S.F.HoldingCo.,Ltd.
2023InterimReport
August2023
Chapter1ImportantInformation,TableofContentandDefinitionTheCompany'sBoardofDirectors,SupervisoryCommittee,directors,supervisors,andseniormanagementherebyguaranteethatthecontentsoftheInterimReportaretrue,accurate,andcomplete,andthattherearenomisrepresentations,misleadingstatements,ormaterialomissions,andshallassumeindividualandjointlegalliabilities.WangWei,theCompany'slegalrepresentative,HoChit,ChiefFinancialOfficer(financialhead),andHuXiaofei,theaccountingdirector,herebydeclareandwarrantthatthefinancialreportcontainedhereinistrue,accurate,andcomplete.AlldirectorshaveattendedtheBoardmeetingatwhichtheInterimReportwasconsidered.InthisInterimReport,theCompanydetailstheriskfactorsandcountermeasuresthatmayoccurinthefuture.Formoreinformation,referto"RiskandResponses"in"SectionX.RisksFacedbytheCompanyandCountermeasures"of"Chapter3.ManagementDiscussionandAnalysis".Investorsshallrefertothisinformation.
TheCompanyisrequiredtocomplywiththedisclosurerequirementsof"ExpressServiceIndustry"inthe"Self-regulatoryGuidelinesNo.3–DisclosureofIndustryInformationforListedCompaniesontheShenzhenStockExchange".
TheCompanyintendstopaynocashdividend,nobonussharesandnoconversionofequityreserveintosharecapital.
TableofContents
Chapter1ImportantInformation,TableofContentandDefinition ...... 4
Chapter2CompanyProfileandKeyFinancialIndicators ...... 8
Chapter3ManagementDiscussionandAnalysis ...... 16
Chapter4CorporateGovernance ...... 77
Chapter5EnvironmentandSocialResponsibilities ...... 79
Chapter6SignificantEvents ...... 82
Chapter7ShareChangesandShareholderDetails ...... 96
Chapter8PreferredShares ...... 102
Chapter9Bonds ...... 103
Chapter10FinancialStatements ...... 104
ListofDocumentsAvailableforInspection
(I)Financialstatementssignedandsealedbythelegalrepresentative,ChiefFinancialOfficer(financialhead)andtheaccountingdirectoroftheCompany.(II)TheoriginalcopiesofalldocumentsandannouncementsoftheCompanywhichhavebeenpubliclydisclosedinnewspapersdesignatedbytheChinaSecuritiesRegulatoryCommissionduringtheReportingPeriod.(III)Theoriginaltextofthe2023InterimReportsignedbythechairmanoftheBoardofDirectors.(IV)Theplacewheretheabovedocumentsaremaintained:theofficeoftheCompany'sBoardofDirectors.
Definitions
| Term | Description |
| Reportingperiod | 1January2023to30June2023 |
| Thesameperiodofpreviousyear | 1January2022to30June2022 |
| TheCompany,thelistedCompany,SFHolding,SF | S.F.HoldingCo.,Ltd. |
| RMB | Renminbi |
| TaisenHolding | ShenzhenS.F.TaisenHolding(Group)Co.,Ltd.,awholly-ownedsubsidiaryofS.F.HoldingCo.,Ltd.. |
| MingdeHolding | ShenzhenMingdeHoldingDevelopmentCo.,Ltd.,thecontrollingshareholderofS.F.HoldingCo.,Ltd.. |
| KerryLogistics | KerryLogisticsNetworkLimited,acompanylistedontheMainBoardoftheStockExchangeofHongKongLimited(00636.HK),andaholdingsubsidiaryofS.F.HoldingCo.,Ltd.. |
| SFIntra-city,Intra-cityIndustrial | HangzhouSFIntra-cityIndustrialCo.,Ltd.,acompanylistedontheMainBoardoftheStockExchangeofHongKongLimited(09699.HK)andaholdingsubsidiaryofS.F.HoldingCo.,Ltd.. |
| SFREIT | SFRealEstateInvestmentTrust,listedontheMainBoardoftheStockExchangeofHongKongLimited(02191.HK),andanassociateofS.F.HoldingCo.,Ltd.. |
| CSRC | ChinaSecuritiesRegulatoryCommission |
| SZSE | ShenzhenStockExchange |
| HKStockExchange | TheStockExchangeofHongKongLimited |
Chapter2CompanyProfileandKeyFinancialIndicators
I.CompanyInformationCompanyProfile
| StockAbbreviation | SFHolding | StockCode | 002352 |
| StockExchange | ShenzhenStockExchange | ||
| ChineseNameoftheCompany | 顺丰控股股份有限公司 | ||
| ChineseNameAbbreviationoftheCompany(IfAny) | 顺丰控股 | ||
| EnglishNameoftheCompany(IfAny) | S.F.HoldingCo.,Ltd. | ||
| EnglishNameAbbreviationoftheCompany(IfAny) | SFHolding | ||
| LegalRepresentativeoftheCompany | WangWei | ||
ContactsandContactMethods
| BoardSecretary | SecuritiesAffairsRepresentative | |
| Name | LingGan | JingZeng |
| Address | BlockB,TKChuangzhiTiandiBuilding,KejiSouth1stRoad,NanshanDistrict,Shenzhen,GuangdongProvince,China | BlockB,TKChuangzhiTiandiBuilding,KejiSouth1stRoad,NanshanDistrict,Shenzhen,GuangdongProvince,China |
| TelNo. | 0755-36395338 | 0755-36395338 |
| Fax | 0755-36646688 | 0755-36646688 |
| sfir@sf-express.com | sfir@sf-express.com |
Others
1.Companycontact
WhethertheCompany'sregisteredaddress,officeaddressanditspostalcode,theCompany'swebsiteande-mailaddresshavechangedduringtheReportingPeriod??Applicable□Notapplicable
| TheCompany'sregisteredaddress | Room101,HuaideSouthRoadNo.46,HuaideCommunity,FuyongStreet,Bao'anDistrict,Shenzhen |
| Postalcodeoftheregisteredaddress | 518103 |
| TheCompany'sofficeaddress | BlockB,TKChuangzhiTiandiBuilding,KejiSouth1stRoad,NanshanDistrict,Shenzhen,GuangdongProvince,China |
| Postalcodeoftheofficeaddress | 518057 |
| TheCompany'swebsite | www.sf-express.com |
| e-mailaddress | sfir@sf-express.com |
| Dateofaccesstothedesignatedwebsitefor | 19November2022 |
| disclosureoftemporaryannouncements(Ifany) | |
| Indexofdesignatedwebsitesfordisclosureoftemporaryannouncements(Ifany) | www.cninfo.com.cn |
2.Informationdisclosureandlocationwherereportsarekept
WhetherinformationdisclosureandthelocationwherethereportiskeptchangedduringtheReportingPeriod??Applicable?NotapplicableThenameofthenewspaperselectedbytheCompanyfordisclosureofinformation,thewebsitedesignatedbytheChinaSecuritiesRegulatoryCommission(CSRC)onwhichtheinterimreportisposted,andthelocationwheretheCompany'sinterimreportiskeptwerenochangesduringtheReportingPeriod,whichcanbereferredtotheAnnualReport2022fordetails.
3.OtherrelevantinformationWhetherotherrelevantinformationchangedduringtheReportingPeriod??Applicable?Notapplicable
II.KeyOperatingandFinancialData
ResultsOverviewfortheFirstHalfof2023
| RevenueRMB124.4billion↓4.4% | TotalassetsRMB218.0billion↑0.6% |
Grossprofit
RMB16.8billion↑3.2%
Grossprofit
RMB16.8billion↑3.2%
Netassetsattributabletotheparentcompany
RMB89.9billion↑4.3%
Netassetsattributabletotheparentcompany
RMB89.9billion↑4.3%
Basicearningspershare
RMB0.86/share↑68.6%
Basicearningspershare
RMB0.86/share↑68.6%
Returnonnetasset
4.72%+1.72%
Returnonnetasset
4.72%+1.72%
Netprofitattributabletotheparentcompany
RMB4.18billion↑66.2%
Netprofitattributabletotheparentcompany
RMB4.18billion↑66.2%
Netprofitattributabletotheparentcompanyafterdeductingnon-recurringprofitorloss
RMB3.71billion↑72.5%
Netprofitattributabletotheparentcompanyafterdeductingnon-recurringprofitorloss
RMB3.71billion↑72.5%
Notes：
1.Netpro?tattributabletotheparentcompanyreferstonetpro?tattributabletoshareholdersofthelistedCompany
2.Netpro?tattributabletotheparentcompanyafterdeductingnon-recurringpro?torlossreferstothenetpro?tattributabletoshareholdersofthelistedCompanyafterdeductingnon-recurringpro?torloss
3.NetassetsattributabletotheparentcompanyreferstonetassetsattributabletoshareholdersofthelistedCompany
4.Returnonequityreferstotheweightedaveragereturnonequity
Financialsummary
1.Majoraccountingdataandfinancialindicators
WhethertheCompanyneedstoretrospectivelyadjustorrestatetheaccountingdataofpreviousyears?
□Applicable?Notapplicable
Unit：
RMB'000
| TheReportingPeriod | Sameperiodofpreviousyear | Increase/decreaseduringtheReportingPeriodoverthesameperiodofpreviousyear | |
| Revenue | 124,365,598 | 130,064,133 | -4.38% |
| Costofrevenue | 107,555,280 | 113,778,310 | -5.47% |
| Grossprofit | 16,810,318 | 16,285,823 | 3.22% |
| NetprofitattributabletoshareholdersofthelistedCompany | 4,176,282 | 2,512,397 | 66.23% |
| NetprofitattributabletoshareholdersofthelistedCompanyafterdeductingnon-recurringprofitorloss | 3,705,309 | 2,147,856 | 72.51% |
| Netcashflowgeneratedfromoperatingactivities | 13,824,827 | 16,712,814 | -17.28% |
EndoftheReportingPeriod
| EndoftheReportingPeriod | Endofthepreviousyear | Increase/decreaseattheendofReportingPeriodascomparedwiththeendofthepreviousyear | |
| Totalassets | 218,040,431 | 216,842,707 | 0.55% |
| Totalliabilities | 116,834,362 | 118,556,658 | -1.45% |
| Netassets | 101,206,069 | 98,286,049 | 2.97% |
| NetassetsattributabletoshareholdersofthelistedCompany | 89,943,838 | 86,263,741 | 4.27% |
| Gearingratio(%) | 53.58% | 54.67% | Adecreaseof1.09percentagepoints |
TheReportingPeriod
| TheReportingPeriod | Sameperiodofpreviousyear | Increase/decreaseduringtheReportingPeriodoverthesameperiodofpreviousyear | |
| Basicearningspershare(RMB/share) | 0.86 | 0.51 | 68.63% |
| Dilutedearningspershare(RMB/share) | 0.86 | 0.51 | 68.63% |
| Weightedaveragereturnonnetassets(%) | 4.72% | 3.00% | Anincreaseof1.72percentagepoints |
2.MajorfinancialdataofoperatingsegmentsSegmentexternalrevenue
Unit：RMB'000
| TheReportingPeriod | Sameperiodofpreviousyear | Increase/decreaseduringtheReportingPeriodoverthesameperiodofpreviousyear | |
| Expressandfreightdeliverysegment | 90,058,986 | 79,027,014 | 13.96% |
| Intra-cityon-demanddeliverysegment | 3,406,837 | 2,938,274 | 15.95% |
| Supplychainandinternationalsegment | 30,283,063 | 47,545,204 | -36.31% |
| Undistributedunits | 616,712 | 553,641 | 11.39% |
| Total | 124,365,598 | 130,064,133 | -4.38% |
Segmentnetprofit
Unit：
RMB'000
| TheReportingPeriod | Sameperiodofpreviousyear | Increase/decreaseduringtheReportingPeriodoverthesameperiodofpreviousyear | |
| Expressandfreightdeliverysegment | 4,119,741 | 2,114,769 | 94.81% |
| Intra-cityon-demanddeliverysegment | 30,314 | -143,940 | 121.06% |
| Supplychainandinternationalsegment | -308,075 | 1,689,467 | -118.24% |
| Undistributedunits | 15,186 | -368,555 | 104.12% |
| Inter-segmentelimination | 37,074 | 5,034 | 636.47% |
| Total | 3,894,240 | 3,296,775 | 18.12% |
Note：
(1)AstheCompanypromotedbusinessintegrationandadjusteditsinternalorganisationalstructureaccordingly,itadjustedthecompositionofitsoperatingsegmentsbasedonthechangesinitsbusiness,andmergedtheformerexpresssegmentandthefreightsegmentintotheexpressandfreightdeliverysegment,andrestatedthefiguresforthesameperiodofpreviousyear.
(2)ThecorrespondingrelationshipbetweentheoperatingsegmentsandtheCompany'sprincipalbusinesssegmentswas:theexpressandfreightdeliverysegmentismainlytime-definiteexpressandeconomicexpressbusiness,freight,coldchainandpharmaceuticalbusiness;theintra-cityon-demanddeliverysegmentismainlyintra-cityon-demanddeliverybusiness;thesupplychainandinternationalsegmentmainlyisinternationalexpressbusiness,internationalfreightandfreightforwardingbusiness,andsupplychainbusiness;theundistributedunitsmainlyincludesegmentsofnon-principallogisticsandfreightforwarding,includinginvestment,industrialparksandotherfunctionalsegmentsoftheheadquarters.
3.Non-recurringprofitorlossitemsandamounts
Unit：RMB'000
| Amount | Description | |
| Investmentincomefromdisposalofsubsidiaries | 244,982 | PleaserefertoNote5toChapter10FinancialStatementfordetails. |
| Non-currentassetdisposalgainsandlosses(includingthewrite-offpartoftheprovisionforimpairmentofassets) | 45,950 | |
| Governmentsubsidiesincludedinthecurrentprofitandloss(exceptforgovernmentsubsidiesthatarecloselyrelatedtotheCompany'snormalbusinessoperations,andareinlinewithnationalpoliciesandarecontinuouslygrantedonacertainstandardorquantitativebasis) | 425,229 | Itmainlyrepresentsfiscalsubsidiesforthelogisticsindustry,transportcapacitysubsidy,taxrefund,grantsforemploymentstabilisation,etc. |
| InadditiontotheeffectivehedgingbusinessrelatedtotheCompany'snormalbusinessoperations,theprofitorlossfromfairvaluechangesinholdingheld-for-tradingfinancialassetsandheld-for-tradingfinancialliabilities,aswellastheinvestmentincomefromthedisposalofheld-for-tradingfinancialassetsandheld-for-tradingfinancialliabilities | 6,787 | |
| Reversalofprovisionsforimpairmentofaccountsreceivablethathavebeenseparatelytestedforimpairment | 31,217 | |
| Othernon-operatingincomeandexpensesotherthantheabove | -63,322 | |
| Less:Incometaximpact | 93,843 | |
| Impactonminorityshareholders'equity(aftertax) | 126,027 | |
| Total | 470,973 |
Note:TheCompanydoesnothaveotherprofitandlossitemsthatmeetthedefinitionofnon-recurringprofitorloss;theCompanydoesnotdefinethenon-recurringprofitorlosslistedintheExplanatoryAnnouncementNo.1onInformationDisclosureofCompaniesOfferingSecuritiestothePublic—Non-recurringProfitorLossasrecurringprofitorloss.
4.Differencesinaccountingdataunderdomesticandforeignaccountingstandards
1.DifferenceinthenetprofitandnetassetsinthefinancialreportsdisclosedinaccordancewiththeInternationalAccountingStandardsandtheChineseAccountingStandards:
□Applicable?Notapplicable
2.DifferenceinthenetprofitandnetassetsinthefinancialreportsdisclosedinaccordancewithoverseasaccountingstandardsandinaccordancewiththeChineseAccountingStandards:
□Applicable?Notapplicable
Chapter3ManagementDiscussionandAnalysis
I.BusinessdevelopmentoftheCompany(I)IndustryReview
1.Amidstthechallengingglobalmacroeconomicenvironmentduringfirsthalfof2023,theChineseeconomystoodoutandregisteredstablegrowthwithencouragingmomentum,intandemwiththeChineselogisticsindustryinparticularwherestrongsignsofsectoralrecoverywasobserved.
Ⅰ)ThemacroeconomicconditioninChinahasrecordedgradualimprovementandremarkableresilience.AccordingtoareportreleasedbytheWorldBankinJunethisyear,theglobalgrowthhasslowedsignificantlyfromlastyearagainstthebackdropofhighinflation,tighteningmonetarypoliciesandtightenedcreditconditions,andtheglobalGDPgrowthisprojectedtoslowdownfrom
3.1%in2022to2.1%in2023.Nonetheless,Chinahasdemonstratedahighdegreeofresilienceinitseconomicoperationamidstthechallengesfromtheexternalenvironmentandhasbecomeanimportantengineofglobaleconomicgrowth.Variousmacroindicatorsshowthatbothindividualconsumptionandbusinessentitiesareshowingapositivetrendforbetterrecoveryinthedomesticeconomy.Inthefirsthalfof2023,ChinaachievedatotalGDPofRMB59.3trillion,representingayear-on-yeargrowthof
5.5%atconstantprices.
Ⅱ)Domesticindustrialproductionandsocialconsumptionhavebouncedback,withincreasinglyoptimizedcompositionofimportandexporttradingingoods.Astheeconomyandsocietyreturntonormaloperation,andindustrialproductionhasbeensteadilyrecovering,theincrementvaluedeliveredbythebusinessesabovedesignatedsizeacrossthenationinthefirsthalfoftheyearincreasedby3.8%period-to-period.Aseriesofpoliciestoexpanddomesticdemandandpromoteconsumptionhave
representingaperiod-to-periodincreaseof16.2%.TherevenueofChina'sexpressdeliverybusinessinthefirsthalfof2023wasRMB554.29billion,representingaperiod-to-periodincreaseof11.3%.TheAverageSellingPrice(ASP)wasRMB9.31perdelivery,representingaslightperiod-to-perioddecreaseandindicatingincreasingcompetitioninthesector.
2.Nationalpoliciesandemergingmarketdemandscontinuetodrivethecompetitionfocustoservicequalityandcapabilityofofferingcomprehensivelogisticsservice.
Ⅰ)Nationalpoliciespromotethehigh-qualitydevelopmentofthemodernlogisticsindustry.InFebruary2023,theCPCCentralCommitteeandtheStateCouncilissuedtheOutlineforConstructionofaQualityState(《质量强国建设纲要》),forthepurposeofpromotingdevelopmentofthedomesticeconomyandindustriesinthedirectionofhighqualityandhighlevel.Significantqualityimprovementshavebeenwitnessedincommerce,tourism,financeandlogistics,andnewrequirements,includingupgradingspecialisationinproductionservices,havebeenproposed.Inparticular,thefollowingnewrequirementshavebeenraisedforthelogisticssector,namely,toimprovethequalityofcold-chainlogisticsservicesthroughactivedevelopmentofmulti-modaltransport,smartlogisticsandsupplychainlogistics,optimiseinternationallogisticscorridors,andfacilitatecustomsclearanceatports.Inthefuture,thelogisticsinfrastructurewillbeimprovedcontinuouslyandtheefficiencywillbegraduallyenhancedsothattheindustrywillbeupgradedandtheconsumptionpotentialwillbefurtherreleased.Thepolicieswillpromotelogisticsenterprisestoimprovethequalityandcapabilityoflogisticssupply,acceleratethepaceofdigitaltransformation,makeupfortheshortcomingsofinternationallogistics,andgraduallyenhancethegreenandlow-carbonoperation,thuscontinuouslyimprovingthecomprehensivecompetitivenessoflogisticsenterprises.
II)Emergingindustrieshavebeengeneratingdiversifiedlogisticsneeds,andthereisanurgentneedfor
multi-scenariosservice.
3.Thelocallogisticsmarketinintra-AsiaandvariouscountriesinSoutheastAsiaandtheintercontinentallogisticsmarketinAsiawillmaintainrapidgrowth,withhugedevelopmentopportunities.
Inrecentyears,withthegrowingpresenceofAsianemergingeconomiesincludingcountriesinSoutheastAsiaintheglobalsupplychain,thematerialisationoftheRegionalComprehensiveEconomicPartnership(RCEP),thedeepeningcooperationbetweenChinaandASEANFreeTradeAgreement(CAFTA),andtherapiddevelopmentofcross-borderandlocale-commercebusinesses,theintra-Asiatradevolumeandlogisticsdemandisgrowingrapidly.AccordingtoFrost&Sullivan,theintra-Asiatradevolumehasaccountedfor35%ofglobaltradevolumein2022.Inparticular,theChina-SoutheastAsiatradechainisoneofthelargesttradechainswithinAsiawiththefastestgrowth,andthetradevolumeofwhichaccountsfor24%ofintra-Asiacross-borderlogisticsspendingin2022.Accordingtotheabovestudy,thetotallogisticsspendingoftheChina-SoutheastAsiatradechainreachedUSD56.3billionin2022,growingataCAGRofupto16.5%from2017to2022,andisexpectedtomaintainahighCAGRof11.6%overthenextfiveyears.Lookingahead,ChinaandSoutheastAsiawillformaneffectivecomplementaryindustrialstructure,forminganewpatternof“China+SoutheastAsia”integratedsupplychain,whichwillbringgreatopportunitiesfortheinternationalbusinessofChineselogisticsenterprises.
(II)PrincipalbusinesssegmentsoftheCompany
SFHoldingisthelargestintegratedlogisticsserviceprovider
inChinaandAsia,andthefourthlargestintheworld.Withthelogisticsecosystemasafocalpoint,theCompanyhascontinuallydevelopeditsportfolioofproductandservicecapabilities,andhasexpandedtocovertime-definiteexpress,economyexpress,freight,coldchainandpharmaceuticals,intra-cityon-demanddelivery,internationalexpress,internationalfreightandfreightforwarding,andsupplychain,toprovidecustomerswithdomesticandinternationalend-to-endone-stopsupplychainservices.Meanwhile,throughleveragingleadingtechnologyandresearchanddevelopmentcapabilities,theCompanystrivestocreateadigitalsupplychainecosystem,andbecomeafrontrunneringlobalintelligentsupplychain.
Withtheaimofsustainableandhealthydevelopmentthroughvisionaryandforward-lookingstrategicplanning,forthepastthreedecades,theCompanyhasaccuratelyseizedopportunitiestoexpanditsscale,maintainindustryleadership,andhasbecometheleadinglogisticscompanyinChinaandAsia.TheCompany'sflagshipproduct,time-definiteexpress,hasdominantmarketleadershipinChina,andthroughleveragingthenetworkresourcesandcapabilitiesforitstime-definiteexpress,theCompanyhasrapidlyandefficientlyexpandedintonewlogisticsservicesub-segments,coveringfromsmallparcelstobulkandheavycargoes,fromstandardizedexpressdeliverytobe-spokesupplychainservices,andfromChinatoAsiaandfurthertotheworld.Intermsofrevenuein2022,theCompanywasthemarketleaderinChinaacrossfivelogisticssub-segmentsincludingexpress,freight,coldchain,intra-cityon-demanddelivery
andsupplychain
,andthemarketleaderinAsiaacrossfourlogisticssub-segmentsincludingexpress,freight,intra-cityinstantdelivery
andinternationalbusiness
inAsia
.Lookingahead,theCompanyiscommittedtobecomingtheleadinggloballogisticscompanyconnectingAsiaandtheworld.TheCompanywillsolidifyitsmarketleadershipinChinaandcontinuetoexpanditspresenceinAsiaandglobally;rapidlyreplicateitsprovendomesticknow-howtooverseasnetworks,andexpandgloballybyleveragingitswell-recognisedbrand,leadingcostadvantagesandintegratedlogisticsservicecapabilitiestodrivethesustainableandhealthygrowthoftheCompany,soastobecomethego-tologisticspartnerofglobalbusinesscustomersandretailcustomerstofostershared-growthunlockvaluetogether.
AccordingtoFrost&SullivanReport,intermsofrevenuein2022
Amongthird-partyintra-cityon-demanddeliveryserviceproviders
Amongnon-state-ownedindependentthird-partysupplychainsolutionproviders
AmongtheintegratedlogisticsserviceprovidersinAsia
(III)Summaryofbusinessdevelopment
1.Customeroperation
Byadheringtothestrategyof"Deepenindustrypenetration,expendbusinessscenariosandproductofferings",theCompanycontinuestoimproveitscustomermanagementsystembasedoncustomerstratificationtoenhanceitsdifferentiatedservicecompetitivenessandoperationalefficiency.
Ⅰ)CreditaccountclientsAsoftheendofJune2023,thenumberofactivecreditaccountclients
amountedtoapproximately1.90million,anincreaseof140,000comparedwiththesameperiodofthepreviousyear.
(1)SKA(strategickeyaccounts):OrchestratingtheGroup’scompetitiveadvantagesinboththecomprehensiveproductofferingsandwell-establishedoperationalcoverageacrossthesupplychainsolutions,enhancingSF’sabilitytoprovidehighlyintegratedsolutionstovariouscustomerverticals,continuouslyextendingsolutionscoveragetowardsnewlogisticsscenariosfromupstreamanddownstreamofthesupplychain,fosteringthegrowthofGroup’scustomerwalletsharethroughouteachpartofthesupplychain.
①E-commerceplatformcustomers:a.Positionedtoservenewformsofe-commerce:followingtherapidemergenceofnewe-commerceplatformsandlivestreaming,thee-commerceplatformshavebeenintroducingnovelbusinessmodelsinresponsetotheshiftindemandi.e.viathelivestreamingoropinionatingbytop-tierstreamerstodrivethedevelopmentpathwayofe-commerceplatforms.Combiningitslayered-structuredproductsofmultipledeliverytimelinessandsuperiorservicecapabilities,SFassistsplatformstocreatetheirexclusiveservicemodels,whilestrengtheningthesupplychaincapabilitiesofSFinthefieldofonlinesupermarketandnear-fielde-commerce.b.Continuouslypenetrateintoparcelreturnservicesfore-
Thestatisticsinthissub-sectionexcludethecustomerdataofSFSupplyChain,NewHAVIandKerryLogistics
ThenumberofactivecreditaccountclientsreferstothecustomersthatenteredintobusinessagreementswiththeCompanyandstilltramsactedwiththeCompanyasofJune2023
oflow-carbonenvironmentalprotection,thenewdemandfordestructionofgarmentsofinternationalbrandsinanenvironmentfriendlywayhasbeenhighlighted,andtheCompanyhasaggregatedanumberofinternalbusinesscapabilitiestoprovidecustomerswithend-to-endsolutioncoveringthewholechainof"transport-storage-destruction"ofgarments,cooperatingwithcustomerstopromotegreenandsustainabledevelopment.
④Fast-movingconsumergoodscustomers:
LeveragingSF’sintelligentsupplychainwarehousenetworkplanning,integratedwarehousinganddistributionsystemsandcomprehensiveindustry-tailoredsolutionscapabilities,SFassistedacustomerinitssupplychaintransformationandupgrade.Duringthefirstphaseofcooperation,theCompanybroughtthecustomer'sonlineconsumersfastfulfilmentserviceswhichonlytook12to48hoursfromorderplacementtodelivery,andthecustomerandtheCompanywillcarryoutmoreefficientsynergiesinthesecondphaseofcooperationtoenhancecustomers'experiencethroughoutallchannels.
(2)KA(keyaccounts):①Mechanismiteration:theCompanyhasiterateditscustomerintroductionandupgradesystembasedoncustomerneedsthroughimprovingcustomerportrait.Meanwhile,itreviewsbusinessopportunitypotentialandcooperationprogress,andthenfurthersubdividestheKAsintocoreKA,keyKAandpotentialKA,andadoptsdifferentiatedcustomermanagementstrategiesintermsofresourcesupport,operationandmaintenanceguarantee,solutionsandotherdimensions.②Businessfocus:focusingonthebreakthroughofnewbusinessscenariosin9majorsub-industries,theCompanypromotestheintegrationandreuseofindustrysolutionstoexpandthescaleofbusiness.Customersofhighpotentialaretargetedbyprovidingthemtailoredsolutionsbasedontheirspecificneedsandguidingthemtorecognisethevalueoffull-scenarioservices,thusrealisingbusinessbreakthrough.③Managementrefinement:theCompanymanagestoachieveoverallimplementationofitsservicethroughfocusingoncustomerimagevisualisation,solutioncapabilityupgrading,customeroperationandmaintenanceupgrade,andteammanagementcapabilityenhancement,thusenhancingcustomers’experience.
(2)OfflineChannel:TheCompanyisfocusingonthestrategicgoalof"continuouslydeepening,expandingandincreasingthedensityoftheofflinechannelstoenhanceourcompetitivenessinthelast100-meterservice":①Attheurbanend,theCompanywillemphasizetwomajortasks,namely,therefinedexpansionandoperationofchannelmanagementandthechangeofregionaloutsourcingmodels,targetingtofurtherimprovechannelcoverageandstrengtheninglayeredchanneloperation;②Attheruralend,theCompanywillcontinuetoexpandthecooperationchannels,improveservicestandardrequirementsandstrengthenoperationalcontrolthroughvisualized
2.Businessdevelopment
I)Time-definiteexpress
Inthefirsthalfof2023,theCompany'stime-definiteexpressbusinessachievedtax-exclusiverevenueofRMB56.07billion,representingaperiod-to-periodincreaseof13.8%.Withthegradualrecoveryofsocialandeconomicactivitiesandconsumptioninthedomesticmarket,theCompanyrecordedarapidgrowthinthetime-definiteexpressbusinessbytakingadvantagesofself-operatednetworkandstrongcontroloverrespirces,providingefficientandstabledeliveryforcustomersandconsumers.
TheCompanycontinuestoexpanditstop-notchtime-definiteservices,improveservicecapabilitiesandcovermoreservicescenarios:(1)SFspeedyexpress:Taking"upgradingtime-definitecapabilities,enhancingcustomerexperienceandimprovingclaimsrelatedservice"asthethreecorefocuses,theCompanyhasimprovedtheproductofferingcapabilitiesandservicequalityofSFExpresstofurtherconsolidateSF'sleadingpositioninhigh-endtime-definiteexpressmarket.(2)Intra-cityhalf-daydelivery:
Byfullyintegratingthequalityresourceswithinthesamecity,theCompanylaunchedtheproductof"intra-citydeliverywithinhalfaday",focusingonthedevelopmentoflocalconsumptionscenarios,exploringnewlocallifemarket,optimisingproductstructureoftime-definiteexpresssegment,andenlargingthescaleoftime-definitebusiness.Duringthefirsthalfof2023,theproductof"intra-citydeliverywithinhalfaday"hasbeenexpandedto130cities.
(3)Cross-cityexpeditedelivery:Inresponsetocustomer'sdemandforultimatetime-definitecross-citydeliveryinashortandmediumdistance,theCompanyhasfullylaunchedtheproductof"cross-cityexpeditedelivery"byutilisinghigh-speedrailroad'sresourcestoachievethefastestcross-citydeliveryasfastas4hours.Currently,suchservicehasbeenprovidedin113cities.(4)Bulkexpressairtransportation:wecapitaliseSFall-cargoaircraftandabundantbulkparceldeliveryresourcestodevelopauniqueoperationmodelforbulkexpressdelivery.Thecorecitiescapableofreceivinganddispatchinggoodsdirectlyfromthepickupanddeliveryendshavebeenexpandedfrom23to74cities,andavarietyofindependentoperationcapabilitieshavebeenadoptedinthetransitprocesstoreduce
alargescale",andpromotedthee-commercestandardexpressproductstomaintainsteadygrowthandachieveprovenbenefitsthroughselectingpreferredbusinessregions,developingcustomersofgoodquality,refinedmanagement,andcostreductioninallsegments.TheCompanystrengthenedcooperationwitheachofe-commerceplatformsandactivelyexpandednewbusinessscenariosoftheplatformsbyvirtueofitshigh-qualityfulfilmentservicecapabilities.Inthefirsthalfof2023,theCompanycooperatedwithmanymajorinfluentiale-commerceplatformsinnewbusinessscenarios,satisfyingtheplatforms'demandfortime-definiteandconsumer-orientedcustomisedfulfilmentservices,helpingthemenhancetheshoppingexperienceandstickinessoftheirconsumers,andpromotingbusinessdevelopmentoftheplatforms'e-commercesegment.Intermsofproductefficiency,throughenhancingproductcompetitivenessandstrengtheninginternalrefinedmanagement,thee-commercestandardexpressproductsachievedaperiod-to-periodincreaseinaveragerevenueperparcel,adecreaseinunitoperatingcostsandasignificantincreaseinprofitability.
(2)Warehousinganddistributionintegrationservices:Byvirtueofthenationwidewarehousenetworkresources,standardisedwarehousinganddistributionproductsandsolutions,professionaloperationalteamandend-to-endwhole-chainsystematicservicecapabilities,theCompanyprovidescustomerswithcost-effectiveintegratedwarehousinganddistributionservices.In2023,theCompanycontinuestoenhancestandardisedwarehousinganddistributionoperationandleanmanagement,improvescustomerexperienceandoperationalinnovationandupgrading,enhancesthestickinessofexistingcustomers,and
III)Freight
Inthefirsthalfof2023,theCompanyrecordedtax-exclusiverevenueofRMB15.12billionfromfreightbusiness,representingaperiod-to-periodincreaseof
15.0%.
Inthefirsthalfoftheyear,asthedomesticeconomyreturnedtonormalwithGDPgrowthraterebounding,medicalequipment,newenergyvehicles,electroniccommunicationsequipmentandothernewhigh-endindustriesandconsumer-endsmarthomeindustryrecordedrelativelyrapidgrowthratesindemandseventhoughthegrowthrateinthetraditionalmanufacturingindustryisrelativelyslow.Therapidgrowthofhigh-endindustrieshasbroughtnewgrowthmomentumtothelogisticsindustry,andalsoraisedhigherrequirementsforthequalityoflogisticsservices.
Inrespectofthefreightbusinessunderthedirectly-operatednetwork,theCompanyadherestothetoneofsteadydevelopmentandprofessionalrefinementorientedforcustomerdemand.Itadoptsthepolicyof"adheretotime-definite,steadystrategyandprofessionalrefinement"tocreatealeadingedgeinmarketcompetition.Inthefirsthalfoftheyear,thesizeoflargeparcelbusinesscontinuedtogrow,andthroughcontinuousinvestmentinresourcestoimprovedeliveryqualitywhileaccuratelyoptimisingcoststructure,theCompanyachievedasubstantialperiod-to-periodincreaseinprofit.
⑴Time-definiteleading：
Maintainingleadershipintime-definitedeliveryisessentialincompetitionoffreightbusiness.TheCompanyhasoptimiseditslandfreightbusinessthroughmultiplemeasures,including,amongothers,directcollectionanddirectdistributionwithoutcentralisedsorting,frequencyenhancementandintensivebulkshifts,strategicinvestmentinkeyroutes,breakthroughstodifferentiatetraditionalregionaldivisionstoimplementnearbytransshipment,andbuscyclingtransportationmodeunderlandnetwork,sothattheaveragedeliverytimeconsumedpereachparceloflargeparcelproductshasshortenedby0.7hours,whichenablestheCompanyto
andcost-effectivenessofgoodsofhighkilograms.SXFreightfranchisingnetworkcontinuedtoexpanditsbusinessscale,whosecargovolumeincreasedbyover30%onperiod-to-periodbasisduringthefirsthalfyear,withthegrowthratecontinuingtobethefirstinfranchisemarket.Ourscaleofless-than-truckloadtransportsteppedintothetopthreeinthefranchiseexpressindustrywithrapidgrowth.SXFreightpracticestheoperatingapproachof"user
IV)Coldchainandpharmaceuticals
Inthefirsthalfof2023,theCompanyrecordedtax-exclusiverevenueofRMB5.34billionfromthecoldchainandpharmaceuticalbusiness,representingaperiod-to-periodincreaseof31.3%.
AccordingtoChinaFederationofLogistics&Purchasing,themarketsizeofChina'scoldchainlogisticsisexpectedtoexceedRMB530.9billionin2023,representingaperiod-to-periodincreaseofapproximately8%.Newbusinessmodessuchaslivestreame-commerceandinstantretailingaredevelopingvigorously,andthepenetrationofdiversifiedandnear-fieldconsumptionoffreshfoodisaccelerating.Ithasbecomeanindustrytrendforfreshfoodretailchannelstobeintegratedonlineandoffline,andtobeextendedtofar-fieldandnear-fielde-commerce.Asaresult,themarketdemandforcoldchainlogisticsservicewithintegratednetwork,hightime-timelinessandhighcosteffectivenessishighlighted.Inthemediumandlongterm,favorablepolicieswillfacilitatestableindustrydevelopment,andrepresentmoredevelopingopportunitiesforspecialisedandnetwork-operatedenterprises.
(1)Seasonablandfreshfoodlogistics:
TheupstreamservicenetworkfortheCompanytofacilitatesalesofagriculturalproductshascoveredmorethan2,700county-leveladministrativedistricts,involvingmorethan6,000freshagriculturalproductsunder226majorcategoriesacrossChina.①Refinedservice:Weintegratedself-ownedall-cargoaircraft,coldchain,warehousingandotherexternalcooperationresources,matchedagriculturalproductswithdifferentvaluehierarchyandtime-definiteneeds,formulateddifferentiatedoperationmodesandrefinedpricinghierarchy,andservedabroaderagriculturalproductmarketwithmorecost-effectiveservice;②Propelproductionandsales:Weactivelyexpandedlivestreammarketingandsubdivisionscenarios,andfacilitatedproductionandmarketingofagriculturalproductsvialivebroadcastingintheoriginsoftheproducts.Besides,wecooperatedcloselywiththelocalgovernment,associationsandleadingbrandsinprepareddishes,lychee,cherry,pruneandothersubdivisionscenarios,andjointlyheldindustrypressconferencestoformulateindustrysupplychainsolutionsandpromotethedevelopmentoftheindustry;③
upgradepackagingmaterials:Takingintoaccountproductcategory,regionaldifferencesandseasonaltemperaturedifferences,wehavedevelopedmoreabundantanddiversifiedpackagingsolutionstomeetthedifferentiatedpackagingneedsofdifferentcustomers.Meanwhile,weconstantlyoptimisethepackagingmaterialsbasedonmarketdemandsandseekthebestprice-performancepackagingsolutionstoenhanceourcompetitivenessincold-chainlogisticspackagingandhelpourcustomersreducecostsandincreaseefficiency.④Improvequality:In2023,SFColdChainrankedfirstforthefiveconsecutivetimesthetitleofTop100ColdChainLogisticsEnterprisesinChina.Atthesametime,wecontinuouslyimproveindustryservicestandardsinvarioussegmentstoestablishahigh-qualitybenchmarkforcoldchainservices.
(3)Pharmaceuticallogistics:
Inthefirsthalfof2023,theCompanybuilttheprofessionalabilityofmarketingandoperationinthefieldofpharmaceuticals,focusingonhighprofitsectorsandestablishingcapabilitybarriersofpharmaceuticalsupplychain.①Pharmaceuticalwarehousing:theCompanybuiltsixGSPcertifiedpharmaceuticalwarehousingcentres,providingdiversifiedsolutionsfordrug&medicaldevicemanufacturinganddistributionenterprises,vaccinemanufacturers,diseasecontrolcentresatalllevels,pharmaceuticals,pharmaceuticale-commerce,pharmacies,etc.,tofacilitatesuccessfulimplementationofanumberofcoopoertaionprojectcswithcustomers.②Precisetemperaturecontrolless-than-truckloadtransport:Withrespecttomedicalclinicalsegment,theCompanyendeavorstoofferprecisetemperaturecontrolledcomprehensiveless-
V)Intra-cityon-demanddelivery
Inthefirsthalfof2023,theCompanyrecordedrevenue(exclusiveoftax)ofRMB3.34billionfromintra-cityon-demanddelivery,representingaperiod-to-periodincreaseof16.2%.
Inthefirsthalfoftheyear,theconsumermarketgraduallyrebounded,merchantscontinuedtoseekmulti-scenarioconsumertraffic,andtheconsumptionhabitof"whatyouseeiswhatyouget"strengthened,whichhaveacceleratedmerchantdemandforhigh-qualityandtimelylogisticsservices.Duringthereportingperiod,intra-cityon-demanddeliveryrecordedsteadyandhigh-qualitygrowthinrevenue.Throughbusinessstructureoptimization,economicsofscaleandnetworkeffects,intra-cityon-demanddeliveryrecordedahistoricallyhighgrossprofitmargin,andrecordednetprofitascomparedwithhistoricalnetloss.
(1)Multipledriversfacilitatehigh-qualitygrowth
Tomerchants,SFIntra-cityiscommittedtoprovidinganopenandinclusiveon-demanddeliverynetwork,togetherwithprofessional,highly-efficientandall-scenariofulfillmentsolutions,toassistmerchantsestablishlogisticsfulfillmentcapabilities:①capturemulti-scenariotrafficopportunities–asoneofthemostextensiveandin-depththird-partyon-demanddeliveryplatforms,establishcloserstrategiccooperationwithprivatedomaintraffic,verticalplatforms,livestreaminge-commerce,andWeChatmini-programs,deepenservicescenariosandscale,andlaunchservicemodelsandstandards,toco-createaplatformecosystem;②Multi-scenarioservicemodelanddifferentiatednetworkcapabilitiesarewell-positionedtomeetthediversifiedon-demandneedsofmerchantsinthefoodandbeverageandnon-foodindustries.Inthefirsthalfof2023,locale-commerce,localservices,andotherhighvalue-addscenariosachievedperiod-to-periodrevenuegrowthofover38%.Thegrowthratesoffoodandbeveragechains,teaandbeverages,pharmaceuticals,beautyandmakeup,maternalandinfantcare,pets,andjewelryexhibitedexceptionalgrowth,whichoptimizedordermix;
③CooperatingwithSFDawang（顺丰大网）tocreateintegratedsolutions,inclosesynergywithvariousbusinesslines,tohelptheCompanyexpanditscustomerbaseand
deliverycapabilitiesandexpandits"two-wheeled+four-wheeled"on-demanddeliverytomeetlong-distanceandheavy-weightdeliverydemands.
Thewell-establisheddeliverycapabilities,andhigh-qualitydynamicnetworkenablesthecompanytofulfilitscommitmenttoprovidinghigh-qualityandreliableservicesevenduringexceptionaltimeperiodssuchase-commerceshoppingfestivals,holidayseasonsandextremeweatherconditions,aswellasaddressnon-standardscenariossuchasmediumandlongdistanceorders.
(3)Technologydrivenplatformwithopenempowermentandpersonalizedcare
SFIntra-city’CityLogisticsSystem(CLS)specificallytargetson-demanddeliveryscenariostofacilitateintelligentbusinessplanningandmarketingmanagement,riderschedulingandsmartorderdistribution,andintelligentoperationoptimisation.Asaneutralandopenthird-partyplatform,itcontinuestoconnectmerchantswithorder
Ⅵ)Supplychainandinternationalbusiness
Inthefirsthalfof2023,theCompanyregisteredtax-exclusiverevenueofRMB28.86billionfromthesupplychainandinternationalbusiness,representingaperiod-to-perioddecreaseof38.0%,mainlyduetosharpfalloftheinternationalairandseafreightdemandandfreightratesfromthefirsthalfof2022tothelevelofthreeyearsagounderthenormalisationofthemarketfromthehistorichighs,resultingtheeffectonperiod-to-periodrevenueoftheCompany'sinternationalfreightandfreightforwardingbusinessinthefirsthalfoftheyear,butthebusinessisstablisedonquarter-on-quarternasosinthesecondquartertosomeextent;atthesametime,theinternationalexpressandthesupplychainbusinessmaintainedasolidperiod-to-periodgrowth.
(1)Internationalexpress
①FocusonSoutheastAsiamarket:TheCompnaytransformandupgradetheoverseasexpressnetworkbasedonthecorecountriesinSoutheastAsia,empoweroverseasexpressoperationwiththematureandleadingnetworkplanning,operationsystem,operationmanagementandotherrichexperiencethatSFhaspossessedinChina,enhanceoverseaslocalexpressservicequality,focuseonprovidinghighqualityservicestomid-to-high-endcustomers;atthesametime,enhanceaviationnetworkplanningandairside/portcapacitybuildinginkeyregions,graduallyimprovethecoverageofoverseasself-operatedoutletsandco-operativeservicepoints,andintegratedomesticandoverseasresourcestoprovidecustomisedindustrysolutionsforcustomersandbuildSoutheastAsiaasaword-of-mouthflow;②Enhancecustomsclearancecapabilities:Wecontinuetointegrateself-operatedandagencycustomsclearanceresources.AsoftheendoftheReportingPeriod,wehavelicencesorresourcesforclearancesinapproximate70customsclearanceportsintheworld,andtheservicesradiatetomajorregionssuchastheAmericas,Japan,SouthKorea,SoutheastAsia,andEurope.ThenumberofdomesticAEOadvancedcertificationsincreasedtoeight,andtheimportandexportcustomsclearanceandend-to-endservicecapabilitieswereimproved;③Deepercoverageinscenariosandrulerefinement:Weconductin-depthstudy
scienceandtechnology,attachedimportancetoenergysavingandemissionreduction,andoptimiseditsoperationalefficiency:①Automobileindustry:Ithasmadeeveryefforttodevelopthelogisticsmarketofnew-energyvehicles,graduallyobtainedtherelevantlicencesandqualifications,anddevelopedanumberofdomesticwell-knownnew-energyvehiclebrandcustomers;②Fastmovingconsumergoodsretailindustry:Itenhancedthesupplychainservicecapabilitythroughequipmentinvestmentandtechnologicalinnovation,effectivelyimprovedthetimelinessofoperationsduringthe618promotionperiodforcustomersinthefast-movingretailindustry,andprovidedcustomerswithsolidsaleslogisticssupport;③high-techsparepartsindustry:
Supplychainserviceshasexpandedtotheindustry'sleadingcompaniesengagedinkeyhigh-techequipmentandproductdesignandproduction,maintainingstablebusinessgrowth;
④Technologyempowerment:Itdifferentiatesandcustomisesthedeploymentoftechnologyproductsaccordingtocustomerneeds.Inthefirsthalfoftheyear,itbuiltahighlycustomised,fullyautomated,intelligentflagshipwarehouseforacustomer,combiningWMS,WCS,RPAdigitalstaffandWESwarehouseequipmentcontrolsystem,supplementedbyintelligenthardwaresuchasautomatedshuttle,AGV,roboticarmsandconveyorbelts,toempowerthecustomer'sdigitalecosystemandintelligentupgrading,andtobuildanend-to-end,intelligent,integratedandconvenientsupplychainservicesystem.NewHAVI:Inthefirsthalfof2023,supportedbythereboundinthecateringandfoodindustry,NewHAVIachievedarapidreboundinrevenueandprofitbyexpandingandconstructingitsnetworkchassis,strengtheningitsinformationsystemandautomationcapabilities,and"expandingthestockandexploringtheincrementalvolume".
3.Operationoptimisation
Inthefirsthalfof2023,theCompanycontinuedtoadheretotheoperatingtoneofsustainableandhealthydevelopment,continuedtodeepenintegrationandchange,upgradedthefour-networkintegrationtomulti-networkintegration(addingintegrationofbusinesssegments),furtherachievingthesynergisticefficiencyoftheGroup'soverallresources;optimisedinamulti-dimensionalwaysuchassitestreamlining,routesstraighteningandloadingrateenhancing,andcombinedwiththeoptimisationoftheoperatingmodeltofurthersimplifytheterminaloperationandoptimisetheterminalnetworkresourcestructure.Meanwhile,intermsofserviceandempowermentofdeliverymen,inthefirsthalfoftheyear,theCompanycontinuedtoincreasetheinvestmentindigitalandtechnologicaltools,improvetheskillstrainingandempowermentofthedeliverymen,effectivelyreducetheirlabourintensity,andhelpthemtoprovidecustomerswithbetterqualityservices.Throughtheaboveinitiatives,accompaniedbytherefinementofmanagementintoanewstage,theCompanyhasfurtherimprovedtheefficiencyofresourceutilisation,resultinganongoingcostoptimisation.
I)Multi-networkintegration
Overalldirection:Buildingontheintegrationinitiativesofthepasttwoyears,weareexploringnewopportunitiesforintegratedscenarios,expandingthescopeofbusinessintegration,enhancingthescalebenefitsofourbusinesssegmentoperations,andincreasingefficiencywhilereducingcosts.
(1)Distribution:①Siteintegration:Wepromotedthecoordinationconstructionoftransitdepots,collectionanddispatchpoints,andwarehousesinvariousbusinessnetworks,andplannedfornewsitedemandsinaunifiedmanner.Inthefirsthalfof2023,77%ofthenewdemandisinlinewithmerit-basedarrangementandconstructionbasedonthreetypes,namely"thesamesite,thesamepark,thesameregion".②Operationintegration:Wehavefurtherstrengthenedtheoperationalintegrationofsitesduringpeakssuchasbusinesspeaksandholidays,concentratedonutilisingsmallsitesduringbusinesspeaks,andtemporarilysuspendedtheoperationofsomedirectlyoperatedlargesites,forexample,alldirectlyoperatedlargesiteswereshutdown
unifiedschedulingofline-haulandshort-haulresources,usedline-haulroutevehiclesforbilateraltaskstoundertakebranchtasksintheidletimeperiodbeforereturning,thustoenhancetheutilisationrateofthevehicle;atthesametime,weintroducedSXFreight'sshort-haulrouteresourcestothecapacityresourcepoolforthefirsttimeandpilotedtheuseofidlebranchlineemptywarehouseresourcesoffranchisee,withmodesbeingopened.Weexpectedmorespaceswouldbeintegratedinthefuture.
(3)Serviceoutlet:①Constructionofintegratednetworks:Wehascontinouslyconstructedintegratednetworkscapableofcollectinganddispatchingsmallandlarge-sizeparcelsandrealisedunifiedoperationmanagementattheserviceoutletsofsmallandlarge-sizeparcels.②Collectinganddispatchingcollaboration:Wehaveintegratedresourcesandbusinessforcouriersofsmallandlargeparcelsatserviceoutletss,givingfullplaytothefunctionsofcouriersoflargeparcelstotakeoverbranchtransportationtasksintheirsparetime,gobackandforthtooutletstopickuplargeandsmallpiecesintheirsparetime,aswellascollectingandtransferringorders,groupcollaboration,containerredeployment,etc.,whichhaveeffectivelypromotedthegrowthofrevenuesfromultra-largeparcelsandreleasedthepressureoncouriers;moreover,wehaveincreasedthecoverageofserviceoutletsthatcandeliverlargeparcelsto93.8%bysupplementingtheabilityofsmalloutletstooperatelargeparcels,deployingshort-haulroutedriverstoassistindispatching,andintegratingwithSXFreightfranchisees.③Transitfordirectdispatch:Bypromotingthemodeoptimisationofsortingatthesortingcenters+goodsdirectlydeliveredtocustomers,wereducedtheinvestmentofserviceoutletsresourcesinthecoverageareaofthetransitdepots.Theaveragedailydirectdispatchvolumereachedmorethan7,400tons.
Ⅱ)Networkoptimisation
(1)Enhancetransitcapacity:Weputintouse45automationequipmentprojectsinthefirsthalfoftheyear,accumulatingatotalof131setsofautomationequipment,andreducedpersonnelinputsbyloweringthelabourintensityofoperators,adoptedunmannedandlessmannedregionaloperations.Wecombinedleanmanagement
controltoolssuchasaccuratepre-dispatchcallcontrol,reminderofdifferencesincollectioninformation,and100%implementationofcustomerpreferencesarelaunchedtorealisetheonlineintelligentlandingofservicestandards,improvecustomerexperience,andimprovetheefficiencyandincomeofcouriers.②Protecttherightsandinterestsofcouriers:amulti-equitysystemfortheworkanddevelopmentofdeliverymenwascreated.Courierswithbetteroverallperformancewillberatedthehigherlevelandhavemoreaccesstorightsandinterests,suchas:rightsofworkinginhigherincomeareabyexcellentcouriers,customerdiscountdistributionauthority,freelivingwelfareandrights,etc.③Digitalqualitymanagement:Thisyear,wepioneeredabrand-newrewardmechanism"FengDou
II.Corecompetitiveness
1.TheCompanyhasanefficientandreliablegloballogisticsinfrastructurenetwork,basedinChina,connectingAsiaandtheworld
AsofendofJune2023,thesortingequipmentinstallationandcommissioninginSF'sEzhoucargohubandlogisticscomplex,andthewhole-sitejointcommissioningwithalllinksoftheairportsystemhavebeenbasicallycompleted.Currently,itisenteringthestageoftrialoperation,andisplannedtobeputintoofficialoperationsuccessivelyinthethirdquarter.TheCompanygraduallyplansandadjuststheaviationnetworktobuildahub-and-spokeairnetworkbyleveragingEzhoucargohub.Itisexpectedtofurtherincreasecitiescoveredwithhightime-definiteservicesandreducetheunitcostofaviationbyaddinglargeaircraft.
2.Basedontheend-to-enddirectlyoperatedmodelwithstrongcontrolandthird-partyindependencepositioning,weprovidecustomerswithmorecomprehensiveend-to-endone-stopintegratedlogisticsservice
Theend-to-enddirectlyoperatedmodelhasstrongcontroloverthelogisticsnetworkandguaranteespremiumservice.TheCompanyadoptsabusinessmodelwithstrongcontrolovertheentirenetwork,whichcontributestoCompany-widetop-downhighlyunifieddevelopmentstrategyandfacilitatestherapidimplementationofbusinessplans,enablingtheCompanytoincubatemorenewbusinessinthematurenetworkwithinashortperiodoftimeandrapidlybecomethemarketleaderinrespectivemarkets,andadapttotheever-changingmarketandmeetthediversifiedneedsofcustomers.Atthesametime,leveraingourstrongcontrolovertheentireend-to-enddeliveryprocess,fromfirst-milepickuptolast-miledelivery,weenhancethestandardisationoftheCompany'soverallservicechainandoperationalplanningandefficiency,utilizingleadingdigitalandintelligentlogisticstechnologies,soastoensurethattheCompanyisabletoprovidecustomerswithconsistentlypremiumservices.
Positionedasanindependentthird-partylogisticsserviceprovider,theCompanyservesabroadercustomerbaseandfacilitatescustomers’omni-channlesexpansion.AmongtheleadingintegratedlogisticsserviceprovidersinChina,theCompanyistheonlyplayerthatisindependentofanyofthee-commerceplatformsandmerchants.TheCompany'sindependenceensuresthatitisabletoserveabroadercustomerbaseinafairandimpartialmanner,whileenablingitscustomerstooperatethroughmultiplechannels,includingonlinee-commerceplatforms,itsownprivateplatforms,andofflineshops,andprovidingcustomerswithinventorymanagementanddistributionfulfilment.Asaresult,utilizingitssmartsupplychaintechnologies,theCompanyfurtherhelpscustomersconnectomni-channelinventorydataandprovideone-stopsmartsupplychainsolutionstoreducecostsandincreaseefficiency,therebyenhancingcustomerstickiness.
Weprovideend-to-endone-stopintegratedlogisticsservicesforcustomersinvariousindustrieswithourcompreshensiveserviceofferingsandintegratedcapabilities.Adheringtothediversification-orientedstrategicplanning,andleveragingthewell-establishedandefficientlogisticsnetwork,through“internalincubation+externalmergersandacquisitions",theCompanyhorizontallybranchedoutintonew
3.Wehavecutting-edgedigitalized,visualizedandintelligenttechnologiestopromotethedevelopmentofsmartsupplychain
SFiscommittedtoestablishingasmartsupplychainecosysteminthedigitaleraandbecomingaleaderinthesmartsupplychainmarket.SFcombinesthemassivedataandindustrysolutionexperiencegainedinitscomprehensiveserviceofferingswithleadingdigitalized,visualized,andintelligentlogisticstechnologiestopromotefull-linksupplychaintechnologyinnovationandhelpclientsinvariousindustriescreateamodernsupplychainsystemwithefficientandpromptresponse.
AsoftheendoftheReportingPeriod,SFhad3,878patentsand2,421softwarecopyrightsineffectandintheprocessoffiling,respectively,withinventionpatentsaccountingfor57.8%ofallpatentsobtained.TheCompanyactivelycooperateswithsocialorganisationssuchasenterprisesinthelogisticsandsupplychainindustry,governmentauthoritiesandagencies,anduniversities,toenhancethesocialinfluenceofSFTechnology.TheCompanyhaswonnumerousawards,suchasthe"SSCL-OutstandingSupplyChainInnovationAward"in2023,theInternationalOrganisationAward"WorldInternetofThingsRankingList"andtherenownedaward"Fortune'sMostInfluentialIoTInnovationList".
(1)Soliddigitalandintelligentfoundation:theconstructionofintercoperabledatabase
Datamiddleplatformsystem:Guidedbyitsstrategy,startingfromitsbusinessoperations,anddrivenbytheoperatingdata,theCompanycontinuedtostrengthenitsdatamiddleplatformsystemtoensureasustainableandhealthybusinessoperations.
TheCompanyiscommittedtodevelopingaunifiedinteroperabledatasystemandareliabledataecosystemtofacilitatetheoperationalimprovementswithspeedyandprecisedata-baseddecision-making.Backedbyitsgovernancestructure,theCompanyhascontinuedtoimprovethecorporategovernancemainlyinthreeaspects,namely,dataapplicationstructure,datasecurityanddataquality,toensureefficient,safeandhigh-qualitydatasharingandreduceduplications.TheCompanyplacesgreatemphasisondata
andadjustmentofvarioustypesofsitesundermulti-networkintegration.Withvariousproductstandardsbearinginmind,wealsoaccuratelymatchaviationtransportationresourcesaccordingtothedynamicchangesinvolumedemandofseasonalfreshfoodandothertypesofgoods.Leveragingalgorithm-backeddynamically-adjustedstrategiesandprograms,wehavebuiltanintegratedmulti-networkgroundtransportationsystemtosupportvariousservicescenarios,suchasnewmodesofgroundtransportation,ground-airresourcecoordination,andflexibleroutingandloadingofoversizedgoodsforairtransportation,soastomaximisetheefficiencyofresourcesallocationandenhancethetimelinessandcompetitivenessofourairandgroundtransportationproducts.
③Real-timescheduling:Utilizingouruniversaloperationmonitoringsystem,wehaveachievedreal-timemonitoring,automateddatacaptureandintelligencewarningsofabnormalsenarios,suchasweatheranomalies,flightdelaysandtrafficcontrol,aswellasthemonitoringofourreal-timeoperationstatus.Therfore,wewouldfurtherrecommendoptimaladjustmentplansintelligentlyandnotifyourfrontierstafftoinvervenetosaveguardtheperformanceofourservicesinatimelymanner,ensureconsistentdeliveryofourproductandprovideproactivecustomerservice.
Ⅱ)Digitalisedandintelligentsorting:Wearecommittedtoestablishingautomated,visualizedandintelligentsortingcenters,creatinganefficientandintelligentlogisticshub.
①Automation:Inthefirsthalfof2023,automationconstructionorupgradeprojectsin45siteshavebeencompleted,thusfurtherimprovedthetransitandsortingcapacityandefficiencyofthewholenetwork.
②Intelligence:Buildupdigitalisedproductionmanagementcapabilityformajorprocesseson-site.Thesystemcanprovidecargoforecastinformationandsitecapacityestimationaboutevery10-mimute,andprovideearlywarningofovercapacityon-site.Sitemanagerscanusethesystemtocapturethepotentialrisksofeachprocessinadvanceandtakemeasurestoavoidthem,makemorerefineddeploymentofequipment,personnel,vehiclesandotherresources,improvethetimelinessofexpressdelivery,andensurethesmoothandorderlyoperationofthesiteduringpeakhours.
provideintelligentresourceplanninganddynamicschedulingsuggestionsatserviceoutletsbycombiningfactorssuchasforecastedparcelvolume,operationaldifficulty,courierprofessionalability,andcouriers’willingnesstorest,soastoreasonablyallocatecollectionanddispatchtasksandimprovecourierserviceability,thusguaranteeingcustomerexperience.Weprovidedifferentiatedsubsidiesbasedonthedifficultyofcollectionanddeliverytasks,modeofoperation,andscenariospecificity,sothatthecourierscangetmorereasonablecompensation.WeoptimisetheonlinedeliverySOP,sothatthesystemwillquicklyformulatepersonalisedoperationalrequirementsandoperationalguidelinesbasedoncustomerpreferences,consignmentcharacteristics,etc.,anddynamicallypushthemtothecellphonesorhandheldterminaldevicesofthecourierstoenhancetheiroperationalstandardisation.Wehavebuiltpackagingrecommendationtoolstoaccuratelyrecommendcorrespondingeco-friendlypackagingsolutionsandmaterialsaccordingtodifferentconsignments,toimprovepackagingquality,toprotectthesafetyofcustomers'shipments,andtoavoidover-packagingandwaste.
②Last-milenetworkconstruction:Weintegratedandupgradedthelast-milecapacityschedulingsystemandoperationaltoolstoachievetheintegrationoflargeandsmallparcelcollectorsanddispatchers,effectivelystrengtheningtheflexibilityofthelast-milecollectionanddeliverycapacity.Atthesametime,wehaveupgradedoursystemcapacitytofurtherenhancethesynergisticcapabilityofvariousendchannels,suchasserviceoutlets,HIVEBoxesandpoststations,tomeetthedifferentiatedneedsofcustomersforreceivinganddeliveringparcelsandtoimprovethecustomerexperiencewhileoptimizingtheresourceutilisationoftheentirelast-milenetwork.
Ⅴ)Digitalisedandintelligentdeliverysafety:
Technologiessuchasbigdataandalgorithmwereappliedtointelligentlycapturesecurityrisksandimprovedeliverysafety.
①WeusebigdataandInternetofThingstechnologytosimulateandmonitorabnormalbehaviourssuchasfalling,squeezing,anddisassemblingofexpressshipments,identifyrisknodesintheoperation,buildariskmanagementplatform,andachieveend-to-endmonitoringbybuildingasub-scenarioearlywarningmodelanddifferentiatedsecuritycontrol
flow,andcompletethetransformationofdataphenomenonintodatastrategy.
Ⅶ)Digitalisedandintelligentcostmanagementandcontrol:Applyingthedigitalsolutionof"full-stackintegration",weopenedasystembaseandsetupadigitalbusinessanalyticssystemcovering"pre-testing–monitoring–post-analysis".Duringpre-testing,weprovidethebasisforfront-enddecision-makingthroughend-to-endproductionmeasurement,residualcapacityandmarginalcostmeasurementandotherdigitalintelligencetools;duringmonitoring,wegeneratemulti-dimensionalin-depthanalysisboardsbasedonmultipleperspectivestomeetthediversifiedmonitoringandanalysisneedsofvariousorganisations;duringpost-analysis,weintelligentlylocatepotentialcostreduction,profitability,andefficiencyscenarios,andpromotetheimprovementofbenefitmanagementandcontrolbymeansofon-linemodelingorsystemlinkage.ThissystemhelpstheGrouptorefinecostmanagementandinputallocation,visualiseprocessanalysis,andachieveclose-loopofpost-analysis,andescortstheCompany'ssustainableandhealthyoperation.
Ⅷ)Digitalisedinternationalbusiness:
Cross-borderexpressnetwork:digitalisationconstructioncoverscross-borderend-to-endcorelinkssuchascollection,transit,customsclearance,airtrunklinesanddelivery.Weprovideoverseascustomerswithamoreconvenientandfriendlyorderingexperiencethroughtheestablishmentofoverseaspaymentcapacityandtheupgradingofoverseascustomerservicetools.Throughdigitaltechnology,weprovidereal-timeshipmenttracking,fastcollectionandcustomsclearanceservices,andrealiseefficientcross-bordertransportationbasedonthe"oneglobalnetwork"routingsystemformedbyintegratingwiththedomesticnetwork,guaranteeingtimelyandsmoothinformationflowandorderlycoordinationofagencyservices.
(3)Applicationofsmartsupplychaintechnologiestoboostthetransformationandupgradeofclients'supplychain
TheCompanyintegratesSF'sexceptionaltechnicalcapabilitiesandindustrialexperiencetoprovidefull-specturm,fully-visialized,one-stopsmartsupplychainsolutions,embed
Chain(丰智云链),FengZhiCloudStrategy(丰智云策)andFengZhiCloudTower(丰智云塔)-fordifferentlevelsofcustomerdemands.
①FengZhiCloudChain:Asupplychainoperationexecutionsystem.Throughmodulessuchasordering,warehousing,transportationandsettlement,itassistsenterprisestoachievetheinteregartionofwarehosinganddistributionandprovideafull-spectrumsupplychainsolutions,includingintelligentstorageandintelligenttransportation.
②FengZhiCloudStrategy:Anintelligentplanning/decision-makingsystemforsupplychain.Itmeetstheintelligentdecision-makingneedsofenterprisesupplychainindifferentstagesofpreparing,planningandexecution
.
SFIntelligentSupplyChainProductsandServices
4.BuildbrandvaluewithexcellentserviceexperienceSFhasbecomethego-tobrandforlogisticsandestablisheditselfasawell-recognisedandreputableexpressdeliveryserviceproviderthroughits30yearsofdevelopment.Ithasbuiltabrandimageof“reliable”,“reliable”and“customer-centric”,createomggreatbrandvaluethroughpremiumyservice,andiswidelyrecognisedbyclients,theindustryandthecommunity.OnAugust2,2023,accordingtothe2023Fortune500listreleasedbytheFortuneMagazine,theCompanyranked377th,representingaraiseof64positionsfromthepreviousyear,onthelistfortwoconsecutiveyears,andisthefirstandonlyChineseprivateexpressdeliverycompanythatlistedintheworld'stop500companies.
III.AnalysisofPrincipalBusiness
1.Overview
Inthefirsthalfof2023,asthedomesticeconomyinChinahadwiderecoveryasaresultofnormalization,gradualimprovementinindustrialproductionandsocialconsumptionlevels,andasaresulttheexpresslogisticsindustryexhibitedrecoverymomentum.Inaddition,withfuelpricedecreasingfromthesameperiodlastyear,theindustryhaswitnessedsteadygrowthandefficiencyimprovements.Nevertheless,duetoglobalmacroeconomicuncertainties,theexpresslogisticsindustrycontinuedtofacesupply-sidegrowthpressure:ononehand,theeffectofChina’seconomicstimuluspoliciestoboostdomesticdemandandconsumptionhasyettobefullyrealized,andtheindustry-widebusinessvolumegrowthhasslowedascompetitionintensifies;ontheotherhand,internationaltradedemandandinternationalairandseafreightpricessignificantlydecreasesafterincreasinginthesecondhalfof2022,affectingtheperiod-to-periodgrowthperformanceofinternationalfreightforwardingbusinessinthefirsthalfof2023,butithasprogressivelystabilizedonamonth-on-monthbasisthisyear.
TheCompanyhasalwaysbeencommittedtotheguidanceofsustainableandhealthydevelopmentthroughimprovingservicequality,strengtheningcompetitiveadvantagesandstreamliningoperationstodrivehealthyrevenuegrowthandcost-efficiencyimprovementsthroughnetworkintegrations,tohelpdeliversubstantialprofitabilitygrowthinthefirsthalfof2023.
I)Revenue:Inthefirsthalfof2023,theCompany’stotalparcelvolume
reached5.88billionorders,withaperiod-to-periodincreaseof14.6%.Inparticular,forthee-commerceexpressindustrywehavebeenfocusedonthemid-to-high-endmarket,andattheendofJunethisyear
NeitherincludingKerryLogistics’volumeofexpresspieces,northebusinessvolumeoftheinternationalfreightandfreightforwardingandsupplychainoftheCompany
II)Profit:TheCompanyrealisedanetprofitattributabletoshareholdersofthelistedcompanyofRMB4.18billioninthefirsthalfof2023,representingaperiod-to-periodincreaseof66.2%,andanetprofitattributabletoshareholdersofthelistedcompanyofRMB3.71billionafterdeductingnon-recurringgainsandlosses,representingaperiod-to-periodincreaseof72.5%.
TheCompanywitnessedarapidperiod-to-periodgrowthinbusinessperformanceinthefirsthalfof2023.Ononehand,theCompanyrealisedhigh-qualitygrowthontherevenueside,andontheotherhand,theCompanycontinuedtopromotemulti-networkintegrationonthecostside,byexpandingthescopeandscenariosofbusinessintegrationwithaccurateresourceplanningandallocation,anddeepeningthetransformationandinnovationofournetworktofurtheroptimiseourcoststructure,whichjointlycontributedtothefurtherimprovementofresourceefficiency.Atthesametime,theCompanytookadvantageoftechnologyempowermenttofurtherdigitaliseoperationsandmanagement,andfurtherdevelopend-to-endfull-spectrumsmartsupplychaintechnologycapabilities,whichcontributedtotherevenuegrowthinbusiness,andcostreductionandefficiencyimprovementoftheCompany.Fordetailsofthespecificmeasuresadoptedforoperationoptimisationandtechnologyempowerment,pleasereferto“4.Operationoptimisation”underthesectionheaded(3)“Summaryofbusinessdevelopment”in“I.BusinessdevelopmentoftheCompany”and“3.Cutting-edge
.
2.Period-on-periodchangesinkeyfinancialdata
Unit：
RMB'000
| TheReportingPeriod | Sameperiodofpreviousyear | Increase/decreaseoverthesameperiodofpreviousyear | Reason | |
| Revenue | 124,365,598 | 130,064,133 | -4.38% | Nomajorchanges. |
| Costofrevenue | 107,555,280 | 113,778,310 | -5.47% | Nomajorchanges. |
| Sellinganddistributionexpenses | 1,392,755 | 1,280,208 | 8.79% | Nomajorchanges. |
| Generalandadministrativeexpenses | 8,940,581 | 8,890,094 | 0.57% | Nomajorchanges. |
| Financialcosts | 992,479 | 905,908 | 9.56% | Nomajorchanges. |
| Incometaxexpenses | 1,526,110 | 1,784,866 | -14.50% | Nomajorchanges. |
| Researchanddevelopmentinvestment | 1,770,946 | 1,653,736 | 7.09% | Nomajorchanges. |
| Netcashflowsfromoperatingactivities | 13,824,827 | 16,712,814 | -17.28% | Nomajorchanges. |
| Netcashflowsfrominvestingactivities | -13,633,590 | -6,824,871 | -99.76% | Mainlyduetotheincreaseinnetoutflowsofstructureddeposits. |
| Netcashflowsfromfinancingactivities | -4,963,638 | -6,665,207 | 25.53% | MainlyduetoadecreaseintherepurchaseoftheCompany'ssharesandtheacquisitionofminorityequity. |
| Netincreaseincashandcashequivalents | -4,645,355 | 3,474,178 | -233.71% | Thespecificreasonsaredetailedintheanalysisofchangesincashflowsfromoperating,investingandfinancingactivitiesabove. |
TherewerenosignificantchangesinthecompositionofCompany'sprofitorsourceofprofitduringtheReportingPeriod.
3.Compositionofrevenue
Unit：
RMB'000
| TheReportingPeriod | Sameperiodofpreviousyear | Changeoverthesameperiodofpreviousyear | |||
| Amount | Proportiontorevenue | Amount | Proportiontorevenue | ||
| Totalrevenue | 124,365,598 | 100% | 130,064,133 | 100% | -4.38% |
| Categorisedbyindustry | |||||
| Logisticsandfreightforwarding | 120,855,099 | 97.18% | 127,691,416 | 98.18% | -5.35% |
| Salesofgoods1 | 2,754,076 | 2.21% | 1,683,873 | 1.29% | 63.56% |
| Others | 756,423 | 0.61% | 688,844 | 0.53% | 9.81% |
| Categorisedbybusiness | |||||
| Time-definiteexpress | 56,069,720 | 45.09% | 49,264,877 | 37.88% | 13.81% |
| Economicexpress | 12,129,430 | 9.75% | 11,806,590 | 9.08% | 2.73% |
| Freight | 15,120,722 | 12.16% | 13,149,344 | 10.11% | 14.99% |
| Coldchainandpharmaceuticals | 5,338,545 | 4.29% | 4,066,199 | 3.13% | 31.29% |
| Intra-cityon-demanddelivery | 3,339,291 | 2.69% | 2,873,634 | 2.21% | 16.20% |
| Supplychainandinternational | 28,857,391 | 23.20% | 46,530,772 | 35.78% | -37.98% |
| Othernon-logisticsbusinesses | 3,510,499 | 2.82% | 2,372,717 | 1.82% | 47.95% |
| Categorisedbyregion | |||||
| MainlandChina | 107,339,757 | 86.31% | 100,436,998 | 77.22% | 6.87% |
| HongKong,Macao,andTaiwan,China | 4,334,903 | 3.49% | 5,695,764 | 4.38% | -23.89% |
| Overseas | 12,690,938 | 10.20% | 23,931,371 | 18.40% | -46.97% |
Note1：
Salesofgoodsmainlycomprisethepurchaseandsalebusinessinvolvedintheprocessofprovidingend-to-endsupplychainservicesforcustomers.Note2：
Anydiscrepanciesbetweentotalsandsumsofthenumbersareduetorounding.Businessvolumeandaveragerevenueperparceloftheexpress&logisticssegment
| TheReportingPeriod | Sameperiodofpreviousyear | Changeoverthesameperiodofpreviousyear | |
| Parcels(100million) | 58.4 | 51.0 | 14.5% |
| Averagerevenueperparcel(RMB) | 15.8 | 15.9 | -0.6% |
Explanationofreasonsforchanges:
(1)Theexpress&logisticssegmentmainlyincludedtime-definiteexpress,economyexpress,freight,coldchainandpharmaceuticals,andintra-cityon-demanddeliverybusiness.Thestatisticsofbusinessvolumeandaveragerevenueperparceloftheexpress&logisticssegmentdidnotincludethedataofthesupplychainandtheinternationalbusinessaswellasothernon-logisticsbusiness.
(2)Thebusinessvolumeoftheexpress&logisticssegmentgrewby14.5%:withthesteadyrecoveryofdomesticindustrialproductionandsocialconsumption,theCompanycontinuedtoprovidecustomerswithtimelyandhigh-qualityservicesbyvirtueofthestableserviceguaranteecapabilityofitsdirectly-operatednetwork,whichcontributedtothegoodgrowthofthebusiness.TheCompanyhasacomprehensiveproductmatrix,whichcanmeetthediversifiedneedsofdifferentcustomers,andthechangeinaveragerevenuepershipmentwasmainlyduetothechangeinproductstructure;theCompanymaintainedahealthyproductstructureasawhole,andmatcheddifferentproductswithappropriateoperationmodesandresources,soastocontinuouslyimprovetheefficiencyoftheproducts.
4.Detailsonmainindustries
Theindustriesaccountingformorethan10%oftheCompany'srevenueoroperatingprofitareanalysedasfollows:
Unit：RMB'000
| Revenue | Costofrevenue | Grossprofitmargin | ||||
| Amount | Increase/decreaseoverthesameperiodofpreviousyear | Amount | Increase/decreaseoverthesameperiodofpreviousyear | Percentage | Increase/decreaseoverthesameperiodofpreviousyear | |
| Logisticsandfreightforwarding | 120,855,099 | -5.35% | 104,565,880 | -6.38% | 13.48% | Up0.95percentagepoints |
Thecostofrevenueandgrossprofitareanalysedasfollows:
Unit：RMB'000
| TheReportingPeriod | Sameperiodofpreviousyear | Changeoverthesameperiodofpreviousyear | ||||
| Amount | Propotiontorevenue | Amount | Propotiontorevenue | Growthrate(%) | Changeasapercentageofrevenue | |
| Labourcost | 49,141,500 | 40.66% | 42,350,198 | 33.17% | 16.04% | Up7.49percentagepoints |
| Transportationcost | 39,307,703 | 32.52% | 54,203,466 | 42.45% | -27.48% | Decreaseof9.93percentagepoints |
| Otheroperatingcosts | 16,116,677 | 13.34% | 15,132,610 | 11.85% | 6.50% | Up1.49percentagepoints |
| Grossprofit | 16,289,219 | 13.48% | 16,005,142 | 12.53% | 1.77% | Up0.95percentagepoints |
Explanationforchanges：
(1)GrossprofitmarginoftheCompany'ssupplychainandfreightforwardingbusinesswas13.48%inthefirsthalfof2023,anincreaseof0.95percentagepointsoverthesameperiodlastyear.ThecoststructureofKerryLogistics’internationalfreightforwardingbusinessissignificantlydifferentfromthatoftheoverallexpresslogisticsbusinessoftheCompany,andtherevenueofthisbusinessdroppedsignificantlycomparedwiththesameperiodofthepreviousyearprimarilycontributetothelargechangeintheproportionoftheCompany'svariouscoststoitsrevenueratio.IfexcludingKerryLogistics,theCompany'sgrossprofitmarginforthemainbusinessinlogisticsinthefirsthalfof2023amountedto14.61%,representinganincreaseof1.56percentagepointsascomparedwiththesameperiodlastyear,andchangeintheproportionofitsmajorcosttorevenueisanalysedin(2)to(4)below;
(2)Labourcostasapercentagetorevenuewasupby7.49percentagepointsperiod-to-period,ifexcludingKerryLogistics,itwasup2.29percentagepointsperiod-to-period,mainlydueto:theCompanytookinitiativestoimprovethecompetitivenessoffrontlineemployeesalaries,promotingeffort-basedcompensation,toexhibitfairnessandenhanceemployeesatisfaction.Inthefirsthalfof2023,theCompanyimproveditsoperationalefficiencyandmitigatedtheriseinlabourcostsbycontinuingtopromotemulti-networkintegration,investinginautomationandoptimisingitsmodesofoperandi,etc.;
(3)Transportationcostasapercentageofrevenuedecreasedby9.93percentagepointsperiod-to-period,ifexcludingKerryLogistics,itwasdown3.79percentagepointsperiod-to-period.Thisismainlyattributableto:
①theCompany'soptimisationoftransportationresourcemixtoimprovetheutilisationrateofdeployabletransportationresources;②theoptimisationoftheprocurementmechanismforoutsourcedtransporationandtheincreaseinthetotalthenumberofoutsourcingcontractsonaperiod-to-periodbasistosupportandstablisetransportationunitcosts;③standardisationoffeedercapacitypricingforbranchrouteto
effectivelycontrolbranchroutecosts;④continualpushinmulti-networkintegration,integratedandcentralizedroute-planningfordifferentbusinesslinesandstreamlinedroutingbyconsolidatingshipmentdeliveriestoachieveeconomiesofscale;⑤theperiod-to-perioddecreaseinfuelprice.
(4)Otheroperatingcostsasapercentageofrevenueincreasedby1.49percentagepointscomparedtothesameperiodlastyear,ifexcludingKerryLogistics,decreasedby0.06percentagepointscomparedtothesameperiodlastyear.ThisisprimarilyachievedbytheCompany'senhancedeffectivenessinmanagingresourcedeployment,whicheffectivelycontrolledincreaseininvestmentinfixedassets(suchassitesandequipment),andthusmaintainedahealthylevelofcapitalexpenditureasapercentageofrevenue.
IV.Non-coreBusinessAnalysis
Unit：RMB'000
| Amount | Proportiontototalprofit | Reason | |
| Otherincome | 747,676 | 13.79% | Mainlyincludinggovernmentgrantsrelatedtodailyactivities. |
| Investmentincome | 500,597 | 9.24% | Mainlyincludingincomefrommaturitystructureddepositsandincomefromthedisposalofsubsidiaries |
| Gainsarisingfromchangesinfairvalue | 21,870 | 0.40% | |
| Reverseofcreditimpairment | 64,802 | 1.20% | |
| Assetimpairmentlosses | 806 | 0.01% | |
| Non-operatingincome | 130,193 | 2.40% | Mainlyincludingcompensationincomeandgovernmentgrantsunrelatedtodailyactivities. |
| Non-operatingexpenses | 188,954 | 3.49% | Mainlyincludinglossesonscrappingofassetsandcompensationexpenses. |
ExplanationonsustainabilityExceptfortheincomefromstructuraldepositsintheinvestmentincome,allotheritemsmentionedabovewerenotsustainable.
V.AnalysisofAssetsandLiabilities
1.Majorchangesinassetcomposition
Unit：RMB'000
| AsattheendoftheReportingPeriod | Asattheendofpreviousyear | Increase/decreaseinproportion | Majorchanges | |||
| Amount | Proportiontototalassets | Amount | Proportiontototalassets | |||
| Cashatbankandonhand | 36,389,283 | 16.69% | 41,062,750 | 18.94% | -2.25% | Fordetails,pleaserefertotheexplanationonchangesincashflowitemsin"2.Period-on-periodchangesinkeyfinancialdata"in"III.AnalysisofPrincipalBusiness"inthissection. |
| Financialassetsheldfortrading | 14,267,643 | 6.54% | 7,385,379 | 3.41% | 3.13% | Mainlyduetotheincreaseinstructureddeposits. |
| Accountsreceivables | 23,444,103 | 10.75% | 25,560,433 | 11.79% | -1.04% | Mainlyduetochangesinoperations. |
| Contractassets | 1,240,787 | 0.57% | 1,522,996 | 0.70% | -0.13% | Nomajorchanges. |
| Inventories | 2,036,256 | 0.93% | 1,948,354 | 0.90% | 0.03% | Nomajorchanges. |
| Investmentproperties | 5,070,539 | 2.33% | 4,875,366 | 2.25% | 0.08% | Nomajorchanges. |
| Long-termequityinvestments | 7,820,999 | 3.59% | 7,858,000 | 3.62% | -0.03% | Nomajorchanges. |
| Fixedassets | 49,779,635 | 22.83% | 43,657,404 | 20.13% | 2.70% | Mainlyduetothetransferfromconstructioninprogress,suchasindustrialparksandtransitdepots. |
| Constructioninprogress | 6,142,994 | 2.82% | 11,149,860 | 5.14% | -2.32% | Mainlyduetothetransfertofixedassetsofprojects,suchasindustrialparksandtransitdepots. |
| Right-of-useassets | 14,705,206 | 6.74% | 15,429,775 | 7.12% | -0.38% | Nomajorchanges. |
| Short-termborrowings | 14,235,961 | 6.53% | 12,837,870 | 5.92% | 0.61% | Mainlyduetonewborrowings. |
| Accountspayable | 22,746,521 | 10.43% | 24,715,352 | 11.40% | -0.97% | Mainlyduetochangesinoperations. |
| Contractliabilities | 1,732,003 | 0.79% | 1,244,418 | 0.57% | 0.22% | Nomajorchanges. |
| Currentportionofnon-currentliabilities | 12,476,732 | 5.72% | 11,173,650 | 5.15% | 0.57% | Mainlyduetotheincreaseinlong-termborrowingsanddebenturespayableduewithinoneyear. |
| Othercurrentliabilities | 1,626,738 | 0.75% | 5,122,276 | 2.36% | -1.61% | Mainlyduetotherepaymentsofextra-shorttermcommercialnotesandshort-termcorporatedebentures. |
| Long-termborrowings | 10,813,082 | 4.96% | 7,472,010 | 3.45% | 1.51% | Mainlyduetonewborrowings. |
| Leaseliabilities | 8,540,047 | 3.92% | 8,582,372 | 3.96% | -0.04% | Nomajorchanges. |
| Retainedearnings | 36,334,035 | 16.66% | 33,371,351 | 15.39% | 1.27% | Mainlyduetothegoodoperatingperformanceduringthecurrentperiod. |
2.Keyoverseasassets
√Applicable□Notapplicable
| DetailsoftheAssets | Reason | AssetsScale(RMB'000) | Location | OperationModel | ControlMeasuresforEnsuringAssetSecurity | ProfitingStatus(RMB'000) | AssetsOverseas/NetAssetsoftheCompany | WhetherThereisSignificantImpairmentRisk |
| 51.52%equityofKerryLogistics | Equityacquisition | 23,603,155 | HongKong(China) | Integratedlogistics,internationalfreightforwardingandsupplychainsolutions | Note1 | 102,409 | 23.32% | No |
| Otherinformation | 1."Assetscale"referstonetassetsofKerryLogistics;2."Profitingstatus"referstonetprofitcontributedbyKerryLogisticsinthefirsthalfof2023,whichisthenetprofitofKerryLogistics,takingintoaccountthefairvalueofidentifiableassetsandliabilitiesatthetimeoftheacquisitionoftheequityofKerryLogisticsandtheimpactofadjustmentsarisingfromadoptingthesameaccountingpolicy.ThenetprofitattributabletoshareholdersoftheparentwasRMB83.039million;profitorlossattributabletominorityshareholdersamountedtoRMB19.370millionandnetprofitattributabletoshareholdersoftheparentafterdeductingnon-recurringprofitorlossascontributedbyKerryLogisticsamountedtoRMB50.236million.3."Assetsoverseas/netassetsoftheCompany"referstonetassetsofKerryLogistics/netassetsoftheCompany. | |||||||
Note1：AsacompanylistedontheHongKongStockExchange,KerryLogistics,andtheCompany,onthebasisofcompliancewiththeA-shareandH-sharelistingrulesandotherrelevantregulatoryregimes,havecarriedoutintegrationatthelevelsofcorporategovernance,informationdisclosureandbusinesscooperation,etc.sinceOctober2021,Mr.WangWei,theChairmanoftheCompany,hasbeenappointedasthechairmanoftheboardofdirectorsandanon-executivedirectorofKerryLogistics,whileMr.HoChitandMr.ChanFei,directorsoftheCompany,havebeenappointedasnon-executivedirectorsofKerryLogistics,participatingincorporategovernanceandmajoroperationaldecisionsofKerryLogistics.Atthesametime,bothpartiesworkcloselyoncorporategovernanceandinformationdisclosuretoensurethatthedisclosureofinformationofbothpartiescomplieswiththeregulatoryrulesforA-shareandH-sharelistedcompanies.Inaddition,bothpartieswillcontinuetoexploretheroomforcollaborationinbusinesstofullycomplementeachother'sstrengthsandtoworktogetherinexpandingthegloballogisticsmarket.
3.Assetsandliabilitiesmeasuredatfairvalue
Unit：RMB'000
| Item | OpeningBalance | ChangesinFairValueGainsandLossesinCurrentPeriod | AccumulatedFairValueChangesIncludedInEquity | ProvisionforImpairmentinCurrentPeriod | AmountofPurchaseinCurrentPeriod | AmountofSalesinCurrentPeriod | OtherChanges | ClosingBalance |
| Financialassets | ||||||||
| 1.Financialassetsheld | 8,397,588 | 28,222 | - | - | 8,015,697 | 38,745 | 332,960 | 16,735,722 |
| fortrading(excludingderivativefinancialassets)note1 | ||||||||
| 2.Derivativefinancialassets | - | - | 10,229 | - | - | - | 516 | 10,745 |
| 3.Investmentsinotherequityinstruments | 7,365,684 | - | -53,984 | - | 36,411 | 133,680 | 240,128 | 7,454,559 |
| Subtotaloffinancialassets | 15,763,272 | 28,222 | -43,755 | - | 8,052,108 | 172,425 | 573,604 | 24,201,026 |
| Others | - | - | - | - | - | - | - | - |
| Total | 15,763,272 | 28,222 | -43,755 | - | 8,052,108 | 172,425 | 573,604 | 24,201,026 |
| Financialliabilities | 96,647 | - | -13,763 | - | - | - | 3,373 | 86,257 |
Note1:Theitemincludesstructureddepositsthatdonotcarrythecharacteristicsofcontractcashflowforprincipalandinterest.Thestructureddepositshaveshortmaturitiesandarehighlyliquid,andnetpurchasesandsalesforthecurrentperiodarestatedinthecurrentperiod.Financialassetsheldfortradingotherthanstructureddepositsarestatedseparatelyattheamountpurchasedandsoldduringtheperiod.
(1)Otherchanges:
Otherchangesinfinancialassetsheldfortradingaremainlyinvestmentincomerealisedbymaturedstructureddeposits,andotherchangesininvestmentsinotherequityinstrumentsaremainlyduetoexchangedifferencesontranslationofforeigncurrencyfinancialstatements.
(2)NoneofanysignificantchangesoccurfortheCompany'smajorassetmeasurementattributesduringtheReportingPeriod.
4.LimitationofassetrightsattheendoftheReportingPeriodAttheendoftheReportingPeriod,theCompany'sassetssubjecttolimitedrightsaremainlystatutoryreserveplacedattheCentralBankandthebankborrowingmortgage,detailsofwhichareasfollows:
Unit：
RMB'000
| Amount | Reasonsforlimitation | |
| Cashatbankandonhand | 854,252 | MainlystatutoryreservesintheCentralBank |
| Fixedassets | 538,938 | Bankborrowingmortgage |
| Intangibleassets | 267,554 | Bankborrowingmortgage |
| Investmentproperties | 108,394 | Bankborrowingmortgage |
| Total | 1,769,138 |
VI.InvestmentsAnalysis
1.Overview
| InvestmentamountduringtheReportingPeriod(RMB'000) | Investmentamountinthesameperiodoflastyear(RMB'000) | Percentagechange |
| 8,341,109 | 8,489,690 | -1.75% |
BreakdownitemsofcapitalexpenditureduringtheReportingPeriodareindicatedinthetablebelow:
| Item | InvestmentAmountDuringtheReportingPeriod(RMB'000) |
| Sortingcentre | 2,866,718 |
| Aircraft | 940,397 |
| Warehouse | 628,845 |
| Vehicle | 516,844 |
| Information&technologyequipment | 300,269 |
| Officeandbuildings | 220,626 |
| Land | 9,544 |
| Equityinvestments | 2,391,922 |
| Others | 465,944 |
| Total | 8,341,109 |
2.SignificantequityinvestmentobtainedduringtheReportingPeriod
□Applicable?Notapplicable
3.Significantnon-equityinvestmentongoingduringtheReportingPeriod
□Applicable?Notapplicable
4.Investmentsinfinancialassets
(1)Investmentsinsecurities
Unit：RMB'000
| Securitytype | Stockcode | Abbreviationofsecurity | Initialinvestmentcost | Accountingmeasurementmodel | Openingbookvalue | Gainsandlossesfromchangesinfairvalueduringtheperiod | Accumulatedfairvaluechangesincludedinequity | Purchaseamountduringtheperiod | Salesamountduringtheperiod | Gainsandlossesduringtheperiod | Closingbookvalue |
| Domesticandoverseasstocks | 300771 | ZhilaiSciandTech | 21,377 | Fairvaluemeasurement | 88,844 | - | -16,317 | - | - | 1,998 | 72,527 |
| Domesticandoverseasstocks | GB00BLH1QT30 | Samarkand | 28,800 | Fairvaluemeasurement | 12,170 | - | -5,984 | - | - | - | 6,261 |
| Othersecuritiesinvestmentsheldattheendoftheperiod | 144,663 | Fairvaluemeasurement | 57,920 | - | -20,616 | - | - | - | 38,206 | ||
| Total | 194,840 | -- | 158,934 | - | -42,917 | - | - | 1,998 | 116,994 | ||
| DisclosureDateofBoardAnnouncementinrespectofSecuritiesInvestmentApproval | Notapplicable | ||||||||||
| DisclosureDateofShareholdersMeetingAnnouncementinrespectofSecuritiesInvestmentApproval | Notapplicable | ||||||||||
Note:Theaccountingitemsoftheabovedomesticandforeignstocksareall"investmentsinotherequityinstruments",andthecapitalsourceis"self-ownedfunds".
(2)Investmentsinderivatives
Unit：RMB'000
| TypeofderivativesInvestment | Initialinvestmentamount | Gainsandlossesfromchangesinfairvalueduringtheperiod | Accumulatedfairvaluechangesincludedinequity | Purchaseamountduringthereportingperiod | Salesamountduringthereportingperiod | Closingbalance | ProportionofinvestmentamountattheendoftheperiodtonetassetsoftheCompanyattheendoftheReportingPeriod |
| ForwardExchange | 3,626,250 | -4,095 | -3,262 | N/A | N/A | 3,626,250 | 3.58% |
| Total | 3,626,250 | -4,095 | -3,262 | N/A | N/A | 3,626,250 | 3.58% |
| ExplanationofwhethertheaccountingpoliciesandaccountingprinciplesofhedgingduringtheReportingPeriodaresignificantlychangescomparedwiththepreviousReportingPeriod | No | ||||||
| Descriptionofactualgains/lossesduringtheReportingPeriod | Theactualgains/lossesduringthereportingperiodreferstothechangeinfairvalueofderivativefinancialinstrumentsincludedinequityduringtheperiod,andtheactualgainsfortheperiodamountedtoRMB23.992million. | ||||||
| Descriptionofhedgingeffects | TheCompany'sderivativeinvestmentbusinessmainlyconsistsofforwardcontractspurchasedin2020,withtheunderlyingassetbeingtheexchangerateandthecurrencyinvolvingUSD/HKD.Themainelementsare:operationofforwardforexhedgingfortheCompany'sUSdollarbonds,whichgeneratesexchangelossesontheUSdollarbondsandgainsonchangesinthefairvalueoftheforwardexchangecontractswhentheUSDstrengthensagainsttheHKD.Byutilisingthelock-infunctionofderivativetransactions,theimpactofexchangeratefluctuationsontheCompany'sprofitwaseffectivelyreduced. | ||||||
| Sourceoffundforderivativesinvestment | Self-ownedfunds | ||||||
| RiskanalysisandcontrolmeasuresforderivativespositionsduringtheReportingPeriod(includingbutnotlimitedtomarketrisk,liquidityrisk,creditrisk,operationalrisk,legal | (I)RiskanalysisTheforeignexchangehedgingbusinessiscarriedoutbytheCompanybasedontheprinciplesoflawfulness,prudence,safetyandeffectiveness,andnotforspeculativepurposes.Allforeignexchangehedgingtransactionsarederivedfromnormalcross-borderbusiness,butcertainrisksmayexistinforeignexchangehedgingtransactions.1.Marketrisk:TheforeignexchangehedgingbusinesscarriedoutbytheCompanyanditssubsidiariesmainlyinvolvesdailycross-borderintermodaltransportationfeesandinvestmentandfinancingactivitiesdenominatedinforeigncurrenciesrelatedtothemainbusiness.Theassociatedmarketriskreferstolosseswhichmayarisefromchangesinpriceofforeignexchangehedgingproductsduetofluctuationsinmarketpricesofunderlyingexchangeratesandinterestrates.2.Liquidityrisk:Sinceallforeignexchangehedgingbusinessisconductedthroughfinancialinstitutions,wearesubjecttotheriskofhavingtopayfeestobanks | ||||||
| risk,etc.) | causedbyinsufficientliquidityinthemarket.3.Non-performancerisk:TheCompanyanditssubsidiariesconductforeignexchangehedgingbusinessmainlybasedoncashflowrollingforecastsforriskmanagement.Wearesubjecttotheriskthattheactualcashflowdeviatesfromforecast,resultinginfailuretofulfilobligationsunderrelevanthedgingcontractswhendue.4.Otherrisks:Inthecourseofbusiness,ifthepersonconcernedfailstoreportandseekapprovalinaccordancewiththeprescribedprocedures,orfailstomakerecordsonforeignexchangehedgingbusinessaccurately,timelyandcompletely,lossesmaybeincurredortradingopportunitiesmaybelost.Atthesametime,ifthepersonconcernedfailstofullyunderstandthetermsofthetransactioncontractandproductinformation,weareexposedtorelatedlegalrisksandtransactionlossesasaresult.(II)Riskcontrolmeasures1.Clarifythecriteriaofinitiatingtransactionofforeignexchangehedgingproduct:Allforeignexchangehedgingbusinessesarederivedfromnormalcross-borderbusinessforthepurposeofavertingandpreventingexchangerateandinterestraterisk.Noforeignexchangederivativestradingshallbecarriedoutforspeculativepurposes.2.Selectionofproducts:Hedgingproductswithsimplestructure,strongliquidityandcontrollableriskareselectedtocarryoutforeignexchangehedgingbusiness.3.Counterpartyselection:ThecounterpartiesoftheCompany'sforeignexchangehedgingbusinessarelargestate-ownedcommercialbanksandinternationalbankswithsoundoperation,goodcredit,longhistoryofcooperationwiththeCompanyandgoodcreditstanding.4.Determinationoffairvalueofforeignexchangehedgingproducts:TheforeignexchangehedgingproductsoperatedbytheCompanyaremainlyforthemanagementofforeignexchangetransactionsinthepredictablefutureperiod,withhighmarkettransparencyandactivetrading;thetransactionpriceandsettlementunitpriceofwhichcanfullyreflecttheirfairvalue.TheCompanydeterminesthefairvalueofthehedgingproductsinaccordancewiththetransactiondataprovidedbyorobtainedfromthepublicdomainincludingbanksandReuters.5.Equippedwithprofessionalstaff:TheCompanyhasmaintainedateamofprofessionalswithexpertiseinfinancialderivatives,responsiblefortheCompany'sexchangerateriskmanagement,marketanalysis,productresearchandtheCompany'soverallmanagementpolicyrecommendations,etc.6.Establishingacomprehensiveriskalarmandreportingmechanism:TheCompanysetsrisklimitsforforeignexchangehedgingbusinesswheretransactionshavebeenmade,timelyevaluateschangesinriskexposureandderivedgainsandlosses,andprovidesregularriskanalysisreporttothemanagementandtheBoardofDirectors.Appropriateriskassessmentmodelsormonitoringsystemsareusedtocontinuouslymonitorandreportvariousrisks.Morefrequentreportsaremadewhenthemarketfluctuatesdrasticallyorwhenrisksarehigher.Aresponseplanwillbemadepromptly.7.Separationofdutiesandpersonnelbetweenthefrontendandbackendisstrictlyimplemented.Dealerscannotconcurrentlyholdthepositionasaccountingpersonnelandviceversa. |
| ChangesinmarketpriceorfairvalueofinvestedderivativesduringtheReportingPeriod(thespecificmethods,relevantassumptionsandparametersusedintheanalysisofthefairvalue | TheCompany'sanalysisofthefairvalueofderivativesisbasedonthefinancialmarketfairvaluevaluationreportprovidedbythebankatmonthend. |
| shouldbedisclosed) | |
| Lawsuit(ifapplicable) | N/A |
| DisclosureDateofBoardAnnouncementinrespectofDerivativesInvestmentApproval(ifany) | 24March2020,31March2022,29March2023 |
| DisclosureDateofShareholdersMeetingAnnouncementinrespectofDerivativesInvestmentApproval(ifany) | N/A |
| OpinionsofindependentdirectorsontheCompany'sderivativesinvestmentandriskcontrol | TheindependentdirectorsbelievedthattheCompanyhadestablishedaninternalcontrolsystemforforeignexchangehedgingandeffectiveriskcontrolmeasuresinaccordancewiththerequirementsstipulatedbyrelevantlaws.UnderthepremiseofcomplyingwithnationallawsandregulationsandensuringthattheCompany'sdailyoperationwerenotaffected,theCompanyuseditsownfundstocarryoutforeignexchangehedgingwhenappropriate,whichwasconducivetopreventinginterestrateandexchangeraterisks,reducingtheimpactofmarketfluctuationsontheCompany,inlinewiththeinterestsoftheCompanyandallshareholdersandwasnoharmtotheCompanyandallshareholders,especiallytheinterestsofminorityshareholders. |
5.Useofproceeds
(1)Descriptionofoverallutilisationofproceeds
Unit：RMB'000
| Year | Methodoffundraising | Totalofproceeds | Totalproceedsusedinthecurrentperiod | Accumulativeproceedsused(Note1) | TotalproceedswithusagealteredintheReportingPeriod | Accumulativeproceedswithusagealtered | Proportionofaccumulativetotalproceedswithusagealtered | Totalunusedproceeds | Usageandallocationofunusedproceeds | Proceedsidleforovertwoyears |
| 2021 | Non-publicofferingofshares | 19,907,320 | 1,178,911 | 18,285,845 | 1,400,000 | 1,400,000 | 7.03% | 1,898,316 | ThebalanceofstructureddepositpurchasedascashmanagementofunusedproceedswasRMB1,130millionwiththeremainingunusedproceedsheldinaspecialaccount | - |
| Total | -- | 19,907,320 | 1,178,911 | 18,285,845 | 1,400,000 | 1,400,000 | 7.03% | 1,898,316 | -- | - |
| Descriptionorofoverallutilisationofproceeds | ||||||||||
| Asof30June2023,theaccumulatedraisedfundsappliedfortheExpressDeliveryEquipmentAutomationUpgradeProject,theConstructionProjectofHubeiEzhouCivilAirportTransitCentre,theConstructionProjectofDigital-intelligentSupplyChainSystemSolution,theLandTransportCapacityImprovementProject,theAviationMaterialsPurchasingandMaintenanceProjectandusedasReplenishmentofLiquiditywereRMB6,148,719,000,RMB2,167,791,000,RMB2,940,679,000,RMB1,925,410,000,RMB1,803,245,000andRMB3,300,001,000,respectively. | ||||||||||
(2)Investmentcommitmentinrespectofproceeds
Unit：
RMB'000
| Projectinvestmentcommitmentandallocationofsurplusproceeds | Whetherprojecthasbeen(orpartially)altered | Totalcommittedinvestmentbasedonnetproceeds | Totalinvestmentafteralteration(1) | Investmentinthecurrentperiod | Accumulativeinvestmentattheendoftheperiod(2) | Investmentprogressattheendoftheperiod(3)＝(2)/(1) | Dateofassetreadyforintendeduse | Benefitsachievedinthecurrentperiod | Whetherexpectedbenefitshavebeenachieved | Whetherthefeasibilityofprojecthaschangedsignificantly |
| Projectinvestmentcommitment | ||||||||||
| 1.ExpressDeliveryEquipmentAutomationUpgradeProject | No | 6,000,000 | 6,942,579 | 106,140 | 6,148,719 | 88.57% | 31December2023 | Note2 | N/A | No |
| 2.ConstructionProjectofHubeiEzhouCivilAirportTransitCentre | No | 4,000,000 | 2,600,000 | 50,316 | 2,167,791 | 83.38% | 31December2023 | Note3 | N/A | No |
| 3.ConstructionProjectofDigital-intelligentSupplyChainSystemSolution | No | 3,000,000 | 3,000,000 | 197,470 | 2,940,679 | 98.02% | 31December2023 | Note4 | N/A | No |
| 4.LandTransportCapacityImprovementProject | No | 2,000,000 | 2,000,000 | 197,075 | 1,925,410 | 96.27% | 31December2023 | Note5 | N/A | No |
| 5.AviationMaterialsPurchasingandMaintenanceProject | No | 1,907,320 | 1,907,320 | 327,910 | 1,803,245 | 94.54% | 31December2023 | Note6 | N/A | No |
| 6.ReplenishmentofLiquidity | No | 3,000,000 | 3,600,000 | 300,001 | 3,300,001 | 91.67% | N/A | Note7 | N/A | No |
| Subtotalofprojectinvestmentcommitments | -- | 19,907,320 | 20,049,899 | 1,178,911 | 18,285,845 | -- | -- | -- | -- | |
| Investmentofsurplusproceeds | ||||||||||
| N/A | ||||||||||
| Total | -- | 19,907,320 | 20,049,899 | 1,178,911 | 18,285,845 | -- | -- | -- | -- | |
| Descriptionofthefailuretoachievetheplannedprogress,andtheexpectedreturnandthereasonsbyproject(includingthereasonsforchoosing"N/A"incaseof"achievingtheexpectedbenefitornot"). | TheaboveprojectsinwhichtheCompanypromisestoinvestareaimedatimprovingtheservicecapacityandoperationalefficiencyoftheoveralllogisticsnetwork,thereforeitisnotpossibletodirectlyquantifythebenefitsachievedbyindividualprojects.SeeNote2toNote7. | |||||||||
| Significantchangesinthefeasibilityofprojects | N/A |
| Amount,usageanduseprogressofsurplusproceeds | N/A |
| Changeinimplementationlocationofinvestmentprojectsfundedbyproceeds | N/A |
| Adjustmenttoimplementationmethodofinvestmentprojectsfundedbyproceeds | N/A |
| Upfrontinvestmentandreplacementofinvestmentprojectsfundedbyproceeds | Afterconsiderationandapprovalatthe19thmeetingofthe5thBoardofDirectorsandthe17thmeetingofthe5thSupervisoryCommitteeconvenedbytheCompanyon28October2021,andwiththeexplicitconsentfromthesponsors,independentdirectorsandtheSupervisoryCommittee,theCompanyreplacedwiththeproceedstheself-raisedfundsofanaggregatedamountofRMB6,338,458,000whichwasinvestedinadvancefortheExpressDeliveryEquipmentAutomationUpgradeProject,theConstructionProjectofHubeiEzhouCivilAirportTransitcentre,theConstructionProjectofDigital-intelligentSupplyChainSystemSolution,theLandTransportCapacityImprovementProject,andtheAviationMaterialsPurchasingandMaintenanceProject.Fordetails,pleaserefertotheannouncementdated29October2021(announcementNo.:2021-118)disclosedbytheCompanyonCninfo(www.cninfo.com.cn). |
| Supplementingworkingcapitaltemporarilywithidleproceeds | N/A |
| Balancesoftheproceedsduringtheprojectimplementationandthereasons | N/A |
| Usageandallocationoftheunusedproceeds | TheunusedproceedsoftheCompanywillbeutilisedfortheexpressdeliveryequipmentautomationupgradeproject,theconstructionprojectofEzhoucivilairporttransitcentreinHubei,theconstructionprojectofdigital-intelligentsupplychainsystemsolution,thelandtransportcapacityimprovementproject,andtheaviationmaterialspurchasingandmaintenanceprojectundertheinvestmentcommitment,whicharealldepositedinthespecialaccountforproceedswiththebanksupervisingtheCompany'sproceeds.Besides,inordertoimprovethereturnoffunds,theCompanyutilisedpartoftheunusedproceedstopurchasecertainwealthmanagementproductswithsecuredprincipalandfixedincomeaccordingtotheResolutionontheUseofPartIdleProceedsforCashManagementasconsideredandapprovedbytheCompanyatthe19thmeetingofthe5thBoardofDirectorsandthe17thmeetingofthe5thSupervisoryCommitteeon28October2021.Asof30June2023,theunusedproceedsoftheCompanywereRMB1,664,054,000,togetherwiththeaccumulatedbankinterestandwealthmanagementincomeofRMB234,262,000,totalingRMB1,898,316,000.TheCompanyhasdepositedthetemporarily-unutilisedproceedsofRMB1,130,000,000bywayofstructureddepositsandtheremainingRMB768,316,000wasdepositedasdemanddepositswithneithermortgageorpledgeoverthecertificateofdepositsnor |
| subjecttolimitedownershiporrightofuse. | |
| Defectsandotherproblemsinutilisationanddisclosureoftheproceeds | N/A |
(3)Statementofchangesinprojectsfundedbyproceeds?Applicable□Notapplicable
Unit：
RMB'000
| Projectafterchange | Correspondingoriginalcommitmentproject | Totalamountofproceedstobeinvestedintheprojectafterchange(1) | ActualinvestmentduringtheReportingPeriod | Actualcumulativeinvestmentasattheendoftheperiod(2) | Investmentprogressattheendoftheperiod(3)=(2)/(1) | Dateofassetreadyforintendeduse | Benefitsachievedinthecurrentperiod | Whetherexpectedbenefitshavebeenachieved | Whetherfeasibilityofalteredprojecthaschangedsignificantly |
| Expressdeliveryequipmentautomationandupgrades | TheconstructionoftheEzhouairporttransshipmentcentreprojectinHubei | 6,942,579 | 106,140 | 6,148,719 | 88.57% | 31December2023 | Note2 | N/A | No |
| Supplementofworkingcapital | 3,600,000 | 300,001 | 3,300,001 | 91.67% | N/A | Note7 | N/A | No | |
| Total | -- | 10,542,579 | 406,141 | 9,448,720 | -- | -- | -- | -- | |
| Explanationofreasonsforchanges,decision-makingproceduresanddisclosureofinformation(byspecificitems) | Asof30June2023,thetotalamountoftheusage-changedproceedsoftheCompanywasRMB1,400million,accountingfor7.03%ofthetotalproceeds.Inaddition,theCompanyusedRMB100millionoftheaccumulatedwealthmanagementreturnsandinterestincomegeneratedthroughtheproceedstomakeadditionalinvestmentsintheoriginalinvestmentprojects.Detailsareasfollows:The2ndmeetingofthe6thsessionoftheBoardofDirectorsoftheCompanyandthe2022AnnualGeneralMeetingoftheCompanyconsideredandpassedthe"ProposalonChangingPartoftheProceeds-financedProjects",andagreedthattheCompanywouldreducetheproceedstowardsthe"constructionoftheEzhoucivilairporttransitcentreprojectinHubei",andwouldusetheabove-decreasedproceedsofRMB1,400million,togetherwiththewealthmanagementreturnsandinterestincomegeneratedthroughtheproceedsofRMB100million,totallingRMB1,500million,toincreaseinvestmentintheoriginalproceeds-financedprojects,namelythe"expressdeliveryequipmentautomationandupgrades"and"supplementofworkingcapital".Fordetails,pleaserefertotheannouncementoftheCompanydisclosedoncninfo(http://www.cninfo.com.cn)on29March2023(AnnouncementNo.2023-018). | ||||||||
| Circumstancesandreasonsfornotmeetingplannedprogressorprojectedbenefits(byspecificitems) | N/A |
| Descriptionofsignificantchangesinthefeasibilityofthechangedproject | N/A |
Note1:"Accumulativeproceedsinvested"includesaccumulativeproceedsinvestedandupfrontinvestmentreplacedafterthereceptionofproceedsofRMB6,338,458,000.Note2:TheprojectaimstoimprovetheCompany'stranshipmentoperationcapacityandefficiency,raisethestorageservicecapacityandquality,enhancethestabilityofthetranshipmentnetworkandstorageservicenetwork,andoptimisecustomerexperienceandsatisfaction,soastofurtherreinforcetheCompany'scorecompetitiveness.Thebenefitsachievedarenotdirectlyquantifiable.Note3:TheprojectaimstoimprovetheCompany'stranshipmentcapacityandoperationefficiency,reduceoveralloperatingcosts,andimprovetheflexibilityandstabilityofthecoretranshipmentnetworktolaythefoundationfortheCompany'slong-termbusinessexpansion.Thebenefitsachievedarenotdirectlyquantifiable.Note4:TheprojectaimstoenrichtheCompany'sdigital-intelligentsupplychainsystemsolutionsfordifferentindustries,effectivelyimprovetheCompany'sone-stopsupplychainserviceability,enhancecustomerengagement,andhelptheCompanybecomeatechnology-drivencomprehensivesupplychainsolutionprovider.Thebenefitsachievedarenotdirectlyquantifiable.Note5:TheprojectaimstoimprovetheCompany'smainandbranchlinetransportationcapacityandtheefficiencyofthe"lastkilometre"networkservice,enhancethesecurityofthetransportationnetwork,andstrengthentheCompany'scorecompetitivenessinexpressandlogisticsservices.Thebenefitsachievedarenotdirectlyquantifiable.Note6:ThisprojectaimstoguaranteethetransportsafetyandoperationefficiencyoftheCompany'sfleetandenhancethestabilityandsecurityoftheairtransportnetwork,inabidtoreinforcetheCompany'scorecompetitivenessincomprehensivelogisticsservices.Thebenefitsachievedarenotdirectlyquantifiable.Note7:ThisprojectaimstoenhancetheCompany'sfinancialstrengthandmeettheworkingcapitalrequirementaftergradualexpansionofmarketshareandoperationscale,whichisconducivetoimprovingtheanti-riskabilityofthelistedCompanyandservingthedevelopmentoftheCompany'smainbusinessandtherealisationoflong-termstrategy.Thebenefitsachievedarenotdirectlyquantifiable.Note8:Anydiscrepanciesbetweentotalsandsumsofthenumbersareduetorounding.
VII.SaleofSignificantAssetsandEquity
1.Saleofsignificantassets?Applicable?NotapplicableTheCompanydidnotsellanysignificantassetsduringtheReportingPeriod.
2.Saleofsignificantequity?Applicable?Notapplicable
| Counterparty | Disposedequityinterest | Disposaldate | transactionprice(RMB000) | NetprofitcontributedbytheequityinteresttothelistedCompanyfromthebeginningoftheperiodtothedateofdisposal(RMB000) | ImpactofthedisposalontheCompany | ProportionofnetprofitcontributedbyequitydisposaltototalnetprofitoflistedCompany | Pricingprinciplesforequitydisposal | Whetheritisarelatedpartytransaction | Relatedpartyrelationshipwiththecounterparty | Whethertheshareholdinginvolvedhasbeenfullytransferred | Whetherithasbeenimplementedasplannedandonschedule,andifnot,disclosethereasonsandthemeasurestakenbytheCompany | Dateofdisclosure | Indexofdisclosure |
| ShenzhenJ&TExpressSupplyChainCo.,Ltd. | 100%equityinterestofShenzhenFengwangInformationTechnologyCo.Ltd. | 27June2023 | 1,183,000 | -551,485 | WillnothaveasignificantimpactontheCompany'sdailyoperatingactivities | 3.72% | fairandequitable | No | No | Yes | Yes | 13May2023 | CNINFO(www.cninfo.com.cn) |
Note:Pursuanttothetransactionagreement,TransitionalGainorLoss,theprofitorlossofthedisposedequityinterestfortheperiodfromthebasedate(31March2023)tothedateofclosing(the"DisposalDate"),shallbeenjoyedorbornebythetransferor.On28August2023,bothpartiestothetransactionconfirmedtheTransitionalGainsorLosses.ConsideringtheTransitionalGainsorLosses,thenetamountactuallypaidbythecounterpartywasapproximatelyRMB461million.
VIII.AnalysisofMajorHoldingandParticipatingCompaniesMajorsubsidiariesandequityparticipationcompaniesthataffecttheCompany'snetprofitbymorethan10%
Unit：RMB'000
| CompanyName | CompanyType | PrimaryBusiness | RegisteredCapital | TotalAssets | NetAssets | Revenue | OperatingProfit | NetProfit |
| ShenzhenS.F.TaisenHolding(Group)Co.,Ltd. | Subsidiary | Investmentsinindustrialbusinesses,investmentconsultingandotherinformationconsulting,supplychainmanagement,assetmanagement,capitalmanagement,investmentmanagement,etc. | 2,020,000 | 66,643,254 | 42,530,808 | 2,957,667 | 519,458 | 448,532 |
(1)DescriptionofMajorHoldingandParticipatingCompaniesThenetprofitrealisedbyShenzhenS.F.TaisenHolding(Group)Co.,Ltd.fortheperiodwasmainlytheprofitgeneratedfromtheCompany'sprimarybusiness.
(2)AcquisitionandDisposalofSubsidiariesDuringtheReportingPeriodFordetails,pleaserefertoNote5totheChapter10FinancialStatements.IX.StructuredEntitiesControlledbytheCompany?Applicable?Notapplicable
X.RisksFacedbytheCompanyandCountermeasures
1.Marketrisk
Riskofmacroeconomicfluctuations:Thelogisticsindustryplaysafundamentalroleinthedevelopmentofthenationaleconomybutitisalsosignificantlyaffectedbydomesticandglobalmacroeconomicconditions.Inrecentyears,China'smacroeconomicgrowthhassloweddownandChinaisundergoingaperiodofeconomicstructuretransition,andthemacroeconomyisexpectedtomoveintoanewphaseofmedium-slowgrowth;theoveralleconomicenvironmentstillfacescomplicatedchallengesalthoughdomesticproductionandconsumptionactivitiesrecoveredinthefirsthalfof2023.Meanwhile,inflation,risingenergyprices,weakconsumerdemand,unstableinternationalrelationsandothernegativefactorshavebecomeobstaclestothegrowthofinternationaltrade.However,withtherecoveryofinternationaltransportcapacityresources,andoversupplyhasledtothegradualdeclineofinternationalairandseatransportpricesfromthehistoricalhighrangetoarelativelylowerlevelof2019.Inaddition,theinternationalfreightindustryishighlycompetitivewithnarrowerprofitmargin.ThesuperpositionofdomesticandforeigneconomicfactorsmayaffectthelogisticsindustryandtheperformanceoftheCompany.
Marketcompetitionrisk:Asthemaindrivingforceforexpressbusinessgrowth,thee-commercemarkethastransitionedfromtheexplosivedevelopmentphaseintonormal-levelsteadygrowth.Withthereductioninincrementalspace,thecompetitionofleadingexpressenterprisesmaybefiercerintheexistingmarkets.Tighterindustryregulation,competitionreturningtothenormallevelandlimitedspaceforcompetitiononpricespromptedmoreexpressenterprisestooffercomprehensivelogisticsservicesratherthanhomogeneousservices,paymoreattentiontoproductservicelayeringandconductcompetitioninmorelogisticssegments.TheCompanyhasbeenforgingdifferentiatedcompetitiveadvantages,andprovidingacompleteproductmatrixinthediversifiedbusinessscope,butundertheimpactofmoreleadingexpressenterprisesgettinginvolvedinthecompetitioninsegments,iftheCompanycannotadjustoperatingstrategies,seizethemarketopportunitiesandmaintainitspositionastheleadingserviceproviderinatimelymanneronthegroundsofmarket
onrelatedpartiestoprotectthelegitimaterightsandinterestsofcouriers,improvethesocialsecuritylevelofthecouriers,implementthemainresponsibilityofthecouriersandstandardizetheenterprisefranchiseandlabourmanagement.Withthestrongerregulation,thecompliancecostandviolationriskoftheexpressdeliveryindustrymayincrease,whichmayhaveanimpactonthedevelopmenttrendandmarketcompetitionlandscapeoftheexpressdeliveryindustry,andmayaffectthefuturebusinessgrowthandperformanceoftheCompany.
Riskresponse：TheCompanyhasestablishedresearchteamsforstateandlocalpoliciesinallbusinessunitstoconductin-depthanalysisonrelevantpoliciesintroduced,fullycapitalisingonfavorablepolicieswhileavoidingpolicyrisksandgraspingindustrypoliciesandhencepromotingbusinessgrowth.Furthermore,theCompanyhasalwaysattachedimportancetotheguaranteeofrightsandinterestsofcouriers,continuallyimprovedthesocialsecuritylevelwhileboostingtheirefficiencyandreducingworkinghourstoraisetheirincomethroughtechnologyempowerment.
Riskfromrelevantstatepoliciesonenvironmentalprotection,energyconservationandemissionreduction:
ChinahasundertakenthatitwillstrivetoreachthepeakofCO
emissionsby2030andachievecarbonneutralityby2060.ItisforeseeablethatChinawillissuesubsequentpoliciesonenvironmentalprotection,energyconservationandemissionreduction.Suchpoliciestobereleasedmayaffecttheserviceandoperationpatternofexpressdeliverycompanies,andmayleadtoincreasedexpensesinrelevantaspectssuchasenvironmentalprotection,energyconservationandemissionreductionincurredbyexpressdeliverycompanies,whichwillposeadverseeffectonthefutureperformanceoftheCompany.Meanwhile,ifcompaniesfailtofulfiltheirgreenenvironmentalobligationsinaccordancewiththelaws,theywillnotonlybeliabletotherelevantlegalobligation,butalsoimpairtheircorporatesocialimages.
Riskresponse:TheCompanytookintoaccounttheexternalenvironmentandpolicychangesaswellastookakeeninsightintothedevelopmenttrendoftheindustry,soastosteerthedirectionoftheindustryandimplementtheforward-lookingdeploymentandadjustment.TheCompanypaidattentiontoitsownimpactsontheenvironment,andin
profitabilityofexpressdeliverycompanies.Ifthepricecontinuestorise,theCompanywillexperiencepressureofincreasedcosts.
Riskresponse:Byfurtheroptimisingthelayoutofoutlets,theCompanyimprovesthescientificityofrouteplanningandtheloadingrateofoperatingroutes,andimprovestheefficiencyofresourceuse;Further,theCompanywillstrengthenpromotionforuseofnewenergyvehiclestoreducetheriskoffuelpricefluctuationstoacertainextent.Meanwhile,theCompanyalsohaswell-establishedoperationandcostmonitoringmechanismsinplace.Whencostsfluctuatesignificantly,operationplansandfuelcostcontrolmeasureswillbedynamicallyadjusted.TheCompanyalsocomprehensivelyevaluatesandexploresmechanismsforchargingappropriatefuelsurchargesaroundspecificproductsbasedonoilpricefluctuations,therebyreducingthenegativeimpactoffuelcostfluctuationsontheCompany.
Riskfrominternationaloperation:WiththedevelopmentoftheCompany'sinternationalbusiness,especiallyaftertheacquisitionofKerryLogistics,theproportionofinternationalbusinesshasexpandedrapidly,andthenumberofcountriescoveredbyserviceshasincreased.Internationallogisticsservicerelyingoninternationaltradeissubjecttotraderelationsandotherunpredictablefactors.Globaleconomicdevelopment,nationalrelationships,internationaltradeandtaxpolicieshaveexperiencedunpredictablechangesandtherearemanyuncertaintiesoninternationaltrade,includingdrasticpricefluctuationsofthetransportationcapacityofinternationalroutes,stableoperationcapabilityforbusinessinsomecountriesandregionsandsoon,whichbringchallengestotheCompany'soperation.IftheCompanyfailstotakeeffectivemeasurestodealwiththis,itmayhaveanadverseimpactontheCompany'sinternationalbusinessdevelopment.
Riskresponse:InthecourseoftheCompany'sbusinessdevelopment,wecontinuetotrackandstudychangesintradepolicies,closelymonitorthemarketdynamicsandadjustourstrategiesforinternationalbusinessoperationinatimelymanner;activelyexploreinternationaltransportationresourcesintermsofthesea,land,airandrail,strengthenthemonitoringofoperationnetworks,andmakeeveryefforttoensurestableandefficientcross-borderservices.Meanwhile,
willdevoteitseffortstostudyandanalyseexchangeratesandinterestrates,closelymonitorchangesintheglobalmarkets,issueearlywarningsintime,andtakecountermeasuresaccordingly.
5.InformationsystemriskInformationsystemrisk:TocopewithbusinessdiversificationattheCompanyandmeetthecomplexanddiverseneedsofcustomers,theCompanyhassetupandappliedvariousinformationsystemsandtechnologies.RapiddevelopmentoftheindustryandtheevolvingmarketplacealsoposeachallengeofrapidchangeintechnologyandservicesontheconstructionofcorebusinesssystemsoftheCompany.WiththewidevarietyandrapidreplacementofprofessionaltechnologiesintheCompany,alongwithemergingnewtechnologies,changesininformationtechnologyandfuturebusinessrequirementsmaycausecertaininformationsystemrisks.AlthoughtheseriesofinformationsecuritymanagementandcontrolmechanismshavebeenestablisheddrawingonthesubstantialamountofdataaccumulatedovertheyearsbytheCompany,therestillexistscertainhumanorsystemcausedinformationsecurityrisks.Andasthetop-levellawsrelatedtodatasecurityandpersonalinformationprotectionareintroduced,andemployees'andusers'awarenessofprivacyprotectionhasenhanced,theregulatorshavesethigherandstricterrequirementsforthestandardisationofdataprocessor,especiallypersonalinformationprocessingactivities.Therefore,companieswithadelugeofpersonalinformationarealsoinevitablyfacingprivacycompliancerisks.
Riskresponse:TheCompanyhasformulatedcomprehensiveresponsemeasuresoverinformationsystemrisks.
Firstly,theCompanycontinuestocarryoutoperationandoptimisationoftheISO27001informationsecuritymanagementsystemandtheISO27701privacyinformationmanagementsystem.TheCompanyimplementsinformationsecuritycontrolandprotectioninallaspectsaccordingtoestablishedpoliciesandstrategiesforinformationsecurity,andcontinuouslyupdatesallproceduresandsystemsforinformationsecurity.Itcontinuouslyreinforcesriskawarenessamongstaffmembers,conductsstafftrainingonoperationstandards,developsinternalinformationcirculation
protectionandbusinesssystem.Additionally,theCompanyhasactivelyparticipatedintheformulationandreviewofvariousinformationsecuritystandardsoftheNational
Chapter4CorporateGovernance
I.DetailsabouttheAnnualGeneralMeetingandExtraordinaryGeneralMeetingsConvenedduringtheReportingPeriod
1.Detailsabouttheshareholders'generalmeetingduringtheReportingPeriod
| Meeting | MeetingType | InvestorParticipation% | DateConvened | DisclosureDate | MeetingResolutions |
| 2022AnnualGeneralMeeting | AnnualGeneralMeeting | 67.2872% | 27April2023 | 28April2023 | "2022AnnualGeneralMeetingResolutions"(2023-035)disclosedbytheCompanyonCNINFO(www.cninfo.com.cn) |
2.ExtraordinaryGeneralMeetingrequestedbypreferredshareholderswithrestitutionofvotingright
□Applicable?NotapplicableII.ChangesofDirectors,SupervisorsandSeniorExecutivesoftheCompany
□Applicable?NotapplicableTherewerenochangesofdirectors,supervisorsandseniorexecutivesoftheCompanyduringtheReportingPeriod,pleaserefertoAnnualReport2022fordetails.III.ProfitDistribution&ConversionofEquityReserveintoShareCapitalDuringtheReportingPeriod
□Applicable?NotapplicableTheCompanyintendstopaynocashdividend,nobonusshares,andnoconversionofequityreserveintosharecapitalforthefirsthalfoftheyear.IV.ExecutionofStockIncentivePlan,EmployeeShareOwnershipScheme,orOtherEmployeeIncentives
□Applicable?□NotapplicableTherewerenostockincentiveplan,employeeshareownershipscheme,orotheremployeeincentivesandtheirexecutionduringthe
ReportingPeriod.
Chapter5EnvironmentandSocialResponsibilities
I.MajorEnvironmentIssuesThelistedCompanyanditssubsidiariesarenotthemajorpollutantdischargeunitsannouncedbytheMinistryofEcologyandEnvironmentDuringtheReportingPeriod,theCompanyanditssubsidiarieswerenotsubjecttoadministrativepenaltiesforenvironmentalissues.Pleaserefertootherenvironmentalinformationdisclosedbymajorpollutantdischargeunits.
□Applicable?Notapplicable
MeasurestakentoreducecarbonemissionsandtheireffectsduringtheReportingPeriod
SFiscommittedtoachievingtheunifiedintegrationofitscorporatevalueandsocialvalue.Asanenterprisewithasenseofsocialresponsibility,SFalwaysadherestothesustainable
andhealthydevelopmentphilosophy,hopingtosetitselfasthebenchmarkcaseintheindustryandbringapositiveimpactontheentireindustryandeventhewholesocietythroughtheoptimisationandupgradeofcorporateoperation.Guidedbytheimplementationofthenationaldualcarbonstrategy,theCompanytakesenvironmentalprotection,energyconservationandemissionreductionasthegoal,andintegratesaddressingclimatechangeintotheCompany'smanagementandoperationpractice,soastoconstantlyimprovetheenvironmentalmanagementsystem.Inordertoactivelybuildsustainablelogistics,SFpromoteslow-carbontransportation,buildsgreenindustrialparks,practicessustainablepackagingandgreentechnologyapplicationandothermeasurestoachievegreenmanagementcoveringthewholelifecycleoflogistics.
Leveragingitspastachievementsofcarbonreduction,theCompanypublisheda"WhitePaperonCarbonGoals",whichisthefirstpublicationoncarbongoalsintheindustry.Inthewhitepaper,theCompanypromisedtoincreaseitscarbonefficiencyby55%in2030ascomparedwiththatin2021,andreducecarbonfootprintperparcelby70%ascomparedwiththatin2021.Fortwoconsecutiveyears,SFhasbeenawardedontheFortuneChinaESGImpactListforitsoutstandingeffortsinimprovingtheenvironment,caringforemployees,andengaginginpublicwelfareandcharity,andalsotheonlynon-state-ownedexpressdeliverycompanyonthelistinChina.
12industrialparks,withanoverallinstalledcapacityofover58MW.Inthefirsthalfof2023,morethan7.3millionkWhofelectricitywasgeneratedfromrenewablesources.
3.ImplementingsustainablepackagingSFkeptonimplementingapackagingcycleecosystem,andactivelycooperatedwithupstreamanddownstreamindustrychainstojointlypromotethedevelopmentofsustainablepackaging.Frompackagingmaterialsmanufacturerstologisticsenterprises,andfromconsumerstorecyclingenterprises,wepromotedtherecyclingofgreenpackaginginthewholesocietybyconnectingalllinks,andpracticedgreenR&Dandgreenoperationthroughoutthelifecycleofrecycledpackaging.
Minimumpackaging:Expresspackagingisanimportantpartofemissionreductionalongthewholelogisticschain.SFcontinuouslypromotedthegreenpackagingplan,andprovideddetailedpackagingoperationinstructionsfordifferenttypesofconsignmentstoimplementthegreenpackagingrequirements.TheCompanyconductsinnovativeresearchanddevelopmentontheminimisation,standardisationandscene-basedapplicationofeighttypesofmaterials,includingplasticbags,plasticpapers,stickersandseals.Inthefirsthalfof2023,atotalofapproximately21,000tonsofrawpaperandapproximately77,500tonsofplasticwerereduced.
Recycledpackaging:Throughtheoperationandmanagementplatformofrecycledpackagingandloaddevices,SFprovidescustomersinsideandoutsidetheindustrywithtotalrecycledpackagingsolutions,anduseswell-developedproductssuchasconfidentialtransportationboxes,airportrecyclingboxes,recyclabletransferboxesforfragilegoods,foodrecyclingboxes,andsolarphotovoltaicpanelrecyclingpackagesfordifferentscenarios.BytheendofJune2023,morethan1.25million"π-boxes"(RecyclableBoxes)werelaunchedandachievingmorethan19millionrecyclingusages.
4.Developinggreentechnology
Throughthedigitalisationofthewholechainoperationofcollectionanddelivery,transferandtransportation,combinedwithbigdataprediction,visualmonitoringandearlywarning,SFachievedintelligentplanningandscheduling,dynamicresourcematchingandefficientflatmanagementinallareas;Inaddition,inordertoimprovetheefficiencyofnetworkoperation,SFincreasesinvestmentinIoT,automationand
II.SocialResponsibilities
Industryservicesforruralrevitalisation:Asoneofthe
earliestexpressenterprisesfocusingonthedeliveryofagriculturalproducts,SFadherestotheprincipleof"racingagainsttime",withcountlesscouriersstationedinthefirstkilometreofthejourneystartingfromtheplacesoforgin,anditsbusinessmodelfrom"farms"tothe"diningtables"hasgainedwidespreadrecognitionfromconsumers.Intheprocessoffurtheradvancingthedevelopmentof"agriculture,ruralareasandfarmers",alargenumberofhigh-qualityagriculturalproductsfromtheplacesoforiginencountervariouschallengesinthecirculationprocess,suchasvulnerability,difficultto
package,complexdistributionchannels,andinabilitytoachieveeconomiesofscale.Theyarealsofacedwithmarketing-relatedproblemssuchaslimitednumberofchannelsavailable,monotonouspresentation,limitedtargetaudiencesizeandinabilitytocreateabrandeffect.Asaresult,good
agriculturalproductsareblockedinthe"farms",andfarmers
havebeenstrugglingtoincreasetheirincome.Althoughthe
marketdemandishuge,itisdifficultforagriculturalproductstobesoldtothebroadermarket.SFadherestotheconceptof
notonlydistributingqualityagriculturalproductstothemarket,butalsopromotingtheexceptionalbrandsofagriculturalproductstothemarket.SFsetsupagriculturalproducecollectionoutletsinfarmfields,developsandinvestsinmobilesortingvehiclessuitableforsmall-batchallocation,launchesfreshproductspretreatmentcentresclosetotheplacesoforigin,andcustomisesdesignforthepackagingofvariousfreshproducts.Intheharvestseasonofcharacteristicagriculturalproducts,inadditiontoairtransportcapacity,high-speedrailwayandcoldchaintransportcapacityaresuperimposedtoensureefficientandhigh-speedtransportofagriculturalproductsacrossthecountry.Furthermore,theCompanyhassetupaspecialprojectteaminthe"freshseason"tomonitorandgivetimelywarningofalllinkssuchascollection,transfer,transportation,deliveryandafter-salesservicewiththehelpofthevisualisationsystembasedonscientificandtechnologicalbigdata,aimingtoensuretheservicequalityinthewholeprocess.SFhasbeenhelpingfarmerstransporthigh-qualityagriculturalproductsfromthefieldsandmountains,deliveringthemtomillionsofhouseholds'diningtables.
Leveragingitsrobustlogisticsnetwork,top-notch
packagingtechnology,andexceptionaldeliverycapability,the
onitsownplatformtoconductsystematicandimpactfuldisseminationofagriculturalproducts.Italsoleveragesexternalresourcestobuildagriculturalproductbrandsandsalesecosystems.TheCompanyconductslivestreamingsalesactivitiesincooperationwiththegovernments,anchorsfromthecustomers,andlocalfruitfarmers.Additionally,itutilisesthepowerofitsbrandmarketingandcollaborateswithInternetcelebrities(KOLs)andinfluencerstoboostlivebroadcastsattheplacesoforgins.Intheprocessofagriculturaldigitalupgradingandtransformation,SFprovidesaseriesoftechnologyservicessuchasproducttraceabilityand"oneQRcodeforeachstore"toshowitscontributiontoruralrevitalisation,allowingmorelocalbrandsoffeaturedagriculturalproductstobeknown,tastedandniserecognisedbypeoplealloverthecountry.Uptonow,theupstreamservicenetworkofagriculturalproductsassistedbySFhascoveredmorethan2,700county-leveladministrativedistricts,servinga
totalof226typesofcharacteristicagriculturalproductsofthree-levelcategorisation,withatotalofmorethan6,000kinds.Inthefirsthalfof2023,theCompanyhasdelivered2.31
Chapter6SignificantEventsI.CommitmentsMadebytheCompany'sActualControllers,Shareholders,RelatedParties,Purchasers,theCompanyandOthersthatWereFulfilledDuringtheReportingPeriodandThoseNotFulfilledbeforetheExpiryasoftheEndoftheReportingPeriod
□Applicable?NotapplicableDuringtheReportingPeriod,therewerenocommitmentsmadebytheCompany'sactualcontrollers,shareholders,relatedparties,purchasers,theCompanyandothersthatwerefulfilledduringtheReportingPeriodandthosenotfulfilledbeforetheexpiryasoftheendoftheReportingPeriodII.StatusofCapitaloftheListedCompanyUsedforNon-operatingPurposesbytheControllingShareholderandOtherRelatedParties
□Applicable?NotapplicableDuringtheReportingPeriod,nocontrollingshareholdersorotherrelatedpartiesusedcapitalofthelistedCompanyfornon-operatingpurposes.III.Non-compliantProvisionofExternalGuarantees
□Applicable?NotapplicableTherewasnonon-compliantprovisionofexternalguaranteesoftheCompanyduringtheReportingPeriod.
IV.DetailsRegardingEngagementandRemovalofAccountantFirmWhethertheinterimfinancialreporthasbeenaudited?
□Yes?NoTheinterimreportoftheCompanyhasnotbeenaudited.
V.ExplanationsProvidedbytheBoardofDirectorsandSupervisoryCommitteeRegardingthe"Non-standardAuditReport"IssuedbytheAuditorfortheReportingPeriod
□Applicable?NotapplicableVI.ExplanationsProvidedbytheBoardofDirectorsRegardingthe"Non-standardAuditReport"ofthePreviousYear
□Applicable?Notapplicable
VII.BankruptcyandReorganisation
□Applicable?NotapplicableTherewerenobankruptcyorreorganisationrelatedmattersoftheCompanyasattheendoftheReportingPeriod.
VIII.LawsuitSignificantlawsuitorarbitration
□Applicable?NotapplicableTherewasnosignificantlawsuitorarbitrationrelatedmattersoftheCompanyduringtheReportingPeriod.Otherlegalproceedings
□Applicable?NotapplicableAsof30June2023,otherlegalproceedingsofthelistedCompanyanditssubsidiarieswereasfollows:
1.ThetotalamountinvolvedinlegalcasesresolvedduringtheReportingPeriodwasRMB412,469,000.
2.CasesnotyetresolvedduringtheReportingPeriodinclude:CasesinvolvingthelistedCompanyanditssubsidiariesasdefendantsamountedtoRMB547,977,000,accountingfor0.64%ofauditednetassetsattributabletoshareholdersofthelistedCompanyattheendof2022.Theabove-mentionedlitigationmattersmainlyrelatedtoanumberofindependentcaseswithsmallamountsinvolvedineachsinglecase,mostofwhichweretransportationservicecases.ThelistedCompanyanditssubsidiarieshavealreadypurchasedcommercialinsuranceforoperatingvehicles,transportationandotherbusinessactivities.CasesinvolvingthelistedCompanyanditssubsidiariesasplaintiffsamountedtoRMB518,558,000,accountingfor0.60%ofauditednetassetsattributabletoshareholdersofthelistedCompanyattheendof2022.SuchlegalproceedingswillnothaveamaterialadverseeffectontheCompany'sfinancialstatusandabilitytocontinueoperations.IX.PunishmentandRectification
□Applicable?NotapplicableX.IntegrityoftheCompany,ItsControllingShareholders,andActualController
□Applicable?Notapplicable
XI.SignificantRelated-partyTransactions
1.Related-partytransactionsrelevanttoroutineoperations
?Applicable?Notapplicable
| RelatedParty | Relationship | Typeofrelated-partytransaction | Detailsofrelated-partytransaction | Pricingprincipleoftherelated-partytransaction | Related-partytransactionprice | Transactionamount(RMB'000) | Proportionofsamecategoryoftransactions | Approvedtransactionquota(RMB'000) | Approvedquotaexceededornot | Related-partytransactionsettlementmethod | Marketpriceofsimilartransactionsavailable | Disclosuredate | Disclosureindex |
| MingdeHoldinganditssubsidiaries | ControllingshareholderoftheCompany | Provideservicestorelatedparties | Courierservice,communicationservice,technologyservices,agentservices,etc. | Fairpricingbasedonmarketpricesfollowingtheprincipleofindependenttransactions. | Contractprice | 45,129 | 0.04% | 150,000 | No | Settlementbasedonthesettlementperiodandtermsinthecontract | Notapplicable | 19November2022 | Announcementonthe"ProposalonEstimatedRoutineRelated-partyTransactionAmountin2023"releasedbytheCompanyontheCninfowebsite(www.cninfo.com.cn) |
| MingdeHoldinganditssubsidiaries | ControllingshareholderoftheCompany | Receiveservicesfromrelatedparties | Technologyservices,agentservices,etc. | 223,842 | 0.21% | 500,000 | No | Notapplicable | 19November2022 | ||||
| MingdeHoldinganditssubsidiaries | ControllingshareholderoftheCompany | Purchaseofgoods/equipmentfromrelatedparties | Purchaseofgoods/equipment | 140,628 | 0.13% | 280,000 | No | Notapplicable | 19November2022 | ||||
| OthercompaniescontrolledbytheactualcontrolleroftheCompany | OthercompaniescontrolledbytheactualcontrolleroftheCompanyotherthan"MingdeHoldingandits | Receiveservicesfromrelatedparties | Agentservices,advertisementservices,etc. | 89,288 | 0.08% | 250,000 | No | Notapplicable | 19November2022 |
| subsidiaries" | |||||||||||||
| CR-SFInternationalExpressCo.,Ltd. | AformerseniormanageroftheCompanyservesasadirectorofCR-SFInternationalExpressCo.,Ltd. | Receiveservicesfromrelatedparties | Transportationservices,etc. | 356,336 | 0.33% | 750,000 | No | Notapplicable | 19November2022 | ||||
| MChinaManagementLimitedanditssubsidiariesanditsfranchisees | AformerdirectoroftheCompanyservesasadirectoroftheparentcompanyofMChinaManagementLimited | Provideservicestorelatedparties | Supplychainserviceanddistributionservice,etc. | 950,938 | 0.76% | 2,100,000 | No | Notapplicable | 19November2022 | ||||
| Total | -- | -- | 1,806,161 | -- | 4,030,000 | -- | -- | -- | -- | -- | |||
| Detailsoflargeamountofsalesreturns | Nil | ||||||||||||
| ActualperformanceintheReportingPeriodversuspredictedtotalamountofroutinerelated-partytransactions,bytypes(ifany) | TheCompany'sthirtiethmeetingofthefifthBoardofDirectorsheldon18November2022andthetwenty-fifthmeetingofthefifthSupervisoryCommitteeandtheThirdExtraordinaryGeneralMeetingofShareholdersof2022on20December2022,respectively,reviewedandapprovedthe"ProposalonEstimatedRoutineRelated-partyTransactionAmountin2023."Theamountincurredbyaforementionedrelated-partytransactionsiswithintheestimatedrange. | ||||||||||||
| Reasonforsignificantdiscrepancybetweenthetransactionpriceandthemarketprice(ifapplicable) | Notapplicable | ||||||||||||
2.Related-partytransactionsrelevanttopurchasesandsalesofassetsorequities
□Applicable?Notapplicable
3.Related-partytransactionswithjointinvestments
□Applicable?NotapplicableTherewerenorelated-partytransactionswithjointinvestmentoftheCompanyasattheendoftheReportingPeriod.
4.Creditsandliabilitieswithrelatedparties
□Applicable?NotapplicableTherewerenocreditsandliabilitieswithrelatedpartiesoftheCompanyduringtheReportingPeriod.
5.TransactionsbetweentheCompanyandfinancialcompanieswithrelatedpartyrelationship
□Applicable?NotapplicableTherewerenodeposits,loans,creditsorotherfinancialbusinessoftheCompanybetweentheCompanyandandfinancialcompanieswithrelatedpartyrelationship.
6.TransactionsbetweenfinancialcompaniescontrolledbytheCompanyandrelatedparties
□Applicable?NotapplicableTherewerenodeposits,loans,creditsorotherfinancialbusinessbetweenfinancialcompaniescontrolledbytheCompanyandrelatedparties.
7.Othersignificantrelated-partytransactions
?Applicable?NotapplicableTherewerenoothersignificantrelated-partytransactionsoftheCompanyduringtheReportingPeriod.
XII.SignificantContractsandTheirExecution
1.Trusteeships,contracts,andleases
(1)Trusteeships?Applicable?NotapplicableTherewerenomaterialtrusteeshipsoftheCompanythatshouldbedisclosedduringtheReportingPeriod.
(2)Contracts?Applicable?NotapplicableTherewerenomaterialcontractsoftheCompanythatshouldbedisclosedduringtheReportingPeriod.
(3)Leases?Applicable?NotapplicableTherewerenomaterialleasesoftheCompanythatshouldbedisclosedduringtheReportingPeriod.
2.Significantguarantees?Applicable?Notapplicable
Unit:RMB'000
| TheCompanyanditssubsidiaries'guaranteestoexternalparties(Guaranteestosubsidiariesarenotincluded) | ||||||||||
| Guaranteedparty | Disclosuredateofrelatedannouncementofguaranteequota | Guaranteequota | Exactdateofoccurrence | Actualguaranteeamount | Typeofguarantee | Collateral(ifany) | Counterguarantee(ifany) | Periodofguarantee | Fulfilledornot | Guaranteeforarelatedpartyornot |
| DHLWeiheng(Zhuhai)SupplyChainManagementCo.,Ltd. | 24March2020 | 147,000 | 31December2020 | 107,213 | Jointandseveralliabilityguarantee | Zhuhaiprojectland | Yes | 15January2021to23December2033 | No | No |
| DHLWeiheng(Zhuhai)SupplyChainManagementCo.,Ltd. | 24March2020 | 147,000 | 31December2020 | 6,162 | Jointandseveralliabilityguarantee | Zhuhaiprojectland | Yes | 15January2021to23June2023 | Yes | No |
| HubeiInternationalLogisticsAirportCo.,Ltd. | 24March2020 | 3,500,000 | 25February2021 | 25,300 | Jointandseveralliabilityguarantee | Nil | Nil | 29September2021to29April2055 | No | No |
| HubeiInternationalLogisticsAirportCo.,Ltd. | 24March2020 | 3,500,000 | 25February2021 | 50,600 | Jointandseveralliabilityguarantee | Nil | Nil | 30November2021to29April2055 | No | No |
| HubeiInternationalLogisticsAirportCo.,Ltd. | 24March2020 | 3,500,000 | 25February2021 | 20,700 | Jointandseveralliabilityguarantee | Nil | Nil | 8October2021to29April2055 | No | No |
| HubeiInternationalLogisticsAirportCo.,Ltd. | 24March2020 | 3,500,000 | 25February2021 | 96,600 | Jointandseveralliabilityguarantee | Nil | Nil | 29November2021to29April2055 | No | No |
| HubeiInternational | 24March2020 | 3,500,000 | 25February | 36,800 | Jointand | Nil | Nil | 1December | No | No |
| LogisticsAirportCo.,Ltd. | 2021 | severalliabilityguarantee | 2021to29April2055 | |||||||
| HubeiInternationalLogisticsAirportCo.,Ltd. | 24March2020 | 3,500,000 | 25February2021 | 46,000 | Jointandseveralliabilityguarantee | Nil | Nil | 3December2021to29April2055 | No | No |
| HubeiInternationalLogisticsAirportCo.,Ltd. | 24March2020 | 3,500,000 | 25February2021 | 276,000 | Jointandseveralliabilityguarantee | Nil | Nil | 1January2022to29April2055 | No | No |
| HubeiInternationalLogisticsAirportCo.,Ltd. | 24March2020 | 3,500,000 | 25February2021 | 23,000 | Jointandseveralliabilityguarantee | Nil | Nil | 4January2022to29April2055 | No | No |
| HubeiInternationalLogisticsAirportCo.,Ltd. | 24March2020 | 3,500,000 | 25February2021 | 69,000 | Jointandseveralliabilityguarantee | Nil | Nil | 5January2022to29April2055 | No | No |
| HubeiInternationalLogisticsAirportCo.,Ltd. | 24March2020 | 3,500,000 | 25February2021 | 46,000 | Jointandseveralliabilityguarantee | Nil | Nil | 27May2022to29April2055 | No | No |
| HubeiInternationalLogisticsAirportCo.,Ltd. | 24March2020 | 3,500,000 | 25February2021 | 69,000 | Jointandseveralliabilityguarantee | Nil | Nil | 30May2022to29April2055 | No | No |
| HubeiInternationalLogisticsAirportCo.,Ltd. | 24March2020 | 3,500,000 | 25February2021 | 23,000 | Jointandseveralliabilityguarantee | Nil | Nil | 31May2022to29April2055 | No | No |
| TotalguaranteequotaapprovedforexternalpartiesduringtheReportingPeriod(A1) | 220,000 | TotalactualamountofguaranteesforexternalpartiesduringtheReportingPeriod(A2) | - | |||||||
| TotalguaranteequotaapprovedforexternalpartiesattheendoftheReportingPeriod(A3) | 3,493,393 | TotalactualguaranteebalanceforexternalpartiesattheendoftheReportingPeriod(A4) | 889,213 | |||||||
| TheCompany'sguaranteestosubsidiaries | ||||||||||
| Guaranteedparty | Disclosuredateofrelatedannouncementofguaranteequota | Guaranteequota | Exactdateofoccurrence | Actualguaranteeamount | Typeofguarantee | Collateral(ifany) | Counterguarantee(ifany) | Periodofguarantee | Fulfilledornot | Guaranteeforarelatedpartyornot |
| SFHOLDINGINVESTMENTLIMITED | 28December2017 | 3,626,250 | 26July2018 | 3,626,250 | Jointandseveralliabilityguarantee | Nil | Nil | 26July2018to26July2023 | No | No |
| SFHOLDINGINVESTMENTLIMITED | 4January2019 | 6,000,000 | 20February2020 | 5,076,750 | Jointandseveralliabilityguarantee | Nil | Nil | 20February2020to20February2030 | No | No |
| SFHoldingInvestment2021Limited | 10February2021 | 18,000,000 | 17November2021 | 2,901,000 | Jointandseveralliabilityguarantee | Nil | Nil | 17November2021to17November2026 | No | No |
| SFHoldingInvestment2021Limited | 10February2021 | 18,000,000 | 17November2021 | 2,175,750 | Jointandseveralliabilityguarantee | Nil | Nil | 17November2021to17November2028 | No | No |
| SFHoldingInvestment2021Limited | 10February2021 | 18,000,000 | 17November2021 | 462,620 | Jointandseveralliabilityguarantee | Nil | Nil | 17November2021to17November2031 | No | No |
| SFHoldingInvestment2021Limited | 10February2021 | 18,000,000 | 18January2022 | 2,901,000 | Jointandseveralliabilityguarantee | Nil | Nil | 18January2022to17November2026 | No | No |
| SFHoldingInvestment2021Limited | 10February2021 | 18,000,000 | 18January2022 | 2,175,750 | Jointandseveralliabilityguarantee | Nil | Nil | 18January2022to17November2031 | No | No |
| TotalguaranteequotaapprovedforsubsidiariesduringtheReportingPeriod(B1) | 100,200 | TotalactualamountofguaranteesforsubsidiariesduringtheReportingPeriod(B2) | - | |||||||
| TotalguaranteequotaapprovedforthesubsidiariesattheendoftheReportingPeriod(B3) | 24,419,320 | TotalactualguaranteebalanceforsubsidiariesattheendoftheReportingPeriod(B4) | 19,319,120 | |||||||
| Subsidiary'sguaranteestosubsidiaries | ||||||||||
| Guaranteedparty | Disclosuredateofrelatedannouncementofguaranteequota | Guaranteequota | Exactdateofoccurrence | Actualguaranteeamount | Typeofguarantee | Collateral(ifany) | Counterguarantee(ifany) | Periodofguarantee | Fulfilledornot | Guaranteeforarelatedpartyornot |
| SubsidiariesofSFHolding(withgearingratioof70%orabove) | 16March201924March202018March20217January202231March202229March2023 | 61,182,992 | Subjecttotheactualguaranteecontract | 19,270,237 | Jointandseveralliabilityguarantee | Nil | Part | Subjecttotheactualguaranteecontract | Partiallyfulfilled | No |
| SubsidiariesofSFHolding(withgearingratiobelow70%) | 15,549,876 | Subjecttotheactualguaranteecontract | 6,152,610 | Jointandseveralliabilityguarantee | Nil | Part | Subjecttotheactualguaranteecontract | Partiallyfulfilled | No | |
| TotalguaranteequotaapprovedforsubsidiariesduringtheReportingPeriod(C1) | 54,679,800 | TotalactualamountofguaranteesforsubsidiariesduringtheReportingPeriod(C2) | 6,765,405 | |||||||
| TotalguaranteequotaapprovedforthesubsidiariesattheendoftheReportingPeriod(C3) | 74,231,304 | TotalactualguaranteebalanceforsubsidiariesattheendoftheReportingPeriod(C4) | 17,697,002 | |||||||
| TotalguaranteeamountprovidedbytheCompany(namelytotalofthefirstthreemajoritems) | ||||||||||
| TotalguaranteequotaapprovedduringtheReportingPeriod(A1+B1+C1) | 55,000,000 | TotalactualamountofguaranteeduringtheReportingPeriod(A2+B2+C2) | 6,765,405 | |||||||
| TotalguaranteequotaapprovedattheendoftheReportingPeriod(A3+B3+C3) | 102,144,017 | TotalactualguaranteebalanceattheendoftheReportingPeriod(A4+B4+C4) | 37,905,335 | |||||||
| Totalguaranteeamount(A4+B4+C4)tonetassetsoftheCompanyattheendoftheReportingPeriod | 42.14% | |||||||||
| Ofwhich: | ||||||||||
| Balanceofguaranteeforshareholders,actualcontroller,andaffiliatesthereof(D) | - | |||||||||
| Balanceofdebtguaranteeprovidedforguaranteedpartywhoseasset-liabilityratioisnotlessthan70%directlyorindirectly(E) | 23,930,744 | |||||||||
| Amountoftotalguaranteeinexcessof50%ofnetassets(F) | - | |||||||||
| Totalamountoftheabovethreeguarantees(D+E+F) | 23,930,744 | |||||||||
| ExplanationonguaranteeliabilitiesoccurredorpossiblejointandseveralliabilitiesofrepaymentwithevidenceduringtheReportingPeriod(ifany)forunexpiredguaranteecontracts | Notapplicable | |||||||||
| Explanationonprovisionofguaranteesforexternalpartiesinviolationoftheprescribedprocedure(ifany) | Notapplicable |
3.Wealthmanagedundertrust?Applicable?Notapplicable
Unit:RMB'000
| Type | FundingSourceforEntrustedFunds | MaximumDailyBalanceofSuchEntrustedFundsDuringtheReportingPeriod | UnexpiredBalance | OverdueOutstandingAmount | ImpairmentProvisionofOverdueOutstandingFunds |
| Bankwealthmanagementproducts | Self-ownedfunds | 22,170,000 | 13,370,000 | - | - |
| Others | Self-ownedfunds | 34,194 | - | - | - |
| Bankwealthmanagementproducts | Raisedproceeds | 2,330,000 | 830,000 | - | - |
| Total | 24,534,194 | 14,200,000 | - | - | |
Note:ThemaximumsingledaybalancesforeachtypeofentrustedwealthmanagementintheabovetableoccurondifferentdatesanddirectsumtotalsdonotrepresentthemaximumsingledaybalancesforalloftheCompany'swealthmanagement.Detailsofindividualitemswithsignificantamountoroflowsafety,poorliquidity,noncapitalguaranteed,highriskwealthmanagementproducts?Applicable?NotapplicableItisexpectedthattheprincipalofentrustedfinancingcannotberecovered,ortheremaybeothercircumstancesthatmayresultinimpairment?Applicable?Notapplicable
4.Othersignificantcontracts
?Applicable?NotapplicableTherewerenosignificantcontractsoftheCompanyintheReportingPeriod.
XIII.OtherSignificantEvents
?Applicable?Notapplicable(I)SubscriptionofperpetualconvertiblebondsissuedbyKerryLogistics
On29March2023,inordertosupportKerryLogistics,acontrollingsubsidiaryoftheCompany,toexpandtheinternationalexpressdeliverybusinessinSoutheastAsia,especiallytosupportthedevelopmentofitssubsidiaryKerryExpress(Thailand)PublicCompanyLimited(stockcode:KEX),SFHoldingLimited(asthesubscriber),awholly-ownedsubsidiaryoftheCompany,enteredintoaSubscriptionandPlacingAgentAgreementwithKerryLogistics(astheissuer)andtheplacingagentinaccordancewiththedevelopmentstrategyoftheCompany,pursuanttowhichSFHoldingLimitedintendstosubscribetheHK$780millionperpetualconvertiblebondsissuedbyKerryLogistics.Asatthedateoftheagreement,theCompanyindirectlyheld51.52%equityinterestof
KerryLogisticsthroughitswholly-ownedsubsidiary.BasedontheinitialconversionpriceofHK$18.8/share,andassumingfullconversionoftheconvertiblebondsinthefuture,theCompany'sshareholdingratioinKerryLogisticswillincreaseto52.61%.ThethirdmeetingofthesixthsessionoftheBoardoftheCompanyconsideredandapprovedtheResolutiononSubscriptionofPerpetualConvertibleBondIssuedbytheControllingSubsidiaryKerryLogistics.DuringtheReportingPeriod,theSubscriptionTransactionhasbeencompleted.(II)Issuanceofdomesticandoverseasdebtfinancingproductsbywholly-ownedsubsidiariesoftheCompany
DuringtheReportingPeriod,pursuanttotheNoticeofAcceptanceofRegistration(ZhongShiXieZhu[2022]No.DFI14)issuedbytheNationalAssociationofFinancialMarketInstitutionalInvestors,ShenzhenS.F.TaisenHoldings(Group)Co.,Ltd.,awholly-ownedsubsidiaryoftheCompany,issuedthefirstandsecondtrancheof2023super&short-termcommercialpaperson16February2023and30March2023,respectively,withatotalissuancesizeofRMB1.5billion.(III)ThePreparationfortheIssueandListingofHShares
Inordertofurtherpromoteitsglobalizationstrategy,buildaninternationalcapitaloperationplatform,enhanceitsinternationalbrandimageandimproveitsoverallcompetitiveness,theCompanyplanstoissueoverseaslistedforeignshares(H-shares)andapplyforlistingontheMainBoardofTheStockExchangeofHongKongLimited(hereinafterreferredtoasthe"IssueandListing").TheCompanyheldthe6thMeetingofthe6thSessionoftheBoardofDirectorsandtheFirstExtraordinaryGeneralMeetingof2023onAugust1,2023andAugust17,2023,respectively,andpassedthe"ProposalontheIssuanceofHSharesandListingoftheCompanyonTheStockExchangeofHongKongLimited"andotherrelevantproposals.TheCompanywilltakeintofullconsiderationtheinterestsoftheexistingshareholdersandtheconditionsofdomesticandoverseascapitalmarkets,andwillselecttimingandwindowasappropriatetocompletetheIssuanceandListingwithinthevalidityperiodoftheresolutionofthegeneralmeeting(i.e.18monthsfromthedateofconsiderationandapprovalatthegeneralmeetingoftheCompany,orsuchotherperiodasmaybeagreedtobeextended).
OnAugust21,2023,theCompanysubmittedtheapplicationfortheIssueandListingtotheHongKongStockExchangeandpublishedtheapplicationprooffortheIssueandListingonthewebsiteoftheHongKongStockExchangeonthesameday.TheIssueandListingoftheCompanyissubjecttotheapproval,ratificationorfilingbytherelevantgovernmentalauthorities,regulatoryauthoritiesandstockexchangessuchastheChinaSecuritiesRegulatoryCommissionandtheHongKongStockExchange,andisstillsubjecttouncertainties.TheCompanywillfulfillitsinformationdisclosureobligationsinatimelymanneraccordingtotheprogressoftheaforementionedmatter.
Thedisclosureindexoftheaboveeventsisasfollows:
| Interimannouncement | Dateofdisclosure | Websitefordisclosure |
AnnouncementontheResultsoftheIssuanceoftheFirstTrancheofSuper&Short-termCommercialPapersfor2023byShenzhenS.F.TaisenHoldings(Group)Co.,Ltd.
| 21February2023 | CNINFO(www.cninfo.com.cn) | |
| AnnouncementonSubscriptionofPerpetualConvertibleBondIssuedbyControllingSubsidiaryKerryLogistics | 29March2023 | CNINFO(www.cninfo.com.cn) |
| AnnouncementontheResultsoftheIssuanceoftheSecondTrancheofSuper&Short-termCommercialPapersfor2023byShenzhenS.F.TaisenHoldings(Group)Co.,Ltd. | 4April2023 | CNINFO(www.cninfo.com.cn) |
| AnnouncementonMattersRelatedtoPlanningfortheissuanceandlistingofHshares | 2August2023 | CNINFO(www.cninfo.com.cn) |
| AnnouncementonSubmissionofApplicationforIssueandListingofOverseas-ListedForeignShares(HShares)totheStockExchangeofHongKongLimitedandPublicationofApplicationMaterials | 2August2023 | CNINFO(www.cninfo.com.cn) |
XIV.SignificantEventsofSubsidiaries
?Applicable?Notapplicable
Chapter7ShareChangesandShareholderDetailsI.ChangesinShares
1.Changesinshares
Unit:numberofshares
| BeforeChange | IncreaseorDecrease(+or-) | AfterChange | |||||||
| Numberofshares | Proportion | Newsharesissued | Bonusshares | Conversionofcapitalreserveintosharecapital | Others | Subtotal | Numberofshares | Proportion | |
| I.Sharessubjecttorestrictedsales | 53,950,335 | 1.10% | - | - | - | -20,370,000 | -20,370,000 | 33,580,335 | 0.69% |
| 1.Sharesheldbystate | - | - | - | - | - | - | - | - | - |
| 2.Sharesheldbystate-ownedlegalperson | - | - | - | - | - | - | - | - | - |
| 3.Othersharesheldbydomesticcapital | 53,950,335 | 1.10% | - | - | - | -20,370,000 | -20,370,000 | 33,580,335 | 0.69% |
| Ofwhich:Othersharesheldbydomesticlegalperson | - | - | - | - | - | - | - | - | - |
| Othersharesheldbydomesticnaturalperson | 53,950,335 | 1.10% | - | - | - | -20,370,000 | -20,370,000 | 33,580,335 | 0.69% |
| 4.Sharesheldbyoverseascapital | - | - | - | - | - | - | - | - | - |
| Ofwhich:Othersharesheldbyoverseaslegalperson | - | - | - | - | - | - | - | - | - |
| Othersharesheldbyoverseasnaturalperson | - | - | - | - | - | - | - | - | - |
| II.Sharesnotsubjecttorestrictedsales | 4,841,252,038 | 98.90% | - | - | - | 20,370,000 | 20,370,000 | 4,861,622,038 | 99.31% |
| 1.RMB-denominatedordinaryshares | 4,841,252,038 | 98.90% | - | - | - | 20,370,000 | 20,370,000 | 4,861,622,038 | 99.31% |
| III.Totalnumberofshares | 4,895,202,373 | 100.00% | - | - | - | - | - | 4,895,202,373 | 100.00% |
Reasonsforsharechanges?Applicable?NotapplicableApprovalofsharechanges
?Applicable?NotapplicableTransferofshareownership?Applicable?NotapplicableImplementationprogressofsharerepurchase?Applicable?NotapplicableTheCompanyconvenedthe28thmeetingofthefifthsessionoftheBoardon22September2022,atwhichtheProposalonthePlanforShareRepurchasebywayofCentralisedBiddingwasconsideredandapproved.Undertheproposal,theCompanywasapprovedtorepurchaseitscertainsharesfortheemployeestockownershipplanorequityincentivewithitsownfunds.ThetotalamountofrepurchaseshallnotbelessthanRMB1,000millionbutnotexceedRMB2,000million,andtherepurchasepriceshallnotexceedRMB70persharewitharepurchaseperiodof12monthsfromthedateofconsiderationandapprovaloftherepurchaseplanbytheBoardofDirectorsoftheCompany.DuringtheReportingPeriod,theCompanyrepurchased1,107,928sharesbywayofcentralisedbidding.Asof30June2023,theCompanyrepurchasedatotalof1,943,128sharesatatotalcostofRMB100,407,837.88(excludingtransactioncosts),accountingfor0.04%ofthecurrenttotalsharecapitaloftheCompany.TheaveragerepurchasepricewasRMB51.67pershare(thehighestrepurchasepricewasRMB54.42pershare,andthelowestrepurchasepricewasRMB48.12pershare).Asof10August2023,theCompanyrepurchasedatotalof20,674,084shares,withatotalrepurchaseamountofRMB1,000,328,880.44(excludingtransactioncosts),andthenumberofsharesrepurchasedaccountedfor0.42%oftheCompany'scurrenttotalsharecapital,withanaveragetradingpriceofRMB48.39/share(withthehighesttradingpriceofRMB54.42/shareandthelowesttradingpriceofRMB45.70/share).Implementationofsharerepurchasereductionthroughcentralisedbidding?Applicable?NotapplicableEffectsofsharechangesonthebasicEPS,dilutedEPS,netassetspershareattributabletoordinaryshareholdersoftheCompany,andotherfinancialindicatorsforthelastyearandthelastreportingperiod?Applicable?NotapplicableOtherinformationthattheCompanyconsidersnecessary,orarerequiredbythesecuritiesregulatoryauthorities,todisclose?Applicable?Notapplicable
2.Changesinrestrictedshares
?Applicable?Notapplicable
Unit:numberofshares
| Nameofshareholder | Restrictedsharesatthebeginningoftheperiod | Numberofrestrictedsharesremovedintheperiod | Numberofrestrictedsharesincreasedintheperiod | Restrictedsharesattheendoftheperiod | Reasonforrestriction | Dateofunlockingrestrictedshares |
| LiuJilu | 41,912,835 | 8,370,000 | - | 33,542,835 | lock-upsharesforsupervisor | 8,370,000lock-upshareswereunlockedatthebeginningof2023 |
| LinZheying | 12,000,000 | 25,000,000 | 13,000,000 | - | lock-upsharesfordirectorwithinsixmonthsafterresignation | 2023/6/20 |
| WangXin | 37,500 | - | - | 37,500 | lock-upsharesfor | - |
| director | ||||||
| Total | 53,950,335 | 33,370,000 | 13,000,000 | 33,580,335 | -- | -- |
II.IssuanceandListingofSecurities
?Applicable?Notapplicable
III.TotalNumberofShareholdersandtheirHoldings
Unit:numberofshares
| TotalnumberofordinaryshareholdersattheendofReportingPeriod | 195,881 | Totalnumberofpreferredshareholderswithvotingrightsrestored(ifany) | - | ||||||
| Ordinaryshareholdersholdingmorethan5%ofsharesorsharesofthetoptenordinaryshareholders | |||||||||
| Nameofshareholder | Natureofshareholder | Shareholdingpercentage | NumberofordinarysharesheldattheendoftheReportingPeriod | IncreaseordecreaseofsharesduringtheReportingPeriod | Numberofrestrictedordinarysharesheld | Numberofnon-restrictedordinarysharesheld | Pledged,markedorfrozenshares | ||
| Statusofshares | Amount | ||||||||
| ShenzhenMingdeHoldingDevelopmentCo.,Ltd. | Domesticnon-state-ownedlegalperson | 48.56% | 2,376,927,139 | -113,000,000 | - | 2,376,927,139 | Pledged | 703,500,000 | |
| HongKongSecuritiesClearingCompanyLtd | Overseaslegalperson | 5.31% | 260,025,952 | -4,392,438 | - | 260,025,952 | - | - | |
| MingdeHolding–HuataiUnitedSecurities–21MingdeEBGuaranteeandTrustPropertySpecialAccount | Domesticnon-state-ownedlegalperson | 4.09% | 200,000,000 | - | - | 200,000,000 | Pledged | 200,000,000 | |
| ShenzhenZhaoguangInvestmentCo.,Ltd. | State-ownedlegalperson | 3.88% | 189,716,864 | -3,558,296 | - | 189,716,864 | - | - | |
| NingboShundaFengrunInvestmentManagementPartnership(LimitedPartnership) | Domesticnon-state-ownedlegalperson | 2.06% | 100,914,904 | -1,420,000 | - | 100,914,904 | - | - | |
| ShenzhenWeishunEnterpriseManagementCo.,Ltd. | Domesticnon-state-ownedlegalperson | 2.04% | 100,000,000 | 100,000,000 | - | 100,000,000 | - | - | |
| LiuJilu | Domesticnaturalperson | 0.85% | 41,453,780 | -3,270,000 | 33,542,835 | 7,910,945 | Pledged | 5,830,000 | |
| ShanghaiChongyangStrategicInvestmentCo.,Ltd.-ChongyangStrategyCaizhiFund | Other | 0.80% | 39,383,422 | 34,000 | - | 39,383,422 | - | - | ||
| LinZheying | Domesticnaturalperson | 0.51% | 25,000,000 | 13,000,000 | - | 25,000,000 | - | - | ||
| ShanghaiChongyangStrategicInvestmentCo.,Ltd.-ChongyangStrategyYingzhiFund | Other | 0.42% | 20,412,381 | 1,000,000 | - | 20,412,381 | - | - | ||
| Strategicinvestororgenerallegalpersonbecomesthetoptenordinaryshareholderduetotheplacementofnewshares(ifany) | Notapplicable | |||||||||
| Explanationonassociatedrelationshiporpersonsactinginconcertbetweentheabove-mentionedshareholders | ShenzhenMingdeHoldingDevelopmentCo.,Ltd.holdsatotalof2,676,927,139sharesintheCompany,accountingfor54.68%oftheCompany'stotalsharecapital,ofwhich2,376,927,139sharesaredirectlyheld,100,000,000sharesareheldthroughitswholly-ownedsubsidiaryShenzhenWeishunEnterpriseManagementCo.,Ltd.,and200,000,000sharesareheldthroughthe"MingdeHolding–HuataiUnitedSecurities–21MingdeEBGuaranteeandTrustPropertySpecialAccount",aspecialaccountforguaranteeandtrustopenedfortheissuanceofexchangeablebonds(EB).TheCompanyisnotcertainastowhetherthereisanassociatedrelationshipbetweentheotherabove-mentionedshareholdersandwhethertheyareactinginconcert. | |||||||||
| Explanationontheabove-mentionedshareholders'involvementinentrustment/entrustedvotingrightsandabstainingfromvotingrights | Notapplicable | |||||||||
| Specialexplanationonthetoptenshareholdershavingspecialrepurchaseaccounts(ifany) | AttheendoftheReportingPeriod,the"SpecialSecuritiesAccountforRepurchaseofS.F.HoldingCo.,Ltd."held40,740,183sharesnotsubjecttotradingrestrictionsonsales.Accordingtorelevantregulations,therepurchaseaccountisnotincludedinthepresentationoftoptenordinaryshareholdersandthetoptenordinaryshareholdersnotsubjecttotradingrestrictionsonsales. | |||||||||
| Toptenordinaryshareholdersholdingunrestrictedshares | ||||||||||
| Nameofshareholder | NumberofunrestrictedordinarysharesheldattheendoftheReportingPeriod | Typeofshares | ||||||||
| Typeofshares | Number | |||||||||
| ShenzhenMingdeHoldingDevelopmentCo.,Ltd. | 2,376,927,139 | RMB-denominatedordinaryshares | 2,376,927,139 | |||||||
| HongKongSecuritiesClearingCompanyLtd. | 260,025,952 | RMB-denominatedordinaryshares | 260,025,952 | |||||||
| MingdeHolding–HuataiUnitedSecurities–21MingdeEBGuaranteeandTrustPropertySpecialAccount | 200,000,000 | RMB-denominatedordinaryshares | 200,000,000 | |||||||
| ShenzhenZhaoguangInvestmentCo.,Ltd. | 189,716,864 | RMB-denominatedordinaryshares | 189,716,864 | |||||||
| NingboShundaFengrunInvestmentManagementPartnership(LimitedPartnership) | 100,914,904 | RMB-denominatedordinaryshares | 100,914,904 | |||||||
| ShenzhenWeishunEnterpriseManagementCo.,Ltd. | 100,000,000 | RMB-denominatedordinaryshares | 100,000,000 | |||||||
| ShanghaiChongyangStrategicInvestmentCo.,Ltd.-ChongyangStrategyCaizhiFund | 39,383,422 | RMB-denominatedordinaryshares | 39,383,422 |
| LinZheying | 25,000,000 | RMB-denominatedordinaryshares | 25,000,000 |
| ShanghaiChongyangStrategicInvestmentCo.,Ltd.-ChongyangStrategyYingzhiFund | 20,412,381 | RMB-denominatedordinaryshares | 20,412,381 |
| NSFPortfolio#112 | 17,580,372 | RMB-denominatedordinaryshares | 17,580,372 |
| Explanationonassociatedrelationshiporpersonsactinginconcertbetweenthetoptenunrestrictedordinaryshareholders,andbetweenthetoptenunrestrictedordinaryshareholdersandthetoptenordinaryshareholders | ShenzhenMingdeHoldingDevelopmentCo.,Ltd.holdsatotalof2,676,927,139sharesintheCompany,accountingfor54.68%oftheCompany'stotalsharecapital,ofwhich2,376,927,139sharesaredirectlyheld,100,000,000sharesareheldthroughitswholly-ownedsubsidiaryShenzhenWeishunEnterpriseManagementCo.,Ltd.,and200,000,000sharesareheldthroughthe"MingdeHolding–HuataiUnitedSecurities–21MingdeEBGuaranteeandTrustPropertySpecialAccount",aspecialaccountforguaranteeandtrustopenedfortheissuanceofexchangeablebonds(EB).TheCompanyisnotcertainastowhetherthereisanassociatedrelationshipbetweentheotherabove-mentionedshareholdersandwhethertheyareactinginconcert. | ||
| Explanationofthetoptenordinaryshareholders'participationinmarginfinancingandsecuritieslendingbusiness(ifany) | Notapplicable | ||
Anyofthetoptenordinaryshareholdersorthetoptennon-restrictedcommonshareholdersoftheCompanyconductedanytransactionofpromissoryrepurchaseornotduringtheReportingPeriod??Applicable?NotapplicableNoneofthetoptenordinaryshareholderorthetoptennon-restrictedordinaryshareholdersoftheCompanyconductedanytransactionofpromissoryrepurchaseduringtheReportingPeriod.
IV.ChangesinSharesHeldbyDirectors,SupervisorsandSeniorManagement
?Applicable?Notapplicable
| Name | Title | Tenurestatus | Quantityofsharesheldatthebeginningoftheperiod(share) | Quantityofsharesincreasedinthecurrentperiod(share) | Quantityofsharesdecreasedinthecurrentperiod(share) | Quantityofsharesheldattheendoftheperiod(share) | Quantityofrestrictedsharesgrantedatthebeginningoftheperiod(share) | Quantityofrestrictedsharesgrantedinthecurrentperiod(share) | Quantityofrestrictedsharesgrantedattheendoftheperiod(share) |
| LiuJilu | Supervisor | Current | 44,723,780 | - | -3,270,000 | 41,453,780 | - | - | - |
| Total | -- | -- | 44,723,780 | - | -3,270,000 | 41,453,780 | - | - | - |
V.ChangeofControllingShareholdersorActualControllers
ChangeofcontrollingshareholdersduringtheReportingPeriod
?Applicable?NotapplicableTherewasnochangeinthecontrollingshareholdersoftheCompanyduringtheReportingPeriod.ChangeofactualcontrollerduringtheReportingPeriod?Applicable?NotapplicableTherewasnochangeintheactualcontrolleroftheCompanyduringtheReportingPeriod.
Chapter8PreferredShares?Applicable?NotapplicableTherewerenopreferredsharesintheCompanyduringtheReportingPeriod.
Chapter9Bonds?Applicable?Notapplicable
[EnglishTranslationforReferenceOnly]
ReviewReportPwCZTYueZi(2023)No.0067
PwCZTYueZi(2023)No.0067TotheshareholdersofS.F.HoldingCo.,Ltd.,
TotheshareholdersofS.F.HoldingCo.,Ltd.,
WehavereviewedtheaccompanyinginterimfinancialstatementsofS.F.HoldingCo.,Ltd.(hereinafter“S.F.Holding”),whichcomprisetheconsolidatedandcompanybalancesheetsasat30June2023,theconsolidatedandcompanyincomestatements,theconsolidatedandcompanycashflowstatementsandtheconsolidatedandcompanystatementsofchangesinequityfortheperiodthenended,andthenotestotheinterimfinancialstatements.ManagementofS.F.HoldingisresponsibleforthepreparationoftheseinterimfinancialstatementsinaccordancewiththerequirementsoftheAccountingStandardsforBusinessEnterprises(“CAS”)32-InterimFinancialReporting.Ourresponsibilityistoissueareviewreportontheseinterimfinancialstatementsbasedonourreview.
WehavereviewedtheaccompanyinginterimfinancialstatementsofS.F.HoldingCo.,Ltd.(hereinafter“S.F.Holding”),whichcomprisetheconsolidatedandcompanybalancesheetsasat30June2023,theconsolidatedandcompanyincomestatements,theconsolidatedandcompanycashflowstatementsandtheconsolidatedandcompanystatementsofchangesinequityfortheperiodthenended,andthenotestotheinterimfinancialstatements.ManagementofS.F.HoldingisresponsibleforthepreparationoftheseinterimfinancialstatementsinaccordancewiththerequirementsoftheAccountingStandardsforBusinessEnterprises(“CAS”)32-InterimFinancialReporting.Ourresponsibilityistoissueareviewreportontheseinterimfinancialstatementsbasedonourreview.
WeconductedourreviewinaccordancewithChinaStandardsonReviewEngagementNo.2101,“ReviewofFinancialStatements”.TheseStandardsrequirethatweplanandperformthereviewtoobtainlimitedassuranceastowhethertheinterimfinancialstatementsarefreeofmaterialmisstatement.Areviewislimitedprimarilytoinquiriesofcompanypersonnelandanalyticalproceduresappliedtofinancialdataandthusprovideslessassurancethananaudit.Wehavenotperformedanauditand,accordingly,wedonotexpressanauditopinion.
WeconductedourreviewinaccordancewithChinaStandardsonReviewEngagementNo.2101,“ReviewofFinancialStatements”.TheseStandardsrequirethatweplanandperformthereviewtoobtainlimitedassuranceastowhethertheinterimfinancialstatementsarefreeofmaterialmisstatement.Areviewislimitedprimarilytoinquiriesofcompanypersonnelandanalyticalproceduresappliedtofinancialdataandthusprovideslessassurancethananaudit.Wehavenotperformedanauditand,accordingly,wedonotexpressanauditopinion.Basedonourreview,nothinghascometoourattentionthatcausesustobelievethattheinterimfinancialstatementsarenotprepared,inallmaterialrespects,inaccordancewithCAS32-InterimFinancialReporting.
Basedonourreview,nothinghascometoourattentionthatcausesustobelievethattheinterimfinancialstatementsarenotprepared,inallmaterialrespects,inaccordancewithCAS32-InterimFinancialReporting.
PricewaterhouseCoopersZhongTianLLP
Shanghai,thePeople’sRepublicofChina28August2023
| PricewaterhouseCoopersZhongTianLLPShanghai,thePeople’sRepublicofChina28August2023 | SigningCPASigningCPA | ——————————LinChongyun——————————LiuYufeng |
S.F.HOLDINGCO.,LTD.CONSOLIDATEDBALANCESHEETASAT30JUNE2023(AllamountsinRMB’000Yuanunlessotherwisestated)[Englishtranslationforreferenceonly]
| ASSETS | Note | 30June2023 | 31December2022 | |
| Consolidated | Consolidated | |||
| (Unaudited) |
Currentassets
| Currentassets | ||||
| Cashatbankandonhand | 4(1) | 36,389,283 | 41,062,750 | |
| Financialassetsheldfortrading | 4(2) | 14,267,643 | 7,385,379 | |
| Notesreceivable | 225,538 | 236,244 | ||
| Accountsreceivable | 4(3) | 23,444,103 | 25,560,433 | |
| Receivablesfinancing | 85,396 | 63,310 | ||
| Advancestosuppliers | 4(4) | 3,013,501 | 3,464,911 | |
| Loansandadvances | 54,846 | 34,212 | ||
| Otherreceivables | 4(5) | 3,480,280 | 3,341,237 | |
| Inventories | 2,036,256 | 1,948,354 | ||
| Contractassets | 1,240,787 | 1,522,996 | ||
| Currentportionofnon-currentassets | 4(7) | 380,975 | 440,739 | |
| Othercurrentassets | 4(6) | 5,233,062 | 5,612,928 | |
| Totalcurrentassets | 89,851,670 | 90,673,493 |
Non-currentassets
| Non-currentassets | ||||
| Long-termreceivables | 4(7) | 482,941 | 631,278 | |
| Long-termequityinvestments | 4(8) | 7,820,999 | 7,858,000 | |
| Investmentsinotherequityinstruments | 4(9) | 7,454,559 | 7,365,684 | |
| Othernon-currentfinancialassets | 2,478,824 | 1,012,209 | ||
| Investmentproperties | 4(10) | 5,070,539 | 4,875,366 | |
| Fixedassets | 4(11) | 49,779,635 | 43,657,404 | |
| Constructioninprogress | 4(12) | 6,142,994 | 11,149,860 | |
| Right-of-useassets | 4(13) | 14,705,206 | 15,429,775 | |
| Intangibleassets | 4(14) | 18,784,689 | 19,176,684 | |
| Capitaliseddevelopmentexpenditures | 4(15) | 318,560 | 311,757 | |
| Goodwill | 4(16) | 9,744,762 | 9,345,744 | |
| Long-termprepaidexpenses | 4(17) | 2,921,277 | 3,097,621 | |
| Deferredtaxassets | 4(30) | 1,780,327 | 1,632,964 | |
| Othernon-currentassets | 703,449 | 624,868 | ||
| Totalnon-currentassets | 128,188,761 | 126,169,214 |
TOTALASSETS
| TOTALASSETS | 218,040,431 | 216,842,707 |
S.F.HOLDINGCO.,LTD.CONSOLIDATEDBALANCESHEET(CONT’D)ASAT30JUNE2023(AllamountsinRMB’000Yuanunlessotherwisestated)[Englishtranslationforreferenceonly]
| LIABILITIESANDEQUITY | Note | 30June2023 | 31December2022 | |
| Consolidated | Consolidated | |||
| (Unaudited) |
Currentliabilities
| Currentliabilities | ||||
| Short-termborrowings | 4(19) | 14,235,961 | 12,837,870 | |
| Depositsfromcustomers | 9,868 | 20,670 | ||
| Financialliabilitiesheldfortrading | 86,257 | 96,647 | ||
| Notespayable | 113,596 | 32,699 | ||
| Accountspayable | 4(20) | 22,746,521 | 24,715,352 | |
| Advancesfromcustomers | 39,990 | 49,035 | ||
| Contractliabilities | 1,732,003 | 1,244,418 | ||
| Employeebenefitspayable | 4(21) | 5,067,670 | 6,276,551 | |
| Taxespayable | 4(22) | 1,977,241 | 2,761,146 | |
| Otherpayables | 4(23) | 12,073,261 | 13,346,595 | |
| Currentportionofnon-currentliabilities | 4(24) | 12,476,732 | 11,173,650 | |
| Othercurrentliabilities | 4(25) | 1,626,738 | 5,122,276 | |
| Totalcurrentliabilities | 72,185,838 | 77,676,909 |
Non-currentliabilities
| Non-currentliabilities | ||||
| Long-termborrowings | 4(26) | 10,813,082 | 7,472,010 | |
| Debenturespayable | 4(27) | 19,147,783 | 18,927,508 | |
| Leaseliabilities | 4(28) | 8,540,047 | 8,582,372 | |
| Long-termpayables | 222,875 | 209,675 | ||
| Long-termemployeebenefitspayable | 80,033 | 114,024 | ||
| Deferredincome | 4(29) | 963,443 | 860,791 | |
| Deferredtaxliabilities | 4(30) | 4,819,318 | 4,657,954 | |
| Provisions | 61,943 | 55,415 | ||
| Totalnon-currentliabilities | 44,648,524 | 40,879,749 |
Totalliabilities
| Totalliabilities | 116,834,362 | 118,556,658 |
Equity
| Equity | ||||
| Sharecapital | 4(31) | 4,895,202 | 4,895,202 | |
| Capitalreserve | 4(32) | 44,134,055 | 43,996,237 | |
| Less:Treasurystock | 4(33) | (2,100,313) | (2,040,377) | |
| Othercomprehensiveincome | 4(48) | 5,177,558 | 4,538,027 | |
| Generalriskreserve | 493,048 | 493,048 | ||
| Surplusreserve | 4(35) | 1,010,253 | 1,010,253 | |
| Retainedearnings | 4(36) | 36,334,035 | 33,371,351 | |
| TotalequityattributabletoshareholdersoftheCompany | 89,943,838 | 86,263,741 | ||
| Minorityinterests | 6(1)(b) | 11,262,231 | 12,022,308 | |
| Totalequity | 101,206,069 | 98,286,049 |
TOTALLIABILITIESANDEQUITY
| TOTALLIABILITIESANDEQUITY | 218,040,431 | 216,842,707 |
Theaccompanyingnotesformanintegralpartofthesefinancialstatements.
| Legalrepresentative:WangWei | ChiefFinancialOfficer(Headoffinance):HoChit | Accountingdirector:HuXiaofei |
S.F.HOLDINGCO.,LTD.COMPANYBALANCESHEETASAT30JUNE2023(AllamountsinRMB’000Yuanunlessotherwisestated)[Englishtranslationforreferenceonly]
| ASSETS | Note | 30June2023 | 31December2022 | |
| Company | Company | |||
| (Unaudited) |
Currentassets
| Currentassets | ||||
| Cashatbankandonhand | 17(1) | 1,127,042 | 812,181 | |
| Financialassetsheldfortrading | 17(2) | 833,089 | 2,335,319 | |
| Advancestosuppliers | 345 | 121 | ||
| Otherreceivables | 17(3) | 15,107,371 | 15,191,464 | |
| Othercurrentassets | 456 | - | ||
| Totalcurrentassets | 17,068,303 | 18,339,085 |
Non-currentassets
| Non-currentassets | ||||
| Long-termequityinvestments | 17(4) | 58,355,476 | 58,217,914 | |
| Constructioninprogress | 146,960 | 144,726 | ||
| Intangibleassets | 361,653 | 368,381 | ||
| Othernon-currentassets | 271 | 459 | ||
| Totalnon-currentassets | 58,864,360 | 58,731,480 |
TOTALASSETS
| TOTALASSETS | 75,932,663 | 77,070,565 |
S.F.HOLDINGCO.,LTD.COMPANYBALANCESHEET(CONT’D)ASAT30JUNE2023(AllamountsinRMB’000Yuanunlessotherwisestated)[Englishtranslationforreferenceonly]
| LIABILITIESANDEQUITY | Note | 30June2023 | 31December2022 | |
| Company | Company | |||
| (Unaudited) |
Currentliabilities
| Currentliabilities | ||||
| Employeebenefitspayable | 182 | 227 | ||
| Otherpayables | 15,855 | 29,191 | ||
| Taxespayable | 3,577 | 10,804 | ||
| Totalcurrentliabilities | 19,614 | 40,222 |
Non-currentliabilities
| Non-currentliabilities | ||||
| Deferredtaxliabilities | 696 | 1,253 | ||
| Totalnon-currentliabilities | 696 | 1,253 |
Totalliabilities
| Totalliabilities | 20,310 | 41,475 |
Equity
| Equity | ||||
| Sharecapital | 4(31) | 4,895,202 | 4,895,202 | |
| Capitalreserve | 71,881,510 | 71,743,948 | ||
| Less:Treasurystock | 4(33) | (2,100,313) | (2,040,377) | |
| Surplusreserve | 857,208 | 857,208 | ||
| Retainedearnings | 378,746 | 1,573,109 | ||
| Totalequity | 75,912,353 | 77,029,090 |
TOTALLIABILITIESANDEQUITY
| TOTALLIABILITIESANDEQUITY | 75,932,663 | 77,070,565 |
Theaccompanyingnotesformanintegralpartofthesefinancialstatements.
| Legalrepresentative:WangWei | ChiefFinancialOfficer(Headoffinance):HoChit | Accountingdirector:HuXiaofei |
S.F.HOLDINGCO.,LTD.CONSOLIDATEDANDCOMPANYINCOMESTATEMENTSFORTHESIXMONTHSENDED30JUNE2023(AllamountsinRMB’000Yuanunlessotherwisestated)[Englishtranslationforreferenceonly]
| Forthesixmonthsended30June | ||||||||
| Item | Note | 2023 | 2022 | 2023 | 2022 | |||
| Consolidated | Consolidated | Company | Company | |||||
| (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | |||||
1.Revenue
| 1.Revenue | 4(37) | 124,365,598 | 130,064,133 | - | - | |||
| Less:Costofrevenue | 4(37) | (107,555,280) | (113,778,310) | - | - | |||
| Taxesandsurcharges | (212,453) | (244,573) | (100) | (3) | ||||
| Sellinganddistributionexpenses | 4(38) | (1,392,755) | (1,280,208) | - | - | |||
| Generalandadministrativeexpenses | 4(39) | (8,940,581) | (8,890,094) | (10,161) | (3,383) | |||
| Researchanddevelopmentexpenses | 4(40) | (1,174,970) | (1,015,854) | - | - | |||
| Financial(costs)/income | 4(41) | (992,479) | (905,908) | 16,200 | 8,428 | |||
| Including:Interestexpenses | (1,092,673) | (974,215) | - | (43) | ||||
| Interestincome | 292,849 | 137,186 | 16,216 | 8,481 | ||||
| Add:Otherincome | 4(43) | 747,676 | 1,001,228 | - | - | |||
| Investmentincome | 4(44)17(5) | 500,597 | 404,810 | 22,167 | 119,941 | |||
| Including:Investment(losses)/incomefromassociatesandjointventures | (13,486) | 41,689 | - | - | ||||
| Gains/(Losses)arisingfromchangesinfairvalue | 21,870 | 6,719 | (2,230) | (13,155) | ||||
| Reversalof/(Losseson)creditimpairment | 64,802 | (271,129) | (5) | 1 | ||||
| Assetimpairmentlosses | (806) | (3,838) | - | - | ||||
| Gainsondisposalofassets | 47,892 | 8,246 | - | - |
2.Operatingprofit
| 2.Operatingprofit | 5,479,111 | 5,095,222 | 25,871 | 111,829 | ||||
| Add:Non-operatingincome | 4(45)(a) | 130,193 | 93,436 | - | - | |||
| Less:Non-operatingexpenses | 4(45)(b) | (188,954) | (107,017) | - | - |
3.Totalprofit
| 3.Totalprofit | 5,420,350 | 5,081,641 | 25,871 | 111,829 | ||||
| Less:Incometaxexpenses | 4(46) | (1,526,110) | (1,784,866) | (6,618) | (27,864) |
4.Netprofit
| 4.Netprofit | 3,894,240 | 3,296,775 | 19,253 | 83,965 |
Classifiedbycontinuityof
operations:
| Classifiedbycontinuityofoperations: | ||||||||
| Netprofitfromcontinuingoperations | 3,894,240 | 3,296,775 | 19,253 | 83,965 | ||||
| Netprofitfromdiscontinuedoperations | - | - | - | - |
Classifiedbyownershipofthe
equity:
| Classifiedbyownershipoftheequity: | ||||||||
| AttributabletoshareholdersoftheCompany | 4,176,282 | 2,512,397 | Notapplicable | Notapplicable | ||||
| Minorityinterests | (282,042) | 784,378 | Notapplicable | Notapplicable |
S.F.HOLDINGCO.,LTD.CONSOLIDATEDANDCOMPANYINCOMESTATEMENTS(CONT’D)FORTHESIXMONTHSENDED30JUNE2023
(AllamountsinRMB’000Yuanunlessotherwisestated)[Englishtranslationforreferenceonly]
| Forthesixmonthsended30June | ||||||||
| Item | Note | 2023 | 2022 | 2023 | 2022 | |||
| Consolidated | Consolidated | Company | Company | |||||
| (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | |||||
5.Othercomprehensiveincome,netoftax
| 5.Othercomprehensiveincome,netoftax | 429,802 | 448,815 | - | - | ||||
| AttributabletoshareholdersoftheCompany,netoftax | 639,549 | 925,820 | - | - | ||||
| Othercomprehensiveincomeitemswhichwillnotbereclassifiedsubsequentlytoprofitorloss | (30,021) | 7,485 | - | - | ||||
| Changesinfairvalueofinvestmentsinotherequityinstruments | 4(48) | (30,021) | 7,488 | - | - | |||
| Othercomprehensiveincomeitemswhichwillnotbetransferredtoprofitorlossundertheequitymethod | 4(48) | - | (3) | - | - | |||
| Othercomprehensiveincomeitemswhichwillbereclassifiedsubsequentlytoprofitorloss | 669,570 | 918,335 | - | - | ||||
| Cashflowhedgingreserve | 8,740 | (13,983) | - | - | ||||
| Othercomprehensiveincomeitemswhichwillbetransferredtoprofitorlossundertheequitymethod | 9,171 | - | - | - | ||||
| Exchangedifferencesontranslationofforeigncurrencyfinancialstatements | 4(48) | 651,659 | 932,318 | - | - | |||
| Attributabletominorityinterests,netoftax | 4(48) | (209,747) | (477,005) | - | - |
6.Totalcomprehensiveincome
| 6.Totalcomprehensiveincome | 4,324,042 | 3,745,590 | 19,253 | 83,965 |
AttributabletoshareholdersoftheCompany
| AttributabletoshareholdersoftheCompany | 4,815,831 | 3,438,217 | Notapplicable | Notapplicable | ||||
| Attributabletominorityinterests | (491,789) | 307,373 | Notapplicable | Notapplicable |
7.Earningspershare
| 7.Earningspershare | ||||||||
| Basicearningspershare(RMBYuan) | 4(47)(a) | 0.86 | 0.51 | Notapplicable | Notapplicable | |||
| Dilutedearningspershare(RMBYuan) | 4(47)(b) | 0.86 | 0.51 | Notapplicable | Notapplicable |
Theaccompanyingnotesformanintegralpartofthesefinancialstatements.
| Legalrepresentative:WangWei | ChiefFinancialOfficer(Headoffinance):HoChit | Accountingdirector:HuXiaofei |
S.F.HOLDINGCO.,LTD.CONSOLIDATEDANDCOMPANYCASHFLOWSTATEMENTSFORTHESIXMONTHSENDED30JUNE2023(AllamountsinRMB’000Yuanunlessotherwisestated)[Englishtranslationforreferenceonly]
| Forthesixmonthsended30June | ||||||||
| Item | Note | 2023 | 2022 | 2023 | 2022 | |||
| Consolidated | Consolidated | Company | Company | |||||
| (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | |||||
1.Cashflowsfrom/(usedin)operatingactivities
| 1.Cashflowsfrom/(usedin)operatingactivities | ||||||||
| Cashreceivedfromsalesofgoodsorrenderingofservices | 132,394,329 | 138,579,490 | - | - | ||||
| Netdecreaseindepositswithcentralbanks | 25,504 | - | - | - | ||||
| Netincreaseindeposit-takingandinterbankpayments | - | 12,141 | - | - | ||||
| Refundoftaxesandlevies | 495,991 | 4,960,635 | - | 10,265 | ||||
| Cashreceivedrelatingtootheroperatingactivities | 4(49)(a) | 45,314,783 | 42,257,709 | 27,767 | 9,014 | |||
| Sub-totalofoperatingcashinflows | 178,230,607 | 185,809,975 | 27,767 | 19,279 | ||||
| Cashpaidforgoodsandservices | (91,339,990) | (100,397,500) | - | - | ||||
| Netincreaseinloanstocustomers | (17,638) | (15,167) | - | - | ||||
| Netdecreaseindeposit-takingandinterbankpayments | (10,799) | - | - | - | ||||
| Netincreaseindepositswithcentralbanks | - | (17,906) | - | - | ||||
| Cashpaidtoandonbehalfofemployees | (17,243,035) | (16,578,976) | (2,715) | (1,861) | ||||
| Paymentsoftaxesandlevies | (3,442,293) | (4,203,256) | (23,542) | (22,998) | ||||
| Cashpaidrelatingtootheroperatingactivities | 4(49)(b) | (52,352,025) | (47,884,356) | (11,412) | (2,586) | |||
| Sub-totalofoperatingcashoutflows | (164,405,780) | (169,097,161) | (37,669) | (27,445) | ||||
| Netcashflowsfrom/(usedin)operatingactivities | 4(50)(a) | 13,824,827 | 16,712,814 | (9,902) | (8,166) |
2.Cashflows(usedin)/from
investingactivities
| 2.Cashflows(usedin)/frominvestingactivities | ||||||||
| Cashreceivedfromdisposalofinvestments | 170,533 | 1,134,725 | - | - | ||||
| Cashreceivedfromreturnsoninvestments | 433,485 | 387,630 | 523,497 | 2,127,137 | ||||
| Cashreceivedfromdisposaloffixedassetsandotherlong-termassets | 119,817 | 79,564 | - | - | ||||
| Netcashreceivedfromdisposalofsubsidiariesandotherbusinessunits | 4(49)(c) | 358,587 | 285,763 | - | - | |||
| Cashreceivedrelatingtootherinvestingactivities | 4(49)(e) | 48,950,000 | 80,839,024 | 5,620,000 | 24,300,010 | |||
| Sub-totalofinvestingcashinflows | 50,032,422 | 82,726,706 | 6,143,497 | 26,427,147 | ||||
| Cashpaidtoacquirefixedassetsandotherlong-termassets | (5,454,090) | (6,494,255) | (14,309) | (89,879) | ||||
| Cashpaidtoacquireinvestments | (1,463,367) | (952,126) | - | - | ||||
| Netcashpaidtoacquiresubsidiaries | 4(49)(d) | (928,555) | (1,043,309) | - | - | |||
| Cashpaidrelatingtootherinvestingactivities | 4(49)(e) | (55,820,000) | (81,061,887) | (4,529,904) | (22,093,334) | |||
| Sub-totalofinvestingcashoutflows | (63,666,012) | (89,551,577) | (4,544,213) | (22,183,213) | ||||
| Netcashflows(usedin)/frominvestingactivities | (13,633,590) | (6,824,871) | 1,599,284 | 4,243,934 |
S.F.HOLDINGCO.,LTD.CONSOLIDATEDANDCOMPANYCASHFLOWSTATEMENTS(CONT’D)FORTHESIXMONTHSENDED30JUNE2023
(AllamountsinRMB’000Yuanunlessotherwisestated)[Englishtranslationforreferenceonly]
| Forthesixmonthsended30June | ||||||||
| Item | Note | 2023 | 2022 | 2023 | 2022 | |||
| Consolidated | Consolidated | Company | Company | |||||
| (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | |||||
3.Cashflowsusedinfinancingactivities
| 3.Cashflowsusedinfinancingactivities | ||||||||
| Cashreceivedfromcapitalcontributions | 56,892 | 94,723 | - | - | ||||
| Including:Cashreceivedfromcapitalcontributionsbyminorityinterestsofsubsidiaries | 56,892 | 94,723 | - | - | ||||
| Cashreceivedfromborrowingsandissueofdebentures | 17,116,577 | 27,108,612 | - | - | ||||
| Cashreceivedrelatingtootherfinancingactivities | 7,639 | 4,550 | - | - | ||||
| Sub-totaloffinancingcashinflows | 17,181,108 | 27,207,885 | - | - | ||||
| Cashrepaymentsofborrowings | (15,113,136) | (22,208,994) | - | - | ||||
| Cashpaymentsforinterestexpensesanddistributionofdividendsorprofits | (2,451,109) | (2,505,075) | (1,213,616) | (874,518) | ||||
| Cashpaidrelatingtootherfinancingactivities | 4(49)(f) | (4,580,501) | (9,159,023) | (61,530) | (1,899,259) | |||
| Sub-totaloffinancingcashoutflows | (22,144,746) | (33,873,092) | (1,275,146) | (2,773,777) | ||||
| Netcashflowsusedinfinancingactivities | (4,963,638) | (6,665,207) | (1,275,146) | (2,773,777) |
4.Effectofforeignexchangerate
changesoncashandcashequivalents
| 4.Effectofforeignexchangeratechangesoncashandcashequivalents | 127,046 | 251,442 | - | - |
5.Net(decrease)/increaseincash
andcashequivalents
| 5.Net(decrease)/increaseincashandcashequivalents | (4,645,355) | 3,474,178 | 314,236 | 1,461,991 | ||||
| Add:Cashandcashequivalentsatthebeginningoftheperiod | 4(50)(b) | 40,279,947 | 34,813,768 | 812,181 | 226,112 |
6.Cashandcashequivalentsat
theendoftheperiod
| 6.Cashandcashequivalentsattheendoftheperiod | 4(50)(b) | 35,634,592 | 38,287,946 | 1,126,417 | 1,688,103 |
Theaccompanyingnotesformanintegralpartofthesefinancialstatements.
| Legalrepresentative:WangWei | ChiefFinancialOfficer(Headoffinance):HoChit | Accountingdirector:HuXiaofei |
S.F.HOLDINGCO.,LTD.CONSOLIDATEDSTATEMENTOFCHANGESINEQUITYFORTHESIXMONTHSENDED30JUNE2023
(AllamountsinRMB’000Yuanunlessotherwisestated)[Englishtranslationforreferenceonly]
| Forthesixmonthsended30June2022(Unaudited) | |||||||||||||||||||
| EquityattributabletoshareholdersoftheCompany | |||||||||||||||||||
| Note | Sharecapital | Capitalreserve | Less:Treasurystock | Othercomprehensiveincome | Generalriskreserve | Specialreserve | Surplusreserve | Retainedearnings | Minorityinterests | Totalequity | |||||||||
Balanceat1January2022
| Balanceat1January2022 | 4,906,213 | 46,200,598 | (394,993) | 2,617,231 | 420,638 | - | 947,775 | 28,245,764 | 14,972,021 | 97,915,247 |
Movementsforthesixmonthsended30June2022
| Movementsforthesixmonthsended30June2022 | ||||||||||||||||||||
| Totalcomprehensiveincome | ||||||||||||||||||||
| Netprofit | - | - | - | - | - | - | - | 2,512,397 | 784,378 | 3,296,775 | ||||||||||
| Othercomprehensiveincome | - | - | - | 925,820 | - | - | - | - | (477,005) | 448,815 | ||||||||||
| Capitalcontributionandwithdrawalbyshareholders | ||||||||||||||||||||
| Capitalcontributionbyshareholders | - | 591 | - | - | - | - | - | - | 94,132 | 94,723 | ||||||||||
| Sharerepurchase | 4(33) | - | - | (1,899,241) | - | - | - | - | - | - | (1,899,241) | |||||||||
| Treasurystockcancellation | 4(33) | (11,011) | (383,982) | 394,993 | - | - | - | - | - | - | - | |||||||||
| Share-basedpaymentsincludedinequity | 9 | - | 79,674 | - | - | - | - | - | - | 3,530 | 83,204 | |||||||||
| Others | - | (1,986,036) | - | - | - | - | - | - | (1,616,458) | (3,602,494) | ||||||||||
| Businesscombinationsinvolvingenterprisesnotundercommoncontrol | - | - | - | - | - | - | - | - | 38,675 | 38,675 | ||||||||||
| Profitdistribution | ||||||||||||||||||||
| Distributiontoshareholders | 4(36) | - | - | - | - | - | - | - | (874,518) | (1,119,844) | (1,994,362) | |||||||||
| Transferwithinequity | - | - | - | - | - | - | - | - | - | - | ||||||||||
| Transferfromothercomprehensiveincometoretainedearnings | - | - | - | (1) | - | - | - | 1 | - | - | ||||||||||
| Movementsinothercapitalreserve | - | 16,484 | - | - | - | - | - | - | - | 16,484 | ||||||||||
| Safetyreserve | ||||||||||||||||||||
| Appropriation | - | - | - | - | - | 14,589 | - | - | - | 14,589 | ||||||||||
| Utilisation | - | - | - | - | - | (14,589) | - | - | - | (14,589) | ||||||||||
| Balanceat30June2022 | 4,895,202 | 43,927,329 | (1,899,241) | 3,543,050 | 420,638 | - | 947,775 | 29,883,644 | 12,679,429 | 94,397,826 |
S.F.HOLDINGCO.,LTD.CONSOLIDATEDSTATEMENTOFCHANGESINEQUITY(CONT’D)FORTHESIXMONTHSENDED30JUNE2023
(AllamountsinRMB’000Yuanunlessotherwisestated)[Englishtranslationforreferenceonly]
| Forthesixmonthsended30June2023(Unaudited) | |||||||||||||||||||
| EquityattributabletoshareholdersoftheCompany | |||||||||||||||||||
| Note | Sharecapital | Capitalreserve | Less:Treasurystock | Othercomprehensiveincome | Generalriskreserve | Specialreserve | Surplusreserve | Retainedearnings | Minorityinterests | Totalequity | |||||||||
Balanceat1January2023
| Balanceat1January2023 | 4,895,202 | 43,996,237 | (2,040,377) | 4,538,027 | 493,048 | - | 1,010,253 | 33,371,351 | 12,022,308 | 98,286,049 |
Movementsforthesixmonthsended30June2023
| Movementsforthesixmonthsended30June2023 | ||||||||||||||||||||
| Totalcomprehensiveincome | ||||||||||||||||||||
| Netprofit | - | - | - | - | - | - | - | 4,176,282 | (282,042) | 3,894,240 | ||||||||||
| Othercomprehensiveincome | - | - | - | 639,549 | - | - | - | - | (209,747) | 429,802 | ||||||||||
| Capitalcontributionandwithdrawalbyshareholders | ||||||||||||||||||||
| Capitalcontributionbyshareholders | - | 890 | - | - | - | - | - | - | 59,056 | 59,946 | ||||||||||
| Sharerepurchase | 4(33) | - | - | (59,936) | - | - | - | - | - | - | (59,936) | |||||||||
| Share-basedpaymentsincludedinequity | 9 | - | 151,413 | - | - | - | - | - | - | 2,048 | 153,461 | |||||||||
| Others | - | (11,444) | - | - | - | - | - | - | (3,728) | (15,172) | ||||||||||
| Businesscombinationsinvolvingenterprisesnotundercommoncontrol | - | - | - | - | - | - | - | - | 52,226 | 52,226 | ||||||||||
| Profitdistribution | ||||||||||||||||||||
| Distributiontoshareholders | 4(36) | - | - | - | - | - | - | - | (1,213,616) | (377,890) | (1,591,506) | |||||||||
| Transferwithinequity | - | - | - | - | - | - | - | - | - | - | ||||||||||
| Transferfromothercomprehensiveincometoretainedearnings | - | - | - | (18) | - | - | - | 18 | - | - | ||||||||||
| Movementsinothercapitalreserve | - | (3,041) | - | - | - | - | - | - | - | (3,041) | ||||||||||
| Safetyreserve | ||||||||||||||||||||
| Appropriation | - | - | - | - | - | 18,568 | - | - | - | 18,568 | ||||||||||
| Utilisation | - | - | - | - | - | (18,568) | - | - | - | (18,568) | ||||||||||
| Balanceat30June2023 | 4,895,202 | 44,134,055 | (2,100,313) | 5,177,558 | 493,048 | - | 1,010,253 | 36,334,035 | 11,262,231 | 101,206,069 |
Theaccompanyingnotesformanintegralpartofthesefinancialstatements.
| Legalrepresentative:WangWei | ChiefFinancialOfficer(Headoffinance):HoChit | Accountingdirector:HuXiaofei |
S.F.HOLDINGCO.,LTD.COMPANYSTATEMENTOFCHANGESINEQUITYFORTHESIXMONTHSENDED30JUNE2023
(AllamountsinRMB’000Yuanunlessotherwisestated)[Englishtranslationforreferenceonly]
| Forthesixmonthsended30June2022(Unaudited) | |||||||||||
| Note | Sharecapital | Capitalreserve | Less:Treasurystock | Surplusreserve | Retainedearnings | Totalequity | |||||
Balanceat1January2022
| Balanceat1January2022 | 4,906,213 | 71,907,104 | (394,993) | 794,730 | 1,885,321 | 79,098,375 |
Movementsforthesixmonthsended30June2022
| Movementsforthesixmonthsended30June2022 | ||||||||||||
| Totalcomprehensiveincome | ||||||||||||
| Netprofit | - | - | - | - | 83,965 | 83,965 | ||||||
| Capitalcontributionandwithdrawalbyshareholders | - | - | - | - | - | - | ||||||
| Sharerepurchase | 4(33) | - | - | (1,899,241) | - | - | (1,899,241) | |||||
| Treasurystockcancellation | 4(33) | (11,011) | (383,982) | 394,993 | - | - | - | |||||
| Share-basedpaymentsincludedinequity | 9(1)(a) | - | 33,405 | - | - | - | 33,405 | |||||
| Profitdistribution | ||||||||||||
| Distributiontoshareholders | 4(36) | - | - | - | - | (874,518) | (874,518) |
Balanceat30June2022
| Balanceat30June2022 | 4,895,202 | 71,556,527 | (1,899,241) | 794,730 | 1,094,768 | 76,441,986 |
Forthesixmonthsended30June2023(Unaudited)
| Forthesixmonthsended30June2023(Unaudited) | |||||||||||
| Note | Sharecapital | Capitalreserve | Less:Treasurystock | Surplusreserve | Retainedearnings | Totalequity | |||||
Balanceat1January2023
| Balanceat1January2023 | 4,895,202 | 71,743,948 | (2,040,377) | 857,208 | 1,573,109 | 77,029,090 |
Movementsforthe
sixmonthsended30June2023
| Movementsforthesixmonthsended30June2023 | ||||||||||||
| Totalcomprehensiveincome | ||||||||||||
| Netprofit | - | - | - | - | 19,253 | 19,253 | ||||||
| Capitalcontributionandwithdrawalbyshareholders | - | - | - | - | - | - | ||||||
| Sharerepurchase | 4(33) | - | - | (59,936) | - | - | (59,936) | |||||
| Share-basedpaymentsincludedinequity | 9(1)(a) | - | 137,562 | - | - | - | 137,562 | |||||
| Profitdistribution | ||||||||||||
| Distributiontoshareholders | 4(36) | - | - | - | - | (1,213,616) | (1,213,616) |
Balanceat30June
2023
| Balanceat30June2023 | 4,895,202 | 71,881,510 | (2,100,313) | 857,208 | 378,746 | 75,912,353 |
Theaccompanyingnotesformanintegralpartofthesefinancialstatements.
| Legalrepresentative:WangWei | ChiefFinancialOfficer(Headoffinance):HoChit | Accountingdirector:HuXiaofei |
S.F.HOLDINGCO.,LTD.NOTESTOTHEFINANCIALSTATEMENTSFORTHESIXMONTHSENDED30JUNE2023(AllamountsinRMB’000Yuanunlessotherwisestated)[Englishtranslationforreferenceonly]
1Generalinformation
S.F.HoldingCo.,Ltd.(formerly“Ma’anshanDingtaiRareEarthandNewMaterialsCo.,Ltd.”,hereinafter“S.F.Holding”or“theCompany”),formerlyknownasMa’anshanDingtaiScience&TechnologyCo.,Ltd.,wasestablishedby11naturalpersonsincludingLiuJiluandtheLabourUnionofMa’anshanDingtaiMetallicProductsCo.,Ltd.bycashcontributionon13May2003.TheCompanywasofficiallychangedtoMa’anshanDingtaiRareEarthandNewMaterialsCo.,Ltd.on22October2007,andtheCompany’sshareswerelistedontheShenzhenStockExchangeon5February2010.InDecember2016,approvedbytheChinaSecuritiesRegulatoryCommission,theCompanyconductedaseriesofmajorassetsrestructuring,includingmajorassetsswap,issuingsharestopurchaseassetsandraisingmatchingfund.Uponthecompletionofmajorassetrestructuring,ShenzhenMingdeHoldingsDevelopmentCo.,Ltd.(“MingdeHoldings”)becametheparentcompanyandultimatecontrollingcompanyoftheCompany,andWangWeiwastheultimatecontrollingpersonoftheCompany.TheplaceofregistrationandheadquartersoftheCompanywerechangedtoShenzhen,GuangdongProvince.TheapprovedbusinessscopeoftheCompanyanditssubsidiaries(“theGroup”)includes:
domesticandinternationalexpressservices(exceptforpostalenterprises’franchisebusiness);generalfreightservices;large-scalegoodstransportationservices;refrigeratedtrucktransportationservices;third-partypharmaceuticalmodernlogisticsbusinessservices;urbandistributionservices;supplychainsolutionconsultingservices;domesticandinternationalfreightagencybusinessservices;aircargotransportationservices;warehousingservices;propertyleasingservices;industrialinvestment,etc.HangzhouSFIntra-cityIndustrialCo.,Ltd.,asubsidiaryoftheCompany,isacompanylistedonthemainboardoftheStockExchangeofHongKongLimited,primarilyprovidingintra-cityinstantdeliveryservices.KerryLogisticsNetworkCo.,Ltd.(“KerryLogistics”),asubsidiaryoftheCompany,isacompanylistedonthemainboardoftheStockExchangeofHongKongLimited,primarilyprovidingservicessuchascomprehensivelogisticsandinternationalfreight.First-tierandsecond-tiersubsidiariesincludedintheconsolidationscopeofthefinancialstatementsaredetailedinNote6(1).ThechangesinthescopeofconsolidationforthecurrentreportingperiodaresetoutinNote5.
S.F.HOLDINGCO.,LTD.NOTESTOTHEFINANCIALSTATEMENTSFORTHESIXMONTHSENDED30JUNE2023
(AllamountsinRMB’000Yuanunlessotherwisestated)[Englishtranslationforreferenceonly]
2Basisofpreparationandsummaryofsignificantaccountingpoliciesandaccounting
estimates
(1)Basisofpreparation
TheinterimfinancialstatementsarepreparedinaccordancewiththeAccountingStandardsforBusinessEnterprises-BasicStandard,thespecificaccountingstandardsandotherrelevantregulationsissuedbytheMinistryofFinanceon15February2006andinsubsequentperiods(hereafter,referredtoas“theAccountingStandardsforBusinessEnterprises”or“CASs”).TheinterimfinancialstatementsarepreparedanddisclosedinaccordancewiththerequirementsoftheCAS32-InterimFinancialReportingandtheStandardsfortheContentsandFormatsofInformationDisclosurebyCompaniesOfferingSecuritiestothePublicNo.3-ContentsandFormatsofSemi-annualReportsissuedbytheChinaSecuritiesRegulatoryCommission,andthereforedonotincludeallinformationanddisclosuresintheannualfinancialstatements.Thefinancialstatementsarepreparedonagoingconcernbasis.
(2)StatementofcompliancewiththeAccountingStandardsforBusinessEnterprises
TheinterimfinancialstatementsareincompliancewithCAS32-InterimFinancialReporting.
(3)Accountingpoliciesandaccountingestimates
OnNovember30,2022,theMinistryofFinanceissuedtheNoticeontheIssuanceofInterpretationofAccountingStandardsforBusinessEnterprisesNo.16(CaiKuai[2022]No.31)(hereinafterreferredtoas"InterpretationNo.16").Itprovidesfortheaccountingtreatmentoftheinitialrecognitionexemptionofdeferredincometaxrelatedtoassetsandliabilitiesarisingfromindividualtransactions,theaccountingtreatmentoftheincometaximpactofdividendsrelatedtofinancialinstrumentsthattheissuerclassifiesasequityinstruments,andtheaccountingtreatmentofsharepaymentssettledincashtosharepaymentssettledinequity.TheGrouphaspreparedtheinterimfinancialstatementsinaccordancewithInterpretationNo.16aboveandInterpretationNo.16hasnomaterialimpactontheinterimfinancialstatementsoftheGroupandtheCompany.Duringthereportingperiod,exceptfortheabove-mentionedchangesinaccountingpolicies,theaccountingpoliciesadoptedfortheinterimfinancialstatementsareconsistentwiththoseadoptedbytheGroupforpreparingthefinancialstatementsfortheyearended31December2022.TheinterimfinancialstatementsshallbereadinconjunctionwiththeGroup’sfinancialstatementsfortheyearended31December2022.Duringthereportingperiod,therewerenosignificantchangesincriticalaccountingestimatesandkeyjudgementsadoptedbytheGroupfromthepreviousyear.
S.F.HOLDINGCO.,LTD.NOTESTOTHEFINANCIALSTATEMENTSFORTHESIXMONTHSENDED30JUNE2023
(AllamountsinRMB’000Yuanunlessotherwisestated)[Englishtranslationforreferenceonly]
3Taxation
ThemaincategoriesandratesoftaxesapplicabletotheGrouparesetoutbelow:
| Category | Taxrate | Taxbase |
Enterpriseincometax
| Enterpriseincometax | Note(1) | Taxableincome |
| Value-addedtax(“VAT”) | 13%,9%,6%,1%(small-scaletaxpayers) | Taxablevalue-addedamount(Taxpayableiscalculatedusingthetaxablesalesamount/taxableserviceincomemultipliedbytheapplicabletaxratelessdeductibleVATinputofthecurrentperiodortaxableturnoveramountmultipliedbytheVATrate) |
| Citymaintenanceandconstructiontax | 7%,5%,1% | AmountofVATpaid |
| Educationalsurcharge | 3% | AmountofVATpaid |
| Localeducationalsurcharge | 2% | AmountofVATpaid |
| Customsduty | Atapplicabletaxrate | CustomsdutiablevaluethroughexaminationandapprovaloftheCustoms |
(1)Enterpriseincometax
AccordingtotheEnterpriseIncomeTaxLawofthePeople’sRepublicofChinaandtheRegulationsontheImplementationofEnterpriseIncomeTaxLaw,exceptforsomesubsidiariesenjoyingthepreferentialtaxrates,theCompanyandothersubsidiariesestablishedinMainlandChinaaresubjecttotheenterpriseincometaxrateof25%.TheGroup’soverseassubsidiariesrecognisetheirincometaxesinaccordancewiththelawsandregulationsofthecountriesorregionswheretheyoperate.Specifically,thesubsidiarieslocatedinHongKongSAR,MacaoSAR,Singapore,Japan,SouthKorea,USAandThailandaresubjecttoenterpriseincometaxattheratesof16.5%,12%,17%,23.2%,24%,21%and20%respectivelyinthereportingperiod.
(2)Preferentialtaxpolicyandapprovaldocuments
Duringthereportingperiod,therewerenosignificantchangesinthetaxratesandpoliciesofpreferentialtaxrateapplicabletotheCompanyanditssubsidiariesfromthepreviousyear.
S.F.HOLDINGCO.,LTD.NOTESTOTHEFINANCIALSTATEMENTSFORTHESIXMONTHSENDED30JUNE2023
(AllamountsinRMB’000Yuanunlessotherwisestated)[Englishtranslationforreferenceonly]
4Notestotheconsolidatedfinancialstatements
(1)Cashatbankandonhand
| 30June2023 | 31December2022 |
Cashonhand
| Cashonhand | 18,177 | 18,437 | |
| Cashatbank | 16,677,144 | 16,629,310 | |
| BalanceswithcentralbankfromGroupFinanceCompany | 819,309 | 848,392 | |
| Including:statutoryreserve(a) | 811,738 | 837,242 | |
| excessreserve(b) | 7,571 | 11,150 | |
| BalanceswithotherbanksfromGroupFinanceCompany | 18,741,582 | 23,378,727 | |
| Othercashbalances(c) | 109,173 | 165,126 | |
| Interestreceivable | 23,898 | 22,758 | |
| 36,389,283 | 41,062,750 |
Including:Overseasdeposits
| Including:Overseasdeposits | 7,026,245 | 9,471,675 |
(a)On18September2016,theGroupincorporatedS.F.HoldingGroupFinanceCo.,Ltd.(“Group
FinanceCompany”).StatutoryreserveofGroupFinanceCompanydepositedwiththecentralbankrepresentsrequiredstatutoryreservepaidbyfinancialenterprisesinthePeople’sBankofChina(“PBOC”)at5%ofdepositsfromcustomersdenominatedinRMB.StatutoryreservedepositsarenotavailableforusebytheGroupinitsdailyoperations,whicharerestrictedcash.(b)ExcessreserveofGroupFinanceCompanydepositedwiththecentralbankrepresentstheexcess
overtherequiredstatutoryreservedepositedbyfinancialinstitutionsinthecentralbank,anditisbankdepositthatcanbereadilydrawnondemand.(c)Asat30June2023,othercashbalanceofRMB11,890,000(31December2022:RMB11,086,000)
wasusedtoguaranteegeneralbankcredit;RMB1,832,000(31December2022:RMB1,832,000)wasthesecuritydepositfortheGrouptoapplyforaletterofguaranteefromthebank;andRMB28,792,000(31December2022:RMB24,759,000)wasthesecuritydepositreceivedbytheGroupfromthirdparties.Accordingtothecontracts,thesecuritydepositneedstobereturnedafterthecooperationiscompleted.Theseabovedepositsareallrestricted.
S.F.HOLDINGCO.,LTD.NOTESTOTHEFINANCIALSTATEMENTSFORTHESIXMONTHSENDED30JUNE2023
(AllamountsinRMB’000Yuanunlessotherwisestated)[Englishtranslationforreferenceonly]
4Notestotheconsolidatedfinancialstatements(Cont’d)
(2)Financialassetsheldfortrading
| 30June2023 | 31December2022 |
Structureddeposits
| Structureddeposits | 14,256,424 | 7,351,158 | |
| Forwardexchangecontracts | 10,746 | - | |
| Fundinvestments | 473 | 34,221 | |
| 14,267,643 | 7,385,379 |
(3)Accountsreceivable
| 30June2023 | 31December2022 |
Accountsreceivable
| Accountsreceivable | 24,901,791 | 27,120,677 | |
| Less:Provisionforbaddebts | (1,457,688) | (1,560,244) | |
| 23,444,103 | 25,560,433 |
TheGroupadoptsregularsettlementmethodforlogisticsandfreightforwardingservicesprovidedtosomecustomers.Ateachmonth-end,theoutstandingpartbecomesaccountsreceivable.(a)Theageingofaccountsreceivableisanalysedasfollows:
| 30June2023 | 31December2022 |
Within1year(inclusive)
| Within1year(inclusive) | 23,691,771 | 26,162,778 | |
| 1to2years(inclusive) | 763,861 | 653,524 | |
| Over2years | 446,159 | 304,375 | |
| 24,901,791 | 27,120,677 |
(b)Asat30June2023,thefivelargestaccountsreceivableaggregatedbydebtorweresummarised
andanalysedasfollows:
| 30June2023 | ||||
| Bookbalance | Provisionforbaddebts | %oftotalbalance | ||
Sumofthefivelargestaccountsreceivable
| Sumofthefivelargestaccountsreceivable | 2,753,252 | (7,048) | 11.06% |
S.F.HOLDINGCO.,LTD.NOTESTOTHEFINANCIALSTATEMENTSFORTHESIXMONTHSENDED30JUNE2023(AllamountsinRMB’000Yuanunlessotherwisestated)[Englishtranslationforreferenceonly]
4Notestotheconsolidatedfinancialstatements(Cont’d)
(3)Accountsreceivable(Cont’d)(c)Provisionforbaddebts
Foraccountsreceivable,theGrouprecognisesthelifetimeexpectedcreditlossprovision.Asat30June2023,accountsreceivableforwhichtherelatedprovisionforbaddebtswasprovidedontheindividualbasiswereanalysedasfollows:
| Bookbalance | Lifetimeexpectedcreditlossrate | Provisionforbaddebts | Reason |
Receivablesfromrelatedparties
| Receivablesfromrelatedparties | - | - | - | |||
| Receivablesfromnon-relatedparties | 693,130 | 100.00% | (693,130) | Thedebtorencounteredfinancialdistress,etc. | ||
| 693,130 | (693,130) |
Asat31December2022,accountsreceivableforwhichtherelatedprovisionforbaddebtswasprovidedontheindividualbasiswereanalysedasfollows:
| Bookbalance | Lifetimeexpectedcreditlossrate | Provisionforbaddebts | Reason |
Receivablesfromrelatedparties
| Receivablesfromrelatedparties | - | - | - | |||
| Receivablesfromnon-relatedparties | 719,588 | 100.00% | (719,588) | Thedebtorencounteredfinancialdistress,etc. | ||
| 719,588 | (719,588) |
Asat30June2023,accountsreceivableforwhichtherelatedprovisionforbaddebtswasprovidedonthegroupingbasiswereanalysedasfollows:
| Bookbalance | Lifetimeexpectedcreditlossrate | Provisionforbaddebts |
Relatedpartygrouping
| Relatedpartygrouping | 276,814 | - | - | |||
| Non-relatedpartygrouping | 23,931,847 | 3.19% | (764,558) | |||
| 24,208,661 | (764,558) |
S.F.HOLDINGCO.,LTD.NOTESTOTHEFINANCIALSTATEMENTSFORTHESIXMONTHSENDED30JUNE2023
(AllamountsinRMB’000Yuanunlessotherwisestated)[Englishtranslationforreferenceonly]
4Notestotheconsolidatedfinancialstatements(Cont’d)
(3)Accountsreceivable(Cont’d)(c)Provisionforbaddebts(Cont’d)
Asat31December2022,accountsreceivableforwhichtherelatedprovisionforbaddebtswasprovidedonthegroupingbasiswereanalysedasfollows:
| Bookbalance | Lifetimeexpectedcreditlossrate | Provisionforbaddebts |
Relatedpartygrouping
| Relatedpartygrouping | 237,028 | - | - | |||
| Non-relatedpartygrouping | 26,164,061 | 3.21% | (840,656) | |||
| 26,401,089 | (840,656) |
(d)Forthesixmonthsended30June2023,theGroup’scomprehensiveprovisionandreversalforbad
debtsamountedtoareversalofRMB65,858,000(forthesixmonthsended30June2022:RMB252,871,000forcomprehensiveprovisionandreversal),andtheimpairmenttestprovisionforbaddebtsreversedindividuallywasRMB28,975,000(forthesixmonthsended30June2022:RMB61,096,000forreversalofimpairmenttestprovisionforreceivablesindividually)(Note4(18)).(e)Forthesixmonthsended30June2023,theprovisionforbaddebtsofaccountsreceivablethat
werewrittenoffamountedtoRMB51,717,000(forthesixmonthsended30June2022:RMB71,272,000)andnoaccountsreceivablewithamountsthatwereindividuallysignificantwerewrittenoff(Note4(18)).
S.F.HOLDINGCO.,LTD.NOTESTOTHEFINANCIALSTATEMENTSFORTHESIXMONTHSENDED30JUNE2023(AllamountsinRMB’000Yuanunlessotherwisestated)[Englishtranslationforreferenceonly]
4Notestotheconsolidatedfinancialstatements(Cont’d)
(4)Advancestosuppliers(a)Theageingofadvancestosuppliersisanalysedbelow:
| 30June2023 | 31December2022 | ||||||
| Ageing | Amount | %oftotalbalance | Amount | %oftotalbalance | |||
Within1year(inclusive)
| Within1year(inclusive) | 2,834,613 | 94.06% | 3,339,817 | 96.39% | |||
| 1to2years(inclusive) | 136,165 | 4.52% | 94,873 | 2.74% | |||
| Over2years | 42,723 | 1.42% | 30,221 | 0.87% | |||
| 3,013,501 | 100.00% | 3,464,911 | 100.00% |
Asat30June2023,advancestosupplierswithageingoveroneyearweremainlyprepaymenttosuppliers,etc.Thatisbecauserelevantbusinesstransactionswerestillbeingperformed.
S.F.HOLDINGCO.,LTD.NOTESTOTHEFINANCIALSTATEMENTSFORTHESIXMONTHSENDED30JUNE2023
(AllamountsinRMB’000Yuanunlessotherwisestated)[Englishtranslationforreferenceonly]
4Notestotheconsolidatedfinancialstatements(Cont’d)
(4)Advancestosuppliers(Cont’d)(b)Asat30June2023,thefivelargestadvancestosuppliersaggregatedbydebtorweresummarised
andanalysedasfollows:
| 30June2023 | ||
| Amount | %oftotalbalance | |
Sumofthefivelargestadvancestosuppliers
| Sumofthefivelargestadvancestosuppliers | 435,967 | 14.47% |
(5)Otherreceivables
| 30June2023 | 31December2022 |
Receivablesfromrelatedparties(Note8(4)(d))
| Receivablesfromrelatedparties(Note8(4)(d)) | 590,716 | 521,494 | |
| Guaranteesanddeposits | 1,534,336 | 1,532,034 | |
| Cashtocollectonbehalfofcustomers | 664,264 | 330,427 | |
| Taxpaidonbehalfofothers | 174,551 | 208,441 | |
| Employeeborrowingsandadvances | 89,045 | 106,828 | |
| Receivablesfromequitytransfer | 76,500 | 77,455 | |
| Receivablesfromairlinessubsidiesandfinancialrebates | 40,648 | 99,389 | |
| Prepaidsocialinsurancepremium | 37,510 | 33,519 | |
| Entrustedloanprincipalreceivables | 27,000 | 27,000 | |
| Others | 487,569 | 643,773 | |
| 3,722,139 | 3,580,360 | ||
| Less:Provisionforbaddebts | (241,859) | (239,123) | |
| 3,480,280 | 3,341,237 |
S.F.HOLDINGCO.,LTD.NOTESTOTHEFINANCIALSTATEMENTSFORTHESIXMONTHSENDED30JUNE2023(AllamountsinRMB’000Yuanunlessotherwisestated)[Englishtranslationforreferenceonly]
4Notestotheconsolidatedfinancialstatements(Cont’d)
(5)Otherreceivables(Cont’d)(a)Theageingofotherreceivablesbasedonthepointofoccurrenceisanalysedasfollows:
| 30June2023 | 31December2022 |
Within1year(inclusive)
| Within1year(inclusive) | 2,651,993 | 2,572,195 | |
| 1to2years(inclusive) | 435,738 | 385,523 | |
| Over2years | 634,408 | 622,642 | |
| 3,722,139 | 3,580,360 |
Asat30June2023,otherreceivableswithageingover1yearmainlyrepresenteddepositsandguarantees,entrustedloansreceivableandreceivablesfromequitytransfer.(b)Provisionforlossesandchangesinbookbalancestatements(i)TheGroupmeasuresthelossprovisionforotherreceivablesbasedontheexpectedcreditlosses
forthenexttwelvemonthsortheentireduration.Theanalysisofchangesinotherreceivablesbystagesisasfollows:
| Stage1 | Stage3 | |||
| Expectedcreditlossesinthefollowing12months(grouping) | Lifetimeexpectedcreditlosses(creditimpaired) | Total |
31December2022
| 31December2022 | 10,998 | 228,125 | 239,123 | |||
| Provision/Reversalinthecurrentperiod | 4,935 | (1,000) | 3,935 | |||
| Writeoffinthecurrentperiod | - | (955) | (955) | |||
| Otherdecreasesinthecurrentperiod | (244) | - | (244) | |||
| 30June2023 | 15,689 | 226,170 | 241,859 |
S.F.HOLDINGCO.,LTD.NOTESTOTHEFINANCIALSTATEMENTSFORTHESIXMONTHSENDED30JUNE2023(AllamountsinRMB’000Yuanunlessotherwisestated)[Englishtranslationforreferenceonly]
4Notestotheconsolidatedfinancialstatements(Cont’d)
(5)Otherreceivables(Cont’d)(b)Provisionforlossesandchangesinbookbalancestatements(Cont’d)(i)(Cont’d)
Asat30June2023and31December2022,theGroupdidnothaveanyotherreceivablesatStage1forwhichtherelatedprovisionforbaddebtswasprovidedontheindividualbasis.Asat30June2023,otherreceivablesatStage1forwhichtherelatedprovisionforbaddebtswasprovidedonthegroupingbasiswereanalysedasfollows:
| Bookbalance | Expectedcreditlossrateinthefollowing12months | Provisionforbaddebts | Reason |
Providedonthe
groupingbasis:
| Providedonthegroupingbasis: | ||||||
| Relatedpartygrouping | 590,716 | - | - | |||
| Non-relatedpartygrouping | 2,882,965 | 0.54% | (15,689) | Expectedcreditlossmethod | ||
| 3,473,681 | (15,689) |
Asat31December2022,otherreceivablesatStage1forwhichtherelatedprovisionforbaddebtswasprovidedonthegroupingbasiswereanalysedasfollows:
| Bookbalance | Expectedcreditlossrateinthefollowing12months | Provisionforbaddebts | Reason |
Providedonthegroupingbasis:
| Providedonthegroupingbasis: | ||||||
| Relatedpartygrouping | 521,494 | - | - | |||
| Non-relatedpartygrouping | 2,808,453 | 0.39% | (10,998) | Expectedcreditlossmethod | ||
| 3,329,947 | (10,998) |
Asat30June2023and31December2022,theGroupdidnothaveanyotherreceivablesatStage2.
S.F.HOLDINGCO.,LTD.NOTESTOTHEFINANCIALSTATEMENTSFORTHESIXMONTHSENDED30JUNE2023(AllamountsinRMB’000Yuanunlessotherwisestated)[Englishtranslationforreferenceonly]
4Notestotheconsolidatedfinancialstatements(Cont’d)
(5)Otherreceivables(Cont’d)(b)Provisionforlossesandchangesinbookbalancestatements(Cont’d)(i)(Cont’d)
Asat30June2023,otherreceivablesatStage3forwhichtherelatedprovisionforbaddebtswasprovidedontheindividualbasiswereanalysedasfollows:
| Bookbalance | Lifetimeexpectedcreditlosses | Provisionforbaddebts | Reason |
Providedontheindividualbasis:
| Providedontheindividualbasis: | ||||||
| Receivablesfromequitytransfer | 76,500 | 100.00% | (76,500) | Thedebtorencounteredfinancialdistress | ||
| Guaranteesanddeposits | 48,425 | 76.28% | (36,937) | Thedebtorencounteredfinancialdistress | ||
| Entrustedloansreceivable | 27,000 | 60.00% | (16,200) | Thedebtorencounteredfinancialdistress | ||
| Others | 96,533 | 100.00% | (96,533) | Thedebtorencounteredfinancialdistress | ||
| 248,458 | (226,170) |
Asat31December2022,otherreceivablesatStage3forwhichtherelatedprovisionforbaddebtswasprovidedontheindividualbasiswereanalysedasfollows:
| Bookbalance | Lifetimeexpectedcreditlosses | Provisionforbaddebts | Reason |
Providedontheindividualbasis:
| Providedontheindividualbasis: | ||||||
| Receivablesfromequitytransfer | 77,455 | 100.00% | (77,455) | Thedebtorencounteredfinancialdistress | ||
| Guaranteesanddeposits | 49,425 | 76.76% | (37,937) | Thedebtorencounteredfinancialdistress | ||
| Entrustedloansreceivable | 27,000 | 60.00% | (16,200) | Thedebtorencounteredfinancialdistress | ||
| Others | 96,533 | 100.00% | (96,533) | Thedebtorencounteredfinancialdistress | ||
| 250,413 | (228,125) |
Asat30June2023and31December2022,theGroupdidnothaveanyotherreceivablesatStage3forwhichtherelatedprovisionforbaddebtswasprovidedonthegroupingbasis.
S.F.HOLDINGCO.,LTD.NOTESTOTHEFINANCIALSTATEMENTSFORTHESIXMONTHSENDED30JUNE2023
(AllamountsinRMB’000Yuanunlessotherwisestated)[Englishtranslationforreferenceonly]
4Notestotheconsolidatedfinancialstatements(Cont’d)
(5)Otherreceivables(Cont’d)(c)Forthesixmonthsended30June2023,theGroup’sprovisionandreversalforbaddebts
amountedtoRMB3,935,000(forthesixmonthsended30June2022:RMB21,960,000forprovision),andtheprovisionforbaddebtsreversedwasRMB1,000,000(forthesixmonthsended30June2022:Nil)(Note4(18)).(d)Forthesixmonthsended30June2023,theprovisionforbaddebtsofotherreceivablesthatwere
writtenoffamountedtoRMB955,000(forthesixmonthsended30June2022:RMB11,955,000)(Note4(18))andnootherreceivableswithamountsthatwereindividuallysignificantwerewrittenoff(forthesixmonthsended30June2022:Nil).(e)Asat30June2023,thefivelargestotherreceivablesaggregatedbydebtorweresummarisedand
analysedasfollows:
| 30June2023 | ||||||
| Natureofbusiness | Ageing | Bookbalance | Provisionforbaddebts | %oftotalbalance | ||
ShenzhenHiveBoxTechnologyCo.,Ltd.(“HiveBoxTechnology”)
| ShenzhenHiveBoxTechnologyCo.,Ltd.(“HiveBoxTechnology”) | Agencycollectionandpayment | Within1year | 483,632 | - | 12.99% | |||
| TimHortons(China)HoldingsCo.,Ltd. | Agencycollectionandpayment | Within1year | 96,100 | - | 2.58% | |||
| GoodearDevelopmentCo.,Ltd. | Guaranteesanddeposits | 1to2years,over2years | 53,334 | - | 1.43% | |||
| SuzhouLakeDistrictDevelopmentCo.,Ltd | Guaranteesanddeposits | Over2years | 40,000 | 1.08% | ||||
| WuhanTianHeInternationalAirport | Airlinesubsidiesandfinancialrebates | Within1year | 29,078 | - | 0.78% | |||
| 702,144 | - | 18.86% |
S.F.HOLDINGCO.,LTD.NOTESTOTHEFINANCIALSTATEMENTSFORTHESIXMONTHSENDED30JUNE2023
(AllamountsinRMB’000Yuanunlessotherwisestated)[Englishtranslationforreferenceonly]
4Notestotheconsolidatedfinancialstatements(Cont’d)
(6)Othercurrentassets
| 30June2023 | 31December2022 |
InputVATtobeoffset
| InputVATtobeoffset | 4,675,973 | 4,840,499 | |
| Prepaidenterpriseincometax | 542,094 | 768,131 | |
| Others | 14,995 | 4,298 | |
| 5,233,062 | 5,612,928 |
(7)Long-termreceivablesandcurrentportionofnon-currentassets
| 30June2023 | 31December2022 |
Financeleasereceivables
| Financeleasereceivables | 537,799 | 692,204 | |
| Depositsforhousepurchase | 277,904 | 277,904 | |
| Loanstoemployees | 56,595 | 112,662 | |
| Others | 9,055 | 8,860 | |
| Less:Provisionforbaddebts | (17,437) | (19,613) | |
| Currentportionoflong-termreceivables | (380,975) | (440,739) | |
| 482,941 | 631,278 |
(8)Long-termequityinvestments
| Jointventures | Associates | Total |
31December2022
| 31December2022 | 3,648,376 | 4,209,624 | 7,858,000 | ||
| Increase/(Decrease)ininvestments | 12,197 | (3,895) | 8,302 | ||
| Investment(loss)/incomerecognisedundertheequitymethod | (37,988) | 24,502 | (13,486) | ||
| Othercomprehensiveincomeandchangesinequityrecognisedundertheequitymethod | (13) | 7,896 | 7,883 | ||
| Cashdividends/profitsdistributed | - | (149,215) | (149,215) | ||
| Effectoftranslationofforeigncurrencyfinancialstatements | 5,638 | 103,877 | 109,515 | ||
| 30June2023 | 3,628,210 | 4,192,789 | 7,820,999 |
Including:Balanceofprovisionfor
impairmentlossattheendoftheperiod
| Including:Balanceofprovisionforimpairmentlossattheendoftheperiod | 4,472 | 226,222 | 230,694 |
S.F.HOLDINGCO.,LTD.NOTESTOTHEFINANCIALSTATEMENTSFORTHESIXMONTHSENDED30JUNE2023
(AllamountsinRMB’000Yuanunlessotherwisestated)[Englishtranslationforreferenceonly]
4Notestotheconsolidatedfinancialstatements(Cont’d)
(8)Long-termequityinvestments(Cont’d)(a)Jointventures
| Movementsinthecurrentperiod | ||||||||||||
| Carryingamountasat31December2022 | Increaseininvestments | Shareofnetprofit/(loss)underequitymethod | Otherchangesinequity | Effectoftranslationofforeigncurrencyfinancialstatements | Carryingamountasat30June2023 | Balanceofprovisionforimpairmentlossattheendoftheperiod | ||||||
HubeiInternationalLogisticsAirportCo.,Ltd.
| HubeiInternationalLogisticsAirportCo.,Ltd. | 2,227,947 | - | (53,670) | - | - | 2,174,277 | - | ||||||
| Gem-shunxinIndustrialTechnologyCo.,Ltd. | 497,197 | - | 1,782 | (13) | - | 498,966 | - | ||||||
| JinfengBorun(Xiamen)EquityInvestmentPartnership(LimitedPartnership) | 317,029 | - | 10,155 | - | - | 327,184 | - | ||||||
| ZBHAGroupCo.,Ltd.(“ZBHA”) | 236,210 | - | 2,018 | - | - | 238,228 | - | ||||||
| CCSFChinaLogisticsPropertiesInvestmentFund,L.P. | 108,106 | 12,197 | (3,011) | - | 4,795 | 122,087 | - | ||||||
| Others | 261,887 | - | 4,738 | - | 843 | 267,468 | 4,472 | ||||||
| 3,648,376 | 12,197 | (37,988) | (13) | 5,638 | 3,628,210 | 4,472 |
S.F.HOLDINGCO.,LTD.NOTESTOTHEFINANCIALSTATEMENTSFORTHESIXMONTHSENDED30JUNE2023(AllamountsinRMB’000Yuanunlessotherwisestated)[Englishtranslationforreferenceonly]
4Notestotheconsolidatedfinancialstatements(Cont’d)
(8)Long-termequityinvestments(Cont’d)(b)Associates
| Movementsinthecurrentperiod | ||||||||||||||
| Carryingamountasat31December2022 | Decreaseininvestments | Shareofnetprofit/(loss)underequitymethod | Otherchangesinequity | Cashdividends/profitsdistributed | Effectoftranslationofforeigncurrencyfinancialstatements | Carryingamountasat30June2023 | Balanceofprovisionforimpairmentlossattheendoftheperiod | |||||||
SFRealEstateInvestmentTrust(“SFREITs”)
| SFRealEstateInvestmentTrust(“SFREITs”) | 1,183,667 | - | 4,088 | 9,166 | (34,488) | 38,064 | 1,200,497 | - | ||||||
| ChiwanContainerTerminalCo.,Ltd. | 964,318 | - | 28,746 | - | (72,069) | 15,843 | 936,838 | - | ||||||
| GiaoHangTietKiemJointStockCompany | 408,610 | - | 32,587 | - | (38,192) | 20,919 | 423,924 | - | ||||||
| AmassFreightInternationalCo.,Ltd. | 263,526 | - | 2,380 | - | - | - | 265,906 | - | ||||||
| PT.PuninarSaranaRaya | 233,613 | - | 3,861 | - | - | 23,178 | 260,652 | - | ||||||
| ZhejiangGalaxisTechnologyGroupCo.,Ltd. | 210,966 | - | (17,591) | - | - | - | 193,375 | - | ||||||
| Others | 944,924 | (3,895) | (29,569) | (1,270) | (4,466) | 5,873 | 911,597 | 226,222 | ||||||
| 4,209,624 | (3,895) | 24,502 | 7,896 | (149,215) | 103,877 | 4,192,789 | 226,222 |
S.F.HOLDINGCO.,LTD.NOTESTOTHEFINANCIALSTATEMENTSFORTHESIXMONTHSENDED30JUNE2023(AllamountsinRMB’000Yuanunlessotherwisestated)[Englishtranslationforreferenceonly]
4Notestotheconsolidatedfinancialstatements(Cont’d)
(9)Investmentsinotherequityinstruments
| 30June2023 | 31December2022 |
Equityoflistedcompanies
| Equityoflistedcompanies | 116,994 | 158,936 | |
| Equityofunlistedcompanies | 7,337,565 | 7,206,748 | |
| 7,454,559 | 7,365,684 |
30June2023
| 30June2023 | 31December2022 |
Equityoflistedcompanies
| Equityoflistedcompanies | |||
| -Costs | 194,840 | 187,763 | |
| -Accumulatedchangesinfairvalue | (77,846) | (28,827) | |
| 116,994 | 158,936 |
Equityofunlistedcompanies
| Equityofunlistedcompanies | |||
| -Costs | 3,886,151 | 3,885,789 | |
| -Accumulatedchangesinfairvalue | 3,451,414 | 3,320,959 | |
| 7,337,565 | 7,206,748 |
Including:thechangesincostandaccumulatedfairvalueofRMB134,756,000andRMB133,950,000respectivelyinthecurrentperiodwereduetodifferencesintranslationofforeigncurrencystatements.
S.F.HOLDINGCO.,LTD.NOTESTOTHEFINANCIALSTATEMENTSFORTHESIXMONTHSENDED30JUNE2023(AllamountsinRMB’000Yuanunlessotherwisestated)[Englishtranslationforreferenceonly]
4Notestotheconsolidatedfinancialstatements(Cont’d)
(10)Investmentproperties
| Buildings | Landuserights | Total |
Cost
| Cost | |||||
| 31December2022 | 3,926,281 | 1,162,192 | 5,088,473 | ||
| Nettransferintootherlong-termassetsinthecurrentperiod(Note4(11),(12)(iii),(14)) | 149,751 | 62,995 | 212,746 | ||
| Additioninthecurrentperiod | 19,236 | - | 19,236 | ||
| Effectoftranslationofforeigncurrencyfinancialstatements | 2,487 | 203 | 2,690 | ||
| 30June2023 | 4,097,755 | 1,225,390 | 5,323,145 |
Accumulateddepreciation
| Accumulateddepreciation | |||||
| 31December2022 | 138,503 | 74,604 | 213,107 | ||
| Provisionofdepreciation | 41,955 | 16,299 | 58,254 | ||
| Nettransferin/outtootherlong-termassetsinthecurrentperiod(Note4(11),(14)) | (26,900) | 5,471 | (21,429) | ||
| Effectoftranslationofforeigncurrencyfinancialstatements | 1,532 | 1,142 | 2,674 | ||
| 30June2023 | 155,090 | 97,516 | 252,606 |
Carryingamount
| Carryingamount | |||||
| 30June2023 | 3,942,665 | 1,127,874 | 5,070,539 | ||
| 31December2022 | 3,787,778 | 1,087,588 | 4,875,366 |
(i)Asat30June2023,theGroupwasstillintheprocessofapplyingforcertificatesofownershipfor
certainbuildingsandLanduserightswithcarryingamountofRMB616,724,000(31December2022:carryingamountofRMB815,717,000).(ii)Asat30June2023,investmentpropertieswithcarryingamountofRMB108,394,000(31
December2022:RMB104,571,000)werepledgedascollateralforlong-termborrowings(Note4(26)(c)).(iii)Asat30June2023and31December2022,theGroupassessedthatnoimpairmentlossshould
beprovidedforinvestmentproperties.
S.F.HOLDINGCO.,LTD.NOTESTOTHEFINANCIALSTATEMENTSFORTHESIXMONTHSENDED30JUNE2023(AllamountsinRMB’000Yuanunlessotherwisestated)[Englishtranslationforreferenceonly]
4Notestotheconsolidatedfinancialstatements(Cont’d)
(11)Fixedassets
| Buildings | Motorvehicles | Computersandelectronicequipment | Aircraft,aircraftengines,rotablesandhigh-valuemaintenancetools | Machineryandequipment | Officeequipmentandotherequipment | Total |
Cost
| Cost | |||||||||||||
| 31December2022 | 20,737,655 | 7,360,813 | 5,145,818 | 13,343,778 | 11,050,506 | 10,964,878 | 68,603,448 | ||||||
| Transferfromconstructioninprogress(Note4(12)) | 4,188,753 | 399 | 54,552 | 1,392,241 | 2,544,708 | 13,833 | 8,194,486 | ||||||
| Transferfrominvestmentpropertiesinthecurrentperiod(Note4(10)) | 368,510 | - | - | - | - | - | 368,510 | ||||||
| Additioninthecurrentperiod | 19,537 | 458,468 | 266,826 | 178,505 | 103,449 | 148,527 | 1,175,312 | ||||||
| Businesscombinationsinvolvingenterprisesnotundercommoncontrol | 70,861 | 3,543 | 320 | - | 8,647 | 3,376 | 86,747 | ||||||
| Transfertoinvestmentpropertiesinthecurrentperiod(Note4(10)) | (345,405) | - | - | - | - | - | (345,405) | ||||||
| Decreaseduetodisposalofsubsidiariesinthecurrentperiod | - | (1,206) | (3,802) | - | (14,122) | (37,874) | (57,004) | ||||||
| Otherdecreasesinthecurrentperiod | (15,295) | (553,217) | (148,689) | (88,057) | (251,619) | (237,340) | (1,294,217) | ||||||
| Effectoftranslationofforeigncurrencyfinancialstatements | 121,196 | 44,860 | 18,693 | - | 75,167 | (3,025) | 256,891 | ||||||
| 30June2023 | 25,145,812 | 7,313,660 | 5,333,718 | 14,826,467 | 13,516,736 | 10,852,375 | 76,988,768 |
Accumulateddepreciation
| Accumulateddepreciation | |||||||||||||
| 31December2022 | 2,208,458 | 4,843,978 | 3,595,671 | 5,577,042 | 3,210,478 | 5,480,050 | 24,915,677 | ||||||
| Transferfrominvestmentpropertiesinthecurrentperiod(Note4(10)) | 36,510 | - | - | - | - | - | 36,510 | ||||||
| Provisioninthecurrentperiod | 321,627 | 494,245 | 372,768 | 627,401 | 522,665 | 801,255 | 3,139,961 | ||||||
| Businesscombinationsinvolvingenterprisesnotundercommoncontrol | 17,347 | 3,171 | 220 | - | 7,520 | 2,974 | 31,232 | ||||||
| Transfertoinvestmentpropertiesinthecurrentperiod(Note4(10)) | (9,610) | - | - | - | - | - | (9,610) | ||||||
| Decreaseduetodisposalofsubsidiariesinthecurrentperiod | - | (787) | (2,131) | - | (3,740) | (10,312) | (16,970) | ||||||
| Otherdecreasesinthecurrentperiod | (9,686) | (513,877) | (126,957) | (59,853) | (81,489) | (191,656) | (983,518) | ||||||
| Effectoftranslationofforeigncurrencyfinancialstatements | (7,162) | 21,970 | 15,033 | - | 40,643 | (5,000) | 65,484 | ||||||
| 30June2023 | 2,557,484 | 4,848,700 | 3,854,604 | 6,144,590 | 3,696,077 | 6,077,311 | 27,178,766 |
Provisionforimpairmentloss
| Provisionforimpairmentloss | |||||||||||||
| 31December2022 | - | - | - | - | 1,633 | 28,734 | 30,367 | ||||||
| Increaseinthecurrentyear | - | - | - | - | - | - | - | ||||||
| 30June2023 | - | - | - | - | 1,633 | 28,734 | 30,367 |
Carryingamount
| Carryingamount | |||||||||||||
| 30June2023 | 22,588,328 | 2,464,960 | 1,479,114 | 8,681,877 | 9,819,026 | 4,746,330 | 49,779,635 | ||||||
| 31December2022 | 18,529,197 | 2,516,835 | 1,550,147 | 7,766,736 | 7,838,395 | 5,456,094 | 43,657,404 |
S.F.HOLDINGCO.,LTD.NOTESTOTHEFINANCIALSTATEMENTSFORTHESIXMONTHSENDED30JUNE2023(AllamountsinRMB’000Yuanunlessotherwisestated)[Englishtranslationforreferenceonly]
4Notestotheconsolidatedfinancialstatements(Cont’d)
(11)Fixedassets(Cont’d)(i)Asat30June2023,theGroup'sholdingsofhousingbuildingsincludedfreeholdlandthatdidnot
requiredepreciation.(ii)Forthesixthmonthsended30June2023,theaggregateamountofdepreciationexpenses
chargedtocostofrevenue,sellinganddistributionexpenses,generalandadministrativeexpenses
andresearchanddevelopmentexpenseswasRMB3,133,243,000(Forthesixthmonthsended30
June2022:RMB2,805,586,000).(iii)Asat30June2023,fixedassetswithcarryingamountofRMB538,938,000(31December2022:
RMB486,847,000)werepledgedascollateralforshort-termandlong-termborrowings(Note
4(19)(b)andNote4(26)(c)).(iv)Fixedassetswithpendingcertificatesofownership
| 30June2023 | ||||||
| Cost | Accumulateddepreciation | Provisionforimpairmentloss | Carryingamount | |||
Buildings
| Buildings | 6,116,680 | (115,084) | - | 6,001,596 |
31December2022
| 31December2022 | ||||||
| Cost | Accumulateddepreciation | Provisionforimpairmentloss | Carryingamount | |||
Buildings
| Buildings | 4,147,265 | (93,939) | - | 4,053,326 |
Inaddition,asat30June2023,buildingswithcarryingamountofRMB18,858,000(31December
2022:carryingamountofRMB19,562,000)representedpublicrentalhouseswithrestricted
propertyrightspurchasedbytheGroupforenterprisetalents.
S.F.HOLDINGCO.,LTD.NOTESTOTHEFINANCIALSTATEMENTSFORTHESIXMONTHSENDED30JUNE2023
(AllamountsinRMB’000Yuanunlessotherwisestated)[Englishtranslationforreferenceonly]
4Notestotheconsolidatedfinancialstatements(Cont’d)
(11)Fixedassets(Cont’d)(v)Disposalofaircraftengines,rotablesandhigh-valueaircraftmaintenancetools
| Forthesixmonthsended30June2023 | ||||||||
| Reasonfordisposal | Cost | Accumulateddepreciation | Provisionforimpairmentloss | Carryingamount | ||||
Aircraftrotables
| Aircraftrotables | Scrapped | 5,668 | (2,255) | - | 3,413 | ||||
| Aircraftrotables | Sold | 478 | (201) | - | 277 | ||||
| High-valuemaintenancetools | Scrapped | 4,884 | (3,211) | - | 1,673 | ||||
| 11,030 | (5,667) | - | 5,363 |
Forthesixmonthsended30June2022
| Forthesixmonthsended30June2022 | ||||||||
| Reasonfordisposal | Cost | Accumulateddepreciation | Provisionforimpairmentloss | Carryingamount | ||||
Aircraftrotables
| Aircraftrotables | Scrapped | 3,592 | (1,723) | - | 1,869 | ||||
| Aircraftrotables | Sold | 153 | (39) | - | 114 | ||||
| High-valuemaintenancetools | Scrapped | 127 | (127) | - | - | ||||
| 3,872 | (1,889) | - | 1,983 |
S.F.HOLDINGCO.,LTD.NOTESTOTHEFINANCIALSTATEMENTSFORTHESIXMONTHSENDED30JUNE2023
(AllamountsinRMB’000Yuanunlessotherwisestated)[Englishtranslationforreferenceonly]4Notestotheconsolidatedfinancialstatements(Cont’d)
(12)Constructioninprogress
| (13) | 30June2023 | 31December2022 |
IndustrialParkProjects
| IndustrialParkProjects | 4,262,316 | 7,055,896 | |
| ProjectofDistributionHubs | 633,433 | 2,082,661 | |
| Aircraftimportandrefit | 444,860 | 1,106,470 | |
| QianhaiS.F.HeadquartersOffice | - | 158,959 | |
| Others | 802,385 | 745,874 | |
| 6,142,994 | 11,149,860 |
Including:Balanceofprovisionfor
impairmentlossattheendoftheperiod
| Including:Balanceofprovisionforimpairmentlossattheendoftheperiod | - | 1,145 |
S.F.HOLDINGCO.,LTD.NOTESTOTHEFINANCIALSTATEMENTSFORTHESIXMONTHSENDED30JUNE2023(AllamountsinRMB’000Yuanunlessotherwisestated)[Englishtranslationforreferenceonly]
4Notestotheconsolidatedfinancialstatements(Cont’d)
(12)Constructioninprogress(Cont’d)
| Nameofprojects | Budget | 31December2022 | Increaseinthecurrentperiod | Transfertootherlong-termassetsinthecurrentperiod(iii) | Otherdecreasesinthecurrentyear | 30June2023 | %ofprojectinvestmentinbudget(ii) | Progressofproject | Accumulativeamountofcapitalisedborrowingcosts | Including:Borrowingcostscapitalisedinthecurrentperiod(Note4(41)) | Capitalisationrate | Sourceoffunds |
IndustrialParkProjects
| IndustrialParkProjects | 18,769,378 | 7,055,896 | 1,229,184 | (4,022,540) | (224) | 4,262,316 | 86.77% | 86.77% | 180,977 | 62,470 | 2.75% | Self-ownedfundsandloansfromfinancialinstitutions | ||||||
| ProjectofDistributionHubs | 19,552,952 | 2,082,661 | 1,323,496 | (2,772,319) | (405) | 633,433 | 72.93% | 72.93% | - | - | - | Self-ownedfunds | ||||||
| Aircraftimportandrefit | 1,572,937 | 1,106,470 | 762,174 | (1,414,501) | (9,283) | 444,860 | 48.46% | 48.46% | - | - | - | Self-ownedfunds | ||||||
| QianhaiS.F.HeadquartersOffice | 1,075,268 | 158,959 | 9,597 | (168,556) | - | - | 100.00% | 100.00% | 91,777 | - | - | Self-ownedfundsandloansfromfinancialinstitutions | ||||||
| Others | 745,874 | 341,924 | (273,488) | (11,925) | 802,385 | - | - | - | Self-ownedfunds | |||||||||
| 11,149,860 | 3,666,375 | (8,651,404) | (21,837) | 6,142,994 | 272,754 | 62,470 |
(i)Asat30June2023,theGroupassessedthatnoimpairmentlossshouldberecognisedforconstructioninprogress.(ii)Foraircraftimportandrefit,thepercentageofprojectinvestmentinbudgetisrelatedtotheinvestmentforthecurrentperiod;fortheotherprojects,the
percentageofprojectinvestmentinbudgetisrelatedtotheaccumulativeinvestment.(iii)Theconstructioninprogresstransferredtolong-termassetsforthecurrentperiodamountedtoRMB8,651,404,000,includingRMB8,194,486,000
transferredtofixedassets,RMB172,856,000transferredtoinvestmentpropertiesandRMB284,062,000transferredtolong-termprepaidexpenses.
S.F.HOLDINGCO.,LTD.NOTESTOTHEFINANCIALSTATEMENTSFORTHESIXMONTHSENDED30JUNE2023
(AllamountsinRMB’000Yuanunlessotherwisestated)[Englishtranslationforreferenceonly]
4Notestotheconsolidatedfinancialstatements(Cont’d)
(13)Right-of-useassets
| Buildings | Motorvehicles | Machineryandequipmentandothers | Total |
Cost
| Cost | ||||||||
| 31December2022 | 27,068,199 | 671,644 | 63,117 | 27,802,960 | ||||
| Increaseinthecurrentperiod | 3,118,534 | 46,061 | 27,773 | 3,192,368 | ||||
| Decreaseinthecurrentperiod | (1,150,642) | (214,385) | (4,502) | (1,369,529) | ||||
| Effectoftranslationofforeigncurrencyfinancialstatements | 121,317 | 3,588 | 2,071 | 126,976 | ||||
| 30June2023 | 29,157,408 | 506,908 | 88,459 | 29,752,775 |
Accumulateddepreciation
| Accumulateddepreciation | ||||||||
| 31December2022 | 12,093,629 | 255,382 | 24,174 | 12,373,185 | ||||
| Provisioninthecurrentperiod | 3,517,226 | 84,600 | 6,314 | 3,608,140 | ||||
| Decreaseinthecurrentperiod | (818,397) | (149,937) | (2,498) | (970,832) | ||||
| Effectoftranslationofforeigncurrencyfinancialstatements | 38,190 | (1,410) | 296 | 37,076 | ||||
| 30June2023 | 14,830,648 | 188,635 | 28,286 | 15,047,569 |
Carryingamount
| Carryingamount | ||||||||
| 30June2023 | 14,326,760 | 318,273 | 60,173 | 14,705,206 | ||||
| 31December2022 | 14,974,570 | 416,262 | 38,943 | 15,429,775 |
Asat30June2023and31December2022,theGroupconsideredthatnoimpairmentlossshouldberecognisedforright-of-useassets.
S.F.HOLDINGCO.,LTD.NOTESTOTHEFINANCIALSTATEMENTSFORTHESIXMONTHSENDED30JUNE2023
(AllamountsinRMB’000Yuanunlessotherwisestated)[Englishtranslationforreferenceonly]
4Notestotheconsolidatedfinancialstatements(Cont’d)
(14)Intangibleassets
| Landuserights | Purchasedsoftware | Self-developedsoftware | Trademarkrights | Customerrelationships | Others | Total |
Cost
| Cost | |||||||||||||
| 31December2022 | 7,443,805 | 870,092 | 6,312,249 | 4,887,350 | 5,855,067 | 337,155 | 25,705,718 | ||||||
| Transferfromotherlong-termassetsinthecurrentperiod(Note4(10)andNote4(15)) | 32,152 | - | 561,705 | - | - | - | 593,857 | ||||||
| Businesscombinationsinvolvingenterprisesnotundercommoncontrolincreased | 23,582 | - | - | - | 28,259 | - | 51,841 | ||||||
| Additioninthecurrentperiod | - | 68,632 | - | 20 | - | 5,448 | 74,100 | ||||||
| Transfertootherlong-termassetsinthecurrentyear(Note4(10)) | (95,147) | - | - | - | - | - | (95,147) | ||||||
| Decreaseduetodisposalofsubsidiariesinthecurrentperiod | - | - | (103,911) | - | - | - | (103,911) | ||||||
| Otherdisposalinthecurrentperiod | - | (127,770) | - | (67) | - | (1,113) | (128,950) | ||||||
| Effectoftranslationofforeigncurrencyfinancialstatements | 23,369 | 8,694 | - | 162,973 | 192,238 | 4,408 | 391,682 | ||||||
| 30June2023 | 7,427,761 | 819,648 | 6,770,043 | 5,050,276 | 6,075,564 | 345,898 | 26,489,190 |
S.F.HOLDINGCO.,LTD.NOTESTOTHEFINANCIALSTATEMENTSFORTHESIXMONTHSENDED30JUNE2023(AllamountsinRMB’000Yuanunlessotherwisestated)[Englishtranslationforreferenceonly]
4Notestotheconsolidatedfinancialstatements(Cont’d)
(14)Intangibleassets(Cont’d)
| Landuserights | Purchasedsoftware | Self-developedsoftware | Trademarkrights | Customerrelationships | Others | Total |
Accumulatedamortisation
| Accumulatedamortisation | |||||||||||||
| 31December2022 | 694,232 | 620,438 | 3,593,934 | 584,365 | 793,438 | 178,022 | 6,464,429 | ||||||
| Transferfromotherlong-termassetsinthecurrentperiod(Note4(10)) | 2,565 | - | - | - | - | - | 2,565 | ||||||
| Businesscombinationsinvolvingenterprisesnotundercommoncontrolincreased | 5,110 | - | - | - | - | - | 5,110 | ||||||
| Provisioninthecurrentperiod | 94,620 | 48,390 | 768,650 | 121,590 | 166,839 | 16,762 | 1,216,851 | ||||||
| Transfertootherlong-termassetsinthecurrentyear(Note4(10)) | (8,036) | - | - | - | - | - | (8,036) | ||||||
| Decreaseduetodisposalofsubsidiariesinthecurrentperiod | - | - | (38,590) | - | - | - | (38,590) | ||||||
| Otherdisposalinthecurrentperiod | - | (39,502) | (19,074) | (13) | - | (714) | (59,303) | ||||||
| Effectoftranslationofforeigncurrencyfinancialstatements | (2,743) | 4,354 | - | 24,010 | 32,176 | 3,466 | 61,263 | ||||||
| 30June2023 | 785,748 | 633,680 | 4,304,920 | 729,952 | 992,453 | 197,536 | 7,644,289 |
Provisionforimpairmentloss
| Provisionforimpairmentloss | |||||||||||||
| 31December2022 | - | - | 64,595 | 4 | - | 6 | 64,605 | ||||||
| Increaseinthecurrentperiod | - | - | - | - | - | - | - | ||||||
| Decreaseinthecurrentperiod | - | - | (4,393) | - | - | - | (4,393) | ||||||
| 30June2023 | - | - | 60,202 | 4 | - | 6 | 60,212 |
30June2023
| 30June2023 | 6,642,013 | 185,968 | 2,404,921 | 4,320,320 | 5,087,111 | 148,356 | 18,784,689 | ||||||
| 31December2022 | 6,749,573 | 249,654 | 2,653,720 | 4,302,981 | 5,061,629 | 159,127 | 19,176,684 |
S.F.HOLDINGCO.,LTD.NOTESTOTHEFINANCIALSTATEMENTSFORTHESIXMONTHSENDED30JUNE2023(AllamountsinRMB’000Yuanunlessotherwisestated)[Englishtranslationforreferenceonly]
4Notestotheconsolidatedfinancialstatements(Cont’d)
(14)Intangibleassets(Cont’d)(a)Forthesixthmonthsended30June2023,theaggregateamountofamortisationexpenses
chargedtocostofrevenue,sellinganddistributionexpenses,generalandadministrativeexpensesandresearchanddevelopmentexpenseswasRMB1,156,248,000(Forthesixthmonthsended30June2022:RMB1,013,384,000).(b)Asat30June2023,intangibleassetswithcarryingamountofRMB267,554,000(31December
2022:RMB247,556,000)werepledgedascollateralforshort-termandlong-termborrowings(Note4(19)(b)andNote4(26)(c)).(c)Asat30June2023,theGroupwasstillintheprocessofapplyingforcertificatesofownershipfor
landuserightswithcarryingamountofRMB411,143,000(31December2022:carryingamountofRMB51,120,000).(d)Asat30June2023,theintangibleassetsdevelopedbytheGroupaccountedfor12.80%(31
December2022:13.84%)ofthecarryingamountofintangibleassets.
(15)Capitaliseddevelopmentexpenditures
| 31December2022 | Increaseinthecurrentperiod | Transfertointangibleassetsinthecurrentperiod(Note4(14)) | Oherdecreasesinthecurrentperiod | 30June2023 |
Systemdevelopment
| Systemdevelopment | 311,757 | 570,201 | (561,705) | (1,693) | 318,560 |
Asat30June2023and31December2022,theGroupassessedthatnoimpairmentlossshouldberecognisedforcapitaliseddevelopmentexpenditures.
S.F.HOLDINGCO.,LTD.NOTESTOTHEFINANCIALSTATEMENTSFORTHESIXMONTHSENDED30JUNE2023
(AllamountsinRMB’000Yuanunlessotherwisestated)[Englishtranslationforreferenceonly]
4Notestotheconsolidatedfinancialstatements(Cont’d)
(16)Goodwill
| 31December2022 | Increaseinthecurrentperiod(a) | Effectoftranslationofforeigncurrencyfinancialstatements | 30June2023 |
Cost:
| Cost: | |||||||
| KerryLogistics | 5,708,450 | 85,219 | 199,582 | 5,993,251 | |||
| SFSupplyChainBusiness | 3,033,680 | - | 101,503 | 3,135,183 | |||
| SF/HAVIChinaLogistics(Caymanislands)(“HAVI”) | 362,117 | - | 12,111 | 374,228 | |||
| GuangdongShunxinFreightCo.,Ltd. | 149,587 | - | - | 149,587 | |||
| Others | 94,345 | - | 603 | 94,948 | |||
| 9,348,179 | 85,219 | 313,799 | 9,747,197 |
Less:Provisionforimpairmentloss(Note4(18))
| Less:Provisionforimpairmentloss(Note4(18)) | |||||||
| Others | (2,435) | - | - | (2,435) |
9,345,744
| 9,345,744 | 85,219 | 313,799 | 9,744,762 |
(a)Goodwillincreasedinthecurrentperiodarosefromacquisitionofthe51.00%equityinterestsinathird-partylogisticsenterprise(Note5(1)(a)).
S.F.HOLDINGCO.,LTD.NOTESTOTHEFINANCIALSTATEMENTSFORTHESIXMONTHSENDED30JUNE2023
(AllamountsinRMB’000Yuanunlessotherwisestated)[Englishtranslationforreferenceonly]
4Notestotheconsolidatedfinancialstatements(Cont’d)
(16)Goodwill(Cont’d)(b)AllthegoodwillhasbeenallocatedbytheGrouptotherelevantassetgroupsorsetsofassetgroupsattheacquisitiondate.TheGroup’sallocationof
goodwillwasnotchangedforthesixmonthsended30June2023.(c)Duringthegoodwillimpairmentassessment,theGroupcomparesthecarryingamountoftherelevantassetsorsetsofassetgroups(includinggoodwill)
withtheirrecoverableamount.Iftherecoverableamountislowerthanthecarryingamount,thedifferenceshallbeincludedinprofitorlossforthecurrent
period.Asat30June2023and31December2022,theGroupassessedthatnoimpairmentlossshouldberecognisedforgoodwill.
(17)Long-termprepaidexpenses
| 31December2022 | Increaseinthecurrentperiod | Amortisationinthecurrentperiod | Otherdecreasesinthecurrentperiod | 30June2023 |
Improvementstoright-of-useassets
| Improvementstoright-of-useassets | 2,096,403 | 342,339 | (482,764) | (45,320) | 1,910,658 | ||||
| Settling-inallowanceandintroductionfeeforpilots | 836,956 | 56,763 | (51,258) | (7,057) | 835,404 | ||||
| Others | 164,262 | 39,871 | (24,220) | (4,698) | 175,215 | ||||
| 3,097,621 | 438,973 | (558,242) | (57,075) | 2,921,277 |
S.F.HOLDINGCO.,LTD.NOTESTOTHEFINANCIALSTATEMENTSFORTHESIXMONTHSENDED30JUNE2023(AllamountsinRMB’000Yuanunlessotherwisestated)[Englishtranslationforreferenceonly]
4Notestotheconsolidatedfinancialstatements(Cont’d)
(18)Credit/Assetimpairmentandprovisionforlosses
| 31December2022 | Provision/(Reversal) | Write-off | Others | Effectoftranslationofforeigncurrencyfinancialstatements | 30June2023 |
Provisionforbaddebts
| Provisionforbaddebts | 1,818,980 | (64,101) | (52,672) | (244) | 15,021 | 1,716,984 | |||||
| Including:Provisionforbaddebtsofaccountsreceivable(Note4(3)) | 1,560,244 | (65,858) | (51,717) | - | 15,019 | 1,457,688 | |||||
| Provisionforbaddebtsofotherreceivables(Note4(5)) | 239,123 | 3,935 | (955) | (244) | - | 241,859 | |||||
| Provisionforbaddebtsoflong-termreceivables(Note4(7)) | 19,613 | (2,178) | - | - | 2 | 17,437 | |||||
| Provisionforimpairmentoffactoringreceivables | 123,815 | - | - | - | - | 123,815 | |||||
| Provisionforbaddebtsofloansandadvances | 36,451 | (701) | - | - | 1,131 | 36,881 | |||||
| Sub-total | 1,979,246 | (64,802) | (52,672) | (244) | 16,152 | 1,877,680 |
Provisionforimpairmentoflong-termequityinvestments(Note4(8))
| Provisionforimpairmentoflong-termequityinvestments(Note4(8)) | 248,017 | - | - | (17,323) | - | 230,694 | |||||
| Provisionforimpairmentoffixedassets(Note4(11)) | 30,367 | - | - | - | - | 30,367 | |||||
| Provisionforimpairmentofintangibleassets(Note4(14)) | 64,605 | - | - | (4,393) | - | 60,212 | |||||
| Provisionfordeclineinthevalueofinventories | 3,539 | 2,026 | - | (2,006) | 136 | 3,695 | |||||
| Provisionforimpairmentofcontractassets | 3,400 | (1,220) | - | (111) | - | 2,069 | |||||
| Provisionforimpairmentofgoodwill(Note4(16)) | 2,435 | - | - | - | - | 2,435 | |||||
| Provisionforimpairmentofconstructioninprogress(Note4(12)) | 1,145 | - | - | (1,145) | - | - | |||||
| Sub-total | 353,508 | 806 | - | (24,978) | 136 | 329,472 | |||||
| 2,332,754 | (63,996) | (52,672) | ((25,222) | 16,288 | 2,207,152 |
S.F.HOLDINGCO.,LTD.NOTESTOTHEFINANCIALSTATEMENTSFORTHESIXMONTHSENDED30JUNE2023(AllamountsinRMB’000Yuanunlessotherwisestated)[Englishtranslationforreferenceonly]
4Notestotheconsolidatedfinancialstatements(Cont’d)
(19)Short-termborrowings
| 30June2023 | 31December2022 |
Unsecuredborrowings
| Unsecuredborrowings | 10,845,931 | 8,512,438 | |
| Guaranteedborrowings(a) | 3,341,513 | 4,224,863 | |
| Securedborrowings(b) | 48,517 | 82,496 | |
| Pledgedborrowings | - | 18,073 | |
| 14,235,961 | 12,837,870 |
(a)Asat30June2023,guaranteedborrowingsofRMB3,341,513,000(31December2022:RMB
4,224,863,000)wereguaranteedbysubsidiarieswithintheGroup.(b)Asat30June2023,securedborrowingsofRMB48,517,000(31December2022:RMB
82,496,000)wassecuredbythefollowingassetsrespectively:
| Carryingamountofsecuredassets | Including:alsosecuredforlong-termborrowings |
Fixedassets
| Fixedassets | 538,938 | 538,938 | |
| Intangibleassets | 134,462 | 134,462 | |
| 673,400 | 673,400 |
(c)Asat30June2023,theinterestraterangeoftheGroup'smajorshort-termborrowingswas2.20%
to7.21%perannum(December31,2022:2.20%to5.39%).
S.F.HOLDINGCO.,LTD.NOTESTOTHEFINANCIALSTATEMENTSFORTHESIXMONTHSENDED30JUNE2023
(AllamountsinRMB’000Yuanunlessotherwisestated)[Englishtranslationforreferenceonly]
4Notestotheconsolidatedfinancialstatements(Cont’d)
(20)Accountspayable
| 30June2023 | 31December2022 |
Payablestorelatedparties(Note8(4)(h))
| Payablestorelatedparties(Note8(4)(h)) | 409,019 | 505,241 | |
| Payablesforservicesandpurchases | 22,337,502 | 24,210,111 | |
| 22,746,521 | 24,715,352 |
Asat30June2023,accountspayablewithageingover1yearamountedtoRMB294,910,000(31December2022:RMB93,260,000),includingoutsourcingcostandtransportationcostpayable.ThefinalsettlementofthepaymenthasnotbeenmadebecausetheGrouphasnotreceivedtheinvoicefromthesuppliers.
(21)Employeebenefitspayable
| 30June2023 | 31December2022 |
Short-termemployeebenefitspayable(a)
| Short-termemployeebenefitspayable(a) | 4,931,962 | 6,093,655 | |
| Definedcontributionplanspayable(b) | 135,708 | 182,896 | |
| 5,067,670 | 6,276,551 |
(a)Short-termemployeebenefits
| 31December2022 | Increaseinthecurrentperiod | Decreaseinthecurrentperiod | 30June2023 |
Wagesorsalaries,bonus,allowancesandsubsidies
| Wagesorsalaries,bonus,allowancesandsubsidies | 5,483,052 | 14,087,661 | (15,230,553) | 4,340,160 | |||
| Employeewelfare | 52,797 | 229,424 | (222,627) | 59,594 | |||
| Socialsecuritycontributions | 76,124 | 385,360 | (391,548) | 69,936 | |||
| Including:Medicalinsurance | 68,888 | 340,891 | (347,668) | 62,111 | |||
| Workinjuryinsurance | 6,772 | 36,436 | (35,964) | 7,244 | |||
| Maternityinsurance | 464 | 8,033 | (7,916) | 581 | |||
| Housingfunds | 9,467 | 211,485 | (212,832) | 8,120 | |||
| Labourunionfundsandemployeeeducationfunds | 409,693 | 256,801 | (258,399) | 408,095 | |||
| Non-monetarybenefits | 48,862 | 660,150 | (681,596) | 27,416 | |||
| Others | 13,660 | 198,763 | (193,782) | 18,641 | |||
| 6,093,655 | 16,029,644 | (17,191,337) | 4,931,962 |
S.F.HOLDINGCO.,LTD.NOTESTOTHEFINANCIALSTATEMENTSFORTHESIXMONTHSENDED30JUNE2023(AllamountsinRMB’000Yuanunlessotherwisestated)[Englishtranslationforreferenceonly]4Notestotheconsolidatedfinancialstatements(Cont’d)
(21)Employeebenefitspayable(Cont’d)(a)Short-termemployeebenefits(Cont’d)
Non-monetarywelfareprovidedbytheGroupforemployeesprimarilywerenon-monetarysubsidiesinvariousformswhichweremeasuredatfairvalue.(b)Definedcontributionplans
| 31December2022 | Increaseinthecurrentperiod | Decreaseinthecurrentperiod | 30June2023 |
Basicpensions
| Basicpensions | 177,465 | 651,979 | (699,092) | 130,352 | |||
| Unemploymentinsurance | 5,431 | 21,128 | (21,203) | 5,356 | |||
| 182,896 | 673,107 | (720,295) | 135,708 |
(22)Taxespayable
| 30June2023 | 31December2022 |
Enterpriseincometaxpayable
| Enterpriseincometaxpayable | 1,079,281 | 1,630,863 | |
| UnpaidVAT | 735,536 | 928,371 | |
| Others | 162,424 | 201,912 | |
| 1,977,241 | 2,761,146 |
(23)Otherpayables
| 30June2023 | 31December2022 |
Accountspayabletorelatedparties(Note8(4)(j))
| Accountspayabletorelatedparties(Note8(4)(j)) | 148,208 | 220,322 | |
| Engineeringequipmentpayable | 4,893,455 | 5,557,664 | |
| Depositspayable | 1,774,793 | 1,933,887 | |
| Payablesofcashcollectedondeliveryserviceonbehalfofotherparties | 1,271,495 | 1,200,321 | |
| Rechargepayable | 957,913 | 405,579 | |
| Payablestobanksforsupplychainfinanceproducts/re-factoring | 906,282 | 992,178 | |
| Warrantypaymentspayable | 489,057 | 441,138 | |
| Managementfeespayable | 200,399 | 137,748 | |
| Professionalservicefeespayable | 150,996 | 78,339 | |
| Dividendspayable | 142,494 | 165,014 | |
| Payableforequityacquisition | 138,577 | 1,045,334 | |
| Others | 999,592 | 1,169,071 | |
| 12,073,261 | 13,346,595 |
Asat30June2023,otherpayableswithageingover1yearamountedtoRMB1,075,905,000(31December2022:RMB991,380,000),mainlytheunduedepositsofcontinuingbusinessandtheunsettledengineeringequipmentfunds.
S.F.HOLDINGCO.,LTD.NOTESTOTHEFINANCIALSTATEMENTSFORTHESIXMONTHSENDED30JUNE2023(AllamountsinRMB’000Yuanunlessotherwisestated)[Englishtranslationforreferenceonly]
4Notestotheconsolidatedfinancialstatements(Cont’d)
(24)Currentportionofnon-currentliabilities
| 30June2023 | 31December2022 |
Currentportionofleaseliabilities(Note4(28))
| Currentportionofleaseliabilities(Note4(28)) | 5,951,175 | 6,596,956 | |
| Currentportionofdebenturespayable(a) | 4,302,962 | 3,661,225 | |
| Currentportionoflong-termborrowings(Note4(26)) | 1,727,127 | 600,680 | |
| Currentportionofcash-settledshare-basedpayments | 453,778 | 296,703 | |
| Currentportionoflong-termpayables | 41,690 | 18,086 | |
| 12,476,732 | 11,173,650 |
S.F.HOLDINGCO.,LTD.NOTESTOTHEFINANCIALSTATEMENTSFORTHESIXMONTHSENDED30JUNE2023
(AllamountsinRMB’000Yuanunlessotherwisestated)[Englishtranslationforreferenceonly]
4Notestotheconsolidatedfinancialstatements(Cont’d)
(24)Currentportionofnon-currentliabilities(Cont’d)(a)Currentportionofdebenturespayable
| 31December2022 | Interestaccrual | Amortisationofpremium/discount | Reclassificationfromdebenturespayableinthecurrentperiod(Note4(27)) | Repaymentforthecurrentperiod | Effectoftranslationofforeigncurrencyfinancialstatements | 30June2023 |
OverseasdebenturesdenominatedinUSDof2018
| OverseasdebenturesdenominatedinUSDof2018 | 3,547,743 | 82,423 | 3,765 | - | (84,133) | 139,796 | 3,689,594 | ||||||
| GreenCorporateDebenturesof2021(1stinstalment) | 12,844 | - | - | 509,321 | (18,950) | - | 503,215 | ||||||
| Otherdebenturesinterestpayable | 100,638 | - | - | 259,060 | (251,397) | 1,852 | 110,153 | ||||||
| 3,661,225 | 82,423 | 3,765 | 768,381 | (354,480) | 141,648 | 4,302,962 |
S.F.HOLDINGCO.,LTD.NOTESTOTHEFINANCIALSTATEMENTSFORTHESIXMONTHSENDED30JUNE2023(AllamountsinRMB’000Yuanunlessotherwisestated)[Englishtranslationforreferenceonly]4Notestotheconsolidatedfinancialstatements(Cont’d)
(25)Othercurrentliabilities
| 30June2023 | 31December2022 |
Extra-shorttermcommercialnotes(a)
| Extra-shorttermcommercialnotes(a) | 1,509,936 | 4,041,584 | |
| Short-termcorporatedebentures | - | 1,020,773 | |
| Others | 116,802 | 59,919 | |
| 1,626,738 | 5,122,276 |
(a)TheExtra-shorttermcommercialnotesaredetailedasfollows:
| Parvalue | Dateofissue | Term | Interestrate |
TheFirstPhaseof2023
| TheFirstPhaseof2023 | 500,000 | 17February2023 | 260days | 2.40% | |||
| TheSecondPhaseof2023 | 1,000,000 | 31March2023 | 270days | 2.30% |
(26)Long-termborrowings
| 30June2023 | 31December2022 |
Guaranteedborrowings(a)
| Guaranteedborrowings(a) | 4,921,683 | 5,901,392 | |
| Pledgedborrowings(b) | 2,017,797 | 1,487,597 | |
| Unsecuredborrowings | 5,057,624 | 553,843 | |
| Securedborrowings(c) | 543,105 | 129,858 | |
| 12,540,209 | 8,072,690 |
Less:Currentportionoflong-term
borrowings(Note4(24))
| Less:Currentportionoflong-termborrowings(Note4(24)) | |||
| Guaranteedborrowings | (10,142) | (50,087) | |
| Pledgedborrowings | (619,652) | (461,929) | |
| Unsecuredborrowings | (1,058,848) | (52,249) | |
| Securedborrowings | (38,485) | (36,415) | |
| (1,727,127) | (600,680) | ||
| 10,813,082 | 7,472,010 |
S.F.HOLDINGCO.,LTD.NOTESTOTHEFINANCIALSTATEMENTSFORTHESIXMONTHSENDED30JUNE2023(AllamountsinRMB’000Yuanunlessotherwisestated)[Englishtranslationforreferenceonly]
4Notestotheconsolidatedfinancialstatements(Cont’d)
(26)Long-termborrowings(Cont’d)(a)Asat30June2023,theGroup’sguaranteedborrowingsofRMB4,891,683,000(31December
2022:RMB5,865,597,000)wereguaranteedbysubsidiarieswithintheGroupandguaranteedborrowingsofRMB30,000,000(31December2022:RMB35,795,000)wereguaranteedbyShenzhenS.F.TaisenHoldings(Group)Co.,Ltd.(“TaisenHoldings”)andHavi.(b)Asat30June2023,theentitlementtoreceivablesarisingfromaircraftfinancialleasingbusinessof
subsidiarySFAirlinesCompanyLimited(“SFAirlines”)waspledgedbysubsidiaryShunyuanFinancialLeasing(Tianjin)Co.,Ltd.(“ShunyuanFinancialLeasing”)forthepledgedbankborrowingsofRMB2,017,797,000(31December2022:RMB1,487,597,000).Asat30June2023,balanceofreceivablespledgedwasRMB2,244,388,000(31December2022:RMB1,670,516,000).(c)Asat30June2023,securedborrowingsofRMB543,105,000weresecuredbythefollowing
assetsrespectively:
| Carryingamountofsecuredassets | Including:alsosecuredforshort-termborrowings |
Fixedassets
| Fixedassets | 538,938 | 538,938 | |
| Intangibleassets | 267,554 | 134,462 | |
| Investmentproperties | 108,394 | - | |
| 914,886 | 673,400 |
Asat31December2022,securedborrowingsofRMB129,858,000weresecuredbythefollowingassetsrespectively:
| Carryingamountofsecuredassets | Including:alsosecuredforshort-termborrowings |
Fixedassets
| Fixedassets | 486,847 | 486,847 | |
| Intangibleassets | 247,556 | 113,059 | |
| Investmentproperties | 104,571 | - | |
| 838,974 | 599,906 |
Besides,asat30June2023,TaisenHoldingsprovidedafulljointandseveralliabilityguaranteeforRMB497,000,000oftheabovesecuredborrowings(31December2022:RMB3,000,000).(d)Asat30June2023,therangeofannualinterestratesofmajorlong-termborrowingswas2.20%to
6.35%(31December2022:3.02%to5.77%).
S.F.HOLDINGCO.,LTD.NOTESTOTHEFINANCIALSTATEMENTSFORTHESIXMONTHSENDED30JUNE2023
(AllamountsinRMB’000Yuanunlessotherwisestated)[Englishtranslationforreferenceonly]
4Notestotheconsolidatedfinancialstatements(Cont’d)
(27)Debenturespayable
| 31December2022 | Interestaccrual | Amortisationofpremium/discount | Effectoftranslationofforeigncurrencyfinancialstatements | Currentportionofdebenturespayable(Note4(24)) | 30June2023 |
OverseasdebenturesdenominatedinUSDof2020
| OverseasdebenturesdenominatedinUSDof2020 | 4,829,576 | 68,573 | 3,433 | 189,742 | (68,573) | 5,022,751 | |||||
| GreenCorporateDebenturesof2021(1stinstalment) | 499,677 | 9,523 | 121 | - | (509,321) | - | |||||
| OverseasdebenturesdenominatedinUSDof2021 | 8,306,504 | 118,194 | 4,729 | 325,997 | (118,194) | 8,637,230 | |||||
| OverseasdebenturesdenominatedinUSDof2022 | 4,792,189 | 65,375 | 7,854 | 188,120 | (65,375) | 4,988,163 | |||||
| SmoothFreightLogisticsDebentures(1stinstalment) | 499,562 | 6,918 | 77 | - | (6,918) | 499,639 | |||||
| 18,927,508 | 268,583 | 16,214 | 703,859 | (768,381) | 19,147,783 |
S.F.HOLDINGCO.,LTD.NOTESTOTHEFINANCIALSTATEMENTSFORTHESIXMONTHSENDED30JUNE2023
(AllamountsinRMB’000Yuanunlessotherwisestated)[Englishtranslationforreferenceonly]
4Notestotheconsolidatedfinancialstatements(Cont’d)
(27)Debenturespayable(Cont’d)
| Issuer | Currency | Parvalue | Dateofissue | Term | Amount(equivalenttoRMB) | Nominalinterestrate |
GreenCorporateDebenturesof2021(1stinstalment)
| GreenCorporateDebenturesof2021(1stinstalment) | TaisenHoldings | RMB | 500,000 | 26April2021 | 3years | 500,000 | 3.79% | |||||
| OverseasdebenturesdenominatedinUSDof2020 | SFHoldingInvestmentLimited | USD | 700,000 | 20February2020 | 10years | 5,058,060 | 2.88% | |||||
| OverseasdebenturesdenominatedinUSDof2021 | SFHoldingInvestment2021Limited | USD | 400,000 | 17November2021 | 5years | 2,890,320 | 2.38% | |||||
| OverseasdebenturesdenominatedinUSDof2021 | SFHoldingInvestment2021Limited | USD | 300,000 | 17November2021 | 7years | 2,167,740 | 3.00% | |||||
| OverseasdebenturesdenominatedinUSDof2021 | SFHoldingInvestment2021Limited | USD | 500,000 | 17November2021 | 10years | 3,612,900 | 3.13% | |||||
| OverseasdebenturesdenominatedinUSDof2022 | SFHoldingInvestment2021Limited | USD | 400,000 | 28January2022 | 5years | 2,890,320 | 2.38% | |||||
| OverseasdebenturesdenominatedinUSDof2022 | SFHoldingInvestment2021Limited | USD | 300,000 | 28January2022 | 10years | 2,167,740 | 3.13% | |||||
| SmoothFreightLogisticsDebentures(1stinstalment) | TaisenHoldings | RMB | 500,000 | 22September2022 | 3years | 500,000 | 2.79% |
(28)Leaseliabilities
| 30June2023 | 31December2022 |
Leaseliabilities
| Leaseliabilities | 14,491,222 | 15,179,328 | |
| Less:Currentportionofleaseliabilities(Note4(24)) | (5,951,175) | (6,596,956) | |
| 8,540,047 | 8,582,372 |
S.F.HOLDINGCO.,LTD.NOTESTOTHEFINANCIALSTATEMENTSFORTHESIXMONTHSENDED30JUNE2023(AllamountsinRMB’000Yuanunlessotherwisestated)[Englishtranslationforreferenceonly]
4Notestotheconsolidatedfinancialstatements(Cont’d)
(29)Deferredincome
| 31December2022 | Increaseinthecurrentperiod | Amountrecognisedinotherincomeinthecurrentperiod | 30June2023 |
Asset/revenue
related
| Asset/revenuerelated | ||||
| Governmentgrants | (Note4(43)) |
Governmentsupportfundsforindustrialpark
| Governmentsupportfundsforindustrialpark | 359,122 | 114,327 | (3,051) | 470,398 | Relatedtoassets | |||
| HuanggangBaitanLakeOrganisingCommitteeProject | 419,578 | - | (10,380) | 409,198 | Relatedtoassets | |||
| Grantformaintenanceofaircraftengines | 7,331 | - | (793) | 6,538 | Relatedtoassets | |||
| Others | 74,760 | 15,840 | (13,291) | 77,309 | Relatedtoassets | |||
| 860,791 | 130,167 | (27,515) | 963,443 |
S.F.HOLDINGCO.,LTD.NOTESTOTHEFINANCIALSTATEMENTSFORTHESIXMONTHSENDED30JUNE2023(AllamountsinRMB’000Yuanunlessotherwisestated)[Englishtranslationforreferenceonly]
4Notestotheconsolidatedfinancialstatements(Cont’d)
(30)Deferredtaxassetsanddeferredtaxliabilities(a)Deferredtaxassetsbeforeoffsetting
| 30June2023 | 31December2022 | |||||
| Deductibletemporarydifferencesanddeductibletaxlosses | Deferredtaxassets | Deductibletemporarydifferencesanddeductibletaxlosses | Deferredtaxassets | |||
Deductibletaxlosses
| Deductibletaxlosses | 4,067,977 | 899,790 | 3,090,230 | 699,863 | |||
| Depreciationandamortisationdifferences | 2,272,267 | 515,076 | 2,175,284 | 502,343 | |||
| Accruedexpenses | 2,035,119 | 494,148 | 2,288,228 | 551,443 | |||
| Leaseliabilities | 13,540,448 | 3,107,431 | 13,965,422 | 3,187,174 | |||
| Provisionforassetimpairment | 784,589 | 174,144 | 700,865 | 167,412 | |||
| Unrealisedprofitsfrominternaltransactions | 505,731 | 126,433 | 579,524 | 144,881 | |||
| Others | 271,948 | 64,326 | 301,226 | 70,426 | |||
| 23,478,079 | 5,381,348 | 23,100,779 | 5,323,542 |
Including:
| Including: | |||||
| Expectedtoberecoveredwithinoneyear(inclusive) | 2,060,646 | 2,219,959 | |||
| Expectedtoberecoveredafteroneyear | 3,320,702 | 3,103,583 | |||
| 5,381,348 | 5,323,542 | ||||
(b)Deductibletaxlossesanddeductibletemporarydifferencesthatarenotrecognisedasdeferredtax
assetsareanalysedasfollows:
| 30June2023 | 31December2022 |
Deductibletaxlosses(c)
| Deductibletaxlosses(c) | 21,273,603 | 20,086,770 | |
| Deductibletemporarydifferences | 1,120,175 | 1,133,829 | |
| 22,393,778 | 21,220,599 |
S.F.HOLDINGCO.,LTD.NOTESTOTHEFINANCIALSTATEMENTSFORTHESIXMONTHSENDED30JUNE2023(AllamountsinRMB’000Yuanunlessotherwisestated)[Englishtranslationforreferenceonly]
4Notestotheconsolidatedfinancialstatements(Cont’d)
(30)Deferredtaxassetsanddeferredtaxliabilities(Cont’d)(c)Thefollowingtableshowsunrecogniseddeductibletaxlossesbasedonitsexpirationdate:
| 30June2023 | 31December2022 |
2023
| 2023 | 751,697 | 793,083 | |
| 2024 | 1,416,065 | 1,568,941 | |
| 2025 | 4,416,935 | 4,764,110 | |
| 2026 | 4,972,158 | 5,702,895 | |
| 2027 | 3,245,959 | 4,334,208 | |
| 2028andsubsequentyears | 6,470,789 | 2,923,533 | |
| 21,273,603 | 20,086,770 |
(d)Deferredtaxliabilitiesbeforeoffsetting
| 30June2023 | 31December2022 | |||||
| Taxabletemporarydifferences | Deferredtaxliabilities | Taxabletemporarydifferences | Deferredtaxliabilities | |||
Appreciationinassetvaluearisingfrombusinesscombinationsinvolvingenterprisesnotundercommoncontrol
| Appreciationinassetvaluearisingfrombusinesscombinationsinvolvingenterprisesnotundercommoncontrol | 12,892,899 | 3,119,643 | 12,956,677 | 3,137,944 | |||
| Depreciationandamortisationdifferences | 7,821,992 | 1,811,691 | 7,153,559 | 1,691,289 | |||
| Changesinfairvalueoffinancialassets | 1,455,877 | 363,969 | 1,424,987 | 356,247 | |||
| Right-of-useassets | 12,978,881 | 2,978,743 | 13,379,139 | 3,052,235 | |||
| Others | 654,059 | 146,293 | 548,082 | 110,817 | |||
| 35,803,708 | 8,420,339 | 35,462,444 | 8,348,532 |
Including:
| Including: | |||||
| Expectedtoberecoveredwithinoneyear(inclusive) | 1,848,850 | 2,073,413 | |||
| Expectedtoberecoveredafteroneyear | 6,571,489 | 6,275,119 | |||
| 8,420,339 | 8,348,532 | ||||
S.F.HOLDINGCO.,LTD.NOTESTOTHEFINANCIALSTATEMENTSFORTHESIXMONTHSENDED30JUNE2023(AllamountsinRMB’000Yuanunlessotherwisestated)[Englishtranslationforreferenceonly]
4Notestotheconsolidatedfinancialstatements(Cont’d)
(30)Deferredtaxassetsanddeferredtaxliabilities(Cont’d)(e)Thenetbalancesofdeferredtaxassetsanddeferredtaxliabilitiesafteroffsettingareasfollows:
| 30June2023 | 31December2022 |
Deferredtaxassets,net
| Deferredtaxassets,net | 1,780,327 | 1,632,964 |
Deferredtaxliabilities,net
| Deferredtaxliabilities,net | 4,819,318 | 4,657,954 |
(31)Sharecapital
| 31December2022 | Increaseinthecurrentperiod | Decreaseinthecurrentperiod | 30June2023 |
OrdinarysharesdenominatedinRMB
| OrdinarysharesdenominatedinRMB | 4,895,202 | - | - | 4,895,202 |
31December
2021
| 31December2021 | Increaseinthecurrentperiod | Decreaseinthecurrentperiod(Note4(33)) | 30June2022 |
OrdinarysharesdenominatedinRMB
| OrdinarysharesdenominatedinRMB | 4,906,213 | - | (11,011) | 4,895,202 |
S.F.HOLDINGCO.,LTD.NOTESTOTHEFINANCIALSTATEMENTSFORTHESIXMONTHSENDED30JUNE2023(AllamountsinRMB’000Yuanunlessotherwisestated)[Englishtranslationforreferenceonly]
4Notestotheconsolidatedfinancialstatements(Cont’d)
(32)Capitalreserve
| 31December2022 | 30June2023 | |||||
| Increaseinthecurrentperiod | Decreaseinthecurrentperiod |
Sharepremium
| Sharepremium | |||||||
| -Capitalcontributionbyshareholders | 34,978,720 | 890 | - | 34,979,610 | |||
| -Transferofconvertiblecorporatedebenturestosharecapital | 5,758,688 | - | - | 5,758,688 | |||
| -Capitalreservefromtransactionswithminorityshareholders | 225,677 | - | (11,444) | 214,233 | |||
| -Transferofconvertiblecorporatedebenturesissuedbysubsidiariestosharecapital | 1,980,870 | - | - | 1,980,870 | |||
| -Businesscombinationsinvolvingenterprisesundercommoncontrol | (76,633) | - | - | (76,633) | |||
| Othercapitalreserve | |||||||
| -Share-basedpaymentsincludedincapitalreserve | 675,189 | 151,413 | - | 826,602 | |||
| -Others | 453,726 | (3,041) | 450,685 | ||||
| 43,996,237 | 152,303 | (14,485) | 44,134,055 |
31December
2021
| 31December2021 | 30June2022 | |||||
| Increaseinthecurrentperiod | Decreaseinthecurrentperiod |
Sharepremium
| Sharepremium | |||||||
| -Capitalcontributionbyshareholders(Note4(33)) | 35,362,702 | - | (383,982) | 34,978,720 | |||
| -Transferofconvertiblecorporatedebenturestosharecapital | 5,758,688 | - | - | 5,758,688 | |||
| -Capitalreservefromtransactionswithminorityshareholders | 2,279,859 | 591 | (1,986,036) | 294,414 | |||
| -Transferofconvertiblecorporatedebenturesissuedbysubsidiariestosharecapital | 1,980,870 | - | - | 1,980,870 | |||
| -Businesscombinationsinvolvingenterprisesundercommoncontrol | (76,633) | - | - | (76,633) | |||
| Othercapitalreserve | |||||||
| -Share-basedpaymentsincludedincapitalreserve | 552,190 | 79,674 | - | 631,864 | |||
| -Others | 342,922 | 16,484 | - | 359,406 | |||
| 46,200,598 | 96,749 | (2,370,018) | 43,927,329 |
S.F.HOLDINGCO.,LTD.NOTESTOTHEFINANCIALSTATEMENTSFORTHESIXMONTHSENDED30JUNE2023(AllamountsinRMB’000Yuanunlessotherwisestated)[Englishtranslationforreferenceonly]
4Notestotheconsolidatedfinancialstatements(Cont’d)
(33)Treasurystock
| 31December2022 | 30June2023 | |||||
| Increaseinthecurrentperiod | Decreaseinthecurrentperiod |
Treasurystock
| Treasurystock | 2,040,377 | 59,936 | - | 2,100,313 | |||
| 31December2021 | 30June2022 | ||||||
| Increaseinthecurrentperiod | Decreaseinthecurrentperiod |
Treasurystock
| Treasurystock | 394,993 | 1,899,241 | (394,993) | 1,899,241 |
(i)InaccordancewiththeProposalofRepurchasingSharesbyCentralisedPriceBiddingapprovedin
the19thsessionofthefourthBoardofDirectorson31January2019,theCompanyuseditsownfundstorepurchase11,010,729sharesthroughcentralizedbidding.Thecompany'sshareswereusedforemployeestockownershipplanorequityincentive,andatotalofRMB394,993,000ofTreasurystockswererecognised.AccordingtotherelevantlawsandregulationsandtheArticlesofAssociation,theabove-mentionedrepurchasedsharesshouldbetransferredorcancelledwithinthreeyears.SincetheCompanyhasnotlaunchedanemployeestockownershipplanorequityincentivewithinthreeyearsaftertheimplementationoftheabove-mentionedsharerepurchase,approvedbythe21stmeetingofthefifthBoardofDirectorsandthefirstextraordinarygeneralmeetingin2022,theCompanycompletedthecancellationoftherepurchased11,010,729shares,therebyoffsettingthetreasurystocksofRMB394,993,000,ofwhichthesharecapitalwasreducedbyRMB11,011,000andcapitalreservewasreducedbyRMB383,982,000.Inaddition,inaccordancewiththeProposalofRepurchasingSharesbyCentralisedPriceBiddingapprovedinthe22thsessionofthefifthBoardofDirectorson2March2022andinthe28thsessionofthefifthBoardofDirectorson22September2022,theCompanyrepurchasedaportionofAsharesissuedtothepublicforemployeestockownershipplanorequityincentivethroughcentralisedpricebiddingbyself-ownedfunds.Asat30June2023,theCompanyrepurchasedatotalof40,740,183shares,andrecognisedtreasurystockofRMB2,100,313,000.
S.F.HOLDINGCO.,LTD.NOTESTOTHEFINANCIALSTATEMENTSFORTHESIXMONTHSENDED30JUNE2023
(AllamountsinRMB’000Yuanunlessotherwisestated)[Englishtranslationforreferenceonly]
4Notestotheconsolidatedfinancialstatements(Cont’d)
(34)Specialreserve
| 31December2022 | Increaseinthecurrentperiod | Decreaseinthecurrentperiod | 30June2023 |
Safetyreserve
| Safetyreserve | - | 18,568 | (18,568) | - |
31December
2021
| 31December2021 | Increaseinthecurrentperiod | Decreaseinthecurrentperiod | 30June2022 |
Safetyreserve
| Safetyreserve | - | 14,589 | (14,589) | - |
PursuanttotheAdministrativeMeasuresfortheCollectionandUtilisationofEnterpriseWorkSafetyFunds(CaiZi[2022]No.136)issuedbytheMinistryofFinanceandtheStateAdministrationofWorkSafetyon21November2022,1%oftheincomefromthe“Commoncargotransportationbusiness”whichisoperatedbycertainsubsidiariesoftheGroupisappropriatedtosafetyreserve.Thesafetyreserveisrecognisedinprofitorlossasthe"Specialreserve"itemforthecurrentperiod.Whentheaccruedsafetyreserveisusedundertheprescribedconditions,itiswrittenoffagainsttheoriginalamountdirectly.
(35)Surplusreserve
| 31December2022 | Increaseinthecurrentperiod | Decreaseinthecurrentperiod | 30June2023 |
Statutorysurplusreserve
| Statutorysurplusreserve | 1,010,253 | - | - | 1,010,253 |
31December
2021
| 31December2021 | Increaseinthecurrentperiod | Decreaseinthecurrentperiod | 30June2022 |
Statutorysurplusreserve
| Statutorysurplusreserve | 947,775 | - | - | 947,775 |
S.F.HOLDINGCO.,LTD.NOTESTOTHEFINANCIALSTATEMENTSFORTHESIXMONTHSENDED30JUNE2023(AllamountsinRMB’000Yuanunlessotherwisestated)[Englishtranslationforreferenceonly]
4Notestotheconsolidatedfinancialstatements(Cont’d)
(36)Retainedearnings
| Forthesixmonthsended30June | ||
| 2023 | 2022 | |
Retainedearningsatthebeginningoftheperiod
| Retainedearningsatthebeginningoftheperiod | 33,371,351 | 28,245,764 | |
| Add:Netprofitattributabletoshareholdersoftheparentcompanyforthecurrentperiod | 4,176,282 | 2,512,397 | |
| Transferfromothercomprehensiveincometoretainedearnings | 18 | 1 | |
| Less:Ordinarysharedividendspayable(a) | (1,213,616) | (874,518) | |
| Retainedearningsattheendoftheperiod | 36,334,035 | 29,883,644 |
(a)TheCompanyheldashareholders’meetingon27April2023.Onthebasisofthetotalsharecapital
attheregistrationdateonwhichthe2022profitdistributionplanwasimplementedlessthespecialsharesrepurchasedbytheCompany,atotalofRMB1,213,616,000ofcashdividendsweredistributedtoallshareholdersatRMB2.50(includingtax)per10shares,withoutbonussharesbeinggivenorcapitalreservebeingtransferredintothesharecapital.
(37)Revenueandcostofrevenue
| Forthesixmonthsended30June | ||
| 2023 | 2022 | |
Revenuefrommainoperations(a)
| Revenuefrommainoperations(a) | 124,148,438 | 129,885,642 | |
| Revenuefromotheroperations(a) | 217,160 | 178,491 | |
| Totalrevenue | 124,365,598 | 130,064,133 |
Costofrevenuefrommainoperations
| Costofrevenuefrommainoperations | 107,411,483 | 113,673,926 | |
| Costofrevenuefromotheroperations | 143,797 | 104,384 | |
| Totalcostofrevenue | 107,555,280 | 113,778,310 |
S.F.HOLDINGCO.,LTD.NOTESTOTHEFINANCIALSTATEMENTSFORTHESIXMONTHSENDED30JUNE2023
(AllamountsinRMB’000Yuanunlessotherwisestated)[Englishtranslationforreferenceonly]
4Notestotheconsolidatedfinancialstatements(Cont’d)
(37)Revenueandcostofrevenue(Cont’d)(a)TheGroup'srevenueisdisaggregatedasfollows:
| Forthesixmonthsended30June2023 | ||||||
| Logisticsandfreightforwardingservices | Salesofgoods | Others | Total | |||
Revenuefrommain
operations
| Revenuefrommainoperations | |||||||
| Including:Atapointintime | - | 2,754,076 | 198,951 | 2,953,027 | |||
| Overtime | 120,855,099 | - | 188,156 | 121,043,255 | |||
| Leaseincome | - | - | 152,156 | 152,156 | |||
| 120,855,099 | 2,754,076 | 539,263 | 124,148,438 |
Revenuefromother
operations
| Revenuefromotheroperations | |||||||
| Including:Atapointintime | - | - | 33,265 | 33,265 | |||
| Overtime | - | - | 75,201 | 75,201 | |||
| Leaseincome | - | - | 108,694 | 108,694 | |||
| - | - | 217,160 | 217,160 |
Forthesixmonthsended30June2022
| Forthesixmonthsended30June2022 | ||||||
| Logisticsandfreightforwardingservices | Salesofgoods | Others | Total | |||
Revenuefrommainoperations
| Revenuefrommainoperations | |||||||
| Including:Atapointintime | - | 1,683,873 | 165,552 | 1,849,425 | |||
| Overtime | 127,691,416 | - | 263,996 | 127,955,412 | |||
| Leaseincome | - | - | 80,805 | 80,805 | |||
| 127,691,416 | 1,683,873 | 510,353 | 129,885,642 |
Revenuefromotheroperations
| Revenuefromotheroperations | |||||||
| Including:Atapointintime | - | - | 32,161 | 32,161 | |||
| Overtime | - | - | 43,967 | 43,967 | |||
| Leaseincome | - | - | 102,363 | 102,363 | |||
| - | - | 178,491 | 178,491 |
Asat30June2023,theGroup'sperformanceobligationsthathadbeenenteredintobuthadnotyetbeenperformedornotbeenfullyperformedwerepartofacontractforanestimatedperiodofnotmorethanoneyear.
S.F.HOLDINGCO.,LTD.NOTESTOTHEFINANCIALSTATEMENTSFORTHESIXMONTHSENDED30JUNE2023(AllamountsinRMB’000Yuanunlessotherwisestated)[Englishtranslationforreferenceonly]
4Notestotheconsolidatedfinancialstatements(Cont’d)
(38)Sellinganddistributionexpenses
| Forthesixmonthsended30June | ||
| 2023 | 2022 | |
Outsourcingstaffexpenses
| Outsourcingstaffexpenses | 449,632 | 483,919 | |
| Employeebenefits | 390,973 | 427,663 | |
| Depreciationandamortisationexpenses | 183,934 | 164,762 | |
| Others | 368,216 | 203,864 | |
| 1,392,755 | 1,280,208 |
(39)Generalandadministrativeexpenses
| Forthesixmonthsended30June | ||
| 2023 | 2022 | |
Employeebenefits
| Employeebenefits | 7,407,612 | 7,254,047 | |
| Depreciationandamortisationexpenses | 279,889 | 308,635 | |
| Outsourcingstaffexpenses | 240,235 | 231,723 | |
| Others | 1,012,845 | 1,095,689 | |
| 8,940,581 | 8,890,094 |
(40)Researchanddevelopmentexpenses
| Forthesixmonthsended30June | ||
| 2023 | 2022 | |
Employeebenefits
| Employeebenefits | 627,894 | 567,922 | |
| Depreciationandamortisationexpenses | 431,138 | 333,050 | |
| Outsourcingstaffexpenses | 12,481 | 14,336 | |
| Others | 103,457 | 100,546 | |
| 1,174,970 | 1,015,854 |
S.F.HOLDINGCO.,LTD.NOTESTOTHEFINANCIALSTATEMENTSFORTHESIXMONTHSENDED30JUNE2023
(AllamountsinRMB’000Yuanunlessotherwisestated)[Englishtranslationforreferenceonly]
4Notestotheconsolidatedfinancialstatements(Cont’d)
(41)Financialcosts
| Forthesixmonthsended30June | ||
| 2023 | 2022 | |
Interestonborrowings
| Interestonborrowings | 866,130 | 716,866 | |
| Add:Interestexpensesonleaseliabilities | 289,013 | 316,308 | |
| Less:Capitalisedinterest(Note4(12)) | (62,470) | (58,959) | |
| Interestexpenses | 1,092,673 | 974,215 | |
| Less:Interestincome | (292,849) | (137,186) | |
| Netgainsorlossesonexchange | 133,258 | 14,160 | |
| Commissionexpensesandothers | 59,397 | 54,719 | |
| 992,479 | 905,908 |
(42)Expensesbynature
Thecostofrevenue,sellinganddistributionexpenses,generalandadministrativeexpensesandresearchanddevelopmentexpensesintheincomestatementarelistedasfollowsbynature:
| Forthesixmonthsended30June | ||
| 2023 | 2022 | |
Transportationcosts
| Transportationcosts | 21,120,397 | 37,700,578 | |
| Including:Aircraftmaintenancecosts | 209,844 | 212,564 | |
| Outsourcingstaffexpenses | 41,999,886 | 35,293,193 | |
| Outsourcingtransportationcosts | 18,187,306 | 16,502,888 | |
| Employeebenefits | 16,270,441 | 16,030,878 | |
| Depreciationandamortisationexpenses | 4,889,967 | 4,430,813 | |
| Depreciationexpensesofright-of-useassets | 3,608,140 | 3,595,877 | |
| Venueusageexpenses | 3,381,074 | 3,126,965 | |
| Others | 9,606,375 | 8,283,274 | |
| 119,063,586 | 124,964,466 |
(i)Forthesixmonthsended30June2023,theGroup’sgovernmentgrantswhichwereoffsetagainst
costsandexpensesamountedtoRMB97,625,000(Forthesixmonthsended30June2022:RMB70,605,000).Therein,theamountthatwasrecognisedinnon-recurringprofitorlossamountedtoRMB68,977,000(Forthesixmonthsended30June2022:RMB36,464,000).
S.F.HOLDINGCO.,LTD.NOTESTOTHEFINANCIALSTATEMENTSFORTHESIXMONTHSENDED30JUNE2023(AllamountsinRMB’000Yuanunlessotherwisestated)[Englishtranslationforreferenceonly]
4Notestotheconsolidatedfinancialstatements(Cont’d)
(42)Expensesbynature(Cont’d)(ii)TheGroupdirectlyrecognisestheleasepaymentsofshort-termleasesandlowvalueleasesin
profitorloss.Forthesixmonthsended30June2023,theamountwasRMB1,774,416,000(Forthesixmonthsended30June2022:RMB1,228,609,000).
(43)Otherincome
| Forthesixmonthsended30June | Relatedtoassets/income | ||
| 2023 | 2022 | ||
Taxpreference
| Taxpreference | 534,683 | 774,575 | Relatedtoincome | |
| Fiscalappropriationandsubsidies | 185,478 | 207,655 | Relatedtoincome | |
| Amortisationofdeferredincome(Note4(29)) | ||||
| 27,515 | 18,998 | Relatedtoassets | ||
| 747,676 | 1,001,228 |
Forthesixmonthsended30June2023,theamountofotherincomethatwasrecognisedinnon-recurringprofitorlossamountedtoRMB351,691,000(Forthesixmonthsended30June2022:
RMB352,751,000).
(44)Investmentincome
| Forthesixmonthsended30June | ||
| 2023 | 2022 | |
Investmentincomefromfinancialassetsheldfortrading
| Investmentincomefromfinancialassetsheldfortrading | 253,799 | 310,852 | |
| Investmentincomefromdisposalofsubsidiaries | 244,982 | 32,314 | |
| Investmentincomefromdisposalofotherinvestments | 12,269 | 12,218 | |
| Investmentincomefromdividendsoffinancialassetsnotheldfortrading | 2,535 | 6,188 | |
| Shareofnetgains/(losses)ofinvesteesunderequitymethod | (13,486) | 41,689 | |
| Others | 498 | 1,549 | |
| 500,597 | 404,810 |
S.F.HOLDINGCO.,LTD.NOTESTOTHEFINANCIALSTATEMENTSFORTHESIXMONTHSENDED30JUNE2023(AllamountsinRMB’000Yuanunlessotherwisestated)[Englishtranslationforreferenceonly]
4Notestotheconsolidatedfinancialstatements(Cont’d)
(45)Non-operatingincomeandexpenses(a)Non-operatingincome
| Forthesixmonthsended30June | ||||||
| 2023 | Amountrecognisedinnon-recurringprofitorloss | 2022 | Amountrecognisedinnon-recurringprofitorloss | |||
Compensationincome
| Compensationincome | 20,715 | 20,715 | 16,527 | 16,527 | |||
| Incomefrompenalty | 5,355 | 5,355 | 5,492 | 5,492 | |||
| Governmentgrants | 4,561 | 4,561 | 2,884 | 2,884 | |||
| Others | 99,562 | 99,562 | 68,533 | 68,533 | |||
| 130,193 | 130,193 | 93,436 | 93,436 |
(b)Non-operatingexpenses
| Forthesixmonthsended30June | ||||||
| 2023 | Amountrecognisedinnon-recurringprofitorloss | 2022 | Amountrecognisedinnon-recurringprofitorloss | |||
Lossesondisposaloffixedassetsandintangibleassets
| Lossesondisposaloffixedassetsandintangibleassets | 112,632 | 112,632 | 30,901 | 30,901 | |||
| Compensationexpenses | 40,973 | 40,973 | 38,466 | 38,466 | |||
| Donationexpenses | 5,552 | 5,552 | 7,336 | 7,336 | |||
| Others | 29,797 | 29,797 | 30,314 | 30,314 | |||
| 188,954 | 188,954 | 107,017 | 107,017 |
S.F.HOLDINGCO.,LTD.NOTESTOTHEFINANCIALSTATEMENTSFORTHESIXMONTHSENDED30JUNE2023
(AllamountsinRMB’000Yuanunlessotherwisestated)[Englishtranslationforreferenceonly]
4Notestotheconsolidatedfinancialstatements(Cont’d)
(46)Incometaxexpenses
| Forthesixmonthsended30June | ||
| 2023 | 2022 | |
Currentincometax
| Currentincometax | 1,606,404 | 1,919,041 | |
| Deferredincometax | (80,294) | (134,175) | |
| 1,526,110 | 1,784,866 |
Thereconciliationfromincometaxcalculatedbasedontheapplicabletaxratesandtotalprofitpresentedintheincomestatementtotheincometaxexpensesislistedbelow:
| Forthesixmonthsended30June | ||
| 2023 | 2022 | |
Totalprofit
| Totalprofit | 5,420,350 | 5,081,641 |
Incometaxexpensescalculatedatthestandardtaxrateof25%
| Incometaxexpensescalculatedatthestandardtaxrateof25% | 1,355,088 | 1,270,410 | |
| Incomenotsubjecttotax | (105,771) | (28,157) | |
| Costs,expensesandlossesnotdeductiblefortaxpurposes | 82,601 | 87,590 | |
| Effectofdifferenttaxratesamongsubsidiariesandbranchesonincometaxexpenses | (139,095) | (121,091) | |
| Deductibletaxlossesanddeductibletemporarydifferencesforwhichnodeferredtaxassetwasrecognisedinthecurrentperiod | 571,816 | 642,041 | |
| Utilisationofdeductibletaxlossesandotherdeductibletemporarydifferencesforwhichnodeferredtaxassetwasrecognisedinpriorperiods | (139,328) | (37,746) | |
| Taxpreference | (78,994) | (2,071) | |
| Others | (20,207) | (26,110) | |
| Incometaxexpenses | 1,526,110 | 1,784,866 |
S.F.HOLDINGCO.,LTD.NOTESTOTHEFINANCIALSTATEMENTSFORTHESIXMONTHSENDED30JUNE2023
(AllamountsinRMB’000Yuanunlessotherwisestated)[Englishtranslationforreferenceonly]
4Notestotheconsolidatedfinancialstatements(Cont’d)
(47)Earningspershare(a)Basicearningspershare
Basicearningspersharearecalculatedbydividingconsolidatednetprofitattributabletoordinaryshareholdersoftheparentcompanybytheweightedaveragenumberofoutstandingordinarysharesoftheparentcompany:
| Forthesixmonthsended30June | ||
| 2023 | 2022 | |
Consolidatednetprofitattributabletoordinaryshareholdersoftheparentcompany
| Consolidatednetprofitattributabletoordinaryshareholdersoftheparentcompany | 4,176,282 | 2,512,397 | |
| WeightedaveragenumberofoutstandingordinarysharesoftheCompany | 4,854,831 | 4,880,213 | |
| Basicearningspershare(Yuan/share) | 0.86 | 0.51 |
Including:
| Including: | |||
| -Basicearningspersharefromcontinuingoperations(Yuan/share) | 0.86 | 0.51 |
(b)Dilutedearningspershare
DilutedearningspersharearecalculatedbydividingconsolidatednetprofitattributabletoordinaryshareholdersoftheparentcompanyadjustedbasedonthedilutivepotentialordinarysharesbytheadjustedweightedaveragenumberofoutstandingordinarysharesoftheCompany.Forthesixmonthsended30June2023andthesixmonthsended30June2022,theCompanyhaddilutivepotentialordinarysharesduetotheimplementationoftheshareoptionincentiveplan.
| Forthesixmonthsended30June | ||
| 2023 | 2022 | |
Consolidatednetprofitattributabletoordinaryshareholdersoftheparentcompany
| Consolidatednetprofitattributabletoordinaryshareholdersoftheparentcompany | 4,176,282 | 2,512,397 | |
| Adjustedconsolidatednetprofitattributabletoordinaryshareholdersoftheparentcompanyforcalculationofearningspershare | 4,176,282 | 2,512,397 | |
| WeightedaveragenumberofoutstandingordinarysharesoftheCompany | |||
| 4,854,831 | 4,880,213 | ||
| Add:EffectoftheGroup’sshare-basedpaymentsplan | 10,250 | 1,690 | |
| Weightedaveragenumberofoutstandingdilutedordinaryshares | 4,865,081 | 4,881,903 | |
| Dilutedearningspershare | 0.86 | 0.51 |
S.F.HOLDINGCO.,LTD.NOTESTOTHEFINANCIALSTATEMENTSFORTHESIXMONTHSENDED30JUNE2023(AllamountsinRMB’000Yuanunlessotherwisestated)[Englishtranslationforreferenceonly]4Notestotheconsolidatedfinancialstatements(Cont’d)
(48)Othercomprehensiveincome
Othercomprehensiveincome,therelatedincometaxeffectandthereclassificationstoprofitorlossforthesixmonthsended30June2023and30June2022:
| Othercomprehensiveincomeinthebalancesheet | Othercomprehensiveincomeinincomestatementforthesixmonthsended30June2023 | ||||||||||||
| 31December2022 | Attributabletotheparentcompanyinthecurrentyear-netoftax | Othercomprehensiveincometransferredintoretainedearnings | 30Jun2023 | Amountincurredbeforeincometaxforthecurrentperiod | Less:Incometaxcredits | Attributabletotheparentcompany-netoftax | Attributabletominorityshareholders-netoftax | ||||||
Othercomprehensiveincomeitemswhichwillnotbereclassifiedsubsequentlytoprofitorloss
| Othercomprehensiveincomeitemswhichwillnotbereclassifiedsubsequentlytoprofitorloss | ||||||||||||||
| Changesinfairvalueofinvestmentsinotherequityinstruments | 2,965,732 | (30,021) | (18) | 2,935,693 | (53,984) | 1,244 | (30,021) | (22,719) | ||||||
| Othercomprehensiveincomeitemswhichwillnotbetransferredtoprofitorlossundertheequitymethod | (2,764) | - | - | (2,764) | - | - | - | - | ||||||
| Othercomprehensiveincomeitemswhichwillbereclassifiedsubsequentlytoprofitorloss | ||||||||||||||
| Cashflowhedgingreserve | (12,002) | 8,740 | - | (3,262) | 8,740 | - | 8,740 | - | ||||||
| Othercomprehensiveincomeitemswhichwillbetransferredtoprofitorlossundertheequitymethod | (18,740) | 9,171 | - | (9,569) | 9,171 | - | 9,171 | - | ||||||
| Effectoftranslationofforeigncurrencyfinancialstatements | 1,605,801 | 651,659 | - | 2,257,460 | 464,631 | - | 651,659 | (187,028) | ||||||
| 4,538,027 | 639,549 | (18) | 5,177,558 | 428,558 | 1,244 | 639,549 | (209,747) |
S.F.HOLDINGCO.,LTD.NOTESTOTHEFINANCIALSTATEMENTSFORTHESIXMONTHSENDED30JUNE2023
(AllamountsinRMB’000Yuanunlessotherwisestated)[Englishtranslationforreferenceonly]
4Notestotheconsolidatedfinancialstatements(Cont’d)
(48)Othercomprehensiveincome(Cont’d)
| Othercomprehensiveincomeinthebalancesheet | Othercomprehensiveincomeinincomestatementforthesixmonthsended30June2022 | ||||||||||||
| 31December2021 | Attributabletotheparentcompanyinthecurrentyear-netoftax | Othercomprehensiveincometransferredintoretainedearnings | 30June2022 | Amountincurredbeforeincometaxforthecurrentperiod | Less:Incometaxcredits | Attributabletotheparentcompany-netoftax | Attributabletominorityshareholders-netoftax | ||||||
Othercomprehensiveincomeitemswhichwillnotbereclassifiedsubsequentlytoprofitorloss
| Othercomprehensiveincomeitemswhichwillnotbereclassifiedsubsequentlytoprofitorloss | ||||||||||||||
| Changesinfairvalueofinvestmentsinotherequityinstruments | 2,974,557 | 7,488 | (1) | 2,982,044 | (19,276) | 955 | 7,488 | (25,809) | ||||||
| Othercomprehensiveincomeitemswhichwillnotbetransferredtoprofitorlossundertheequitymethod | (1,278) | (3) | - | (1,281) | (3) | - | (3) | - | ||||||
| Othercomprehensiveincomeitemswhichwillbereclassifiedsubsequentlytoprofitorloss | ||||||||||||||
| Cashflowhedgingreserve | (27,394) | (13,983) | - | (41,377) | (13,983) | - | (13,983) | - | ||||||
| Effectoftranslationofforeigncurrencyfinancialstatements | (328,654) | 932,318 | - | 603,664 | 481,122 | - | 932,318 | (451,196) | ||||||
| 2,617,231 | 925,820 | (1) | 3,543,050 | 447,860 | 955 | 925,820 | (477,005) |
S.F.HOLDINGCO.,LTD.NOTESTOTHEFINANCIALSTATEMENTSFORTHESIXMONTHSENDED30JUNE2023(AllamountsinRMB’000Yuanunlessotherwisestated)[Englishtranslationforreferenceonly]
4Notestotheconsolidatedfinancialstatements(Cont’d)
(49)Notestothecashflowstatement(a)Cashreceivedrelatingtootheroperatingactivities
| Forthesixmonthsended30June | ||
| 2023 | 2022 | |
Inflowsfromcashcollectedondeliveryserviceonbehalfofotherparties
| Inflowsfromcashcollectedondeliveryserviceonbehalfofotherparties | 42,809,014 | 39,254,423 | |
| Others | 2,505,769 | 3,003,286 | |
| 45,314,783 | 42,257,709 |
(b)Cashpaidrelatingtootheroperatingactivities
| Forthesixmonthsended30June | ||
| 2023 | 2022 | |
Outflowsfromcashcollectedondeliveryserviceonbehalfofotherparties
| Outflowsfromcashcollectedondeliveryserviceonbehalfofotherparties | 42,788,819 | 39,355,833 | |
| Others | 9,563,206 | 8,528,523 | |
| 52,352,025 | 47,884,356 |
(c)Netcashreceivedfromdisposalofsubsidiaries
| Forthesixmonthsended30June | ||
| 2023 | 2022 | |
Considerationarisingfromdisposalofsubsidiaries
| Considerationarisingfromdisposalofsubsidiaries | 547,980 | 233,639 | |
| Add:Cashandcashequivalentsreceivedinthecurrentperiodforthedisposalofsubsidiariesinpreviousyears | - | 71,795 | |
| Less:Cashandcashequivalentsreceivedinthesubsequentperiodsforthedisposalofsubsidiaries | - | - | |
| Less:Cashandcashequivalentsheldbysubsidiariesonthedayoflossofcontrol | (189,393) | (19,671) | |
| 358,587 | 285,763 |
S.F.HOLDINGCO.,LTD.NOTESTOTHEFINANCIALSTATEMENTSFORTHESIXMONTHSENDED30JUNE2023(AllamountsinRMB’000Yuanunlessotherwisestated)[Englishtranslationforreferenceonly]
4Notestotheconsolidatedfinancialstatements(Cont’d)
(49)Notestothecashflowstatement(Cont’d)(d)Netcashpaidtoacquiresubsidiaries
| Forthesixmonthsended30June | ||
| 2023 | 2022 | |
Considerationfromacquisitionofsubsidiariesinthecurrent
period
| Considerationfromacquisitionofsubsidiariesinthecurrentperiod | 141,000 | 2,311,903 | |
| Add:Cashpaidinthecurrentperiodforacquisitionofsubsidiariesinpriorperiods | 800,227 | 87,076 | |
| Less:Cashtobepaidinfutureperiods | (9,774) | (1,235,038) | |
| Less:Cashandcashequivalentsheldbysubsidiariesonthedayofpurchase | (2,898) | (120,632) | |
| Totalnetcashpaidtoacquiresubsidiaries | 928,555 | 1,043,309 |
(e)Cashreceived/paidrelatingtootherinvestingactivities
Cashreceived/paidrelatingtootherinvestingactivitiesbytheGrouprepresentscashinflowsandoutflowsfromredemption/purchaseofbankwealthmanagementproductsandstructureddeposits.(f)Cashpaidrelatingtootherfinancingactivities
| Forthesixmonthsended30June | ||
| 2023 | 2022 | |
Repaymentsofleaseliabilities
| Repaymentsofleaseliabilities | 3,891,543 | 3,645,552 | |
| Acquisitionofminorityinterests | 132,490 | 3,584,014 | |
| Repurchaseofshares | 59,936 | 1,899,241 | |
| Others | 496,532 | 30,216 | |
| 4,580,501 | 9,159,023 |
Forthesixmonthsended30June2023,thetotalcashoutflowsrelatingtoleasespaidbytheGroupamountedtoRMB5,645,946,000(Forthesixmonthsended30June2022:RMB5,002,526,000),exceptfortherepaymentsofleaseliabilitiesclassifiedascashpaidrelatingtofinancingactivities,theremainingwasclassifiedascashpaidrelatingtooperatingactivities.
S.F.HOLDINGCO.,LTD.NOTESTOTHEFINANCIALSTATEMENTSFORTHESIXMONTHSENDED30JUNE2023
(AllamountsinRMB’000Yuanunlessotherwisestated)[Englishtranslationforreferenceonly]
4Notestotheconsolidatedfinancialstatements(Cont’d)
(50)Supplementaryinformationtothecashflowstatement(a)Reconciliationfromnetprofittocashflowsfromoperatingactivities
| Forthesixmonthsended30June | ||
| 2023 | 2022 | |
Netprofit
| Netprofit | 3,894,240 | 3,296,775 | |
| Add:Assetimpairmentlosses | 806 | 3,838 | |
| Creditimpairment(reversal)/losses | (64,802) | 271,129 | |
| Depreciationofright-of-useassets | 3,608,140 | 3,595,877 | |
| Depreciationandamortisation | 4,889,967 | 4,445,097 | |
| Lossesondisposaloflong-termassets | 64,740 | 22,655 | |
| Losses/(Gains)arisingfromchangesinfairvalue | (21,870) | (6,719) | |
| Financialcosts | 1,225,931 | 983,639 | |
| Investmentincome | (500,597) | (404,810) | |
| Recognisedexpensesonshare-basedpayments | 153,461 | 83,204 | |
| Increaseindeferredtaxassets | (127,417) | (515,676) | |
| Decreaseindeferredtaxliabilities | 47,123 | 381,501 | |
| Amortisationofdeferredincome | (27,515) | (18,998) | |
| Increaseininventories | (87,948) | (142,552) | |
| Decreaseinoperatingreceivables | 3,737,276 | 7,871,616 | |
| Increaseinoperatingpayables | (2,966,708) | (3,153,762) | |
| Netcashflowsfromoperatingactivities | 13,824,827 | 16,712,814 |
S.F.HOLDINGCO.,LTD.NOTESTOTHEFINANCIALSTATEMENTSFORTHESIXMONTHSENDED30JUNE2023(AllamountsinRMB’000Yuanunlessotherwisestated)[Englishtranslationforreferenceonly]
4Notestotheconsolidatedfinancialstatements(Cont’d)
(50)Supplementaryinformationtothecashflowstatement(Cont’d)(b)Cashandcashequivalents
| 30June2023 | 31December2022 |
Cashonhand
| Cashonhand | 18,177 | 18,437 | |
| Cashatbankthatcanbereadilydrawnondemand | 35,414,407 | 40,008,101 | |
| Othercashbalancesthatcanbereadilydrawnondemand | 78,549 | 138,535 | |
| Otherbalancesthatcanbereadilydrawnondemand | 123,459 | 114,874 | |
| 35,634,592 | 40,279,947 |
(51)Monetaryitemsdenominatedinforeigncurrency(a)Asat30June2023and31December2022,theGroup’scompanieswhoserecordingcurrencyis
RMBheldfinancialassetsandliabilitiesdenominatedinnon-recordingcurrencies(mainlyUSD,HKDandEUR),excludingfinancialassetsandliabilitiesdenominatedinnon-recordingcurrenciesheldbysubsidiarieswithintheGroup,ofwhichtheequivalentamountsinRMB(presentationcurrencyofthesefinancialstatements)arelistedasbelow:
| 30June2023 | ||||
| Amountintheoriginalcurrency | ExchangeratetoRMB | EquivalenttoRMB | ||
Cashatbankandonhand-
| Cashatbankandonhand- | |||||
| USD | 32,715 | 7.2258 | 236,390 | ||
| HKD | 71,833 | 0.9220 | 66,229 | ||
| EUR | 91 | 7.8771 | 720 |
Receivables-
| Receivables- | |||||
| USD | 206,742 | 7.2258 | 1,493,879 | ||
| HKD | 45,835 | 0.9220 | 42,259 | ||
| EUR | 3,189 | 7.8771 | 25,118 |
Payables-
| Payables- | |||||
| USD | 75,823 | 7.2258 | 547,884 | ||
| HKD | 24,065 | 0.9220 | 22,187 | ||
| EUR | 6,295 | 7.8771 | 49,587 | ||
| SGD | 498 | 5.3442 | 2,660 |
S.F.HOLDINGCO.,LTD.NOTESTOTHEFINANCIALSTATEMENTSFORTHESIXMONTHSENDED30JUNE2023(AllamountsinRMB’000Yuanunlessotherwisestated)[Englishtranslationforreferenceonly]
4Notestotheconsolidatedfinancialstatements(Cont’d)
(51)Monetaryitemsdenominatedinforeigncurrency(Cont’d)(a)(Cont’d)
| 31December2022 | ||||
| Amountintheoriginalcurrency | ExchangeratetoRMB | EquivalenttoRMB | ||
Cashatbankandonhand-
| Cashatbankandonhand- | |||||
| USD | 81,868 | 6.9646 | 570,178 | ||
| HKD | 35,511 | 0.8933 | 31,722 | ||
| EUR | 163 | 7.4229 | 1,210 |
Receivables-
| Receivables- | |||||
| USD | 272,999 | 6.9646 | 1,901,329 | ||
| HKD | 96,310 | 0.8933 | 86,034 | ||
| EUR | 6,544 | 7.4229 | 48,575 |
Payables-
| Payables- | |||||
| USD | 140,907 | 6.9646 | 981,361 | ||
| HKD | 73,704 | 0.8933 | 65,840 | ||
| EUR | 14,303 | 7.4229 | 106,170 | ||
| SGD | 2,009 | 5.1831 | 10,413 |
S.F.HOLDINGCO.,LTD.NOTESTOTHEFINANCIALSTATEMENTSFORTHESIXMONTHSENDED30JUNE2023
(AllamountsinRMB’000Yuanunlessotherwisestated)[Englishtranslationforreferenceonly]
4Notestotheconsolidatedfinancialstatements(Cont’d)
(51)Monetaryitemsdenominatedinforeigncurrency(Cont’d)(b)Asat30June2023and31December2022,theGroup’soverseassubsidiaries,exceptforthose
operatinginHongKong,heldnosignificantfinancialassetsorliabilitiesdenominatedinnon-recordingcurrencies.ThosecompaniesoperatinginHongKongwithHKDasrecordingcurrencyheldfinancialassetsandliabilitiesdenominatedinnon-recordingcurrencies(mainlyUSD,RMBandEUR),excludingfinancialassetsandliabilitiesdenominatedinnon-recordingcurrenciesheldbysubsidiarieswithintheGroup,ofwhichtheequivalentamountsinHKD(recordingcurrencyofcompaniesoperatinginHongKong)andRMB(presentationcurrencyofthesefinancialstatements)arelistedasbelow:
| 30June2023 | ||||||
| Amountintheoriginalcurrency | ExchangeratetoHKD | EquivalenttoHKD | EquivalenttoRMB | |||
Cashatbankandonhand-
| Cashatbankandonhand- | |||||||
| RMB | 65,372 | 1.0846 | 70,903 | 65,372 | |||
| USD | 45,835 | 7.8373 | 359,220 | 331,200 | |||
| EUR | 4,242 | 8.5437 | 36,246 | 33,419 |
Accountsreceivable-
| Accountsreceivable- | |||||||
| RMB | 259,506 | 1.0846 | 281,460 | 259,506 | |||
| USD | 333,772 | 7.8373 | 2,615,875 | 2,411,834 |
Accountspayable-
| Accountspayable- | |||||||
| RMB | 62,239 | 1.0846 | 67,505 | 62,239 | |||
| USD | 192,746 | 7.8373 | 1,510,610 | 1,392,781 | |||
| EUR | 103 | 8.5437 | 879 | 810 |
S.F.HOLDINGCO.,LTD.NOTESTOTHEFINANCIALSTATEMENTSFORTHESIXMONTHSENDED30JUNE2023
(AllamountsinRMB’000Yuanunlessotherwisestated)[Englishtranslationforreferenceonly]
4Notestotheconsolidatedfinancialstatements(Cont’d)
(51)Monetaryitemsdenominatedinforeigncurrency(Cont’d)(b)(Cont’d)
| 31December2022 | ||||||
| Amountintheoriginalcurrency | ExchangeratetoHKD | EquivalenttoHKD | EquivalenttoRMB | |||
Cashatbankandonhand-
| Cashatbankandonhand- | |||||||
| RMB | 59,509 | 1.1195 | 66,620 | 59,509 | |||
| USD | 99,358 | 7.7967 | 774,665 | 692,008 | |||
| EUR | 4,734 | 8.3098 | 39,339 | 35,142 |
Accountsreceivable-
| Accountsreceivable- | |||||||
| RMB | 251,686 | 1.1195 | 281,762 | 251,686 | |||
| USD | 231,573 | 7.7967 | 1,805,505 | 1,612,858 |
Accountspayable-
| Accountspayable- | |||||||
| RMB | 32,985 | 1.1195 | 36,927 | 32,985 | |||
| USD | 203,672 | 7.7967 | 1,587,969 | 1,418,533 | |||
| EUR | 1,930 | 8.3098 | 16,038 | 14,327 |
5Changesintheconsolidationscope
(1)Businesscombinationsinvolvingenterprisesnotundercommoncontrol
Mainbusinesscombinationsinvolvingenterprisesnotundercommoncontrolforthesixmonthsended30June2023:
| Acquiree | Acquisitioncost | %ofinterestacquired | Methodofacquisition | Acquisitiondate | Basisfordeterminingtheacquisitiondate |
Athird-party
logisticsenterprise
| Athird-partylogisticsenterprise | 132,016 | 51.00% | Bycash | 31January2023 | Completionofequitydelivery |
Thetotaloperatingincome,netprofit,operatingactivitiesgeneratednetcashflowoftheabovecompanyfromthepurchasedatetotheendoftheyearareRMB21,757,000,RMB3,021,000,RMB2,800,000andRMB2,800,000,respectively.
S.F.HOLDINGCO.,LTD.NOTESTOTHEFINANCIALSTATEMENTSFORTHESIXMONTHSENDED30JUNE2023
(AllamountsinRMB’000Yuanunlessotherwisestated)[Englishtranslationforreferenceonly]
5Changesintheconsolidationscope(Cont'd)
(2)Disposalofsubsidiaries(a)Informationrelatingtothedisposalofmajorsubsidiariesduringtheperiodisasfollows:
| Nameofsubsidiary | Proceedsfromdisposal | Disposalproportion | Methodofdisposal | Timingoflosingcontrol | Basisforjudgementoftimingoflosingcontrol | Differencebetweenproceedsfromdisposalafterdeductingdisposalcostsandcorrespondingsharesofnetassetsintheconsolidatedfinancialstatements | Amounttransferredfromothercomprehensiveincomeetc.relatedtoinitialequityinvestmenttoinvestmentincomeorloss |
ShenzhenFengwangInformationTechnologyCo.,Ltd.(“FengwangInformationTechnology”)(i)
| ShenzhenFengwangInformationTechnologyCo.,Ltd.(“FengwangInformationTechnology”)(i) | 460,930 | 100% | Salesofequity | 27June2023 | Transferofcontrolright | 243,378 | - | |
| ShanghaiFengzhanTechnologyCo.,Ltd.(ii) | 85,188 | 100% | Salesofequity | 10May2023 | Transferofcontrolright | - | - |
S.F.HOLDINGCO.,LTD.NOTESTOTHEFINANCIALSTATEMENTSFORTHESIXMONTHSENDED30JUNE2023(AllamountsinRMB’000Yuanunlessotherwisestated)[Englishtranslationforreferenceonly]
5Changesintheconsolidationscope(Cont'd)
(2)Disposalofsubsidiaries(Cont'd)
(i)On12May2023,ShenzhenFengwangHoldingsCo.,Ltd.(“FengwangHoldings”),anindirectly-ownedsubsidiaryoftheCompany,enteredintoanequitytransferagreementwithShenzhenJ&TExpressSupplyChainCo.,Ltd.totransferits100%equityinterestsinthesubsidiaryFengwangInformationTechnologyanditssubsidiariesattheconsiderationofRMB1.183billion.Afterthecompletionofthetransaction,theGroupwouldlosecontrolofFengwangInformationTechnologyanditssubsidiaries,andexcludethemfromthescopeofconsolidation.Inaccordancewiththetransferagreement,theprofitorlossofFengwangInformationTechnologyanditssubsidiariesfortheperiodfromthedateofsigningofequitytransferagreementtothesettlementdatewasownedorbornebyFengwangHoldingsandtheadjusteddisposalpricewasRMB461million.TheGrouprecognisedinvestmentincomeofRMB243,378,000fortransactioncompletedon27June2023,includingamountsattributabletotheshareholdersoftheparentcompanyofRMB155,153,000.(ii)On10May2023,theGrouptransferred100%equityinterestinShanghaiFengzhanTechnologyCompanyLimitedtoShenzhenFengxiangInformation
TechnologyCompanyLimited,acompanythatisalsocontrolledbytheultimatecontroller,byusingitsshareofthenetassetsofShanghaiFengzhanTechnologyCompanyLimitedamountingtoRMB85,188,000asthetransactionconsideration.Afterthecompletionofthetransaction,theGroupwouldlosecontrolofShanghaiFengzhanTechnologyCo.,Ltd.,andexcludethemfromthescopeofconsolidation.
S.F.HOLDINGCO.,LTD.NOTESTOTHEFINANCIALSTATEMENTSFORTHESIXMONTHSENDED30JUNE2023(AllamountsinRMB’000Yuanunlessotherwisestated)[Englishtranslationforreferenceonly]
6Interestsinotherentities
(1)Interestsinsubsidiaries(a)First-tierandsecond-tiersubsidiariesoftheGroupareasfollows:
| Shareholding(%) | |||||
| Placeofregistration | Majorbusinesslocation | Natureofbusiness | Direct | Indirect | Methodofacquisition |
TaisenHoldings
| TaisenHoldings | Shenzhen | Shenzhen | Investmentholding | 100.00% | - | Reverseacquisitions |
| S.F.ExpressCo.,Ltd. | Shenzhen | Shenzhen | Internationalfreightforwarding,domesticandinternationalexpressservice,etc. | - | 100.00% | Businesscombinationsinvolvingenterprisesundercommoncontrol |
| SFTechnologyCo.,Ltd. | Shenzhen | Shenzhen | Technicalmaintenanceanddevelopmentservice | - | 100.00% | Bynewestablishment |
| ShenzhenShunluLogisticsCo.,Ltd. | Shenzhen | Shenzhen | Cargotransportationandfreightforwarding | - | 100.00% | Businesscombinationsinvolvingenterprisesundercommoncontrol |
| AnhuiS.F.TelecommunicationServiceCo.,Ltd. | AnhuiProvince | AnhuiProvince | Value-addedtelecommunicationservice | - | 100.00% | Bynewestablishment |
| ShenzhenYuhuiManagementConsultingCo.,Ltd. | Shenzhen | Shenzhen | Consultingservice | - | 100.00% | Businesscombinationsinvolvingenterprisesundercommoncontrol |
| ShenzhenS.F.SupplyChainCo.,Ltd. | Shenzhen | Shenzhen | Supplychainmanagementandotherservices | - | 100.00% | Bynewestablishment |
| SFAirlines | Shenzhen | Shenzhen | Transportserviceofaviationcargo | - | 100.00% | Businesscombinationsinvolvingenterprisesundercommoncontrol |
| ShenzhenFengtaiE-CommerceIndustrialParkAssetManagementLtd. | Shenzhen | Shenzhen | E-commerceindustrialparkmanagement | - | 100.00% | Businesscombinationsinvolvingenterprisesundercommoncontrol |
| ShenzhenFengtaiIndustrialParkManagementserviceLtd. | Shenzhen | Shenzhen | Managementconsulting | - | 100.00% | Bynewestablishment |
| ShenzhenS.F.AirportInvestmentCo.,Ltd. | Shenzhen | Shenzhen | Industrialinvestment | - | 100.00% | Bynewestablishment |
| SFHoldingLimited | HongKongSAR | HongKongSAR | Investmentholding | - | 100.00% | Businesscombinationsinvolvingenterprisesundercommoncontrol |
| GroupFinanceCompany | Shenzhen | Shenzhen | Financing,wealthmanagementandconsultingservices | - | 100.00% | Bynewestablishment |
S.F.HOLDINGCO.,LTD.NOTESTOTHEFINANCIALSTATEMENTSFORTHESIXMONTHSENDED30JUNE2023(AllamountsinRMB’000Yuanunlessotherwisestated)[Englishtranslationforreferenceonly]
6Interestsinotherentities(Cont'd)
(1)Interestsinsubsidiaries(Cont'd)(a)First-tierandsecond-tiersubsidiariesoftheGroupareasfollows(Cont'd):
| Shareholding(%) | |||||
| Placeofregistration | Majorbusinesslocation | Natureofbusiness | Direct | Indirect | Methodofacquisition |
ShenzhenSFChuangxingInvestmentCo.,Ltd.
| ShenzhenSFChuangxingInvestmentCo.,Ltd. | Shenzhen | Shenzhen | Industrialinvestment | - | 100.00% | Bynewestablishment |
| ShenzhenFengnongTechnologyCo.,Ltd. | Shenzhen | Shenzhen | Retail | - | 100.00% | Bynewestablishment |
| ShenzhenFenglangSupplyChainCo.,Ltd. | Shenzhen | Shenzhen | Supplychainmanagementandotherservices | - | 70.00% | Bynewestablishment |
| ShenzhenShunfengRuntaiManagementConsultingCo.,Ltd. | Shenzhen | Shenzhen | Consultingservice | - | 100.00% | Bynewestablishment |
| ShunyuanFinancialLeasing | Tianjin | Tianjin | Leasingbusiness | - | 100.00% | Bynewestablishment |
| SFMultimodalCo.,Ltd. | Shenzhen | Shenzhen | Goodsdeliveryandotherservices | - | 100.00% | Bynewestablishment |
| S.F.InsuranceBroker(Shenzhen)Co.,Ltd. | Shenzhen | Shenzhen | Insurancebusiness | - | 100.00% | Bynewestablishment |
| S.F.DuolianTechnologyCo.,Ltd. | Dongguan | Dongguan | Technologydevelopment | - | 100.00% | Bynewestablishment |
| DongguanSFTaisenEnterpriseManagementCo.,Ltd. | Dongguan | Dongguan | Propertymanagement | - | 100.00% | Bynewestablishment |
| SFInnovativeTechnologyCo.,Ltd. | Dongguan | Dongguan | Informationtechnologyservice | - | 100.00% | Bynewestablishment |
| ShenzhenShunhengRongfengSupplyChainTechnologyCo.,Ltd. | Shenzhen | Shenzhen | Consultingservice | - | 100.00% | Businesscombinationsinvolvingenterprisesundercommoncontrol |
| ShenzhenHengyiSupplyChainsServiceCo.,Ltd. | Shenzhen | Shenzhen | Freightforwardingservice | - | 100.00% | Businesscombinationsinvolvingenterprisesundercommoncontrol |
| ShenzhenLefengCommercialCo.,Ltd. | Shenzhen | Shenzhen | Factoring | - | 100.00% | Businesscombinationsinvolvingenterprisesundercommoncontrol |
S.F.HOLDINGCO.,LTD.NOTESTOTHEFINANCIALSTATEMENTSFORTHESIXMONTHSENDED30JUNE2023(AllamountsinRMB’000Yuanunlessotherwisestated)[Englishtranslationforreferenceonly]
6Interestsinotherentities(Cont'd)
(1)Interestsinsubsidiaries(Cont'd)(a)First-tierandsecond-tiersubsidiariesoftheGroupareasfollows(Cont'd):
| Shareholding(%) | |||||
| Placeofregistration | Majorbusinesslocation | Natureofbusiness | Direct | Indirect | Methodofacquisition |
HangzhouSFIntra-cityIndustrialCo.,Ltd.
| HangzhouSFIntra-cityIndustrialCo.,Ltd. | Hangzhou | Hangzhou | Supplychainmanagementandotherservices | - | 56.76% | Bynewestablishment |
| SFSharingPrecisionInformationTechnology(Shenzhen)Co.,Ltd. | Shenzhen | Shenzhen | Informationtechnologyservice | - | 100.00% | Bynewestablishment |
| HangzhouShuangjieSupplyChainCo.,Ltd. | Hangzhou | Hangzhou | Supplychainmanagementandotherservices | - | 100.00% | Bynewestablishment |
| ShenzhenS.F.ExpressCo.,Ltd. | Shenzhen | Shenzhen | Businessandsupplychainmanagement | - | 87.80% | Bynewestablishment |
| HuanggangXiufengEducationInvestmentCo.,Ltd. | Huanggang | Huanggang | Consultingservicesregardingbusinessinformationandbusinessmanagement | - | 100.00% | Bynewestablishment |
| JunheInformationTechnology(Shenzhen)Co.,Ltd. | Shenzhen | Shenzhen | Informationtechnologyanddevelopmentservices | - | 100.00% | Bynewestablishment |
| S.F.DigitalTechnology(Shenzhen)ServicesCo.,Ltd. | Shenzhen | Shenzhen | Technologyandconsultingservices | - | 100.00% | Bynewestablishment |
| ShenzhenS.F.InternationalIndustryCo.,Ltd. | Shenzhen | Shenzhen | Informationtechnologyandconsultingservices | - | 100.00% | Bynewestablishment |
| ShenzhenS.F.InvestmentCo.,Ltd. | Shenzhen | Shenzhen | Investmentholding | - | 100.00% | Bynewestablishment |
| SFColdChainLogisticsCo.,Ltd. | Shenzhen | Shenzhen | Cargotransportationandfreightforwarding | - | 100.00% | Bynewestablishment |
S.F.HOLDINGCO.,LTD.NOTESTOTHEFINANCIALSTATEMENTSFORTHESIXMONTHSENDED30JUNE2023(AllamountsinRMB’000Yuanunlessotherwisestated)[Englishtranslationforreferenceonly]
6Interestsinotherentities(Cont'd)
(1)Interestsinsubsidiaries(Cont'd)(b)SubsidiariesinwhichtheGrouphassignificantminorityinterests:
| Proportionofownershipinterestheldbyminorityshareholders | Profitorlossattributabletominorityshareholdersforthesixmonthsended30June2023 | Dividendspaidtominorityshareholdersforthesixmonthsended30June2023 | Minorityinterestsasat30June2023 |
KerryLogisticsanditssubsidiaries
| KerryLogisticsanditssubsidiaries | 48.48% | 19,370 | (375,165) | 11,099,181 |
Thesignificantfinancialinformationofthesignificantnon-fully-ownedsubsidiariesoftheGroupislistedbelow:
| 30June2023 | 31December2022 |
Currentassets
| Currentassets | 19,237,384 | 21,821,593 | |
| Non-currentassets | 26,305,032 | 25,615,187 | |
| Totalassets | 45,542,416 | 47,436,780 |
Currentliabilities
| Currentliabilities | 12,441,328 | 14,196,749 | |
| Non-currentliabilities | 9,497,933 | 10,240,832 | |
| Totalliabilities | 21,939,261 | 24,437,581 |
Forthesixmonthsended30June2023
| Forthesixmonthsended30June2023 | Forthesixmonthsended30June2022 |
Revenue
| Revenue | 22,462,886 | 39,826,024 | |
| Netprofit(i) | 102,409 | 1,984,687 | |
| Totalcomprehensiveincome(i) | 153,958 | 1,883,429 | |
| Cashflowsfromoperatingactivities | 1,449,579 | 2,243,418 |
TheabovefinancialfigurestakeintoaccountthefairvalueofidentifiableassetsandliabilitiesatthepointofacquisitionofKerryLogistics’equityandtheadjustmenteffectofuniformaccountingpolicies.(i)ForKerryLogistics,thenetprofitattributabletoshareholdersoftheparentcompanyforthesixmonthsended30June2023wasRMB83,039,000(forthesixthmonthsended30June2022:RMB886,982,000),andthetotalcomprehensiveincomeattributabletoshareholdersoftheparentcompanyforthesixmonthsended30June2023wasRMB348,315,000(forthesixthmonthsended30June2022:RMB1,261,913,000).
S.F.HOLDINGCO.,LTD.NOTESTOTHEFINANCIALSTATEMENTSFORTHESIXMONTHSENDED30JUNE2023(AllamountsinRMB’000Yuanunlessotherwisestated)[Englishtranslationforreferenceonly]
6Interestsinotherentities(Cont'd)
(2)Interestsinjointventuresandassociates
TheGroup’sjointventuresandassociateshavenosignificantinfluenceontheGroup(Note4(8)).7Segmentinformation
ThereportablesegmentsoftheGrouparethebusinessunitsthatprovidedifferentlogisticsand
freightforwardingservices.Differentbusinessesrequiredifferenttechnologiesandmarketing
strategies,andtheGroup,therefore,independentlymanagestheiroperationsandevaluates
operatingresults,inordertomakedecisionsaboutresourcesallocationsandperformance
evaluations.
Forthesixmonthsended30June2023,theGroupmainlyhadthreereportablesegments,
including:
-Expressandfreightdeliverysegment,whichprovidestime-defineexpress,economyexpress,
medicalproductandcoldchaindeliveryservice,aswellaslarge-sizedeliveryserviceandfreightservice;
-Intra-cityondemandsegment,whichprovidesintra-cityon-demanddeliveryserviceandlast-
miledeliveryservices;
-Supplychainandinternationalsegment,whichprovidesinternationalexpressservice,internationalfreighttransportandforwardingservice,aswellassupplychainservice.
Werestructuredoursegmentsin2023bycombiningthetwosegmentsformerlyknownasthe
expressdeliverysegmentandthefreightdeliverysegmentintotheexpressandfreightdelivery
segmentsegment.Accordingly,segmentinformationforthesix-monthperiodendedJune30,2022
hasbeenrestated.
Inter-segmenttransferpricesaredeterminedbyreferencetopricingpolicyofrelatedparty
transactions.
S.F.HOLDINGCO.,LTD.NOTESTOTHEFINANCIALSTATEMENTSFORTHESIXMONTHSENDED30JUNE2023
(AllamountsinRMB’000Yuanunlessotherwisestated)[Englishtranslationforreferenceonly]
7Segmentinformation(Cont'd)(a)Segmentinformationasatandforthesixmonthsended30June2023isasfollows:
| Expressandfreightdeliverysegment | Supplychainandinternationalsegment | Intra-cityondemandsegment | Undistributedunits | Inter-segmentelimination | Total |
Revenuefromexternalcustomers
| Revenuefromexternalcustomers | 90,058,986 | 30,283,063 | 3,406,837 | 616,712 | - | 124,365,598 | |||||
| Inter-segmentrevenue | 5,283,237 | 314,393 | 2,355,281 | 7,209,639 | (15,162,550) | - | |||||
| Costofrevenue | 81,392,677 | 28,052,376 | 5,377,625 | 6,659,244 | (13,926,642) | 107,555,280 | |||||
| Totalprofit/(loss) | 5,412,546 | (221,230) | 31,344 | 146,029 | 51,661 | 5,420,350 | |||||
| Incometaxexpenses | 1,292,805 | 86,845 | 1,030 | 130,843 | 14,587 | 1,526,110 | |||||
| Netprofit/(loss) | 4,119,741 | (308,075) | 30,314 | 15,186 | 37,074 | 3,894,240 |
Totalassets
| Totalassets | 100,203,287 | 64,443,045 | 3,888,569 | 152,920,781 | (103,415,251) | 218,040,431 |
Totalliabilities
| Totalliabilities | 68,606,705 | 51,662,519 | 986,574 | 84,017,974 | (88,439,410) | 116,834,362 |
Depreciationofrightofuse
| Depreciationofrightofuse | 2,993,058 | 854,228 | 13,137 | 40,982 | (293,265) | 3,608,140 | |||||
| Depreciationandamortisationexpenses | 3,587,688 | 819,313 | 30,545 | 465,391 | (12,970) | 4,889,967 | |||||
| Creditimpairmentlosses | (82,372) | 34,806 | 3,921 | 40,848 | (62,005) | (64,802) |
Forthesixmonthsended30June2023,norevenuefromasinglecustomerexceeded10%ormoreofthetotalrevenue.
S.F.HOLDINGCO.,LTD.NOTESTOTHEFINANCIALSTATEMENTSFORTHESIXMONTHSENDED30JUNE2023(AllamountsinRMB’000Yuanunlessotherwisestated)[Englishtranslationforreferenceonly]
7Segmentinformation(Cont'd)(b)Segmentinformationasatandforthesixmonthsended30June2022isasfollows:
| Expressandfreightdeliverysegment | Supplychainandinternationalsegment | Intra-cityondemandsegment | Undistributedunits | Inter-segmentelimination | Total |
Revenuefromexternalcustomers
| Revenuefromexternalcustomers | 79,027,014 | 47,545,204 | 2,938,274 | 553,641 | - | 130,064,133 | |||||
| Inter-segmentrevenue | 2,736,066 | 300,863 | 1,543,129 | 5,737,967 | (10,318,025) | - | |||||
| Costofrevenue | 70,662,580 | 42,592,555 | 4,300,885 | 5,579,205 | (9,356,915) | 113,778,310 | |||||
| Totalprofit/(loss) | 3,081,201 | 2,395,916 | (143,940) | (262,811) | 11,275 | 5,081,641 | |||||
| Incometaxexpenses | 966,432 | 706,449 | - | 105,744 | 6,241 | 1,784,866 | |||||
| Netprofit/(loss) | 2,114,769 | 1,689,467 | (143,940) | (368,555) | 5,034 | 3,296,775 |
Totalassets
| Totalassets | 83,548,137 | 68,738,144 | 3,866,337 | 122,740,878 | (66,426,119) | 212,467,377 |
Totalliabilities
| Totalliabilities | 56,329,943 | 56,055,883 | 844,924 | 55,085,848 | (50,247,047) | 118,069,551 |
Depreciationofright-of-use
| Depreciationofright-of-use | 2,900,854 | 802,187 | 9,689 | 61,611 | (178,464) | 3,595,877 | |||||
| Depreciationandamortisationexpenses | 3,315,887 | 749,536 | 38,824 | 335,202 | (8,636) | 4,430,813 | |||||
| Creditimpairmentlosses | 32,773 | 237,842 | 1,651 | 17,319 | (18,456) | 271,129 |
Forthesixmonthsended30June2022,norevenuefromasinglecustomerexceeded10%ormoreofthetotalrevenue.
S.F.HOLDINGCO.,LTD.NOTESTOTHEFINANCIALSTATEMENTSFORTHESIXMONTHSENDED30JUNE2023(AllamountsinRMB’000Yuanunlessotherwisestated)[Englishtranslationforreferenceonly]
8Relatedpartiesandrelatedpartytransactions
(1)Generalinformationofthecontrollingshareholderandsubsidiaries
ThegeneralinformationandotherrelatedinformationofthesubsidiariesaresetoutinNote6(1).(a)Generalinformationofthecontrollingshareholder
| Placeofregistration | Natureofbusiness |
MingdeHoldings
| MingdeHoldings | Shenzhen | Investment |
TheCompany’sultimateholdingcompanyisMingdeHoldings,andtheultimatecontrollingperson
isWangWei.(b)Thebalancesandchangesofregisteredcapitalofthecontrollingshareholder
| 31December2022 | Increaseinthecurrentperiod | Decreaseinthecurrentperiod | 30June2023 |
MingdeHoldings
| MingdeHoldings | 113,406 | - | - | 113,406 |
(c)ThepercentagesofshareholdingandvotingrightsintheCompanyheldbythecontrolling
shareholder
| 30June2023 | 31December2022 | |||
| Shareholding(%) | Votingrights(%) | Shareholding(%) | Votingrights(%) | |
MingdeHoldings
| MingdeHoldings | 54.68% | 54.68% | 54.95% | 54.95% |
S.F.HOLDINGCO.,LTD.NOTESTOTHEFINANCIALSTATEMENTSFORTHESIXMONTHSENDED30JUNE2023(AllamountsinRMB’000Yuanunlessotherwisestated)[Englishtranslationforreferenceonly]
8Relatedpartiesandrelatedpartytransactions(Cont’d)
(2)Natureofrelatedpartiesthatdonotcontrol/arenotcontrolledbytheCompany
Majorrelatedpartiesarelistedasfollows:
RelationshipwiththeCompanyGuangdongFengxingZhituTechnologyCo.,Ltd
(“FengxingZhituTechnology”)
| GuangdongFengxingZhituTechnologyCo.,Ltd(“FengxingZhituTechnology”) | ControlledbytheultimatecontrollingpersonoftheCompany |
| HangzhouFengtaiE-CommerceIndustrialParkManagementLtd. | ControlledbytheultimatecontrollingpersonoftheCompany |
| ShenzhenFengxiangInformationTechnologyCo.,Ltd. | ControlledbytheultimatecontrollingpersonoftheCompany |
| HiveBoxTechnologyanditssubsidiaries | ControlledbytheultimatecontrollingpersonoftheCompany |
| ShenzhenFengyiTechnologyLimited(“FengyiTechnology”) | Controllingshareholder'sassociate |
| StateGridE-CommerceYunfengLogisticsTechnology(Tianjin)Co.,Ltd. | TheGroup’sassociate |
| ShanghaiJiaxingLogisticsCo.,Ltd. | TheGroup’sassociate |
| ShenzhenShunjieFengdaanditssubsidiaries(“ShunjieFengda”)anditssubsidiaries | TheGroup’sassociate |
| SFREITSanditssubsidiaries | TheGroup’sassociate |
| ShenzhenZhongwangFinanceandTaxManagementCo.,Ltd. | TheGroup’sassociate |
| KENGICIntelligentTechnologyCo.,Ltd.(“KENGICIntelligent”)anditssubsidiaries | TheGroup’sassociate |
| ZhejiangGalaxisTechnologyGroupCo.,Ltd. | TheGroup’sassociate |
S.F.HOLDINGCO.,LTD.NOTESTOTHEFINANCIALSTATEMENTSFORTHESIXMONTHSENDED30JUNE2023
(AllamountsinRMB’000Yuanunlessotherwisestated)[Englishtranslationforreferenceonly]
8Relatedpartiesandrelatedpartytransactions(Cont’d)
(2)Natureofrelatedpartiesthatdonotcontrol/arenotcontrolledbytheCompany(Cont’d)
Majorrelatedpartiesarelistedasfollows(Cont’d):
RelationshipwiththeCompanyDHLWeiheng(Zhuhai)SupplyChainManagement
Co.,Ltd.
| DHLWeiheng(Zhuhai)SupplyChainManagementCo.,Ltd. | TheGroup’sassociate |
| ShenzhenFenglianTechnologyCo.,Ltd. | TheGroup’sassociate |
| YihaiShunfeng(Shanghai)SupplyChainTechnologyCo.,Ltd. | TheGroup’sassociate |
| GiaoHangTietKiemJointStockCompany | TheGroup’sassociate |
| ShanghaiTingdiLogisticsServiceCo.,Ltd. | TheGroup’sassociate |
| GlobalConnectHoldingLimited | TheGroup’sjointventure |
| EzhouChinaCommunicationsSFAirportIndustrialParkInvestmentDevelopmentCo.,Ltd | TheGroup’sjointventure |
| CR-SFInternationalExpressCo.,Ltd. | TheGroup’sjointventure |
| BeijingWulianShuntongTechnologyCo.,Ltd.(“WulianShuntong”)anditssubsidiaries | TheGroup’sjointventure |
| ZBHAanditssubsidiaries | TheGroup’sjointventure |
| HubeiInternationalLogisticsAirportCo.,Ltd. | TheGroup’sjointventure |
| GoldenArches(China)Co.,Ltd.("GoldenArches")anditssubsidiaries | SignificantlyinfluencedbythekeymanagementoftheCompany |
(3)Relatedpartytransactions(a)Pricingpolicies
ThepricingmethodoftransactionsandtransactionpricebetweentheGroupandrelatedpartiesaredetermined,followingarm'slengthprinciple,bymakingreferencetothemarketpriceorthroughnegotiationbetweenbothparties.(b)Renderingofservices/Salesofgoods
| Forthesixmonthsended30June | |||
| Natureofthetransaction | 2023 | 2022 | |
EntitiessignificantlyinfluencedbythekeymanagementoftheCompany
| EntitiessignificantlyinfluencedbythekeymanagementoftheCompany | Renderingofservices | 952,548 | 763,683 | ||
| EntitiescontrolledbytheultimatecontrollingpersonoftheCompany | Renderingofservices | 63,315 | 65,026 | ||
| AssociatesoftheGroup | Renderingofservices | 29,979 | 20,607 | ||
| AssociatesofMingdeHolding | Renderingofservices | 6,643 | 7,950 | ||
| JointventuresoftheGroup | Renderingofservices | 5,989 | 8,016 | ||
| MingdeHolding | Renderingofservices | 203 | 323 | ||
| 1,058,677 | 865,605 |
S.F.HOLDINGCO.,LTD.NOTESTOTHEFINANCIALSTATEMENTSFORTHESIXMONTHSENDED30JUNE2023(AllamountsinRMB’000Yuanunlessotherwisestated)[Englishtranslationforreferenceonly]
8Relatedpartiesandrelatedpartytransactions(Cont’d)
(3)Relatedpartytransactions(Cont’d)(b)Renderingofservices/Salesofgoods(Cont’d)
| Forthesixmonthsended30June | |||
| Natureofthetransaction | 2023 | 2022 | |
AssociatesoftheGroup
| AssociatesoftheGroup | Salesofgoods | 2,548 | 7,288 | ||
| EntitiescontrolledbytheultimatecontrollingpersonoftheCompany | Salesofgoods | 353 | 7,126 | ||
| AssociatesofMingdeHolding | Salesofgoods | 3 | 22 | ||
| 2,904 | 14,436 |
(c)Receiptofservices/Purchaseofgoods
| Forthesixmonthsended30June | |||
| Natureofthetransaction | 2023 | 2022 | |
JointventuresoftheGroup
| JointventuresoftheGroup | Receiptofservices | 621,191 | 500,338 | ||
| AssociatesoftheGroup | Receiptofservices | 582,813 | 337,793 | ||
| EntitiescontrolledbytheultimatecontrollingpersonoftheCompany | Receiptofservices | 314,156 | 239,866 | ||
| EntitiessignificantlyinfluencedbythekeymanagementoftheCompany | Receiptofservices | 41 | - | ||
| AssociatesofMingdeHolding | Receiptofservices | 25 | - | ||
| 1,518,226 | 1,077,997 |
Forthesixmonthsended30June
| Forthesixmonthsended30June | |||
| Natureofthetransaction | 2023 | 2022 | |
EntitiescontrolledbytheultimatecontrollingpersonoftheCompany
| EntitiescontrolledbytheultimatecontrollingpersonoftheCompany | Purchaseofgoods | 141,500 | 146,964 | ||
| AssociatesoftheGroup | Purchaseofgoods | 127,211 | 183,579 | ||
| AssociatesofMingdeHolding | Purchaseofgoods | 816 | 585 | ||
| JointventuresoftheGroup | Purchaseofgoods | 327 | 96 | ||
| 269,854 | 331,224 |
S.F.HOLDINGCO.,LTD.NOTESTOTHEFINANCIALSTATEMENTSFORTHESIXMONTHSENDED30JUNE2023
(AllamountsinRMB’000Yuanunlessotherwisestated)[Englishtranslationforreferenceonly]
8Relatedpartiesandrelatedpartytransactions(Cont’d)
(3)Relatedpartytransactions(Cont’d)(d)Leases(i)Right-of-useassetsincreasedinthecurrentyearwiththeGroupasthelessee
| Forthesixmonthsended30June | |||
| Typeoftheleasedasset | 2023 | 2022 | |
EntitiescontrolledbytheultimatecontrollingpersonoftheCompany
| EntitiescontrolledbytheultimatecontrollingpersonoftheCompany | Buildings | 27,183 | 42,749 | ||
| AssociatesoftheGroup | Buildings | 12,093 | 107,153 | ||
| 39,276 | 149,902 |
(ii)DepreciationandinterestexpensesborneinthecurrentyearbytheGroupasthelessee
| Forthesixmonthsended30June | |||
| Typeoftheleasedasset | 2023 | 2022 | |
AssociatesoftheGroup
| AssociatesoftheGroup | Buildings | 113,054 | 107,565 | ||
| EntitiescontrolledbytheultimatecontrollingpersonoftheCompany | Buildings | 5,938 | 8,013 | ||
| 118,992 | 115,578 |
(iii)LeaseincomerecognisedinthecurrentyearwiththeGroupasthelessor
| Forthesixmonthsended30June | |||
| Typeoftheleasedasset | 2023 | 2022 | |
AssociatesofMingdeHolding
| AssociatesofMingdeHolding | Buildings | 1,565 | 1,652 | ||
| AssociatesoftheGroup | Buildings | 1,116 | 134 | ||
| EntitiescontrolledbytheultimatecontrollingpersonoftheCompany | Buildings | 809 | 584 | ||
| MingdeHolding | Buildings | 341 | - | ||
| JointventuresoftheGroup | Buildings | 304 | 391 | ||
| 4,135 | 2,761 |
S.F.HOLDINGCO.,LTD.NOTESTOTHEFINANCIALSTATEMENTSFORTHESIXMONTHSENDED30JUNE2023(AllamountsinRMB’000Yuanunlessotherwisestated)[Englishtranslationforreferenceonly]
8Relatedpartiesandrelatedpartytransactions(Cont’d)
(3)Relatedpartytransactions(Cont’d)(e)TheGroupastheguarantor
| Guaranteedparty | Guaranteedamount | Guaranteestartdate | Guaranteeexpirydate | Whethertheguaranteehasbeenfulfilled |
AssociatesoftheGroup
| AssociatesoftheGroup | 107,213 | 31December2020 | 23December2033 | No | |
| JointventuresoftheGroup | 782,000 | 29September2021 | 29April2055 | No | |
| 889,213 |
(f)Salesofequity
| Forthesixmonthsended30June | ||
| 2023 | 2022 | |
EntitiescontrolledbytheultimatecontrollingpersonoftheCompany
| EntitiescontrolledbytheultimatecontrollingpersonoftheCompany | 85,188 | - | |
| AssociatesoftheGroup | - | 232,939 | |
| 85,188 | 232,939 |
Forthesixmonthsended30June2023,theGroupearnedatotalofRMB31,654,000ininvestmentincomefromrelatedpartiesfromtheaboveequitytransactions.(g)Remunerationofkeymanagement
| Forthesixmonthsended30June | ||
| 2023 | 2022 | |
Remunerationofkeymanagement
| Remunerationofkeymanagement | 26,241 | 16,018 |
S.F.HOLDINGCO.,LTD.NOTESTOTHEFINANCIALSTATEMENTSFORTHESIXMONTHSENDED30JUNE2023(AllamountsinRMB’000Yuanunlessotherwisestated)[Englishtranslationforreferenceonly]
8Relatedpartiesandrelatedpartytransactions(Cont’d)
(4)Receivablesfromandpayablestorelatedparties(a)Accountsreceivable
| 30June2023 | 31December2022 |
EntitiessignificantlyinfluencedbythekeymanagementoftheCompany
| EntitiessignificantlyinfluencedbythekeymanagementoftheCompany | 220,988 | 176,682 | |
| EntitiescontrolledbytheultimatecontrollingpersonoftheCompany | 28,780 | 27,951 | |
| AssociatesoftheGroup | 17,468 | 24,184 | |
| AssociatesofMingdeHolding | 6,687 | 6,527 | |
| JointventuresoftheGroup | 2,776 | 1,677 | |
| MingdeHolding | 115 | 7 | |
| 276,814 | 237,028 |
(b)Advancestosuppliers
| 30June2023 | 31December2022 |
AssociatesoftheGroup
| AssociatesoftheGroup | 12,559 | 12,404 | |
| EntitiescontrolledbytheultimatecontrollingpersonoftheCompany | 5,424 | 10,913 | |
| JointventuresoftheGroup | 3,151 | 641 | |
| EntitiessignificantlyinfluencedbythekeymanagementoftheCompany | 7 | 2,039 | |
| AssociatesofMingdeHolding | 2 | 3 | |
| 21,143 | 26,000 |
S.F.HOLDINGCO.,LTD.NOTESTOTHEFINANCIALSTATEMENTSFORTHESIXMONTHSENDED30JUNE2023(AllamountsinRMB’000Yuanunlessotherwisestated)[Englishtranslationforreferenceonly]
8Relatedpartiesandrelatedpartytransactions(Cont’d)
(4)Receivablesfromandpayablestorelatedparties(Cont’d)(c)Loansandadvances
| 30June2023 | 31December2022 |
AssociatesoftheGroup
| AssociatesoftheGroup | 53,667 | 32,920 |
(d)Otherreceivables
| 30June2023 | 31December2022 |
Entitiescontrolledbytheultimatecontrolling
personoftheCompany
| EntitiescontrolledbytheultimatecontrollingpersonoftheCompany | 484,449 | 406,426 | |
| AssociatesoftheGroup | 64,625 | 53,756 | |
| EntitiessignificantlyinfluencedbythekeymanagementoftheCompany | 40,462 | 51,920 | |
| JointventuresoftheGroup | 628 | 8,747 | |
| AssociatesofMingdeHolding | 366 | 645 | |
| MingdeHolding | 186 | - | |
| 590,716 | 521,494 |
(e)Othernon-currentassets-Advancesforengineeringequipment
| 30June2023 | 31December2022 |
AssociatesoftheGroup
| AssociatesoftheGroup | 32,049 | 1,497 | |
| EntitiescontrolledbytheultimatecontrollingpersonoftheCompany | - | 488 | |
| EntitiessignificantlyinfluencedbythekeymanagementoftheCompany | - | 120 | |
| 32,049 | 2,105 |
S.F.HOLDINGCO.,LTD.NOTESTOTHEFINANCIALSTATEMENTSFORTHESIXMONTHSENDED30JUNE2023(AllamountsinRMB’000Yuanunlessotherwisestated)[Englishtranslationforreferenceonly]
8Relatedpartiesandrelatedpartytransactions(Cont’d)
(4)Receivablesfromandpayablestorelatedparties(Cont’d)(f)Long-termreceivables(includingcurrentportionoflong-termreceivables)
| 30June2023 | 31December2022 |
AssociatesoftheGroup
| AssociatesoftheGroup | 61,802 | 68,429 | |
| AssociatesofMingdeHolding | 208 | 260 | |
| EntitiescontrolledbytheultimatecontrollingpersonoftheCompany | 17 | - | |
| JointventuresoftheGroup | 15 | - | |
| 62,042 | 68,689 |
(g)Depositsfromcustomers
| 30June2023 | 31December2022 |
AssociatesoftheGroup
| AssociatesoftheGroup | 8,077 | 20,587 |
(h)Accountspayable
| 30June2023 | 31December2022 |
AssociatesoftheGroup
| AssociatesoftheGroup | 152,990 | 184,386 | |
| JointventuresoftheGroup | 143,572 | 155,916 | |
| EntitiescontrolledbytheultimatecontrollingpersonoftheCompany | 112,257 | 164,570 | |
| AssociatesofMingdeHolding | 191 | 349 | |
| EntitiessignificantlyinfluencedbythekeymanagementoftheCompany | 9 | 20 | |
| 409,019 | 505,241 |
S.F.HOLDINGCO.,LTD.NOTESTOTHEFINANCIALSTATEMENTSFORTHESIXMONTHSENDED30JUNE2023(AllamountsinRMB’000Yuanunlessotherwisestated)[Englishtranslationforreferenceonly]
8Relatedpartiesandrelatedpartytransactions(Cont’d)
(4)Receivablesfromandpayablestorelatedparties(Cont’d)(i)Contractliabilities
| 30June2023 | 31December2022 |
JointventuresoftheGroup
| JointventuresoftheGroup | 51,955 | 74 | |
| AssociatesofMingdeHolding | 4,117 | 4,111 | |
| AssociatesoftheGroup | 2,861 | 397 | |
| EntitiescontrolledbytheultimatecontrollingpersonoftheCompany | 794 | 250 | |
| EntitiessignificantlyinfluencedbythekeymanagementoftheCompany | 712 | 2,178 | |
| 60,439 | 7,010 |
(j)Otherpayables
| 30June2023 | 31December2022 |
AssociatesoftheGroup
| AssociatesoftheGroup | 116,766 | 194,620 | |
| EntitiessignificantlyinfluencedbythekeymanagementoftheCompany | 24,455 | 20,839 | |
| AssociatesofMingdeHolding | 3,294 | 2,829 | |
| JointventuresoftheGroup | 1,772 | 978 | |
| EntitiescontrolledbytheultimatecontrollingpersonoftheCompany | 1,739 | 1,039 | |
| MingdeHolding | 182 | 17 | |
| 148,208 | 220,322 |
(k)Leaseliabilities(includingcurrentportionofleaseliabilities)
| 30June2023 | 31December2022 |
AssociatesoftheGroup
| AssociatesoftheGroup | 692,313 | 784,767 | |
| EntitiescontrolledbytheultimatecontrollingpersonoftheCompany | 69,610 | 45,379 | |
| 761,923 | 830,146 |
S.F.HOLDINGCO.,LTD.NOTESTOTHEFINANCIALSTATEMENTSFORTHESIXMONTHSENDED30JUNE2023(AllamountsinRMB’000Yuanunlessotherwisestated)[Englishtranslationforreferenceonly]
8Relatedpartiesandrelatedpartytransactions(Cont’d)
(5)Commitmentsinrelationtorelatedparties(a)Guaranteesprovided
| 30June2023 | 31December2022 |
JointventuresoftheGroup
| JointventuresoftheGroup | 2,384,180 | 2,384,180 |
Theabove-mentionedrelatedpartycommitmentsarecommittedbuthavenotyetprovidedthebalanceofguaranteestorelatedparties.9Share-basedpayments
(1)Overviewofshare-basedpayments
Expensesrecognisedfortheperiodarisingfromshare-basedpaymentswereasfollows:
| Forthesixmonthsended30June | ||
| 2023 | 2022 | |
Equity-settledshare-basedpayments
| Equity-settledshare-basedpayments | 153,461 | 83,204 | |
| Cash-settledshare-basedpayments | 190,592 | 24,733 | |
| 344,053 | 107,937 |
(2)Informationonequity-settledshare-basedpayments(a)Informationonshare-basedpaymentsoftheCompany
InMay2022,theCompanyheldthe25thmeetingofthe5thBoardofDirectorsin2022,atwhichproposalssuchastheStockOptionIncentivePlan(“2022StockOptionIncentivePlan”)wereapproved.TheCompanygrantednomorethan47,892,100shareoptionsto1,449eligibleincentiverecipientson30May2022,andtheexercisepriceoftheshareoptionisRMB42.61.IftheCompanymeetsthepredeterminedperformanceconditionsandtheincentiverecipientsmeettheperformanceevaluationindicators,thefourquartersofthetotalshareoptionsreceivedbythegranteewillcomeintoeffectfrom30May2022after12months,24months,36monthsand48months,respectively.
S.F.HOLDINGCO.,LTD.NOTESTOTHEFINANCIALSTATEMENTSFORTHESIXMONTHSENDED30JUNE2023(AllamountsinRMB’000Yuanunlessotherwisestated)[Englishtranslationforreferenceonly]
9Share-basedpayments(Cont'd)
(2)Informationonequity-settledshare-basedpayments(Cont'd)(a)Informationonshare-basedpaymentsoftheCompany(Cont'd)
Ateachbalancesheetdateduringthevestingperiodoftheincentiveplan,thenumberofshareoptionsexpectedtobeexercisedwillberevisedbasedonsubsequentinformationsuchaschangesinthenumberofemployeeswhocanexercisetheirshareoptionsandthecompletionofvestingconditions,andtheservicesobtainedinthecurrentperiodwillbeincludedinrelevantcostsandcapitalreservebasedonthefairvalueofshareoptionsatthegrantdate.Asat30June2023,theequity-settledshare-basedpaymentsrecognisedbytheCompanyaccumulatedtoRMB382,047,000(31December2022:RMB244,485,000).Forthesixmonthsended30June2023,theamountofexpensesrecognisedbytheCompanyfortheequity-settledshare-basedpaymentswasRMB137,562,000(forthesixmonthsended30June2022:RMB33,405,000).(b)Informationonshare-basedpaymentsoftheCompany’ssubsidiaries
TheGroupgrantedsomeequitiesorshareoptionsofseveralsubsidiaries,totheseniormanagementandotheremployeesoftheaforesaidcompaniesorothersubsidiarieswithintheGrouprespectively.Asat30June2023,theequity-settledshare-basedpaymentsofthesecompaniesrecognisedbytheGroupaccumulatedtoRMB523,934,000(31December2022:RMB508,035,000),includingaccumulatedamountsattributabletoshareholdersoftheparentcompanyofRMB445,585,000(31December2022:RMB431,320,000).Forthesixmonthsended30June2023,theexpensesrecognisedfortheequity-settledshare-basedpaymentsamountedtoRMB15,899,000(forthesixmonthsended30June2022:RMB49,799,000).Thefairvalueatthegrantdatewasrecognisedbasedonthediscountcashflowmodelandthebinomialtreemodel.
(3)Informationoncash-settledshare-basedpayments
CertainsubsidiariesoftheGroupusetheirsharesortheCompany'ssharesasthecalculationbasistograntcash-settledshare-basedpaymentstoeligibleemployeesofthosesubsidiaries.Asat30June2023,liabilitiesarisingfromthecash-settledshare-basedpaymentsaccumulatedtoRMB458,365,000(31December2022:RMB334,757,000).Forthesixmonthsended30June2023,theexpensesrecognisedbytheGroupforcash-settledshare-basedpaymentsamountedtoRMB190,592,000(forthesixmonthsended30June2022:RMB24,733,000).Thefairvalueatthebalancesheetdatewasrecognisedbasedonthediscountcashflowmodelandthebinomialtreemodel.
S.F.HOLDINGCO.,LTD.NOTESTOTHEFINANCIALSTATEMENTSFORTHESIXMONTHSENDED30JUNE2023(AllamountsinRMB’000Yuanunlessotherwisestated)[Englishtranslationforreferenceonly]
10Commitments
(1)Capitalcommitments(a)Asatthebalancesheetdate,capitalexpenditurescontractedforbutnotyetnecessarytobe
recognisedbytheGroupinthebalancesheetareasfollows:
| 30June2023 | 31December2022 |
Buildings,machineryandequipment
| Buildings,machineryandequipment | 2,429,797 | 3,571,632 | |
| Investmentcontractsthathavebeensignedbutnotfulfilledornotabsolutelyfulfilled | 1,883,228 | 1,811,611 | |
| 4,313,025 | 5,383,243 |
(2)Othercommitments
InNovember2020,theGroupissuedasset-backedsecuritiesthroughtheSpecialSchemesetupbyHuataiSecurities(Shanghai)AssetManagementCo.,Ltd.byusingfivelogisticsindustrialparksheldbyitasunderlyingassets.YiwuFengyutaiEnterpriseManagementCo.,Ltd.,QuanzhouFengyutaiEnterpriseManagementCo.,Ltd.,WuxiJietaiEnterpriseManagementCo.,Ltd.andHuai'anFengtaiEnterpriseManagementCo.,Ltd.(collectively“PropertyOperators”),wholly-ownedsubsidiariesoftheGroup,workedasthepropertyoperatorsoftheSpecialScheme.Incasethattheactualoperatingincomeofthepropertyassetsdoesnotreach90%butisnotlowerthan80%ofthetargetamount,thePropertyOperatorswerecommittedtocompensatetheinsufficientpartofthetargetamountwithTaisenHoldingsprovidingguaranteeforthecompensationobligation.Attheendofeachthreeyears,themanageroftheaboveSpecialSchemeacceptsopen-endedwithdrawalandsubscriptionofpreferredsecuritieswithinthewithdrawalregisteringperiod.Ifthepreferredsecuritiessharesthathavenotcompletedopen-endedwithdrawalarelessthan20%oftotalundistributedprincipalofthepreferredsecuritiesofRMB788millionattheextensionoperationannouncementdate,TaisenHoldingswillpurchasesuchpreferredsecurities.11Contingency
AsstatedinNote8(3)(e),subsidiariesoftheGroupprovideloanguaranteestorelatedparties.On30June2023,thetotalguaranteeamountwasRMB889,213,000(31December2022:RMB895,374,000).
S.F.HOLDINGCO.,LTD.NOTESTOTHEFINANCIALSTATEMENTSFORTHESIXMONTHSENDED30JUNE2023
(AllamountsinRMB’000Yuanunlessotherwisestated)[Englishtranslationforreferenceonly]
12Operatingleasepaymentsafterthebalancesheetdate
Asthelessor,theGroup’sundiscountedleasepaymentsreceivableafterthebalancesheetdateareasfollows:
| 30June2023 | 31December2022 |
Within1year(inclusive)
| Within1year(inclusive) | 322,969 | 228,038 | |
| 1to2years(inclusive) | 222,068 | 185,848 | |
| 2to3years(inclusive) | 153,997 | 134,539 | |
| 3to4years(inclusive) | 114,049 | 179,036 | |
| 4to5years(inclusive) | 93,249 | 60,581 | |
| Over5years | 514,292 | 246,444 | |
| 1,420,624 | 1,034,486 |
13Businesscombinations
RefertoNote5(1).14Financialinstrumentsandrelevantrisks
TheGroup'sactivitiesexposeittoavarietyoffinancialrisks:marketrisk(primarilyincludingforeign
exchangerisk,interestrateriskandotherpricerisk),creditriskandliquidityrisk.Theabove
financialrisksandtheGroup'sriskmanagementpoliciestomitigatetherisksareasfollows:
TheBoardofDirectorsisresponsibleforplanningandestablishingtheGroup'sriskmanagement
framework,formulatingtheGroup'sriskmanagementpoliciesandrelatedguidelines,and
supervisingtheimplementationofriskmanagementmeasures.TheGrouphasestablishedrisk
managementpoliciestoidentifyandanalysetherisksfacedbytheGroup.Theseriskmanagement
policiesspecifytheriskssuchasmarketrisk,creditriskandliquidityriskmanagement.TheGroup
regularlyevaluatesthemarketenvironmentandchangesintheGroup'soperatingactivitiesto
determinewhethertoupdatetheriskmanagementpoliciesandsystemsornot.TheGroup'srisk
managementiscarriedoutbytheRiskManagementCommitteeunderpoliciesapprovedbythe
BoardofDirectors.TheRiskManagementCommitteeencouragesthedepartmentsoftheGroupto
workcloselytogethertoidentify,evaluateandavoidrelevantrisks.Theinternalauditdepartmentof
theGroupconductsperiodicalaudittothecontrolsandproceduresforriskmanagementand
reportstheauditresultstotheAuditCommitteeoftheGroup.
S.F.HOLDINGCO.,LTD.NOTESTOTHEFINANCIALSTATEMENTSFORTHESIXMONTHSENDED30JUNE2023
(AllamountsinRMB’000Yuanunlessotherwisestated)[Englishtranslationforreferenceonly]
14Financialinstrumentsandrelevantrisks(Cont’d)
(1)Marketrisk(a)Foreignexchangerisk
TheGroup’smajoroperationalactivitiesarecarriedoutintheChinesemainlandandamajorityofthetransactionsaredenominatedinRMB.Someoperationalactivitiesarecarriedoutinregions/countriesincludingHongKongSAR,USA,EuropeandrelevanttransactionsaresettledinHKD,USDandEUR.Therefore,theGroupisexposedtoforeignexchangeriskarisingfromtherecognisedfinancialassetsandliabilitiesdenominatedinnon-recordingcurrencies,andfuturetransactionsdenominatedinforeigncurrencies.Managementisresponsibleformonitoringtheamountoffinancialassetsandfinancialliabilities,andtransactionsdenominatedinnon-recordingcurrenciestoreduceforeignexchangerisktothegreatestextent.(i)ForeignexchangeriskofcompanieswithRMBasrecordingcurrency
AsatJune30,2023andDecember31,2022,theforeignexchangeexposureofnon-localcurrencyfinancialassetsandfinancialliabilitiesheldbytheGroup'scompanieswithRMBasthelocalcurrencyofaccountasshowninNote4(51)(a)wasmainlysourcedfromtheU.S.dollar,theHongKongdollarandtheeuro.Asat30June2023,iftheRMBhadappreciated/depreciatedby5%againsttheUSDwhileallothervariableshadbeenheldconstant,theGroup’sprofitbeforetaxwouldhavebeenapproximatelyRMB47,752,000higher/lower(31December2022:approximatelyRMB74,507,000lower/higher)fortheabovevariousfinancialassetsandfinancialliabilitiesdenominatedinUSD.ThechangesinexchangerateofotherforeigncurrenciesagainstRMBhavenosignificantinfluenceontheGroup’soperatingactivities.(ii)ForeignexchangeriskofcompanieswithHKDasrecordingcurrency
Asat30June2023and31December2022,theforeignexchangeexposureoffinancialassetsandfinancialliabilitiesdenominatedinnon-recordingcurrenciesheldbycompanieslocatedinHongKongSARwithHKDbeingtheirrecordingcurrencywasmainlyderivedfromtheUSD.BecausetheHKDandtheUSDarelinkedexchangerates,theforeignexchangerisksfacedbytheabove-mentionedcompaniesusingHKDastheirrecordingcurrencyarenotsignificant.(iii)Asat30June2023andDecember31,2022,theGroup’soverseassubsidiaries,exceptforthose
operatinginHongKongSAR,heldnosignificantfinancialassetsorfinancialliabilitiesdenominatedinnon-recordingcurrencies.(iv)InviewofthedifferentrecordingcurrenciesofsubsidiarieswithintheGroup,thereisstillforeign
exchangeriskarisingeveniftransactionsandbalanceswithintheGroupareoffset.Asat30June2023and31December2022,suchforeignexchangerisksarenotmaterial.
S.F.HOLDINGCO.,LTD.NOTESTOTHEFINANCIALSTATEMENTSFORTHESIXMONTHSENDED30JUNE2023
(AllamountsinRMB’000Yuanunlessotherwisestated)[Englishtranslationforreferenceonly]
14Financialinstrumentsandrelevantrisks(Cont’d)
(1)Marketrisk(Cont’d)(b)Interestraterisk
TheGroup'sinterestrateriskarisesfromlong-terminterestbearingdebtsincludinglong-termbankborrowingsanddebenturespayable.FinancialliabilitiesissuedatfloatingratesexposetheGrouptocashflowinterestraterisk.FinancialliabilitiesissuedatfixedratesexposetheGrouptofairvalueinterestraterisk.TheGroupdeterminestherelativeproportionsofitsfixedrateandfloatingratecontractsdependingontheprevailingmarketconditions.Asat30June2023,theGroup’slong-terminterestbearingdebtsweremainlyrelatedtofloatingratelong-termborrowings,andfixedratedebenturespayable.Amongthem,floatingratelong-termborrowingsamountedtoRMB10,813,082,000(31December2022:RMB7,472,010,000);thecontractamountoffixedratedebenturespayabledenominatedinRMBwasRMB1,000,000,000(31December2022:RMB1,000,000,000),andthecontractamountoffixedratedebenturespayabledenominatedinUSDwasUSD2,600,000,000,equivalenttoRMB18,787,080,000(31December2022:USD2,600,000,000,equivalenttoRMB18,107,960,000).TheGroupcontinuouslymonitorstheinterestratepositionoftheGroup.IncreasesininterestrateswillincreasethecostofnewinterestbearingdebtsandtheinterestexpenseswithrespecttotheGroup’soutstandingfloatingrateborrowings,andthereforecouldhaveamaterialadverseeffectontheGroup’sfinancialperformance.Managementmakesadjustmentstimelywithreferencetothelatestmarketconditionsandmayenterintointerestrateswapagreementstomitigateitsexposuretointerestraterisk.Asat30June2023,ifinterestratesonborrowingshadincreased/decreasedby50basispointswhileallothervariableshadbeenheldconstant,theGroup’sprofitbeforetaxwouldhavedecreased/increasedbyapproximatelyRMB54,065,000(31December2022:RMB37,360,000).(c)Otherpricerisk
TheGroup'sotherpriceriskarisesmainlyfrommovementsinpriceofvariousinvestmentsinequityinstrumentsmeasuredatfairvaluethatwillnotbesoldwithin1year.Asat30June2023,ifthepriceofvariousinvestmentsinequityinstrumentshadrisen/fallenby10%whileallothervariableshadbeenheldconstant,theGroup’sprofitbeforetaxandothercomprehensiveincomebeforetaxwouldhavebeenapproximatelyRMB247,882,000(31December2022:approximatelyRMB101,221,000)andRMB745,456,000(31December2022:
approximatelyRMB736,568,000)higher/lower,respectively.
S.F.HOLDINGCO.,LTD.NOTESTOTHEFINANCIALSTATEMENTSFORTHESIXMONTHSENDED30JUNE2023
(AllamountsinRMB’000Yuanunlessotherwisestated)[Englishtranslationforreferenceonly]
14Financialinstrumentsandrelevantrisks(Cont’d)
(2)Creditrisk
TheGroup'screditriskmainlyarisesfromcashatbankandonhand,notesreceivable,accountsreceivable,factoringreceivables,loansandadvances,otherreceivables,contractassets,currentportionofnon-currentassets,long-termreceivables,investmentsindebtinstrumentsmeasuredatfairvaluethroughprofitorlossthatarenotincludedintheassessmentofimpairment,etc.Atthebalancesheetdate,theGroup'smaximumexposuretocreditriskrepresentsthecarryingamountoftheGroup'sfinancialassets,exceptthatthemaximumexposuretocreditriskoflong-termreceivablesrepresentstheaggregateofitsundiscountedcontractualcashflows.TheGroupexpectsthatthereisnosignificantcreditriskassociatedwithcashatbankandonhandsincetheyaremainlydepositsatstate-ownedbanksandothermediumorlargesizelistedbankswithgoodreputationandahighercreditrating.TheGroupdoesnotexpectthattherewillbeanysignificantlossesfromnon-performancebythesecounterparties.TheGroup’snotesreceivable,accountsreceivable,otherreceivables,contractassets,currentportionofnon-currentassetsandlong-termreceivablesincludereceivablesfromrelatedpartiesandreceivablesfromnon-relatedparties.Inrespectofreceivablesfromrelatedparties,theGroupconsidersthattheyhavelowcreditrisk;inrespectofreceivablesfromnon-relatedparties,theGroupwilldeveloprelevantpoliciestocontroltheexposuretocreditrisk.TheGroupevaluatescustomers’creditqualitybasedontheirfinancialposition,possibilityofobtainingguaranteesfromthirdparties,credithistoryandsuchotherfactorsascurrentmarketconditionsanddeterminesthecredittermbasedontheevaluationresults.Thecredittermofaccountsreceivablerangesfrom30daysto90days.TheGroupmonitorscustomers’credithistoryonaregularbasis.Inrespectofcustomerswithapoorcredithistory,theGroupwillusepaymentreminders,orshortenorcancelcreditterms,toensuretheoverallcreditriskoftheGroupislimitedtoacontrollableextent.TheGroup’snotesreceivable,accountsreceivableandcontractassetsmainlyarisefromrenderingoflogisticsandfreightforwardingservicesandotherrelatedservicesorsalesofgoods,whileotherreceivables,currentportionofnon-currentassetsandlong-termreceivablesrepresentadvances,cashondeliveryservice,depositsandguarantees,loanstoemployeesandfinanceleasereceivablesarisingfromrenderingoflogisticsandfreightforwardingservices.Managementmaintainsongoingevaluationondebtors’financialposition,butgenerallydoesnotrequiredebtors’mortgageforoutstandingdebts.TheGroupmonitorsandreviewsexpectedcreditlossesonoutstandingamountsonaregularbasis,andtakesintoaccountimportantmacroeconomicassumptionsandparametersinthecalculationofexpectedcreditlosses,includingtheriskofeconomicdownturn,externalmarketconditions,changesincustomerconditions,grossdomesticproductandconsumerpriceindex.Managementmakestheprovisionforbaddebtsbasedontheevaluationresultsthereof.WhereitisimpossiblefortheGrouptoreasonablyestimatetherecoverableamount,therelevantoutstandingamountshallbewrittenoffaccordingly.Indicatorsforimpossibilitytoreasonablyestimatetherecoverableamountincludedebtors’failuretomakecontractpaymentsasplannedormakeoverduecontractpayments,significantfinancialdifficulties,bankruptcyliquidation,etc.
S.F.HOLDINGCO.,LTD.NOTESTOTHEFINANCIALSTATEMENTSFORTHESIXMONTHSENDED30JUNE2023
(AllamountsinRMB’000Yuanunlessotherwisestated)[Englishtranslationforreferenceonly]
14Financialinstrumentsandrelevantrisks(Cont’d)
(2)Creditrisk(Cont’d)
Forfactoringreceivablesandloansandadvances,theGroupdevelopedcreditpoliciesandoperationalimplementationrulesinaccordancewiththerequirementsofrelevantstateregulatoryauthorities,andimplementedstandardisedmanagementovertheentireprocessofcreditgranting.Inaddition,theGroupfurtherimprovedthesystemsforcreditriskmonitoringandearlywarninganddefectivecreditextensionmanagement.TheGroupactivelyrespondedtothechangesinthecreditenvironment,regularlyanalysedthesituationanddynamicofcreditrisksandtookriskcontrolmeasuresonaforward-lookingbasis.TheGroupalsoestablishedanoptimisationmanagementmechanismfordefectivecreditandacceleratedtheoptimisationprogressofdefectivecredittoavoidnon-performingloans.Asat30June2023,theGrouphadnosignificantcollateralorothercreditenhancementsheldasaresultofthedebtor'smortgage(31December2022:Nil).
(3)Liquidityrisk
CashflowforecastingisperformedbyeachsubsidiaryoftheGroupandaggregatedbytheGroup.TheGroupmonitorsrollingforecastsoftheGroup'sshort-termandlong-termliquidityrequirementstoensureithassufficientcashandsecuritiesthatarereadilyconvertibletocashtomeetoperationalneeds,whilemaintainingsufficientheadroomonitsundrawncommittedborrowingfacilitiesfrommajorfinancialinstitutionssothattheGroupdoesnotbreachborrowinglimitsorcovenantsonanyofitsborrowingfacilitiestomeettheshort-termandlong-termliquidityrequirements.ThefinancialliabilitiesoftheGroupatthebalancesheetdateareanalysedbytheirmaturitydatebelowattheirundiscountedcontractualcashflows:
| 30June2023 | ||||||||
| Within1year | 1to2years | 2to5years | Over5years | Total | ||||
Depositsfromcustomers
| Depositsfromcustomers | 9,868 | - | - | - | 9,868 | ||||
| Accountspayable | 22,746,521 | - | - | - | 22,746,521 | ||||
| Otherpayables | 12,073,261 | - | - | - | 12,073,261 | ||||
| Short-termborrowings | 14,427,024 | - | - | - | 14,427,024 | ||||
| Othercurrentliabilities | 1,524,121 | - | - | - | 1,524,121 | ||||
| Currentportionofnon-currentliabilities | 12,359,342 | - | - | - | 12,359,342 | ||||
| Long-termborrowings | 180,975 | 2,794,446 | 8,083,481 | 550,404 | 11,609,306 | ||||
| Debenturespayable | 1,078,138 | 562,511 | 7,303,495 | 12,970,172 | 21,914,316 | ||||
| Long-termpayables | - | 222,875 | - | - | 222,875 | ||||
| Leaseliabilities | - | 4,255,475 | 3,249,391 | 1,850,779 | 9,355,645 | ||||
| 64,399,250 | 7,835,307 | 18,636,367 | 15,371,355 | 106,242,279 |
S.F.HOLDINGCO.,LTD.NOTESTOTHEFINANCIALSTATEMENTSFORTHESIXMONTHSENDED30JUNE2023
(AllamountsinRMB’000Yuanunlessotherwisestated)[Englishtranslationforreferenceonly]
14Financialinstrumentsandrelevantrisks(Cont’d)
(3)Liquidityrisk(Cont’d)
ThefinancialliabilitiesoftheGroupatthebalancesheetdateareanalysedbytheirmaturitydatebelowattheirundiscountedcontractualcashflows(Cont’d):
| 31December2022 | ||||||||
| Within1year | 1to2years | 2to5years | Over5years | Total | ||||
Depositsfromcustomers
| Depositsfromcustomers | 20,670 | - | - | - | 20,670 | ||||
| Accountspayable | 24,715,352 | - | - | - | 24,715,352 | ||||
| Otherpayables | 13,346,595 | - | - | - | 13,346,595 | ||||
| Short-termborrowings | 12,963,318 | - | - | - | 12,963,318 | ||||
| Othercurrentliabilities | 5,118,489 | - | - | - | 5,118,489 | ||||
| Currentportionofnon-currentliabilities | 11,448,352 | - | - | - | 11,448,352 | ||||
| Long-termborrowings | 161,001 | 3,101,351 | 4,660,180 | 85,488 | 8,008,020 | ||||
| Debenturespayable | 581,461 | 1,068,586 | 7,373,540 | 13,179,071 | 22,202,658 | ||||
| Long-termpayables | - | 210,501 | - | - | 210,501 | ||||
| Leaseliabilities | - | 4,179,191 | 3,797,852 | 1,976,864 | 9,953,907 | ||||
| 68,355,238 | 8,559,629 | 15,831,572 | 15,241,423 | 107,987,862 |
CashflowsderivedfromleasesnotyetcommencedtowhichtheGroupwascommittedwereanalysedbymaturityatthebalancesheetdate:
| 30June2023 | 31December2022 |
Within1year(inclusive)
| Within1year(inclusive) | 1,028,185 | 986,197 | |
| 1to2years(inclusive) | 302,016 | 259,841 | |
| 2to3years(inclusive) | 278,029 | 200,248 | |
| Over3years | 2,812,365 | 192,415 | |
| 4,420,595 | 1,638,701 |
S.F.HOLDINGCO.,LTD.NOTESTOTHEFINANCIALSTATEMENTSFORTHESIXMONTHSENDED30JUNE2023(AllamountsinRMB’000Yuanunlessotherwisestated)[Englishtranslationforreferenceonly]
15Fairvalueestimates
Thelevelinwhichfairvaluemeasurementiscategorisedisdeterminedbythelevelofthefairvaluehierarchyofthelowestlevelinputthatissignificanttotheentirefairvaluemeasurement:
Level1:Quotedprices(unadjusted)inactivemarketsforidenticalassetsorliabilities.Level2:InputsotherthanquotedpricesincludedwithinLevel1thatareobservablefortheassetorliability,eitherdirectlyorindirectly.Level3:Unobservableinputsfortheassetorliability.
(1)Financialassetsandfinancialliabilitiesmeasuredatfairvalueonarecurringbasis
Asat30June2023,thefinancialassetsmeasuredatfairvalueonarecurringbasisbytheabovethreelevelswereanalysedbelow:
| Level1 | Level2 | Level3 | Total |
Financialassetsheldfortrading-
| Financialassetsheldfortrading- | |||||||
| Structureddeposits | - | - | 14,256,424 | 14,256,424 | |||
| Fundinvestments | 77 | 396 | - | 473 | |||
| Others | - | 10,746 | - | 10,746 | |||
| Receivablesfinancing- | |||||||
| Notesreceivable | - | 85,396 | - | 85,396 | |||
| Othernon-currentfinancialassets- | |||||||
| Industryfundinvestments | - | - | 765,315 | 765,315 | |||
| SpecialSchemeequityclasssecurities | - | - | 116,286 | 116,286 | |||
| Others | - | - | 1,597,223 | 1,597,223 | |||
| Investmentsinotherequityinstruments- | |||||||
| Equityoflistedcompanies | 116,994 | - | - | 116,994 | |||
| Equityofunlistedcompanies | - | - | 7,337,565 | 7,337,565 | |||
| Totalfinancialassets | 117,071 | 96,538 | 24,072,813 | 24,286,422 |
S.F.HOLDINGCO.,LTD.NOTESTOTHEFINANCIALSTATEMENTSFORTHESIXMONTHSENDED30JUNE2023
(AllamountsinRMB’000Yuanunlessotherwisestated)[Englishtranslationforreferenceonly]
15Fairvalueestimates(Cont’d)
(1)Financialassetsandfinancialliabilitiesmeasuredatfairvalueonarecurringbasis(Cont’d)
Asat31December2022,thefinancialassetsmeasuredatfairvalueonarecurringbasisbytheabovethreelevelswereanalysedbelow:
| Level1 | Level2 | Level3 | Total |
Financialassetsheldfortrading-
| Financialassetsheldfortrading- | |||||||
| Structureddeposits | - | - | 7,351,158 | 7,351,158 | |||
| Fundinvestments | 77 | 34,144 | - | 34,221 | |||
| Receivablesfinancing- | |||||||
| Notesreceivable | - | 63,310 | - | 63,310 | |||
| Othernon-currentfinancialassets- | |||||||
| Industryfundinvestments | - | - | 770,637 | 770,637 | |||
| SpecialSchemeequity-classsecurities | - | - | 116,286 | 116,286 | |||
| Others | - | - | 125,286 | 125,286 | |||
| Investmentsinotherequityinstruments- | |||||||
| Equityoflistedcompanies | 158,936 | - | - | 158,936 | |||
| Equityofunlistedcompanies | - | 127,564 | 7,079,184 | 7,206,748 | |||
| Totalfinancialassets | 159,013 | 225,018 | 15,442,551 | 15,826,582 |
Asat30June2023,thefinancialliabilitiesmeasuredatfairvalueonarecurringbasisbytheabovethreelevelswereanalysedbelow:
| Level1 | Level2 | Level3 | Total |
Derivativefinancialliabilities-
| Derivativefinancialliabilities- | |||||||
| Others | - | 86,257 | - | 86,257 |
Asat31December2022,thefinancialliabilitiesmeasuredatfairvalueonarecurringbasisbytheabovethreelevelswereanalysedbelow:
| Level1 | Level2 | Level3 | Total |
Derivativefinancialliabilities:
| Derivativefinancialliabilities: | |||||||
| Others | - | 96,647 | - | 96,647 |
TheGrouptakesthedateonwhicheventscausingthetransfersbetweenthelevelstakeplaceasthetimingspecificforrecognisingthetransfers.Therewerenotransfersbetweendifferentlevelsfortheperiod.
S.F.HOLDINGCO.,LTD.NOTESTOTHEFINANCIALSTATEMENTSFORTHESIXMONTHSENDED30JUNE2023(AllamountsinRMB’000Yuanunlessotherwisestated)[Englishtranslationforreferenceonly]
15Fairvalueestimates(Cont'd)
(1)Financialassetsandfinancialliabilitiesmeasuredatfairvalueonarecurringbasis(Cont’d)
Thefairvalueoffinancialinstrumentstradedinanactivemarketisdeterminedatthequotedmarketprice;andthefairvalueofthosenottradedinanactivemarketisdeterminedbytheGroupusingvaluationtechnique.Thevaluationmodelsusedmainlycomprisediscountedcashflowmodelandmarketcomparablecompanymodel.Theinputsofthevaluationtechniquemainlyincluderisk-freeinterestrate,benchmarkrate,exchangerate,creditspread,liquiditypremium,EBITDAmultiplieranddiscountforlackofliquidity.ThechangesinLevel3assetsareanalysedbelow:
| Financialassetsheldfortrading | Othernon-currentfinancialassets | Othernon-currentfinancialassets | Othernon-currentfinancialassets | Otherequityinstruments | ||||
| -Structureddeposits | -Industryfundinvestments | -SpecialSchemeequity-classsecurities | -Others | -Equityinstrumentsavailableforsale |
31December2022
| 31December2022 | 7,351,158 | 770,637 | 116,286 | 125,286 | 7,079,184 | ||||
| Increaseinthecurrentperiod | 55,820,000 | 9,412 | - | 1,384,772 | 36,411 | ||||
| Decreaseinthecurrentperiod | (49,198,870) | (4,092) | - | (697) | - | ||||
| Gainsrecognisedinprofitorlossforthecurrentperiod | 284,136 | (25,154) | - | 18,306 | - | ||||
| Gainsrecognisedinothercomprehensiveincome | - | - | - | - | (11,090) | ||||
| Effectoftranslationofforeigncurrencyfinancialstatements | - | 14,512 | - | 69,556 | 233,060 | ||||
| 30June2023 | 14,256,424 | 765,315 | 116,286 | 1,597,223 | 7,337,565 |
S.F.HOLDINGCO.,LTD.NOTESTOTHEFINANCIALSTATEMENTSFORTHESIXMONTHSENDED30JUNE2023(AllamountsinRMB’000Yuanunlessotherwisestated)[Englishtranslationforreferenceonly]
15Fairvalueestimates(Cont'd)
(1)Financialassetsandfinancialliabilitiesmeasuredatfairvalueonarecurringbasis(Cont’d)
| Financialassetsheldfortrading | Othernon-currentfinancialassets | Othernon-currentfinancialassets | Othernon-currentfinancialassets | Otherequityinstruments | ||||
| -Structureddeposits | -Industryfundinvestments | -SpecialSchemeequity-classsecurities | -Others | -Equityinstrumentsavailableforsale |
31December2021
| 31December2021 | 9,730,665 | 552,130 | 235,821 | 90,072 | 6,167,109 | ||||
| Increaseinthecurrentperiod | 81,069,100 | 210,480 | - | 31,069 | 334,567 | ||||
| Decreaseinthecurrentperiod | (81,111,950) | (14,957) | - | - | - | ||||
| Gainsrecognisedinprofitorlossforthecurrentperiod | 309,179 | 677 | - | - | - | ||||
| Gainsrecognisedinothercomprehensiveincome | - | - | - | - | 13,352 | ||||
| Effectoftranslationofforeigncurrencyfinancialstatements | - | 6,094 | - | 1,854 | 282,149 | ||||
| 30June2022 | 9,996,994 | 754,424 | 235,821 | 122,995 | 6,797,177 |
S.F.HOLDINGCO.,LTD.NOTESTOTHEFINANCIALSTATEMENTSFORTHESIXMONTHSENDED30JUNE2023
(AllamountsinRMB’000Yuanunlessotherwisestated)[Englishtranslationforreferenceonly]
15Fairvalueestimates(Cont'd)
(2)Financialassetsandfinancialliabilitiesnotmeasuredatfairvaluebutdisclosed
TheGroup’sfinancialassetsandfinancialliabilitiesmeasuredatamortisedcostmainlyincludecashatbankandonhand,receivables,factoringreceivables,loansandadvances,currentportionofnon-currentassets,long-termreceivables,short-termborrowings,payables,leaseliabilities,long-termborrowings,debenturespayable,currentportionofnon-currentliabilities,othercurrentliabilitiesandlong-termpayables.Thecarryingamountoffinancialassetsandfinancialliabilitiesnotmeasuredatfairvalueisareasonableapproximationoftheirfairvalue.Thefairvalueoffinancialassetsandfinancialliabilitiesoveroneyearisthepresentvalueofthecontractuallydeterminedstreamoffuturecashflowsdiscountedattherateofinterestappliedatthattimebythemarkettoinstrumentsofcomparablecreditstatusandprovidingsubstantiallythesamecashflowsonthesameterms,andcategorisedwithinLevel3ofthefairvaluehierarchy.16Capitalmanagement
TheGroup’scapitalmanagementpoliciesaimtosafeguardtheGroup’sabilitytocontinueasagoingconcerninordertoprovidereturnsforshareholdersandbenefitsforotherstakeholders,andtomaintainanoptimalcapitalstructuretoreducethecostofcapital.Inordertomaintainoradjustthecapitalstructure,theGroupmayadjusttheamountofdividendspaidtoshareholders,refundcapitaltoshareholders,issuenewsharesorsellassetstoreducedebts.TheGroup'stotalcapitaliscalculatedas“shareholders’equity”asshownintheconsolidatedbalancesheet.TheGroupisnotsubjecttoexternalmandatorycapitalrequirements.Asat30June2023and31December2022,theGroup'sdebt-to-assetratiowasasfollows:
| 30June2023 | 31December2022 |
Debt-to-assetratio
| Debt-to-assetratio | 53.58% | 54.67% |
S.F.HOLDINGCO.,LTD.NOTESTOTHEFINANCIALSTATEMENTSFORTHESIXMONTHSENDED30JUNE2023
(AllamountsinRMB’000Yuanunlessotherwisestated)[Englishtranslationforreferenceonly]
17NotestotheCompany’sfinancialstatements
(1)Cashatbankandonhand
| 30June2023 | 31December2022 |
Cashatbank
| Cashatbank | 1,127,042 | 812,181 |
(2)Financialassetsheldfortrading
| 30June2023 | 31December2022 |
Structureddeposits
| Structureddeposits | 833,089 | 2,335,319 |
(3)Otherreceivables
| 30June2023 | 31December2022 |
Fundsallocatedtosubsidiaries
| Fundsallocatedtosubsidiaries | 15,105,771 | 14,689,829 | |
| DividendsreceivablefromTaisenHoldings | - | 500,000 | |
| Others | 1,613 | 1,643 | |
| 15,107,384 | 15,191,472 | ||
| Less:Provisionforbaddebts | (13) | (8) | |
| 15,107,371 | 15,191,464 |
Theageingofotherreceivablesisanalysedasfollows:
| 30June2023 | 31December2022 |
Within1year(inclusive)
| Within1year(inclusive) | 5,303,634 | 2,753,246 | |
| 1to2years(inclusive) | 2,105,361 | 10,764,477 | |
| Over2years | 7,698,389 | 1,673,749 | |
| 15,107,384 | 15,191,472 |
(4)Long-termequityinvestments
| 30June2023 | 31December2022 |
Subsidiaries(a)
| Subsidiaries(a) | 58,355,476 | 58,217,914 | |
| Less:Provisionforimpairmentoflong-termequityinvestments | - | - | |
| 58,355,476 | 58,217,914 |
Thereisnosignificantrestrictiononsalesofthelong-termequityinvestmentsheldbytheCompany.
S.F.HOLDINGCO.,LTD.NOTESTOTHEFINANCIALSTATEMENTSFORTHESIXMONTHSENDED30JUNE2023(AllamountsinRMB’000Yuanunlessotherwisestated)[Englishtranslationforreferenceonly]
17NotestotheCompany’sfinancialstatements(Cont’d)
(4)Long-termequityinvestments(Cont’d)(a)Subsidiaries
| Accountingmethod | 31December2022 | Movementsinthecurrentperiod | 30June2023 | Shareholding(%) | Votingrights(%) | Provisionforimpairment | Cashdividendsdeclaredinthecurrentperiod |
TaisenHoldings
| TaisenHoldings | Costmethod | 58,217,914 | 137,562 | 58,355,476 | 100% | 100% | - | - |
S.F.HOLDINGCO.,LTD.NOTESTOTHEFINANCIALSTATEMENTSFORTHESIXMONTHSENDED30JUNE2023
(AllamountsinRMB’000Yuanunlessotherwisestated)[Englishtranslationforreferenceonly]
17NotestotheCompany’sfinancialstatements(Cont’d)
(5)Investmentincome
| Forthesixmonthsended30June | ||
| 2023 | 2022 | |
Investmentincomefromfinancialassetsheldfortrading
| Investmentincomefromfinancialassetsheldfortrading | 22,167 | 119,941 |
S.F.HOLDINGCO.,LTD.SUPPLEMENTARYINFORMATIONTOTHEFINANCIALSTATEMENTSFORTHESIXMONTHSENDED30JUNE2023
(AllamountsinRMB’000Yuanunlessotherwisestated)[Englishtranslationforreferenceonly]
1Statementofnon-recurringprofitorloss
| Forthesixmonthsended30June | ||
| 2023 | 2022 | |
Investmentincomefromdisposalofsubsidiaries
| Investmentincomefromdisposalofsubsidiaries | 244,982 | 32,314 | |
| Gainsondisposalofothernon-currentassets | 45,950 | 20,464 | |
| Governmentgrantsrecognisedinprofitorlossforthecurrentperiod(governmentgrantsrecognisedinnon-operatingincome,otherincomeanddeductedagainstrelatedcostsandexpenses) | 425,229 | 392,099 | |
| Gainsarisingfromchangesinfairvalueoffinancialassetsandfinancialliabilitiesheldfortradingandinvestmentincomearisingfromdisposaloffinancialassetsandfinancialliabilitiesheldfortrading | 6,787 | 15,933 | |
| Reversalofimpairmentprovisionforreceivablesindividuallyassessedforimpairment | 31,217 | 64,090 | |
| Netamountofothernon-operatingincomeandexpenses | (63,322) | (16,465) | |
| Sub-total | 690,843 | 508,435 | |
| Less:Incometaxeffect | (93,843) | (102,319) | |
| Less:Non-recurringprofitorlossattributabletominorityshareholders | (126,027) | (41,575) | |
| Non-recurringprofitorlossattributabletoshareholdersoftheparentcompany | 470,973 | 364,541 |
Including:Non-recurringprofitorlossfrom
continuingoperations
| Including:Non-recurringprofitorlossfromcontinuingoperations | 470,973 | 364,541 |
Basisforpreparationofstatementofnon-recurringprofitorlossPursuanttotheExplanatoryAnnouncementforInformationDisclosureofCompaniesOfferingSecuritiestothePublicNo.1-Non-recurringProfitorLoss(2008)issuedbyChinaSecuritiesRegulatoryCommission,non-recurringprofitorlossreferstoprofitorlossarisingfromtransactionsandeventsthosearenotdirectlyrelatedtothecompany’snormalcourseofbusiness,alsofromtransactionsandeventsthoseevenarerelatedtothecompany’snormalcourseofbusiness,butwillinterferewiththerightjudgementofusersofthefinancialstatementsonthecompany’soperationperformanceandprofitabilityduetotheirspecialnatureandoccasionaloccurrence.
S.F.HOLDINGCO.,LTD.SUPPLEMENTARYINFORMATIONTOTHEFINANCIALSTATEMENTSFORTHESIXMONTHSENDED30JUNE2023
(AllamountsinRMB’000Yuanunlessotherwisestated)[Englishtranslationforreferenceonly]
2Returnonnetassetsandearningspershare
Weightedaverage
| Weightedaverage | Earningspershare | ||||||
| Returnonnetassets(%) | Basicearningspershare | Dilutedearningspershare | |||||
| Forthesixmonthsended30June | Forthesixmonthsended30June | Forthesixmonthsended30June | |||||
| 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | ||
NetprofitattributabletoordinaryshareholdersoftheCompany
| NetprofitattributabletoordinaryshareholdersoftheCompany | 4.72% | 3.00% | 0.86 | 0.51 | 0.86 | 0.51 | ||
| NetprofitattributabletoordinaryshareholdersoftheCompany,netofnon-recurringprofitorloss | 4.19% | 2.57% | 0.76 | 0.44 | 0.76 | 0.44 |
Including:
| Including: | ||||||||
| -Continuingoperations | ||||||||
| NetprofitattributabletoordinaryshareholdersoftheCompany | 4.72% | 3.00% | 0.86 | 0.51 | 0.86 | 0.51 | ||
| NetprofitattributabletoordinaryshareholdersoftheCompany,netofnon-recurringprofitorloss | 4.19% | 2.57% | 0.76 | 0.44 | 0.76 | 0.44 |
ESTOTHEFINANCIALSTATEMENTSFORTHESIXMONTHSENDED30JUNE2023
(AllamountsinRMB’000Yuanunlessotherwisestated)[Englishtranslationforreferenceonly]