering their residual value. The Group reviews the expected service life andresidual value of related assets on a regular basis to determine the amount of depreciation expensesto be recognized for each reporting period. The Group determines the service life and residual valueof assets based on its experience in similar assets and in combination with the expected technologychanges. If the previous estimates have material changes, the depreciation expenses will beadjusted for the future periods.
44. Changes in important accounting policies and accounting estimates
(1). Changes in important accounting policies
□Applicable √Not applicable
(2). Changes in important accounting estimates
□Applicable √Not applicable
45. Others
□Applicable √Not applicable
VI. Taxes
1. Major taxes and tax rates
Major taxes and tax rates
√Applicable □Not applicable
| Tax | 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 and construction tax | Indirect tax actually paid | 5% or 7% |
| Corporate income tax | Domestic enterprises should pay 25% of the taxable income of corporate income tax; European Huajie Development Co., |
| Ltd. is registered in Prague, Czech Republic, so it is subject to the corporate income tax rate of 19%; Yiwu China Commodities City (Hong Kong) International Trade Co., Ltd. is registered in Hong Kong Special Administrative Region, so it is subject to the Hong Kong income tax rate, 16.50%; Yiwu China Commodities City (Germany) Co., Ltd. is registered in Frankfurt, Germany, so it is subject to the corporate income tax rate of 15%. 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%) |
| Real estate 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 | 2% |
Disclosure of taxpayers subject to different income tax rates
√Applicable □Not applicable
| Taxpayer | Income tax rate (%) |
| European Huajie Investment Development Co., Ltd. | 19.00 |
| Yiwu China Commodities City (Hong Kong) International Trade Co., Ltd. | 16.50 |
| Yiwu China Commodities City (Germany) Co., Ltd. | 15.00 |
| BETTER SILK ROAD FZE | 0 |
2. Tax preference
√Applicable □Not applicable
According to the notice “Measures of Yiwu for Implementation of Adjustment of Urban Land UseTax Policies to Promote the Intensive and Economical Utilization of Land” (Y Z B F [2022] No. 16),the Company enjoys tax incentive of exemption from 90% of land use tax according to the statisticalcaliber of taxation on acres .
3. Others
□Applicable √Not applicable
VII. Notes to items in consolidated financial statements
1. Cash and cash equivalents
√Applicable □Not applicable
Unit: RMB
| Item | Closing balance | Opening balance |
| Cash on hand | 216,579.25 | 154,264.94 |
| Bank deposits | 4,498,985,667.17 | 4,831,258,722.95 |
| Other cash and cash equivalents | 131,802.10 | 55,398.36 |
| Total | 4,499,334,048.52 | 4,831,468,386.25 |
| In which: amount deposited abroad | 26,775,103.35 | 38,554,320.18 |
Other notes:
For the cash and cash equivalents which are restricted in use, please refer to Notes VII.81Assets with Restricted Title or Right of Use.
Interest income of demand deposits is accrued based on the demand deposit rates of banks.The term of short-term time deposits ranges from three months to half a year and depends on theGroup’s cash demand, and the interest income thereof is accrued based on the corresponding timedeposit rates of banks.
2. Held-for-trading financial assets
√Applicable □Not applicable
Unit: RMB
| Item | Closing balance | Opening balance |
| Financial assets that are measured by fair value and of which the changes in fair value are recognized in the profit or loss for the current period | 51,033,592.50 | 75,375,083.20 |
| Among which: | ||
| Equity instrument investment | 26,033,592.50 | 50,375,083.20 |
| Bank financing products | 25,000,000.00 | 25,000,000.00 |
| Total | 51,033,592.50 | 75,375,083.20 |
Other statements:
□Applicable √Not applicable
3. Derivative financial assets
□Applicable √Not applicable
4. Notes receivable
(1). Categorized presentation of notes receivable
□Applicable √Not applicable
(2). Notes receivable having been pledged by the Company as of the close of the 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 sheet date
□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
| Account age | Closing book balance |
| Within 1 year | 79,963,537.64 |
| 1 to 2 years | 120,212.00 |
| 2 to 3 years | 100,234.00 |
| Over 3 years | 291,021.46 |
| Total | 80,475,005.10 |
(2). Categorized disclosure based on the bad debt provision method
√Applicable □Not applicable
Unit: RMB
| Category | Closing balance | Opening balance | ||||||||
| Book balance | Bad debt provision | Book value | Book balance | Bad debt provision | Book value | |||||
| Amount | Proportion (%) | Amount | Provision ratio (%) | Amount | Proportion (%) | Amount | Provision ratio (%) | |||
| Accounts receivable for which bad debt provision is made individually | 6,261,907.10 | 7.78 | 6,261,907.10 | 100.00 | - | 97,219,393.59 | 50.71 | 6,261,907.10 | 6.44 | 90,957,486.49 |
| Among which: | ||||||||||
| Trade receivables | - | - | - | - | - | 90,957,486.49 | 47.44 | - | - | 90,957,486.49 |
| Lease receivables | 6,261,907.10 | 7.78 | 6,261,907.10 | 100.00 | - | 6,261,907.10 | 3.27 | 6,261,907.10 | 100.00 | - |
| Accounts receivable for which bad debt provision is made by group | 74,213,098.00 | 92.22 | 430,939.93 | 0.58 | 73,782,158.07 | 94,491,809.69 | 49.29 | 211,765.29 | 0.22 | 94,280,044.40 |
| Among which: | ||||||||||
| Accounts receivable for which the bad debts are provided by combination of credit risk characteristics | 74,213,098.00 | 92.22 | 430,939.93 | 0.58 | 73,782,158.07 | 94,491,809.69 | 49.29 | 211,765.29 | 0.22 | 94,280,044.40 |
| Total | 80,475,005.10 | / | 6,692,847.03 | / | 73,782,158.07 | 191,711,203.28 | / | 6,473,672.39 | / | 185,237,530.89 |
Accounts receivable for which bad debt provision is made individually:
√Applicable □Not applicable
Unit: RMB
| Name | Closing balance | |||
| Book balance | Bad debt provision | Provision ratio (%) | Reason for provision | |
| Lease receivables | 6,261,907.10 | 6,261,907.10 | 100.00 | Due to deterioration of operating conditions, expected not to be recovered |
| Total | 6,261,907.10 | 6,261,907.10 | 100.00 | / |
Explanation for making bad debt provision for accounts receivable individually:
□Applicable √Not applicable
Explanation for making bad debt provision for accounts receivable by group:
□Applicable √Not applicable
If the bad debt provision is made according to the general model of expected credit loss, please referto the disclosure of other receivables:
√Applicable □Not applicable
| Account age | End of June 2022 | ||
| Estimated book balance in default | Expected credit loss rate (%) | Expected credit loss for the duration | |
| Within 1 year | 73,701,630.54 | 0.16 | 117,922.61 |
| 1 - 2 years | 120,212.00 | 5.66 | 6,805.20 |
| 2 -3 years | 100,234.00 | 15.16 | 15,190.66 |
| Over 3 years | 291,021.46 | 100.00 | 291,021.46 |
| Total | 74,213,098.00 | 430,939.93 | |
(3). Provisions for bad debts
□Applicable √Not applicable
In which the recovered or reversed amount is important:
□Applicable √Not applicable
(4). Accounts receivable actually written off during the current period
□Applicable √Not applicable
(5). Accounts receivable from the five debtors with the highest closing balance
√Applicable □Not applicable
Unit: RMB
| Debtor | Closing balance | Proportion in the total closing balance of accounts receivable (%) | Closing balance of bad debt provision |
| Total balance of the accounts receivable with the top five entities | 33,324,100.20 | 41.41 | 6,305,206.61 |
| Total | 33,324,100.20 | 41.41 | 6,305,206.61 |
(6). Accounts receivable derecognized due to transfer of financial assets
□Applicable √Not applicable
(7). Amounts of assets and liabilities formed by the transfer of accounts receivable and
continuing involvement
□Applicable √Not applicable
Other notes:
□Applicable √Not applicable
6. Accounts receivable financing
□Applicable √Not applicable
7. Prepayments
(1). Presentation of prepayment by account age
√Applicable □Not applicable
Unit: RMB
| Account age | Closing balance | Opening balance | ||
| Amount | Proportion (%) | Amount | Proportion (%) | |
| Within 1 year | 354,712,671.92 | 98.20 | 868,252,359.56 | 99.21 |
| 1 to 2 years | 4,894,426.80 | 1.35 | 6,212,572.92 | 0.71 |
| 2 to 3 years | 1,281,986.00 | 0.35 | 602,777.00 | 0.07 |
| Over 3 years | 350,000.00 | 0.10 | 100,000.00 | 0.01 |
| Total | 361,239,084.72 | 100 | 875,167,709.48 | 100 |
Explanation for failure to settle the prepayments with an account age longer than one year and inimportant amounts:
Nil
(2). Prepayments to the five suppliers with the highest closing balance
√Applicable □Not applicable
| Debtor | Closing balance | Proportion in total closing balance of prepayments (%) |
| Binzhou Yellow River Oasis Agricultural Development Co., Ltd. | 57,853,830.00 | 16.02 |
| INDUSTRIAL PESQUERA SANTA PRISCILA S.A. | 46,430,455.57 | 12.85 |
| Sociedad Nacional de Galapagos C.A. SONGA | 45,440,739.74 | 12.58 |
| MARINASOL S.A. | 30,413,936.01 | 8.42 |
| PROCESADORA DE MARISCOS DE EL ORO PROMARO S.A. | 29,493,673.49 | 8.16 |
| Total | 209,632,634.81 | 58.03 |
Other statements
□Applicable √Not applicable
8. Other receivables
Presentation of items
√Applicable □Not applicable
Unit: RMB
| Item | Closing balance | Opening balance |
| Interest receivable | 3,107,715.32 | 92,249,275.44 |
| Other receivables | 743,611,270.51 | 1,263,675,007.52 |
| Total | 746,718,985.83 | 1,355,924,282.96 |
Other notes:
□Applicable √Not applicable
Interest receivable
(1). Classification of interest receivable
√Applicable □Not applicable
Unit: RMB
| Item | Closing balance | Opening balance |
| Cash occupation fee for receivables | 3,107,715.32 | 92,249,275.44 |
| Total | 3,107,715.32 | 92,249,275.44 |
(2). Significant overdue interest
□Applicable √Not applicable
(3). Bad debt provision
□Applicable √Not applicable
Other notes:
□Applicable √Not applicable
Dividend receivable
(1). Dividend receivable
□Applicable √Not applicable
(2). Important dividend receivable with an account age longer than 1 year
□Applicable √Not applicable
(3). Bad debt provision
□Applicable √Not applicable
Other notes:
□Applicable √Not applicable
Other receivables
(1). Disclosure based on account age
√Applicable □Not applicable
Unit: RMB
| Account age | Closing book balance |
| Within 1 year | 260,642,903.54 |
| 1 to 2 years | 460,810,668.28 |
| 2 to 3 years | 6,879,340.47 |
| Over 3 years | 19,386,332.60 |
| Bad debt provision for other receivables | -4,107,974.38 |
| Total | 743,611,270.51 |
(2). Classification based on the nature of accounts
√Applicable □Not applicable
Unit: RMB
| Nature of receivable | Closing book balance | Opening book balance |
| Financial assistance receivable from joint ventures | 466,228,109.38 | 1,103,178,748.00 |
| Withholdings, deposit and margin | 259,280,900.18 | 125,377,518.60 |
| Receivables from export tax rebate | 17,268,258.54 | 34,759,474.84 |
| Reserve | 834,002.41 | 359,266.08 |
| Total | 743,611,270.51 | 1,263,675,007.52 |
(3). Bad debt provision
√Applicable □Not applicable
Unit: RMB
| Bad debt provision | Phase I | Phase 2 | Phase 3 | Total |
| Expected credit loss in the coming 12 months | Expected credit loss in the entire duration (credit has not been impaired) | Expected credit loss in the entire duration (credit has been impaired) | ||
| Balance on January 1, 2022 | 4,355,084.46 | 4,355,084.46 | ||
| Balance on January 1, 2022 in current period | ||||
| Provision made in the current period | 111,995.39 | 111,995.39 | ||
| Current reversal | 359,105.47 | 359,105.47 | ||
| Balance on June 30, 2022 | 4,107,974.38 | 4,107,974.38 |
Significant changes in the book balance of other receivables with changes in loss provisions:
□Applicable √Not applicable
Basis for the bad debt provision made in the current period and for assessing whether the credit riskof financial instruments has increased significantly:
□Applicable √Not applicable
(4). Provisions for bad debts
√Applicable □Not applicable
Unit: RMB
| Category | Opening balance | Amount of change during the current period | Closing balance | |
| Provision | Recovery or reversal | |||
| Bad debt provision for other receivables | 4,355,084.46 | 111,995.39 | 359,105.47 | 4,107,974.38 |
| Total | 4,355,084.46 | 111,995.39 | 359,105.47 | 4,107,974.38 |
In which the recovered or reversed amount is important:
□Applicable √Not applicable
(5). Other receivables actually written off during the current period
□Applicable √Not applicable
(6). Other receivables from the five debtors with highest closing balance
√Applicable □Not applicable
Unit: RMB
| Debtor | Nature of receivable | Closing balance | Account age | Weight in the total closing balance of other receivables (%) | Bad debt provision Closing balance |
| Yiwu Tonghui Shangbo Real Estate Co., Ltd. | Financial assistance | 258,477,909.38 | 1-2 years | 34.57 | - |
| Yiwu Handing Shangbo Real Estate Co., Ltd. | Financial assistance | 207,750,200.00 | 1-2 years | 27.78 | - |
| Yiwu Municipal Bureau of Finance | Land bid deposit | 132,840,000.00 | Within 1 year | 17.77 | - |
| Yisha Chengdu International Trade City Co., Ltd. | Temporary loan | 40,000,000.00 | Within 1 year | 5.35 | - |
| SUN OCEAN DEVELOPMENTS LIMITED | Margin | 4,026,840.00 | Within 1 year | 0.54 | - |
| Total | / | 643,094,949.38 | / | 86.01 | - |
(7). Receivables involving government grants
√Applicable □Not applicable
Unit: RMB
| Debtor | Government subsidy project name | Closing balance | Closing Aging | Estimated time, amount and basis for collection |
| Yiwu Taxation Bureau, State Administration of Taxation | Export tax rebate | 17,268,258.54 | Within 1 year | It is expected to be fully recovered by the end of October 2022, according to the "Interim Regulations of the People's Republic of China on Value-Added Tax" |
Other notes:
Nil
(8). Other receivables derecognized due to transfer of financial assets
□Applicable √Not applicable
(9). Amounts of assets and liabilities formed by the transfer of accounts receivable and
continuing involvement
□Applicable √Not applicable
Other notes:
□Applicable √Not applicable
9. Inventory
(1). Classification of inventory
√Applicable □Not applicable
Unit: RMB
| Item | Closing balance | Opening balance | ||||
| Book balance | Provision for inventory depreciation/provision for impairment of contract performance cost | Book value | Book balance | Provision for inventory depreciation/provision for impairment of contract performance cost | Book value | |
| Raw materials | 470,280.64 | - | 470,280.64 | 723,775.34 | - | 723,775.34 |
| Finished goods | 532,706,313.54 | - | 532,706,313.54 | 75,079,555.38 | - | 75,079,555.38 |
| Development cost | 123,683,595.74 | 28,303,338.06 | 95,380,257.68 | 347,123,927.41 | 28,303,338.06 | 318,820,589.35 |
| Development products | 1,054,046,726.67 | - | 1,054,046,726.67 | 928,561,037.31 | - | 928,561,037.31 |
| Work-in-progress materials | 2,151,516.13 | - | 2,151,516.13 | 4,217,610.61 | - | 4,217,610.61 |
| Total | 1,713,058,432.72 | 28,303,338.06 | 1,684,755,094.66 | 1,355,705,906.05 | 28,303,338.06 | 1,327,402,567.99 |
(2). Provision for inventory depreciation/provision for impairment of contract performance
cost
√Applicable □Not applicable
Unit: RMB
| Item | Opening balance | Increase in the current period | Decrease in the current period | Closing balance | ||
| Provision | Others | Charge-off or write-off | Others | |||
| Development cost | 28,303,338.06 | - | - | - | - | 28,303,338.06 |
| Total | 28,303,338.06 | - | - | - | - | 28,303,338.06 |
(3). Closing balance of inventory containing capitalized borrowing costs
√Applicable □Not applicable
On June 30, 2022, the inventory with a book value of RMB 35,797,443.87 (December 31, 2021:
RMB 35,797,443.87) was formed by capitalization of borrowing 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
| Item | 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 | 279,215,977.14 | 68,749,158.36 | 292,189,490.03 | 55,775,645.47 |
| Total | 347,123,927.41 | 68,749,158.36 | 292,189,490.03 | 123,683,595.74 |
Inventory-Developed Products Unit: RMB-yuan Currency: RMB
| Item | Opening balance | Increase in the current period | Delivered during current reporting period | Other transfer-out | Closing balance |
| Haicheng Phase I Business Street | 915,616,130.79 | 90,000.00 | - | - | 915,706,130.79 |
| Haicheng Phase II Business Street | - | 292,189,490.03 | 153,848,894.15 | - | 138,340,595.88 |
| Shuangchuang Building | 12,944,906.52 | - | 1,405,473.53 | 11,539,432.99 | - |
| Total | 928,561,037.31 | 292,279,490.03 | 155,254,367.68 | 11,539,432.99 | 1,054,046,726.67 |
10. Contract assets
(1). Overview of contract assets
□Applicable √Not applicable
(2). Amount of and reasons for material changes to book value during the reporting period
□Applicable √Not applicable
(3). Provision for impairment of contract assets in the current period
□Applicable √Not applicable
Other notes:
□Applicable √Not applicable
11. Held-for-sale assets
□Applicable √Not applicable
12. Non-current assets due within one year
□Applicable √Not applicable
13. Other current assets
√Applicable □Not applicable
Unit: RMB
| Item | Closing balance | Opening balance |
| To-be-deducted input tax | 161,704,695.57 | 234,080,141.55 |
| Contract acquisition cost | 9,594,785.76 | 7,629,349.00 |
| To-be-certified input tax | 3,927,978.21 | 4,357,934.03 |
| Entrusted loans to the market traders | 2,110,199.39 | 2,780,294.82 |
| Less: bad debt provision for entrusted loans | -185,500.00 | -185,500.00 |
| Total | 177,152,158.93 | 248,662,219.40 |
Other notes:
Nil
14. Debt investments
(1). Overview of debt investment
□Applicable √Not applicable
(2). Important debt investment as of the close of the reporting period
□Applicable √Not applicable
(3). Provision for impairment
□Applicable √Not applicable
15. Other debt investments
(1). Overview of other debt investment
□Applicable √Not applicable
(2). Important other debt investment as of the close of the reporting period
□Applicable √Not applicable
(3). Provision for impairment
□Applicable √Not applicable
Other notes:
□Applicable √Not applicable
16. Long-term receivables
(1) Overview of long-term receivables
√Applicable □Not applicable
Unit: RMB
| Item | Closing balance | Opening balance | Range of discount rate | ||||
| Book balance | Bad debt provision | Book value | Book balance | Bad debt provision | Book value | ||
| Financial assistance receivable from joint ventures | 262,871,244.84 | - | 262,871,244.84 | 214,752,001.51 | - | 214,752,001.51 | |
| Guarantee deposit | 7,663,087.46 | - | 7,663,087.46 | 7,555,361.89 | - | 7,555,361.89 | |
| Total | 270,534,332.30 | - | 270,534,332.30 | 222,307,363.40 | - | 222,307,363.40 | / |
(2) Bad debt provision
□Applicable √Not applicable
(3) Long-term receivables derecognized due to transfer of financial assets
□Applicable √Not applicable
(4) Amounts of assets and liabilities formed by the transfer of long-term receivables and
continuing involvement
□Applicable √Not applicable
Other notes:
□Applicable √Not applicable
17. Long-term equity investment
√Applicable □Not applicable
Unit: RMB
| Investee | Opening amount Balance | Change in the current period | Closing amount Balance | Closing balance of impairment provision | ||||
| Additional investment | Decrease in investment | Investment gains or losses recognized with the equity method | Adjustment of other comprehensive income | Declared a cash dividend or profit | ||||
| 1. Joint ventures | ||||||||
| Yiwu Shanglv | 383,668,354.21 | - | - | 6,573,467.38 | - | - | 390,241,821.59 | - |
| Yiwu Rongshang Property | 217,387,537.94 | - | - | 473,231,114.45 | - | 580,865,600.00 | 109,753,052.39 | - |
| Yiwu Chuangcheng Property | 88,063,325.80 | - | - | 107,911,035.49 | - | 60,000,000.00 | 135,974,361.29 | - |
| Others | 60,140,520.92 | - | - | 14,358,584.28 | - | - | 74,499,105.20 | 3,327,216.16 |
| Sub-total | 749,259,738.87 | - | - | 602,074,201.60 | - | 640,865,600.00 | 710,468,340.47 | 3,327,216.16 |
| 2. Associates | ||||||||
| Huishang Micro-finance | 82,824,696.64 | - | - | 1,060,693.70 | - | - | 83,885,390.34 | - |
| Huishang Redbud equity | 70,996,992.21 | - | - | -3,372,135.02 | - | - | 67,624,857.19 | - |
| Chouzhou Financial Lease | 426,020,849.24 | - | - | 35,669,149.76 | - | - | 461,689,999.00 | - |
| Yiwu China Commodities City Investment Management Co., Ltd. | 9,508,049.22 | - | - | - | - | - | 9,508,049.22 | 9,508,049.22 |
| Yiwu China Commodities City Fuxing Investment Center (limited partnership) | 102,918,559.00 | - | - | - | - | - | 102,918,559.00 | - |
| Pujiang Lvgu | 459,281,437.25 | - | - | 9,866,449.40 | - | 88,200,000.00 | 380,947,886.65 | - |
| CCCP | 2,756,938,444.33 | - | - | 101,323,992.37 | - | - | 2,858,262,436.70 | - |
| Yiwu Hongyi Equity Investment Fund | 887,872,262.46 | - | - | 7,460,777.81 | -78,548.99 | - | 895,254,491.28 | - |
| Partnership (limited partnership) | ||||||||
| Others | 239,669,479.00 | 20,118,692.20 | 24,500,000.00 | -5,209,185.36 | 13,845,353.06 | 216,233,632.78 | - | |
| Sub-total | 5,036,030,769.35 | 20,118,692.20 | 24,500,000.00 | 146,799,742.66 | -78,548.99 | 102,045,353.06 | 5,076,325,302.16 | 9,508,049.22 |
| Total | 5,785,290,508.22 | 20,118,692.20 | 24,500,000.00 | 748,873,944.26 | -78,548.99 | 742,910,953.06 | 5,786,793,642.63 | 12,835,265.38 |
Other statements
Provision for impairment of long-term equity investment：
Unit: RMB
| Investee | Opening balance | Increase in the current period | Decrease in the current period | Closing balance |
| Yiwu China Commodities City Investment Management Co., Ltd. (Note 1) | 9,508,049.22 | - | - | 9,508,049.22 |
| Others | 3,327,216.16 | - | - | 3,327,216.16 |
| Total | 12,835,265.38 | - | - | 12,835,265.38 |
Note 1: In 2017, CCCF, a wholly-owned subsidiary of the Group, and Shanghai Fuxing Industrial Group Co., Ltd. (hereinafter referred to as "Fuxing")jointly established Industrial Fund Yiwu China Commodities City Fuxing Investment Center (LLP) (hereinafter referred to as the "Funds of Funds"), the Fund ofFunds has invested in 12 sub-funds including Yiwu Shangfu Chuangzhi Investment Center (LLP) (hereinafter referred to as "Shangfu Chuangzhi Fund").CCCF, as a limited partner, subscribed RMB 998 million in the FOF, accounting for 49.9% of the subscribed capital. The paid-in capital was RMB 102.92million, and there is no deadline for the payment for the unpaid capital contribution. The other limited partner of the FOF is Fuxing. CCCF also contributedRMB 9.8 million, 49% of total shares, to jointly establish Yiwu China Commodities City Investment Management Co., Ltd. (hereinafter referred to as “CCCIM”)with Fuxing as the general partner of the above-mentioned FOF and sub-funds. The FoF and CCCIM are both under the control of Fuxing and are associatesof CCCF. The above paid-in capital contribution made by CCCF to the FoF has been contributed to Shangfu Chuangzhi Fund together with the capitalcontribution of Fuxing to the FoF through the FoF as a limited partner. With the capital contribution from the FoF as a limited partner and CCCF’s capitalcontribution to Shangfu Chuangzhi Fund as a limited partner, Shangfu Chuangzhi Fund made capital contribution of RMB820.54million to subscribe for theincrease in the registered capital of Hubei Provincial Asset Management Co., Ltd. to acquire 22.667% equity therein.In 2018, CCCF learned during its after-investment follow-up management that Fuxing and its actual controller ZHU Yidong were suspected of havingcommitted a criminal offense and the 22.667% equity held by Shangfu Chuangzhi Fund in Hubei Provincial Asset Management Co., Ltd. was frozen by thePublic Security Bureau of Shanghai due to Fuxing’s contribution to the sources of the capital contribution. The Group believes that, on June 30, 2022, theGroup’s investment in the Fund of Funds and Shangfu Chuangzhi Fund was non-related to Fuxing’s investment, and there was no indication of impairment ofthe underlying assets. Although they were still frozen, they had no effect on the Group’s equity. Therefore, there was no impairment. However, for the equityinvestment managed for the Yiwu CCC, a full impairment provision has been made since 2018. See Notes VII.81 and Notes XIV. 1 for details.
18. Other equity instruments investment
(1). Overview of other equity instruments investment
√Applicable □Not applicable
Unit: RMB
| Item | Closing balance | Opening balance |
| Shenwan Hongyuan Group Co., Ltd. | 538,083,278.52 | 642,187,968.77 |
| Total | 538,083,278.52 | 642,187,968.77 |
(2). Non-trading equity instruments investment
□Applicable √Not applicable
Other notes:
□Applicable √Not applicable
19. Other non-current financial assets
√Applicable □Not applicable
Unit: RMB
| Item | Closing balance | Opening balance |
| Unlisted equity investment | 213,607,388.98 | 213,607,388.98 |
| PE investment | 1,319,445,253.54 | 1,263,329,797.13 |
| NEEQ equity investment | 40,035,175.00 | 47,882,069.30 |
| Total | 1,573,087,817.52 | 1,524,819,255.41 |
Other notes:
Nil
20. Property investment
Measurement models
(1). Property investment measured by cost
Unit: RMB
| Item | Buildings and structures | Land use right | Total |
| I. Original book value | |||
| 1. Opening balance | 3,062,389,558.31 | 438,760,984.63 | 3,501,150,542.94 |
| 2. Increase in the current period | 8,520,184.69 | 3,019,248.30 | 11,539,432.99 |
| (2) Inventory\fixed assets\construction in progress changed into property investment | 8,520,184.69 | 3,019,248.30 | 11,539,432.99 |
| 3. Decrease in the current period | 4,183,242.35 | - | 4,183,242.35 |
| (2) Other changeover | 4,183,242.35 | - | 4,183,242.35 |
| 4. Closing balance | 3,066,726,500.65 | 441,780,232.93 | 3,508,506,733.58 |
| II. Accumulated depreciation and accumulated amortization | |||
| 1. Opening balance | 445,818,997.23 | 81,395,145.25 | 527,214,142.48 |
| 2. Increase in the current period | 59,202,855.19 | 5,636,528.26 | 64,839,383.45 |
| (1) Provision or amortization | 59,202,855.19 | 5,636,528.26 | 64,839,383.45 |
| 3. Decrease in the current period | - | - | - |
| 4. Closing balance | 505,021,852.42 | 87,031,673.51 | 592,053,525.93 |
| III. Depreciation provision | |||
| 1. Opening balance | - | - | - |
| 4. Closing balance | - | - | - |
| IV. Book value | |||
| 1. Closing book value | 2,561,704,648.23 | 354,748,559.42 | 2,916,453,207.65 |
| 2. Opening book value | 2,616,570,561.08 | 357,365,839.38 | 2,973,936,400.46 |
(2). Information of the investment real estate for which the property right certificate has notyet been obtained:
√Applicable □Not applicable
Unit: RMB
| Item | Book value | Reasons for having not obtained the ownership certificate |
| Office building of the auxiliary project in western Yiwu | 99,404,674.81 | Completion settlement not completed |
| Total | 99,404,674.81 |
Other statements
√Applicable □Not applicable
On June 30, 2022, amount of the the investment real estate for which the property rightcertificate has not yet been obtained was RMB 99,404,674.81.
21. Fixed assets
Presentation of items
√Applicable □Not applicable
Unit: RMB
| Item | Closing balance | Opening balance |
| Fixed assets | 4,862,726,129.51 | 5,078,590,929.75 |
| Total | 4,862,726,129.51 | 5,078,590,929.75 |
Other notes:
Nil
Fixed assets
(1). Overview of fixed assets
√Applicable □Not applicable
Unit: RMB
| Item | Buildings and structures | Machinery equipment | Transportation equipment | Total |
| I. Original book value: | ||||
| 1. Opening balance | 7,561,987,149.45 | 3,867,198,470.98 | 13,325,615.62 | 11,442,511,236.05 |
| 2. Increase in the current period | - | 4,230,732.51 | 57,522.12 | 4,288,254.63 |
| (1) Purchase | - | 3,773,750.97 | 57,522.12 | 3,831,273.09 |
| (2) Changeover from construction in progress | - | 456,981.54 | - | 456,981.54 |
| 3. Decrease in the current period | 42,100,173.18 | 6,963,910.64 | 998,753.63 | 50,062,837.45 |
| (1) Disposal or retirement | - | 6,963,910.64 | 998,753.63 | 7,962,664.27 |
| (2) Other changeover | 42,100,173.18 | - | - | 42,100,173.18 |
| 4. Closing balance | 7,519,886,976.27 | 3,864,465,292.85 | 12,384,384.11 | 11,396,736,653.23 |
| II. Accumulated depreciation | ||||
| 1. Opening balance | 2,729,655,577.54 | 3,154,632,991.35 | 8,468,269.56 | 5,892,756,838.45 |
| 2. Increase in the current period | 142,055,011.31 | 36,414,826.05 | 552,993.28 | 179,022,830.64 |
| (1) Provision | 142,055,011.31 | 36,414,826.05 | 552,993.28 | 179,022,830.64 |
| 3. Decrease in the current period | 2,010,522.58 | 6,056,354.13 | 865,736.51 | 8,932,613.22 |
| (1) Disposal or retirement | - | 6,056,354.13 | 865,736.51 | 6,922,090.64 |
| (2) Other changeover | 2,010,522.58 | - | - | 2,010,522.58 |
| 4. Closing balance | 2,869,700,066.27 | 3,184,991,463.27 | 8,155,526.33 | 6,062,847,055.87 |
| III. Depreciation provision | ||||
| 1. Opening balance | 471,163,467.85 | - | - | 471,163,467.85 |
| 4. Closing balance | 471,163,467.85 | - | - | 471,163,467.85 |
| IV. Book value | ||||
| 1. Closing book value | 4,179,023,442.15 | 679,473,829.58 | 4,228,857.78 | 4,862,726,129.51 |
| 2. Opening book value | 4,361,168,104.06 | 712,565,479.63 | 4,857,346.06 | 5,078,590,929.75 |
(2). Temporarily idle fixed assets
□Applicable √Not applicable
(3). Fixed assets leased in through financial lease
√Applicable □Not applicable
Unit: RMB
| Item | Original book value | Accumulated depreciation | Impairment provision | Book value |
| General equipment | 6,084,431.99 | 5,841,054.71 | - | 243,377.28 |
(4). Fixed assets leased out through operating lease
□Applicable √Not applicable
(5). Fixed assets for which the ownership certificates have not been obtained
√Applicable □Not applicable
Unit: RMB
| Item | Book value | Reasons for having not obtained the ownership certificate |
| Huangyuan Clothing Market | 252,052,729.34 | Completion settlement not completed |
| CCC Hotel | 52,701,193.94 | Completion settlement not completed |
| Liaoning Xiliu Yiwu China Commodities City | 357,262,319.84 | Completion settlement not completed |
| The hotel as a supporting work for Liaoning Xiliu Yiwu China Commodities City | 456,499,084.67 | Completion settlement not completed |
| Total | 1,118,515,327.79 |
Other notes:
√Applicable □Not applicable
The impairment of fixed assets was RMB 471,163,467.85, which was the impairment of fixedassets of Haicheng Yiwu China Commodities City.
As of June 30, 2022, the amount of fixed assets for which the property right certificate has notyet been obtained due to the pending final settlement was RMB 1,118,515,327.79.Disposal of fixed assets
□Applicable √Not applicable
22. Construction in progress
Presentation of items
√Applicable □Not applicable
Unit: RMB
| Item | Closing balance | Opening balance |
| Construction in progress | 1,698,097,157.31 | 1,090,577,963.27 |
| Total | 1,698,097,157.31 | 1,090,577,963.27 |
Other notes:
Nil
Construction in progress
(1). Overview of construction in progress
√Applicable □Not applicable
Unit: RMB
| Item | Closing balance | Opening balance | ||||
| Book balance | Impairment provision | Book value | Book balance | Impairment provision | Book value | |
| West Yiwu International Means of Production Market Auxiliary Project | 191,458,192.21 | - | 191,458,192.21 | 212,637,292.78 | - | 212,637,292.78 |
| Liaoning Xiliu Yiwu China Commodities City Commerce Phase I Project—Hotel Project | 32,290,506.33 | -4,635,059.96 | 27,655,446.37 | 32,290,506.33 | -4,635,059.96 | 27,655,446.37 |
| The Zhimei Dachen tourismproject | 60,751,584.47 | - | 60,751,584.47 | 58,285,106.90 | - | 58,285,106.90 |
| The Chian West Sea tourism project | 70,446,792.08 | - | 70,446,792.08 | 68,040,671.22 | - | 68,040,671.22 |
| The Yiwu Comprehensive Bonded Zone Project | 916,476,466.50 | - | 916,476,466.50 | 357,114,238.02 | - | 357,114,238.02 |
| Zone II East Parking Lot Project | 218,439,962.05 | - | 218,439,962.05 | 276,099,117.75 | - | 276,099,117.75 |
| Yiwu Digital Trade Industrial Park | 86,829,745.85 | - | 86,829,745.85 | 60,070,777.68 | - | 60,070,777.68 |
| Logistics Park S2 | 83,067,635.14 | - | 83,067,635.14 | - | - | - |
| Other projects | 42,971,332.64 | - | 42,971,332.64 | 30,675,312.55 | - | 30,675,312.55 |
| Total | 1,702,732,217.27 | -4,635,059.96 | 1,698,097,157.31 | 1,095,213,023.23 | -4,635,059.96 | 1,090,577,963.27 |
(2). Changes to important construction in progress during the current period
√Applicable □Not applicable
Unit: RMB10,000
| Item | Budget | Opening amount Balance | Increase in the current period | Amount changed into fixed assets | Other decrease in the current period | Closing amount Balance | Ratio of accumulated investment to budget (%) | Progress of project | Accumulated capitalized interest | In which: capitalized interest in the current period | Interest capitalization ratio for the current period (%) | Source of funds |
| West Yiwu International Means of Production Market Auxiliary Project | 133,916.00 | 21,263.73 | - | - | 2,117.91 | 19,145.82 | 83.76 | Under construction | 9,938.28 | - | - | Self-owned/financing |
| Liaoning Xiliu Yiwu China Commodities City Commerce Phase I Project—Hotel Project | 180,000.00 | 3,229.05 | - | - | - | 3,229.05 | 96.32 | Shutdown | 154.61 | - | - | Self-owned/financing |
| The Zhimei Dachen tourismproject | 6,000.00 | 5,828.51 | 246.65 | - | - | 6,075.16 | 101.25 | Under construction | - | - | - | Self-owned |
| The Chian West Sea tourism project | 8,000.00 | 6,804.07 | 240.61 | - | - | 7,044.68 | 88.06 | Under construction | - | - | - | Self-owned |
| The Yiwu Comprehensive Bonded Zone Project | 624,250.00 | 35,711.42 | 55,936.22 | - | - | 91,647.64 | 76.93 | Under construction | - | - | - | Self-owned |
| Zone II East Parking Lot Project | 60,706.00 | 27,609.91 | - | - | 5,765.91 | 21,844.00 | 46.37 | Acceptance | - | - | - | Self-owned |
| Yiwu Digital Trade Industrial Park | 39,579.00 | 6,007.08 | 2,675.90 | - | - | 8,682.98 | 21.94 | Under construction | - | - | - | Self-owned |
| Logistics Park S2 | 108,683.00 | - | 8,306.76 | - | - | 8,306.76 | 7.64 | Under construction | - | - | - | Self-owned |
| Other projects | 3,067.53 | 1,275.30 | 45.70 | - | 4,297.13 | - | Under construction | - | - | - | Self-owned | |
| Total | 1,161,134.00 | 109,521.30 | 68,681.44 | 45.70 | 7,883.82 | 170,273.22 | / | / | 10,092.89 | - | / | / |
(3). Provision made for the impairment of construction in progress in the current period
□Applicable √Not applicable
Other statements
√Applicable □Not applicable
The impairment value of the project under construction is RMB 4,635,059.96, which is the provision impairment of Liaoning Xiliu Yiwu China CommoditiesCity Commerce Phase I Project—Hotel Project.
Construction materials
□Applicable √Not applicable
23. Productive biological assets Productive biological assets
Productive biological asset measured by cost
□Applicable √Not applicable
(1). Productive biological asset measured by fair value
□Applicable √Not applicable
Other statements
□Applicable √Not applicable
(2). Productive biological asset measured by cost
□Applicable √Not applicable
24. Oil and gas assets
□Applicable √Not applicable
25. Right-of-use assets
√Applicable □Not applicable
Unit: RMB
| Item | Buildings and structures | Land | Total |
| I. Original book value | |||
| 1. Opening balance | 128,748,477.02 | 125,879,033.69 | 254,627,510.71 |
| 4. Closing balance | 128,748,477.02 | 125,879,033.69 | 254,627,510.71 |
| II. Accumulated depreciation | |||
| 1. Opening balance | 21,694,272.46 | 7,586,161.11 | 29,280,433.57 |
| 2. Increase in the current period | 8,287,864.11 | 5,801,157.21 | 14,089,021.32 |
| (1) Provision | 8,287,864.11 | 5,801,157.21 | 14,089,021.32 |
| 4. Closing balance | 29,982,136.57 | 13,387,318.32 | 43,369,454.89 |
| III. Depreciation provision | |||
| 1. Opening balance | - | - | - |
| 4. Closing balance | - | - | - |
| IV. Book value | |||
| 1. Closing book value | 98,766,340.45 | 112,491,715.37 | 211,258,055.82 |
| 2. Opening book value | 107,054,204.56 | 118,292,872.58 | 225,347,077.14 |
Other notes:
Nil
26. Intangible assets
(1). Overview of intangible assets
√Applicable □Not applicable
Unit: RMB
| Item | Land use right | Software | Total |
| I. Original book value | |||
| 1. Opening balance | 5,620,777,656.44 | 72,090,272.16 | 5,692,867,928.60 |
| 2. Increase in the current period | 264,349,500.00 | 543,574.26 | 264,893,074.26 |
| (1) Purchase | 264,349,500.00 | 543,574.26 | 264,893,074.26 |
| 3. Decrease in the current period | - | - | - |
| 4. Closing balance | 5,885,127,156.44 | 72,633,846.42 | 5,957,761,002.86 |
| II. Accumulated amortization | |||
| 1. Opening balance | 1,642,066,103.72 | 7,237,162.53 | 1,649,303,266.25 |
| 2. Increase in the current period | 73,257,337.22 | 2,612,881.03 | 75,870,218.25 |
| (1) Provision | 73,257,337.22 | 2,612,881.03 | 75,870,218.25 |
| 3. Decrease in the current period | - | - | - |
| 4. Closing balance | 1,715,323,440.94 | 9,850,043.56 | 1,725,173,484.50 |
| III. Depreciation provision | |||
| 1. Opening balance | - | - | - |
| 4. Closing balance | - | - | - |
| IV. Book value | |||
| 1. Closing book value | 4,169,803,715.50 | 62,783,802.86 | 4,232,587,518.36 |
| 2. Opening book value | 3,978,711,552.72 | 64,853,109.63 | 4,043,564,662.35 |
At the end of the period, the percentage of the intangible assets formed through the Company'sinternal research and development in the balance of intangible assets was 0.75%
(2). Land use right for which the ownership certificate has not been obtained
□Applicable √Not applicable
Other notes:
□Applicable √Not applicable
27. Development expenses
√Applicable □Not applicable
Unit: RMB
| Item | Opening amount Balance | Increase in the current period | Decrease in the current period | Closing amount Balance |
| Internal development expenditure | Recognized as intangible assets | |||
| The development project for platform “chinagoods” | 6,359,814.02 | 12,325,510.03 | - | 18,685,324.05 |
| Total | 6,359,814.02 | 12,325,510.03 | - | 18,685,324.05 |
Other notes:
Nil
28. Goodwill
(1). Original book value of goodwill
□Applicable √Not applicable
(2). Provision for goodwill impairment
□Applicable √Not applicable
(3). Information on the assets group or combination of assets groups to which the goodwillbelongs
□Applicable √Not applicable
(4). Goodwill impairment test process, key parameters (e.g. growth rate in the forecast
period, growth rate in the stable period, profit margin, discount rate, forecast period forthe estimate of present value of future cash flows, if applicable) and recognition ofgoodwill impairment loss
□Applicable √Not applicable
(5). Impact of goodwill impairment test
□Applicable √Not applicable
Other notes:
□Applicable √Not applicable
29. Long-term prepaid expenses
√Applicable □Not applicable
Unit: RMB
| Item | Opening balance | Increase in the current period | Amortized amount in the current period | Closing balance |
| Decoration of buildings and structures | 174,871,839.30 | - | 13,593,423.11 | 161,278,416.19 |
| Advertising facilities | 13,312,537.13 | 9,469,811.06 | 8,472,802.77 | 14,309,545.42 |
| Total | 188,184,376.43 | 9,469,811.06 | 22,066,225.88 | 175,587,961.61 |
Other notes:
Nil
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 income tax assets | Deductible temporary difference | Deferred income tax assets | |
| Provision for impairment of assets | 14,868,883.20 | 3,717,220.80 | 18,766,810.88 | 4,691,702.72 |
| Unrealized profits of internal transactions | 1,094,793.12 | 273,698.28 | 1,094,793.10 | 273,698.28 |
| Deductible losses | 9,544,749.40 | 2,386,187.35 | 10,635,059.71 | 2,658,764.93 |
| Recognized but unpaid liabilities | 269,749,328.20 | 67,437,332.05 | 359,852,941.25 | 89,963,235.31 |
| Overspent advertising cost | 8,497,106.53 | 2,124,276.63 | 8,497,106.53 | 2,124,276.63 |
| Changes in the fair value of other non-current financial assets | 97,265,682.48 | 24,316,420.62 | 87,763,868.16 | 21,940,967.04 |
| Change in fair value of other equity instruments investment | 15,542,152.48 | 3,885,538.12 | - | - |
| Changes infair value of trading financial assets | 1,654,920.00 | 413,730.00 | - | - |
| Right-of-use assets and lease liabilities | 4,575,914.17 | 1,143,978.54 | 3,291,235.93 | 822,808.98 |
| Asset-related government grants | 79,879,800.00 | 19,969,950.00 | 53,046,300.00 | 13,261,575.00 |
| Total | 502,673,329.58 | 125,668,332.39 | 542,948,115.56 | 135,737,028.89 |
(2). Deferred income tax liabilities having not been offset
√Applicable □Not applicable
Unit: RMB
| Item | Closing balance | Opening balance | ||
| Taxable temporary difference | Deferred income tax Debt | Taxable temporary difference | Deferred income tax Debt | |
| Asset evaluation appreciation for merger of the enterprises not under common control | 785,231.24 | 196,307.81 | 879,727.84 | 219,931.94 |
| Change in fair value of other equity instruments investment | - | - | 88,562,537.79 | 22,140,634.45 |
| Changes infair value of other non-current financial assets | 357,882,702.12 | 89,470,675.53 | 357,773,989.10 | 89,443,497.28 |
| Changes infair value of trading financial assets | - | - | 373,599.00 | 93,399.75 |
| Total | 358,667,933.36 | 89,666,983.34 | 447,589,853.73 | 111,897,463.42 |
(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 | 477,308,792.73 | 485,392,932.16 |
| Deductible losses | 951,481,265.31 | 1,090,714,817.48 |
| Total | 1,428,790,058.04 | 1,576,107,749.64 |
(5). The deductible loss in unrecognized deferred income tax assets will be due in the
following years
√Applicable □Not applicable
Unit: RMB
| Year | Closing amount | Opening amount | Remarks |
| 2022 | 245,346,275.18 | ||
| 2023 | 145,652,609.01 | 145,652,609.01 | |
| 2024 | 177,875,157.18 | 219,603,443.50 | |
| 2025 | 286,076,024.63 | 236,606,485.47 | |
| 2026 | 257,575,644.11 | 243,506,004.32 | |
| 2027 | 84,301,830.38 | ||
| Total | 951,481,265.31 | 1,090,714,817.48 | / |
Other notes:
√Applicable □Not applicable
The Group believes that, the deductible temporary differences including the aforementionedprovision for asset impairment and the deductible losses of some subsidiaries can be deducted inthe foreseeable future, and it is expected that the Group will have sufficient pre-tax profit fordeduction during the reversing period. Therefore, the Group deemed it necessary to recognize theabove deferred income tax assets.
31. Other non-current assets
√Applicable □Not applicable
Unit: RMB
| Item | Closing balance | Opening balance | ||||
| Book balance | Impairment provision | Book value | Book balance | Impairment provision | Book value | |
| Prepaid land transfer fees | 138,253,316.00 | - | 138,253,316.00 | 138,253,316.00 | - | 138,253,316.00 |
| Prepaid equity transfer consideration | 67,395,000.00 | - | 67,395,000.00 | 67,395,000.00 | - | 67,395,000.00 |
| Prepayment for renovation works and prepaid decoration rent | 10,172,014.19 | - | 10,172,014.19 | 5,681,334.45 | - | 5,681,334.45 |
| Total | 215,820,330.19 | - | 215,820,330.19 | 211,329,650.45 | - | 211,329,650.45 |
Other notes:
Nil
32. Short-term borrowings
(1). Classification of short-term borrowings
√Applicable □Not applicable
Unit: RMB
| Item | Closing balance | Opening balance |
| Credit loans | 587,435,842.88 | 942,736,046.04 |
| Total | 587,435,842.88 | 942,736,046.04 |
Note to the classification of short-term borrowings:
Nil
(2). Overdue short-term borrowings
□Applicable √Not applicable
Other notes:
√Applicable □Not applicable
As of June 30, 2022, the annual interest rate of the above-mentioned short-term financingbonds was 1.20%-4.151% (December 31, 2021: 1.20%-3.915%).
33. Held-for-trading financial liabilities
□Applicable √Not applicable
34. Derivative financial liabilities
□Applicable √Not applicable
35. Notes payable
□Applicable √Not applicable
36. Accounts payable
(1). Presentation of accounts payable
√Applicable □Not applicable
Unit: RMB
| Item | Closing balance | Opening balance |
| Accounts payable for market and auxiliary works projects | 145,560,620.49 | 301,995,294.63 |
| Trade payables | 67,636,814.13 | 72,330,560.78 |
| Accounts payable for real estate projects | 29,122,613.44 | 33,317,557.65 |
| Accounts payable for procurement for the hotel project | 23,879,296.10 | 58,722,226.25 |
| Others | 27,345,393.47 | 26,994,789.71 |
| Total | 293,544,737.63 | 493,360,429.02 |
(2). Important accounts payable with age over 1 year
√Applicable □Not applicable
Unit: RMB
| Item | Closing balance | Reasons for not being paid or carried forward |
| Accounts payable for real estate projects | 8,192,556.44 | Settlement has not been completed or the projects are within the warranty periods |
| Total | 8,192,556.44 | / |
Other notes:
√Applicable □Not applicable
The accounts payable are free of interest and are generally paid within two monthsafter receipt of the payment notice or based on the project contracts and progress ofprojects. The balance payments for the projects are made after completion ofsettlement.
37. Advances from customers
(1). Presentation of advances from customers
√Applicable □Not applicable
Unit: RMB
| Item | Closing balance | Opening balance |
| Rental advances | 112,065,459.59 | 142,605,296.83 |
| Others | 1,285,875.01 | 10,961,014.30 |
| Total | 113,351,334.60 | 153,566,311.13 |
(2). Important advances with the age over 1 year
□Applicable √Not applicable
Other notes:
√Applicable □Not applicable
As the advances from customers are mainly derived from the advance rents of auxiliary housingbusinesses and investment real estate, with small individual amount. As of June 30, 2022, therewere no individual large-sum advances from customers with an age of more than 1 year.
38. Contract liabilities
(1). Overview of contract liabilities
√Applicable □Not applicable
Unit: RMB
| Item | Closing balance | Opening balance |
| Advances from customers for use fee of shops | 1,910,279,223.75 | 2,996,965,006.91 |
| Advances from customers for goods | 616,544,490.17 | 762,448,893.76 |
| Advances from customers for advertising fee | 47,615,087.77 | 66,129,057.15 |
| Advances from customers for housing purchase | 35,288,216.69 | 178,756,399.38 |
| Advances from customers for use fee of networking cables | 12,201,321.47 | 14,150,457.59 |
| Advances from customers for loyalty ofbrands | 9,544,302.02 | 17,997,985.07 |
| Others | 19,107,986.34 | 21,971,424.98 |
| Total | 2,650,580,628.21 | 4,058,419,224.84 |
(2). Amount of and reasons for material changes to book value during the reporting period
□Applicable √Not applicable
Other notes:
□Applicable √Not applicable
39. Payroll payable
(1). Presentation of payroll payable
√Applicable □Not applicable
Unit: RMB
| Item | Opening balance | Increase in the current period | Decrease in the current period | Closing balance |
| I. Short-term compensation | 241,452,764.09 | 196,297,946.47 | 275,786,328.50 | 161,964,382.06 |
| II. Post employment benefits – defined contribution plan | 2,511,991.29 | 13,868,164.08 | 13,817,087.12 | 2,563,068.25 |
| III. Severance benefits | - | 480,262.75 | 480,262.75 | - |
| Total | 243,964,755.38 | 210,646,373.30 | 290,083,678.37 | 164,527,450.31 |
(2). Presentation of short-term compensation
√Applicable □Not applicable
Unit: RMB
| Item | Opening balance | Increase in the current period | Decrease in the current period | Closing balance |
| 1. Salary, bonus, allowance and subsidy | 240,122,029.99 | 155,887,390.99 | 235,995,029.80 | 160,014,391.18 |
| 2. Employee benefits | - | 15,580,447.03 | 15,580,447.03 | - |
| 3. Social security contribution | 1,238,946.85 | 8,238,165.65 | 8,217,640.85 | 1,259,471.65 |
| In which: contribution to medical insurance scheme | 1,101,887.73 | 7,988,874.04 | 7,968,306.72 | 1,122,455.05 |
| Contribution to work-related injury insurance scheme | 28,926.87 | 219,689.68 | 219,732.20 | 28,884.35 |
| Contribution to maternity insurance scheme | 108,132.25 | 29,601.93 | 29,601.93 | 108,132.25 |
| 4. Housing provident fund | 79,760.00 | 11,878,190.00 | 11,882,680.00 | 75,270.00 |
| 5. Contribution to trade union fund and employee education fund | 12,027.25 | 4,713,752.80 | 4,110,530.82 | 615,249.23 |
| Total | 241,452,764.09 | 196,297,946.47 | 275,786,328.50 | 161,964,382.06 |
(3). Presentation of defined contribution plan
√Applicable □Not applicable
Unit: RMB
| Item | Opening | Increase in the | Decrease in the | Closing |
| balance | current period | current period | balance | |
| 1. Contribution to the basic endowment insurance scheme | 2,342,403.40 | 13,390,310.31 | 13,342,873.39 | 2,389,840.32 |
| 2. Contribution to the unemployment insurance scheme | 169,587.89 | 477,853.77 | 474,213.73 | 173,227.93 |
| Total | 2,511,991.29 | 13,868,164.08 | 13,817,087.12 | 2,563,068.25 |
Other notes:
□Applicable √Not applicable
40. Tax payable
√Applicable □Not applicable
Unit: RMB
| Item | Closing balance | Opening balance |
| VAT | 1,193,620.15 | 83,766,540.18 |
| Business tax | -240,013.55 | -240,013.55 |
| Corporate income tax | 39,307,142.15 | 279,485,623.04 |
| Individual income tax | 1,205,750.34 | 1,260,803.19 |
| Urban maintenance and construction tax | 180,463.36 | 4,687,093.90 |
| Land appreciation tax | 365,427.14 | 2,780,327.20 |
| Real estate tax | 123,041,645.28 | 171,138,711.99 |
| Land use tax | 3,722,494.45 | 10,612,069.24 |
| Others | 2,094,497.36 | 6,005,392.15 |
| Total | 170,871,026.68 | 559,496,547.34 |
Other notes:
On 30 June 2022, the details of the main taxes prepaid by the Group are as follows: Unit: YuanCurrency: RMB
| Item | Qiantang Impression Real Estate Project | Occident Center Real Estate Project | Total amount of prepaid tax |
| 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 | 240,013.55 | 1,254,502.83 | 1,494,516.38 |
41. Other payables
Presentation of items
√Applicable □Not applicable
Unit: RMB
| Item | Closing balance | Opening balance |
| Other payables | 1,326,087,294.15 | 1,908,742,835.15 |
| Total | 1,326,087,294.15 | 1,908,742,835.15 |
Other notes:
NilInterest payable
□Applicable √Not applicable
Dividend payable
□Applicable √Not applicable
Other payables
(1). Presentation of other payables by nature
√Applicable □Not applicable
Unit: RMB
| Item | Closing balance | Opening balance |
| Withholdings, deposit and margin | 494,889,933.85 | 598,819,336.72 |
| Operating expenses payable | 323,542,897.12 | 268,576,640.89 |
| Pending investment refunds | 341,626,983.00 | 877,464,692.76 |
| Restricted equity incentive plan | 137,440,900.00 | 137,440,900.00 |
| Yiwugou’s bank reserve fund | 27,383,673.11 | 25,823,767.03 |
| Others | 1,202,907.07 | 617,497.75 |
| Total | 1,326,087,294.15 | 1,908,742,835.15 |
(2). Important other payables with account age over 1 year
□Applicable √Not applicable
Other notes:
√Applicable □Not applicable
Since other payables mainly come from the deposit deposits of market shops and the biddingdeposits of engineering projects, with small individual amounts, on June 30, 2022, there were noimportant other payables with an aging of more than 1 year.
42. Held-for-sale liabilities
□Applicable √Not applicable
43. Non-current liabilities due within one year
√Applicable □Not applicable
Unit: RMB
| Item | Closing balance | Opening balance |
| Long-term borrowings within 1 year | 400,542,263.88 | 100,918,614.59 |
| Bonds payable due within 1 year | 2,786,881,248.24 | 3,552,960,829.66 |
| Lease liabilities due within 1 year | 17,443,848.41 | 10,362,478.83 |
| Total | 3,204,867,360.53 | 3,664,241,923.08 |
Other notes:
Nil
44. Other current liabilities
√Applicable □Not applicable
Unit: RMB
| Item | Closing balance | Opening balance |
| Short-term financing notes payable | 4,054,395,271.83 | 3,009,756,921.11 |
| To-be-reported output tax | 8,062,393.84 | 67,323,844.72 |
| Dividend announced but not collected before listing | 2,083,112.65 | 2,083,112.65 |
| Dividend payable to to-be-recognized accounts | 2,449,697.11 | 2,220,922.02 |
| Total | 4,066,990,475.43 | 3,081,384,800.50 |
Changes in short-term bonds payable:
√Applicable □Not applicable
Unit: RMB
| Bond Name | Face value | Issuing Date | Bond Term | Issuing Amount | Opening Balance | Current period Issuing | Interest accrued based on face value | Premium/discount amortization | Current period Repayment | Closing Balance |
| Super-short-term commercial paper | 100 | Jun 29, 2022 | 30 days | 1,000,000,000.00 | - | 1,000,000,000.00 | 120,547.95 | 6,570.34 | - | 1,000,043,784.96 |
| Super-short-term commercial paper | 100 | Nov 30, 2021 | 269 days | 1,000,000,000.00 | 1,001,845,680.63 | - | 17,927,671.23 | 591,909.75 | - | 1,017,786,509.71 |
| Super-short-term commercial paper | 100 | Nov 15, 2021 | 279 days | 1,000,000,000.00 | 1,003,076,172.00 | - | 16,573,150.68 | 633,333.33 | - | 1,016,456,484.01 |
| Super-short-term commercial paper | 100 | Oct 27, 2021 | 268 days | 1,000,000,000.00 | 1,004,835,068.48 | - | 20,166,027.40 | 676,712.33 | - | 1,020,108,493.15 |
| Total | / | / | / | 4,000,000,000.00 | 3,009,756,921.11 | 1,000,000,000.00 | 54,787,397.26 | 1,908,525.75 | - | 4,054,395,271.83 |
Other notes:
√Applicable □Not applicable
As of June 30, 2022, the annual interest rate of the above-mentioned short-term financing bonds was 2.20%-2.98% (December 31, 2021: 2.48%-2.98%).
45. Long-term borrowings
(1). Classification of long-term borrowings
√Applicable □Not applicable
Unit: RMB
| Item | Closing balance | Opening balance |
| Credit loans | 204,500,000.00 | 771,250,000.00 |
| Total | 204,500,000.00 | 771,250,000.00 |
Notes on the classification of long-term borrowings:
Nil
Other notes, including the interest rate range:
√Applicable □Not applicable
On June 30, 2022, the annual interest rate of the above borrowing was 2.70%(December 31,2021: 2.70%-3.92%).
46. Bonds payable
(1). Bonds payable
√Applicable □Not applicable
Unit: RMB
| Item | Closing balance | Opening balance |
| MTN | 1,514,288,084.70 | - |
| Total | 1,514,288,084.70 | - |
(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 | Due within one year at the beginning of the period | Current period Issuing | Interest accrued based on face value | Premium/discount amortization | Current period Repayment | Transferred in this year and due within one year | Closing amount Balance |
| MTN | 100 | Mar 29, 2022 | 3Y | 500,000,000.00 | - | - | 500,000,000.00 | 4,548,082.19 | 49,161.35 | - | - | 503,997,243.54 |
| MTN | 100 | Feb 24, 2022 | 3Y | 1,000,000,000.00 | - | - | 1,000,000,000.00 | 11,357,260.27 | 133,580.89 | - | - | 1,010,290,841.16 |
| MTN | 100 | Oct 21, 2019 | 3Y | 1,000,000,000.00 | - | 1,007,406,483.12 | - | 19,686,849.32 | 194,533.53 | - | 1,027,287,865.97 | - |
| MTN | 100 | Jul 15, 2019 | 3Y | 1,000,000,000.00 | - | 1,018,263,552.02 | - | 19,786,027.39 | 194,569.98 | - | 1,038,244,149.39 | - |
| Corporate bonds | 100 | Sep 25, 2019 | 3Y | 700,000,000.00 | - | 707,499,013.70 | - | 13,850,219.18 | - | - | 721,349,232.88 | - |
| Corporate bonds | 100 | Jun 5, 2019 | 3Y | 800,000,000.00 | - | 819,791,780.82 | - | 14,608,219.18 | - | 834,400,000.00 | - | - |
| Total | / | / | / | 5,000,000,000.00 | - | 3,552,960,829.66 | 1,500,000,000.00 | 83,836,657.53 | 571,845.75 | 834,400,000.00 | 2,786,881,248.24 | 1,514,288,084.70 |
(3). Conditions and time for the conversion of convertible corporate bonds
□Applicable √Not applicable
(4). Notes on other financial instruments classified as financial liabilitiesBasic information of other financial instruments such as preferred shares and perpetual bonds outstanding at the end of the reporting period
□Applicable √Not applicable
Changes in other financial instruments such as preferred shares and perpetual bonds outstanding at the end of the reporting period
□Applicable √Not applicable
Basis for other financial instruments being classified as financial liabilities
□Applicable √Not applicable
Other notes:
□Applicable √Not applicable
47. Lease liabilities
√Applicable □Not applicable
Unit: RMB
| Item | Closing balance | Opening balance |
| Undiscounted amount of finance lease payables | 333,582,940.05 | 334,659,632.28 |
| Unrecognized financing charges | -112,536,565.67 | -118,354,479.52 |
| Lease liabilities due within 1 year | -17,443,848.41 | -10,362,478.83 |
| Total | 203,602,525.97 | 205,942,673.93 |
Other notes:
Note: The Group uses the incremental borrowing rate of 2.78%-8.01% as the discount rate tocalculate book value to determine the lease liability and measure right-of-use assets.
48. Long-term accounts payable
Presentation of items
□Applicable √Not applicable
Long-term accounts payable
□Applicable √Not applicable
Special accounts payable
□Applicable √Not applicable
49. Long-term payroll payable
□Applicable √Not applicable
50. Estimated liabilities
√Applicable □Not applicable
Unit: RMB
| Item | Opening balance | Closing balance | Cause of formation |
| Pending L/C losses | 110,620,306.10 | 110,620,306.10 | |
| Total | 110,620,306.10 | 110,620,306.10 | / |
Other notes, including the notes on related important assumptions and estimates of importantestimated liabilities:
In 2017, the letters of credit issued by the Group’s subsidiary based on international tradeagency business became overdue successively due to the principals’ failure to make payments asagreed. Based on the principle of prudence, the Group recognized estimated liabilities for theestimated potential losses. On Apr 30, 2018, the Group lost control over the subsidiary due to itsdisposal of some equity in the subsidiary. As of June 30, 2022, the matter was under processing.
51. Deferred income
Overview of deferred income
√Applicable □Not applicable
Unit: RMB-yuan
| Item | Opening balance | Increase in the current period | Decrease in the current period | Closing balance | Cause of formation |
| Asset-related government grants | 78,170,103.62 | 26,833,500.00 | 710,736.84 | 104,292,866.78 | |
| Income-related government grants | - | 2,000,000.00 | 2,000,000.00 | - | |
| Total | 78,170,103.62 | 28,833,500.00 | 2,710,736.84 | 104,292,866.78 | / |
Items involving government grants:
√Applicable □Not applicable
Unit: RMB
| Liability item | Opening balance | Increase in grant amount in the current period | Amount recognized in other income in the current period | Closing balance | Asset-related or income-related |
| Subsidy for service industry cluster project | 5,243,445.95 | - | 133,333.32 | 5,110,112.63 | Asset-related |
| Interest subsidy for the international exhibition center construction fund | 19,880,357.67 | - | 577,403.52 | 19,302,954.15 | Asset-related |
| Subsidy for Yiwu Comprehensive Bonded Zone Project | 53,046,300.00 | 26,833,500.00 | - | 79,879,800.00 | Asset-related |
| Subsidy for construction and operation of credit data center in Yiwu Credit Center | - | 2,000,000.00 | 2,000,000.00 | - | Income-related |
Other notes:
□Applicable √Not applicable
52. Other non-current liabilities
□Applicable √Not applicable
53. Capital stock
√Applicable □Not applicable
Unit: RMB
| Opening balance | Increase or decrease in the current period (+, -) | Closing balance | |||||
| Issuing New shares | Bonus shares | Provident funds Conversion into shares | Others | Sub-total | |||
| Total number of shares | 5,491,274,176.00 | - | - | - | - | - | 5,491,274,176.00 |
Other notes:
Nil
54. Other equity instruments
(1) Basic information of other financial instruments such as preferred shares and perpetual
bonds outstanding at the end of the reporting period
□Applicable √Not applicable
(2) Changes in other financial instruments such as preferred shares and perpetual bondsoutstanding at the end of the reporting period
□Applicable √Not applicable
Changes in other equity instruments in the current period, the reasons therefor and the basis forrelevant accounting treatment:
□Applicable √Not applicable
Other notes:
□Applicable √Not applicable
55. Capital reserve
√Applicable □Not applicable
Unit: RMB
| Item | Opening balance | Increase in the current period | Decrease in the current period | Closing balance |
| Capital surplus (share premium) | 1,559,964,197.11 | - | - | 1,559,964,197.11 |
| Equity incentive | 33,414,344.66 | 16,414,582.49 | - | 49,828,927.15 |
| Other capital reserve | 38,130,573.19 | - | - | 38,130,573.19 |
| Total | 1,631,509,114.96 | 16,414,582.49 | - | 1,647,923,697.45 |
Other notes including those on the changes in the current period and the reasons therefor:
The increase in capital reserve - stock ownership incentives during the reporting period was dueto the Company's recognition on the share payment fee of RMB 16,414,582.49 during the waitingperiod, which was included in this item accordingly.
56. Treasury shares
√Applicable □Not applicable
Unit: RMB
| Item | Opening balance | Increase in the current period | Decrease in the current period | Closing balance |
| Restricted equity incentive plan | 137,494,800.00 | - | - | 137,494,800.00 |
| Total | 137,494,800.00 | - | - | 137,494,800.00 |
Other notes including those on the changes in the current period and the reasons therefor:
Nil
57. Other comprehensive income
√Applicable □Not applicable
Unit: RMB
| Item | Opening Balance | Amount in the current period | Closing Balance | ||
| Amount before tax incurred in the current period | Less: income tax | Amount after tax attributable to parent company | |||
| I. Other comprehensive income that cannot be reclassified into profit or loss | 66,421,903.33 | -104,104,690.25 | -26,026,172.56 | -78,078,517.69 | -11,656,614.36 |
| Change in fair value of other equity instruments investment | 66,421,903.33 | -104,104,690.25 | -26,026,172.56 | -78,078,517.69 | -11,656,614.36 |
| II. Other comprehensive income to be reclassified into profit or loss | -5,571,168.31 | 10,560,082.25 | - | 10,560,082.25 | 4,988,913.94 |
| Other comprehensive income that can be transferred into profit and loss under equity method | - | -78,548.99 | - | -78,548.99 | -78,548.99 |
| Difference arising from the translation of foreign currency | -5,571,168.31 | 10,638,631.24 | - | 10,638,631.24 | 5,067,462.93 |
| financial statements | |||||
| Total other comprehensive income | 60,850,735.02 | -93,544,608.00 | -26,026,172.56 | -67,518,435.44 | -6,667,700.42 |
Other notes, including those on the adjustment of the initially recognized amount of hedged itemsconverted from the effective part of gains or losses from cash flow hedging:
Nil
58. Special reserve
□Applicable √Not applicable
59. Surplus reserve
√Applicable □Not applicable
Unit: RMB
| Item | Opening balance | Increase in the current period | Decrease in the current period | Closing balance |
| Statutory surplus reserve | 1,453,325,098.91 | - | - | 1,453,325,098.91 |
| Discretionary surplus reserve | 40,195,855.68 | - | - | 40,195,855.68 |
| Others | 11,688,840.91 | - | - | 11,688,840.91 |
| Total | 1,505,209,795.50 | - | - | 1,505,209,795.50 |
Notes on surplus reserves, including those on the changes in the current period and the reasonstherefor:
Nil
60. Undistributed profits
√Applicable □Not applicable
Unit: RMB
| Item | Current period | Previous year |
| Undistributed profits at the end of the previous reporting period before adjustment | 6,059,496,846.85 | 5,168,298,206.50 |
| Undistributed profits after adjustment at the beginning of the later period after adjustment | 6,059,496,846.85 | 5,168,298,206.50 |
| Plus: net profits attributable to shareholders of the parent company in the current period | 1,222,205,978.81 | 1,334,095,906.95 |
| Less: withdrawal of statutory surplus reserve | - | 140,951,986.92 |
| Common share dividend payable | 400,863,014.85 | 301,945,279.68 |
| Closing undistributed profits | 6,880,839,810.81 | 6,059,496,846.85 |
Details of the adjustment of opening undistributed profits:
1. The opening undistributed profits affected by the retroactive adjustment made in accordance withthe Accounting Standards for Enterprises and related new provisions amounted to RMB0.
2.The opening undistributed profits affected by the changes in accounting policies amounted toRMB0.
3. The opening undistributed profits affected by the correction of major accounting errors amountedto RMB0.
4. The opening undistributed profits affected by changes in the scope of mergers caused by commoncontrol amounted to RMB0.
5. The opening undistributed profits affected by other adjustments together amounted to RMB0.
61. Operating revenue and operating cost
(1). Overview of operating revenue and operating cost
√Applicable □Not applicable
Unit: RMB
| Item | Amount in the current period | Amount in the previous period | ||
| Revenue | Cost of sales | Revenue | Cost of sales | |
| Main business | 4,047,360,914.45 | 3,106,283,447.96 | 1,877,033,846.97 | 863,801,815.15 |
| Other businesses | 159,666,702.01 | 53,014,698.81 | 195,593,880.03 | 61,608,810.26 |
| Total | 4,207,027,616.46 | 3,159,298,146.77 | 2,072,627,727.00 | 925,410,625.41 |
(2). Revenue generated from contracts
√Applicable □Not applicable
Unit: RMB
| Classified by type of contract | Total |
| Types of goods | |
| Sales of goods | 2,389,696,619.19 |
| The use of shops in the China Commodities Cities and its supporting services | 1,415,709,313.01 |
| Hotel accommodation and catering services | 81,585,551.03 |
| Revenue from use fees | 32,264,049.60 |
| Other services | 176,186,354.97 |
| Classified by business area | |
| Chinese mainland | 4,095,441,887.80 |
| Classified by contract period | |
| Revenue confirmed at a certain time point | |
| Sales of goods | 2,389,696,619.19 |
| Hotel catering services | 47,609,814.93 |
| Other services | 170,692,124.72 |
| Revenue confirmed during a certain period of time | |
| The use of shops in the China Commodities Cities and its supporting services | 1,415,709,313.01 |
| Hotel accommodation service | 33,975,736.10 |
| Revenue from use fees | 32,264,049.60 |
| Other services | 5,494,230.25 |
| Total | 4,095,441,887.80 |
Description of the income from contracts:
The income recognized in the current year and included in the opening book value ofcontractual liabilities is as follows:
| Type of contract | Current Period (RMB) |
| Sales of goods | 671,507,781.88 |
| The use of shops in the China Commodities Cities and its supporting services | 1,235,162,642.28 |
| Hotel accommodation service | 7,036,462.25 |
| Other services | 7,523,515.25 |
| Total | 1,921,230,401.66 |
(3). Contract performance obligations
√Applicable □Not applicable
Sales of goods
The performance obligation is fulfilled when the goods are delivered to the customer, and thecontract price is collected in advance before the goods are delivered to the customer or receivedupon the delivery of the goods.
The use of shops in the China Commodities Cities and its supporting services
The contractual performance obligation is fulfilled when providing the use of shops in the ChinaCommodities Cities and the supporting business services. For the use of shops in the ChinaCommodities Cities and the business services , the progress of contract performance is determinedbased on the number of using days of the shops. Customers usually need to pay in advance beforethe use of shops in the China Commodities Cities and busines services are provided.
Hotel accommodation business
The performance obligation is fulfilled when providing hotel accommodation services. For thehotel accommodation business, the progress of contractual performance is determined based on the
number of days of stay. For hotel accommodation services, a partial deposit is collected from thecustomer first, and the 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 are provided. Thecontract price for hotel catering services is usually charged when the hotel catering services areperformed.Fixed-time paid funding servicesThe performance obligation is fulfilled when the fixed-time paid funding service is provided. Forthe fixed-time paid funding service, the progress of contractual performance is determined based onthe number of using days of the fund. For the fixed-time paid funding service, the contract price isusually charged regularly as agreed in the contract.
(4). Amortization to remaining contract performance obligations
√Applicable □Not applicable
At the end of the reporting period, the amount of revenue corresponding to the performanceobligations that have been signed but have not been performed or have not been fulfilled was RMB2,650,580,628.21, of which: RMB 2,650,580,628.21 is expected to be recognized as revenue within5 yearsOther notes:
Nil
62. Taxes and surcharges
√Applicable □Not applicable
Unit: RMB
| Item | Amount in the current period | Amount in the previous period |
| Consumption tax | 121.51 | - |
| Business tax | 9,307.56 | 200,048.93 |
| Urban maintenance and construction tax | 847,074.98 | 3,687,622.46 |
| Education surcharge | 376,577.58 | 1,581,474.20 |
| Real estate tax | 57,303,381.47 | 55,296,306.71 |
| Land use tax | 939,264.19 | 5,387,595.00 |
| Vehicle and vessel use tax | 2,040.00 | - |
| Stamp duty | 2,342,930.19 | 1,421,427.19 |
| Land appreciation tax | 1,040,058.76 | 9,038.82 |
| Local education surcharge | 251,051.78 | 1,054,316.04 |
| Cultural undertaking development fee | 200,629.33 | -240.00 |
| Total | 63,312,437.35 | 68,637,589.35 |
Other notes:
Nil
63. Sales expenses
√Applicable □Not applicable
Unit: RMB
| Item | Amount in the current period | Amount in the previous period |
| Marketing expenses | 58,838,620.46 | 39,083,745.14 |
| Advertising expenses | 15,210,375.07 | 19,829,104.82 |
| Security and insurance expenses | 13,603,561.83 | 11,869,661.68 |
| Water, electricity and fuel expenses | 4,108,797.27 | 1,946,862.81 |
| Depreciation and amortization | 59,697.22 | 356,584.59 |
| Others | 1,461,011.88 | 956,971.99 |
| Total | 93,282,063.73 | 74,042,931.03 |
Other notes:
Nil
64. Administrative expenses
√Applicable □Not applicable Unit: RMB
| Item | Amount in the current period | Amount in the previous period |
| Employee and uniform expenses | 162,048,252.07 | 130,142,013.05 |
| Depreciation and amortization | 41,529,941.99 | 20,578,214.86 |
| Office expenses | 12,478,203.63 | 6,488,902.87 |
| Intermediary expenses | 7,648,247.31 | 4,610,462.83 |
| Travel expenses | 727,343.72 | 2,715,004.31 |
| Lease and property management expenses | 588,747.87 | 1,651,675.14 |
| Promotion and market traders introduction expenses | 95,739.93 | 159,870.08 |
| Others | 1,454,891.75 | 352,743.44 |
| Total | 226,571,368.27 | 166,698,886.58 |
Other notes:
Nil
65. R&D expenses
√Applicable □Not applicable
Unit: RMB
| Item | Amount in the current period | Amount in the previous period |
| Employee expenses | 3,136,584.80 | 2,702,889.51 |
| Technology R&D expenses | 901,982.58 | 516,473.30 |
| Depreciation and amortization | 62,233.31 | 62,670.46 |
| Others | 1,607,246.89 | 1,287,105.17 |
| Total | 5,708,047.58 | 4,569,138.44 |
Other notes:
Nil
66. Financial expenses
√Applicable □Not applicable
Unit: RMB
| Item | Amount in the current period | Amount in the previous period |
| Interest expenses | 154,500,444.77 | 173,963,591.17 |
| Amortization of commercial paper discount | 1,969,098.85 | 2,406,651.36 |
| Interest income | -89,271,567.84 | -117,153,799.20 |
| Capitalized interest | - | -17,496,623.81 |
| Foreign exchange gains or losses | -11,023,802.13 | 1,986,636.12 |
| Amortization of unrecognized financing expenses | 6,001,626.16 | 3,190,766.38 |
| Others | 716,135.64 | 453,784.05 |
| Total | 62,891,935.45 | 47,351,006.07 |
Other notes:
Nil
67. Other income
√Applicable □Not applicable
Unit: RMB
| Item | Amount in the current period | Amount in the previous period |
| Employment stabilization subsidy | 2,233,836.28 | 23,190.40 |
| Additional deduction of input tax | 2,103,468.66 | 2,845,835.35 |
| Grant for the construction and operation of the credit data center | 2,000,000.00 | - |
| Yiwu Municipal Bureau of Development and Reform 2021 Special Fund for Innovation and Development Zone | 1,800,000.00 | - |
| Yiwu Municipal Bureau of Commerce 2021 Export Credit Insurance Subsidy | 1,527,680.00 | - |
| Yiwu Municipal Bureau of Commerce Business Promotion Fund Subsidy | 1,000,000.00 | - |
| Market Development Committee 2021 Local Financial Policy Incentives for Encouraging E-commerce | 940,693.24 | - |
| Interest subsidy for the international exhibition center construction fund | 577,403.52 | 577,403.52 |
| Additional deduction of R&D input award from Yiwu Municipal Science and Technology Bureau | 500,800.00 | 131,520.00 |
| Pilot Subsidy for Strong Counties in Service Industry | 500,000.00 | 500,000.00 |
| Science and Technology Bureau Innovation Entity Creation Award | 500,000.00 | - |
| Yiwu Municipal Bureau of Commerce Promotion and Opening Rewards | 480,400.00 | 960,743.00 |
| Subsidies for Helping Tourism Enterprises Fight Against the Pandemic and Promoting Development | 390,000.00 | - |
| Yiwu Municipal Bureau of Commerce 3-levies-3-refunds Rewards | 304,461.00 | - |
| Refund of the service charges of individual income tax | 269,632.38 | 368,142.02 |
| VAT reduction for the recruitment of retired soldiers finding jobs on their own | 223,500.00 | 86,065.86 |
| 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 |
| Others | 1,363,373.61 | 534,261.97 |
| Total | 16,715,248.69 | 9,046,028.12 |
Other notes:
Nil
68. Investment income
√Applicable □Not applicable
Unit: RMB
| Item | Amount in the current period | Amount in the previous period |
| Income from long-term equity investment calculated with the equity method | 748,873,944.26 | 263,788,954.78 |
| Investment income from disposal of held-for-trading financial assets | 1,822,875.64 | 42,837.72 |
| Investment income from disposal of wealth management products | 26,619.73 | - |
| Total | 750,723,439.63 | 263,831,792.50 |
Other notes:
Nil
69. Income from net exposure hedging
□Applicable √Not applicable
70. Income from changes in fair value
√Applicable □Not applicable
Unit: RMB
| Sources of income from changes in fair value | Amount in the current period | Amount in the previous period |
| Held-for-trading financial assets | -1,667,262.00 | -2,640,099.60 |
| Other non-current financial assets | -546,331.53 | 3,768,691.70 |
| Total | -2,213,593.53 | 1,128,592.10 |
Other notes:
Nil
71. Loss of impairment of credit
√Applicable □Not applicable
Unit: RMB
| Item | Amount in the current period | Amount in the previous period |
| Bad debt loss of accounts receivable | -219,174.64 | -13,408.94 |
| Loss for bad debts of other receivables | 247,110.08 | -415,865.94 |
| Total | 27,935.44 | -429,274.88 |
Other notes:
Nil
72. Loss of impairment of assets
□Applicable √Not applicable
73. Income from disposal of assets
√Applicable □Not applicable
Unit: RMB
| Item | Amount in the current period | Amount in the previous period |
| Income from disposal of property, plant and equipment | 1,389.88 | 101,911.42 |
| Total | 1,389.88 | 101,911.42 |
Other notes:
□Applicable √Not applicable
74. Revenue from non-operating activities
√Applicable □Not applicable
Unit: RMB
| Item | Amount in the current period | Amount in the previous period | Amount recognized in profit or loss of nonrecurring items for the current period |
| Government grants | 200,000.00 | 1,200.00 | 200,000.00 |
| Incomes from liquidated damages | 1,329,393.77 | 1,258,664.54 | 1,329,393.77 |
| Others | 2,488,105.92 | 85,788.32 | 2,488,105.92 |
| Total | 4,017,499.69 | 1,345,652.86 | 4,017,499.69 |
Government grants are recognized in the profit or loss for the current period
√Applicable □Not applicable
Unit: RMB
| Grant items | Amount in the current period | Previous amount | Asset-related or income-related |
| Financial subsidies for the | 200,000.00 | - | Income-related |
| development of the digital entertainment industry | |||
| Subsidy for enterprise monitoring from Choucheng Subdistrict | - | 1,200.00 | Income-related |
| Total | 200,000.00 | 1,200.00 | Income-related |
Other notes:
□Applicable √Not applicable
75. Expenses from non-operating activities
√Applicable □Not applicable
Unit: RMB
| Item | Amount in the current period | Amount in the previous period | Amount recognized in profit or loss of nonrecurring items for the current period |
| Total loss for disposal of non-current assets | 56,100.78 | 791,449.35 | 56,100.78 |
| Including: loss for disposal of property, plant and equipment | 56,100.78 | 791,449.35 | 56,100.78 |
| External donation | 44,250.00 | 200,000.00 | 44,250.00 |
| Others | 329,652.83 | 129,645.09 | 329,652.83 |
| Total | 430,003.61 | 1,121,094.44 | 430,003.61 |
Other notes:
Nil
76. Income tax expenses
(1) Overview of income tax expenses
√Applicable □Not applicable
Unit: RMB
| Item | Amount in the current period | Amount in the previous period |
| Current income tax expenses | 128,391,456.05 | 198,094,571.17 |
| Deferred income tax expenses | 13,888,013.12 | 14,482,195.47 |
| Total | 142,279,469.17 | 212,576,766.64 |
(2) Adjustment process of accounting profits and income tax expenses
√Applicable □Not applicable
Unit: RMB
| Item | Amount in the current period |
| Profits before tax | 1,364,805,533.50 |
| Income tax expenses are calculated at the statutory/applicable tax rate | 341,201,383.38 |
| Impact of different tax rates applied by subsidiaries | -717,212.41 |
| Effect of adjusting income tax of the previous period | -26,881,684.93 |
| Effect of non-taxable income | -810,986.38 |
| Effect of non-deductible costs, expenses and losses | 297,172.78 |
| Effect of using deductible losses of unrecognized deferred income tax assets in the previous period | -4,666,174.80 |
| Effect of deductible temporary differences or deductible losses of unrecognized deferred income tax assets in the current period | 21,075,457.60 |
| Profits or losses attributable to joint ventures and associates | -187,218,486.07 |
| Income tax expenses | 142,279,469.17 |
Other notes:
□Applicable √Not applicable
77. Other comprehensive income
√Applicable □Not applicable
For details, please refer to Note 57. Other comprehensive income
78. Items of cash flow statement
(1). Other cash receipts relating to operating activities
√Applicable □Not applicable
Unit: RMB
| Item | Amount in the current period | Amount in the previous period |
| Bank deposit interest income received | 89,271,567.84 | 117,153,799.20 |
| Deposit and margin received | 84,113,126.29 | 60,501,618.69 |
| Government grants received | 45,748,748.69 | 4,925,477.20 |
| Bank reserve received | 1,532,062.05 | 876,213.71 |
| Others | 2,226,957.24 | 2,324,227.91 |
| Total | 222,892,462.11 | 185,781,336.71 |
Notes on other cash receipts relating to operating activities:
Nil
(2). Other cash payments relating to operating activities
√Applicable □Not applicable
Unit: RMB
| Item | Amount in the current period | Amount in the previous period |
| Margins paid | 184,207,298.86 | 55,168,466.81 |
| Fees paid | 159,441,304.15 | 117,283,494.99 |
| Others | 3,690,541.84 | 2,539,651.72 |
| Total | 347,339,144.85 | 174,991,613.52 |
Notes on other cash payments relating to operating activities:
Nil
(3). Other cash receipts relating to investing activities
√Applicable □Not applicable
Unit: RMB
| Item | Amount in the current period | Amount in the previous period |
| Financial assistance recovered from joint ventures | 901,774,483.00 | 1,326,599,831.00 |
| Total | 901,774,483.00 | 1,326,599,831.00 |
Notes on other cash receipts relating to investing activities:
Nil
(4). Other cash payments relating to investing activities
√Applicable □Not applicable
Unit: RMB
| Item | Amount in the current period | Amount in the previous period |
| Financial assistance paid for joint ventures | 68,507,285.00 | 1,550,981,005.00 |
| Total | 68,507,285.00 | 1,550,981,005.00 |
Other cash paid related to investment activities:
Nil
(5). Other cash receipts relating to financing activities
□Applicable √Not applicable
(6). Other cash payments relating to financing activities
√Applicable □Not applicable
Unit: RMB
| Item | Amount in the current period | Amount in the previous period |
| Minimum lease payment | 11,970,676.79 | - |
| Total | 11,970,676.79 | - |
Other cash paid related to financing activities:
Nil
79. Supplements to cash flow statement
(1) Supplements to cash flow statement
√Applicable □Not applicable
Unit: RMB
| Supplements | Amount in the current period | Amount in the previous period |
| 1．Adjust net profits to cash flow from operating activities: | ||
| Net profits | 1,222,526,064.33 | 847,244,391.16 |
| Loss of impairment of credit | -27,935.44 | 429,274.88 |
| Depreciation of fixed assets, depletion of oil and gas assets and depreciation of Productive biological assets | 170,090,217.42 | 196,630,117.97 |
| Amortization of right-of-use assets | 14,089,021.32 | 6,032,905.14 |
| Amortization of intangible assets | 75,870,218.25 | 69,599,955.30 |
| Depreciation and amortization of investment real estate | 64,839,383.45 | 46,300,976.88 |
| Amortization of long-term prepaid expenses | 22,066,225.88 | 26,371,441.78 |
| Loss from disposal of fixed assets, intangible assets and other long-term assets (gains indicated by “-”) | -1,389.88 | -101,911.42 |
| Loss from fixed assets retirement (gains indicated by “-”) | 56,100.78 | 791,449.35 |
| Loss from changes in fair value (gains indicated by “-”) | 2,213,593.53 | -1,128,592.10 |
| Financial expenses (gains indicated by “-”) | 154,500,444.77 | 177,154,357.55 |
| Investment loss (gains indicated by “-”) | -776,830,272.96 | -263,831,792.5 |
| Decrease in deferred income tax assets (increase indicated by “－”) | 10,068,696.50 | 13,751,307.49 |
| Increase in deferred income tax liabilities (decrease indicated by “－”) | -22,230,480.08 | -17,769,644.32 |
| Decrease in inventory (increase indicated by “－”) | -357,352,526.67 | -67,724,859.66 |
| Decrease in operating receivables (increase indicated by “－”) | 361,791,176.72 | -1,166,423,268.81 |
| Increase in operating payables (decrease indicated by “－”) | -1,608,255,871.54 | 299,409,716.06 |
| Net cash flow from operating activities | -666,587,333.62 | 166,735,824.75 |
| 2．Significant investing and financing activities not involving cash receipt and payment: | ||
| 3．Net changes in cash and cash equivalents: | ||
| Closing balance of cash | 3,474,333,987.64 | 1,959,635,386.45 |
| Less: opening balance of cash | 4,006,468,325.47 | 2,032,642,871.63 |
| Net increase in cash and cash equivalents | -532,134,337.83 | -73,007,485.18 |
(2) Net cash paid for acquisition of subsidiaries in the current period
□Applicable √Not applicable
(3) Net cash received from disposal of subsidiaries in the current period
□Applicable √Not applicable
(4) Composition of cash and cash equivalents
√Applicable □Not applicable
Unit: RMB
| Item | Closing balance | Opening balance |
| I. Cash | 3,474,333,987.64 | 4,006,468,325.47 |
| In which: cash on hand | 216,579.25 | 154,264.94 |
| Bank deposit that can be used for payment at any time | 3,473,985,667.17 | 4,006,258,722.95 |
| Other monetary capital that can be used for payment at any time | 131,741.22 | 55,337.58 |
| III. Closing balance of cash and cash equivalents | 3,474,333,987.64 | 4,006,468,325.47 |
| Including:cash and cash equivalents with restricted use by the parent company or its subsidiaries | 60.88 | 60.78 |
Other notes:
√Applicable □Not applicable
Monetary funds with a deposit period of more than three months: Currency: RMB
| Item | Closing balance | Opening balance |
| Negotiated deposits | 1,025,000,000.00 | 825,000,000.00 |
80. Notes to items in the statement of changes in owners’ equity
Names of “others” items whose closing balances in the previous year are adjusted and the amountsof adjustments:
□Applicable √Not applicable
81. Assets with restricted title or right of use
√Applicable □Not applicable
Unit: RMB
| Item | Closing book value | Reasons for restriction |
| Cash and cash equivalents | 60.88 | [Note 1] |
| Long-term equity investment | 102,918,559.00 | [Note 2] |
| Other non-current assets | 636,870,392.09 | [Note 2] |
| Total | 739,789,011.97 | / |
Other notes:
Note 1. As of June 30, 2022, bank deposits with a book value of RMB 60.88 (December 31,2021: RMB 60.78) were restricted for ownership or use rights due to being as security deposits forobtaining commercial housing mortgage loans.
Note 2: As of June 30, 2022, long-term equity investments with a book value of RMB102,918,559.00 (December 31, 2021: RMB 102,918,559.00) and other non-current assets of RMB636,870,392.09 (December 31, 2021: RMB 636,870,392.09) were frozen by Shanghai MunicipalPublic Security Bureau. See Note XIV.1 Important commitments for details.
82. Foreign currency monetary items
(1). Foreign currency monetary items
√Applicable □Not applicable
| Item | Closing balance in foreign currency | Exchange rate | Closing balance after conversation into RMB |
| Cash and cash equivalents | - | - | |
| In which: USD | 3,583,237.91 | 6.7114 | 24,048,542.92 |
| EURO | 47,668.28 | 7.0396 | 335,565.62 |
| Dirham | 98,384.15 | 1.8274 | 179,787.20 |
| Koruna | 6,205,219.26 | 0.2814 | 1,745,981.78 |
| Accounts receivable | - | - | |
| In which: USD | 2,745,305.09 | 6.7114 | 18,424,840.57 |
| EURO | 25,145.60 | 7.0396 | 177,014.97 |
| Koruna | 13,739,732.76 | 0.2814 | 3,865,991.21 |
| Other receivables | - | - | |
| In which: USD | 705,710.67 | 6.7114 | 4,736,306.59 |
| EURO | 5,100.00 | 7.0396 | 35,901.96 |
| Koruna | 13,552,906.86 | 0.2814 | 3,813,423.42 |
| Accounts payable | - | - | |
| USD | 1,339,696.91 | 6.7114 | 8,991,241.84 |
| EURO | 5,100.00 | 7.0396 | 35,901.96 |
| Koruna | 145,715.25 | 0.2814 | 41,000.35 |
| Other payables | - | - | |
| USD | 2,595,542.14 | 6.7114 | 17,419,721.52 |
| EURO | 5,125.38 | 7.0396 | 36,080.63 |
| Koruna | 8,692,963.99 | 0.2814 | 2,445,966.13 |
Other notes:
Nil
(2). Description of overseas operations, for important overseas operations, also includes
the disclosure of principal overseas place of business, bookkeeping currency and thebasis for selection, and the reason for the change in bookkeeping currency.
□Applicable √Not applicable
83. Hedging
□Applicable √Not applicable
84. Government grants
1. Overview of government grants
√Applicable □Not applicable
Unit: RMB
| Type | Amount | Presentation | Amount recognized in profit or loss for the current period |
| Financial subsidies for the development of the digital entertainment industry | 200,000.00 | Revenue from non-operating activities | 200,000.00 |
| Employment stabilization subsidy | 2,233,836.28 | Other income | 2,233,836.28 |
| Additional deduction of input tax | 2,103,468.66 | Other income | 2,103,468.66 |
| Grant for the construction and operation of the credit data center | 2,000,000.00 | Other income | 2,000,000.00 |
| Yiwu Municipal Bureau of Development and Reform 2021 Special Fund for Innovation and | 1,800,000.00 | Other income | 1,800,000.00 |
| Development Zone | |||
| Yiwu Municipal Bureau of Commerce 2021 Export Credit Insurance Subsidy | 1,527,680.00 | Other income | 1,527,680.00 |
| Yiwu Municipal Bureau of Commerce Business Promotion Fund Subsidy | 1,000,000.00 | Other income | 1,000,000.00 |
| Market Development Committee 2021 Local Financial Policy Incentives for Encouraging E-commerce | 940,693.24 | Other income | 940,693.24 |
| Interest subsidy for the international exhibition center construction fund | 577,403.52 | Other income | 577,403.52 |
| Additional deduction of R&D input award from Yiwu Municipal Science and Technology Bureau | 500,800.00 | Other income | 500,800.00 |
| Pilot Subsidy for Strong Counties in Service Industry | 500,000.00 | Other income | 500,000.00 |
| Science and Technology Bureau Innovation Entity Creation Award | 500,000.00 | Other income | 500,000.00 |
| Yiwu Municipal Bureau of Commerce Promotion and Opening Rewards | 480,400.00 | Other income | 480,400.00 |
| Subsidies for Helping Tourism Enterprises Fight Against the pandemic and Promoting Development | 390,000.00 | Other income | 390,000.00 |
| Yiwu Municipal Bureau of Commerce 3-levies-3-refunds Rewards | 304,461.00 | Other income | 304,461.00 |
| Market Pandemic Prevention and Disinfection Subsidy | 240,000.00 | Other income | 240,000.00 |
| VAT reduction for the recruitment of retired soldiers finding jobs on their own | 223,500.00 | Other income | 223,500.00 |
| Others | 1,123,373.61 | Other income | 1,123,373.61 |
| Total | 16,645,616.31 | 16,645,616.31 |
2. Refund of government grants
□Applicable √Not applicable
Other statementsNil
85. Others
□Applicable √Not applicable
VIII. Changes in consolidation scope
1. Mergers of enterprises not under common control
□Applicable √Not applicable
2. Mergers of the enterprises under common control
□Applicable √Not applicable
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.) and the related information:
√Applicable □Not applicable
The Company established a subsidiary, Yiwu Shangbo Shuzhi Enterprise Management Co.,Ltd., in this period.
6. Others
□Applicable √Not applicable
IX. Equity in Other Entity
1. Equity in subsidiaries
(1). Composition of the enterprise group
√Applicable □Not applicable
| Subsidiary Name | Main place of business | Place of registration | Business | Shareholding ratio (%) | Acquisition Method | |
| Direct | Indirect | |||||
| 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 | Wholesale | 100 | Establishment | |
| Yiwu Comprehensive Bonded Zone Operation and Management Co., Ltd. | Yiwu, Zhejiang | Yiwu, Zhejiang | Business service | 100 | Establishment | |
| Yiwu China Commodities City Overseas Investment and Development Co., Ltd. | Yiwu, Zhejiang | Yiwu, Zhejiang | Business service | 100 | Establishment | |
| Yiwu China Commodities City Tourism Development Co., Ltd. | Yiwu, Zhejiang | Yiwu, Zhejiang | Business service | 100 | Establishment | |
| Yiwu China Commodities City Assets Operation and Management Co., Ltd. | Yiwu, Zhejiang | Yiwu, Zhejiang | Business service | 100 | Establishment | |
| Zhejiang Yindu Hotel Management Co., Ltd. | Yiwu, Zhejiang | Yiwu, Zhejiang | Business service | 100 | Establishment | |
| Yiwu China Commodities City Research Institute Co., Ltd. | Yiwu, Zhejiang | Yiwu, Zhejiang | Business service | 100 | Establishment | |
| Yiwu Shangbo Shuzhi Enterprise 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 Commodities City Gonglian Property Co., Ltd. | Yiwu, Zhejiang | Yiwu, Zhejiang | Real estate | 100 | Establishment | |
| Yiwu Shangbo Yuncang Enterprise Management Co., Ltd. | Yiwu, Zhejiang | Yiwu, Zhejiang | Real estate | 100 | Establishment | |
| Yiwu China Commodities City Information Technology Co., Ltd. | Yiwu, Zhejiang | Yiwu, Zhejiang | IT | 100 | Establishment | |
| Yiwu China Commodities City Financial Holdings | Yiwu, Zhejiang | Yiwu, Zhejiang | Service | 100 | Establishment | |
| Co., Ltd. | ||||||
| Yiwu China Commodities City Logistics and Warehousing Co., Ltd. | Yiwu, Zhejiang | Yiwu, Zhejiang | Multimodal transport and transportation agency | 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 Exhibition Co., Ltd. | Yiwu, Zhejiang | Yiwu, Zhejiang | Business service | 98 | 2 | Establishment |
| Zhejiang Huajie Investment and Development Co., Ltd. | Yiwu, Zhejiang | Yiwu, Zhejiang | Business service | 96.4 | Incorporation+acquisition | |
| Zhejiang China Commodities City Group Commercial Factoring Co., Ltd. | Yiwu, Zhejiang | Yiwu, Zhejiang | Service | 60 | 40 | Establishment |
| Zhejiang Yiwugou E-commerce Co., Ltd. | Yiwu, Zhejiang | Yiwu, Zhejiang | IT | 51 | Establishment | |
| Yiwu China Commodities City Payment Network Technology Co., Ltd. | Yiwu, Zhejiang | Yiwu, Zhejiang | IT | 100 | Establishment | |
| Yiwu China Commodities City Advertising Co., Ld. | Yiwu, Zhejiang | Yiwu, Zhejiang | Advertising | 100 | Establishment | |
| Yiwu International Trade Comprehensive Service Co., Ltd. | Yiwu, Zhejiang | Yiwu, Zhejiang | Wholesale | 60 | Establishment | |
| Yiwu China Commodities City Credit Investigation Co., Ltd. | Yiwu, Zhejiang | Yiwu, Zhejiang | Service | 85 | Establishment | |
| Yiwu Aiximao Supply Chain Management Co., Ltd. | Yiwu, Zhejiang | Yiwu, Zhejiang | Service | 100 | Establishment | |
| Yiwu Huanqiuyida 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 | |
| Yiwu China Commodities 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 | |
| Haicheng Yiwu China Commodities City Investment Development Co., Ltd. | Haicheng, Liaoning | Haicheng, Liaoning | Real estate | 95 | Establishment | |
| Ningxia Yiwu China Commodities City Supply Chain Management Co., Ltd. | Shizuishan, Ningxia | Shizuishan, Ningxia | Service | 100 | Establishment | |
| Yiwu China Commodities City (Hong Kong) International Trade Co., Ltd. | Hong Kong, China | Hong Kong, China | Wholesale | 100 | Establishment |
| Hong Kong Better Silk Road Co., Ltd. | Hong Kong, China | Hong Kong, China | Service | 100 | Establishment | |
| Yiwu China Commodities City (Germany) Co., Ltd. | Frankfurt, Germany | Frankfurt, Germany | 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 | |
| European Huajie Investment Development Co., Ltd. | Prague, Czech Republic | Prague, Czech Republic | Service | 96.4 | Incorporation+acquisition |
Explanation for the difference between the shareholding ratio and voting right ratio in a subsidiary:
Nil
Basis for holding half or less voting rights in but still controlling an investee, and holding more thanhalf of the voting rights in but not controlling an investee:
Nil
Basis for controlling important structured entities included in the consolidation scope:
Nil
Basis for determining whether a company is an agent or a principal:
Nil
Other notes:
Nil
(2). Important non-wholly-owned subsidiaries
√Applicable □Not applicable
Unit: RMB
| Name of subsidiary | Shareholding ratio of minority shareholders (%) | Profits or losses attributable to minority shareholders in the current period | Dividends declared to be distributed to minority shareholders for the current period | Closing balance of minority interest |
| Zhejiang Yiwugou E-commerce Co., Ltd. | 49 | 3,274,040.80 | - | 48,091,422.74 |
| Haicheng Company | 5 | -1,729,824.07 | - | -44,722,868.07 |
Explanation for the difference between the shareholding ratio and voting right ratio of minority shareholders in a subsidiary:
□Applicable √Not applicable
Other notes:
□Applicable √Not applicable
(3). Major financial information of important non-wholly-owned subsidiaries
√Applicable □Not applicable
Unit: RMB10,000
| Name of subsidiary | Closing balance | Opening balance | ||||||||||
| Current assets | Non-current assets | Total assets | Current liabilities | Non-current liabilities | Total liabilities | Current assets | Non-current assets | Total assets | Current liabilities | Non-current liabilities | Total liabilities | |
| Zhejiang Yiwugou E-commerce Co., Ltd. | 11,943.43 | 857.89 | 12,801.32 | 2,986.75 | - | 2,986.75 | 11,899.73 | 900.21 | 12,799.94 | 3,653.53 | - | 3,653.53 |
| Haicheng Company | 130,653.08 | 79,778.16 | 210,431.24 | 299,876.98 | - | 299,876.98 | 126,423.87 | 98,154.04 | 224,577.91 | 310,564.00 | - | 310,564.00 |
| Name of subsidiary | Amount in the current period | Amount in the previous period | ||||||
| Operating revenue | Net profits | Total comprehensive income | Cash flow from operating activities | Operating revenue | Net profits | Total comprehensive income | Cash flow from operating activities | |
| Zhejiang Yiwugou E-commerce Co., Ltd. | 2,459.03 | 668.17 | 668.17 | 446.46 | 2,289.66 | 403.04 | 403.04 | -1,005.35 |
| Haicheng Company | 18,481.88 | -3,459.65 | -3,459.65 | -1,159.89 | 591.49 | -7,128.38 | -7,128.38 | 4,098.84 |
Other notes:
Nil
(4). Major restrictions on the use of the enterprise group’s assets and repayment of the
enterprise group’s debts
□Applicable √Not applicable
(5). Financial support or other support provided to structured entities included in theconsolidated financial statements:
□Applicable √Not applicable
Other notes:
□Applicable √Not applicable
2. Transactions in which the Group’s share of owners’ equity in a subsidiary changes andthe 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 | Main place of business | Place of registration | Business | Shareholding ratio (%) | Accounting treatment method of investment in the joint venture or associate | |
| Direct | Indirect | |||||
| Joint venture | ||||||
| Yiwu Shanglv Investment Development Co., Ltd. | Yiwu, Zhejiang | Yiwu, Zhejiang | Real estate | 49 | Equity method | |
| Yiwu Huishang Redbud Capital Management Co., Ltd. | Yiwu, Zhejiang | Yiwu, Zhejiang | Service | 20 | Equity method | |
| Yiwu Rongshang Property Co., Ltd. | Yiwu, Zhejiang | Yiwu, Zhejiang | Real estate | 49 | Equity method | |
| Yiwu Chuangcheng Property Co., Ltd. | Yiwu, Zhejiang | Yiwu, Zhejiang | Real estate | 24 | Equity method | |
| Yiwu Guoshen Shangbo Property Co., Ltd. | Yiwu, Zhejiang | Yiwu, Zhejiang | Real estate | 49 | Equity method | |
| Associate | ||||||
| Yiwu Huishang Redbud Equity Investment Co., Ltd. (Note 4) | Yiwu, Zhejiang | Yiwu, Zhejiang | Commercial services | 10.42 | Equity method | |
| Zhejiang Chouzhou Financial Lease Co., Ltd. | Hangzhou, Zhejiang | Yiwu, Zhejiang | Service | 26 | Equity method | |
| Yiwu Huishang Redbud Phase II Investment Partnership (LLP) (Note 5) | Yiwu, Zhejiang | Yiwu, Zhejiang | Lease and business service | 9.43 | Equity method | |
| Yiwu Hongyi Equity Investment Fund Partnership | Yiwu, Zhejiang | Yiwu, Zhejiang | Service | 49.975 | 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 | |
Explanation for the difference between the shareholding ratio and voting right ratio in a joint ventureor associate:
Nil
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:
Note 4: The Company holds 10.42% (2021: 10.42%) of equity of Yiwu Huishang Redbud EquityInvestment Co., Ltd. (hereinafter referred to as "Redbud Equity Investment"), but regards it as a joint
venture of the Company. According to Redbud Investment’s articles of association, it is engaged ininvesting and its important financial and operating decision-making activities are to pick and manageinvestment projects, which have been fully entrusted to the Company’s joint venture Yiwu HuishangRedbud Capital Management Co., Ltd. (“Redbud Capital”). Redbud Capital picks and managesinvestment projects via its investment decision-making committee. Except for special investmentmatters, which are subject to the resolution of Redbud Investment’s board of directors, otherimportant financial and operating decision-making activities are conducted by Redbud Capital on thebehalf of Redbud Investment. Therefore, the Company was able to exercise significant influence onRedbud Investment in which the Company held 10.42% of total equity.Note 5: The Company holds 9.43% (9.43% in 2021) equity of Yiwu Huishang Redbud Phase IIInvestment Partnership (limited partnership) (“Redbud Phase II”), but regards it as an associatedcompany of the Company. According to Redbud Phase II’s articles of association, it is engaged ininvesting and its important financial and operating decision-making activities are to pick and manageinvestment projects, which have been fully entrusted to the Company’s joint venture Redbud Capital.Redbud Capital picks and manages investment projects via its investment decision-makingcommittee. Except for special investment matters, which are subject to the resolution of RedbudPhase II’s board of directors, other important financial and operating decision-making activities areconducted by Redbud Capital on the behalf of Redbud Phase II. Therefore, the Company can exertsignificant influence on Redbud Phase II in which it holds 9.43% equity.
(2). Main financial information of important joint ventures
√Applicable □Not applicable
Unit: RMB 10,000
| Closing balance/amount in the current period | Opening balance/amount in the previous period | |||||
| Yiwu Shanglv | Yiwu Rongshang Property | Yiwu Chuangcheng Property | Yiwu Shanglv | Yiwu Rongshang Property | Yiwu Chuangcheng Property | |
| Current assets | 6,242.83 | 196,561.31 | 153,247.98 | 9,499.55 | 564,093.80 | 385,685.30 |
| In which: cash and cash equivalents | 1,818.27 | 13,423.94 | 1,204.37 | 1,720.42 | 23,898.97 | 37,501.70 |
| Non-current assets | 131,342.96 | 5.89 | 3.79 | 133,261.86 | 8,395.40 | 5,324.96 |
| Total assets | 137,585.79 | 196,567.20 | 153,251.77 | 142,761.41 | 572,489.20 | 391,010.26 |
| Current liabilities | 31,058.62 | 172,197.66 | 94,821.77 | 37,527.54 | 528,124.40 | 354,317.21 |
| Non-current liabilities | 23,695.72 | 1,970.96 | 1,774.02 | 23,695.72 | - | - |
| Total liabilities | 54,754.34 | 174,168.62 | 96,595.79 | 61,223.26 | 528,124.40 | 354,317.21 |
| Minority interest | ||||||
| Shareholders’ equity attributable to parent company | 82,831.45 | 22,398.58 | 56,655.98 | 81,538.15 | 44,364.80 | 36,693.05 |
| Share of net assets calculated based on shareholding ratio | 40,587.41 | 10,975.30 | 13,597.44 | 39,953.69 | 21,738.75 | 8,806.33 |
| Adjustments | -1,563.23 | - | - | -1,586.85 | - | - |
| --unrealized profits of internal transactions | -1,563.23 | - | - | -1,586.85 | - | - |
| Book value of equity investment in joint ventures | 39,024.18 | 10,975.31 | 13,597.44 | 38,366.84 | 21,738.75 | 8,806.33 |
| Operating revenue | 8,396.80 | 427,669.78 | 275,551.74 | 11,915.13 | - | - |
| Financial expenses | 854.71 | -119.92 | -28.31 | 1,313.05 | -301.55 | -116.07 |
| Net profits | 1,293.30 | 96,577.78 | 44,962.93 | 2,561.80 | -287.30 | -1,124.86 |
| Total comprehensive income | 1,293.30 | 96,577.78 | 44,962.93 | 2,561.80 | -287.30 | -1,124.86 |
| Dividends received from joint ventures this year | - | 58,086.56 | 6,000.00 | - | - | - |
Other statementsNil
(3). Main financial information of important associates
√Applicable □Not applicable
Unit: RMB10,000
| Closing balance/amount in the current period | Opening balance/amount in the previous period | |||||||
| Chouzhou Financial Lease | Hongyi Fund | CCCP | Pujiang Lvgu | Chouzhou Financial Lease | Hongyi Fund | CCCP | Pujiang Lvgu | |
| Current assets | 44,793.22 | 22,357.48 | 1,380,092.59 | 107,237.16 | 77,805.80 | 21,730.37 | 1,492,712.71 | 122,804.10 |
| Non-current assets | 1,513,877.00 | 156,838.25 | 45,194.98 | 3,151.30 | 1,356,968.91 | 155,970.63 | 42,919.44 | 459.02 |
| Total assets | 1,558,670.22 | 179,195.73 | 1,425,287.57 | 110,388.46 | 1,434,774.71 | 177,701.00 | 1,535,632.15 | 123,263.12 |
| Current liabilities | 1,042,334.83 | 37.33 | 727,168.11 | 32,119.60 | 1,020,585.17 | 37.71 | 915,862.90 | 31,456.60 |
| Non-current liabilities | 338,762.31 | - | 101,295.42 | 2,448.78 | 250,335.36 | - | 49,089.63 | - |
| Total liabilities | 1,381,097.14 | 37.33 | 828,463.53 | 34,568.38 | 1,270,920.53 | 37.71 | 964,952.53 | 31,456.60 |
| Shareholders’ equity attributable to parent company | 177,573.08 | 179,158.40 | 596,824.04 | 75,820.08 | 163,854.18 | 177,663.29 | 570,679.62 | 91,806.52 |
| Share of net assets calculated based shareholding ratio | 46,169.00 | 89,534.41 | 292,443.78 | 37,151.84 | 42,602.08 | 88,796.11 | 279,633.01 | 44,985.19 |
| Adjustments | - | -8.96 | -6,617.54 | 942.95 | - | -8.88 | -3,939.17 | 942.95 |
| --unrealized profits of internal transactions | - | -8.96 | -6,617.54 | 942.95 | - | -8.88 | -3,939.17 | 942.95 |
| Book value of equity investment in joint ventures | 46,169.00 | 89,525.45 | 285,826.24 | 38,094.79 | 42,602.08 | 88,787.23 | 275,693.84 | 45,928.14 |
| Operating revenue | 28,545.90 | - | 171,172.95 | 2,172.40 | 19,148.81 | 743.86 | 130,649.27 | 89,556.04 |
| Net profits | 13,718.90 | 8,934.93 | 25,513.10 | 2,013.56 | 11,330.05 | 682.67 | 15,476.32 | 23,941.44 |
| Total comprehensive income | 13,718.90 | 8,919.21 | 25,513.10 | 2,013.56 | 11,330.05 | 682.67 | 15,476.32 | 23,941.44 |
| Dividend on associates received in the current year | - | - | - | 8,820.00 | - | - | - | |
Other statementsNil
(4). Summary of 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 | 71,171,889.04 | 56,813,304.76 |
| Total amounts of the following items calculated based on shareholding ratio | ||
| --Net profits | 14,358,584.28 | -17,417,905.83 |
| --Total comprehensive income | 14,358,584.28 | -17,417,905.83 |
| Associates: | ||
| Total book value of investments | 470,662,439.31 | 461,933,497.77 |
| Total amounts of the following items calculated based on shareholding ratio | ||
| --Net profits | -7,520,626.68 | -2,760,126.81 |
| --Total comprehensive income | -7,520,626.68 | -2,760,126.81 |
Other statementsNil
(5). Restrictions on the ability of joint ventures or associates to transfer money to the
Company
□Applicable √Not applicable
(6). Excess losses of joint ventures or associates
□Applicable √Not applicable
(7). Unrecognized commitments relating to an investment in joint ventures
□Applicable √Not applicable
(8). Contingent liabilities relating to an investment in joint ventures or associates
□Applicable √Not applicable
4. Important joint operations
□Applicable √Not applicable
5. Equity in structured entities not included in the consolidated financial statements
Notes on structured entities not included in the consolidated financial statements:
□Applicable √Not applicable
6. Others
□Applicable √Not applicable
X. Risks associated with financial instruments
√Applicable □Not applicable
1. Classification of financial instruments
The book values of financial instruments on the balance sheet date are as follows:
June 30, 2022
Financial assets
| Financial assets that are measured by fair value and of which the changes in fair value are recognized in the profit or loss for the current period | Measured at amortized cost | measured at fair value and whose changes are included in other comprehensive income | Total | ||||
| Requirements in the standard | Designated | ||||||
| Cash and cash equivalents | - | 4,499,334,048.52 | - | 4,499,334,048.52 | |||
| Held-for-trading financial assets | 51,033,592.50 | - | - | 51,033,592.50 | |||
| Accounts receivable | - | 73,782,158.07 | - | 73,782,158.07 | |||
| Other receivables | - | 746,718,985.83 | - | 746,718,985.83 | |||
| Other current assets | - | 2,110,199.39 | - | 2,110,199.39 | |||
| Long-term receivables | - | 270,534,332.30 | - | 270,534,332.30 | |||
| Other equity instruments investment | - | - | 538,083,278.52 | 538,083,278.52 | |||
| Other non-current financial assets | 1,573,087,817.52 | - | - | 1,573,087,817.52 | |||
| 1,624,121,410.02 | 5,592,479,724.11 | 538,083,278.52 | 7,754,684,412.65 |
| Financial liabilities | Other financial liabilities | ||
| Short-term borrowings | 587,435,842.88 | ||
| Accounts payable | 293,544,737.63 | ||
| Other payables | 1,326,087,294.15 | ||
| Non-current liabilities due within one year | 3,204,867,360.53 | ||
| Other current liabilities | 4,066,990,475.43 | ||
| Long-term borrowings | 204,500,000.00 | ||
| Bonds payable | 1,514,288,084.70 | ||
| Lease liabilities | 203,602,525.97 | ||
| 11,401,316,321.29 |
2021Financial assets
| Financial assets that are measured by fair value and of which the changes in fair value are recognized in the profit or loss for the current period | Measured at amortized cost | measured at fair value and whose changes are included in other comprehensive income | Total | ||||
| Requirements in the standard | Designated | ||||||
| Cash and cash equivalents | - | 4,831,468,386.25 | - | 4,831,468,386.25 | |||
| Held-for-trading financial assets | 75,375,083.20 | - | - | 75,375,083.20 | |||
| Accounts receivable | - | 185,237,530.89 | - | 185,237,530.89 | |||
| Other receivables | - | 1,355,924,282.96 | - | 1,355,924,282.96 | |||
| Other current assets | - | 2,780,294.82 | - | 2,780,294.82 | |||
| Long-term receivables | - | 222,307,363.40 | - | 222,307,363.40 | |||
| Other equity instruments investment | - | - | 642,187,968.77 | 642,187,968.77 |
| Other non-current financial assets | 1,524,819,255.41 | - | - | 1,524,819,255.41 | |||
| 1,600,194,338.61 | 6,597,717,858.32 | 642,187,968.77 | 8,840,100,165.70 |
| Financial liabilities | Other financial liabilities | ||
| Short-term borrowings | 942,736,046.04 | ||
| Accounts payable | 493,360,429.02 | ||
| Other payables | 1,908,742,835.15 | ||
| Non-current liabilities due within one year | 3,664,241,923.08 | ||
| Other current liabilities | 3,081,384,800.50 | ||
| Long-term borrowings | 771,250,000.00 | ||
| Lease liabilities | 205,942,673.93 | ||
| 11,067,658,707.72 |
2.
Risks associated with financial instruments
The risks associated with financial instruments faced by the Group in regular activities mainlyinclude credit risk, liquidity risk and market risk. The main financial instruments of the Groupinclude cash, borrowings from banks, bonds payable and commercial papers payable. Thoseinstruments are used mainly to finance the operation of the Group. The Group has lots ofother financial assets and liabilities directly arising from operation, such as accountsreceivable, other receivables, accounts payable and other payables. The risks associatedwith those financial instruments and the risk management strategy taken by the Group toreduce those risks are stated as follows.
Credit risk
The Group only deals with the recognized third parties with good reputations. According toits policy, the Group needs to carry out credit reviews on all clients who require to deal withthe Group on credit. In addition, the Group keeps monitoring the balance of accountsreceivable to ensure it will not face any material bad debt risk. For the transactions settledother than in the functional currency of related business entities, unless with specificapproval of the Group’s credit control department, the Group will not provide the conditionsfor dealing on credit. The Group also faces credit risks due to the provision of financialguarantees. See Note XIV. 2 for details.
As the counterparties to the transactions of cash are banks with good reputations and highcredit ratings, the credit risk of those financial instruments is relatively low.
The Group’s other financial assets include cash, debt investment, other receivables andcertain derivatives, the credit risk of which is sourced from default by the counterparties, andthe maximum risk exposure is equal to the book value of those instruments.
As the clients from which the Group’s accounts receivable are receivable are scattered indifferent sectors and industries, there’s no material credit risk concentrated within theGroup. The Group does not have any collaterals or other credit enhancements for thebalance of its accounts receivable.
See Notes VII. 5 and 8 for quantitative data on the Group's credit risk exposure in relation toreceivables and other receivables.
Criteria for significant increase in credit risk
The Group evaluates, on each balance sheet date, whether the credit risk of relatedfinancial instruments has increased significantly since the initial recognition thereof. Indetermining whether the credit risk of a financial instrument has increased significantlysince the initial recognition thereof, the Group takes into account the reasonable and
well-grounded information that is accessible without unnecessary extra costs or efforts,including the qualitative and quantitative analyses based on the Group’s historical data,external credit risk rating and forward-looking information. The Group compares the risk offinancial instruments defaulting on the balance sheet date and the risk of them defaulting onthe date of initial recognition based on an individual financial instrument or a group offinancial instruments 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 or qualitativecriteria, the Group will determine that its credit risk has increased significantly:
（1） The main quantitative criterion is that its probability of default within the remaining
duration on the reporting date rises by a certain margin from that at its initialrecognition;
（2） The main qualitative criterion is that the debtor has materially adverse changes in
business or financial conditions or is on the warning list of clients.
Definition of the assets whose credit has been impaired
In order to determine whether the credit of an asset has been impaired, the Group adoptsthe criteria consistent with its internal credit risk management goal for related financialinstruments and also takes into account the quantitative and qualitative indicators. TheGroup mainly considers the following factors while assessing whether the credit of a debtorhas been impaired:
（1） the issuer or debtor suffers material financial difficulty;
（2） the debtor is in breach of contract, such as breach in interest payment, principal
repayment or overdue payment;
（3） the creditor makes a compromise to the debtor which it would in no case make,
based on the economic or contract considerations in connection with the debtor’sfinancial difficulty;
（4） the debtor is very likely to go bankrupt or enter into other financial reorganizations;
（5） the financial difficulty of the issuer or debtor results in the disappearance of the
active market of the financial asset;
（6） a financial asset is purchased or derived at a large discount and the discount
points to the fact of credit loss having been incurred.
The credit impairment of financial assets may be caused by multiple events together andmay 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 beenimpaired, the Group makes impairment provisions for the expected credit losses of differentassets within 12 months or the entire duration. The key parameters of expected credit lossinclude the probability of default, loss given default and default risk exposure. The Grouphas built the models of probability of default, loss given default and default risk exposurebased on the quantitative analysis of historical data (e.g. rating of counterparties, form ofguarantee and category of collaterals or pledges, form of repayment) and forward-lookinginformation.
The related definitions are as follows:
（1） The probability of default refers to the possibility that the debtor will be unable to
fulfill its payment obligations in the next 12 months or throughout the remainingduration. The Group adjusts the probability of default based on the results of theexpected credit loss model and with forward-looking information included toreflect the debtors’ probability of default under the current macroeconomicenvironment.
（2） The default loss rate refers to the Group’s expectation of the extent of losses
incurred due to the default risk exposure. The loss given default varies with thetype of counterparty, the form and priority of claims and collaterals. The lossgiven default is the percentage of risk exposure loss at the time of default and iscalculated based on the 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 or throughout the remainingduration.
The determination of significant increase in credit risk and the calculation of expected creditloss both involve forward-looking information. The Group identifies the key economicindicators that affect the credit risk and expected credit loss of various types of businessesthrough the analysis of historical data.
The influence of those economic indicators on the probability of default and loss have givendefault varies with the type of business. The Group predicts those indicators on a quarterlybasis based on experts’ judgments and determines their influence on the probability ofdefault and loss given default through regression analysis.
The Group makes impairment provisions for the expected credit loss of accounts receivableand other receivables within the coming 12 months with the simplified method and generalmethod respectively. Please refer to Notes VII. 5 and 8 for details.
Liquidity risk
The Group manages the cash shortage risk with the cyclical liquidity plan tool. The toolconsiders not only the maturity dates of financial instruments but also the estimated cashflows arising from the operation of the Group.
The Group aims to make use of such financing instruments as bank loans, commercialpapers, MTNs, corporate bonds and long-term borrowings to maintain the balance betweenthe continuity and flexibility of financing. As of June 30, 2022, 77.72% of the Group's debtswould be due within one year (December 31, 2021: 87.59%).The following table summarizes the analysis of the due day of financial liabilities based onnon-discounted contractual cash flows:
June 30, 2022
| 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 borrowings | 448,267.14 | 4,168,884.44 | 588,738,403.82 | - | - | 593,355,555.40 |
| Accounts payable | 237,076,730.72 | 56,468,006.91 | - | - | - | 293,544,737.63 |
| Other payables | 858,706,023.35 | - | - | 467,381,270.80 | - | 1,326,087,294.15 |
| Other current liabilities | 4,532,809.76 | 4,066,147,671.23 | - | - | - | 4,070,680,480.99 |
| Non-current liabilities due within one year | 388,888.89 | 2,811,146,666.67 | 405,950,000.00 | - | - | 3,217,485,555.56 |
| Long-term borrowings | 153,375.00 | 1,426,387.50 | 4,202,475.00 | 213,321,875.00 | - | 219,104,112.50 |
| Bonds payable | - | 68,600,000.00 | 1,930,060,000.00 | - | 1,998,660,000.00 | |
| Total | 1,101,306,094.86 | 6,939,357,616.75 | 1,067,490,878.82 | 2,610,763,145.80 | - | 11,718,917,736.23 |
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 borrowings | 2,580,651.41 | 253,953,316.72 | 702,138,696.23 | - | - | 958,672,664.36 |
| Accounts payable | 433,048,081.66 | 60,312,347.36 | - | - | - | 493,360,429.02 |
| Other payables | 1,337,432,161.48 | - | - | 571,310,673.67 | - | 1,908,742,835.15 |
| Other current | 4,304,034.67 | - | 3,064,041,095.89 | - | - | 3,068,345,130.56 |
| liabilities | ||||||
| Non-current liabilities due within one year | 326,666.67 | 50,424,666.67 | 3,639,370,038.05 | - | - | 3,690,121,371.39 |
| Long-term borrowings | 2,178,645.83 | 4,357,291.67 | 19,607,812.50 | 785,678,164.58 | - | 811,821,914.58 |
| Total | 1,779,870,241.72 | 369,047,622.42 | 7,425,157,642.67 | 1,356,988,838.25 | - | 10,931,064,345.06 |
Market risks
Interest rate risk
The risk of changes in market interest rates faced by the Group is mainly related tothe Group's long-term liabilities at floating interest rates.
The Group manages interest costs by maintaining an appropriate combination offixed-rate debts and variable-rate debts. As of Jun 30, 2022, the Company had nolong-term borrowings among its long-term liabilities, the interest rates of which wereadjusted on an annual basis based on the benchmark loan rate on the anniversarydates. Therefore, the management believes that its risk of market interest ratechange is relatively low.
Foreign exchange rate riskThe Group faces trading exchange rate risks. Such risks are caused by sales orpurchases made by certain business units in currencies other than theirbookkeeping currency. 1.15% (2021: 0.86%) of the Group's sales in the currentperiod were denominated in a currency other than the functional currency of theoperating unit where the sales occurred, while 98.85% (2021: 99%) of the costswere denominated in the functional currency of the operating unit. Considering theGroup’s short time of inventory and timely collection of accounts receivable, themanagement believes that its foreign exchange rate risk is relatively low.
Price risk of equity instrument investmentsThe price risk of equity instrument investments refers to the risk of the fair value of
equity securities decreasing due to the changes in stock indices and value of
individual securities. As of Jun 30, 2022, the Group was exposed to the price risk of
equity instrument investments arising from the individual equity instrument
investments classified as the financial instruments that are measured by fair value
and 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). The listed
equity instruments that were invested and held by the Group were listed on the
Shanghai Stock Exchange and the Shenzhen Stock Exchange, respectively,the
determination is made through discounting and adjustment using the trading prices
of similar circulating stocks of the same listed company on the balance sheet date,
combined with liquidity.
The market stock indexes of the following stock exchanges at the closing point of the
trading day that is closest to the balance sheet date, and their respective highest and
lowest closing points during the year are as follows:
| End of June 2022 | Jan-Jun 2022 Max/Min | End of 2021 | Jan-Jun 2021 Max/Min | |
| SZSE-A Share Index | 2,327 | 2,645/1,833 | 2,648 | 2,583/2,261 |
| SSE-A Share | 3,562 | 3,807/3,025 | 3,814 | 3,875/3,519 |
Index
The following table indicates the sensitivity of the Group’s net profit and loss andother comprehensive income after tax to the change each 10% of the fair value ofequity instrument investment (based on the book value on the balance sheet date)under the assumption that all other variables remain unchanged.
End of June 2022
| Equity instrument investment Book value | Net profit or loss | Other comprehensive income net after tax | Total shareholders' equity | |
| Equity instrument investment | increase/(decrease) | increase/(decrease) | increase/(decrease) | |
| Fair value increase/decrease by10% | ||||
| Shenzhen - 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 | 538,083,278.52 | - | 40,356,245.89 | 40,356,245.89 |
| Shanghai - Equity instrument investment at fair value through profit or loss | 26,033,592.50 | 1,952,519.44 | - | 1,952,519.44 |
2021
| Equity instrument investment Book value | Net profit or loss | Other comprehensive income net after tax | Total shareholders' equity | |
| Equity instrument investment | increase/(decrease) | increase/(decrease) | increase/(decrease) | |
| Fair value increase/decrease by10% | ||||
| Shenzhen - 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 | 642,187,968.77 | 48,164,097.66 | 48,164,097.66 | |
| Shanghai - Equity instrument investment at fair value through profit or loss | 50,375,083.20 | 3,778,131.24 | - | 3,778,131.24 |
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 oradjust the capital structure, the Group may adjust the distribution of profits toshareholders, return capital contribution to shareholders or issue new shares. TheGroup is not subject to external mandatory capital requirements. From January toJune 2022 and 2021, there was 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 | 26,033,592.50 | - | 25,000,000.00 | 51,033,592.50 |
| 1. Financial assets that are measured at fair value and whose changes are included in the current profit and loss | 26,033,592.50 | - | 25,000,000.00 | 51,033,592.50 |
| (2) Investment in equity instruments | 26,033,592.50 | - | - | 26,033,592.50 |
| (4) Bank wealth management products | - | - | 25,000,000.00 | 25,000,000.00 |
| (3) Other equity instruments investment | 538,083,278.52 | - | - | 538,083,278.52 |
| (vi) Other non-current financial assets | - | 886,219,106.15 | 686,868,711.37 | 1,573,087,817.52 |
| Total assets are continuously measured by fair value | 564,116,871.02 | 886,219,106.15 | 711,868,711.37 | 2,162,204,688.54 |
2. Basis for determining the market prices of the items continuously and non-continuously
measured by Level 1 fair value
√Applicable □Not applicable
The Group's continuous first-level fair value measurement items mainly include listed equityinstruments, whose fair value is determined based on the market quotation on the last trading day ofJune 2022.
3. Valuation techniques and qualitative and quantitative information of important
parameters for the items continuously and non-continuously measured by Level 2 fair
value
√Applicable □Not applicable
The Group’s level-2 items continuously measured at fair value mainly include unlisted equityinvestments and listed equity instruments with restricted sales conditions. The fair value of unlistedequity investments is determined based on the information in the financial statements of theseunlisted companies as of June 30, 2022, combined with comparable information of listed companiesin the industry, using the comparable company multiplier method. In the listed equity instrumentssubject to restricted sales conditions, the valuation model is used to determine the fair value basedon the market quotation, and the important observable input value is the liquidity discount.
4. Valuation techniques and qualitative and quantitative information of importantparameters for the items continuously and non-continuously measured by Level 3 fairvalue
√Applicable □Not applicable
The Group’s level-3 items continuously measured at fair value include equity investments anddebt investments in non-listed companies for which the comparable company multiplier methodcannot be used. The fair value of the equity investments and debt investments in non-listedcompanies for which the comparable company multiplier method is not suitable are determined withthe asset-based method as of June 30, 2022.
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
June 30, 2022
| 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) | 4.583.517.932.98 | 4.583.517.932.98 | ||
9. Others
√Applicable □Not applicable
Estimate of fair value
Fair value of financial instrumentsThe 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 and whosefair value could not be measured reliably:
| Book value | Fair value | ||||
| June 30, 2022 | 2021 | June 30, 2022 | 2021 | ||
| Financial liabilities bonds payable (current portion included) | 4.301.169.332.94 | 3,552,960,829.66 | 4.583.517.932.98 | 3,549,754,103.37 | |
The management has evaluated cash and cash equivalents, accounts receivable,notes payable and accounts payable. Their fair values were equivalent to their bookvalues as their remaining terms were not long. The fair values of long-termreceivables, other non-current assets, long and short-term borrowings andlong-term accounts payable were determined with the discounted future cash flowmethod, with the market yields of other financial instruments with similar contractterms, credit risks and remaining terms as the discount rates. Their fair values wereequivalent to their book values.The Group's finance department, headed by the General manager of the GroupFinance Center, is responsible for developing policies and procedures for the fairvalue measurement of financial instruments. The General Manager of the GroupFinance Center reports directly to the Group Finance Officer, who reports to theAudit Committee. On each balance sheet date, the financial department analyzesthe changes in the value of financial instruments and determines the main inputvalues applicable to the valuation. The valuation shall be reviewed and approved bythe Group's Financial Director. For the preparation of semi-annual and annualfinancial statements, the valuation process and results are discussed with the auditcommittee twice a year.
The fair values of financial assets and financial liabilities refer to the amountsdetermined based on the voluntary exchange of assets or repayment of debts by theparties to arm’s length transactions who are familiar with the transactions rather thanforced sale or liquidation. The following methods and assumptions are used toestimate fair value.
The fair value of bonds payable is determined with the discounted future cash flowmethod, with the market yields of other financial instruments with similar contractterms, credit risks and remaining terms as the discount rates, and falls in Level 2.The significant unobservable inputs for measurement of the fair value of bondspayable are the prepayment rate and loss given default.
If there are no restrictions on the sale of listed equity instruments, the fair value isdetermined at the quoted market price. In the listed equity instruments subject torestricted sales conditions, the valuation model is used to determine the fair valuebased on the market quotation, and the important observable input value is theliquidity discount. The Group believes that the fair value estimated by valuationtechniques is reasonable and is also the most appropriate value on the balancesheet date.
There was no significant conversion of the Group’s and the Company’s financialinstruments measured by fair value between different levels in the current year andthe 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 | Place of registration | Business | Registered capital | Shareholding ratio in the Company (%) | Voting right ratio in the Company (%) |
| CCCH | Yiwu, Zhejiang | Asset management | 100,000 | 55.33 | 55.33 |
Notes on the parent company of the CompanyNilThe ultimate controlling party of this enterprise is the State-owned Assets Supervision andAdministration Office of Yiwu Municipal People's Government.
Other notes:
Nil
2. Subsidiaries of the Company
For details of the Company’s subsidiaries, please refer to the Notes
√Applicable □Not applicable
For details of subsidiaries, please refer to Note IX. 1. Equity in subsidiaries
3. Joint ventures and associates of the Company
For details of the Company’s important joint ventures or associates, please refer to the Notes
√Applicable □Not applicable
For details, please refer to Note IX. 3. Interests in joint ventures or associated enterprises
Other joint ventures or associates that have related-party transactions with the Company in thecurrent period or had related-party transactions with the Company in the prior year which resulted inan outstanding amount are as follows
√Applicable □Not applicable
| Name of joint venture or associate | Relationship with the Company |
| Yiwu Shanglv | Joint venture |
| Yiwu Huishang Redbud Capital Management Co., Ltd. | Joint venture |
| Hangzhou Binjiang Shangbo Property Development Co., Ltd. | Associate |
| Huishang Micro-finance | Associate |
| Zhejiang Yemai Data Technology Co., Ltd. | Associate |
| Yiwu Meipinshu Supply Chain Management Co., Ltd. | Associate |
| JEBEL ALI FREE ZONE TRADER MARKET DEVELOPMENT AND OPERATION FZCO | Associate |
| Yiwu Digital Port Technology Co., Ltd. | Associate |
| CCCP | Associate |
Other statements
□Applicable √Not applicable
4. Other related parties
√Applicable □Not applicable
| Name of other related party | Relationship with the Company |
| SCO | Parent company of controlling shareholder of the Company’s largest shareholder |
| MDG | Controlling shareholder of the Company’s largest shareholder |
| Yiwu China Commodities City Property Service Co., Ltd. | Subsidiary of the Company’s largest shareholder |
| Xingfuhu 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 |
| Zhejiang Xingfuhu Sports Development Co., Ltd. | Subsidiary of controlling shareholder of the Company’s largest shareholder |
| Huangyuan Shangbo | Subsidiaries of joint ventures |
| Chengzhen Property | Subsidiaries of joint ventures |
| Yiwu Gongchen Shangbo Property Co., Ltd. | Subsidiaries of joint ventures |
| Tonghui Shangbo | Subsidiaries of joint ventures |
| Zhejiang Shangbo Property Co., Ltd. | Subsidiaries of associates |
| Handing Shangbo | Subsidiaries of associates |
Other statementsNil
5. Related-party transactions
(1). Related-party transactions of purchasing and selling goods and rendering and
accepting servicePurchasing goods/accepting service
√Applicable □Not applicable
Unit: RMB
| Related party | Contents of related-party transaction | Amount in the current period | Amount in the previous period |
| Yiwu China Commodities City Property Service Co., Ltd. | Property service fee and greening maintenance fee | 72,002,626.73 | - |
| Yiwu Security Service Co., Ltd. | Pandemic prevention and control and exhibition security service fee | 10,543,139.42 | 37,500.00 |
| Yiwu China Commodities City Creative Design and Development Services Co., Ltd. | Design fee | 379,844.66 | - |
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 |
| MDG and its branch Xingfuhu International Conference Center | Laundry costs, venue rental costs, etc. | 438,145.35 | 2,406,375.28 |
| Yiwu Meipinshu Supply Chain Management Co., Ltd. | Procurement agency | 51,833.38 | 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 |
Notes on related-party transactions of purchasing and selling goods and rendering and acceptingservice
□Applicable √Not applicable
(2). Entrustment/contracting from and to related parties
Entrustment/contracting to the Company:
√Applicable □Not applicable
Unit: RMB
| Name of consignor/employer | Name of consignee/contractor | Type of entrusted/contracted assets | Starting date of entrustment /contracting | Ending date of entrustment /contracting | Pricing of entrustment income/contracting income | Entrustment income/contracting income recognized in the current period |
| MDG | The Company | Entrustment of other assets | Feb 1, 2020 | Jan 31, 2025 | Negotiated price | 182,819.84 |
Notes on entrustment/contracting from related parties
√Applicable □Not applicable
According to the Xingfuhu International Conference Center Management Contract signed byand between the Company and the Market Development Group, the Company is entrusted tomanage Xingfuhu International Conference Center Hotel located at No. 100, Xingfuhu Road, YiwuCity. The hotel management fee collected during the reporting period was RMB 182,819.84(January- June 2021: RMB 895,759.55)
Entrustment/contracting from the Company:
□Applicable √Not applicable
Notes on related-party management/contracting
□Applicable √Not applicable
(3). Related-party lease
The Company as the lessor:
√Applicable □Not applicable
Unit: RMB
| Name of lessee | Type of leased asset | Rental income recognized in the current period | Rental income recognized in the previous period |
| CCCP | Office space | 468,572.46 | - |
| Yiwu Huishang Redbud Capital Management Co., Ltd. | Office space | 123,409.56 | 123,409.53 |
| Yiwu China Commodities City Property Service Co., Ltd. | Office space | 72,225.96 | - |
| Huishang Micro-finance | Office space | 10,171.46 | 196,476.69 |
| Zhejiang Yemai Data Technology Co., Ltd. | Office space | - | 22,184.76 |
The Company as the lessee
□Applicable √Not applicable
Notes on related-party lease
□Applicable √Not applicable
(4). Related-party guarantees
The Company as the guarantor
√Applicable □Not applicable
Unit: RMB
| The guaranteed | Amount of guarantee | Starting date of the guarantee | Expiry date of the guarantee | Is the guarantee fulfilled in full |
| Yiwu Shanglv | 125,428,608.27 | Jul 1, 2015 | Dec 15, 2026 | No |
The Company as the guaranteed party
□Applicable √Not applicable
Notes on related-party guarantees
√Applicable □Not applicable
The Group provided guarantee for the borrowings of Yiwu Shanglv. As of June 30, 2022, YiwuShanglv actually borrowed RMB 255.9768 million ( Dec 31, 2021: RMB 296.5056 million ) frombanks. According to the guarantee contract, the Group assumed liability for RMB 125.4286 million(Dec 31, 2021: RMB 145.2877 million). SCO provided a counter-guarantee
(5). Related-party lending and borrowing
√Applicable □Not applicable
Unit: RMB
| Related party | Amount | Starting date | Maturity date | Description |
| Borrowings | ||||
| Huangyuan Shangbo | 436,100,000.00 | Jul 31, 2020 | The Group allocated a total of RMB 436,100,000.00 of surplus funds from Huangyuan Shangbo in 2020, and allocated a total of RMB 171,500,000.00 of surplus funds from Huangyuan Shangbo in 2021. The allocations were based on the shareholding rate and the annual interest rate was 0%. As of June 30, 2022, RMB 580,865,600.00 was converted into dividends, and the remaining RMB 26,734,400.00 was transferred back to Huangyuan Shangbo. | |
| Huangyuan Shangbo | 171,500,000.00 | Jan 26, 2021 | Ditto | |
| Chengzhen Property | 27,200,000.00 | Oct 22, 2020 | The Group allocated a total of RMB 27,200,000.00 of surplus funds from Chengzhen Real Estate in 2020, a total of RMB172,800,000.00 of surplus funds from Chengzhen Real Estate in 2021, and a total of RMB 72,000,000.00 of surplus funds from Chengzhen Real Estate in 2022. The allocations were based on the share holding rate and the annual interest rate was 0%. As of June 30, 2022, RMB 60,000,000.00 was converted into dividends, and the return date of the remaining funds is determined according to the capital needs of the Chengzhen Real Estate Project. | |
| Chengzhen Property | 172,800,000.00 | Jan 26, 2021 | Ditto | |
| Chengzhen Property | 72,000,000.00 | Jan 18, 2022 | Ditto | |
| Related party | Amount | Starting date | Maturity date | Description |
| Lending to | ||||
| Tonghui Shangbo | 742,568,548.00 | Nov 17, 2022 | In 2020, the Group provided a total of RMB 742,568,548.00 in financial assistance to Tonghui Shangbo, and in 2021, it provided a total of RMB138,160,000.00 in financial assistance to Tonghui Shangbo, with an annual interest rate of 6.5%. Tonghui Shangbo repaid RMB 735,000,000.00 successively in 2022. | |
| Tonghui Shangbo | 138,160,000.00 | Feb 26, 2021 | Ditto | |
| Handing Shangbo | 204,604,400.00 | Dec 11, 2020 | In 2020, the Group provided financial assistance to Handing Shangbo totaling RMB 204,604,400.00, and in 2021, the Group provided financial assistance to Handing Shangbo totaling RMB 17,845,800.00, with an annual interest rate of 6%. Handing Shangbo repaid RMB 14,700,000.00 successively in 2022. | |
| Handing Shangbo | 17,845,800.00 | May 11, 2021 | Ditto | |
| JEBEL ALI FREE ZONE TRADER MARKET DEVELOPMENT AND OPERATION | 63,465,484.42 | Mar 9, 2020 | In 2020, the Group provided JEBEL ALI FREE ZONE TRADER MARKET DEVELOPMENT AND OPERATION FZCO financial assistance totaling RMB 63,465,484.42; in 2021, the Group provided it with financial assistance totaling RMB 109,636,517.09; in 2022, the Group provided it with financial assistance totaling RMB 57,544,119.40, and received interests of RMB 9,424,876.07, all at an annual interest rate of 6-month average EIBOR plus 5%. The repayment term of the financial assistance is determined based on the progress of the project. | |
| JEBEL ALI FREE ZONE TRADER MARKET DEVELOPMENT AND OPERATION | 109,636,517.09 | Mar 31, 2021 | Ditto | |
| JEBEL ALI FREE ZONE TRADER MARKET DEVELOPMENT AND OPERATION | 57,544,119.40 | May 12, 2022 | Ditto |
(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 | 771.29 | 827.37 |
(8). Other related-party transactions
□Applicable √Not applicable
6. Accounts receivable from and payable to related parties
(1). Receivables
√Applicable □Not applicable
Unit: RMB
| Item | Related party | Closing balance | Opening balance | ||
| Book balance | Bad debt provision | Book balance | Bad debt provision | ||
| Accounts receivable | Xingfuhu International Conference Center Company of Yiwu Market Development Group Co., Ltd. | 221,008.90 | 353.61 | 369,743.93 | - |
| Accounts receivable | Yiwu Gongchen Shangbo Property Co., | 87,545.18 | 140.07 | 97,351.08 | - |
| Ltd. | |||||
| Accounts receivable | CCCP | 5,800.00 | 9.28 | 9,000.00 | - |
| Accounts receivable | Tonghui Shangbo | - | - | 6,200,000.00 | - |
| Total | 314,354.08 | 502.96 | 6,676,095.01 | - | |
| Other receivables-interest receivable | Handing Shangbo | 3,107,715.32 | - | - | - |
| Other receivables-interest receivable | Tonghui Shangbo | - | - | 92,249,275.44 | - |
| Other receivables | Handing Shangbo | 207,750,200.00 | - | 222,450,200.00 | - |
| Other receivables | Tonghui Shangbo | 258,477,909.38 | - | 880,728,548.00 | - |
| Total | 469,335,824.70 | - | 1,195,428,023.44 | - | |
| Long-term receivables | Yiwu Shanglv | 41,650,000.00 | - | 41,650,000.00 | - |
| Long-term receivables | JEBEL ALI FREE ZONE TRADER MARKET DEVELOPMENT AND OPERATION FZCO | 221,221,244.84 | - | 173,102,001.51 | - |
| Total | 262,871,244.84 | - | 214,752,001.51 | - |
(2). Payables
√Applicable □Not applicable
Unit: RMB
| Item | Related party | Closing book balance | Opening book balance |
| Accounts payable | Yiwu China Commodities City Property Service Co., Ltd. | 60,901,038.04 | - |
| Accounts payable | Zhejiang Yemai Data Technology Co., Ltd. | 176,873.43 | 176,873.43 |
| Total | 61,077,911.47 | 176,873.43 | |
| Advance from customers | Yiwu Huishang Redbud Capital Management Co., Ltd. | 226,899.53 | 82,273.06 |
| Advance from customers | CCCP | 244,915.59 | 612,288.99 |
| Advance from customers | Yiwu Digital Port Technology Co., Ltd. | 28,070.44 | 112,281.94 |
| Advance from customers | Huishang Micro-finance | 9,454.12 | 20,798.09 |
| Advance from customers | Yiwu China Commodities City Property Service Co., Ltd. | - | 32,052.85 |
| Advance from customers | Yiwu Meipinshu Supply Chain Management Co., Ltd. | - | 31,195.06 |
| Total | 509,339.68 | 890,889.99 | |
| Contract liabilities | Yiwu Digital Port Technology Co., Ltd. | 26,886.57 | 22,205.25 |
| Contract liabilities | Yiwu China Commodities City Property Service Co., Ltd. | 8,646.70 | 332.00 |
| Contract liabilities | Yiwu Security Service Co., Ltd. | 1,830.60 | 2,004.40 |
| Contract liabilities | Huishang Micro-finance | - | 7,966.42 |
| Total | 37,363.87 | 32,508.07 | |
| Other payables | Chengzhen Property | 212,000,000.00 | 200,000,000.00 |
| Other payables | Yiwu Shangfu Chuangzhi Investment Center (limited partnership) | 34,000,500.00 | 34,000,500.00 |
| Other payables | Yiwu Huishang Redbud Equity Investment Co., Ltd. | 10,000,000.00 | 4,500,000.00 |
| Other payables | CCCP | 240,000.00 | 240,000.00 |
| Other payables | MDG | 87,656.62 | 63,334.76 |
| Other payables | Yiwu Meipinshu Supply Chain Management Co., Ltd. | 57,000.00 | 57,000.00 |
| Other payables | Yiwu Digital Port Technology Co., Ltd. | 26,300.00 | 26,300.00 |
| Other payables | Huangyuan Shangbo | - | 607,600,000.00 |
| Other payables | Hangzhou Binjiang Shangbo Property Development Co., Ltd. | - | 14,700,000.00 |
| Other payables | Yiwu Shanglv | - | 75,000.00 |
| Other payables | Huishang Micro-finance | - | 33,000.00 |
| Other payables | Yiwu Gongchen Shangbo Property Co., Ltd. | - | 3,000.00 |
| Total | 256,411,456.62 | 861,298,134.76 |
7. Related-party commitments
□Applicable √Not applicable
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 prices were RMB 2.94 and RMB 2.39, respectively, both 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 |
Other statementsNil
2. Share-based payment settled with equity
√Applicable □Not applicable
Unit: RMB
| Method for determining the fair value of equity | Market price on grant day |
| instruments on the grant date | |
| Basis for determining the number of exercisable equity instruments | Determined based on the number of incentive objects that have reached the assessment target, through an annual assessment of 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 | 49,830,088.86 |
| Total amount of expenses recognized by equity-settled share payments in the current period | 11,093,878.59 |
Other statements
On December 10, 2020, the 2020 fifth extraordinary general meeting of shareholders of theCompany reviewed and approved the “Plan on the Company's Restricted Equity Incentive Plan 2020(Draft)” and its summary. A total of 50,480,000 restricted shares were granted, accounting for about
0.927% of the Company's total share capital of 5,443,214,176 shares, of which 47,920,000 shareswere granted for the first time and 2,560,000 shares were reserved. During the subscription process,10 incentive objects voluntarily waived the restrictions to be granted to them due to personal reasons.Therefore, 46,700,000 restricted shares were actually granted this time, and the number of incentiveobjects was 395. On January 15, 2021, the Company's board of directors completed the registrationof the first grant of restricted stocks.
After consideration and approval at the thirty-fifth meeting of the eighth the Board of Directorsand the ninth meeting of the eighth Board of Supervisors of the Company held on August 9, 2021, inview of the fact that among the original incentive objects granted for the first time, 6 incentive objectsincluding ZHAO Qitong no longer worked in the Company due to their position adjustments, andthree incentive objects including HOU Wenbin had resigned due to personal reasons, according tothe relevant regulations of the "Incentive Plan" and the authorization of the Fifth Provisional GeneralMeeting of Shareholders in 2020, the Board of Directors of the Company decided to repurchase andcanceled a total of 980,000 restricted shares granted to the above nine persons but yet to bereleased. The Company would repurchase and cancel the restricted shares held by theabove-mentioned 9 persons that had been granted but not yet been released at the sum of interestcalculated at RMB 2.885 per share and the fixed deposit interest rate announced by the People'sBank of China for the same period. The total amount of restricted stock repurchase funds this timewas RMB 2.852 million, and the above-mentioned repurchase funds would all be paid with theCompany's own funds.
On September 6, 2021, Zhejiang Zhicheng Certified Public Accountants (Special GeneralPartnership) issued the capital verification report (Zhezhihuiyizi [2021] No. 17): The Company hasreceived a total of RMB 5,592,600.00 for subscription of restricted shares from 31 restricted equityincentive objects, including RMB 2,340,000.00 in newly registered capital (share capital), and RMB3,252,600.00 in capital reserve. The registered capital and share capital of the Company before thecapital increase were both RMB 5,489,914,176.00, and the registered capital and share capital afterthe change were both RMB 5,492,254,176.00. During this grant registration process, in view of thefact that 3 of the incentive objects to be granted on the reserved grant date are no longer eligible forincentive objects due to their voluntary abandonment; 31 incentive objects actually subscribed thistime, and 2.34 million shares were subscribed. On November 4, 2021, the registration proceduresfor the reserved grant of restricted stocks involved in this incentive plan were completed, and theShanghai Branch of China Securities Depository and Clearing Corporation Limited issued the"Securities Change Registration Certificate".
The restricted stocks granted for the first time under the restricted equity incentive plan shouldbe vested in three terms from the first trading day after 24 months after the grant registration iscompleted until the last trading day in 60 months after the grant registration is completed. That is,after the vesting conditions have been satisfied, employees have the right to purchase stocks at thevesting price. If the vesting conditions of the restricted equity incentive plan have been satisfiedduring the vesting period, the incentive objects can apply for the ownership of stocks and be listedfor circulation.
3. Share-based payment settled with cash
□Applicable √Not applicable
4. Modification and termination of share-based payment
□Applicable √Not applicable
5. Others
□Applicable √Not applicable
XIV. Commitments and contingencies
1. Important commitments
√Applicable □Not applicable
Important external commitments, nature and amount thereof as of the balance sheet dates
Unit: RMB Yuan
| Capital commitments | June 30, 2022 | 2021 |
| Signed but not provided | 3,804,207,407.19 | 2,165,863,780.60 |
Investment commitments:
In 2017, the Group’s wholly-owned subsidiary Yiwu China Commodities City Financial HoldingsCo., Ltd. (“CCCF”) and Shanghai Fuxing Industry Group Co., Ltd. (“Fuxing Group”) jointlyestablished an industry fund Yiwu China Commodities City Fuxing Investment Center (LimitedPartnership) (hereinafter referred to as the “FoF”). The FoF as a limited partner invested in 12sub-funds including Yiwu Shangfu Chuangzhi Investment Center (limited partnership) (“ShangfuChuangzhi Fund”). CCCF subscribed for capital contribution of RMB998million in the FoF as alimited partner, accounting for 49.9% of the total capital contribution, and has paid inRMB102.92million. The unpaid portion of its subscribed capital contribution was promised to beRMB895.08million and was not subject to a term. CCCF also made capital contribution ofRMB9.8million (49% equity) to Yiwu China Commodities City Investment and Management Co., Ltd.(hereinafter referred to as the “CCCIM”), which was a general partner of the above FoF andsub-funds. Fuxing made capital contribution of 51% to and had control over CCCIM.Shangfu Chuangzhi Fund raised funds of RMB823.36million in total. The FoF has subscribedfor and paid in capital contribution of RMB205.84million as a limited partner (including the aboveRMB102.92million from CCCIM and the rest was contributed by Fuxing, the other limited partner ofthe FoF). As the other limited partner of Shangfu Chuangzhi Fund, CCCF has separately subscribedfor and paid in capital contribution of RMB617.51million. In addition, neither the Group nor CCCFhave invested in other sub-funds of the FoF. Subsequently, Shangfu Chuangzhi Fund made capitalcontribution of RMB820.54million to subscribe for the increase in the registered capital of HubeiProvincial Asset Management Co., Ltd. to acquire 22.667% equity therein. By 2019, 9 out of theabove 12 sub-funds had been deregistered.
In 2018, CCCF learned during its after-investment follow-up management that Fuxing and itsactual controller ZHU Yidong were suspected of having committed a criminal offense and the
22.667% equity held by Shangfu Chuangzhi Fund in Hubei Provincial Asset Management Co., Ltd.was frozen by the Public Security Bureau of Shanghai for a term from Sep 6, 2018 to Sep 6, 2019due to Fuxing’s contribution in the sources of the capital contribution. As of the date of this report, thefreeze period has been extended until September 2, 2022.
As of the date of this report, the Group had not received any notice of capital contribution otherthan the above contributions that had been made or any notice of action involving the Group, CCCF,FoF and its sub-funds.
In addition, as of June 30, 2022, the Group had other investment commitments totaling RMB
1.20066 billion (December 31, 2021: RMB 1.28078 billion).
2. Contingencies
(1). Important contingencies on the balance sheet dates
√Applicable □Not applicable
Unit: RMB Yuan
| Item | June 30, 2022 | 2021 |
| Contingent liabilities resulting from the guarantee provided externally | 130,383,441.89 | 158,634,169.67 |
According to relevant regulations, before the purchaser of the commercial housing sold by theGroup has obtained the property certificate, the Group shall provide the purchaser with a bankmortgage guarantee. As of June 30, 2022, the unsettled guarantee amount was RMB 4,954,833.62(December 31, 2021: RMB 5,063,333.60). Those guarantees would be released after the issuanceof the property ownership certificates and are thus little likely to incur losses. Therefore, themanagement believed that it was not necessary to make provisions for the guarantees.According to the resolution of the 15th meeting of the 7th Board of Directors on Jul 1, 2015, theGroup applied to the Yiwu Branch of ABC for an RMB750million loan for Yiwu Shanglv and providedguarantee based on its shareholding ratio. The guarantee was a joint and several liability guarantee,the maximum amount of guarantee was RMB367.5million and the term was 11 years. As of June 30,2020, Yiwu Shanglv actually borrowed RMB 255,976,751.57 (December 31, 2021: 296,505,577.63)from banks in total. According to the agreement of the guarantee contract, it assumed the guaranteeliability of RMB 125,428,608.27 (December 31, 2021: RMB 145,287,733.04) for the AgriculturalBank of China Yiwu Branch. SCO provided a counter-guarantee for this guarantee.
(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. Post-balance sheet date events
1. Important non-adjusting events
√Applicable □Not applicable
Unit: RMB
| Item | Content | Effect on financial status and operating results | Reasons for inability to estimate the effect |
| Medium-term note issuance | On July 18, 2022, the Company issued the third issue of medium-term note of RMB 500 million of Zhejiang China Commodities City Group Co., Ltd. in 2022, with a term of 3 years and annual interest payment at an interest rate of 3%. | ||
| Ultra-short-term financing bond issuance | On July 26, 2022, the Company issued 61-day Zhejiang China Commodities City Group Co., Ltd.’s 2022 ultra-short-term financing bonds (II) for RMB 1 billion at the rate of 1.89 %. | ||
| Acquiring Haier Network | On July 29, 2022, the Company completed the acquisition of Haier Network. For details, please refer to the "Announcement on the Progress of the Acquisition of 100% Equity Interests of Zhejiang Haier Network Technology Co., Ltd. and the Completion of Registration of Industrial and Commercial Changes" (L2022-040)disclosed by the |
Company on the website of the ShanghaiStock Exchange on August 3, 2022.
2. Profit distribution
□Applicable √Not applicable
3. Sales return
□Applicable √Not applicable
4. Other post-balance sheet date events
□Applicable √Not applicable
XVI. Other important events
1. Correction of previous accounting errors
(1). Retrospective restatement
□Applicable √Not applicable
(2). Prospective application
□Applicable √Not applicable
2. Debt restructuring
□Applicable √Not applicable
3. Exchange of assets
(1). Exchange of non-monetary assets
□Applicable √Not applicable
(2). Exchange of other assets
□Applicable √Not applicable
4. Annuity plan
□Applicable √Not applicable
5. Termination of operations
□Applicable √Not applicable
6. Information of divisions
(1). Determination basis and accounting policy of reporting divisions
√Applicable □Not applicable
Information of divisions is reported based on business divisions of the Group. In theidentification of region-based divisions, revenue is attributable to the divisions in the regions wherethe clients are located, and assets are attributable to the divisions in the regions where the assetsare located. As the Group’s main operating activities and operating assets are both concentrated inmainland 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 the nature ofbusiness and the products and services provided. Each business division of the Group is a businessdepartment or a subsidiary and provides the products and services that face the risk different fromthat faced by other business divisions and bring the compensations different from those brought byother business divisions. The detailed information on business divisions are summarized as follows:
(a) Market operation segment refers to the business that the Group is engaged in marketoperation, including the collection of business space usage fees and the rent of auxiliary buildingsand office buildings;
(b) The commodities sales division engages in the purchase and sale of goods such as exporttrade;
(c) The hotel service division engages in the operation of hotels including accommodation andcatering services;(d) The exhibition advertising division engages in the design, production, placement and agencyof advertisements;
(e) Other services division covers the provision of market-related auxiliary services.
The transfer pricing between divisions is made based on the prices offered to third parties andthe then prevailing market prices.
(2). Financial information of reporting divisions
√Applicable □Not applicable
Unit: RMB million
| Item | Market operation | Sales of goods | Hotel service | Exhibition and advertising | Other services | Set-offs among divisions | Total |
| Revenue from external transactions | 1,495 | 2,401 | 91 | 18 | 202 | - | 4,207 |
| Revenue from inter-division transactions | 13 | 30 | 3 | 2 | 24 | 72 | - |
| Profits before tax | 1,500 | -20 | -15 | -14 | 5 | 91 | 1,365 |
| Total assets | 39,207 | 1,133 | 449 | 156 | 5,557 | 16,295 | 30,207 |
| Total liabilities | 23,084 | 1,058 | 462 | 85 | 1,202 | 11,086 | 14,805 |
| Capital expenditures | 1,694 | 4 | - | 6 | 202 | - | 1,906 |
| Long-term equity investment in joint ventures and associates | 4,592 | 1 | - | - | 1,181 | - | 5,774 |
(3). If the Company does not have reporting divisions or is unable to disclose the total
assets and total liabilities of each division, please explain
□Applicable √Not applicable
(4). Other statements
□Applicable √Not applicable
7. Other important transactions and events that have influences on investors’ decisions
□Applicable √Not applicable
8. Others
□Applicable √Not applicable
XVII. Notes to main items in financial statements of parent company
1. Accounts receivable
(1). Disclosure based on account age
√Applicable □Not applicable
Unit: RMB
| Account age | Closing book balance |
| Within 1 year | 25,212,421.40 |
| 1 to 2 years | 120,212.00 |
| 2 to 3 years | 100,234.00 |
| Over 3 years | 291,021.46 |
| Total | 25,723,888.86 |
(2). Categorized disclosure based on the bad debt provision method
√Applicable □Not applicable
Unit: RMB
| Category | Closing balance | Opening balance | ||||||||
| Book balance | Bad debt provision | Book value | Book balance | Bad debt provision | Book value | |||||
| Amount | Proportion (%) | Amount | Provision ratio (%) | Amount | Proportion (%) | Amount | Provision ratio (%) | |||
| Accounts receivable for which bad debt provision is made individually | - | - | - | - | - | - | - | - | - | - |
| Accounts receivable for which bad debt provision is made by group | 25,723,888.86 | 100.00 | 299,142.52 | 1.16 | 25,424,746.34 | 23,657,185.16 | 100.00 | 27,502.47 | 0.12 | 23,629,682.69 |
| Among which: | ||||||||||
| Accounts receivable for which the bad debts are provided by combination of credit risk characteristics | 25,723,888.86 | 100.00 | 299,142.52 | 1.16 | 25,424,746.34 | 23,657,185.16 | 100.00 | 27,502.47 | 0.12 | 23,629,682.69 |
| Total | 25,723,888.86 | / | / | 25,424,746.34 | 23,657,185.16 | / | 27,502.47 | / | 23,629,682.69 | |
Accounts receivable for which bad debt provision is made individually:
□Applicable √Not applicable
Explanation for making bad debt provision for accounts receivable by group:
√Applicable □Not applicable
Items for which the bad debts are provided for by combination: by combination of credit riskcharacteristics
Unit: RMB
| Name | Closing balance | ||
| Accounts receivable | Bad debt provision | Provision ratio (%) | |
| Provision for bad debt by combination of credit risk characteristics | 25,723,888.86 | 299,142.52 | 1.16 |
| Total | 25,723,888.86 | 299,142.52 | 1.16 |
Standard for recognition of provision for bad debt by combination of credit risk characteristics anddescriptions:
□Applicable √Not applicable
If the bad debt provision is made according to the general model of expected credit loss, please referto the disclosure of other receivables:
√Applicable □Not applicable
Unit: RMB Yuan
| Account age | June 30, 2022 | 2021 | ||||
| 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 for the duration | |
| Within 1 year | 25,212,421.40 | 0.01 | 55.28 | 23,204,362.72 | 0.01 | 50.87 |
| 1 - 2 years | 120,212.00 | 0.29 | 343.17 | 100,234.00 | 0.29 | 286.13 |
| 2 -3 years | 100,234.00 | 7.70 | 7,722.61 | 352,588.44 | 7.70 | 27,165.47 |
| Over 3 years | 291,021.46 | 100.00 | 291,021.46 | - | 100.00 | - |
| Total | 25,723,888.86 | 299,142.52 | 23,657,185.16 | 27,502.47 | ||
(3). Provisions for bad debts
√Applicable □Not applicable
Unit: RMB
| Category | Opening balance | Amount of change during the current period | Closing balance | |
| Provision | Recovery or reversal | |||
| Bad debt provision for accounts receivable | 27,502.47 | 271,640.05 | - | 299,142.52 |
| Total | 27,502.47 | 271,640.05 | - | 299,142.52 |
In which the recovered or reversed amount is important:
□Applicable √Not applicable
(4). Accounts receivable actually written off during the current period
□Applicable √Not applicable
(5). Accounts receivable from the five debtors with the highest closing balance
□Applicable √Not applicable
(6). Accounts receivable derecognized due to transfer of financial assets
□Applicable √Not applicable
(7). Amounts of assets and liabilities formed by the transfer of accounts receivable and
continuing involvement
□Applicable √Not applicable
Other notes:
□Applicable √Not applicable
2. Other receivables
Presentation of items
√Applicable □Not applicable
Unit: RMB
| Item | Closing balance | Opening balance |
| Interest receivable | 3,107,715.32 | 92,249,275.44 |
| Other receivables | 650,325,879.32 | 1,114,837,610.55 |
| Total | 653,433,594.64 | 1,207,086,885.99 |
Other notes:
□Applicable √Not applicable
Interest receivable
(1). Classification of interest receivable
√Applicable □Not applicable
Unit: RMB
| Item | Closing balance | Opening balance |
| Cash occupation fee for receivables | 3,107,715.32 | 92,249,275.44 |
| Total | 3,107,715.32 | 92,249,275.44 |
(2). Significant overdue interest
□Applicable √Not applicable
(3). Bad debt provision
□Applicable √Not applicable
Other notes:
√Applicable □Not applicable
As of June 30, 2022, the receivable capital occupation fee was the capital occupation feecollectible by the Company for providing financial assistance to joint ventures.
Dividend receivable
(1). Dividend receivable
□Applicable √Not applicable
(2). Important dividend receivable with an account age longer than 1 year
□Applicable √Not applicable
(3). Bad debt provision
□Applicable √Not applicable
Other notes:
□Applicable √Not applicable
Other receivables
(1). Disclosure based on account age
√Applicable □Not applicable
Unit: RMB
| Account age | Closing book balance |
| Within 1 year | 230,919,141.17 |
| 1 to 2 years | 415,814,290.37 |
| 2 to 3 years | 27,547.70 |
| Over 3 years | 4,337,665.60 |
| Bad debt provision for other receivables | -772,765.52 |
| Total | 650,325,879.32 |
(2). Categorization by nature
√Applicable □Not applicable
Unit: RMB
| Nature of receivable | Closing book balance | Opening book balance |
| Financial assistance receivable from joint ventures | 466,228,109.38 | 1,103,178,748.00 |
| Reserve | 606,564.85 | 267,208.49 |
| Withholdings, deposit and | 183,491,205.09 | 11,391,654.06 |
| margin | ||
| Total | 650,325,879.32 | 1,114,837,610.55 |
(3). Bad debt provision
√Applicable □Not applicable
Unit: RMB
| Bad debt provision | Phase I | Phase 2 | Phase 3 | Total |
| Expected credit loss in the coming 12 months | Expected credit loss in the entire duration (credit has not been impaired) | Expected credit loss in the entire duration (credit has been impaired) | ||
| Balance on January 1, 2022 | 893,309.10 | 893,309.10 | ||
| Provision made in the current period | 26,791.89 | 26,791.89 | ||
| Current reversal | 147,335.47 | 147,335.47 | ||
| Balance on June 30, 2022 | 772,765.52 | 772,765.52 |
Significant changes in the book balance of other receivables with changes in loss provisions:
□Applicable √Not applicable
Basis for the bad debt provision made in the current period and for assessing whether the credit riskof financial instruments has increased significantly:
□Applicable √Not applicable
(4). Provisions for bad debts
√Applicable □Not applicable
Unit: RMB
| Category | Opening balance | Amount of change during the current period | Closing balance | |
| Provision | Recovery or reversal | |||
| Bad debt provision for other receivables | 893,309.10 | 26,791.89 | 147,335.47 | 772,765.52 |
| Total | 893,309.10 | 26,791.89 | 147,335.47 | 772,765.52 |
In which the recovered or reversed amount is important:
□Applicable √Not applicable
(5). Other receivables actually written off during the current period
□Applicable √Not applicable
Notes on the write-off of other receivables:
□Applicable √Not applicable
(6). Other receivables from the five debtors with the highest closing balance
√Applicable □Not applicable
Unit: RMB
| Debtor | Nature of receivable | Closing balance | Account age | Weight in the total closing balance of other receivables (%) | Bad debt provision Closing balance |
| Yiwu Tonghui Shangbo Real Estate Co., Ltd. | Financial assistance | 258,477,909.38 | 1-2 years | 39.70 | - |
| Yiwu Handing Shangbo Real Estate Co., Ltd. | Financial assistance | 207,750,200.00 | 1-2 years | 31.91 | - |
| Yiwu Municipal Bureau of Finance | Land bid deposit | 132,840,000.00 | Within 1 year | 20.40 | - |
| Zhejiang Yuntong Advertising Co., Ltd. | Current accounts | 596,580.00 | Over 3 years | 0.09 | 596,580.00 |
| Yiwu Power Transmission and Transformation Engineering Co., Ltd. | Current accounts | 491,207.00 | 1-2 years | 0.08 | - |
| Total | / | 600,155,896.38 | / | 92.18 | 596,580.00 |
(7). Receivables involving government grants
□Applicable √Not applicable
(8). Other receivables derecognized due to transfer of financial assets
□Applicable √Not applicable
(9). 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 subsidiaries | 4,246,947,937.33 | 570,000,000.00 | 3,676,947,937.33 | 4,190,057,937.33 | 570,000,000.00 | 3,620,057,937.33 |
| Investment in associates and joint ventures | 4,611,710,885.81 | - | 4,611,710,885.81 | 4,625,942,083.47 | - | 4,625,942,083.47 |
| Total | 8,858,658,823.14 | 570,000,000.00 | 8,288,658,823.14 | 8,816,000,020.80 | 570,000,000.00 | 8,246,000,020.80 |
(1) Investment in subsidiaries
√Applicable □Not applicable
Unit: RMB
| Investee | Opening balance | Increase in the | Decrease in | Closing balance | Current | Closing |
| current period | the current period | provision for impairment | balance of impairment provision | |||
| Yiwu China Commodities City Financial Holdings Co., Ltd. | 2,198,447,939.64 | 40,000,000.00 | - | 2,238,447,939.64 | - | - |
| Haicheng Yiwu China Commodities City Investment Development Co., Ltd. | 570,714,398.12 | - | - | 570,714,398.12 | - | 570,000,000.00 |
| Yiwu Shangbo Yuncang Enterprise Management Co., Ltd. | 300,000,000.00 | - | - | 300,000,000.00 | - | - |
| Yiwu Commodities City Gonglian Property Co., Ltd. | 200,000,000.00 | - | - | 200,000,000.00 | - | - |
| Zhejiang China Commodities City Group Commercial Factoring Co., Ltd. | 120,000,000.00 | - | - | 120,000,000.00 | - | - |
| Yiwu China Commodities City Import and Export Co., Ltd. | 101,431,713.08 | - | - | 101,431,713.08 | - | - |
| Yiwu China Commodities City Big Data Co., Ltd. | 101,431,713.10 | 613,230.13 | - | 102,044,943.23 | - | - |
| Yiwu China Commodities City Supply Chain Management Co., Ltd. | 100,796,692.53 | - | - | 100,796,692.53 | - | - |
| Yiwu China Commodities City Overseas Investment and Development Co., Ltd. | 100,790,663.70 | - | - | 100,790,663.70 | - | - |
| Yiwu China Commodities City Tourism Development Co., Ltd. | 100,476,265.41 | - | - | 100,476,265.41 | - | - |
| Yiwu China Commodities City Logistics and Distribution Co., Ltd. | 63,381,789.92 | 7,650,000.00 | - | 71,031,789.92 | - | - |
| Zhejiang Huajie Investment and Development Co., Ltd. | 61,860,722.12 | 9,150,000.00 | - | 71,010,722.12 | - | - |
| Yiwu China Commodities | 50,784,506.16 | - | - | 50,784,506.16 | - | - |
| City Information Technology Co., Ltd. | ||||||
| Hangzhou Shangbo Nanxing Property Co., Ltd. | 50,000,000.00 | - | - | 50,000,000.00 | - | - |
| Yiwu China Commodities City Exhibition Co., Ltd. | 18,857,277.74 | - | 360,000.00 | 18,497,277.74 | - | - |
| Yiwu Comprehensive Bonded Zone Operation and Management Co., Ltd. | 18,692,136.32 | 5,200,000.00 | - | 23,892,136.32 | - | - |
| Yiwu China Commodities City Assets Operation and Management Co., Ltd. | 10,756,109.75 | - | - | 10,756,109.75 | - | - |
| Yiwu China Commodities City Advertising Co., Ld. | 9,993,230.13 | - | 9,993,230.13 | - | - | - |
| Yiwu China Commodities City Research Institute Co., Ltd. | 5,795,057.77 | 3,130,000.00 | - | 8,925,057.77 | - | - |
| Zhejiang Yindu Hotel Management Co., Ltd. | 5,747,721.84 | 1,500,000.00 | - | 7,247,721.84 | - | - |
| Yiwu China Commodities City Commerce and Trade Service Training Center Co., Ltd. | 100,000.00 | - | - | 100,000.00 | - | - |
| Total | 4,190,057,937.33 | 67,243,230.13 | 10,353,230.13 | 4,246,947,937.33 | - | 570,000,000.00 |
(2) Investment in associates and joint ventures
√Applicable □Not applicable
Unit: RMB
| Investment Unit | Opening Balance | Change in the current period | Closing Balance | Closing balance of impairment provision | ||
| Decrease in investment | Investment gains or losses recognized with the equity method | Declared a cash dividend or profit | ||||
| 1. Joint ventures | ||||||
| Yiwu Shanglv | 383,668,354.21 | - | 6,573,467.38 | - | 390,241,821.59 | - |
| Yiwu Rongshang Property | 217,387,537.94 | - | 473,231,114.45 | 580,865,600.00 | 109,753,052.39 | - |
| Yiwu Chuangcheng Property | 88,063,325.80 | - | 107,911,035.49 | 60,000,000.00 | 135,974,361.29 | - |
| Others | 50,165,047.97 | - | 13,894,657.76 | - | 64,059,705.73 | - |
| Sub-total | 739,284,265.92 | - | 601,610,275.08 | 640,865,600.00 | 700,028,941.00 | - |
| 2. Associates | ||||||
| Huishang Micro-finance | 82,824,696.64 | - | 1,060,693.70 | - | 83,885,390.34 | - |
| Chouzhou Financial Lease | 426,020,849.24 | - | 35,669,149.76 | - | 461,689,999.00 | - |
| Pujiang Lvgu | 449,927,811.36 | - | 9,866,449.40 | 88,200,000.00 | 371,594,260.76 | - |
| CCCP | 2,785,883,275.44 | - | 101,129,301.72 | - | 2,887,012,577.16 | - |
| Others | 142,001,184.87 | 24,500,000.00 | 3,843,885.74 | 13,845,353.06 | 107,499,717.55 | - |
| Sub-total | 3,886,657,817.55 | 24,500,000.00 | 151,569,480.32 | 102,045,353.06 | 3,911,681,944.81 | - |
| Total | 4,625,942,083.47 | 24,500,000.00 | 753,179,755.40 | 742,910,953.06 | 4,611,710,885.81 | - |
Other notes:
Nil.
4. Operating revenue and operating cost
(1). Overview of operating revenue and operating cost
√Applicable □Not applicable
Unit: RMB
| Item | Amount in the current period | Amount in the previous period | ||
| Revenue | Cost of sales | Revenue | Cost of sales | |
| Main business | 1,286,870,280.06 | 399,897,158.60 | 1,381,597,109.86 | 380,762,791.32 |
| Other businesses | 149,950,265.32 | 44,272,476.43 | 206,449,135.92 | 48,328,145.43 |
| Total | 1,436,820,545.38 | 444,169,635.03 | 1,588,046,245.78 | 429,090,936.75 |
(2). Incomes from contracts
√Applicable □Not applicable
Unit: RMB
| Classified by type of contract | Total |
| Types of goods | |
| The use of shops in the China Commodities Cities and its supporting services | 1,251,678,340.58 |
| Hotel accommodation and catering services | 81,585,551.03 |
| Revenue from use fees | 26,106,833.33 |
| Other services | 8,738,847.96 |
| Classified by business area | |
| Chinese mainland | 1,368,109,572.90 |
| Classified by contract period | |
| Revenue confirmed at certain time point | |
| Hotel catering services | 47,609,814.93 |
| Other services | 5,417,292.40 |
| Revenue confirmed during certain time period | |
| The use of shops in the China Commodities Cities and its supporting services | 1,251,678,340.58 |
| Hotel accommodation service | 33,975,736.10 |
| Revenue from use fees | 26,106,833.33 |
| Other services | 3,321,555.56 |
| Total | 1,368,109,572.90 |
Description of the income from contracts:
√Applicable □Not applicable
The income recognized in the current year and included in the opening book value ofcontractual liabilities is as follows:
Unit: RMB yuan
| Type of contract | Current period |
| The use of shops in the China Commodities Cities and its supporting services | 1,221,787,479.88 |
| Hotel accommodation service | 7,036,462.25 |
| Total | 1,228,823,942.13 |
(3). Contract performance obligations
√Applicable □Not applicable
The information related to the performance obligations of the Group is as follows:
The use of shops in the China Commodities Cities and its supporting servicesThe contractual performance obligation is fulfilled when providing the use of shops in the ChinaCommodities Cities and the supporting services for business. For the use of shops in the ChinaCommodities Cities and the supporting services for business, the progress of contract performanceis determined based on the number of using days of the shops. Customers usually need to pay in
advance before the use of shops in the China Commodities Cities and the supporting services forbusiness are provided.
Hotel accommodation businessThe performance obligation is fulfilled when providing hotel accommodation services. For thehotel accommodation business, the progress of contractual performance is determined based on thenumber of days of stay. For hotel accommodation services, a partial deposit is collected from thecustomer first, and the 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 are provided. Thecontract price for hotel catering services is usually charged when the hotel catering services areperformed.Fixed -time paid funding servicesThe performance obligation is fulfilled when the fixed-time paid funding services are provided.For the fixed-time paid funding service, the progress of contractual performance is determined basedon the number of using days of the fund. For the fixed-time paid funding service, the contract price isusually charged regularly as agreed in the contract.
(4). Amortization to remaining contract performance obligations
□Applicable √Not applicable
Other notes:
On June 30, 2022, the transaction price allocated to the remaining performance obligations wasRMB 1,927,881,713.96. The Group expects that this amount will be recognized as an income in thecoming 5 years with the progress of relevant service provision.
5. Investment income
√Applicable □Not applicable
Unit: RMB yuan
| Item | Amount in the current period | Amount in the previous period |
| Income from long-term equity investment calculated with the equity method | 753,179,755.40 | 242,367,812.14 |
| Investment income from disposal of long-term equity investment | 883,324.49 | - |
| Investment income from disposal of held-for-trading financial assets | 29,078.03 | 42,837.72 |
| Total | 754,092,157.92 | 242,410,649.86 |
Other notes:
Nil
6. Others
□Applicable √Not applicable
XVIII. Supplements
1. Detailed statement of current non-recurring items
√Applicable □Not applicable
Unit: RMB yuan
| Item | Amount | Explanation |
| Gain or loss from the disposal of non-current assets | -54,710.90 | |
| 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 | 16,645,616.31 | |
| Cash occupation fees charged from non-financial enterprises that are recognized in the current profit or loss | 32,264,049.60 |
| 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 debt instruments, except for effective hedging during the ordinary course of business | -390,717.89 | |
| Other operating incomes or expenses | 3,443,596.86 | |
| Other profit or loss items that meet the definition of non-recurring profit or loss | 26,619.73 | |
| Less: affected amount of income tax | 10,410,076.49 | |
| affected amount of minority equity (after tax) | 1,034,205.05 | |
| Total | 40,490,172.17 |
Explanations shall be made for the non-recurring items identified by the Company according theExplanatory Announcement No. 1 on Information Disclosure by Companies Publicly OfferingSecurities – Non-recurring Items, and for the Company identifying the non-recurring itemsenumerated in the Explanatory Announcement No. 1 on Information Disclosure by CompaniesPublicly Offering Securities – Non-recurring Items as recurring items.
□Applicable √Not applicable
2. ROE and EPS
√Applicable □Not applicable
| Profits in the reporting period | Weighted average ROE（%） | EPS | |
| Basic EPS | Diluted EPS | ||
| Net profits attributable to common shareholders of the Company | 8.05 | 0.22 | 0.22 |
| Net profits attributable to common shareholders of the Company after deducting non-recurring gains and losses | 7.78 | 0.22 | 0.22 |
3. Differences in accounting data between foreign and Chinese accounting standards
□Applicable √Not applicable
4. Others
□Applicable √Not applicable
Chairman of Board of Directors: ZHAO WengeDate of approving by the Board of Directors for release: August 18, 2022Amendment
□Applicable √Not applicable