Stock code: 600415 Stock short name: 小商品城
Zhejiang China Commodities City Group
Co., Ltd.Semi-annual Report for 2024
Important Statements
I. The Board of Directors, the Board of Supervisors and the directors, supervisors andsenior management of the Company hereby warrant the truthfulness, accuracy andcompleteness of the contents of this semi-annual report, guarantee that there are nofalse representations, misleading statements or material omissions contained in thissemi-annual report, and are jointly and severally responsible for the liabilities of theCompany.
II. Directors’ absence from directors’ meetings
| Position of the absent director | Name of the absent director | Reasons for absence | Name of the entrustee |
| Director | ZHANG Leping | On business | ZHANG Lang |
III. This semi-annual report has not been audited.
IV. WANG Dong, Head of the Company, WANG Dong, Principal in charge of accounting,and ZHAO Difang, Head of the accounting department (Accounting Manager), declarethat they warrant the truthfulness, accuracy and completeness of the financial reportin the semi-annual report.
V. The profit distribution plan for the reporting period or the plan for public reservefunds into share capital that was approved by the board of directorsNo
VI. Risk statement with forward-looking representations
√Applicable □Not applicable
The forward-looking representations involved in this Report such as future plans anddevelopment strategies do not constitute the Company’s substantial commitments to investors.Investors shall watch out for the investment risks.
VII. Is the Company’s cash occupied by its controlling shareholder or any of other
affiliates for non-operational purposes?No
VIII. Has the Company provided external guarantee in violation of the prescribed
decision-making procedures?No
IX. Whether there is circumstance that more than half of the directors cannot
guarantee the authenticity, accuracy and completeness of the semi-annual reportdisclosed by the CompanyNo
X. Reminder of major risksDuring the reporting period, the Company did not have any significant risks that wouldaffect its continued operations. The Company has provided a detailed description of thepotential risks it may face in the "Potential Risks" part in Section III " Discussion and Analysis ofManagers" 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 ........................................................................ 32
SECTION V. ENVIRONMENTAL AND SOCIAL RESPONSIBILITIES ................................ 39
SECTION VI. SIGNIFICANT MATTERS ................................................................................. 40
SECTION VII. CHANGES IN SHARES AND INFORMATION OF SHAREHOLDERS .......... 52
SECTION VIII. PREFERRED SHARES .................................................................................... 59
SECTION IX. BONDS .............................................................................................................. 60
SECTION X. FINANCIAL REPORT ....................................................................................... 66
| Documents for Inspection | Accounting statements with the signatures and stamps of head of the Company, principal in charge of accounting, and head of the accounting department (Accounting Manager). |
| Original copies of all company documents and announcements publicly disclosed on the website designated by the China Securities Regulatory Commission during the reporting period |
Section I. DefinitionsFor the purpose of this Report, unless otherwise stated in the context, the following terms shallhave the 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 |
| Zhijie Yuangang | means | Zhejiang Zhijie Yuangang International Supply Chain Technology Co., Ltd. |
| CCCP | means | Yiwu China Commodities City Property Development Co., Ltd. |
| CCCF | means | Yiwu China Commodities City Financial Holdings 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. |
| The Big Data Company | means | Yiwu China Commodities City Big Data Co., Ltd. |
| Kuaijietong | means | Kuaijietong Payment Service Co., Ltd. |
| Yiwu Pay | means | A payment brand built by Kuaijietong Payment Company |
| The Company, the Listed Company, the Group, the Group Company | 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 | WANG Dong |
II. Contact information
| Board Secretary | Securities Affairs Representative | |
| Name | XU Hang | RAO Yangjin |
| Address | YIWU CCC Group Building, No. 567 Yinhai Road, Yiwu City | YIWU CCC Group Building, No. 567 Yinhai Road, Yiwu City |
| 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 | 567 Yinhai Road, Futian Sub-district, Yiwu City, Jinhua City, Zhejiang Province |
| Historical changes in the registered address of the Company | The registered address when the Company was established was No. 158 Binwang Road, Yiwu City, Zhejiang Province; In May 2006, the registered address of the Company was changed to Haiyang Business Building, No. 105 Futian Road, Yiwu City; In January 2024, the registered address of the Company was changed to No. 567 Yinhai Road, Futian Sub-district, Yiwu City, Jinhua City, Zhejiang Province. |
| Office address | YIWU CCC Group Building, No. 567 Yinhai Road, Yiwu City |
| 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. Main accounting data and financial indicators of the Company(i) Main accounting data
Unit: RMB
| Major accounting data | Jan-Jun 2024 | Jan-Jun 2023 | YoY change (%) |
| Operating revenue | 6,765,934,137.13 | 5,160,991,043.25 | 31.10 |
| Net profits attributable to shareholders of the Listed Company | 1,447,982,745.49 | 1,998,333,646.74 | -27.54 |
| Net profits attributable to shareholders of the Listed Company with non-recurring gains and losses excluded | 1,418,908,469.37 | 1,839,365,824.67 | -22.86 |
| Net cash flow from operating activities | 114,363,500.83 | 143,247,195.78 | -20.16 |
| Jun 30, 2024 | Dec 31, 2023 | Change of Jun 30, 2024 over Dec 31, 2023 (%) | |
| Net assets attributable to shareholders of the Listed Company | 18,078,864,482.54 | 17,688,393,818.20 | 2.21 |
| Total assets | 36,021,693,283.42 | 36,218,947,223.63 | -0.54 |
(ii) Major financial indicators
| Major financial indictors | Jan-Jun 2024 | Jan-Jun 2023 | YoY change (%) |
| Basic EPS (RMB) | 0.27 | 0.37 | -27.03 |
| Diluted EPS (RMB) | 0.27 | 0.37 | -27.03 |
| Basic EPS after deducting non-recurring gains and losses (RMB/share) | 0.26 | 0.34 | -23.53 |
| Weighted average ROE (%) | 7.86 | 12.30 | Down 4.44 ppt |
| Weighted average ROE after deducting non-recurring gains and losses (%) | 7.70 | 11.32 | Down 3.62 ppt |
Illustration on major accounting data and financial indicators
√Applicable □Not applicable
1. The operating revenue increased by RMB 1.605 billion YoY, mainly due to the growth ofmarket operations, commodity sales, and trade services, which increased by RMB 468 million,RMB 1.057 billion, and RMB 87 million respectively, with growth rates of 25.99%, 37.24%, and
30.63%.
2. The net profit attributable to shareholders of the Listed Company decreased by RMB 550million YoY, due to a decrease of RMB 1.051 billion in investment income and asset disposalincome, and an increase of RMB 501 million in net profit from market operations and tradeservices.
VIII. Differences in accounting data under domestic and foreign accounting
standards
□ Applicable √Not applicable
IX. Non-recurring gains and losses
√Applicable □Not applicable
Unit: RMB
| Non-recurring items | Amount | Remark (if applicable) |
| Gains and losses from the disposal of non-current assets, including the offsetting portion of the provision for impairment of assets | -111,894.84 | |
| 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 provided in a fixed amount or quantity and that have a continuous impact on the Company's gains and losses according to the national polices and certain standards | 10,645,620.69 | Please refer to the details of government subsidies included in other income for details |
| Except for effective hedging business related to the normal operation of the Company, the fair value gains and losses arising from the holding of financial assets and financial liabilities by non-financial enterprises, as well as the gains and losses arising from the disposal of financial assets and financial liabilities | -4,468,954.54 | Mainly due to gains or losses arising from the change in fair value |
| Cash occupation fees charged from non-financial enterprises that are recognized in the current profit or loss | 12,872,916.46 | Cash occupation fee for receiving financial aid |
| Profits and losses arising from external entrusted loans | 1,258,704.40 | |
| Net income from other non-operating activities | 14,967,685.21 | Mainly due to penalty income for breach of contract |
| Less: effect of income tax | 5,461,289.85 | |
| Effect of minority interest (after-tax) | 628,511.41 | |
| Total | 29,074,276.12 |
If the Company recognizes non-recurring profit and loss items that are not listed in theExplanatory Announcement No. 1 on Information Disclosure of Companies Issuing Securities tothe Public as non-recurring profit and loss items with significant amounts, and definenon-recurring profit and loss items listed in the Explanatory Announcement No. 1 on InformationDisclosure of Companies Issuing Securities to the Public as recurring profit and loss items, thereasons should be explained.
□ Applicable √Not applicable
X. Other
□ Applicable √Not applicable
Section III. Discussion and Analysis of Managers
I. Description of the industry and the Company’s main business during the reportingperiod(I) Main business of the CompanyThe Company is committed to building a shared trade service platform for small andmedium-sized enterprises in China, with a strategic positioning of a "world-class internationaltrade comprehensive service provider", continuously enriching and improving the three majorecosystems: commodity display and trading ecosystem, trade services ecosystem, supportingservice ecosystem, and trade service ecosystem, in order to reduce trade costs, shorten tradechains, improve trade efficiency, continuously create value for the circulation of smallcommodities, strengthen and consolidate the advantageous position of China's daily consumergoods supply chain in global trade, and serve the new development pattern ofdomestic-international dual circulation.The commodity display and trading ecosystem includes offline market operation andself-operated trade product sales, trade service ecosystem includes Chinagoods online serviceplatform, warehousing logistics and payment, credit reporting, factoring and other businesses,and supporting service ecosystem includes exhibition and hotel sectors.(II) Industry situationAccording to the definitions in the Guidelines for Industry Classification of ListedCompanies (revised in 2012) released by the CSRC, the Company is engaged in “BusinessService” (L72) in “Lease and Business Service” (L).
1. Situation of Yiwu market
As a prestigious global hub for small commodity trade, Yiwu International Trade City hasconsistently held a dominant position in China's comprehensive market sector for several years.Boasting substantial market turnover and an extensive array of products, it has established arobust industrial cluster that underpins the circulation of small commodities.
The influence of Yiwu market spans across 233 countries and regions globally, propellingthe growth of 2.1 million small and medium-sized enterprises. In turn, this economic enginegenerates employment opportunities for a staggering 32 million industrial workers. Thisfar-reaching influence not only solidifies Yiwu's status as a pivotal center for the global smallcommodity trade but also ensures that consumers across the globe have access to an eclecticand varied assortment of products.
2. Significant characteristics of Yiwu market
(1) Active market entities: The Yiwu market is an important practical platform for theconcept of "mass entrepreneurship and innovation". It not only drives the development of morethan 20 industrial clusters, but also attracts over 15,000 resident foreign merchants and nearly9,000 foreign-owned entities. These numbers make Yiwu an important gathering place forglobal merchants, known as the "World Supermarket".
(2) A wide range of goods: As the world's largest small commodity distribution center, Yiwumarket gathers 26 major categories and 2.1 million types of products, forming an "ocean ofsmall commodities and paradise for shoppers ". More than ten thousand new products arelaunched every day, and the quality, brand and standard of small commodities are exported tothe world, becoming the representative of "China-chic trend" and "supply place for bestsellinggoods".
(3) Innovative business scenarios: The Yiwu market is an important birthplace of innovationin trade business scenarios. The pioneering market procurement trade method (with a customssupervision method code of "1039") has driven a huge growth in Yiwu's foreign trade exports inthe past decade and has been promoted to 39 pilot units in China. New business forms such asimport transshipment, internet celebrity live streaming, and cross-border e-commerce areconstantly emerging, forming an e-commerce ecosystem for the full industry chain. Theintegration and development of the real economy and digital economy have enabled Yiwu tocontinue to lead the new trend of global trade.
(4) High-quality trade ecology: Yiwu market is the preferred place for merchants andenterprises to trade small commodities. Since the pilot of the comprehensive reform ofinternational trade, Yiwu has formed multiple national level open platforms, including the FreeTrade Zone, Comprehensive Bonded Zone, Cross-border E-commerce Comprehensive PilotZone, and Import Trade Promotion Innovation Demonstration Zone. The logistics network hascovered over 1,500 counties and cities across China and over 700 hub cities worldwide.Government, business, and life services are in line with international standards, providingcomprehensive "customs, taxation, currency exchange, transportation, warehousing andfinancing" services, with continuously optimized the business environment.
3. Situation of Yiwu market in the first half of 2024
The Yiwu market, as a key platform connecting domestic and international trade supplychains, occupies a core position in the global small commodity supply chain and plays a crucialrole in promoting internal circulation, enhancing external circulation, and serving the newdevelopment pattern of "dual circulation". As a leader and demonstration site of national marketprocurement trade method, Yiwu has maintained high-speed growth for years, effectivelystimulating the vitality of market entities and continuously improving the level of tradefacilitation.
From January to June 2024, the total import and export value of Yiwu reached RMB 324.77billion, a YoY increase of 20.7%; Among them, exports amounted to RMB 288.03 billion, a YoYincrease of 21.3%; Imports amounted to RMB 36.74 billion, a YoY increase of 16.4%. Buildingon a high base in 2023, Yiwu's total import and export volume sustained a high growth rate.Yiwu continuously gathers new momentum in foreign trade by exploring emerging markets,building high-level open platforms, and cultivating and strengthening advantageous industries.From the perspective of trade regions, in the first half of 2024, Yiwu's imports and exports to
Africa, Latin America, and ASEAN amounted to RMB 57.83 billion, RMB 53.95 billion, and RMB
33.08 billion, respectively, up 17.1%, 32.4%, and 40.2% YoY, respectively; Imports and exportsto India and Saudi Arabia amounted to RMB 16.09 billion and RMB 7.9 billion respectively, up
23.5% and 17.2% YoY, respectively.
The Company integrates market resources through digital means, connects various links inthe supply chain, improves the efficiency of commodity circulation, and promotes the iterativeupgrading of the market procurement trade method to "Version 2.0 ". Market procurement tradehas become the main force driving Yiwu's export growth. In the first half of 2024, Yiwu exportedRMB 232.87 billion through market procurement trade, a YoY increase of 28.7%, accounting for
80.8% of the total export value. In terms of regional trade, Southeast Asia, the Middle East andLatin America continue to occupy a high market share in the trade with Yiwu. Countries in the"Belt and Road" initiative and the RCEP region continue to bring new opportunities to the Yiwumarket. “AI Internationalization” and “RMB Internationalization” have become new highlights ofthe Yiwu market. From the perspective of export categories, some categories have strongoverseas demand. In the first half of the year, Yiwu exported RMB 8.39 billion of householdappliances, a YoY increase of 51.9%; The export of automotive spare parts reached RMB 3.61billion, a YoY increase of 33.3%; The export of sports goods and equipment reached RMB 5.02billion, a YoY increase of 42.3%.
In 2024, the Yiwu market has undergone the following changes due to the impact of thedomestic and overseas trade environment (data sourced from related statistics of Yiwu Index):
(1) The effect of the "Olympic Economy" continued to gain steam. Benefiting from majorsports events such as the European Cup and the 2024 Paris Olympic Games, the sales ofsports and related products such as Olympic bracelets, trophies, flags, and jerseys in themarket have been steadily increasing. In particular, the sports equipment industry in the ThirdDistrict of the International Trade City has seen significant growth in orders, with orders fromEurope accounting for over 30%.
(2) The phenomenon of "summer economy" has been thoroughly ignited. As temperaturesclimb, the demand for summer consumer goods among shoppers is intensifying. Smallappliances, apparel, and sun protection cosmetics are witnessing a surge in popularity, hitting aminor sales high in the market. In the realm of finished goods, since the onset of the secondquarter, market sales of products like sun-protective apparel, sun-blocking masks, and icesleeves have seen a remarkable upswing, with MoM growth rates surpassing 50% and YoYincreases exceeding 30%. As for raw materials, there has been a significant surge in demandfor zippers used in sun-protective clothing, with the market witnessing a YoY rise of more than20%.
(3) The peak season for Christmas supplies procurement has started ahead of schedule.Due to the prolonged sea freight duration and the strain on transportation capacity, someinternational buyers have opted to purchase ahead of schedule. Middle Eastern and European
clients, in particular, have been proactive in their approach, beginning to place advance ordersand build up their inventories as early as February, facilitated by online sample viewings. In thefirst half of 2024, the Yiwu market has seen a consistent strong performance in the sales oftraditional products, including Christmas costumes, Christmas trees, and Christmas decorations.Additionally, there has been a growing demand for more upscale products, such as Christmaslights and electric Christmas ornaments.
(4) The heat of the "beauty economy" continued to escalate. Since the dawn of 2024,press-on nails have gradually gained popularity worldwide due to its convenience in applicationand removal, as well as its re-usability, making it highly favored by consumers. A group of topmerchants such as Yanxue and Diefei have gathered in the market, significantly improving thecompetitiveness of nail products. According to the latest statistics, a range of trendy nail artstyles, including the cat eye light luxury style, the Maillard style, and the sweet cool style, havebecome particularly popular among new customers in South American countries, with ordervolumes from these regions increasing by more than 30% YoY.From January to June 2024, the express delivery volume in Yiwu reached 6.007 billionpieces, a YoY increase of 16.7%. Yiwu's express delivery volume accounted for about 7% ofChina’s national total, ranking first among county-level cities in China. Notably, the volume ofexpress deliveries destined for overseas countries and for Hong Kong, Macau, and Taiwan,reached 25.354 million pieces, a YoY increase of 17.7%. Relying on the advantages of being anational comprehensive transportation hub and a national level logistics hub, Yiwu's expressdelivery industry integrates various transportation resources such as sea, land, air, and rail tocreate a safe, reliable, independent and controllable international logistics supply chain system,providing richer and more convenient services for export of China's goods and import ofoverseas goods.As Citywalk tourism gains popularity, Yiwu has emerged as a prime destination fortravelers seeking to "roam" thanks to its rich and varied array of tourist attractions. During theMay Day holiday in 2024, Yiwu became one of the most popular county-level touristdestinations in Zhejiang Province. Tourists flocked to Yiwu International Trade City to purchaseglobal goods, tasted the "delicacies of various countries" and experienced exotic flavors inevery mouthful. Just on Chouzhou Road in Yiwu City, there’s a wide range of Middle Easternrestaurants, each with its own distinct style. The barbecue offerings here encompass a varietyof styles, including Afghan, Syrian, Iranian, Jordanian, Yemeni, Turkish, Egyptian, Pakistani,and more. It's like "the thousand and one nights" of flavors, right on the tip of your tongue. Yiwuis a dynamic city renowned for its robust B-end commercial exchanges. It has alsodemonstrated significant potential in C-end sectors like food and tourism, indicating a broadscope for future growth and development.
II. Analysis of core competitiveness during the reporting period
√Applicable □Not applicable
(I) First-mover advantagesAt the start of China’s reform and opening-up, Yiwu took the lead in establishing thecommodities market. During the recent forty years, the market has been upgraded five timesand expanded ten times and has been among the top comprehensive national markets with thehighest turnover, pointing to its remarkable first-mover advantages. As the largest commoditiesdistribution center in the world, the Yiwu commodities market provides more than 2.1 millionproducts, which fall in 26 categories and supports one-stop purchase. The market boastsenormous resources and huge 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 toimproving its influence and leading role in the industry. Its brand advantages and influence havekept enhancing.(II) Supporting services advantagesThe People’s Government of Yiwu has been providing policy support for the developmentof the market 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 advantageouslogistics service. The logistics network has full coverage in Yiwu. A large number of large-sizedinternational and domestic express delivery and logistics companies have regional distributioncenters in Yiwu, and a world-oriented goods transport and distribution network has beenestablished. Yiwu has been listed as a "national logistics hub carrier city for commercial andtrade services" by the National Development and Reform Commission and the Ministry ofTransport of the PRC.
2. Industry Support
During the recent years, thanks to the Yiwu China Commodities City, the Yiwu-centeredmanufacturing industry cluster has been developing fast, an commodities industrial belt that iscentered in Yiwu and covers Jinhua, Lishui, Quzhou, Hangzhou, Jiaxing, Taihu, Shaoxing,Ningbo, Wenzhou and Taizhou with an area of nearly 10,000 km
has been established, and abenign mechanism under which the Yiwu wholesales market and the peripheral industry clusterdevelop together has been formed.
3. Support from exhibition service
The major international trade exhibitions held by the Company’s exhibition businessdivision such as China Yiwu International Commodities Fair, China Yiwu International ForestProducts Fair, China Yiwu International Imported Commodities Fair and China Yiwu Hardwareand Electrical Expo support and cultivate vertical exhibition in multiple industries such as
stationery and textiles, have developed multiple professional and international exhibition brands,and are important national platforms for the China Commodities City to lead industrydevelopment, develop the city economy and maintain the clusters of traders and commodities.(IV) Advantages of diversified businessesThe Company has strengthened its presence in the related industries, made efforts onfinancial investment, kept developing the exhibition business, created a new e-commercemodel, developed the hotel business and also run international trade, modern logistics,advertising information, shopping and tourism businesses. It has created a group structure andprofit-making model of shared and interactive development of market resources.(V) 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 operatingcompany. The Company has developed a series of perfect management systems for marketoperation and management, accumulated rich experience in operation and management, andhas cultivated a professional management team with reasonable knowledge and expertisestructures and strategic development insights.(VI) Advantage of online and offline platform integrationThe Company’s international trade city is the global leading commodity market. TheCompany’s official Yiwu CCC website, chinagoods platform, relying on the Company’s 75,000off-line shops, through integration of online and offline services. With trade data integration asthe core driver, it meets the needs of both supply and demand parties in manufacturing, displaytransactions, warehousing and logistics, financial credit, market management and other links.(VII) Advantage of international logisticsThe Company establishes a logistics platform to replace the multi-layer freight forwardersystem, thus shortening the level of freight forwarder distribution, and improving logisticsefficiency. In contrast, the traditional foreign trade freight forwarders are divided into multiplelevels, the logistics and transportation services are not standardized, and the service pricesvary widely and are usually not the lowest price.
III. Discussion and analysis of operating status2024 marks the year of start, the year of breakthroughs, and the year of tireless efforts forthe entire city of Yiwu as it embarks on a mission to “set a model and reclaim glory.” During thereporting period, the Company's main business entered an era of simultaneous increase inquantity and price, while its innovative business ventures continued to follow a robust growthtrajectory. The Company has anchored its strategic goal of becoming a "world-classinternational trade comprehensive service provider", taking it as its responsibility to build theworld's Capital of Small Commodities with high quality and level. Within the framework of a
unified national market, it coordinates the promotion of market innovation and enterprisetransformation and upgrading, and accelerates to become a global leading enterprise incommerce and trade that empowers the mass trade of small commodities.During the reporting period, the daily average customer flow in Yiwu market was 218,800;The daily average number of foreign merchants exceeded 3,600, with a YoY growth of over80%. The number of foreign merchants has significantly increased, and the main trafficindicators of the market have all exceeded those of the same period in 2019. According to thedata released by Yiwu City, in the first half of 2024, the total volume of road, railway, and airpassenger traffic in Yiwu City reached approximately 12 million trips, a YoY increase of about15%. The number of inbound foreign merchant visits was about 250,000, showing a YoYincrease of about 95%.(I) Market operation
1. Digitalization of market operation
During the reporting period, the Company collaborated with universities to update the indexmodel, iterate the index platform website, and achieve inter-connectivity with the Chinagoodsplatform, completed the asset sorting of index data and promoted the entry of data resourcesinto the balance sheet. “Empowering Small Commodity Digital Trade Facilitation with DataElements” has been selected as one of the first 20 typical cases of “Data Element X” by theNational Data Bureau. In response to the goal of building the Dow Jones Index in the field ofsmall commodity circulation in China, the Company has formulated a three-year action plan:
In 2024, the Company will strive to improve its index model, comprehensively upgrade itsindex data system, and expand its index publishing channels, actively establishing closercooperation with domestic and foreign media. At the same time, the Company will continue topromote the entry of data assets into the balance sheet, and generate new quality productivityin the field of "data elements x commercial circulation".
In 2025, the Company will further expand its index system, innovate and develop more subindices to meet the needs of different levels, develop more diversified index applicationproducts for governments, industries, and enterprises, and attempt to develop short-term indexprediction functions to gradually expand the integration and application scope of artificialintelligence.
By 2026, the Company will strive to promote the internationalization of small commodityclassification standards and realize the trading of data assets, making the Yiwu China SmallCommodity Index a new business card in the Yiwu market and achieving Yiwu's leadingposition in the global small commodity circulation field.
(Yiwu Index 3-year Action Plan Outline)During the reporting period, the Company continuously explored the potential of dataelements, continued to leverage their empowering role, and promoted the digital transformationand reshaping of the entire chain, scenario, and format of small commodity trade. The MarketOperation Branch and the Financial Management Branch took the "Shop Management System"as the core, relied on resource information collaboration to achieve system integration inversion 4.0, classified and constructed business tags, to establish a rich and detailed market"resource library", thus achieving asset data management, further optimizing operationalefficiency, and driving market upgrade.
2. Steadily advance of the construction of the Global Digital Trade Center In the first half ofthe year, 62% of the total project volume for the first phase has been completed, androof-topping works for the market section main structure of the second phase have beencompleted. About 68% of the above-ground main structure of the commercial office buildingsection has been completed, and the construction of super high-rise buildings has started. TheCompany clarifies the network infrastructure construction plan for the global digital trade centerin the construction of intelligent markets in the digital market; actively promotes cross-bordernetwork construction and advances cross-border access product testing; jointly promotes the AIcollaboration project with the Tsinghua ModelBest team; further supplements and improves thedigitalization plan of the Global Digital Trade Center. Based on the Company's digital solution,the Company improves the overall construction and operation plan of the smart park, and usesthe property cloud platform as the digital base to achieve the transition from existingsingle-scenario intelligence to overall intelligence.
(Progress Map of the Global Digital Trade Center Project in June 2024)(II) Self-operated tradeIn the process of building a "good foreign trade product" trade service ecosystem, theCompany promotes brand layout and improves the level of trade facilitation for small andmedium-sized entities. During the reporting period, the self-operated trade volume reachedRMB 3.895 billion, a YoY increase of 37.27%. 4 new ICMALL Global Good Goods CollectionStores were opened, bringing the total number to 19. In terms of innovative foreign tradebusiness models, the Company has successfully obtained the qualification for exportingsecond-hand cars.(III) Online platformThe Company continues to explore the integration model of AI and small commodity tradebusiness, promoting the transformation and upgrading of traditional markets. In the first half ofthe year, 45 new third-party digital service products were added, bringing the total number ofdigital service products listed to 194. These products cover multiple fields such as contentcreation, trade services, warehousing and logistics, operational support, marketing strategies,enterprise management, and software tools. The Chinagoods platform has collaborated with topteams such as Tsinghua University, iFlytek, and Baidu to build a 100-member AI R&D team.Targeting the characteristics of the Yiwu market, the team has launched 5 self-developed AIproducts, covering functions such as intelligent translation, video generation, and productpublishing, including "AI digital human matrix" that enables 24-hour interactive operation; AIintelligent translator that supports 36 languages for mutual translation, breaking down languagebarriers; AI intelligent product release and AI intelligent image factory that help merchants dealwith complex and professional problems; and Xiaoshang AI that can accurately capture theneeds of buyers through intelligent Q&A, improving order fulfillment rates. At present, 17,000
users on the Chinagoods platform have deeply experienced the Xiaoshang AI series, whichhelps market merchants achieve digital upgrades in their business.
(Display of Some AI Applications)During the reporting period, the net profit of the Big Data Company was RMB 72.7937million, a YoY increase of 56.89%, and the GMV of Chinagoods was RMB 45 billion, a YoYincrease of 40.6%. There were 40,0000 new registered buyers on the Chinagoods platform,bringing the total to over 4.45 million.(IV) Digital paymentKuaijietong is committed to solving the core pain points and bottlenecks in the field ofcross-border foreign exchange settlement, continuously optimizing its payment platformfunctions, and taking practical actions to help small and medium-sized enterprises in the Yiwumarket achieve compliance in their funding channels. During the reporting period, Kuaijietongsuccessfully partnered with Industrial and Commercial Bank of China Abu Dhabi Branch tocomplete the first direct currency settlement business in the Dubai market. This signifies that
Kuaijietong has achieved a full-process closed-loop practice in the integrated cross-border RMBsettlement services both at home and abroad.In addition, Kuaijietong also works with Bank of China to promote the cross-borderapplication of e-CNY (i.e., the Digital Currency Bridge project). The application was officiallylaunched on May 30, 2024. The core goal of the Digital Currency Bridge project is to build abridge connecting central banks around the world with digital currencies, aiming to promoteefficient inter-connectivity of global financial systems. With the widespread application of digitalcurrencies, cross-border payment processes will become more convenient and efficient, andfund flows will enjoy unprecedented freedom, significantly enhancing the inclusiveness offinancial services. The operation of Digital Currency Bridge project not only brings substantialconvenience to market participants, but also provides valuable practical opportunities andexperience accumulation for central banks of various countries. This will help central banks ofvarious countries to have a deeper understanding of the development trajectory and laws ofdigital currencies, providing solid data support and theoretical basis for the formulation of theirfuture financial policies.As of June 30, the transaction volume of cross-border RMB payment business in 2024exceeded RMB 12 billion, supporting 25 different currencies and covering more than 150countries and regions. All transactions have not involved any risk dispute funds, and there havebeen no frozen card incidents, providing a solid financial infrastructure guarantee for businessowners to smoothly go overseas.During the reporting period, the net profit of Kuaijietong Company was RMB 27.381 million,a significant increase from RMB -5.7202 million for the same period of the previous year.(V) Trade performanceZhijie Yuangang has accelerated the layout of FBC "two warehouses and one route"commercial infrastructure, enhancing its digital cross-border logistics service capabilities. InMarch, it held the 2024 Cross-border Logistics Ecological Transformation and UpgradingSummit Forum and the "Zuhuopai Platform" brand launch event. The "Zuhuopai" digital logisticsfulfillment platform was launched, connecting international logistics enterprises and providingmultiple supports such as routes, warehousing, and systems for small and medium-sizedenterprises. In the first half of 2024, Zhijie Yuangang has provided 35,000 TEUs of more stableinternational logistics services with higher quality for the Yiwu market. The digital cross-bordersupply chain service fulfillment platform (Zhijie Yuangang) has been included as a key projectfor high-quality development of digital trade in Zhejiang Province in 2024.
(VI) ExhibitionDuring the reporting period, the driving effect of exhibitions on trade continued tostrengthen. Driven by the drainage effect of professional exhibitions such as the China Importand Export Fair and China Yiwu International Hardware & Electrical Appliances Fair, thenumber of buyers from outside Zhejiang Province and abroad visiting and purchasing in the
market increased. In April alone, the number of foreign merchants entering Yiwu reached61,991, exceeding that of the same period in 2019. The 8th China Yiwu International Hardware& Electrical Appliances Fair attracted 83,643 buyers, including 3,024 foreign merchants, with atotal offline transaction volume of RMB 560 million.As of the end of June, Yiwu China Commodities City Exhibition Co., Ltd. held a total of 23domestic exhibitions such as the China Yiwu International Hardware & Electrical AppliancesFair and the Yiwu Fashion Jewelry Factory Exhibition, as well as 3 overseas exhibitions incountries such as Indonesia and Cambodia, attracting over 770,000 buyers. The exhibition areawas 380,000 square meters, and the intended transaction volume was RMB 4.3 billion. TheChina Yiwu Imported Commodities Fair project has been included in the 2024 ZhejiangProvince Import High-quality Development Project Plan.(VII) HotelDuring the reporting period, the hotel business segment (including entrusted hotels)achieved revenue of RMB 227 million, a YoY increase of 1.3%, and GOP of RMB 24.7138million, a YoY increase of 4.51%. The hotel segment actively implements the integrateddevelopment strategy of "market+cultural tourism" and "food+shopping", relying on the Yiwumarket to build a comprehensive consumption scene integrating shopping, food, and tourism. Itis committed to creating a unique market cultural tourism IP to significantly enhance theattractiveness and popularity of the market cultural tourism. The "Taste Global Delicacies, BuyGlobal Products" food festival held at the end of June attracted 17 well-known foreign flavorcatering units in Yiwu city to participate. The event was brimming with attendees, and itsoverwhelming popularity led to a scarcity of tickets. The mesmerizing fusion of live dance,music, and lighting elicited exuberant cheers from the crowd, as the array of delectable food,beer, and snacks provided a veritable feast for the guests. The event surpassed allexpectations.
Significant changes in the Company's operations during the reporting period, as well as eventsthat have a significant impact or are expected to have a significant impact in the future on theCompany's operations
□ Applicable √Not applicable
IV. Operating status during the reporting period(i) Analysis of main business1 Analysis of changes in the items of the financial statements
Unit: RMB
| Item | Amount in the current report period | Amount in the same report period of the previous year | YoY change (%) |
| Operating revenue | 6,765,934,137.13 | 5,160,991,043.25 | 31.10 |
| Operating cost | 4,527,895,348.12 | 3,582,510,450.35 | 26.39 |
| Sales expenses | 92,206,144.98 | 77,763,668.49 | 18.57 |
| Administrative expenses | 218,138,951.18 | 267,899,068.22 | -18.57 |
| Financial expenses | 53,571,231.34 | 53,603,900.89 | -0.06 |
| R&D expenses | 11,759,206.64 | 10,524,249.20 | 11.73 |
| Net cash flow from operating activities | 114,363,500.83 | 143,247,195.78 | -20.16 |
| Net cash flow from investing activities | -1,323,845,089.70 | -505,539,125.40 | Not applicable |
| Net cash flow from financing activities | -738,900,347.95 | 543,680,426.49 | -235.91 |
Reasons for the change in operating revenue: The operating revenue increased by RMB 1.605billion YoY, mainly due to the growth of market operations, commodity sales, and trade services,which increased by RMB 468 million, RMB 1.057 billion, and RMB 87 million respectively, withgrowth rates of 25.99%, 37.24%, and 30.63%.Reasons for the change in net cash flow from investment activities: The net cash flow frominvestment activities decreased by RMB 818 million YoY, mainly due to a decrease of RMB 208million in net cash received from the disposal of long-term assets because of the relocation ofDigital Mall and others, and a decrease of RMB 495 million in other cash received related toinvestment activities because of the pre-allocation of funds of joint ventures and others.Reasons for the change in net cash flow from financing activities: The net cash flow fromfinancing activities decreased by RMB 1.283 billion YoY, mainly due to a YoY decrease of RMB
1.15 billion in the net cash flow from financing.
2 Details of material changes in the business types, the components or sources of
profits of the Company in this reporting period
□ Applicable √Not applicable
(ii) Material changes in profits caused by non-main businesses
□ Applicable √Not applicable
(iii) Analysis of assets and liabilities
√Applicable □Not applicable
1. Status of assets and liabilities
Unit: RMB
| Item | Closing balance of the current period | As a percentage of total assets at the end of the current period | Closing balance of the prior corresponding period | As a percentage of total assets at the end of the prior corresponding period (%) | YoY change (%) | Reasons for change |
| Cash and cash equivalents | 979,696,870.94 | 2.72 | 2,922,735,320.61 | 8.07 | -66.48 | Due to the repayment of interest-bearing liabilities |
| Prepayments | 1,933,879,454.57 | 5.37 | 986,062,615.10 | 2.72 | 96.12 | Mainly due to the growth of the product sales and the increase in advance payment |
| Inventories | 1,897,027,952.53 | 5.27 | 1,247,244,380.91 | 3.44 | 52.10 | Mainly due to increased development costs and inventory of goods |
| Development expenses | 11,157,791.11 | 0.03 | 18,648,441.93 | 0.05 | -40.17 | Mainly due to transfer to intangible assets in the current period |
| Advance receipts | 361,888,036.98 | 1.00 | 602,364,396.64 | 1.66 | -39.92 | Mainly due to the decrease in advance receipts of merchant payment during the current period |
| Payroll payable | 17,782,397.68 | 0.05 | 148,473,258.54 | 0.41 | -88.02 | Mainly due to the distribution of merit pay for 2023 |
| Non-current liabilities due within one year | 1,767,945,699.70 | 4.91 | 179,140,794.24 | 0.49 | 886.90 | Mainly due to the transfer-in of interest-bearing liabilities due within one year |
| Bonds payable | 1,999,398,922.23 | 5.55 | 3,498,452,484.47 | 9.66 | -42.85 | Mainly due to transfer-out of medium-term notes due within one year |
Other statementsNil
2. Overseas assets
√Applicable □Not applicable
(1) Scale of assets
Among them, overseas assets were RMB 503 million, accounting for 1.40% of the total assets.
(2) Explanation of 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, 2024 | December 31, 2023 |
| Cash and cash equivalents | 16,594,295.29 | 12,556,381.42 |
| Inventories | 8,925,585.77 | 8,925,585.77 |
| Long-term equity investment | 102,918,559.00 | 102,918,559.00 |
| Other non-current financial assets | 631,520,588.85 | 631,520,588.85 |
| Other current assets | 399,764,547.68 | 313,869,496.74 |
| Total | 1,159,723,576.59 | 1,069,790,611.78 |
The situation of restricted assets can be found in Financial Report Note VII. 31. RestrictedAssets of Ownership or Use Rights in Section X.
4. Other notes
□ Applicable √Not applicable
(iv) Analysis of investments
1. Overall analysis of external equity investment
√Applicable □Not applicable
As of June 30, 2024, the total amount of external investments was RMB 8,998.438 million(including RMB 11.6408 million in held-for-trading financial assets, RMB 6,938.8045 million inlong-term equity investments, RMB 555.6431 million in other equity instrument investments,and RMB 1,492.3496 million in other non-current financial assets), a decrease of RMB 17.9397million, or 0.20%, from RMB 9,016.3777 million (including RMB 15.1309 million inheld-for-trading financial assets, RMB 7,022.7795 million in long-term equity investments, RMB
556.8974 million in other equity instrument investments, and RMB 1,421.5699 million in othernon-current financial assets) at the end the previous year. The main changes are as follows:
I. At the end of the reporting period, held-for-trading financial assets decreased by RMB
3.4901 million from the end of the previous year, which was due to a decrease of RMB 3.4901million in fair value changes during the reporting period.
II. At the end of the reporting period, long-term equity investment decreased by RMB
83.975 million from the end of the previous year, mainly due to:
1. The net decrease of RMB147.7909 million in investment costs, which was due to anincrease of RMB 22.4591 million in investment funds to investees such as JEBEL ALI FREEZONE TRADER MARKET DEVELOPMENT AND OPERATION FZCO during the reporting
period, and the recovery of RMB 170.25 million in investment funds to investees such as YiwuHongyi Equity Investment Fund Partnership.
2. The net increase of RMB 63.8159 million in the accrued income by equity method andothers, mainly due to RMB 98.3488 million in the accrued investment income by equity method,and RMB 34.75 million in dividends from Yiwu Hongyi Equity Investment Fund Partnership(Limited Partnership) during the reporting period.
III. At the end of the reporting period, the investment in other equity instruments decreasedby RMB 1.2543 million from the end of the previous year, due to the change in fair value ofShenwan Hongyuan Group Co., Ltd. during the reporting period.
IV. At the end of the reporting period, other non current financial assets increased by RMB
70.7797 million compared to the end of the previous year. This was due to an increase of RMB
21.7182 million in investment from MASAI MARA TECHNOLOGY LTD, an increase of RMB 60million in investment to Suzhou Xiangzhong Entrepreneurship Investment Partnership (LimitedPartnership), the recovery of RMB 9.7385 million in investment from Nantong ZijinghuatongEquity Investment Partnership (Limited Partnership), and a decrease of RMB 1.2 million fromcancellation of Yiwu Smart Transportation Co., Ltd.
(1).Major equity investments
√Applicable □Not applicable
Unit: RMB10,000
| Invested company name | Main business | Whether the target is mainly engaged in investment business | Investment method | Investment amount | Shareholding ratio | Whether to consolidate financial statements | Statement item (if applicable) | Source of funds | Partners (if applicable) | Investment period (if any) | Progress as of balance sheet date | Estimated earnings (if any) | Impact on current profit or loss | Whether involved in litigation | Disclosure date (if any) | Disclosure index (if any) |
| Suzhou Xiangzhong Venture Capital Partnership (Limited Partnership) | Venture capital (limited to investment in unlisted enterprises); Equity investment | Yes | Other | 6,000.00 | 13.70% | No | Other non-current financial assets | Self-owned Fund sources | Taicang Weizhong Investment Management Co., Ltd., etc. | Not applicable | Accumulated investment of RMB 160 million | No | Feb 10, 2021 Nov 19, 2020 Nov 18, 2020 | Nil | ||
| Total | / | / | / | 6,000.00 | / | / | / | / | / | / | / | / | / | / |
(2).Major non-equity investments
√Applicable □Not applicable
Unit: RMB10,000
| Item | Project amount | Progress | Investment amount during the | Cumulative actual investment |
| current period | amount . | |||
| The Yiwu Comprehensive Bonded Zone Project | 624,250.00 | The construction of the lower structure of the A-B overpass in the comprehensive protection zone has been completed, and all other projects have been completed and accepted. Zones A, B, and D have been put into use. | 4,008.12 | 435,748.16 |
| Logistics Park S2 | 108,000.00 | Completed and accepted. | 8,007.27 | 74,093.26 |
| Logistics Park S3 | 132,000.00 | Completed and accepted. | 14,509.36 | 97,597.76 |
| Yiwu International Digital Logistics Market | 113,600.00 | Completed and accepted. | 6,417.49 | 83,179.76 |
| Global Digital Free Trade Center | 832,082.00 | 62% of the total project volume for the first phase has been completed, and roof-topping works for the market section main structure of the second phase have been completed. About 68% of the above-ground main structure of the commercial office building section has been completed, and the construction of super high-rise buildings has started. | 8,747.59 | 289,684.70 |
(3).Financial assets measured at fair value
√Applicable □Not applicable
Unit: RMB10,000
| Category of assets | Opening balance | Profit and loss from changes in fair value in the current period | Cumulative fair value changes included in equity | Current provision for impairment | Current purchase amount | Sale/redemption amount in current period | Other changes | Closing balance |
| Held-for-trading financial assets | 1,513.09 | -349.01 | - | - | - | - | - | 1,164.08 |
| Other equity instruments investment | 55,689.74 | - | 151.33 | - | - | - | -125.43 | 55,564.31 |
| Other non-current financial assets | 142,156.99 | - | - | - | 8,171.82 | 1,093.85 | - | 149,234.96 |
| Total | 199,359.82 | -349.01 | 151.33 | - | 8,171.82 | 1,093.85 | -125.43 | 205,963.35 |
Securities Investment
√Applicable □Not applicable
Unit: RMB10,000
| Securities | Security code | Security abbreviation | Initial investment cost | Source of funds | Opening book value | Profit and loss from changes in fair value in the current period | Cumulative fair value changes included in equity | Current purchase amount | Sales amount in current period | Profit and loss from investment in current period | Closing book value | Accounting item |
| Stocks | 000166 | Shenwan Hongyuan | 55,362.54 | Self-owned funds | 55,689.74 | - | 151.33 | - | - | - | 55,564.31 | Other equity instruments investment |
| Stocks | 600278 | Oriental Venture | 5,000.00 | Self-owned funds | 1,513.09 | -349.01 | - | - | - | - | 1,164.08 | Held-for-trading financial assets |
| Stocks | 833979 | Tiantu Investment | 15,519.21 | Self-owned funds | 3,717.19 | - | - | - | - | - | 3,717.19 | Other non-current financial assets |
| Total | / | / | 75,881.75 | / | 60,920.02 | -349.01 | 151.33 | - | - | - | 60,445.58 | / |
Explanation of securities investment
□ Applicable √Not applicable
PE investment
√Applicable □Not applicable
At the end of this reporting period, the book value of private equity fund investments was RMB 1,272,744,900, an increase of RMB 50.2615 millionfrom RMB 1,222,483,400 at the end of the previous year. This was due to the addition of RMB 60 million to Suzhou Xiangzhong Venture CapitalPartnership (Limited Partnership) and the recovery of RMB 9.7385 million from Nantong Redbud Huatong Equity Investment Partnership (LimitedPartnership).
Derivatives investment
□ Applicable √Not applicable
(v) Major sales of assets and equity
√Applicable □Not applicable
The Company held the 18th meeting of the 9th Board of Directors on April 22, 2024, andthe 2023 Annual Shareholders' Meeting on May 23, 2024. The Proposal on Wholly-ownedSubsidiary’s Proposed Equity Transfer and Related Transaction was approved, and it wasagreed that the wholly-owned subsidiary Big Data Company and the controlling shareholderCCCH would sign an Equity Transfer Agreement, agreeing that Big Data Company wouldtransfer 100% of its equity in Yiwu Xingchen Enterprise Management Co., Ltd. to CCCH. Fordetails, please refer to the Announcement on Wholly-owned Subsidiary’s Proposed EquityTransfer and Related Transaction (L 2024-020), Announcement on the Progress ofWholly-owned Subsidiary’s Proposed Equity Transfer (L 2024-028), and Announcement on theCompletion of Change Registration with Market Regulation Authorities for Equity Transfer ofWholly-owned Subsidiary (L 2024-029) disclosed by the Company on the Shanghai StockExchange website on April 23, 2024, July 10, 2024, and July 20, 2024, respectively. The equitytransfer has been fully completed.
(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 | 276,480.69 | 258,619.40 | -2,099.38 |
| Haicheng Company | 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 | 188,582.64 | -110,770.92 | -5,890.49 |
| Yiwu Shangbo Yuncang Enterprise Management Co., Ltd. | Enterprise management; property management, etc. | 30,000.00 | 132,667.02 | 49,229.88 | -1,074.91 |
| Yiwu Shangcheng Gonglian Enterprise Management Co., Ltd. | Enterprise management; Real estate development and operation, etc. | 20,000.00 | 16,242.96 | 15,756.41 | -123.30 |
| Kuaijietong Payment Service Co., Ltd. | Internet payment, cross-border RMB, cross-border foreign exchange, etc. | 18,000.00 | 62,658.94 | 17,996.24 | 2,738.10 |
| Yiwu Xingchen Enterprise Management Co., Ltd | Enterprise management; Enterprise management consulting | 15,000.00 | 269,442.05 | 12,095.75 | -0.11 |
| Yiwu China Commodities City Import and Export Co., Ltd. | Domestic trade and international trade | 10,000.00 | 223,717.33 | 6,731.69 | -805.16 |
| 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 | 52,017.34 | 27,770.52 | 7,279.37 |
| Yiwu China Commodities City Supply Chain Management Co., Ltd. | Supply chain management service | 10,000.00 | 15,490.29 | 6,105.04 | -854.02 |
| Zhejiang Yiwugou E-commerce Co., Ltd. | Computer software, multimedia technologies, computer network and application, and wholesale & retail | 10,000.00 | 16,191.77 | 13,541.03 | 1,119.34 |
| Yiwu China Commodities City Property Development Co., Ltd. | Real estate development and sale | 500,000.00 | 2,339,132.01 | 651,232.83 | -1,594.92 |
| Yiwu Hongyi Equity Investment Fund Partnership (limited partnership) | Investment management, equity investment, asset management and investment consulting | 200,100.00 | 143,380.84 | 143,366.88 | 271.23 |
| Zhejiang Chouzhou Financial Lease Co., Ltd. | Financial lease service, and transfer of financial lease assets | 100,000.00 | 2,077,490.10 | 241,915.68 | 20,777.69 |
| Yiwu Shanglv Investment Development Co., Ltd. |
Industrial investment, investment management, property services, parking lotoperation and management, commercial marketing planning, businessmanagement consulting, mall operation and management, etc.
| 80,000.00 | 130,494.82 | 96,802.46 | 4,791.51 | ||
| Pujiang Lvgu Property Co., Ltd. | Real estate development and sale | 70,000.00 | 114,682.66 | 80,152.69 | 9,453.00 |
| Zhijie Yuangang | International cargo transportation agency by sea; international cargo transportation agency by air; international cargo transportation agency by land; | 55,556.00 | 69,362.83 | 37,797.48 | -2,518.95 |
| domestic cargo transportation agency; domestic shipping agency; general cargo warehousing services, etc. | |||||
| 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 | 218,445.13 | 189,489.54 | 774.37 |
(vii) Structured entities controlled by the Company
□ Applicable √Not applicable
V. Other disclosure matters(i) Potential risks
√Applicable □Not applicable
1. Macroeconomic fluctuation risk. The profitability of the Company's main businesses suchas market operations, hotel exhibitions, and product sales is significantly correlated with themacroeconomic cycle. If global economic growth is sluggish and trade volume shrinks, it willlead to a decrease in the overall prosperity of the Yiwu small commodity market, which will havea negative impact on shop leasing and related businesses.
2. Risk of insufficient reserves of talents. With the acceleration of market transformationand the expansion of the Company’s business, and with the expansion of international trade,warehousing and logistics, supply chain, overseas development, information data, industrialinvestment, and business operations, the Company may face the risk of insufficient reserves ofprofessional talents and inter-disciplinary talents.
3. External uncertainty. Geopolitical conflicts have caused increased uncertainty ininternational trade, and the development of global market trade is more complicated and severethan before; new technologies are accelerating to breed new opportunities, and new trademodels and new formats are constantly emerging.
(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 |
| The first extraordinary general meeting of shareholders in 2024 | Jan 23, 2024 | www.sse.com.cn | Jan 24, 2024 | See the resolution announcement for details |
| 2023 Annual General Meeting of Shareholders | May 23, 2024 | www.sse.com.cn | May 24, 2024 | See the resolution announcement for details |
The preferred shareholders whose voting rights had been restituted requested to convene anextraordinary general meeting of shareholders
□ Applicable √Not applicable
Statement on shareholders’ meetings
√Applicable □Not applicable
1. The first extraordinary general meeting of shareholders in 2024 approved the proposalson changing registered capital and revising the Articles of Association, revising the Rules ofProcedure for Directors’ Meeting, revising the External Guarantee Management System,revising the Rules of Procedure for Shareholders' Meetings, revising the Decision andImplementation System for Related-party Transactions, and formulating the IndependentDirector Work System.
2. The 2023 Shareholders' Meeting approved the 2023 Board of Directors Work Report,2023 Board of Supervisors Work Report, 2023 Annual Report and Summary, 2023 FinalAccount Report, 2024 Financial Budget Report, 2023 Profit Distribution Plan, Proposal on theIssuance of Various Debt Financing Instruments in the Next 12 Months, Proposal on theRedemption of Remuneration for Some Directors of the Company in 2022, and Proposal onWholly-owned Subsidiary’s Proposed Equity Transfer and Related Transaction.
II. Changes in directors, supervisors, and senior management of the Company
√Applicable □Not applicable
| Name | Title | Change |
| WANG Dong | Chairman of the Board of Directors | Election |
| WANG Dong | General Manager | Leaving office |
| ZHAO Wenge | Chairman of the Board of Directors | Leaving office |
| ZHANG Qizhen | Vice General Manager | 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 share capitalPlan for profit distribution or capital reserve into share capital made in the current period
| Whether to distribute profits or capitalize the capital reserve | No |
| Number of bonus shares for every 10 shares | 0 |
| Dividend payout per 10 shares (RMB) (including tax) | 0 |
| Number of shares converted from the capitalization of capital reserve for every 10 shares | 0 |
| Explanation of the plan for profit distribution or capital reserve into share capital | |
| Nil | |
IV. Incentive stock option plans, employee stock ownership plans and other employeeincentives granted by the Company and the impact thereof(i) Related equity incentive matters that have been disclosed in the provisionalannouncement without progress or change in subsequent implementation
√Applicable □Not applicable
| Overview of the matter | Query website |
| On October 23, 2020, the 23rd meeting of the 8th board of directors of the Company passed the Proposal on the Company's 2020 Restricted Stock Incentive Plan (Draft) and Summary, Proposal on the Measures for the Evaluation and Management of the Implementation of the Company's 2020 Restricted Stock Incentive Plan, Proposal on Requesting the General Meeting of Shareholders to Authorize the Board of Directors to Handle Issues Related to Equity Incentives. The independent directors of the Company issued relevant independent opinions. On October 23, 2020, the sixth meeting of the eighth Board of Supervisors of the Company deliberated and approved the Proposal on the Company's 2020 Restricted Stock Incentive Plan (Draft) and its Summary, The Proposal on the Implementation Evaluation and Management Measures for the Company's 2020 Restricted Stock Incentive Plan, Proposal on Verification of the List of Incentive Objects of the Company's 2020 Restricted Stock Incentive Plan. The board of supervisors issued relevant verification opinions. Independent financial consultants, lawyers and other intermediary agencies issued corresponding opinions. | For details, please refer to the Company's announcement on the website of the Shanghai Stock Exchange (www.sse.com.cn) on October 24, 2020. |
| On November 18, 2020, it received the Approval for Approving Zhejiang China Commodity City Group Co., Ltd. to implement the 2020 restricted stock incentive plan issued by the State-owned Assets Supervision and Administration Office of the | For specific details, please refer to the announcement disclosed by the Company on the Shanghai Stock Exchange website (www.sse.com.cn) |
| People's Government of Yiwu City, forwarded by Yiwu China Commodity City Holdings Ltd. (Ref: Yiwu SASAO〔2020〕51). | on November 20, 2020. |
| From November 20, 2020 to November 29, 2020, the list of incentive objects and positions of the 2020 restricted stock incentive plan were internally publicized. Within the time limit of the publicity, the board of supervisors of the Company did not receive any objection from any organization or individual or bad feedback, without feedback record. On November 30, 2020, the Board of Supervisors of the Company issued the Examination Opinions and Public Statement of the Board of Supervisors on the List of Incentive Objects of the Company's 2020 Restricted Stock Incentive Plan. | For details, please refer to the Company's announcement on the website of the Shanghai Stock Exchange (www.sse.com.cn) on December 1, 2020. |
| On December 10, 2020, the Company's 2020 Fifth Provisional General Meeting of Shareholders deliberated and approved the “Proposal on the Company's 2020 Restricted Stock Incentive Plan (Draft)’ and Summary”, the “Proposal on the Measures of Assessment and Management of Implementation of Company’s 2020 Restricted Stock Incentive Plan”, and the “Proposal on Requesting the General Meeting of Shareholders to Authorize the Board of Directors to Deal with Equity Incentive Related Matters”, and disclosed the “Self-examination Report on the Trades of Company’s Stocks by Insiders of Company’s 2020 Restricted Stock Incentive Plan”. | For details, please refer to the Company's announcement on the website of the Shanghai Stock Exchange (www.sse.com.cn) on December 11, 2020. |
| On December 11, 2020, the 26th meeting of the 8th board of directors of the Company 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 7th meeting of the Company's 8th board of supervisors passed the Proposal on Granting Restricted Stocks to Incentive Objects for the First Time. The Board of Supervisors issued the Verification Opinions of the Board of Supervisors on Matters Related to the First Grant of the Company's 2020 Restricted Stock Incentive Plan. Independent financial consultants, lawyers and other intermediary agencies issued corresponding opinions. | For details, please refer to the Company's announcement on the website of the Shanghai Stock Exchange (www.sse.com.cn) on December 12, 2020. |
| On January 15, 2021, the Company received the Securities | For details, please refer to the Company's |
| 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. | 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 8th board of directors 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 independent directors of the Company issued relevant independent opinions. On August 9, 2021, the 9th meeting of the 8th 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 Stock Incentive Plan in 2020. | For details, please refer to the Company's announcement on the website of the Shanghai 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 reviewed and approved the "Proposal on Adjusting the Repurchase Price of Restricted Stocks and the Repurchase and Cancellation of Some Restricted Stocks", and the independent directors of the Company issued a statement on | For details, see the Company's announcement on the website of the Shanghai Stock Exchange (www.sse.com.cn) on July 20, 2022. |
| this independent opinion expressing consent. 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". | |
| On October 18, 2022, 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 October 21, 2022, 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 October 19, 2022. |
| On December 28, 2022, the 6th Meeting of the 9th Board of Directors of the Company passed the "Proposal on the Satisfaction of the Unlocking Conditions for the First Unlocking Period of the First Grant Part of the 2020 Restricted Stock Incentive Plan ". The independent directors of the Company have issued independent opinions expressing agreement. On December 28, 2022, the 2nd Meeting of the Company's 9th Board of Supervisors passed the "Proposal on the Satisfaction of the Unlocking Conditions for the First Unlocking Period of the First Grant Part of the 2020 Restricted Stock Incentive Plan". The Board of Supervisors issued the "Verification Opinion on the Satisfaction of the Unlocking Conditions for the First Unlocking Period for the First Grant Part of the 2020 Restricted Stock Incentive Plan". | For details, see the Company's announcement on the website of the Shanghai Stock Exchange (www.sse.com.cn) on July 20, 2022. |
| On August 17, 2023, the 12th Meeting of the 9th Board of Directors of the Company approved the Proposal on Adjusting the Repurchase Price of Restricted Stocks and Repurchasing and Cancelling Some Restricted Stocks. The independent directors of the Company expressed their independent opinion of agreement on this. On August 17, 2023, the 5th Meeting of the 9th Board of Supervisors of the Company approved the Proposal on Adjusting the Repurchase Price of Restricted Stocks and Repurchasing and Cancelling Some Restricted Stocks. | For specific details, please refer to the announcement disclosed by the Company on the Shanghai Stock Exchange website (www.sse.com.cn) on August 19, 2023. |
| On October 19, 2023, the 13th Meeting of the 9th Board of | For specific details, |
| Directors of the Company approved the Proposal on the Satisfaction of the Unlocking Conditions for the First Unlocking Period of the Reserved Grant Part of the 2020 Restricted Stock Incentive Plan. The independent directors of the Company have issued independent opinions expressing agreement. On October 19, 2023, the 6th Meeting of the 9th Board of Supervisors of the Company approved the Proposal on the Satisfaction of the Unlocking Conditions for the First Unlocking Period of the Reserved Grant Part of the 2020 Restricted Stock Incentive Plan. The Board of Supervisors issued Verification Opinion on the Satisfaction of the Unlocking Conditions for the First Unlocking Period of the Reserved Grant Part of the 2020 Restricted Stock Incentive Plan. | please refer to the announcement disclosed by the Company on the Shanghai Stock Exchange website (www.sse.com.cn) on October 20, 2023. |
| On November 8, 2023, the Company applied to Shanghai Branch of China Securities Depository and Clearing Corporation for the repurchase and cancellation of restricted stocks that had been granted to some resigned employees but still under lock-up. On November 20, 2023, the Company received a Securities Change Registration Certificate issued by Shanghai Branch of China Securities Depository and Clearing Corporation, and completed the registration for the repurchase and cancellation of restricted stocks. | For specific details, please refer to the announcement disclosed by the Company on the Shanghai Stock Exchange website (www.sse.com.cn) on November 16, 2023. |
| On December 28, 2023, the 14th Meeting of the 9th Board of Directors of the Company approved the Proposal on the Satisfaction of the Unlocking Conditions for the Second Unlocking Period of the First Grant Part of the 2020 Restricted Stock Incentive Plan. On December 28, 2023, the 7th Meeting of the 9th Board of Supervisors of the Company approved the Proposal on the Satisfactio`n of the Unlocking Conditions for the Second Unlocking Period of the First Grant Part of the 2020 Restricted Stock Incentive Plan. The Board of Supervisors issued Verification Opinion on the Satisfaction of the Unlocking Conditions for the Second Unlocking Period of the First Grant Part of the 2020 Restricted Stock Incentive Plan. | For specific details, please refer to the announcement disclosed by the Company on the Shanghai Stock Exchange website (www.sse.com.cn) on December 29, 2023. |
(ii) Incentives that have not been disclosed in the temporary announcements or hadfurther 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 Responsibilities
I. Environmental issues(i) Description of the environmental protection status of the Company and its main
subsidiaries that are key pollutant discharging units announced by theenvironmental protection authorities
□ Applicable √Not applicable
(ii) Description of the environmental protection status of the companies other than thekey pollutant discharging units
□ Applicable √Not applicable
(iii) Further progress or change of the environmental issues disclosed during thereporting period
□ Applicable √Not applicable
(iv) Relevant information that is conducive to protecting ecology, preventing pollution,and fulfilling environmental responsibilities
□ Applicable √Not applicable
(v) Measures taken to reduce their carbon emissions during the reporting period andthe effect
√Applicable □Not applicable
During the reporting period, the Company's Yiwu International Trade City used clean energy forpower generation, reducing emissions of approximately 10,100 tons of carbon dioxideequivalent.
II. Status of consolidation and expansion of the results of poverty alleviation, ruralrevitalization and other specific work
□ Applicable √Not applicable
Section VI. Significant matters
I. Fulfillment of commitments(i) Commitments made by the actual controller, shareholders, affiliates and acquirer of the Company, the Company itself and other relatedparties during the reporting period or as of the reporting period
□ Applicable √Not applicable
II. The Company’s funds occupied by its controlling shareholders or any of other affiliates for non-operational purposes during thereporting 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
√ During the period, the Company had major litigations or arbitrations □ During the period, the Company did not have any major litigations orarbitrations(i) Litigations and arbitrations that 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) |
| Beijing Urban Construction Group Co., Ltd. | The Company | Nil | Litigation | Dispute over construction project contract (2024) Z 07 MC No. 534 | 35,636.15 | No | Hearings have not been held | ||
| Yiwu China Commodities City Supply Chain Management Co., Ltd. | Shizuishan Shengyuze Asset Management Co., Ltd. | Nil | Litigation | Contract dispute (2024) N 0202 MC No. 514 | 1,166.06 | No | Judgement for the first instance has been made, the Company has appealed, and the hearing for the second instance has not been held yet | ||
| Ying Jianhua | The Company, third party Shenzhen Pengrun Construction Group Co., | Nil | Litigation | Dispute over construction project construction contract (2022) Z 0782 MSQT No. 18007 | 836.31 | No | Hearings have not been held | ||
| Ltd. | |||||||||
| The Company | Luo Haiquan, Huang Shuiying, third party: Longchuan Yuegang Industrial Co., Ltd. | Nil | Litigation | Dispute case involving shareholders harming the interests of the Company's creditors (2023) Y 1622 MC No. 2752 | 300 | No | The hearing for the second instance has been held, but judgement has not been made yet | ||
| Zhejiang China Small Commodities City Group Co., Ltd. CCC Hotel | Yiwu Junhuhui Entertainment Co., Ltd. | Nil | Litigation | Disputes over Housing Lease Contracts (2024) Z 0782 MC No. 9083 | 554.66 | No | Judgment has been made | I. The defendant Yiwu Junhuhui Entertainment Co., Ltd. shall pay the plaintiff Zhejiang China Commodities City Group Co., Ltd. CCC Hotel a rent of RMB 5,330,000 and a penalty of RMB 334,400 for the period from April 1, 2023 to June 21, 2024; II. The litigation fee is RMB 25,313 (halved), shall be borne by the defendant Yiwu Junhuhui Entertainment Co., Ltd. | The litigation amount has been recovered |
(iii) Other notes
□ Applicable √Not applicable
VIII. Information of the Listed Company and its directors, supervisors, senior
management, controlling shareholder, and actual controller suspected of violationsof 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. Significant related transactions(i) Related transactions relating to regular corporate operation
1. Matters that have been disclosed in the temporary announcements and had nofurther progresses or changes
□ Applicable √Not applicable
2. Matters that have been disclosed in the temporary announcements but had furtherprogresses or changes
□ Applicable √Not applicable
3. Matters that have not been disclosed in the temporary announcements
√Applicable □Not applicable
Unit: RMB
| Related counterparty | Relationship | Type of related-party transaction | Contents of related-party transaction | Pricing principle | Price of related-party transaction | Amount of related-party transaction | Percentage in the amount of similar transactions (%) | Settlement method | Market price | Reasons for the large difference between the price of the transaction and reference market price |
| Yiwu China Commodities City Property Service Co., Ltd. | Subsidiary of the Company’s largest shareholder | Acceptance of labor service | Property service fee and greening maintenance fee | Market price | 110,312,803.36 | 110,312,803.36 | 87.69 | Account transfer | 110,312,803.36 | |
| Yiwu Security Service Co., Ltd. | Subsidiary of controlling shareholder of the Company’s largest shareholder | Acceptance of labor service | Security service fee | Market price | 9,059,886.19 | 9,059,886.19 | 7.20 | Account transfer | 9,059,886.19 | |
| Yiwu Shangbo Yungu Enterprise Management Co., Ltd. | Subsidiary of the Company’s largest shareholder | Acceptance of labor service | Construction fee | Market price | 5,203,100.00 | 5,203,100.00 | 4.14 | Account transfer | 5,203,100.00 | |
| Yourworld International Conference Center, subordinated to Yiwu Market | Branch of Controlling shareholder of the Company’s largest | Other inflows | Entrusted management and license fees | Negotiated price | 1,220,016.70 | 1,220,016.70 | 0.97 | Account transfer | 1,220,016.70 |
| Development Group | shareholder | ||||||||
| Total | / | / | 125,795,806.25 | 100.00 | / | 125,795,806.25 | / | ||
| Return of large-value goods sales | Not applicable | ||||||||
| Illustration on related-party transactions | Yiwu China Small Commodity City Property Service Co., Ltd. obtained the market property service and greening maintenance contract by participating in public bidding. | ||||||||
(ii) Related transactions arising from asset acquisitions or equity acquisitions and sales
1. Matters that have been disclosed in the temporary announcements and had nofurther progresses or changes
□ Applicable √Not applicable
2. Matters that have been disclosed in the temporary announcements but had furtherprogresses or changes
√Applicable □Not applicable
The Company held the 18th meeting of the 9th Board of Directors on April 22, 2024, andthe 2023 Annual Shareholders' Meeting on May 23, 2024. The Proposal on Wholly-ownedSubsidiary’s Proposed Equity Transfer and Related Transaction was approved, and it wasagreed that the wholly-owned subsidiary Big Data Company and the controlling shareholderCCCH would sign an Equity Transfer Agreement, agreeing that Big Data Company wouldtransfer 100% of its equity in Yiwu Xingchen Enterprise Management Co., Ltd. to CCCH. Fordetails, please refer to the Announcement on Wholly-owned Subsidiary’s Proposed EquityTransfer and Related Transaction (L 2024-020), Announcement on the Progress ofWholly-owned Subsidiary’s Proposed Equity Transfer (L 2024-028), and Announcement on theCompletion of Change Registration with Market Regulation Authorities for Equity Transfer ofWholly-owned Subsidiary (L 2024-029) disclosed by the Company on the Shanghai StockExchange website on April 23, 2024, July 10, 2024, and July 20, 2024, respectively. The equitytransfer has been fully completed.
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 transactions arising from joint investments in external entities
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
(iv) Credits and liabilities with related parties
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
(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) Other
□ Applicable √Not applicable
XI. Significant contracts and their execution1 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 | 2,659.17 | Dec 16, 2015 | Jul 1, 2015 | Dec 15, 2026 | Joint and several liability guarantee | Nil | No | No | - | SCO provided a counter-guarantee | Yes | Joint venture | |
| Hangzhou Shangbo Nanxing | Wholly-owned subsidiary | House purchaser | 461.13 | Joint and several liability guarantee | Nil | No | No | - | No | Wholly-owned subsidiary | |||||
| Amount of guarantees made during the reporting period (excluding the guarantees provided for subsidiaries) | -1,918.12 | ||||||||||||||
| Balance of guarantees at the end of the reporting period (A) (excluding the guarantees provided for subsidiaries) | 3,120.30 | ||||||||||||||
| Guarantees provided by the Company for its subsidiaries | |||||||||||||||
| Amount of guarantees provided for subsidiaries during the reporting period | - | ||||||||||||||
| Balance of guarantees provided for subsidiaries at the end of the reporting period (B) | - | ||||||||||||||
| Total guaran`tees provided by the Company (including those provided for the subsidiaries) | |
| Total amount of guarantees (A+B) | 3,120.30 |
| Ratio of the total amount of guarantees to the Company’s net assets (%) | 0.17 |
| Among them: | |
| Amount of guarantees provided for shareholders, actual controller and their related parties (C) | - |
| Amount of guarantees provided directly or indirectly for the debtors whose debt-to-asset ratio exceed 70% (D) | - |
| Portion of total amount of guarantees in excess of 50% of net assets (E) | - |
| Total (C+D+E) | - |
| Statement on the joint and several liability that may be assumed due to outstanding guarantees | Not applicable |
| 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 loan of RMB 750 million 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, 2024, Yiwu Shanglv actually borrowed RMB 54,268,838.96 (December 31, 2023: RMB 93,377,327.02) from banks in total. According to the guarantee contract, the Group should bear a guarantee liability of RMB 26,591,731.09 (December 31, 2023: RMB 45,754,890.24) to Yiwu Branch of Agricultural Bank of China. SCO provided a counter-guarantee for this guarantee. 2. According to relevant regulations, the Group is required to provide mortgage loan guarantees to the bank for the sale of commercial housing before purchasers of the housing obtain the property ownership certificate. The outstanding guarantee amount as of June 30, 2024 was RMB 4,611,250.35 (December 31, 2023: RMB 4,629,333.68). 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 significant contracts
√Applicable □Not applicable
| No. | Contract name | Signing parties | Contract price (RMB Ten thousand) | Signing time |
| 1 | General Contract for Global Digital Trade Center Project Super High-rise Building | The Company, Zhejiang Provincial Yijian Construction Group Co., Ltd. | 108,064.44 | April 2024 |
| 2 | General Contract for Lot 1 of Yiwu Comprehensive Bonded Zone Phase II Overpass Project | The Company, Yiwu Shenglin Construction Co., Ltd. | 2,362.69 | March 2024 |
| 3 | Yiwu Global Digital Trade Center Phase II Building Intelligence Project | The Company, Yiwu Jiangshen Construction Co., Ltd. | 1,755.25 | June 2024 |
XII. Description of progress in the use of raised funds
□ Applicable √Not applicable
XIII. Other significant matters
□ Applicable √Not applicable
Section VII. Changes in Shares and Information of Shareholders
I. Changes in shares(i) Table of changes in shares
1. Table of changes in shares
Unit: share
| Before this change | Increase or decrease in the current period (+, -) | After this change | |||||||
| Quantity | Proportion (%) | New shares issued | Bonus shares | Shares converted from capital reserve | Other | Sub-total | Quantity | Proportion (%) | |
| I. Restricted shares | 27,218,750 | 0.50 | 0 | 0 | 0 | -12,414,600 | -12,414,600 | 14,804,150 | 0.27 |
| 3. Shares held by other domestic investors | 27,218,750 | 0.50 | 0 | 0 | 0 | -12,414,600 | -12,414,600 | 14,804,150 | 0.27 |
| shares held by domestic natural persons | 27,218,750 | 0.50 | 0 | 0 | 0 | -12,414,600 | -12,414,600 | 14,804,150 | 0.27 |
| II. Unrestricted shares | 5,457,115,426 | 99.50 | 0 | 0 | 0 | 12,414,600 | 12,414,600 | 5,469,530,026 | 99.73 |
| 1. RMB-denominated common shares | 5,457,115,426 | 99.50 | 0 | 0 | 0 | 12,414,600 | 12,414,600 | 5,469,530,026 | 99.73 |
| III. Total number of shares | 5,484,334,176 | 100 | 0 | 0 | 0 | 0 | 0 | 5,484,334,176 | 100 |
2. Explanation of changes in shares
√Applicable □Not applicable
On January 15, 2024, a total of 12,414,600 restricted shares for the second unlockingperiod of the first grant part of the Company's 2020 Restricted Stock Incentive Plan were listedfor circulation.
3. The impact of share changes on financial indicators such as earnings per share andnet assets per share during the period from the end of the reporting period to thedisclosure date of the semi-annual report (if any)
□ Applicable √Not applicable
4. Other matters the Company deems it necessary to disclose or required by thesecurities regulatory authority to be disclosed
□ Applicable √Not applicable
(ii) Changes in restricted shares
√Applicable □Not applicable
Unit: Ten Thousand Shares
| Shareholder | Number of restricted shares at the beginning of the period | Number of restricted shares unlocked during the reporting period | Number of increased restricted shares during the reporting period | Number of restricted shares at the end of the reporting period | Reasons for restriction on trade | Release date |
| 322 incentive recipients subject to the first grant under the 2020 restricted stock incentive plan | 2,574.14 | 1,241.46 | - | 1,332.68 | Restricted stock incentives | The lock-up period is 24 months, 36 months and 48 months from the date when the registration of the first grant is completed. |
| 29 incentive recipients subject to the reserved grant part under the 2020 restricted stock incentive plan | 147.735 | - | - | 147.735 | Restricted stock incentives | The lock-up period is 24 months, 36 months and 48 months from the date when the registration of the first grant is completed. |
| Total | 2,721.875 | 1,241.46 | - | 1,480.415 | / | / |
The Company's restricted stock incentive plan for 2020 was implemented until the end ofthe reporting period. A total of 75 incentive recipients no longer met the incentive conditions dueto transfer, resignation, retirement, and other reasons. Their restricted stocks were repurchasedand cancelled by the Company. As of the end of the reporting period, there were a total of 351remaining incentive recipients, holding a total of 14.80415 million shares restricted for sale.II. Information about shareholders(i) Total number of shareholders:
| Number of common shareholders as of the end of the reporting period | 139,302 |
| As of the end of the reporting period, the total number of preferred shareholders whose voting rights have been restored | 0 |
(ii) Shareholdings of the top 10 shareholders and top 10 holders of tradable shares (or shareholders not subject to trading restrictions)
Unit: share
| Shareholdings of the top ten shareholders (excluding shares lent through refinancing) | |||||||
| 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 | 55.40 | 0 | Nil | 0 | State-owned legal person |
| Zhejiang Zhecai Capital Management Co., Ltd. | 0 | 147,466,528 | 2.69 | 0 | Nil | 0 | State-owned legal person |
| Hong Kong Central Clearing Company Limited | 25,706,463 | 108,568,504 | 1.98 | 0 | Unk | - | Others |
| China Life Insurance Co., Ltd. - Traditional - General Insurance Products -005L-CT001 Shanghai | -6,387,200 | 33,646,042 | 0.61 | 0 | Unk | - | Unk |
| Gao Yaping | 0 | 32,261,566 | 0.59 | 0 | Unk | - | Overseas natural person |
| Industrial and Commercial Bank of China Limited – Huatai-PineBridge CSI 300 ETF | 31,710,002 | 31,710,002 | 0.58 | 0 | Unk | - | Unk |
| Bank of China Limited - Guangfa Small and Medium Cap Selected Hybrid Securities Investment Fund | 8,034,400 | 27,830,800 | 0.51 | 0 | Unk | - | Unk |
| Southern Asset Management－Agricultural Bank of China－Southern China Securities Financial Assets Management Scheme | 0 | 26,675,000 | 0.49 | 0 | Unk | - | Unk |
| Dacheng Fund－Agricultural Bank of China－Dacheng China Securities Financial Assets Management Scheme | 0 | 26,447,800 | 0.48 | 0 | Unk | - | Unk |
| Jiang Shibo | 0 | 24,387,200 | 0.44 | 0 | Unk | - | Domestic natural person |
| Shareholdings of the top ten shareholders not restricted for sale (excluding shares lent through refinancing) | |||||||
| 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 Zhecai Capital Management Co., Ltd. | 147,466,528 | RMB-denominated common share | 147,466,528 | ||||
| Hong Kong Central Clearing Company Limited | 108,568,504 | RMB-denominated common share | 108,568,504 | ||||
| China Life Insurance Co., Ltd. - Traditional - General Insurance Products -005L-CT001 Shanghai | 33,646,042 | RMB-denominated common share | 33,646,042 | ||||
| Gao Yaping | 32,261,566 | RMB-denominated common share | 32,261,566 | ||||
| Industrial and Commercial Bank of China Limited – Huatai-PineBridge CSI 300 ETF | 31,710,002 | RMB-denominated common share | 31,710,002 | ||||
| Bank of China Limited - Guangfa Small and Medium Cap Selected Hybrid Securities Investment Fund | 27,830,800 | RMB-denominated common share | 27,830,800 | ||||
| Southern Asset Management－Agricultural Bank of China－Southern China Securities Financial Assets Management Scheme | 26,675,000 | RMB-denominated common share | 26,675,000 | ||||
| Dacheng Fund－Agricultural Bank of China－Dacheng China Securities Financial Assets Management Scheme | 26,447,800 | RMB-denominated common share | 26,447,800 | ||||
| Jiang Shibo | 24,387,200 | RMB-denominated common share | 24,387,200 | ||||
| Explanation of the special account for repurchased shares among the top ten shareholders | Nil | ||||||
| Explain if any of the shareholders above was involved in entrusting/being entrusted with voting rights or waiving voting rights | Nil | ||||||
| Explanation on the relationship or concerted action between the above shareholders | Zhejiang Provincial Finance Development Co., Ltd., controlling shareholder of Zhejiang Zhecai Capital Management Co., Ltd., holds 9.44% of the shares of Yiwu State-owned Capital Operation Co., Ltd., the controlling shareholder of Yiwu China Commodity City Holding Limited, the controlling shareholder of Yiwu Market Development Group Co., Ltd. |
| Explanation on the preferred shareholders whose voting rights had been restituted and the quantity of shares held thereby | Nil |
Participation of shareholders holding more than 5% of the shares, top ten shareholders, and topten shareholders with non-restricted tradable shares in the lending of shares throughrefinancing
□ Applicable √Not applicable
Changes in the top ten shareholders and the top ten shareholders with non-restricted tradableshares compared to the prior corresponding period due to lending or return of shares throughrefinancing
□ Applicable √Not applicable
Number of shares held by the top 10 shareholders subject to trading restrictions and the tradingrestrictions
□ Applicable √Not applicable
(iii) Strategic investors or general corporations becoming top ten shareholders dueto placing of new shares
□ Applicable √Not applicable
III. Directors, supervisors and senior management(i) Changes in shareholding of resigned directors, supervisors and senior managementduring the reporting period
□ Applicable √Not applicable
Statement on other matters
□ Applicable √Not applicable
(ii) The equity incentives granted to directors, supervisors and senior managementduring the reporting period
□ Applicable √Not applicable
(iii) Other notes
□ 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 (including enterprise bonds) and non-financial corporate debt
financing instruments
√Applicable □Not applicable
(i) Corporate bonds (including enterprise bonds)
√Applicable □Not applicable
1. Basic information of corporate bonds
Unit: RMB 100 million
| Name of bond | Abbreviation | Code | Issue date | Value date | The latest put-back date after August 31, 2024 | Maturity date | Outstanding balance | Interest rate (%) | Method of principal repayment and interest payment | Place of trading | Lead underwriter | Trustee manager | Investor appropriate arrangements (if any) | Trade mechanism | Whether there is a risk of terminating the transaction in the stock market |
| Zhejiang China Commodity City Group Co., Ltd. publicly issued corporate bonds to professional investors in 2022 (Issue 1) | 22 YIWU CCC 01 | 137740 | September 1, 2022 | September 1, 2022 | September 1, 2025 | 8 | 2.88 | Simple interest is calculated, the interest payment frequency is annual, and the principal is repaid once due. | Shanghai Stock Exchange | CITIC Securities | CITIC Securities | Professional institutional investors | Public trading | No | |
| Zhejiang China Commodity City Group Co., Ltd. publicly issued corporate bonds to professional investors in 2022 (Issue 2) | 22 YIWU CCC 02 | 137815 | September 22, 2022 | September 22, 2022 | September 22, 2025 | 7 | 2.88 | Simple interest is calculated, the interest payment frequency is annual, and the principal is repaid once due. | Shanghai Stock Exchange | CITIC Securities | CITIC Securities | Professional institutional investors | Public trading | No |
The Company's measures to deal with the risk of bond termination
□ Applicable √Not applicable
2. Triggering and execution of issuer or investor choice clauses and investorprotection clauses
□ Applicable √Not applicable
3. Changes in credit ratings
□ Applicable √Not applicable
Other statementsShanghai New Century Credit Rating Investment Service Co., Ltd. issued the ZhejiangChina Commodities City Group Co., Ltd. Credit Rating Report [XSJQP (2024) 020213] on June26, 2024. According to the report, the Company's main credit rating is AAA, and the ratingoutlook is stable.
4. Changes, variations, and execution of guarantees, debt repayment plans, and otherdebt protection measures during the reporting period and their impacts
□ Applicable √Not applicable
Other statementsNil
(ii) Non-financial corporate debt financing instruments in the interbank bond market
√Applicable □Not applicable
1. Basic information of non-financial corporate debt financing instruments
Unit: RMB 100 million
| Name of bond | Abbreviation | Code | Issue date | Value date | Maturity date | Outstanding balance | Interest rate (%) | Method of principal repayment and interest payment | Place of trading | 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 2022 MTN (Issue 1) | 22 Zhejiang Yiwu CCC MTN001 | 102280347 | Feb 22, 2022 to Feb 23, 2022 | Feb 24, 2022 | Feb 24, 2025 | 10 | 3.29 | Annual interest payment, principal repayment at maturity | Interbank market | No | ||
| Zhejiang China Commodities City Group Co., Ltd.’s 2022 MTN (Issue 2) | 22 Zhejiang Yiwu CCC MTN002 | 102280660 | Mar 25, 2022 to Mar 28, 2022 | Mar 29, 2022 | Mar 29, 2025 | 5 | 3.57 | Annual interest payment, principal repayment at maturity | Interbank market | No | ||
| Zhejiang China Commodities City Group Co., Ltd.'s 2022 MTN (Issue 3) | 22 Zhejiang Yiwu CCC MTN003 | 102281584 | Jul 18, 2022 to Jul 19, 2022 | Jul 20, 2022 | Jul 20, 2025 | 5 | 3.00 | Annual interest payment, principal repayment at maturity | Interbank market | No | ||
| Zhejiang China Commodities City Group Co., Ltd. 2023 Super Short-term Financing Bonds (Issue 5) | 23 Zhejiang Yiwu CCC SCP005 | 012384038 | Nov 6, 2023 to Nov 7, 2023 | Nov 8, 2023 | Aug 2, 2024 | 10 | 2.78 | One-time repayment of principal and interest at maturity. | Interbank market | No | ||
| Zhejiang China Commodities | 24 Zhejiang | 012480815 | Mar 11, | Mar 31, | Dec 6, | 10 | 2.40 | One-time | Interbank | No |
| City Group Co., Ltd.’s 2024 Super Short-term Financing Bonds (Issue 1) | Yiwu CCC SCP001 | 2024 to Mar 12, 2024 | 2024 | 2024 | repayment of principal and interest at maturity. | market | ||||||
| Zhejiang China Commodities City Group Co., Ltd.’s 2024 Super Short-term Financing Bonds (Issue 2) | 24 Zhejiang Yiwu CCC SCP002 | 012481205 | Apr 7, 2024 to Apr 8, 2024 | Apr 9, 2024 | Dec 26, 2024 | 10 | 2.33 | One-time repayment of principal and interest at maturity. | Interbank market | 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. Triggering and execution of issuer or investor choice clauses and investorprotection clauses
□ Applicable √Not applicable
3. Changes in credit ratings
□ Applicable √Not applicable
Other statementsShanghai New Century Credit Rating Investment Service Co., Ltd. issued the ZhejiangChina Commodities City Group Co., Ltd. Credit Rating Report [XSJQP (2024) 020213] on June26, 2024. According to the report, the Company's main credit rating is AAA, and the ratingoutlook is stable.
4. Execution and changes of guarantees, debt repayment plans, and other debtprotection measures during the reporting period and their impact
□ Applicable √Not applicable
Other statementsNil
5. Explanation of other situations regarding non-financial corporate debt financinginstruments
□ Applicable √Not applicable
(iii) Fundraising through corporate bonds
√ All corporate bonds of the Company did not involve the use of raised funds or rectificationduring the reporting period □ The Company's bonds involved the use or rectification of theraised funds during the reporting period(iv) Other matters that should be disclosed for special bond varieties
□ Applicable √Not applicable
(v) Important matters related to corporate bonds during the reporting period
□ Applicable √Not applicable
(vi) Consolidated loss of the reporting period over 10% of net assets as at the end oflast year
□ Applicable √Not applicable
(vii) Main accounting data and financial indicators
√Applicable □Not applicable
Unit: RMB
| Major indicator | As of the end of the current reporting period | At the end of the previous year | Increase/decrease at the end of the reporting period over the end of the previous year (%) | Reasons for change |
| Current ratio | 0.43 | 0.48 | -10.42 | |
| Quick ratio | 0.30 | 0.39 | -23.08 | |
| Debt-to-asset ratio (%) | 49.76 | 51.12 | Down 1.36 ppt | |
| Jan-Jun 2024 | Jan-Jun 2023 | YoY change (%) | Reasons for change | |
| Net profit after deduction of non-recurring gains and losses | 1,418,908,469.37 | 1,839,365,824.67 | -22.86 | |
| EBITDA to total debt ratio | 0.27 | 0.31 | -12.90 | |
| Interest coverage ratio | 16.83 | 19.59 | -14.09 | |
| Cash interest protection multiple | 3.74 | 2.25 | 66.22 | Due to the increase in cash income tax paid in this period |
| EBITDA-to-interest coverage ratio | 20.59 | 22.50 | -8.49 | |
| Loan repayment rate (%) | 100 | 100 | ||
| Interest payment rate (%) | 100 | 100 |
II. Convertible bonds
□ Applicable √Not applicable
Section X. Financial Report
I. Auditor's Report
□ Applicable √Not applicable
II. Financial statements
Consolidated Balance Sheet
June 30, 2024Prepared by: Zhejiang China Commodities City Group Co., Ltd.
Unit: RMB
| Item | Notes | June 30, 2024 | December 31, 2023 |
| Current assets: | |||
| Cash and cash equivalents | 979,696,870.94 | 2,922,735,320.61 | |
| Held-for-trading financial assets | 11,640,817.50 | 15,130,895.00 | |
| Accounts receivable | 475,461,557.28 | 592,857,795.09 | |
| Prepayments | 1,933,879,454.57 | 986,062,615.10 | |
| Other receivables | 121,606,527.40 | 115,279,387.63 | |
| Inventories | 1,897,027,952.53 | 1,247,244,380.91 | |
| Other current assets | 834,033,616.52 | 665,132,672.86 | |
| Total current assets | 6,253,346,796.74 | 6,544,443,067.20 | |
| Non-current assets: | |||
| Debt investments | 48,066,000.00 | 48,073,333.34 | |
| Long-term receivables | 291,886,046.34 | 278,026,679.25 | |
| Long-term equity investment | 6,938,804,460.82 | 7,022,779,506.25 | |
| Other equity instruments investment | 555,643,105.79 | 556,897,379.17 | |
| Other non-current financial assets | 1,492,349,593.33 | 1,421,569,904.19 | |
| Investment properties | 4,055,293,637.52 | 4,144,209,365.57 | |
| Fixed assets | 4,779,247,066.98 | 4,940,523,363.51 | |
| Construction in progress | 4,383,862,731.01 | 3,955,959,200.32 | |
| Right-of-use assets | 169,346,250.60 | 180,873,833.84 | |
| Intangible assets | 6,244,505,092.51 | 6,238,384,501.96 | |
| Among them: data resources | 8,445,063.18 | - | |
| Development expenses | 11,157,791.11 | 18,648,441.93 | |
| Among them: data resources | 9,101,400.55 | 7,855,225.73 | |
| Goodwill | 284,916,367.87 | 284,916,367.87 | |
| Long-term prepaid expenses | 273,485,862.73 | 330,032,050.64 | |
| Deferred income tax assets | 101,529,164.07 | 115,356,912.59 | |
| Other non-current assets | 138,253,316.00 | 138,253,316.00 | |
| Total non-current assets | 29,768,346,486.68 | 29,674,504,156.43 | |
| Total assets | 36,021,693,283.42 | 36,218,947,223.63 | |
| Current liabilities: | |||
| Short-term borrowings | 1,351,119,861.12 | 1,619,804,888.91 | |
| Accounts payable | 1,165,262,393.64 | 1,390,254,849.27 | |
| Advance receipts | 361,888,036.98 | 602,364,396.64 | |
| Contract liabilities | 3,694,027,281.44 | 4,066,579,965.73 | |
| Payroll payable | 17,782,397.68 | 148,473,258.54 | |
| Tax payable | 376,044,575.37 | 348,185,249.71 | |
| Other payables | 2,288,090,193.05 | 1,862,720,723.00 | |
| Including: Interest payable | - | - | |
| Dividend payable | 608,684,665.60 | - | |
| Non-current liabilities due within one year | 1,767,945,699.70 | 179,140,794.24 | |
| Other current liabilities | 3,579,574,210.39 | 3,514,924,439.85 | |
| Total current liabilities | 14,601,734,649.37 | 13,732,448,565.89 | |
| Non-current liabilities: | |||
| Long-term borrowings | 907,780,063.03 | 862,798,863.03 | |
| Bonds payable | 1,999,398,922.23 | 3,498,452,484.47 | |
| Lease liabilities | 180,232,391.94 | 176,832,206.26 | |
| Deferred income | 152,843,381.09 | 160,432,656.23 | |
| Deferred income tax liabilities | 82,839,360.82 | 84,044,926.48 | |
| Total non-current liabilities | 3,323,094,119.11 | 4,782,561,136.47 | |
| Total liabilities | 17,924,828,768.48 | 18,515,009,702.36 | |
| Owners’ (or Shareholders’) Equity: | |||
| Paid-in capital (share capital) | 5,484,334,176.00 | 5,484,334,176.00 | |
| Capital reserve | 1,670,651,142.45 | 1,666,882,087.60 | |
| Less: treasury stocks | 40,264,267.55 | 74,367,173.75 | |
| Other comprehensive income | 24,877,490.32 | 23,394,697.32 | |
| Surplus reserve | 1,879,651,431.02 | 1,879,651,431.02 | |
| General risk reserve | 4,893,646.97 | 4,893,646.97 | |
| Undistributed profits | 9,054,720,863.33 | 8,703,604,953.04 | |
| Total equity attributable to owners (shareholders) of the parent company | 18,078,864,482.54 | 17,688,393,818.20 | |
| Minority interest | 18,000,032.40 | 15,543,703.07 | |
| Total owners’ equity (or shareholders’ equity) | 18,096,864,514.94 | 17,703,937,521.27 | |
| Total liabilities and owners’ equity (or shareholders’ equity) | 36,021,693,283.42 | 36,218,947,223.63 | |
Legal representative of the Company: WANG Dong Principal in charge of accounting:
WANG Dong Head of accounting department: ZHAO Difang
Parent Company Balance Sheet
June 30, 2024Prepared by: Zhejiang China Commodities City Group Co., Ltd.
Unit: RMB
| Item | Notes | June 30, 2024 | December 31, 2023 |
| Current assets: | |||
| Cash and cash equivalents | 198,541,806.69 | 2,265,528,812.87 | |
| Accounts receivable | 9,941,475.80 | 33,941,436.69 | |
| Prepayments | 19,415,853.83 | 12,620,700.86 | |
| Other receivables | 28,372,376.18 | 12,892,088.01 | |
| Inventories | 566,410,051.20 | 5,231,744.36 | |
| Other current assets | 4,705,066,612.71 | 3,970,347,163.03 | |
| Total current assets | 5,527,748,176.41 | 6,300,561,945.82 | |
| Non-current assets: | |||
| Long-term receivables | 31,864,236.48 | 31,863,990.46 | |
| Long-term equity investment | 10,818,530,854.21 | 10,598,239,200.32 | |
| Other equity instruments investment | 555,643,105.79 | 556,897,379.17 | |
| Other non-current financial assets | 121,590,140.86 | 121,590,140.86 | |
| Investment properties | 4,025,134,746.00 | 4,115,810,590.81 | |
| Fixed assets | 3,841,463,013.65 | 3,974,413,890.47 | |
| Construction in progress | 2,769,840,520.81 | 2,555,580,061.19 | |
| Right-of-use assets | 99,627,222.47 | 103,038,184.75 | |
| Intangible assets | 5,512,586,381.12 | 5,610,536,305.45 | |
| Long-term prepaid expenses | 257,320,794.05 | 308,633,101.63 | |
| Deferred income tax assets | 82,035,386.94 | 95,863,135.46 | |
| Total non-current assets | 28,115,636,402.38 | 28,072,465,980.57 | |
| Total assets | 33,643,384,578.79 | 34,373,027,926.39 | |
| Current liabilities: | |||
| Short-term borrowings | 1,351,119,861.12 | 1,619,804,888.91 | |
| Accounts payable | 701,281,788.73 | 990,280,605.47 | |
| Advance receipts | 309,937,182.03 | 550,737,695.05 | |
| Contract liabilities | 2,052,964,368.51 | 3,003,146,485.10 | |
| Payroll payable | 16,467,499.02 | 105,072,078.58 | |
| Tax payable | 354,108,444.85 | 311,510,488.15 | |
| Other payables | 1,958,987,202.28 | 1,501,163,670.08 | |
| Including: Interest payable | - | - | |
| Dividend payable | 608,684,665.60 | - | |
| Non-current liabilities due within one year | 1,726,408,423.62 | 144,137,373.24 | |
| Other current liabilities | 3,915,246,940.66 | 3,763,504,419.10 | |
| Total current liabilities | 12,386,521,710.82 | 11,989,357,703.68 | |
| Non-current liabilities: | |||
| Long-term borrowings | 529,680,000.00 | 510,290,000.00 | |
| Bonds payable | 1,999,398,922.23 | 3,498,452,484.47 | |
| Lease liabilities | 111,955,291.61 | 107,858,015.51 | |
| Deferred income | 94,571,381.09 | 102,160,656.23 | |
| Deferred income tax liabilities | 11,120,976.54 | 11,434,544.88 | |
| Total non-current liabilities | 2,746,726,571.47 | 4,230,195,701.09 | |
| Total liabilities | 15,133,248,282.29 | 16,219,553,404.77 | |
| Owners’ (or Shareholders’) Equity: | |||
| Paid-in capital (share capital) | 5,484,334,176.00 | 5,484,334,176.00 | |
| Capital reserve | 1,902,719,872.26 | 1,898,950,817.41 | |
| Less: treasury stocks | 40,264,267.55 | 74,367,173.75 | |
| Other comprehensive income | 1,513,256.09 | 2,453,961.13 | |
| Surplus reserve | 1,879,597,955.19 | 1,879,597,955.19 | |
| Undistributed profits | 9,282,235,304.51 | 8,962,504,785.64 | |
| Total owners’ equity (or shareholders’ equity) | 18,510,136,296.50 | 18,153,474,521.62 | |
| Total liabilities and owners’ equity (or shareholders’ equity) | 33,643,384,578.79 | 34,373,027,926.39 |
Legal representative of the Company: WANG Dong Principal in charge of accounting:
WANG Dong Head of accounting department: ZHAO Difang
Consolidated Income Statement
January-June 2024
Unit: RMB
| Item | Notes | H1 2024 | H1 2023 |
| I. Gross revenue | 6,765,934,137.13 | 5,160,991,043.25 | |
| Including: operating revenue | 6,765,934,137.13 | 5,160,991,043.25 | |
| II. Gross cost | 4,986,564,001.60 | 4,038,995,021.46 | |
| Including: Operating cost | 4,527,895,348.12 | 3,582,510,450.35 | |
| Taxes and surcharges | 82,993,119.34 | 46,693,684.31 | |
| Sales expenses | 92,206,144.98 | 77,763,668.49 | |
| Administrative expenses | 218,138,951.18 | 267,899,068.22 | |
| R&D expenses | 11,759,206.64 | 10,524,249.20 | |
| Financial expenses | 53,571,231.34 | 53,603,900.89 | |
| Including: interest expenses | 120,646,122.86 | 125,445,414.65 | |
| Interest income | 23,637,669.49 | 38,139,798.22 | |
| Add: other income | 11,178,944.81 | 14,631,536.76 | |
| Investment income (loss is indicated by “-”) | 107,996,646.94 | 1,033,500,114.51 | |
| Including: income from investment in associates and joint ventures | 98,348,751.52 | 1,017,671,762.53 | |
| Changes in fair value (loss is indicated by “-”) | -3,490,077.50 | -7,181,931.08 | |
| Credit impairment loss (loss is indicated by “-”) | 59,404.71 | 548,917.85 | |
| Income from disposal of assets (loss is indicated by “-”) | 84.36 | 165,883,894.78 | |
| III. Operating profit (loss is indicated by “-”) | 1,895,115,138.85 | 2,329,378,554.61 | |
| Add: income from non-operating activities | 16,256,469.98 | 3,111,709.63 | |
| Less: expenses from non-operating activities | 1,400,763.97 | 197,968.35 | |
| IV. Profits before tax (loss is indicated by “-”) | 1,909,970,844.86 | 2,332,292,295.89 | |
| Less: income tax | 459,552,666.97 | 331,637,822.02 | |
| V. Net profits (net loss is indicated by “-”) | 1,450,418,177.89 | 2,000,654,473.87 | |
| (I) Categorized by continuity of operation | |||
| Net profits from continuing operation (net loss is indicated by “-”) | 1,450,418,177.89 | 2,000,654,473.87 | |
| (II) Categorized by ownership | |||
| Net profits attributable to shareholders of the parent company (net loss is indicated by “-”) | 1,447,982,745.49 | 1,998,333,646.74 | |
| Minority interest(net loss is indicated by “-”) | 2,435,432.40 | 2,320,827.13 | |
| VI. Other comprehensive income, net of tax | 1,503,689.93 | 67,799,099.64 | |
| (I) Other comprehensive income attributable to owners of the parent company, net of tax | 1,482,793.00 | 67,916,223.03 | |
| 1. Other comprehensive income that cannot be reclassified as profits or loss | -940,705.04 | 60,205,122.07 | |
| (3) Changes in fair value of investments in other equity instruments | -940,705.04 | 60,205,122.07 | |
| 2 . Other comprehensive income that will be reclassified as profits or loss | 2,423,498.04 | 7,711,100.96 | |
| Other comprehensive income that can be transferred into profit and loss under equity method | 217,103.05 | - | |
| (6) Difference arising from the translation of foreign currency financial statements | 2,206,394.99 | 7,711,100.96 | |
| (2) After -tax net of other comprehensive income attributable to minority shareholders | 20,896.93 | -117,123.39 | |
| VII. Total comprehensive income | 1,451,921,867.82 | 2,068,453,573.51 | |
| (I) Total comprehensive income attributable | 1,449,465,538.49 | 2,066,249,869.77 | |
| to owners of the parent company | |||
| (II) Total comprehensive income attributable to minority shareholders | 2,456,329.33 | 2,203,703.74 | |
| VIII. Earnings per share: | |||
| (I) Basic earnings per share | 0.27 | 0.37 | |
| (II) Diluted earnings per share | 0.27 | 0.37 | |
For business combinations under common control during the current period, net profits of the merged party prior to the mergerwere RMB 0, and net profits of the merged party during the previous period were RMB 0.Legal representative of the Company: WANG Dong Principal in charge of accounting:
WANG Dong Head of accounting department: ZHAO Difang
Parent company income statement
January-June 2024
Unit: RMB
| Item | Notes | H1 2024 | H1 2023 |
| I. Operating revenue | 2,428,541,827.28 | 1,923,534,277.16 | |
| Less: Operating cost | 490,180,610.81 | 525,153,455.43 | |
| Taxes and surcharges | 64,145,878.71 | 29,462,268.30 | |
| Sales expenses | 35,521,657.02 | 37,008,590.21 | |
| Administrative expenses | 95,524,740.97 | 130,896,651.97 | |
| Financial expenses | 59,531,140.85 | 65,718,043.69 | |
| Including: interest expenses | 120,646,122.86 | 125,445,414.65 | |
| Interest income | 15,619,670.82 | 30,709,123.09 | |
| Add: other income | 7,944,882.13 | 12,319,396.64 | |
| Investment income (loss is indicated by “-”) | 117,453,264.95 | 1,044,304,324.89 | |
| Including: income from investment in associates and joint ventures | 114,978,264.95 | 1,040,883,650.78 | |
| Changes in fair value (loss is indicated by “-”) | - | -9,305,911.08 | |
| Credit impairment loss (loss is indicated by “-”) | 24,247.94 | 1,193.47 | |
| Income from disposal of assets (loss is indicated by “-”) | - | 163,241,247.23 | |
| II. Operating profits (loss is indicated by “-”) | 1,809,060,193.94 | 2,345,855,518.71 | |
| Add: income from non-operating activities | 13,204,046.33 | 1,090,764.24 | |
| Less: expenses from non-operating activities | 183,540.75 | 53,023.89 | |
| III. Profits before tax (loss is indicated by “-”) | 1,822,080,699.52 | 2,346,893,259.06 | |
| Less: income tax | 405,483,345.45 | 320,573,444.90 | |
| IV. Net profits (net loss is indicated by “-”) | 1,416,597,354.07 | 2,026,319,814.16 | |
| (I) Categorized by continuity of operation(net loss is indicated by “-”) | 1,416,597,354.07 | 2,026,319,814.16 | |
| V. Other comprehensive income, net of tax | -940,705.04 | 60,205,122.07 | |
| (I) Other comprehensive income that cannot be reclassified as profit or loss | -940,705.04 | 60,205,122.07 | |
| 3. Changes in fair value of investments in other equity instruments | -940,705.04 | 60,205,122.07 | |
| VI. Total comprehensive income | 1,415,656,649.03 | 2,086,524,936.23 |
Legal representative of the Company: WANG Dong Principal in charge of accounting:
WANG Dong Head of accounting department: ZHAO Difang
Consolidated Cash Flow Statement
January-June 2024
Unit: RMB
| Item | Notes | H1 2024 | H1 2023 |
| I. Cash flows generated from operating activities: | |||
| Cash received from sale of goods and rendering of services | 6,947,726,888.17 | 4,977,640,834.09 | |
| Cash received for taxes and surcharges refunded | 20,905,599.66 | 23,897,946.46 | |
| Other cash receipts relating to operating activities | 127,309,299.43 | 187,951,543.68 | |
| Sub-total of cash inflow from operating activities | 7,095,941,787.26 | 5,189,490,324.23 | |
| Cash paid for goods and services | 5,840,206,516.42 | 4,090,931,069.08 | |
| Cash paid to and on behalf of employees | 335,050,513.33 | 339,067,822.26 | |
| Payments of taxes | 562,136,323.31 | 358,963,558.10 | |
| Other cash payments relating to operating activities | 244,184,933.37 | 257,280,679.01 | |
| Sub-total of cash outflow from operating activities | 6,981,578,286.43 | 5,046,243,128.45 | |
| Net cash flow from operating activities | 114,363,500.83 | 143,247,195.78 | |
| II. Cash flows generated from investment activities: | |||
| Cash received from recovery of investment | 156,957,965.07 | 80,872,677.09 | |
| Cash received from investment income | 4,507,839.58 | 136,547,121.87 | |
| Net cash received from disposal of property, plant and equipment, intangible assets and other long-term assets | 109,332.43 | 208,129,700.93 | |
| Net cash received from disposal of subsidiaries and other business units | - | 12,482,830.94 | |
| Other cash receipts relating to investing activities | 6,842,944.87 | 501,750,200.00 | |
| Sub-total of cash inflow from investing activities | 168,418,081.95 | 939,782,530.83 | |
| Cash paid to acquire and construct fixed assets, intangible assets and other long-term assets | 1,388,085,871.65 | 1,433,747,137.68 | |
| Cash paid to acquire investments | 104,177,300.00 | 21,106.36 | |
| Other cash paid related to investing activities | - | 11,553,412.19 | |
| Sub-total of cash outflow from investing activities | 1,492,263,171.65 | 1,445,321,656.23 | |
| Net cash flow from investing activities | -1,323,845,089.70 | -505,539,125.40 | |
| III. Cash flows generated from financing activities: | |||
| Cash received from borrowings | 1,311,000,000.00 | 2,111,485,725.67 | |
| Cash received from bond issuance | 1,998,540,487.07 | 2,998,270,624.05 | |
| Sub-total of cash inflow from financing activities | 3,309,540,487.07 | 5,109,756,349.72 | |
| Cash paid for debts repayment | 3,422,600,000.00 | 4,072,600,000.00 | |
| Cash paid for distribution of dividends or profits or payment of interest | 617,490,536.58 | 479,370,705.33 | |
| Other cash paid related to financing activities | 8,350,298.44 | 14,105,217.90 | |
| Sub-total of cash outflow from financing activities | 4,048,440,835.02 | 4,566,075,923.23 | |
| Net cash flow from financing | -738,900,347.95 | 543,680,426.49 | |
| activities | |||
| IV. The impact of exchange rate fluctuations on cash and cash equivalents | 1,305,573.28 | 2,390,230.36 | |
| V. Net increase in cash and cash equivalents | -1,947,076,363.54 | 183,778,727.23 | |
| Add: opening balance of cash and cash equivalents | 2,910,178,939.19 | 1,981,200,941.64 | |
| VI. Closing balance of cash and cash equivalents | 963,102,575.65 | 2,164,979,668.87 |
Legal representative of the Company: WANG Dong Principal in charge of accounting:
WANG Dong Head of accounting department: ZHAO Difang
Parent Company Cash Flow Statement
January-June 2024
Unit: RMB
| Item | Notes | H1 2024 | H1 2023 |
| I. Cash flows generated from operating activities: | |||
| Cash received from sale of goods and rendering of services | 1,569,836,230.15 | 1,098,788,301.57 | |
| Other cash receipts relating to operating activities | 61,884,473.08 | 70,609,769.29 | |
| Sub-total of cash inflow from operating activities | 1,631,720,703.23 | 1,169,398,070.86 | |
| Cash paid for goods and services | 286,262,561.44 | 236,241,398.35 | |
| Cash paid to and on behalf of employees | 155,179,719.30 | 174,499,662.84 | |
| Payments of taxes | 446,412,904.13 | 293,658,960.27 | |
| Other cash payments relating to operating activities | 71,737,707.82 | 126,086,015.59 | |
| Sub-total of cash outflow from operating activities | 959,592,892.69 | 830,486,037.05 | |
| Net cash flow from operating activities | 672,127,810.54 | 338,912,033.81 | |
| II. Cash flows generated from investment activities: | |||
| Cash received from recovery of investment | 2,230,398,406.42 | 4,589,970,369.66 | |
| Cash received from investment income | 3,165,839.58 | 124,316,127.19 | |
| Net cash received from disposal of property, plant and equipment, intangible assets and other long-term assets | 54,659.85 | 205,308,403.69 | |
| Other cash receipts relating to investing activities | - | 501,750,200.00 | |
| Sub-total of cash inflow from investing activities | 2,233,618,905.85 | 5,421,345,100.54 | |
| Cash paid to acquire and construct fixed assets, intangible assets and other long-term assets | 1,115,427,273.06 | 908,361,246.65 | |
| Cash paid to acquire investments | 3,086,430,000.00 | 5,053,269,903.20 | |
| Other cash paid related to investing activities | 326,400.00 | 31,628,618.75 | |
| Sub-total of cash outflow from investing activities | 4,202,183,673.06 | 5,993,259,768.60 | |
| Net cash flow from investing activities | -1,968,564,767.21 | -571,914,668.06 | |
| III. Cash flows generated from financing activities: | |||
| Cash received from borrowings | 1,271,000,000.00 | 1,950,000,000.00 | |
| Cash received from bond issuance | 1,998,540,487.07 | 2,998,270,624.05 | |
| Sub-total of cash inflow from financing activities | 3,269,540,487.07 | 4,948,270,624.05 | |
| Cash paid for debts repayment | 3,422,600,000.00 | 4,072,600,000.00 | |
| Cash paid for distribution of dividends or profits or payment of interest | 617,490,536.58 | 479,370,705.33 | |
| Sub-total of cash outflow from financing activities | 4,040,090,536.58 | 4,551,970,705.33 | |
| Net cash flow from financing activities | -770,550,049.51 | 396,299,918.72 | |
| IV. The impact of exchange rate fluctuations on cash and cash equivalents | - | - | |
| V. Net increase in cash and cash equivalents | -2,066,987,006.18 | 163,297,284.47 | |
| Add: opening balance of cash and cash equivalents | 2,258,308,812.87 | 1,431,822,390.59 | |
| VI. Closing balance of cash and cash equivalents | 191,321,806.69 | 1,595,119,675.06 |
Legal representative of the Company: WANG Dong Principal in charge of accounting:
WANG Dong Head of accounting department: ZHAO Difang
Consolidated Statement of Changes in Owners' Equity
January-June 2024
Unit: RMB
| Item | H1 2024 | |||||||||
| 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 | General risk reserve | Undistributed profits | Sub-total | |||
| I. Closing balance of the previous year | 5,484,334,176.00 | 1,666,882,087.60 | 74,367,173.75 | 23,394,697.32 | 1,879,651,431.02 | 4,893,646.97 | 8,703,604,953.04 | 17,688,393,818.20 | 15,543,703.07 | 17,703,937,521.27 |
| II. Opening balance of the current year | 5,484,334,176.00 | 1,666,882,087.60 | 74,367,173.75 | 23,394,697.32 | 1,879,651,431.02 | 4,893,646.97 | 8,703,604,953.04 | 17,688,393,818.20 | 15,543,703.07 | 17,703,937,521.27 |
| III. Change in the current period (decrease is indicated by “-”) | - | 3,769,054.85 | -34,102,906.20 | 1,482,793.00 | - | - | 351,115,910.29 | 390,470,664.34 | 2,456,329.33 | 392,926,993.67 |
| (I) Total comprehensive income | - | - | - | 1,482,793.00 | - | - | 1,447,982,745.49 | 1,449,465,538.49 | 2,456,329.33 | 1,451,921,867.82 |
| (II)Owners’ contribution to and reduction in capital | - | 3,769,054.85 | -34,102,906.20 | - | - | - | - | 37,871,961.05 | - | 37,871,961.05 |
| 3. Amount of share-based payment into owner’s equity | - | 3,769,054.85 | -34,102,906.20 | - | - | - | - | 37,871,961.05 | - | 37,871,961.05 |
| (III) Profits distribution | - | - | - | - | - | - | -1,096,866,835.20 | -1,096,866,835.20 | - | -1,096,866,835.20 |
| 3．Distribution to owners (or shareholders) | - | - | - | - | - | - | -1,096,866,835.20 | -1,096,866,835.20 | - | -1,096,866,835.20 |
| IV. Closing balance of the current period | 5,484,334,176.00 | 1,670,651,142.45 | 40,264,267.55 | 24,877,490.32 | 1,879,651,431.02 | 4,893,646.97 | 9,054,720,863.33 | 18,078,864,482.54 | 18,000,032.40 | 18,096,864,514.94 |
| Item | H1 2023 | |||||||||
| 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 | General risk reserve | Undistributed profits | Sub-total | |||
| I. Closing balance of the previous year | 5,486,074,176.00 | 1,651,146,033.96 | 119,483,675.00 | -24,008,473.60 | 1,616,083,136.73 | 1,038,991.13 | 6,651,440,591.35 | 15,262,290,780.57 | 18,805,602.08 | 15,281,096,382.65 |
| II. Opening balance of the current year | 5,486,074,176.00 | 1,651,146,033.96 | 119,483,675.00 | -24,008,473.60 | 1,616,083,136.73 | 1,038,991.13 | 6,651,440,591.35 | 15,262,290,780.57 | 18,805,602.08 | 15,281,096,382.65 |
| III. Change in the current period (decrease is indicated by “-”) | - | 8,933,604.45 | -38,730,384.00 | 67,916,223.03 | - | - | 1,641,738,825.30 | 1,757,319,036.78 | -6,225,956.78 | 1,751,093,080.00 |
| (I) Total comprehensive income | - | - | - | 67,916,223.03 | - | - | 1,998,333,646.74 | 2,066,249,869.77 | 2,203,703.74 | 2,068,453,573.51 |
| (II)Owners’ contribution to and reduction in capital | - | 8,933,604.45 | -38,730,384.00 | - | - | - | - | 47,663,988.45 | - | 47,663,988.45 |
| 3. Amount of share-based payment into owner’s equity | - | 8,933,604.45 | - | - | - | - | - | 8,933,604.45 | - | 8,933,604.45 |
| 4．Others | - | - | -38,730,384.00 | - | - | - | - | 38,730,384.00 | - | 38,730,384.00 |
| (III) Profits distribution | - | - | - | - | - | - | -356,594,821.44 | -356,594,821.44 | - | -356,594,821.44 |
| 3．Distribution to owners (or shareholders) | - | - | - | - | - | - | -356,594,821.44 | -356,594,821.44 | - | -356,594,821.44 |
| (VI) Others | - | - | - | - | - | - | - | - | -8,429,660.52 | -8,429,660.52 |
| IV. Closing balance of the current period | 5,486,074,176.00 | 1,660,079,638.41 | 80,753,291.00 | 43,907,749.43 | 1,616,083,136.73 | 1,038,991.13 | 8,293,179,416.65 | 17,019,609,817.35 | 12,579,645.30 | 17,032,189,462.65 |
Legal representative of the Company: WANG Dong Principal in charge of accounting: WANG Dong Head of accounting department: ZHAODifang
Statement of Changes in the Parent Company Shareholders' Equity
January-June 2024
Unit: RMB
| Item | H1 2024 | ||||||
| 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 previous year | 5,484,334,176.00 | 1,898,950,817.41 | 74,367,173.75 | 2,453,961.13 | 1,879,597,955.19 | 8,962,504,785.64 | 18,153,474,521.62 |
| II. Opening balance of the current year | 5,484,334,176.00 | 1,898,950,817.41 | 74,367,173.75 | 2,453,961.13 | 1,879,597,955.19 | 8,962,504,785.64 | 18,153,474,521.62 |
| III. Change in the current period (decrease is indicated by “-”) | - | 3,769,054.85 | -34,102,906.20 | -940,705.04 | - | 319,730,518.87 | 356,661,774.88 |
| (I) Total comprehensive income | - | - | - | -940,705.04 | - | 1,416,597,354.07 | 1,415,656,649.03 |
| (II)Owners’ contribution to and reduction in capital | - | 3,769,054.85 | -34,102,906.20 | - | - | - | 37,871,961.05 |
| 3. Amount of share-based payment into owner’s equity | - | 3,769,054.85 | -34,102,906.20 | - | - | - | 37,871,961.05 |
| (III) Profits distribution | - | - | - | - | - | -1,096,866,835.20 | -1,096,866,835.20 |
| 2. Distribution to owner (or shareholders) | - | - | - | - | - | -1,096,866,835.20 | -1,096,866,835.20 |
| IV. Closing balance of the current period | 5,484,334,176.00 | 1,902,719,872.26 | 40,264,267.55 | 1,513,256.09 | 1,879,597,955.19 | 9,282,235,304.51 | 18,510,136,296.50 |
| Item | H1 2023 | ||||||
| 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 previous year | 5,486,074,176.00 | 1,885,778,197.50 | 119,483,675.00 | -40,818,470.36 | 1,616,029,660.90 | 6,946,984,958.48 | 15,774,564,847.52 |
| II. Opening balance of the current year | 5,486,074,176.00 | 1,885,778,197.50 | 119,483,675.00 | -40,818,470.36 | 1,616,029,660.90 | 6,946,984,958.48 | 15,774,564,847.52 |
| III. Change in the current period (decrease is indicated by “-”) | - | -631,849,329.03 | -38,730,384.00 | 60,205,122.07 | - | 1,669,724,992.72 | 1,136,811,169.76 |
| (I) Total comprehensive income | - | - | - | 60,205,122.07 | - | 2,026,319,814.16 | 2,086,524,936.23 |
| (II)Owners’ contribution to and reduction in capital | - | 5,769,315.06 | -38,730,384.00 | - | - | - | 44,499,699.06 |
| 3. Amount of share-based payment into owner’s equity | - | 5,769,315.06 | - | - | - | - | 5,769,315.06 |
| 4．Others | - | - | -38,730,384.00 | - | - | - | 38,730,384.00 |
| (III) Profits distribution | - | - | - | - | - | -356,594,821.44 | -356,594,821.44 |
| 2. Distribution to owner (or shareholders) | - | - | - | - | - | -356,594,821.44 | -356,594,821.44 |
| (VI) Others | - | -637,618,644.09 | - | - | - | - | -637,618,644.09 |
| IV. Closing balance of the current period | 5,486,074,176.00 | 1,253,928,868.47 | 80,753,291.00 | 19,386,651.71 | 1,616,029,660.90 | 8,616,709,951.20 | 16,911,376,017.28 |
Legal representative of the Company: WANG Dong Principal in charge of accounting: WANG Dong Head of accounting department: ZHAODifang
III. Company profile
1. Company overview
√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 ofChina. The RMB-denominated common A shares issued by the Company got listed onShanghai Stock Exchange on May 9, 2002. The Company's headquarters is located at No. 567Yinhai Road, Futian Street, Yiwu City, Jinhua City, Zhejiang Province.The Group’s main business activities: market development and operation and supportingservices, sales of commodities, provision of online trading platforms and services, developmentand management of online trading market, etc., in the category of comprehensive services.The parent company of the Group is Yiwu China Commodities City Holdings Limited(hereinafter referred to as “CCCH”) and the final controller of the Group is the State-ownedAssets Supervision and Administration Office of the People’s Government of Yiwu.
IV. Basis for the preparation of consolidated 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”). In addition, the financial statements also discloserelevant financial information in accordance with the Rule No. 15 for the Preparation andDisclosure of Information by Companies Offering Securities to the Public - General Provisionsfor Financial Reporting.
2. Operation as a going concern
√Applicable □Not applicable
As of June 30, 2024, after deducting the Group’s contract liabilities and advance receipts,which are to be recognized as revenue upon the provision of services or delivery of goods in thefuture, as well as advances to suppliers for goods or services that the Group would receive inthe future, the Group's current liabilities exceeded its current assets by RMB 6,226,351,988.78.The Board of Directors of the Company comprehensively considered the following sources offunds available to the Group: 1. The Group’s expected net cash inflow from operating activitieswithin the next 12 months; 2. As of June 30, 2024, the Group’s unused bank credit line of wasRMB 4,657,661,136.97. The board of directors of the Company is convinced that the availablecredit line can be re-approved when it expires based on past experience and good reputation; 3.In view of the credit history of the Group, other available financing channels from banks andother financial institutions; 4. , The Group's controlling shareholder CCCH has promised tocontinue to provide sufficient financial support in the foreseeable future.
After evaluation, the Board of Directors of the Company believed that the Group hadsufficient resources to continue operating for a foreseeable future period of no less than 12months from the end of this reporting period. Therefore, the Board of Directors of the Companycontinued to prepare the Group's financial statements on a going concern basis.
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 estimates based on the actualproduction and operation characteristics, mainly reflected in bad debt provisions for accountsreceivable, inventory valuation methods, provision for inventory depreciation, fixed assetdepreciation, intangible asset amortization, revenue recognition and measurement,classification of investment properties and fixed assets, and the useful life and residual value offixed assets.
1. Statement on compliance with ASBE
The financial statements prepared by the Group 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.
2. Accounting period
The Company’s accounting year is from Jan 1 to Dec 31 of each calendar year.
3. Business cycle
√Applicable □Not applicable
The business cycle of the Company is relatively short, and 12 months are used as thestandard for defining the liquidity of assets and liabilities.
4. Bookkeeping base currency
The Company’s functional currency is RMB.
The subsidiaries, joint ventures and associates of the Group determine their functionalcurrencies at their own discretion based on the main economic environments in their places ofbusinesses and convert all amounts into RMB while preparing financial statements.
5. Method for determining importance criteria and selection basis
√Applicable □Not applicable
| Item | Importance criteria |
| Important debt investment | Amount greater than RMB 10 million |
| Important construction in progress | Amount greater than RMB 10 million |
| Important minority shareholders’ interest | The total assets are greater than RMB 100 million and the minority shareholder's shareholding ratio is greater than or equal to 5% |
| Important joint ventures or associates | Investment targets that align with the Group's development strategy |
6. Accounting methods for business combinations under common control and
business combinations not under common control
√Applicable □Not applicable
Business combinations are divided into business combinations under common control andbusiness combinations not under common control.
Business combinations under common control
A business combination under common control is a business combination in which all ofthe combining entities are ultimately controlled by the same party or parties both before andafter the combination, and that control is not transitory.
The assets and liabilities acquired by the receiving party in a business combination undercommon control (including the goodwill formed through the acquisition of the tranferred party bythe ultimate controller) are accounted according to the book value thereof in the ultimatecontroller’s financial statements on the combination date. The difference between the bookvalue of the net assets obtained by the merging party and the book value of the considerationfor the merger (or the total face value of the issued shares) should be adjusted to the capitalreserve (equity premium); if the capital reserve (equity premium) is not sufficient to offset, theretained earnings should be adjusted .
Business combinations not under common control
A business combination not under common control is a business combination in which allof the combining entities are not ultimately controlled by the same party or parties before andafter the combination.
The acquiree’s identifiable assets, liabilities and contingent liabilities obtained from abusiness combination not under common control are measured at their fair values on the dateof acquisition. The difference between the merger cost and the fair value share of theidentifiable net assets obtained from the acquired party in the merger is recognized as goodwilland subsequently measured at cost minus accumulated impairment losses. If the merger cost isless than the fair value share of the identifiable net assets obtained from the acquired party inthe merger, the fair values of the identifiable assets, liabilities, and contingent liabilities obtainedfrom the acquired party, as well as the measurement of the merger cost, shall be reviewed. Ifthe merger cost is still less than the fair value share of the identifiable net assets obtained fromthe acquired party in the merger, the difference shall be recognized in gains and losses for thisperiod.
7. Judgment criteria for control and preparation methods for 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 bythe Company (including the severable parts of enterprises and invested entities, and thestructured entities controlled by the Company). When and only when the investor possesses thefollowing three elements, the investor can control the investee: the investor has the power overthe investee; enjoy variable returns due to participation in related activities of the invested party;ability to exercise power over the invested party to influence its return amount.
If the accounting policies or accounting periods adopted by the subsidiary and theCompany are inconsistent, necessary adjustments shall be made to the subsidiary's financialstatements in accordance with the Company's accounting policies and accounting periodswhen preparing the consolidated financial statements. 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’equity in the subsidiary, the excess will still be recognized against minority interest.
For a subsidiary acquired through a business combination not under common control, theoperating results and cash flows of the acquiree will be included in the consolidated financialstatements from the day when the Group acquires control, until the control of the Group ceases.In the preparation of consolidated financial statements, adjustments will be made to thefinancial statements of the subsidiary based on the fair value of its identifiable assets, liabilitiesor contingent liabilities determined on the date of acquisition.
For a subsidiary acquired through a business combination under common control, theoperating results and cash flows of merged party will be included in the consolidated financialstatements since the beginning of the period of the combination. In the preparation ofconsolidated financial statements, adjustments will be made to the related items in its previousfinancial statements as if the reporting entity formed after the merger has been existing as fromthe ultimate controller starts to exercise control.
In case of any change to one or more elements of the control due to the changes in relatedfacts and circumstances, the Group will re-evaluate whether to control the investee.
Without loss of control, changes in minority shareholders' equity are regarded as equitytransactions.
8. Classification of joint arrangements and accounting treatment of joint operations
√Applicable □Not applicable
Joint arrangements are divided into joint operations and joint ventures. Joint operationrefers to a joint arrangement in which the parties thereto enjoy the assets relating to sucharrangement and assume the liabilities relating to such arrangement. Joint venture refers to ajoint arrangement in which the parties thereto only enjoy rights to the net assets in thisarrangement.
Each party to a joint arrangement recognizes the following items relating to its share in thejoint operation: assets held individually by it and assets held jointly based on its share; liabilitiesassumed individually by it and liabilities assumed jointly based on its share; revenue from thesale of its share in the output of the joint operation; revenue from the sale of the output of thejoint operation based on its share; expenses incurred individually by it and expenses incurredby the joint operation based on its share.
9. Criteria of cash and cash equivalents
Cash refers to the Group’s cash on hand and deposits that can be used for payment at anytime; cash equivalent refers to the investment held by the Group with a short term, strongliquidity, easy to convert into cash with a known amount, and with low risk of value changes.
10. Foreign currency business and foreign currency financial statement conversion
√Applicable □Not applicable
For foreign currency transactions, the Group will translate the foreign currency amountsinto its functional 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 differencebetween settlement and monetary items is recognized in the profit or loss for the current period,except for the difference arising from the special foreign currency borrowing relating to theacquisition and construction of the assets qualified for capitalization, which will be treated basedon the principles for the capitalization of borrowing expenses. Foreign currency non-monetaryitems measured at historical cost are still converted using the exchange rate used at initialrecognition, without changing their accounting base currency amount. The foreign currencynon-monetary items measured by fair value are translated according to the spot exchange rateon the fair value determination date and the difference arising therefrom is recognized in theprofit or loss or other comprehensive income for the current period based on the nature of theitems.
The Group translates the functional currency of its foreign business into RMB whilepreparing the financial statements. The assets and liabilities items in the balance sheet aretranslated according to the spot exchange rate on the balance sheet date, the shareholders’equity items are translated according to the spot exchange rate at the occurrence of the itemsexcept for “undistributed profits”; revenue and expenses items in the income statement aretranslated according to the average exchange rate during the period in which the transactionhappens (conversion shall be at the spot rate on the date of the transaction, unless exchangerate fluctuations make such conversion inappropriate). The translation differences of foreigncurrency statements arising from the above translations are recognized as othercomprehensive income. For the disposal of foreign business, other comprehensive incomerelating to the foreign business is recognized in the profit or loss of the disposal for the currentperiod and is calculated pro rata for partial disposal.
Foreign currency cash flows and cash flows of overseas subsidiaries are converted usingthe average exchange rate for the period in which the cash flows occur (unless exchange ratefluctuations make the exchange rate inappropriate, the spot exchange rate on the day the cashflows occur) is used for conversion. The amount of impact of the changes in exchange rate oncash is separately stated in the cash flow statement as an adjustment item.
11. 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 partyto a financial instrument contract.The Group will derecognize a financial asset (or a part of the financial asset or a part of agroup of similar financial assets), i.e. writing off the asset from its account and balance sheet, if:
(1) The right to receive cash flows from financial assets expires;
(2) The Company transferred the right to receive cash flows from financial assets, orassumed the obligation to timely and fully pay the received cash flows to third parties under a"pass through agreement"; and essentially transferred almost all the risks and rewards ofownership of the financial asset, or relinquished control over the financial asset even though itneither transferred nor retained almost all the risks and rewards of ownership.
If a financial liability has been fulfilled, revoked or expired, it will be derecognized. If anexisting financial liability is replaced by the same creditor with another financial liability undersubstantially different terms or the terms of the existing liability are substantially modified inwhole, the existing liability will be derecognized and the new liability will be recognized, and thedifference will be recognized 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. Buying and sellingfinancial assets in a conventional manner refers to the purchase or sale of financial assets inaccordance with contractual provisions, and the terms of the contract stipulate that financialassets are delivered according to the time schedule usually determined by regulations ormarket practices. The transaction date refers to the date when the Group promises to buy orsell the financial assets.
Classification and measurement of financial assets
The financial assets of the Group are classified at initial recognition based on the businessmodel of managing financial assets and the contractual cash flow characteristics of financialassets as financial assets measured at amortized cost, financial assets measured at fair valuewith changes recognized in other comprehensive income, and financial assets measured at fairvalue with changes recognized in current period profit and loss. All affected related financialassets will be reclassified only when the Group changes its business model for managingfinancial assets.
If a financial asset is measured by fair value at initial recognition, but the accountsreceivable or notes receivable from the sale of goods or rendering of service do not includesignificant financing components or the financing components with a term no longer than oneyear 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 fairvalue are recognized in the profit or loss for the current period, the related transaction fees willbe directly recognized in the profit or loss for the current period; the related transaction fees ofother financial assets 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 cost
A financial asset is classified into those measured by amortized cost, if the business modelfor the management of the asset is for the purpose of collecting contractual cash flow; and theterms of the contract of the asset stipulate that the cash flow generated on the specific date isonly the repayment of principal and the payment of interest on the outstanding principal. Theinterest income of such financial assets is recognized with the effective interest method, and thegains or losses from the de-recognition, modification or impairment thereof are all recognized inthe profit or loss for the current period.
Investment in the equity instruments that are measured by fair value and of whichthe changes in fair value are recognized in other comprehensive 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 infair value are recognized in other comprehensive income. Only the related dividend income(except for the dividend income expressly acting as a recovery of investment cost) isrecognized in the profit or loss for the current period, while the subsequent changes in fair valueare recognized in other comprehensive income, and no provision is required for impairment.When the financial assets are derecognized, the accumulated gains or losses previously
recognized in other comprehensive income will be moved out of other comprehensive incomeand recognized in retained earnings.Financial assets that are measured by fair value and of which the changes in fairvalue are recognized in the profit or loss for the current period
The financial assets other than the above financial assets measured by amortized cost andthe above financial assets that are measured by fair value and of which the changes in fairvalue are recognized in other comprehensive income are classified as the financial assets thatare measured by fair value and of which the changes in fair value are recognized in the profit orloss for the current period. Those financial assets are subsequently measured by fair value andall changes in the fair value thereof are recognized in the profit or loss for the current period.
Classification and measurement of financial liabilities
The financial liabilities of the Group are classified at initial recognition as financial liabilitiesmeasured at fair value through profit or loss, and financial liabilities measured at amortized cost.For financial liabilities measured at fair value through profit or loss, the relevant transactioncosts are directly recognized in profit or loss, while the relevant transaction costs of financialliabilities measured at amortized cost are recognized in their initial recognition amount.
The subsequent measurement of financial liabilities depends on the classification thereof:
Financial liabilities measured at fair value through profit or loss
The financial liabilities that are measured by fair value and of which the changes in fairvalue are recognized in the profit or loss for the current period include financial liabilities held fortrading (including the derivative instruments as financial liabilities) and the liabilities that aredesignated at initial recognition as the financial liabilities that are measured by fair value and ofwhich the changes in fair value are recognized in the profit or loss for the current period. Thefinancial liabilities held for trading (including the derivative instruments as financial liabilities) aresubsequently measured by fair value and all changes in the fair value are recognized in theprofit or loss for the current period.
Financial assets measured at amortized cost
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 measuresthe loss provision based on the amount of expected credit loss equivalent to the entire durationunder a simplified measurement method,
For the financial assets not measured with the simplified method, the Group evaluates oneach balance sheet date whether their credit risks have increased significantly since the initialrecognition. If the credit risk of a financial asset has not increased significantly since the initialrecognition, the asset is in the first stage and the Group will make provision for loss based onthe amount of expected credit loss within the coming 12 months and calculate interest incomebased on the book balance and effective interest rate; if the credit risk has increasedsignificantly since the initial recognition, but credit has not been impaired, the asset is in thesecond stage and the Group will make provision for loss equivalent to the amount of expectedcredit loss during the entire term and calculate interest income based on the book balance andeffective interest rate; if credit has been impaired after the initial recognition, the asset is in thethird stage and the Group will make provision for loss equivalent to the amount of expectedcredit loss during the entire term and calculate interest income based on the amortized cost andeffective interest rate.
The Group evaluates the expected credit losses of financial instruments on an individualand grouping basis. The Group considers the credit risk characteristics of different customers,evaluates the expected credit losses of accounts receivable based on grouping by aging, anddetermines the aging based on the invoicing date. Except for the aforementioned financialinstruments that are evaluated for expected credit losses on a grouping basis, the Groupassesses their expected credit losses on an individual basis.
Please refer to Note XII. 1. Risk of Financial Instruments for the disclosure of the criteria forsignificantly increasing credit risk and the definition of credit impairment assets that haveoccurred by the Group.
The factors reflected in the Group's method of measuring expected credit losses offinancial instruments include: unbiased probability-weighted average amount determined byevaluating a series of possible outcomes; time value of money; no unnecessary additional costor effort on the balance sheet date Reasonable and evidence-based information that is readilyavailable about past events, current conditions and forecasts of future economic conditions.When the Group no longer reasonably expects that it can recover the contractual cash flowof a financial asset in whole or in part, it will directly write down the book balance of the asset.
12. Notes receivable
□ Applicable √Not applicable
13. accounts receivable
√Applicable □Not applicable
Grouping classification and determination basis of provision for bad debt based ongrouping of credit risk characteristics
√Applicable □Not applicable
Please refer to Note V - Important Accounting Policies and Accounting Estimates - 11.Financial Instruments.
Account aging calculation method in which the credit risk characteristic grouping iscomfirmed by account aging
√Applicable □Not applicable
Please refer to Note V - Important Accounting Policies and Accounting Estimates - 11.Financial Instruments.
Determination criteria for provision of bad debts on an individual basis
√Applicable □Not applicable
Please refer to Note V - Important Accounting Policies and Accounting Estimates - 11.Financial Instruments.
14. Receivables Financing
□ Applicable √Not applicable
15. Other receivables
√Applicable □Not applicable
Grouping classification and determination basis of provision for bad debt based ongrouping of credit risk characteristics
√Applicable □Not applicable
Please refer to Note V - Important Accounting Policies and Accounting Estimates - 11.Financial Instruments.
Account aging calculation method in which the credit risk characteristic grouping iscomfirmed by account aging
√Applicable □Not applicable
Please refer to Note V - Important Accounting Policies and Accounting Estimates - 11.Financial Instruments.
Determination criteria for provision of bad debts on an individual basis
√Applicable □Not applicable
Please refer to Note V - Important Accounting Policies and Accounting Estimates - 11.Financial Instruments.
16. Inventories
√Applicable □Not applicable
Inventories category, valuation method for issuance, inventory system, amortization method forlow-value consumables and packaging materials
√Applicable □Not applicable
Inventories includes raw materials, work-in-progress materials, finished goods, real estatedevelopment costs and real estate development products.Inventories is initially measured by cost. The costs of inventory except development costsand development products include the procurement cost, processing cost and other costs. Theactual costs of items out of inventory are determined with the weighted average method.Work-in-progress materials include low-value consumables and packages, which are amortizedwith the one-off amortization method.Development costs refer to the properties that have not been completed and are developedfor the purpose of being sold. Development products refer to the properties that have beencompleted and are ready for sale. The actual costs of real estate development costs anddevelopment products include the land acquisition cost, expenditures on construction andinstallation works, capitalized interest and other direct and indirect development expenses. Theuse right of the land for development purpose at the development of a project is amortized andrecognized as the development cost of the project based on the site area of the developmentproduct, and the development cost will be changed over to development product after beingcompleted.If the public auxiliary facilities are completed earlier than the related development product,the facilities will be allocated to and recognized in the development cost of related developmentproject based on the floor space of the project after final accounting of the facilities uponcompletion; if the public auxiliary facilities are completed later than the related developmentproduct, they will be recognized in the development cost of related development project basedon the predicted cost of the public auxiliary facilities.Hotel, catering and fresh goods inventories are subject to onsite inventory, while otherinventories are subject to perpetual inventory.
Recognition criteria and provision methods for provision for inventory depreciation
√Applicable □Not applicable
On the balance sheet date, inventory is measured by cost and net realizable value,whichever is lower. If the cost is higher than the net realizable value, provision will be made forinventory depreciation, which will be recognized in the profit or loss for the current period. Netrealizable value is the estimated selling price of inventory less the cost estimated to occur as ofcompletion, estimated sales expenses and related taxes. In principle, provisions for inventorydepreciation shall be made for inventory items individually. For the inventory with a largequantity and a low unit price, inventory depreciation provision will be made based on the Groupsof items.
Grouping classification and determination basis for provision for inventory depreciationon a grouping basis, and determination basis for net realizable value of inventory ofdifferent categories
□ Applicable √Not applicable
Calculation methods and determination basis for the net realizable value of eachinventory aging grouping for which the net realizable value is comfirmed by inventoryaging
□ Applicable √Not applicable
17. Contract assets
□ Applicable √Not applicable
18. Non-current assets or disposal groups held for sale
□ Applicable √Not applicable
Recognition criteria and accounting treatment methods for non-current assets or disposalgroups classified as held for sale
□ Applicable √Not applicable
Recognition criteria and reporting methods for termination of operations
□ Applicable √Not applicable
19. 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 timeof being acquired. The initial investment cost for long-term equity investments obtained throughbusiness combinations under common control shall be the share of the book value of theowner's equity of the transferred party obtained on the combinaton date in the consolidatedfinancial statements of the ultimate controlling party; The difference between the initialinvestment cost and the book value of the merger consideration shall be adjusted to the capitalreserve (if it is not sufficient to offset, it shall be offset against retained earnings). Long termequity investments obtained through business combinations not under common control areinitially invested at the cost of the merger (if a business combination not under common controlis achieved through multiple transactions in steps, the initial investment cost is the sum of thebook value of the equity investments held by the acquired party before the purchase date andthe newly added investment cost on the purchase date). The initial investment costs of thelong-term equity investment acquired other than through merger are determined with thefollowing methods: if an investment is acquired through the payment of cash, its initialinvestment cost consists of the purchase price actually paid and the expenses, taxes and othernecessary expenses directly relating to the acquisition of the investment; and if an investment isacquired through the offering of equity securities, its initial investment cost is the fair value of theequity securities offered.
For the accounting of the long-term equity investment through which the Company canexercise control over the investees, the Company adopts the cost method in individual financialstatements. Control refers to the power over an investee, with which the investor enjoysvariable return by participating in the investee’s related activities and is able to exercise itspower over the investee to affect the amount of return.
In the cost method, the long-term equity investment is measured by initial investment cost.If the investment is added or recovered, the cost of long-term equity investment will be adjusted.The cash dividend or profit declared by the investees to be distributed is recognized as theinvestment income for the current period.
If the Group has joint control over or significant influence on the investee, the long-termequity investment will be measured with the equity method. Joint control refers to joint controlover an arrangement in accordance with related agreements, and decisions on the activities
relating to the arrangement shall be made only after the parties sharing the control reach anagreement. Significant influence refers to the power over the decision-making on the financialaffairs and business policies of the investee, but the investor does not have control or jointcontrol with others over the formulation of those policies.In the equity method, if the initial investment cost of long-term equity investment is higherthan the 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 thelong-term equity 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 thelong-term equity investment shall be adjusted based on the share in the net gains or losses andother comprehensive income realized by the investees to be enjoyed or assumed. The share inthe investee’s net gains or losses to be enjoyed shall be determined based on the fair value ofthe investee’ s identifiable assets at the acquisition of investment, according to the Group’saccounting policies and accounting periods and after net profits of the investee are adjustedwith the portion of gains or losses from the internal transactions with its associates and jointventures that is attributable to the investor based on the share to be enjoyed by it (but if the lossfrom internal transactions falls in the assets impairment loss, it shall be recognized in full) offset,except for the invested and sold assets that constitute businesses. The book value of long-termequity investment shall be reduced according to the share to be enjoyed by it in the profits orcash dividend declared by the investees to be distributed. For an investee’s net lossesrecognized by the Group, the book value of the long-term equity investment and other long-termequity that substantially constitute net investment in the investee shall be written down to zeroat maximum, except for the extra losses for which the Group is liable. For the investee’s otherchanges in shareholders’ equity other than net gains or losses, other comprehensive incomeand profit distribution, the book value of the long-term equity investment will be adjusted and thechanges will be recognized in the shareholders’ equity.
20. Investment properties
(1). With the cost measurement model
Depreciation or amortization method
Investment properties refer to properties held for the purpose of earning rent or capitalappreciation, or both.
Investment real estate is initially measured at cost. The subsequent expenses relating toinvestment properties will be recognized in the cost of the investment properties if the economicbenefits relating 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 timeof being incurred.
The Group subsequently measures its investment properties with the cost model. Thedepreciation/amortization of investment properties is calculated on a straight line basis. Theservice life, estimated net residual value and annual depreciation rate of investment propertiesare as follows:
| 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% |
21. Fixed assets
(1). Confirmation conditions
√Applicable □Not applicable
A fixed asset will be recognized only if the economic benefits relating thereto are very likelyto flow 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 ofthe fixed asset, and the book value of the replaced part will be deleted; otherwise, thesubsequent expenses will be recognized in the profit or loss for the current period at the time ofbeing incurred.
Fixed assets are initially measured by cost. The costs of purchasing a fixed asset includethe purchase price, related taxes and other expenses that are incurred before the fixed asset ismade to the predetermined ready-for-use status and are directly attributable to the asset.
The Group reviews and makes adjustment to, if necessary, the service life, estimatedresidual value and depreciation method of its fixed assets at least at the end of each year.
(2). Depreciation method
√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% |
22. Construction in progress
√Applicable □Not applicable
The cost of construction in progress is determined based on the actual expenses, includingthe necessary expenses on the works incurred during the construction, the borrowing costsincurred before the works reach the predetermined ready-for-use status that shall be capitalizedand other related expenses.
The construction in progress is transferred to fixed assets, investment properties andlong-term deferred expenses when it reaches the expected serviceable condition. Thestandards are as follows:
| Standards for carrying forward fixed assets | |
| Buildings and structures | Actual start of use |
| Machinery equipment | Completion of installation and commissioning |
| Transportation equipment | Obtaining a transportation vehicle driving license |
| Other equipment | Actual start of use or completion of installation and debugging |
23. Borrowing costs
√Applicable □Not applicable
Borrowing costs that are directly attributable to the acquisition, construction or productionof the assets qualified for capitalization shall be capitalized, and other borrowing costs shall berecognized in the profit or loss for the current period.When capital expenditures and borrowing costs have already occurred, and the necessaryacquisition or production activities to bring the asset to its intended usable or saleable statehave begun, borrowing costs begin to be capitalized.
The borrowing costs for the assets qualified for capitalization shall cease being capitalizedwhen the assets reach the predetermined ready-for-use or sale status after the acquisition,construction or production. The borrowing costs incurred subsequently will be recognized in theprofit or loss for the current period.
During the capitalization period, the capitalization amount of interest for each accountingperiod shall be determined according to the following method: specialized loans shall bedetermined based on the actual interest expenses incurred in this period, minus temporarydeposit interest income or investment income; The general borrowing used is calculated anddetermined based on the weighted average of the accumulated asset expenses exceeding thespecial borrowing portion multiplied by the weighted average interest rate of the generalborrowing used.
If assets that meet the capitalization criteria experience abnormal interruptions during theacquisition, construction, or production process, except for the necessary procedures to reachthe predetermined usable or saleable state, and the interruption period lasts for more than 3consecutive months, the capitalization of borrowing costs shall be suspended. The borrowingcosts incurred during the interruption will be recognized as expenses and in the profit or loss forthe current period until the acquisition, construction or production of the asset is resumed.
24. Biological assets
□ Applicable √Not applicable
25. Oil and gas assets
□ Applicable √Not applicable
26. Intangible assets
(1). Service life and its determination basis, estimated situation, amortization method orreview procedure
√Applicable □Not applicable
Goodwill is an intangible asset with an uncertain useful life. Such intangible assets are notamortized, and impairment testing is conducted annually regardless of whether there are signsof impairment; During each accounting period, its useful life is reviewed, and if there is evidencethat its useful life is limited, accounting treatment is carried out according to the policy ofintangible assets with limited useful life.
The remaining intangible assets are amortized using the straight-line method over theiruseful lives, with the following useful lives:
| Category | Service life | Determination basis |
| Land use right | 40-50 years | Term of land use rights |
| Software and software copyright | 10 years | Which is shorter between the contract period and the |
expected service life
(2). The scope of R&D expenditure collection and related accounting treatment methods
√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 thecurrent period at the time of being incurred. Development expenditures can be capitalized onlywhen all of the following conditions are met at the same time, that is, it is technically feasible tocomplete the intangible asset to make them usable or saleable; there is an intention to completethe intangible asset and use or sell it; the way for intangible assets to generate economicbenefits, including the ability to prove that there are markets for the products generated by theintangible assets or the intangible assets themselves. Intangible assets that will be usedinternally can prove their usefulness; there are sufficient technology, financial resources andother resource supports to complete the development of the intangible asset and ability to useor sell the intangible asset; the expenditure attributable to the development of such intangibleasset can be reliably measured. Development expenditures that do not satisfy the aboveconditions are included in the current profits and losses when incurred.
27. Impairment of long-term assets
√Applicable □Not applicable
The impairment of assets other than inventory, deferred income tax assets, and financialassets is determined using the following method: On the balance sheet date, it is determinedwhether there are signs of possible impairment of assets. If there are signs of impairment, theGroup will estimate their recoverable amount and conduct impairment testing; For goodwillformed by business combinations, intangible assets with uncertain useful lives, and intangibleassets that have not yet reached a usable state, regardless of whether there are signs ofimpairment, impairment testing shall be conducted at least at the end of each year.
The recoverable value of an asset is determined based on the fair value of the asset lessthe disposal expenses or the present value of the expected future cash flows of the asset,whichever is higher. The Group estimates the recoverable value of each asset. For an assetwhose recoverable value is hard to be estimated, the Group estimates the recoverable value ofthe assets group which the asset belongs to. An assets group is identified based on whether themain cash inflows from the Group are independent from the cash inflows from other assets orassets groups.
When the recoverable value of an asset or assets group is lower than its book value, theGroup will write down its book value to the recoverable value and the amount written down willbe recognized in the profit or loss for the current period; meanwhile, it will make provision for theimpairment thereof.
As for the impairment test of goodwill, the book value of goodwill shall be allocated to therelevant asset groups or groups of asset groups in a reasonable manner from the date ofacquisition. The relevant asset groups or groups of asset groups refer to asset groups or groupsof asset groups that can benefit from the synergistic effects of business combinations, and arenot larger than the operating segments determined by the Group.
Compare the book value and recoverable amount of asset groups or groups of assetgroups that contain goodwill. If the recoverable amount is lower than the book value, theimpairment loss amount is first offset against the book value of goodwill allocated to the assetgroup or group of asset groups. Then, based on the proportion of the book value of other assetsin the asset group or group of asset groups except for goodwill, the book value of other assets isproportionally offset.
The above assets impairment loss will not be reversed during the subsequent accountingperiods.
28. Long-term deferred expenses
√Applicable □Not applicable
Long-term prepaid expenses are amortized with the straight-line method and theamortization periods are as follows:
| Category | Amortization period |
| Architectural ornaments of buildings | 3-5 years |
| Advertising facilities | 3-5 years |
29. Contract liabilities
√Applicable □Not applicable
A contractual liability refers to an obligation to transfer goods or services to a customer forthe consideration received or receivable from the customer, such as the amount received by theenterprise before the transfer of committed goods or services.
30. Employee compensation
(1). Accounting treatment methods for short-term compensation
√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 theprofit or loss for the current period or costs of related assets.
(2). Accounting treatment method for 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 losswhen incurred.
(3). Accounting treatment methods for termination benefits
√Applicable □Not applicable
Where the Group provides severance benefits to its employees, the employeecompensation liabilities arising from the severance benefits will be recognized, and the amountwill be recognized in the profit or loss for the current period on the earlier date below: the datewhen the Group cannot unilaterally withdraw the severance benefits provided as a result of theemployment termination plan or downsizing proposal; or the date when the Group recognizesthe costs or expenses relating to the reorganization involving the payment of severancebenefits.
(4). Accounting treatment methods for other long-term employee benefits
□ Applicable √Not applicable
31. Estimated liabilities
□ Applicable √Not applicable
32. 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 theGroup uses shares or other equity instruments as the consideration for settlement to obtainservices.
The equity-settled share-based payment in exchange for services provided by employeesshall be measured at the fair value of the equity instruments granted to employees. If it can beexercised immediately after the grant, it shall be included in the relevant costs or expenses atfair value on the grant date, and the capital reserve shall be increased accordingly; if it cannotbe exercised until the service within the waiting period has been completed or the specifiedperformance conditions have been satisfied on each balance sheet date during the waitingperiod, the Group will, based on the best estimate of the number of exercisable equityinstruments, include the services acquired in the current period, as relevant costs or expensesbased on the fair value on the grant date, and increase the capital reserve accordingly . The fairvalue of equity instruments is determined using market quotations, as detailed in Note XIII. 2.If the equity-settled share payment is canceled, it will be treated as an accelerated exerciseon the cancellation day, and the unrecognized amount shall be recognized immediately. If anemployee or other party has option to satisfy the non-exercising conditions but fails to satisfywithin the waiting period, it shall be treated as cancellation of equity-settled share-basedpayment. However, if a new equity instrument is granted and if it is determined that the newequity instrument granted is used to replace the canceled equity instrument on the grant date ofthe new equity instrument, the replacement equity instruments granted in the same way shall betreated in the same way as that for the modification of the terms and conditions for the originalequity instrument.
33. Preferred stocks, perpetual bonds, and other financial instruments
□ Applicable √Not applicable
34. Revenue
(1). Disclosure of accounting policies adopted for revenue recognition and
measurement by business type
√Applicable □Not applicable
The Group recognizes incomes when it has fulfilled its performance obligations in thecontract, that is, the customer has acquired the control over the relevant goods or services. Theacquisition of the control over related goods or services means the ability to control the use ofthe goods or the provision of the service and obtain almost all of the economic benefits fromthem.
Commodity sales contracts
Sales contracts between the Group and customers typically include commitments totransfer goods, which may vary depending on the customer's agreement. As customers areable to benefit separately from the aforementioned goods or services or use them together withother readily available resources, and there is no significant integration, modification,customization, or high correlation between the aforementioned goods or services, the Groupconsiders them as clearly distinguishable goods and constitutes separate performanceobligations.
On the basis of comprehensive consideration of the following factors, the Group recognizesrevenue at the time when the customer obtains control over the relevant goods: the current rightto receive payment for the goods, the transfer of the main risks and rewards of ownership of thegoods, the transfer of legal ownership of the goods, the transfer of physical assets of the goods,and the customer's acceptance of the goods.
Service contracts
The service contracts between the Group and customers usually include performanceobligations such as providing the use of shops in Yiwu Market and the supporting services foroperation , providing hotel accommodation and catering services, providing paid use servicesfor funds to external parties of the Group, and providing collection and payment services.
The use of shops in Yiwu Market and its supporting 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 aperformance obligation to be fulfilled within a certain period of time and recognizes an incomebased on the performance progress, except that the performance progress cannot bereasonably determined. Under the output method, the Group determines the performance
progress of the provision of the use of shops in Yiwu Market and the supporting services for itsoperation based on the number of using days of the shops When the performance progresscannot 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 untilthe performance progress can be reasonably 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 aperformance obligation to be fulfilled within a certain period of time and recognizes an incomebased on the performance progress, except that the performance progress cannot bereasonably determined. In accordance with the output method, the Group determines theperformance progress of hotel accommodation services based on the number of staying days. .When the performance progress cannot be reasonably determined, if the cost incurred by theGroup is expected to be compensated, the income shall be recognized according to the amountof the cost incurred until the performance progress 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 asthe point of income recognition.Fixed -time paid funding 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 aperformance obligation to be fulfilled within a certain period of time and recognizes an incomebased on the performance progress, except that the performance progress cannot bereasonably determined. Under the output method, the Group determines the performanceprogress of the services for the fixed-term paid funding services based on the number of usingdays of funds. When the performance progress cannot be reasonably determined, if the costincurred by the Group is expected to be compensated, the income shall be recognizedaccording to the amount of the cost incurred until the performance progress can be reasonablydetermined.
(2). Adopting different business models for similar businesses involves differentrevenue recognition methods and measurement methods
□ Applicable √Not applicable
35. Contract cost
√Applicable □Not applicable
The Group's assets related to contract costs include contract acquisition costs and contractperformance costs. According to their liquidity, they are presented in inventory, other currentassets and other non-current assets respectively.
If the incremental cost incurred by the Group to acquire a contract is expected to berecoverable, it is recognized as an asset as the contract acquisition cost, unless theamortization period of the asset does not exceed one year.
If the cost incurred by the Group for the performance of the contract does not apply to thescope of the relevant standards such as inventory, fixed assets or intangible assets, and meetsthe following conditions at the same time, it is recognized as an asset as the cost of contractperformance:
(1) This cost is directly related to a current or expected contract, including direct labor,direct materials, manufacturing expenses (or similar expenses), costs clearly borne by thecustomer, and other costs incurred solely due to the contract;
(2) This cost increases the resources that the enterprise will use in the future to fulfill itscontractual obligations;
(3) This cost is expected to be recovered.
The Group amortizes the assets related to contract costs on the same basis as the revenuerecognition related to the assets, and includes them in the current profit and loss.
For assets related to contract costs, if the book value is higher than the difference betweenthe following two items, the Group will make provision for impairment for the excess part andrecognize it as asset impairment loss:
(1) The expected remaining consideration that the enterprise can obtain from the transferof goods or services related to the asset;
(2) The estimated cost to be incurred for the transfer of the relevant goods or services.
36. Government grants
√Applicable □Not applicable
A government grant is recognized when it can meet the requirements and can be received.If a government grant falls in monetary assets, it will be measured by the amount received orreceivable. If a government grant does not fall in monetary assets, it will be measured by fairvalue. If the fair value of a grant cannot be determined reliably, it will be measured by itsnominal amount.
A government grant prescribed by government documents to be used to acquire orconstruct or otherwise form long-term assets will be deemed as an asset-related governmentgrant; if no government documents have express provisions, the grants that are used to acquireor construct or otherwise form long-term assets will be deemed as asset-related governmentgrants and others as income-related government grants.
The Group recognizes government subsidies received using the total amount method.
Government subsidies related to income, used to compensate for related costs or losses infuture periods, are recognized as deferred income and are recognized in this period's profit orloss or offset against related costs during the period of recognition of related costs or losses;For compensating for related costs or losses that have already occurred, they are directlyrecognized in this period's profit and loss or offset against related costs. The Group recognizesgovernment subsidies received using the total amount method.
The asset-related government grants shall be used to offset the book value of relatedassets; or recognized as deferred income, and included in profit and loss in stages under areasonable and systematic method during the useful life of the related assets (but governmentgrants measured at a nominal amount shall be directly included in the current profit and loss); ifthe relevant asset is sold, transferred, scrapped or damaged before the end of its useful life, thebalance of the undistributed deferred income shall be transferred to the current profit and losswhen the asset is disposal.
37. Deferred income tax assets/ deferred income tax liabilities
√Applicable □Not applicable
The Group recognizes deferred income tax with the balance sheet liability method basedon the temporary difference between the book value of assets and liabilities on the balancesheet date and the tax base and that between the book value of the items that have not beenrecognized as assets and liabilities but whose tax base can be determined according to the taxlaw and the tax base thereof.
All taxable temporary differences will be recognized as deferred income tax liabilities,unless:
(1) Taxable temporary differences arise in the following transactions: initial recognition ofgoodwill, or initial recognition of assets or liabilities arising from individual transactions with thefollowing characteristics: the transaction is not a business combination, the transaction does notaffect accounting profits or taxable income or deductible losses at the time of occurrence, andthe initially recognized assets and liabilities do not result in equal amounts of taxable temporarydifferences and deductible temporary differences;
(2) For taxable temporary differences related to investments in subsidiaries, joint ventures,and associates, the timing of the reversal of such temporary differences can be controlled and itis likely that they will not be reversed in the foreseeable future.
For the deductible temporary differences and the deductible losses and tax deductions thatcan be carried forward to the subsequent years, the Group recognizes the deferred income taxassets arising therefrom within the limit of the future taxable income that is very likely to be
obtained and used to be offset against the deductible temporary differences, deductible lossesand tax deductions, unless:
(1) Deductible temporary differences arise in the following individual transactions: thetransaction is not a business combination, the transaction does not affect accounting profits ortaxable income or deductible losses at the time of occurrence, and the initially recognizedassets and liabilities do not result in an equal amount of taxable temporary differences anddeductible temporary differences;
(2) For deductible temporary differences related to investments in subsidiaries, jointventures, and associates, such temporary differences are likely to be reversed in theforeseeable future and are likely to receive taxable income used to offset such temporarydifferences in the future.
The Group measures, on the balance sheet date, the deferred income tax assets andliabilities based on the applicable tax rate for the period when the assets are expected to berecovered or the liabilities are expected to be paid off, in accordance with the tax law, which willalso reflect the impact of the way of the expected recovery of assets or repayment of liabilitieson the income tax on the balance sheet date.
The Group reviews the book value of deferred income tax assets on the balance sheet date.If it is very likely to be unable to acquire adequate taxable income to be offset against thebenefits of deferred income tax assets in the future, the book value of deferred income taxassets will be written down. On the balance sheet date, the Group re-evaluates theunrecognized deferred income tax assets and recognizes the same to the extent that it is verylikely to acquire adequate taxable income to reverse all or part of the deferred income taxassets.
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 currentincome tax assets and liabilities in net amount; the deferred income tax assets and liabilities arerelated to the income tax levied by an identical tax authority on an identical taxpayer, or arerelated to the income tax levied by an identical tax authority on different taxpayers, but duringeach important period when the deferred income tax assets and liabilities are reversed, theinvolved taxpayers intend to settle the current income tax assets and liabilities in net amount oracquire assets or pay off debts simultaneously.
38. Lease
√Applicable □Not applicable
Judgment basis and accounting treatment methods for simplifying short-term leases andlow-value asset leases as a lessee
√Applicable □Not applicable
The Group recognizes leases with a lease term not exceeding 12 months and excludingpurchase options as short-term leases on the commencement date of the lease term; Leaseswith lower value when a single leased asset is considered a brand new asset are recognized aslow-value asset leases. The Group chooses not to recognize right-of-use assets and leaseliabilities for short-term leases and leases of low-value assets. In each period of the lease term,it is included in the relevant asset cost or current profit and loss on a straight-line basis.
Classification criteria and accounting treatment methods for leasing as a lessor
√Applicable □Not applicable
The lease that transfers virtually all the risks and rewards related to the ownership of theleased asset on the lease commencement date is a finance lease, and other leases areoperating leases.
Rental income from operating leases is recognised in profit or loss on a straight-line basisover each period of the lease term, and variable lease payments not included in lease receiptsare included in profit or loss for the current period when actually incurred. The capitalized initialdirect expenses shall be amortized on the same basis recognized with the rental income duringthe lease period, and shall be included in the current profit and loss in installments.
39. Other important accounting policies and accounting estimates
√Applicable □Not applicable
Measurement of fair valueThe Group measures the fair values of equity instruments investments on each balancesheet date. Fair value refers to the price received from the sale of an asset or paid for thetransfer of a liability by a market player in the orderly transactions on the measurement date.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 offerprice for an identical asset or liability that can be obtained in an active market on themeasurement date; Level 2 inputs are the inputs that are directly or indirectly observable forrelated assets or liabilities other than Level 1 inputs; Level 3 inputs are the inputs that areobservable for related assets or liabilities.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 estimatesIn the preparation of financial statements, the management need to make judgments,estimates and assumptions, which will affect the presented amounts and disclosure of revenue,expenses, assets and liabilities and the disclosure of contingent liabilities on the balance sheetdate. However, the uncertainty of these assumptions and estimates may result in significantadjustments to the book value of future affected assets or liabilities.JudgmentsWhen 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 a lessorThe Group has signed lease contracts for investment properties. The Group thinks thataccording to the terms of the lease contracts, the Group retains all major risks andcompensations on the titles of those real estate properties and thus handles them as operatingleases.Classification of investment properties and fixed assetsThe Group classifies the buildings and structures leased out other than for the mainbusinesses such as market and hotel services as well as the auxiliary land use rights thereof asinvestment properties, including but not limited to the auxiliary banking and catering outlets formarket operation and the auxiliary service outlets for hotels. Other buildings and structuresleased out are classified as fixed assets.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 Groupfactors in the enterprise evaluation, the way of reporting financial assets performance to keymanagement personnel, the risks affecting the performance of financial assets, the way ofmanaging financial assets and the way of related business management personnel obtainingremunerations. When assessing whether to aim at the collection of contractual cash flow, theGroup needs to analyze the reasons, time, frequency and value for sale of the financial assetsto be sold before the expiry dates thereof.Contract cash flow characteristicsThe classification of financial assets at initial recognition depends on the characteristics ofthe contractual cash flow of the financial assets. For the judgment on whether the contractualcash flow is the repayment of principal and the payment of interest on outstanding principal,including the evaluation of the adjustment to the time value of money, it should be judgedwhether it is significantly different from the benchmark cash flow; for the financial assets withthe early repayment characteristic, it should be judged whether the fair value of the earlyrepayment characteristic is extremely low.Uncertainties of estimates
The following are key assumptions regarding the future at the balance sheet date and otherkey sources of estimation uncertainty that may result in significant adjustments to the bookvalue of assets and liabilities in future accounting periods.
Impairment of financial instruments
The 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 andtake into account all reasonable and evidenced information, including forward-lookinginformation. When making these judgments and estimates, the Group infers the expectedchanges in the debtors’ credit risks based on their historical repayment data, in combinationwith the economic policies, macroeconomic indicators and industry risks. Different estimatesmay affect the provisions for impairment and the provision that has been made for impairmentmay not necessarily be equal to the actual amount of impairment loss in the future.
Net realizable value of property inventory
The Group’s property inventory is measured by cost or net realizable value, whichever islower. For the calculation of net realizable value, assumptions and estimates should be used. Ifthe management 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 thedifference will 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 otherthan financial assets have a sign of being impaired. Non-current assets other than financialassets are subject to impairment testing when there are indications that their book value isirrecoverable. When the book value of an asset or a group of assets is higher than itsrecoverable value, i.e. fair value less the disposal expenses or the present value of expectedfuture cash flow, whichever is higher, the asset or group has been impaired. For the fair valueless the disposal expenses, the Group refers to the agreed selling price or observable marketprice of the similar asset in a fair transaction, less the cost increase directly attributable to thedisposal of the asset. When predicting the present value of future cash flows, the managementmust estimate the expected future cash flows of the asset or group of assets and select anappropriate discount rate. When identifying a group of assets, the management considerwhether the smallest identifiable group of assets can generate income and cash flowsindependently from other departments or units, or the income and cash inflows generatedthereby are mostly independent from other departments or units, and also take into account theway of managing or monitoring production and operating activities and the way of makingdecisions on the continued use or disposal of the asset. Please refer to Note VI. 21 for details.
Goodwill impairment
The Group tests goodwill for impairment at least annually. This requires estimating thepresent value of the future cash flows of the asset group or groups of asset groups to which thegoodwill is allocated. When estimating the present value of future cash flows, the Group needsto estimate the cash flows generated by future asset groups or groups of asset groups, and atthe same time select an appropriate discount rate to determine the present value of future cashflows. Please refer to Note VI. 27 for details.
Fair value of non-listed equity investments
The Group determines the fair value of non-listed equity investments based on theexpected future cash flows discounted at the current discount rate of other financial instrumentswith similar contractual terms and risk characteristics. This requires the Group to estimate theexpected future cash flows, credit risk, volatility and discount rate, which brings uncertainties.
Development expenditure
When determining the amount of capitalization, management must make assumptions onthe expected future cash flow, the applicable discount rate, and the expected benefit period ofthe asset.
Deferred tax assets
To 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 inconnection with the outstanding deductible losses. This requires the management to use lots ofjudgments to estimate the acquisition time and amount of the taxable income to be acquired in
the future to determine the amount of deferred income tax assets to be recognized, inconsideration of the tax payment planning strategy.Lessee incremental borrowing interest rateFor leases where the interest rate implicit in the lease cannot be determined, the Groupuses the lessee's incremental borrowing rate as the discount rate to calculate the present valueof the lease payments. When determining the incremental borrowing rate, the Group takes theobservable interest rate as the reference basis for determining the incremental borrowing rateaccording to the economic environment it is in. On this basis, the Group adjusts the referenceinterest rate according to its own situation, the underlying asset situation, the lease term, theamount of lease liabilities and other specific conditions of the lease business to obtain theapplicable incremental borrowing rate.
40. 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
(3). From 2024, the implementation of new accounting standards or standardinterpretations for the first time would involve adjustments to the financialstatements at the beginning of the first implementation year
□ Applicable √Not applicable
41. Other
□ Applicable √Not applicable
VI. Taxes
1. Main tax types and tax rates
Major taxes and tax rates
√Applicable □Not applicable
| Tax | Base of taxation | Rate |
| VAT | The difference between the output tax amount calculated based on sales revenue and applicable tax rates, and the input tax amount allowed for deduction | The Company is a general taxpayer, and the taxable income is calculated for output tax at the tax rates of 13%, 9%, and 6%. Value added tax is calculated and paid based on the difference after deducting the input tax allowed for deduction in this period. In addition, for the sale of self-developed old real estate projects (the contract commencement date specified in the Construction Engineering Construction Permit is before April 30, 2016) and the rental of real estate acquired by the Group before April 30, 2016, the simplified tax calculation method is applicable, and the payable tax amount is calculated and paid at a 5% tax rate |
| Urban maintenance and construction tax | Actual paid value-added tax amount | Paid at 5% or 7% of the actual turnover tax paid. |
| Corporate income tax | Taxable income | Except for the tax incentives listed in Note VI. 1 and the subsidiaries registered in Prague, Czech Republic, Hong Kong Special Administrative Region, Germany, Kenya, Rwanda, and Dubai, the corporate income tax of the Company and its subsidiaries within the Group is calculated and paid at 25% of the taxable income. |
| Land appreciation tax | Value added from the transfer of real estate | According to the ratio of value-added to deduction items, a four-level progressive tax rate (30% to 60%) will be implemented for exceeding the rate. |
| Real estate tax | Ad valorem taxation: deducting a certain proportion from the original value of the property Levy based on rent: rental income | 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. |
| Education surcharge | Actual paid value-added tax amount | Paid at 3% of the actual turnover tax paid. |
| Local education surcharge | Actual paid value-added tax amount | Paid at 2% of the actual turnover tax paid. |
| Cultural undertaking development fee | Advertising turnover | Calculated and paid at 3% of the advertising industry's revenue. |
Disclosure of taxpayers subject to different income tax rates
√Applicable □Not applicable
| Taxpayer | Income tax rate (%) |
| Huafrica (Kenya) Investment Development Co., Limited | 30.00 |
| BETTER SILK ROAD RWANDA Ltd | 30.00 |
| Mingzhe Technology Development Co., Ltd. | 20.00 |
| European Huajie Investment Development Co., Ltd. | 19.00 |
| Yiwu China Commodities City (Hong Kong) International Trade Co., Ltd. | 16.50 |
| Hong Kong Better Silk Road Co., Ltd. | 16.50 |
| Yiwu China Commodity City (Germany) Co., Ltd. | 15.00 |
| Yiwu China Commodities City Big Data Co., Ltd. | 15.00 |
| BETTER SILK ROAD FZE | Not subject to corporate income tax |
2. Tax incentives
√Applicable □Not applicable
According to the Announcement on the Filing of High-tech Enterprises recognized byZhejiang Provincial Accreditation Agency in 2022 issued by the Office of the National High-techEnterprise Accreditation Management Leading Group, Yiwu China Small Commodities City BigData Co., Ltd. has been listed in the filing list of high-tech enterprises recognized by ZhejiangProvincial Accreditation Agency in 2022 and passed the recognition of high-tech enterprises.The Certificate number is GR202233004297, date of issue: December 24, 2022, valid period:
three years. From January 1, 2022 to December 31, 2024, Yiwu China Commodities City BigData Co., Ltd. will be subject to a reduced corporate income tax rate of 15%.
3. Other
□ 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 | 213,381.46 | 249,915.87 |
| Bank deposits | 976,757,905.00 | 2,922,477,584.50 |
| Other cash and cash equivalents | 2,725,584.48 | 7,820.24 |
| Total | 979,696,870.94 | 2,922,735,320.61 |
| Including: amount deposited abroad | 13,217,960.58 | 100,628,215.18 |
Other statements
Monetary funds with restricted usage rights are detailed in Note VII. 31. Assets withrestricted ownership or usage rights.
2. Held-for-trading financial assets
√Applicable □Not applicable
Unit: RMB
| Item | Closing balance | Opening balance | Reasons and basis for determination |
| 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 | 11,640,817.50 | 15,130,895.00 | / |
| Among them: | |||
| Equity instrument investment | 11,640,817.50 | 15,130,895.00 | / |
| Total | 11,640,817.50 | 15,130,895.00 | / |
Other notes:
□ Applicable √Not applicable
3. Derivative financial assets
□ Applicable √Not applicable
4. Notes receivable
(1). List of notes receivable by category
□ Applicable √Not applicable
(2). Notes receivable pledged by the Company at the end of the period
□ Applicable √Not applicable
(3). Notes receivable that have been endorsed or discounted by the Company at the endof the period and have not yet matured on the balance sheet date
□ Applicable √Not applicable
(4). Categorized disclosure based on the bad debt provision method
□ Applicable √Not applicable
Provision for bad debts on an individual basis:
□ Applicable √Not applicable
Provision for bad debts on a grouping basis:
□ Applicable √Not applicable
Provision for bad debts based on the general model of expected credit losses
□ Applicable √Not applicable
Classification basis and bad debt provision ratio for each stageNil
Explanation of significant changes in the book balance of accounts receivable with changes inloss provisions in this period:
□ Applicable √Not applicable
(5). The situation of bad debt provision
□ Applicable √Not applicable
In which the recovered or reversed amount is important:
□ Applicable √Not applicable
Other notes:
Nil
(6). Notes receivable actually written off during the current period
□ Applicable √Not applicable
Important notes receivable written off:
□ Applicable √Not applicable
Description of notes written off:
□ Applicable √Not applicable
Other notes:
□ Applicable √Not applicable
5. accounts receivable
(1). Disclosure by aging
√Applicable □Not applicable
Unit: RMB
| Account aging | Closing book balance | Opening book balance |
| Within 1 year | ||
| Including: sub-items | ||
| Within 1 year | 472,258,564.38 | 587,700,197.38 |
| Within 1 year | 472,258,564.38 | 587,700,197.38 |
| 1 to 2 years | 8,083,399.52 | 10,408,255.33 |
| 2 to 3 years | 1,522,338.68 | 1,195,926.30 |
| Total | 481,864,302.58 | 599,304,379.01 |
(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 (%) | |||
| Provision for bad debts on an individual basis | 6,261,907.10 | 1.30 | 6,261,907.10 | 100.00 | - | 6,261,907.10 | 1.04 | 6,261,907.10 | 100.00 | - |
| Among them: | ||||||||||
| Lease receivables | 6,261,907.10 | 1.30 | 6,261,907.10 | 100.00 | - | 6,261,907.10 | 1.04 | 6,261,907.10 | 100.00 | - |
| Provision for bad debts on a grouping basis | 475,602,395.48 | 98.70 | 140,838.20 | 0.03 | 475,461,557.28 | 593,042,471.91 | 98.96 | 184,676.82 | 0.03 | 592,857,795.09 |
| Among them: | ||||||||||
| Provision for bad debts by grouping of credit risk characteristics | 475,602,395.48 | 98.70 | 140,838.20 | 0.03 | 475,461,557.28 | 593,042,471.91 | 98.96 | 184,676.82 | 0.03 | 592,857,795.09 |
| Total | 481,864,302.58 | / | 6,402,745.30 | / | 475,461,557.28 | 599,304,379.01 | / | 6,446,583.92 | / | |
Provision for bad debts on an individual basis:
√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 provision for bad debts on an individual basis:
□ Applicable √Not applicable
Provision for bad debts on a grouping basis:
√Applicable □Not applicable
Provision items on a grouping basis: by grouping of credit risk characteristics
Unit: RMB
| Name | Closing balance | ||
| Accounts receivable | Bad debt provision | Provision ratio (%) | |
| Within 1 year | 472,258,564.38 | 50,914.35 | 0.01 |
| 1 - 2 years | 1,821,492.42 | 33,991.91 | 1.87 |
| 2 -3 years | 1,522,338.68 | 55,931.94 | 3.67 |
| Total | 475,602,395.48 | 140,838.20 | / |
Description of provision for bad debts on a grouping basis:
□ Applicable √Not applicable
Provision for bad debts based on the general model of expected credit losses
√Applicable □Not applicable
Unit: RMB
| Bad debt provision | Stage 1 | Stage 2 | Stage 3 | Total |
| Expected credit loss in the coming 12 months | Expected credit loss in the entire duration (credit has not been impaired) | Expected credit loss in the entire duration (credit has been impaired) | ||
| Balance as of January 1, 2024 | 6,446,583.92 | 6,446,583.92 | ||
| Provision made in the current period | 215,577.51 | 215,577.51 | ||
| Current reversal | 259,416.13 | 259,416.13 | ||
| Balance as of June 30, 2024 | 6,402,745.30 | 6,402,745.30 |
Classification basis and bad debt provision ratio for each stage
Nil
Explanation of significant changes in the book balance of accounts receivable with changes inloss provisions in this period:
□ Applicable √Not applicable
(3). The situation of bad debt provision
√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 | 6,446,583.92 | 215,577.51 | 259,416.13 | 6,402,745.30 |
| Total | 6,446,583.92 | 215,577.51 | 259,416.13 | 6,402,745.30 |
In which the recovered or reversed amount is important:
□ Applicable √Not applicable
Other notes:
Nil
(4). Accounts receivable actually written off during the current period
□ Applicable √Not applicable
Information of write-off of important accounts receivable
□ Applicable √Not applicable
Description of accounts receivable written off:
□ Applicable √Not applicable
(5). The five largest accounts receivable and contract assets aggregated by debtor at theend of the period
√Applicable □Not applicable
Unit: RMB
| Debtor | Closing balance of accounts receivable | Closing balance of contract assets | Closing balance of accounts receivable and contract assets | Proportion in the total closing balance of accounts receivable and contract assets (%) | Closing balance of bad debt provision |
| Dalian Guanglong Zhongbang International Trade Co., Ltd. | 12,659,696.23 | - | 12,659,696.23 | 2.63 | 1,364.85 |
| Zhejiang Jielian Network Technology Co., Ltd. | 6,261,907.10 | - | 6,261,907.10 | 1.30 | 6,261,907.10 |
| LPS COMPANY LTDA | 6,252,078.36 | - | 6,252,078.36 | 1.30 | 674.04 |
| SUN OCEAN DEVELOPMENTS LIMITED | 2,850,404.07 | - | 2,850,404.07 | 0.59 | 307.30 |
| SWONIA, a.s. | 2,769,068.86 | - | 2,769,068.86 | 0.57 | 298.53 |
| Total | 30,793,154.62 | - | 30,793,154.62 | 6.39 | 6,264,551.82 |
Other statementsNil
Other notes:
□ Applicable √Not applicable
6. Contract assets
(1). Contract assets situation
□ Applicable √Not applicable
(2). The amount and reasons for significant changes in book value during the reporting
period
□ Applicable √Not applicable
(3). Categorized disclosure based on the bad debt provision method
□ Applicable √Not applicable
Provision for bad debts on an individual basis:
□ Applicable √Not applicable
Explanation for provision for bad debts on an individual basis:
□ Applicable √Not applicable
Provision for bad debts on a grouping basis:
□ Applicable √Not applicable
Provision for bad debts based on the general model of expected credit losses
□ Applicable √Not applicable
Classification basis and bad debt provision ratio for each stageNil
Explanation of significant changes in the book balance of contract assets with changes in lossprovisions in this period:
□ Applicable √Not applicable
(4). Provision for bad debts of contract assets in this period
□ Applicable √Not applicable
In which the recovered or reversed amount is important:
□ Applicable √Not applicable
Other notes:
Nil
(5). Actual written-off contract assets in this period
□ Applicable √Not applicable
Among them, important contract assets write off
□ Applicable √Not applicable
Description of contract assets written off:
□ Applicable √Not applicable
Other notes:
□ Applicable √Not applicable
7. Receivables Financing
(1). Accounts receivable financing listed by classification
□ Applicable √Not applicable
(2). Accounts receivable financing pledged by the Company at the end of the period
□ Applicable √Not applicable
(3). Accounts receivable financing that has been endorsed or discounted by theCompany at the end of the period and has not yet matured on the balance sheet date
□ Applicable √Not applicable
(4). Categorized disclosure based on the bad debt provision method
□ Applicable √Not applicable
Provision for bad debts on an individual basis:
□ Applicable √Not applicable
Explanation for provision for bad debts on an individual basis:
□ Applicable √Not applicable
Provision for bad debts on a grouping basis:
□ Applicable √Not applicable
Provision for bad debts based on the general model of expected credit losses
□ Applicable √Not applicable
Classification basis and bad debt provision ratio for each stageNil
Explanation of significant changes in the financing book balance of accounts receivable withchanges in loss provisions in this period:
□ Applicable √Not applicable
(5). The situation of bad debt provision
□ Applicable √Not applicable
In which the recovered or reversed amount is important:
□ Applicable √Not applicable
Other notes:
Nil
(6). Accounts receivable financing actually written off in this period
□ Applicable √Not applicable
Among them, important accounts receivable financing written off
□ Applicable √Not applicable
Explanation of writing-off:
□ Applicable √Not applicable
(7). Changes in accounts receivable financing and changes in fair value in this period:
□ Applicable √Not applicable
(8). Other notes:
□ Applicable √Not applicable
8. Prepayments
(1). Presentation of prepayments by aging
√Applicable □Not applicable
Unit: RMB
| Account aging | Closing balance | Opening balance | ||
| Amount | Proportion (%) | Amount | Proportion (%) | |
| Within 1 year | 1,925,038,260.48 | 99.54 | 969,194,841.33 | 98.29 |
| 1 to 2 years | 3,050,841.07 | 0.16 | 12,339,052.53 | 1.25 |
| 2 to 3 years | 2,138,045.31 | 0.11 | 4,404,721.24 | 0.45 |
| Over 3 years | 3,652,307.71 | 0.19 | 124,000.00 | 0.01 |
| Total | 1,933,879,454.57 | 100.00 | 986,062,615.10 | 100.00 |
Explanation for failure to settle the prepayments with an account aging longer than one yearand in important amounts:
Nil
(2). The five largest advances to suppliers aggregated by debtor at the end of the
period
√Applicable □Not applicable
Unit: RMB
| Debtor | Closing balance | Proportion in closing balance of total prepayments (%) |
| Total amount of the five largest advances to suppliers at the end of the period | 691,010,197.59 | 35.73 |
| Total | 691,010,197.59 | 35.73 |
Other statements
□ Applicable √Not applicable
9. Other receivables
Presentation of items
√Applicable □Not applicable
Unit: RMB
| Item | Closing balance | Opening balance |
| Other receivables | 121,606,527.40 | 115,279,387.63 |
| Total | 121,606,527.40 | 115,279,387.63 |
Other notes:
□ Applicable √Not applicable
Interest receivable
(1). Classification of interest receivable
□ Applicable √Not applicable
(2). Significant overdue interest
□ Applicable √Not applicable
(3). Categorized disclosure based on the bad debt provision method
□ Applicable √Not applicable
Provision for bad debts on an individual basis:
□ Applicable √Not applicable
Explanation for provision for bad debts on an individual basis:
□ Applicable √Not applicable
Provision for bad debts on a grouping basis:
□ Applicable √Not applicable
(4). Provision for bad debts based on the general model of expected credit losses
□ Applicable √Not applicable
(5). The situation of bad debt provision
□ Applicable √Not applicable
In which the recovered or reversed amount is important:
□ Applicable √Not applicable
Other notes:
Nil
(6). Interest receivable actually written off in this period
□ Applicable √Not applicable
Important interest receivable written off among them
□ Applicable √Not applicable
Explanation of writing-off:
□ Applicable √Not applicable
Other notes:
□ Applicable √Not applicable
Dividends receivable
(1). Dividend receivable
□ Applicable √Not applicable
(2). Important dividend receivable with an account aging longer than 1 year
□ Applicable √Not applicable
(3). Categorized disclosure based on the bad debt provision method
□ Applicable √Not applicable
Provision for bad debts on an individual basis:
□ Applicable √Not applicable
Explanation for provision for bad debts on an individual basis:
□ Applicable √Not applicable
Provision for bad debts on a grouping basis:
□ Applicable √Not applicable
(4). Provision for bad debts based on the general model of expected credit losses
□ Applicable √Not applicable
(5). The situation of bad debt provision
□ Applicable √Not applicable
In which the recovered or reversed amount is important:
□ Applicable √Not applicable
Other notes:
Nil
(6). Dividends receivable actually written off in this period
□ Applicable √Not applicable
Important dividend receivables written off among them
□ Applicable √Not applicable
Explanation of writing-off:
□ Applicable √Not applicable
Other notes:
□ Applicable √Not applicable
Other receivables
(1). Disclosure based on account aging
√Applicable □Not applicable
Unit: RMB
| Account aging | Closing book balance | Opening book balance |
| Within 1 year | ||
| Including: sub-items | ||
| Within 1 year | 96,390,810.91 | 51,791,601.59 |
| Within 1 year | 96,390,810.91 | 51,791,601.59 |
| 1 to 2 years | 5,268,169.86 | 41,019,455.29 |
| 2 to 3 years | 1,368,236.00 | 5,014,989.22 |
| Over 3 years | 22,620,082.18 | 21,509,679.17 |
| Bad debt provision for other receivables | -4,040,771.55 | -4,056,337.64 |
| Total | 121,606,527.40 | 115,279,387.63 |
(2). Classification based on the nature of accounts
√Applicable □Not applicable
Unit: RMB
| Nature of receivable | Closing book balance | Opening book balance |
| Withholdings and deposits | 116,138,182.11 | 107,984,533.23 |
| Receivables from export tax rebate | 7,823,624.70 | 9,508,128.96 |
| Reserve | 1,685,492.14 | 1,843,063.08 |
| Total | 125,647,298.95 | 119,335,725.27 |
(3). Bad debt provision
√Applicable □Not applicable
Unit: RMB
| Bad debt provision | Stage 1 | Stage 2 | Stage 3 | Total |
| Expected credit loss in the coming 12 months | Expected credit loss in the entire duration (credit has not been impaired) | Expected credit loss in the entire duration (credit has been impaired) | ||
| Balance as of January 1, 2024 | 4,056,337.64 | 4,056,337.64 |
| Provision made in the current period | 47,536.69 | 47,536.69 | ||
| Current reversal | 63,102.78 | 63,102.78 | ||
| Balance as of June 30, 2024 | 4,040,771.55 | 4,040,771.55 |
Classification basis and bad debt provision ratio for each stageNil
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 creditrisk of 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 | 4,056,337.64 | 47,536.69 | 63,102.78 | 4,040,771.55 |
| Total | 4,056,337.64 | 47,536.69 | 63,102.78 | 4,040,771.55 |
In which the recovered or reversed amount is important:
□ Applicable √Not applicable
Other statementsNil
(5). Other receivables actually written off during the current period
□ Applicable √Not applicable
Of which, important write-offs of other receivables:
□ Applicable √Not applicable
Notes on the write-off of other receivables:
□ Applicable √Not applicable
(6). The five largest other accounts receivable aggregated by debtor at the end of the
period
√Applicable □Not applicable
Unit: RMB
| Debtor | Closing balance | Weight in the total closing balance of other receivables (%) | Nature of receivable | Account aging | Closing balance of bad debt provision |
| Yiwu Taxation Bureau, State Administration of Taxation | 7,823,624.70 | 6.23 | Export tax rebate | Within 1 year | - |
| Yiwu Junhuhui Entertainment Co., Ltd | 6,212,477.30 | 4.94 | Transactions between companies | Within 1 year | - |
| FUNDACION PARA EL INTERCAMBIO ENTRE YIWU Y ESPANA | 5,572,630.27 | 4.44 | Advance payment | Within 1 year | - |
| Yiwu Weiniuke Trading Co., Ltd | 3,898,300.00 | 3.10 | Advance payment | Within 1 year | - |
| Yiwu Shengran Trading Co., Ltd. | 3,616,300.00 | 2.88 | Advance payment | Within 1 year | - |
| Total | 27,123,332.27 | 21.59 | / | / | - |
(7). Reported as other receivables due to centralized fund management
□ Applicable √Not applicable
Other notes:
□ Applicable √Not applicable
10. Inventories
(1). Inventories classification
√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 | 209,465.68 | - | 209,465.68 | 159,406.39 | - | 159,406.39 |
| Finished goods | 254,186,015.31 | - | 254,186,015.31 | 162,423,278.28 | - | 162,423,278.28 |
| Work-in-progress materials | 3,577,734.00 | - | 3,577,734.00 | 4,042,462.18 | - | 4,042,462.18 |
| Development cost | 629,034,891.04 | 28,303,338.06 | 600,731,552.98 | 67,478,414.27 | 28,303,338.06 | 39,175,076.21 |
| Development products | 1,038,323,184.56 | - | 1,038,323,184.56 | 1,041,444,157.85 | - | 1,041,444,157.85 |
| Total | 1,925,331,290.59 | 28,303,338.06 | 1,897,027,952.53 | 1,275,547,718.97 | 28,303,338.06 | 1,247,244,380.91 |
(2). Data resources confirmed as inventory
□ Applicable √Not applicable
(3). 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 | Reversal or charge-off | |||
| Development cost | 28,303,338.06 | - | - | 28,303,338.06 |
| Total | 28,303,338.06 | - | - | 28,303,338.06 |
The reason for the reversing or charging off provision for inventory depreciation in this period
□ Applicable √Not applicable
Provision for inventory depreciationon on a grouping basis
□ Applicable √Not applicable
Provision standards for provision for inventory depreciation on a grouping basis
□ Applicable √Not applicable
(4). The capitalized amount of borrowing costs contained in the closing balance ofinventory and its calculation criteria and basis
√Applicable □Not applicable
As of June 30, 2024, the inventory with a book value of RMB 45,315,858.73 (December 31,2023: RMB 35,797,443.87) was formed by capitalization of borrowing costs. In January-June2024, the capitalized amount of inventory borrowing costs for the Group was RMB 9,518,414.86(2023: RMB 0.00), and the cumulative capitalized amount of borrowing costs was RMB45,315,858.73 (2023: RMB 35,797,443.87)
(5). Explanation of amortization amount of contract performance cost in the current
period
□ Applicable √Not applicable
Other notes:
√Applicable □Not applicable
Inventories-Development Cost Unit: RMB
| Item | Opening balance | Increase in the current period | Decrease in the current period | Closing balance |
| Haicheng Phase I Business Street | 67,478,414.27 | - | - | 67,478,414.27 |
| Global Digital Trade Center Phase II sellable projects | - | 526,841,761.92 | - | 526,841,761.92 |
| Global Digital Trade Center Super High-rise Commercial Office Building project | - | 34,714,714.85 | - | 34,714,714.85 |
| Total | 67,478,414.27 | 561,556,476.77 | - | 629,034,891.04 |
Inventories-Developed Products Unit: RMB
| Item | Opening balance | Increase in the current period | Decrease in the current period | Closing balance |
| Haicheng Phase I Business Street | 915,706,130.79 | - | - | 915,706,130.79 |
| Haicheng Phase II Business Street | 125,738,027.06 | 579,705.43 | 3,700,678.72 | 122,617,053.77 |
| Total | 1,041,444,157.85 | 579,705.43 | 3,700,678.72 | 1,038,323,184.56 |
11. Held-for-sale assets
□ Applicable √Not applicable
12. Non-current assets due within one year
□ Applicable √Not applicable
Debt investments due within one year
□ Applicable √Not applicable
Other debt investments due within one year
□ Applicable √Not applicable
Other statement for non-current assets due within one yearNil
13. Other current assets
√Applicable □Not applicable
Unit: RMB
| Item | Closing balance | Opening balance |
| Payment business reserve | 399,764,547.68 | 313,869,496.74 |
| To-be-deducted input tax | 399,219,355.16 | 326,795,702.79 |
| Advance income tax | 17,203,738.80 | 17,252,758.70 |
| To-be-certified input tax | 16,404,029.61 | 5,662,735.21 |
| Entrusted loans to the market traders | 1,627,445.27 | 1,737,479.42 |
| Less: bad debt provision for entrusted loans | -185,500.00 | -185,500.00 |
| Total | 834,033,616.52 | 665,132,672.86 |
Other notes:
Nil
14. Debt investments
(1). Debt investments
√Applicable □Not applicable
Unit: RMB
| Item | Closing balance | Opening balance | ||||
| Book balance | Impairment provision | Book value | Book balance | Impairment provision | Book value | |
| Entrusted Loans | 48,066,000.00 | - | 48,066,000.00 | 48,073,333.34 | - | 48,073,333.34 |
| Total | 48,066,000.00 | - | 48,066,000.00 | 48,073,333.34 | - | 48,073,333.34 |
Changes in provision for impairment of debt investments in this period
□ Applicable √Not applicable
(2). Important debt investment at the end of the period
√Applicable □Not applicable
Unit: RMB
| Item | Closing balance | Opening balance | ||||||||
| Face value | Coupon rate | Actual interest rate | Maturity date | Overdue principal | Face value | Coupon rate | Actual interest rate | Maturity date | Overdue principal | |
| Chengdu Trade City entrusted loan | 48,000,000.00 | 5.5% | 5.5% | Dec 19, 2024 | - | 48,000,000.00 | 5.5% | 5.5% | Dec 19, 2024 | - |
| Total | 48,000,000.00 | / | / | / | - | 48,000,000.00 | / | / | / | - |
(3). Provision for impairment
□ Applicable √Not applicable
Segmentation basis and provision ratio for impairment in each stage:
Nil
Explanation of significant changes in the book balance of debt investments with changes in lossprovisions in this period:
□ Applicable √Not applicable
Amount of impairment provision for the current period and the basis for assessing whether thereis significant increase in the credit risk of financial instruments:
□ Applicable √Not applicable
(4). Debt investments actually written off in this period
□ Applicable √Not applicable
Important debt investments written off among them
□ Applicable √Not applicable
Description of debt investments written off:
□ Applicable √Not applicable
Other notes:
Nil
15. Other debt investments
(1). Other debt investments
□ Applicable √Not applicable
Changes in provision for impairment of other debt investments in this period
□ Applicable √Not applicable
(2). Other significant debt investments at the end of the period
□ Applicable √Not applicable
(3). Provision for impairment
□ Applicable √Not applicable
(4). Other debt investments actually written off in this period
□ Applicable √Not applicable
Important other debt investments written off among them
□ Applicable √Not applicable
Description of other debt investments written off:
□ Applicable √Not applicable
Other notes:
□ Applicable √Not applicable
16. Long-term receivables
(1). 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 | ||
| Guarantee deposit | 7,187,997.99 | - | 7,187,997.99 | 7,270,907.13 | - | 7,270,907.13 | 2.78%-7.55% |
| Financial assistance receivable from joint ventures | 284,698,048.35 | - | 284,698,048.35 | 270,755,772.12 | - | 270,755,772.12 | 0.00%-6.74% |
| Total | 291,886,046.34 | - | 291,886,046.34 | 278,026,679.25 | - | 278,026,679.25 | / |
(2). Categorized disclosure based on the bad debt provision method
□ Applicable √Not applicable
Provision for bad debts on an individual basis:
□ Applicable √Not applicable
Explanation for provision for bad debts on an individual basis:
□ Applicable √Not applicable
Provision for bad debts on a grouping basis:
□ Applicable √Not applicable
Provision for bad debts based on the general model of expected credit losses
□ Applicable √Not applicable
(3). The situation of bad debt provision
□ Applicable √Not applicable
In which the recovered or reversed amount is important:
□ Applicable √Not applicable
Other notes:
Nil
(4). Actual long-term accounts receivable written off in this period
□ Applicable √Not applicable
Important long-term accounts receivable written off among them
□ Applicable √Not applicable
Explanation of writing-off:
□ Applicable √Not applicable
Other notes:
□ Applicable √Not applicable
17. Long-term equity investment
(1). Long term equity investment situation
√Applicable □Not applicable
Unit: RMB
| Investee | Opening balance | Change in the current period | Closing balance | Closing balance of impairment provision | ||||
| Additional investment | Decrease in investment | Investment gains or losses recognized with the equity method | Adjustment of other comprehensive income | Declared a cash dividend or profit | ||||
| 1. Joint ventures | ||||||||
| Yiwu Shanglv | 435,929,928.58 | - | - | 23,714,674.25 | - | - | 459,644,602.83 | - |
| Yiwu Rongshang Property Co., Ltd. | 65,650,697.03 | - | - | 180.99 | - | - | 65,650,878.02 | - |
| Yiwu Chuangcheng Property | 27,685,633.41 | - | - | 565,950.74 | - | - | 28,251,584.15 | - |
| Yiwu Guoshen Shangbo Property Co., Ltd. | 927,219,681.28 | - | - | 1,279,075.67 | - | - | 928,498,756.95 | - |
| Others | 33,956,893.18 | - | - | -811,605.27 | - | - | 33,145,287.91 | 3,327,216.16 |
| Sub-total | 1,490,442,833.48 | - | - | 24,748,276.38 | - | - | 1,515,191,109.86 | 3,327,216.16 |
| 2. Associates | ||||||||
| Huishang Micro-finance | 78,587,936.11 | - | - | 668,603.28 | - | - | 79,256,539.39 | - |
| Huishang Zijing | 66,800,947.43 | - | - | -6,620,081.78 | - | - | 60,180,865.65 | - |
| Chouzhou Financial Lease | 574,958,766.29 | - | - | 54,021,989.23 | - | - | 628,980,755.52 | - |
| 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 Property Co., Ltd. | 349,641,685.10 | - | - | 46,319,683.10 | - | - | 395,961,368.20 | - |
| Yiwu China Commodities City Property Development Co., Ltd. | 3,122,444,390.10 | - | - | -5,218,340.42 | - | - | 3,117,226,049.68 | - |
| Yiwu Hongyi Equity Investment Fund Partnership (limited partnership) | 904,833,747.27 | - | 165,250,000.00 | 11,642,391.12 | - | 34,750,000.00 | 716,476,138.39 | - |
| Zhijie Yuangang | 131,982,044.17 | - | - | -5,687,009.55 | - | - | 126,295,034.62 | - |
| Yiwu Huishang Redbud Phase II Investment Partnership (limited partnership) | 138,367,322.19 | - | 5,000,000.00 | 66,458.61 | - | - | 133,433,780.80 | - |
| Others | 65,128,491.27 | 22,459,100.00 | - | -21,593,218.45 | 217,103.05 | - | 66,211,475.87 | - |
| Sub-total | 5,545,171,938.15 | 22,459,100.00 | 170,250,000.00 | 73,600,475.14 | 217,103.05 | 34,750,000.00 | 5,436,448,616.34 | 9,508,049.22 |
| Total | 7,035,614,771.63 | 22,459,100.00 | 170,250,000.00 | 98,348,751.52 | 217,103.05 | 34,750,000.00 | 6,951,639,726.20 | 12,835,265.38 |
(2). Impairment testing of long-term equity investments
□ Applicable √Not applicable
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, the Group’s wholly-owned subsidiary Yiwu China Commodities City Financial Holdings Co., Ltd. (“CCCF”) and Shanghai FuxingIndustry Group Co., Ltd. (“Fuxing Group”) jointly established 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 12 sub-funds including Yiwu Shangfu ChuangzhiInvestment Center (Limited Partnership) (“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
102.92 million, and there is no deadline for the payment for the unpaid capital contribution. The other limited partner of the FOF is Fuxing. CCCF alsocontributed RMB 9.8 million, as the general partner of the above-mentioned FOF and sub-funds, with a shareholding ratio of 49%, to jointly establishYiwu China Commodity City Investment Management Co., Ltd. (hereinafter referred to as “CCCIM”) with Fuxing. The FoF and CCCIM are both underthe control of Fuxing and are associates of CCCF.
As a limited partner of Shangfu Chuangzhi Fund, CCCF has subscribed and paid in a capital contribution of RMB 617.51 million. Since the capitalcontribution was guaranteed by Fuxing's fixed income, it was recognized as other non-current financial assets. The above paid-in capital contributionmade by CCCF to the FoF has been contributed to Shangfu Chuangzhi Fund together with the capital contribution of Fuxing to the FoF through theFoF as a limited partner. With the capital contribution from the FoF as a limited partner and CCCF’s capital contribution to Shangfu Chuangzhi Fund as
a limited partner, Shangfu Chuangzhi Fund made capital contribution of RMB 820.54 million to subscribe for the increase in the registered capital ofHubei 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 ofhaving committed a criminal offense and the 22.667% equity held by Shangfu Chuangzhi Fund in Hubei Provincial Asset Management Co., Ltd. wasfrozen by the Public Security Bureau of Shanghai due to Fuxing’s contribution to the sources of the capital contribution. The Group believes that, onJune 30, 2024, the Group’s investment in the FOF and Shangfu Chuangzhi Fund was non-related to Fuxing’s investment, and there was no indicationof impairment of the underlying assets. Although they were still frozen, that had no impact on the Group’s equity. Therefore, there was no impairment.However, for the equity investment in CCCIM, a full impairment provision has been made since 2018.
18. Other equity instrument investments
(1). Investments in other equity instruments
√Applicable □Not applicable
Unit: RMB
| Item | Opening balance | Change in the current period | Closing balance | Dividend income recognized in this period | Accumulated gains recognized in other comprehensive income | Reason for designing it as measured at fair value through other comprehensive income | |
| Gains recognized in other comprehensive income for this period | Losses recognized in other comprehensive income for the current period | ||||||
| Shenwan Hongyuan Group Co., Ltd. | 556,897,379.17 | - | 1,254,273.38 | 555,643,105.79 | - | 1,513,256.09 | Non-trading |
| Total | 556,897,379.17 | - | 1,254,273.38 | 555,643,105.79 | - | 1,513,256.09 | / |
(2). Description of termination of recognition in this period
□ Applicable √Not applicable
Other notes:
□ Applicable √Not applicable
19. Other non-current financial assets
√Applicable □Not applicable
Unit: RMB
| Item | Closing balance | Opening balance |
| PE investment | 1,272,744,910.29 | 1,222,483,421.12 |
| Unlisted equity investment | 182,432,741.89 | 161,914,541.90 |
| New OTC Market equity investment | 37,171,941.15 | 37,171,941.17 |
| Total | 1,492,349,593.33 | 1,421,569,904.19 |
Other notes:
Nil
20. Investment properties
Measurement models of investment properties
(1). Investment properties measured at cost
Unit: RMB
| Item | Buildings and structures | Land use right | Total |
| I. Original book value | |||
| 1. Opening balance | 4,512,941,362.63 | 441,780,232.93 | 4,954,721,595.56 |
| 2. Increase in the current period | - | - | - |
| (1) Purchased | - | - | - |
| 3. Decrease in the current period | - | - | - |
| (1) Disposal | - | - | - |
| 4. Closing balance | 4,512,941,362.63 | 441,780,232.93 | 4,954,721,595.56 |
| II. Accumulated depreciation and accumulated amortization | |||
| 1. Opening balance | 706,382,061.59 | 104,130,168.40 | 810,512,229.99 |
| 2. Increase in the current period | 83,250,364.94 | 5,665,363.11 | 88,915,728.05 |
| (1) Provision or amortization | 83,250,364.94 | 5,665,363.11 | 88,915,728.05 |
| 3. Decrease in the current period | - | - | - |
| (1) Disposal | - | - | - |
| 4. Closing balance | 789,632,426.53 | 109,795,531.51 | 899,427,958.04 |
| III. Depreciation provision | |||
| 1. Opening balance | - | - | - |
| 4. Closing balance | - | - | - |
| IV. Book value | |||
| 1. Closing book value | 3,723,308,936.10 | 331,984,701.42 | 4,055,293,637.52 |
| 2. Opening book value | 3,806,559,301.04 | 337,650,064.53 | 4,144,209,365.57 |
(2). Investment properties for which property ownership certificates have not beenobtained:
□ Applicable √Not applicable
(3). Impairment testing of investment properties measured at cost
□ Applicable √Not applicable
Other statements
□ Applicable √Not applicable
21. Fixed assets
Presentation of items
√Applicable □Not applicable
Unit: RMB
| Item | Closing balance | Opening balance |
| Fixed assets | 4,779,247,066.98 | 4,940,523,363.51 |
| Total | 4,779,247,066.98 | 4,940,523,363.51 |
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 | 7,913,881,415.11 | 4,034,531,447.24 | 10,150,315.37 | 11,958,563,177.72 |
| 2. Increase in the current period | 1,255,669.90 | 25,220,263.28 | - | 26,475,933.18 |
| (1) Purchase | 1,255,669.90 | 25,220,263.28 | - | 26,475,933.18 |
| 3. Decrease in the current period | - | 1,785,041.89 | - | 1,785,041.89 |
| (1) Disposal or retirement | - | 1,785,041.89 | - | 1,785,041.89 |
| 4. Closing balance | 7,915,137,085.01 | 4,057,966,668.63 | 10,150,315.37 | 11,983,254,069.01 |
| II. Accumulated depreciation | ||||
| 1. Opening balance | 3,269,495,712.70 | 3,269,131,025.42 | 8,249,608.24 | 6,546,876,346.36 |
| 2. Increase in the current period | 148,972,351.30 | 38,341,324.73 | 367,200.90 | 187,680,876.93 |
| (1) Provision | 148,972,351.30 | 38,341,324.73 | 367,200.90 | 187,680,876.93 |
| 3. Decrease in the current period | - | 1,713,689.11 | - | 1,713,689.11 |
| (1) Disposal or retirement | - | 1,713,689.11 | - | 1,713,689.11 |
| 4. Closing balance | 3,418,468,064.00 | 3,305,758,661.04 | 8,616,809.14 | 6,732,843,534.18 |
| 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 | 4,025,505,553.16 | 752,208,007.59 | 1,533,506.23 | 4,779,247,066.98 |
| 2. Opening book value | 4,173,222,234.56 | 765,400,421.82 | 1,900,707.13 | 4,940,523,363.51 |
(2). Temporarily idle fixed assets
□ Applicable √Not applicable
(3). Fixed assets leased out through operating lease
□ Applicable √Not applicable
(4). 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 |
| Liaoning Xiliu Yiwu China Commodity City | 229,676,129.09 | Completion settlement not completed |
| Huangyuan Clothing Market | 223,860,329.85 | Completion settlement not completed |
| CCC Hotel | 47,359,583.83 | Completion settlement not completed |
| Total | 500,896,042.77 |
(5). Impairment testing of fixed assets
□ Applicable √Not applicable
Other notes:
□ Applicable √Not applicable
Fixed asset liquidation
□ Applicable √Not applicable
22. Construction in progress
Presentation of items
√Applicable □Not applicable
Unit: RMB
| Item | Closing balance | Opening balance |
| Construction in progress | 4,383,862,731.01 | 3,955,959,200.32 |
| Total | 4,383,862,731.01 | 3,955,959,200.32 |
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 | |
| The Yiwu Comprehensive Bonded Zone Project | 1,261,434,839.25 | - | 1,261,434,839.25 | 1,221,353,672.38 | - | 1,221,353,672.38 |
| Global Digital Free Trade Center | 840,760,959.78 | - | 840,760,959.78 | 753,285,037.73 | - | 753,285,037.73 |
| Logistics Park S3 | 791,916,664.08 | - | 791,916,664.08 | 646,823,075.05 | - | 646,823,075.05 |
| Yiwu International Digital Logistics Market | 694,972,397.57 | - | 694,972,397.57 | 630,797,491.91 | - | 630,797,491.91 |
| Logistics Park S2 | 660,644,123.83 | - | 660,644,123.83 | 580,571,402.07 | - | 580,571,402.07 |
| The Chian West Sea tourism project | 71,217,757.44 | - | 71,217,757.44 | 70,693,880.52 | - | 70,693,880.52 |
| Liaoning Xiliu Yiwu China Commodities City Commerce Phase I Project—Hotel Project | 32,290,506.33 | -4,635,059.96 | 27,655,446.37 | 32,290,506.33 | -4,635,059.96 | 27,655,446.37 |
| The Zhimei Dachen tourism project | 27,798,801.17 | - | 27,798,801.17 | 24,438,877.36 | - | 24,438,877.36 |
| Other projects | 7,461,741.52 | - | 7,461,741.52 | 340,316.93 | - | 340,316.93 |
| Total | 4,388,497,790.97 | -4,635,059.96 | 4,383,862,731.01 | 3,960,594,260.28 | -4,635,059.96 | 3,955,959,200.32 |
(2). Changes to important construction in progress during the current period
√Applicable □Not applicable
Unit: RMB10,000
| Item | Budget | Opening balance | Increase in the current period | Other reduction amount for the current period | Closing balance | Ratio of accumulated investment to budget (%) | Progress of project | Accumulated capitalized interest | Including: capitalized interest in the current period | Interest capitalization ratio for the current period (%) | Source of funds |
| 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 tourism project | 6,000.00 | 2,443.89 | 335.99 | - | 2,779.88 | 97.30 | Under construction | - | - | / | Self-owned |
| The Chian West Sea tourism project | 8,000.00 | 7,069.39 | 52.39 | - | 7,121.78 | 89.02 | Under construction | - | - | / | Self-owned |
| The Yiwu Comprehensive Bonded Zone Project | 624,250.00 | 122,135.37 | 4,008.12 | - | 126,143.49 | 47.51 | Under construction | 6,046.39 | 1,784.08 | 2.93 | Self-owned/financing |
| Global Digital Free Trade Center | 832,082.00 | 75,328.50 | 8,747.59 | - | 84,076.09 | 10.10 | Under construction | 1,843.23 | 1,000.80 | 2.93 | Self-owned/financing |
| Logistics Park S2 | 108,000.00 | 58,057.14 | 8,007.27 | - | 66,064.41 | 61.17 | Under construction | 1,631.66 | 737.82 | 2.93 | Self-owned/financing |
| Logistics Park S3 | 132,000.00 | 64,682.31 | 14,509.36 | - | 79,191.67 | 59.99 | Under construction | 1,850.45 | 567.52 | 2.93 | Self-owned/financing |
| Yiwu International Digital Logistics Market | 113,600.00 | 63,079.75 | 6,417.49 | - | 69,497.24 | 61.18 | Under construction | 1,222.35 | 466.55 | 2.93 | Self-owned/financing |
| Other projects | - | 34.03 | 712.14 | - | 746.17 | / | Under construction | - | - | / | Self-owned |
| Total | 2,003,932.00 | 396,059.43 | 42,790.35 | - | 438,849.78 | / | / | 12,748.69 | 4,556.77 | / | / |
(3). Provision for impairment of construction in progress in this period
□ Applicable √Not applicable
(4). Impairment testing of construction in progress
□ Applicable √Not applicable
Other statements
□ Applicable √Not applicable
Engineering materials
□ Applicable √Not applicable
23. Productive biological assets
(1). Productive biological assets measured at cost
□ Applicable√Not applicable
(2). Impairment testing of productive biological assets measured at cost
□ Applicable √Not applicable
(3). Productive biological assets measured at fair value
□ Applicable √Not applicable
Other statements
□ Applicable √Not applicable
24. Oil and gas assets
(1). Situation of oil and gas assets
□ Applicable √Not applicable
(2). Impairment testing of oil and gas assets
□ Applicable √Not applicable
Other notes:
Nil
25. Right-of-use assets
(1). Situation of right-of-use assets
√Applicable □Not applicable
Unit: RMB
| Item | Buildings and structures | Land | Total |
| I. Original book value | |||
| 1. Opening balance | 156,539,430.45 | 125,879,033.69 | 282,418,464.14 |
| 4. Closing balance | 156,539,430.45 | 125,879,033.69 | 282,418,464.14 |
| II. Accumulated depreciation | |||
| 1. Opening balance | 84,334,532.18 | 17,210,098.12 | 101,544,630.30 |
| 2. Increase in the current period | 8,236,521.95 | 3,291,061.29 | 11,527,583.24 |
| (1) Provision | 8,236,521.95 | 3,291,061.29 | 11,527,583.24 |
| 4. Closing balance | 92,571,054.13 | 20,501,159.41 | 113,072,213.54 |
| III. Depreciation provision | |||
| 1. Opening balance | - | - | - |
| 4. Closing balance | - | - | - |
| IV. Book value | |||
| 1. Closing book value | 63,968,376.32 | 105,377,874.28 | 169,346,250.60 |
| 2. Opening book value | 72,204,898.27 | 108,668,935.57 | 180,873,833.84 |
(2). Impairment testing of right-of-use assets
□ Applicable √Not applicable
Other notes:
Nil
26. Intangible assets
(1). Intangible assets
√Applicable □Not applicable
Unit: RMB
| Item | Land use right | Software and software copyright | Data resources | Total |
| I. Original book value | ||||
| 1. Opening balance | 8,065,716,144.56 | 213,192,305.09 | - | 8,278,908,449.65 |
| 2. Increase in the current period | 96,717,000.00 | 9,886,921.27 | 8,724,238.82 | 115,328,160.09 |
| (1) Purchase | 96,717,000.00 | 157,461.24 | - | 96,874,461.24 |
| (2) Internal R&D | - | 9,729,460.03 | 8,724,238.82 | 18,453,698.85 |
| 3. Decrease in the current period | - | - | - | - |
| (1) Disposal | - | - | - | - |
| 4. Closing balance | 8,162,433,144.56 | 223,079,226.36 | 8,724,238.82 | 8,394,236,609.74 |
| II. Accumulated amortization | ||||
| 1. Opening balance | 1,995,851,982.75 | 44,671,964.94 | - | 2,040,523,947.69 |
| 2. Increase in the current period | 100,699,225.03 | 8,229,168.87 | 279,175.64 | 109,207,569.54 |
| (1) Provision | 100,699,225.03 | 8,229,168.87 | 279,175.64 | 109,207,569.54 |
| 3. Decrease in the current period | - | - | - | - |
| (1) Disposal | - | - | - | - |
| 4. Closing balance | 2,096,551,207.78 | 52,901,133.81 | 279,175.64 | 2,149,731,517.23 |
| III. Depreciation provision | ||||
| 1. Opening balance | - | - | - | - |
| 4. Closing balance | - | - | - | - |
| IV. Book value | ||||
| 1. Closing book value | 6,065,881,936.78 | 170,178,092.55 | 8,445,063.18 | 6,244,505,092.51 |
| 2. Opening book value | 6,069,864,161.81 | 168,520,340.15 | - | 6,238,384,501.96 |
At the end of the period, the proportion of intangible assets formed through internal researchand development of the Company in the balance of intangible assets was 1.32%
(2). Data resources confirmed as intangible assets
√Applicable □Not applicable
Unit: RMB
| Item | Self-developed data resources as intangible assets | Total |
| I. Original book value | ||
| 1. Opening balance | - | - |
| 2. Increase in the current period | 8,724,238.82 | 8,724,238.82 |
| Including: Purchased | - | - |
| Internally developed | 8,724,238.82 | 8,724,238.82 |
| 3. Decrease in the current period | - | - |
| 4. Closing balance | 8,724,238.82 | 8,724,238.82 |
| II. Accumulated amortization | ||
| 1. Opening balance | - | - |
| 2. Increase in the current period | 279,175.64 | 279,175.64 |
| 4. Closing balance | 279,175.64 | 279,175.64 |
| III. Depreciation provision | ||
| 1. Opening balance | - | - |
| 4. Closing balance | - | - |
| IV. Book value | ||
| 1. Closing book value | 8,445,063.18 | 8,445,063.18 |
| 2. Opening book value | - | - |
Other notes:
Nil
(3). Fixed assets for which the land use certificate have not been obtained
□ Applicable √Not applicable
(4). Impairment testing of intangible assets
□ Applicable √Not applicable
Other notes:
□ Applicable √Not applicable
27. Goodwill
(1). Original book value of goodwill
√Applicable □Not applicable
Unit: RMB
| The name of the invested unit or matters forming goodwill | Opening balance | Increase in the current period | Decrease in the current period | Closing balance |
| Formed by a business combination | Disposal | |||
| Xunchi Group | 284,916,367.87 | - | - | 284,916,367.87 |
| Total | 284,916,367.87 | - | - | 284,916,367.87 |
(2). Provision for impairment of goodwill
□ Applicable √Not applicable
(3). Relevant information on the asset group or group of asset groups where goodwill
is located
√Applicable □Not applicable
| Name | The composition of the asset group or group of asset groups to which it belongs and basis | Operating segment to which it belongs and basis | Whether it was consistent with the previous year |
| Kuaijietong asset group | It is composed of Kuaijietong Payment Services Co., Ltd., a subsidiary of Zhejiang Xunchi Digital Technology Co., Ltd. Since the synergistic effect of the acquisition of Xunchi Group is reflected in the Kuaijietong's subsidiaries, the main cash flow generated by the Kuaijietong's subsidiaries is independent of other subsidiaries of the Group, and the Group manages the production activities of the Kuaijietong's subsidiaries independently, so the goodwill is allocated to the Kuaijietong asset group. | For internal management purposes, this group of asset groups belongs to other segments. | Yes |
Changes in asset groups or groups of asset groups
□ Applicable √Not applicable
Other statements
√Applicable □Not applicable
In July 2022, the Group acquired 100% equity of Zhejiang Xunchi Digital Technology Co.,Ltd. and Kuaijietong Payment Services Co., Ltd., a wholly-owned subsidiary of Zhejiang XunchiDigital Technology Co., Ltd. (referred to as "Xunchi Group"), resulting in a goodwill of RMB284,916,367.87.
(4). The specific method for determining the recoverable amountThe recoverable amount is determined based on the net amount after deducting disposalexpenses from fair value
□ Applicable √Not applicable
The recoverable amount is determined based on the present value of expected future cashflows
□ Applicable √Not applicable
Reasons for significant discrepancies between the aforementioned information and theinformation used in previous year's impairment testing or external information
□ Applicable √Not applicable
Reasons for significant discrepancies between the information used in the Company's previousyear’s impairment testing and the actual situation of that year
□ Applicable √Not applicable
(5). Performance commitments and corresponding impairment of goodwillWhen goodwill is formed, there is a performance commitment and the reporting period or theprevious period in the reporting period is within the performance commitment period
□ Applicable √Not applicable
Other notes:
□ Applicable √Not applicable
28. Long-term deferred expenses
√Applicable □Not applicable
Unit: RMB
| Item | Opening balance | Increase in the current | Amortized amount in the | Other reduction | Closing balance |
| period | current period | amount | |||
| Decoration of buildings and structures | 308,876,621.58 | 1,721,106.20 | 53,858,871.02 | - | 256,738,856.76 |
| Advertising facilities | 21,155,429.06 | 35,398.23 | 4,443,821.32 | - | 16,747,005.97 |
| Total | 330,032,050.64 | 1,756,504.43 | 58,302,692.34 | - | 273,485,862.73 |
Other notes:
Nil
29. 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 | 18,342,152.04 | 4,585,538.01 | 18,917,033.18 | 4,729,258.30 |
| Unrealized profits of internal transactions | 1,051,115.67 | 262,778.92 | 1,051,115.67 | 262,778.92 |
| Deductible losses | 27,193,584.84 | 6,798,396.21 | 26,986,391.85 | 6,746,597.98 |
| Recognized but unpaid liabilities | 119,357,082.99 | 29,839,270.75 | 178,820,383.73 | 44,705,095.94 |
| Overspent advertising cost | 18,679,540.24 | 4,669,885.06 | 15,934,608.52 | 3,983,652.13 |
| Lease liabilities | 122,035,355.81 | 30,508,838.95 | 124,053,478.91 | 31,013,369.72 |
| Asset-related government grants | 79,879,800.00 | 19,969,950.00 | 79,879,800.00 | 19,969,950.00 |
| Changes in fair value of other non-current financial assets | 120,296,259.64 | 30,074,064.91 | 118,020,122.13 | 29,505,030.53 |
| Changes in fair value of held-for-trading financial assets | - | - | 2,276,137.50 | 569,034.38 |
| Total | 506,834,891.23 | 126,708,722.81 | 565,939,071.49 | 141,484,767.90 |
(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 liabilities | Taxable temporary difference | Deferred income tax liabilities | |
| Asset evaluation appreciation for business combinations not under common control | 18,953,209.16 | 4,738,302.29 | 22,521,198.48 | 5,630,299.60 |
| Change in fair value of other equity instruments investment | 2,017,674.80 | 504,418.70 | 3,271,948.17 | 817,987.04 |
| Changes in the fair value of other non-current financial assets | 310,386,559.32 | 77,596,639.83 | 310,386,559.36 | 77,596,639.84 |
| Right-of-use assets | 100,718,234.96 | 25,179,558.74 | 104,511,421.24 | 26,127,855.31 |
| Total | 432,075,678.24 | 108,018,919.56 | 440,691,127.25 | 110,172,781.79 |
(3). Deferred tax assets or liabilities presented as net amount after offsetting
√Applicable □Not applicable
Unit: RMB
| Item | Deferred income tax assets and liabilities offset at the end of the period | Closing balance of deferred income tax assets or liabilities after offsetting | Offset amount between deferred income tax assets and liabilities at the beginning of the period | Opening balance of deferred income tax assets or liabilities after offsetting |
| Deferred income tax assets | 25,179,558.74 | 101,529,164.07 | 26,127,855.31 | 115,356,912.59 |
| Deferred income tax liabilities | 25,179,558.74 | 82,839,360.82 | 26,127,855.31 | 84,044,926.48 |
(4). Details of unconfirmed deferred tax assets
√Applicable □Not applicable
Unit: RMB
| Item | Closing balance | Opening balance |
| Deductible temporary difference | 482,627,092.06 | 462,360,964.70 |
| Deductible losses | 826,067,540.48 | 933,593,373.14 |
| Total | 1,308,694,632.54 | 1,395,954,337.84 |
(5). The deductible losses of unconfirmed deferred tax assets will expire in the
following year
√Applicable □Not applicable
Unit: RMB
| Year | Closing amount | Opening amount | REMARKS |
| 2024 | - | 160,812,048.37 | |
| 2025 | 197,127,086.32 | 205,661,578.38 | |
| 2026 | 208,744,327.07 | 227,475,259.53 | |
| 2027 | 165,375,700.71 | 165,825,700.71 | |
| 2028 | 152,256,135.84 | 173,818,786.15 | |
| 2029 | 102,564,290.54 | - | |
| Total | 826,067,540.48 | 933,593,373.14 | / |
Other notes:
√Applicable □Not applicable
The Group believes that the above temporary differences in fixed asset depreciation, assetimpairment provisions, and deductible losses of some subsidiaries can be offset in theforeseeable future, and it is expected that the Group will have sufficient pre-tax profits to offset
during the reversal period. Therefore, the Group deemed it necessary to recognize the abovedeferred income tax assets.
30. 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 |
| Total | 138,253,316.00 | - | 138,253,316.00 | 138,253,316.00 | - | 138,253,316.00 |
Other notes:
Nil
31. Assets with restricted ownership or usage rights
√Applicable □Not applicable
Unit: RMB
| Item | Closing amount | Opening amount | ||||||
| Book balance | Book value | Restriction type | Restriction situation | Book balance | Book value | Restriction type | Restriction situation | |
| Cash and cash equivalents | 16,594,295.29 | 16,594,295.29 | Pledged | [Note 2] | 12,556,381.42 | 12,556,381.42 | Pledged | [Note 2] |
| Inventories | 8,925,585.77 | 8,925,585.77 | Seized | [Note 3] | 8,925,585.77 | 8,925,585.77 | Seized | [Note 3] |
| Long-term equity investment | 102,918,559.00 | 102,918,559.00 | Frozen | [Note 4] | 102,918,559.00 | 102,918,559.00 | Frozen | [Note 4] |
| Other non-current financial assets | 631,520,588.85 | 631,520,588.85 | Frozen | [Note 4] | 631,520,588.85 | 631,520,588.85 | Frozen | [Note 4] |
| Other current assets | 399,764,547.68 | 399,764,547.68 | Pledged | [Note 5] | 313,869,496.74 | 313,869,496.74 | Pledged | [Note 5] |
| Total | 1,159,723,576.59 | 1,159,723,576.59 | / | / | 1,069,790,611.78 | 1,069,790,611.78 | / | / |
Other notes:
Note 2: As of June 30, 2024, the ownership or use rights of bank deposits with a book valueof RMB 6,888,542.08 (December 31, 2023: RMB 3,888,542.08) were restricted as a riskmargin for express payment business. As of June 30, 2024, bank deposits with a book value
of RMB 7,220,000.00 (December 31, 2023: RMB 7,220,000.00) were used as a performancebond for the civil defense project of the hotel plot of the Yiwu Global Digital Free Trade Centerproject. As of June 30, 2024, bank deposits with a book value of RMB 2,485,753.21(December 31, 2023: RMB 1,447,839.34) were used as special funds for S3 Logistics Parkand Yidongbei Engineering Project, and the ownership or use rights were restricted.Note 3: As of June 30, 2024, inventory with a book value of RMB 8,925,585.77 (December31, 2023: RMB 8,925,585.77) was seized by the court due to litigation.Note 4: As of June 30, 2024, long-term equity investments with a book value of RMB102,918,559.00 (December 31, 2023: RMB 102,918,559.00) and other non-current financialassets with a book value of RMB 631,520,588.85 (December 31, 2023: RMB 621,447,424.37)were frozen by the Second Intermediate People's Court of Shanghai.Note 5: As of June 30, 2024, the payment business reserve fund with a book value of RMB399,764,547.68 (December 31, 2023: RMB 313,869,496.74) was established by the Companyin accordance with the "Administrative Measures for Payment Services of Non-financialInstitutions" and "Measures for the Custody of Customer Reserve Funds of PaymentInstitutions" Bank special deposit account. The scope of funds stored and received by theCompany through the customer reserve account includes funds received from bank cardacquiring business, third-party payment convenience service business, credit card repaymentbusiness, credit payment settlement business, and other part of the Company's business.
32. Short-term borrowings
(1). Classification of short-term borrowings
√Applicable □Not applicable
Unit: RMB
| Item | Closing balance | Opening balance |
| Credit loans | 1,351,119,861.12 | 1,619,804,888.91 |
| Total | 1,351,119,861.12 | 1,619,804,888.91 |
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, 2024, the annual interest rate of the above-mentioned loan was 2.85%-3.75% (December 31, 2023: 2.95% -3.75%).
33. Held-for-trading financial liabilities
□ Applicable √Not applicable
Other notes:
□ 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 | 723,773,900.73 | 1,158,111,539.96 |
| Accounts payable for logistics park projects | 363,270,622.04 | 180,132,641.98 |
| Trade payables | 33,523,711.13 | 12,022,684.89 |
| Accounts payable for procurement for the hotel project | 31,436,663.10 | 29,601,176.89 |
| Others | 13,257,496.64 | 10,386,805.55 |
| Total | 1,165,262,393.64 | 1,390,254,849.27 |
(2). Important accounts payable with an aging of over 1 year or overdue
□ Applicable √Not applicable
Other notes:
√Applicable □Not applicable
The accounts payable are free of interest and are generally paid within two months afterreceipt of the payment notice or based on the project contracts and progress of projects. Thebalance payments for the projects are made after completion of settlement.
37. Advance receipts
(1). Presentation of advance receipts
√Applicable □Not applicable
Unit: RMB
| Item | Closing balance | Opening balance |
| Advance receipts for rent | 200,663,041.24 | 224,790,926.84 |
| Advance receipts of merchant payment | 159,508,936.00 | 373,307,194.00 |
| Others | 1,716,059.74 | 4,266,275.80 |
| Total | 361,888,036.98 | 602,364,396.64 |
(2). Significant advance receipts with more than one year of account aging
□ Applicable √Not applicable
(3). The amount and reasons for significant changes in book value during the reporting
period
□ Applicable √Not applicable
Other notes:
√Applicable □Not applicable
Due to the fact that advances received mainly come from advance receipts of merchantpayment and advance receipts for rent, with relatively small individual amounts, there were nosingle large advance receipts with an aging of more than 1 year as of June 30, 2024.
38. Contract liabilities
(1). Contract liabilities
√Applicable □Not applicable
Unit: RMB
| Item | Closing balance | Opening balance |
| Advance receipts for use fee of shops | 2,074,881,218.36 | 3,034,398,081.66 |
| Advance receipts for goods | 1,320,149,723.80 | 820,058,121.03 |
| Advance receipts for advertising fee | 225,874,136.31 | 141,534,555.46 |
| Advance receipts for use fee of networking cables | 14,272,150.22 | 16,677,298.52 |
| Advance receipts for loyalty ofbrands | 8,653,840.53 | 9,350,894.14 |
| Advance receipts for housing purchase | 2,718,107.75 | 5,090,581.43 |
| Others | 47,478,104.47 | 39,470,433.49 |
| Total | 3,694,027,281.44 | 4,066,579,965.73 |
(2). Significant contractual liabilities with an aging of over 1 year
□ Applicable √Not applicable
(3). The amount and reasons for significant changes in book value during the reporting
period
□ Applicable √Not applicable
Other notes:
□ Applicable √Not applicable
39. Employee compensation payable
(1). Employee compensation 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 | 148,095,620.61 | 149,939,393.71 | 280,252,616.64 | 17,782,397.68 |
| II. Post employment benefits – defined contribution plan | 377,637.93 | 19,026,147.00 | 19,403,784.93 | - |
| III. Severance benefits | - | 1,489,922.83 | 1,489,922.83 | - |
| Total | 148,473,258.54 | 170,455,463.54 | 301,146,324.40 | 17,782,397.68 |
(2). List 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 | 147,806,727.99 | 108,739,134.21 | 239,260,702.08 | 17,285,160.12 |
| 2. Employee benefits | - | 12,060,825.36 | 12,060,825.36 | - |
| 3. Social security contribution | 167,642.26 | 11,320,564.21 | 11,488,206.47 | - |
| Including: contribution to | 80,149.81 | 10,795,907.38 | 10,876,057.19 | - |
| medical insurance scheme | ||||
| Contribution to work-related injury insurance scheme | 57,937.54 | 500,135.98 | 558,073.52 | - |
| Contribution to maternity insurance scheme | 29,554.91 | 24,520.85 | 54,075.76 | - |
| 4. Housing provident fund | 82,804.00 | 13,180,360.00 | 13,263,164.00 | - |
| 5. Contribution to trade union fund and employee education fund | 38,446.36 | 4,638,509.93 | 4,179,718.73 | 497,237.56 |
| Total | 148,095,620.61 | 149,939,393.71 | 280,252,616.64 | 17,782,397.68 |
(3). List of defined contribution plans
√Applicable □Not applicable
Unit: RMB
| Item | Opening balance | Increase in the current period | Decrease in the current period | Closing balance |
| 1. Contribution to the basic endowment insurance scheme | 363,602.60 | 18,401,069.99 | 18,764,672.59 | - |
| 2. Contribution to the unemployment insurance scheme | 14,035.33 | 625,077.01 | 639,112.34 | - |
| Total | 377,637.93 | 19,026,147.00 | 19,403,784.93 | - |
Other notes:
□ Applicable √Not applicable
40. Taxes payable
√Applicable □Not applicable
Unit: RMB
| Item | Closing balance | Opening balance |
| VAT | 4,759,020.66 | 12,041,528.84 |
| Corporate income tax | 288,646,508.24 | 179,050,896.50 |
| Individual income tax | 2,927,670.03 | 1,153,545.22 |
| Urban maintenance and construction tax | 66,045.87 | 101,195.78 |
| Real estate tax | 46,043,137.45 | 86,296,272.76 |
| Land use tax | 33,163,195.39 | 67,659,355.62 |
| Others | 438,997.73 | 1,882,454.99 |
| Total | 376,044,575.37 | 348,185,249.71 |
Other notes:
As of June 30, 2024, the details of the main taxes prepaid by the Group are as follows:
Currency: 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 |
| Land appreciation tax | 247,373.48 | 247,373.48 | |
| Education surcharge and local education surcharge | - | 522,709.51 | 522,709.51 |
| Total | 240,013.55 | 1,501,876.31 | 1,741,889.86 |
41. Other payables
(1). Presentation of items
√Applicable □Not applicable
Unit: RMB
| Item | Closing balance | Opening balance |
| Dividend payable | 608,684,665.60 | - |
| Other payables | 1,679,405,527.45 | 1,862,720,723.00 |
| Total | 2,288,090,193.05 | 1,862,720,723.00 |
(2). Interest payable
□ Applicable √Not applicable
(3). Dividends payable
√Applicable □Not applicable
Unit: RMB
| Item | Closing balance | Opening balance |
| Common stock dividends | 608,684,665.60 | - |
| Total | 608,684,665.60 | - |
Other explanations, for important dividends payable that have not been paid for more than oneyear, include disclosure of the reasons for non-payment:
Nil
(4). Other payables
Presentation of other payables by nature
√Applicable □Not applicable
Unit: RMB
| Item | Closing balance | Opening balance |
| Pending investment refunds | 919,120,810.37 | 977,172,602.34 |
| Withholdings and deposits | 477,590,192.54 | 490,913,484.14 |
| Operating expenses payable | 241,603,327.27 | 320,135,730.30 |
| Restricted stock incentive plan | 40,264,267.55 | 74,367,173.75 |
| Others | 826,929.72 | 131,732.47 |
| Total | 1,679,405,527.45 | 1,862,720,723.00 |
Significant other payables with an aging of over 1 year or overdue
□ Applicable √Not applicable
Other notes:
□ Applicable √Not applicable
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 one year | 187,391,704.59 | 93,995,355.93 |
| Bonds payable due within 1 year | 1,564,653,921.09 | 61,508,191.79 |
| Lease liabilities due within 1 year | 15,900,074.02 | 23,637,246.52 |
| Total | 1,767,945,699.70 | 179,140,794.24 |
Other notes:
Nil
44. Other current liabilities
√Applicable □Not applicable
Unit: RMB
| Item | Closing balance | Opening balance |
| Short-term financing notes payable | 3,029,408,685.78 | 3,025,604,467.02 |
| Payment business transactions | 424,950,326.79 | 360,157,213.40 |
| Deferred output tax liability | 120,478,684.35 | 124,426,245.96 |
| Dividend payable to to-be-recognized accounts | 2,653,400.82 | 2,653,400.82 |
| Dividend announced but not collected before listing | 2,083,112.65 | 2,083,112.65 |
| Total | 3,579,574,210.39 | 3,514,924,439.85 |
Changes in short-term bonds payable:
√Applicable □Not applicable
Unit: RMB
| Bond name | Face value | Coupon rate (%) | Issuing date | Bond term | Issuing amount | Opening balance | Issue in the current period | Interest accrued based on face value | Premium/discount amortization | Repayment in the current period | Closing balance | Whether it was overdue |
| Super-short-term commercial paper | 100 | 2.68 | Jun 20, 2023 | 269 days | 1,000,000,000.00 | 1,014,109,474.89 | - | 5,379,459.54 | 208,333.33 | 1,019,697,267.76 | - | No |
| Super-short-term commercial paper | 100 | 2.72 | Sep 13, 2023 | 210 days | 1,000,000,000.00 | 1,007,838,592.80 | - | 7,409,297.11 | 358,667.47 | 1,015,606,557.38 | - | No |
| Super-short-term commercial paper | 100 | 2.78 | Nov 8, 2023 | 268 days | 1,000,000,000.00 | 1,003,656,399.33 | - | 13,812,806.35 | 369,045.69 | - | 1,017,838,251.37 | No |
| Super-short-term commercial paper | 100 | 2.40 | Mar 13, 2024 | 268 days | 1,000,000,000.00 | - | 1,000,000,000.00 | 7,213,114.75 | 305,555.55 | - | 1,006,774,225.86 | No |
| Super-short-term commercial paper | 100 | 2.33 | Apr 9, 2024 | 261 days | 1,000,000,000.00 | - | 1,000,000,000.00 | 5,283,879.78 | 227,397.26 | - | 1,004,796,208.55 | No |
| Total | / | / | / | / | 5,000,000,000.00 | 3,025,604,467.02 | 2,000,000,000.00 | 39,098,557.53 | 1,468,999.30 | 2,035,303,825.14 | 3,029,408,685.78 | / |
Other notes:
□ Applicable √Not applicable
45. Long-term borrowings
(1). Classification of long-term borrowings
√Applicable □Not applicable
Unit: RMB
| Item | Closing balance | Opening balance |
| Credit loans | 1,095,171,767.62 | 956,794,218.96 |
| Long-term borrowings due within one year | -187,391,704.59 | -93,995,355.93 |
| Total | 907,780,063.03 | 862,798,863.03 |
Notes on the classification of long-term borrowings:
Nil
Other statements
√Applicable □Not applicable
As of June 30, 2024, the annual interest rate of the above-mentioned loan was
2.55%-3.00% (December 31, 2023: 2.70%-3.20%).
46. Payable bonds
(1). Payable bonds
√Applicable □Not applicable
Unit: RMB
| Item | Closing balance | Opening balance |
| Bonds payable | 3,564,052,843.32 | 3,559,960,676.26 |
| Bonds payable due within one year | -1,564,653,921.09 | -61,508,191.79 |
| Total | 1,999,398,922.23 | 3,498,452,484.47 |
(2). Specific situation of payable bonds: (excluding preferred stocks, perpetual bonds, and other financial instruments classified as
financial liabilities)
√Applicable □Not applicable
Unit: RMB
| Bond name | Face value (RMB) | Coupon rate (%) | Issuing date | Bond term | Issuing amount | Opening balance | Interest accrued based on face value | Premium/discount amortization | Repayment in the current period | Transfer to bonds due within one year | Closing balance | Whether it was overdue |
| MTN | 100 | 3.29 | Feb 24, 2022 | 3 years | 1,000,000,000.00 | 999,543,046.26 | 11,447,397.26 | 182,032.83 | - | 1,011,172,476.35 | - | No |
| MTN | 100 | 3.57 | Mar 29, 2022 | 3 years | 500,000,000.00 | 499,754,132.13 | 4,596,986.30 | 90,764.67 | - | 504,441,883.10 | - | No |
| MTN | 100 | 3.00 | July 20, 2022 | 3 years | 500,000,000.00 | 499,699,270.69 | 14,219,178.08 | 91,278.13 | - | 14,219,178.08 | 499,790,548.82 | No |
| Corporate bonds | 100 | 2.88 | Sep 1, 2022 | 3 years | 800,000,000.00 | 799,714,114.98 | 19,189,479.45 | 81,287.56 | - | 19,189,479.45 | 799,795,402.54 | No |
| Corporate bonds | 100 | 2.88 | Sep 22, 2022 | 3 years | 700,000,000.00 | 699,741,920.41 | 15,630,904.11 | 71,050.46 | - | 15,630,904.11 | 699,812,970.87 | No |
| Total | / | / | / | / | 3,500,000,000.00 | 3,498,452,484.47 | 65,083,945.20 | 516,413.65 | - | 1,564,653,921.09 | 1,999,398,922.23 | / |
(3). Description of convertible corporate bonds
□ Applicable √Not applicable
Accounting treatment and judgment basis for equity conversion
□ Applicable √Not applicable
(4). Explanation of other financial instruments classified as financial liabilitiesBasic information of other financial instruments such as preferred shares and perpetual bondsoutstanding at the end of the reporting period
□ Applicable √Not applicable
Changes in other financial instruments such as preferred shares and perpetual bondsoutstanding 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 | 280,220,129.27 | 295,896,757.48 |
| Unrecognized financing charges | -84,087,663.31 | -95,427,304.70 |
| Lease liabilities due within 1 year | -15,900,074.02 | -23,637,246.52 |
| Total | 180,232,391.94 | 176,832,206.26 |
Other notes:
Note: The Group uses the incremental borrowing rate of 2.78%-8.01% as the discount rateto calculate book value to determine the lease liability and measure right-of-use assets.
48. Long-term payables
Presentation of items
□ Applicable √Not applicable
Long-term payables
□ Applicable √Not applicable
Special accounts payable
□ Applicable √Not applicable
49. Long-term employee compensation payable
□ Applicable √Not applicable
50. Estimated liabilities
□ Applicable √Not applicable
51. Deferred income
Overview of deferred income
√Applicable □Not applicable
Unit: RMB
| Item | Opening balance | Increase in the current period | Decrease in the current period | Closing balance | Cause of formation |
| Asset-related government grants | 160,432,656.23 | - | 7,589,275.14 | 152,843,381.09 | |
| Total | 160,432,656.23 | - | 7,589,275.14 | 152,843,381.09 | / |
Other notes:
□ Applicable √Not applicable
52. Other non-current liabilities
□ Applicable √Not applicable
53. Share capital
√Applicable □Not applicable
Unit: RMB
| Opening balance | Increase or decrease in the current period (+, -) | Closing balance | ||
| Others | Sub-total | |||
| Total number of shares | 5,484,334,176.00 | - | - | 5,484,334,176.00 |
Other notes:
Nil
54. Other equity instruments
(1) Basic information of other financial instruments such as preferred stocks andperpetual bonds outstanding at the end of the period
□ Applicable √Not applicable
(2) Statement of changes in financial instruments such as preferred stocks andperpetual bonds outstanding at the end of the 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) | 1,576,915,195.61 | 26,939,682.00 | - | 1,603,854,877.61 |
| Stock incentive | 49,272,885.07 | 3,769,054.85 | 26,939,682.00 | 26,102,257.92 |
| Other capital reserve | 40,694,006.92 | - | - | 40,694,006.92 |
| Total | 1,666,882,087.60 | 30,708,736.85 | 26,939,682.00 | 1,670,651,142.45 |
Other notes including those on the changes in the current period and the reasons therefor:
This year, the Group unlocked some restricted stocks. The corresponding capital reservefor the unlocking of restricted shares was RMB 26,939,682.00.The confirmed share-based payment expense for this year was RMB 3,769,054.85, whichwas included in the capital reserve.
56. Treasury stocks
√Applicable □Not applicable
Unit: RMB
| Item | Opening balance | Increase in the current period | Decrease in the current period | Closing balance |
| Restricted stock incentive plan | 74,367,173.75 | - | 34,102,906.20 | 40,264,267.55 |
| Total | 74,367,173.75 | - | 34,102,906.20 | 40,264,267.55 |
Other notes including those on the changes in the current period and the reasons therefor:
This year, the Group unlocked some restricted stocks. The corresponding decrease intreasury shares for the unlocking of restricted shares was RMB 34,102,906.20.
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 the parent company | |||
| I. Other comprehensive income that cannot be reclassified into profit or loss | 2,453,961.13 | -1,254,273.38 | -313,568.35 | -940,705.04 | 1,513,256.09 |
| Change in fair value of other equity instruments investment | 2,453,961.13 | -1,254,273.38 | -313,568.35 | -940,705.04 | 1,513,256.09 |
| II. Other comprehensive income to be reclassified into profit or loss | 20,940,736.19 | 2,423,498.04 | - | 2,423,498.04 | 23,364,234.23 |
| Other comprehensive income that can be transferred into profit and loss under equity method | 4,945,544.14 | 217,103.05 | - | 217,103.05 | 5,162,647.19 |
| Difference arising from the translation of foreign | 15,995,192.05 | 2,206,394.99 | - | 2,206,394.99 | 18,201,587.04 |
| currency financial statements | |||||
| Total other comprehensive income | 23,394,697.32 | 1,169,224.66 | -313,568.35 | 1,482,793.00 | 24,877,490.32 |
Other notes, including those on the adjustment of the initially recognized amount of hedgeditems converted from the effective part of gains or losses from cash flow hedging:
Nil
58. Special reserves
□ 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 | 1,827,766,734.43 | - | - | 1,827,766,734.43 |
| Discretionary surplus reserve | 40,195,855.68 | - | - | 40,195,855.68 |
| Others | 11,688,840.91 | - | - | 11,688,840.91 |
| Total | 1,879,651,431.02 | - | - | 1,879,651,431.02 |
Notes on surplus reserves, including those on the changes in the current period and thereasons therefor:
Nil
60. Undistributed profit
√Applicable □Not applicable
Unit: RMB
| Item | Current period | Previous year |
| Undistributed profits at the end of the previous reporting period before adjustment | 8,703,604,953.04 | 6,651,440,591.35 |
| Opening undistributed profits after adjustment | 8,703,604,953.04 | 6,651,440,591.35 |
| Add: net profits attributable to shareholders of the parent company in the current period | 1,447,982,745.49 | 2,676,182,133.26 |
| Less: withdrawal of statutory surplus reserve | - | 263,568,294.29 |
| General risk reserve | - | 3,854,655.84 |
| Common share dividend payable | 1,096,866,835.20 | 356,594,821.44 |
| Closing undistributed profits | 9,054,720,863.33 | 8,703,604,953.04 |
Details of the adjustment of opening undistributed profits:
1. The opening undistributed profits affected by the retroactive adjustment made in accordancewith the Accounting Standards for Enterprises and related new provisions amounted to RMB 0.
2.The opening undistributed profits affected by the changes in accounting policies amounted toRMB 0.
3. The opening undistributed profits affected by the correction of major accounting errorsamounted to RMB 0.
4. The opening undistributed profits affected by changes in the scope of mergers caused bycommon control amounted to RMB 0.
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 prior corresponding period | ||
| Revenue | Cost of sales | Revenue | Cost of sales | |
| Main businesses | 6,596,681,432.31 | 4,485,665,686.10 | 4,981,391,903.99 | 3,497,747,787.03 |
| Other businesses | 169,252,704.82 | 42,229,662.02 | 179,599,139.26 | 84,762,663.32 |
| Total | 6,765,934,137.13 | 4,527,895,348.12 | 5,160,991,043.25 | 3,582,510,450.35 |
(2). Breakdown information of operating revenue and operating costs
√Applicable □Not applicable
Unit: RMB
| Classified by type of contract | Total | |
| Operating revenue | Operating cost | |
| By Industry type | ||
| Market operation | 2,269,320,902.37 | 412,933,423.81 |
| Trade services | 370,849,952.74 | 81,210,859.23 |
| Supporting services | 231,045,537.97 | 170,312,418.96 |
| Product sales | 3,894,717,744.05 | 3,863,438,646.12 |
| By business region | ||
| Chinese Mainland | 6,648,328,598.74 | 4,425,255,978.59 |
| Overseas | 117,605,538.39 | 102,639,369.53 |
| By the time of transfer of goods | ||
| Recognizing revenue at a certain point in time | 4,162,174,451.35 | 3,956,556,265.15 |
| Recognizing revenue during a certain period of time | 2,603,759,685.78 | 571,339,082.97 |
| Total | 6,765,934,137.13 | 4,527,895,348.12 |
Other statements
√Applicable □Not applicable
The income recognized in the current year and included in the opening book value ofcontractual liabilities is as follows:
Unit: RMB
| Industry type | Current period |
| Market operation | 2,144,527,009.14 |
| Trade services | 185,397,616.77 |
| Supporting services | 39,122,342.26 |
| Sales of goods | 820,058,121.03 |
| Total | 3,189,105,089.20 |
(3). Contract performance obligations
√Applicable □Not applicable
Unit: RMB
| Item | Time for fulfilling performance obligations | Important payment terms | Nature of the goods that the Company promises to transfer | Whether the Company is the main responsible person | Payments borne by the Company that will be refunded to customers | The types of quality assurance provided by the Company and related obligations |
| Sales of goods | When delivering goods | Advance payment or right to receive payment after delivery of goods | Trade retail goods | Yes | - | Nil |
| The use of shops in Yiwu Market and its supporting services | When providing services | Part of the deposit will be collected in advance, and the remaining amount will be collected upon completion of the | Shop use right / supporting services for operation | Yes | - | Nil |
| performance | ||||||
| Hotel accommodation business | When providing services | Collection upon completion of performance | Hotel accommodation service | Yes | - | Nil |
| Hotel catering business | Upon completion of the service | Collection upon completion of performance | Catering services | Yes | - | Nil |
| Terminable paid use of funds services | When providing services | Regular collection | Fund sources | Yes | - | Nil |
| Total | / | / | / | / | - | / |
(4). Explanation of allocation to remaining contract performance obligations
□ Applicable √Not applicable
(5). Significant contract changes or significant transaction price adjustments
□ Applicable √Not applicable
Other notes:
In January-June 2024, there was no revenue recognized in this period for performanceobligations already fulfilled (or partially fulfilled) in the previous period.
62. Taxes and surcharges
√Applicable □Not applicable
Unit: RMB
| Item | Amount in the current period | Amount in the prior corresponding period |
| Real estate tax | 63,375,167.44 | 59,770,011.60 |
| Land use tax | 9,521,117.83 | -20,871,643.50 |
| Stamp duty | 3,876,045.62 | 2,760,376.78 |
| Urban maintenance and construction tax | 3,481,163.04 | 2,592,625.45 |
| Education surcharge | 1,431,100.14 | 1,111,245.71 |
| Local education surcharge | 954,066.68 | 740,831.51 |
| Cultural undertaking development fee | 352,418.59 | 285,127.01 |
| Vehicle and vessel use tax | 2,040.00 | 1,380.00 |
| Land appreciation tax | - | 303,673.11 |
| Consumption tax | - | 56.64 |
| Total | 82,993,119.34 | 46,693,684.31 |
Other notes:
Nil
63. sales expense
√Applicable □Not applicable
Unit: RMB
| Item | Amount in the current period | Amount in the prior corresponding period |
| Marketing expenses | 58,655,407.13 | 44,804,065.01 |
| Security and insurance expenses | 14,881,145.37 | 16,637,122.08 |
| Advertising expenses | 11,813,472.20 | 8,817,741.95 |
| Water, electricity and fuel expenses | 3,714,266.39 | 3,001,783.95 |
| Depreciation and amortization | 456,351.72 | 68,097.07 |
| Others | 2,685,502.17 | 4,434,858.43 |
| Total | 92,206,144.98 | 77,763,668.49 |
Other notes:
Nil
64. Management costs
√Applicable □Not applicable
Unit: RMB
| Item | Amount in the current period | Amount in the prior corresponding period |
| Employee and uniform expenses | 131,154,974.85 | 167,894,577.09 |
| Depreciation and amortization | 67,190,228.01 | 73,931,835.81 |
| Office expenses | 5,094,467.96 | 5,162,481.69 |
| Intermediary expenses | 4,253,052.99 | 5,181,120.84 |
| Travel expenses | 2,716,793.06 | 3,181,309.38 |
| Promotion and market traders introduction expenses | 122,347.60 | 174,131.61 |
| Start-up fee | 22,094.75 | 61,043.87 |
| Others | 7,584,991.96 | 12,312,567.93 |
| Total | 218,138,951.18 | 267,899,068.22 |
Other notes:
Nil
65. Research and development expenses
√Applicable □Not applicable
Unit: RMB
| Item | Amount in the current period | Amount in the prior corresponding period |
| Labor cost | 9,080,982.23 | 7,187,298.15 |
| Technology R&D expenses | 2,517,921.67 | 3,114,081.41 |
| Depreciation and amortization | 41,306.12 | 93,741.44 |
| Others | 118,996.62 | 129,128.20 |
| Total | 11,759,206.64 | 10,524,249.20 |
Other notes:
Nil
66. Financial expenses
√Applicable □Not applicable
Unit: RMB
| Item | Amount in the current period | Amount in the prior corresponding period |
| Interest expenses | 120,646,122.86 | 125,445,414.65 |
| Amortization of short-term commercial paper discount | 1,860,172.07 | 1,974,371.03 |
| Less: interest income | 23,637,669.49 | 38,139,798.22 |
| Less:capitalized amount of interest | 51,962,221.53 | 35,577,046.98 |
| Foreign exchange gains or losses | -555,504.48 | -6,265,717.17 |
| Amortization of unrecognized financing expenses | 5,402,522.51 | 5,893,167.81 |
| Others | 1,817,809.40 | 273,509.77 |
| Total | 53,571,231.34 | 53,603,900.89 |
Other notes:
The capitalized amount of borrowing costs has been included in inventory and construction inprogress.
67. Other income
√Applicable □Not applicable
Unit: RMB
| Classified by nature | Amount in the current period | Amount in the prior corresponding period |
| Government subsidies related to daily activities | 11,178,944.81 | 14,631,536.76 |
| Total | 11,178,944.81 | 14,631,536.76 |
Other notes:
Nil
68. Investment income
√Applicable □Not applicable
Unit: RMB
| Item | Amount in the current period | Amount in the prior corresponding period |
| Income from long-term equity investment calculated with the equity method | 98,348,751.52 | 1,017,671,762.53 |
| Investment income from disposal of long-term equity investment | - | 11,475,509.19 |
| Interest income from debt investment during holding period | 1,258,704.40 | 1,252,476.06 |
| Investment income from disposal of held-for-trading financial assets | - | 1,763,697.53 |
| Investment income from disposal of wealth management products | - | 31,995.58 |
| Income acquired from other non-current financial assets during the holding period | 9,368,068.09 | 2,110,591.00 |
| Investment income from disposal of other non-current financial assets | -978,877.07 | -805,917.38 |
| Total | 107,996,646.94 | 1,033,500,114.51 |
Other notes:
Nil
69. Net exposure hedging income
□ Applicable √Not applicable
70. Gains 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 prior corresponding period |
| Held-for-trading financial assets | -3,490,077.50 | 2,123,980.00 |
| Other non-current financial assets | - | -9,305,911.08 |
| Total | -3,490,077.50 | -7,181,931.08 |
Other notes:
Nil
71. Credit impairment loss
√Applicable □Not applicable
Unit: RMB
| Item | Amount in the current period | Amount in the prior corresponding period |
| Bad debt loss of accounts receivable | 43,838.62 | 529,746.89 |
| Loss for bad debts of other receivables | 15,566.09 | 19,170.96 |
| Total | 59,404.71 | 548,917.85 |
Other notes:
Nil
72. Asset impairment loss
□ Applicable √Not applicable
73. Asset disposal income
√Applicable □Not applicable
Unit: RMB
| Item | Amount in the current period | Amount in the prior corresponding period |
| Income from disposal of property, plant and equipment | 84.36 | 165,883,894.78 |
| Total | 84.36 | 165,883,894.78 |
Other notes:
□ Applicable √Not applicable
74. Non-operating income
√Applicable □Not applicable
Unit: RMB
| Item | Amount in the current period | Amount in the prior corresponding period | Amount recognized in non-recurring gains and losses for the current period |
| Incomes from liquidated damages | 14,453,216.26 | 2,515,430.08 | 14,453,216.26 |
| Others | 1,803,253.72 | 596,279.55 | 1,803,253.72 |
| Total | 16,256,469.98 | 3,111,709.63 | 16,256,469.98 |
Other notes:
□ Applicable √Not applicable
75. Non operating expenditure
√Applicable □Not applicable
Unit: RMB
| Item | Amount in the current period | Amount in the prior corresponding period | Amount recognized in non-recurring gains and losses for the current period |
| Total loss for disposal of non-current assets | 111,979.20 | 108,245.71 | 111,979.20 |
| Including: loss for disposal of property, plant and equipment | 111,979.20 | 108,245.71 | 111,979.20 |
| Others | 1,288,784.77 | 89,722.64 | 1,288,784.77 |
| Total | 1,400,763.97 | 197,968.35 | 1,400,763.97 |
Other notes:
Nil
76. Income tax expense
(1) Table of income tax expenses
√Applicable □Not applicable
Unit: RMB
| Item | Amount in the current period | Amount in the prior corresponding period |
| Current income tax expenses | 446,616,915.76 | 319,963,973.46 |
| Deferred income tax expenses | 12,935,751.21 | 11,673,848.56 |
| Total | 459,552,666.97 | 331,637,822.02 |
(2) Adjustment process of accounting profits and income tax expenses
√Applicable □Not applicable
Unit: RMB
| Item | Amount in the current period |
| Profits before tax | 1,909,970,844.86 |
| Income tax expenses calculated at the statutory/applicable tax rate | 477,492,711.22 |
| Impact of different tax rates applied by subsidiaries | -6,214,759.16 |
| Effect of adjusting income tax of previous period | 3,010,152.95 |
| Effect of non-taxable income | -4,243,741.15 |
| Effect of non-deductible costs, expenses and losses | -4,566,285.00 |
| Effect of using deductible losses of unrecognized deferred income tax assets in previous period | -6,979,296.66 |
| Effect of deductible temporary differences or deductible losses of unrecognized deferred income tax assets in the current period | 25,641,072.64 |
| Profits or losses attributable to joint ventures and associates | -24,587,187.87 |
| Income tax expenses | 459,552,666.97 |
Other notes:
□ Applicable √Not applicable
77. Other comprehensive income
√Applicable □Not applicable
For details, please refer to Note 57. Other comprehensive income
78. Cash flow statement items
(1). Cash related to operating activities
Other cash receipts relating to operating activities
√Applicable □Not applicable
Unit: RMB
| Item | Amount in the current period | Amount in the prior corresponding period |
| Deposit and margin received | 99,768,071.94 | 82,617,679.95 |
| Bank deposit interest income received | 23,637,669.49 | 38,139,798.22 |
| Government grants received | 3,128,471.15 | 64,401,761.02 |
| Bank reserve received | - | 1,930,508.43 |
| Others | 775,086.85 | 861,796.06 |
| Total | 127,309,299.43 | 187,951,543.68 |
Notes on other cash receipts relating to operating activities:
Nil
Other cash payments relating to operating activities
√Applicable □Not applicable
Unit: RMB
| Item | Amount in the current period | Amount in the prior corresponding period |
| Fees paid | 163,115,497.55 | 137,806,934.75 |
| Margins paid | 68,812,485.01 | 115,118,650.38 |
| Bank reserve paid | 9,828,318.72 | - |
| Others | 2,428,632.09 | 4,355,093.88 |
| Total | 244,184,933.37 | 257,280,679.01 |
Notes on other cash payments relating to operating activities:
Nil
(2). Cash related to investment activities
Cash received related to important investment activities
□ Applicable √Not applicable
Cash paid related to important investment activities
□ Applicable √Not applicable
Other cash receipts relating to investing activities
√Applicable □Not applicable
Unit: RMB
| Item | Amount in the current period | Amount in the prior corresponding period |
| Recovered pending investment refunds | 6,842,944.87 | - |
| Financial assistance received from joint ventures and their subsidiaries | - | 501,750,200.00 |
| Total | 6,842,944.87 | 501,750,200.00 |
Notes on other cash receipts relating to investing activities:
Nil
Other cash payments relating to investing activities
√Applicable □Not applicable
Unit: RMB
| Item | Amount in the current period | Amount in the prior corresponding period |
| Payment of financial assistance funds | - | 11,553,412.19 |
| Total | - | 11,553,412.19 |
Other cash paid related to investment activities:
Nil
(3). Cash related to financing activities
Other cash receipts relating to financing activities
□ Applicable √Not applicable
Other cash payments relating to financing activities
√Applicable □Not applicable
Unit: RMB
| Item | Amount in the current period | Amount in the prior corresponding period |
| Lease payments paid | 8,350,298.44 | 14,105,217.90 |
| Total | 8,350,298.44 | 14,105,217.90 |
Other cash paid related to financing activities:
Nil
Changes in liabilities arising from financing activities
√Applicable □Not applicable
Unit: RMB
| Item | Opening balance | Increase in the current period | Decrease in the current period | Closing balance | ||
| Cash changes | Non-cash changes | Cash changes | Non-cash changes | |||
| Short-term borrowings | 1,619,804,888.91 | 1,150,000,000.00 | 17,613,194.43 | 1,436,298,222.22 | - | 1,351,119,861.12 |
| Non-current liabilities due within one year | 179,140,794.24 | - | 1,671,761,851.02 | 82,956,945.56 | - | 1,767,945,699.70 |
| Other current liabilities | 3,025,604,467.02 | 1,998,540,487.07 | 40,567,556.83 | 2,035,303,825.14 | - | 3,029,408,685.78 |
| Long-term borrowings | 862,798,863.03 | 161,000,000.00 | - | - | 116,018,800.00 | 907,780,063.03 |
| Bonds payable | 3,498,452,484.47 | - | 65,600,358.85 | - | 1,564,653,921.09 | 1,999,398,922.23 |
| Lease liabilities | 176,832,206.26 | - | 23,090,125.51 | 8,350,298.44 | 11,339,641.39 | 180,232,391.94 |
| Total | 9,362,633,703.93 | 3,309,540,487.07 | 1,818,633,086.64 | 3,562,909,291.36 | 1,692,012,362.48 | 9,235,885,623.80 |
(4). Description of cash flows reported on a net basis
□ Applicable √Not applicable
(5). Significant activities and financial impacts that do not involve current cash inflows and outflows but affect the financial condition of the
enterprise or may affect the cash flow of the enterprise in the future
□ Applicable √Not applicable
79. Supplementary information to the statement of cash flows
(1). Supplementary information to the statement of cash flows
√Applicable □Not applicable
Unit: RMB
| Supplements | Amount in the current period | Amount in the prior corresponding period |
| 1. Adjustment of net profit to cash flow from operating activities: | ||
| Net profits | 1,450,418,177.89 | 2,000,654,473.87 |
| Add: provision for impairment of assets | - | - |
| Loss of impairment of credit | -59,404.71 | -548,917.85 |
| Depreciation of fixed assets, depletion of oil and gas assets and depreciation of bearer biological assets | 187,680,876.93 | 188,468,645.61 |
| Amortization of right-of-use assets | 11,527,583.24 | 15,937,530.77 |
| Amortization of intangible assets | 109,207,569.54 | 109,533,646.98 |
| Depreciation and amortization of investment properties | 88,915,728.05 | 69,501,857.47 |
| Amortization of long-term prepaid expenses | 58,302,692.34 | 39,324,216.01 |
| Loss from disposal of fixed assets, intangible assets and other long-term assets (gains indicated by “-”) | -84.36 | -165,883,894.78 |
| Loss from fixed assets retirement (gains indicated by “-”) | 111,979.20 | 108,245.71 |
| Loss from changes in fair value (gains indicated by “-”) | 3,490,077.50 | 7,181,931.08 |
| Financial expenses (gains indicated by “-”) | 75,946,595.91 | 97,735,906.51 |
| Investment loss (gains indicated by “-”) | -107,996,646.94 | -1,050,919,439.23 |
| Decrease in deferred income tax assets (increase indicated by “－”) | 13,827,748.52 | -1,100,746.99 |
| Increase in deferred income tax liabilities (decrease indicated by “－”) | -1,205,565.66 | 32,842,969.56 |
| Decrease in inventory (increase indicated by “－”) | -649,783,571.62 | 106,993,100.52 |
| Decrease in operating receivables (increase indicated by “－”) | 1,005,589,280.38 | -381,251,455.03 |
| Increase in operating payables (decrease indicated by “－”) | -2,131,609,535.38 | -925,330,874.43 |
| Net cash flow from operating activities | 114,363,500.83 | 143,247,195.78 |
| 2. Investment and financing activities that do not involve cash income and payment: | ||
| 3. Net increase in cash and cash equivalents: | ||
| Closing balance of cash | 963,102,575.65 | 2,164,979,668.87 |
| Less: opening balance of cash | 2,910,178,939.19 | 1,981,200,941.64 |
| Add: closing balance of cash equivalents | - | - |
| Less: opening balance of cash equivalents | - | - |
| Net increase in cash and cash equivalents | -1,947,076,363.54 | 183,778,727.23 |
(2). Net cash paid for acquisition of subsidiaries in this period
□ Applicable √Not applicable
(3). Net cash from disposal of subsidiaries in this period
□ Applicable √Not applicable
(4). Composition of cash and cash equivalents
√Applicable □Not applicable
Unit: RMB
| Item | Closing balance | Opening balance |
| I. Cash | 963,102,575.65 | 2,910,178,939.19 |
| Including: cash on hand | 213,381.46 | 249,915.87 |
| Bank deposit that can be used for payment at any time | 960,163,609.71 | 2,909,921,203.08 |
| Other monetary capital that can be used for payment at any time | 2,725,584.48 | 7,820.24 |
| II. Cash equivalents | - | - |
| Including: bond investments due within three months | - | - |
| III. Closing balance of cash and cash equivalents | 963,102,575.65 | 2,910,178,939.19 |
| Including:cash and cash equivalents with restricted use by the parent company or its subsidiaries | 16,594,295.29 | 12,556,381.42 |
(5). Situations where the scope of use is limited but still listed as cash and cash
equivalents
□ Applicable √Not applicable
(6). Monetary funds that do not belong to cash and cash equivalents
□ Applicable √Not applicable
Other notes:
□ Applicable √Not applicable
80. Notes to items in the statement of changes in owners' equityNames of “others” items whose closing balances in the previous year are adjusted and theamounts of adjustments:
□ Applicable √Not applicable
81. Foreign currency monetary items
(1). Foreign currency monetary items
√Applicable □Not applicable
Unit: RMB
| Item | Closing balance in foreign currency | Exchange rate | Closing balance after convertion: RMB |
| Cash and cash equivalents | - | - | |
| Including: US dollars | 5,103,572.22 | 7.1268 | 36,372,138.50 |
| Euro | 128,458.22 | 7.6617 | 984,208.34 |
| Rwandan Franc | 15,749,722.00 | 0.0055 | 87,300.71 |
| Dirham | 36,499.00 | 1.9462 | 71,034.35 |
| Koruna | 5,562,935.07 | 0.3100 | 1,724,509.88 |
| Accounts receivable | - | - | |
| Including: US dollars | 416,308.57 | 7.1268 | 2,966,947.93 |
| EURO | 152.18 | 7.6617 | 1,165.96 |
| Koruna | 15,819,861.76 | 0.3100 | 4,904,157.14 |
| Other receivables | - | - | |
| Including: US dollars | 361,319.11 | 7.1268 | 2,575,049.03 |
| EURO | 20,060.00 | 7.6617 | 153,693.70 |
| Koruna | 18,148,013.89 | 0.3100 | 5,625,884.31 |
| Accounts payable | - | - | |
| Including: US dollars | 1,846,880.16 | 7.1268 | 13,162,345.52 |
| Koruna | 147,421.10 | 0.3100 | 45,700.54 |
| Other payables | - | - | |
| Including: US dollars | 1,738,995.14 | 7.1268 | 12,393,470.57 |
| EURO | 24,948.87 | 7.6617 | 191,150.76 |
| Koruna | 138,490,383.66 | 0.3100 | 42,932,018.93 |
Other notes:
Nil
(2). Description of overseas operating entities, for important overseas operating entities,includes the disclosure of principal overseas place of business, functional currency andthe basis for selection, and the reason for the change in functional currency.
□ Applicable √Not applicable
82. Lease
(1). As a leasee
√Applicable □Not applicable
Variable lease payments not included in the measurement of lease liabilities
□ Applicable √Not applicable
Simplified short-term lease or low-value assets leasing expenses
√Applicable □Not applicable
Simplified short-term lease expenses of RMB 7,512,968.82 included in profit or loss for thecurrent period.Simplified low-value assets lease expenses of RMB 450,583.97 included in profit or loss forthe current period.
Leaseback transactions and judgment basis
□ Applicable √Not applicable
The total cash outflow related to leasing was RMB 8,350,298.44.
(2). As a lessor
Operating lease as lessor
□ Applicable √Not applicable
Financing lease as lessor
□ Applicable √Not applicable
Adjustment table for undiscounted lease receipts and net lease investments
□ Applicable √Not applicable
Undiscounted lease receipts for the next five years
□ Applicable √Not applicable
(3). Confirmed gains and losses of financing lease sales as a manufacturer or distributor
□ Applicable √Not applicable
Other statementsThe leased assets of the Group include houses, buildings, land use rights, and otherequipment used in the operating process. The lease term for houses and buildings is usually2-5 years, and the lease term for land use rights is 10 years.For right-of-use assets, please refer to Note VII.25. Right-of-use assets; for lease liabilities,please refer to Note VII.47. Lease liabilities.
83. Data resources
□ Applicable √Not applicable
84. Other
□ Applicable √Not applicable
VIII. R&D expenditure
(1). Listed by nature of expenses
√Applicable □Not applicable
Unit: RMB
| Item | Amount in the current period | Amount in the prior corresponding period |
| Labor cost | 19,706,355.70 | 18,478,351.38 |
| Technology development fee | 193,408.81 | 371,144.77 |
| Depreciation and amortization | 4,737,153.26 | 6,427,753.86 |
| Others | 163,773.60 | 521,160.10 |
| Total | 24,800,691.37 | 25,798,410.11 |
| Among them: Expensed R&D expenditure | 11,759,206.64 | 10,524,249.20 |
| Capitalized R&D expenditure | 13,041,484.73 | 15,274,160.91 |
Other notes:
Nil
(2). R&D project development expenditure that meet capitalization criteria
√Applicable □Not applicable
Unit: RMB
| Item | Opening balance | Increase in the current period | Decrease in the current period | Closing balance | |
| Internal development expenditure | Recognized as intangible assets | Transfer to profit or loss for the current period | |||
| The development project for platform “chinagoods” | 7,130,228.92 | 1,057,601.03 | 5,966,692.23 | 2,078,436.70 | 142,701.02 |
| Kuaijietong Core Payment System | 3,662,987.28 | 2,013,470.06 | 3,762,767.80 | - | 1,913,689.54 |
| Data resources | 7,855,225.73 | 9,970,413.64 | 8,724,238.82 | - | 9,101,400.55 |
| Total | 18,648,441.93 | 13,041,484.73 | 18,453,698.85 | 2,078,436.70 | 11,157,791.11 |
Important capitalized research and development projects
□ Applicable √Not applicable
Provision for impairment of development expenditure
□ Applicable √Not applicable
Other statementsNil
(3). Important outsourced projects under research
□ Applicable √Not applicable
IX. Changes in the scope of consolidation
1. Business combinations not under common control
□ Applicable √Not applicable
2. Business combinations under common control
□ Applicable √Not applicable
3. Reverse acquisition
□ Applicable √Not applicable
4. Disposal of subsidiaries
Whether there were any transactions or events that resulted in the loss of control over a subsidiary in this period
□ Applicable √Not applicable
Other notes:
□ Applicable √Not applicable
Is there a situation where investments in subsidiaries were disposed of in stages through multiple transactions and control was lost in the currentperiod
□ Applicable √Not applicable
Other notes:
□ Applicable √Not applicable
5. Changes in the scope of consolidation due to other reasonsChanges in the consolidation scope for other reasons (e.g. new establishment of subsidiaries, liquidation of subsidiaries, etc.) and the relatedinformation:
√Applicable □Not applicable
The Company established subsidiaries Yiwu Yundailu Data Technology Co., Ltd. and Mingzhe Technology Development Co., Ltd. in this period.
6. Other
□ Applicable √Not applicable
X. Equity in other entities
1. Equity in subsidiaries
(1). Composition of the Group
√Applicable □Not applicable
Unit: RMB10,000
| Subsidiary Name | Main place of business | Registered capital | Place of registration | Business | Shareholding ratio (%) | Acquisition Method | |
| Direct | Indirect | ||||||
| Yiwu China Commodities City Import and Export Co., Ltd. | Yiwu, Zhejiang | 10,000.00 | Yiwu, Zhejiang | Wholesale | 100.00 | Establishment | |
| Yiwu China Commodities City Supply Chain Management Co., Ltd. | Yiwu, Zhejiang | 10,000.00 | Yiwu, Zhejiang | Wholesale | 100.00 | Establishment | |
| Yiwu Comprehensive Bonded Zone Operation and Management Co., Ltd. | Yiwu, Zhejiang | 10,000.00 | Yiwu, Zhejiang | Business service | 100.00 | Establishment | |
| Yiwu China Commodities City Overseas Investment and Development Co., Ltd. | Yiwu, Zhejiang | 10,000.00 | Yiwu, Zhejiang | Business service | 100.00 | Establishment | |
| Yiwu China Commodities City Tourism Development Co., Ltd. | Yiwu, Zhejiang | 10,000.00 | Yiwu, Zhejiang | Business service | 100.00 | Establishment | |
| Yiwu China Commodities City Assets Operation and Management Co., Ltd. | Yiwu, Zhejiang | 1,000.00 | Yiwu, Zhejiang | Business service | 100.00 | Establishment | |
| Zhejiang Yindu Hotel Management Co., Ltd. | Yiwu, Zhejiang | 1,000.00 | Yiwu, Zhejiang | Business service | 100.00 | Establishment | |
| Yiwu Yandoo Shangtu Catering Co., Ltd | Yiwu, Zhejiang | 500.00 | Yiwu, Zhejiang | Business service | 100.00 | Establishment | |
| Yiwu China Commodities City Research Institute Co., Ltd. | Yiwu, Zhejiang | 1,000.00 | Yiwu, Zhejiang | Business service | 100.00 | Establishment | |
| Yiwu Shangbo Shuzhi Enterprise Management | Yiwu, Zhejiang | 30,000.00 | Yiwu, Zhejiang | Business service | 100.00 | Establishment | |
| Co., Ltd. | |||||||
| Yiwu China Commodities City Big Data Co., Ltd. | Yiwu, Zhejiang | 10,000.00 | Yiwu, Zhejiang | Software and Information Technology Service Industry | 100.00 | Establishment | |
| Yiwu Xinlian Technology Service Co., Ltd. | Yiwu, Zhejiang | 1,000.00 | Yiwu, Zhejiang | Professional technical service industry | 51.00 | Establishment | |
| Yiwu Shangcheng Gonglian Enterprise Management Co., Ltd. | Yiwu, Zhejiang | 20,000.00 | Yiwu, Zhejiang | Business service | 100.00 | Establishment | |
| Yiwu Shangbo Yuncang Enterprise Management Co., Ltd. | Yiwu, Zhejiang | 30,000.00 | Yiwu, Zhejiang | Business service | 100.00 | Establishment | |
| Yiwu China Commodities City Information Technology Co., Ltd. | Yiwu, Zhejiang | 5,000.00 | Yiwu, Zhejiang | IT | 100.00 | Establishment | |
| Yiwu China Commodities City Financial Holdings Co., Ltd. | Yiwu, Zhejiang | 400,000.00 | Yiwu, Zhejiang | Financial industry | 100.00 | Establishment | |
| Yiwu China Commodities City Logistics and Warehousing Co., Ltd. | Yiwu, Zhejiang | 10,000.00 | Yiwu, Zhejiang | Multimodal transport and transportation agency | 100.00 | Establishment | |
| Yiwu China Commodities City Exhibition Co., Ltd. | Yiwu, Zhejiang | 3,000.00 | Yiwu, Zhejiang | Business service | 98.00 | 2.00 | Establishment |
| Yiwu Yundailu Data Technology Co., Ltd. | Yiwu, Zhejiang | 50,000.00 | Yiwu, Zhejiang | Internet and related services | 100.00 | Establishment | |
| Zhejiang Huajie Investment and Development Co., Ltd. | Yiwu, Zhejiang | 50,000.00 | Yiwu, Zhejiang | Business service | 96.40 | Establishment+acquisition | |
| European Huajie Investment Development Co., Ltd. | Prague, Czech Republic | CZK1,580.00 | Prague, Czech Republic | Business service | 96.40 | Establishment+acquisition | |
| Zhejiang China Commodities City Group Commercial Factoring Co., | Yiwu, Zhejiang | 20,000.00 | Yiwu, Zhejiang | Financial industry | 60.00 | 40.00 | Establishment |
| Ltd. | |||||||
| Zhejiang Yiwugou E-commerce Co., Ltd. | Yiwu, Zhejiang | 10,000.00 | Yiwu, Zhejiang | IT | 51.00 | Establishment | |
| Yiwu Xingchen Enterprise Management Co., Ltd | Yiwu, Zhejiang | 15,000.00 | Yiwu, Zhejiang | Business service | 100.00 | Establishment | |
| Yiwu China Commodities City Advertising Co., Ld. | Yiwu, Zhejiang | 1,000.00 | Yiwu, Zhejiang | Advertising | 100.00 | Establishment | |
| Yiwu International Trade Comprehensive Service Co., Ltd. | Yiwu, Zhejiang | 10,000.00 | Yiwu, Zhejiang | Wholesale | 60.00 | Establishment | |
| Yiwu China Commodities City Credit Investigation Co., Ltd. | Yiwu, Zhejiang | 1,000.00 | Yiwu, Zhejiang | Service | 85.00 | Establishment | |
| Yiwu Aiximao Supply Chain Management Co., Ltd. | Yiwu, Zhejiang | 500.00 | Yiwu, Zhejiang | Service | 100.00 | Establishment | |
| Yiwu China Commodities City Internet Financial Information Service Co., Ltd. | Yiwu, Zhejiang | 1,000.00 | Yiwu, Zhejiang | Financial industry | 100.00 | Establishment+acquisition | |
| Yiwu China Commodity City RMB and Foreign Currency Exchange Co., Ltd. | Yiwu, Zhejiang | 1,000.00 | Yiwu, Zhejiang | Financial industry | 100.00 | Establishment | |
| Hangzhou Shangbo Nanxing Property Co., Ltd. | Hangzhou, Zhejiang | 5,000.00 | Hangzhou, Zhejiang | Real estate | 100.00 | Establishment | |
| Haicheng Company | Haicheng, Liaoning | 60,000.00 | Haicheng, Liaoning | Real estate | 95.00 | Establishment | |
| Ningxia Yiwu China Commodity City Supply Chain Management Co., Ltd. | Shizuishan, Ningxia | 2,000.00 | Shizuishan, Ningxia | Service | 100.00 | Establishment | |
| Yiwu China Commodities City (Hong Kong) | Hong Kong, China | HKD 1.00 | Hong Kong, China | Wholesale | 100.00 | Establishment |
| International Trade Co., Ltd. | |||||||
| Hong Kong Better Silk Road Co., Ltd. | Hong Kong, China | HKD 10800.00 | Hong Kong, China | Service | 100.00 | Establishment | |
| Huafrica (Kenya) Investment Development Co., Limited | Nairobi, Kenya | KES 3000.00 | Nairobi, Kenya | Service | 100.00 | Establishment | |
| BETTER SILK ROAD FZE | Dubai, UAE | AED 5040.00 | Dubai, UAE | Service | 100.00 | Establishment | |
| BETTER SILK ROAD RWANDA Ltd | Kigali, Rwanda | RWF 27000.00 | Kigali, Rwanda | Service | 100.00 | Establishment | |
| Yiwu Zheqing Trading Co., Ltd. | Yiwu, Zhejiang | 2,200.00 | Yiwu, Zhejiang | Wholesale | 100.00 | Establishment | |
| Mingzhe Technology Development Co., Ltd. | Tortola Island, British Virgin Islands | USD 0.0005 | Tortola Island, British Virgin Islands | Financial industry | 100.00 | Establishment | |
| Yiwu China Commodity City (Germany) Co., Ltd. | Frankfurt, Germany | EUR 100.00 | Frankfurt, Germany | Service | 100.00 | Establishment | |
| Yiwu China Commodities City (Spain) Co., Ltd. | Madrid, Spain | EUR 20.00 | Madrid, Spain | Service | 100.00 | Establishment | |
| Zhejiang Xunchi Digital Technology Co., Ltd. | Hangzhou, Zhejiang | 19,000.00 | Hangzhou, Zhejiang | IT | 100.00 | Acquisition | |
| Kuaijietong Payment Service Co., Ltd. | Hangzhou, Zhejiang | 18,000.00 | Hangzhou, Zhejiang | IT | 100.00 | Acquisition |
Explanation for the difference between the shareholding ratio and voting right ratio in asubsidiary:
Nil
Basis for holding half or less voting rights in but still controlling an investee, and holding morethan half 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 | 5,484,758.47 | - | 66,379,109.76 |
| Haicheng Company | 5 | -2,945,244.02 | - | -55,385,459.23 |
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). Main 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 | Total liabilities | Current assets | Non-current assets | Total assets | Current liabilities | Total liabilities | |
| Zhejiang Yiwugou E-commerce Co., Ltd. | 10,568.43 | 5,623.34 | 16,191.77 | 2,650.75 | 2,650.75 | 12,224.24 | 5,653.21 | 17,877.45 | 5,450.03 | 5,450.03 |
| Haicheng Company | 122,072.96 | 66,509.68 | 188,582.64 | 299,353.56 | 299,353.56 | 109,040.55 | 83,210.84 | 192,251.39 | 297,131.82 | 297,131.82 |
| Name of subsidiary | Amount in the current period | Amount in the prior corresponding 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. | 3,173.27 | 1,119.34 | 1,119.34 | 195.82 | 3,171.00 | 1,055.64 | 1,055.64 | 751.05 |
| Haicheng Company | 941.96 | -5,890.49 | -5,890.49 | -3,202.47 | 4,257.07 | -5,562.04 | -5,562.04 | -1,874.50 |
Other notes:
Nil
(4). Major restrictions on the use of the Group’s assets and repayment of the Group’sdebts:
□ Applicable √Not applicable
(5). Financial or other support provided to structured entities included in the scope ofconsolidated financial statements:
□ Applicable √Not applicable
Other notes:
□ Applicable √Not applicable
2. Transactions in which the owners' equity share of a subsidiary changes while stillcontrolling 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 ventures | ||||||
| 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 | Financial industry | 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 | |
| Associates | ||||||
| Yiwu Huishang Redbud Equity Investment Co., Ltd. (Note 6) | Yiwu, Zhejiang | Yiwu, Zhejiang | Commercial services | 10.42 | Equity method | |
| Zhejiang Chouzhou Financial Lease Co., Ltd. | Hangzhou, Zhejiang | Yiwu, Zhejiang | Financial industry | 26 | Equity method | |
| Yiwu Huishang Redbud Phase II Investment Partnership (limited partnership) [Note 7] | Yiwu, Zhejiang | Yiwu, Zhejiang | Lease and business service | 10.41 | Equity method | |
| Yiwu Hongyi Equity Investment Fund Partnership (limited partnership) | Yiwu, Zhejiang | Yiwu, Zhejiang | Financial industry | 49.98 | Equity method | |
| Pujiang Lvgu Property Co., Ltd. | Pujiang, Zhejiang | Pujiang, Zhejiang | Real estate | 49 | Equity method | |
| Yiwu China Commodities City Property Development Co., Ltd. | Yiwu, Zhejiang | Yiwu, Zhejiang | Real estate | 49 | Equity method | |
| Zhijie Yuangang | Yiwu, Zhejiang | Yiwu, Zhejiang | Technology promotion and application service industry | 27 | Equity method |
Explanation for the difference between the shareholding ratio and voting right ratio in a jointventure or associate:
Nil
Bases for holding less than 20% of the voting rights but having significant influence, or holding20% or more of the voting rights but not having significant influence:
Note 6: The Company held 10.42% (2023: 10.42%) of equity of Yiwu Huishang RedbudEquity Investment Co., Ltd. (hereinafter referred to as "Redbud Equity Investment"), butregarded it as an associated company of the Company. According to Redbud Investment’sarticles of association, it is engaged in investing and its important financial and operatingdecision-making activities are to pick and manage investment projects, which have been fullyentrusted to the Company’s joint venture Yiwu Huishang Redbud Capital Management Co., Ltd.(“Redbud Capital”). Redbud Capital picks and manages investment projects via its investmentdecision-making committee. Except for special investment matters, which are subject to theresolution of Redbud Investment’s board of directors, other important financial and operatingdecision-making activities are conducted by Redbud Capital on the behalf of RedbudInvestment. Therefore, the Company was able to exercise significant influence on RedbudInvestment in which the Company held 10.42% of total equity.
Note 7: The Company held 10.41% (2023: 10.41% ) equity of Yiwu Huishang RedbudPhase II Investment Partnership (Limited Partnership) (“Redbud Phase II”), but regarded it asan associated company of the Company. According to Redbud Phase II’s articles of association,it is engaged in investing and its important financial and operating decision-making activities areto pick and manage investment projects, which have been fully entrusted to the Company’s jointventure Redbud Capital. Redbud Capital picks and manages investment projects via itsinvestment decision-making committee. Except for special investment matters, which aresubject to the resolution of Redbud Phase II’s board of directors, other important financial andoperating decision-making activities are conducted by Redbud Capital on the behalf of RedbudPhase II. Therefore, the Company could exert significant influence on Redbud Phase II of whichit held 10.41% equity.
(2). Key financial information of important joint ventures
√Applicable □Not applicable
Unit: RMB10,000
| Closing balance/amount in the current period | Opening balance/amount in the previous period | |||||||
| Yiwu Shanglv | Yiwu Rongshang Property | Yiwu Chuangcheng Property | Guoshen Shangbo | Yiwu Shanglv | Yiwu Rongshang Property | Yiwu Chuangcheng Property | Guoshen Shangbo | |
| Current assets | 6,573.61 | 13,398.20 | 75,428.66 | 218,411.82 | 5,868.55 | 13,398.19 | 37,987.32 | 237,167.69 |
| Including: cash and cash equivalents | 5,413.08 | 49.17 | 37.61 | 10,860.63 | 4,831.90 | 49.30 | 95.43 | 18,717.68 |
| Non-current assets | 123,921.21 | - | 5,320.29 | 33.31 | 125,809.14 | - | 1.30 | 43.43 |
| Total assets | 130,494.82 | 13,398.20 | 80,748.95 | 218,445.13 | 131,677.69 | 13,398.19 | 37,988.62 | 237,211.12 |
| Current liabilities | 33,692.37 | 0.06 | 67,644.28 | 28,955.59 | 39,666.74 | 0.09 | 25,119.76 | 47,982.62 |
| Non-current liabilities | - | - | 1,333.17 | - | - | - | 1,333.18 | - |
| Total liabilities | 33,692.37 | 0.06 | 68,977.45 | 28,955.59 | 39,666.74 | 0.09 | 26,452.94 | 47,982.62 |
| Shareholders’ equity attributable to parent company | 96,802.45 | 13,398.14 | 11,771.50 | 189,489.54 | 92,010.95 | 13,398.10 | 11,535.68 | 189,228.50 |
| Share of net assets calculated based on shareholding ratio | 47,433.20 | 6,565.09 | 2,825.16 | 92,849.87 | 45,085.36 | 6,565.07 | 2,768.56 | 92,721.97 |
| Adjustments | -1,468.74 | - | - | - | -1,492.37 | - | - | - |
| --Unrealized profits of internal transactions | -1,468.74 | - | - | - | -1,492.37 | - | - | - |
| Book value of equity investment in joint ventures | 45,964.46 | 6,565.09 | 2,825.16 | 92,849.88 | 43,592.99 | 6,565.07 | 2,768.56 | 92,721.97 |
| Operating revenue | 13,002.45 | - | - | 11,596.00 | 12,250.84 | - | - | 973,498.72 |
| Financial expenses | 271.00 | 0.10 | 0.23 | -37.14 | 529.18 | -0.08 | 0.23 | -90.79 |
| Net profits | 4,791.51 | -0.10 | -126.64 | 774.37 | 4,168.51 | 0.08 | -2,057.65 | 175,429.06 |
| Total comprehensive income | 4,791.51 | -0.10 | -126.64 | 774.37 | 4,168.51 | 0.08 | -2,057.65 | 175,429.06 |
| Dividends received from joint ventures this year | - | - | - | - | - | - | - | - |
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 | Yiwu China Commodities City Property Development Co., Ltd. | Pujiang Lvgu | Zhijie Yuangang | Chouzhou Financial Lease | Hongyi Fund | Yiwu China Commodities City Property Development Co., Ltd. | Pujiang Lvgu | Zhijie Yuangang | |
| Current assets | 69,190.10 | 5,759.92 | 2,289,878.02 | 111,778.36 | 65,928.52 | 101,696.23 | 15,500.19 | 2,046,024.61 | 127,841.28 | 57,624.29 |
| Non-current assets | 2,008,299.99 | 137,620.92 | 49,253.99 | 2,904.30 | 3,434.30 | 1,917,528.55 | 170,802.46 | 46,906.23 | 6,373.08 | 3,134.10 |
| Total assets | 2,077,490.09 | 143,380.84 | 2,339,132.01 | 114,682.66 | 69,362.82 | 2,019,224.78 | 186,302.65 | 2,092,930.84 | 134,214.36 | 60,758.39 |
| Current liabilities | 1,263,746.63 | 13.96 | 1,401,761.70 | 33,532.60 | 31,565.35 | 1,209,345.22 | 2,275.47 | 1,239,064.78 | 59,238.51 | 20,449.28 |
| Non-current liabilities | 571,827.79 | - | 286,137.48 | 997.36 | - | 588,800.25 | - | 201,027.66 | 4,303.02 | - |
| Total liabilities | 1,835,574.42 | 13.96 | 1,687,899.18 | 34,529.96 | 31,565.35 | 1,798,145.47 | 2,275.47 | 1,440,092.44 | 63,541.53 | 20,449.28 |
| Shareholders’ equity attributable to parent company | 241,915.67 | 143,366.88 | 651,232.83 | 80,152.70 | 37,797.47 | 221,079.31 | 184,027.18 | 652,838.40 | 70,672.83 | 40,309.11 |
| Share of net assets calculated based on shareholding ratio | 62,898.07 | 71,640.43 | 311,545.35 | 39,274.82 | 10,205.24 | 57,480.62 | 91,976.78 | 312,067.18 | 34,629.69 | 10,883.38 |
| Adjustments | 0.01 | 7.18 | 177.25 | 321.32 | 2,424.26 | 15.26 | -1,493.41 | 177.26 | 334.48 | 2,314.82 |
| --Unrealized profits of internal transactions | 0.01 | 7.18 | 177.25 | 321.32 | 2,424.26 | 15.26 | -1,493.41 | 177.26 | 334.48 | 2,314.82 |
| Book value of equity investment in joint ventures | 62,898.08 | 71,647.61 | 311,722.60 | 39,596.14 | 12,629.50 | 57,495.88 | 90,483.37 | 312,244.44 | 34,964.17 | 13,198.20 |
| Operating revenue | 36,795.59 | - | 20,104.29 | 39,338.44 | 64,164.40 | 34,574.83 | - | 185,257.95 | 1.38 | 9,402.91 |
| Net profits | 20,777.69 | 271.23 | -1,594.92 | 9,453.00 | -2,518.95 | 20,066.83 | 720.44 | 26,262.14 | -1,831.78 | -2,654.82 |
| Total comprehensive income | 20,777.69 | 271.23 | -1,594.92 | 9,453.00 | -2,518.95 | 20,066.83 | 720.44 | 26,262.14 | -1,831.78 | -2,654.82 |
| Dividend on associates received in the current year | - | 3,475.00 | - | - | - | - | - | - | - | - |
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 | 29,818,071.75 | 30,629,677.74 |
| Total amounts of the following items calculated based on shareholding ratio | ||
| --Net profits | -811,605.27 | -730,256.49 |
| --Other comprehensive income | - | - |
| --Total comprehensive income | -811,605.27 | -730,256.49 |
| Associates: | ||
| Total book value of investments | 442,001,220.71 | 451,803,256.03 |
| Total amounts of the following items calculated based on shareholding ratio | ||
| --Net profits | -27,478,238.34 | -39,298,606.17 |
| --Other comprehensive income | 217,103.05 | - |
| --Total comprehensive income | -27,261,135.29 | -39,298,606.17 |
Other statementsNil
(5). Explanation of significant limitations on the ability of joint ventures or associatesto transfer funds to the Company
□ Applicable √Not applicable
(6). Excess losses incurred by joint ventures or associates
□ Applicable √Not applicable
(7). Unconfirmed commitments related to joint venture investments
□ Applicable √Not applicable
(8). Contingent liabilities relating to 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 scope of consolidated financial
statementsNotes on structured entities not included in the consolidated financial statements:
□ Applicable √Not applicable
6. Other
□ Applicable √Not applicable
XI. Government grants
1、 Government subsidies recognized by accounts receivable at the end of the reportingperiod
□ Applicable √Not applicable
Reasons for not receiving the expected amount of government subsidies at the expected timepoint
□ Applicable √Not applicable
2、 Liabilities items involving government subsidies
√Applicable □Not applicable
Unit: RMB
| Financial statement items | Opening balance | Transfer to other income in this period | Closing balance | Related to assets/income |
| Deferred income | 160,432,656.23 | 7,589,275.14 | 152,843,381.09 | Related to assets |
| Total | 160,432,656.23 | 7,589,275.14 | 152,843,381.09 | / |
3、 Government grant included in profit or loss for the current period
√Applicable □Not applicable
Unit: RMB
| Type | Amount in the current period | Amount in the prior corresponding period |
| Related to assets | 7,589,275.14 | 710,736.84 |
| Income-related | 3,589,669.67 | 13,920,799.92 |
| Total | 11,178,944.81 | 14,631,536.76 |
Other notes:
Nil
XII. Risks associated with financial instruments
1. Risk of financial instruments
√Applicable □Not applicable
The risks associated with financial instruments faced by the Group in regular activitiesmainly include credit risk, liquidity risk and market risk. The risk management policies of theGroup for these risks are outlined below.
The Group diversifies its investment and business portfolio appropriately to diversifyfinancial instrument risks, and reduces risks concentrated in any single industry, specific region,or specific counterparty by formulating corresponding risk management policies.
Credit risk
The Group only deals with the recognized third parties with good reputation. According toits policy, the Group needs to carry out credit review on all clients who require to deal with theGroup on credit. In addition, the Group keeps monitoring the balance of accounts receivable toensure it will not face any material bad debt risk. For the transactions settled other than in thefunctional currency of related business entities, unless with specific approval of the Group’scredit control department, the Group will not provide the conditions for dealing on credit.
As the counterparties to the transactions of cash are banks with good reputation and highcredit ratings, the credit risk of those financial instruments is relatively low.
Other financial assets of the Group include accounts receivable, other receivables, othercurrent assets, debt investments, long-term receivables, and other non-current assets. Thecredit risk of these financial assets arises from counterparty defaults, and the maximum riskexposure is equal to the book value of these instruments.
The Group also faces credit risks due to providing financial guarantees, as disclosed inNote XVI. 2.
Due to the Group only engaging in transactions with recognized and reputable third parties,no collateral is required. Credit risk is centrally managed based on customers/counterparties,geographic regions, and industries. As the clients from which the Group’s accounts receivableare receivable are scattered in different sectors and industries, there’s no material credit riskconcentrated within the Group. The Group does not have any collaterals or other creditenhancements for the balance of its accounts receivable.
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. The maincriteria for the Group to judge a significant increase in credit risk are significant changes in oneor more of the following indicators: the operating environment of the debtor, internal andexternal credit ratings, and significant adverse changes in actual or expected operating results.
Definition of the assets whose credit has been impaired
The main criterion for determining credit impairment in the Group is that if internal orexternal information shows that the contract amount may not be fully recovered beforeconsidering any credit enhancement held.
The credit impairment of financial assets may be caused by multiple events together andmay not necessarily be caused by an individually identifiable event.
Credit risk exposure
Disclose the credit risk exposure of the book balance of financial assets according to thecredit risk level, and disclose the expected credit losses for the next 12 months and the creditlosses for the entire duration of the asset separately.
The Group directly accounts for accounts receivable using simplified methods and providesimpairment provisions for expected credit losses of other accounts receivable in the next 12months using general methods. The quantitative data of the Group's credit risk exposure arisingfrom accounts receivable and other accounts receivable are detailed in Note VII. 5 and Note VII.9.
Liquidity risk
The Group's goal is to use various financing methods to maintain a balance between thesustainability and flexibility of financing. The Group finances its operations through fundsgenerated from operations and borrowings.
The following table summarizes theanalysis on the due day of financial liabilities based on
non-discounted contractual cash flows:
June 30, 2024
| Item | Within 1 year | 1-2 years | 2-3 years | Over 3 years | Total |
| Short-term borrowings | 1,351,119,861.12 | - | - | - | 1,351,119,861.12 |
| Accounts payable | 692,706,560.58 | - | - | - | 692,706,560.58 |
| Other payables | 1,225,291,430.90 | - | - | 455,671,033.57 | 1,680,962,464.47 |
| Other current liabilities | 4,213,751,012.13 | - | - | - | 4,213,751,012.13 |
| Non-current liabilities due within one year | 1,821,483,163.45 | - | - | - | 1,821,483,163.45 |
| Long-term borrowings | 27,089,891.55 | 162,231,925.36 | 94,080,425.36 | 878,258,924.68 | 1,161,661,166.95 |
| Lease liabilities | - | 31,773,627.93 | 30,411,583.60 | 184,519,103.27 | 246,704,314.80 |
| Bonds payable | - | 2,059,170,000.00 | - | - | 2,059,170,000.00 |
| Total | 9,331,441,919.73 | 2,253,175,553.29 | 124,492,008.95 | 1,518,449,061.52 | 13,227,558,543.50 |
2023
| Item | Within 1 year | 1-2 years | 2-3 years | Over 3 years | Total |
| Short-term borrowings | 1,633,387,388.91 | - | - | - | 1,633,387,388.91 |
| Accounts payable | 1,390,254,849.27 | - | - | - | 1,390,254,849.27 |
| Other payables | 1,393,726,397.83 | - | - | 468,994,325.17 | 1,862,720,723.00 |
| Other current liabilities | 3,420,706,329.61 | - | - | - | 3,420,706,329.61 |
| Non-current liabilities due within one year | 193,144,703.38 | - | - | - | 193,144,703.38 |
| Long-term borrowings | 20,441,113.41 | 48,482,098.41 | 55,102,649.41 | 798,322,481.14 | 922,348,342.37 |
| Lease liabilities | - | 32,905,926.59 | 32,828,436.37 | 194,173,777.30 | 259,908,140.26 |
| Bonds payable | - | 3,608,950,000.00 | - | - | 3,608,950,000.00 |
| Total | 8,051,660,782.41 | 3,690,338,025.00 | 87,931,085.78 | 1,461,490,583.61 | 13,291,420,476.80 |
Market risks
Interest rate risk
The risk of changes in market interest rates faced by the Group is mainly related to theGroup's long-term liabilities at floating interest rates. The Group manages interest rate riskby closely monitoring changes in interest rates and regularly reviewing borrowings.
As of Jun 30, 2024, the Company had long-term borrowings of RMB 378 million amongits long-term liabilities, the interest rates of which were adjusted on an annual basis based
on the benchmark loan rate on the anniversary dates. Therefore, the management believethat its risk of market interest rate change 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 their bookkeepingcurrency. Considering the Group’s short time of inventory and timely collection of accountsreceivable, the management believe 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 ofequity securities decreasing due to the changes in stock indices and value of individualsecurities. As of Jun 30, 2024, the Group was exposed to the price risk of equity instrumentinvestments arising from the individual equity instrument investments classified as thefinancial instruments that are measured at fair value through profit or loss (Note VII. 2) orthrough other comprehensive income (Note VII. 18). The Group manages risks by holdinginvestment portfolios with different risks.
The following table illustrates the sensitivity of the Group's net profit and loss and othercomprehensive income net after tax to every 10% change in the fair value of equityinstrument investments based on the book value at the balance sheet date, assuming thatall other variables remain constant.
June 30, 2024
| 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% | ||||
| 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 | 555,643,105.79 | - | 41,673,232.93 | 41,673,232.93 |
| Equity instrument investments measured at fair value through profit or loss | 11,640,817.50 | 873,061.31 | - | 873,061.31 |
2023
| 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% | ||||
| Investment in the equity instruments that are measured by fair value and of which the changes in fair value | 556,897,379.17 | - | 41,767,303.44 | 41,767,303.44 |
| are recognized in other comprehensive income | ||||
| Equity instrument investments measured at fair value through profit or loss | 15,130,895.00 | 1,134,817.13 | - | 1,134,817.13 |
Capital management
The main objective of the Group in capital management is to ensure the Group’s ability tocontinue operations and maintain a healthy capital ratio to support its business developmentand maximize the values for shareholders.
The Group manages and adjusts its capital structure based on the changes in theeconomic situation and the risk characteristics of related assets. To maintain or adjust thecapital structure, the Group may adjust the distribution of profits to shareholders, return capitalcontribution to shareholders or issue new shares. The Group is not subject to externalmandatory capital requirements. There were no changes in the capital management goals,policies, or procedures from 2023 to 2024.
The Group adopts an asset-liability ratio to manage capital, which refers to the ratio of totalliabilities to total assets. The Group's policy will maintain a relatively stable asset-liability ratio.Total liabilities include current liabilities and non-current liabilities. The asset-liability ratio of theGroup on the balance sheet date is as follows:
| June 30, 2024 | 2023 | ||
| Total liabilities | 17,924,828,768.48 | 18,515,009,702.36 | |
| Total assets | 36,021,693,283.42 | 36,218,947,223.63 | |
| Asset-liability ratio | 49.76% | 51.12% |
2. Hedging
(1) The Company conducts hedging business for risk management
□ Applicable √Not applicable
Other statements
□ Applicable √Not applicable
(2) The Company conducts eligible hedging business and applies hedging accounting
□ Applicable √Not applicable
Other statements
□ Applicable √Not applicable
(3) The Company conducts hedging business for risk management and expects toachieve risk management goals, but has not applied hedging accounting
□ Applicable √Not applicable
Other statements
□ Applicable √Not applicable
3. Financial asset transfer
(1) Classification of transfer methods
□ Applicable √Not applicable
(2) Financial assets derecognized due to transfer
□ Applicable √Not applicable
(3) Transferred financial assets in which the Group continued to be involved
□ Applicable √Not applicable
Other statements
□ Applicable √Not applicable
XIII. Disclosure of fair value
1. Closing fair value of assets and liabilities measured at 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 | ||||
| (I) Held-for-trading financial assets | 11,640,817.50 | - | - | 11,640,817.50 |
| 1. Financial assets that are measured at fair value and whose changes are included in the current profit and loss | 11,640,817.50 | - | - | 11,640,817.50 |
| (2) Investment in equity instruments | 11,640,817.50 | - | - | 11,640,817.50 |
| (III) Other equity instrument investments | 555,643,105.79 | - | - | 555,643,105.79 |
| (vi) Other non-current financial assets | - | 1,492,349,593.33 | 1,492,349,593.33 | |
| Total assets continuously measured at fair value | 567,283,923.29 | - | 1,492,349,593.33 | 2,059,633,516.62 |
2. Basis for determining the market prices of the items continuously andnon-continuously measured at Level 1 fair value
√Applicable □Not applicable
The Group's continuous first level fair value measurement project is equity instruments ofthe Listed Company, and fair value is determined based on market quotations.
3. Valuation techniques and qualitative and quantitative information of important
parameters for the items continuously and non-continuously measured at Level 2
fair value
□ Applicable √Not applicable
4. Valuation techniques and qualitative and quantitative information of important
parameters for the items continuously and non-continuously measured at Level 3
fair value
√Applicable □Not applicable
The Group's finance department, headed by the General manager of the Group FinanceCenter, is responsible for developing policies and procedures for the fair value measurement offinancial instruments. The General Manager of the Group Finance Center reports directly to theGroup Finance Officer, who reports to the Audit Committee. On each balance sheet date, thefinancial department analyzes the changes in the value of financial instruments and determinesthe main input values applicable to the valuation. The valuation shall be reviewed and approved
by the Group's Financial Director. For the purpose of annual financial statements, the valuationprocess and results are discussed twice a year with the audit committee.Non-listed equity instrument investments are estimated at fair value using the marketmethod based on unobservable market prices or interest rate assumptions, or fair value isdetermined using the asset-based method for non-listed equity instruments as of the balancesheet date. The Group needs to determine comparable listed companies based on industry,scale, leverage, and strategy, and calculate appropriate market multipliers, such as price toearnings ratios, for each identified comparable listed company. Adjust based on specific factsand circumstances of the enterprise, taking into account factors such as liquidity and sizedifferences with comparable listed companies. The Group believes that the fair value and itschanges estimated using valuation techniques are reasonable and the most appropriate valueon the balance sheet date. For the fair value of non-listed equity instrument investments, theGroup estimates the potential impact of using other reasonable and possible assumptions asinputs to the valuation model.
5. Adjustment information between the opening book value and closing book value,and the sensitivity analysis of unobservable parameters for items continuouslymeasured at Level 3 fair value
□ Applicable √Not applicable
6. For items continuously measured at fair value, if there is conversion betweendifferent levels in the current period, the reasons for the conversion and the policyfor 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 at fair value
□ Applicable √Not applicable
9. Other
□ Applicable √Not applicable
XIV. Related parties and related 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 (%) |
| Yiwu China Commodities City Holdings Limited | Yiwu, Zhejiang | Asset management | 100,000 | 55.40 | 55.40 |
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
Please refer to Note VI. 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
Please refer to Note X. 3 Equity in Joint Ventures or Associates
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 whichresulted in an 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 |
| Yiwu China Commodities City Creative Design and Development Services Co., Ltd. | Joint venture |
| Yiwu Guoshen Shangbo Property Co., Ltd. | Joint venture |
| Yiwu Rongshang Property Co., Ltd. | 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 |
| Yiwu China Commodities City Property Development Co., Ltd. | Associate |
| Hangzhou MicroAnts Co., Ltd. | Associate |
| Yiwu Huishang Redbud Equity Investment Co., Ltd. | Associate |
| Zhijie Yuangang | Associate |
| Yiwu Heimahui Enterprise Service Co., Ltd. | Associate |
| Yiwu Shangfu Chuangzhi Investment Center (limited partnership) | Associate |
Other statements
□ Applicable √Not applicable
4. Other related parties
√Applicable □Not applicable
| Name of other related party | Relationship with the Company |
| Yiwu State-owned Capital Operation Co., Ltd. | Parent company of controlling shareholder of the Company’s largest shareholder |
| Yiwu Market Development Group Co., Ltd. | Controlling shareholder of the Company’s largest shareholder |
| Yiwu Security Service Co., Ltd. | Subsidiary of controlling shareholder of the Company’s largest shareholder |
| Yiwu Agriculture Development Co., Ltd. | Subsidiary of controlling shareholder of the Company’s largest shareholder |
| Yourworld International Conference Center Company of Yiwu Market Development Group Co., Ltd. | Branch of Controlling shareholder of the Company’s largest shareholder |
| Yiwu Market Development Service Center Co., Ltd. | Subsidiary of controlling shareholder of the Company’s largest shareholder |
| Yiwu Shangbo Yungu Enterprise Management Co., Ltd. | Subsidiary of the Company’s largest shareholder |
| Yiwu China Commodities City Property Service Co., Ltd. | Subsidiary of the Company’s largest shareholder |
| Yisha Chengdu International Trade City Co., Ltd. | Minority shareholder of major subsidiaries |
Other statementsNil
5. Related transactions
(1). Related transactions for purchasing and selling commodities, providing and
receiving labor servicesPurchasing goods/accepting service
√Applicable □Not applicable
Unit: RMB
| Related party | Contents of related-party transaction | Amount in the current period | Approved transaction amount (if applicable) | Whether the transaction limit was exceeded (if applicable) | Amount in the prior corresponding period |
| Yiwu China Commodities City Property Service Co., Ltd. | Property service fee and greening maintenance fee | 110,312,803.36 | Not applicable | Not applicable | 98,212,858.68 |
| Yiwu Security Service Co., Ltd. | Security service fee | 9,059,886.19 | Not applicable | Not applicable | 10,038,757.30 |
| Yiwu Shangbo Yungu Enterprise Management Co., Ltd. | Construction fee | 5,203,100.00 | Not applicable | Not applicable | 4,913,807.45 |
| Zhejiang Yemai Data Technology Co., Ltd. | Procurement and system development fees | 1,167,985.85 | Not applicable | Not applicable | 879,922.62 |
| Yiwu China Commodities City Creative Design and Development Services Co., Ltd. | Design fee | 651,089.11 | Not applicable | Not applicable | 384,466.02 |
| Hangzhou MicroAnts Co., Ltd. | Information service fee | 413,850.00 | Not applicable | Not applicable | 86,451.00 |
| Yourworld International Conference Center Company of Yiwu Market Development Group Co., Ltd. | Procurement and meeting affair expenses | 34,982.00 | Not applicable | Not applicable | 233,917.62 |
Selling goods/rendering service
√Applicable □Not applicable
Unit: RMB
| Related party | Contents of related-party transaction | Amount in the current period | Amount in the prior corresponding period |
| Yiwu China Commodities City Property Service Co., Ltd. | Product sales and system development | 6,178,159.43 | 1,787,078.02 |
| Zhijie Yuangang | Warehousing cost | 978,113.21 | - |
| Yiwu Heimahui Enterprise Service Co., Ltd. | Information service fee | 345,800.00 | - |
| Yiwu Market Development Group Co., Ltd. | Software service fee | 292,500.00 | - |
| Yourworld International Conference Center Company of Yiwu Market Development Group Co., Ltd. | Product sales and washing fees | - | 410,332.78 |
| Yiwu Jinyue Shangbo Real Estate Co., Ltd | Advertising production costs | - | 97,924.53 |
| Yiwu Security Service Co., Ltd. | Meal expenses | - | 57,390.00 |
| Zhejiang YXE Supply Chain Management Co., Ltd. | Payment for goods | - | 36,196.94 |
| Yiwu Shangbo Yungu Enterprise Management Co., Ltd. | Advertising production costs | - | 16,677.36 |
| Yiwu Hongtu Shangbo Real Estate Co., Ltd | Advertising production costs | - | 14,433.96 |
| Yiwu Huishang Micro-finance Co., Ltd. | Payment for goods | - | 10,996.30 |
Notes on related-party transactions of purchasing and selling goods and rendering andaccepting service
□ 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 |
| Yiwu Market Development Group Co., Ltd. | The Company | Entrustment of other assets | Feb 1, 2020 | Jan 31, 2025 | Negotiated price | 1,220,016.70 |
Notes on entrustment/contracting from related parties
√Applicable □Not applicable
According to the management contract signed between the Company and Yiwu MarketDevelopment Group Co., Ltd. for the Yourworld International Conference Center, the Companyis entrusted to manage the Yourworld International Conference Center Hotel located at No. 100Xingfuhu Road, Yiwu City. The hotel management fee charged during this reporting period wasRMB 1,220,016.70 (January-June 2023: RMB 1,973,291.12).
Entrustment/contracting from the Company:
□ Applicable √Not applicable
Notes on related-party management/contracting
□ Applicable √Not applicable
(3). Related leasing
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 |
| Yiwu Shangbo Yungu Enterprise Management Co., Ltd. | Office space | 485,524.71 | 292,115.22 |
| Yiwu China Commodities City Property Development Co., Ltd. | Office space | 367,373.40 | 494,462.28 |
| Yiwu Market Development Service Center Co., Ltd. | Parking lot | 300,962.77 | 320,811.73 |
| Yiwu China Commodities City Property Service Co., Ltd. | Office space | 234,964.68 | 97,139.70 |
| Yiwu Shanglv | Warehouse and parking lot | 229,357.80 | 917,431.19 |
| Yiwu Huishang Redbud Capital Management Co., Ltd. | Office space | 143,977.85 | 136,139.73 |
| Yiwu Meipinshu Supply Chain Management Co., Ltd. | Office space | 107,716.98 | 174,028.87 |
| Yiwu Digital Port Technology Co., Ltd. | Office space | 106,579.08 | 118,715.50 |
| Yiwu Huishang Micro-finance Co., Ltd. | Auxiliary buildings | 78,360.00 | 81,909.41 |
| Zhijie Yuangang | Office space | 72,672.18 | 74,028.00 |
| Hangzhou MicroAnts Co., Ltd. | Office space | 29,524.76 | 81,183.79 |
The Company as the lessee
√Applicable □Not applicable
Unit: RMB
| lessor name | Type of leased asset | Simplified treatment of rental expenses for short-term leases and leases of low-value assets (if applicable) | Variable lease payments not included in the measurement of the lease liability (if applicable) | Rent paid | Interest expense on lease liability assumed | Increased right-of-use assets | |||||
| Amount in the current period | Amount in the prior corresponding period | Amount in the current period | Amount in the prior corresponding period | Amount in the current period | Amount in the prior corresponding period | Amount in the current period | Amount in the prior corresponding period | Amount in the current period | Amount in the prior corresponding period | ||
| Yiwu China Commodities City Holdings Limited | Warehouses | 7,512,968.82 | 7,512,968.82 | - | - | - | - | - | - | ||
Notes on related-party lease
√Applicable □Not applicable
The Group rent office spaces from above related parties at market prices
(4). Related 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 | 26,591,731.09 | 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, 2024,Yiwu Shanglv actually borrowed RMB 54.2688 million ( December 31, 2023: RMB 93.3773million ) from banks. According to the guarantee contract, the Group assumed liability for RMB
26.5917 million (December 31, 2023: RMB 45.7549 million). Yiwu State-owned CapitalOperation Co., Ltd. provided a counter-guarantee
(5). Related-party fund lending
√Applicable □Not applicable
Unit: RMB
| Related party | Amount | Starting date | Maturity date | Description of |
| Borrowings | ||||
| Chengzhen Property | 23,996,981.25 | Jan 18, 2022 | In 2022, the Group transferred a total of RMB 23,996,981.25 from Chengzhen Property, according to the shareholding ratio, at the annual interest rate of 0%. As of June 30, 2024, RMB 326,400.00 has been transferred back, and the remaining fund repayment date would be determined based on the funding needs of Chengzhen Property projects. | |
| Yiwu Guoshen Shangbo Property Co., Ltd. | 230,600,000.00 | Dec 31, 2022 | The Group allocated a total of RMB 230,600,000.00 of surplus funds from Guoshen Shangbo in 2022. The allocations were based on the share holding rate and the annual interest rates were 0%. The Group allocated a total of RMB 489,988,200.00 of surplus funds from Guoshen Shangbo in 2023. The repayment date would be determined according to the funding needs of Guoshen Shangbo projects. | |
| Yiwu Guoshen Shangbo Property Co., Ltd. | 294,000,000.00 | Jun 29, 2023 | ||
| Yiwu Guoshen Shangbo Property Co., Ltd. | 98,000,000.00 | Oct 30, 2023 | ||
| Yiwu Guoshen Shangbo Property Co., Ltd. | 97,988,200.00 | Nov 1, 2023 | ||
| Yiwu Rongshang Property Co., Ltd. | 64,418,683.00 | Jun 30, 2022 | The Company received a pre-dividend of RMB 64,418,683.00 from Rongshang Property in 2022, and the specific date of repayment of funds would be determined according to the distribution of dividend resolutions. | |
| Huishang Zijing | 4,500,000.00 | Dec 31, 2021 | The Company received a pre-dividend of RMB 4,500,000.00 from Huishang Redbud in 2021, a pre-dividend of RMB12,000,000.00 from Huishang Redbud in 2022, and a pre-dividend of RMB 2,250,000.00 from Huishang Redbud in 2022. The specific date of return of funds would be determined according to the distribution of dividend resolutions. | |
| Huishang Zijing | 12,000,000.00 | Dec 31, 2022 | ||
| Huishang Zijing | 2,250,000.00 | Dec 29, 2023 |
| Related party | Amount | Starting date | Maturity date | Description of |
| Lending to | ||||
| JEBEL ALI FREE ZONE TRADER MARKET DEVELOPMENT AND OPERATION FZCO | 63,465,484.42 | Mar 9, 2020 | In 2020, the Group provided JEBEL ALI FREE ZONE TRADER MARKET DEVELOPMENT AND OPERATION FZCO with 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 41,772,885.00, all at an annual interest rate of 6-month average EIBOR plus 5%. The repayment term of the financial assistance would be determined based on the progress of the project. | |
| JEBEL ALI FREE ZONE TRADER MARKET DEVELOPMENT AND OPERATION FZCO | 109,636,517.09 | Mar 31, 2021 | ||
| JEBEL ALI FREE ZONE TRADER MARKET DEVELOPMENT AND OPERATION FZCO | 41,772,885.00 | May 12, 2022 | ||
(6). Asset transfer and debt restructuring of related parties
□ Applicable √Not applicable
(7). Compensation for key officers
√Applicable □Not applicable
Unit: RMB10,000
| Item | Amount in the current period | Amount in the prior corresponding period |
| Remunerations of key officers | 1,231.90 | 1,107.37 |
(8). Other related transactions
√Applicable □Not applicable
Related party entrusted loan
Unit: RMB
| Unit | June 30, 2024 | 2023 |
| Yisha Chengdu International Trade City Co., Ltd. | 48,000,000.00 | 48,000,000.00 |
After deliberation and approval at the fifth meeting of the ninth Board of Directors held bythe Group on December 15, 2022, Yiwugou, an indirectly controlled subsidiary of the Group,
provided an entrusted loan of RMB 48 million to Yisha Chengdu International Trade City Co.,Ltd., a minority shareholder of Yiwugou, in the form of monetary funds through Yiwu Branch ofAgricultural Bank of China Co., Ltd., with a term of 2 years and an annual interest rate of 5.5%.
6. Unsettled items such as accounts receivable and related parties payable
(1). Receivable items
√Applicable □Not applicable
Unit: RMB
| Item | Related party | Closing balance | Opening balance | ||
| Book balance | Bad debt provision | Book balance | Bad debt provision | ||
| Accounts receivable | Yiwu Shanglv Investment Development Co., Ltd. | 1,921,620.36 | 207.17 | 7,824.20 | 149.10 |
| Accounts receivable | Yourworld International Conference Center Company of Yiwu Market Development Group Co., Ltd. | 617,710.49 | 66.60 | 535,559.20 | 10,205.81 |
| Accounts receivable | Yiwu Meipinshu Supply Chain Management Co., Ltd. | 118,567.10 | 12.78 | - | - |
| Accounts receivable | Zhejiang YXE Supply Chain Management Co., Ltd. | 175.20 | 0.02 | - | - |
| Accounts receivable | Yiwu China Commodities City Property Service Co., Ltd. | - | - | 711,617.24 | 13,307.24 |
| Accounts receivable | Yiwu Market Development Group Co., Ltd. | - | - | 292,500.00 | 5,573.98 |
| Accounts receivable | Yiwu China Commodities City Property Development Co., Ltd. | - | - | 999.00 | 19.04 |
| Total | 2,658,073.15 | 286.57 | 1,548,499.64 | 29,255.17 | |
| Other receivables | Yiwu Market Development Group Co., Ltd. | 340,691.60 | - | 440,168.00 | - |
| Other receivables | Yiwu China Commodities City Property Service Co., Ltd. | 231,250.00 | - | 132,400.00 | - |
| Other receivables | Yiwu Huishang Redbud Capital Management Co., Ltd. | 1,912.00 | - | - | - |
| Other receivables | Zhejiang Xingfuhu Sports Development Co., Ltd. | 533.40 | - | 148.30 | - |
| Other receivables | Zhijie Yuangang | 214.40 | - | - | |
| Other receivables | Yiwu Market Development Service Center Co., Ltd. | - | - | 42,393.12 | - |
| Other receivables | Hangzhou MicroAnts Co., Ltd. | - | - | 342.58 | - |
| Total | 574,601.40 | - | 615,452.00 | - | |
| Long-term receivables | Yiwu Shanglv | 31,850,000.00 | - | 31,850,000.00 | - |
| Long-term receivables | JEBEL ALI FREE ZONE TRADER MARKET DEVELOPMENT AND OPERATION FZCO | 252,848,048.35 | - | 238,905,772.12 | - |
| Total | 284,698,048.35 | - | 270,755,772.12 | - | |
(2). Payable items
√Applicable □Not applicable
Unit: RMB
| Item | Related party | Closing book balance | Opening book balance |
| Accounts payable | Yiwu China Commodities City Property Service Co., Ltd. | 1,819,306.37 | 5,606,633.72 |
| Accounts payable | Yiwu Digital Port Technology Co., Ltd. | 1,692,174.34 | 1,692,174.34 |
| Accounts payable | Zhejiang Yemai Data Technology Co., Ltd. | 455,475.28 | 629,311.13 |
| Accounts payable | Yiwu Shangbo Yungu Enterprise Management Co., Ltd. | - | 3,592,709.55 |
| Accounts payable | Yiwu Agriculture Development Co., Ltd. | - | 402,739.20 |
| Total | 3,966,955.99 | 11,923,567.94 | |
| Advance receipts | Zhijie Yuangang | 699,668.24 | 274,063.34 |
| Advance receipts | Yiwu Shanglv Investment Development Co., Ltd. | 420,489.29 | 649,847.09 |
| Advance receipts | Yiwu China Commodities City Property Development Co., Ltd. | 329,641.51 | 824,103.79 |
| Advance receipts | Yiwu Meipinshu Supply Chain Management Co., Ltd. | 55,363.39 | 209,100.37 |
| Advance receipts | Yiwu Digital Port Technology Co., Ltd. | 54,843.54 | 156,951.99 |
| Advance receipts | Yiwu China Commodities City Property Service Co., Ltd. | - | 932,547.16 |
| Advance receipts | Yiwu Shangbo Yungu Enterprise Management Co., Ltd. | - | 584,230.37 |
| Advance receipts | Yiwu Market Development Group Co., Ltd. | - | 403,301.89 |
| Advance receipts | Yiwu Huishang Redbud Capital Management Co., Ltd. | - | 90,759.83 |
| Total | 1,560,005.97 | 4,124,905.83 | |
| Contract liabilities | Yiwu China Commodities City Property Service Co., Ltd. | 129,540.17 | 139,919.81 |
| Contract liabilities | Yiwu Digital Port Technology Co., Ltd. | 49,636.81 | 45,657.30 |
| Contract liabilities | Yiwu Huishang Micro-finance Co., Ltd. | 34,591.20 | 11,792.46 |
| Contract liabilities | Yiwu Shangbo Yungu Enterprise Management Co., Ltd. | - | 4,880.58 |
| Total | 213,768.18 | 202,250.15 | |
| Other payables | Yiwu Guoshen Shangbo Property Co., Ltd. | 720,588,200.00 | 720,588,200.00 |
| Other payables | Yiwu Rongshang Property Co., Ltd. | 64,418,683.00 | 64,418,683.00 |
| Other payables | Yiwu Chengzhen Property Co., Ltd. | 23,670,581.25 | 23,996,981.25 |
| Other payables | Yiwu Huishang Redbud Equity Investment Co., Ltd. | 18,750,000.00 | 18,750,000.00 |
| Other payables | Yiwu China Commodities City Holdings Limited | 2,000,000.00 | - |
| Other payables | Zhijie Yuangang | 472,800.00 | 322,800.00 |
| Other payables | Yiwu China Commodities City Property Development Co., Ltd. | 240,000.00 | 240,000.00 |
| Other payables | Yiwu Shangbo Yungu Enterprise Management Co., Ltd. | 200,000.00 | 200,000.00 |
| Other payables | Yourworld International Conference Center Company of Yiwu Market Development Group Co., Ltd. | 150,043.37 | 96,522.47 |
| Other payables | Yiwu Heimahui Enterprise Service Co., Ltd. | 100,000.00 | 100,000.00 |
| Other payables | Yiwu Meipinshu Supply Chain Management Co., Ltd. | 88,050.00 | 57,000.00 |
| Other payables | Yiwu Digital Port Technology Co., Ltd. | 32,000.00 | 25,000.00 |
| Other payables | Yiwu Huishang Redbud Phase II Investment Partnership (Limited Partnership) | - | 5,000,000.00 |
| Other payables | Zhejiang Yemai Data Technology Co., Ltd. | - | 70,430.19 |
| Other payables | Hangzhou MicroAnts Co., Ltd. | - | 26,000.00 |
| Other payables | Yiwu China Commodities City Property Service Co., Ltd. | - | 5,062.00 |
| Other payables | Yiwu China Commodities City Trading Co., Ld. | - | 2,500.00 |
| Total | 830,710,357.62 | 833,899,178.91 | |
(3). Other projects
√Applicable □Not applicable
Unit: RMB
| Item | Related party | Closing book balance | Opening book balance |
| Debt investments | Yisha Chengdu International Trade City Co., Ltd. | 48,066,000.00 | 48,073,333.34 |
7. Related-party commitments
□ Applicable √Not applicable
8. Other
□ Applicable √Not applicable
XV. Share-based payment
1. Various equity instruments
√Applicable □Not applicable
Quantity unit: share Amount unit: RMB
| Grant object category | Grant in this period | Unlocked in this period | Expired in this period | |||
| Quantity | Amount | Quantity | Amount | Quantity | Amount | |
| Management personnel | - | - | 12,249,600.00 | 36,013,824.00 | - | - |
| R&D personnel | - | - | 165,000.00 | 485,100.00 | - | - |
| Total | - | - | 12,414,600.00 | 36,498,924.00 | - | - |
Stock options or other equity instruments issued to the public as of the end of the period
√Applicable □Not applicable
| Grant object category | Other equity instruments issued to the public as of the end of the period | |
| The range of exercise price | Remaining term of the contract | |
| Management and R&D personnel | 2.94/2.39 | 60 months from the date of grant |
Other statementsNil
2. Share-based payments settled in equity
√Applicable □Not applicable
Unit: RMB
| Method for determining the fair value of equity | Market price on grant day |
| instruments on the grant date | |
| Important parameters of fair value of equity instruments on 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 annual assessment on the Company’s financial performance indicators and personal performance indicators. |
| Reason for the significant difference between the estimates in the current period and in the previous period | Nil |
| Cumulative amount of equity-settled share-based payments included in the capital reserve | 82,810,770.00 |
Other statementsNil
3. Share-based payments settled in cash
□ Applicable √Not applicable
4. Share-based payment expenses in this period
√Applicable □Not applicable
Unit: RMB
| Grant object category | Equity-settled share-based payment expenses | Cash-settled share-based payment expenses |
| Administrative expenses | 2,881,766.53 | / |
| R&D expenses | 67,229.32 | / |
| Total | 2,948,995.85 | / |
Other statementsOn December 10, 2020, the Fifth Extraordinary General Meeting of Shareholders of theCompany approved the Proposal on the 2020 Restricted Stock Incentive Plan (Draft) and itsAbstract, granting stock options to 405 eligible directors, senior management, core technicalpersonnel, and other personnel deemed necessary by the Board of Directors to be incentivized.The price for the restricted stocks in the first grant under this plan was RMB 2.94 per share; Theprice for the restricted stocks in the reserved grant part was RMB 2.39 per share.On September 6, 2021, Zhejiang Zhicheng Certified Public Accountants LLP issued thecapital verification report (ZZKYZ [2021] No. 17): The Company has received a total of RMB5,592,600.00 for subscription of restricted shares from 31 restricted stock incentive objects,including RMB 2,340,000.00 in newly registered capital (share capital), and RMB 3,252,600.00in capital reserve. The registered capital and share capital of the Company before the capitalincrease 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 ofthe fact that 3 of the incentive objects to be granted on the reserved grant date are no longereligible for incentive objects due to their voluntary abandonment; 31 incentive objects actuallysubscribed this time, and 2.34 million shares were subscribed. On November 4, 2021, theregistration procedures for the reserved grant part of restricted stocks involved in this incentiveplan were completed, and the Shanghai Branch of China Securities Depository and ClearingCorporation Limited issued the "Securities Change Registration Certificate".
5. Modification and termination of share-based payment
□ Applicable √Not applicable
6. Other
□ Applicable √Not applicable
XVI. Commitments and contingencies
1. Important commitments
√Applicable □Not applicable
Important external commitments, nature and amount thereof as of the balance sheet dates
Unit: RMB
| Capital commitments | June 30, 2024 | 2023 |
| Signed but not provided | 4,281,179,919.98 | 4,549,081,338.19 |
In 2017, the Group’s wholly-owned subsidiary Yiwu China Commodities City FinancialHoldings Co., Ltd. (“CCCF”) and Shanghai Fuxing Industry Group Co., Ltd. (“Fuxing Group”)jointly established an industry fund Yiwu China Commodities City Fuxing Investment Center(Limited Partnership) (hereinafter referred to as the “FOF”). The FOF as a limited partnerinvested in 12 sub-funds including Yiwu Shangfu Chuangzhi Investment Center (LimitedPartnership) (“Shangfu Chuangzhi Fund”). CCCF subscribed for capital contribution of RMB998 million in the FoF as a limited partner, accounting for 49.9% of the total capital contribution,and has paid in RMB 102.92 million. The unpaid portion of its subscribed capital contributionwas promised to be RMB 895.08 million and was not subject to a term. CCCF also made capitalcontribution of RMB 9.8 million (49% equity) to Yiwu China Commodities City Investment andManagement Co., Ltd. (hereinafter referred to as the “CCCIM”), which was a general partner ofthe above FoF and sub-funds. Fuxing made capital contribution of 51% to and had control overCCCIM.Shangfu Chuangzhi Fund raised funds of RMB 823.36 million in total. The FoF hassubscribed for and paid in capital contribution of RMB 205.84 million as a limited partner(including the above RMB 102.92 million from CCCIM and the rest was contributed by Fuxing,the other limited partner of the FoF). As the other limited partner of Shangfu Chuangzhi Fund,CCCF has separately subscribed for and paid in capital contribution of RMB 617.51 million. Inaddition, neither the Group nor CCCF have invested in other sub-funds of the FoF. ShangfuChuangzhi Fund subsequently subscribed to the increased registered capital of Hubei AssetManagement Co., Ltd. for RMB 820.54 million, holding 22.6667% of its equity. In 2019, 9 out ofthe 12 sub-funds mentioned above were cancelled.In 2018, CCCF learned during its after-investment follow-up management that Fuxing andits actual 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 due to Fuxing’s contribution to thesources of the capital contribution. As of the date of approval for the financial statements, therelevant equity was still frozen.
As of the approval date of the financial statements, the Group had not received any noticeof capital contribution other than the above contributions that had been made or any notice ofaction involving the Group, CCCF, FOF and its sub-funds.
In addition, as of June 30, 2024, the Group had other investment commitments totalingRMB 202.7182 million (December 31, 2023: RMB 117.68 million).
For lease commitment as a lessee, please refer to Note VII. 82.
2. Contingencies
(1). Important contingencies on the balance sheet date
√Applicable □Not applicable
Unit: RMB
| Item | June 30, 2024 | 2023 |
| Contingent liabilities resulting from the guarantee provided externally | 31,202,981.44 | 50,384,223.92 |
According to relevant regulations, the Group is required to provide mortgage loanguarantees to the bank for the sale of commercial housing before the purchaser of the housinghas completed the property ownership certificate. The outstanding guarantee amount as ofJune 30, 2024 was RMB 4,611,250.35 (December 31, 2023: RMB 4,629,333.68). Those
guarantees would be released after the issuance of the property ownership certificates and arethus little likely to incur losses. Therefore, the management believed that it was not necessary tomake provision for the guarantees.According to the resolution of the 15th meeting of the 7th Board of Directors on Jul 1, 2015,the Group applied to the Yiwu Branch of ABC for a loan of RMB 750 million for Yiwu Shanglvand provided guarantee based on its shareholding ratio. The guarantee was a joint and severalliability guarantee, the maximum amount of guarantee was RMB 367.5 million and the term was11 years. As of June 30, 2024, Yiwu Shanglv actually borrowed RMB 54,268,838.96 from banks(December 31, 2023: RMB 93,377,327.02). According to the guarantee contract, the Groupshould bear a guarantee liability of RMB 26,591,731.09 (December 31, 2023: RMB45,754,890.24) to Yiwu Branch of Agricultural Bank of China. Yiwu State-owned CapitalOperation Co., Ltd. provided a counter-guarantee for this guarantee.
(2). The Company should also provide an explanation if there are no important orcontingent matters that need to be disclosed:
□ Applicable √Not applicable
3. Other
□ Applicable √Not applicable
XVII. Matters after the balance sheet date
1. Important non-adjustment events
√Applicable □Not applicable
Unit: RMB 100 million
| Item | Content | Effect on financial status and operating results | Reasons for inability to estimate the effect |
| Issuance of ultra-short term financing notes | On July 29, 2024, the Company issued Zhejiang China Commodities City Group Co., Ltd.'s 2024 super-short-term financing bonds (Issue 3) for RMB 1 billion, with a term of 268 days and a one-time repayment of principal and interest when due, at an issuance interest rate of 2.00%. | ||
| Equity transfer of wholly-owned subsidiary [Note 6] | On July 20, 2024, the Company’s original wholly-owned subsidiary Yiwu Xingchen Enterprise Management Co., Ltd. completed the change registration with market regulation authorities for the transfer of 100% equity in it to the Company's controlling shareholder Yiwu China Commodities City Holdings Limited. The equity transfer has been fully completed. |
Note 6: The equity transfer and related debt repayment were completed on July 10, with atotal amount of RMB 2.574 billion received; The equity delivery was completed on July 18. Afterthe completion of this transaction, monetary funds increased by RMB 2.574 billion (partiallyused to repay interest-bearing debts), inventory and long-term assets decreased byapproximately RMB 1.838 billion, capital reserve increased by RMB 681 million, and minorityshareholders' equity increased by RMB 55 million.
2. Profit distribution
□ Applicable √Not applicable
3. Sales return
□ Applicable √Not applicable
4. Other events after the balance sheet date
□ Applicable √Not applicable
XVIII. Other important matters
1. Correction of previous accounting errors
(1). Retrospective restatement
□ Applicable √Not applicable
(2). Prospective application
□ Applicable √Not applicable
2. Significant debt restructuring
□ Applicable √Not applicable
3. Exchange of assets
(1). Non-monetary asset exchange
□ Applicable √Not applicable
(2). Exchange of other assets
□ Applicable √Not applicable
4. Pension 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 regionswhere the clients are located, and assets are attributable to the divisions in the regions wherethe assets are located. As the Group’s main operating activities and operating assets are bothconcentrated in mainland China, it is not required to report more detailed information onregion-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 abusiness department or a subsidiary and provides the products and services that face the riskdifferent from that faced by other business divisions and bring the compensations different fromthose brought by other business divisions. The detailed information on business divisions aresummarized 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 auxiliarybuildings and office buildings;(b) The trade services division includes providing market-related supporting services;(c) The supporting service division refers to the operational activities of hotels, includingguest room accommodation, catering services, as well as the design, production, publishing,and advertising agency business;(d) The commodity sales division refers to the business of buying and selling commoditiessuch as export trade.The transfer pricing between divisions is made based on the prices offered to third partiesand the then prevailing market prices.The management manages the operating results of each business unit separately for thepurpose of allocating resources and evaluating performance. Division performance is evaluatedbased on the reported division profits.
(2). Financial information of reporting divisions
√Applicable □Not applicable
Unit: RMB million
| Item | Market operation | Trade services | Supporting services | Sales of goods | Set-offs among divisions | Total |
| Revenue from external transactions | 2,269.00 | 371.00 | 231.00 | 3,895.00 | - | 6,766.00 |
| Revenue from inter-division transactions | 30.00 | 38.00 | 16.00 | 3.00 | 87.00 | - |
| Profits before tax | 1,801.00 | 133.00 | -6.00 | -14.00 | 4.00 | 1,910.00 |
| Total assets | 46,501.00 | 11,631.00 | 1,514.00 | 2,519.00 | 26,143.00 | 36,022.00 |
| Total liabilities | 27,267.00 | 5,872.00 | 1,384.00 | 2,373.00 | 18,971.00 | 17,925.00 |
| Capital expenditures | 215.00 | 335.00 | 1.00 | - | - | 551.00 |
| Long-term equity investment in joint ventures and associates | 5,991.00 | 946.00 | - | 2.00 | - | 6,939.00 |
(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 notes
□ Applicable √Not applicable
7. Other important transactions and events that have influence on investors’ decisions
□ Applicable √Not applicable
8. Other
□ Applicable √Not applicable
XIX. Notes to Main Items in the Financial Statements of the Parent Company
1. accounts receivable
(1). Disclosure by aging
√Applicable □Not applicable
Unit: RMB
| Account aging | Closing book balance | Opening book balance |
| Within 1 year | ||
| Including: sub-items | ||
| Within 1 year | 8,236,506.26 | 32,222,205.22 |
| Within 1 year | 8,236,506.26 | 32,222,205.22 |
| 1 to 2 years | 304,582.11 | 621,620.47 |
| 2 to 3 years | 1,522,338.68 | 1,195,926.30 |
| Total | 10,063,427.05 | 34,039,751.99 |
(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 (%) | |||
| Provision for bad debts on a grouping basis | 10,063,427.05 | 100.00 | 121,951.25 | 1.21 | 9,941,475.80 | 34,039,751.99 | 100.00 | 98,315.30 | 0.29 | 33,941,436.69 |
| Among them: | ||||||||||
| Provision for bad debts by grouping of credit risk characteristics | 10,063,427.05 | 100.00 | 121,951.25 | 1.21 | 9,941,475.80 | 34,039,751.99 | 100.00 | 98,315.30 | 0.29 | 33,941,436.69 |
| Total | 10,063,427.05 | / | 121,951.25 | / | 9,941,475.80 | 34,039,751.99 | / | 98,315.30 | / | 33,941,436.69 |
Provision for bad debts on an individual basis:
□ Applicable √Not applicable
Provision for bad debts on a grouping basis:
√Applicable □Not applicable
Provision items on a grouping basis: by grouping of credit risk characteristics
Unit: RMB
| Name | Closing balance | ||
| Accounts receivable | Bad debt provision | Provision ratio (%) | |
| Provision for bad debts by grouping of credit risk characteristics | 10,063,427.05 | 121,951.25 | 1.21 |
| Total | 10,063,427.05 | 121,951.25 | 1.21 |
Description of provision for bad debts on a grouping basis:
□ Applicable √Not applicable
Provision for bad debts based on the general model of expected credit losses
√Applicable □Not applicable
Unit: RMB
| Bad debt provision | Stage 1 | Stage 2 | Stage 3 | Total |
| Expected credit loss in the coming 12 months | Expected credit loss in the entire duration (credit has not been impaired) | Expected credit loss in the entire duration (credit has been impaired) | ||
| Balance as of January 1, | 98,315.30 | 98,315.30 |
| 2024 | ||||
| Movements for the current period | ||||
| Provision made in the current period | 127,476.74 | 127,476.74 | ||
| Current reversal | 103,840.79 | 103,840.79 | ||
| Balance as of June 30, 2024 | 121,951.25 | 121,951.25 |
Classification basis and bad debt provision ratio for each stageNil
Explanation of significant changes in the book balance of accounts receivable with changes inloss provisions in this period:
□ Applicable √Not applicable
(3). The situation of bad debt provision
√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 | 98,315.30 | 127,476.74 | 103,840.79 | 121,951.25 |
| Total | 98,315.30 | 127,476.74 | 103,840.79 | 121,951.25 |
In which the recovered or reversed amount is important:
□ Applicable √Not applicable
Other statementsNil
(4). Accounts receivable actually written off during the current period
□ Applicable √Not applicable
Information of write-off of important accounts receivable
□ Applicable √Not applicable
Description of accounts receivable written off:
□ Applicable √Not applicable
(5). The five largest accounts receivable and contract assets aggregated by debtor at theend of the period
□ Applicable √Not applicable
Other notes:
√Applicable □Not applicable
The Company mainly engages in market operations and hotel services, and the businessincome obtained from individual customers is very low. Therefore, the total accounts receivablefrom the top five customers account for a small proportion of the Company's total accountsreceivable balance.
2. Other receivables
Presentation of items
√Applicable □Not applicable
Unit: RMB
| Item | Closing balance | Opening balance |
| Other receivables | 28,372,376.18 | 12,892,088.01 |
| Total | 28,372,376.18 | 12,892,088.01 |
Other notes:
□ Applicable √Not applicable
Interest receivable
(1). Classification of interest receivable
□ Applicable √Not applicable
(2). Significant overdue interest
□ Applicable √Not applicable
(3). Categorized disclosure based on the bad debt provision method
□ Applicable √Not applicable
Provision for bad debts on an individual basis:
□ Applicable √Not applicable
Explanation for provision for bad debts on an individual basis:
□ Applicable √Not applicable
Provision for bad debts on a grouping basis:
□ Applicable √Not applicable
(4). Provision for bad debts based on the general model of expected credit losses
□ Applicable √Not applicable
(5). The situation of bad debt provision
□ Applicable √Not applicable
In which the recovered or reversed amount is important:
□ Applicable √Not applicable
Other notes:
Nil
(6). Interest receivable actually written off in this period
□ Applicable √Not applicable
Important interest receivable written off among them
□ Applicable √Not applicable
Explanation of writing-off:
□ Applicable √Not applicable
Other notes:
□ Applicable √Not applicable
Dividends receivable
(1). Dividend receivable
□ Applicable √Not applicable
(2). Important dividend receivable with an account aging longer than 1 year
□ Applicable √Not applicable
(3). Categorized disclosure based on the bad debt provision method
□ Applicable √Not applicable
Provision for bad debts on an individual basis:
□ Applicable √Not applicable
Explanation for provision for bad debts on an individual basis:
□ Applicable √Not applicable
Provision for bad debts on a grouping basis:
□ Applicable √Not applicable
(4). Provision for bad debts based on the general model of expected credit losses
□ Applicable √Not applicable
(5). The situation of bad debt provision
□ Applicable √Not applicable
In which the recovered or reversed amount is important:
□ Applicable √Not applicable
Other notes:
Nil
(6). Dividends receivable actually written off in this period
□ Applicable √Not applicable
Important dividend receivables written off among them
□ Applicable √Not applicable
Explanation of writing-off:
□ Applicable √Not applicable
Other notes:
□ Applicable √Not applicable
Other receivables
(1). Disclosure by aging
√Applicable □Not applicable
Unit: RMB
| Account aging | Closing book balance | Opening book balance |
| Within 1 year | ||
| Including: sub-items | ||
| Within 1 year | 27,240,027.28 | 11,372,670.58 |
| Within 1 year | 27,240,027.28 | 11,372,670.58 |
| 1 to 2 years | 365,703.11 | 230,770.07 |
| 2 to 3 years | 74,836.00 | 1,086,758.22 |
| Over 3 years | 1,399,486.10 | 957,449.34 |
| Bad debt provision for other receivables | -707,676.31 | -755,560.20 |
| Total | 28,372,376.18 | 12,892,088.01 |
(2). Categorized by nature of accounts receivable
√Applicable □Not applicable
Unit: RMB
| Nature of receivable | Closing book balance | Opening book balance |
| Withholdings and deposits | 28,465,429.86 | 13,444,205.52 |
| Reserve | 614,622.63 | 203,442.69 |
| Total | 29,080,052.49 | 13,647,648.21 |
(3). Provision for bad debts
√Applicable □Not applicable
Unit: RMB
| Bad debt provision | Stage 1 | Stage 2 | Stage 3 | Total |
| Expected credit loss in the coming 12 months | Expected credit loss in the entire duration (credit has not been impaired) | Expected credit loss in the entire duration (credit has been impaired) | ||
| Balance as of January 1, 2024 | 755,560.20 | 755,560.20 | ||
| Movements for the current period | ||||
| Provision made in the current period | 26,171.69 | 26,171.69 | ||
| Current reversal | 74,055.58 | 74,055.58 | ||
| Balance as of June 30, 2024 | 707,676.31 | 707,676.31 |
Classification basis and bad debt provision ratio for each stageNil
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 creditrisk of financial instruments has increased significantly:
□ Applicable √Not applicable
(4). The situation of bad debt provision
√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 | 755,560.20 | 26,171.69 | 74,055.58 | 707,676.31 |
| Total | 755,560.20 | 26,171.69 | 74,055.58 | 707,676.31 |
In which the recovered or reversed amount is important:
□ Applicable √Not applicable
Other statementsNil
(5). Other receivables actually written off during the current period
□ Applicable √Not applicable
Of which, important write-offs of other receivables:
□ Applicable √Not applicable
Notes on the write-off of other receivables:
□ Applicable √Not applicable
(6). The five largest other accounts receivable aggregated by debtor at the end of theperiod
√Applicable □Not applicable
Unit: RMB
| Debtor | Closing balance | As a percentage of the closing balance of total other receivables (%) | Nature of receivable | Account aging | Closing balance of bad debt provision |
| Yiwu Junhuhui Entertainment Co., Ltd | 6,212,477.30 | 21.36 | Transactions between companies | Within 1 year | - |
| Jiangdong Sub-district Office of Yiwu Municipal People's Government | 2,631,845.00 | 9.05 | Transactions between companies | Within 1 year | - |
| Yiwu Power Transmission and Transformation Engineering Co., Ltd. | 1,287,187.00 | 4.43 | Guarantee deposit | Within 1 year | - |
| Zhejiang Yuntong Advertising Co., Ltd. | 596,580.00 | 2.05 | Transactions between companies | Over 3 years | 596,580.00 |
| Yiwu Branch of China Telecom Corporation Limited | 432,269.96 | 1.49 | Electricity charge | Within 1 year | - |
| Total | 11,160,359.26 | 38.38 | / | / | 596,580.00 |
(7). Reported as other receivables due to centralized fund management
□ 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 | 4,825,639,030.22 | - | 4,825,639,030.22 | 4,720,325,641.28 | - | 4,720,325,641.28 |
| Investment in associates and joint ventures | 5,992,891,823.99 | - | 5,992,891,823.99 | 5,877,913,559.04 | - | 5,877,913,559.04 |
| Total | 10,818,530,854.21 | - | 10,818,530,854.21 | 10,598,239,200.32 | - | 10,598,239,200.32 |
(1) Investment in subsidiaries
√Applicable □Not applicable
Unit: RMB
| Investee | Opening balance | Increase in the current period | Decrease in the current period | Closing balance | Closing balance of impairment provision |
| Yiwu China Commodities City Financial Holdings Co., Ltd. | 2,239,709,817.88 | 91,741.10 | - | 2,239,801,558.98 | - |
| Yiwu Shangbo Yuncang Enterprise Management Co., Ltd. | 500,000,000.00 | - | - | 500,000,000.00 | - |
| Zhejiang Xunchi Digital Technology Co., Ltd. | 444,496,865.60 | 28,501.54 | - | 444,525,367.14 | - |
| Yiwu Shangbo Shuzhi Enterprise Management Co., Ltd. | 300,000,000.00 | - | - | 300,000,000.00 | - |
| Yiwu Shangcheng Gonglian Enterprise Management Co., Ltd. | 200,000,000.00 | - | - | 200,000,000.00 | - |
| Zhejiang China Commodities City Group Commercial Factoring Co., Ltd. | 120,170,407.81 | 24,701.34 | - | 120,195,109.15 | - |
| Yiwu China Commodities City Big Data Co., Ltd. | 105,483,537.63 | 244,502.42 | - | 105,728,040.05 | - |
| Yiwu China Commodities City Import and | 102,548,043.93 | 62,703.40 | - | 102,610,747.33 | - |
| Export Co., Ltd. | |||||
| Yiwu China Commodities City Logistics and Distribution Co., Ltd. | 102,460,999.18 | 136,509.74 | - | 102,597,508.92 | - |
| Yiwu China Commodities City Overseas Investment and Development Co., Ltd. | 101,856,782.73 | 122,301.09 | - | 101,979,083.82 | - |
| Yiwu China Commodities City Supply Chain Management Co., Ltd. | 101,749,098.22 | 113,392.84 | - | 101,862,491.06 | - |
| Yiwu China Commodities City Tourism Development Co., Ltd. | 101,233,724.56 | 52,569.52 | - | 101,286,294.08 | - |
| Zhejiang Huajie Investment and Development Co., Ltd. | 79,050,980.24 | 3,656,126.42 | - | 82,707,106.66 | - |
| Yiwu Comprehensive Bonded Zone Operation and Management Co., Ltd. | 60,777,551.11 | 66,840.32 | - | 60,844,391.43 | - |
| Yiwu China Commodities City Information Technology Co., Ltd. | 51,083,052.18 | 23,909.63 | - | 51,106,961.81 | - |
| Hangzhou Shangbo Nanxing Property Co., Ltd. | 50,000,000.00 | - | - | 50,000,000.00 | - |
| Yiwu China Commodities City Exhibition Co., Ltd. | 20,973,615.43 | 167,842.43 | - | 21,141,457.86 | - |
| Zhejiang Yindu Hotel Management Co., Ltd. | 15,120,730.48 | 304,492.03 | - | 15,425,222.51 | - |
| Yiwu China Commodities City Assets Operation and Management Co., Ltd. | 11,971,370.03 | 118,439.75 | - | 12,089,809.78 | - |
| Yiwu China Commodities City Research Institute Co., Ltd. | 11,639,064.27 | 98,815.37 | - | 11,737,879.64 | - |
| Yiwu Yundailu Data Technology Co., Ltd. | - | 100,000,000.00 | - | 100,000,000.00 | - |
| Total | 4,720,325,641.28 | 105,313,388.94 | - | 4,825,639,030.22 | - |
(2) Investments in joint ventures and associates
√Applicable □Not applicable
Unit: RMB
| Investment Unit | Opening balance | Change in the current period | Closing balance | Closing balance of impairment provision | ||
| Additional investment | Decrease in investment | Investment gains or losses recognized with | ||||
| the equity method | ||||||
| 1. Joint ventures | ||||||
| Yiwu Shanglv Investment Development Co., Ltd. | 435,929,928.58 | - | - | 23,714,674.25 | 459,644,602.83 | - |
| Yiwu Rongshang Property Co., Ltd. | 65,650,697.03 | - | - | 180.99 | 65,650,878.02 | - |
| Yiwu Chuangcheng Property Co., Ltd. | 27,685,633.41 | - | - | 565,950.74 | 28,251,584.15 | - |
| Yiwu Guoshen Shangbo Property Co., Ltd. | 927,219,681.28 | - | - | 1,279,075.67 | 928,498,756.95 | - |
| Others | 23,531,994.72 | - | - | -710,086.13 | 22,821,908.59 | - |
| Sub-total | 1,480,017,935.02 | - | - | 24,849,795.52 | 1,504,867,730.54 | - |
| 2. Associates | ||||||
| Huishang Micro-finance | 78,587,936.11 | - | - | 668,603.28 | 79,256,539.39 | - |
| Chouzhou Financial Lease | 574,958,766.29 | - | - | 54,021,989.23 | 628,980,755.52 | - |
| Pujiang Lvgu Property Co., Ltd. | 346,296,866.40 | - | - | 46,319,683.10 | 392,616,549.50 | - |
| Yiwu China Commodities City Property Development Co., Ltd. | 3,127,041,142.49 | - | - | -5,218,340.42 | 3,121,822,802.07 | - |
| Zhijie Yuangang | 131,982,044.17 | - | - | -5,687,009.55 | 126,295,034.62 | - |
| Others | 139,028,868.56 | 5,000,000.00 | 5,000,000.00 | 23,543.79 | 139,052,412.35 | - |
| Sub-total | 4,397,895,624.02 | 5,000,000.00 | 5,000,000.00 | 90,128,469.43 | 4,488,024,093.45 | - |
| Total | 5,877,913,559.04 | 5,000,000.00 | 5,000,000.00 | 114,978,264.95 | 5,992,891,823.99 | - |
(3). Impairment testing of long-term equity investments
□ Applicable √Not applicable
Other notes:
□ Applicable √Not applicable
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 prior corresponding period | ||
| Revenue | Cost of sales | Revenue | Cost of sales | |
| Main business | 2,272,200,082.79 | 453,367,623.13 | 1,778,783,417.92 | 476,160,908.86 |
| Other businesses | 156,341,744.49 | 36,812,987.68 | 144,750,859.24 | 48,992,546.57 |
| Total | 2,428,541,827.28 | 490,180,610.81 | 1,923,534,277.16 | 525,153,455.43 |
(2). Breakdown information of operating revenue and operating costs
√Applicable □Not applicable
Unit: RMB
| Classified by type of contract | Total | |
| Operating revenue | Operating cost | |
| Types of goods | ||
| Market operation | 2,289,518,896.85 | 366,269,144.95 |
| Supporting services | 139,022,930.43 | 123,911,465.86 |
| Classified by business area | ||
| Chinamainland | 2,428,541,827.28 | 490,180,610.81 |
| Classified by contract term | ||
| Revenue confirmed at certain time point | 67,336,323.58 | 31,862,677.38 |
| Revenue confirmed during certain time period | 2,361,205,503.70 | 458,317,933.43 |
| Total | 2,428,541,827.28 | 490,180,610.81 |
Other statements
√Applicable □Not applicable
The income recognized in the current year and included in the opening book value ofcontractual liabilities is as follows:
Unit: RMB
| Type of contract | Current period |
| Market operation | 2,139,554,703.34 |
| Supporting services | 12,817,090.96 |
| Total | 2,152,371,794.30 |
(3). Contract performance obligations
□ Applicable √Not applicable
(4). Explanation of allocation to remaining contract performance obligations
□ Applicable √Not applicable
(5). Significant contract changes or significant transaction price adjustments
□ Applicable √Not applicable
Other notes:
The information related to the performance obligations of the Group is as follows:
The use of shops in Yiwu Market and its supporting services
The contractual performance obligation is fulfilled when providing the use of shops in YiwuMarket and the supporting services for business. For the use of shops in Yiwu Market and thesupporting services for business, the progress of contract performance is determined based onthe number of using days of the shops. Customers usually need to pay in advance before theuse of shops in Yiwu Market and the supporting services for business are provided.
Hotel accommodation business
The performance obligation is fulfilled when providing hotel accommodation services. Forthe hotel accommodation business, the progress of contractual performance is determinedbased on the number of days of stay. For hotel accommodation services, a partial depositiscollected from the customer first, and the remaining contract price is usually collected uponthe completion of the hotel accommodation services.
Hotel catering business
The 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.
Terminable paid use of funds services
The performance obligation is fulfilled when the fixed-time paid funding service is provided.For the fixed-time paid funding service, the progress of contractual performance is determinedbased on the number of using days the fund. For the fixed-time paid funding service, thecontract price is usually charged regularly as agreed in the contract.
5. Investment income
√Applicable □Not applicable
Unit: RMB
| Item | Amount in the current period | Amount in the prior corresponding period |
| Income from long-term equity investment calculated with the equity method | 114,978,264.95 | 1,040,883,650.78 |
| Investment income from disposal of long-term equity investment | - | 1,296,480.56 |
| Investment income from disposal of held-for-trading financial assets | - | 13,602.55 |
| Return on investment during investment holding period of other non-current financial assets | 2,475,000.00 | 2,110,591.00 |
| Total | 117,453,264.95 | 1,044,304,324.89 |
Other notes:
Nil
6. Other
□ Applicable √Not applicable
XX. Supplementary information
1. Detailed statement of non-recurring gains and losses for the current period
√Applicable □Not applicable
Unit: RMB
| Item | Amount | Description of |
| Non-current asset disposal gains and losses, including the offsetting portion of the provision for impairment of assets | -111,894.84 | |
| 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 provided in a fixed amount or quantity and that have a continuous impact on the Company's gains and losses according to the national polices and certain standards | 10,645,620.69 | Please refer to the details of government subsidies included in other income for details |
| Except for effective hedging business related to the normal operation of the Company, the fair value gains and losses arising from the holding of financial assets and financial liabilities by non-financial enterprises, as well as the gains and losses arising from the disposal of financial assets and financial liabilities | -4,468,954.54 | |
| Cash occupation fees charged from non-financial enterprises that are recognized in the current profit or loss | 12,872,916.46 | Cash occupation fee for receiving financial aid |
| Profits and losses arising from external entrusted loans | 1,258,704.40 | |
| Net income from other non-operating activities | 14,967,685.21 | Mainly due to penalty income for breach of contract |
| Less: effect of income tax | 5,461,289.85 | |
| Effect of minority interest (after-tax) | 628,511.41 | |
| Total | 29,074,276.12 |
If the Company recognizes non-recurring profit and loss items that are not listed in theExplanatory Announcement No. 1 on Information Disclosure of Companies Issuing Securities tothe Public as non-recurring profit and loss items with significant amounts, and definenon-recurring profit and loss items listed in the Explanatory Announcement No. 1 on InformationDisclosure of Companies Issuing Securities to the Public as recurring profit and loss items, thereasons should be explained.
□ Applicable √Not applicable
Other statements
□ Applicable √Not applicable
2. Return on equity and earnings per share
√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 | 7.86 | 0.27 | 0.27 |
| Net profits attributable to common shareholders of the Company after deducting non-recurring gains and losses | 7.70 | 0.26 | 0.26 |
3. Differences in accounting data under domestic and foreign accounting standards
□ Applicable √Not applicable
4. Others
□ Applicable √Not applicable
Chairman of Board of Directors: WANG DongDate of approving by the Board of Directors for release: August 16, 2024
Amendment
□ Applicable √Not applicable