小商品城:2020年年度报告(英文版)

Stock Code: 600415 Stock Short Name: 小商品城
Zhejiang China Commodities City Group
Co. Ltd.Important Note
I. The board of directors the supervisory committee and the directors
supervisors and senior management of the Company hereby warrant the
truthfulness accuracy and completeness of the contents of the Annual
Report guarantee that there are no false representations misleading
statements or material omissions contained in this Annual Report and
are jointly and severally responsible for the liabilities of the Company.II. Absent directors
Title of absent Name of absent Reasons for the absence
Name of person entrusted
directors directors of directors
Independent director HONG Jianqiao Due to work reasons MA Shuzhong
Director GU Zhixu Due to work reasons XU Hang
III. Ernst & Young Hua Ming Certified Public Accountants (special general
partnership) has issued a standard unqualified audit opinion for the
Company.IV. ZHAO Wenge Head of the Company WANG Dong Head in charge of
accounting and ZHAO Difang Head of the accounting department
(Accounting Supervisor) declare that they warrant the truthfulness
accuracy and completeness of the financial report in the annual report.V. Is there any profit distribution proposal or capital reserve conversion
proposal for the reporting period that has been deliberated by the Board
of Directors?
Based on the total share capital on the registration date of profit distribution equity in 2020 cash
dividends of RMB 0.55 (tax inclusive) will be distributed for every 10 shares. According to the current
total share capital of the Company cash dividends of RMB 301945279.68 (tax inclusive) will be
distributed. In the event of changes in the total share capital of the Company before the dividend
distribution registration date the percentage of allocation shall remain unchanged whi le the total
profits distribution will be adjusted accordingly.VI. Risk statement with forward-looking representations
√Appicable □Not Applicable
The forward-looking representations involved in this Report such as future plans and
development strategies do not constitute the Company’s substantial commitments to investors.Investors shall watch out for the investment risks.VII. Is the Company’s cash occupied by its controlling shareholder or any of
its affiliates for non-operational purposes?
NO
VIII. Has the Company provided external guarantee in violation of the
prescribed decision-making procedures?
NO
IX. Whether more than half of the directors can not warrant the truthfulness
accuracy and completeness of the annual report disclosed by the
Company
NO
X. Reminder of major risks
The Company has described the risks that may exist in this Report in details. Please refer to the
possible risks in the discussion and analysis of operation in Section 4 of this report .XI. Others
□Applicable √Not applicable
Table of Contents
Section I. Definitions ...........................................................................................................5
Section II. Company Profile and Financial Highlights............................................................6
Section III. Company Operational Highlights .......................................................................12
Section IV. Discussion and Analysis of Operation ................................................................16
Section V. Significant Matters .............................................................................................48
Section VI. Changes in Common Shares and Shareholders ................................................71
Section VII. Preferred Shares ...............................................................................................78
Section VIII. Directors Supervisors Senior Managers and Employees .................................79
Section IX. Corporate Governance ......................................................................................88
Section X. Corporate Bonds ...............................................................................................93
Section XI. Financial Report ................................................................................................98
Section XII. Documents for Inspection ................................................................................243
Section I. Definitions
I. Definitions
For the purpose of this Report unless otherwise stated in the context the following terms shall have
the following meanings:
Definitions
SCO means Yiwu State-owned Capital Operation Co. Ltd.MDG means Yiwu Market Development Group Co. Ltd.CCCP means Yiwu China Commodities City Property
Development Co. Ltd.CCCF means Yiwu China Commodities City Financial Holdings
Co. Ltd.IT Company means Yiwu China Commodities City Information
Technology Co. Ltd.Payment Network Company means Yiwu China Commodities City Payment Network
Technology Co. Ltd.Huishang Micro-finance means Yiwu Huishang Micro-finance Co. Ltd.Haicheng Company means Haicheng Yiwu China Commodities City
Investment Development Co. Ltd.Binjiang Shangbo means Hangzhou Binjiang Shangbo Property
Development Co. Ltd.Yiwu Shanglv means Yiwu Shanglv Investment Development Co. Ltd.Chouzhou Financial Lease means Zhejiang Chouzhou Financial Lease Co. Ltd.Yiwu Shangbo means Yiwu Shangbo Property Co. Ltd.Gongchen Shangbo means Yiwu Gongchen Shangbo Property Co. Ltd.Sunac Xinheng means Sunac Xinheng Investment Group Co. Ltd.Huangyuan Shangbo means Yiwu Huangyuan Shangbo Property Co. Ltd.Yongtongchang means Beijing Dongxing Yongtongchang Investment
Management Co. Ltd.Import and Export Company means Yiwu China Commodities City Import and Export
Co. Ltd.Supply Chain Company means Yiwu China Commodities City Supply Chain
Management Co. Ltd.Meipinshu means Yiwu Meipinshu Supply Chain Management Co.Ltd.The Company the Listed means Zhejiang China Commodities City Group Co. Ltd.Company or the Group
Section II. Company Profile and Financial Highlights
I. Company profile
Company name (Chinese) 浙江中国小商品城集团股份有限公司
Company short name (Chinese) 小商品城
Company name (English) Zhejiang China Commodities City Group Co. Ltd
Company short name (English) YIWU CCC
Legal representative ZHAO Wenge
II. Contact information
Board Secretary Securities Affairs Representative
Name XU Hang RAO Yangjin
Ocean Business Building No.105 Ocean Business Building No.105 Futian
Address
Futian Road Yiwu Road Yiwu
Telephone 0579-85182812 0579-85182812
Fax 0579-85197755 0579-85197755
Email Hxu@cccgroup.com.cn Hxu@cccgroup.com.cn
III. Basic Information
Ocean Business Building No.105 Futian Road Yiwu
Registered address
Zhejiang Province
Postal code at the registered address 322000
Ocean Business Building No.105 Futian Road Yiwu
Office address
Zhejiang Province
Postal code at the office address 322000
Corporate website www.cccgroup.com.cn
Email 600415@cccgroup.com.cn
IV. Information disclosure channels and places for inspection
Designated media channels for information China Securities Journal Shanghai Securities News
disclosure and Securities Times
Designated websites for the publication of the
www.sse.com.cn
annualreport as approved by CSRC
Place for access to the Company’s annual
Securities Department of the Company
reports
V. Stock profile
Stock profile
Type of stock Place of listing Stock short name Stock code Stock short name
before change
A shares Shanghai Stock 小商品城 600415 None
Exchange
VI. Other relevant information
CPAs engaged by Name Ernst & Young Hua Ming Certified Public Accountants
the Company (special general partnership)
(domestic) Office address 16th Floor Ernst & Young Building Oriental Plaza 1
Chang'an Street Dongcheng District Beijing China
Name of the YIN Guowei YANG Zhuye
Signing Certified
Public
Accountants
VII. Major accounting data and financial indicators in the past three years
(i) Major accounting data
Unit: RMB
Increase/decrease in
the current period vs.Major accounting
Year 2020 Year 2019 the prior Year 2018
data
corresponding period
(%)
Operating income 3725686100.39 4042767521.18 -7.84 3593748474.73
Net profits
attributable to
926626706.42 1255276023.70 -26.18 1082631394.54
shareholders of the
Listed Company
Net profits
attributable to
shareholders of the
Listed Company 517246267.88 930676526.71 -44.42 357013210.41
after deducting
non-recurring profit
and loss
Net cash flow from
828788261.95 -1538907257.55 Not applicable 1307247226.51
operating activities
Increase/decrease at
the end of the current
period vs. the end of
End of year 2020 End of Year 2019 End of year 2018
the prior
corresponding period
(%)
Net assets
attributable to
13558228377.08 13020619449.36 4.13 11762025060.79
shareholders of the
Listed Company
Total assets 28750127146.86 31323233994.44 -8.21 26877858287.71
(ii) Major financial indictors
Increase/decrease in
the current period as
Year Year Year
Major financial indictors compared to the prior
2020 2019 2018
corresponding period
(%)
Basic EPS (RMB) 0.17 0.23 -26.09 0.20
Diluted EPS (RMB) 0.17 0.23 -26.09 0.20
Basic EPS after deducting non-recurring profit and
0.10 0.17 -41.18 0.07
loss (RMB/share)
Weighted average ROE (%) 6.88 10.04 Down 3.16 ppt 9.40
Weighted average ROE after deducting non-recurring
3.84 7.44 Down 3.60 ppt 3.10
profit and loss (%)
Explanation of main accounting data and financial indicators of the Company in the previous three
years at the end of the report period
√Applicable □Not applicable
1. Net profit attributable to shareholders of the Listed Company after deducting non -recurring
profit and loss in 2020 decreased by RMB 413 million compared with that in 2019 mainly due to the
decrease of RMB 328 million year over year (YoY) in the net profit attributable to the Company and
the increase of RMB 85 million YoY in non-recurring profit and loss.Net profit attributable to shareholders of the Listed Company after deducting non -recurring profit
and loss in 2019 increased by RMB 574 million compared with that in 2018. The main reasons were
that the net profit attributable to the Company in 2019 increased by RMB 173 million YoY and the
non-recurring profit and loss decreased by RMB 328 million YoY.2. Net cash flows from operating activities in 2020 increased by RMB 2.368 billion YoY. Cash
received from sales of goods and providing services in 2020 increased by RMB 375 million YoY. The
cash paid for purchasing goods and receiving services in 2020 decreased by RMB 1.931 billion YoY
due to the land transfer fee for the Station Block paid in 2019.Net cash flows from operating activities in 2019 decreased by RMB 2.846 billion compared with
that in 2018. Cash received from sales of goods and providing services decreased by RMB 880
million YoY. The main reasons were the decrease of RMB 1.38 billion in market receipts the
increase of RMB 500 million in real estate sales returns and the increase of RM 2.127 billion in cash
paid for purchasing goods and receiving services due to the payment of land transfer fees for the
Station Blocks.VIII. Differences in accounting data between foreign and Chinese accounting standards
(i) Differences between the net profit and net assets attributable to shareholders of the
Company disclosed in accordance with international accounting standards and
China accounting standards in the financial report
□Applicable √Not applicable
(ii) Differences between the net profit and net assets attributable to shareholders of the
Company disclosed in accordance with overseas accounting standards and China
accounting standards in the financial report
□Applicable √Not applicable
(iii) Explanation of differences between domestic and overseas accounting standards
□Applicable √Not applicable
IX. Key financial indicators by quarter
Unit: RMB
Q1 Q2 Q3 Q4
Jan-Mar Apr-June Jul-Sep Oct-Dec
Operating income
755360528.90 1366088265.41 1033708048.38 570529257.70
Net profits
attributable to 267701151.53 451894157.13 390042198.99 -183010801.23
shareholders of the
Listed Company
Net profit attributable
to shareholders of
the Listed Company
207007351.47 395186450.49 12387730.69 -97335264.77
after deducting
non-recurring profit
and loss
Net cash flow from
operating activities -589922271.57 -113144428.59 -2636067778.36 4167922740.47
Explanation of difference between quarterly data and disclosed data in regular reports
□Applicable √Not applicable
X. Non-recurring items and amounts thereof
√Applicable □Not applicable
Unit: RMB
Remark (if
Non-recurring items Year 2020 Year 2019 Year 2018
applicable)
Profit and loss from the It is mainly due to
disposal of non-current assets the profit and loss
of equity disposal
of Yiwu China
Commodities City
Property
Development Co.383206932.21 Ltd. (CCCP) 108675734.58 680881371.43
Pujiang Green
Valley and Yiwu
Gongchen
Shangbo Property
Co. Ltd.(Gongchen
Shangbo)
Government grants that are Please see details
recognized in the current profit of government
and loss excluding the grants accounted
government grants that are for profit and loss
closely related to the normal for the current
18655980.14
operation of the Company and period
9031831.74 13403840.00
are provided in a fixed amount
or quantity continuously
according to the national
polices and certain standards
Cash occupation fees charged Fees paid for using
from non-financial enterprises fund collected from
that are recognized in the joint ventures 124744826.38 241150826.18 3834965.67
current profit and loss including Gongchen
Shangbo and
Tonghui Shangbo
Gain arising from investment Mainly due to the
costs for acquisition of profit of RMB
31308053.80
subsidiaries associates and 30.457 million
joint ventures by the which is the result of
corporation being less than its re-measurement of
share of fair value of the remaining
identifiable net assets of the equity at fair value
investees on acquisition after the loss of
control right of
CCCP and Pujiang
Green Valley
Profits and losses arising from
contingencies that are
unrelated to the normal -10706996.21
business operation of the
Company
Profit and loss from changes in Mainly due to profit
fair value of held-for-trading and loss arising
financial assets derivative from the change in
financial assets financial fair value of
liabilities held for trading and financial assets
derivative financial liabilities held for trading
and investment income from
the disposal of held-for-trading
-32578800.48 68526573.42 86543470.60
financial assets derivative
financial assets financial
liabilities held for trading
derivative financial liabilities
and other debt instruments
except for effective hedging
during the ordinary course of
business
Reversal of provision for
impairment of accounts
receivable and contract assets 6669844.75
that have been separately
tested for impairment
Profits and losses arising from Due to the income
external entrusted loans obtained from the 11786857.07
issuance of
entrusted loans
Net income from other
-4107200.75 1049413.04 53540958.05
non-operating activities
Investment income from wealth
management products and 688953.43
structured deposits
Effect of minority interest -1408133.75 -6697.76 635.18
Effect of income tax -122917029.51 -103828184.21 -108549905.34
Total 409380438.54 324599496.99 725618184.13
XI. Items measured at fair value
√Applicable □Not applicable
Unit: RMB10000
Opening Closing Change for the Amount of impact on
Project
balance balance current period current profits
Held-for-trading 3807.77 5171.27 1363.50 277.22
financial assets
Other equity 64218.80 66225.63 2006.83 1003.42
instruments
investment
Other non-current 151944.94 152392.52 447.58 658.08
financial assets
Total 219971.51 223789.42 3817.91 1938.72
XII. Others
□Applicable √Not applicable
Section III. Company Operational Highlights
I. Main business business model and industry situation during the reporting period
According to the definitions in the Guidelines for Industry Classification of Listed Companies
(revised in 2012) released by the CSRC the Company is engaged in “Business Service” (L72) in
“Lease and Business Service” (L).(i) Main businesses
The Company is engaged in market development and operation and supporting services
providing online trading platform and services online trading market development and operation
etc. belonging to the comprehensive industry category.(ii) Operating model
1. Market operation
Market operation business is mainly operated and managed by the Company's subordinate
market branches. The main business income of the market operation segment is mainly the income
from the use of commercial space. The Company adopts a commercial space rental model that is
the ownership of the commercial space belongs to the Company and the merchants only have the
right to use the commercial space within the contract period. The Company and the merchant sign a
contract to clearly stipulate the use period usage fee and business purpose of the commercial space.The merchant shall not change the agreed business purpose and shall not sublet without the
Company’s consent. Generally the payment methods of usage fee are one -time payment or
installment payment according to the contract terms. Currently the markets that the Company is
responsible for operating include Zone 1 to Zone 5 of the International Trade City Importing Market
Zone 1 East Expansion Market Huangyuan Market and International Production Goods Market.2. Online trading platform
During the reporting period the Company officially launched the plat form of Yiwu China
Commodities City the official website of Yiwu market (www.chinagoods.com hereinafter referred to
as "chinagoods platform"). The chinagoods platform relies on the resources of 75000 physical
shops in the market that the Company operates and serves two million small medium and micro
enterprises in the upstream of the industry chain. It is driven by the integratio n of trade data
connecting the supply and demand parties in areas of manufacturing demonstrating and
transactions warehousing and logistics financial credit market management etc. so as to achieve
effective and precise allocation of market resources and build a true open and integrated digital
trade comprehensive service platform.3. Hotel services
The hotel service business is mainly operated and managed by the Company’s subordinate hotel
branches. The hotels operated by the Company mainly provide comprehensive services such as
accommodation catering leisure and entertainment and conferences etc. The main revenue
sources of the hotels include room sales catering sales commodity sales and venue leasing etc.Sales of guest rooms and catering mainly rely on channels such as clients agreement conferences
wedding banquets and recommendation by operators of online booking platforms.(iii) The situation of industry
1. Market operation
According to the "Statistical Yearbook of China Commodity Trading Market" the market
operated by the Company belongs to the comprehensive market of industrial consumer goods in the
segment market category. For many years the total annual turnover of the Company has been at
the forefront of the national comprehensive market. In terms of transaction amount year-end
business area and number of commercial spaces the Company's share in the national
comprehensive market has remained stable. In 2020 the total turnover of YIWU CCC was RMB
162.626. 1O bnillilnioen t.r ading platform
As of the end of the reporting period there were around 50000 merchants settled at
chinagoods platform more than 800000 registered purchasers (52% of the registered purchasers
had been to the Yiwu physical market) the platform product SKUs reached 2.6 million the number
of APP downloads was 2 million and the turnover reached RMB 2.894 billion since the official
launch. After the official launch the average daily visits exceeded 3.25 million with a peak of over 5
million. As an important measure of the Company's digital transformation the chinagoods platform
is an important and effective means for the Company's transformation upgrading and development
in the tide of trade digitization and information technology progress. It is also a sign of the
Company's online-offline market integration and progress.3. Hotel services
In terms of room numbers as of the end of 2020 the total number of hotel rooms operated by
the Company was 1559. The Company's hotel business accounts for a small share in the industry
and makes a small contribution to the Company's profits.II. Material changes in major assets during the reporting period
√Applicable □Not applicable
The Group transferred 51% of the equity of CCCP and Pujiang Green Valley Real Estate Co.Ltd. this year and the remaining 49% of the equity was measured at the fair value of RMB
1867205576.66 on the date of disposal which affected the book value of long-term equity
investment of RMB 1851245420.56. For more details please refer to Note VII Consolidated
Financial Statement Item Note 17 Long-term Equity Investment.Among them: foreign assets are 184753621.71 (unit: Yuan currency: RMB) accounting for
0.64% of the total assets.III. Analysis of core competencies during the reporting period
√Applicable □Not applicable
(i) First-mover advantages
At the start of China’s reform and opening -up Yiwu took the lead in establishing the commodities
market. During the recent forty years the market has been upgraded five times and expanded ten
times and has been among the top comprehensive national markets with the highest turnover
pointing to its remarkable first-mover advantages. As the largest commodities distribution center in
the world the Yiwu commodities market provides more than 2million produc ts which fall in 26
categories and supports one-stop purchase. The market boasts enormous resources and huge
business flow goods flow cash flow and information flow.(ii) Brand advantages
“Yiwu China Commodities City” is the first market identified by the SAIC as a well-known
trademark among the national commodities trading markets. The Company has taken multiple
measures to give play to the brand of “Yiwu China Commodities City” and is committed to improving
its influence and leading role in the industry. Its brand advantages and influence have kept
enhancing.(iii) Auxiliary services advantages
The People’s Government of Yiwu has been providing policy support for the development of the
market for years and the auxiliary industries are developing rapidly in Yiwu.1. Convenient logistics system
Yiwu has in place perfect commerce and trade auxiliary facilities and advantageous logistics
service. The logistics network has full coverage in Yiwu. A large number of large-sized international
and domestic express delivery and logistics companies have regional distribution centers in Yiwu
and a world-oriented goods transport and distribution network has been established. Yiwu has been
listed among the “commerce and trade -oriented national logistics hubs” by the National
Development and Reform Commission and the Ministry of Transport. According to the Operation of
Postal Industry in 2020 announced by the State Post Office the express business volume of Jinhua
(Yiwu) in 2020 surpassed that of Guangzhou and ranked the first in China.2. Industry support
During the recent years thanks to the Yiwu China Commodities City the Yiwu-centered
manufacturing industry cluster has been developing fast an commodities industrial belt that is
centered in Yiwu and covers Jinhua Lishui Quzhou Hangzhou Jiaxing Taihu Shaoxing Ningbo
Wenzhou and Taizhou with an area of nearly 10000 sq.m has been established and a benign
mechanism under which the Yiwu wholesales market and the peripheral industry cluster develop
together has been formed.3. Support from exhibition service
The major international trade exhibitions held by the Company’s exhibition business division
such as China Yiwu International Commodities Fair China Yiwu International Forest Products Fair
China Yiwu International Imported Commodities Fair and China Yiwu Hardware and Electrical Expo
support and cultivate vertical exhibition in multiple industries such as stationery and textiles have
developed multiple professional and international exhibition brands and are important natio nal
platforms for the China Commodities City to lead industry development develop the city economy
and maintain the clusters of traders and commodities.(iv) Diversified businesses
The Company has strengthened its presence in the related industries made efforts on financial
investment kept developing the exhibition business created a new e -commerce model developed
the hotel business and also run international trade modern logistics advertising information
shopping and tourism businesses. It has created a group structure and profit-making model of
shared and interactive development of market resources.(v) Management advantages
In terms of personnel management and technology excellent operation and management ability
is one of the core competences of the Company as a professional market operating company. The
Company has developed a series of perfect management systems for market operation and
management accumulated rich experience in operation and management and has cultivated a
professional management team with reasonable knowledge and expertise structures and strategic
development insights.Section IV. Discussion and Analysis of Operation
I. Discussion and analysis of operation
During the reporting period the Company achieved operating income of RMB 3.726 billion with
a decrease of RMB 317 million or 7.84% YoY; the total profit was RMB 1.422 billion with a decrease
of RMB 211 million or 12.93% YoY; the net profit attributable to the shareholders of the parent
company was RMB 927 million with a decrease of RMB 329 million or 26.18% YoY.(i) Market operation
In the past year the Company faced many challenges such as COVID-19 epidemic prevention
and control complex and changeable domestic and international economic and trade situations etc.The Company has adopted a series of measures to stabilize the core businesses while vigorously
promote market innovation and development and make every effort to build an upgraded version of
the physical market with "the highest degree of digitalization the best business environment and the
strongest trade service capabilities" further enhancing the Company's core advantages in the
markets. In 2020 the rental rate of commercial space in YIWU CCC remained above 96% and the
market continued to operate steadily and positively.1. The Company promotes precise and intelligent control measures featured as "standardization
market access mechanism prohibition inspection system and informatization" practically adopts
"street battle" style of "enhancing CPC + Unit" to guard the "safe door" of global procurement. In the
context of COVID-19 epidemic prevention and control YIWU CCC was partially re -opened on
February 18 and fully resumed on March 1 becoming one of the first batch of markets in the country
to resume trading.2. The Company linked 121 downstream markets held 21 trade matchmaking events regained
more than 200000 buyers and expanded the domestic trade market. More than 10000 kinds of
goods were displayed in Czech Republic Dubai Rwanda and other overse as stations completed
overseas warehouses cooperation projects of more than 250000 square meters and foreign trade
orders were stabilized.3. The Company innovatively constructed digital Integrated Free Trade Zone and early
planning work of the new import market and Zone 6 of the International Trade City started in all
(ii) Promoting trade digitalization
aspects.In 2020 COVID-19 epidemic spread worldwide which had a profound impact on the global
industrial chain and supply chain stability and the direct flow of people and goods and limited the
growth of international trade. Digitalization of trade has become a new driving force for the
development of global trade and the market urgently needs to achieve in -depth integration of onlineand offline. The Company promotes the market and merchants to “adopt cloud big data andintelligent technology” to build a digital platform.During the reporting period the Company officially launched the plat form of Yiwu China
Commodities City the official website of Yiwu market (domain name: www.chinagoods.com
hereinafter referred to as "chinafoods platform"). The chinagoods platform is an important carrier of
the company's digital reform it relies on the resources of 75000 physical shops in the market and
serves two million small medium and micro enterprises in the upstream of the industry chain. It is
driven by the integration of trade data connecting the supply and demand parties in areas of
manufacturing demonstrating and transactions warehousing and logistics financial credit market
management etc. so as to achieve effective and precise allocation of market resources and build a
true open and integrated digital trade comprehensive service platform.As of the end of the reporting period there were around 50000 merchants settled at
chinagoods platform more than 800000 registered purchasers the platform product SKUs reached
2.6 million the number of APP downloads was 2 million and the accumulative turnover reached
RMB 2.894 billion since the official launch on October 21 2020. After the official launch the average
daily visits exceeded 3.25 million with a peak of over 5 million. As an important measure of the
Company 's digital transformation the chinagoods plat form is an important and effective means for
the Company 's transformation upgrading and development in the tide of trade digitization and
information technology progress. It is also a sign of the Company's online-offline market integration
and progress.(iii) Building a global supply chain service system
Yiwu market is an important platform connecting the domestic and international domestic and
foreign trade supply chains and is at the key node of the global small commodity supply chain. It
plays an important role in smoothing the internal circulation improving the external circulation and
serving the new pattern of "dual circulation".In recent years the contradiction between supply and demand of global warehousing logistics
has become increasingly prominent. As the basis of dual circulation the strategic value of supporting
facilities such as warehousing base and logistics center has become more and more prominent. At
the same time the global trade ecological chain is imperfect all links are fragmented the trends of
smaller orders fragmentation and digitization of global market procurement is obvious. The
adjustment of the global industrial pattern is accelerating and the formation of multi -centralization is
also accelerating. All these put forward new requirements for the improvement Yiwu market supply
chain and also expand new space for the Company's market innovation and development.During the reporting period the Company accelerated the construction of a global supply chain
system. Accelerated the construction of digital trade hubs accelerated the deployment of overseas
warehouses overseas logistics distribution centers overseas sub-markets and other overseas
projects and extended the market industry chain service chain and value chain. The company has
deployed 53 overseas warehouses completed overseas warehouses cooperation projects of more
than 250000 square meters and deployed more than 450000 square meters of local and overseas
warehouses accumutively. "Yiwu Goods" "ICMALL" have more than 300 offline outlets. "CCCL"
logistics park the mall warehouse park commercial and trade station project and Yiwu mall supply
chain base Shangbo cloud warehouse will soon be completed. A large domestic and foreign
warehousing system has takenshape. CCCL has launched 105 international logistics dedicated lines
covering more than 600 cities in 66 countries including Russia the United States Thailand Malaysia
etc. and a global supply chain service system serving the "dual circulation" has taken shape. The
construction of a global supply chain service system helps to move Yiwu market commodities and
logistics to the "door computer and mobile phone" of foreign businessmen helping the merchants to
quickly grab orders and expand the market and helping foreign purchasers and suppliers to be
connected with the Chinese market at a lower threshold and more conveniently.By unifying storage information plat forms and authorizing access to chinagoods platform the
Company helps to solve the key issues that the businesses face and reduce foreign t rade risks.Currently most of Yiwu's export trade is credit sales and the merchants face the risk of
uncontrollable rights of goods. In the context of COVID-19 epidemic in order to reduce the risk of
foreign trade further reduce the credit risk and enhance the export trade confidence of the
merchants chinagoods and CCCL launched the innovative product "Money Treasure" to guarantee
the payment for goods in the market through the digital contract -performing capabilities and to better
control the goods through overseas warehouses so as to solve the problem of market purchase
trade balance guarantee for merchants and reduce the risk of credit sales.(iv) Coordinated development of related businesses
During the reporting period the exhibition hotel and advertising business sectors of the
Company developed in a coordinated way and the business situation was stable. The online and
offline integration of the exhibition sector has been promoted the online exhibition plat form was
innovatively developed the online Hardware Fair was successfully held and YIEXPO Forest Expo
and Cultural Tourism Fair online and offline activities were integrated and six national YIEXPO
roadshows was completed. The business of the hotel sector has gradually recovered and the
impact of COVID-19 epidemic has been gradually eliminated. The advertising business was
developed steadily and operating income increased steadily.II. Operating status during the reporting period
In 2020 in the face of sudden COVID-19 epidemic the Company faced the difficulties and took
active measures. While take measures to prevent and control epidemic in an orderly manner the
Company focused on the business plan and objectives of 2020 continued reforming and innovating
and actively responded to the challenges. In 2020 the Company achieved operating income of RMB
3.726 billion with a decrease of RMB 317 million or 7.84% compared with the prior year; the total
profit was RMB 1.422 billion with a decrease of RMB 211 million or 12.93% over the prior year.(i) Analysis of main business
1. Analysis of changes in related accounting subjects of income statement and cash
flow statement
Unit: RMB
Item Year 2020 Year 2019 YoY change (%)
Operating income 3725686100.39 4042767521.18 -7.84
Cost of sales 1811136443.99 1696954129.50 6.73
Selling expenses 241889186.44 157579827.86 53.5
General and administrative 377516845.45 281213431.82 34.25
expenses
R&D expenses 18507626.99 18268182.12 1.31
Financial expenses 182089699.33 227559106.75 -19.98
Net cash flow from operating 828788261.95 -1538907257.55 Not applicable
activities
Net cash flow from investing 636113348.17 102151452.90 522.72
activities
Net cash flow from financing
-2855836638.69 2231497012.84 -227.98
activities
2. Revenue and cost analysis
√Applicable □Not applicable
None.
(1). Main businesses by industry product and region
Unit: RMB10000
Main business by industry
Gross Change of
Change of Change of
Operating Cost of profit operating
By industry operating cost gross profit
income sales margin revenue
YoY (%) margin YoY
(%) YoY (%)
Market 212713.55 89835.59 57.77 0.31 -1.74 Up 0.89 ppt
operation
Sales of 38378.68 38201.55 0.46 459.44 443.24 Up 2.97 ppt
goods
Real 5903.79 2537.33 57.02 -90.87 -91.22 Up 1.67 ppt
estate
sales
Hotel 14949.73 14388.49 3.75 -29.27 -25.95 Down 4.32 ppt
service
Exhibition 9634.12 10631.57 -10.35 -24.08 -8.15 Down 19.13
and ppt
advertising
Other 24356.66 14001.31 42.52 101.76 210.91 Down 20.18
services ppt
Subtotal 305936.53 169595.84 44.57 -7.15 4.14 Down 6.01 ppt
Explanation of main businesses by industry product and region
1. The revenue and cost of product sales increased by 459.44% and 443.24% respectively
year-on-year mainly due to the large year-on-year increase in the commodity sales business of
import and export companies and supply chain companies in the current period
2. The revenue and cost of other services increased by 101.76% and 210.91% year-on-year
respectively mainly due to the revenue and cost of information technology services in big data and
other information sectors increased significantly on a year-on-year basis.
(2). Table of production and sales analysis
□Applicable √Not applicable
(3). Cost analysis table
Unit: RMB10000
Costs by industry
Proportion Proportion in
Amount in
Amount in in the total the total cost Proportion
By Cost the same
the current cost in the in the prior change Explanation
industry components period of
period current corresponding YoY (%)
prior year
period (%) period (%)
Market Depreciation 46198.46 27.24 47050.52 28.89 -1.81
operation and
amortization
Market Wages and 20669.29 12.19 24275.60 14.91 -14.86
operation benefits
Market Other costs 22967.84 13.54 20100.35 12.34 14.27
operation
Sales of Cost of 38201.55 22.53 7032.23 4.32 443.24 Due to the
goods product sales increase of
product
sales
business
Real Cost of real 2537.3 1.5 28882.87 17.74 -91.22
estate estate sales
sales
Hotel Depreciation 2557.02 1.51 6151.87 3.78 -58.44 Depreciation
service and of some
amortization equipment
is due
Hotel Cost of food 5969.28 3.52 5206.65 3.2 14.65
service and beverage
raw materials
Hotel Wages and 4077.68 2.4 5689.35 3.49 -28.33
service benefits
Hotel Material and 716.93 0.42 864.78 0.53 -17.1
service fuel
consumption
Hotel Other costs 1067.58 0.63 1517.72 0.93 -29.66
service
Exhibition Depreciation 3771.71 2.22 3458.66 2.12 9.05
advertising and
service amortization
Exhibition Exhibition and 5172.71 3.05 6390.66 3.92 -19.06
advertising advertising
service cost
Exhibition Other costs 1687.16 0.99 1725.77 1.06 -2.24
advertising
service
Other Property 2237.42 1.32 3074.06 1.89 -27.22
services management
cost
Other Network 7975.07 4.7 1382.92 0.85 476.68 It is mainly
services transformation the
and service operating
expenses of
new
platforms
Other Other costs 3788.81 2.23 46.27 0.03 8088.48 Increase in
services commercial
building
operating
costs
Total 169595.84 99.99 162850.28 100.00 4.14
Explanation on cost analysis and other information
None
(4). Main sales customers and suppliers
□Applicable √Not applicable
3. Costs
√Applicable □Not applicable
Unit: RMB10000
Proportio
Change
Item Year 2020 Year 2019 n Explanation on changes
YoY
change
YoY (%) Mainly due to the increase of
domestic circulation
Selling investment promotion
24188.92 15757.98 8430.94 53.50
expenses market promotion and
advertising expenses during
the epidemic period
Mainly due to the increase in
labor costs consulting
General
expenses for intermediary
and
37751.68 28121.34 9630.34 34.25 agencies compared with the
administrati
prior year and new epidemic
ve
prevention and control costs
expenses
etc.R&D
1850.76 1826.82 23.94 1.31
expenses
Interest bearing liabilities
Financial
18208.97 22755.91 -19.98 decreased and interest
expenses
-4546.94 expenses decreased
Income
49975.50 38391.52 30.17
taxes 11583.98
Unit: RMB10000
Proportion
Item Year 2020 Year 2019 Change YoY change
YoY (%)
Staff expenses and work
24502.91 21461.39 3041.52 14.17
clothes
Advertising fees 9441.10 8114.32 1326.78 16.35
Security and insurance
2711.54 2766.22 -54.68 -1.98
costs
R&D expenses 1850.76 1826.82 23.94 1.31
Depreciation and
3868.23 1592.83 2275.40 142.85
amortization
Promotion and
10567.68 3798.86 6768.82 178.18
investment promotion
Other expenses 4320.47 1292.93 3027.54 234.16
Intermediary expenses 3852.94 2558.46 1294.48 50.60
Office expenses 2003.44 1760.02 243.42 13.83
Water electricity and fuel
365.14 372.05 -6.91 -1.86
consumption
Rent and property
307.15 162.24 144.91 89.32
management
Subtotal of management
63791.36 45706.14 18085.22 39.57
R&D and sales expenses
4. R&D Investment
(1) Table of R&D investment status
√Applicable □Not applicable
Unit: RMB10000
Expended R&D investment in this period 1850.76
Capitalized R&D investment in this period 2222.31
Total R&D investment 4073.07
Total R&D investment as a percentage of 1.09
operating income (%)
Number of R&D personnel 95
Number of R&D personnel as a percentage 2.11
of the Company’s total personnel number (%)
Proportion of capitalization of R&D 54.56
investment (%)
(2) Explanations
□Applicabe √Not applicable
5. Cash flow
√Applicable □Not applicable
Unit: RMB10000
Item 2020 2019 YoY change
Net cash flow (used)/generated from
82878.83 -153890.73 236769.56
operating activities
Net cash flow (used)/generated from
63611.33 10215.15 53396.18
investment activities
Net cash flow (used)/generated from
-285583.66 223149.70 -508733.36
financing activities
Net (decrease)/increase in cash and cash
-139406.97 79455.22 -218862.19
equivalents
Analysis of main reasons for changes:
1. The net cash flow from operating activities in 2020 increased by RMB 2.368 billion compared
with that in 2019. The cash received from selling goods and providing services in 2020 increased by
RMB 375 million compared with that in 2019 and the cash paid for purchasing goods and receiving
services in 2020 decreased by RMB 1.881 billion compared with that in 2019.2. The net cash flow from investment activities in 2020 increased by RMB 534 million compared
with that in 2019. The net cash flow of wealth management in 2020 increased by RMB 2.085 billion
compared with that in 2019 and the net cash inflow of financial aid in 2020 decreased by RMB 1.488
billion compared with that in 2019.3. The net cash flow from financing activities in 2020 decreased by RMB 5.087 billion compared
with that in 2019. In 2020 the net inflow from financing activities decreased by RMB 5.405 billion
compared with that in 2019 the cash paid for dividend profit distribution or int erest payment
increased by RMB 235 million compared with that in 2019 and the cash received from investment
increased by RMB 148 million compared with that in 2019.(ii) Material changes to profits caused by non-main businesses
□Applicable √Not applicable
(iii) Analysis of assets and liabilities
√Applicable □Not applicable
1. Assets and liabilities
Unit: RMB10000
Proportio
Proportion of
n of the
the closing Proportio
closing Closing
Closing balance to n change
balance balance in
blance in total assets of the Reasons for
Project to total the prior
the current in the prior closing change
assets in correspondi
period correspondi balance
the ng period
ng period YoY (%)
current
(%)
period
Total assets 2875012.7 100.00 3132323.4 100.00 -8.21
1 1
Monetary 561264.29 19.52 648640.87 20.71 -13.47
capital
Held-for-tradi 5171.27 0.18 3807.77 0.12 35.81 Mainly due to
ng financial the increase
assets in equity
instruments
investment
Accounts 15357.35 0.53 1603.11 0.05 857.97 Mainly due to
Receivable the growth of
the product
sales and the
increase in
accounts
receivables
Prepayments 10518.75 0.37 4467.82 0.14 135.43 Mainly due to
the growth of
the product
sales and the
increase in
advance
payment
Other 270847.81 9.42 139722.84 4.46 93.85 Mainly due to
receivables the increase
in financial
aid
receivables
Inventories 132946.77 4.62 429606.14 13.72 -69.05 51% equity
disposal of
CCCP and
Pujiang
Green Valley
and stock
transfer out in
the current
period
Other current 17972.47 0.63 309995.59 9.90 -94.2 It is mainly
assets due to the
transfer out of
prepaid land
transfer fees
at the end of
prior year
Long-term 12675.66 0.44 6125.00 0.20 106.95 Newly added
receivables financial aid
receivables
from Dubai
Project
Company this
year
Long-term 383289.75 13.33 177142.01 5.66 116.37 The
equity accounting
investment method of
remaining
49% of CCCP
and Pujiang
Green Valley
were
converted
from the cost
method to the
equity
method in the
current period
Other equity 66225.63 2.30 64218.80 2.05 3.12
instruments
investment
Other 152392.53 5.30 151944.94 4.85 0.29
non-current
financial
assets
Investment 196042.63 6.82 186321.84 5.95 5.22
real estate
Property 523429.38 18.21 478381.91 15.27 9.42 Yixi
plant and supporting
equipment project
completed
and
transferred in
Construction 98289.19 3.42 86575.46 2.76 13.53 Yixi
in progress supporting
project
completed
and
transferred
out newly
added
integrated
free trade
zone and
other projects
Intangible 390078.10 13.57 345613.72 11.03 12.87 Newly added
assets land for
International
Land and
Port Logistics
Park
Development 2222.31 0.08 - - -
expenditures
Long-term 11072.87 0.39 13950.24 0.45 -20.63
deferred
expenses
Deferred tax 9966.43 0.35 18040.48 0.58 -44.76 Transfer out
assets after
re-calculation
Other 15249.52 0.53 66164.87 2.11 -76.95 It is mainly
non-current due to the
assets transfer to
investment
real estate
after the
delivery of
Zhongfu
Building
Total liabilities 1517541.7 52.78 1823893.4 58.23 -16.80
8 8
Short-term 125717.94 4.37 417890.37 13.34 -69.92 Repayment of
loans due
borrowings
Accounts 63646.38 2.21 52524.15 1.68 21.18
payable
Advances 11275.29 0.39 450845.51 14.39 -97.5 Under the
from new income
customers standard the
accounting
subjects were
reclassified
and adjusted
out and the
pre-collected
house sale
payment
decreased
after the
equity
transfer of the
real estate
sector
Contract 244221.18 8.49 0.00 Under the
liabilities new income
standard the
accounting
subjects were
reclassified
and adjusted
in
Employee 16149.90 0.56 19717.44 0.63 -18.09
compensation
s payable
Taxes 49540.05 1.72 28018.43 0.89 76.81 Increase in
payable accrued taxes
and fees
Other 164634.56 5.73 90948.31 2.90 81.02 Mainly due to
payables the increase
of investment
allocation to
be confirmed
Non-current 131502.66 4.57 27033.24 0.86 386.45 It refers to the
liabilities due transfer in of
within one medium-term
year notes due
within one
year
Other current 302360.80 10.52 202301.21 6.46 49.46 It is the
liabilities increase of
ultra-short-ter
m financing
issued in this
period
Long- term 28200.00 0.98 53069.43 1.69 -46.86 Repayment of
loans due
borrowings
Bonds 355216.17 12.36 456429.14 14.57 -22.17 It refers to the
payable transfer out of
medium-term
notes due
within one
year
Estimated 11062.03 0.38 11062.03 0.35 -
liabilities
Deferred 2654.53 0.09 2796.68 0.09 -5.08
incomes
Deferred 11360.29 0.40 11257.43 0.36 0.91
income tax
liabilities
Other 0.00 0.00 0.11 0.00 -100
non-current
liabilities
Other descriptions
None
2. Encumbrances on major assets as of the end of the reporting period
√Applicable □Not applicable
Unit: RMB Yuan
Item Yaer 2020 Year 2019
Monetary capital 60.58 56196102.62
Long-term equity investment 102918559.00 102918559.00
Other non-current financial assets 617511352.00 617511352.00
Total 720429971.58 776626013.62
1. As of December 31 2020 the bank deposit with a book value of RMB 60.58 (on December
31 2019: RMB 56196102.62) were used as deposits for obtaining commercial housing mortgage
loan and the ownership or right of use was limited.As of December 31 2020 long-term equity investments with a book value of RMB
102918559.00 (on December 31 2019: RMB 102918559.00) and other non-current financial
assets of RMB 617511352.00 (on December 31 2019: RMB 617511352.00) were frozen by
Shanghai Public Security Bureau.3. Other descriptions
□Applicable √Not applicable
(iv) Analysis of business information of industry
√Applicable □Not applicable
Please refer to part 3 in this section Discussion and Analysis of the Company 's Future
Development (1) Industry Pattern and Trends.(v) Analysis of investments
(i) Overview of external equity investment
√Applicable □Not applicable
At the end of December 2020 the outbound investment amount was RMB 6070791800
(including financial assets held for trading of RMB 51712700 investment in other equity
instruments of RMB 662256300 other non-current financial assets of RMB 1523925300 and
long-term equity investment of RMB 3832897500) which was RMB 2099656600 higher than
RMB 3971135200 (including financial assets held for t rading of RMB 38077700 investment in
other equity instruments of RMB 642188000 other non -current financial assets of RMB
1519449400 and long-term equity investment of RMB 1771420100) at the end of prior year up
52.87% and the main changes are as follows:
Long-term equity investment during the reporting period increased by RMB 2061477400
year-on-year mainly due to:
1. The newly added long-term equity investment during the reporting period was RMB
2043566600 of which: RMB 1493547700 for CCCP RMB 373657900 for Pujiang Green Valley
Real Estate Co. Ltd. RMB 28711000 for Jebel Ali Free Zone Trader Market Development and
Operation FZCO RMB 20 million for Yiwu Guoshen Shangbo Real Estate Co. Ltd. RMB 7.65
million for Yiwu Digital Port Technology Co. Ltd. increased capital of RMB 90 million for Yiwu
Hongyi Equity Investment Fund Partnership (Limited Partnership) increased capital of RMB 30
million for Yiwu Huishang Bauhinia Phase II Equity Investment Partnership (Limited Partnership).2. During the reporting period long-term equity investment decreased by RMB 17057800 of
which: Yiwu Huishang Micro-finance Co. Ltd. reduced capital by RMB 13.80 million Zhongyi
International Exhibition (Yiwu) Co. Ltd. decreased by RMB 2654200 in liquidation and Zhejiang
Huajie’s equity decreased by RMB 603600 due to accounting method converted from equity method
to cost method.3. Accrued net investment income of RMB 34968600 of long-term equity investment using
equity method
During the reporting period investment in other equity instruments increased by RMB
20068400 year-on-year which was due to the gains and losses arising from Shenwan Hongyuan
Group Co. Ltd. fair value change of RMB 20068400 during the reporting period.Financial assets held for trading during the reporting period increased by RMB 13.635 million
year-on-year of which: newly added RMB 51706100 for Oriental International Entrepreneurship
Co. Ltd. Fujian Zongteng Network Co. Ltd. decreased by RMB 32076500 after debt-to-equity
swap and bank wealth management product redemptions decreased by RMB 6 million.Other non-current financial assets during the reporting period increased by RMB 4475900
year-on-year of which: RMB 32076500 from Fujian Zongteng Network Co. Ltd. RMB 1.5 million
from Chengjianbao (Beijing) Consulting Service Co. Ltd. RMB 20 million from Yiwu Shanyue
Equity Investment Partnership (Limited Partnership); RMB 11269200 recovered investment from
Jiaxing Zhehua Zijing Investment Partnership (Limited Partnership) RMB 3169500 recovered
investment from Suzhou Yiyun Venture Capital Center (Limited Partnership); minus RMB
34662000 gains and losses arising from changes in fair value.Main investments are as follows:
Unit: RMB10000
Book value
Shareholding
Cost of at the end of
Investment object Main businesses of the investment object ratio
investment December
(%)2020
Industry investment investment management
(excluding financial businesses such as securities and
Yiwu Shanglv futures) property service design production and
Investment agency of domestic advertising operation and
39200.00 36583.08 49
Development Co. management of parking garages marketing planning
Ltd. operation and management consulting operation and
management of shopping malls and business
management consulting
Yiwu Rongshang Real estate development and operation landscape
5000.00 2231.91 49
Property Co. Ltd. engineering and decoration engineering
Real estate development and sale; lease of proprietary
Yiwu Chuangcheng
houses; real estate brokerage service; interior 2000.00 1144.48 24
Property Co. Ltd.decoration service; and landscaping service
Asset management (excluding the assets subject to
Yiwu Huishang
special state regulation such as state-owned assets)
Zijing Capital
investment management (excluding financial 140.00 202.26 20
Management Co.businesses such as securities and futures) and
Ltd.investment consulting service
Jiangsu Jin’an
Hefeng Network Wholesale and retail; and e-commerce technology
200.00 100.74 40
Technology Co. development and technical services
Ltd.Yiwu China Design of industrial goods; development of computer
Commodities City software (excluding electronic publications); online sale
98.00 102.96 49
Creative Design and offline sale of electronic products (excluding
and Development electronic publications) artware accessories and daily
Services Co. Ltd. necessities; and exhibition and display services
Zhejiang
Organization and planning consulting of sports events
Commodities City
operation of sports venues operation of sports
China Olympic 440.00 354.18 45
activities (excluding dangerous sports activities)
Sports Industry
design production and sale of sports goods
Co. Ltd.Hangzhou Binjiang
Shangbo Property
Real estate development and operation 2450.00 15415.23 49
Development Co.Ltd.Yiwu Huishang Micro-loans in Yiwu and consulting services in
Micro-finance Co. connection with the development management and 12420.00 7139.66 23
Ltd. finance for small-sized enterprises
Financial lease service; transfer of financial lease
assets; fixed-income securities investment; acceptance
of lessees’ lease margin; absorption of time deposit
Zhejiang Chouzhou
with a term no shorter than three months from
Financial Lease 26000.00 37132.07 26
non-bank shareholders; inter-financial institutional
Co. Ltd.lending; borrowing from financial institutions; overseas
borrowing; sale and disposal of leased items; and
economic consulting
Yiwu China
Commodities City
Equity investment investment management and
Fuxing Investment 10291.86 10291.86 49.90
investment consulting
Center (limited
partnership)
Equity investment and related consulting services
(without approval of the industry regulatory authorities
Yiwu Huishang
such as the finance regulatory authority the company
Zijing Equity
warrants that it will not be engaged in the absorption of 5000.00 7807.26 10.42
Investment Co.deposits financial guarantee agency wealth
Ltd.management fundraising (financing) from the public
and other financial businesses)
Investment management asset management
(excluding the assets subject to special state regulation
such as state-owned assets) (the above business
Yiwu Huishang
scope excludes financial businesses such as securities
Redbud Phase II
and futures; and without approval of the industry
Investment 5000.00 4828.12 9.43
regulatory authorities such as the finance regulatory
Partnership (limited
authority the company shall not be engaged in the
partnership)
absorption of deposits financial guarantee agency
wealth management fundraising (financing) from the
public and other financial businesses)
Yiwu Meipinshu
Supply Chain Supply chain management service software
1820.14 1790.23 20.57
Management Co. development and business management consulting
Ltd.Services: technology development technical
consulting technical services and achievements
Hangzhou
transfer of computer hardware and software and 1275.00 671.85 49.04
MicroAnts Co. Ltd.network information technologies and webpage design;
wholesale and retail: computer software
Services: technology development technical
consulting technical services and achievements
transfer of data technologies computer hardware and
Zhejiang Yemai
software and information technologies webpage
Data Technology 600.00 128.42 40
design processing of computer data integration of
Co. Ltd.computer systems design of industrial goods; and
business information consulting (excluding
commodities agency)
Market planning and design marketing planning brand
Zhejiang Zhiku Co. management service enterprise consulting and
180.00 101.50 45
Ltd. management economic information consulting and
training service (excluding training classes)
Zhejiang YXE
Supply Chain Supply chain management service; global trade &
80.00 31.46 25
Management Co. domestic trade; and wholesale & retail
Ltd.Hunan Shang Yun
Zhonghe Scientific Wholesale & retail; and development of e-commerce
350.00 35
Research and platforms and related services
Trade Co. Ltd.Henan Yiwugou
Technology Wholesale & retail; and development business
200.00 40
Development Co. expansion and technical service of e-commerce
Ltd.Yiwu China
Commodities City
Investment Investment management 980.00 49
Management Co.Ltd.Investment management equity investment asset
management and investment consulting (without
Yiwu Hongyi Equity approval of the industry regulatory authorities such as
Investment Fund the finance regulatory authority the company shall not
69000.00 68975.68 49.98
Partnership (limited be engaged in the absorption of deposits financial
partnership) guarantee agency wealth management fundraising
(financing) from the public and other financial
businesses)
Shenwan
Securities brokerage securities investment consulting
Hongyuan Group 55362.54 66225.63 0.501
and securities underwriting & sponsorship
Co. Ltd.Development deployment and comprehensive
Yiwu Water
utilization of water resources in the northern areas of
Resources
Yiwu and operation management and maintenance of 200.00 1510.00 10
Development Co.the water diversion works for Badu reservoir and
Ltd.Hengbin reservoir
Zhejiang Yiwu Tap Centralized water supply and construction of the
207.29 2320.60 2.83
Water Co. Ltd. auxiliary pipe network for tap water supply
Beijing Yiyun Clean
Technology Venture capital agency of other VC institutions or
1891.82 360.00 15
Venture Capital individuals’ VC business
Co. Ltd.Suzhou Yiyun
Venture Capital
Venture capital and related consulting business 956.56 12351.95 11.71
Center (limited
partnership)
Shenzhen Tiantu
Investment PE investment management in the consumer goods
11438.62 4812.23 1.54
Management Co. industry
Ltd.Beijing Redbud
Huarong Equity Asset management investment management and
10000.00 17557.86 12.36
Investment investment consulting
Partnership
Granting of personal consumption loans; acceptance of
deposits from shareholders’ domestic subsidiaries and
domestic shareholders; lending to domestic financial
Mashang
institutions; issuance of financial bonds upon approval;
Consumer Finance 3000.00 5167.50 0.75
inter-financial institution lending in China; consumption
Co. Ltd.finance-related consulting; agency sale of insurance
products related to consumption loans; and
fixed-income securities investment
Industry investment venture capital investment
Jiaxing Zhehua
management business management social and
Zijing Investment
economic consulting.(Operating activities subject to 8873.08 12016.76 17.51
Partnership (limited
approval in accordance with laws shall only be
partnership)
conducted after approval from related authority) [it shall
not be engaged in the absorption of deposits financial
guarantee agency wealth management fundraising
(financing) from the public and other financial
businesses]
Technology promotion service; computer system
service; basic software service application software
Beijing Wudaokou
service (excluding medical software); software
Education
development; product design; model design; packaging 500.00 61.64 8.27
Technology Co.and decoration design; and education consulting
Ltd.(excluding overseas studying consulting and
intermediary service)
Nantong Redbud
Huatong Equity
Equity investment; investment consulting; and
Investment 20000.00 25484.32 21.05
investment management
Partnership (limited
partnership)
Yiwu Shangfu
Chuangzhi
Asset management investment management and
Investment Center 61751.14 61751.14 74.99
investment consulting service
(limited
partnership)
Yiwu Shanfeng
Investment Investment management asset management and
2600.00 2600.00 56.40
Partnership (limited investment consulting
partnership)
Technology development technical service technical
Yiwu Smart
consulting technology promotion and achievements 120.00 120.00 12
Transport Co. Ltd.transfer
Network information technology service; computer
system integration service; development and technical
service of computer hardware and software; wholesale
agency purchase and agency sale of maternal and
infant products; online operation of electronic products
Fujian Zongteng and components and accessories thereof household
3000.00 4128.54 0.6863
Network Co. Ltd. supplies and components and accessories thereof and
outdoor goods and components and accessories
thereof; market research; business management
consulting; enterprise marketing planning; international
freight forwarding; and domestic trade agency service;
and foreign trade
Food business; self-operated and agent for the import
and export of products and technologies other than
those that are uniformly organized or approved by the
state "three forms of OEM and compensation trades"
Oriental and processing of imported materials development
International production and sales of biological pharmaceutical and
5000.00 5170.61 0.72
Entrepreneurship chemical products international freight forwarding
Co. Ltd. agent industrial and high-tech industry investment
counter trade transit trade and service trade sales:
clothing and apparel shoes and hats knitwear leather
products luggage and bags daily necessities; the
second-category medical devices sales.Yiwu Guoshen Real estate development sale and lease; real estate
Shangbo Property brokerage service interior decoration service; and 2000.00 49.00
Co. Ltd. landscaping service
Economic and trade consulting; market research;
corporate management consulting; public relations
services; corporate planning and design; advertising
Cheng Jian Bao designing producing agency and publishing;
(Beijing) Consulting corporate management; conference services; 150.00 150.00 15.00
Services Co. Ltd. translation services; technology development
technology promotion technology transfer technology
consulting technical service; organizing exhibition
activities
Communication equipment repair; communication
equipment sales; communication equipment
manufacturing; computer and communication
equipment leasing; information technology equipment
sales; computer software and hardware and auxiliary
equipment wholesale; computer software and
hardware and auxiliary equipment retail; information
consulting services (excluding licensing information
consulting services) ; socio-economic consulting
Yiwu Digital Port
services; advertising design agency; advertising
Technology Co. 765.00 750.34 51.00
production; advertising publishing (excluding channels
Ltd.such as radio television newspaper publishing units);
technical services technology development
technology consulting technology exchange
technology transfer technology promotion; software
development; sales of chemical product (excluding
licensed chemical products); business agent services;
general goods warehousing services (excluding
hazardous chemicals and other items that require
license approval)
Yiwu China
Commodities City Real estate development sales leasing (used together
Property with valid qualification certificates) real estate 147157.30 49.00
149354.77
Development Co. brokerage services interior decoration; landscaping
Ltd.Pujiang Lvgu Real estate development sales leasing and property
37365.79 37967.25 49.00
Property Co. Ltd. management
Yiwu Shanyue
Equity investment; equity investment fund
Equity Investment
management investment consulting and operation 2000.00 2000.00 39.60
Partnership (limited
and management of state-owned assets
partnership)
Jebel Ali Free Zone
Lease and management of proprietary properties; and
Trader Market
lease and management of the properties owned by 2871.10 2363.94 30.00
Development and
others
Operatio n FZCO
(1) Major equity investments
√Applicable □Not applicable
Actual Proportion in
investment the equity of
amount the inverstment
Investment
Main businesses of the inverstment object during the object as of the Remarks
object
reporting end of the
period reporting
(RMB10000) period
Food business; self-operated and agent for the
import and export of products and technologies
The subscribed
other than those that are uniformly organized or
capital was
approved by the state "three forms of OEM and
RMB 50 million
compensation trades" and processing of imported
Oriental and as of the
materials development production and sales of
International end of the
biological pharmaceutical and chemical products 5000.00 0.72
Entrepreneurship reporting period
international freight forwarding agent industrial
Co. Ltd. the actual
and high-tech industry investment counter trade
capital
transit trade and service trade sales: clothing and
contributed was
apparel shoes and hats knitwear leather
RMB 50 million
products luggage and bags daily necessities; the
second-category medical devices sales.Yiwu Guoshen Real estate development sale and lease; real 2000.00 49.00 It subscribed for
Shangbo estate brokerage service interior decoration RMB20million of
Property Co. service; and landscaping service capital
Ltd. contribution and
had contributed
RMB20million of
paid-in capital
as of the end of
the reporting
period
It subscribed for
Economic and trade consulting; market research;
RMB1.5million
corporate management consulting; public
of capital
Cheng Jian Bao relations services; corporate planning and design;
contribution and
(Beijing) advertising designing producing agency and
had contributed
Consulting publishing; corporate management; conference 150.00 15.00
RMB1.5million
Services Co. services; translation services; technology
of paid-in capital
Ltd. development technology promotion technology
as of the end of
transfer technology consulting technical service;
the reporting
organizing exhibition activities
period
Communication equipment repair; communication
equipment sales; communication equipment
manufacturing; computer and communication
equipment leasing; information technology
equipment sales; computer software and
hardware and auxiliary equipment wholesale;
computer software and hardware and auxiliary The subscribed
equipment retail; information consulting services capital is RMB
(excluding licensing information consulting 25.5 million and
services) ; socio-economic consulting services; as of the end of
Yiwu Digital Port
advertising design agency; advertising the reporting
Technology Co. 765.00 51.00
production; advertising publishing (excluding period the
Ltd.channels such as radio television newspaper actual capital
publishing units); technical services technology contributed was
development technology consulting technology RMB 7.65
exchange technology transfer technology million
promotion; software development; sales of
chemical product (excluding licensed chemical
products); business agent services; general
goods warehousing services (excluding
hazardous chemicals and other items that require
license approval)
It subscribed for
RMB20million of
Yiwu Shanyue capital
Equity Equity investment; equity investment fund contribution and
Investment management investment consulting and had contributed
2000.00 39.60
Partnership operation and management of state-owned RMB20million of
(limited assets paid-in capital
partnership) as of the end of
the reporting
period
(2) Major non-equity investments
√Applicable □Not applicable
Amount
Accumulated
Project invested
actual amount
amount during the
Project Progress inversted
(RMB 10 reporting
(RMB 10
thousand) period (RMB
thousand)
10 thousand)
The office building was delivered the
West Yiwu International
underground space was completed and
Means of Production Market 133916.00 10855.63 96108.48
transferred to fixed assets the hotel
Auxiliary Project
decoration
Haicheng Yiwu China
Commodities City Commerce 180000.00 The main work was under construction 3229.05
Phase I Project—Hotel Project
Yiwu Shangbo 62007.00 Completed 6562.14 43613.30
The first phase of the customs closure
and fence facilities the overpass bridge
Phase I Project of Yiwu
448572.00 project and the first phase of customs 50579.23 50579.23
Integrated Free Trade Zone
supervision informatizationproject
completed
Commercial Station of Yiwu The preliminary completion inspection
19000.00 8989.41 8989.41
Mall Storehouse Park completed
The acceptance inspection of earthwork
East Parking Building Project and foundation pit support engineering
of Zone 2 of Yiwu International 60706.00 work completed the general contracting 8673.29 8673.29
Trade City bidding work completed and on-site
construction under in progress
The demolition of interior decoration
was basically completed the curtain
wall construction plan passed experts'
review the Yindu Hotel renovation
Yiwu Yindu Hotel renovation
25000.00 scheme passed the municipal planning 5555.37 5555.37
project
review meeting and was submitted to
the Bureau of Natural Resources and
Planning for approval and the general
contracting bidding was completed
Binwang Market Culture
50756.00 Completed 5889.61 20647.52
Creative Industry Park Project
Financial assets measured with fair value
√Applicable □Not applicable
Unit: RMB10000
Profit and
Value of initial
Opening Closing book loss during Accounting Source of
Name investment
Book value value the reporting item funds
cost
period
Shenzhen
Zhaowei Held-for-trading Self-owned
0.10 0.10
Electromechanical financial assets funds
Co. Ltd.Changchun Jida Held-for-trading Self-owned
0.20 0.20
Zhengyuan financial assets funds
Information
Technology Co.Ltd.Hebei Zhongci
Electronic Held-for-trading Self-owned
0.17 0.17
Technology Co. financial assets funds
Ltd.Zu Ming Bean Held-for-trading Self-owned
0.20 0.20
Products Co. Ltd. financial assets funds
Oriental
International Held-for-trading Self-owned
5000.00 5170.60 170.60
Entrepreneurship financial assets funds
Co. Ltd.Shenyin &
Other equity
Wanguo Self-owned
55362.54 64218.80 66225.63 1003.42 instruments
Securities Co. funds
investment
Ltd.Jiaxing Zhehua
Zijing Investment Other
Self-owned
Partnership 10000.00 12148.20 12016.76 995.48 non-current
funds
(limited financial assets
partnership)
Beijing Redbud
Other
Huarong Equity Self-owned
10000.00 15275.45 17557.86 2282.41 non-current
Investment Co. funds
financial assets
Ltd.Nantong Redbud
Huatong Equity
Other
Investment Self-owned
20000.00 22809.21 25484.32 2675.11 non-current
Partnership funds
financial assets
(limited
partnership)
Beijing Wudaokou
Other
Education Self-owned
500.00 67.32 61.64 -5.68 non-current
Technology Co. funds
financial assets
Ltd.Zhejiang Yiwu Other
Self-owned
Tap Water Co. 100.00 2264.00 2320.60 56.60 non-current
funds
Ltd. financial assets
Yiwu Water
Other
Resources Self-owned
200.00 1915.00 1510.00 -405.00 non-current
Development Co. funds
financial assets
Ltd.Suzhou Yiyun
Other
Venture Capital Self-owned
4000.00 22336.51 12351.95 -9667.61 non-current
Center (limited funds
financial assets
partnership)
Beijing Yiyun
Other
Clean Technology Self-owned
6091.82 480.00 360.00 -120.00 non-current
Venture Capital funds
financial assets
Co. Ltd.Mashang Other
Self-owned
Consumer 3000.00 3772.50 5167.50 1395.00 non-current
funds
Finance Co. Ltd. financial assets
Shenzhen Tiantu
Other
Investment Self-owned
11802.00 6405.63 4812.22 -1593.41 non-current
Management Co. funds
financial assets
Ltd.Yiwu Shanfeng
Investment Other
Self-owned
Partnership 2600.00 2600.00 2600.00 - n on-current
funds
(limited financial assets
partnership)
Cheng Jian Bao
Other
(Beijing) Self-owned
150.00 150.00 150.00 non-current
Consulting funds
financial assets
Services Co. Ltd.from Yiwu
Shanyue Equity
Other
Investment Self-owned
2000.00 2000.00 non-current
Partnership funds
financial assets
(Limited
Partnership)
Yiwu Smart Other
Self-owned
Transport Co. 120.00 120.00 120.00 - n on-current
funds
Ltd. financial assets
Other
Fujian Zongteng Self-owned
3000.00 3207.65 4128.53 920.88 non-current
Network Co. Ltd. funds
financial assets
Yiwu Shangfu
Chuangzhi Other
Self-owned
Investment Center 61751.14 61751.14 61751.14 - n on-current
funds
(limited financial assets
partnership)
(vi) Sale of major assets and equity
√Applicable □Not applicable
This year the Company divested 51% equity of CCCP and Pujiang Green Valley and the
remaining equity ratio was 49% and the accounting method was converted from the cost method to
the equity method. For details please refer to Note VII Consolidated Financial Statement Item Note
17 Long-term Equity Investment.(vii) Analysis of major subsidiaries and associates
√Applicable □Not applicable
Unit: RMB10000
Registered
Company name Business scope Total assets Net assets Net profit
capital
Yiwu China Real estate development and 250000.00 815721.15 308434.92 -1853.66
Commodities City sale
Property
Development Co.Ltd.Pujiang Lvgu Real estate development and
70000.00 171162.12 75559.79 3561.41
Property Co. Ltd. sale
Hangzhou Shangbo
Real estate development and
Nanxing Property 5000.00 1124.21 7993.23 -1331.93
sale
Co. Ltd.Industry investment investment
management property service
market development and
Haicheng Yiwu
operation market auxiliary
China Commodities
service real estate
City Investment 60000.00 230315.26 -71368.12 -13339.37
development sale and lease
Development Co.design production and agency
Ltd.of domestic advertising and
operation and management of
parking garages
Yiwu Shangbo Real estate development and
30000.00 46438.42 34862.89 -1764.78
Property Co. Ltd. sale
Yiwu Commodities
Real estate development and
City Gonglian 20000.00 16512.81 15837.85 56.44
sale
Property Co. Ltd.Yiwu China
Commodities City
R&D of computer and
Information 20000.00 22889.04 19964.71 -226.36
multimedia software
Technology Co.Ltd.Computer software multimedia
Zhejiang Yiwugou
technologies computer network
E-commerce Co. 10000.00 11167.57 8486.95 669.01
and application and wholesale &
Ltd.retail
Yiwu China
Commodities City
R&D of computer and
Payment Network 15000.00 12332.30 12280.61 -13.42
multimedia software
Technology Co.Ltd.Business credit investigation and
Yiwu China related businesses; information
Commodities City market consulting investment
1000.00 1169.31 835.21 144.87
Credit Investigation consulting and information
Co. Ltd. technology service (excluding
Internet information service)
Yiwu China
Commodities City Exhibition service 1800.00 7254.22 4393.09 1314.43
Exhibition Co. Ltd.Yiwu China
Commodities City
Ordinary cargo transport and
Logistics and 10000.00 1534.25 899.98 -448.83
goods warehousing
Warehousing Co.Ltd.Yiwu China Designing producing acting as
Commodities City an agent for and publishing 1000.00 6220.00 3614.34 1832.99
Advertising Co. Ld. various domestic advertisements
Yiwu China
Commodities City
Supply chain management
Supply Chain 10000.00 7990.56 -2486.30 -893.97
service
Management Co.Ltd.Yiwu China
Commodities City Domestic trade and international
10000.00 24739.41 -33.00 -4011.48
Import and Export trade
Co. Ltd.Enterprise's own capital
Yiwu China
investment asset management
Commodities City
investment consulting services 400000.00 223255.30 209635.85 8017.41
Financial Holdings
investment management
Co. Ltd.services
Development of tourism
resources and tourism projects;
Yiwu China domestic tourism business
Commodities City inbound tourism business;
Tourism tourism information consulting; 10000.00 11503.60 8966.69 -276.73
Development Co. and wholesale of fruits
Ltd. vegetables aquatic products
and primary edible agricultural
products
Yiwu China
Commodities City
Overseas industry investment
Overseas
and construction and operation 10000.00 10128.92 9046.14 -460.76
Investment and
of overseas shopping malls
Development Co.Ltd.Yiwu China
Assets operation and
Commodities City
management real estate
Assets Operation 1000.00 4164.37 -140.12 -621.37
property management and
and Management
consulting service
Co. Ltd.Industry investment investment
management property service
Yiwu Shanglv operation and management of
Investment parking garages business
80000.00 155755.05 77994.94 3513.97
Development Co. marketing planning operation
Ltd. and management consulting
and operation and management
of shopping malls
Hangzhou Binjiang
Shangbo Property Real estate development and
5000.00 45029.52 32241.90 3463.97
Development Co. sale
Ltd.Yiwu Rongshang Real estate development and
10204.08 679421.06 4554.91 -1239.13
Property Co. Ltd. sale
Yiwu Chuangcheng Real estate development and
8333.33 462106.61 4768.66 -2758.63
Property Co. Ltd. sale
Yiwu Huishang
Micro-finance Co. Micro loans 54000.00 31699.29 31223.84 823.58
Ltd.Zhejiang Chouzhou
Financial lease service and
Financial Lease 100000.00 1208622.24 142565.91 15022.62
transfer of financial lease assets
Co. Ltd.Yiwu Huishang
Equity investment and related
Zijing Equity 49000.00 82996.88 74925.69 -618.41
consulting services
Investment Co. Ltd.Yiwu Huishang
Redbud Phase II
Investment management and
Investment 106100.00 64911.54 62910.54 -758.36
asset management
Partnership (limited
partnership)
Yiwu Huishang
Asset management investment
Zijing Capital
management and investment 1000.00 1400.74 1011.28 254.54
Management Co.consulting service
Ltd.Yiwu Meipinshu
Supply Chain Supply chain management
165.51 2759.03 2163.38 -749.92
Management Co. service
Ltd.Yiwu Hongyi Equity Investment management equity 200100.00 138160.68 138020.37 1877.25
Investment Fund investment asset management
Partnership (limited and investment consulting
partnership)
Industry investment investment
Zhejiang Huajie
management investment
Investment and
consulting business information 50000.00 7825.65 7718.54 -366.14
Development Co.consulting and asset
Ltd.management services
Freight station (yard) operation;
warehousing services; goods
and technology import and
export; supply chain
management services; asset
management services; corporate
European Huajie
management consulting;
Investment CZK
business information consulting; 3364.62 1573.30 -2258.68
Development Co. 1580.00
freight information consulting
Ltd.services; cargo transportation
and loading/unloading services;
advertising designing
producing agency and
publishing; exhibition services
etc.Communication equipment
repair; communication
equipment sales; communication
equipment manufacturing;
Yiwu Digital Port
computer and communication
Technology Co. 5000.00 1477.73 1402.28 -97.72
equipment leasing; information
Ltd.technology equipment sales;
computer software and hardware
and auxiliary equipment
wholesale
Jebel Ali Free Zone Lease and management of
Trader Market proprietary properties; and lease AED
46593.74 7879.81 -1216.73
Development and and management of the 16800.00
Operation FZCO properties owned by others
Real estate development sale
Yiwu Guoshen
and lease; real estate brokerage
Shangbo Property 408163.00 884955.23 -4365.98 -8447.61
service interior decoration
Co. Ltd.service; and landscaping service
Internet data services;
professional design services;
intelligent control system
Yiwu China
integration; computer
Commodities City 10000.00 23693.63 7335.82 -814.46
information technology
Big Data Co. Ltd.development technical
consulting technical services
technology transfer etc.International air cargo transport
Yiwu Global Yida agency; land international freight
5000.00 938.41 583.35 -418.79
Logistics Co. Ltd. forwarding agency; international
freight forwarding agency etc.Property management;
low-temperature storage;
Yiwu
general goods warehousing
Comprehensive
services (excluding hazardous
Bonded Zone
chemicals and other items that 10000.00 504.83 374.55 -226.94
Operation and
require license approval);
Management Co.information consulting services;
Ltd.warehousing equipment rental
services etc.BETTER SILK Container handling; land
RF
ROAD RWANDA transport-related services; and 68.99 -32.93 -243.06
27000.00
Ltd land transport supporting
activities-related business
(viii) Structured entities controlled by the Company
□Applicable √Not applicable
I. Discussion and Analysis of the Company's Future Development
(i) Industry Pattern and Trends
√Applicable □Not applicable
In 2020 facing the severe and complex international and domestic situation especially thesudden COVID-19 epidemic Yiwu market implemented the “ensure 'six priorities' and stability in sixareas” with “wartime” status and measures explored new paths for market development achievedthe capital inflow around the market and the total volume of public transport of highways railways
and airlines beginning to increase month-on-month since April 2020. According to the "Statistical
Yearbook of China Commodity Trading Market" the total turnover of YIWU CCC market in 2020 was
RMB 162.661 billion.In 2021 epidemic prevention and control international politics and global economy are
intertwined. Uncertainty and instability of international trade and restructuring of international trade
pattern will become the new normal. At the same time the signing of RCEP marks the official kick-off
of the world's largest free trade area. In this context the Company will base itself on the positioning
as a trade service provider vigorously promote market innovation and development and make
every effort to build an upgraded version of the physical market with "the highest degree of
digitalization the best business environment and the strongest trade service capabilities" so as to
build up the sixth-generation market and serve the domestic and international dual circulation
objectives. Build up the first digital Integrated Free Trade Zone in China relying on the full -link and
full-function services formed by the chinagoods platform to empower the physical market promote
the stability and prosperity of the physical market and then form a support system driven by two
wheels of "online + offline" channels to strengthen the leading position in the market.(ii) Development strategy of the Company
√Applicable □Not applicable
At the Fifth China-Africa Entrepreneurs Conference General Secretary Xi Jinping called Yiwu
the "Small Commodity Capital" of the world pointing out the direction for the development of themarket and the Company. The Company puts forward the development strategy of “taking themarket as the main business taking the digital as the link taking the platform as the supportbuilding an international trade comprehensive service provider”.With the goal of building the world's "Small Commodity Capital" with high quality and high
standards focusing on the main market business promoting various resource elements to
concentrate in the main business opening up all links of the domestic and foreign trade supply chain
through vigorously developing digital trade and continuously enhancing and upgrading the core
competitiveness of market and the Company to empower the small commodity industry chain and
ecosystem promoting the transformation of the physical market into a global trade service platform
for small medium and micro enterprises and the transformation of the Company from a market
manager to a comprehensive trade service provider.(iii) Business plan
√Applicable □Not applicable
In 2021 under the premise of strict epidemic prevention and control the Company will continue
to aim at the strategic goal of building "the World's Small Commodity Capital" with high quality and
high standards focusing on institutional innovation digital transformation and international
deployment and strengthening the reform and planning in three major aspects i.e. the free trade
zone dual circulation and state-owned enterprise reform accelerating market innovation and
development and the Company transformation and upgrading. Business plan goals of 2021: based
on 2019 performance operating income growth rate is not less than 75%; earnings per share is not
less than RMB 0.20; main business income in 2021 accounts for not less than 90% of operating
income; GMV of chinagoods plat form which is the innovative business of the Company is not less
than RMB 13 billion (the business plan goals of 2021 do not represent the Company's profit forecast
and commitment).1. Market operation
Continuing to maintain a steady and good development trend of the market stimulating market
vitality vigorously promoting market innovation and development and further consolidating the core
advantages of the market. Innovatively developing the sixth-generation market marked by the
new-type import market and Zone 6 of the International Trade City building up the largest imported
small commodity distribution center in China and accelerating the construction of Zone 6 and east
market of Zone 2.Regarding the construction of the east market of Zone 2: the project is positioned as a
specialized market and equipped with the function of a parking lot. After the completion of the project
it will not only help improve the overall business environment of the International Trade City and
expand the operating area of the specialized market but also help improve the traffic environment
around the International Trade City which will effectively help to enhance the overall
competitiveness of the International Trade City.The sixth-generation market is the system integration of the "Scene Forms" of market
transformation and upgrading. It takes the new-type import market and Zone 6 of the International
Trade City as the core symbols to achieve the integration of "export import and transit trade";
achieve online and offline integration "cloud computing + mobile Internet + intelligent terminal"
digital linkage; promote standards and design into the market and move up to the high end of the
value chain; integrate "market + manufacturing" to strengthen the support of the real economy;
highlight the functions of Yiwu wharf world commodities base and trade paradise. Strengthening the
characteristics of "diversified forms diversified functions digital transactions liberalized market
access trade internationalization and electronic settlement". The construction and promotion of the
Zone 6 market provide new impetus for promoting innovation and development of the Yiwu market
and building the world's "Small Commodity Capital" with high quality and high standards. Zone 6 of
the International Trade City is scheduled to start construction in 2021.2. The level of trade digitization is further improved
Striving to strengthen the chinagoods plat form with chinagoods as the core linking various
digital plat forms that empower the market and make the offline trade ecosystem online forming a
digital trade service system with the characteristics of "trade data as the core credit rating as the
basis and one-stop performance as the feature". Improving the functions of the chinagoods platform
achieving GMV of RMB 13 billion in the whole year and cultivating more than 10000 active
merchants and more than 1000 core merchants.Building version 2.0 of market procurement and promoting the digitization of the trade chain.Relying on the chinagoods platform accelerating the development of "market procurement +
cross-border e-commerce" and bringing various participants into the closed loop of digital trade
services including market merchants foreign businessmen foreign trade companies and
commodity organizers etc.Building a digital Integrated Free Trade Zone in an all-round way achieving "cloud
interconnection" of all elements and digital supervision across the region exploring new modes and
new formats of digital trade such as "bonded + live broadcast" "bonded + designated ports +
specialized market" and striving to be am ong the forefront of newly established integrated free trade
zones in China within this year.Improving the functions of the public service platform and exploring new rules of digital trade
services. Making active efforts to acquire third -party payment license and become digital RMB
application pilot promoting the facilitation of trade payment and settlement.3. Building a global supply chain service system
The core of building a global supply chain service system is to form a closed trade service loop
of "Yiwu Goods (ICMALL) + Smart Warehousing (Overseas Warehouses) + CCCL logistics service
chain + Supply Chain Finance" forming the Company's complete service chain and industrial chain
building a global supply chain service system to enhance the competiti veness of the main business
and building the second growth curve of supply chain services.Accelerating the construction of warehousing and logistics system opening and operating the
CCCL logistics park (48 thousand square meters) steadily and building the bonded warehouse
(317000 square meters) of Yiwu Integrated Free Trade Zone; relying on the large warehouse
management system deploying 100 digital cloud warehouses in China and integrating 100 domestic
logistics trunk lines and increasing international logistics dedicated lines to 200; promoting "Money
Treasure" business steadily.Constructing a closed trade service loop of dual circulation establishing a "Yiwu Goods" supply
and demand matching and product selection system cultivating 300 city managers within the year;
while at the same time promoting innovation of the RCEP border trade markets and the new
commercial complex project and realizing the prototype trial operation within the year.Speeding up international expansion increasing the market-oriented deployment of overseas
warehouses to more than 120; establishing 10 new "Bring You to China" trade service centers; rental
rate of Dubai project reaching the level of more than 90% and the project being officially opened and
operated within the year; setting up African head office.4. Platform and brand building
Chinagoods: with the chinagoods platform as the core carrier building a framework system of
"market entities + business platform + service platform + infrastructure" promoting the const ruction
of national stations and the expansion of cross-border trade business integrating into the
international circulation and building the market trade ecosystem featured with full links full scenes
and digitalization demonstrating "one platform on the cloud one network on the ground" achieving
the seamless connection and coordinated development of the online and offline Yiwu market and
making trade easier.Taking full advantage of Yiwu market such as favorable policies related to commodities and
trade service and its logistics the chinagoods platform will build three core businesses i.e.commodity center sales channel center and trade service center to provide both trade parties with
one-stop procurement supporting services including commodity demonstrating trading exhibitions
hotels warehousing etc.CCCL: in recent years the scale of market procurement trade has continued to rise and the
trend of trade fragmentation has become prominent. At the same time there are some problems in
the market procurement trade logistics industry such as small-scale business entities high financial
pressures weak bargaining power with actual carriers such as shipping companies shipping space
not guaranteed insufficient logistics digitization capabilities insufficient logistics standardization
insufficient supporting logistics infrastructure etc. In this context the Company set up CCCL a
logistics and trade platform to provide digital cross-border logistics solutions for small and
medium-sized foreign trade enterprises. The platform enables online ordering and payment full
visualization and 24-hour online customer service. It is positioned to establish a single window for
online fulfillment of Yiwu international logistics service products achieving the integration of Yiwu
international logistics resources forming a price comparison mechanism providing more convenient
efficient and low-cost customs clearance logistics services for trade parties improving the control of
goods rights in international trade process and extending the back-end services of market supply
chain.Yiwu Goods: Focusing on channel expansion brand enhancement supply chain innovation
and trade services the Company carries out in-depth domestic expansion layout. The Company
builds a cobweb distribution system and deepen the Yiwu Goods strategy. The Company promotes
the formation of a domestic trade market system dominated by the Yiwu market undertook by
downstream channels and mutually beneficial to all parties. At the same time Yiwu Goods actively
deploys online channels and foreign trade channels vigorously develops the mode of live broadcast
e-commerce government and corporate procurement and etc. actively promotes foreign trade
export services rapidly enhances brand influence enlarges and strengthens transaction volume
and helps merchants in Yiwu to expand distribution channels in order to achieve innovative
development of online and offline integration wholesale and retail linkage and domestic sales and
foreign trade collaboration. Focusing on innovation channels in-depth expansion of operations new
product development design and creativity empowerment explosive product creation brand
planning and dissemination the Company has devoted efforts to make Yiwu's small commodity
industry chain intensive digitalized standardized and branded. The Company promotes the
optimization and upgrading of the small commodity industry structure and build a world -renowned
high-quality small commodity supply chain.Aiximao: Committed to the dual cycle plan to expand domestic distribution channels for
imported products of Aiximao. A total of 2000 domestic sales cooperation outlets have been
expanded and online and offline distribution channels have achieved revenue of RMB 300 million.The Company will build a distribution center for imported commodity brands optimize the existing
commodity structure and incubate potential imported brands. Through centralized sourcing bringing
you to China overseas direct sourcing and etc. the Company can control the source of goods and
strengthen the core advantages of the supply chain. The Company strives to create 2000 superior
products complete 100 brand agents or authorizations throughout the year and create 5 new
Aiximao and sub-brand OEM products. We expand cross-border commerce and build a cross-border
import supply chain.(iv) Potential risks
√Applicable □Not applicable
1. Market operation risk
Large-sized shopping malls hypermarkets warehouse stores and e -commerce platforms are
strong competitors in the commodities trading market. Large -sized shopping malls offer products of
reliable quality and well -known brands; hypermarkets or warehouse stores supply diversified
products at low prices; e-commerce plat forms provide new trading means and facilitate consumers.Purchasers or consumers may also choose to make procurement or consumption via e -commerce
platforms for convenience. Therefore the Company may compete with other forms of business. In
addition affected by the rising specialized market robust development of the industry market and
rapid development of the central and western regions the Company may also face competition from
other similar specialized markets.2. Risk of insufficient reserve of talents
With the acceleration of market transformation and the expansion of the Company’s business
and with the expansion of experienced international trade warehousing and logistics supply chain
overseas development information data industrial investment and business operatio ns the
Company may face the risk of insufficient reserves of professional talents and compound talents.3. The risk of increasing external uncertainty
In the context of the normalization of epidemic prevention and control the development of
global market trade is more complicated and severer than before. The global epidemic and reverse
globalization are parallel and the downward pressure on the world economy has increased. New
technologies have accelerated the birth of new opportunities and new trade models and new
business formats have emerged. In the post-epidemic era uncertainty will become the greatest
certainty for the development of market trade and the global epidemic will continue for a long time
showing a repeated see-saw state. Epidemic prevention and control international politics and
global economy are intertwined. Uncertainty instability and restructuring of international trade will
become the new normal. The Company may face the risk of increased external uncertainty.(v) Others
□Applicable √Not applicale
II. The Company failed to disclose and explain the reasons in accordance with the
standards due to special reasons such as non-applicable standards or state
secrets and trade secrets.□Applicable √Not applicale
Section V. Significant Matters
I. Proposal for common stock profit distribution or capital reserve conversion
(i) Formulation implementation or adjustment of cash dividend policy
√Applicable □Not applicable
According to the China Securities Regulatory Commission's Notice on Further Implementation
of Cash Dividends by Listed Companies (ZJF [2012] 37) and Zhejiang Securities Regulatory
Bureau’s Notice on Forwarding the Notice on Further Implementation of Cash Dividends by Listed
Companies (ZZJSSZ [2012] 138) Regulations the Company held the 24th meeting of the sixth board
of directors on August 15 2012 and reviewed and approved the Proposal on Amending the Articles
of Association which revised the Company’s profit distribution policy and adjustment
decision-making mechanism and was deliberated and approved in the second extraordinary general
meeting of shareholders held on September 32012. In order to further implement the new
requirements of the China Securities Regulatory Commission's Guidelines for the Supervision of
Listed Companies No. 3-Cash Dividend Distribution of Listed Companies (November 30 2013) and
Shanghai Stock Exchange’s Guidelines for Cash Dividend Distribution of Listed Companies the
forty-fourth meeting of the sixth board of directors of the Company held on April 17 2014 reviewed
and approved the Proposal on Amending Profit Distribution Clauses in the Articles of Association of
the Company. The Company further clarified the basic principles distribution forms specific policies
decision-making mechanisms and procedures of the Company's profit distribution which were
reviewed and approved by the 2013 Annual General Meeting of Shareholders held on May 12 2014.The nineteenth meeting of the seventh board of directors of the Company held on December 25
2015 reviewed and approved the Plan of Zhejiang China Commodity City Group Co. Ltd. on
Shareholder Dividend Return Plan.The Company's 2019 annual general meeting of shareholders held on May 22 2020 reviewed
and approved the Company's profit distribution plan for 2019. In 2019 based on the total share
capital of 5443214176 shares on December 31 2019 a cash dividend of RMB 0.7 (including tax)
will be distributed for every 10 shares). A total of RMB 381024992.32 was allocated. The
Company 's board of directors published the Announcement on the Implementation of the Distribution
of Rights and Interests in YIWU CCC2019 on the website of the Shanghai Stock Exchange and the
China Securities Journal Shanghai Securities News and Securities Times on July 14 2020. The
profits had been completed before July 21 2020. The decision-making procedures related to the
Company 's profit distribution comply with the provisions of the Articles of Association. The Company
listens to the opinions and demands of small and medium shareholders and the profit distribution is
based on factors such as the Company's industry characteristics development stage and profitability
level and capital needs. It takes into account the requirements for investors to share the results of
the Company's development and growth and obtain reasonable investment returns.(ii) The Company's common stock dividend distribution plan or pre-plan for the past
three years (including the reporting period) and the capital reserve conversion plan
and pre-plan
Unit: RMB
Percentage
Number of Net profit of net profit
Numbe Dividend
shares attributable to attributable
r of payout
converted common to common
Annual bonus for every
from the The amount of shareholders of shareholder
dividend shares 10
capitalizatio cash dividends listed companies s of listed
s for shares
n of capital (Tax included) in the annual companies
every (tax
reserve for consolidated in the
10 inclusive
every 10 statements of consolidated
shares )
shares dividends statements
(%)
2020 0 0.55 0 301945279.6 926626706.42 32.598
2019 0 0.70 0 381024992.3 1255276023.7 30.35
2 0
Year 0 0.60 0 326592850.5 1082631394.5 30.17
2018 6 4
(iii) The circumstance when repurchase of shares in cash is included in cash dividends
□Applicable √Not applicable
(iv) During the reporting period if the parent company is profitable and the profit
available for distribution to common shareholders is positive but does not propose
a plan for the distribution of cash profits on common shares the Company shall
disclose in details the reason the application and using plan of the undistributed
profits.□Applicable √Not applicable
II. Fulfillment of commitments
(i) Commitments made by the actual controller shareholders affiliates and acquirer of
the Company the Company itself and other related parties during the reporting
period or as of the reporting period
□Applicable √Not applicable
(ii) If there is a profit forecast for the Company’s assets or projects and the reporting
period is still in the profit forecast period the Company will explain whether the
assets or projects have reached the original profit forecast and the reason.□Yes □No √Not applicable
(iii) Completion of performance commitments and its impact on the impairment test of
goodwill
□Applicable √Not applicable
III. Occupation of funds and progress in debts clearing during the reporting period
□Applicable √Not applicable
IV. The Company's explanation on the ‘non-standard opinion audit report’ of the
accounting firm
□Applicable √Not applicable
V. The Company's analysis and explanation on the reasons and effects of changes
in accounting policies accounting estimates or corrections of major accounting
errors
(i) The Company's analysis and explanation on the reasons and effects of changes in
accounting policies and accounting estimates
√Applicable □Not applicable
For details please refer to Section 11 Financial Report V. Significant Accounting Policies and
Accounting Estimates 44. Changes on Significant Accounting Policies and Accounting Estimates.(ii) The Company's analysis and explanation on the reasons and effects of major
accounting errors correction
□Applicable √Not applicable
(iii) Communication with the former accounting firm
□Applicable √Not applicable
(iv) Other descriptions
□Applicable √Not applicable
VI. Engagement and termination of engagement of accounting firm
Unit: RMB10000
Current engaged accounting firm
Name of the engaged domestic accounting firm Ernst & Young Hua Ming Certified Public
Accountants (special general partnership)
Remuneration of the engaged domestic 175
accounting firm
Audit period of the engaged domestic accounting 13
firm
Name Remuneration
Internal control auditing Ernst & Young Hua Ming Certified Public 47.5
accounting firm Accountants (special general partnership)
Statement on the engagement or termination of engagement of accounting firm
√Applicable □Not applicable
After deliberation at the 13th meeting of the Company’s eighth session of the Board of Directors
held on April 28 2020 and the Company’s 2019 annual general meeting of shareholders held on
May 22 2020 the Proposal on Renewing the Appointment of an Accounting Firm was passed and
agreed to continue to appoint Ernst & Young Hua Ming Certified Public Accountants (Special
General Partnership) as the Company's 2020 financial and internal control audit agency. For details
please refer to the Announcement on Renewing the Appointment of Accounting Firms (L2020-028)
issued by the Company on the Shanghai Stock Exchange website www.sse.com.cn on April 30
2020 and the Announcement on Resolutions of the 2019 Annual General Meeting of Shareholders
(L2020-039) issued by the Company on the Shanghai Stock Exchange website www.sse.com.cn on
May 23 2020.Statement on replacing the accounting firm during the audit
□Applicable √Not applicable
VII. The risk of listing suspension
(i) Reasons for suspension of listing
□Applicable √Not applicable
(ii) The Company's proposed response measures
□Applicable √Not applicable
VIII. Termination of listing and reasons
□Applicable √Not applicable
IX. Matters relating to bankruptcy and reorganization
□Applicable √Not applicable
X. Matters relating to litigations and arbitrations
√There are matters relating to litigations or arbitrations in current reporting period
□No matters relating to litigations or arbitrations in current reporting period
(i) Litigations and arbitrations have been disclosed in the temporary announcements
and have had no further progresses
□Applicable √Not applicable
(ii) Litigations and arbitrations that have not been disclosed in the temporary
announcements or have had further progresses
√Applicable □Not applicable
Unit: RMB10000
During the reporting period:
Did the
Value
litigation
involv Results of
Party Litigation Basic (arbitration) Status of Enforcem
ed in litigation
Plaintiff Defendant Bearing or information of cause litigation ent of
litigati (arbitration)
(claimant) (respondent) Joint arbitratio litigation estimated (arbitration judgment
on and effect
Liabilities n (arbitration) liabilities and ) (award)
(arbitr thereof
the amount
ation)
thereof
The Changsha None Litigation Second 1068 NO Judgment Dismiss the /
Company Ruinian Real instance for has been appeal and
Estate the dispute made uphold the
Development over unfair original
Co. Ltd. competition verdict
and trademark
right
infringement
[(2020) Xiang
Min Zhi Zhong
No.216]
Ganglong The Company None Litigation Second 1212 NO Judgment Dismiss the Legal
Holdings instance of has been appeal and enforcem
Group Co. unfair made uphold the ent has
Ltd. Anshan competition original been
Ganglong dispute [(2019) verdict applied
Guoxin SMZ No. 1473] for
Property Co.Ltd.Dragonair The Company None Litigation Second 1212 NO Judgment Dismiss the Received
Holding instance of has been appeal and RMB
Group Co. unfair made uphold the 623390
Ltd. Huai'an competition original 0 subject
Dragonair dispute [(2019) verdict to
Building SMZ No. 1474] enforcem
Materials ent
Home City
Management
Co. Ltd.Wenzhou The Company None Litigation Second 1212 NO Judgment Dismiss the Received
Ganglong instance of has been appeal and RMB 2.5
Property Co. trademark made uphold the million
Ltd. infringement original subject to
Ganglong dispute [(2019) verdict enforcem
Holdings ZMZ No. 1431] ent
Group Co.Ltd.Wenzhou
Ganglong
Yiwu
Commodities
City
Operation
and
Management
Co. Ltd.Zhejiang The Company None Litigation Second 1212 NO Judgment Dismiss the Legal
Yiwu instance of has been appeal and enforcem
Chuanglian trademark made uphold the ent has
Market infringement original been
Investment and unfair verdict applied
and competition for
Management dispute
Co. Ltd. 【(2019) ZMZ
Suzhou
Pingjiang No. 711】
Ganglong
Real Estate
Co. Ltd.Suzhou
Ganglong
Business
Management
Co. Ltd.Ganglong
Holdings
Group Co.Ltd.Zhejiang The Company None Litigation Second 812 NO Judgment Dismiss the Received
Yiwu instance of has been appeal and execution
Chuanglian trademark made uphold the money of
Market infringement original RMB 649
Investment and unfair verdict thousand
and competition
Management dispute
Co. Ltd. 【(2019) ZMZ
Changde
Xinri No. 712】
Property Co.Ltd.Changde
Xinri Yiwu
International
Trade City
Co. Ltd.Hebei The Company None Litigation Second 1212 NO Judgment Dismiss the Court
Jiangcheng instance of has been appeal and enforcem
Real Estate trademark made uphold the ent has
Developmen infringement original been
t Co. Ltd. and unfair verdict sought
Handan competition
Zheshang dispute [(2019)
Yiwu Small ZMZ No. 713]
Commodity
City Co. Ltd.Zhejiang The Company None Litigation Second 1212 NO Judgment Dismiss the Court
Yiwu instance of has been appeal and enforcem
Chuanglian trademark made uphold the ent has
Market infringement original been
Investment and unfair verdict sought
Management competition
Co. Ltd. disputes
[(2019) ZMZ
No. 1105]
Youxian The Company None Litigation Second 1215 NO Judgment Dismiss the Received
Xinxing Real instance of has been appeal and RMB 2.5
Estate trademark made uphold the million
Developmen infringement original subject to
t Co. Ltd. and unfair verdict enforcem
Youxian competition ent.Xiangdong dispute [(2020)
Yiwu ZMZ No. 216]
International
Trade City
Developmen
t Co. Ltd.Hunan
Xiangdong
Yiwu
International
Trade City
Operation
and
Management
Co. Ltd.The ZHANG None Litigation Dispute over 492 NO Judgment The /
Company Xizhong trademark has been defendants
CHEN Zhihua right made Zhang
Chuzhou infringement Xizhong
Chuangda and unfair Chen
Yiwu competition Zhihua and
International [(2019) Zhe Chuzhou
Trade City Co. 0782 Min Chu Chuangda
Ltd. No. 10704] Yiwu
Commercial
City Co. Ltd.jointly
compensate
d RMB 3.5
million for
economic
losses.The ZHANG None Litigation Dispute over 492 NO Judgment The /
Company Xizhong trademark has been defendants
CHEN Zhihua right made Zhang
Huai An infringement Xizhong
Chuangda and unfair Chen
Yiwu competition Zhihua
International [(2019) Zhe Huai'an
Trade City Co. 0782 Min Chu Chuangda
Ltd. HUANG No. 10705] Yiwu
Keyu CHEN Commercial
Jianzhong City
Developmen
t Co. Ltd.Huang Keyu
and Chen
Jianzhong
jointly
compensate
d the plaintiff
RMB 4
million for
economic
losses.The Xianning None Litigation Dispute over 492 NO Judgment The /
Company Luzhou Yiwu unfair has been defendant
Small competition made compensate
Commodities [(2019) Zhe d the plaintiff
Wholesale City 0782 Min Chu for economic
Co. Ltd. No. 18835] losses of
RMB 3.8
million.The Hubei Xizi None Litigation Dispute over 492 NO Judgment The /
Company Property Co. unfair has been defendant
Ltd. Huangshi competition made jointly
Duolong Yiwu [(2019) Zhe compensate
Small 0782 Min Chu d the plaintiff
Commodities No. 18837] for economic
Wholesale City losses of
Management RMB 3.2
Co. Ltd. million.The Sanmenxia None Litigation Dispute over 492 NO Judgment The /
Company Zheshang unfair has been defendant
Alliance competition made jointly
Property Co. [(2019) Zhe compensate
Ltd. 0782 Min Chu d the plaintiff
No. 18839] for economic
losses of
RMB 4.1
million.The Anhui None Litigation Dispute over 492 NO Judgement The /
Company Zhongheng unfair has been defendant
Business competition made compensate
Development [(2019) Zhe d the plaintiff
Co. Ltd. 0782 Min Chu for economic
No. 18844] losses of
RMB 4.5
million.The Guangdong None Litigation Dispute over 812 NO Judgment The /
Company Duolong unfair has been defendant
Enterprise competition made jointly
Group Co. and trademark compensate
Ltd. Zhanjiang right d the plaintiff
Yongsheng infringement for economic
Industry Co. [(2019) Yue 13 losses of
Ltd. Zhanjiang Min Chu No. RMB 3
Duolong Yiwu 206] million.Small
Commodities
Wholesale City
Co. Ltd.Corporate Shenzhen None Litigation Trademark 1212 NO Hearings / /
Shifang Global infringement have been
Commercial dispute case held but no
Management [(2020) judgment
Co. Ltd. Y03MC No. has been
Laibin 1676] made
Shengyuan
Real Estate
Development
Co. Ltd.The Meizhou None Litigation Case of unfair 1212 NO Hearings / /
Company Yuanrong competition have been
Yiwu Small dispute [(2020) held but no
Commodity Y03MC No. judgment
Wholesale City 1263] has been
Co. Ltd. made
Shenzhen
Shifang Global
Business
Management
Co. Ltd.Guangdong
Fangrong
Investment
Co. Ltd.The Shenzhen None Litigation Trademark 512 NO Hearings / /
Company Shifang Global infringement have been
Commercial and unfair held but no
Management competition judgment
Co. Ltd. disputes has been
Xinyang [(2020) made
Nanhai Real Y03MC No.Estate 1680]
Development
Co. Ltd.The Shenzhen None Litigation Disputes over 512 NO Hearings / /
Company Shifang Global trademark have been
Business infringement held but no
Management [(2020) judgment
Co. Ltd. Y03MC No. has been
Pingdingshan 1682] made
Yuhong Jiaye
Real Estate
Development
Co. Ltd.Pingdingshan
Wanshang
Yiwu Small
Commodity
Market
Operation Co.Ltd.The Xinyang None Litigation Unfair 1212 NO Trial has / /
Company Wanjia competition started but
Denghuo dispute case no
Industrial Co. [(2020) judgment
Ltd. Xinyang Y03MC No. has been
Yiwu Wanjia 1264] made
Denghuo
International
Trade City Co.Ltd.Shenzhen
Shifang Global
Business
Management
Co. Ltd.The Shenzhen None Litigation Trademark 512 NO Trial has / /
Company Shajing Yiwu infringement started but
Trade City dispute case no
Management [(2020) judgment
Co. Ltd. Y03MC No. has been
Shenzhen 1948] made
Shenmingfeng
Industrial Co.Ltd.Shenzhen
Shenmingfeng
Investment
Development
Co. Ltd.Shenzhen Inte
Digital
Investment
Development
Co. Ltd.The Shenzhen None Litigation Trademark 1212 NO Trial has / /
Company West Yiwu infringement started but
Commodity dispute case no
City Co. Ltd. [(2020) judgment
Y03MC No. has been
1029] made
The Shenzhen None Litigation Unfair 1212 NO Trial has / /
Company Shifang Global competition started but
Business dispute case no
Management [(2020) judgment
Co. Ltd. Y03MC No. has been
Heyuan Yiwu 1266] made
Small
Commodity
City Co. Ltd.The Jiangmen None Litigation Trademark 1212 NO Hearings / /
Company Yiwu infringement have been
Commodity dispute case held but no
City Co. Ltd. [(2020) judgment
Shenzhen Y03MC No. has been
Shifang Global 1961] made
Business
Management
Co. Ltd.Jiangmen
Luzhou
Commercial
Investment
Development
Co. Ltd.The Zhejiang Yiwu None Litigation Disputes over 792 NO Trial has / /
Company Chuanglian unfair started but
Market competition no
Investment and trademark judgment
Management infringement has been
Co. Ltd. [(2020) made
Qinhuangdao Z07MC No.North Logistics 174]
Real Estate
Co. Ltd.Qinhuangdao
Yiwu Small
Commodity
City
Management
Co. Ltd.The Zhejiang Yiwu None Litigation Disputes over 792 NO No / /
Company Shangju unfair hearings
Market competition have not
Investment and trademark been held
Management infringement
Co. Ltd. [(2020)
Weihai Xiuyu Z07MC No.Real Estate 175]
Development
Co. Ltd.Shenzhen
Evergreen
Real Estate
Consulting
Co. Ltd.Weihai
Fenghe
Commercial
Operation
Management
Co. Ltd.Huangshi The Company None Litigation Disputes over 492 NO Dismiss / /
Duolong unfair the appeal
Yiwu Small competition and uphold
Commodity [(2020) Z07MZ the original
Wholesale No. 2745] verdict
City
Management
Co. Ltd.ZHANG The Company None Litigation Disputes over 492 NO Trial has / /
Xizhong unfair started but
CHEN competition no
Zhihua and trademark judgment
infringement has been
[(2020) Z07MZ made
No. 2897]
ZHANG The Company None Litigation Disputes over 492 NO Trial has / /
Xizhong trademark started but
CHEN infringement no
Zhihua Huai and unfair judgment
An competition has been
Chuangda [(2020) Z07MZ made
Yiwu No.3196]
International
Trade City
Co. Ltd.HUANG
Keyu CHEN
Jianzhong
Anhui The Company None Litigation Disputes over 492 NO The appeal / /
Zhongheng unfair was
Business competition rejected
Developmen [(2020) Z07MZ and the
t Co. Ltd. No. 3746] original
verdict was
upheld.The Chongqing None Litigation Disputes over 792 NO No / /
Company Guosheng unfair hearings
Foundation competition have not
Investment [(2020) been held
Co. Ltd. Z07MC No.Chongqing 305]
Wanrun
Property
Service Co.Ltd.The Yiwu Angxiao None Litigation Disputes over 792 NO No / /
Company Market unfair hearings
Development competition have not
Co. Ltd. [(2020) been held
Longchuan Z07MC No.County 307]
Yuegang Real
Estate
Development
Co. Ltd.Longchuan
County
Yuegang
Industrial Co.Ltd. Huizhou
Heyun
Industrial Co.Ltd.Longchuan
County
Haojiado Yiwu
Small
Commodity
Wholesale
Co. Ltd.The Zhejiang Yiwu None Litigation Disputes over 792 NO No / /
Company Chuanglian unfair hearings
Market competition have not
Investment [(2020) been held
Management Z07MC No.Co. Ltd. 374]
Hunan Zotye
Real Estate
Development
Co. Ltd. Deng
Shenping
Wang Zhiyong
The Zhejiang Yiwu None Litigation Disputes over 492 NO No / /
Company Chuanglian unfair hearings
Market competition have not
Investment [(2020) been held
Management Z0782MC No.Co. Ltd. 18412]
Linqing Yiwu
Commercial
City Co. Ltd.The Jiangxi Wuhua None Litigation Disputes over 492 NO No / /
Company Comprehensiv unfair hearings
e Market Co. competition have not
Ltd. Jiangxi [(2020) been held
Wuhua Z0782MC No.Comprehensiv 18529]
e Market Co.Ltd.Zhejiang Yiwu China None Litigation Disputes over 1000 NO Trial has / /
Yiwugou Commodity unfair started but
E-commerce City Big Data competition no
Co. Ltd. Co. Ltd. [(2020) judgment
Z01MC No. has been
2202] made
Bank of The Company None Litigation Dispute over 1136 11062.03 Transferre
China and letter of credit 7.57 d to Yiwu
Commodities Public
City Trade Security
Bureau
and the
plaintiff's
case
acceptanc
e fee
refunded.(iii) Other descriptions
□Applicable √Not applicable
XI. Punishments of and rectifications by the Listed Company and its directors
supervisors senior officers actual controller and acquirers
□Applicable √Not applicable
XII. Credit standing of the Company and its controlling shareholder and actual
controller
√Applicable □Not applicable
There was no outstanding court judgment or overdue debt of a large amount involving the
Company or its controlling shareholder or actual controller during the reporting period.XIII. Incentive stock option plans employee stock ownership plans and other
employee incentives granted by the Company and the impact thereof
(i) Relevant incentive matters have been disclosed in the temporary announcement and
there is no progress or change in subsequent implementation.√Applicable □Not applicable
Overview of the matter Query website
On October 23 2020 the twenty-third meeting of the eighth
session of the Company 's board of directors passed the Proposal
on the Company's 2020 Restricted Stock Incentive Plan (Draft) and
Its Summary Proposal on the Measures for the Evaluation and
Management of the Implementation of the Company's 2020
Restricted Stock Incentive Plan Proposal on Requesting the
General Meeting of Shareholders to Authorize the Board of
Directors to Handle Issues Related to Equity Incentives . The
For details please refer to
independent directors of the Company issued relevant
the Company 's announcement
independent opinions.on the website of the Shanghai
On October 23 2020 the sixth meeting of the eighth board of
Stock Exchange
supervisors of the Company deliberated and approved the
(www.sse.com.cn) on October
Proposal on the Company's 2020 Restricted Stock Incentive Plan
24 2020.
(Draft) and its Summary The Proposal on the Implementation
Evaluation and Management Measures for the Company's 2020
Restricted Stock Incentive Plan Proposal on Verification of the List
of Incentive Objects of the Company's 2020 Restricted Stock
Incentive Plan. The board of supervisors issued relevant
verification opinions.Independent financial consultants lawyers and other
intermediary agencies issued corresponding opinions.On November 18 2020 it received the Approval for For details please refer to
Approving Zhejiang China Commodity City Group Co. Ltd. to the Company 's announcement
implement the 2020 restricted stock incentive plan issued by the on the website of the Shanghai
State-owned Assets Supervision and Administration Office of the Stock Exchange
People's Government of Yiwu City forwarded by Yiwu China (www.sse.com.cn) on
Commodity City Holdings Ltd. (Yiwu SASAOF〔2020〕51). November 20 2020.From November 20 2020 to November 29 2020 the list of
incentive objects and positions of the 2020 restricted stock
incentive plan were internally publicized. Within the time limit of For details please refer to
the publicity the board of supervisors of the Company did not the Company 's announcement
receive any objection from any organization or individual or bad on the website of the Shanghai
feedback without feedback record. On November 30 2020 the Stock Exchange
Board of Supervisors of the Company issued the Examination (www.sse.com.cn) on
Opinions and Public Statement of the Board of Supervisors on the December 1 2020.List of Incentive Objects of the Company's 2020 Restricted Stock
Incentive Plan.On December 10 2020 the Company’s 2020 fifth
extraordinary general meeting of shareholders reviewed and
approved the Proposal on the Company's 2020 Restricted Stock
For details please refer to
Incentive Plan (Draft) and its Summary Proposal on the Measures
the Company 's announcement
for the Evaluation and Management of the Implementation of the
on the website of the Shanghai
Company's 2020 Restricted Stock Incentive Plan Proposal on
Stock Exchange
requesting the general meeting of shareholders to authorize the
(www.sse.com.cn) on
board of directors to handle issues related to equity incentives and
December 11 2020.also disclosed the Self-inspection Report on the Company's 2020
Restricted Stock Incentive Plan Insider Information on the
Purchase and Sale of Company Stocks by Insiders .On December 11 2020 the twenty-sixth meeting of the
eighth session of the Company's board of directors passed the
Proposal on Granting Restricted Shares to Incentive Objects for
the First Time. The independent directors of the Company issued
For details please refer to
relevant independent opinions.the Company 's announcement
On December 11 2020 the seventh meeting of the
on the website of the Shanghai
Company 's eighth board of supervisors passed the Proposal on
Stock Exchange
Granting Restricted Stocks to Incentive Objects for the First Time.(www.sse.com.cn) on
The Board of Supervisors issued the Verification Opinions of the
December 12 2020.Board of Supervisors on Matters Related to the First Grant of the
Company's 2020 Restricted Stock Incentive Plan.Independent financial consultants lawyers and other
intermediary agencies issued corresponding opinions.On January 15 2021 the Company received the Securities For details please refer to
Change Registration Certificate issued by the Shanghai Branch of the Company 's announcement
China Securities Depository and Clearing Co. Ltd. and the on the website of the Shanghai
Company completed the registration of the first grant of restricted Stock Exchange
stocks to incentive objects. (www.sse.com.cn) on January
19 2021.(ii) Incentives that have not been disclosed in the temporary announcements or had
further progresses
Incentive stock option
□Applicable √Not applicable
Other descriptions
□Applicable √Not applicable
Employee stock ownership plans
□Applicable √Not applicable
Other incentives
□Applicable √Not applicable
XIV. Material related-party transactions
(i) Related-party transactions relating to regular corporate operation
1. Matters that have been disclosed in the temporary announcements and had no
further progresses or changes
□Applicable √Not applicable
2. Matters that have been disclosed in the temporary announcements but had
further progresses or changes
□Applicable √Not applicable
3. Matters that have not been disclosed in the temporary announcements
√Applicable □Not applicable
Unit: RMB
Reason
s for the
large
differen
Percenta ce
Related Contents
Type of Price of Amount of ge in the betwee
transactio of Mark
related-p Pricing related-p related-par amount Settlem n the
n party of Relations related-p et
arty principl arty ty of similar ent price of
related hip arty M/Pri
transacti e transacti transactio transacti method the
transactio transactio ce
on on n ons transact
n n
(%) ion and
referenc
e
market
price
MDG Controlli Other Provide Market 836793. 43.43 Account
ng inflows office price 82 transfer
sharehol space
der of the collect
Compan rent and
y’s property
largest managem
sharehol ent fees
der
Yourworld Other Entrusted Negotia 102059 52.97 Account
Internatio inflows managem ted 1.87 transfer
nal ent fees price
Conferen and
ce license
Center fees
subordina
ted to
Yiwu
Market
Developm
ent Group
Yiwu Acceptan Cash Market 69300.0 3.60 Account
Security ce of security price 0 transfer
Service labor service
Co. Ltd. service for the
business
outlets of
the
currency
exchange
company
/ / 192668 100.00 / / /
Total
5.69
Return of large-value goods sales
Illustratio n on related-party transactions
(ii) Related transactions in the acquisition or sale of assets or equity
1. Matters that have been disclosed in the temporary announcements and had no
further progresses or changes
√Applicable □Not applicable
Overview of the matter Query website
The Company transferred its wholly-owned For details please refer to the
subsidiary Yiwu China Commodity City Property Announcement on the Proposed Transfer of Part
Development Co. Ltd. and Pujiang Lvgu Real of the Equity Interests in a Wholly-owned
Estate Co. Ltd. 51% of the shares each to its Subsidiary and Related Transactions
controlling shareholder CCCH for 2.232 billion (Announcement No.: L2020) disclosed on the
yuan. website of the Shanghai Stock Exchange
During the reporting period the Company (www.sse.com.cn) on June 13 2020. -048) and
has received a transfer payment of 2.232 billion the Announcement on the Progress of the
yuan from CCCH. CCCP and Pujiang Lvgu have Transfer of Part of the Equity in a Wholly Owned
completed the procedures for registration of Subsidiary on July 16 2020 (Announcement
change with the Administration for Market No.: L2020-057).Regulation.2. Matters that have been disclosed in the temporary announcements but had
further progresses or changes
√Applicable □Not applicable
(1) The Company received the transfer of 35.72% equity of Zhejiang Huajie Investment
Development Co. Ltd. held by Shanghai Yuantong Jiaolong Investment Development (Group) Co.Ltd. The Company has transferred a 20.68% stake in Zhejiang Huajie Investment Development Co.Ltd. held by Yiwu International Land Port Group Co. Ltd. For details please refer to the
Announcement on the Progress of External Investment and Related -Party Transactions
(Announcement No. Temporary 2020-018).
During the reporting period Zhejiang Huajie Investment Development Co. Ltd. has completed
the relevant industrial and commercial change registration procedures.
(2) In order to meet the needs of Handing Shangbo a wholly-owned subsidiary of its subsidiary
CCCP to develop a real estate project on the east side of the intersection of Fotang Avenue and
Shuangfeng Road Fotang Town Yiwu the Company provides Handing Shangbo with financial
assistance of no more than RMB 490 million and the Company's controlling shareholder CCCH will
provide the same proportion of financial assistance to Handing Commercial Bo in accordance with
its indirect shareholding ratio. For details please refer to the Announcement on Providing External
Financial Assistance and Related Party Transactions (Announcement Number: L2020-098).As of the end of the reporting period the Company has provided RMB 472 million in financial
assistance and CCCH has provided RMB 491 million in financial assistance.3. Matters that have not been disclosed in the temporary announcements
□Applicable √Not applicable
4. If any agreement on the operating results is involved the achievement of
operating results during the reporting period shall be disclosed
□Applicable √Not applicable
(iii) Related-party transactions arising from joint external investment
1. Matters that have been disclosed in the temporary announcements and had no
further progresses or changes
□Applicable √Not applicable
2. Matters that have been disclosed in the temporary announcements but had
further progresses or changes
□Applicable √Not applicable
3. Matters that have not been disclosed in the temporary announcements
□Applicable √Not applicable
(iv) Related-party credits and debts
1. Matters that have been disclosed in the temporary announcements and had no
further progresses or changes
□Applicable √Not applicable
2. Matters that have been disclosed in the temporary announcements but had
further progresses or changes
□Applicable √Not applicable
3. Matters that have not been disclosed in the temporary announcements
□Applicable √Not applicable
(v) Others
□Applicable √Not applicable
XV. Material contracts and performance thereof
(i) Trusteeship contracting and leases
1. Hosting
□Applicable √Not applicable
2. Contracting
□Applicable √Not applicable
3. Renting
□Applicable √Not applicable
(ii) Guarantees
√Applicable □Not applicable
Unit: RMB10000
External guarantees provided by the Company (excluding those provided for the subsidiaries)
Guarant Relation Guara Guara Date of Guara Guara Type Whet Is the Overd Is Is it a Relate
eeing ship nteed nteed guaran ntee ntee of her guara ue there related- d
party between party amoun tee Startin Expiry guara the ntee amou a party Relatio
the t (signin g date date ntee guara overd nt of count guarant nship
guarant g date ntee ue the er ee
or and of the has guara guara
the agree been ntee ntee
Listed ment) fulfille
Compan d
y
Corpora The Huang 6316 August Augus Augus Joint Yes Joint
te Compan yuan 5.83 13 t 23 t 22 and NO NO NO venture
y itself Shang 2019 2022 2024 sever
bo al
liabilit
y
guara
ntee
Corpora The Cheng 8647 Novem Septe Septe Joint Yes Joint
te Compan zhen .58 ber 26 mber mber and NO NO NO venture
y itself Propert 2019 22 21 sever
y 2022 2024 al
liabilit
y
guara
ntee
Corpora The Yiwu 2340 Decem July 1 Dece Joint Yes Yes Joint
te Compan Shangl 5.33 ber 16 2015 mber and NO NO venture
y itself v 2015 15 sever
2026 al
liabilit
y
guara
ntee
Corpora The Yiwu 563.5 August Dece Dece Joint Yes Yes Joint
te Compan Shangl 0 13 mber mber and NO NO venture
y itself v 2020 25 24 sever
2020 2022 al
liabilit
y
guara
ntee
Hangzh Wholly-o House 1617 Joint NO
ou wned purcha .01 and NO NO NO
Shangb subsidia ser sever
o ry al
Nanxing liabilit
y
guara
ntee
Amount of guarantees made during the reporting -87989.14
period (excluding the guarantees provided for
subsidiaries)
Balance of guarantees at the end of the reporting 97399.25
period (A) (excluding the guarantees provided for
subsidiaries)
The guarantee of the Company and its subsidiaries to the subsidiaries
Amount of guarantees provided for subsidiaries
during the reporting period
Balance of guarantees provided for subsidiaries
at the end of the reporting period (B)
Total guarantees provided by the Company (including those provided for the subsidiaries)
Total amount of guarantees (A+B) 97399.25
Ratio of the total amount of guarantees to the 7.18
Company’s net assets (%)
Among them
Amount of guarantees provided for shareholders
actual controller and their related parties (C)
Amount of guarantees provided directly or 71813.41
indirectly for the debtors whose debt-to-asset ratio
exceed 70% (D)
Portion of total amount of guarantees in excess of
50% of net assets (E)
Total (C+D+E) 71813.41
Statement on the joint and several liability for
satisfaction that may be assumed due to
outstanding guarantees
Statement on guarantees 1. According to the resolution of the 65th meeting of the 7th
Board of Directors on Jul 23 2019 the Group applied to the
Yiwu Branch of ICBC and Yiwu Branch of SPDB for
RMB1bn loans respectively for Huangyuan Shangbo and
provided guarantees for the loans based on its shareholding
ratio.As of December 31 2020 Huangyuan Shangbo
actually borrowed RMB 674889305.56 from Yiwu Branch
of Industrial and Commercial Bank of China and RMB
614209347.22 from Shanghai Pudong Development Yiwu
Branch (December 31 2019: RMB 700923611.11 RMB
981198055.56) ).According to the guarantee contract it
assumes a guarantee liability of RMB 330695759.72 for
the Yiwu Branch of Industrial and Commercial Bank of
China and a guarantee liability of RMB 300962580.14 for
the Yiwu Branch of Shanghai Pudong Development Bank
(December 31 2019: RMB 343452569.44 RMB
480787047.22).2. According to the resolution of the fourth meeting of the
8th Board of Directors on Nov 4 2019 the Group applied to
the Yiwu Branch of Hengfeng Bank for a loan with a total
amount no higher than RMB1.63bn for Chengzhen Property
and provided guarantee based on its shareholding ratio.The guarantee was a joint and several liability guarantee
the maximum amount of guarantee was RMB391.2million
and the term was from the maturity date of the debt agreed
under the corresponding loan contract until two years after
the maturity date of the debt agreed in the loan contract with
the latest expiration date among all loan contracts.As of
December 31 2020 Chengzhen Real Estate actually
borrowed RMB 360315776.39 from Yiwu Branch of
Evergrowing Bank (December 31 2019: RMB
839702769.44).In accordance with the guarantee contract
it assumed a guarantee liability of RMB 86475786.33 for
Yiwu Branch of Evergrowing Bank (December 31 2019:
RMB 201528664.67).3. According to the resolution of the 15th meeting of the 7th
Board of Directors on Jul 1 2015 the Group applied to the
Yiwu Branch of ABC for an RMB750million loan for Yiwu
Shanglv and provided guarantee based on its shareholding
ratio. The guarantee was a joint and several liability
guarantee the maximum amount of guarantee was
RMB367.5million and the term was 11 years.As of
December 31 2020 Yiwu Shanglvactually borrowed RMB
477659739.88 from banks (December 31 2019: RMB
587412606.21).In accordance with the guarantee contract
it assumed a guarantee liability of RMB 234053272.54 to
the Yiwu Branch of Agricultural Bank of China (December
31 2019: RMB 287832177.04).Yiwu State-owned Capital
Operation Co. Ltd. provided a counter guarantee for this
guarantee.4. According to the resolution of the nineteenth meeting of
the eighth session of the board of directors on Augus t 13
2020 the Group applied for a loan of no more than RMB
100 million from Bank of Communications Co. Ltd. Yiwu
Branch for Yiwu Shanglv and provided guarantees in
accordance with the equity ratio. The guarantee method
was the joint liability guarantee which has a maximum
amount of RMB 49 million. The guarantee period is from the
date of the expiry of the debt performance period agreed in
the independent contract to two years after the date of the
expiration of the debt performance period of the last due
principal debt under all the main contracts.As of December
31 2020 Yiwu Shanglv actually totally borrowed RMB
11500000.00 from banks (December 31 2019: RMB 0).In
accordance with the guarantee contract it assumed a
guarantee liability of RMB 5635000.00 to the Yiwu
Branch of the Agricultural Bank of China (December 31
2019: RMB 0).Yiwu China Commodity City Holdings Limited
provided counter-guarantee for this guarantee.5. According to relevant regulations before the purchaser of
the commercial housing completing the housing ownership
certificate the Group selling the commercial housing shall
provide the bank with a mortgage guarantee for the
purchaser. As of December 31 2020 the unsettled
guarantee amount is RMB 16170141.08. (December 31
2019: RMB 540283351.51).Those guarantees would be
released after the issuance of the property ownership
certificates and are thus little likely to incur losses.Therefore the management believed that it was not
necessary to make provision for the guarantees .(iii) Entrust the management of the cash assets of others
1. Entrusted financial management
(1) The totality of entrusted financial management
□Applicable √Not applicable
Other information
□Applicable √Not applicable
(2) Individual entrusted financial management
□Applicable √Not applicable
Other information
□Applicable √Not applicable
(3) Entrusted financial management impairment provision
□Applicable √Not applicable
2. Entrusted Loan
(1) Total entrusted loan
√Applicable □Not applicable
Unit: RMB10000
Unexpired Overdue
Type Source of funds Amount
balance unrecovered amount
Special Export-Import 321.08
entrusted loan Bank of China
Single Self-owned 85000.00 0
Entrusted funds
Loan
Other information
√Applicable □Not applicable
1. After review and approval at the 44th meeting of the sixth board of directors of the
Company in April 2014 and the 22nd meeting of the seventh board of directors of the Company
in March 2016 the Company applied to the Export-Import Bank of China for a total loan of RMB
700 million. Special entrusted loans to market merchants are valid within 2 years from the date
of approval by the board of directors. The Company's loans to the Export -Import Bank of China
are guaranteed by MDG and Shanghai Pudong Development Bank Yiwu Branch acts as an
entrusted loan processing bank. Merchants who entrust loans are pledged with the right to use
China Commodity City.There are no new entrusted loans in this period and all entrusted loans issued in the
previous period have expired.As of December 31 2020 a total of 13 overdue loans with a total amount of RMB
3210800 have not been settled. The Company has received RMB 1632100 from China
Insurance Property and Casualty Insurance and China Xinlihe to jointly assume the guaranteed
insurance payment (amount after the auction of the right to use the store If there is any loss in
the external part the compensation shall be paid by it).2. The subsidiary CCCF entrusted the Yiwu Branch of Agricultural Bank of China Co. Ltd.to provide a working capital loan of RMB 850 million to Sunac Xinheng Investment Group Co.Ltd. for daily production and operation turnover. The annual interest rate is 6.5%. The loan has
been returned in advance in August 2015. For details please refer to the Announcement on the
Provision of Entrusted Loans (L2020-020) disclosed by the Company on the website of the
Shanghai Stock Exchange on April 16 2020 and the Announcement on the Progress of
Providing the Entrusted Loans disclosed on the website of Shanghai Stock Exchange on August
27 2020 (Provisional 2020-064)
(2) Single Entrusted Loan
√Applicable □Not applicable
Unit: RMB10000
Trust Typ Entr Entr Entru Fund Fund Remun Annu Exp Actu Act Statu Entr Amo
ee e of uste uste sted sourc sourc eration alize ecte al ual tory uste unt of
entr d d loan es es determ d d profi reco proce d provi
uste loan loan termi Sour Invest ination rate retur t very dures loan sion
d amo start natio ce ment Metho of n and prog for
loan unt date n d retur (If loss ram impai
date n any) rmen
t (if
any)
Yiwu Wor 850 April Augu Self- Suppl 6.5% 117 850 Yes
Bran king 00 16 st 26 ow ne emen 8.69 00 NO
ch of capit 202 2020 d t
Agric al 0 funds corpo
ultura loan rate
l liquidi
Bank ty
of
Chin
a
Co.Ltd.Other information
□Applicable √Not applicable
(3) Entrusted loan impairment provision
√Applicable □Not applicable
Item Opening Increase in the Decrease in the Closing balance
balance current period current period
Entrusted loan RMB 185500 0 0 RMB 185500
impairment provision
3. Other information
□Applicable √Not applicable
(iv) Other material contracts
√Applicable □Not applicable
Contract
Serial
Name of contract Contracting party price
No.(RMB10000)
1 eWTP cooperative project procurement contract Alibaba (China) Co. Ltd. 5291.92
Yiwu Yindu Hotel Reconstruction and Reinforcement Zhejiang Construction Special
2 1278.40
Project Technology Engineering Co. Ltd.Yiwu Comprehensive Bonded Zone Phase I Customs
Zhejiang Public Information Industry
3 Supervision Information Equipment and System 3158.76
Co. Ltd.Integration Procurement Project Contract
Jinyuanda Construction Holdings Co.4 Yiwu Yindu Hotel Facade Renovation Project Contract 1357.59
Ltd.Technical service contract for the second phase of cloud Zhejiang Public Information Industry
5 3030
storage project of Smart Security of Mall Group Co. Ltd.Yiwu Comprehensive Bonded Zone Sales Exhibition
Zhejiang Rongcheng Construction
6 Phase I Basement Foundation Pit Earthwork and Support 5037.71
Group Co. Ltd.Engineering Construction Contract
Earthwork and foundation pit support project in the
Yuanyang Construction Group Co.7 basement of the East Parking Building in the Second 1208.18
Ltd.District of Yiwu International Trade City
Construction contract for the power supply project of Yiwu Power Transmission and
8 Zhejiang China Commodity City Group Co. Ltd. (Phase I Transformation Engineering Co. Ltd. 2655.84
of Yiwu Comprehensive Bonded Zone) State Grid Zhejiang Yiwu Power
Supply Co. Ltd.Yiwu International Production Material Market Supporting Zhejiang World Trade Decoration
9 3464.94
Project-Hotel Decoration Project (Part I) Co. Ltd.Yiwu International Production Material Market Supporting Shenzhen Pengrun Construction
10 5575.42
Project-Hotel Decoration Project (Second Tender Section) Group Co. Ltd.Yiwu International Trade City Upgrading and
Shenzhen Golden Lighting
11 Reconstruction Project (Lighting Project) EPC Project 3100.02
Technology Co. Ltd.General Contracting Project General Contracting Contract
Contract I for the first phase of Yiwu Comprehensive China Twentieth Metallurgical Group
12 22165.80
Bonded Zone (Phase I of logistics and warehousing) Co. Ltd.Bidding section II contract for the first phase of the Yiwu
Beijing Urban Construction Group
13 Comprehensive Bonded Zone (the first phase of logistics 86711.78
Co. Ltd.and warehousing)
Shanghai Yuanyue Advertising Co.14 Advertising contract 2282
Ltd.Agreement (CCCH provides counter-guarantee for the
15 CCCH 4900
Mall Group)
Yiwu Comprehensive Bonded Zone Project Phase I Zhejiang Qiushi Engineering
16 1024.67
Project Supervision Consulting Supervision Co. Ltd.Construction Contract for Renovation of the City Parlor of Zhejiang Baisha Construction Co.17 2252.33
E2 Pavilion of Expo Center Ltd.Construction Contract for Yiwu CCC Warehouse Park Zhejiang Longsha Construction
18 10447.45
Trade Station (Construction of Warehouse 1# and 2#) Group Co. Ltd.Guarantee contract (guarantee for the working capital loan Bank of Communications Co. Ltd.19 4900
of Yiwu Shanglv) Yiwu Branch (Sub-branch)
Contract for Contracted Construction of the Auxiliary
Tianyang Construction Group Co.20 Overpass Works of Yiwu Comprehensive Bonded Zone 3667.18
Ltd.Project
XVI. Other significant matters
√Applicable □Not applicable
For details please refer to 12. Major Events of the Company and Impact on the Company's
Operation and Solvency.XVII. Actively fulfill social responsibilities
(i) Poverty alleviation by the Listed Company
□Applicable √Not applicable
(ii) Social responsibility
√Applicable □Not applicable
The Company has disclosed the 2020 Sustainability Report. For details please refer to the website
of the Shanghai Stock Exchange: www.sse.com.cn.(iii) Environmental issues
1. Statement on the environmental issues of the company listed among the key
polluters announced by the environmental protection authority and its important
subsidiaries
□Applicable √Not applicable
2. Statement on the environmental issues of the company not listed among the key
polluters
□Applicable √Not applicable
3. Explanation for the failure of the company not listed among the key polluters to
disclose environmental issues
□Applicable √Not applicable
4. Further progress or change of the environmental issues disclosed during the
reporting period
□Applicable √Not applicable
(iv) Other descriptions
□Applicable √Not applicable
XVIII. Convertible corporate bonds
□Applicable √Not applicable
Section VI. Changes in Common Shares and Shareholders
I. Changes in common stock
(i) Changes in common shares
1. Changes in common shares
During the reporting period the total number of common shares and share capital structures of the
Company remained unchanged.2. Description of changes in common shares
□Applicable √Not applicable
3. The impact of changes in common shares on financial indicators such as
earnings per share and net assets per share in the most recent year and the
most recent period (if any)
□Applicable √Not applicable
4. Other matters the Company deems it necessary to disclose or required by the
securities regulatory authority to be disclosed
√Applicable □Not applicable
On January 15 2021 the Company completed the registration of shares granted for the first
time under the 2020 restricted stock incentive plan. The total share capital of the Company
increased by 46700000 shares and the total share capital after the increase was 5489914176
shares.(ii) Changes in non-tradable shares
□Applicable √Not applicable
II. Securities issuance and listing
(i) Securities issuance as of the reporting period
√Applicable □Not applicable
Currency: million shares Currency: RMB
Stocks and Issuing Number of
Transaction
derivatives price (or Issuing Listing approved
Issuing date termination
Types of interest number date listing
date
securities rate) transactions
Convertible corporate bonds separate transaction convertible bonds corporate bonds
19 YIWU June 18 June 5
June 3 2019 4.30% 8 8
CCC 01 2019 2022
19 YIWU September October September
3.99% 7 7
CCC 02 26 2019 15 2019 27 2022
Notes on the issuance of securities as of the reporting period (for bonds with different interest rates
during the duration please specify separately):
√Applicable □Not applicable
In accordance with the CSRC License [2019] 380 document issued by the China Securities
Regulatory Commission on March 14 2019 the Company publicly issued RMB 800000000 of
corporate bonds on June 3 2019. The face value of the current bonds is RMB 100 and the coupon
rate is 4.30 %. It was listed and t raded on the Shanghai Stock Exchange on June 18 2019. The
abbreviation of the bond is 19XS01 and the bond code is 155450.In accordance with the document Zheng Jian Li [2019] No. 380 issued by the China Sec urities
Regulatory Commission on March 14 2019 the Company publicly issued RMB 700000000 of
corporate bonds on September 26 2019. The face value of the current bonds is RMB 100 and the
coupon rate is 3.99%. It was listed and traded on the Shanghai Stock Exchange on October 15
2019. The abbreviation of the bond is 19XS02 and the bond code is 155750.(ii) The total number of common shares of the Company changes in the shareholder
structure and changes in the Company's assets and liabilities structure
□Applicable √Not applicable
(iii) Existing internal employee shares
□Applicable √Not applicable
III. Shareholders and actual controllers
(i) Total number of shareholders
Number of common shareholders as of the end of the 222616
reporting period
The total number of common shareholders (households) 208131
at the end of the previous month before the disclosure of
the annual report
(ii) Shareholdings of the top 10 shareholders and top 10 holders of tradable shares (or
shareholders not subject to trading restrictions)
Unit: number of shares
Shares held by top 10 shareholders
Number of Number of
Pledge or
Change during shares held at non-tradable
Shareholder freezing shares held Shareholders the reporting the end of the (%)
(full name) Nature
period reporting Shares
Number
period Status
Yiwu China 3038179392 3038179392 55.82 State-owned
Commodities legal person
0 None 0
City Holdings
Limited
China -49250374 217468111 4.00 Unknown
Securities
0 None 0
Finance Co.Ltd.Zhejiang 0 147466528 2.71 State-owned
Financial legal person
0 None 0
Development
Co. Ltd.Central Huijin 0 66371000 1.22 State-owned
Investment 0 None 0 legal person
Ltd.Bosera Funds 0 27672800 0.51 Unknown
－Agricultural
Bank of China
－Bosera
China 0 None 0
Securities
Financial
Assets
Management
Scheme
E Fund－ 0 27672800 0.51 Unknown
Agricultural
Bank of China
－E Fund
China 0 None 0
Securities
Financial
Assets
Management
Scheme
Dacheng Fund 0 27672800 0.51 Unknown
－Agricultural
Bank of China
－Dacheng
China 0 None 0
Securities
Financial
Assets
Management
Scheme
Harvest Fund 0 27672800 0.51 Unknown
－Agricultural
Bank of China
－Harvest
China 0 None 0
Securities
Financial
Assets
Management
Scheme
GF Fund－ 0 27672800 0.51 Unknown
Agricultural
Bank of China
－GF China
0 None 0
Securities
Financial
Assets
Management
Scheme
Zhong Ou 0 27672800 0.51 Unknown
AMC－
Agricultural
Bank of China
－Zhong Ou
0 None 0
China
Securities
Financial
Assets
Management
Scheme
Southern 0 27672800 0.51 Unknown
Asset
Management
－Agricultural
Bank of China
－Southern 0 None 0
China
Securities
Financial
Assets
Management
Scheme
ICBC Credit 0 27672800 0.51 Unknown
Suisse Asset
Management
－Agricultural
Bank of China
－ICBC Credit 0 None 0
Suisse China
Securities
Financial
Assets
Management
Scheme
Shares held by top 10 holders of tradable shares
Number of Type and quantity of shares
Shareholder tradable
shares held Category Number
Yiwu China Commodities City 3038179392 RMB-denominated common 3038179392
Holdings Limited share
China Securities Finance Co. 217468111 RMB-denominated common 217468111
Ltd. share
Zhejiang Financial Development 147466528 RMB-denominated common 147466528
Co. Ltd. share
Central Huijin Investment Ltd. 66371000 RMB-denominated common 66371000
share
Bosera Funds－Agricultural 27672800 27672800
Bank of China－Bosera China RMB-denominated common
share
Securities Financial Assets
Management Scheme
E Fund－Agricultural Bank of 27672800 27672800
China－E Fund China Securities RMB-denominated common
share
Financial Assets Management
Scheme
Dacheng Fund－Agricultural 27672800 27672800
Bank of China－Dacheng China RMB-denominated common
share
Securities Financial Assets
Management Scheme
Harvest Fund－Agricultural Bank 27672800 27672800
of China－Harvest China RMB-denominated common
share
Securities Financial Assets
Management Scheme
GF Fund－Agricultural Bank of 27672800 27672800
China－GF China Securities RMB-denominated common
share
Financial Assets Management
Scheme
Zhong Ou AMC－Agricultural 27672800 27672800
Bank of China－Zhong Ou China RMB-denominated common
share
Securities Financial Assets
Management Scheme
Southern Asset Management－ 27672800 27672800
Agricultural Bank of China－ RMB-denominated common
Southern China Securities share
Financial Assets Management
Scheme
ICBC Credit Suisse Asset 27672800 27672800
Management－Agricultural Bank
RMB-denominated common
of China－ICBC Credit Suisse share
China Securities Financial
Assets Management Scheme
Explanation on the Zhejiang Finance Development Co. Ltd. holds 9.44% of the shares of Yiwu State -owned
relationship or Capital Operation Co. Ltd. the controlling shareholder of Yiwu China Commodity City
concerted action Holding Limited the controlling shareholder of Yiwu Market Development Group Co. Ltd.between the above
shareholders
Explanation on the None
preferred
shareholders
whose voting
rights had been
restituted and the
quantity of shares
held thereby
Number of shares held by the top 10 shareholders subject to trading restrictions and the trading
restrictions
□Applicable √Not applicable
(iii) Strategic investors or general legal persons became the top 10 shareholders due to
the placement of new shares.□Applicable √Not applicable
IV. Controlling shareholder and actual controller
(i) Controlling shareholder
1. Legal person
√Applicable □Not applicable
Name Yiwu China Commodities City Holdings
Limited
The person in charge or legal representative of the unit ZHAO Wenge
Date of establishment October 29 2019
Main business State-owned shareholding platform
Shareholdings of other domestic and overseas listed None
companies that hold or participate in shares during the
reporting period
Other statements None
2. Natural person
□Applicable √Not applicable
3. Special statement that the Company does not have a controlling shareholder
□Applicable √Not applicable
4. Index and date of controlling shareholder changes during the reporting period
√Applicable □Not applicable
On February 26 2020 the Company received a notice from the controlling shareholder Market
Group. According to the approval of the State-owned Assets Supervision and Administration Office
of the People's Government of Yiwu it decided to t ransfer 3038179392 shares of Commodity City
held by it to CCCH for free. For details please refer to the Indicative Announcement on the
Gratuitous Transfer of State-owned Equity of Controlling Shareholders (L2020-008) disclosed on
February 27 2020.On March 2 2020 MDG and CCCH signed the Equity Free Transfer Agreement. For details
please refer to the Announcement on the Progress of the Gratuitous Transfer of State-owned Equity
of Controlling Shareholders (L2020-009) disclosed on March 5 2020.On May 11 2020 CCCH received the Confirmation of Transfer Registration issued by China
Securities Depository and Clearing Co. Ltd. confirming that the share transfer registration
procedures for the free transfer of state-owned shares have been completed. For details please
refer to the Announcement on Completion of Transfer Registration of Controlling Shareholder's
State-owned Equity Free Transfer (L2020-038) disclosed on May 13 2020.5. Block diagram of the property rights and control relationship between the
Company and the controlling shareholder
√Applicable □Not applicable
(ii) The actual controller
1 Legal person
√Applicable □Not applicable
Name State-owned Assets Supervision and
Administration Office of the People’s
Government of Yiwu
The person in charge or legal representative of the unit YU Huazhong
Date of establishment March 26 2009
Main business State-owned capital management and
state-owned equity management
Shareholdings of other domestic and overseas listed None
companies that hold or participate in shares during the
reporting period
Other statements None
2 Natural person
□Applicable √Not applicable
3 Special explanation that the Company does not have an actual controller
□Applicable √Not applicable
4 Index and date of actual controller change during the reporting period
□Applicable √Not applicable
5 Block diagram of the property rights and control relationship between the Company
and the actual controller
√Applicable □Not applicable
6 The actual controller controls the Company through trust or other asset
management methods.□Applicable √Not applicable
(iii) Other introductions of controlling shareholders and actual controllers
□Applicable √Not applicable
V. Other corporate shareholders holding more than 10% of the shares
□Applicable √Not applicable
VI. Description of share restriction reduction
□Applicable √Not applicable
Section VII. Preferred Shares
□Applicable √Not applicable
Section VIII. Directors Supervisors Senior Managers and Employees
I. Changes in shareholding and remuneration
(i) Changes in shareholding and remuneration of current and resigned directors supervisors and senior executives during the reporting
period
√Applicable □Not applicable
Unit: Ten Thousand Shares
The
Number Number
amount of Total pre-tax
of shares of Remuneration
stock remuneration
held at shares received from
Start date Term end increase Reasons for received from the
Name Position (Note) Gender Age the held at related parties
of tenure date or change Company during
beginning the end of the
decrease the reporting period
of the of the Company
during the (RMB 10000)
year year
year
ZHAO Board Male 53 September 4 4 49.20 NO
Wenge chairman 27 2018
WANG Vice Chairman Male 49 March 8 0 0 49.20 NO
Dong and General 2019
Manager
WANG Director Male 49 August 27 0 0 0 Yes
Chunming 2019
LI Director Male 49 May 12 0 0 0 Yes
Chengqun 2014
XU Hang Director Male 47 December 0 0 41.82 NO
Secretary of 12 2017
the Board
GU Zhixu Director Male 33 December 0 0 0 NO
10 2020
ZHU Hang Director Male 33 December November 0 0 0 NO
16 2016 19 2020
MA Independent Male 53 August 27 0 0 7.2 NO
Shuzhong director 2019
HONG Independent Male 55 May 22 0 0 4.8 NO
Jianqiao director 2020
JIN Independent Male 45 May 22 September 0 0 2.4 NO
Yanghua director 2020 2 2020
LIU Independent Male 57 May 12 April 28 0 0 2.4 NO
Zhiyuan director 2014 2020
WU Yabin Independent Male 47 August 27 March 17 0 0 1.2 NO
director 2019 2020
HUANG Supervisor Male 52 August 19 September 0 0 0 NO
Ping 2016 15 2020
JIN Xiaojia Supervisor Male 33 December 0 0 0 Yes
16 2016
WANG Supervisor Female 41 August 27 0 0 0 Yes
Gaiying 2019
WANG Supervisor Male 49 October 0 0 0 Yes
Jinjian 26 2020
FANG Min Employee Male 36 December 0 0 16.10 NO
supervisor 8 2020
JIN Employee Male 43 December 0 0 18.25 NO
Yongsheng supervisor 8 2020
ZHANG Employee Male 47 August 27 December 0 0 48.26 NO
Yuhu supervisor 2019 8 2020
LIU Employee Female 47 August 27 December 5 8 3 Buying 44.93 NO
Zhenting supervisor 2019 8 2020 shares in the
secondary
market
JIN Vice general Male 51 September 0 0 31.98 NO
Gengzhong manager 18 2020
WU Xiubin Vice general Male 50 July 17 0 0 41.82 NO
manager 2020
ZHANG Vice general Male 52 July 7 0 0 41.82 NO
Qizhen manager 2017
WEI Gang Vice general Male 33 September 0 0 41.82 NO
manager 19 2016
ZHOU Vice general Male 45 July 3 0 0 39.38 NO
Long manager 2020
ZHAO Financial Female 48 May 12 5.01 5.01 36.90 NO
Difang Manager 2014
Total / / / / / 14.01 17.01 3 / 519.48 /
Name Main working experience
ZHAO He used to be Deputy Secretary of the Party Committee and mayor of Chi'an Town Yiwu City Deputy Secretary of the Party Comm ittee Vice Chairman and
Wenge General Manager of the Company and is currently Secretary of the Party Committee and Chairman of the Company.WANG He used to be a member and deputy director of the Party Committee of Yiwu SASAO and deputy director (concurrently) of the management committee of the
Dong State-owned Assets Operation Center and is currently the deputy secretary of the Company’s party committee vice chairman and gene ral manager.WANG He used to be Secretary of the Party Committee and Chairman of Yiwu Water Affairs Construction Group Co. Ltd. and is currently Secretary of the Party
Chunming Committee and Chairman of Yiwu Market Development Group Co. Ltd. and Director of the Company.LI He is currently Deputy Secretary of the Party Committee Vice Chairman General Manager and Director of Yiwu Market Development Group Co. Ltd.Chengqun
XU Hang He used to be deputy manager manager and representative of securities affairs of the Company's investment and securities dep artment and manager and
representative of securities affairs of the Company's securities legal department and is currently a director and secretary of the Company.GU Zhixu He used to be the project manager of Business Division 4 of Tianjian Accounting Firm the business manager of Investment Divi sion I of Zhejiang Financial Holding
Investment Management Co. Ltd. the senior financial manager of the Planning and Finance Department of Zhejiang Financial Ho lding Co. Ltd. and the senior
financial manager of the Planning and Finance Department of Zhejiang Fi nancial Development Co. Ltd. and is currently assistant to the director of the
Comprehensive Office of Zhejiang Finance Development Co. Ltd. and director of the Company.MA He used to be a lecturer and associate professor at Zhejiang University and is currently a professor at Zhejiang University independent director of the Company
Shuzhong and independent director of Hangzhou Silan Microelectronics Co. Ltd.HONG He is currently the dean of the Accounting Department of the School of Management of Fudan University an executive director of the China Accounting Society a
Jianqiao director of the China Auditing Society and a director of the China Accounting Review. He is currently an independent director of the Company and concurrently an
independent director of Shanghai Laiyifen Co. Ltd. Shanghai Jinjiang International Industrial Investment Co. Ltd. China Tianying Co. Ltd. and Jiangsu Boqian
New Materials Co. Ltd.JIN He is currently the vice president of Zhejiang Gongshang University the dean of the Institute of Organizational Behavior and Entrepreneurship Management the
Yanghua vice president of the Zhejiang Society of Behavioral Sciences the Zhejiang Zhijiang Youth Social Science Scholar and the Zhejiang Provincial Youth and
Middle-aged Discipline Leader. He resigned as an independent director of the Company on September 2 2020 (before the Company elects a new independent
director he still performs his duties as an independent director).ZHU Hang He used to be the investment management post of the Investment Management Department of Zhejiang Financial Development Company the investment manager
and senior investment manager of the financial management department of Zhejiang Financial Holding Co. Ltd. and the assistant to the general manager of the
financial management department. He resigned as a director of the Company on November 19 2020.LIU He has served successively as the dean of the Accounting Department of Nankai University the deputy director of the Corporate Governance Center the deputy
Zhiyuan dean of the School of Business and other academic positions such as a professor of accounting at the School of Business of Nankai University a doctoral
supervisor and a member of the National Accounting Graduate Professional Degree Education Steering Committee. He resigned as an independent director of the
Company on April 28 2020.WU Yabin He used to be the Dean of the School of International Business and Economics of the University of International Business and Economics and the Executive Dean
of the Global Value Chain Research Institute of the University of International Business and Economics. He resigned as an independent director of the Company on
March 17 2020.JIN Xiaojia He used to be the senior auditor of the third audit department of Lixin Certified Public Accountants (Zhejiang Branch) the accounting supervisor of the Finance
Department of Yiwu Transportation Investment and Construction Group and the current supervisor and chairman of the board of supervisors of the Company.WANG She used to be the project manager of the audit department of Zhejiang New Century Certified Public Accountants and is current ly a full-time supervisor and
Gaiying company supervisor of the Supervisor Service Center of the State-owned Assets Supervision and Administration Office of Yiwu City.WANG He used to be the deputy general manager of Yiwu China Commodity City Property Development Co. Ltd. and is currently the ge neral manager and company
Jinjian supervisor of Yiwu China Commodity City Property Development Co. Ltd.FANG Min He used to be a clerk in the Company’s Huangyuan market branch a business commissioner of the Company’s human resources depa rtment (party construction
office) and currently serves as the Company’s human resources department (party cons truction office) business supervisor and employee supervisor of the
Company.JIN He used to be the head of internal control of the Company's supervision and audit department the manager of the financial de partment of the Company's Yawu
Yongsheng Expo Hotel and the manager of the financial department of the Company's ocean hotel. He is currently the head of internal audit of t he Company's legal audit
department and a company supervisor.HUANG Former Secretary of Beiyuan Street Yiwu City. From August 2016 to September 15 2020 he served as a supervisor of the Company.Ping
ZHANG He used to be the general manager of the second branch of the Company's international trade city the general manager of the Company's marketing department
Yuhu the Company's market development director and general manager of the market development department and the current general manager of the Company's
strategy and development reform department. From August 2019 to December 8 2020 he served as employee supervisor of the Company.LIU She used to be the Deputy General Manager of the Fifth Branch of the Company's International Trade Mart and the General Manager of the Fifth Branch of the
Zhenting Company 's International Trade Mart. She is currently the Deputy General Manager of the Market Operation Company and HRBP. From August 2019 to December
8 2020 she served as the employee supervisor of the Company.JIN He used to be the Deputy Director of the Party Leadership Group of Yiwu Municipal Bureau of Land and Port Affairs and Port Administration the Deputy General
Gengzhong Manager of the Party Leadership Group of Zhejiang Huajie Investment Development Co. Ltd. and the Deputy General Manager of Europe Huajie Development
Co. Ltd. He is currently the deputy general manager of the Company.WU Xiubin He used to be a member of the party committee and deputy general manager of Yiwu Urban and Rural New Community Investment and Construction Group Co.Ltd. a member of the party committee and deputy general manager of Yiwu Construction Investment Group Co. Ltd. and is currently the deputy general manager of
the Company.ZHANG He used to be the Company's marketing manager and marketing director and is currently the Company's deputy general manager.Qizhen
WEI Gang He used to be the branch director of Shishi Company of China Telecom Quanzhou Branch and is currently the deputy general manager of the Company.ZHOU Served as the general manager of the supply chain business department of Chuanhua Logistics Group and Chuanhua Zhilian Co. Ltd. the general manager of the
Long industrial cluster business department of Baoneng Logistics Group Co. Ltd. and the general manager of the supply chain busi ness department of Jiangsu Private
Investment Holding Co. Ltd. and the general manager of Jiangsu Private Investment Supply Chain Management (Wuxi) Co. Ltd. and is currently the deputy general
manager of the Company.ZHAO She used to be the manager of the Company's financial department and is currently the head of the Company's finance.Difang
Statement on other matters
√Applicable □Not applicable
1. The remuneration received by some of the Company's directors and executives is the pre-paid remuneration for 2020 and the actual remuneration will be
determined after the completion of relevant assessments and the implementation of relevant procedures.2. ZHANG Yuhu LIU Zhenting FANG Min and JIN Yongsheng are the employee representative supervisors and the remuneration li sted in the table is the
total remuneration received after the annual appraisal based on the position in the Company.(ii) Equity incentives granted to directors and senior executives during the reporting period
□Applicable √Not applicable
II. Appointments of current and resigned directors supervisors and senior executives during the reporting period
(i) Position in shareholder units
√Applicable □Not applicable
Positions held in Start date of
Name of incumbent Name of shareholder unit Term end date
shareholder units tenure
ZHAO Wenge CCCH Chairman and General October 2019
Manager
WANG Dong CCCH Director February 2021
WANG Chunming MDG Board chairman July 2019
LI Chengqun MDG Vice Chairman and General February 2014
Manager
GU Zhixu Zhejiang Financial Development Co. Ltd. Planning and Finance February 2021
Department
JIN Xiaojia Yiwu State-owned Assets and State-owned Assigned full-time
Enterprise Development Service Center supervisor
WANG Gaiying Yiwu State-owned Assets and State-owned Assigned full-time
Enterprise Development Service Center supervisor
Description of the position of None
t he shareholder unit
(ii) Serving in other units
√Applicable □Not applicable
Positions held in other Start date of
Name of incumbent Names of other units Term end date
units tenure
XU Hang Yiwu China Commodities City Investment Director March 2017
Management Co. Ltd.MA Shuzhong Hangzhou Silan Microelectronics Co. Ltd. Independent director July 2016
HONG Jianqiao Shanghai Laiyifen Co. Ltd. Independent director
HONG Jianqiao Shanghai Jinjiang International Industrial Independent director
Investment Co. Ltd.HONG Jianqiao China Tianying Co. Ltd. Independent director
HONG Jianqiao Jiangsu Boqian New Material Co. Ltd. Independent director
WANG Jinjian Yiwu China Commodities City Property Chairman general January 2019
Development Co. Ltd. manager
Description of employment in other None
units
III. Remuneration of directors supervisors and senior management personnel
√Applicable □Not applicable
Decision-making procedures for the remuneration The remuneration of the Company’s remunerated directors supervisors and senior executives shall be
of directors supervisors and senior executives reviewed by the remuneration and appraisal committee of the Company’s board of directors and
submitted to the board of directors for review and approval. The remuneration of directors and
supervisors shall also be submitted to the general meeting of shareholders for review and approval.The basis for determining the remuneration of The remuneration of independent directors is determined in accordance with the Independent Director
directors supervisors and senior managers Allowance System. The Independent Director Allowance System is deliberated and formulated by the
board of directors and approved by the general meeting shareholders. The remuneration of the
Company’s directors supervisors and senior management shall be reviewed and determined by the
Board of Directors’ Compensation and Appraisal Committee in conjunction with the assessment opinions
and results of the state-owned regulatory authority and submitted to the board of directors for
deliberation.Actual payment of remuneration for directors The relevant assessment for 2020 has not yet been completed and the actual payment will be
supervisors and senior management determined after the assessment is completed and the relevant procedures are performed.The total remuneration actually received by all The actual payment of remuneration will be determined after completing the assessment and performing
directors supervisors and senior management at the relevant procedures. The salary currently paid is the pre-paid salary for 2020 totaling RMB 5194800
the end of the reporting period before tax.IV. Changes in directors supervisors and senior officers of the Company
√Applicable □Not applicable
Name Title Change Reasons for change
GU Zhixu Director Election Election
ZHU Hang Director Leaving office Due to job adjustments he resigned
from director.HONG Jianqiao Independent director Election Election
JIN Yanghua Independent director Election Election
JIN Yanghua Independent director Leaving office Due to job adjustments he resigned
from independent director.LIU Zhiyuan Independent director Leaving office Resign as an independent director at
the end of his term
WU Yabin Independent director Leaving office Due to job adjustments he resigned
from independent director.HUANG Ping Chairman of the Supervisory Board Leaving office Due to job adjustments he resigned
from Chairman of the Supervisory
Board.WANG Jinjian Supervisor Election Election
FANG Min Employee supervisor Election Election of employee supervisors
JIN Yongsheng Employee supervisor Election Election of employee supervisors
ZHANG Yuhu Employee supervisor Leaving office Due to job adjustments he resigned
from Employee Supervisor.LIU Zhenting Employee supervisor Leaving office Due to job adjustments he resigned
from Employee Supervisor.JIN Gengzhong Vice general manager Hiring Hiring
ZHOU Long Vice general manager Hiring Hiring
V. Explanation of punishments by securities regulatory agencies in the past three years
√Applicable □Not applicable
1. On December 5 2018 the Company received the Decision on Announcement and Criticism of Zhejiang China Commodity City Group Co. Ltd. and
relevant responsible persons issued by the Shanghai Stock Exchange (Shangzheng Gongchu Han [2018] No. 70). For the relevant decision letter please refer
to the Shanghai Stock Exchange website www.sse.com.cn.2. On January 29 2019 the Company received the China Securities Regulatory Commission Zhejiang Regulatory Bureau's Decision on Measures to
Issue Warning Letters to Zhejiang China Commodity City Group Co. Ltd. and related personnel (Administrative Regulatory Measures Decision [2019 ] No. 8).For the specific content of the relevant decision please refer to the Announcement of the YIWU CCC on Receiving the Warning Letter from Zhejiang
Securities Regulatory Bureau issued by the Company on January 30 2019 (Announcement No.: L2019-007).VI. Employees of the parent company and major subsidiaries
(i) Employees
Number of employees in the parent company 3427
Number of employees in major subsidiaries 1070
Total number of employees 4497
Number of retired employees for whom the parent 186
company and major subsidiaries have to bear
expenses
Professional composition
Professional composition category Professional composition
Production staff 135
Salesperson 136
Technical staff 2427
Financial officer 148
Administration staff 386
Security personnel 790
Vehicle management staff 475
Total 4497
Education level
Education level category Quantity (person)
Postgraduate 103
Undergraduate 1501
Junior college 1428
High school 1028
Junior high school and below 437
Total 4497
(ii) Salary policy
√Applicable □Not applicable
I. Principles of remuneration system
1. Combination of duties powers responsibilities and benefits;
2. It is fair internally and competitive externally;
3. Distribution according to work priority to efficiency fairness and sustainable development;
4. Adopt the distribution form of salary determined by post grade determined by ability and
award determined by performance to reasonably widen the income gap.II. Basis of salary system
Position importance performance contribution ability work attitude and spirit of cooperation.1. As far as the overall level is concerned the Company determines the rem uneration based on
the current economic benefits and sustainable development.2. The Company's salary system includes two different types.
(1) The annual salary system is applicable to managers and deputy managers of the Company's
headquarters as well as members of the management team of branches and subsidiaries;
(2) The structured wage system is applicable to employees who have signed labor contracts for
two years and above. Including grassroots management personnel functional department personnel
engineering management personnel logistics management personnel and equipment maintenance
personnel.3. The remuneration of specially hired staff staff waiting for duty retired staff and timing
piecework staff shall be stipulated separately.4. The Company 's employee income generally includes four parts: job skill wages bonuses
benefits and allowances.(iii) Training program
√Applicable □Not applicable
According to the different training organizations the Company's employee training can be
divided into: OJT training company internal training expatriate training and online training.1. OJT (On the Job Training) The training of ordinary employees and new employees by leaders
of various departments experienced or skilled employees belongs to OJT training including the
Company 's administrative management series training business management series training
engineering technology series training and security logistics series training.2. Enterprise internal training. According to the Company 's training needs the Company
organizes internal trainers or invites external training institutions to tailor training courses for the
Company allowing employees to receive systematic training including corporate culture company
organizational structure and rules and regulations industry status and prospects and professional
ethics etiquette code of conduct language computer skills etc.3. Expatriate training In accordance with the needs of the Company's business development
and job skills the Company organizes personnel in specific positions to go out to participate in the
training of training institutions including financial securities series training human resource
management training and enterprise management series training.4. Network training It is an online training for employees through the application of information
technology and Internet technology and different training contents are set for different positions so
that training and learning are independent and personalized and the use of resources is maximized.(iv) Labor outsourcing
√Applicable □Not applicable
Total number of working hours of labor
11987.2 months
outsourcing
Total remuneration paid for labor outsourcing RMB 40079900
VII. Others
□Applicable √Not applicable
Section IX. Corporate Governance
I. Description of corporate governance
√Applicable □Not applicable
In strict accordance with the Company Law Securities Law Guidelines for Corporate
Governance of Listed Companies and the relevant provisions of the China Securities Regulatory
Commission and other laws and regulations the Company continuously establishes and improves
relevant systems strives to improve the corporate governance structure standardize operations
and operate in compliance with laws. There is no difference between the corporate governance
structure of the Company and the regulatory documents on the governance of listed companies
issued by the China Securities Regulatory Commission.1. Shareholders and general meetings
The Company convenes and holds a general meeting of shareholders in strict accordance with
the Rules of Procedure for the General Meeting of Shareholders to ensure that all shareholders of the
Company fully exercise their rights especially those of small and medium shareholders. In
peacetime we earnestly receive visits and calls from shareholders to ensure the shareholders’ rights
to know participate and vote on major company issues so that shareholders can truly enjoy equal
rights.2. Controlling shareholders and listed companies
The controlling shareholder of the Company exercised the rights of investors through the
general meeting of shareholders in accordance with the law and did not directly or indirectly
intervene in the Company's decision-making and business activities beyond the general meeting of
shareholders. The Company has achieved the five independences of personnel assets finances
institutions and businesses. The Company's board of directors board of supervisors and internal
institutions can operate independently. The controlling shareholder of the Company can strictly
abide by the promise made to the Company to avoid horizontal competi tion. The company should
strictly follows the Related Transaction Decision and Implementation System when it has connected
transactions with its controlling shareholders to ensure that the connected transactions are fair and
just.3. Directors and Board of Directors
The Company selects directors in strict accordance with the procedures stipulated in the Articles
of Association; convenes and holds board meetings in strict accordance with the Rules of
Procedures for the Board of Directors. All directors of the Company can seriously attend the board of
directors and shareholders meetings actively participate in training and earnestly perform their
duties as directors. Three independent directors can earnestly perform the duties and obligations
entrusted by laws regulations and the Company 's Articles of Association and express independent
opinions and suggestions on important company matters so as to effectively protect the legitimate
rights and interests of shareholders. Clarified the annual report review p rocedures of the Audit
Committee of the Board of Directors and effectively played the role of each special committees.4. Supervisors and Board of Supervisors
During the reporting period the Company held four board of supervisors and the convening
and holding procedures of each meeting complied with the provisions of the Company Law the
Articles of Association and the Rules of Procedure of the Board of Supervisors . Company
supervisors can earnestly perform their duties supervise major company matters supervise the
legality and compliance of the Company's directors and senior managers in performing their duties
safeguarding the legitimate rights and interests of the Company and shareholders.5. Information disclosure and investor relationship management
According to the Information Disclosure Management System the Company discloses relevant
information truthfully accurately completely and in a timely manner. Investors can learn about the
Company through media promotion telephone consultation and company website. In addition to
completing the mandatory periodic reports and temporary announcements disclosed by laws and
regulations the Company also actively carry out compliance and voluntary information disclosure
so that investors can have a continuous understanding of the operations that they care about and
truly protect the shareholders' right to know.Whether there are major differences between the corporate governance and the requirements of the
relevant regulations of the China Securities Regulatory Commission; if there are major differences
the reasons should be explained.□ Applicable √Not applicable
II. Shareholders’ meetings
Designated
website on which Date of disclosure of
Session of meeting Date
the resolution is the resolution
published
The First Extraordinary Jan 15 2020 www.sse.com.cn Jan 16 2020
Shareholders’ Meeting in 2020
The Second Extraordinary Feb 24 2020 www.sse.com.cn Feb 25 2020
Shareholders’ Meeting in 2020
2019 Annual General Meeting May 22 2020 www.sse.com.cn May 23 2020
of Shareholders
The Third Extraordinary Jun 29 2020 www.sse.com.cn Jun 30 2020
Shareholders’ Meeting in 2020
2020 Fourth Extraordinary October 26 2020 www.sse.com.cn October 27 2020
General Meeting of
Shareholders
2020 Fifth Extraordinary December 10 2020 www.sse.com.cn December 11 2020
General Meeting of
S hareholders
Statement on shareholders’ meetings
√Applicable □Not applicable
1. The 2020 First Extraordinary General Meeting of Shareholders reviewed and approved the
Proposal on the Redemption of the Remuneration of Certain Directors of the Company in 2018 .2. The Second Extraordinary General Meeting of Shareholders in 2020 reviewed and approved
the Proposal on External Donations.3. The 2019 Annual General Meeting of Shareholders deliberated and approved the 2019 Work
Report of the Board of Directors 2019 Work Report of the Board of Supervisors 2019 Annual Report
and Summary 2019 Financial Statement Report 2020 Financial Budget Report 2019 Annual Profit
Distribution Plan Proposal on Renewing the Appointment of Accounting Firms Proposal on the
Proposed Issuance of Debt Financing Instruments in the Next 12 Months Proposal on Additional
Independent Directors.4. The 2020 Third Extraordinary General Meeting of Shareholders reviewed and approved the
Proposal on the Proposal to Transfer Part of the Equity Interests in a Wholly-owned Subsidiary and
Related Transactions.5. The 2020 Fourth Extraordinary General Meeting of Shareholders reviewed and approved the
Proposal on the Redemption of Some Directors' Remuneration in 2019 and the Proposal on the
By-election of Supervisors.6. The Fifth Extraordinary General Meeting of Shareholders in 2020 deliberated and approved
the Proposal on the Company's 2020 Restricted Stock Incentive Plan (Draft)and its summary
Proposal on the Measures for the Evaluation and Management of the Implementation of the
Company's 2020 Restricted Stock Incentive Plan Proposal on requesting the shareholders meeting
to authorize the board of directors to handle equity incentive related matters Proposal on by-election
of directors.III. Duties performed by directors
(i) Board of Directors and Shareholders Meetings attended by Directors
Participati
on in
General
Participation in Board of Directors meeting
of
sharehold
ers
Failur
Independ
e to
Director ent
attend The
Name director
Numb Numbe the number of
or not Number Number of
er of r of Absenc meeti sharehold
of participatio
board delegat e ng in ers
attendan ns by
meetin es Frequen perso attending
ces in communica
gs this attende cy n the
person tion
year d twice general
in a meeting
row or
not
ZHAO
NO 20 19 17 1 0 3
Wenge NO
WANG
NO 20 20 17 0 0 5
Dong NO
WANG
Chunmi NO 20 20 17 0 0 2
NO
ng
LI
Chengq NO 20 20 17 0 0 2
NO
un
XU
NO 20 20 17 0 0 6
Hang NO
GU NO 2 2 2 0 0 0
Zhixu NO
ZHU
NO 17 15 14 2 0 Yes 2
Hang
MA
Shuzho Yes 20 20 17 0 0 5
NO
ng
HONG
Jianqia Yes 14 14 12 0 0 3
NO
o
JIN
Yanghu Yes 14 14 12 0 0 4
NO
a
LIU
Yes 6 6 5 0 0 1
Zhiyuan NO
WU
Yes 6 6 5 0 0 0
Yabin NO
Explanation of not attending the board meeting in person for two consecutive times
√Applicable □Not applicable
Director Zhu Hang did not personally attend the 13th and 14th meetings of the eighth board of
directors of the Company due to epidemic prevention and control and work reasons and entrusted
the Company's director Xu Hang to attend.Number of board meetings held during the year 20
Including: the number of on-site meetings 3
Number of meetings held by communication 17
Number of meetings held on site combined with0
communication methods
(ii) Objections raised by independent directors on company-related matters
□Applicable √Not applicable
(iii) Others
□Applicable √Not applicable
IV. If there are objections to the important opinions and suggestions put forward by
the special committees under the board of directors during the performance of
their duties during the reporting period the specific circumstances shall be
disclosed.√Applicable □Not applicable
During the reporting period the strategy committee audit committee nomination committee
and remuneration and appraisal committee under the Company’s board of directors were able to
actively and effectively carry out their work in accordance with relevant laws and regulations and
their respective working procedures. They Participate in discussions and express professional
opinions on matters such as the Company’s annual financial audit internal control audit accounting
policies changes related party transaction review director and senior management qualification
review remuneration and performance appraisal etc. to ensure the scientific and effective
decision-making of the board of directors.V. Explanation of the Company risk that the board of supervisors founds
□Applicable √Not applicable
VI. The Company's explanation on the fact that it cannot guarantee independence or
maintain its ability to operate independently with its controlling shareholder in
business personnel assets organization and finance
□Applicable √Not applicable
Where there is competition in the same industry the Company's corresponding solution measures
work progress and follow-up work plan.□Applicable √Not applicable
VII. The evaluation mechanism for senior managers during the reporting period as
well as the establishment and implementation of incentive mechanisms
√Applicable □Not applicable
The salary appraisal of the senior management personnel is completed and determined
according to the performance appraisal method of the head of the enterprise and the Company's
operation and related appraisal indicators then the salary determination is completed.VIII. Disclosure of internal control self-evaluation report or not
√Applicable □Not applicable
The Company has compiled and disclosed the 2020 Internal Control Self-evaluation Report. For
details please refer to the announcement on the Shanghai Stock Exchange website
(www.sse.com.cn).Explanation of major deficiencies in internal control during the reporting period
□Applicable √Not applicable
IX. Explanation of the internal control audit report
√Applicable □Not applicable
The Company hired Ernst & Young Hua Ming Certified Public Accountants (special general
partnership) to audit the effectiveness of the Company's internal control in its 2020 financial report.The accounting firm has issued a standard unqualified internal control audit report. It is believed that
the Company maintained effective internal control of financial reporting in all major aspects in
accordance with the Basic Standards for Corporate Internal Control and related regulations on
December 31 2020. For details of the internal control audit report please refer to the announcement
on the Shanghai Stock Exchange website (www.sse.com.cn).Disclosure of internal control audit report: Yes
Opinion type of internal control audit report: standard unqualified opinion
X. Others
□Applicable √Not applicable
Section X. Corporate Bonds
√Applicable □Not applicable
I. Basic information on corporate bonds
Unit: RMB100million
Method of
Interest principal
Issue Expiry Outstanding
Bond name Abbreviation Code rate repayment and Marketplace
date date amount
(%) interest
payment
Publicly offered For the principal Shanghai
corporate bond repayment and Stock
2019 of interest Exchange
Zhejiang China payment of the
Commodities bond the list of
City Group Co. bondholders
Ltd (Phase I) would be made
according to the
relevant
provisions of
Jun
19 YIWU Jun 5 the bond
155450 3 8 4.3
CCC 01 2022 registration2019
authority. The
specific matters
shall be
handled
according to the
relevant
provisions of
the bond
registration
authority.Publicly offered For the principal Shanghai
corporate bond repayment and Stock
2019 of interest Exchange
Zhejiang China payment of the
Commodities bond the list of
City Group Co. bondholders
Ltd (Phase II) would be made
according to the
relevant
provisions of
Sep Sep
19 YIWU the bond
155750 26 27 7 3.99
CCC 02 registration
2019 2022
authority. The
specific matters
shall be
handled
according to the
relevant
provisions of
the bond
registration
authority.Principal repayment and interest payment of corporate bonds
√Applicable □Not applicable
On June 5 2020 the Company paid interest to all "19XS01" holders on time from June 5 2019
to June 4 2020.On September 28 2020 the Company paid interest to all "19XS02" holders on time from
September 27 2019 to September 26 2020.Other statement on corporate bonds
□Applicable √Not applicable
II. Bond trustee contact information of the trustee and contact information of credit
rating agency
Name Haitong Securities Co. Ltd.Office address 15/F Yuanxiangtai Building No.5 Anding Road
Bond trustee Chaoyang District Beijing
Contacts ZHANG Nan
Contact number 010-88027267
Name Shanghai Brilliance Credit Rating & Investors
Service Co. Ltd.Credit rating agency
Office address 14/F Huasheng Tower No.398 Hankou Road
Shanghai
Other notes:
□Applicable √Not applicable
III. Use of funds raised from corporate bonds
√Applicable □Not applicable
RMB800million of funds were raised from the 2019 corporate bond (Phase I). The Company has
used the funds after deduction of issuance fees to repay its interest -bearing liabilities in accordance
with the plan for the use of raised funds as agreed in the prospectus.RMB700million of funds were raised from the 2019 corporate bond (Phase II). The Compa ny
has used the funds after deduction of issuance fees to repay its interest -bearing liabilities in
accordance with the plan for the use of raised funds as agreed in the prospectus.IV. Credit ratings of corporate bonds
√Applicable □Not applicable
Shanghai Brilliance Credit Rating & Investors Service Co. Ltd. issued the Credit Rating
Surveillance Report on Zhejiang China Commodities City Group Co. Ltd. and the 2019 CCC 01 and
2019 CCC 02 [Brilliance Surveillance (2020) 100930] on Jun 29 2020. The Company had an issuer
rating of AAA with stable outlook and the bonds had a rating of AAA.V. Credit enhancement mechanism for corporate bonds bond repayment plans and
other related matters during the reporting period
√Applicable □Not applicable
During the reporting period there was no change to the credit enhancement mechanism bond
repayment plans or other bond repayment protection measures for the corporate bonds issued by
the Company. In order to fully and effectively protect the bondholders’ interests the Company has
made a series of plans and arrangements for the timely and full repayment of the corporate bonds
including determining the specific department and personnel to be in charge opening a special bond
repayment account formulating and strictly implementing the cash management plan making
proper organization and coordination giving full play to the role of the bond trustee and strictly
performing the information disclosure obligation to develop a set of measures to ensure interest
payment and principal repayment for the bonds.VI. Convention of bondholders’ meetings
□Applicable √Not applicable
VII. Performance of duties by the bond trustee of the Company’s corporate bonds
√Applicable □Not applicable
The trustee of the Company’s corporate bonds Haitong Securities Co. Ltd. during the
reporting period performed its duty as the trustee in compliance with the Administrative Measures
for the Issuance and Trading of Corporate Bonds the Rules for Listing of Corporate Bonds on
Shanghai Stock Exchange the Code of Conduct for Trustees of Corporate Bonds and other related
laws and regulations including but not limited to paying continuing attention to the Company’s credit
status and supervising the receipt deposit transfer of the funds raised from the cor porate bonds
principal repayment and interest payment in the Company’s designated special account.VIII. The Company's accounting data and financial indicators for the past 2 years as of
the end of the reporting period
√Applicable □Not applicable
Unit: RMB10000
Increase/decrease
in the current
period as
Reasons for
Major indicator 2020 2019 compared to the
change
prior
corresponding
period (%)
EBITDA 251515.14 275610.05 -8.74
Current ratio 91.44% 120.44% -29.00
Quick ratio 79.45% 87.12% -7.67
Debt-to-asset ratio (%) 52.78 58.23 -5.44
EBITDA to total debt ratio 0.27 0.15 78.18
Interest coverage ratio 4.42 4.65 -5.02
Cash interest protection 3.13 -1.79 -274.91
multiple
EBITDA-to-interest coverage 6.04 5.99 0.91
ratio
Loan repayment rate (%) 100 100
Interest payment rate (%) 100 100
IX. Payment of interest and repayment of principal for other bonds and debt
financing instruments of the Company
√Applicable □Not applicable
1. The Company issued a 270-day super-short-term commercial paper of RMB1bn at an annual
interest rate of 3.30% on Aug 29 2019. The lead underwriter was China Merchants Bank Co. Ltd.and the joint underwriter was Industrial and Commercial Bank of China Co. Ltd.. The Company
repaid the principal and paid the interest for the bond upon its maturity on May 29 2020.2. The Company issued 180-day ultra-short-term financing bonds of RMB 1 billion on February
18 2020 with an annual interest rate of 2.89%. The lead underwriter is Agricultural Bank of China
Co. Ltd. The joint lead underwriter is Bank of Ningbo Co. Ltd. which is due to redeem the principal
and interest on August 18 2020.3. The Company issued 120-day ultra-short-term financing bonds of RMB 1 billion on May 14
2020 with an annual interest rate of 1.97%. The lead underwriter is China Construction Bank
Corporation. The joint underwriter is the Export-Import Bank of China Co. Ltd. which is due to
redeem the principal and interest on September 15 2020.4. The Company issued 120-day ultra-short-term financing bonds of RMB 1 billion on August 12
2020 with an annual interest rate of 2.89%. The lead underwriter is Industrial and Commercial Bank
of China. The joint underwriter is the Export-Import Bank of China Co. Ltd. which is due to redeem
the principal and interest on December 12 2020.5. The Company issued 90-day ultra-short-term financing bonds of RMB 1 billion on September
1 2020 with an annual interest rate of 2.2%. The lead underwriter is Shanghai Pudong
Development Bank Co. Ltd. which is due to redeem the principal and interest on December 2
2020.6. The Company issued 90-day ultra-short-term financing bonds of RMB 1 billion on September
28 2020 with an annual interest rate of 2.5%. The lead underwriter is the Agricultural Bank of China
Co. Ltd. which is due to redeem the principal and interest on December 29 2020.7. The Company issued 90-day ultra-short-term financing bonds of RMB 1 billion on November
25 2020 with an annual interest rate of 2.5%. The lead underwriter is the Agricultural Bank of China
Co. Ltd. which is due to redeem the principal and interest on February 25 2021.8. The Company issued 90-day ultra-short-term financing bonds of RMB 1 billion on December
8 2020 with an annual interest rate of 2.45%. The lead underwriter is Shanghai Pudong
Development Bank Co. Ltd. which is due to redeem the principal and interest on March 9 2021.9. The Company issued 28-day ultra-short-term financing bonds of RMB 1 billion on December
24 2020. The annual interest rate of the issuance is 2.70%. The lead underwriter is Industrial and
Commercial Bank of China Co. Ltd. and the principal and interest are due on January 22 2021.X. Lines of credit from banks during the reporting period
√Applicable □Not applicable
As of the end of the reporting period the Company’s bank credit lines totaled RMB 10 billion.Among them the used credit line is RMB 1.838 billion and the unused line is RMB 8.162 billion.XI. Execution of promises or commitments in the prospectus of the Company’s
corporate bonds during the reporting period
√Applicable □Not applicable
During the reporting period the Company strictly fulfilled the promises or commitments in the
prospectus of the Company’s corporate bonds used the raised funds in compliance therewi th and
paid interest of the corporate bonds in time without prejudice to the interests of bond investors.XII. Major events in the Company and their impacts on the Company’s operations and
solvency
√Applicable □Not applicable
The 22.667% equity in Hunan Provincial Asset Management Co. Ltd. held by the industry fund
Yiwu Shangfu Chuangzhi Investment Center (limited partnership) for which the Company’s
wholly -owned subsidiary CCCF subscribed was frozen by the Public Security Bureau of Shanghai
for a term from Sep 6 2018 until Sep 6 2019. For details please refer to the Announcement of
China Commodities City on the Freezing of the Investment Project of the Industry Fund Subscribed
for by China Commodities City Financial Holdings (Announcement code: Tempor ary 2018-045)
disclosed on the website of Shanghai Stock Exchange www.sse.com.cn.In 2019 the 22.667% equity held by Yiwu Shangfu Chuangzhi Investment Center (limited
partnership) in Hunan Provincial Asset Management Co. Ltd. kept being frozen by the Public
Security Bureau of Shanghai for a term from Sep 6 2019 until Mar 5 2020. For details please refer
to the Announcement on the Progress of the Freezing of the Investment Project of the Industry Fund
Subscribed for by China Commodities City Financial Holdings (Announcement Code: Temporary
2019-067) disclosed on the website of Shanghai Stock Exchange www.sse.com.cn.On Mar 6 2020 the 22.667% equity held by Yiwu Shangfu Chuangzhi Investment Center
(limited partnership) in Hunan Provincial Asset Management Co. Ltd. kept being frozen by the
Public Security Bureau of Shanghai for a term from Mar 6 2020 until Sep 5 2020. For details
please refer to the Announcement of China Commodities City on the Freezing of the Investment
Project of the Industry Fund Subscribed for by China Commodities City Financial Holdings
(Announcement code: Temporary 2020-010) disclosed on the website of Shanghai Stock Exchange
www.sse.com.cn.On September 6 2020 the 22.667% equity of Hubei Asset Management Co. Ltd. held by Yiwu
Shangfu Chuangzhi Investment Center (Limited Partnership) was frozen by Shanghai Public
Security Bureau. The freezing period is from September 6 2020 to 2021. March 5th. For details
please refer to YIWU CCCs Announcement on the Freezing of Industrial Fund Investment Projects
Involved in Subscribing for CCCF (Announcement No.: L2020-067) disclosed by the Company on the
Shanghai Stock Exchange website www.sse.com.cn on September 8 2020. ).The amount involved in the freezing of the investment project of the industry fund subscribed for
by CCCF occupied a small share in the Company’s total assets and revenue. Therefore it would not
have materially adverse impact on the Company’s operation and solvency.Section XI. Financial Report
I. Auditor’s report
√Applicable □Not applicable
All the shareholders of Zhejiang China Commodities City Group Co. Ltd
1. Audit opinion
We have audited the financial statements of Zhejiang China Commodities City Group
Co. Ltd. including Consolidated & Corporate Balance Sheets as of December 31 2020
Consolidated & Corporate Income Statements Consolidated & Corporate Cash Flow
Statements Consolidated & Corporate Statements of Changes in Owner’s Equity for 2020
and Notes to the Financial Statements.We believe that the attached financial statements were prepared according to
Accounting Standards for Zhejiang China Commodities City Group Co. Ltd. in all material
aspects as a fair reflection of the consolidated and parent company’s financial status of
Zhejiang China Commodities City Group Co. Ltd. on the December 31 2020 and the
operation outcomes and cash flows of the company for 2020.2. Basis of audit opinion
We conducted our audit in accordance with the Auditing Standards for ChineseCertified Public Accountants. The section “CPAs’ Responsibility for Audit of FinancialStatements” in the audit report further describes on our responsibilities under these
standards. In accordance with the CPA Code of Ethics in China we are independent of
Zhejiang China Commodities City Group Co. Ltd. and have performed other
responsibilities in respect of professional ethics.We believe that the audit evidence we have acquired is sufficient and effective providing a
reasonable basis for our opinion.3. Key audit matters
Key audit matters are matters that we believe are the most important matters for the
audit of the financial statements based on professional judgment. The response to such
matters is based on the background of auditing the financial statements as a whole and
forming an audit opinion. We do not express independent opinions on such matters. This
was also the background for our description for how every matter below was responded in
the audit.We have fulfilled the responsibilities described in the "Certified Accountants'
Responsibilities for the Audit of Financial Statements" section of this report including those
related to these key audit matters. Correspondingly our audit work included the
implementation of audit procedures designed to deal with the assessed risk of material
misstatement in the financial statements. The results of our audit procedures including the
procedures performed in response to the following key audit matters provide a basis for the
expression of the audit opinion in the financial statements as a whole.Key audit matters: Audit response to the matter:
Impairment of non-goodwill long-term assets with certain useful life
As of December 31 2020 the book value We reviewed the judgment of the
of the non-goodwill assets with certain management on the indications of
useful life in the Group’s market and impairment of long-term assets during
supporting hotels exhibition halls and the audit:
commercial buildings such as the 1. For long-term assets that involve
corresponding property plant and impairment testing for indications of
equipment investment real estate land impairment we have assessed the
use rights construction in progress and reasonableness of the asset groups
long-term deferred expenses(hereinafter identified by the management;
collectively referred to as "long-term 2. With the assistance of internal
assets") totaled RMB 12189.12 million valuation experts we assessed the
accounting for 42% of the total book value reasonableness of the major
of the consolidated assets of the Group. assumptions and evaluation methods
When identifying whether the used by the Group management like
above-mentioned long-term assets have discount rates;
any indications of impairment and when 3. We assessed the reasonableness
carrying out impairment tests on the of key assumptions such as estimated
long-term assets with indications of sales income gross profit operating
impairment the recoverable amount of the costs and disposal value predictions
asset or asset group needs to be reviewed at the end of the useful life of related
the Group needs to review the recoverable assets in the future years and
amount of the asset or asset group. This checked basic data on the present
requires the management to use major value of expected future cash flows
judgments and estimates to determine the with relevant supporting evidence.estimated future sales income gross profit 4. We compared and analyzed the
operating costs the disposal value actual performance of the current year
forecast and discount rate at the end of the with the predicted performance of the
useful life of the relevant assets and other previous year;
key assumptions when predicting the 5. We checked the adequacy and
present value of future cash flows.The completeness of the relevant
evaluation process is complicated so we disclosures of the Group in the notes
identify them as key audit matters. to the financial statements.Relevant information has been disclosed in
Consolidated Notes III/ 30 and
Consolidated Notes V.12 13 14 15 and
17 of the financial statements.Provision for falling price of inventory
As of December 31 2020 the book value We implemented the following
of the Group's some assets including procedures during the audit:
development products development costs 1. We have reviewed the method used
and land to be developed (hereinafter by management for provision for
collectively referred to as “inventory”) falling price of inventory
totaled RMB 1329.47 million and the 2. We acquired the inventory falling
balance of the provision for falling price of price reserve calculation table
inventory was RMB 28.30 million. provided by the management
reviewed the calculation of the
On the balance sheet date the inventory provision for falling price of inventory
measured at the lower of cost and net by the management assessed the
realizable value. The calculation of net reasonableness of the estimated
realizable value requires the use of selling price and the costs and
assumptions and estimates including the expenses to be incurred by the time of
estimation of the selling price and the costs completion and compared which is
and expenses to be incurred until higher between net realizable value of
completion. estimated selling price of inventory
minus the amount of costs and
As the amount of inventory is significant expenses that will be incurred until
and the calculation of net realizable value completion and the book value to
involves significant accounting estimates determine whether the amount of
we identified the provision for falling price inventory depreciation reserves is
of inventory as a key audit matter. correct.Relevant information has been disclosed in
Consolidated Notes III. 30 and
Consolidated Notes V. 6 of the financial
statements.4. Other information
Zhejiang China Commodities City Group Co. Ltd.’s management is responsible for
other information. Such information includes the information covered by the annual report
but the financial statements and the audit report provided by us are excluded.Our audit opinion released in the financial statements do not cover other information
and we do not release any form of assurance conclusion on other information.Our responsibility is to read other information in conjunction with our audit of the
financial statements. During the process we consider whether there is a material
inconsistency or other material misstatement in the financial statements with the knowledge
acquired by us during the audit process.Based on the work we have performed if we determine that there is a material
misstatement of other information we should report the fact. We have nothing to report in
this aspect.5. Responsibility of management and governance for financial statements
The management is responsible for preparing financial statements in accordance with
the provisions of the Accounting Standards for Business Enterprises to achieve fair
reflection and designing implementing and maintaining necessary internal controls
to prevent these financial statements from material misstatement arising from fraud or erro
r.During preparing the financial statements the management is responsible for
assessing the sustainability management capabilities of Zhejiang China Commodities City
Group Co. Ltd. disclosing as applicable going-concern-related matters and applying the
going-concern assumption unless the management plans to liquidate Zhejiang China
Commodities City Group Co. Ltd. and discontinue operations or has no other realistic
choices.The governance is responsible for supervising the financial reporting process of
Zhejiang China Commodities City Group Co. Ltd.6. Certified Public Accountants’ responsibility for audit of financial statements
Our goal is to obtain reasonable assurance about whether the financial statements are
free from material misstatement caused by fraud or error and express an opinion on these
financial statements based on our audits. The reasonable assurance is a guarantee at a
high level but there is no guarantee that an audit performed in accordance with the auditing
standards will always identify existing material misstatement. Misstatements may be caused
by fraud or error. Misstatement is generally considered to be material if it is reasonably
expected that the misstatement alone or aggregated may affect the financial decision
made by the users of the financial statements based on the financial statements.We applied professional judgment and professional skepticism during conducting audit
work in accordance with the Auditing Standards for CPA while performing following works:
(1) Identifying and evaluating the risk of material misstatements of financial statements
for fraud or error designing and implementing audit procedures to deal with these
risks and obtaining adequate and appropriate audit evidence as a basis for release
of our audit opinion. As fraud may involve collusion forgery willful omission
misrepresentation or override of internal control the risk of not discovering a material
misstatement due to fraud is higher than the risk of not discovering a material
misstatement resulting from an error.
(2) Understanding the internal control related to the audit in order to design the
appropriate audit procedures.
(3) Evaluating the appropriateness of the accounting policies selected by management
level and the reasonableness of accounting estimates and related disclosures.(4) Concluding the appropriateness of management level’s use of the going concern
assumption while drawing a conclusion as to whether there is any material
uncertainty about the issues or circumstances that may cause major doubts about
the ability of the Zhejiang China Commodities City Group Co. Ltd. to continue as a
going concern on basis of the audit evidence acquired. If we conclude that there is a
significant uncertainty the auditing standards require us to remind user of the
statements of the relevant disclosures in the financial statements in the audit report.If the disclosures are inadequate we should release an unqualified opinion. Our
conclusion is based on the information available by the date of the audit report.However future events or circumstances may result in Zhejiang China Commodities
City Group Co. Ltd. being unable to continue as a going concern.
(5) Evaluating the overall presentation structure and content (including disclosure) of
the financial statements as well as whether the financial statements are a fair
reflection of the related transactions and matters.
(6) Obtaining adequate and appropriate audit evidence on the financial information of
the entities or business activities in Zhejiang China Commodities City Group Co. Ltd.to express an opinion on the financial statements. We are responsible for directing
supervising and implementing the Group’s audit and assume full responsibility for the
audit opinion.We have communicated with the governance on the matters such as the scope and
timing of audit and major audit findings including the notable defects of internal control
identified in our audit.We also provided a statement to the governance that we had complied with the
professional ethics requirements related to independence and communicated with the
governance all relationships and other matters that may be reasonably believed to affect
our independence and related preventive measures (if applicable).In the matters communicated with the governance we determined which matters
should be the most important to the audit of the financial statements of the current period
and should constitute the key audit matters accordingly. We described such matters in the
audit report unless laws and regulations had prohibited public disclosure of these matters
or in rare cases we determined that such matters should not be communicated in the audit
report if the negative consequences of communicating a matter in the audit report are
reasonably expected to outweigh the public interests.Ernst & Young Huaming Certified Public Chinese CPA: YIN Guowei
Accountants (Sp ecial General Partnership) (Project Partner)
Chinese CPA: YANG Zhuye
Beijing China April 28 2021
II. Financial statements
Consolidated Balance Sheet
December 31 2020
Prepared by: Zhejiang China Commodities City Group Co. Ltd.Unit: RMB
Item December 31 2020 December 31 2019
Current assets:
Monetary capital 5612642932.21 6486408651.88
Held-for-trading f inancial assets 51712734.31 38077703.92
Accounts Receivable 153573476.86 16031078.05
Prepayments 105187528.26 44678187.98
Other receivables 2708478136.25 1397228398.98
In w hich: interest receivable 121401210.48 191064382.11
Inventories 1329467728.17 4296061444.25
Other current assets 179724694.17 3099955902.50
Total current assets 10140787230.23 15378441367.56
Non-current assets:
Long-term receivables 126756573.81 61250000.00
Long-term equity investment 3832897502.71 1771420054.57
Other equity instruments investment 662256342.79 642187968.78
Other non-current f inancial assets 1523925249.81 1519449439.02
Investment real estate 1960426291.73 1863218356.40
Property plant and equipment 5234293786.87 4783819070.71
Construction in progress 982891877.14 865754600.02
Intangible assets 3900780981.92 3456137246.02
Development expenditures 22223061.09 -
Long-term deferred expenses 110728723.36 139502382.87
Deferred tax assets 99664328.84 180404801.30
Other non-current assets 152495196.56 661648707.19
Total non-current assets 18609339916.63 15944792626.88
Total assets 28750127146.86 31323233994.44
Current liabilities:
Short-term loans 1257179389.40 4178903704.82
Accounts payable 636463802.23 525241493.48
Advances from customers 112752897.25 4508455128.63
Contract liabilities 2442211788.88 -
Employee compensations payable 161498997.53 197174419.96
Taxes payable 495400499.73 280184253.26
Other payables 1646345561.62 909483132.47
Non-current liabilities due w ithin one year 1315026574.43 270332413.94
Other current liabilities 3023608041.68 2023012118.22
Total current liabilities 11090487552.75 12892786664.78
Non-current liabilities:
Long- term loans 282000000.00 530694313.98
Bonds payable 3552161709.68 4564291387.81
Estimated liabilities 110620306.10 110620306.10
Deferred incomes 26545277.30 27966750.98
Deferred income tax liabilities 113602923.79 112574338.69
Other non-current liabilities - 1148.89
Total non-current liabilities 4084930216.87 5346148246.45
Total Liabilities 15175417769.62 18238934911.23
Owners' equity (or shareholders' equity):
Paid-in capital (or equity) 5489914176.00 5443214176.00
Capital reserves 1594906524.67 1524183779.64
Less: treasury stocks 137298000.00 -
Other comprehensive income 78149661.33 66267192.74
Surplus reserve 1364257808.58 1236166911.81
Retained earnings 5168298206.50 4750787389.17
Total ow ner’s equity (or shareholders’ equity) 13558228377.08 13020619449.36
attributable to the parent company
Minority shareholders' equity 16481000.16 63679633.85
Total ow ner’s equity (or shareholders’ equity) 13574709377.24 13084299083.21
Total liabilities and ow ners’ equity (or 28750127146.86 31323233994.44
shareholders’ equity)
Legal representative: ZHAO Wenge Person in charge of accounting: WANG Dong Person in charge of
the accounting body: ZHAO Difang
Balance Sheet of Parent Company
December 31 2020
Prepared by: Zhejiang China Commodities City Group Co. Ltd.Unit: RMB
Item December 31 2020 December 31 2019
Current assets:
Monetary capital 5435867497.50 6312119746.26
Held-for-trading f inancial assets 6632.72 1211.14
Accounts Receivable 14671577.47 2381698.23
Prepayments 29452445.04 11914907.36
Other receivables 2651640610.06 1280138618.41
In w hich: interest receivable 121401210.48 134543859.25
Inventories 10144965.06 6622207.78
Other current assets 3082340716.76 4252429806.32
Total current assets 11224124444.61 11865608195.50
Non-current assets:
Long-term receivables 61250000.00 61250000.00
Long-term equity investment 6083135428.02 6886096995.77
Other equity instruments investment 662256342.79 642187968.78
Other non-current f inancial assets 266722811.41 371736330.52
Investment real estate 1501734504.79 1062037085.45
Property plant and equipment 4444239239.28 3929018558.56
Construction in progress 856248099.10 780166171.12
Intangible assets 3777092772.41 3331543646.76
Long-term deferred expenses 58705952.97 63262990.25
Deferred tax assets 85739381.21 94333102.87
Other non-current assets 519850000.00
Total non-current assets 17797124531.98 17741482850.08
Total assets 29021248976.59 29607091045.58
Current liabilities:
Short-term loans 1257179389.40 4178903704.82
Accounts payable 444254309.61 208383192.69
Advances from customers 97380931.49 2918036408.24
Contract liabilities 2283994068.70
Employee compensations payable 131469702.81 162095870.71
Taxes payable 546100633.28 280400924.97
Other payables 1333312494.36 618839560.98
Non-current liabilities due w ithin one year 1315026574.43 270332413.94
Other current liabilities 3556664822.79 3044639789.79
Total current liabilities 10965382926.87 11681631866.14
Non-current liabilities:
Long- term loans 282000000.00 530694313.98
Bonds payable 3552161709.68 4564291387.81
Estimated liabilities 110620306.10 110620306.10
Deferred incomes 26545277.30 27966750.98
Deferred income tax liabilities 69623249.14 92975854.98
Other non-current liabilities 187.73
Total non-current liabilities 4040950542.22 5326548801.58
Total Liabilities 15006333469.09 17008180667.72
Owners' equity (or shareholders' equity):
Paid-in capital (or equity) 5489914176.00 5443214176.00
Capital reserves 1833256515.22 1489516614.19
Less: treasury stocks 137298000.00
Other comprehensive income 81473183.84 66421903.33
Surplus reserve 1364204332.75 1236113435.98
Retained earnings 5383365299.69 4363644248.36
Total ow ner’s equity (or shareholders’ equity) 14014915507.50 12598910377.86
Total liabilities and ow ners’ equity (or 29021248976.59 29607091045.58
shareholders’ equity)
Legal representative: ZHAO Wenge Person in charge of accounting: WANG Dong
Person in charge of the accounting body: ZHAO Difang
Consolidated Income Statement
January -December 2020
Unit: RMB
Item 2020 2019
I. Total operating incomes 3725686100.39 4042767521.18
Including: operating incomes 3725686100.39 4042767521.18
II. Total operating costs 2797025785.03 2651993165.55
Including: operating costs 1811136443.99 1696954129.50
Taxes and surcharges 165885982.83 270418487.50
Selling expenses 241889186.44 157579827.86
General and administrative expenses 377516845.45 281213431.82
R&D expenses 18507626.99 18268182.12
Financial expenses 182089699.33 227559106.75
Including: interest 416095890.57 459857576.35
Interest income 230212773.93 221495467.21
Add: other income 17986332.14 9026831.74
Investment income (losses presented with "-") 524214123.84 203643739.21
Including: investment income from associated 34968640.68 52930591.13
enterprises and joint ventures
Gains from changes in fair value (losses presented with -32955861.63 33687762.95
"-")
Credit impairment loss (loss is indicated by “-”) -2282683.90 -6225482.23
Loss for asset impairment (losses presented with "-") - 639659.42
Income from asset disposal (losses presented with "-") 8180591.72 140269.17
III. Operating profit (losses presented with "-") 1443802817.53 1631687135.89
Plus: non-operating income 4425072.97 5288007.56
Less: non-operating expenses 26636816.07 4233594.52
IV. Total profits (total loss presented with "-") 1421591074.43 1632741548.93
Less: income taxes 499755019.22 383915221.97
V. Net profit (net loss presented with "-") 921836055.21 1248826326.96
(I) Categorized by continuity of operation
Net profits from continuing operation (net loss is indicated 921836055.21 1248826326.96
by “-”)
2. Net profit from business discontinuity (net loss
presented with “-”)
(II) Categorized by ownership
Net profits attributable to shareholders of the parent 926626706.42 1255276023.70
company (net loss is indicated by “-”)
Minority interest(net loss is indicated by “-”) -4790651.21 -6449696.74
VI. Net after-tax amount of other comprehensive income 11916631.45 98584983.09
(I) Other comprehensive income attributable to owners of the 11882468.59 98584983.09
parent company net of tax
1. Other comprehensive income that cannot be 15051280.51 98774028.40
reclassified as profits or loss
(3) Changes in fair value of investments in other equity 15051280.51 98774028.40
instruments
2 . Other comprehensive income that will be reclassified -3168811.92 -189045.31
as profits or loss
(5) Cash flow hedging reserve
(6) Difference arising from the translation of foreign currency -3168811.92 -189045.31
financial statements
(2) After -tax net of other comprehensive income attributable 34162.86 -
to minority shareholders
VII. Total comprehensive income 933752686.66 1347411310.05
(I) Total comprehensive income attributable to owners of the 938509175.01 1353861006.79
parent company
(II) Total comprehensive income attributable to minority -4756488.35 -6449696.74
shareholders
VIII. Earnings per share:
(I) Basic earnings per share 0.17 0.23
(II) Diluted earnings per share 0.17 0.23
For merger of the enterprises under common control during the current period net
profits of the merged party prior to the merger were RMB 0 and net profits of the
merged party during the previous period were RMB 0.Legal representative: ZHAO Wenge Person in charge of accounting: WANG Dong
Person in charge of the accounting body: ZHAO Difang
Income Statement of Parent Company
January -December 2020
Unit: RMB
Item 2020 2019
I. Revenue 3004461701.48 3162564146.39
Less: cost of sales 1057141636.22 1105173102.86
Taxes and surcharges 132358447.92 138381103.93
Selling expenses 239654404.97 122612363.93
General and administrative expenses 214977084.50 166314853.79
R&D expenses
Financial expenses 187866954.47 225148910.49
Including: interest 416572917.39 459857576.35
Interest income 230214546.47 221495467.21
Add: other income 8780068.91 4078128.04
Investment income (losses presented with "-") 658729792.04 266253278.48
Including: investment income from associated 64824176.63 77023131.33
enterprises and joint ventures
Gains from changes in fair value (losses -103343955.11 -1514075.48
presented with "-")
Credit impairment loss (loss is indicated by “-”) 205158.05 -465882.00
Income from asset disposal (losses presented 7092990.67 145317.29
with "-")
II. Operating profits (loss is indicated by “-”) 1743927227.96 1673430577.72
Plus: non-operating income 2350534.71 4850230.60
Less: non-operating expenses 20162609.18 4144948.91
III. Profits before tax (loss is indicated by “-”) 1726115153.49 1674135859.41
Less: income taxes 445206185.75 315478874.35
IV. Net profits (net loss is indicated by “-”) 1280908967.74 1358656985.06
(I) Categorized by continuity of operation(net loss is 1280908967.74 1358656985.06
indicated by “-”)
V. Other comprehensive income net of tax 15051280.51 98774028.40
(1) Other comprehensive income that cannot be 15051280.51 98774028.40
reclassified into profit and loss
3. Changes in fair value of investments in other 15051280.51 98774028.40
equity instruments
VI. Total comprehensive income 1295960248.25 1457431013.46
Legal representative: ZHAO Wenge Person in charge of accounting: WANG Dong Person in charge of
the accounting body: ZHAO Difang
Consolidated Cash Flow Statement
January -December 2020
Unit: RMB
Item 2020 2019
1. Cash flow for operating activities:
Cash received from selling goods and providing 4448611152.91 4073995655.26
labor services
Cash received for taxes and surcharges refunded 4456323.70 254.91
Other cash received related to operating activities 408789146.30 351488979.71
Subtotal of cash inflow from operating activities 4861856622.91 4425484889.88
Cash paid for purchasing goods and receiving labor 2379428567.25 4260309838.08
services
Cash paid to and for employees 585624913.63 541605553.26
Taxes and surcharges paid 473925483.80 711310750.38
Other cash paid related to operating activities 594089396.28 451166005.71
Subtotal of cash outflow from operating activities 4033068360.96 5964392147.43
Net cash flow from operating activities 828788261.95 -1538907257.55
II. Cash flow for investment activities:
Cash received from investment 13116015960.26 2195019595.80
Cash received from investment income 297606559.61 312418038.76
Net cash received from disposal of property plant 10313579.94 803264.41
and equipment intangible assets and other long-term
assets
Net cash received from disposal of subsidiaries and 192466418.65 -6879257.73
other business units
Other cash received related to investing activities 4450486259.27 5183236686.81
Subtotal of cash inflow from investing activities 18066888777.73 7684598328.05
Cash paid for acquisition of property plant and 1212154493.64 951820970.76
equipment intangible assets and other long-term
assets
Cash paid for investment 13865803003.64 5030090904.39
Other cash paid related to investing activities 2352817932.28 1600535000.00
Subtotal of cash outflow for investing activities 17430775429.56 7582446875.15
Net cash flow from investing activities 636113348.17 102151452.90
III. Cash flow for financing activities:
Cash received for investment taking 156298000.00 8000000.00
Including: cash received by subsidiaries from 19000000.00 8000000.00
absorbing minority shareholders' investment
Cash received for obtaining loans 13142000000.00 16306241019.62
Other cash received related to financing activities
Subtotal of cash inflow from financing activities 13298298000.00 16314241019.62
Cash paid for debt paying 15552228773.17 13310614256.00
Cash paid for distribution of dividends and profits or 537445865.52 772129750.78
payment for interest
Including: dividends and profits paid by subsidiaries 114400.00 480000.00
to minority shareholders
Other cash paid related to financing activities 64460000.00
Subtotal of cash outflow from financing activities 16154134638.69 14082744006.78
Net cash flow from financing activities -2855836638.69 2231497012.84
IV. Impact of changes in exchange rate on cash and -3134649.06 -189045.92
cash equivalents
V. Net increase in cash and cash equivalents -1394069677.63 794552162.27
Add: Opening balance of cash and cash equivalents 3426712549.26 2632160386.99
VI. Closing balance of cash and cash equivalents 2032642871.63 3426712549.26
Legal representative: ZHAO Wenge Person in charge of accounting: WANG Dong Person in charge
of the accounting body: ZHAO Difang
Cash Flow Statement of Parent Company
January -December 2020
Unit: RMB
Item 2020 2019
1. Cash flow for operating activities:
Cash received from selling goods and providing 2446781848.92 2367649023.27
labor services
Cash received for taxes and surcharges refunded 1149176.75 254.91
Other cash received related to operating activities 241467188.43 303539111.80
Subtotal of cash inflow from operating activities 2689398214.10 2671188389.98
Cash paid for purchasing goods and receiving labor 556362710.98 322702465.25
services
Cash paid to and for employees 401702437.14 334018894.70
Taxes and surcharges paid 258399863.90 517758701.35
Other cash paid related to operating activities 450114859.64 200703001.32
Subtotal of cash outflow from operating activities 1666579871.66 1375183062.62
Net cash flow from operating activities 1022818342.44 1296005327.36
II. Cash flow for investment activities:
Cash received from investment 13081060305.96 2082420749.21
Cash received from investment income 225062189.56 384476812.15
Net cash received from disposal of property plant 474396.78 774343.89
and equipment intangible assets and other long-term
assets
Net cash received from disposal of subsidiaries and 2232000000.00
other business units
Other cash received related to investing activities 2775280817.96 4717358398.04
Subtotal of cash inflow from investing activities 18313877710.26 7185030303.29
Cash paid for acquisition of property plant and 1192740121.04 792555494.44
equipment intangible assets and other long-term
assets
Cash paid for investment 14745855008.73 8965543014.54
Other cash paid related to investing activities 2007512948.00 157575000.00
Subtotal of cash outflow for investing activities 17946108077.77 9915673508.98
Net cash flow from investing activities 367769632.49 -2730643205.69
III. Cash flow for financing activities:
Cash received for investment taking 137298000.00
Cash received for obtaining loans 13142000000.00 16285312419.62
Subtotal of cash inflow from financing activities 13279298000.00 16285312419.62
Cash paid for debt paying 15552228773.17 13289685656.00
Cash paid for distribution of dividends and profits or 537331465.52 771649750.78
payment for interest
Subtotal of cash outflow from financing activities 16089560238.69 14061335406.78
Net cash flow from financing activities -2810262238.69 2223977012.84
IV. Impact of changes in exchange rate on cash and
cash equivalents
V. Net increase in cash and cash equivalents -1419674263.76 789339134.51
Add: Opening balance of cash and cash equivalents 3305541700.68 2516202566.17
VI. Closing balance of cash and cash equivalents 1885867436.92 3305541700.68
Legal representative: ZHAO Wenge Person in charge of accounting: WANG Dong Person in charge of
the accounting body: ZHAO Difang
Consolidated Statement of Changes in Owners’ Equity
January -December 2020
Unit: RMB2020
Equity attributable to equity holders
Minority
Item Total ow ner's
Other shareholders' equity
Paid-in capital (or Less: treasury Retained equity
Capital reserves comprehensive Surplus reserve Subtotal
equity) stocks earnings
income
1. Balance at the 5443214176.00 1524183779.64 - 66267192.74 1236166911.81 4750787389.17 13020619449.36 63679633.85 13084299083.21
end of previous
year
II. Opening balance 5443214176.00 1524183779.64 - 66267192.74 1236166911.81 4750787389.17 13020619449.36 63679633.85 13084299083.21
of the current year
III. YoY change 46700000.00 70722745.03 137298000.00 11882468.59 128090896.77 417510817.33 537608927.72 -47198633.69 490410294.03
(decrease is
indicated by “-”)
(1) Total 11882468.59 926626706.42 938509175.01 -4756488.35 933752686.66
comprehensive
income
(2) Capital invested 46700000.00 70905533.03 137298000.00 -19692466.97 -42327745.34 -62020212.31
and reduced by
ow ner
1．Common shares 46700000.00 90598000.00 137298000.00
contributed by
ow ners
2. Capital invested 19000000.00 19000000.00
in minority
shareholders
3. Amount of 1880981.38 1880981.38 17483.68 1898465.06
share-based
payment into
ow ner’s equity
4. Disposal of 1625966.37 1625966.37 -1625966.37
partial equity of
subsidiaries w ithout
losing control
5. Disposal of 0.00 -18495518.55 -18495518.55
subsidiaries
6. Acquisition of -21309501.72 -21309501.72 -43113657.10 -64423158.82
minority
shareholders’
equity
7. Deemed -1889913.00 -1889913.00 1889913.00
acquisition of
minority
shareholders’
equity
(III) Profits 128090896.77 -509115889.09 -381024992.32 -114400.00 -381139392.32
distribution
1．Withdraw al of 128090896.77 -128090896.77
surplus reserve
3．Distribution to -381024992.32 -381024992.32 -114400.00 -381139392.32
ow ners (or
shareholders)
(VI) Others -182788.00 -182788.00 -182788.00
IV. Closing balance 5489914176.00 1594906524.67 137298000.00 78149661.33 1364257808.58 5168298206.50 13558228377.08 16481000.16 13574709377.24
of the current
period2019
Equity attributable to equity holders
Minority
Item Total owner's
Other shareholders'
Paid-in capital Retained equity
Capital reserves comprehensive Surplus reserve Subtotal equity
(share capital) earnings
income
1. Balance at 5443214176.00 1520831406.81 -32317790.35 1080217404.75 3750079863.58 11762025060.79 62990540.97 11825015601.76
the end of
previous year
Add: Changes 20083808.55 207890050.96 227973859.51 227973859.51
in accounting
policies
II. Opening 5443214176.00 1520831406.81 -32317790.35 1100301213.30 3957969914.54 11989998920.30 62990540.97 12052989461.27
balance of the
current year
III. YoY change 3352372.83 98584983.09 135865698.51 792817474.63 1030620529.06 689092.88 1031309621.94
(decrease is
indicated by
“-”)
(1) Total 98584983.09 1255276023.70 1353861006.79 -6449696.74 1347411310.05
comprehensive
income
(2) Capital 7618789.62 7618789.62
invested and
reduced by
owner
1．Common 8000000.00 8000000.00
shares
contributed by
owners
Disposal of -381210.38 -381210.38
subsidiaries
(III) Profits 135865698.51 -462458549.07 -326592850.56 -480000.00 -327072850.56
distribution
1．Withdrawal 135865698.51 -135865698.51
of surplus
reserve
3．Distribution -326592850.56 -326592850.56 -480000.00 -327072850.56
to owners (or
shareholders)
(VI) Others 3352372.83 3352372.83 3352372.83
IV. Closing 5443214176.00 1524183779.64 66267192.74 1236166911.81 4750787389.17 13020619449.36 63679633.85 13084299083.21
balance of the
current period
Legal representative: ZHAO Wenge Person in charge of accounting: WANG Dong Person in charge of the accounting body: ZHAO Difang
Statement of Changes in Owners’ Equity of Parent Company
January -December 2020
Unit: RMB2020
Item Paid-in capital (share Other comprehensiv e
Capital reserv es Less: treasury stocks Surplus reserv e Retained earnings Total owner's equity
capital) income
1. Balance at the end of prev ious 5443214176.00 1489516614.19 0.00 66421903.33 1236113435.98 4363644248.36 12598910377.86
y ear
Add: Changes in accounting policies
Correction f or prev ious errors
Others
II. Opening balance of the current 5443214176.00 1489516614.19 0.00 66421903.33 1236113435.98 4363644248.36 12598910377.86
y ear
III. YoY change (decrease is 46700000.00 343739901.03 137298000.00 15051280.51 128090896.77 1019721051.33 1416005129.64
indicated by “-”)
(1) Total comprehensiv e income 15051280.51 0.00 1280908967.74 1295960248.25
(2) Capital inv ested and reduced by 46700000.00 343739901.03 137298000.00 0.00 0.00 0.00 253141901.03
owner
1．Common shares contributed by 46700000.00 90598000.00 137298000.00 0.00
owners
2.Amount of share-based pay ment 1880981.38 1880981.38
into owner’s equity
3. Disposal of subsidiaries 251260919.65 251260919.65
(III) Prof its distribution 128090896.77 -509115889.09 -381024992.32
1．Withdrawal of surplus reserv e 128090896.77 -128090896.77
2. Distribution to owner (or -381024992.32 -381024992.32
shareholders)
(VI) Others 247927972.68 247927972.68
IV. Closing balance of the current 5489914176.00 1833256515.22 137298000.00 81473183.84 1364204332.75 5383365299.69 14014915507.50
period2019
Item Paid-in capital Other comprehensive
Capital reserves Surplus reserve Retained earnings Total ow ner's equity
(share capital) income
1. Balance at the end of previous year 5443214176.00 1489516614.19 -32352125.07 1080163928.92 3286691535.45 11267234129.49
Add: Changes in accounting policies 20083808.55 180754276.92 200838085.47
II. Opening balance of the current year 5443214176.00 1489516614.19 -32352125.07 1100247737.47 3467445812.37 11468072214.96
III. YoY change (decrease is indicated 98774028.40 135865698.51 896198435.99 1130838162.90
by “-”)
(1) Total comprehensive income 98774028.40 1358656985.06 1457431013.46
(2) Capital invested and reduced by
ow ner
(III) Profits distribution 135865698.51 -462458549.07 -326592850.56
1．Withdraw al of surplus reserve 135865698.51 -135865698.51
2. Distribution to ow ner (or -326592850.56 -326592850.56
shareholders)
IV. Closing balance of the current 5443214176.00 1489516614.19 66421903.33 1236113435.98 4363644248.36 12598910377.86
period
Legal representative: ZHAO Wenge Person in charge of accounting: WANG Dong Person in charge of the accounting body: ZHAO
Difang
III. Basic information of the Company
1. Company profile
√Applicable □Not applicable
Zhejiang China Commodities City Group Co. Ltd. (the “Company”) is a company
limited by share and was incorporated on Dec 28 1993 in Zhejiang province of the
People’s Republic of China. The RMB-denominated common A shares issued by
the Company got listed on Shanghai Stock Exchange on May 9 2002. The
Company is headquartered at No.105 Futian Road Yiwu Zhejiang.The Group’s main business activities: market development and operation and
supporting services provision of online trading platforms and services
development and management of online trading market etc. in the category of
comprehensive services.The parent company of the Group is Yiwu China Commodities City Holdings
Limited (hereinafter referred to as “CCCH”) and the final controller of the Group is
the State-owned Assets Supervision and Administration Office of the People’s
Government of Yiwu.These financial statements were approved by the company's board of directors on
April 28 2021. According to the company's articles of association these financial
statements are to be submitted to the general meeting of shareholders for
deliberation.2. Consolidation scope of financial statements
√Applicable □Not applicable
The consolidation of financial statements is determined on the basis of control. For
the changes in the current year please refer to Note VIII.IV. Preparation basis for financial statements
1. Basis of preparation
The financial statements of the Company were prepared on a going-concern basis.The financial statements were prepared in accordance with the Accounting
Standards for Enterprises-Basic Standards and the specific accounting standards
application guidelines interpretations and other related regulations promulgated
and amended thereafter (collectively referred to as “Accounting Standards”).The financial statements were all prepared based on the valuation principle of
historical cost except for certain financial instruments. If an asset is impaired the
corresponding provision for impairment should be made in accordance with relevant
regulations.2. Going concern
√Applicable □Not applicable
The Company prepared its financial statements on a going-concern basis. The
management of the Company expected that the Group would generate adequate
cash inflow from the future day-to-day operation which in combination with the
Group’s adequate lines of credit from banks could be sufficient to repay its due
debts.V. Important Accounting Policies and Accounting Estimates
Reminders on specific accounting policies and accounting estimates:
√Applicable □Not applicable
The Group has formulated specific accounting policies and accounting estimates
based on the characteristics of actual production and operation which are mainly
reflected in the bad debt provisions for receivables inventory valuation methods
depreciation of fixed assets amortization of intangible assets income recognition
and measurement recognition of property investments and fixed assets and
service life and residual value of fixed assets.1. Statement on compliance with Accounting Standards for Business Enterprises
The financial statements prepared by the Company comply with the requirements of
the Accounting Standards and truly and completely reflect the Company’s financial
conditions operating results changes in shareholders’ equity cash flows and other
related information.2. Fiscal period
The Company’s accounting year is from Jan 1 to Dec 31 of each calendar year.3. Operating cycle
√Applicable □Not applicable
The business cycle of the company is relatively short and 12 months are used as
the standard for defining the liquidity of assets and liabilities.4. Bookkeeping currency
The Company’s functional currency is RMB.The Group uses RMB as its functional currency and in the preparation of financial
statements. Unless specifically stated all amounts are expressed in RMB.The subsidiaries joint ventures and associates of the Group determine their
functional currencies at their own discretion based on the main economic
environments in their places of businesses and convert all amounts into RMB while
preparing financial statements.5. Accounting methods for merger of the enterprises under common control and
merger of the enterprises not under common control
√Applicable □Not applicable
Business mergers are divided into business mergers under the same control a nd
business mergers not under the same control.Business merger under the same control
If the enterprises participating in the merger are ultimately controlled by the same
party or the same parties before and after the merger and the control is not
temporary the deal is a business merger under the same control. For a business
merger under the same control the party that acquires control of other participating
companies on the merger date is the merging party and the other enterprise
participating in the merger are the merged party. The merger date refers to the date
on which the merging party actually obtains control of the merged party.The assets and liabilities acquired by the merging party in a merger of the
enterprises under common control (including the goodwill formed through the
acquisition of the merged party by the ultimate controller) are accounted according
to the book value thereof in the ultimate controller’s financial statements on the date
of merger. For the difference between the book value of the net assets obtained by
the merging party and the book value of the consideration paid for the merger (or
the total nominal value of the shares issued) the share capital premium in the
capital reserve shall be adjusted; if the share capital premium is not sufficient to
absorb the difference the retained earnings shall be adjusted.Business merger not under common control
If the enterprises participating in the merger are not under the ultimate control of the
same party or the same parties before and after the merger the deal is business
merger not under the same control. For a business merger not under the same
control the party that acquires control of other participating companies on the
acquisition date is the acquirer and the other companies participating in the merger
are the acquiree. The acquisition date refers to the date on which the acquirer
actually obtains control of the acquiree.The acquiree’s identifiable assets liabilities and contingent liabilities obtained from
the merger of the enterprises not under common control are measured at their fair
values on the date of acquisition.If the sum of the fair value of the consideration paid for the merger (or fair value of
the equity securities issued) and the fair value of the acquiree’s equity held before
the date of acquisition is higher than the share in the fair value of the acquiree’s
identifiable net assets acquired from the merger the difference between them is
recognized as goodwill which will be subsequently measured by the cost less
accumulated impairment loss. If the sum of the fair value of the consideration paid
for the merger (or fair value of the equity securities issued) and the fair value of the
acquiree’s equity held before the date of acquisition is lower than the share in the
fair value of the acquiree’s identifiable net assets acquired from the merger the
measurement of the fair value of the acquiree’s identifiable assets liabilities and
contingent liabilities the fair value of the consideration paid for the merger (or fair
value of the equity securities issued) and the fair value of the acquiree’s equity held
before the date of acquisition will be reviewed and if the sum of the fair value of the
consideration paid for the merger (or fair value of the equity securities issued) and
the fair value of the acquiree’s equity held before the date of acquisition is still lower
than the share in the fair value of the acquiree’s identifiable net assets acquired
from the merger after such review the difference will be recognized in the profit and
loss for the current period.For mergers of the enterprises not under common control that are executed through
multiple transactions the long-term equity investment of the acquiree before the
date of acquisition shall be re-measured based on the fair value thereof on the date
of acquisition and any difference between the fair value and book value thereof
shall be recognized in the profit and loss for the current period; other
comprehensive income from the long-term equity investment of the acquiree before
the date of acquisition under the equity method shall be accounted on the same
basis as that for the direct disposal of related assets or liabilities by the investee
and other changes in shareholders’ equity than net profi t and loss other
comprehensive income and profit distribution shall be recognized in the profit and
loss for the period where the date of acquisition falls.6. Preparation method of consolidated financial statements
√Applicable □Not applicable
The financial statements to be consolidated is determined on the basis of control
including those of the Company and all of its subsidiaries. Subsidiaries refer to the
entities controlled by the Company (including the severable parts of enterprises and
invested entities and the structured entities controlled by the Company).In the preparation of consolidated financial statements the subsidiaries adopt the
same accounting year and accounting policies as those adopted by the Company.Assets liabilities equity income expenses and cash flows generated from all deals
between companies within the Group are fully offset at the time of merger.If the amount of loss for the current period attributable to the minority shareholders
of a subsidiary exceeds the minority shareholders’ share in the opening balance of
shareholders’ equity in the subsidiary the excess will still be recognized against
minority interest.For a subsidiary acquired through a business merger not under the same control
the operating results and cash flows of the acquiree will be included in the
consolidated financial statements from the day when the Group acquires control
until the control of the Group ceases. In the preparation of consolidated financial
statements adjustments will be made to the fi nancial statements of the subsidiary
based on the fair value of its identifiable assets liabilities or contingent liabilities
determined on the date of acquisition.For a subsidiary acquired through a business merger under the same control the
operating results and cash flows of merged party will be included in the
consolidated financial statements since the beginning of the current period of the
merger. In the preparation of consolidated financial statements adjustments will be
made to the related items in its previous financial statements as if the reporting
entity formed after the merger has been existing as from the ultimate controller
starts to exercise control.In case of any change to one or more elements of the control due to the changes in
related facts and circumstances the Group will re-evaluate whether to control the
investee.7. Classification of joint arrangements and accounting treatment of joint operations
√Applicable □Not applicable
Joint arrangements are divided into joint operations and joint ventures. Joint
operation refers to a joint arrangement in which the parties thereto enjoy the assets
relating to such arrangement and assume the liabilities relating to such
arrangement. Joint venture refers to a joint arrangement in which the parties thereto
only enjoy rights to the net assets in this arrangement.Each party to a joint arrangement recognizes the following items relating to its share
in the joint operation: assets held individually by it and assets held jointly based on
its share; liabilities assumed individually by it and liabilities assumed jointly based
on its share; revenue from the sale of its share in the output of the joint operation;
revenue from the sale of the output of the joint operation based on its share;
expenses incurred individually by it and expenses incurred by the joint operation
based on its share.8. Standard for determining cash and cash equivalents
Cash refers to the Group’s cash on hand and deposits that can be used for payment
at any time; cash equivalent refers to the investment held by the Group with a short
term strong liquidity easy to convert into cash with a known amount and with low
risk of value changes.9. Foreign currency transactions and translation of foreign currency financial
statements
√Applicable □Not applicable
For foreign currency transactions the Group will translate the foreign currency
amounts into its functional currency amounts.In the initial recognition of a foreign currency transaction the foreign currency
amount is translated to a functional currency amount according to the spot
exchange rate on the date of transaction. On the balance sheet date the foreign
currency monetary items are translated according to the spot exchange rate on the
balance sheet date. The translation difference between settlement and monetary
items is recognized in the profit and loss for the current period except for the
difference arising from the special foreign currency borrowing relating to the
acquisition and construction of the assets qualified for capitalization which will be
treated based on the principles for the capitalization of borrowing expenses. The
foreign currency non-monetary items measured by historical cost are also
translated according to the spot exchange rate on the date of transaction without
changing the functional currency amounts thereof. The foreign currency
non-monetary items measured by fair value are translated according to the spot
exchange rate on the fair value determination date and the difference arising
therefrom is recognized in the profit and loss or other comprehensive income for the
current period based on the nature of the items.The Group translates the functional currency of its foreign business into RMB while
preparing the financial statements. The assets and liabilities items in the balance
sheet are translated according to the spot exchange rate on the balance sheet date
the shareholders’ equity items are translated according to the spot exchange rate at
the occurrence of the items except for “undistributed profits”; revenue and expenses
items in the income statement are translated according to the average exchange
rate during the period in which the transaction happens. The translation differences
of foreign currency statements arising from the above translations are recognized
as other comprehensive income. For the disposal of foreign business other
comprehensive income relating to the foreign business is recognized in the profit
and loss of the disposal for the current period and is calculated pro rata for partial
disposal.The foreign currency cash flow and cash flow of foreign subsidiaries are translated
according to the spot exchange rate on the occurrence date of cash flow/average
exchange rate during the period in which the cash flow occurs. The amount of
impact of the changes in exchange rate on cash is separately stated in the cash
flow statement as an adjustment item.10. Financial instruments
√Applicable □Not applicable
Financial instruments refer to the contracts which form financial assets of an
enterprise and form financial liabilities or equity instruments of other entities.Recognition and de-recognition of financial instruments
The Group recognizes a financial asset or financial liability at the time of becoming
a party to a financial instrument contract.The Group will derecognize a financial asset (or a part of the financial asset or a
part of a group of similar financial assets) i.e. writing off the asset from its account
and balance sheet if:
(1) The right to receive cash flows from financial assets expires;
(2) The Group has transferred the right to collect the cash flow of financial assets or
assumed the obligation to pay the collected cash flow in full to a third party in a
timely manner under the “handover agreement”; and (a) substantially transferred
almost all risks and rewards related to the ownership of financial assets or
(b)waived the control over the financial asset although almost all the risks and
rewards of the ownership of the financial asset are neither transferred nor retained.If a financial liability has been fulfi lled revoked or expired it will be derecognized. If
an existing financial liability is replaced by the same creditor with another financial
liability under substantially different terms or the terms of the existing liability are
substantially modified in whole the existing liability will be derecognized and the
new liability wi ll be recognized and the difference will be recognized in the profit
and loss for the current period.For the transactions of financial assets in regular ways the recognition and
de-recognition thereof will be conducted based on the accounting on the transaction
date. Transactions of financial assets in regular ways refer to the collection or
delivery of financial assets within the time limit prescribed by laws and regulation or
prevailing practices in accordance with the contract terms. The transaction date
refers to the date when the Group promises to buy or sell the financial assets.Classification and measurement of financial assets
Based on the Group’s business model for the management of financial assets and
the features of the contractual cash flow of financial assets the Group’s financial
assets are classified at initial recognition into the financial assets that are measured
by fair value and of which the changes in fair value are recognized in the profit and
loss for the current period the financial assets measured by amortized cost and the
financial assets that are measured by fair value and of which the changes in fair
value are recognized in other comprehensive income.If a financial asset is measured by fair value at initial recognition but the accounts
receivable or notes receivable from the sale of goods or rendering of service do not
include significant financing components or the financing components with a term
no longer than one year are not considered the initial measurement will be made
based on the transaction price.For the financial assets that are measured by fair value and of which the changes in
fair value are recognized in the profit and loss for the current period the related
transaction fees will be directly recognized in the profit and loss for the current
period; the related transaction fees of other financial assets will be recognized in the
initially recognized amounts thereof.The subsequent measurement of financial assets depends on the classification
thereof:
Investment in debt instruments measured by amortized cost
A financial asset is classified into those measured by amortized cost if the business
model for the management of the asset is for the purpose of collecting contractual
cash flow; and the terms of the contract of the asset stipulate that the cash flow
generated on the specific date is only the repayment of principal and the payment of
interest on the outstanding principal. The interest income of such financial assets is
recognized with the effective interest method and the profit and loss from the
de-recognition modification or impairment thereof are all recognized in the profit
and loss for the current period.Investment in the equity instruments that are measured by fair value and of which
the changes in fair value are recognized in other comprehensive income
The Group has irrevocably chosen to designate some non-trading equity instrument
investments as the financial assets that are measured by fair value and of which the
changes in fair value are recognized in other comprehensive income. Only the
related dividend income (except for the dividend income expressly acting as a
recovery of investment cost) is recognized in the profit and loss for the current
period while the subsequent changes in fair value are recognized in other
comprehensive income and no provision is required for impairment. When the
financial assets are derecognized the accumulated profit and loss previously
recognized in other comprehensive income will be moved out of other
comprehensive income and recognized in retained earnings.Financial assets that are measured at fair value and whose changes are included in
the current profit and loss
The financial assets other than the above financial assets measured by amortized
cost and the above financial assets that are measured by fair value and of which the
changes in fair value are recognized in other comprehensive income are classified
as the financial assets that are measured by fair value and of which the changes in
fair value are recognized in the profit and loss for the current period. Those financial
assets are subsequently measured by fair value and all changes in the fair value
thereof are recognized in the profit and loss for the current period.Classification and measurement of financial liabilities
The Group’s financial liabilities are classified at initial recognition into the financial
liabilities that are measured by fair value and of which the changes in fair value are
recognized in the profit and loss for the current period and other financial assets.For the financial liabilities that are measured by fair value and of which the changes
in fair value are recognized in the profit and loss for the current period the related
transaction fees are recognized directly in the profit and loss for the current period
while the related transaction fees of other financial liabilities are recognized in the
initially recognized amounts thereof.The subsequent measurement of financial liabilities depends on the classification
thereof:
Financial liabilities that are measured at fair value and whose changes are included
in the current profit and loss
The financial liabilities that are measured by fair value and of which the changes in
fair value are recognized in the profit and loss for the current period include financial
liabilities held for trading (including the derivative instruments as financial liabilities)
and the liabilities that are designated at initial recognition as the financial liabilities
that are measured by fair value and of which the changes in fair value are
recognized in the profit and loss for the current period. The financial liabilities held
for trading (including the derivative instruments as financial liabilities) are
subsequently measured by fair value and all changes in the fair value are
recognized in the profit and loss for the current period.Other financial liabilities
Those financial liabilities are subsequently measured by amortized cost with the
effective interest method.Impairment of financial instruments
The Group has treated and recognized the impairment of the financial assets
measured by amortized cost based on the expected credit loss.For receivables that do not contain significant financing components the Group
measures the loss provision based on the amount of expected credit loss equivalent
to the entire duration under a simplified measurement method
For the financial assets not measured with the simplified method the Group
evaluates on each balance sheet date whether their credit risks have increased
significantly since the initial recognition. If the credit risk of a financial asset has not
increased significantly since the initial recognition the asset is in the first stage and
the Group will make provision for loss based on the amount of expected credit loss
within the coming 12 months and calculate interest income based on the book
balance and effective interest rate; if the credit risk has increased significantly since
the initial recognition but credit has not been impaired the asset is in the second
stage and the Group will make provision for loss equivalent to the amount of
expected credit loss during the entire term and calculate interest income based on
the book balance and effective interest rate; if credit has been impaired after the
initial recognition the asset is in the third stage and the Group will make provision
for loss equivalent to the amount of expected credit loss during the entire term and
calculate interest income based on the amortized cost and effective interest rate.The Group evaluates the expected credit losses of financial instruments on the
individual and group bases. It evaluates the expected credit loss of accounts
receivable by taking into account the credit risk characteristics of different clients
and based on the account aging-based asset groups.The Group's criteria for judging a significant increase in credit risk the definition of
credit-impaired assets and the assumptions for the measurement of expected
credit losses are disclosed in Note VIII.2.When the Group no longer reasonably expects that it can recover the contractual
cash flow of a financial asset in whole or in part it will directly write down the book
balance of the asset.11. Notes receivable
Determination and accounting treatment of the expected credit loss of notes receivable
□Applicable√Not applicable
12. Accounts Receivable
Determination and accounting treatment of the expe cted credit loss of accounts
receivable
√Applicable □Not applicable
Please refer to Notes X-2. Risks of Financial Instruments
13. Accounts receivable financing
□Applicable √Not applicable
14. Other receivables
Determination and accounting treatment of the expected credit loss of other receivables
√Applicable □Not applicable
Please refer to Notes X-2. Risks of Financial Instruments
15. Inventories
√Applicable □Not applicable
Inventory includes raw materials work-in-progress materials finished goods real
estate development costs and real estate development products.Inventory is initially measured by cost. The costs of inventory except development
costs and development products include the procurement cost processing cost and
other costs. The actual costs of items out of inventory are determined with the
weighted average method. Work-in-progress materials include low-value
consumables and packages which are amortized with the one-off amortization
method.Development costs refer to the properties that have not been completed and are
developed for the purpose of being sold. Development products refer to the
properties that have been completed and are ready for sale. The actual costs of real
estate development costs and development products include the land acquisition
cost expenditures on construction and installation works capitalized interest and
other direct and indirect development expenses. The use right of the land for
development purpose at the development of a project is amortized and recognized
as the development cost of the project based on the site area of the development
product and the development cost will be changed over to development product
after being completed.If the public auxiliary facilities are completed earlier than the related development
product the facilities will be allocated to and recognized in the development cost of
related development project based on the floor space of the project after final
accounting of the facilities upon completion; if the public auxiliary facilities are
completed later than the related development product they will be recognized in the
development cost of related development project based on the predicted cost of the
public auxiliary facilities.Hotel catering and fresh goods inventories are subject to onsite inventory while
other inventories are subject to perpetual inventory.On the balance sheet date inventory is measured by cost and net realizable value
whichever is lower. If the cost is higher than the net realizable value provision will
be made for inventory depreciation which will be recognized in the profit and loss
for the current period. If the impact of the previous provision for inventory
depreciation has disappeared and the net realizable value of the inventory becomes
higher than the book value thereof the amounts written down previously in the
original provision for inventory depreciation will be restituted and recognized in the
profit and loss for the current period.Net realizable value is the estimated selling price of inventory less the cost
estimated to occur as of completion estimated sales expenses and related taxes. In
principle provisions for inventory depreciation shall be made for inventory items
individually. For the inventory with a large quantity and a low unit price inventory
depreciation provision will be made based on the Groups of items.16. Contract assets
(1).Determination and criteria for contract assets
√Applicable □Not applicable
The Group presents contractual assets or contractual liabilities in the balance sheet based
on the relationship between performance obligations and customers’ payments. The Group
offsets the contractual assets and contractual liabilities under the same contract as a net
amount.A contractual asset refers to the right to receive a consideration for the transfer of
goods or services to a customer and this right depends on the factors other than
the passage of time.
(2).Determination and accounting treatment of the expected credit loss of contract
assets
□Applicable √Not applicable
17. Held-for -sale assets
□Applicable √Not applicable
18. Debt investments
(1).Determination and accounting treatment of the expected credit loss of debt
investments
□Applicable √Not applicable
19. Other debt investments
(1).Determination and accounting treatment of the expected credit loss of other debt
investments
□Applicable √Not applicable
20. Long-term receivables
(1).Determination and accounting treatment of the expected credit loss of long-term
receivables
□Applicable √Not applicable
21. Long-term equity investment
√Applicable □Not applicable
Long-term equity investment includes equity investment in subsidiaries joint
ventures and associates.Long-term equity investment is initially measured by the initial investment cost at
the time of being acquired. For a long-term equity investment acquired through a
business merger under the same control the initial investment cost is the share of
the book value of the merged party’s owner’s equity acquired on the merger date in
the ultimate controlling party’s consolidated financial statements; The difference
between the initial investment cost and the book value of the merger consideration
is adjusted to the capital reserve (if it is insufficient to offset the retained earnings
will be offset); other comprehensive income before the merger date is accounted for
on the same basis as that for the investee’s direct disposal of related assets or
liabilities when disposing of the investment. The shareholders’ equity recognized by
the investee due to the changes in shareholders’ equity other than net profit and
loss other comprehensive income and profit distribution is transferred to the
current profit and loss when the investment is disposed of; those that are sti ll
long-term equity investments after disposal are carried forward in proportion and
those that are converted into financial instruments after disposal are carried forward
in full. For a long-term equity investment acquired through a business merger not
under the same control the merger cost shall be used as the initial investment cost
(for the business merger not under the same control realized step by step in a
package deal the sum of the book value and the new investment cost on the
acquisition date is used as the initial investment cost). The merger cost includes the
sum of fair values of the assets paid the liabilities incurred or assumed and the
equity securities issued by the acquirer; the other comprehensive income held prior
to the acquisition date that is recognized for accounting under the equity method is
accounted for on the same basis as that for the investee’s direct disposal of related
assets or liabilities when disposing of the investment. The shareholders’ equity
recognized by the investee due to the changes in shareholders’ equity other than
net profit and loss other comprehensive income and profit distribution is
transferred to the current profit and loss when the investment is disposed of; those
that are still long-term equity investments after disposal are carried forward in
proportion and those that are converted into financial instruments after disposal are
carried forward in full. The initial investment costs of the long-term equity
investment acquired other than through merger are determined with the following
methods: if an investment is acquired through the payment of cash its initial
investment cost consists of the purchase price actually paid and the expenses
taxes and other necessary expenses directly relating to the acquisition of the
investment; and if an investment is acquired through the offering of equity
securities its initial investment cost is the fair value of the equity securities offered.For the accounting of the long-term equity investment through which the Company
can exercise control over the investees the Company adopts the cost method in
individual financial statements. Control refers to the power over an investee with
which the investor enjoys variable return by participating in the investee’s related
activities and is able to exercise its power over the investee to affect the amount of
return.In the cost method the long-term equity investment is measured by initial
investment cost. If the investment is added or recovered the cost of long-term
equity investment will be adjusted. The cash dividend or profit declared by the
investees to be distributed is recognized as the investment income for the current
period.If the Group has joint control over or significant influence on the investee the
long-term equity investment will be measured with the equity method. Joint control
refers to joint control over an arrangement in accordance with related agreements
and decisions on the activities relating to the arrangement shall be made only after
the parties sharing the control reach an agreement. Significant influence refers to
the power over the decision-making on the financial affairs and business policies of
the investee but the investor does not have control or joint control with others over
the formulation of those policies.In the equity method if the initial investment cost of long-term equity investment is
higher than the share enjoyed by the Group in the fair value of the investee’s
identifiable net assets at investment the excess will be recognized in the initial
investment cost of the long-term equity investment; if the initial investment cost of
long-term equity investment is lower than the share enjoyed by the Group in the fair
value of the investee’s identifiable net assets at investment the difference will be
recognized in the profit and loss for the current period and the cost of the long-term
equity investment will be adjusted simultaneously.In the equity method after long-term equity investment is acquired the investment
profit and loss and other comprehensive income shall be recognized and the book
value of the long-term equity investment shall be adjusted based on the share in the
net profit and loss and other comprehensive income realized by the investees to be
enjoyed or assumed. The share in the investee’s net profit and loss to be enjoyed
shall be determined based on the fair value of the investee’ s identifiable assets at
the acquisition of investment according to the Group’s accounting policies and
accounting periods and after net profits of the investee are adjusted with the portion
of profit and loss from the internal transactions with its associates and joint ventures
that is attributable to the investor based on the share to be enjoyed by it (but if the
loss from internal transactions falls in the assets impairment loss it shall be
recognized in full) offset except for the invested and sold assets that constitute
businesses. The book value of long-term equity investment shall be reduced
according to the share to be enjoyed by it in the profits or cash dividend declared by
the investees to be distributed. For an investee’s net losses recognized by the
Group the book value of the long-term equity investment and other long-term equity
that substantially constitute net investment in the investee shall be written down to
zero at maximum except for the extra losses for which the Group is liable. For the
investee’s other changes in shareholders’ equity other than net profit and loss other
comprehensive income and profit distribution the book value of the long-term
equity investment will be adjusted and the changes will be recognized in the
shareholders’ equity.For the disposal of long-term equity investment the difference between the book
value of long-term equity investment and the proceeds actually received from the
disposal thereof is recognized in the profits or loss for the current period. For the
long-term equity investment measured with the equity method if the equity method
is terminated due to the disposal the original related other comprehensive income
measured with the equity method will be accounted on the same basis as that for
the direct disposal of related assets or liabilities by the investees and the
shareholders’ equity recognized due to the investees’ other changes in
shareholders’ equity than net profit and loss other comprehensive income and
profit distribution will be recognized in the profits or loss for the current period in full;
if the equity method is still adopted the original related other comprehensive
income measured with the equity method will be accounted on the same basis as
that for the direct disposal of related assets or liabilities by the investees and
recognized in the profits or loss for the current period pro rata and the
shareholders’ equity recognized due to the investees’ other changes in
shareholders’ equity than net profit and loss other comprehensive income and
profit distribution will be recognized in the profit and loss for the current period pro
rata.Where the Company loses control over a subsidiary due to step-by-step disposal of
its equity investment in the subsidiary through multiple transactions if the
transactions constitute a package of deals each transaction will be accounted as a
transaction that disposes of the subsidiary and causes the loss of control over the
subsidiary; however the difference between the proceeds from each disposal and
the book value of the corresponding long-term equity investment disposed of is
recognized as other comprehensive income in individual financial statements
before the Company loses control and is recognized in the profits or loss for the
period in which the control is lost at the loss of control. If the transactions do not
constitute a package of deals each transaction will be accounted separately. In the
event that the Company loses control if the residual equity after the disposal
enables the Company to have joint control over or significant influence on the
subsidiary it will be recognized as long-term equity investment in individual
financial statements and be accounted in accordance with the relevant rules for
changing the cost method to the equity method; otherwise it will be recognized as a
financial instrument and the difference between its fair value on the date of the loss
of control and its book value will be recognized in the profit and loss for the current
period.22. Investment real estate
(1).In cost measurement model:
Depreciation or amortization methods
A property investment is a real estate property held with the intention of earning
rents or of capital appreciation or both including land use rights that have been
leased land use rights that are held and ready to be transferred after appreciation
and buildings that have been leased.Property investments are initially measured by cost. The subsequent expenses
relating to an property investment will be recognized in the cost of the property
investment if the economic benefits relating to the asset are very likely to flow in and
the cost thereof can be measured reliably. Otherwise they will be recognized in the
profit and loss for the current period at the time of being incurred.The Group subsequently measures its property investments with the cost model.The depreciation/amortization of property investments is calculated on a straight
line basis. The service life estimated net residual value and annual depreciation
rate of property investments are as follows:
Service life Estimated net Annual
residual value depreciation rate
Houses and 20-30 years 4% 3.2%-4.8%
buildings
Land use rights 40-70 years - 1.4%-2.5%
23. Property plant and equipment
(1).Recognition requirements
√Applicable □Not applicable
Property plant and equipment are only recognized when the economic benefits
related to them are likely to flow into the Group and their costs can be reliably
measured. If meeting the above recognition requirement the subsequent expenses
relating to a fixed asset will be recognized in the cost of the fixed asset and the
book value of the replaced part will be deleted; otherwise the subsequent expenses
will be recognized in the profit and loss for the current period at the time of being
incurred.Fixed assets are initially measured by cost. The costs of purchasing a fixed asset
include the purchase price related taxes and other expenses that are incurred
before the fixed asset is made to the predetermined ready-for-use status and are
directly attributable to the asset.
(2).Depreciation method
√Applicable □Not applicable
Depreciation
Annual
Depreciation period Residual value
Type depreciation
method (number of rate
rate
years)
Houses and Straight-line 10-40 4% 2.4%-9.6%
buildings method
General Straight-line 5-10 4% 9.6%-19.2%
equipment method
Transport Straight-line 6 4% 16.0%
vehicles method
(3).Identification basis pricing and depreciation method of the fixed assets under
financial lease
√Applicable □Not applicable
For the property plant and equipment under financing lease the leased asset is
depreciated under the same policy as that for the property plant and equipment for
own use. If it can be reasonably determined that the ownership of a leased asset
will be acquired upon expiry of the lease term the depreciation will be based on its
service life; if it cannot be reasonably determined that the ownership of a leased
asset can be acquired upon expiry of the lease term the depreciation will be based
on the lease term or the service life of the asset whichever is shorter.24. Construction in progress
√Applicable □Not applicable
The cost of construction in progress is determined based on the actual expenses
including the necessary expenses on the works incurred during the construction
the borrowing costs incurred before the works reach the predetermined
ready-for-use status that shall be capitalized and other related expenses.The construction in progress will be recognized as fixed assets property investment
and long-term prepaid expenses when reaching the predetermined ready-for-use
status.25. Borrowing costs
√Applicable □Not applicable
Borrowing costs refer to the interests incurred by the Group for its borrowings and
other related costs including interest amortization of discounts or premiums
ancillary costs and exchange difference arising from foreign currency borrowings.Borrowing costs that are directly attributable to the acquisition construction or
production of the assets qualified for capitalization shall be capitalized and other
borrowing costs shall be recognized in the profit and loss for the current period. The
assets qualified for capitalization refer to the fixed assets property investment
inventory and other assets that can reach the predetermined ready-for-use or sale
status only after a quite long time of acquisition construction or production.Borrowing costs can start to be capitalized only if they meet the following
requirements simultaneously:
(1) Asset expenditure has occurred;
(2) Borrowing costs have been incurred;
(3) The acquisition or production activities necessary for the asset to reach the
intended usable or saleable state have already begun.The borrowing costs for the assets qualified for capitalization shall cease being
capitalized when the assets reach the predetermined ready-for-use or sale status
after the acquisition construction or production. The borrowing costs incurred
subsequently will be recognized in the profit and loss for the current period.During capitalization the amount of interest to be capitalized during each
accounting period is determined as follows:
(1) Special borrowings are determined by the actual interest expense in the current
period minus income from interest over temporary deposits or investment income.
(2) Occupied general borrowings are calculated and determined by multiplying the
weighted average of asset expenditures for the portion of accumulated asset
expenditures beyond special borrowings by the weighted average interest rate of
the occupied general borrowings.If an asset qualified for capitalization is interrupted abnormally for more than three
months during its acquisition construction or production except due to the
necessary procedures for it to reach the predetermined ready-for-use or sale status
the capitalization of its borrowing costs will be suspended. The borrowing costs
incurred during the interruption will be recognized as expenses and in the profit and
loss for the current period until the acquisition construction or production of the
asset is resumed.26. Biological assets
□Applicable √Not applicable
27. Oil and gas assets
□Applicable √Not applicable
28. Right-of-use assets
□Applicable √Not applicable
29. Intangible assets
(1).Measurement method service life and impairment test
√Applicable □Not applicable
Intangible assets will be recognized only if the economic benefits relating thereto
are very likely to flow into the Group and the costs thereof can be measured
reliably and will be initially measured by cost. However the intangible assets
acquired from the merger of the enterprises not under common control will be
individually recognized so long as the fair values thereof can be measured reliably
and will be measured by fair value.The service life of an intangible asset is determined based on the term during which
it can bring economic benefits to the Group. If the term during which an intangible
asset can bring economic benefits to the Group is unforeseeable it will be deemed
as an intangible asset with uncertain service life.The service life of intangible assets is as follows:
Type Service life
Land use rights 40-50 years
Software 10 years
The land use rights acquired by the Group are generally accounted as intangible
assets. The buildings constructed by the Group itself the related land use rights
and buildings are accounted as intangible assets and fixed assets respectively. The
price paid for the land and buildings purchased externally shall be allocated
between the land use rights and buildings. If it is hard to reasonably allocate the
price the price in full will be treated as fixed assets.The intangible assets with finite service life shall be amortized with the straight-line
method during their service life. The Group reviews and makes adjustment to if
necessary the service life and amortization method of its intangible assets with
finite service life at least at the end of each year.
(2).Accounting policies for internal R&D expenses
√Applicable □Not applicable
The Group divides expenditures for internal R & D projects into research
expenditures and development expenditures. Research expenditures are included
in the current profits and losses when incurred. Development expenditures can be
capitalized only when all of the following conditions are met at the same time that
is it is technically feasible to complete the intangible asset to make them usable or
saleable; there is an intention to complete the intangible asset and use or sell it; the
way for intangible assets to generate economic benefits including the ability to
prove that there are markets for the products generated by the intangible assetsor
the intangible assets themselves. Intangible assets that wi ll be used internally can
prove their usefulness; there are sufficient technology financial resources and other
resource supports to complete the development of the intangible asset and ability to
use or sell the intangible asset; the expenditure attributable to the development of
such intangible asset can be reliably measured. Development expenditures that do
not satisfy the above conditions are included in the current profits and losses when
incurred.30. Impairment of long-term assets
√Applicable □Not applicable
The Group determines the impairment of the assets other than inventory deferred
income tax and financial assets with the following methods.The Group decides on the balance sheet date whether an asset has a sign of
impairment. If it has a sign of impairment the Group will estimate its recoverable
value and carry out an impairment test. For the goodwill formed due to the merger
of enterprises and the intangible assets with uncertain service li fe the Group carries
out impairment tests at least at the end of each year regardless of the impairment
signs. For the intangible assets that have not been ready for use the Group also
carries out impairment tests every year.The recoverable value of an asset is determined based on the fair value of the asset
less the disposal expenses or the present value of the expected future cash flows of
the asset whichever is higher. The Group estimates the recoverable value of each
asset. For an asset whose recoverable value is hard to be estimated the Group
estimates the recoverable value of the assets group which the asset belongs to. An
assets group is identi fied based on whether the main cash inflows from the Group
are independent from the cash inflows from other assets or assets groups.When the recoverable value of an asset or assets group is lower than its book
value the Group will write down its book value to the recoverable value and the
amount written down will be recognized in the profit and loss for the current period;
meanwhile it will make provision for the impairment thereof.The above assets impairment loss will not be reversed during the subsequent
accounting periods.31. Long-term deferred expenses
√Applicable □Not applicable
Long-term prepaid expenses are amortized with the straight-line method and the
amortization periods are as follows:
Amortizati
on period
Decorations for houses and buildings 3-5 years
Advertising facilities 3-5 years
32. Contract liabilities
(1).Recognition of contract liabilities
√Applicable □Not applicable
The Group presents contractual assets or contractual liabilities in the balance sheet based
on the relationship between performance obligations and customers’ payments. The Group
offsets the contractual assets and contractual liabilities under the same contract as a net
amount.A contractual liability refers to an obligation to transfer goods or services to a
customer for the consideration received or receivable from the customer such as
the amount received by the enterprise before the transfer of committed goods or
services.33. Employee compensations
(1).Accounting treatment of short-term compensations
√Applicable □Not applicable
The short-term compensations actually incurred during the accounting period when
the employees provide service for the Group are recognized as liabilities and are
recognized in the profit and loss for the current period or costs of related assets.
(2).Accounting treatment of post-employment benefits
√Applicable □Not applicable
The employees of the Group participate in the endowment insurance and
unemployment insurance managed by the local government as well as the
enterprise annuity and the corresponding expenditures are included in the relevant
asset cost or current profit and loss when incurred.
(3).Accounting treatment of severance benefits
√Applicable □Not applicable
Where the Group provides severance benefits to its employees the employee
compensation liabilities arising from the severance benefits will be recognized and
the amount will be recognized in the profit and loss for the current period on the
earlier date below: the date when the Group cannot unilaterally withdraw the
severance benefits provided as a result of the employment termination plan or
downsizing proposal; or the date when the Group recognizes the costs or expenses
relating to the reorganization involving the payment of severance benefits.
(4).Accounting treatment of other long-term employee benefits
□Applicable √Not applicable
34. Lease liabilities
□Applicable √Not applicable
35. Estimated liabilities
√Applicable □Not applicable
Except for the contingent considerations and contingent liabilities assumed in the
mergers of enterprises not under common control an obligation relating to
contingent matters will be recognized by the Group as estimated liabilities if meeting
the following requirements simultaneously:
(1) This obligation is the current obligation assumed by the Group;
(2) The performance of such obligation is likely to cause outflow of economic
benefits from the Group;
(3) The amount of such obligation can be measured reliably.
Estimated liabilities are initially measured based on the best estimate of the
expenses required for the performance of related current obligations and the risks
uncertainties and time value of money relating to the contingent matters are also
factored in. The book value of estimated liabilities is reviewed on each balance
sheet date. If any conclusive evidence indicates that the book value cannot reflect
the current best estimate the book value will be adjusted based on the current best
estimate.36. Share-based payment
√Applicable □Not applicable
Share-based payment is divided into equity-settled share-based payment and
cash-settled share-based payment. An equity-settled share-based payment refers
to a deal in which the Group uses shares or other equity instruments as the
consideration for settlement to obtain services.The equity-settled share-based payment in exchange for services provided by
employees shall be measured at the fair value of the equity instruments granted to
employees. If it can be exercised immediately after the grant it shall be included in
the relevant costs or expenses at fair value on the grant date and the capital
reserve shall be increased accordingly; if it cannot be exercised until the service
within the waiting period has been completed or the specified performance
conditions have been satisfied on each balance sheet date during the waiting
period the Group will based on the best estimate of the number of exercisable
equity instruments include the services acquired in the current period as relevant
costs or expenses based on the fair value on the grant date and increase the
capital reserve accordingly .None of cost or expense shall be recognized for a share payment that cannot be
exercised due to failure to meet non-market conditions and/or service period
conditions. Where market conditions or non-exercising conditions are stipulated in
the share-based payment agreement regardless of whether the market conditions
or non-exercising conditions are satisfied it shall be deemed as exercisable as long
as all other performance conditions and/or service period conditions have been
satisfied.If the equity-settled share payment is canceled it wi ll be treated as an accelerated
exercise on the cancellation day and the unrecognized amount shall be recognized
immediately. If an employee or other party has option to satisfy the non-exercising
conditions but fails to satisfy within the waiting period it shall be treated as
cancellation of equity-settled share-based payment. However if a new equity
instrument is granted and if it is determined that the new equity instrument granted
is used to replace the canceled equity instrument on the grant date of the new
equity instrument the replacement equity instruments granted in the same way
shall be treated in the same way as that for the modification of the terms and
conditions for the original equity instrument.37. Preferred stocks perpetual bonds and other financial instruments
□Applicable √Not applicable
38. Incomes
(1).Accounting policies for the recognition and measurement of revenue
√Applicable □Not applicable
Incomes from contracts with customers (since January 1 2020)
The Group recognizes incomes when it has fulfilled its performance obligations in
the contract that is the customer has acquired the control over the relevant goods
or services. The acquisition of the control over related goods or services means the
ability to control the use of the goods or the provision of the service and obtain
almost all of the economic benefits from them.Commodity sales contracts
Commodity sales contracts between the Group and customers usually only include
performance obligations for the transferred commodities. The Group generally
recognizes incomes on the basis of comprehensive consideration of the following
factors at the time when the customer obtains control of the relevant products: the
acquisition of the current right to receive payment for the commodities the transfer
of the major risks and rewards in the ownership of the commodities the transfer of
the legal ownership of the commodities the transfer of the physical assets of the
commodities and the acceptance of the commodities by the customer.Service contracts
The service contracts between the Group and its customers usually include
performance obligations such as the provision of the use of commercial spaces in
the Commodity City and its operating supporting services the provision of hotel
accommodation services and hotel catering services and the provision of
fixed-term paid funding services to related parties outside the Group.The use of commercial spaces in the Commodity City and its supporting services
Since customers obtain and consume the economic benefits brought about by the
Group’s performance at the time of the performance by the Group the Group
regards them as a performance obligation to be fulfilled within a certain period of
time and recognizes an income based on the performance progress except that the
performance progress cannot be reasonably determined. Under the output method
the Group determines the performance progress of the provision of the use of
commercial spaces in the Commodity City and the supporting services for its
operation based on the number of using days of the commercial spaces When the
performance progress cannot be reasonably determined if the cost incurred by the
Group is expected to be compensated the income shall be recognized according to
the amount of the cost incurred until the performance progress can be reasonably
determined.Hotel accommodation business
Since customers obtain and consume the economic benefits brought about by the
Group’s performance at the time of the performance by the Group the Group
regards them as a performance obligation to be fulfilled within a certain period of
time and recognizes an income based on the performance progress except that the
performance progress cannot be reasonably determined. In accordance with the
output method the Group determines the performance progress of hotel
accommodation services based on the number of staying days. . When the
performance progress cannot be reasonably determined if the cost incurred by the
Group is expected to be compensated the income shall be recognized according to
the amount of the cost incurred until the performance progress can be reasonably
determined.Hotel catering business
For individual performance obligations in the provision of hotel catering services
the Group prices hotel catering services separately and uses the completion of
hotel catering services as the point of income recognition.Fixed -time paid funding services
Since customers obtain and consume the economic benefits brought about by the
Group’s performance at the time of the performance by the Group the Group
regards them as a performance obligation to be fulfilled within a certain period of
time and recognizes an income based on the performance progress except that the
performance progress cannot be reasonably determined. Under the output method
the Group determines the performance progress of the services for the fixed-term
paid funding services based on the number of using days of funds. When the
performance progress cannot be reasonably determined if the cost incurred by the
Group is expected to be compensated the income shall be recognized according to
the amount of the cost incurred until the performance progress can be reasonably
determined.Income (applicable to 2019)
Revenue will be recognized if the economic benefits are very likely to flow into the
Group the amount can be measured reliably and the following requirements are
met simultaneously.Revenue from the sales of goods
The Group has transferred the main risks and compensations on the title of goods
to the buyers and no longer retains the continued management right associated
with title or exercises effective control over the goods the related costs incurred or
to be incurred can be measured reliably and then revenue can be recognized. The
amount of revenue from the sales of goods is determined based on the contract
price or agreed price received or receivable from the buyers except that the
contract price or agreed price received or receivable from the buyers is unfair; if the
contract price or agreed price is collected in a deferred way and is a kind of
financing in nature the amount shall be determined based on the fair value thereof.For the sales of real estate properties a development product has completed and
been accepted after inspection the sales contract has been signed the obligations
stipulated in the contract have been performed i.e. the main risks and
compensations on the title of the development product have transferred to the
buyer the Group no longer exercises continued management right or actual control
over the project the related revenue has been received or can be proved to be
received the costs relating to the project can be measured reliably and then
revenue can be recognized.Income from labor service
On the balance sheet date if the results of rendering service can be estimated
reliably the revenue from the rendering of service will be recognized based on the
percentage of the service completed; otherwise the revenue will be recognized
based on the cost of the service that has been incurred and can be compensated
for. The results of rendering service can be estimated reliably if the following
conditions are met simultaneously: the amount of the revenue can be measured
reliably the related economic benefits are very likely to flow into the Group the
progress of the transaction can be determined reliably and the costs incurred and
to be incurred during the transaction can be measured reliably. The Group
determines the progress of rendering service based on the percentage of the
service provided in the service that should be provided. The total revenue from the
rendering of service is determined based on the contract price or agreed price
received or receivable from the service recipients except that the contract price or
agreed price received or receivable from the service recipients is unfair.Interest income
It is determined based on the time of use by others of and effective interest rate of
the cash and cash equivalents of the Group.Royalty income
It is determined based on the charging periods and methods agreed in the related
contracts or agreements.Rental income
For operating lease the rental income is recognized with the straight-line method
during each period of the lease terms based on the lease dates and rentals agreed
in the lease contracts or agreements when the rentals have been received or can
be proved to be received.
(2).Differences in the revenue recognition policies for the same business under
different business models
□Applicable √Not applicable
39. Contract cost
□Applicable √Not applicable
40. Government grants
√Applicable □Not applicable
A government grant is recognized when it can meet the requirements and can be
received. If a government grant is a monetary asset it should be measured at the
amount received or receivable. If a government grant does not fall in monetary
assets it wi ll be measured by fair value. If the fair value of a grant cannot be
determined reliably it will be measured by its nominal amount.A government grant prescribed by government documents to be used to acquire or
construct or otherwise form long-term assets will be deemed as an asset-related
government grant; if no government documents have express provisions the grants
that are used to acquire or construct or otherwise form long-term assets will be
deemed as asset-related government grants and others as income-related
government grants.The Group treats the account of government grants with the total amount method.The income-related government grants that are used to compensate for the related
costs expenses or losses during the subsequent periods are recognized as
deferred income and will be recognized in the profit and loss or against the related
costs for the period when the related costs expenses or losses are recognized. The
income-related government grants used to compensate for the related costs
expenses or losses that have been incurred are directly recognized in the profit and
loss or against the related costs for the current period.The asset-related government grants shall be used to offset the book value of
related assets; orrecognized as deferred income and included in profit and loss in
stages under a reasonable and systematic method during the useful life of the
related assets (but government grants measured at a nominal amount shall be
directly included in the current profit and loss); if the relevant asset is sold
transferred scrapped or damaged before the end of its useful life the balance of
the undistributed deferred income shall be transferred to the current profit and loss
when the asset is disposal.41. Deferred income tax assets and deferred income tax liabilities
√Applicable □Not applicable
Income tax consists of current income tax and deferred income tax. Except for the
income tax arising from the adjustment of goodwill caused by the mergers of
enterprises or the income tax that is related to the transactions or matters directly
recognized in shareholders’ equity which are recognized in the shareholders’
equity income tax will be recognized in the profit and loss for the current period as
income tax expenses or income.The Group measures the current income tax liabilities or assets formed during the
current period and the previous periods by the estimated amount of income tax to
be paid or refunded as calculated in accordance with the tax law.The Group recognizes deferred income tax with the balance sheet liability method
based on the temporary difference between the book value of assets and liabilities
on the balance sheet date and the tax base and that between the book value of the
items that have not been recognized as assets and liabilities but whose tax base
can be determined according to the tax law and the tax base thereof.All taxable temporary differences will be recognized as deferred income tax
liabilities unless:
(1) The taxable temporary difference is generated in the following types of
transactions: the initial recognition of goodwill or the initial recognition of assets or
liabilities generated in a transaction with the following characteristics: the
transaction is not a business merger and neither affecting accounting profits nor
impacting taxable incomes or deductible losses.
(2) For taxable temporary differences related to investments in subsidiaries joint
ventures and associated enterprises the time for the reversal of the temporary
differences can be controlled and the temporary differences may not be reversed in
the foreseeable future.For the deductible temporary differences and the deductible losses and tax
deductions that can be carried forward to the subsequent years the Group
recognizes the deferred income tax assets arising therefrom within the limit of the
future taxable income that is very likely to be obtained and used to be offset against
the deductible temporary differences deductible losses and tax deductions unless:
(1) The deductible temporary difference is generated in the following types of
transactions: the transaction is not a business merger and neither affec ting
accounting profits nor impacting taxable incomes or deductible losses.
(2) For deductible temporary differences related to investments in subsidiaries
joint ventures and associated enterprisesthe corresponding deferred income tax
assets are recognized when theyhave satisfied the following conditions at the same
time: the temporary differences are likely to be reversed in the foreseeable future
and it is likely to obtain taxable income that can be used to offset the deductible
temporary differences in the future.The Group measures on the balance sheet date the deferred income tax assets
and liabilities based on the applicable tax rate for the period when the assets are
expected to be recovered or the liabilities are expected to be paid off in accordance
with the tax law which will also reflect the impact of the way of the expected
recovery of assets or repayment of liabilities on the income tax on the balance sheet
date.The Group reviews the book value of deferred income tax assets on the bala nce
sheet date. If it is very likely to be unable to acquire adequate taxable income to be
offset against the benefits of deferred income tax assets in the future the book
value of deferred income tax assets will be written down. On the balance sheet
date the Group re-evaluates the unrecognized deferred income tax assets and
recognizes the same to the extent that it is very likely to acquire adequate taxable
income to reverse all or part of the deferred income tax assets.If all the following requirements are met deferred income tax assets and liabilities
will be presented in net amount after offsetting: the Group has the legal right to
settle the current income tax assets and liabilities in net amount; the deferred
income tax assets and liabilities are related to the income tax levied by an identical
tax authority on an identical taxpayer or are related to the income tax levied by an
identical tax authority on different taxpayers but during each important period when
the deferred income tax assets and liabilities are reversed the involved taxpayers
intend to settle the current income tax assets and liabilities in net amount or acquire
assets or pay off debts simultaneously.42. Lease
(1).Accounting treatment of operating lease
√Applicable □Not applicable
The leases that substantially transfer all risks and compensations in connection with
the title of assets are financial leases and others are operating leases.The Group as the lessee to operating leases
The rental expenses under operating leases are recognized in the costs of assets
or the profit and loss for the current period with the straight-line method during each
period of the lease terms; contingent rentals are recognized in the profit and loss for
the period at the time of being actually incurred.The Group as the lessor to operating leases
The rental income under operating leases are recognized in the profit and loss for
the current period with the straight-line method during each period of the lease
terms; contingent rentals are recognized in the pro fit and loss for the period at the
time of being actually incurred.Rental concessions triggered by the COVID-19 epidemic
For rental reductions such as rental reductions andpayment postponement on the
existing lease contracts that are directly caused by the COVID-19 epidemic
between the Group and the counter-parties if all of the following conditions have
been satisfied at the same time the Group will adopt a simplified method for all
leases:
(1) The lease consideration after the concession is reduced or basically unchanged
from that before the concession;
(2) The concessions are only for the rentals payable before June 30 2021;
(3) Through comprehensive consideration of qualitative and quantitative factors it is
determined that there are no major changes in other terms and conditions of the
lease.As a tenant
For operating leases the Group will continue to include the original contractual
rentals in the relevant asset costs or expenses in the same way as that before the
concession. In the event of any rental reduction or exemption the Group will treat
the exempted rental as contingent rental and include it in the profit and loss during
the exemption period.As a lessor
For an operating lease the Group continues to recognize the original contract re ntal
as lease income in the same way as before the reduction; if rental reduction or
exemption occurs the Group will treat the reduced or exempted rental as a
contingent rental and offset the rental income during the reduction or exemption
period.
(2).Accounting treatment of financial lease
√Applicable □Not applicable
The Group as the lessee to finance leases
For an asset leased under a finance lease the entry value of the leased asset on
the starting date of the lease team is the fair value of the asset on the starting date
of the lease or the present value of the minimum lease payment whichever is lower;
and the amount of the minimum lease payment is taken as the entry value of
long-term accounts payable; the difference between them is unrecognized financing
expenses and will be amortized with the effective interest method during each
period of the lease term. Contingent rentals are recognized in the profit and loss for
the period at the time of being actually incurred.
(3).Determination and accounting treatment of leases under the new lease standards
□Applicable √Not applicable
43. Other important accounting policies and accounting estimates
√Applicable □Not applicable
Distribution of profits
The Company’s cash dividend is recognized as liabilities after approval by the
shareholders’ meeting.Measurement of fair value
The Group measures the fair values of equity instruments investments on each
balance sheet date. Fair value refers to the price that market participants can
receive from the sale of an asset or need to pay for the transfer of a liability in an
orderly transaction that occurs on the measurement date. The Group measures the
related asset or liability by fair value assuming that the orderly transaction of selling
the asset or transferring the liability is executed in the principal market of related
asset or liability or if there is no principal market assuming that the transaction is
executed in the most advantageous market of related asset or liability. The principal
market (or most advantageous market) is the marketplace which the Group can
enter on the measurement date. The Group adopts the assumptions used by
market players to maximize economic benefits in the pricing of the assets or
liabilities.The Group adopts the valuation technique that is applicable under the current
conditions and is supported with sufficient available data and other information and
uses the related observable inputs with priority. The unobservable inputs will be
used only if the observable inputs are unavailable or it is unfeasible to acquire the
observable inputs.For the assets and liabilities which are measured or disclosed by fair value in the
financial statements the levels of fair value are determined based on the
lowest-level input of important significance for the overall measurement of fair
values: Level 1 input is the unadjusted offer price for an identical asset or liability
that can be obtained in an active market on the measurement date; Level 2 inputs
are the inputs that are directly or indirectly observable for related assets or liabilities
other than Level 1 inputs; Level 3 inputs are the inputs that are observable for
related assets or liabilities.On each balance date the Group re-evaluates the assets and liabilities that are
recognized in the financial statements and keep being measured by fair value so as
to determine whether to change the measurement levels of fair value.Significant accounting judgments and estimates
The preparation of financial statements requires management to make judgments
estimates and assumptions which would affect the presentation and disclosure of
income expenses assets and liabilities as well as the disclosure of contingent
liabilities on the balance sheet date. However the uncertainties of these assumptions and estimates may cause
material adjustment to the book value of the assets or liabilities that wi ll be affected
in the future.Judgments
When applying the Group’s accounting policies the management have made the
following judgments which have had significant influence on the amounts
recognized in the financial statements:
Operating lease—as the lessor
The Group has signed lease contracts for the property investments. The Group
thinks that according to the terms of the lease contracts the Group retains all major
risks and compensations on the titles of those real estate properties and thus
handles them as operating leases.Partition between property investments and fixed assets
The Group classifies the buildings and structures leased out other than for the main
businesses such as market and hotel services as well as the auxiliary land use
rights thereof as property investments including but not limited to the auxiliary
banking and catering outlets for market operation and the auxiliary service outlets
for hotels. Other buildings and structures leased out are classified as fixed assets.Judgments on assets acquisition and mergers of enterprises
When determining whether an acquisition transaction constitutes a merger the
Group assesses various factors including whether the acquiree constitutes a
business in accordance with the Accounting Standards for Enterprises No. 20 –
Merger of Enterprises. A business refers to a group of some production and
operation activities or assets and liabilities within an enterprise which has the input
processing and output abilities and whose costs and expenses or revenue can be
calculated independently but an asset or a group of assets or liabilities can be
deemed as a business so long as it has the input and processing processes. The
Group makes comprehensive judgments by combining the asset acquired and the
processing process.Business model
The classification of financial assets at initial recognition depends on the Group’s
business model for the management of financial assets. When judging the business
model the Group factors in the enterprise evaluation the way of reporting financial
assets performance to key management personnel the risks affecting the
performance of financial assets the way of managing financial assets and the way
of related business management personnel obtaining remunerations. When
assessing whether to aim at the collection of contractual cash flow the Group
needs to analyze the reasons time frequency and value for sale of the financial
assets to be sold before the expiry dates thereof.Characteristics of contractual cash flow
The classification of financial assets at initial recognition depends on the
characteristics of the contractual cash flow of the financial assets. For the judgment
on whether the contractual cash flow is the repayment of principal and the payment
of interest on outstanding principal including the evaluation of the adjustment to the
time value of money it should be judged whether it is significantly different from the
benchmark cash flow; for the financial assets with the early repayment
characteristic it should be judged whether the fair value of the early repayment
characteristic is extremely low.Uncertainties of estimates
The key assumptions on the balance sheet date for the future and other key
sources of the uncertainties of estimates are shown below which may cause
significant adjustments to the book values of assets and liabilities during the future
accounting periods.Impairment of financial instruments
The Group evaluates the impairment of financial instruments with the expected
credit loss model. To apply the model the Group needs to make significant
judgments and estimates and take into account all reasonable and evidenced
information including forward-looking information. When making these judgments
and estimates the Group infers the expected changes in the debtors’ credit risks
based on their historical repayment data in combination with the economic policies
macroeconomic indicators and industry risks. Different estimates may affect the
provisions for impairment and the provision that has been made for impairment may
not necessarily be equal to the actual amount of impairment loss in the future.Net realizable value of property inventory
The Group’s property inventory is measured by cost or net realizable value
whichever is lower. For the calculation of net realizable value assumptions and
estimates should be used. If the management adjust the estimated price and the
costs and expenses to be incurred until the completion it will affect the estimate of
the net realizable value of the inventory and the difference will affect the provision
for inventory depreciation.Impairment of non-current assets other than financial assets (excluding goodwill)
The Group determines on the balance sheet date whether the non-current assets
other than financial assets have a sign of being impaired. For a non-current asset
other than financial asset if it is indicated that its book value cannot be recovered
an impairment test will be made. When the book value of an asset or a group of
assets is higher than its recoverable value i.e. fair value less the disposal expenses
or the present value of expected future cash flow whichever is higher the asset or
group has been impaired. For the fair value less the disposal expenses the Group
refers to the agreed selling price or observable market price of the similar asset in a
fair transaction less the cost increase directly attributable to the disposal of the
asset. When predicting the present value of future cash flows the management
must estimate the expected future cash flows of the asset or group of assets and
select an appropriate discount rate. When identifying a group of assets the
management consider whether the smallest identifiable group of assets can
generate income and cash flows independently from other departments or units or
the income and cash inflows generated thereby are mostly independent from other
departments or units and also take into account the way of managing or monitoring
production and operating activities and the way of making decisions on the
continued use or disposal of the asset.Fair value of unlisted equity investment
Valuation of the unlisted equity investment is the expected future cash flows
discounted at the current discount rate of other financial instruments with similar
contract terms and risk characteristics. This requires the Group to estimate the
expected future cash flows credit risk volatility and discount rate which brings
uncertainties.Development expenditures
When determining the amount of capitalization management must make
assumptions on the expected future cash flow the applicable discount rate and the
expected benefit period of the asset.Deferred tax assets
To the extent that it is very likely for the Group to have enough taxable income to be
offset against the deductible losses the Group shall recognize deferred income tax
assets in connection with the outstanding deductible losses. This requires the
management to use lots of judgments to estimate the acquisition time and amount
of the taxable income to be acquired in the future to determine the amount of
deferred income tax assets to be recognized in consideration of the tax payment
planning strategy.Service life and residual value of fixed assets
The Group makes provisions for the depreciation of its fixed assets during the
expected service life thereof after considering their residual value. The Group
reviews the expected service life and residual value of related assets on a regular
basis to determine the amount of depreciation expenses to be recognized for each
reporting period. The Group determines the service life and residual value of assets
based on its experience in similar assets and in combination with the expected
technology changes. If the previous estimates have material changes the
depreciation expenses will be adjusted for the future periods.44. Changes in important accounting policies and accounting estimates
(1).Changes in important accounting policies
√Applicable □Not applicable
Contents and reason for Remarks (substantially
changes in accounting Approving procedure affected items and
policies amounts)
In 2017 the Ministry of Changes in statutory See other notes for details
Finance promulgated the accounting policiesrevised “AccountingStandards for Business
Enterprises No.14-Income” (referred toas the “New IncomeStandard”). The Group
beganits accounting in
accordance with the
newly revised standards
on January 1 2020.According to the
regulations for the
transition period the
information of
comparable period will
not be adjusted andthe
difference due to the
implementation of the
new standardon the first
day from the figure under
the current standard will
be retrospectively
adjusted intoopening
retained earnings for the
reporting period.Other descriptions
The new income standard has established a new income recognition model for
regulating income generated from contracts with customers. According to the new
income standard the method of recognizing income should reflect the model for
entity to transfer of goods or services to customers and the amount of income
should reflect the amount of consideration that the entity expects to be entitled to
due to the transfer of such goods and services to customers. At the same time the
new income standard also regulates the judgments and estimates required for each
link in the process ofincome recognition. The Group only adjusted the cumulative
amounts affected by the contracts that had not been completed on January 1 2020.For any changes in the contracts before January 1 2020 under a simplified
method according to the final arrangement of all contracts the Group identified the
fulfilled and unfulfilled performance obligations determined transaction prices and
apportioned transaction prices between fulfilled and unfulfilled performance
obligations.The impact by the implementation of the new income standard on the financial statements as of
January 1 2020 is as follows:
Consolidated Balance Sheet
Amount in the Assuming that the
Statements original standard is Affected amount
implemented
Advances from
184001760.29 4508455128.63 (4324453368.34 )
customers
Contract liabilities 4202117719.47 - 4202117719.47
Other current liabilities 2145347767.09 2023012118.22 122335648.87
6531467246.85 6531467246.85 -
Corporate balance sheet
Amount in the Assuming that the
Statements original standard is Affected amount
implemented
Advances from
168228013.92 2918036408.24 (2749808394.32 )
customers
Contract liabilities 2749808394.32 - 2749808394.32
2918036408.24 2918036408.24 -
The impact of the implementation of the new income standard on the financial statements as of
December 31 2020 is as follows:
Consolidated Balance Sheet
Amount in the Assuming that the
Statements original standard is Affected amount
implemented
Advances from
112752897.25 2562235439.30 (2449482542.05 )
customers
Contract liabilities 2442211788.88 - 2442211788.88
Other current liabilities 3023608041.68 3016337288.51 7270753.17
5578572727.81 5578572727.81 -
Corporate balance sheet
Amount in the Assuming that the
Statements original standard is Affected amount
implemented
Advances from 97380931.49 2381375000.19 (2283994068.70
)
customers
Contract liabilities 2283994068.70 - 2283994068.70
2381375000.19 2381375000.19 -
(2).Changes in important accounting estimates
□Applicable √Not applicable
(3).The relevant information of the adjustments of the initial implementation of the
financial statements at the beginning of the year due to the initial implementation of
the new income standard since 2020
√Applicable□Not applicable
Consolidated Balance Sheet
Unit: RMB
Item December 31 2019 Jan 1 2020 Adjustment
Current assets:
Monetary capital 6486408651.88 6486408651.88
Held-for-trading f inancial assets 38077703.92 38077703.92
Accounts Receivable 16031078.05 16031078.05
Prepayments 44678187.98 44678187.98
Other receivables 1397228398.98 1397228398.98
Inventories 4296061444.25 4296061444.25
Other current assets 3099955902.50 3099955902.50
Total current assets 15378441367.56 15378441367.56
Non-current assets:
Long-term receivables 61250000.00 61250000.00
Long-term equity investment 1771420054.57 1771420054.57
Other equity instruments investment 642187968.78 642187968.78
Other non-current f inancial assets 1519449439.02 1519449439.02
Investment real estate 1863218356.40 1863218356.40
Property plant and equipment 4783819070.71 4783819070.71
Construction in progress 865754600.02 865754600.02
Intangible assets 3456137246.02 3456137246.02
Development expenditures
Long-term deferred expenses 139502382.87 139502382.87
Deferred tax assets 180404801.30 180404801.30
Other non-current assets 661648707.19 661648707.19
Total non-current assets 15944792626.88 15944792626.88
Total assets 31323233994.44 31323233994.44
Current liabilities:
Short-term loans 4178903704.82 4178903704.82
Accounts payable 525241493.48 525241493.48
Advances from customers 4508455128.63 184001760.29 -4324453368.34
Contract liabilities 4202117719.47 4202117719.47
Employee compensations payable 197174419.96 197174419.96
Taxes payable 280184253.26 280184253.26
Other payables 909483132.47 909483132.47
Non-current liabilities due w ithin one year 270332413.94 270332413.94
Other current liabilities 2023012118.22 2145347767.09 122335648.87
Total current liabilities 12892786664.78 12892786664.78
Non-current liabilities:
Long- term loans 530694313.98 530694313.98
Bonds payable 4564291387.81 4564291387.81
Estimated liabilities 110620306.10 110620306.10
Deferred incomes 27966750.98 27966750.98
Deferred income tax liabilities 112574338.69 112574338.69
Other non-current liabilities 1148.89 1148.89
Total non-current liabilities 5346148246.45 5346148246.45
Total Liabilities 18238934911.23 18238934911.23
Owners' equity (or shareholders' equity):
Paid-in capital (or equity) 5443214176.00 5443214176.00
Capital reserves 1524183779.64 1524183779.64
Other comprehensive income 66267192.74 66267192.74
Surplus reserve 1236166911.81 1236166911.81
Retained earnings 4750787389.17 4750787389.17
Total ow ner’s equity (or shareholders’ equity) 13020619449.36 13020619449.36
attributable to the parent company
Minority shareholders' equity 63679633.85 63679633.85
Total ow ner’s equity (or shareholders’ 13084299083.21 13084299083.21
equity)
Total liabilities and ow ners’ equity (or 31323233994.44 31323233994.44
shareholders’ equity)
Statements on item adjustment:
□Applicable √Not applicable
Balance Sheet of Parent Company
Unit: RMB
Item December 31 2019 Jan 1 2020 Adjustment
Current assets:
Monetary capital 6312119746.26 6312119746.26
Held-for-trading f inancial assets 1211.14 1211.14
Accounts Receivable 2381698.23 2381698.23
Prepayments 11914907.36 11914907.36
Other receivables 1280138618.41 1280138618.41
Inventories 6622207.78 6622207.78
Other current assets 4252429806.32 4252429806.32
Total current assets 11865608195.50 11865608195.50
Non-current assets:
Long-term receivables 61250000.00 61250000.00
Long-term equity investment 6886096995.77 6886096995.77
Other equity instruments investment 642187968.78 642187968.78
Other non-current f inancial assets 371736330.52 371736330.52
Investment real estate 1062037085.45 1062037085.45
Property plant and equipment 3929018558.56 3929018558.56
Construction in progress 780166171.12 780166171.12
Intangible assets 3331543646.76 3331543646.76
Long-term deferred expenses 63262990.25 63262990.25
Deferred tax assets 94333102.87 94333102.87
Other non-current assets 519850000.00 519850000.00
Total non-current assets 17741482850.08 17741482850.08
Total assets 29607091045.58 29607091045.58
Current liabilities:
Short-term loans 4178903704.82 4178903704.82
Accounts payable 208383192.69 208383192.69
Advances from customers 2918036408.24 168228013.92 -2749808394.32
Contract liabilities 2749808394.32 2749808394.32
Employee compensations payable 162095870.71 162095870.71
Taxes payable 280400924.97 280400924.97
Other payables 618839560.98 618839560.98
Non-current liabilities due w ithin one year 270332413.94 270332413.94
Other current liabilities 3044639789.79 3044639789.79
Total current liabilities 11681631866.14 11681631866.14
Non-current liabilities:
Long- term loans 530694313.98 530694313.98
Bonds payable 4564291387.81 4564291387.81
Estimated liabilities 110620306.10 110620306.10
Deferred incomes 27966750.98 27966750.98
Deferred income tax liabilities 92975854.98 92975854.98
Other non-current liabilities 187.73 187.73
Total non-current liabilities 5326548801.58 5326548801.58
Total Liabilities 17008180667.72 17008180667.72
Owners' equity (or shareholders' equity):
Paid-in capital (or equity) 5443214176.00 5443214176.00
Capital reserves 1489516614.19 1489516614.19
Less: treasury stocks
Other comprehensive income 66421903.33 66421903.33
Surplus reserve 1236113435.98 1236113435.98
Retained earnings 4363644248.36 4363644248.36
Total ow ner’s equity (or shareholders’ equity) 12598910377.86 12598910377.86
Total liabilities and ow ners’ equity (or 29607091045.58 29607091045.58
shareholders’ equity)
Statements on item adjustment:
□Applicable □Not applicable
None
(4).The notes to the retrospective adjustment of the previous comparative data due to
the initial implementation of the new income standard since 2020
√Applicable □Not applicable
The implementation of the new income standard had no significant impact on the corporate income
statement for 2020.For the advances from customers in accordance with the contracts the Group had presented as
advances from customers before January 1 2020. Since January 1 2020 the Group included the
estimated value-added tax in the advances from customers that do not comply with the definition of
“liabilities” into the tax payable-tax to be written off. According to the “Regulations on Accounting ofValue-added Taxes” (C K [2016] No. 22) the above tax to be written off waspresented as other
current liabilities and the remaining part of the commodity price waspresented as contract liabilities.The quantitative impact of the above changes on the specific financial statement items is follows: on
January 1 2020 the advances from customers were reduced by RMB 4324453368.34
andcontractual liabilities and other current liabilities were increased by RMB 4202117719.47 and
RMB 122335648.87 respectively; on December 31 2020 the advances from customers were
reduced by RMB 2449482542.05 andcontractual liabilities and other current liabilities were
increased by RMB 2442211788.88 and RMB 7270753.17 respectively.45. Others
□Applicable √Not applicable
VI. Taxes
1. Main tax varieties and tax rates
Major taxes and tax rates
√Applicable □Not applicable
Tax variety Base of taxation Tax rate
VAT Sale of goods or rendering The company is a general taxpayer. For the
of taxable service taxable income the output tax is calculated at the
rate of 13% 9% and 6% respectively and the
value-added tax is calculated on the basis of the
difference after the input tax that is allowed to be
deducted in the current period has been deducted.In addition the sale of old real estate projects
developed by itself (the starting date of
construction indicated in the Construction Permit
for Construction Project was before Apr 30 2016)
and the lease of its real estate properties acquired
before Apr 30 2016 are subject to simple taxation
with a tax rate of 5%.Urban Indirect tax actually paid 5% or 7%
maintenance
and
construction tax
Corporate The corporate income taxes payable by the
income tax domestic enterprises are calculated at 25% of the
taxable income; Yiwu Small Commodities City
(Hong Kong) International Trade Co. Ltd. was
registered in Hong Kong Special Administrative
Region and the profits tax rate of 16.50% that is
applicable in Hong Kong is implemented; BETTER
SILK ROAD FZE was registered in Dubai and no
corporate income tax is payable.Land Ratio of appreciation value Four-bracket progressive tax rate (30%～60%)
appreciation tax to deductible items
Property tax If the tax is levied according 1.2% or 12%
to price the amount is 1.2%
of the balance of the original
value of the property after a
30% deduction; if the tax is
levied according to rental
the amount is 12% of the
rental income.Education Indirect tax actually paid 3%
surcharge
Local education Indirect tax actually paid 2%
surcharge
Cultural Advertising turnover 3%
undertaking
development
fee
Disclosure of taxpayers subject to different income tax rates
√Applicable □Not applicable
Taxpayer Income tax rate (%)
Yiwu China Commodities City (Hong Kong) 16.50%
International Trade Co. Ltd.BETTER SILK ROAD FZE Not levied
2. Tax preference
√Applicable □Not applicable
According to the Yi Di Shui Han [2017] No.56 Notification on the Yiwu’s
Implementing Measures for Adjusting Urban Land Use Tax Policies to Promote
Intensive and Economic Utilization of Land based on the calculation of per mu tax
the Company is entitled to a 90% reduction of the land use tax.3. Others
□Applicable √Not applicable
VII. Notes to items in consolidated financial statements
1. Monetary capital
√Applicable □Not applicable
Unit: RMB
Item Closing balance Opening balance
Cash in stock 292999.29 523925.97
Bank Deposits 4812189759.31 6181870591.84
Other monetary capital 800160173.61 304014134.07
Total 5612642932.21 6486408651.88
In which: amount deposited 25679209.72 5282591.84
abroad
Other descriptions
For monetary capital with restricted ownership or use rights see Note VII. 81 for details.Interest income of demand deposits is accrued based on the demand deposit rates of banks. The
term of short -term time deposits ranges from three months to half a year and depends on the
Group’s cash demand and the interest income thereof is accrued based on the corresponding time
deposit rates of banks.2. Held-for-trading financial assets
√Applicable □Not applicable
Unit: RMB
Opening
Item Closing balance
balance
Financial assets that are measured at fair value and whose
changes are included in the current profit and loss
Among them
Convertible bonds investment 32076492.78
Bank financing products 6000000.00
Equity instrument investment 51712734.31 1211.14
Total 51712734.31 38077703.92
Other notes:
□Applicable √Not applicable
3. Derivative financial assets
□Applicable √Not applicable
4. Notes receivable
(1). Categorized presentation of notes receivable
□Applicable √Not applicable
(2). Notes receivable having been pledged by the Company as of the close of the
reporting period
□Applicable √Not applicable
(3). Notes receivable having been endorsed or discounted by the Company as of the
close of the reporting period and having not been due as of the balance sheet date
□Applicable √Not applicable
(4). Notes turned into accounts receivable due to the drawers’ non-performance at the
close of the reporting period
□Applicable √Not applicable
(5). Categorized disclosure based on the bad debt provision method
□Applicable √Not applicable
Accounts receivable for which bad debt provision is made individually:
□Applicable√Not applicable
Explanation for making bad debt provision for accounts receivable by group:
□Applicable√Not applicable
If the bad debt provision is made according to the general model of expected credit loss please refer
to the disclosure of other receivables:
□Applicable √Not applicable
(6). Provisions for bad debts
□Applicable √Not applicable
(7). Notes receivable actually written off during the current period
□Applicable √Not applicable
Other descriptions
□Applicable √Not applicable
5. Accounts Receivable
(1).Disclosure based on account age
√Applicable □Not applicable
Unit: RMB
Age Closing book balance
Within 1 year
Within 1 year 153251937.55
1 to 2 years 440254.08
2 to 3 years
Above 3 years 11562.06
Less: bad debt provision for accounts receivable 130276.83
Total 153573476.86
(2).Categorized disclosure based on the bad debt provision method
√Applicable □Not applicable
Unit: RMB
Type Closing balance Opening balance
Book balance Bad debt Book value Book balance Bad debt Book
provision provision value
Amount (%) Amount Provisi Amount (%) Amount Provisi
on on
ratio ratio
(%) (%)
Account 90795847. 59. 90795847. 78801.18 0.4 78801. 100.00
s 76 07 76 8 18
receiva
ble for
which
bad
debt
provisio
n is
made
individu
ally
Account 62907905. 40. 130276 0.21 62777629. 1625885 99. 227773 1.40 1603107
s 93 93 .83 10 1.28 52 .23 8.05
receiva
ble for
which
bad
debt
provisio
n is
made
by
group
Total 15370375 / 130276 / 15357347 1633765 / 306574 / 1603107
3.69 .83 6.86 2.46 .41 8.05
Accounts receivable for which bad debt provision is made individually:
□Applicable√Not applicable
Explanation for making bad debt provision for accounts receivable by group:
□Applicable√Not applicable
If the bad debt provision is made according to the general model of expected credit
loss please refer to the disclosure of other receivables:
√Applicable □Not applicable
2020 2019
Book balance Expected Expected Book balance Expected Expected
w ith expected credit credit loss for w ith expected credit credit loss for
defaut l oss rate the entire d efaut l oss rate the entire dur
（%） duration （%） ation
Within 1 year 62456089.79 0.13 80018.87 16047805.22 0.10 16727.17
1 - 2 years 440254.08 8.79 38695.90 - 7.15 -
2 -3 years - 23.53 - - 19.14 -
Above 3 years 11562.06 100.00 11562.06 211046.06 100.00 211046.06
62907905.93 130276.83 16258851.28 227773.23
(3).Provisions for bad debts
√Applicable □Not applicable
Unit: RMB
Amount of change during the current period
Opening Closing
Type Recovery Charge-off Other
balance Accrual balance
or reversal or write-off changes
Bad debt 306574.41 239253.07 216028.20 199522.45 130276.83
provision for
accounts
receivable
Total 306574.41 239253.07 216028.20 199522.45 130276.83
In which the recovered or reversed amount is important:
□Applicable √Not applicable
(4).Accounts receivable actually written off during the current period
□Applicable √Not applicable
(5).Accounts receivable from the five debtors with the highest closing balance
√Applicable □Not applicable
The Group is mainly engaged in market operations hotel services merchandise
sales and real estate sales. The balance of accounts receivable is mainly based on
the use of market receivables hotel consumption trade receivables and advertising
production and release fees.As of December 31 2020 the top five entities of in terms of the balance of accounts
receivable are as follows:
Balance Balance of bad Proportion in the balance
debt provision of accounts receivable
(%)
Total balance of the 115983771. 75.58
accounts receivable 59
with the top five
entities 32270.82
(6).Accounts receivable derecognized due to transfer of financial assets
□Applicable √Not applicable
(7).Amounts of assets and liabilities formed by the transfer of accounts receivable and
continuing involvement
□Applicable √Not applicable
Other notes:
√Applicable □Not applicable
The credit period of accounts receivable is usually 3 months and the those with the customers with
high credit rating can be extended to 6 to 12 months. Accounts receivable are not interest -bearing.6. Accounts receivable financing
□Applicable √Not applicable
7. Prepayments
(1).Presentation of prepayment by age
√Applicable □Not applicable
Unit: RMB
Age Closing balance Opening balance
Amount (%) Amount (%)
Within 1 year 102657415.19 97.59 42831583.46 95.86
1 to 2 years 2329113.07 2.22 503472.23 1.13
2 to 3 years 413870.29 0.93
Above 3 201000.00 0.19 929262.00 2.08
years
Total 105187528.26 100 44678187.98 100
Explanation for failure to settle the prepayments with an account age longer than
one year and in important amounts:
None
(2).Prepayments to the five suppliers with the highest closing balance
√Applicable □Not applicable
As of December 31 2020 the top five entities in terms of the balance of the
prepayments are as follows:
Proportion in the closing
balance of prepayment at the
Book balance end of the year (%)
Sociedad Nacional de Galapagos C.A.SONGA 7691029.33 7.31
Zhejiang Jiangong Lvzhi Steel Structure
Co. Ltd. 7480053.08 7.11
Zhejiang Public Information Industry Co.Ltd. 6474786.47 6.16
Chen Shanshan 3994118.17 3.80
Bright Diva International Limited 3904331.69 3.71
29544318.74 28.09
Other descriptions
□Applicable √Not applicable
8. Other receivables
Presentation of items
√Applicable □Not applicable
Unit: RMB
Item Closing balance Opening balance
Interest receivable 121401210.48 191064382.11
Other receivables 2587076925.77 1206164016.87
Total 2708478136.25 1397228398.98
Other notes:
□Applicable √Not applicable
Interest receivable
(1).Categorization of interest receivable
√Applicable □Not applicable
Unit: RMB
Item Closing balance Opening balance
Cash occupation fee for 121401210.48 191064382.11
receivables
Total 121401210.48 191064382.11
(2).Significant overdue interest
□Applicable √Not applicable
(3).Bad debt provision
□Applicable √Not applicable
Other notes:
□Applicable √Not applicable
Dividend receivable
(1).Dividend receivable
□Applicable √Not applicable
(2).Important dividend receivable with an account age longer than 1 year
□Applicable √Not applicable
(3).Bad debt provision
□Applicable √Not applicable
Other notes:
□Applicable √Not applicable
Other receivables
(1).Disclosure based on account age
√Applicable □Not applicable
Unit: RMB
Age Closing book balance
Within 1 year
In which: sub-items
Within 1 year 2560427689.70
1 to 2 years 2986155.27
2 to 3 years 7720630.75
Above 3 years 19710962.48
Less: Provision for bad debts of other receivables 3768512.43
Total 2587076925.77
(2).Classification based on the nature of accounts
√Applicable □Not applicable
Unit: RMB
Nature of account Closing book balance Opening book balance
Financial grants receivables 2480172779.00 1135980817.96
from joint ventures and
associated enterprises
Withholdings deposit and 59045233.81 69391522.96
margin
Receivables from self-operated 42493714.00
land
Receivables from export tax 4841801.31
rebate
Reserve 523397.65 791675.95
Total 2587076925.77 1206164016.87
(3).Bad debt provision
√Applicable □Not applicable
Unit: RMB
Phase I Phase II Phase III
Expected Expected credit Expected credit
Bad debt
credit loss in loss in the entire loss in the entire Total
provision
the coming 12 duration (credit has duration (credit has
months not been impaired) been impaired)
Balance as of Jan 13729240.44 13729240.44
1 2020
Balance on
January 1 2020
in current period
Provision made in 2391793.47 2391793.47
the current period
Current reversal 132334.44 132334.44
Current write-off 12220187.04 12220187.04
Balance on 3768512.43 3768512.43
December 312020
Significant changes in the book balance of other receivables with changes in loss
provisions:
□Applicable √Not applicable
Basis for the bad debt provision made in the current period and for assessing whether the credit risk
of financial instruments has increased significantly:
□Applicable √Not applicable
(4).Provisions for bad debts
√Applicable □Not applicable
Unit: RMB
Amount of change during the current period
Opening Other Closing Type
balance Recovery Charge-off or Accrual change balance
or reversal write-off
s
Bad debt 13729240.4 2391793.4 132334.4 12220187.0 3768512.43
provision 4 7 4 4
for other
receivable
s
Total 13729240.4 2391793.4 132334.4 12220187.0 3768512.4
4 7 4 4 3
In which the recovered or reversed amount is important:
□Applicable √Not applicable
(5).Other receivables actually written off during the current period
□Applicable √Not applicable
(6).Other receivables from the five debtors with highest closing balance
√Applicable □Not applicable
Unit: RMB
Weight in the
Bad debt
total closing
Nature of provision
Debtor Closing balance Age balance of
receivable Closing
other
balance
receivables (%)
Yiwu Tonghui Financial 1486368548.00 Within 1 57.37
Shangbo Real assistance year
Estate Co. Ltd.Yiwu Financial 521659831.00 Within 1 20.13
Gongchen assistance year
Shangbo
Property Co.Ltd.Yiwu Handing Financial 472144400.00 Within 1 18.22
Shangbo Real assistance year
Estate Co. Ltd.Yiwu Natural Receivables 42493714.00 Within 1 1.64
Resources and from land year
Planning
Bureau
Hangzhou Residential 13180039.22 Above 3 0.52 2636007.84
Property property years
Maintenance maintenance
Funds funds
Management
Center
Total / 2535846532.22 / 97.88 2636007.84
(7).Receivables involving government grants
□Applicable √Not applicable
(8).Other receivables derecognized due to transfer of financial assets
□Applicable √Not applicable
(9).Amounts of assets and liabilities formed by the transfer of accounts receivable and
continuing involvement
□Applicable √Not applicable
Other notes:
□Applicable √Not applicable
9. Inventories
(1).Category of inventory
√Applicable □Not applicable
Unit: RMB
Item Closing balance Opening balance
Book Provision for Book value Book Provision for Book value
balance inventory balance inventory
depreciation/pro depreciation/pro
vision for vision for
impairment of impairment of
contract contract
performance performance
cost cost
Raw 402020.27 402020.27 785843.60 785843.60
materials
Finished 75506826. 75506826. 22798397. 22798397.goods 35 35 61 61
Land to be - - - -
developed
Developmen 341654440 28303338.06 313351102 30335360 28303338.06 30052327
t costs .82 .76 72.23 34.17
Developmen 932153659 932153659 12632224 12632224
t products .76 .76 41.45 41.45
Work-in-pro 8054119.0 8054119.0 4022027.4 4022027.4
gress 3 3 2 2
materials
Total 13577710 28303338.06 13294677 43243647 28303338.06 42960614
66.23 28.17 82.31 44.25
(2).Provision for inventory depreciation/provision for impairment of contract
performance cost
√Applicable □Not applicable
Unit: RMB
Increase in the current Decrease in the current
Opening period period Closing
Item
balance Charge-off balance
Accrual Others Others
or write-off
Development costs 2830333 2830333
8.06 8.06
Total 2830333 2830333
8.06 8.06
(3).Closing balance of inventory containing capitalized borrowing costs
√Applicable □Not applicable
On December 31 2020 there are inventory with a book value of RMB
35797443.87 (December 31 2019: RMB 36196787.20) that was formed in
capitalization of borrowing costs.
(4).Amortization of contract performance cost during the current period
□Applicable √Not applicable
Other descriptions
√Applicable □Not applicable
2020
Inventory-development costs
Transfer-out by
disposal of
Project Opening blance Current increase Current decrease subsidiaries Closing balance
Pujiang Lvgu 865287512.92 28484888.90 - 893772401.82 -
Haicheng Phase I Business Street 67907950.27 - - - 67907950.27
Haicheng Phase II 135754710.48 137991780.07 - - 273746490.55
Jiamei Plaza 1198924906.61 96529521.41 - 1295454428.02 -
Suxi Yinxi ang 765539329.95 125353714.35 - 890893044.30 -
Gongchen Shangbo 121662.00 3172193186.94 - 3172314848.94 -
3033536072.23 3560553091.67 - 6252434723.08 341654440.82
Inventory—development products
Transfer-out by disposal of
Project Opening blance Current increase Current decrease subsidiaries Closing balance
Pujiang Lvgu 130954254.73 - - 130954254.73 -
Haicheng Phase I Business Street 918976130.79 - - - 918976130.79
Mingshi Jiayuan 946724.03 - 88755.38 857968.65 -
Trade City Centur y Village 23993.03 - - 23993.03 -
Jin Qiao Ren Ji a 1731088.61 - 395202.49 1335886.12 -
Hangzhou Dongcheng Yinxiang Apartment 31653448.92 - 9096509.42 22556939.50 -
Qiantang Yinxi ang 238807.22 - - - 238807.22
Fenghuang Yinxi ang 150488116.13 7632666.18 10616164.68 147504617.63 -
He Tang Yue Se 10845072.64 - 65435.89 10779636.75 -
Shuangchuang Building 17364805.35 - 4426083.60 - 12938721.75
1263222441.45 7632666.18 24688151.46 314013296.41 932153659.762019
Inventory-land to be developed
Project Opening balance Current increase Current decrease Closing balance
Land in Haicheng Phase II 115714005.00 - 115714005.00 -
Inventory-development costs
Fenghuang Yinxiang - 4603888.80 4603888.80 -
Pujiang Lv gu 740740134.21 124547378.71 - 865287512.92
Haicheng Phase I Business Street 67907950.27 - - 67907950.27
Haicheng Phase II - 135754710.48 - 135754710.48
Jiamei Plaza 1076075702.30 122849204.31 - 1198924906.61
Suxi Y inxiang - 765539329.95 - 765539329.95
Shuangchuang Building - 201912287.56 201912287.56 -
Gongchen Shangbo - 121662.00 - 121662.00
1884723786.78 1355328461.81 206516176.36 3033536072.23
Inventory—development products
Project Opening balance Current increase Deliv ery in the current y ear Closing balance
Pujiang Lv gu 150775486.13 - 19821231.40 130954254.73
Haicheng Phase I Business Street 918976130.79 - - 918976130.79
Mingshi Jiay uan 976309.16 - 29585.13 946724.03
Trade City Century Village 23993.03 - - 23993.03
Jin Qiao Ren Jia 2345848.06 - 614759.45 1731088.61
Hangzhou Dongcheng Yinxiang Apartment 56897766.07 - 25244317.15 31653448.92
Jiahe Square 1241659.42 - 1241659.42 -
Qiantang Yinxiang 7241373.17 - 7002565.95 238807.22
Fenghuang Yinxiang 167469729.17 20998923.35 37980536.39 150488116.13
He Tang Yue Se 57548424.68 - 46703352.04 10845072.64
Shuangchuang Building - 201912287.56 184547482.21 17364805.35
1363496719.68 222911210.91 323185489.14 1263222441.45
10. Contract assets
(1).Overview of contract assets
□Applicable √Not applicable
(2).Amount of and reasons for material changes to book value during the reporting
period
□Applicable √Not applicable
(3).Provision for impairment of contract assets in the current period
□Applicable √Not applicable
If the bad debt provision is made according to the general model of expected credit
loss please refer to the disclosure of other receivables:
□Applicable √Not applicable
Other notes:
□Applicable √Not applicable
11. Held-for -sale assets
□Applicable √Not applicable
12. Non-current assets due within one year
□Applicable √Not applicable
Important debt investments and other debt investments at the end of the period:
□Applicable √Not applicable
Other descriptions
None
13. Other current assets
√Applicable □Not applicable
Unit: RMB
Item Closing balance Opening balance
Entrusted loans to the merchants 3279187.50 3234841.81
Other entrusted loans 35000000.00
To-be-deducted input tax 162435010.24 172556881.73
To-be-certified input tax 14195996.43 1449678.96
Prepaid land transfer fees 2887900000.00
Less: bad debt provision for -185500.00 -185500.00
entrusted loans
Total 179724694.17 3099955902.50
Other descriptions
None
14. Debt investments
(1).Overview of debt investment
□Applicable √Not applicable
(2).Important debt investment as of the close of the reporting period
□Applicable √Not applicable
(3).Provision for impairment
□Applicable √Not applicable
Amount of impairment provision for the current period and the basis for assessing
whether there is significant increase in the credit risk of financial instruments
□Applicable √Not applicable
Other descriptions
□Applicable √Not applicable
15. Other debt investments
(1).Overview of other debt investment
□Applicable √Not applicable
(2).Important other debt investment as of the close of the reporting period
□Applicable √Not applicable
(3).Provision for impairment
□Applicable √Not applicable
Amount of impairment provision for the current period and the basis for assessing
whether there is significant increase in the credit risk of financial instruments
□Applicable √Not applicable
Other notes:
□Applicable √Not applicable
16. Long-term receivables
(1).Overview of long-term receivables
√Applicable □Not applicable
Unit: RMB
Closing balance Opening balance
Range
Bad Bad
of
Item debt debt
Book balance Book value Book balance Book value discou
provisio provisio
nt rate
n n
Financial 126756573. 126756573. 61250000.0 61250000.assistanc 81 81 0 00
e
receivabl
e from
joint
ventures
126756573. 126756573. 61250000.0 61250000. /
Total
81 81 0 00
(2).Bad debt provision
□Applicable √Not applicable
Amount of bad debt provision for the current period and the basis for assessing
whether there is significant increase in the credit risk of financial instruments
□Applicable √Not applicable
(3).Long-term receivables derecognized due to transfer of financial assets
□Applicable √Not applicable
(4).Amounts of assets and liabilities formed by the transfer of long -term receivables and
continuing involvement
□Applicable √Not applicable
Other descriptions
□Applicable √Not applicable
17. Long-term equity investment
√Applicable □Not applicable
Unit: RMB
Change in the current period
Inv estment prof it Closing balance of
Opening amount Closing amount
Inv estee Additional Reduced and loss impairment
Balance Others Balance
inv estment inv estment recognized with the prov ision
equity method
1. Joint v entures
Yiwu Shanglv 348139707.06 17691049.85 365830756.91
Yiwu Rongshang 23890291.66 -1571216.02 22319075.64
Property
Yiwu 17885010.32 -6440223.58 11444786.74
Chuangcheng
Property
Yiwu Guoshen 20000000.00 -20000000.00
Shangbo Property
Others 7361415.44 7650000.00 273304.74 15284720.18 3327216.16
Subtotal 397276424.48 27650000.00 -10047085.01 414879339.47 3327216.16
2. Associates
Binjiang Shangbo 137128387.75 17023879.67 154152267.42
Huishang 83302336.78 13800000.00 1894229.29 71396566.07
Micro-f inance
Huishang Zijing 70556851.19 7515718.04 78072569.23
Chouzhou 330665464.31 40655197.71 371320662.02
Financial Lease
Yiwu China 9508049.22
Commodities City
Inv estment
Management Co.Ltd.Yiwu China 102918559.00 102918559.00
Commodity City
Fuxing Inv estment
Center (Limited
Liability
Partnership)
Pujiang Lv gu - 6014599.92 373657866.73 379672466.65
Property Co. Ltd.Yiwu China - -21974756.02 1493547709.93 1471572953.91
Commodities City
Property
Dev elopment Co.Ltd.Yiwu Hongy i Equity 590375442.26 90000000.00 9381362.86 689756805.12
Inv estment Fund
Partnership
Others 59196588.80 58711015.67 3257784.87 -15494505.78 99155313.82
Subtotal 1374143630.09 148711015.67 17057784.87 45015725.69 1867205576.66 3418018163.24 9508049.22
Total 1771420054.57 176361015.67 17057784.87 34968640.68 1867205576.66 3832897502.71 12835265.38
Other descriptions
Provision for impairment of long-term equity investment：
2020
Opening balance Current increase Current decrease Closing balance
Y iwu China Commodity City Investment
Management Co. Ltd. (Note 2) 9508049.22 - - 9508049.22
Others 3327216.16 - - 3327216.16
12835265.38 - - 12835265.38
Note 1: In current year the Group transferred 51% of the equity of Yiwu China Commodities City
Property Development Co. Ltd. and Pujiang Lvgu Real Estate Co. Ltd. and the remaining 49% of
the equity was measured at the fair value of RMB 1867205576.66 on the disposal date. See Note
VIII.4 for details.Note 2: In 2017 Yiwu China Commodities City Financial Holdings Co. Ltd. (hereinafter referred to as
“CCCF”) a wholly-owned subsidiary of the Group and Shanghai Fuxing Industrial Group Co. Ltd.(hereinafter referred to as “Fuxing”) jointly incorporatedan fund of funds Yiwu China Commodity City
Fuxing Investment Center (Limited Liability Partnership) (hereinafter referred to as “FOF”). The FOF
invested12 sub-funds including Yiwu Shangfu Chuangzhi Investment Center (Limited Liability
Partnership) (hereinafter referred to as “Shangfu Chuangzhi Funds”). CCCF as a limited partner
subscribed RMB 998 million in the FOF accounting for 49.9% of the subscribed capital. The paid -in
capital was RMB 102.92 million and there is no deadline for the payment for the unpaid capital
contribution. The other limited partner of the FOF is Fuxing. CCCF also contributed RMB 9.8 million
49% of total shares to jointly establish Yiwu China Commodity City Investment Management Co.Ltd. (hereinafter referred to as “CCCIM”) with Fuxing as the general partner of the above -mentioned
FOF and sub-funds. The FoF and CCCIM are both under the control of Fuxing and are associates of
CCCF. The above paid-in capital contribution made by CCCF to the FoF has been contributed to
Shangfu Chuangzhi Fund together with the capital contribution of Fuxing to the FoF through the FoF
as a limited partner. With the capital contribution from the FoF as a limited partner and CCCF’s capital
contribution to Shangfu Chuangzhi Fund as a limited partner Shangfu Chuangzhi Fund made capital
contribution of RMB820.54million to subscribe for the increase in the registered capital of Hubei
Provincial Asset Management Co. Ltd. to acquire 22.667% equity therein.In 2018 CCCF learned during its after-investment follow-up management that Fuxing and its actual
controller ZHU Yidong were suspected of having committed a criminal offense and the 22.667%
equity held by Shangfu Chuangzhi Fund in Hubei Provincial Asset Management Co. Ltd. was frozen
by the Public Security Bureau of Shanghai due to Fuxing’s contribution to the sources of the capital
contribution. The Group believes that on December 31 2020 the Group’s investment in the FOF and
Shangfu Chuangzhi Fund was not related to the Fuxing’s investment and the underlying assets had
no indications of impairment. Although they were still frozen but there was no impairment on them
since they had not affected the Group’s equity. However for the equity investment in CCCIM a full
impairment provision has been made since 2018. See Note XII.1 and Note V. 58 for details.18. Other equity instruments investment
(1).Overview of other equity instruments investment
√Applicable □Not applicable
Unit: RMB
Item Closing balance Opening balance
Shenwan Hongyuan Group Co. Ltd. 662256342.79 642187968.78
Total 662256342.79 642187968.78
(2).Non-trading equity instruments investment
□Applicable √Not applicable
Other notes:
□Applicable √Not applicable
19. Other non-current financial assets
√Applicable □Not applicable
Unit: RMB
Item Closing balance Opening balance
Unlisted equity investment 134582725.75 81388186.57
PE investment 1341220243.72 1374004972.45
NEEQ equity investment 48122280.34 64056280.00
Total 1523925249.81 1519449439.02
Other notes:
□Applicable √Not applicable
20. Investment real estate
Measurement models
(1).Property investment measured by cost
Unit: RMB
Buildings and
Item Land use rights Total
structures
I. Original book value
1. Opening balance 1694060209.90 576533042.18 2270593252.08
2. Increase in the current 537982200.09 - 537982200.09
period
(1) Outsourcing 17349108.30 - 17349108.30
(3) Increase in business
merger
Transfer in from intangible 10665898.19 10665898.19
assets
Transfer in from other 509967193.60 509967193.60
non-current assets
3. Decrease in the current 279135883.38 148437955.74 427573839.12
period
(1) Disposal 9796929.31 3431878.11 13228807.42
(2) Other transfer out
Transferred out to 52006766.28 - 52006766.28
construction in progress
Transfer-out by disposal of 217332187.79 145006077.63 362338265.42
subsidiaries
4. Closing balance 1952906526.61 428095086.44 2381001613.05
II. Cumulative depreciation and
amortization
1. Opening balance 331296074.26 76078821.42 407374895.68
2. Increase in the current 80223550.55 13070689.35 93294239.90
period
(1) Accruals or amortization 78438462.98 13070689.35 91509152.33
Transfer in from intangible 1785087.57 - 1785087.57
assets
3. Decrease in the current 59370274.93 20723539.33 80093814.26
period
(1) Disposal 612031.31 689583.05 1301614.36
(2) Other transfer out
Transferred out to 26656972.79 - 26656972.79
construction in progress
Transfer-out by disposal of 32101270.83 20033956.28 52135227.11
subsidiaries
4. Closing balance 352149349.88 68425971.44 420575321.32
III. Provision for impairment
IV. Book value
1. Opening book value 1600757176.73 359669115.00 1960426291.73
2. Closing book value 1362764135.64 500454220.76 1863218356.40
(2).Information of investment real estate without property right certificates
√Applicable □Not applicable
Unit: RMB
Reasons for having not
Item Book value obtained the ownership
certificate
Office building of the auxiliary 103587608.79 Completion settlement not
project in western Yiwu completed
Total 103587608.79
Other descriptions
√Applicable □Not applicable
As of December 31 2020 the total amount of investment real estate for which the property right
certificates had not been received due to the final settlement was still in progress was RMB
103587608.79.21. Property plant and equipment
Presentation of items
√Applicable □Not applicable
Unit: RMB
Item Closing balance Opening balance
Property plant and 5234293786.87 4783819070.71
equipment
Total 5234293786.87 4783819070.71
Other notes:
□Applicable √Not applicable
Property plant and equipment
(1).Property plant and equipment
√Applicable □Not applicable
Unit: RMB
Houses and Machinery and Transport
Item Total
buildings equipment vehicles
I. Original book value:
1. Opening balance 6800283071.04 3665371519.30 19996191.63 10485650781.97
2. Increase in the current
724202660.14 181203099.10 989815.99 906395575.23
period
(1) Acquisition 18448199.34 21948700.98 989815.99 41386716.31
(2) Changeover from
671896734.64 152743710.78 824640445.42
construction in progress
(3) Increase in business
14950757.11 6510687.34 21461444.45
merger
(4) Other transfer -in 18906969.05 18906969.05
3. Decrease in the current
104538679.28 60995544.50 3141823.77 168676047.55
period
(1) Disposal or scrap 12154159.32 56250070.41 280000.00 68684229.73
(2) Transfer out to
56422037.27 56422037.27
construction in progress
(3) Transfer out for 35962482.69 4745474.09 2861823.77 43569780.55
accounting of subsidiaries
4. Closing balance 7419947051.90 3785579073.90 17844183.85 11223370309.65
II. Accumulated depreciation
1. Opening balance 2203781112.95 3012444637.93 14442492.53 5230668243.41
2. Increase in the current
292342691.37 102233802.10 964117.92 395540611.39
period
(1) Accruals 288627855.93 101716355.72 964117.92 391308329.57
(2) Business mergers not 3714835.44 517446.38 4232281.82
under the same control
3. Decrease in the current
52663108.89 53001531.58 2631159.40 108295799.87
period
(1) Disposal or scrap 3186043.44 49037674.55 268800.01 52492518.00
(2) Transfer out to 39245581.60 39245581.60
construction in progress
(3) Transfer out for disposal 10231483.85 3963857.03 2362359.39 16557700.27
of subsidiaries
4. Closing balance 2443460695.43 3061676908.45 12775451.05 5517913054.93
III. Provision for impairment
1. Opening balance 471163467.85 471163467.85
4. Closing balance 471163467.85 471163467.85
IV. Book value
1. Opening book value 4505322888.62 723902165.45 5068732.80 5234293786.87
2. Closing book value 4125338490.24 652926881.37 5553699.10 4783819070.71
(2).Temporarily idle fixed assets
□Applicable √Not applicable
(3).Fixed assets leased in through financial lease
√Applicable □Not applicable
Unit: RMB
Original book Accumulated Impairment
Item Book value
value depreciation provision
General 6084431.99 5841054.71 - 243377.28
equipment
(4).Fixed assets leased out through operating lease
□Applicable √Not applicable
(5).Information of property plant and equipment without property right certificate
√Applicable □Not applicable
Unit: RMB
Reasons for the absence of the
Item Book value
property right certificates
Huangyuan Clothing Market 288521707.59 Completion settlement not
completed
CCC Hotel 54609498.16 Completion settlement not
completed
Liaoning Xiliu Yiwu China 457364435.99 Completion settlement not
Commodity City completed
The hotel as a supporting work 514343238.46 Completion settlement not
for Liaoning Xiliu Yiwu China completed
Commodity City
Hedi 1314838880.20
Other notes:
√Applicable □Not applicable
Note 1: The impairment of property plant and equipment was RMB 471163467.85 as the
impairment of property plant and equipment of Haicheng Yiwu China Commodities City Investment
Development Co. Ltd.As of December 31 2020 the total amount of property plant and equipmentfor which the property
right certificates had not been received due to the final settlement was still in progress was RMB
1314838880.20.Liquidation of property plant and equipment
□Applicable √Not applicable
22. Construction in progress
Presentation of items
√Applicable □Not applicable
Unit: RMB
Item Closing balance Opening balance
Construction in progress 982891877.14 865754600.02
Total 982891877.14 865754600.02
Other notes:
□Applicable √Not applicable
Construction in progress
(1).Overview of construction in progress
√Applicable □Not applicable
Unit: RMB
Closing balance Opening balance
Item Impairment Book Impairment Book
Book balance Book balance
provision value provision value
Binwang 34195677.60 34195677.60
Market Culture
Creative
Industry Park
Project
West Yiwu 166382416.70 166382416.70 715506628.67 715506628.67
International
Means of
Production
Market
Auxiliary
Project
Liaoning Xiliu 32290506.33 -4635059.96 27655446.37 32290506.33 -4635059.96 27655446.37
Yiwu China
Commodities
City
Commerce
Phase I
Project—Hotel
Project
The Zhimei 43194369.48 - 43194369.48 29859985.81 - 29859985.81
Dachen
tourismproject
The Chian 54552839.23 - 54552839.23 28072996.72 - 28072996.72
West Sea
tourism project
The renovation - - - 17155743.56 - 17155743.56
project for A
side of the
square
The - - - 5415678.90 - 5415678.90
reconstruction
project of
Meihu
Convention
and Exhibition
Center
The renovation 55553736.33 - 55553736.33 - - -
project of
Yindu Hotel
and Office
Building
The 505797275.02 - 505797275.02 - - -
comprehensive
bonded zone
project of the
engineering
company
The business 89894127.82 - 89894127.82 - - -
station project
of the
warehouse
park of the
Yiwu CCC
The lighting 29724101.17 - 29724101.17 - - -
project in the
four zones
Other projects 10137565.02 - 10137565.02 7892442.39 - 7892442.39
Total 987526937.10 -4635059.96 982891877.14 870389659.98 -4635059.96 865754600.02
(2).Changes to important construction in progress during the current period
√Applicable □Not applicable
Unit: RMB
Project Budget Opening Increase Amount Closing Proporti Progres Cumulativ In which: Interest Source of
amount in the changed amount on of s of e amount capitalize capitaliza funds
Balance current into fixed Balance total project of interest d interest tion ratio
period assets project capitalize in the for the
investm d current current
ent in period period
budget (%)
(%)
Binwang 50756000 34195677 5889608 9309176 - 100.00 Self-owned
Market 0.00 .60 6.21 3.81
Culture
Creative
Industry
Park
Project
West Yiwu 13391600 71550662 1085563 6576805 16638241 80.31 Under 8913695 2927376 3.67% Self-owned/fin
Internation 00.00 8.67 10.53 22.50 6.70 construc 5.95 1.94 ancing
al Means tion as a
of whole
Production
Market
Auxiliary
Project
Liaoning 18000000 27655446 - - 27655446 96.32 Suspen 1546108 - 4.05% Self-owned/fin
Xiliu Yiwu 00.00 .37 .37 ded .03 ancing
China
Commoditi
es City
Commerce
Phase I
Project—H
otel
Project
The 60000000. 29859985 1333438 - 43194369 71.99 Self-owned
Zhimei 00 .81 3.67 .48
Dachen
tourismpro
ject
The Chian 60000000. 28072996 2647984 - 54552839 90.92 Self-owned
West Sea 00 .72 2.51 .23
tourism
project
The 22000000. 17155743 4814209. 2196995 - 100.00 Self-owned
renovation 00 .56 73 3.29
project for
A side of
the square
The 42000000. 5415678. 3625943 4167511 - 100.00 Self-owned
reconstruc 00 90 9.34 8.24
tion project
of Meihu
Conventio
n and
Exhibition
Center
The 25000000 - 5555373 - 55553736 22.22 Under Self-owned
renovation 0.00 6.33 .33 construc
project of tion as a
Yindu whole
Hotel and
Office
Building
The Yiwu 94536650 - 5057972 - 50579727 53.50 Under Self-owned
Comprehe 0.00 75.02 5.02 construc
nsive tion as a
Bonded whole
Zone
Project
Other - 7892442. 1246821 1022308 10137565 - Self-owned
projects 39 0.21 7.58 .02
The 19000000 - 8989412 - 89894127 47.31 Self-owned
business 0.00 7.82 .82
station
project of
the
warehous
e park of
the Yiwu
CCC
The - - 2972410 - 29724101 - Self-owned
lighting 1.17 .17
project in
the four
zones
Total 52160865 86575460 9417777 8246404 98289187 / / 9068306 2927376 / /
00.00 0.02 22.54 45.42 7.14 3.98 1.94
(3).Provision made for the impairment of construction in progress in the current period
□Applicable √Not applicable
Other descriptions
√Applicable □Not applicable
The impairment of construction in progress was RMB 4635059.96 as provisional impairment for
the hotel project in the Phase I of the commercial project of Haicheng Yiwu China Commodities City
Investment Development Co. Ltd.Construction materials
(1).Engineering materials
□Applicable √Not applicable
23. Productive biological assets
(1).Bearer biological asset measured by cost
□Applicable √Not applicable
(2).Bearer biological asset measured by fair value
□Applicable √Not applicable
Other descriptions
□Applicable √Not applicable
24. Oil and gas assets
□Applicable √Not applicable
25. Right-of-use assets
□Applicable √Not applicable
26. Intangible assets
(1).Overview of intangible assets
√Applicable □Not applicable
Unit: RMB
Item Land use rights Software Total
I. Original book value
1. Opening balance 4853588486.46 8646093.92 4862234580.38
2. Increase in the current 619516800.00 10668946.25 630185746.25
period
(1) Acquisition 619516800.00 10668946.25 630185746.25
3. Decrease in the current period 82718030.02 36000.00 82754030.02
(1) Disposal 60058394.56 - 60058394.56
Transfer out to investment 10665898.19 - 10665898.19
real estate
Transfer-out by disposal of 11993737.27 36000.00 12029737.27
subsidiaries
4. Closing balance 5390387256.44 19279040.17 5409666296.61
II. Accumulated amortization
1. Opening balance 1402983356.14 3113978.22 1406097334.36
2. Increase in the current 128855341.87 1123713.38 129979055.25
period
(1) Accruals 128855341.87 1123713.38 129979055.25
3. Decrease in the current 27170906.54 20168.38 27191074.92
period
(1) Disposal 23843766.89 - 23843766.89
Transfer out to investment 1785087.57 - 1785087.57
real estate
Transfer-out by disposal of 1542052.08 20168.38 1562220.46
subsidiaries
4. Closing balance 1504667791.47 4217523.22 1508885314.69
III. Provision for impairment
IV. Book value
1. Opening book value 3885719464.97 15061516.95 3900780981.92
2. Closing book value 3450605130.32 5532115.70 3456137246.02
The percentage of the balance of the intangible assets formed through the company's internal R & D
in the balance of intangible assets at the end of the period 0
(2).Information of land use rights without property right certificates
□Applicable √Not applicable
Other notes:
□Applicable √Not applicable
27. Development expenditures
√Applicable □Not applicable
Unit: RMB
Increase in the current Decrease in the current
period period
Opening Closing
Recognized Transferred
Item amount Internal amount
as into current
Balance development Others Balance
intangible profit and
expenditure
assets loss
The - 2 2223061.09 - - - 2 2223061.09
development
project for
platform
“chinagoods”
Total - 2 2223061.09 - - - 2 2223061.09
Other descriptions
None
28. Goodwill
(1).Original book value of goodwill
□Applicable √Not applicable
(2).Provision for goodwill impairment
□Applicable √Not applicable
(3).Information on the assets group or combination of assets groups to which the
goodwill belongs
□Applicable √Not applicable
(4).Goodwill impairment test process key parameters (e.g. growth rate in the forecast
period growth rate in the stable period profit margin discount rate forecast period
for the estimate of present value of future cash flows if applicable) and recognition
of goodwill impairment loss
□Applicable √Not applicable
(5).Impact of goodwill impairment test
□Applicable √Not applicable
Other descriptions
□Applicable √Not applicable
29. Long-term deferred expenses
√Applicable □Not applicable
Unit: RMB
Item Opening Increase in Amortized Other Closing
balance the current amount in the decrease balance
period current period
Decoration of 130917605.11 33704795.62 57130265.44 349674.48 107142460.81
buildings and
structures
Advertising 8584777.76 2539130.89 7537646.10 - 3586262.55
facilities
Total 139502382.87 36243926.51 64667911.54 349674.48 110728723.36
Other notes:
N one
30. Deferred income tax assets/deferred income tax liabilities
(1).Deferred income tax assets having not been offset
√Applicable □Not applicable
Unit: RMB
Closing balance Opening balance
Item Deductible Deferred Deductible Deferred
temporary income tax temporary income tax
difference assets difference assets
Provision for 18551468.79 4637867.20 28086747.07 7021686.77
impairment of assets
Unrealized profits of 1094793.10 273698.27 107448552.68 26862138.17
internal transactions
Deductible loss 19006883.14 4751720.78 85414896.12 21353724.03
Estimated profit of - - 92177928.27 23044482.07
pre-sold houses
Recognized but unpaid 268732373.15 67183093.30 333438714.83 83359678.71
liabilities
Overspent advertising 9689617.59 2422404.41 10604186.36 2651046.59
cost
Changes infair value of 81582179.51 20395544.88 64448179.86 16112044.96
other non-current
financial assets
Total 398657315.28 99664328.84 721619205.19 180404801.30
(2).Deferred income tax liabilities having not been offset
√Applicable □Not applicable
Unit: RMB
Closing balance Opening balance
Item Taxable Deferred Taxable Deferred
temporary income tax temporary income tax
difference debt difference debt
Asset evaluation 1068720.92 267180.23 1257714.04 314428.51
appreciation for
merger of the
enterprises not
under common
control
Change in fair 108630911.81 27157727.95 88562537.80 22140634.45
value of other
equity instruments
investment
Changes in fair 343005960.28 85751490.08 360477102.93 90119275.73
value of other
non-current
financial assets
Changes in fair 1706102.10 426525.53 - -
value of trading
financial assets
Total 454411695.11 113602923.79 450297354.77 112574338.69
(3).Deferred income tax assets or liabilities presented in net amount after offsetting
□Applicable √Not applicable
(4).Breakdown of unrecognized deferred income tax assets
√Applicable □Not applicable
Unit: RMB
Item Closing balance Opening balance
Deductible temporary 466278633.25 36832234.08
difference
Deductible loss 908844380.05 663848325.35
Total 1375123013.30 700680559.43
(5).The deductible loss in unrecognized deferred income tax assets will be due in the
following years
√Applicable □Not applicable
Unit: RMB
Year Closing amount Opening amount Remarks
2020 - 45804174.10
2021 34738115.44 34738115.44
2022 245346275.18 245346275.18
2023 145652609.01 145652609.01
2024 226329502.26 192307151.62
2025 256777878.16
Total 908844380.05 663848325.35 /
Other notes:
√Applicable □Not applicable
The Group believes that the deductible temporary differences including the aforementioned
provision for asset impairment and the deductible losses of some subsidiaries can be deducted in
the foreseeable future and it is expected that the Group will have sufficient pre-tax profit for
deduction during the reversing period. Therefore the Group deemed it necessary to recognize the
above deferred income tax assets.31. Other non-current assets
√Applicable □Not applicable
Unit: RMB
Closing balance Opening balance
Book balance Impairme Book balance Impairme
Item
nt Book value nt Book value
provision provision
Prepaid 138253316. 138253316. 138253316. 138253316.land 00 00 00 00
transfer
fees
Prepaid - - 519850000. 519850000.office 00 00
building
transfer
fees
Prepayme 14241880.5 14241880.5 3545391.19 3545391.19
nt for 6 6
renovation
works and
prepaid
decoration
rent
152495196. 152495196. 661648707. 661648707.Total
56 56 19 19
Other notes:
None
32. Short-term loans
(1).Categories of short-term loans
√Applicable □Not applicable
Unit: RMB
Item Closing balance Opening balance
Credit loans 1257179389.40 4178903704.82
Total 1257179389.40 4178903704.82
Note to the classification of short-term borrowings:
None
(2).Overdue short-term borrowings
□Applicable √Not applicable
The important overdue and unpaid short-term loansare as follows:
□Applicable √Not applicable
Other descriptions
√Applicable □Not applicable
As of December 31 2020 the range of annual interest rates of the above-mentioned borrowings was
1.20%-4.35% (December 31 2019: 1.20%-4.35%).33. Held-for-trading financial liabilities
□Applicable √Not applicable
34. Derivative financial liabilities
□Applicable √Not applicable
35. Notes payable
(1).Presentation of notes payable
□Applicable √Not applicable
36. Accounts payable
(1).Presentation of accounts payable
√Applicable □Not applicable
Unit: RMB
Item Closing balance Opening balance
Accounts payable for real 57763664.12 300646681.02
estate projects
Accounts payable for market 511789572.40 180639638.94
and auxiliary works projects
Accounts payable for 26767337.63 23650330.93
procurement for the hotel
project
Others 40143228.08 20304842.59
Total 636463802.23 525241493.48
(2).Important accounts payable with age over 1 year
√Applicable □Not applicable
Unit: RMB
Reasons for not being paid or
Item Closing balance
carried forward
Accounts payable for real estate 27330062.36 Settlement has not been
projects completed or the projects are
within the warranty periods
Total 27330062.36 /
Other descriptions
√Applicable □Not applicable
The accounts payable are free of interest and are generally paid within two months
after receipt of the payment notice or based on the project contracts and progress of
projects. The balance payments for the projects are made after completion of
settlement.37. Advances from customers
(1). Presentation of advances from customers
√Applicable □Not applicable
Unit: RMB
Item Closing balance Opening balance
Advances from customers for 4120226.22
goods
Rental advances 105773195.96 100001145.95
Others 6979701.29 79880388.12
Total 112752897.25 184001760.29
(2). Important advances from customers with age of over 1 year
□Applicable √Not applicable
Other descriptions
√Applicable □Not applicable
Since the advances from customers are mainly derived from the advance rentals of auxiliary housing
businesses and investment real estate with small individual amounts as of December 31 2020
there were no single large advances from customers with an age of more than 1 year.38. Contract liabilities
(1).Overview of contract liabilities
√Applicable □Not applicable
Unit: RMB
Item Closing balance Opening balance
Advances from customers for 2243528509.65 2699412399.89
use fee of commercial spaces
Advances from customers for 3856621.50 1394350500.13
housing purchase
Advances from customers for 100786067.26 14584986.91
goods
Advances from customers for 10534354.07 13595451.68
use fee of networking cables
Advances from customers for 57095601.13 21031374.87
advertising fee
Advances from customers for 3270729.29 6846360.91
loyalty of brands
Others 23139905.98 52296645.08
Total 2442211788.88 4202117719.47
(2).Amount of and reasons for material changes to book value during the reporting
period
□Applicable √Not applicable
Other notes:
□Applicable √Not applicable
39. Employee compensations payable
(1).Presentation of employee compensations payable
√Applicable □Not applicable
Unit: RMB
Decrease in
Increase in the
Item Opening balance the current Closing balance
current period
period
I. Short-term 196068529.87 527924869.84 564290244.1 159703155.55
compensations 6
II. Post-employment 1105890.09 21400735.41 20710783.52 1795841.98
benefits-defined
contribution plans
III. Dismissal benefits - 623885.95 623885.95 -
197174419.96 549949491.20 585624913.6 161498997.53
Total3
(2).Presentation of short-term compensations
√Applicable □Not applicable
Unit: RMB
Item Opening balance Increase in the Decrease in the Closing balance
current period current period
I. Salaries bonuses 195405526.67 429021642.37 465851221.18 158575947.86
allowances and subsidies
II. Employee benefits 36202.12 44884910.83 44921112.95 -
III. Social insurance 411043.10 15254243.77 14700055.28 965231.59
premiums
Including: medical insurance 365691.23 14514446.07 13992842.36 887294.94
premiums
Work-related injury 22289.75 305826.83 280104.98 48011.60
insurance premiums
Maternity insurance 23062.12 433970.87 427107.94 29925.05
premiums
IV. Housing provident funds 85803.00 28654658.00 28630444.00 110017.00
V. Labor union funds and 129954.98 10109414.87 10187410.75 51959.10
employee education funds
Total 196068529.87 527924869.84 564290244.16 159703155.55
(3).Presentation of defined contribution plans
√Applicable □Not applicable
Unit: RMB
Opening Increase in the Decrease in the Closing
Item
balance current period current period balance
1. Contribution to the basic 1020021.28 20678856.42 20033219.60 1665658.10
endowment insurance
scheme
2. Contribution to the 85868.81 721878.99 677563.92 130183.88
unemployment insurance
scheme
Total 1105890.09 21400735.41 20710783.52 1795841.98
Other notes:
□Applicable √Not applicable
40. Taxes payable
√Applicable □Not applicable
Unit: RMB
Item Closing balance Opening balance
VAT 90094604.12 41578727.82
Business tax -431783.32 -15123820.98
Corporate income tax 341382542.08 187716475.31
Personal income tax 1008552.21 958941.24
Urban maintenance and 5176906.98 -876344.54
construction tax
Land appreciation tax -47134688.35 -36912707.44
Property tax 93881697.54 99398810.58
land holding tax 5357865.24 4905517.10
Others 6064803.23 -1461345.83
Total 495400499.73 280184253.26
Other notes:
As of December 31 2020 the details of the main taxes prepaid by the Group were
as follows:
International Qiantang Occident Total amount of
trade city market Impression Rea l Center Real prepaid tax
Estate Project Estate Project
Land appreciation tax - 109576320.66 - 1 09576320.66
Business tax 191769.77 240013.55 - 431783.32
Urban maintenance and
construction tax - - 731793.32 731793.32
Education surcharges and
Local education surcharge - - 522709.51 522709.51
191769.77 1 09816334.21 1254502.83 1 11262606.81
41. Other payables
Presentation of items
√Applicable □Not applicable
Unit: RMB
Item Closing balance Opening balance
Other payables 1646345561.62 909483132.47
Total 1646345561.62 909483132.47
Other notes:
□Applicable √Not applicable
Interest payable
(1).Presentation by category
□Applicable √Not applicable
Dividend payable
(1).Presentation by category
□Applicable √Not applicable
Other payables
(1). Presentation of other payables by nature
√Applicable □Not applicable
Unit: RMB
Item Closing balance Opening balance
Withholdings deposit and 584880967.08 622982815.42
margin
Operating expenses payable 234420448.09 181518107.60
House reservation fees 4876852.70
Yiwugou’s bank reserve fund 23223609.46 21381358.25
Restricted stock incentive plan 137298000.00
Pending investment refunds 666512070.29 78258090.89
Others 10466.70 465907.61
Total 1646345561.62 909483132.47
(2). Important other payables with account age over 1 year
□Applicable √Not applicable
Other notes:
√Applicable □Not applicable
Other payables mainly come from deposits for commercial spaces and bid deposits for engineering
projects with small individual amounts so there were no important other payables with an age of
more than 1 year on December 31 2020.42. Held-for-sale liabilities
□Applicable √Not applicable
43. Non-current liabilities due within one year
√Applicable □Not applicable
Unit: RMB
Item Closing balance Opening balance
Long-term borrowings within 300634822.21 270332413.94
one year
Bonds payable due within 1 1014391752.22 -
year
Total 1315026574.43 270332413.94
Other notes:
None
44. Other current liabilities
Other current liabilities
√Applicable □Not applicable
Unit: RMB
Item Closing balance Opening balance
Short-term financing notes 3004009789.85 2011484133.28
payable
To-be-reported output tax 15466581.46 129951338.96
Dividend announced but not 2083112.65 2083112.65
collected before listing
Dividend payable to 2048557.72 1829182.20
to-be-recognized accounts
Total 3023608041.68 2145347767.09
Changes in short-term bonds payable:
√Applicable □Not applicable
Unit: RMB
Premi
Interest um
Fa Bo Current
Issui Opening Current accrue and Closing
Bond ce nd Issuing period
ng amount period d at discou amount
Name val Te Amount Repaym
Date Balance Issuing face nt Balance
ue rm ent
value amorti
zation
Super-sh 10 Augu 27 100000 101023 13434 102367 -
ort-term 0 st 29 0 0000.00 6895.84 426.23 1322.07
commer 2019 da
cial ys
paper
Super-sh 10 Dece 27 100000 100124 22927 102417 -
ort-term 0 mber 0 0000.00 7237.44 049.18 4286.62
commer 9 da
cial 2019 ys
paper
Super-sh 10 Nove 100000 - 100000 23972 8005 100222
ort-term 0 mber 90 0000.00 0000.00 60.27 2.40 7312.68
commer 27 da
cial 2020 ys
paper
Super-sh 10 Dece 100000 - 100000 51780 9583 100023
ort-term 0 mber 90 0000.00 0000.00 8.22 3.33 8641.55
commer 9 da
cial 2020 ys
paper
Super-sh 10 Dece 100000 - 100000 15438 - - 100154
ort-term 0 mber 28 0000.00 0000.00 35.62 3835.62
commer 25 da
cial 2020 ys
paper
/ / / 500000 201148 300000 40820 1758 204784 300400
Total
0000.00 4133.28 0000.00 379.52 85.73 5608.69 9789.85
Other notes:
√Applicable □Not applicable
As of December 31 2020 the range of the annual interest rates of the above-mentioned short-term
financing bonds was 2.45%-2.70% (December 31 2019: 3.30%-4.19%).45. Long- term loans
(1). Classification of long-term borrowings
√Applicable □Not applicable
Unit: RMB
Item Closing balance Opening balance
Guarantee loans - 200239555.56
Credit loans 282000000.00 330454758.42
Total 282000000.00 530694313.98
Notes on the classification of long-term borrowings:
None
Other notes including the interest rate range:
√Applicable □Not applicable
As of December 31 2020 the range of the annual interest rates of the
above-mentioned borrowings was 2.70%-3.92% (December 31 2019:
3.92%-4.51%). For the guarantee information about guaranteed loans see Note
X.5 (2) “Related party guarantees” for details.46. Bonds payable
(1).Bonds payable
√Applicable □Not applicable
Unit: RMB
Item Closing balance Opening balance
MTN 2024870915.16 3037000593.29
Corporate bonds 1527290794.52 1527290794.52
Total 3552161709.68 4564291387.81
(2).Changes in bonds payable: (excluding preferred stocks perpetual bonds and other
financial instruments classified as financial liabilities)
√Applicable □Not applicable
Unit: RMB
Premium
Interest Current
Opening Current and Closing
Bond Face Issuing Bond Issuing accrued period
amount period discount amount
name value Date Term Amount at face Repaym
Balance Issuing amortiza Balance
value ent
tion
MTN 100 Septe 3 1000000 10129655 476301 129605 -
mber 6 years 000.00 62.70 36.99 2.522019
MTN 100 July 15 3 1000000 10174591 399504 369773. 101787
2019 years 000.00 01.28 76.09 45 9350.82
MTN 100 Octobe 3 1000000 10065759 397210 394535. 100699
r 21 years 000.00 29.31 99.63 40 1564.342019
Corpor 100 June 5 3 8000000 81979178 344000 - 819791
ate 2019 years 00.00 0.82 00.00 780.82
bonds
Corpor 100 Septe 3 7000000 70749901 279300 - 707499
ate mber years 00.00 3.70 00.00 013.70
bonds 252019
Total / / / 4500000 45642913 - 189631 206036 355216
000.00 87.81 712.71 1.37 1709.68
(3).Conditions and time for the conversion of convertible corporate bonds
□Applicable √Not applicable
(4).Notes on other financial instruments classified as financial liabilities
Basic information of other financial instruments such as preferred shares and perpetual bonds
outstanding at the end of the reporting period
□Applicable √Not applicable
Changes in other financial instruments such as preferred shares and perpetual bonds outstanding at
the end of the reporting period
□Applicable √Not applicable
The basis for classifying other financial instruments as financial liabilities:
□Applicable √Not applicable
Other notes:
√Applicable □Not applicable
As of December 31 2020 the range of the annual interest rate of the aforementioned bonds payable
was 3.97%-4.30% (December 31 2019: 3.97%-4.75%).47. Lease liabilities
□Applicable √Not applicable
48. Long-term payables
Presentation of items
□Applicable √Not applicable
Other notes:
□Applicable √Not applicable
Long-term payables
(1).Long-term payables by nature
□Applicable √Not applicable
Special payables
(1).Special payables by nature
□Applicable √Not applicable
49. Long-term employee compensation payable
□Applicable √Not applicable
50. Estimated liabilities
√Applicable □Not applicable
Unit: RMB
Item Opening balance Closing balance Cause of formation
Pending L/C losses 110620306.10 110620306.10 -
Total 110620306.10 110620306.10 /
Other notes including the notes on related important assumptions and estimates of important
estimated liabilities:
In 2017 the letters of credit issued by the Group’s subsidiary based on international trade agency
business became overdue successively due to the principals’ failure to make payments as agreed.Based on the principle of prudence the Group recognized estimated liabilities for the estimated
potential losses. On Apr 30 2018 the Group lost control over the subsidiary due to its disposal of
s ome equity in the subsidiary. As of December 31 2020 this matter had not been resolved.51. Deferred incomes
Overview of deferred income
√Applicable □Not applicable
Unit: RMB
Increase in Decrease in
Opening Closing Cause of
Item the current the current
balance balance formation
period period
Asset-related 27966750.98 1421473.68 26545277.30
government
grants
Income-related 3000000.00 3000000.00
government
grants
Total 27966750.98 3000000.00 4421473.68 26545277.30 /
Items involving government grants:
√Applicable □Not applicable
Unit: RMB
Amount
Increase in
recognized in Asset-related
Opening grant amount in
Liability item other income in Closing balance or
balance the current
the current income-related
period
period
Subsidy for service 5776779.23 266666.64 5510112.59 Asset-related
industry cluster
project
Interest subsidy for 22189971.75 1154807.04 21035164.71 Asset-related
the international
exhibition center
construction fund
Subsidy for 3000000.00 3000000.00 Income-related
construction and
operation of credit
data center in Yiwu
Credit Center
Other notes:
√Applicable □Not applicable
None
52. Other non-current liabilities
□Applicable √Not applicable
53. Capital stock
√Applicable □Not applicable
Unit: RMB
Opening balance Increase or decrease in the current period (+ -) Closing balance
Provide
Bonu
nt funds Ot
Issuing s
Convers he Subtotal
New shares shar
ion into rs
es
shares
Total 5443214176.00 46700000.00 - - - 46700000.00 5489914176.00
number of
shares
Other notes:
On December 11 2020 the Group implemented a restricted stock incentive plan granting
47920000 restricted stocks to incentive objects. On December 29 2020 the Group received RMB
137298000.00 for the restricted stock subscription from the incentive objects. The number of
shares subscribed was 46700000 which has been verifiedby Ernst & Young Huaming Certified
Public Accountants (Special General Partnership) with a capital verification report ((2020) Y Z No.60709629_B01).54. Other equity instruments
(1).Basic information of other financial instruments such as preferred shares and
perpetual bonds outstanding at the end of the reporting period
□Applicable √Not applicable
(2).Changes in other financial instruments such as preferred shares and perpetual
bonds outstanding at the end of the reporting period
□Applicable √Not applicable
Changes in other equity instruments in the current period the reasons therefor and the basis for
relevant accounting treatment:
□Applicable √Not applicable
Other notes:
□Applicable √Not applicable
55. Capital reserves
√Applicable □Not applicable
Unit: RMB
Increase in the Decrease in the
Item Opening balance Closing balance
current period current period
Capital surplus 1468014797.11 90598000.00 1558612797.11
(share premium)
Other capital 56168982.53 3506947.75 23382202.72 36293727.56
reserve
Total 1524183779.64 94104947.75 23382202.72 1594906524.67
Other notes including those on the changes in the current period and the reasons therefor:
None
56. Treasury shares
√Applicable □Not applicable
Unit: RMB
Increase in the Decrease in the
Item Opening balance Closing balance
current period current period
Restricted stock 137298000.00 137298000.00
incentive plan
Total 137298000.00 137298000.00
Other notes including those on the changes in the current period and the reasons therefor:
On December 11 2020 the Group implemented a restricted stock incentive plan granting
47920000 restricted stocks to incentive objects. On December 29 2020 the Group received RMB
137298000.00 for the restricted stock subscription from the incentive objects. The number of
shares subscribed was 46700000 which has been verifiedby Ernst & Young Huaming Cert ified
Public Accountants (Special General Partnership) with a capital verification report ((2020) Y Z No.60709629_B01).57. Other comprehensive income
√Applicable □Not applicable
Unit: RMB
Amount in the current period
Opening amount Amount before Amount after tax Closing amount
Item Less: income
Balance tax incurred in attributable to Balance
taxes
the current period parent company
I. Other 66421903.33 20068374.01 5017093.5 15051280.51 81473183.84
comprehensive
income that
cannot be
reclassified
into profit and
loss
Change in 66421903.33 20068374.01 5017093.5 15051280.51 81473183.84
fair value of
other equity
instruments
investment
II. Other -154710.59 -3168811.92 -3168811.92 -3323522.51
comprehensive
income to be
reclassified
into profit and
loss
Translation -154710.59 -3168811.92 -3168811.92 -3323522.51
reserve
Total other 66267192.74 16899562.09 5017093.5 11882468.59 78149661.33
comprehensive
income
Other notes including those on the adjustment of the initially recognized amount of hedged items
converted from the effective part of profit and loss from cash flow hedging:
None
58. Special reserves
□Applicable √Not applicable
59. Surplus reserve
√Applicable □Not applicable
Unit: RMB
Item Opening balance Increase in the Decrease in the Closing balance
current period current period
Statutory surplus 1184282215.22 128090896.77 - 1312373111.99
reserve
Discretionary 40195855.68 40195855.68
surplus reserve
Others 11688840.91 11688840.91
Total 1236166911.81 128090896.77 1364257808.58
Notes on surplus reserves including those on the changes in the current period and the reasons
therefor:
According to the “Company Law” and the Company’s articles of association the company accrued a
statutory surplus reserve in terms of 10% of its net profit. If the amount of statutory surplus reserve
accrued reaches more than 50% of the company's registered capital the accrual may cease.The company can accruefree surplus reserve after accruing the statutory surplus reserve. With the
approval the free surplus reserve can be used to make up for previous losses or to increase share
capital.60. Retained earnings
√Applicable □Not applicable
Unit: RMB
Item Current period Previous period
Undistributed profits at the end of the previous 4750787389.17 3750079863.58
reporting period before adjustment
Adjustment of the total amount of opening retained - 207890050.96
earnings (+ for increase and - for decrease)
Opening undistributed profits after adjustment 4750787389.17 3957969914.54
Plus: net profits attributable to shareholders of the 926626706.42 1255276023.70
parent company in the current period
Less: withdrawal of statutory surplus reserve 128090896.77 135865698.51
Common share dividend payable 381024992.32 326592850.56
Closing undistributed profits 5168298206.50 4750787389.17
Details of the adjustment of opening undistributed profits:
1. The opening undistributed profits affected by the retroactive adjustment made in accordance with
the Accounting Standards for Enterprises and related new provisions amounted to RMB0.2.The opening undistributed profits affected by the changes in accounting policies amounted to
RMB0.3. The opening undistributed profits affected by the correction of major accounting errors amounted
to RMB0.4. The opening undistributed profits affected by changes in the scope of mergers caused by common
control amounted to RMB0.5. The opening undistributed profits affected by other adjustments together amounted to RMB0.61. Revenue and cost of sales
(1).Overview of revenue and cost of sales
√Applicable □Not applicable
Unit: RMB
Amount in the current period Amount in the previous period
Item
Incomes Costs Incomes Costs
Main 3059365345.58 1695958420.47 3294973907.45 1628502837.80
business
Other 666320754.81 115178023.52 747793613.73 68451291.70
businesses
Total 3725686100.39 1811136443.99 4042767521.18 1696954129.50
(2).Revenue generated from contracts
√Applicable □Not applicable
Unit: RMB
Classified by type of contract XXX-Segment Total
Types of goods
Sales of goods 467868477.86
The use of commercial spaces in the 2512590861.43
Commodity City and its supporting services
Hotel accommodation and catering services 149497323.09
Royalty income 124744826.38
Other services 331084040.17
Classified by business area
Chinamainland 3585785528.93
Sales of goods 467868477.86
Hotel catering services 99720975.78
Other services 234742792.36
Classified by contract period
The use of commercial spaces in the 2512590861.43
Commodity City and its supporting services
Hotel accommodation service 49776347.31
Royalty income 124744826.38
Other services 96341247.81
Total 3585785528.93
Description of the incomefrom contracts:
√Applicable □Not applicable
The income recognized in the current year and included in the opening book
value of contractual liabilities is as follows:
Year 2020
Sales of goods 68713877.37
The use of commercial spaces in the
Commodity City and its supporting services 2049590815.28
Hotel accommodation service 4571618.80
Other services 40216575.76
2163092887.21
In 2020 there was no income recognized in the current year for performance
obligations completed (or partially completed) in the previous period.
(3).Contract performance obligations
√Applicable □Not applicable
The information related to the performance obligations of the Group is as follows:
Sales of goods
The performance obligation is fulfilled when the goods are delivered to the
customer and the contract price is collected in advance before the goods are
delivered to the customer or received upon the delivery of the goods.The use of commercial spaces in the Commodity City and its supporting services
The contractual performance obligation is fulfilled when providing the use of
commercial spaces in the Commodity City and the supporting services for business.For the use of commercial spaces in the Commodity City and the supporting
services for business the progress of contract performance is determined based on
the number of using days of the commercial spaces. Customers usually need to pay
in advance before the use of commercial spaces in the Commodity Cityand the
supporting services for business are provided.Hotel accommodation business
The performance obligation is fulfilled when providing hotel accommodation
services. For the hotel accommodation business the progress of contractual
performance is determined based on the number of days of stay. For hotel
accommodation services a partial deposit iscollected from the customer first and
the remaining contract price is usually collected upon the completion of the hotel
accommodation services.Hotel catering business
The performance obligation is fulfilled when the hotel catering services are
provided. The contract price for hotel catering services is usually charged when the
hotel catering services are performed.Fixed -time paid funding services
The performance obligation is fulfilled when the fixed-time paid funding service is
provided. For the fixed-time paid funding service the progress of contractual
performance is determined based on the number of using days the fund. For the
fixed-time paid funding service the contract price is usually charged regularly as
agreed in the contract.
(4).Amortization to remaining contract performance obligations
√Applicable □Not applicable
At the end of the reporting period the amount of income corresponding to the
signed performance obligations that have not been performed or completed was
RMB 2442211788.88 including:
RMB 2442211788.88 that is expected to be recognized as income in 2025
Other notes:
None
62. Taxes and surcharges
√Applicable □Not applicable
Unit: RMB
Item Amount in the current period Amount in the previous period
Business tax 14077088.53 16379233.66
Land appreciation tax 10586314.21 95803585.25
Urban maintenance and 8757433.19 9103757.46
construction tax
Education surcharge 3759495.94 3906935.69
Property tax 111702852.72 125268158.58
land holding tax 9601436.31 12692931.55
Local education surcharge 2495683.67 2607911.04
Cultural undertaking 116214.00 1052183.47
development fee
Vehicle and vessel use tax 32.90 26.64
Stamp duty 4789431.36 3603764.16
Total 165885982.83 270418487.50
Other notes:
None
63. Selling expenses
√Applicable □Not applicable
Unit: RMB
Item Amount in the current period Amount in the previous period
Advertising fees 94410960.56 81143186.92
Marketing expenses 104738904.24 37498514.04
Security and insurance expenses 27115364.49 27662222.19
Depreciation and amortization 1345275.41 597232.05
Water electricity and fuel
3651395.20 3720492.74
expenses
Employee expenses 7379.32 896933.12
Others 10619907.22 6061246.80
Total 241889186.44 157579827.86
Other notes:
None
64. General and administrative expenses
√Applicable □Not applicable
Unit: RMB
Item Amount in the current Amount in the previous
period period
Employee and uniform expenses 245021737.66 213716941.74
Depreciation and amortization 37337018.02 15331035.80
Intermediary expenses 38529410.46 25584608.60
Travel expenses 5353751.01 6550118.05
Office expenses 14680708.68 11050072.13
Promotion and merchants introduction 937941.53 490039.39
expenses
Lease and property management 3071515.25 1622447.69
expenses
Others 32584762.84 6868168.42
Total 377516845.45 281213431.82
Other notes:
None
65. R&D expenses
√Applicable □Not applicable
Unit: RMB
Item Amount in the current Amount in the previous
period period
Employee expenses 6293791.55 14362675.64
Depreciation and amortization 343037.80 1129018.06
Technology development fee 7050178.63 863936.68
Others 4820619.01 1912551.74
Total 18507626.99 18268182.12
Other notes:
None
66. Financial expenses
√Applicable □Not applicable
Unit: RMB
Item Amount in the current Amount in the previous
period period
Interest 416095890.57 459857576.35
Amortization of commercial paper discount 3269879.47 5097531.46
Amortization of discounted bonds 2060361.37 2541047.54
payable
Less: interest income -230212773.93 -221495467.21
Less:capitalized amount of interest -29273761.94 -27860611.88
Foreign exchange profit and loss 13574395.11 3988114.57
Others 6575708.68 5430915.92
Total 182089699.33 227559106.75
Other notes:
The capitalized amount of borrowing costs has been included in the construction in progress.67. Other incomes
√Applicable □Not applicable
Unit: RMB
Item Amount in the current Amount in the previous
period period
Interest subsidy for the international 1154807.04 1162336.58
exhibition center construction fund
Government subsidy for service industry 266666.64 266666.64
cluster for 2011
Refund of social security contribution 4870959.47
Grant for the construction and operation of 3000000.00 1000000.00
Yiwu credit data center
R&D investment prize from Yiwu Science 2104180.00
and Technology Bureau
Additional deduction of input tax 1376744.49 1589393.47
Exhibition and conference subsidies 1309000.00
Employment stabilization subsidy 1091612.71
Others 2812361.79 2430325.96
Subsidy for 2019 China Yiwu Import 1487200.00
Commodities Fair
Fund of Yiwu E-commerce Credit 1090909.09
Information System Construction Project
Total 17986332.14 9026831.74
Other notes:
None
68. Investment income
√Applicable □Not applicable
Unit: RMB
Amount in the Amount in the
Item
current period previous period
Long-term equity investment income under the equity 34968640.68 52930591.12
method
Investment income from disposal of long-term equity -30134.35
investments
Investment income from held-for-trading financial
assets during holding period
Dividend income from other equity instruments 10034187.04 6271366.90
investment during holding period
Interest income from debt investment during holding 11786857.07
period
Interest income from other debt investments during
the holding period
Investment income from disposal of held-for-trading 377061.15 315943.29
financial assets
Investment income from disposal of other equity
instrument investments
Investment income from disposal of debt investment
Investment income fromdisposal of other debt
investments
Income acquired from other non-current financial 41242844.09 1067505.30
assets during the holding period
Gains from re -measurement of the remaining equity 30456963.96 9432366.22
at fair value after the loss of control
Investment income from disposal of subsidiaries and 394658616.42 99133233.54
related claims
Investment income from disposal of wealth 688953.43 34522867.19
management products
Total 524214123.84 203643739.21
Other notes:
None
69. Income from net exposure hedging
□Applicable √Not applicable
70. Income from changes in fair value
√Applicable □Not applicable
Unit: RMB
Sources of income from changes in Amount in the previous
Amount in the current period
fair value period
Held-for-trading financial assets 1706102.10 2974965.78
Other non-current financial assets -34661963.73 30712797.17
Total -32955861.63 33687762.95
Other notes:
None
71. Loss of impairment of credit
√Applicable □Not applicable
Unit: RMB
Amount in the current Amount in the previous
Item
period period
Bad debt loss of accounts receivable 23224.87 -2621.57
Loss for bad debts of other receivables 2259459.03 6228103.80
Total 2282683.90 6225482.23
Other notes:
None
72. Loss for asset impairment
√Applicable □Not applicable
Unit: RMB
Amount in
Item the current Amount in the previous period
period
I. Bad debt loss
II. Inventory depreciation loss and loss of -639659.42
impairment of contract performance cost
Total -639659.42
Other notes:
None
73. Income from asset disposal
√Applicable □Not applicable
Unit: RMB
Item Amount in the current period Amount in the previous period
Income from disposal of 6819021.38 140269.17
intangible assets
Income from disposal of 1361570.34 -
property plant and equipment
Total 8180591.72 140269.17
Other notes:
None
74. Non-operating income
Information of non-operating incomes
√Applicable □Not applicable
Unit: RMB
Amount recognized in
Amount in the current Amount in the prior profit and loss of
Item
period period nonrecurring items for
the current period
Government grants 669648.00 5000.00 669648.00
Incomes from 1402173.09 1876042.63 1402173.09
liquidated damages
Others 2353251.88 3406964.93 2353251.88
Total 4425072.97 5288007.56 4425072.97
Government grants recognized in the profit and loss for the current period
√Applicable □Not applicable
Unit: RMB
Amount in the Previous Asset-related or
Grant items
current period amount income-related
Tourism development special award 50000.00 Income-related
Relief fund for small and micro 10000.00 Income-related
enterprises and individual business
households in Shangcheng District
Subsidy for booth fee of 2020 56448.00 Income-related
Shanghai Gifts Exhibition
2019 overseas investment fund from 550000.00 Income-related
Yiwu Municipal Bureau of
Commerce
Subsidy from Yiwu Market 3200.00 Income-related
Development Committee
Subsidy from “Employment Salon” 5000.00 Income-related
activity from Employment
Administration
Total 669648.00 5000.00
Other notes:
□Applicable √Not applicable
75. Operating expenses
√Applicable □Not applicable
Unit: RMB
Amount recognized in
Amount in the Amount in the profit and loss of
Item
current period previous period nonrecurring items for
the current period
Total loss for disposal of 19632275.93 423539.32 19632275.93
non-current assets
Including: loss for disposal of 19632275.93 423539.32 19632275.93
property plant and equipment
External donation 6540313.91 1700000.00 6540313.91
Water conservancy 249883.92 385414.98 249883.92
construction fund
Others 214342.31 1724640.22 214342.31
Total 26636816.07 4233594.52 26636816.07
Other notes:
None
76. Income taxes
(1).Overview of income tax expenses
√Applicable □Not applicable
Unit: RMB
Item Amount in the current period Amount in the previous period
Current income taxes 510006312.87 416011315.18
Deferred income tax expenses -10251293.65 -32096093.21
Total 499755019.22 383915221.97
(2).Adjustment process of accounting profits and income tax expenses
√Applicable □Not applicable
Unit: RMB
Item Amount in the current period
Profits before tax 1421591074.43
Income tax expenses calculated at the 355397768.61
statutory/applicable tax rate
Impact of different tax rates applied by -796675.22
subsidiaries
Effect of adjusting income tax of previous 22988360.92
period
Effect of non-taxable income -5852491.11
Effect of non-deductible costs expenses and 4512924.49
losses
Effect of using deductible losses of 140442040.95
unrecognized deferred income tax assets in
previous period
Effect of deductible temporary differences or -2974306.87
deductible losses of unrecognized deferred
income tax assets in the current period
Profit and loss attributable to joint ventures and -13962602.55
associates
Income taxes 499755019.22
Other notes:
□Applicable √Not applicable
77. Other comprehensive income
√Applicable □Not applicable
Please refer to Notes 57 Other Comprehensive Income for details
78. Items of cash flow statement
(1).Other cash receipts relating to operating activities
√Applicable □Not applicable
Unit: RMB
Item Amount in the current period Amount in the previous
period
Deposit and margin received 164887997.67 112459798.73
Government grants received 3573983.14 6506919.43
Bank deposit interest income 221320446.07
received 230212493.06
Liquidated damages received from 1876042.63
market merchants 1402173.09
Yiwugo’s Bank Reserve Fund 5913807.91
received 1842251.21
Others 6870248.13 3411964.94
Total 408789146.30 351488979.71
Notes on other cash receipts relating to operating activities:
None
(2).Other cash payments relating to operating activities
√Applicable □Not applicable
Unit: RMB
Item Amount in the current period Amount in the previous
period
Major expenses paid 365010313.02 221395376.76
Repair costs and expenses paid 132298446.26 134845105.22
Deposit and security paid 95090779.43 88613132.66
Others 1689857.57 6312391.07
Total 594089396.28 451166005.71
Notes on other cash payments relating to operating activities:
None
(3).Other cash receipts relating to investing activities
√Applicable □Not applicable
Unit: RMB
Item Amount in the current period Amount in the previous
period
Recoveredpending investment
43027285.60 61690788.77
refunds
Advance subsidy for joint venture’s
subsidiaries that was recovered 1608852069.00 404187500.00
from the joint venture party
Subsidy for joint venture’s 2775280817.96 4717358398.04
subsidiaries
Receipt of redeemed financing
products 6000000.00
Cash balance on acquisition date of
subsidiary 17326086.71
Total 4450486259.27 5183236686.81
Notes on other cash receipts relating to investing activities:
None
(4).Other cash payments relating to investing activities
√Applicable □Not applicable
Unit: RMB
Item Amount in the current period Amount in the previous
period
Advance for land for proposed joint 1442960000.00
venture 281839499.86
Financial subsidy paid to Tonghui
Shangbo 1486368548.00
Financial subsidy paid to Handing
Shangbo 472144400.00
Financial subsidy paid tothe joint
venture in Dubai 63465484.42
Financial subsidy paid to Gongchen
Shangbo 49000000.00
Financial subsidy paid to 157575000.00
Huangyuan Shangbo
Total 2352817932.28 1600535000.00
Other cash paid related to investment activities:
None
(5).Other cash receipts relating to financing activities
□Applicable √Not applicable
(6).Other cash payments relating to financing activities
√Applicable □Not applicable
Unit: RMB
Item Amount in the current period Amount in the previous
period
Acquisition of minority shareholders'
equity in subsidiaries 64460000.00
Total 64460000.00
Other cash paid related to financing activities:
None
79. Supplements to cash flow statement
(1).Supplements to cash flow statement
√Applicable □Not applicable
Unit: RMB
Amount in the Amount in the
Supplementary information
current period previous period
1．Adjust net profits to cash flow from operating
activities:
Net profit 921836055.21 1248826326.96
Add: Provision for asset impairment 2282683.90 5585822.81
Loss of impairment of credit
Depreciation of property plant and equipment depletion 391308329.57 381208844.34
of oil and gas assets and depreciation of productive
biological assets
Amortization of right-of-use assets
Amortization of intangible assets 129979055.25 121670213.82
Depreciation and amortization of investment real estate 91509152.33 84154546.46
Amortization of long-term deferred expenses 64667911.54 76452536.09
Loss on disposal of property plant and equipment
intangible assets and other long-term assets (gain 11451684.21 -140269.17
presented with "-")
Loss from scrapping of property plant and equipment
(gain presented with "-")
Loss from changes in fair value (gain presented with "-") 32955861.63 -33687762.95
Financial expense (gain presented with "-") 392152088.59 439640799.51
Investment loss (gain presented with "-") -648958950.22 -444794565.39
Decrease in deferred income tax assets (increase
-7112433.29 -43200735.59
presented with "-")
Increase in deferred income tax liabilities (decrease
-3988508.40 11104642.41
presented with "-")
Decrease in inventory (increase presented with "-") -1156397502.91 -734413178.09
Decrease in operating receivables (increase presented
-538592969.66 -2769921310.46
with "-")
Increase in operating payables (decrease presented
1145695804.20 118606831.70
with "-")
Others
Net cash flow from operating activities 828788261.95 -1538907257.55
2．Significant investing and financing activities not
involving cash receipt and payment:
When the joint venture company was established based
on the equity of the subsidiary the original financial
subsidy for subsidiary’s prepayment for land was 1545759831.00
converted to other receivables from the subsidiary of the
joint venture
3．Net changes in cash and cash equivalents:
Closing balance of cash 2032642871.63 3426712549.26
Less: opening balance of cash 3426712549.26 2632160386.99
Add: closing balance of cash equivalents
Less: opening balance of cash equivalents
Net increase in cash and cash equivalents -1394069677.63 794552162.27
(2).Net cash paid for acquisition of subsidiaries in the current period
□Applicable √Not applicable
(3).Net cash received from disposal of subsidiaries in the current period
√Applicable □Not applicable
Unit: RMB
Amount
Cash or cash equivalents received for disposal of subsidiaries in 2232000000.00
the current period
Less: Cash and cash equivalents held by the company on the 2039533581.35
date of loss of control
Add: Cash or cash equivalents received in the current period
from the disposal of the subsidiary in the previous period
Net cash received from disposal of subsidiaries 192466418.65
Other notes:
None
(4).Composition of cash and cash equivalents
√Applicable □Not applicable
Unit: RMB
Item Closing balance Opening balance
I. Cash 2032642871.63 3426712549.26
Including: cash on hand 292999.29 523925.97
Bank deposit that can be used for payment at any 2032189759.31 3425411273.52
time
Other monetary capital that can be used for payment 160113.03 777349.77
at any time
II. Cash equivalents
Including: bond investments due within three months
III. Closing balance of cash and cash equivalents 2032642871.63 3426712549.26
Including:cash and cash equivalents with restricted use 60.58 56196102.62
by the parent company or its subsidiaries
Other notes:
√Applicable □Not applicable
Monetary capital with a deposit period of more than three months
Year 2020 Year 2019
Negotiated deposits 3580000000.00 3 003500000.00
80. Notes to items in statement of changes in owners’ equity
Names of “others” items whose closing balances in the previous year are adjusted
and the amounts of adjustments:
□Applicable √Not applicable
81. Assets with restricted title or right of use
√Applicable □Not applicable
Unit: RMB
Item Closing book value Reason for restriction
Monetary capital 60.58
Long-term equity investment 102918559.00
Other non-current financial assets 617511352.00
Total 720429971.58 /
Other notes:
Note 1: On December 31 2020 the bank deposits with a book value of RMB 60.58 (December 31
2019: RMB 56196102.62) were used asdeposits for opening a special governmental enhanced
credit account for import industriesdeposits for issuingletters of guarantee deposits for obtaining
commercial housing mortgage loan and pre-sale commercial housing funds under supervisionso that
they were restricted in ownership or use rights.Note 2: As of December 31 2020 the long-term equity investment with book value of RMB
102918559.00 (December 31 2019: RMB 102918559.00) andother non-current financial assets
with book value of RMB 617511352.00 (December 31 2019: RMB 617511352.00) had been
frozen by Shanghai Public Security Bureau. See Note XIV.1 for details.82. Foreign currency monetary items
(1).Foreign currency monetary items
√Applicable □Not applicable
Unit: RMB Yuan
Closing amount
Closing balance in after conversation:
Item Exchange rate
foreign currency RMB
Balance
Monetary capital - -
In which: USD 2793102.25 6.5249 18224712.87
EURO 810087.78 8.0250 6500954.43
Rwandan Franc 6995780.00 0.0066 46172.15
Dirham 349462.68 1.7761 620680.67
Koruna 1333480.79 0.3055 407373.38
Accounts Receivable - -
In which: USD 15996491.14 6.5249 104375505.04
EURO 140792.44 8.0250 1129859.33
Koruna 25340.99 0.3055 7741.67
Including: EURO 1209676.00 8.0250 9707649.90
Koruna 309530.00 0.3055 94561.42
Accounts payable
Including: EURO 152738.85 6.5249 996605.72
Koruna 311029.37 0.3055 95019.47
Other payables
In which: USD 1799920.00 6.5249 11744298.01
EURO 1233855.98 8.0250 9901694.24
Other notes:
None
(2).Notes on overseas business entities including with respect to important overseas
business entities disclosure of their overseas main business places functional
currency and the basis of choosing the functional currency and the reasons for
changes in functional currency (if any)
□Applicable √Not applicable
83. Hedging
□Applicable √Not applicable
84. Government grants
(1).Overview of government grants
√Applicable □Not applicable
Unit: RMB
Amount recognized in
Category Amount Presentation profit and loss for the
current period
Tourism development special award 50000.00 Non-operating 50000.00
income
Relief fund for small and micro 10000.00 Non-operating 10000.00
enterprises and individual business income
households in Shangcheng District
Subsidy for booth fee of 2020 Shanghai 56448.00 Non-operating 56448.00
Gifts Exhibition income
2019 overseas investment fund from 550000.00 Non-operating 550000.00
Yiwu Municipal Bureau of Commerce income
Subsidy from Yiwu Market Development 3200.00 Non-operating 3200.00
Committee income
Interest subsidy for the international 1154807.04 Other 1154807.04
exhibition center construction fund incomes
Government subsidy for service industry 266666.64 Other 266666.64
cluster for 2011 incomes
Refund of social security contribution 4870959.47 Other 4870959.47
incomes
Grant for the construction and operation 3000000.00 Other 3000000.00
of Yiwu credit data center incomes
R&D investment prize from Yiwu Science 2104180.00 Other 2104180.00
and Technology Bureau incomes
Additional deduction of input tax 1376744.49 Other 1376744.49
incomes
Exhibition and conference subsidies 1309000.00 Other 1309000.00
incomes
Employment stabilization subsidy 1091612.71 Other 1091612.71
incomes
Others 2812361.79 Other 2812361.79
incomes
Total 18655980.14 18655980.14
(2).Refund of government grants
□Applicable √Not applicable
Other notes:
None
85. Others
□Applicable √Not applicable
VIII. Changes in consolidation scope
1. Business merger not under common control
√Applicable □Not applicable
(1). Current business mergers not under the same control
√Applicable □Not applicable
Unit: RMB
Income
Percent of Net profit
Time age of Method Date for acquiree of acquiree Cost of
point of
equity equity
of determi from from
Acquisit
Acquiree equity acquire equity ning acquisitio acquisition acquisit ion date
acquisit d acquisit acquisiti n date as date as of ion
ion ion on date of the end the end of
（%）
of the the period
period
Zhejiang April 56.40 Acquisit April The 1289670 -2553977
Huajie 10 ion 10 earliest 7.15 8.66
Investme 2020 2020 date
nt and when
Develop the
ment Co. transfer
Ltd. of
control
is
effectua
ted
Other notes:
During the year the Group acquired 56.40% equity of Zhejiang Huajie Investment and Development
Co. Ltd. (hereinafter referred to as “Zhejiang Huajie”) from an independent third party at a
consideration of RMB 0.00 and assumed the obligation for paying the remaining contribution. On
April 10 2020 the Group completed the signing of the transfer agreement payment of capital
increase and changes in the registration with the administration for industry and commerce and the
acquisition date was determined as April 10 2020. Prior to this acquisition the Group had held 40%
of Zhejiang Huajie’s equity. According to Zhejiang Huajie’s articles of as sociation the Group
regarded Zhejiang Huajie as its associated enterprise and did not include it in the Group’s scope
ofconsolidation. After the completion of this acquisition the Group held 96.40% equity of Zhejiang
Huajie and began to include Zhejiang Huajie into the scope of consolidation from April 10 2020.
(2).Merger costs and goodwill
√Applicable □Not applicable
Unit: RMB
Merger cost Zhejiang Huajie
--Cash
--Fair value of the equity that had been held 603609.81
before the acquisition date on the acquisition date
--Others
Total merger costs 603609.81
Less: The share in the fair value of identifiable net 1454699.65
assets acquired
The difference between the -851089.84
goodwill/consolidation cost and the share in the
fair valueof identifiable net assets acquired
The method of determining the fair value of the merger cost contingent
consideration and its changes:
None
Main reasons for the formation of large -sum goodwill:
None
Other notes:
None
(3).Acquiree’s identifiable assets and liabilities on the acquisition date
√Applicable □Not applicable
Unit: RMB
Zhejiang Huajie
Fair value on acquisition date Book value acquisition date
Assets: 36287989.93 36287989.93
Current assets 18884042.30 18884042.30
Non-current assets 17403947.63 17403947.63
Liabilities: 34778965.40 34778965.40
Loans
Payables 34778965.40 34778965.40
Net assets 1509024.53 1509024.53
Less: Minority 54324.88 54324.88
shareholders' equity
Net assets acquired 1454699.65 1454699.65
Method for determining fair value of identifiable assets and liabilities:
The method for determining fair value of the acquiree’s identifiable assets and liabilities acquired in
business mergers not under the same control is evaluation by management expert using the
asset-based method.The acquiree’s contingent liabilities assumed in the business merger:
None
Other notes:
None
(4).Profit and loss arising from the re -measurement of equity held before the
acquisition date at fair value
Whether there wasany transaction that realized a business merger step by step in a
package deal and where the enterprise obtained control during the reporting period
□Applicable √Not applicable
(5).Relevant explanations on the circumstances where the merger consider ation or the
fair value of the acquiree’s identifiable assets and liabilities could not be reasonably
determined on the acquisition date or at the end of the current period
□Applicable √Not applicable
(6).Other descriptions
□Applicable √Not applicable
2. Business merger under the same control
□Applicable √Not applicable
3. Reverse acquisition
□Applicable √Not applicable
4. Disposal of subsidiaries
Has the Group lost control upon a single disposal of investment in a subsidiary?
√Applicable □Not applicable
Unit: RMB
Difference
between the
consideration of Remaini
the disposal and ng
Profit and loss
Percent Basis for the share in the sharehol Book value of Fair value of
For from the
age of Time of determinin subsidiary’s net ding ratio remaining remaining
Subsidi Consideration of the m of remaining
equity loss of g the time assets in the on the shareholding on the shareholding on the
ary equity disposal disp shareholding
dispose control of loss of consolidated date of date of loss of date of loss of
osal re-calculated by
d of (%) control financial loss of control control
fair value
statement control
corresponding to (%)
the investment
disposed
CCCP 1790000000.00 51 July 15 The 243462577.08 49 1485888896.53 1493547709.92 7658813.39
2020 earliest
date when
the transfer
of control is
effectuated
Pujiang 442000000.00 51 July 15 The 76819479.09 49 350859716.17 373657866.74 22798150.57
Lvgu 2020 earliest
date when
the transfer
of control is
effectuated
Gongc 100 Februa The 74376560.25
hen ry 28 earliest
Shangb 2020 date when
o the transfer
of control is
effectuated
Other notes:
√Applicable □Not applicable
Note 1: On July 12 2020 the YIWU CCC and CCCH signed an equity transfer agreement. The YIWU CCC transferred 51% of the equity of each of Yiwu China
Commodities City Property Development Co. Ltd. (hereinafter referred to as “CCCP”) and Pujiang Green Valley Real Estate Co. Ltd. (Hereinafter referred to
as “Pujiang Green Valley”) to CCCH. Through negotiation between both parties based on the evaluation value the transfer consideration was RMB 2.232
billion. According to the revised articles of association of the company the board of directors occupied by the Group and the proportion of votes held in the
shareholders’ meeting can realize the power to participate in the decision-making of the financial and operating policies of the CCCP and Pujiang Green Valley
by taking part in the resolution process of the shareholders’ meeting and the board of directors but the proportion of the votes held cannot control or jointly
controlwith other parties the making of such policies.Afterthe disposal the company's shareholding ratio in the CCP and Pujiang Green Valley declined from 100% to 49% and the articles of association of the
company and the registration with the administration for industry and commercehave been completed. The disposal date is July 15 2020. Therefore starting
from July 15 2020 the Group no longer incorporated the CCCP and Pujiang Green Valley into the scope of consolidation.Note 2: The Group’s subsidiary CCCP and Shenzhen Guoshen Real Estate Development Co. Ltd. signed a cooperative development
agreement on February 25 2020 to jointly incorporate a joint venture Yiwu Guoshen Shangbo Real Estate Co. Ltd. (hereinafter referred to as
“Guoshen Shangbo”) for co-development of the project of the plot for station construction.Shangcheng Real Estate acquired 49% of the equity of Guoshen Shangbo withits100% equity of Yiwu Gongchen Shangbo Real Estate Co.Ltd. (hereinafter referred to as “Gongchen Shangbo”) as a capital contribution of RMB 20000000.00 and completed the change s in the
registration with the administration for industry and commerce and the company appointed directors on February 28 2020. The disposal date
is February 28 2020. Therefore as of February 28 2020 the Group no longer included Gongchen Shangbo into the scope of con solidation.Did the Group dispose of subsidiaries through multiple transactions and lose control in the current period?
□Applicable√Not applicable
Package deal
□Applicable √Not applicable
Non-package deal
□Applicable √Not applicable
5. Changes in consolidation scope for other reasons
Changes in the consolidation scope for other reasons (e.g. new establishment of subsidiaries liquidation of subsidiaries etc.) and the related information:
√Applicable □Not applicable
In the current period the company set its subsidiaries including Yiwu China Commodity City Big Data Co. Ltd. Yiwu Comprehensive Free Trade Zone
Operation Management Co. Ltd. and Yiwu China Commodity City Research Institute Co. Ltd.; acquired Zhejiang Huajie Investment Development Co. Ltd.and its subsidiary Europe Huajie Development Co. Ltd. in a business merger not under common control ; the company's subsidiary Yiwu China Commodity
City Logistics Warehousing Co. Ltd. set a subsidiary Yiwu Global Yida Logistics Co. Ltd. in current period.6. Others
□Applicable √Not applicable
IX. Equity in Other Entity
1. Equity in subsidiaries
(1).Composition of the enterprise group
√Applicable □Not applicable
Principal Shareholding
Subsidiary Registering Nature of
business ratio (%)
Acquisition
Name place business Method
place Direct Indirect
Yiwu Shanglv Investment Yiwu Yiwu Real estate 49.00 Establishment
Development Co. Ltd. Zhejiang Zhejiang
Hunan Shang Yun Zhonghe Changsha Changsha Retail 35.00 Establishment
Scientific Research and Hunan Hunan
Trade Co. Ltd.Jiangsu Jin’an Hefeng Nanjing Nanjing Retail 40.00 Establishment
Network Technology Co. Ltd. Jiangsu Jiangsu
Henan Yiwugou Technology Puyang Puyang Retail 40.00 Establishment
Development Co. Ltd. Henan Henan
Yiwu Huishang Zijing Capital Yiwu Yiwu Service 20.00 Establishment
Management Co. Ltd. Zhejiang Zhejiang
Yiwu China Commodities City Yiwu Yiwu Lease and 49.00 Establishment
Creative Design and Zhejiang Zhejiang business
Development Services Co. service
Ltd.Yiwu Rongshang Property Yiwu Yiwu Real estate 49.00 Establishment
Co. Ltd. Zhejiang Zhejiang
Zhejiang Commodities City Yiwu Yiwu Culture 45.00 Establishment
China Olympic Sports Zhejiang Zhejiang sports and
Industry Co. Ltd. entertainment
Yiwu Chuangcheng Property Yiwu Yiwu Real estate 24.00 Establishment
Co. Ltd. Zhejiang Zhejiang
Yiwu Digital Port Technology Yiwu Yiwu Wholesale 51.00 Establishment
Co. Ltd. Zhejiang Zhejiang
Yiwu Guoshen Shangbo Yiwu Yiwu Real estate 49.00 Establishment
Property Co. Ltd. Zhejiang Zhejiang
Yiwu Huishang Micro-finance Yiwu Yiwu Service 23.00 Establishment
Co. Ltd. Zhejiang Zhejiang
Hangzhou Binjiang Shangbo Hangzhou Hangzhou Real estate 49.00 Establishment
Property Development Co. Zhejiang Zhejiang
Ltd.Yiwu Meipinshu Supply Chain Yiwu Yiwu Service 20.57 Establishment
Management Co. Ltd. Zhejiang Zhejiang
Yiwu Huishang Zijing Equity Yiwu Yiwu Commercial 10.42 Establishment
Investment Co. Ltd. Zhejiang Zhejiang services
Zhejiang Zhiku Co. Ltd. Hangzhou Hangzhou Service 45.00 Establishment
Zhejiang Zhejiang
Zhejiang Chouzhou Financial Yiwu Yiwu Service 26.00 Establishment
Lease Co. Ltd. Zhejiang Zhejiang
Yiwu Huishang Zijing Phase II Yiwu Yiwu Lease and 9.43 Establishment
Investment Partnership Zhejiang Zhejiang business
(Limited Liability Partnership) service
(Note 1)
Yiwu China Commodities City Yiwu Yiwu Lease and 49.00 Establishment
Investment Management Co. Zhejiang Zhejiang business
Ltd. service
Yiwu China Commodities City Yiwu Yiwu Lease and 49.90 Establishment
Fuxing Investment Center Zhejiang Zhejiang business
(limited partnership) service
Zhejiang Yemai Data Hangzhou Hangzhou Scientific 40.00 Establishment
Technology Co. Ltd. Zhejiang Zhejiang research and
technical
service
Zhejiang YXE Supply Chain Yiwu Yiwu Service 25.00 Establishment
Management Co. Ltd. Zhejiang Zhejiang
Yiwu Hongyi Equity Yiwu Yiwu Service 49.98 Establishment
Investment Fund Partnership Zhejiang Zhejiang
Hangzhou MicroAnts Co. Hangzhou Hangzhou Service 49.04 Establishment
Ltd. Zhejiang Zhejiang
Pujiang Lvgu Property Co. Pujiang Pujiang Real estate 49.00 Establishment
Ltd. Zhejiang Zhejiang
Yiwu China Commodities City Yiwu Yiwu Real estate 49.00 Establishment
Property Development Co. Zhejiang Zhejiang
Ltd.JEBEL ALI FREE ZONE Dubai Dubai Lease and - 30.00 Establishment
TRADER MARKET UAE UAE business
DEVELOPMENT AND service
OPERATION FZCO (Note 2)
Explanation for the difference between the shareholding ratio and voting right ratio in a subsidiary:
None
Basis for holding half or less voting rights in but still controlling an investee and holding more than
half of the voting rights in but not controlling an investee:
None
Basis for controlling important structured entities included in the consolidation scope:
None
Basis for determining whether a company is an agent or a principal:
None
Other notes:
None
(2).Important non-wholly-owned subsidiaries
√Applicable □Not applicable
Unit: RMB
Profit and loss Dividends declared
Shareholding
attributable to to be distributed to Closing balance
ratio of minority
Subsidiary minority minority of minority
shareholders
shareholders in the shareholders for interest.current period the current period
Yiwugou 49.00% 3277435.48 41586075.54
Company
Haicheng 5.00% -6669684.24 -35686244.88
Company
Explanation for the difference between the shareholding ratio and voting right ratio of minority
shareholders in a subsidiary:
□Applicable □Not applicable
None
Other notes:
□Applicable √Not applicable
(3).Major financial information of important non-wholly-owned subsidiaries
√Applicable □Not applicable
Unit: RMB
Closing balance
Subsidiary Non-current
Current assets Non-current assets Total assets Current liabilities Total Liabilities
liabilities
Yiwugou 101316274.63 10359392.32 111675666.95 26806125.02 26806125.02
Company
Haicheng 1245105579.07 1058046983.05 2303152562.12 3016831194.87 2555.83 3016833750.70
Company
Payment
Network
Company
Amount in the current period Amount in the previous period
Cash
Total flow Total Cash
Subsi Operati Operati
compreh from compreh flow from
diary ng Net profit ng Net profit
ensive operatin ensive operating
income income
income g income activities
activities
Yiwu 46205 668864 668864 629822 48045 382021 382021 -377828
gou 789.69 3.84 3.84 06.67 841.64 1.52 1.52 95.89
Comp
any
Haich 54662 -133393 -133393 -54602 20048 -145287 -145287 -130773
eng 63.3 684.88 684.88 532.25 86.95 795.79 795.79 836.26
Comp
any
Paym 12567 -155976. -155976. -403511
ent 00.78 91 91 6.93
Netw
ork
Comp
any
Other notes:
None
(4).Significant restrictions on the use of enterprise group’s assets and the settlement of
enterprise group’s debts
□Applicable √Not applicable
(5).Financial or other supports provided to structured entities included in the scope of
consolidated financial statements
□Applicable √Not applicable
Other notes:
□Applicable √Not applicable
2. Transactions in which the Group’s share of owners’ equity in a subsidiary
changes and the Group still controls the subsidiary
□Applicable √Not applicable
3. Equity in joint ventures or associates
□Applicable □Not applicable
(1).Important joint ventures or associates
√Applicable □Not applicable
Unit: RMB
Shareholding Accounting
ratio (%) treatment
Principal
Registering Nature of method of
Name of joint venture or associate business
place business investment in
place Direct Indirect
the joint venture
or associate
Joint venture
Yiwu Shanglv Investment Development Yiwu Yiwu
Real estate 49.00 Equity method
Co. Ltd. Zhejiang Zhejiang
Hunan Shang Yun Zhonghe Scientific Changsha Changsha
Retail 35.00 Equity method
Research and Trade Co. Ltd. Hunan Hunan
Jiangsu Jin’an Hefeng Network Nanjing Nanjing
Retail 40.00 Equity method
Technology Co. Ltd. Jiangsu Jiangsu
Henan Yiwugou Technology Puyang Puyang
Retail 40.00 Equity method
Development Co. Ltd. Henan Henan
Yiwu Huishang Zijing Capital Yiwu Yiwu
Service 20.00 Equity method
Management Co. Ltd. Zhejiang Zhejiang
Yiwu China Commodities City Creative Lease and
Yiwu Yiwu
Design and Development Services Co. business 49.00 Equity method
Zhejiang Zhejiang
Ltd. service
Yiwu Yiwu
Yiwu Rongshang Property Co. Ltd. Real estate 49.00 Equity method
Zhejiang Zhejiang
Culture
Zhejiang Commodities City China Yiwu Yiwu
sports and 45.00 Equity method
Olympic Sports Industry Co. Ltd. Zhejiang Zhejiang
entertainment
Yiwu Yiwu
Yiwu Chuangcheng Property Co. Ltd. Real estate 24.00 Equity method
Zhejiang Zhejiang
Yiwu Yiwu
Yiwu Digital Port Technology Co. Ltd. Wholesale 51.00 Equity method
Zhejiang Zhejiang
Yiwu Guoshen Shangbo Property Co. Yiwu Yiwu
Real estate 49.00 Equity method
Ltd. Zhejiang Zhejiang
Associate
Yiwu Yiwu
Yiwu Huishang Micro-finance Co. Ltd. Service 23.00 Equity method
Zhejiang Zhejiang
Hangzhou Binjiang Shangbo Property Hangzhou Hangzhou
Real estate 49.00 Equity method
Development Co. Ltd. Zhejiang Zhejiang
Yiwu Meipinshu Supply Chain Yiwu Yiwu
Service 20.57 Equity method
Management Co. Ltd. Zhejiang Zhejiang
Yiwu Huishang Zijing Equity Investment Yiwu Yiwu Commercial
10.42 Equity method
Co. Ltd. Zhejiang Zhejiang services
Hangzhou Hangzhou
Zhejiang Zhiku Co. Ltd. Service 45.00 Equity method
Zhejiang Zhejiang
Zhejiang Chouzhou Financial Lease Yiwu Yiwu
Service 45.00 Equity method
Co. Ltd. Zhejiang Zhejiang
Yiwu Huishang Zijing Phase II Lease and
Yiwu Yiwu
Investment Partnership (Limited Liability business 9.43 Equity method
Zhejiang Zhejiang
Partnership) (Note 1) service
Lease and
Yiwu China Commodities City Yiwu Yiwu
business 49.00 Equity method
Investment Management Co. Ltd. Zhejiang Zhejiang
service
Yiwu China Commodities City Fuxing Yiwu Yiwu Lease and 49.00 Equity method
Investment Center (limited partnership) Zhejiang Zhejiang business
service
Scientific
Zhejiang Yemai Data Technology Co. Hangzhou Hangzhou research and
40.00 Equity method
Ltd. Zhejiang Zhejiang technical
service
Zhejiang YXE Supply Chain Yiwu Yiwu
Service 25.00 Equity method
Management Co. Ltd. Zhejiang Zhejiang
Yiwu Hongyi Equity Investment Fund Yiwu Yiwu
Service 49.98 Equity method
Partnership Zhejiang Zhejiang
Hangzhou Hangzhou
Hangzhou MicroAnts Co. Ltd. Service 49.04 Equity method
Zhejiang Zhejiang
Hangzhou Hangzhou
Pujiang Lvgu Property Co. Ltd. Real estate 49.00 Equity method
Zhejiang Zhejiang
Yiwu China Commodities City Property Hangzhou Hangzhou
Real estate 49.00 Equity method
Development Co. Ltd. Zhejiang Zhejiang
JEBEL ALI FREE ZONE TRADER Lease and
Dubai Dubai
MARKET DEVELOPMENT AND business 30.00 Equity method
UAE UAE
OPERATION FZCO (Note 2) service
Explanation for the difference between the shareholding ratio and voting right ratio
in a joint venture or associate:
None
Bases for holding less than 20% of the voting rights but having significant influence
or holding 20% or more of the voting rights but not having significant influence:
Note 1: the company held 10.42% (2019: 10.42%) of equity of Yiwu Huishang Zijing Equity
Investment Co. Ltd. (hereinafter referred to as “Zijing Investment”) but treated it as an associated
enterprise of the company. According to Redbud Investment ’s articles of association it is engaged in
investing and its important financial and operating decision-making activities are to pick and manage
investment projects which have been fully entrusted to the Company’s joint venture Yiwu Huishang
Redbud Capital Management Co. Ltd. (“Redbud Capital”). Redbud Capital picks and manages
investment projects via its investment decision-making committee. Except for special investment
matters which are subject to the resolution of Redbud Investment’s board of directors other
important financial and operating decision-making activities are conducted by Redbud Capital on the
behalf of Redbud Investment. Therefore the company was able to exercise significant influence on
Zijing Investment in which the company held 10.42% of total equity.The company held 9.43% (2019: 9.43%) equity of Yiwu Huishang Zijing Phase II Investment
Partnership (Limited Liability Partnership) (hereinafter referred to as “Zijing Phase II”) but treated it
as an associated enterprise of the company. According to Redbud Phase II’s articles of association
it is engaged in investing and its important financial and operating decision-making activities are to
pick and manage investment projects which have been fully entrusted to the Company’s joint
venture Redbud Capital. Redbud Capital picks and manages investment projects via its investment
decision-making committee. Except for special investment matters which are subject to the
resolution of Redbud Phase II’s board of directors other important financial and operating
decision-making activities are conducted by Redbud Capital on the behalf of Redbud Phase II.Therefore the Company can exert significant influence on Redbud Phase II in which it holds 9.43%
equity.
(2).Main financial information of important joint ventures
√Applicable □Not applicable
Unit: RMB
Closing balance/amount in Opening balance/amount
the current period in the previous period
Yiwu Shanglv Yiwu Shanglv
Current assets 187602175.56 206568731.62
In which: cash and cash equivalents 24893904.53 11332301.02
Non-current assets 1369948370.68 1679507095.46
Total assets 1557550546.24 1886075827.08
Current liabilities 420643904.92 663841939.73
Non-current liabilities 356957211.08 477412606.21
Total Liabilities 777601116.00 1141254545.94
Shareholders’ equity attributable to parent 779949430.24 744821281.14
company
Share of net assets calculated based 382175220.82 364962427.76
shareholding ratio
Adjustments -16344463.91 -16822720.70
--Goodwill
--unrealized profits of internal transactions -16344463.91 -16822720.70
--Others
Book value of equity investment in joint 365830756.91 348139707.06
ventures
Operating income 209478335.98 204689977.41
Financial expenses 25646329.54 28735644.73
Net profit 35139746.38 11347037.00
Total comprehensive income 35139746.38 11347037.00
Dividends received from joint ventures this
year
Other descriptions
None
(3).Main financial information of important associates
√Applicable □Not applicable
Unit: RMB
Chouzhou Closing balance/amount in the current period Opening balance/amount in the previous period
Financial Binjiang Chouzhou Financial Hongyi Fund CCCP Pujiang Lvgu Binjiang Shangbo Chouzhou Hongyi Fund
Lease Shangbo Lease Financial Lease
Current assets 449245302.87 729334144.06 187130287.14 7550699967.90 1698615236.39 550436271.65 570925159.80 465583259.40
Non-current
assets 1049938.63 23528567351.36 1194476521.00 402934926.18 13005941.32 1469646.15 8564000577.98 715918730.13
Total assets 450295241.50 24257901495.42 1381606808.14 7953634894.08 1711621177.71 551905917.80 9134925737.78 1181501989.53
Current
liabilities 127876218.58 9453119751.14 1403096.04 4672430334.07 881609580.53 266275422.72 6875287112.49 160734.38
Non-current
liabilities 1244031946.25 209025799.71 74413699.44 984205719.99
Total Liabilities 127876218.58 10697151697.39 1403096.04 4881456133.79 956023279.97 266275422.72 7859492832.48 160734.38
Shareholders’
equity
attributable to
parent
company 322419022.92 1431799050.32 1380203712.10 3072178760.29 755597897.74 285630495.08 1275432905.30 1181341255.15
Share of net
assets
calculated
based
shareholding
ratio 157985321.23 372267753.09 689756805.12 1505367592.54 370242969.89 139958942.59 331612555.38 590434359.32
Adjustments -3833053.81 -947091.07 - -33794638.63 9429496.76 -2830554.84 -947091.07 -58917.06
--unrealized
profits of
internal
transactions -3833053.81 -947091.07 - -33794638.63 9429496.76 -2830554.84 -947091.07 -58917.06
Book value of
equity
investment in
joint ventures 154152267.42 371320662.02 689756805.12 1471572953.91 379642466.65 137128387.75 330665464.31 590375442.26
Operating
income 97702754.69 451218203.15 9448329.63 191339108.98 197049762.36 377690315.90 325849792.42
Net profit 34639674.53 156366145.02 18722456.95 -18536559.79 35614089.83 122584327.71 133430276.76 -19258744.85
Total
comprehensive
income 34639674.53 156366145.02 18722456.95 -18536559.79 35614089.83 122584327.71 133430276.76 -19258744.85
Other descriptions
None
(4).Summary financial information of unimportant joint ventures and associates
√Applicable □Not applicable
Unit: RMB
Closing balance/amount in the Opening balance/amount in the
current period previous period
Joint ventures:
Total book value of 49048582.56 68584729.53
investments
Total amounts of the following items calculated based on shareholding ratio
--Net profits -27738134.86 -30197372.68
Associates:
Total book value of 351543008.12 213223986.88
investments
Total amounts of the following items calculated based on shareholding ratio
--Net profits -6084558.45 14103997.65
Other descriptions
None
(5).Restrictions on the ability of joint ventures or associates to transfer money to the
Company
□Applicable √Not applicable
(6).Excess losses of joint ventures or associates
□Applicable √Not applicable
(7).Unrecognized commitments relating to investment in joint ventures
□Applicable √Not applicable
(8).Contingent liabilities relating to investment in joint ventures or associates
□Applicable √Not applicable
4. Important joint operations
□Applicable √Not applicable
5. Equity in structured entities not included in the consolidated financial
statements
Notes on structured entities not included in the consolidated financial statements:
□Applicable √Not applicable
6. Others
□Applicable √Not applicable
X. Risks associated with financial instruments
√Applicable □Not applicable
1. Classification of financial instruments
The book values of financial instruments on the balance sheet date are as follows:
Year 2020
Financial assets
Fin Financial assets Measured at Measured at fair
anc that are measured amortized cost value and w hose
ial at fair value and changes are
w hose changes included in Total
liab are included in the other
iliti current profit and comprehensive
loss income
es Requirements in Designated
the standard
Monetary capital - 5612642932.21 - 5612642932.21
Held-for-trading 51712734.31
f inancial assets 51712734.31 - -
Accounts Receivable - 153573476.86 - 153573476.86
Other receivables - 2708478136.25 - 2708478136.25
Other current assets - 3279187.50 - 3279187.50
Long-term 126756573.81
receivables - 126756573.81 -
Other equity 662256342.79
instruments
investment - - 6 62256342.79
Other non-current 1523925249.81
f inancial assets 1523925249.81 - -
1575637984.12 8604730306.63 662256342.79 10842624633.54
Other financial liabilities
Short-term loans 1257179389.40
Accounts payable 636463802.23
Other payables 1646345561.62
Non-current liabilities due within one 1315026574.43
year
Other current liabilities 3008141460.22
Long- term loans 282000000.00
Bonds payable 3552161709.68
11697318497.582019
Financial assets
Financial assets Measured at Measured at fair
that are measured amortized cost value and w hose
at fair value and changes are
w hose changes included in Total
are included in the other
current profit and comprehensive
loss income
Requirements in Designated
the standard
Monetary capital - 6486408651.88 - 6486408651.88
Held-for-trading - - 38077703.92
Fin f inancial assets 38077703.92
anc Accounts Receivable - 16031078.05 - 16031078.05
ial Other receivables - 1397228398.98 - 1397228398.98
Other current assets - 38049341.81 - 38049341.81
liab Long-term 61250000.00
61250000.00
iliti receivables - -
es Other equity -
instruments 642187968.78
investment - 642187968.78
Other non-current - -
1519449439.02
f inancial assets 1519449439.02
1557527142.94 7998967470.72 642187968.78 10198682582.44
Other financial liabilities
Short-term loans 4178903704.82
Accounts payable 525241493.48
Other payables 909483132.47
Non-current liabilities due within one 270332413.94
year
Other current liabilities 2011484113.28
Long- term loans 530694313.98
Bonds payable 4564291387.81
12990430579.78
2. Risks associated with financial instruments
The risks associated with financial instruments faced by the Group in regular
activities mainly include credit risk liquidity risk and market risk. The main financial
instruments of the Group include cash borrowings from banks bonds payable and
commercial papers payable. Those instruments are used mainly to finance the
operation of the Group. The Group has lots of other financial assets and liabilities
directly arising from operation such as accounts receivable other receivables
accounts payable and other payables. The risks associated with those financial
instruments and the risk management strategy taken by the Group to reduce those
risks are stated as follows.Credit risk
The Group only deals with the recognized third parties with good reputation.According to its policy the Group needs to carry out credit review on all clients who
require to deal with the Group on credit. In addition the Group keeps monitoring the
balance of accounts receivable to ensure it will not face any material bad debt risk.For the transactions settled other than in the functional currency of related business
entities unless with specific approval of the Group’s credit control department the
Group will not provide the conditions for dealing on credit. The Group also faces
credit risks due to the provision of financial guarantees. See the disclosure in Note
XII. 2 for details.As the counterparties to the transactions of cash are banks with good reputation
and high credit ratings the credit risk of those financial instruments is relatively low.The Group’s other financial assets include cash debt investment other receivables
and certain derivatives the credit risk of which is sourced from default by the
counterparties and the maximum risk exposure is equal to the book value of those
instruments.As the clients from which the Group’s accounts receivable are receivable are
scattered in different sectors and industries there’s no material credit risk
concentrated within the Group. The Group does not have any collaterals or other
credit enhancements for the balance of its accounts receivable.For quantitative data on the credit risk exposure of the Group due to accounts
receivable and other receivables see Note V.3 and 5 for details.Criteria for significant increase in credit risk
The Group evaluates on each balance sheet date whether the credit risk of
related financial instruments has increased significantly since the initial recognition
thereof. In determining whether the credit risk of a financial instrument has
increased significantly since the initial recognition thereof the Group takes into
account the reasonable and well-grounded information that is accessible without
unnecessary extra costs or efforts including the qualitative and quantitative
analyses based on the Group’s historical data external credit risk rating and
forward-looking information. The Group compares the risk of financial instruments
defaulting on the balance sheet date and the risk of them defaulting on the date of
initial recognition based on an individual financial instrument or a group of financial
instruments with similar credit risk characteristics to determine the changes in
anticipated default risk of the financial instrument(s) within the duration thereof.If a financial instrument meets one or more of the following quantitative or
qualitative criteria the Group will determine that its credit risk has increased
significantly:
（1） The main quantitative criterion is that its probability of default within the
remaining duration on the reporting date rises by a certain margin from that at
its initial recognition;
（2） The main qualitative criterion is that the debtor has materially adverse
changes in business or financial conditions or is on the warning list of clients.Definition of the assets whose credit has been impaired
In order to determine whether the credit of an asset has been impaired the Group
adopts the criteria consistent with its internal credit risk management goal for
related financial instruments and also takes into account the quantitative and
qualitative indicators. The Group mainly considers the following factors while
assessing whether the credit of a debtor has been impaired:
（1） the issuer or debtor suffers material financial difficulty;
（2） the debtor is in breach of contract such as breach in interest payment
principal repayment or overdue payment;
（3） the creditor makes a compromise to the debtor which it would in no case
make based on the economic or contract considerations in connection
with the debtor’s financial difficulty;
（4） the debtor is very likely to go bankrupt or enter into other financial
reorganizations;
（5） the financial difficulty of the issuer or debtor results in the disappearance
of the active market of the financial asset;
（6） a financial asset is purchased or derived at a large discount and the
discount points to the fact of credit loss having been incurred.The credit impairment of financial assets may be caused by multiple events
together and may not necessarily be caused by an individually identifiable event.Measurement parameters of expected credit loss
Depending on whether credit risk has increased significantly and whether credit has
been impaired the Group makes impairment provisions for the expected credit
losses of different assets within 12 months or the entire durations. The key
parameters of expected credit loss include the probability of default loss given
default and default risk exposure. The Group has built the models of probability of
default loss given default and default risk exposure based on the quantitative
analysis of historical data (e.g. rating of counterparties form of guarantee and
category of collaterals or pledges form of repayment) and forward-looking
information.The related definitions are as follows:
（1） The probability of default refers to the possibility that the debtor will be
unable to fulfill its payment obligations in the next 12 months or throughout
the remaining duration. The Group adjusts the probability of default based on
the results of the expected credit loss model and with forward-looking
information included to reflect the debtors’ probability of default under the
current macro economic environment.
（2） The default loss rate refers to the Group’s expectation on the extent of losses
incurred due to the default risk exposure. The loss given default varies with
the type of counterparty the form and priority of claims and collaterals. The
loss given default is the percentage of risk exposure loss at the time of
default and is calculated based on the coming 12 months or the entire
remaining duration.
（3） The default risk exposure refers to the amount that the Group should pay out
when a default occurs in the next 12 months or throughout the remaining
duration.The determination of significant increase in credit risk and the calculation of
expected credit loss both involve forward-looking information. The Group identifies
the key economic indicators that affect the credit risk and expected credit loss of
various types of businesses through the analysis of historical data.The influence of those economic indicators on the probability of default and loss
given default varies with the type of business. The Group predicts those indicators
on a quarterly basis based on experts’ judgments and determines their influence on
the probability of default and loss given default through regression analysis.The Group provides for the expected credit lossesin the next 12 months using the
simplified method for other receivables and the general method for other
receivables. See Note V. 3 and Note V.5 for details.Liquidity risk
The Group manages the cash shortage risk with the cyclical liquidity plan tool. The
tool considers not only the maturity dates of financial instruments but also the
estimated cash flows arising from the operation of the Group.The Group aims to make use of such financing instruments as bank loans
commercial papers MTNs corporate bonds and long-term borrowings to maintain
the balance between the continuity and flexibility of financing. As of December 31
2020 66.99% (December 31 2019: 60.81%) of the Group’s debts would become
due in less than one year.The following table summarizes theanalysis on the due day of financial liabilities
based on non-discounted contractual cash flows:
Year 2020
At call 1-3 months 3 months-1 year (1 1 year - 5 years (5 Above 5 Total
year inclusive) years inclusive) years
Short-term loans 3043884.75 704443269.49 559256951.23 - - 1266744105.47
Accounts
payable 538556910.03 97906892.20 - - - 636463802.23
Other payables 1168708392.46 - - 477637169.16 - 1646345561.62
Other current
liabilities 4131670.37 1002071232.88 2012205479.45 - - 3018408382.70
Due within 1
year
Non-current
liabilities 980000.00 51731333.33 1285433398.48 - - 1338144731.81
Long- ter m loans 868333.33 1736666.67 7815000.00 298671166.67 - 309091166.67
Bonds payable - - 141930000.00 3588613260.27 - 3730543260.27
1716289190.94 1857889394.57 4006640829.16 4364921596.10 - 11945741010.77
Year 2019
At call 1-3 months 3 months-1 year (1 1 year - 5 years (5 Above 5 Total
year inclusive) years inclusive) years
Short-term loans 732682609.75 1986244310.47 1498332939.75 - - 4217259859.97
Accounts
payable 204289969.87 320951523.61 - - - 525241493.48
Other payables 286500317.05 - - 622982815.42 - 909483132.47
Other current
liabilities - - 2049339726.03 - - 2049339726.03
Due within 1
year
Non-current
liabilities 906583.33 1813166.67 273619855.56 - - 276339605.56
Long- ter m loans 1893583.33 3787166.67 17042250.00 557830211.11 - 580553211.11
Bonds payable - - 189575674.15 4762947369.86 - 4952523044.01
1226273063.33 2312796167.42 4027910445.49 5943760396.39 - 13510740072.63
Market risks
Interest rate risk
The risk of changes in market interest rates faced by the Group is mainly related to
the Group's long-term liabilities at floating interest rates.The Group manages interest costs by maintaining an appropriate combination of
fixed-rate debts and variable-rate debts. In the long-term debts of the Group as of
December 31 2020 there are long-term loans of RMB 282 million in total. The
interest rate is adjusted based on the benchmark loan interest rate on that day at
the end of each year and will not be adjusted in the middle of the year. Therefore
the management believes that the risk of changes in market interest rates is
relatively low.Foreign exchange rate risk
The Group faces trading exchange rate risks. Such risks are caused by sales or
purchases made by certain business units in currencies other than their
bookkeeping currency. 3%(2019: 1%)of the Group’s current sales amount were
denominated in currencies other than the bookkeeping currencies of the business
units where the sales occurred and 98% (2019: 99%) of the cost were nominated in
the bookkeeping currencies of the business units. Considering the Group’s short
time of inventory and timely collection of accounts receivable the management
believe that its foreign exchange rate risk is relatively low.Price risk of equity instrument investments
The price risk of equity instrument investments refers to the risk of the fair value of
equity securities decreasing due to the changes in stock indices and value of
individual securities. On December 31 2020 the Group was exposed to the price
risk of equity instrument investment arising from individual equity instrument
investments that is measured at fair value and whose changes are included in the
current profit and loss (Note V. 2) andindividual equity instrument investmentsthat is
measured at fair value and whose changes are included in the other comprehensive
income (Note V. 10). The listed equity instruments that were invested and held by
the Group were listed on the Shanghai Stock Exchange and the Shenzhen Stock
Exchange respectively the determination is made through discounting and
adjustment using the trading prices of similar circulating stocks of the same listed
company on the balance sheet date combined with liquidity.The market stock indexes of the following stock exchanges at the closing point of
the trading day that is closest to the balance sheet date and their respective highest
and lowest closing points during the year are as follows:
At the end Highest/lowe At the end Highest/low
of 2020 st in 2020 of 2019 est in 2019
SZSE-A Share Index 2438 2442/1683 1802 1865/1303
SSE-A Share Index 3640 3640/2788 3196 3426/2580
The following table indicates the sensitivity of the Group’s net profit and loss and
other comprehensive income after tax to the change each 10% of the fair value of
equity instrument investment (based on the book value on the balance sheet date)
under the assumption that all other variables remain unchanged.Year 2020
Equity Increase/(decrease) Increase/(decrease) Increase/(decrease)
instrument in net prof it and loss in af ter-tax net in in total shareholders’
inv estment other comprehensiv e equity book v alue income
Equity instrument inv estment
Fair v alue increase/decrease
by 10%
SZSE—Equity instrument
inv estments that are measured
at f air v alue and whose
changes are included in other
comprehensiv e income 662256342.79 - 49669225.71 49669225.71
Shanghai—Equity instrument
inv estments that are measured
by f air v alue and whose 51712734.31 3878455.07 - 3878455.07
changes are included in the
current prof it and loss
Year 2019
Equity Increase/(decrease) Increase/(decrease) Increase/(decrease)
instrument in net prof it and loss in af ter-tax net in in total shareholders’
inv estment other comprehensiv e equity book v alue income
Equity instrument inv estment
Fair v alue increase/decrease
by 10%
SZSE—Equity instrument
inv estments that are measured
at f air v alue and whose
changes are included in other
comprehensiv e income 642187968.78 - 48164097.66 48164097.66
3. Capital management
The main objective of the Group in capital management is to ensure the Group’s
ability to continue operations and maintain a healthy capital ratio to support its
business development and maximize the values for shareholders.The Group manages and adjusts its capital structure based on the changes in the
economic situation and the risk characteristics of related assets. To maintain or
adjust the capital structure the Group may adjust the distribution of profits to
shareholders return capital contribution to shareholders or issue new shares. The
Group is not subject to external mandatory capital requirements. In 2020 and 2019
there was no change in objectives policies or procedures of capital management.XI. Disclosure of fair value
1. Closing fair value of the assets and liabilities measured by fair value
√Applicable □Not applicable
Unit: RMB
Closing fair value
Item Level 1 fair Level 2 fair
Level 3 fair value Total
value value
I. Continuous fair
value measurement
(1) Held-for-trading 6632.73 51706101.60 51712734.33
financial assets
1. Financial assets that 6632.73 51706101.60 51712734.33
are measured at fair
value and whose
changes are included in
the current profit and
loss
(2) Investment in equity 6632.73 51706101.60 51712734.33
instruments
(2) Other debt
investments
(3) Other equity 662256342.79 662256342.79
instruments investment
(4) Other non-current 179388640.95 1344536608.86 1523925249.81
financial assets
Total assets 662262975.52 231094742.55 1344536608.86 2237894326.93
continuously
measured by fair
value
2. Basis for determining the market prices of the items continuously and
non-continuously measured by Level 1 fair value
√Applicable □Not applicable
The Group’s level-1 items continuously measured at fair value mainly include listed equity
instruments and the fair value is determined based on the market quotation on the last
trading day of 2020.3. Valuation techniques and qualitative and quantitative information of important
parameters for the items continuously and non-continuously measured by Level
2 fair value
√Applicable □Not applicable
The Group’s level-2 items continuously measured at fair value mainly include unlisted
equity investments and listed equity instruments with restricted sales conditions. The fair
value of unlisted equity investments is determined based on the information in the financial
statements of these unlisted companies on December 31 2020 combined with
comparable information of listed companies in the same industry under the comparable
company multiplier method. In the listed equity instruments subject to restricted sales
conditions the valuation model is used to determine the fair value based on the market
quotation and the important observable input value is the liquidity discount.4. Valuation techniques and qualitative and quantitative information of important
parameters for the items continuously and non-continuously measured by Level
3 fair value
√Applicable □Not applicable
The Group’s level-3 items continuously measured at fair value include equity
investments and debt investments in non-listed companies for which the
comparable company multiplier method cannot be used. The fair value of the equity
investments and debt investments in non-listed companies for which the
comparable company multiplier method cannot be used are determined under the
asset-based method as of December 31 2020.5. Adjustment information between the opening book value and closing book value
and the sensitivity analysis of unobservable parameters for items continuously
measured by Level 3 fair value
□Applicable √Not applicable
6. For items continuously measured by fair value if there is conversion between
different levels in the current period the reasons for the conversion and the
policy for determining the time of conversion
□Applicable √Not applicable
7. Changes in valuation techniques in the current period and reasons for changes
□Applicable √Not applicable
8. Fair value of financial assets and financial liabilities not measured by fa ir value
√Applicable □Not applicable
Assets and liabilities disclosed by fair value
Year 2020
Entries used in the fair value measurement
Quotation in an Important observable Important observable
active market entry entry
Level 1 Level 2 Level 2 Total
Bonds payable (current 4566553461.90 4566553461.90
portion included)
9. Others
√Applicable □Not applicable
Estimate of fair value
Fair value of financial instruments
The table below shows the differences between book value and fair value of the
Group’s financial instruments other than the financial instruments with very small
differences between book value and fair value and the equity instruments that did not
have an offering price in the active market and whose fair value could not be measured
reliably:
Book v alue Fair v alue
Year 2020 Year 2019 Year 2020 Year 2019
Financial liabilities
bonds pay able
(current portion
included) 4584565819.27 4564291387.81 4566553461.90 4553867057.85
The management have evaluated cash and cash equivalents accounts receivable
notes payable and accounts payable. Their fair values were equivalent to their book
values as their remaining terms were not long. The fair values of long-term
receivables other non-current assets long and short-term borrowings and
long-term accounts payable were determined with the discounted future cash flow
method with the market yields of other financial instruments with similar contract
terms credit risks and remaining terms as the discount rates. Their fair values were
equivalent to their book values.The financial department of the Group is led by the general manager of the financial
department of the Group who is responsible for formulating policies and
procedures for the measurement of fair value of financial instruments. The general
manager of the financial department of the Group reports directly to the Financial
Director of the Group and the Financial Director reports to the audit committee. On
each balance sheet date the financial department analyzes the changes in the
value of financial instruments and determines the main input values applicable to
the valuation. The valuation shall be reviewed and approved by the Group's
Financial Director. For the preparation of semi-annual and annual financial
statements the valuation process and results are discussed with the audit
committee twice a year.The fair values of financial assets and financial liabilities refer to the amounts
determined based on the voluntary exchange of assets or repayment of debts by
the parties to arm’s length transactions who are familiar with the transactions rather
than forced sale or liquidation. The following methods and assumptions are used to
estimate fair value.The fair value of bonds payable is determined with the discounted future cash flow
method with the market yields of other financial instruments with similar contract
terms credit risks and remaining terms as the discount rates and falls in Level 2.The significant unobservable inputs for measurement of the fair value of bonds
payable are the prepayment rate and loss given default.If there are no restrictions on the sale of listed equity instruments the fair value is
determined at the quoted market price. In the listed equity instruments subject to
restricted sales conditions the valuation model is used to determine the fair value
based on the market quotation and the important observable input value is the
liquidity discount. The Group believes that the fair value estimated by valuation
techniques is reasonable and is also the most appropriate value on the balance
sheet date.There was no major transfer of financial instruments measured at fair value by the
Group and the Company between levels in current and previous years.XII. Related parties and related-party transactions
1. Parent company of the Company
√Applicable □Not applicable
Unit: RMB10000
Name of Shareholding Voting right ratio
Registering Nature of Registered
parent ratio in the in the Company
place business capital
company Company (%) (%)
Yiwu Asset 100000 55.82 55.82
CCCH
Zhejiang management
Notes on the parent company of the Company
None
The ultimate controlling party of this enterprise is the State-owned Assets Supervision and
Administration Office of Yiwu Municipal People's Government.Other notes:
None
2. Subsidiaries of the Company
For details of the Company’s subsidiaries please refer to the Notes
√Applicable □Not applicable
For details of subsidiaries see Note“Equity in Subsidiaries”
3. Joint ventures and associates of the Company
The important joint ventures or associated enterprises of this enterprise are detailed
in Note“Equity in joint ventures or associated enterprises”
□Applicable √Not applicable
Other joint ventures or associates that have related-party transactions with the
Company in the current period or had related-party transactions with the Company
in the prior year which resulted in an outstanding amount are as follows
√Applicable □Not applicable
Name of joint venture or associate Relationship
with the
Company
Yiwu Shanglv Joint venture
Binjiang Shangbo Associate
Huishang Micro-finance Associate
Redbud Capital Joint venture
Zhejiang Yemai Data Technology Co. Ltd. Associate
Yiwu Meipinshu Supply Chain Management Co. Ltd. Associate
JEBEL ALI FREE ZONE TRADER MARKET DEVELOPMENT AND Associate
OPERATZON FZCO
Yiwu Digital Port Technology Co. Ltd. Joint venture
Yiwu China Commodities City Property Development Co. Ltd. Associate
Other descriptions
□Applicable √Not applicable
4. Other related parties
√Applicable □Not applicable
Name of other related party Relationship with the Company
Subsidiary of the Company’s largest
Zhejiang Xingfuhu Sports Development Co. Ltd.shareholder
Subsidiary of the Company’s largest
Yiwu Security Service Co. Ltd.shareholder
Controlling shareholder of the Company’s
Yiwu Market Development Group Co. Ltd.largest shareholder
Controlling shareholder of the Company’s
Yiwu State-owned Capital Operation Co. Ltd.largest shareholder
Yiwu Huangyuan Shangbo Property Co. Ltd. Subsidiaries of joint ventures
Yiwu Chengzhen Property Co. Ltd. Subsidiaries of joint ventures
Yiwu Gongchen Shangbo Property Co. Ltd. Subsidiaries of joint ventures
Yiwu Tonghui Shangbo Real Estate Co. Ltd. Subsidiaries of joint ventures
Zhejiang Shangbo Property Co. Ltd. Subsidiaries of associates
Yiwu Handing Shangbo Real Estate Co. Ltd. Subsidiaries of associates
Other descriptions
None
5. Related-party transactions
(1).Related-party transactions of purchasing and selling goods and rendering and
accepting service
Purchasing goods/accepting service
√Applicable □Not applicable
Unit: RMB
Amount in
Contents of related-party Amount in the
Related party the previous
transaction current period
period
Yiwu Security Service Local and foreign currencies truck 69300.00 100237.50
Co. Ltd. escort security service fees
Xingfuhu International Materials for COVID-19 epidemic 205143.40
Conference Center prevention and control
Selling goods/rendering service
√Applicable □Not applicable
Unit: RMB
Contents of Amount in the
Amount in the
Related party related-party previous
current period
transaction period
MDG and its branch Xingfuhu International Laundry costs venue 6323286.35 8987041.46
Conference Center rental costs etc.Meipinshu Procurement agency 310367.07
Notes on related-party transactions of purchasing and selling goods and rendering and accepting
service
□Applicable √Not applicable
(2).Entrustment/contracting from and to related parties
Entrustment/contracting to the Company:
√Applicable □Not applicable
Unit: RMB
Entrustment
Starting Ending Pricing of
Type of income/contracting
Name of Name of date of date of entrustment
entrusted/contracted income recognized
consignor/employer consignee/contractor entrustment entrustment income/contracting
assets in the current
/contracting /contracting income
period
Our company Entrustment of other Negotiated price 1020591.87
MDG
assets
Notes on entrustment/contracting from related parties
√Applicable □Not applicable
According to the obligation Xingfuhu International Conference Center management contract signed
by and between the company and MDG the company is entrusted to manage the Xingfuhu
International Conference Center Hotel at No. 100 Xingfuhu Yiwu City. The hotel management fee
charged this year was RMB 1020591.87 (2019: RMB1018656.74).Entrusted management/contracted by the company
□Applicable √Not applicable
Notes on related-party management/contracting
□Applicable √Not applicable
(3).Related-party lease
The Company as the lessor:
√Applicable □Not applicable
Unit: RMB
Rental income Rental income
Type of leased
Name of lessee recognized in the recognized in the
asset
current period previous period
MDG Office space 836793.82 1131789.65
Huishang Micro-finance Office space 312233.27 434319.39
Redbud Capital Office space 246819.09 220921.54
Zhejiang Yemai Data Technology Office space 28793.86 53104.44
Co. Ltd.The Company as the lessee
□Applicable √Not applicable
Notes on related-party lease
√Applicable □Not applicable
The Group leased out office spaces to above related parties at market prices
(4).Related-party guarantees
The Company as the guarantor
√Applicable □Not applicable
Unit: RMB
Guaranteed Guaranteed Starting date of the Expiry date of the Whether the guarantee
party amount guarantee guarantee has been fulfilled
Yiwu Shanglv 234053272.54 July 1 2015 December 15 NO2026
Yiwu Shanglv 5635000.00 December 25 December 24 NO
2020 2023
Huangyuan 631658339.86 August 23 2019 August 22 2024 NO
Shangbo
Chengzhen 86475786.33 September 22 September 21 NO
Property 2019 2024
The Company as the guaranteed party
√Applicable □Not applicable
Unit: RMB
Whether the
Guaranteeing Guaranteed Starting date of the Expiry date of the
guarantee has been
party amount guarantee guarantee
fulfilled
MDG 200000000.00 April 22 2013 October 22 2021 NO
CCCH 5635000.00 December 25 December 24 NO
2020 2025
Notes on related-party guarantees
√Applicable □Not applicable
1. MDG provided an guarantee for an loan of RMB 200 million (December 31 2019: RMB 420 million)
for the Group with the Zhejiang Branch of the Export-Import Bank of China. As of December 31 2020
the Group's bank loans under said guarantee totaled RMB 200 million (December 31 2019: RMB 420
million) and MDG assumed full joint and several guarantee liabilities.2. The Group provided a guarantee for a loan up to RMB 49 million for Yiwu Shanglv withthe Yiwu
Branch of Bank of Communications Co. Ltd. As of December 31 2020 Yiwu Shanglv had borrowed
RMB 11.50 million (December 31 2019: RMB 0.00) from the bank. According to the guarantee
contract the Yiwu Branch of Bank of Communications Co. Ltd. assumed a guarantee liability for
RMB 5.63 million (December 31 2019: RMB 0.00). The company's controlling shareholder CCCH
provided the company with a counter-guarantee in the form of joint liability guarantee. The guarantee
is 2 years since the day after Zhejiang China Commodities City Group Co. Ltd. acted as the
guarantor to repay loans interest and related expenses for Yiwu Shanglv Investment Development
Co. Ltd.3. The Group provided loan guarantees for Yiwu Shanglv. As of December 31 2020 Yiwu Shanglv
had borrowed a total of RMB 477.6597 million from banks (December 31 2019: RMB 587.4126
million). As agreed in the guarantee contracts the company assumed the guarantee liability for RMB
234.0533 million (December 31 2019: RMB 287.8322 million) in total. The state-owned capital
operation center provided counter-guarantee for the said loan.4. The Group provided loan guarantees for Yiwu Shanglv. As of December 31 2020 Yiwu Shanglv
had borrowed RMB 11.5 million from banks (December 31 2019: RMB 0.00). As agreed in the
guarantee contracts the Group assumed the guarantee liability for RMB 5.63 million (December 31
2019: RMB 0.00). Yiwu China Commodities City Holdings Co. Ltd. provided counter-guarantee for
the said loan.5. The Group provided loan guarantees for Huangyuan Shangbo. As of December 31 2020
Huangyuan Shangbo had borrowed RMB 1289098700 from banks (December 31 2019: RMB
1682121700). As agreed in the guarantee contracts the com company assumed the guarantee
liability for RMB 631658300 (December 31 2019: RMB 824239600).6. The Group provided loan guarantees for Chengzhen Real Estate. As of December 31 2020
Chengzhen Real Estate had borrowed RMB 360315800 from banks (December 31 2019: RMB
839702800). As agreed in the contracts the company assumed the guarantee liability for RMB
86475800 (December 31 2019: RMB 201528700).
(5).Related-party lending and borrowing
√Applicable □Not applicable
Unit: RMB
Related Starting
Amount Expiry date Explanation
party date
Borrowings
Huangyuan 539000000.00 July 31 In 2020 the Group borrowed a total of RMB
Shangbo 2020 539000000.00 from Huangyuan Shangbo
according to the shareholding ratio atthe annual
interest rate of 0%. The due date is determined
based on the funding requirements of the
Huangyuan Shangbo project.Chengzhen 27200000.00 October In 2020 the Group borrowed a total of RMB
Property 22 27200000.00 from Chengzhen Real Estate
2020 according to the shareholding ratio atthe annual
interest rate of 0%. The due date is determined
based on the funding requirements of the
Chengzhen Real Estate project.Related Amount Starting Expiry Explanation
party date date
Lending to
Huangyuan 157575000.00 February July 31 The Group provided a total of RMB
Shangbo 25 2019 2020 526589117.96 of financial assistance
in 2018 and a total of RMB
157575000.00 of financial assistance
in 2019 to Huangyuan Shangbo atthe
annual interest rate of 0% or 10%.Among them the annual interest rate of
the portion beyond the shareholding
ratio is 10%. As of December 31 2020
Huangyuan Shangbohas repaid off
successively.Huangyuan 526589117.96 December July 1 Ditto
Shangbo 12 2018 2020
Chengzhen 451816700.00 June 27 October 22 In 2019 the Group provideda total of
Property 2019 2020 RMB 451816700.00 of financial
assistance to Chengzhen Real Estate at
an annual interest rate of 0% or 10%.Among them the annual interest rate of
the portion beyond the shareholding
ratio is 10%. As of December 31 2020
Chengzhen Real Estate has repaid off
successively.Gongchen 1073100000.00 December December In 2020 the Group provided a total of
Shangbo 28 2020 28 2020 RMB 1594759831.00 for financial
assistance to Gongchen Shangbo at the
annual interest rate of 10%. Gongchen
Shangbo has repaid RMB
1073100000.00successivelyin 2020.Gongchen 472659831.00 December Ditto
Shangbo 28 2020
Gongchen 49000000.00 May 14 Ditto
Shangbo 2020
Tonghui 1486368548.00 October 23 In 2020 the Group provided a total of
Shangbo 2020 RMB 1486368548.00 of financial
assistance to Tonghui Shangbo at an
annual interest rate of 6.5%. The
repayment period of the financial
assistance is determined based on the
progress of the project.Handing 472144400.00 December In 2020 the Group provided a total of
Shangbo 11 2020 RMB 472144400.00 of financial
assistance to Hangding Shangbo at the
annual interest rate of 6%. The
repayment period of the financial
assistance is determined based on the
progress of the project.JEBEL ALI 63465484.42 March 9 The Group provided a total of RMB
FREE 2020 63465484.42 of financial assistance to
ZONE JEBEL ALI FREE ZONE TRADER
TRADER MARKET DEVELOPMENT AND
MARKET OPERATZON FZCO in 2020 at the
DEVELOP annual interest rate in terms of 6-month
MENT AND average EIBOR plus 5%. The
repayment period of the financial
OPERATZ assistance is determined based on the
ON FZCO progress of the project.
(6).Related-party transfer of assets and restructuring of debts
√Applicable □Not applicable
Unit: RMB
Amount in the
Contents of related-party Amount in the
Related party previous
transaction current period
period
Zhejiang Shangbo Property Acquisition of property plant 19881919.03
Co. Ltd. and equipment and investment
real estate
(7).Remunerations of key officers
√Applicable □Not applicable
Unit: RMB
Amount in the previous
Item Amount in the current period
period
Remunerations of key officers 22487812.15 13392667.80
(8).Other related-party transactions
□Applicable √Not applicable
6. Accounts receivable from and payable to related parties
(1).Receivables
√Applicable □Not applicable
Unit: RMB
Closing balance Opening balance
Bad debt Bad debt
Project Related party
Book balance provisio Book balance provisio
n n
Yiwu Meipinshu
Accounts
Supply Chain 3791271.51
Receivable
Management
Total 3791271.51
Other
Gongchen
receivables-interes 101380259.61
Shangbo
t receivable
Other
Tonghui
receivables-interes 18391082.53
Shangbo
t receivable
Other
Handing
receivables-interes 1629868.34
Shangbo
t receivable
Other
Chengzhen
receivables-interes 191064382.11
Property
t receivable
Huangyuan
Other receivables 684164117.96
Shangbo
Chengzhen
Other receivables 451816700.00
Property
Gongchen
Other receivables 521659831.00
Shangbo
Tonghui 1486368548.0
Other receivables
Shangbo 0
Handing
Other receivables 472144400.00
Shangbo
2601573989.4 1327045200.0
Total
8 7
Long-term
Yiwu Shanglv 61250000.00 61250000.00
receivables
JEBEL ALI
FREE ZONE
TRADER
Long-term MARKET
65506573.81
receivables DEVELOPMEN
T AND
OPERATZON
FZCO
Total 126756573.81 61250000.00
(2).Payables
√Applicable □Not applicable
Unit: RMB
Project Related party Closing book Opening book balance
balance
Zhejiang Yemai Data 1944907.37 912462.01
Accounts payable Technology
Total 1944907.37 912462.01
Yiwu China 612289.00
Commodities City
Advance from
Property
customers
Development Co.Ltd.Advance from Huishang 119444.13 229295.66
customers Micro-finance
Advance from Yiwu Digital Port 116090.04
customers Technology
Advance from Redbud Capital 82272.97 90759.79
customers
Advance from Zhejiang Yemai Data 7395.00 4425.37
customers Technology
Yiwu Meipinshu 29076.43
Advance from
Supply Chain
customers
Management
Total 966567.57 324480.82
Huishang 12609.59
Contract liabilities
Micro-finance
Yiwu Digital Port 2192.92
Contract liabilities
Technology
Total 14802.51
Huangyuan 539000000.00
Other payables
Shangbo
Other payables Chengzhen Property 27200000.00
Other payables MDG 400421.10 140354.00
Huishang 85000.00
Other payables
Micro-finance
Zhejiang Yemai Data 24000.00 267150.20
Other payables
Technology
Yiwu China 240000.00
Commodities City
Other payables Property
Development Co.Ltd.Yiwu Meipinshu 57000.00
Other payables Supply Chain
Management
Yiwu Digital Port 26300.00
Other payables
Technology
Total 567032721.10 407504.20
7. Related-party commitments
□Applicable √Not applicable
8. Others
□Applicable √Not applicable
XIII. Share-based payment
1. Overview of share-based payment
√Applicable □Not applicable
Unit: Share Currency: RMB
Total amount of equity instruments granted by the company in
46700000.00
the current period
Scope of the exercise price of the stock options issued by the
companyand the remaining period of the contractat the end of 2.94
the period
Scope of the exercise price of other equity instruments issued
60 months since the
by the companyand the remaining period of the contractat the registering date of grant
end of the period
Other descriptions
None
2. Share-based payment settled with equity
√Applicable □Not applicable
Unit: RMB
Method for determining the fair value of equity Market price on grant day
instruments on the grant date
Basis for determining the number of exercisable Determined based on the number of incentive
equity instruments objects that have reached the assessment
target through annual assessment on the
company’s financial performance indicators
and personal performance indicators.Cumulative amount of equity-settled share-based 1880981.38
payments included in the capital reserve
Total amount of expenses recognized by 1880981.38
equity-settled share payments in the current
period
Other descriptions
On December 10 2020 the 2020 fifth extraordinary general meeting of shareholders of thecompany reviewed and approved the “Plan on the Company's Restricted Stock IncentivePlan 2020 (Draft)” and its summary. A total of 50480000 restricted stocks were granted
accounting for 0.927% of 5443214176 shares the company’s total share capital of which
47920000 shares were granted for the first time and 2560000 shares reserved; the
number of incentive recipients granted for the first time under the plan was 405 and the
restricted stock incentive recipients were the company’s (including its subsidiaries’)
directors senior management core technical personnel and other personnel deemed by
the board of directors to be motivated; the initial grant price of some restricted stocks
granted in this plan is RMB 2.94/share.According to the authorization of the fifth extraordinary general meeting of shareholders in
2020 the company held the 26th meeting of the eighth board of directors on December 112020 and reviewed and passed the “Plan on Initially Granting Restricted Shares toIncentive Objects”. The first grant date is December 11 2020. The number of first grants is
47920000 shares and the grant price is RMB 2.94/share. The source of the restricted
stock incentive plan is the company's directional issuance of restricted stocks to incentive
objects and the types of stocks is RMB common stocks. During the subscription process
10 incentive objects voluntarily waived 1220000 restricted stocks to be granted to them
due to personal reasons; therefore 46700000 restricted stocks were granted and the
number of incentive objects was 395 in this action. On December 29 2020 the company
received the subscription payment for restricted stocks for RMB 137298000.00 from the
incentive objects. The actual number of stocks subscribed was 46700000 which was
verified by Ernst & Young Hua Ming Certified Public Accountants (Special General
Partnership) with a capital verification report ( (2020) YZ No. 60709629_B01). On January
15 2021 the company's board of directors has completed the registration of the first grant
of restricted stocks.The restricted stocks granted for the first time under the restricted stock incentive plan
should be vested in three terms from the first trading day after 24 months after the grant
registration is completed until the last trading day in 60 months after the grant registration is
completed. That is after the vesting conditions have been satisfied employees have the
right to purchase stocks at the vesting price. If the vesting conditions of the restricted stock
incentive plan have been satisfied during the vesting period the incentive objects can apply
for the ownership of stocks and being listed for circulation.3. Share-based payment settled with cash
□Applicable √Not applicable
4. Modification and termination of share-based payment
□Applicable √Not applicable
5. Others
□Applicable √Not applicable
XIV. Commitments and contingencies
1. Important commitments
√Applicable □Not applicable
Important external commitments nature and amount thereof as of the balance
sheet dates
Capital commitment Year 2020 Year 2019
Signed but not provided 1346968354.17 128556605.78
Investment commitments:
In 2017 the Group’s wholly-owned subsidiary Yiwu China Commodities City Financial
Holdings Co. Ltd. (“CCCF”) and Shanghai Fuxing Industry Group Co. Ltd. (“Fuxing”) jointly
established an industry fund Yiwu China Commodities City Fuxing Investment Center (limited
partnership) (hereinafter referred to as the “FoF”). The FoF invested in 12 sub -funds including Yiwu
Shangfu Chuangzhi Investment Center (limited partnership) (“Shangfu Chuangzhi Fund”). CCCF
subscribed for capital contribution of RMB998million in the FoF as a limited partner accounting for
49.9% of the total capital contribution and has paid in RMB102.92million. The unpaid portion of its
subscribed capital contribution was promised to be RMB895.08million and was not subject to a
term. CCCF also made capital contribution of RMB9.8million (49% equity) to Yiwu China
Commodities City Investment and Management Co. Ltd. (hereinafter referred to as the “CCCIM”)
which was a general partner of the above FoF and sub-funds. Fuxing made capital contribution of
51% to and had control over CCCIM.Shangfu Chuangzhi Fund raised funds of RMB823.36million in total. The FoF has subscribed
for and paid in capital contribution of RMB205.84million as a limited partner (including the above
RMB102.92million from CCCIM and the rest was contributed by Fuxing the other limited partner of
the FoF). As the other limited partner of Shangfu Chuangzhi Fund CCCF has separately
subscribed for and paid in capital contribution of RMB617.51million. In addition neither the Group
nor CCCF have invested in other sub-funds of the FoF. Subsequently Shangfu Chuangzhi Fund
made capital contribution of RMB820.54million to subscribe for the increase in the registered
capital of Hubei Provincial Asset Management Co. Ltd. to acquire 22.667% equity therein. By
2019 9 out of the above 12 sub-funds had been deregistered.In 2018 CCCF learned during its after-investment follow-up management that Fuxing and its
actual controller ZHU Yidong were suspected of having committed a criminal offense and the
22.667% equity held by Shangfu Chuangzhi Fund in Hubei Provincial Asset Management Co. Ltd.was frozen by the Public Security Bureau of Shanghai for a term from Sep 6 2018 to Sep 6 2019
due to Fuxing’s contribution in the sources of the capital contribution. As of the approval date of the
financial statements the freeze period has been extended until September 2 2021.As of the approval date of the financial statements the Group had not received any notice of
capital contribution other than the above contributions that had been made or any notice of action
involving the Group CCCF FoF and its sub-funds.In addition as of December 31 2020 the Group had other investment commitments for RMB
201.71 million (December 31 2019: RMB 401.86 million) in total.2. Contingencies
(1).Important contingencies on the balance sheet dates
√Applicable □Not applicable
Year 2020. Year 2019
Contingent liability due to
external guarantees 973992539.81 1853883809.89
According to relevant regulations before the buyer of the commodity housing has
completed the property ownership certificate the Group needs to provide a
mortgage guarantee to the bank for the sale of commodity housing. As of
December 31 2020 the guarantee amount not settled was RMB 16170141.08
(December 31 2019: RMB 540283351.51). Those guarantees would be released
after the issuance of the property ownership certificates and are thus little likely to
incur losses. Therefore the management believed that it was not necessary to
make provision for the guarantees.According to the resolution of the 15th meeting of the 7th Board of Directors on Jul
1 2015 the Group applied to the Yiwu Branch of ABC for a RMB750million loan for
Yiwu Shanglv and provided guarantee based on its shareholding ratio. The
guarantee was a joint and several liability guarantee the maximum amount of
guarantee was RMB367.5million and the term was 11 years. As of December 31
2020 Yiwu Shanglvactually borrowed RMB 477659739.88 from banks (December
31 2019: RMB 587412606.21). In accordance with the guarantee contract the
Group assumed the guarantee liability for RMB 234053272.54 (December 31
2019: RMB 287832177.04) with Yiwu Branch of the Agricultural Bank of China.Yiwu State-owned Capital Operation Co. Ltd. provided a counter guarantee for this
guarantee.According to the resolution of the 19th meeting of the eighth session of the board of
directors on August 23 2020 the Group applied for a loan of no more than RMB
100 million with the Yiwu Branch of Bank of Communications for Yiwu Shanglv and
provided a guarantee based on the equity ratio. The guarantee method was joint
liability guarantee with the highest guarantee. The amount was RMB 49 million
and the guarantee period was two years from the day after the expiration of the loan
period under the independent contract. As of December 31 2020 Yiwu Shanglv
actually borrowed RMB 11500000.00 from the bank (December 31 2019: RMB
zero). According to the guarantee contract the Group shall assume the guarantee
liability for RMB 5635000.00 (December 31 2019: RMB zero) to the Yiwu Branch
of Bank of Communications. Yiwu China Commodity City Holdings Limited provided
counter-guarantee for this guarantee.According to the resolution of the 65th meeting of the 7th Board of Directors on Jul
23 2019 the Group applied to the Yiwu Branch of ICBC and Yiwu Branch of SPDB
for RMB1bn loans respectively for Huangyuan Shangbo and provided guarantees
for them based on its shareholding ratio. As of December 31 2020 Huangyuan
Shangbo actually borrowed RMB 674889305.56 from Yiwu Branch of Industrial
and Commercial Bank of China and RMB 614209347.22 from Shanghai Pudong
Development Yiwu Branch (December 31 2019: RMB 700923611.11 RMB
981198055.56) ). According to the guarantee contract the Group assumed a
guarantee liability for RMB 330695759.72 to the Yiwu Branch of Industrial and
Commercial Bank of China and a guarantee liability for RMB 300962580.14 to the
Yiwu Branch of Shanghai Pudong Development Bank (December 31 2019: RMB
343452569.44 and RMB 480787047.22 respectively).According to the resolution of the fourth meeting of the 8th Board of Directors on
Nov 4 2019 the Group applied to the Yiwu Branch of Hengfeng Bank for a loan
with a total amount no higher than RMB1.63bn for Chengzhen Property and
provided guarantee based on its shareholding ratio. The guarantee was a joint and
several liability guarantee the maximum amount of guarantee was
RMB391.2million and the term was from the maturity date of the debt agreed under
the corresponding loan contract until two years after the maturity date of the debt
agreed in the loan contract with the latest expiration date among all loan contracts.As of December 31 2020 Chengzhen Real Estate actually borrowed RMB
360315776.39 from Yiwu Branch of Evergrowing Bank (December 31 2019: RMB
839702769.44). In accordance with the guarantee contract it assumed a
guarantee liability of RMB 86475786.33 for Yiwu Branch of Evergrowing Bank
(December 31 2019: RMB 201528664.67).
(2).Notes shall also be made even if the Company has no important contingencies to be
disclosed:
□Applicable √Not applicable
3. Others
□Applicable √Not applicable
XV. Matters after the balance sheet date
1. Important non-adjusting events
√Applicable □Not applicable
Unit: RMB
Issuance of
Effect on
ultra-short-term
financial
financing notes
status
Item Content for which the
and
impact cannot
operating
be estimated:
results
Reasons
Issuance On January 14 2021 the company issued 88-day
Zhejiang China Commodities City Group Co. Ltd.’s
of 2021 ultra-short-term financing bonds (I) for RMB 1
ultra-short billion at the rate of 3.2%. On February 20 2021 the
company issued 182-day Zhejiang China Commodities
- term City Group Co. Ltd.’s 2021 ultra-short-term financing
financing bonds (II) for RMB 1 billion at the rate of 3.4%. From
March 4 2021 to March 5 2021 the company issued
bonds 88-day Zhejiang China Commodities City Group Co.Ltd.’s 2021 ultra-short-term financing bonds (III) with
one-off principal and interest repayment upon maturity
for RMB 1 billion at the rate of 3.09%.2. Profit distribution
√Applicable □Not applicable
Unit: RMB
Profits or dividends to be distributed 301945279.68
Profits or dividends announced through 301945279.68
deliberation and approval
3. Sales return
□Applicable √Not applicable
4. Other post-balance sheet date events
□Applicable √Not applicable
XVI. Other important matters
1. Correction of previous accounting errors
(1).Retrospective restatement
□Applicable √Not applicable
(2).Prospective application
□Applicable √Not applicable
2. Debt restructuring
□Applicable √Not applicable
3. Exchange of assets
(1).Exchange of non-monetary assets
□Applicable √Not applicable
(2).Exchange of other assets
□Applicable √Not applicable
4. Annuity plan
□Applicable √Not applicable
5. Termination of operations
□Applicable √Not applicable
6. Information of divisions
(1).Determination basis and accounting policy of reporting divisions
√Applicable □Not applicable
Information of divisions is reported based on business divisions of the Group. In the identification of
region-based divisions revenue is attributable to the divisions in the regions where the clients are
located and assets are attributable to the divisions in the regions where the assets are located. As
the Group’s main operating activities and operating assets are both concentrated in mainland China
it is not required to report more detailed information on region-based divisions.The Group’s businesses are organized and managed separately based on the nature of business
and the products and services provided. Each business division of the Group is a business
department or a subsidiary and provides the products and services that face the risk different from
that faced by other business divisions and bring the compensations different from those brought by
other business divisions. The detailed information on business divisions is summarized as follows:
(a) Market operation segment refers to the business that the Group engages in market
operation collecting business space usage fees and rentals for auxiliary buildings and
office buildings;
(b) Commodity sales segment refers to commodity trading business such as export trade;
(c) Real estate sales segment refers to thereal estatedevelopment and salebusiness;
(d) Hotel service segment refers to the operation of the hotel including guest room
accommodation catering services and other business activities;
(e) Exhibition advertising segment refers to the design production release and agency
advertising business;
(f) Other service segments include the provision of market-related supporting services.The transfer pricing between divisions is made based on the prices offered to third parties and the
then prevailing market prices.
(2).Financial information of reporting divisions
√Applicable □Not applicable
Unit: RMB million
Item Market Sales Real Hotel Exhibition Other Set-offs Total
operation of estate service and services among
goods sales advertising divisions
Revenue from 2736 424 38 156 110 262 0 3726
external
transactions
Revenue from 33 51 0 14 45 69 212 0
inter-division
transactions
Loss for asset 0 0 0 0 0 0 0 0
impairment
Profits before 1714 -48 1 -55 -23 48 216 1421
tax
Total assets 36501 379 641 282 648 3560 13261 28750
Total liabilities 21677 402 54 335 632 478 8403 15175
Capital 1158 6 0 32 40 92 0 1328
expenditures
Long-term 2906 0 0 0 0 927 0 3833
equity
investment in
joint ventures
and associates
(3).If the Company does not have reporting divisions or is unable to disclose the total
assets and total liabilities of each division please explain
□Applicable √Not applicable
(4).Other descriptions
□Applicable √Not applicable
7. Other important transactions and events that have influence on investors’ decisions
□Applicable √Not applicable
8. Others
√Applicable □Not applicable
As a tenant
Major operating leases: According to the lease contracts signed with the lessors
the amounts of the minimum lease payment for irrevocable leases are as follows:
2020 2019
Within 1 year (1 year inclusive) 5481259.27 6843030.36
1-2 years (2 years inclusive) 15750503.12 10173297.19
2-3 years (3 years inclusive) 14325047.19 5440615.15
Above 3 years 194335820.19 3456383.31
229892629.77 25913326.02
XVII. Notes to the main items in the corporate financial statements
1. Accounts Receivable
(1).Disclosure based on account age
√Applicable □Not applicable
Unit: RMB
Age Closing book balance
Within 1 year
Within 1 year 14267749.52
1 to 2 years 407254.08
Above 3 years 11562.06
Less: bad debt provision for accounts -14988.19
receivable
Total 14671577.47
(2).Categorized disclosure based on the bad debt provision method
√Applicable □Not applicable
Unit: RMB
Closing balance Opening balance
Book balance Bad debt provision Book balance Bad debt provision
Type Provisi Book Provisi Book
Amount (%) Amount on ratio value Amount (%) Amount on ratio value
(%) (%)
Accounts 78801.18 3.19 78801. 100.00
receivable 18
for w hich
bad debt
provision is
made
individually
Accounts 146865 100.0 14988. 0.10 14671577. 2393443. 96.8 11745. 0.19 2381698.receivable 65.66 0 19 47 69 1 46 23
for w hich
bad debt
provision is
made by
group
146865 / 14988. / 14671577. 2472244. / 90546. / 2381698.Total
65.66 19 47 87 64 23
Accounts receivable for which bad debt provision is made individually:
□Applicable √Not applicable
Explanation for making bad debt provision for accounts receivable by group:
√Applicable □Not applicable
Items for which the bad debts are provided for by combination: by combination of credit risk
characteristics
Unit: RMB
Closing balance
Name Accounts Bad debt Provision ratio
Receivable provision (%)
Provision for bad debt by combination of 14686565.66 14988.19 0.10
credit risk characteristics
Total 14686565.66 14988.19 0.10
Standard for recognition of provision for bad debt by combination of credit risk characteristics and
descriptions:
√Applicable □Not applicable
None
If the bad debt provision is made according to the general model of expected credit loss please refer
to the disclosure of other receivables:
√Applicable □Not applicable
Year 2020 Year 2019
Book blance w i Expected Expected Book blance Expected Expected
th expected de credit credit loss for w ith expected credit credit loss for
fault loss rate the entire defaul loss rate the entire
（%） duration （%） duration
Within 1 year 14267749.52 0.01 1350.33 2381881.63 0.01 183.40
1 - 2 years 407254.08 0.51 2075.80 - 0.41 -
2 -3 years - 13.76 - - 11.19 -
Above 3 years 11562.06 100.00 11562.06 11562.06 100.00 11562.06
14686565.66 14988.19 2393443.69 11745.46
(3).Provisions for bad debts
√Applicable □Not applicable
Unit: RMB
Amount of change during the current period
Opening Closing
Type Recovery Charge-off Other
balance Accrual balance
or reversal or write-off changes
Bad debt provision 90，546.64 75558.45 14988.19
for accounts
receivable
Total 90546.64 75558.45 14988.19
In which the recovered or reversed amount is important:
□Applicable √Not applicable
(4).Accounts receivable actually written off during the current period
□Applicable √Not applicable
Information of write-off of important accounts receivable
□Applicable √Not applicable
(5).Accounts receivable from the five debtors with the highest closing balance
□Applicable √Not applicable
(6).Accounts receivable derecognized due to transfer of financial assets
□Applicable √Not applicable
(7).Amounts of assets and liabilities formed by the transfer of accounts receivable and
continuing involvement
□Applicable √Not applicable
Other notes:
√Applicable □Not applicable
The Company is mainly engaged in market operation and hotel services and its revenue from an
individual client is very low. Therefore the combined accounts receivable from the top five clients
occupied a very small share in its total balance of accounts receivable.2. Other receivables
Presentation of items
√Applicable □Not applicable
Unit: RMB
Item Closing balance Opening balance
Interest receivable 121401210.48 134543859.25
Other receivables 2530239399.58 1145594759.16
Total 2651640610.06 1280138618.41
Other notes:
□Applicable √Not applicable
Interest receivable
(1).Categorization of interest receivable
√Applicable □Not applicable
Unit: RMB
Item Closing balance Opening balance
Cash occupation fee for 121401210.48 134543859.25
receivables
Total 121401210.48 134543859.25
(2).Significant overdue interest
□Applicable √Not applicable
(3).Bad debt provision
□Applicable √Not applicable
Other notes:
√Applicable □Not applicable
As of December 31 2020 the capital occupation fee receivable is the capital occupation fee
collected by the company for providing financial assistance to joint ventures and associated
companies.Dividend receivable
(1).Dividend receivable
□Applicable √Not applicable
(2).Important dividend receivable with an account age longer than 1 year
□Applicable √Not applicable
(3).Bad debt provision
□Applicable √Not applicable
Other notes:
□Applicable √Not applicable
Other receivables
(1). Disclosure based on account age
√Applicable □Not applicable
Unit: RMB
Age Closing book balance
Within 1 year
Within 1 year 2525769414.60
1 to 2 years 303032.27
2 to 3 years 1007122.97
Above 3 years 3445419.62
Less: Provision for bad debts of other receivables -285589.88
Total 2530239399.58
(2). Classification based on the nature of accounts
√Applicable □Not applicable
Unit: RMB
Nature of account Closing book balance Opening book balance
Financial grants receivable 2480172779.00 1135980817.96
Receivables from land 42493714.00
Reserve 430887.57 599890.14
Withholdings deposit and 7142019.01 9014051.06
margin
Total 2530239399.58 1145594759.16
(3). Bad debt provision
√Applicable □Not applicable
Unit: RMB
Stage 1 Stage 2 Stage 3
Expected credit Expected credit loss Expected credit loss
Bad debt provision loss in the in the entire duration in the entire duration Total
coming 12 (credit has not been (credit has been
months impaired) impaired)
Balance as of Jan 540270.80 540270.80
1 2020
Balance on January
1 2020 in current
period
--Transfer to stage2
--Transfer to stage3
- Return to stage 2
--Return to stage 1
Provision made in 2734.85 2734.85
the current period
Current reversal 132334.44 132334.44
Write-off in current
period
Current write-off 125081.33 125081.33
Other changes
Balance on 285589.88 285589.88
December 31 2020
Significant changes in the book balance of other receivables with changes in loss
provisions:
□Applicable √Not applicable
Basis for the bad debt provision made in the current period and for assessing
whether the credit risk of financial instruments has increased significantly:
□Applicable √Not applicable
(4). Provisions for bad debts
√Applicable □Not applicable
Unit: RMB
Amount of change during the current period
Opening Closing
Type Recovery Charge-off Other
balance Accrual balance
or reversal or write-off changes
Bad debt 540270.80 2734.85 132334.44 125081.33 285589.88
provision for
other
receivables
Total 540270.80 2734.85 132334.44 125081.33 285589.88
In which the recovered or reversed amount is important:
□Applicable √Not applicable
(5). Other receivables actually written off during the current period
□Applicable √Not applicable
(6). Other receivables from the five debtors with highest closing balance
√Applicable □Not applicable
Unit: RMB
Weight in the
total closing Bad debt
Nature of balance of provision
Debtor Closing balance Age
receivable other Closing
receivables balance
(%)
Yiwu Tonghui Shangbo Real Financial 1486368548.00 Within 1 58.86
Estate Co. Ltd. assistance year
Yiwu Gongchen Shangbo Financial 521659831.00 Within 1 20.61
Property Co. Ltd. assistance year
Yiwu Handing Shangbo Real Financial 472144400.00 Within 1 18.66
Estate Co. Ltd. assistance year
Yiwu Natural Resources and Receivables 42493714.00 Within 1 1.68
Planning Bureau from land year
Yiwu International Production Construction 2400000.00 Above 3 0.10
Material Market Construction commencement years
Headquarters deposit
Total / 2525066493.00 / 99.91
(7). Receivables involving government grants
□Applicable √Not applicable
(8). Other receivables derecognized due to transfer of financial assets
□Applicable √Not applicable
(9). Amounts of assets and liabilities formed by the transfer of other receivables and
continuing involvement
□Applicable √Not applicable
Other notes:
□Applicable √Not applicable
3. Long-term equity investment
√Applicable □Not applicable
Unit: RMB
Closing balance Opening balance
Impairm Impairm
Item
Book balance ent Book value Book balance ent Book value
provision provision
Investm 315782539 315782539 595837003 595837003
ent in 1.43 1.43 1.25 1.25
subsidia
ry
Investm 2925310036. 2925310036. 927726964. 927726964.ent in 59 59 52 52
associat
es and
joint
ventures
6083135428. 6083135428. 688609699 688609699
Total 02 02 5.77 5.77
(1). Investment in subsidiary
√Applicable □Not applicable
Unit: RMB
Closing balance
Increase in the Decrease in the
Investee Opening balance Closing balance of impairment
current period current period
provision
Yiw u China Commodities City 2595500000.00 2595500000.00
Property Development Co. Ltd.Yiw u China Commodities City 9380000.00 29841752.54 39221752.54
Advertising Co. Ld.Yiw u China Commodities City 6000000.00 12044533.91 18044533.91
Exhibition Co. Ltd.Yiw u China Commodities City 19000000.00 4471131.52 23471131.52
Logistics Co. Ltd.Yiw u China Commodities City 200594000.00 200594000.00
Information Technology Co.Ltd.China Yiw u International 10000000.00 10000000.00
Commodities Fair Co. Ltd.Pujiang Lvgu Property Co. Ltd. 700000000.00 700000000.00
- 43709.21 43709.21 570000000.00
Haicheng Company
Hangzhou Shangbo Nanxing 50000000.00 50000000.00
Property Co. Ltd.Yiw u Shangbo Property Co. 300000000.00 300000000.00
Ltd.Yiw u China Commodities City 1847416031.25 110053605.63 1957469636.88
Financial Holdings Co. Ltd.Yiw u China Commodities City 50000000.00 73398.48 50073398.48
Import and Export Co. Ltd.Yiw u China Commodities City 70200000.00 64019.49 70264019.49
Tourism Development Co. Ltd.Yiw u China Commodities City 100000000.00 41073.44 100041073.44
Overseas Investment and
Development Co. Ltd.Yiw u China Commodities City 100000.00 100000.00
Commerce and Trade Service
Training Center Co. Ltd.Yiw u China Commodities City 180000.00 4900000.00 5080000.00
Assets Operation and
Management Co. Ltd.Zhejiang Yindu Hotel 1570540.29 1570540.29
Management Co. Ltd.Yiw u China Commodities City 81534944.31 81534944.31
Big Data Co. Ltd.Yiw u Comprehensive Bonded 6014844.64 6014844.64
Zone Operation and
Management Co. Ltd.Yiw u China Commodities City 1124741.06 1124741.06
Research Institute Co. Ltd.Zhejiang Huajie Investment and 53121810.63 53121810.63
Development Co. Ltd.Yiw u Commodities City 200000000.00 200000000.00
Gonglian Property Co. Ltd.Yiw u China Commodities City 55255.02 55255.02
Supply Chain Management Co.Ltd.5958370031.25 504955360.17 3305500000.00 3157825391.42 570000000.00
Total
(2). Investment in associates and joint ventures
√Applicable □Not applicable
Unit: RMB
Change in the current period
Investme Closing
Adjustm
nt profit balance
Additiona Reduce ent of Change
Investment Opening and loss Closing of
l d other s in
object Balance recognize Balance impairme
investme investm compreh other
d with the nt
nt ent ensive equity
equity provision
income
method
1. Joint ventures
Yiwu Shanglv 348139 176910 365830
707.06 49.85 756.91
Yiwu 189037 341531 223190
Rongshang 63.93 1.71 75.64
Property Co.Ltd.Yiwu 157443 -429959 114447
Chuangcheng 85.06 8.32 86.74
Property Co.Ltd.Yiwu 147955 -147955 -
Guoshen 58.65 58.65
Shangbo
Property Co.Ltd.Others 112541 765000 -62370.4 871304
5.74 0.00 5 5.29
Subtotal 349265 570937 194883 408307
122.80 07.64 4.14 664.58
2. Associates
Binjiang 137128 170238 154152
Shangbo 387.75 79.67 267.42
Huishang 833023 13800 189422 713965
Micro-finance 36.78 000.00 9.29 66.07
Chouzhou 330665 406551 371320
Financial 464.31 97.71 662.02
Lease
Pujiang Lvgu 175267 343000 979206 370318
Property Co. 74.88 000.00 5.88 840.76
Ltd.Yiwu China (941312 127179 238135 150051
Commodities 1.78) 5000.00 906.80 7785.02
City Property
Development
Co. Ltd.Others 273656 300000 32577 -481161 492962
52.88 00.00 84.88 7.28 50.72
Subtotal 578461 300000 17057 628753 161479 247927 251700
841.72 00.00 784.88 42.49 5000.00 972.68 2372.01
927726 870937 17057 648241 161479 247927 292531
Total
964.52 07.64 784.88 76.63 5000.00 972.68 0036.59
Other notes:
None
4. Revenue and cost of sales
(1). Overview of revenue and cost of sales
√Applicable □Not applicable
Unit: RMB
Amount in the current period Amount in the prior period
Item
Incomes Costs Incomes Costs
Main business 2323724833.35 979994093.76 2382097264.23 1063799720.32
Other businesses 680736868.13 77147542.46 780466882.16 41373382.54
Total 3004461701.48 1057141636.22 3162564146.39 1105173102.86
(2). Revenue generated from contracts
√Applicable □Not applicable
Unit: RMB
Classified by type of contract Total
Types of goods
The use of commercial spaces in the Commodity City and 2518760008.72
its supporting services
Hotel accommodation and catering services 151368495.20
Royalty income 158666105.16
Other services 44762805.89
Total 2873557414.97
Classified by business area
Chinamainland 2873557414.97
Classification by time of good transfer
Hotel catering services 101370661.17
Other services 13810641.69
Classified by contract period
The use of commercial spaces in the Commodity City and 2518760008.72
its supporting services
Hotel accommodation service 49997834.03
Royalty income 158666105.16
Other services 30952164.20
Total 2873557414.97
Description of the incomefrom contracts:
√Applicable □Not applicable
The income recognized in the current year and included in the opening book value of
contractual liabilities is as follows:
Year 2020
The use of commercial spaces in the
Commodity City and its supporting
2045470400.02
services for business
Hotel accommodation service 4571618.80
Other services 10347082.83
2060389101.65
In 2020 there was no income recognized in the current year for performance obligations
completed (or partially completed) in the previous period.
(3). Contract performance obligations
√Applicable □Not applicable
The information related to the performance obligations of the Group is as follows:
The use of commercial spaces in the Commodity City and its supporting services
The contractual performance obligation is fulfilled when providing the use of commercial
spaces in the Commodity City and the supporting services for business. For the use of
commercial spaces in the Commodity Cityand the supporting services for business the
progress of contract performance is determined based on the number of using days of the
commercial spaces. Customers usually need to pay in advance before the use of
commercial spaces in the Commodity Cityand the supporting services for business are
provided.Hotel accommodation business
The performance obligation is fulfilled when providing hotel accommodation services. For
the hotel accommodation business the progress of contractual performance is determined
based on the number of days of stay. For hotel accommodation services a partial deposit
iscollected from the customer first and the remaining contract price is usually collected
upon the completion of the hotel accommodation services.Hotel catering business
The performance obligation is fulfilled when the hotel catering services are provided. The
contract price for hotel catering services is usually charged when the hotel catering
services are performed.Fixed -time paid funding services
The performance obligation is fulfilled when the fixed-time paid funding service is provided.For the fixed-time paid funding service the progress of contractual performance is
determined based on the number of using days the fund. For the fixed-time paid funding
service the contract price is usually charged regularly as agreed in the contract.
(4). Amortization to remaining contract performance obligations
□Applicable √Not applicable
Other notes:
As of December 31 2020 the transaction price allocated to the remaining performance
obligations was RMB 2283994068.70. The Group expects that this amount will be
recognized as an income in the next 5 years with the progress of the relevant service.5. Investment income
√Applicable □Not applicable
Unit: RMB
Amount in the current Amount in the
Item
period previous period
Income from long-term equity investment with the 149000000.00
cost method
Long-term equity investment income under the 64824176.63 77023131.33
equity method
Investment income from disposal of long-term 551295000.00
equity investments
Dividend income from other equity instruments 10034187.04 6271366.90
investment during holding period
Investment income from disposal of 377061.16 315943.29
held-for-trading financial assets
Investment income from disposal of other equity 31738134.32 1067505.30
instrument investments
Investment income from disposal of wealth 461232.89 32575331.66
management products
Total 658729792.04 266253278.48
Other notes:
None
6. Others
□Applicable √Not applicable
XVIII. Supplementary information
1. Detailed statement of current non-recurring items
√Applicable □Not applicable
Unit: RMB
Item Amount Explanation
383206932.21 It is mainly due to the
profit and loss of equity
disposal of Yiwu China
Profit and loss from the disposal of non-current Commodities City
assets Property Development
Co. Ltd. (CCCP)
Pujiang Green Valley and
Yiwu Gongchen Shangbo
Property Co. Ltd.(Gongchen Shangbo)
Government grants that are recognized in the current 18655980.14 Please see details of
profit and loss excluding government grants that are government grants
closely related to the businesses of the Company and accounted for profit and
are provided in a fixed amount or quantity according loss for the current period
to the unified national standards
124744826.38 Fees paid for using fund
Cash occupation fees charged from non-financial collected from joint
enterprises that are recognized in the current profit ventures including
and loss Gongchen Shangbo and
Tonghui Shangbo
31308053.80 This is mainly due to the
profit of RMB 30.457
Gain arising from investment costs for acquisition of million which is the result
subsidiaries associates and joint ventures by the of re-measurement of the
corporation being less than its share of fair value of remaining equity at fair
identifiable net assets of the investees on acquisition value after the loss of
control right of CCCP and
Pujiang Green Valley
Profit and loss from changes in fair value of -32578800.48 Mainly due to profit and
held-for-trading financial assets derivative financial loss arising from the
assets financial liabilities held for trading and change in fair value of
derivative financial liabilities and investment income financial assets held for
from the disposal of held-for-trading financial assets trading
derivative financial assets financial liabilities held for
trading derivative financial liabilities and other debt
instruments except for effective hedging during the
ordinary course of business
11786857.07 Refers to the income
Profits and losses arising from external entrusted obtained from the
loans issuance of entrusted
loans
Investment income from wealth management 688953.43
products and structured deposits
Net income from other non-operating activities -4107200.75
Effect of income tax -122917029.51
Effect of minority interest -1408133.75
Total 409380438.54
Explanations shall be made for the non-recurring items identified by the Company according the
Explanatory Announcement No. 1 on Information Disclosure by Companies Publicly Offering
Securities – Non-recurring Items and for the Company identifying the non-recurring items
enumerated in the Explanatory Announcement No. 1 on Information Disclosure by Companies
Publicly Offering Securities – Non-recurring Items as recurring items.□Applicable √Not applicable
2. ROE and EPS
√Applicable □Not applicable
EPS
Weighted average
Profits in the reporting period
ROE (%) Basic earnings per Diluted earnings per
share share
Net profits attributable to 6.88 0.17 0.17
common shareholders of the
Company
Net profits attributable to 3.84 0.10 0.09
common shareholders of the
Company after deducting
non-recurring profit and loss
3. Differences in accounting data between foreign and Chinese accounting standards
□Applicable √Not applicable
4. Others
□Applicable √Not applicable
Section XII. Documents for Inspection
The financial statements with signatures and seals of the Legal
Documents for
Representative Financial Director and Head of Finance Department of the
Inspection
company.The original audit report with the seal of Ernst & Young Huaming Certified
Documents for
Public Accountants (Special General Partnership) and the signatures and
Inspection
seals of CPAs Yin Guowei and Yang Zhuye.Documents for
Inspection
Chairman of the Board of Directors: ZHAO Wenge
Date of approving by the Board of Directors for release: April 30 2021
Amendment
□Applicable √Not applicable