小商品城:2021年半年度报告（英文版）

Company Code: 600415 Stock Short Name: 小商品城
Zhejiang China Commodities City Group
Co. Ltd.Important Note
I. The board of directors the board of supervisors directors supervisors and senior
management of the Company guarantee that the contents of the semi-annual report are
true accurate and complete and that there are no false records misleading statements
or major omissions and that they are willing to bear individual and joint legal liabilities for
above statements.II. All directors of the Company were present at the board meeting.III. This semi-annual report has not been audited yet.IV. ZHAO Wenge Head of the Company WANG Dong Head in charge of accounting 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
semi-annual report.V. The profit distribution plan for the reporting period or the plan for public reserve funds
into share capital that was approved by the board of directors
None
VI. Risk statement with forward-looking representations
√Applicable □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 there is circumstance that more than half of the directors cannot guarantee
the authenticity accuracy and completeness of the semi-annual report disclosed by the
Company
NO
X. Reminder of major risksThe Company has described the risks that may exist in this Report in details. Please refer to “(i)Possible Risks” in “Section 3 Discussion and Analysis of Operation” in this report.XI. Others
□Applicable √Not applicable
Table of Contents
Section I. Definitions ...............................5
Section II. Company Profile and Financial Highligh....6
Section III. Discussion and Analysis of Managers ....10
Section IV. Corporate Governance ....................32
Section V. Environmental and Social Responsibiliti...36
Section VI. Significant Matters .....................37
Section VII. Changes in Shares and Shareholders .....47
Section VIII. Preferred Shares ......................54
Section IX. Bonds ...................................55
Section X. Financial Report .........................63
Accounting statements with the signatures and stamps of the person in
charge of the Company person in charge of accounting and person in
charge of the accounting department.Documents for
Resolutions of the 35th Meeting of the 8th Board of Directors resolutions of
Inspection
the 9th Meeting of the 8th Board of Supervisors
Written confirmation opinions of directors supervisors and senior
management on the Company's 2021 Semi-annual Report and Summary
Section I. Definitions
For the purpose of this Report unless otherwise stated in the context the following terms shall 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.CCCH means Yiwu China Commodities City Holdings Limited
Huishang Micro-finance means Yiwu Huishang Micro-finance Co. Ltd.Haicheng Company means Haicheng Yiwu China Commodities City
Investment Development Co. Ltd.Binjiang Shangbo means Hangzhou Binjiang Shangbo Property
Development Co. Ltd.Yiwu Shanglv means Yiwu Shanglv Investment Development Co. Ltd.Chouzhou Financial Lease means Zhejiang Chouzhou Financial Lease Co. Ltd.Yiwu Shangbo means Yiwu Shangbo Property Co. Ltd.Gongchen Shangbo means Yiwu Gongchen Shangbo Property Co. Ltd.Huangyuan Shangbo means Yiwu Huangyuan Shangbo Property Co. Ltd.Meipinshu means Yiwu Meipinshu Supply Chain Management Co.Ltd.Big Data Company means Yiwu China Commodities City Big Data Co. Ltd.Tonghui Shangbo means Yiwu Tonghui Shangbo Real Estate Co. Ltd.Handing Shangbo means Yiwu Handing Shangbo Real Estate Co. Ltd.Chengzhen Property means Yiwu Chengzhen Property Co. Ltd.Digital Port means Yiwu Digital Port Technology Co. Ltd.Redbud Capital means Yiwu Huishang Redbud Capital Management
Co. Ltd.The Company the Listed means Zhejiang China Commodities City Group Co.Company or the Group Ltd.Section II. Company Profile and Financial Highlights
I. Company profile
Chinese name Zhejiang China Commodities City Group Co. Ltd.Chinese short name 小商品城
English name Zhejiang China Commodities City Group Co.Ltd
English short name YIWU CCC
Legal representative ZHAO Wenge
II. Contact information
Board Secretary Securities Affairs Representative
Name XU Hang RAO Yangjin
Address Haiyang Business Building No.105 Haiyang Business Building No.105
Futian Road Yiwu Futian Road Yiwu
Telephone 0579-85182812 0579-85182812
Fax 0579-85197755 0579-85197755
Email Hxu@cccgroup.com.cn Hxu@cccgroup.com.cn
III. Introduction to changes in basic information
Registered address Haiyang Business Building No.105 Futian Road Yiwu
Zhejiang Province
Office address Haiyang Business Building No.105 Futian Road Yiwu
Zhejiang Province
Postal code at the office address 322000
Corporate website www.cccgroup.com.cn
Email 600415@cccgroup.com.cn
Search index for the change during the www.sse.com.cn
reporting period
IV. Changes in information disclosure and filing place
Newspaper selected by the Company for China Securities Journal Shanghai Securities News and
information disclosure Securities Times
Website for publishing the Semi-annual www.sse.com.cn
Report
Place for access to the Company’s Securities Department of the Company
Semil-annual Report
Search index for the change during the www.sse.com.cn
reporting period
V. Stock profile
Type of stock Exchange Stock short name Stock code Stock short name
before change
A share Shanghai Stock 小商品城 600415 None
Exchange
VI. Other relevant information
□Applicable √Not applicable
VII. Main accounting data and financial indicators of the Company
(i) Major accounting data
Unit: RMB
Increase/decrease
during the
Current reporting
reporting period
Major accounting data period Jan-Jun 2020
over the same
(Jan-Jun)
period of the
previous year (%)
Operating income 2072627727.00 2121448794.31 -2.30
Net profits attributable to
850514460.93 719595308.66 18.19
shareholders of the Listed Company
Net profits attributable to
shareholders of the Listed Company 804980899.44 602193801.96 33.67
with non-recurring items excluded
Net cash flow from operating
166735824.75 -703066700.16 Not applicable
activities
Increase/decrease
As of the end of the at the end of the
current reporting As of the end of 2020 reporting period
period over the end of the
previous year (%)
Net assets attributable to
14066655036.17 13558228377.08 3.75
shareholders of the Listed Company
Total assets 29713907698.33 28750127146.86 3.35
(ii) Major financial indictors
Increase/decrease
Jan-Jun during the reporting
Jan-Jun
Major financial indictors 2021 period over the same2020
(Jan-Jun) period of the previous
year (%)
Basic EPS (RMB) 0.16 0.13 23.08
Diluted EPS (RMB) 0.15 0.13 15.38
Basic EPS after deducting non-recurring gains and
0.15 0.11 36.36
losses (RMB/share)
Weighted average ROE (%) 6.09 5.38 Up 0.71 ppt
Weighted average ROE after deducting non-recurring
5.77 4.50 Up1.27 ppt
gains and losses (%)
Illustration on major accounting data and financial indicators
√Applicable □Not applicable
1. The net profit attributable to shareholders of the listed company increased by RMB 131
million over the same period of the previous year mainly due to the increase of RMB 145 million in
investment income over the same period last year.2. The net profit attributable to shareholders of the listed company after deduction of the
non-recurring gains and losses increased by RMB 203 million over the same period of the previous
year. This was mainly due to an increase of RMB 131 million in net profit attributable to shareholders
of the listed company in the same period of the previous year and a decrease of RMB 72 million in
non-recurring gains and losses.3. The net cash flow from operating activities increased by RMB 870 million year-on-year. The
main reasons include that the cash received from selling goods and providing labor services
increased by RMB 496 million year-on-year the cash paid for purchasing goods and receiving labor
services increased by RMB 344 million year-on-year and the deposit of fixed deposits in the same
period last year caused other cash paid related to operating activities decreased by RMB 576 million
year-on-year.VIII. Differences in accounting data between foreign and Chinese accounting standards
□Applicable √Not applicable
IX. Non-recurring items and amounts thereof
√Applicable □Not applicable
Unit: RMB
Non-recurring items Amount Remark (if applicable)
Gain or loss from the -630703.53
disposal of non-current
assets
Government grants that are The main reasons include that the
recognized in the current value-added tax deductible input tax for
profit or loss excluding the taxpayers of production and living
government grants that are services plus 100% was used to deduct
closely related to the normal tax payable for RMB 2.8458 million the
operation of the Company special incentive fund for modern
and are provided in a fixed supply chain system innovation for
amount or quantity 2020 was RMB 2.6827 million the
continuously according to the 8679086.10 opening-up promotion reward from for
2020 was RMB 960700 the subsidy
national polices and certain
for pilot counties in service industry for
standards
2020 was RMB 500000 the interest
subsidy for funding of the construction
of the International Expo Center was
RMB 577400 and the reward for
general trading companies was RMB
336200 and so on.Cash occupation fees
charged from non-financial
Cash occupation fee for receiving
enterprises that are 50288507.85
financial aid
recognized in the current
profit or loss
Gain or loss from changes in
fair value of held-for-trading
financial assets derivative
financial assets financial
liabilities held for trading and
derivative financial liabilities
Mainly changes in the fair value of
and investment income from 1171429.82
held-for-trading assets
the disposal of
held-for-trading financial
assets derivative financial
assets financial liabilities
held for trading derivative
financial liabilities and other
debt instruments except for
effective hedging during the
ordinary course of business
Net income from other Mainly confiscated deposits collected
non-operating activities liquidated damages and other similar
955973.37
items for RMB 1.139 million external
donations for RMB 200000 etc.Effect of minority interest -91655.24
Effect of income tax -14839076.88
Total 45533561.49
X. Others
□Applicable √Not applicable
Section III. Discussion and Analysis of Managers
I. Description of the industry and the Company’s main business 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
Relying on the Company's market resources of 75000 off-line shops Yiwu market official
website “chinagoods” platform (www.chinagoods.com referred to as "chinagoods platform")
provides service for 2 million small medium and micro enterprises in the upper reaches of the
industry chain. With trade data integration as the core driver it meets the needs of both supply and
demand parties in manufacturing display transactions warehousing and logistics financial credit
market management and other links to achieve effective and accurate allocation of market resources
and build a true open and integrated digital trade comprehensive service platform.3. Hotel services
The hotel service business is mainly operated and managed by the Company’s subordinate 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.II. Analysis of core competencies during the reporting period
√Applicable □Not applicable
(i) First-mover advantages
At the start of China’s reform and opening-up Yiwu took the lead in establishing 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 products 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
the postal industry in 2021 that was announced by the State Post Bureau the express business
volume of Jinhua (Yiwu) ranked first in the country for the first half of 2021.2. Industry support
During the recent years thanks to the Yiwu China Commodities City the Yiwu-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 for 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 national
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.(vi) Advantage of online and offline platform integration
The Company’s international trade city is the global leading commodity market. The Company’s
official Yiwu CCC website chinagoods platform relying on the Company’s 75000 off-line shops
through integration of online and offline services serves 2 million small medium and micro
enterprises in the upper reaches of the industry chain. With trade data integration as the core driver
it meets the needs of both supply and demand parties in manufacturing display transactions
warehousing and logistics financial credit market management and other links.(vii) Advantage of international logistics
The Company's Global Yida international logistics business establishes a logistics platform to
replace the multi-layer freight forwarder system thus shortening the level of freight forwarder
distribution and improving logistics efficiency. In contrast the traditional foreign trade freight
forwarders are divided into multiple levels the logistics and transportation services are not
standardized and the service prices vary widely and are usually not the lowest price.(viii) Advantage of data integration
Based on the logistics platform data the Company has built a domestic warehousing and
construction platform chinagoods integrated logistics and freight forwarding services and
constructed overseas warehouses. At the same time with lower debt financing costs the Company
has formed the integration of logistics information flow and capital flow for the export trades of
merchants of YIWU CCC merchants to develop supply chain finance and provide merchants in the
market with supply chain financial services at lower loan interest rates.III. Discussion and analysis of operation status
(i) Market operation
2021 is the first year of the "14th Five-Year Plan" period the 100th anniversary of the founding of
the Communist Party of China and the 15th anniversary of learning and promoting the "Yiwu’s
Experience in Development". On the afternoon of June 28 the National "Outstanding Party WorkersOutstanding Party Members and Advanced Grassroots Party Organizations” commendation
meeting was held in the Great Hall of the People in Beijing. The Central Committee of the
Communist Party of China awarded the Group’s party committee the title of "National Advanced
Grassroots Party Organization" to encourage all employees of the Company to strive for the first
place make contributions and give full play to the role of pioneer and battle fortress.During the reporting period the Company focused on digital empowerment domestic and
international trade chain expansion and institutional innovation to improve the quality of goods to
serve businessmen to empower enterprises to improve the efficiency of management and
constantly promote the prosperity of the market. During January - June the market turnover reached
RMB 96.44 billion a year-on-year increase of 48.5%. The occupancy rate of business spaces
remained above 97% with steady and positive market operation the Company has further
consolidated its leading advantage in the commodity market has been further consolidated.
(1) Intelligent upgrading of epidemic prevention and control: Based on the precision intelligent
control system of "standardization access system prohibitions inspection system and information"
promote the construction of intelligent bayonet for epidemic prevention and control so that people of
the market can enter and leave "without feeling".
(2) Continues to accelerate market transformation and the four major actions of design
standards live broadcasting and "entering the market" for college students are continuously
implemented to build the core market competitiveness with innovation design brand quality and
standards as the main contents. During the reporting period the Company successfully docked with
35 colleges and universities organized 400 design talents to introduce more than 4000 new products
and completed the “CCC Cup” design competition; conducted the standard publicity thorough the
whole market and docked with Yiwu Standard Research Institute to conduct 43 merchant standard
training sessions that trained more than 5500 merchants; organized 418 merchants to carry out
cross-border live broadcasts completed cross-border trade matching meetings such as the Hainan
Consumer Fair and the West China Fair; completed the docking with 50 domestic universities such as
Zhejiang University and Zhejiang Sci-Tech University and inspected 660 sinking channel layout
points. During the reporting period the number of merchants launching new products every month in
the market accounted for 51.6% 24 major industries have achieved operations under express
standard more than 40000 merchants have carried out live broadcast training and the proportion of
merchants with a college degree or above reached 26.4 % of total.
(3) Expanded service network for domestic trade The Company has established domestic trade
expansion investment promotion liaison offices in 8 provinces across the country set up 10
investment promotion teams completed 203 visits to the comprehensive pilot areas and trade
markets accurately docked with 484 enterprises and business associations and signed cooperation
contracts with 10 secondary markets in Dongguan Kashgar and some other places and increased
the number of members of the domestic professional market alliances to 25.
(4) Exploration and innovation of trade exhibition mode The Company has held seven docking
activities such as 10000 mile market tour and 10000 mile market tour for Yiwu goods in Chongqing
Hainan and some other places. During the Fifth China Yiwu Hardware & Electrical Appliance Expo
for the first time the Company has completely achieved the digitization of the procurement
verification and settlement process and introduced the team living broadcasting. There were nearly
260000 visits to the online live broadcasting. The Company also held a special matchmaking
meeting for online and offline overseas procurement simultaneously so as to achieve the intended
transaction amount of more than RMB 10 million. The Company has successfully held the Benin
(West Africa) International Online Exhibition and completed more than 60 precise negotiations.
(5) The Digital Comprehensive Bonded Zone has successfully passed the pre-acceptance and
the investment attraction for the 85% of the completed area in the first phase has been completed;
the Company has started the construction of a new important market and completed the main
structure of the first phase and attracted 700 merchants; for the market in the sixth zone of the
International Trade City the first phase is expected to be started by the end of this year.(ii) Promote trade digitalization
Build a digital market: With information means collect market operation data to build a human
product field digital portrait system. According to the portrait reconstruction trade scene design
application products provide procurement full process full cycle of operation operation and
maintenance of a full range of digital services comprehensively improve the ability and level of
market enabling trade.During the reporting period the Company optimized the digital functions and applications of the
chinagoods platform for display transactions logistics performance trade finance overseas
interconnection and some other fields in depth. The big data company (the operator of the
chinagoods platform) has realized a profit of RMB 7.7391 million in the first half of 2021. The
platform has achieved profitability after it has officially launched for 8 months. By the end of the
reporting period the number of front-end shops on the platform was 59000 the cumulative number
of SKUs on the shelves exceeded 3 million the number of registered purchasers reached over
969500 the average daily number of the IP visits reached nearly 65000 and the platform GMV had
reached RMB 6.8 billion; digital trading cockpit 2.0 had completed the first phase of development
and online testing; the digital logistics module has realized one-stop digital logistics service functions
such as short-distance transfer express delivery and international logistics; the payment settlement
module in cooperation with Lianlian Payment had achieved multiple payment channels such as
online banking payment cloud quick payment and quick payment; more than 40000 merchants had
opened payment functions and actively obtained third-party payment licenses; 31395 Guokuanbao
users (including 80 foreign trade companies) had obtained credit lines of more than RMB 55.1 billion
in total; digital warehousing module and large warehousing management system have been put into
use Global Yida Industrial Park Houzhai Small and Micro Storage Park and 3 overseas
warehouses in Canada Spain and Malaysia; the Company has built a full-link supply chain
intermediary platform to accurately dock channel resources provide one-drop shipping service and
solve the difficulty of living broadcasting organizations in selecting products. Currently there are 60
suppliers settled in the platform with more than 3000 SKUs on the shelves.The Company is actively deploying four licenses of payment factoring credit investigation and
small-sum loans to build a complete import and export trade service performance system and
promote the digital upgrade of market procurement trade. On the one hand it has effectively
improved the financial service capabilities for business users and on the other hand it has formed a
closed-loop ecosystem of capital flow and information flow on the chinagoods platform. With
payment services as the flow entrance supported by the precipitation of real trade and logistics data
across the entire link it is to build corporate credit reporting service capabilities and then develop
factoring business to enhance platform profitability solve the pain points of the industry and keep
boosting the prosperity of the market.The Company has made full efforts to promote the construction of data center accelerate the
development of digital tools such as Guanjiabao and accelerate the manifestation of trade data. The
Company has built a database carried out the collection of basic market data Yixinbu data
chinagoods platform data exhibition data hotel data and company system docking and completed
the establishment of the labeling system of merchants in the six major sectors including merchant
basic information operation evaluation credit service and property.The overall business framework of chinagoods:
Integration of online and offline and linkage of domestic and foreign trades to create a digital
free trade hub.(iii) Industry pattern and trend and future development of the Company
The Company will focus on the market procurement trade track build a contract performance
system serving the global mass trade and fragmented trade and form an infrastructure network with
Yiwu as the center and connecting the whole world.Contract fulfillment flowchart of chinagoods and Global Yida platforms
The market procurement trade method (Customs Code 1039) refers to a trade method aiming
market with multiple variety small batch and multiple transactions in which qualified operators
purchase in the recognized market agglomeration area the value of a single-ticket declaration does
not exceed USD 150000 and the customs clearance procedures for export commodities are
handled at the designated port. For goods exported through market procurement trade the
preferential policy of VAT exemption and refund shall be implemented; Customs declaration by
category to facilitate customs clearance measures; The supply merchants without import and
export right are allowed to collect and settle foreign exchange directly.The market procurement trade mode has the characteristics of flexible and diverse participants
low transaction cost common trade consolidation cabinets and integration of domestic trade and
foreign trade. In 2020 in the market procurement trade the size was RMB 706 billion nationwide
and RMB 305.6 billion in Yiwu area. It is expected that the size of the national market procurement
trade will exceed RMB 1 trillion in 2021.Currently the market procurement trade faces some problems such as continuous rising
storage costs unsatisfactory warehousing needs high financial pressure on operating entities weak
bargaining power with shipping companies and other actual carriers unguaranteed positions high
spot advance costs few financing channels and difficulty in fund recovery and exchange settlement.In this context the Company has established the chinagoods platform and the Global Yida logistics
and trade platform to face the global mass trade and fragmented trade. Especially using the 1039
market procurement trade method it matched the demands of supply and demand parties in the
production manufacturing display and trade warehousing and logistics financing loans market
management and some other links to achieve the effective and precise allocation of market
resources provide digital cross-border logistics solutions payment guarantee solutions and
gradually realize online consolidation online order and payment and online Financing online
booking and full link visualization form a logistics price comparison mechanism in order to provide
trading entities with more convenient efficient and low-cost integrated services and make trade
easier.Major changes in the Company's business conditions during the reporting period
and events occurring during the reporting period that have a major impact on the
Company's business conditions and are expected to have a major impact in the
future
□Applicable √Not applicable
IV. Operating status during the reporting period
(i) Analysis of main business
1 Analysis of the changes to the items in the financial statement
Unit: RMB10000
Item Current reporting
Reporting period
period of Jan-Jun YoY change (%)
of Jan-Jun 20202021
Operating income 207262.77 212144.88 -2.30
Cost of sales 92541.06 86922.76 6.46
Selling expenses 7404.29 8788.71 -15.75
General and administrative
16669.89 13045.09 27.79
expenses
Financial expenses 4735.10 9127.19 -48.12
R&D expenses 456.91 1708.12 -73.25
Net cash flow from operating
16673.58 -70306.67 Not applicable
activities
Net cash flow from investing
-3616.21 61702.57 -105.86
activities
Net cash flow from financing
-20435.12 13001.06 -257.18
activities
Reasons for the change to financial expenses: mainly due to decreased interest expenses
in the reporting period year over year.Reasons for the change to R&D expenses: mainly due to decreased spending on R&D in
the reporting period year over year.Reasons for changes in net cash flow from operating activities: Mainly because the cash
received from selling goods and providing labor services increased by RMB 496 million
year-on-year and the cash paid for purchasing goods and accepting labor services increased
by RMB 344 million year-on-year and some items such as fixed deposits in the same period
last year for RMB 500 million led to a year-on-year decrease of other cash paid related to
operating activities for RMB 576 million.Reasons for changes in net cash flow from investment activities: Mainly because the
received investment income and the net cash flow related to long-term assets and others
increased by RMB 253 million year-on-year and some reasons such as payment of RMB 1.225
billion for the capital increase of CCCP led to year-on-year growth of net cash flow paid for
investment for RMB 491 million and the year-on -year drop of net cash of financial aids for RMB
417 million.Reasons for changes in net cash flow from financing activities: Mainly because the net
inflow of financing during the current period decreased by RMB 99 million year on year and
cash paid for dividends and interest payments increased by RMB 241 million year-on-year
increase.2 Details of material changes to the business types the components or sources of
profits of the Company in this reporting period
√Applicable □Not applicable
Unit: RMB Yuan
Percentage
Item January-June 2021 January-June 2020 YoY change
change ±%
Market 1119528495.20 1009159906.85 110368588.35 10.94
operation
Sales of -19667101.32 -5694034.94 -13973066.38 Not
goods applicable
Real estate - -5656548.46 5656548.46 Not
sales applicable
Hotel -15043356.54 -21014757.95 5971401.41 Not
service applicable
Exhibition -17830866.21 -23032242.66 5201376.45 Not
and applicable
advertising
Other -7166013.33 39266533.26 -46432546.59 -118.25
businesses
Profits 1059821157.80 993028856.10 66792301.70 6.73
before tax
1. The operating profit from the market increased by RMB 110 million year-on-year mainly due
to the year-on-year increase in investment income calculated under the equity method in the
statements of CCCP.2. The profit of other businesses decreased by RMB 46 million year-on-year mainly due to the
decrease in the income from the fair value change of the new financial instruments standards
implemented by the CCCF.(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
Percentage of
Percentage
difference
of the
between the
% of total Amount at closing
Amount at closing
assets at the the end of balance of
the end of balance of the
Project end of the the same the Reasons for change
the current current period
current period of previous
period and the closing
period 2020 year to the
balance of the
total assets
previous year
(%)
(%)
Monetary capital 301963.54 10.16 561264.29 19.52 -46.20
Held-for-trading
5756.80 0.19 5171.27 0.18 11.32
financial assets
Receivables 13960.36 0.47 15357.35 0.53 -9.10
Mainly due to the
growth of the product
Advance from
59638.27 2.01 10518.75 0.37 466.97 sales and the
customers
increase in advance
payment
Other receivables 307248.68 10.34 270847.81 9.42 13.44
Inventories 139719.26 4.70 132946.77 4.62 5.09
Other current
23709.17 0.80 17972.47 0.63 31.92
assets
Mainly due to the
increase in the
Long-term financial aid
18609.47 0.63 12675.66 0.44 46.81
receivables receivable from
Dubai Project
Company
Mainly due to the
Long-term equity
528451.99 17.78 383289.75 13.33 37.87 increase in capital of
investment
CCCP
Other equity 58825.42 1.98 66225.63 2.30 -11.17
instruments
investment
Other non-current
156552.35 5.27 152392.53 5.30 2.73
financial assets
Investment real
191412.53 6.44 196042.63 6.82 -2.36
estate
Property plant
504324.53 16.97 523429.38 18.21 -3.65
and equipment
Mainly due to the
payment for
Construction in construction projects
201159.72 6.77 98289.19 3.42 104.66
progress such as
comprehensive
protection zones
Presented for the
Right-of-use adjustment under the
17980.43 0.61 - - Not applicable
assets new standard for
lease
Intangible assets 398931.80 13.43 390078.10 13.57 2.27
Development Mainly due to the
3645.63 0.12 2222.31 0.08 64.05
expenditures payment for R&D fee
Long-term
deferred 8847.97 0.30 11072.87 0.39 -20.09
expenses
Deferred tax
8591.30 0.29 9966.43 0.35 -13.80
assets
Mainly due to the
Other non-current payment for equity
22061.54 0.74 15249.52 0.53 44.67
assets transfer in the current
period
Short-term loans 123489.05 4.16 125717.94 4.37 -1.77
Accounts payable 80740.11 2.72 63646.38 2.21 26.86
Advances from
10818.54 0.36 11275.29 0.39 -4.05
customers
Contract liabilities 252559.87 8.50 244221.18 8.49 3.41
Mainly due to the
Employee
payment for accrued
compensations 5211.97 0.18 16149.90 0.56 -67.73
year-end benefits in
payable2020
Mainly due to the
Taxes payable 23206.16 0.78 49540.05 1.72 -53.16 payment for taxes
and fees accrued
Other payables 177577.27 5.98 164634.56 5.73 7.86
Non-current
Presented corporate
liabilities due 203184.92 6.84 131502.66 4.57 54.51
debts due in one year
within one year
Other current
306178.55 10.30 302360.80 10.52 1.26
liabilities
Mainly added
long-term borrowings
Long- term loans 60400.00 2.03 28200.00 0.98 114.18
due during the
current period
Removed corporate
Bonds payable 278607.64 9.38 355216.17 12.36 -21.57
debts due in one year
Presented for the
adjustment under the
Lease liabilities 17587.80 0.59 - - Not applicable
new standard for
lease
Estimated 11062.03 0.37 11062.03 0.38 -
liabilities
Deferred incomes 2583.45 0.09 2654.53 0.09 -2.68
Deferred income
9583.33 0.32 11360.29 0.40 -15.64
tax liabilities
Other descriptions
None
2. Overseas assets
□Applicable √Not applicable
3. Encumbrances on major assets as of the end of the reporting period
√Applicable □Not applicable
Unit: RMB
Item End of June 2021 End of year 2020
Monetary capital 60.68 60.58
Long-term equity investment 102918559.00 102918559.00
Other non-current financial 617511352.00 617511352.00
assets
Total 720429971.68 720429971.58
1. On June 30 2021 bank deposits with a book value of RMB 60.68 (December 31 2020: RMB
60.58) were restricted for ownership or use rights due to being as security deposits for obtaining
commercial housing mortgage loan.2. As of June 30 2021 long-term equity investments with a book value of RMB 102918559.00
(December 31 2020: RMB 102918559.00) and other non-current assets of RMB 617511352.00
(December 31 2020: RMB 617511352.00) were frozen by Shanghai Municipal Public Security
Bureau.4. Other descriptions
□Applicable √Not applicable
(iv) Analysis of investments
1. Overview of external equity investment
√Applicable □Not applicable
At the end of June 2021 the foreign investment amount was RMB 7495865600 (including
trading financial assets of RMB 57568000 investment in other equity instruments of RMB
588254200 other non-current financial assets of RMB 1565523500 and long-term equity
investment of RMB 5284519900) an increase of 23.47% compared with RMB 6070791800 at
the end of the previous year (including trading financial assets 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) an increase of RMB
1425073800. The main changes are as follows:
1. Long-term equity investment during the reporting period increased by RMB
1451622400 year-on-year mainly because:
1. During the reporting period the new long-term equity investment was RMB 1299192100
including RMB 1.225 billion for Yiwu China Commodities City Property Development Co. Ltd. RMB
30 million for Yiwu Huishang Redbud Phase II Investment Partnership (LLP) RMB 24.2671 million
for JEBEL ALI FREE ZONE TRADER MARKET DEVELOPMENT AND OPERATION FZCO RMB
17.85 million for Yiwu Digital Port Technology Co. Ltd. RMB 1.075 million for Zhejiang Yixinou
Supply Chain Management Co. Ltd. and RMB 1 million for Quanzhou Huayun Tiancheng
E-commerce Co. Ltd.2. The net investment income accrued under the long-term equity investment equity method
was RMB 263789000 the dividend distributed by Binjiang Shangbo distributed was RMB 98 million
and others were RMB -13.3585 million.2. During the reporting period the investment in other equity instruments decreased by
RMB 74.0021 million year-on-year which was the gains and losses for changes in fair value of
Shenwan Hongyuan Group Co. Ltd. during the reporting period for RMB 74.0021 million.3. During the reporting period the trading financial assets increased by RMB 5.8553 million
year-on-year including an increase of RMB 8.50 million for purchase of bank financing
products the gains and losses for changes in fair value of Orient International Ventures Co. Ltd.during the reporting period were RMB -2.6401 million and an decrease of RMB 4600 due to
selling of subscribed new stocks.4. During the reporting period other non-current financial assets increased by RMB
41.5982 million year-on-year including: an increase of RMB 40 million for Suzhou Xiangzhong
Venture Capital Partnership (LLP) an increase of RMB 2.1704 million for investment recovery
by Suzhou Yiyun Venture Capital Center (LLP) and increase of RMB 3.7686 million for the
gains and losses for changes in fair value.The main investment is as follows:
Unit: RMB10000
Book
value at Shareholding
Target Main business Cost of investment
the end of ratio (%)
June 2021
Industry investment investment management
(excluding financial businesses such as securities
and futures) property service design production
Yiwu Shanglv
and agency of domestic advertising operation and
Investment 39200.00 37861.99 49.00
management of parking garages marketing
Development Co. Ltd.planning operation and management consulting
operation and management of shopping malls and
business management consulting
Real estate development and operation
Yiwu Rongshang
landscape engineering and decoration 5000.00 2091.13 49.00
Property Co. Ltd.engineering
Real estate development and sale; lease of
Yiwu Chuangcheng proprietary houses; real estate brokerage service;
2000.00 874.51 24.00
Property Co. Ltd. interior decoration service; and landscaping
service
Hangzhou Binjiang Real estate development and operation 2450.00 7692.51 49.00
Shangbo Property
Development Co. Ltd.Micro-loans in Yiwu and consulting services in
Yiwu Huishang
connection with the development management 12420.00 6961.25 23.00
Micro-finance Co. Ltd.and finance for small-sized enterprises
Financial lease service; transfer of financial lease
assets; fixed-income securities investment;
acceptance of lessees’ lease margin; absorption of
Zhejiang Chouzhou
time deposit with a term no shorter than three
Financial Lease Co. 26000.00 40077.88 26.00
months from non-bank shareholders;
Ltd.inter-financial institutional 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 such as the finance regulatory
Yiwu Huishang
authority the Company warrants that it will not be
Redbud Equity 5000.00 8639.35 10.42
engaged in the absorption of deposits financial
Investment Co. Ltd.guarantee agency wealth 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
Yiwu Huishang business scope excludes financial businesses
Redbud Phase II such as securities and futures; and without
Investment approval of the industry regulatory authorities such 8000.00 7830.57 9.43
Partnership (limited as the finance regulatory authority the Company
partnership) shall not be engaged in the absorption of deposits
financial guarantee agency wealth management
fundraising (financing) from the public and other
financial businesses)
Yiwu Meipinshu Supply chain management service software
Supply Chain development and business management 1820.14 1705.24 20.57
Management Co. Ltd. consulting
Services: technology development technical
consulting technical services and
Hangzhou achievements transfer of computer hardware
1275.00 573.95 49.04
MicroAnts Co. Ltd. and software and network information
technologies and webpage design; wholesale
and retail: computer software
Investment management equity investment asset
management and investment consulting (without
Yiwu Hongyi Equity approval of the industry regulatory authorities such
Investment Fund as the finance regulatory authority the Company
69000.00 69305.39 49.98
Partnership (limited shall not be engaged in the absorption of deposits
partnership) financial guarantee agency wealth management
fundraising (financing) from the public and other
financial businesses)
Securities brokerage securities investment
Shenwan Hongyuan
consulting and securities underwriting & 55362.54 58825.42 0.501
Group Co. Ltd.sponsorship
Beijing Yiyun Clean
Venture capital agency of other VC institutions or
Technology Venture 1891.82 360.00 15.00
individuals’ VC business
Capital Co. Ltd.Shenzhen Tiantu
PE investment management in the consumer
Investment 11438.62 5284.64 1.536
goods industry
Management Co. Ltd.Beijing Redbud Asset management investment management and
10000.00 17557.86 12.36
Huarong Equity investment consulting
Investment
Partnership
Granting of personal consumption loans;
acceptance of deposits from shareholders’
domestic subsidiaries and domestic shareholders;
lending to domestic financial institutions; issuance
Mashang Consumer
of financial bonds upon approval; inter-financial 3000.00 5167.50 0.75
Finance Co. Ltd.institution lending in China; consumption
finance-related consulting; agency sale of
insurance products related to consumption loans;
and fixed-income securities investment
Industry investment venture capital investment
management business management social and
economic consulting. (Operating activities subject
Jiaxing Zhehua
to approval in accordance with laws shall only be
Redbud Investment
conducted after approval from related authority) [it 8873.08 12016.76 17.51
Partnership (limited
shall not be engaged in the absorption of deposits
partnership)
financial guarantee agency wealth management
fundraising (financing) from the public and other
financial businesses]
Nantong Redbud
Huatong Equity
Equity investment; investment consulting; and
Investment 20000.00 25484.32 21.05
investment management
Partnership (limited
partnership)
Yiwu Shangfu
Chuangzhi Investment Asset management investment management and
61751.14 61751.14 74.99
Center (limited investment consulting service
partnership)
Yiwu Shanfeng
Investment Investment management asset management and
2600.00 2600.00 56.40
Partnership (limited investment consulting
partnership)
Network information technology service; computer
system integration service; development and
technical service of computer hardware and
software; wholesale agency purchase and agency
sale of maternal and infant products; online
operation of electronic products and components
Fujian Zongteng
and accessories thereof household supplies and 3000.00 4128.54 0.6863
Network Co. Ltd.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" and processing of imported
Oriental International materials development production and sales of
Entrepreneurship Co. biological pharmaceutical and chemical products 5000.00 4906.60 0.72
Ltd. international freight forwarding agent industrial
and high-tech industry investment counter trade
transit trade and service trade sales: clothing and
apparel shoes and hats knitwear leather
products luggage and bags daily necessities; the
second-category medical devices sales.Yiwu Guoshen Real estate development sale and lease; real
Shangbo Property estate brokerage service interior decoration 2000.00 - 49.00
Co. Ltd. service; and landscaping service
Communication equipment repair; communication
equipment sales; communication equipment
manufacturing; computer and communication
equipment leasing; information technology
equipment sales; computer software and
hardware and auxiliary equipment wholesale;
computer software and hardware and auxiliary
equipment retail; information consulting services
(excluding licensing information consulting
services) ; socio-economic consulting services;
Yiwu Digital Port advertising design agency; advertising
2550.00 2435.96 51.00
Technology Co. Ltd. production; advertising publishing (excluding
channels such as radio television newspaper
publishing units); technical services technology
development technology consulting technology
exchange technology transfer technology
promotion; software development; sales of
chemical product (excluding licensed chemical
products); business agent services; general goods
warehousing services (excluding hazardous
chemicals and other items that require license
approval)
Yiwu China Real estate development sales leasing (used
Commodities City together with valid qualification certificates) real
271854.77 276508.58 49.00
Property Development estate brokerage services interior decoration;
Co. Ltd. landscaping
Pujiang Lvgu Property Real estate development sales leasing and
37365.79 49744.46 49.00
Co. Ltd. property management
Yiwu Shanyue Equity
Equity investment; equity investment fund
Investment
management investment consulting and 2000.00 2000.00 39.60
Partnership (limited
operation and management of state-owned assets
partnership)
Jebel Ali Free Zone
Lease and management of proprietary properties;
Trader Market
and lease and management of the properties 5144.20 4615.02 30.00
Development and
owned by others
Operation FZCO
Suzhou Xiangzhong
Venture Capital Venture capital (limited to investment in unlisted
4000.00 4000.00 8.00
Partnership (Limited enterprises); Equity investment
Partnership)
(1) Major equity investments
√Applicable □Not applicable
Percentage
in total
Actual
equity in
investment
the
amount
invested
Target Main business during the Remarks
project as
reporting
of the end
period
of the
(RMB10000)
reporting
period (%)
The
Suzhou subscribed
Xiangzhong capital
Venture contribution
Venture capital (limited to investment in unlisted
Capital 4000.00 8.00 was RMB
enterprises); Equity investment
Partnership 200 million
(Limited and as of
Partnership) the end of
the reporting
period RMB
40 million
has been
paid.
(2) Major non-equity investments
√Applicable □Not applicable
Unit:
RMB10000
Investment
Project amount in Accumulative
Project Progress
amount current invested amount
period
The office building has been
West Yiwu
delivered 95% of the hotel
International Means of
133916.00 decoration has been completed 6889.14 102997.62
Production Market
and the underground space has
Auxiliary Project
been completed
Haicheng Yiwu China
Commodities City The main work is under
180000.00 - 3229.05
Commerce Phase I construction
Project—Hotel Project
The upper span bridge and the
fence have passed the final
Phase I Project of Yiwu
acceptance; the first bid section
Integrated Free Trade 624250.00 69861.91 120441.14
has been completed and 95% of
Zone
the second bid section has been
completed for warehousing work.East Parking Building
Completion of civil air defense
Project of Zone 2 of
60706.00 foundation acceptance the first 13861.58 22534.87
Yiwu International
floor pouring completed
Trade City
The renovation of the facade has
Yiwu Yindu Hotel been completed and 50% of the
25000.00 6922.48 12477.85
renovation project interior decoration has been
completed
Global Digital Free Site leveling completed project
598124.00 1577.29 1577.29
Trade Center Project design phase
(3) Financial assets measured with fair value
√Applicable □Not applicable
Unit:
RMB10000
Gains
or
Initial losses
Opening Closing Accounting Source of
Name investment during
book value book value item funds
cost the
reportin
g period
Held-for-tradi
Hunan Hualing Cable Co. Self-owned
0.20 - 0.20 - ng financial
LTD funds
assets
Held-for-tradi
Wealth management products Self-owned
850.00 - 850.00 - ng financial
of Industrial Bank funds
assets
Held-for-tradi
Oriental International Self-owned
5000.00 5170.61 4906.60 -264.01 ng financial
Entrepreneurship Co. Ltd. funds
assets
Other equity
Shenyin & Wanguo Securities Self-owned
55362.54 66225.63 58825.42 - instruments
Co. Ltd. funds
investment
Other
Jiaxing Zhehua Redbud
non-current Self-owned
Investment Partnership 10000.00 12016.76 12016.76 -
financial funds
(limited partnership)
assets
Other
Beijing Redbud Huarong non-current Self-owned
10000.00 17557.86 17557.86 -
Equity Investment Co. Ltd. financial funds
assets
Other
Nantong Redbud Huatong
non-current Self-owned
Equity Investment Partnership 20000.00 25484.32 25484.32 -
financial funds
(limited partnership)
assets
Other
Beijing Wudaokou Education non-current Self-owned
500.00 61.64 61.64 -
Technology Co. Ltd. financial funds
assets
Other
Zhejiang Yiwu Tap Water Co. non-current Self-owned
100.00 2320.60 2320.60 -
Ltd. financial funds
assets
Other
Yiwu Water Resources non-current Self-owned
200.00 1510.00 1510.00 -
Development Co. Ltd. financial funds
assets
Other
Suzhou Yiyun Venture Capital non-current Self-owned
4000.00 12351.95 12039.35 -95.54
Center (limited partnership) financial funds
assets
Other
Beijing Yiyun Clean
non-current Self-owned
Technology Venture Capital 6091.82 360.00 360.00 -
financial funds
Co. Ltd.assets
Other
Mashang Consumer Finance non-current Self-owned
3000.00 5167.50 5167.50 -
Co. Ltd. financial funds
assets
Other
Shenzhen Tiantu Investment non-current Self-owned
11802.00 4812.23 5284.64 472.41
Management Co. Ltd. financial funds
assets
Other
Yiwu Shanfeng Investment
non-current Self-owned
Partnership (limited 2600.00 2600.00 2600.00 -
financial funds
partnership)
assets
Other
Cheng Jian Bao (Beijing) non-current Self-owned
150.00 150.00 150.00 -
Consulting Services Co. Ltd. financial funds
assets
Other
Yiwu Shanyue Equity
non-current Self-owned
Investment Partnership 2000.00 2000.00 2000.00 -
financial funds
(limited partnership)
assets
Other
non-current Self-owned
Yiwu Smart Transport Co. Ltd. 120.00 120.00 120.00 -
financial funds
assets
Other
Fujian Zongteng Network Co. Self-owned
3000.00 4128.54 4128.54 - non-current
Ltd. funds
financial
assets
Other
Yiwu Shangfu Chuangzhi
non-current Self-owned
Investment Center (limited 61751.14 61751.14 61751.14 -
financial funds
partnership)
assets
Other
Suzhou Xiangzhong Venture
non-current Self-owned
Capital Partnership (Limited 4000.00 0.00 4000.00 -
financial funds
Partnership)
assets
(v) Sale of major assets and equity
□Applicable √Not applicable
(vi) Analysis of major subsidiaries and associates
√Applicable □Not applicable
Unit:
RMB10000
Registere Net
Company name Business Total assets Net profit
d capital assets
Industry investment investment
management property service
market development and
Haicheng Yiwu China
operation market auxiliary service
Commodities City
real estate development sale and 60000.00 229923.99 -78496.50 -7128.38
Investment
lease design production and
Development Co. Ltd.agency of domestic advertising
and operation and management of
parking garages
Yiwu Shangbo Property
Real estate development and sale 30000.00 37835.38 33897.66 -965.24
Co. Ltd.Yiwu Commodities City
Gonglian Property Co. Real estate development and sale 20000.00 15919.94 15784.42 -53.43
Ltd.Yiwu China
Commodities City R&D of computer and multimedia
20000.00 23149.24 19897.46 -67.25
Information Technology software
Co. Ltd.Computer software multimedia
Zhejiang Yiwugou technologies computer network
10000.00 12003.04 9350.33 553.52
E-commerce Co. Ltd. and application and wholesale &
retail
Yiwu China
Commodities City R&D of computer and multimedia
15000.00 12112.51 12106.53 -174.08
Payment Network software
Technology Co. Ltd.Yiwu China
Commodities City Ordinary cargo transport and
10000.00 2646.68 2268.63 -203.35
Logistics and goods warehousing
Warehousing Co. Ltd.Yiwu China
Commodities City
Supply chain management service 10000.00 26475.80 -3491.41 -1005.11
Supply Chain
Management Co. Ltd.Yiwu China
Commodities City Domestic trade and international
10000.00 60105.36 3632.38 -1334.62
Import and Export Co. trade
Ltd.Yiwu China Enterprise free capital investment
Commodities City asset management investment
400000.00 227736.24 214087.52 451.66
Financial Holdings Co. consulting services investment
Ltd. management services
Development of tourism resources
and tourism projects; domestic
Yiwu China tourism business inbound tourism
Commodities City business; tourism information
10000.00 13431.97 8830.21 -136.48
Tourism Development consulting; and wholesale of fruits
Co. Ltd. vegetables aquatic products and
primary edible agricultural
products
Yiwu China
Commodities City Overseas industry investment and
Overseas Investment construction and operation of 10000.00 18303.76 8827.48 -218.66
and Development Co. overseas shopping malls
Ltd.Industry investment investment
management property service
operation and management of
Yiwu Shanglv
parking garages business
Investment 80000.00 151151.73 80556.75 2561.80
marketing planning operation and
Development Co. Ltd.management consulting and
operation and management of
shopping malls
Yiwu China
Commodities City
Real estate development and sale 500000.00 1233151.57 573911.24 15476.32
Property Development
Co. Ltd.Pujiang Lvgu Property
Real estate development and sale 70000.00 111538.42 99501.23 23941.44
Co. Ltd.Industry investment investment
Zhejiang Huajie management investment
Investment and consulting business information 50000.00 8255.84 8232.32 -116.22
Development Co. Ltd. consulting and asset
management services
Internet data services;
professional design services;
Yiwu China intelligent control system
Commodities City Big integration; computer information 10000.00 26700.63 9964.73 773.91
Data Co. Ltd. technology development technical
consulting technical services
technology transfer etc.Property management;
low-temperature storage; general
Yiwu Comprehensive goods warehousing services
Bonded Zone (excluding hazardous chemicals
10000.00 800.24 719.90 -234.65
Operation and and other items that require
Management Co. Ltd. license approval); information
consulting services; warehousing
equipment rental services etc.Container handling; land
BETTER SILK ROAD transport-related services; and
RF27000 105.16 -90.05 -57.61
RWANDA Ltd land transport supporting
activities-related business
Hangzhou Binjiang
Shangbo Property Real estate development and sale 5000.00 20006.38 17355.53 4234.21
Development Co. Ltd.Yiwu Rongshang
Real estate development and sale 10204.08 704240.31 4267.62 -287.30
Property Co. Ltd.Yiwu Huishang
Micro loans 54000.00 30852.35 30406.45 -775.69
Micro-finance Co. Ltd.Zhejiang Chouzhou
Financial lease service and
Financial Lease Co. 100000.00 1273630.22 154096.56 11330.05
transfer of financial lease assets
Ltd.Yiwu Huishang Redbud
Equity investment and related
Equity Investment Co. 49000.00 92492.18 82937.72 2708.56
consulting services
Ltd.Yiwu Huishang Redbud
Phase II Investment Investment management and
106100.00 84834.24 82832.39 25.91
Partnership (limited asset management
partnership)
Yiwu Hongyi Equity
Investment management equity
Investment Fund
investment asset management 200100.00 138714.32 138680.08 682.67
Partnership (limited
and investment consulting
partnership)
Jebel Ali Free Zone Lease and management of
Trader Market proprietary properties; and lease AED
47881.05 8747.04 -53.00
Development and and management of the properties 16800.00
Operation FZCO owned by others
Real estate development sale and
Yiwu Guoshen
lease; real estate brokerage
Shangbo Property Co. 408163.00 1411326.20 -5598.92 -3099.62
service interior decoration service;
Ltd.and landscaping service
(vii) Structured entities controlled by the Company
□Applicable √Not applicable
V. Other disclosure matters
(i) Potential risks
√Applicable □Not applicable
1. Market operation risk
Large-sized shopping malls hypermarkets warehouse stores and e-commerce platforms 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 platforms 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 operations 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 spread of the 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.(ii) Other disclosure matters
□Applicable √Not applicable
Section IV. Corporate Governance
I. Shareholders’ meetings
Designated
Date of
Session of website on which Resolution of the
Date disclosure of the
meeting the resolution is meeting
resolution
published
Resolution of the
The first
first provisional
provisional
April 9 2021 www.sse.com.cn April 10 2021 general meeting
shareholders
of shareholders
meeting in 2021
in 2021
Resolutions of
The second the second
provisional provisional
April 19 2021 www.sse.com.cn April 20 2021
shareholders general meeting
meeting in 2021 of shareholders
in 2021
Resolutions of
2020 Annual
the 2020 Annual
General Meeting May 25 2021 www.sse.com.cn May 26 2021
General Meeting
of Shareholders
of Shareholders
The preferred shareholders whose voting rights had been restituted requested to an extraordinary
general meeting of shareholders
□Applicable √Not applicable
Statement on shareholders’ meetings
√Applicable □Not applicable
1. The 2021 First Provisional General Meeting of Shareholders deliberated and adopted the
“Proposal on By-election of Independent Directors”.2. The 2021 Second Provisional General Meeting of Shareholders deliberated and adopted the
“Proposal on Capital Increase of Participating Companies and Related Transactions”.The 2020 Annual General Meeting of Shareholders deliberated and adopted “2020 Board ofDirectors Work Report” “2020 Board of Supervisors Work Report” “2020 Annual Report andSummary” “2020 Final Accounts Report” “2021 Financial Budget Report” and “2020 ProfitDistribution Plan” “Proposal on Renewing the Appointment of Accounting Firm” “Proposal on theProposed Issuance of Various Debt Financing Instruments in the Coming 12 Months”.II. Changes in directors supervisors and senior officers of the Company
√Applicable □Not applicable
Name Title Change
LUO Jinming Independent director Election
Statement on the changes in directors supervisors and senior officers of the Company
□Applicable √Not applicable
III. Plan for profit distribution or capital reserve into stock capital
Semi-annual proposals on profits distribution and capitalization of capital reserve
Whether to distribute profits or capitalize the NO
capital reserve
Number of bonus shares for every 10 shares 0
Dividend payout for every 10 shares (tax 0
inclusive)
Number of shares converted from the 0
capitalization of capital reserve for every 10
shares
Statement on the proposal on profits distribution or capitalization of capital reserve
None
IV. Incentive stock option plans employee stock ownership plans and other
employee incentives granted by the Company and the impact thereof
(i) Related equity incentive matters that have been disclosed in the
provisional announcement without progress or change in subsequent
implementation
√Applicable □Not applicable
Overview of the matter Query website
On October 23 2020 the twenty-third meeting of the eighth For details please refer
session of the Company's board of directors passed the Proposal on to the Company's
the Company's 2020 Restricted Stock Incentive Plan (Draft) and Its announcement on the
Summary Proposal on the Measures for the Evaluation and website of the Shanghai
Management of the Implementation of the Company's 2020 Stock Exchange
Restricted Stock Incentive Plan Proposal on Requesting the (www.sse.com.cn) on
General Meeting of Shareholders to Authorize the Board of Directors October 24 2020.to Handle Issues Related to Equity Incentives. The independent
directors of the Company issued relevant independent opinions.On October 23 2020 the sixth meeting of the eighth board of
supervisors of the Company deliberated and approved the Proposal
on the Company's 2020 Restricted Stock Incentive Plan (Draft) and
its Summary The Proposal on the Implementation Evaluation and
Management Measures for the Company's 2020 Restricted Stock
Incentive Plan Proposal on Verification of the List of Incentive
Objects of the Company's 2020 Restricted Stock Incentive Plan. The
board of supervisors issued relevant verification opinions.Independent financial consultants lawyers and other
intermediary agencies issued corresponding opinions.On November 18 2020 it received the Approval for Approving For details see the
Zhejiang China Commodity City Group Co. Ltd. to implement the Company's announcement
2020 restricted stock incentive plan issued by the State-owned on the website of the
Assets Supervision and Administration Office of the People's Shanghai Stock Exchange
Government of Yiwu City forwarded by Yiwu China Commodity City (www.sse.com.cn) on
Holdings Ltd. (Yiwu SASAOF〔2020〕51). November 20 2020.From November 20 2020 to November 29 2020 the list of For details please refer
incentive objects and positions of the 2020 restricted stock incentive to the Company's
plan were internally publicized. Within the time limit of the publicity announcement on the
the board of supervisors of the Company did not receive any website of the Shanghai
objection from any organization or individual or bad feedback Stock Exchange
without feedback record. On November 30 2020 the Board of (www.sse.com.cn) on
Supervisors of the Company issued the Examination Opinions and December 1 2020.Public Statement of the Board of Supervisors on the List of Incentive
Objects of the Company's 2020 Restricted Stock Incentive Plan.On December 10 2020 the Company's 2020 Fifth Provisional For details please refer
General Meeting of Shareholders deliberated and approved the to the Company's“Proposal on the ‘Company's 2020 Restricted Stock Incentive Plan announcement on the
(Draft)’ and Summary” the “Proposal on the “Measures of website of the ShanghaiAssessment and Management of Implementation of ‘Company’s Stock Exchange2020 Restricted Stock Incentive Plan’” and the “Proposal on (www.sse.com.cn) onRequesting the General Meeting of Shareholders to Authorize the December 11 2020.Board of Directors to Deal with Equity Incentive Related Matters”and disclosed the “Self-examination Report on the Trades ofCompany’s Stocks by Insiders of Company’s 2020 Restricted StockIncentive Plan”.On December 11 2020 the twenty-sixth meeting of the eighth For details please refer
session of the Company's board of directors passed the Proposal on to the Company's
Granting Restricted Shares to Incentive Objects for the First Time. announcement on the
The independent directors of the Company issued relevant website of the Shanghai
independent opinions. Stock Exchange
On December 11 2020 the seventh meeting of the Company's (www.sse.com.cn) on
eighth board of supervisors passed the Proposal on Granting December 12 2020.Restricted Stocks to Incentive Objects for the First Time. The Board
of Supervisors issued the Verification Opinions of the Board of
Supervisors on Matters Related to the First Grant of the Company's
2020 Restricted Stock Incentive Plan.Independent financial consultants lawyers and other
intermediary agencies issued corresponding opinions.On January 15 2021 the Company received the Securities For details please refer
Change Registration Certificate issued by the Shanghai Branch of to the Company's
China Securities Depository and Clearing Co. Ltd. and the announcement on the
Company completed the registration of the first grant of restricted website of the Shanghai
stocks to incentive objects. Stock Exchange
(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
Section V. Environmental and Social Responsibilities
I. Environmental issues
(i) Description of the environmental protection status of the Company and its main
subsidiaries that are key pollutant discharging units announced by the environmental
protection authorities
□Applicable √Not applicable
(ii) Description of the environmental protection status of the companies other than the key
pollutant discharging units
□Applicable √Not applicable
(iii) Further progress or change of the environmental issues disclosed during the
reporting period
□Applicable √Not applicable
(iv) Relevant information that is conducive to protecting ecology preventing pollution and
fulfilling environmental responsibilities
□Applicable √Not applicable
(v) Measures taken to reduce their carbon emissions during the reporting period and the
effect
□Applicable √Not applicable
II. Status of consolidation and expansion of the results of poverty alleviation rural
revitalization and other specific work
□Applicable √Not applicable
Section VI. Significant Matters
I. Fulfillment of commitments
(i) Commitments made by the actual controller shareholders affiliates and acquirer of
the Company the Company itself and other related parties during the reporting
period or as of the reporting period
□Applicable √Not applicable
II. Non-operating capital occupation by controlling shareholders and other related parties
during the reporting period
□Applicable √Not applicable
III. Illegal guarantees
□Applicable √Not applicable
IV. Information about audit on the semi-annual report
□Applicable √Not applicable
V. Changes and handling of matters involved in modified audit opinion in the previous
year’s annual report
□Applicable √Not applicable
VI. Matters relating to bankruptcy and reorganization
□Applicable √Not applicable
VII. Material litigations and arbitrations
√ The Company had no material litigations and arbitrations □The Company had material
litigations and arbitrations
(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:
Does
the
litigatio
n
Value Results
Party Basic (arbitrat Status
involve of Enforce
Defenda Beari Litigati informat ion) of
Plaintiff d in litigation ment of
nt ng on or ion of cause litigatio
(claiman litigatio (arbitrati judgmen
(respon Joint arbitra litigation estimat n
t) n on) and t
dent) Liabili tion (arbitrati ed (arbitrat
(arbitrat effect (award)
ties on) liabilitie ion)
ion) thereof
s and
the
amount
thereof
Hongsh Yiwu Litigati Dispute 1146.3 Mediati The The
None
eng Shangb on over a 9 NO on defenda sentenc
Constru o construc comple nt paid e has
ction Property tion ted the been
Group Co. Ltd. contract plaintiff' carried
Co. Ltd. [(2021) s out
Z 0782 constru
M C No. ction
7272] fund for
RMB
5.0206
million
Dispute
Trial
over
The has
Zhejiang unfair
Compan started
Yiwugou competit
y Big Litigati but no
E-comm None ions 1000 / /
Data on NO judgme
erce [(2020)
Compan nt has
Co. Ltd. Z 01 M
y been
C No.made
2202]
(iii) Other descriptions
√Applicable □Not applicable
In March 2018 the Company and Yiwu China Commodities City (the Company’s former holding
subsidiary present participating company in which the Company holds 35.8% of shares) was sued
by Bank of China Co. Ltd. Yiwu Branch (hereinafter referred to as “Bank of China Yiwu Branch”) dueto a letter of credit dispute” to the Jinhua Intermediate People’s Court of Zhejiang Province
(hereinafter referred to as “Jinhua Intermediate Court”). For details see the “Announcement on
Litigation Involved in the Company and Its Holding Subsidiaries" (Lin 2018-008) disclosed by the
Company on March 2 2018. Later the lawsuit was dismissed by Jinhua Intermediate Court.On May 18 2018 Bank of China Yiwu Branch transferred all the rights of the principal and
interest compound interest liquidated damages compensation and other claims under the letter of
credit involved to China Cinda Asset Management Co. Ltd. Zhejiang Branch (hereinafter referred to
as "Cinda Assets").On June 25 2021 Cinda Assets again filed a civil lawsuit with the Jinhua Intermediate People'sCourt on the dispute over the letter of credit. For details see the “Announcement on the Progress ofLitigation Involved in the Company and its Subsidiaries” (Lin 2021-036) disclosed by the Company
on July 21 2021.No hearings has been held as of the end of the reporting period.VIII. Information of the listed company and its directors supervisors senior management
controlling shareholder and actual controller suspected of violations of laws and
regulations penalties and rectification
□Applicable √Not applicable
IX. Credit standing of the Company and its controlling shareholder and actual controller
√Applicable □Not applicable
There was no outstanding court judgment or overdue debt of a large amount involving the
Company or its controlling shareholder or actual controller during the reporting period.X. Material related-party transactions
(i) Related-party transactions relating to regular corporate operation
1、 Matters that have been disclosed in the temporary announcements and had nofurther progresses or changes
□Applicable √Not applicable
2、 Matters that have been disclosed in the temporary announcements but had furtherprogresses or changes
□Applicable √Not applicable
3、 Matters that have not been disclosed in the temporary announcements√Applicable □Not applicable
Unit: RMB10000
Reason
s for
the
large
Percent differen
age in ce
Contents Amount
Type of Price of the betwee
of of Mark
Related related-p Pricing related-p amount Settle n the
Relation related-pa related-p et
counterp arty principl arty of ment price of
ship rty arty M/Pri
arty transacti e transacti similar method the
transactio transacti ce
on on transacti transac
n on
ons tion
(%) and
referen
ce
market
price
Yourworl
d
Internati
onal
Commissi
Conferen
oning
ce Accoun
managem Negoti
Center Other t
Others ent fee ated 89.58 95.98
subordin inflow transfe
license fee price
ated to r
etc.Yiwu.Market
Develop
ment
Group
Escort
service for
RMB and
foreign
currency
Yiwu Accepta Accoun
cash
Security nce of Market t
Others withdrawal 3.75 4.02
Service labor price transfe
at
Co. Ltd. service r
the
Company'
s
business
outlets
Total / / 93.33 100.00 / / /
Return of large-value goods sales
Illustration on related-party transactions
(ii) Related transactions arising from asset acquisitions or equity acquisitions and sales
1、 Matters that have been disclosed in the temporary announcements and had nofurther progresses or changes
□Applicable √Not applicable
2、 Matters that have been disclosed in the temporary announcements but had furtherprogresses or changes
□Applicable √Not applicable
3、 Matters that have not been disclosed in the temporary announcements□Applicable √Not applicable
4、 If any agreement on the operating results is involved the achievement of operatingresults 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 nofurther progresses or changes
□Applicable √Not applicable
2、 Matters that have been disclosed in the temporary announcements but had furtherprogresses or changes
√Applicable □Not applicable
The Company and the controlling shareholder CCCH increased the capital of CCCP in
monetary form according to the shareholding ratio. CCCH increased the capital by RMB 1.275 billion
the Company increased the capital by RMB 1.225 billion. After the capital increase the registered
capital of CCCP was RMB 5 billion and the shareholding ratio of both parties maintained unchanged.For details see the “Announcement on Capital Increase to Participating Companies and RelatedTransactions” (Announcement No.: Lin 2021-014).By the end of the reporting period the Company and CCCH have completed capital
contributions and CCCP has completed its industrial and commercial alteration registration.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 nofurther progresses or changes
□Applicable √Not applicable
2、 Matters that have been disclosed in the temporary announcements but had furtherprogresses or changes
√Applicable □Not applicable
In order to meet the development needs of Handing Shangbo a wholly-owned subsidiary of the
Company's subsidiary CCCP for the development of real estate project on the east side of the
intersection of Fotang Avenue and Shuangfeng Road Fotang Town Yiwu the Company provided
Handing Shangbo with a financial aid of no more than RMB 490 million. CCCH the Company’s
controlling shareholder will provide Handing Shangbo with the financial aid in the same proportion of
its indirect shareholding in Handing Shangbo. For details please refer to the Announcement on
Providing External Financial Assistance and Related Party Transactions (Announcement Number:
L2020-098).By the end of the reporting period the Company has provided financial aid of RMB 490 million
and CCCH has provided financial aid of RMB 510 million.3、 Matters that have not been disclosed in the temporary announcements□Applicable √Not applicable
(v) Financial business between the Company and the associated financial companies
the Company's holding financial company and the related parties
□Applicable □Not applicable
1. Deposit business
□Applicable √Not applicable
2. Loan business
□Applicable √Not applicable
3. Credit granting and other financial businesses
□Applicable √Not applicable
4. Other descriptions
□Applicable √Not applicable
(vi) Other significant related transactions
□Applicable √Not applicable
(vii) Others
□Applicable √Not applicable
XI. Material contracts and performance thereof
1 Trusteeship contracting and leases
√Applicable □Not applicable
(1) Hosting
□Applicable √Not applicable
(2) Contracting
□Applicable √Not applicable
(3) Renting
□Applicable √Not applicable
2 Material guarantees fulfilled or not completely fulfilled in the reporting period
√Applicable □Not applicable
Unit: RMB10000
External guarantees provided by the Company (excluding those provided for the subsidiaries)
Relationshi Date of
Whether
p between guarante Overdue
Guarant Guarant the Is the Is it a
the Guarante e (signing Type of Princip Collater amount Related
Guaranteei Guarante ee ee guarant guarant Counter related-par
guarantor ed date of guarant al al (if of the Relationsh
ng party ed party Starting Maturity ee has ee guarantees ty
and the amount the ee debts any) guarant ip
date date been overdue guarantee
Listed agreeme ee
fulfilled
Company nt)
Joint
and
The Huangyua
28424.4 Aug 13 Aug 23 Aug 22 several Joint
Corporate Company n NO NO Yes
7 2019 2022 2024 liability venture
itself Shangbo
guarant
ee
Joint State-owned
and operating
The Decemb
Yiwu 18483.7 Decembe Jul 1 several company Joint
Corporate Company er 15 NO NO Yes
Shanglv 3 r 16 2015 2015 liability provided a venture
itself 2026
guarant counter-guarant
ee ee
Joint
and CCCH provided
The Decemb Decemb
Yiwu Aug 13 several a Joint
Corporate Company 1391.81 er 25 er 24 NO NO Yes
Shanglv 2020 liability counter-guarant venture
itself 2020 2023
guarant ee
ee
Hangzhou Wholly-own Joint
House
Shangbo ed 992.89 and NO NO NO
purchaser
Nanxing subsidiary several
liability
guarant
ee
Amount of guarantees made during the reporting period (excluding the
-48106.35
guarantees provided for subsidiaries)
Balance of guarantees at the end of the reporting period (A) (excluding the
49292.90
guarantees provided for subsidiaries)
Guarantees provided by the Company for its subsidiaries
Amount of guarantees provided for subsidiaries during the reporting period
Balance of guarantees provided for subsidiaries at the end of the reporting
period (B)
Total guarantees provided by the Company (including those provided for the subsidiaries)
Total amount of guarantees (A+B) 49292.90
Ratio of the total amount of guarantees to the Company’s net assets (%) 3.50
Among them
Amount of guarantees provided for shareholders actual controller and their
related parties (C)
Amount of guarantees provided directly or indirectly for the debtors whose
28424.47
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) 28424.47
Statement on the joint and several liability that may be assumed due to
outstanding guarantees
1. According to the resolution of the 65th meeting of the 7th Board of Directors on Jul 23
2019 the Group applied to the Yiwu Branch of ICBC and Yiwu Branch of SPDB for RMB1bn
loans respectively for Huangyuan Shangbo and provided guarantees for the loans based on
its shareholding ratio. As of June 30 2021 Huangyuan Shangbo actually borrowed RMB
Statement on guarantees 266421958.33 from Industrial and Commercial Bank of China Yiwu Branch and RMB
313669198.33 from Shanghai Pudong Development Yiwu Branch (December 31 2020:
RMB 674889305.56 RMB 614209347.22). According to the agreement in the guarantee
contract it assumed the guarantee liability of RMB 130546759.58 for the Yiwu Branch of
Industrial and Commercial Bank of China and RMB 153697907.18 for the Yiwu Branch of
Shanghai Pudong Development Bank (December 31 2020: RMB 330695759.72 RMB
300962580.14).2. According to the resolution of the 15th Meeting of the 7th Board of Directors on July 1
2015 the Group applied for a RMB 750 million loan with Agricultural Bank of China Yiwu
Branch for Yiwu Shanglv and provided guarantees in accordance with the shareholding
ratio. The guarantee method was joint liability guarantee the highest guarantee amount was
RMB 367.5 million and the guarantee term was11 years. As of June 30 2021 Yiwu Shanglv
actually borrowed RMB 377219002.51 from the banks in total December 31 2020: RMB
477659739.88). According to the agreement of the guarantee contract it assumed the
guarantee liability of RMB 184837311.23 for the Agricultural Bank of China Yiwu Branch
(December 31 2020: RMB 234053272.54). Yiwu State-owned Capital Operation Co. Ltd.
provided a counter guarantee for this guarantee.3. According to the resolution of the 19th Meeting of the 8th Board of Directors on August 13
2020 the Group applied for a loan with a total amount of not more than RMB 100 million for
Yiwu Shanglv with Bank of Communications Co. Ltd. Yiwu Branch and provided a
guarantee in proportion to the shareholding ratio. The guarantee method was joint liability
guarantee the maximum amount of the guarantee was RMB 49 million and the guarantee
period is two years from the date of the expiry of the debt performance period agreed in the
independent contract until the date of the expiration of the debt performance period of all last
due main debt under the master contract. As of June 30 2021 Yiwu Shanglv actually
borrowed RMB 28404291.89 from the banks in total (December 31 2020: RMB
11500000.00). According to the agreement of the guarantee contract it assumed the
guarantee liability of RMB 13918103.03 for the Agricultural Bank of China Yiwu Branch
(December 31 2020: RMB 5635000.00). Yiwu China Commodity City Holdings Limited
provided counter-guarantee for this guarantee.4. According to relevant regulations before the purchaser of the commercial housing sold by
the Group has obtained the property certificate the Group shall provide the purchaser with a
bank mortgage guarantee. As of June 30 2021 the unsettled guarantee amount was RMB
9928856.22 (December 31 2020: RMB 16170141.08). Those guarantees would be
released after the issuance of the property ownership certificates and are thus little likely to
incur losses. Therefore the management believed that it was not necessary to make
provision for the guarantees.3 Other material contracts
√Applicable □Not applicable
On June 16 2021 the Company and Haier Group (Qingdao) Financial Holdings Co. Ltd.signed the “Agreement on Transfer of Equity of QuickPass Payment Service Co. Ltd. of ZhejiangHaier Network Technology Co. Ltd. Between Haier Group (Qingdao) Financial Holdings Co. Ltd.and Zhejiang China Commodities City Group Co. Ltd providing for that the Company will acquire
100% equity of Zhejiang Haier Network Technology Co. Ltd. (hereinafter referred to as "Haier
Network") held by it at the consideration of RMB 449.3 million.Through audit by Zhongshen Asia Pacific Certified Public Accountants (Special General
Partnership) the book value of the net assets of Haier Network's statements on the base date
December 31 2020 was RMB 189894500 (the book value of net assets of the consolidated
statements was RMB 156361800). Through evaluation of Jiangsu China Enterprise Huazhongtian
Assets Appraisal Co. Ltd. the value of all shareholders' equity of Haier Networks was RMB 454
million on the base date December 31 2020. Based on the assessed value and the total transaction
amount of this transaction was confirmed to be RMB 449.3 million. For details of this transaction seethe “Announcement on the Proposed Acquisition of 100% of Equity of Zhejiang Haier NetworkTechnology Co. Ltd.” (Lin 2021-033).By the end of the reporting period the Company had paid Haier Financial Holdings the equity
transfer price (Issue 1) of RMB 67.395 million and both parties had completed the first phase of
delivery in accordance with the agreement.XII. Other significant matters
□Applicable √Not applicable
Section VII. Changes in Shares and Shareholders
I. Changes in equity
(i) Exhibition of changes in shares
1、 Exhibition of changes in sharesUnit: share
Before this change Increase or decrease in the current period (+ -) After this change
New Shares
Bonus
Number (%) shares converted from Others Subtotal Number (%)
shares
issued capital reserve
I. Restricted shares 0 0 46700000 0 0 0 46700000 46700000 0.85
1. Shares held by the state
2. Shares held by state-owned legal
persons
3. Shares held by other domestic 0 0 0.85
46700000 0 0 0 46700000 46700000
capitals
In which: shares held by domestic
non-state-owned legal persons
shares held by domestic natural 0 0 0.85
46700000 0 0 0 46700000 46700000
persons
4. Shares held by foreign capitals
In which: shares held by foreign
non-state-owned legal persons
shares held by foreign natural persons
II. Unrestricted shares 5443214176 100.00 5443214176 99.15
1. RMB-denominated common shares 5443214176 100.00 0 0 0 0 0 5443214176 99.15
2. Foreign shares listed in China
3. Foreign shares listed abroad
4. Others
III. Total number of shares 5443214176 100.00 46700000 0 0 0 46700000 5489914176 100.00
2、 Description of changes in shares√Applicable □Not applicable
During the reporting period according to the 2020 restricted stock incentive plan the Company
granted 46700000 restricted stocks to 395 incentive objects for the first time and completed the
registration of stocks. The Company increased its share capital by 46700000 shares and the total
share capital increased to 5489914176 shares.3、 The impact of share changes on financial indicators such as earnings per share and netassets per share during the period from the end of the reporting period to the disclosure date
of the semi-annual report (if any)
□Applicable √Not applicable
4、 Other matters the Company deems it necessary to disclose or required by the securitiesregulatory authority to be disclosed
□Applicable √Not applicable
(ii) Changes in non-tradable shares
√Applicable □Not applicable
Unit: share
Number of Number of Number of
restricted restricted increased Number of
Reasons
shares at shares restricted restricted
for Release
Shareholder the released shares shares at the
restriction date
beginning during the during the end of the
on trade
of the reporting reporting period
period period period
395 incentive Restricted
objects granted stock
by the incentives
restricted stock 0 0 46700000 46700000 /
incentive plan
for the first time
in 2020
Total 0 0 46700000 46700000 / /
II. Information of restricted shareholders
(i) Information of shareholders:
Number of common shareholders as of the end of the191448
reporting period
Total number of preferred shareholders whose voting
rights had been restituted as of the end of the reporting 0
period
(ii) Shareholdings of the top 10 shareholders and top 10 holders of tradable shares (or shareholders not subject to trading restrictions)
Unit: share
Shares held by top 10 shareholders
Pledge mark or
Change during Number of shares held at Number of
Shareholder freezing Ownership of
the reporting the end of the reporting (%) non-tradable
(fullname) Status of shareholder
period period shares held Number
shares
Yiwu China Commodities City State-owned
0 3038179392 55.34 0 None 0
Holdings Limited legal person
Zhejiang Financial Development State-owned
0 147466528 2.69 0 None 0
Co. Ltd. legal person
State-owned
Central Huijin Investment Ltd. -15857796 50513204 0.92 0 None 0
legal person
Domestic natural
LI Guoping 41472900 41472900 0.76 0 None 0
person
Hong Kong Central Clearing
24270207 37742829 0.69 0 None 0 Unknown
Company Limited
Bosera Funds－Agricultural Bank
of China－Bosera China
0 27672800 0.50 0 None 0 Unknown
Securities Financial Assets
Management Scheme
E Fund－Agricultural Bank of
China－E Fund China Securities
0 27672800 0.50 0 None 0 Unknown
Financial Assets Management
Scheme
Dacheng Fund－Agricultural
Bank of China－Dacheng China
0 27672800 0.50 0 None 0 Unknown
Securities Financial Assets
Management Scheme
Harvest Fund－Agricultural Bank
of China－Harvest China
0 27672800 0.50 0 None 0 Unknown
Securities Financial Assets
Management Scheme
GF Fund－Agricultural Bank of
China－GF China Securities
0 27672800 0.50 0 None 0 Unknown
Financial Assets Management
Scheme
Zhong Ou AMC－Agricultural
Bank of China－Zhong Ou China
0 27672800 0.50 0 None 0 Unknown
Securities Financial Assets
Management Scheme
Southern Asset Management－
Agricultural Bank of China－
Southern China Securities 0 27672800 0.50 0 None 0 Unknown
Financial Assets Management
Scheme
ICBC Credit Suisse Asset
Management－Agricultural Bank
of China－ICBC Credit Suisse 0 27672800 0.50 0 None 0 Unknown
China Securities Financial Assets
Management Scheme
Shares held by top 10 holders of tradable shares
Type and quantity of shares
Shareholder Number of tradable shares held
Category Number
RMB-denominated
Yiwu China Commodities City Holdings Limited 3038179392 3038179392
common share
RMB-denominated
Zhejiang Financial Development Co. Ltd. 147466528 147466528
common share
RMB-denominated
Central Huijin Investment Ltd. 50513204 50513204
common share
RMB-denominated
LI Guoping 41472900 41472900
common share
RMB-denominated
Hong Kong Central Clearing Company Limited 37742829 37742829
common share
Bosera Funds－Agricultural Bank of China－Bosera China RMB-denominated
27672800 27672800
Securities Financial Assets Management Scheme common share
E Fund－Agricultural Bank of China－E Fund China Securities RMB-denominated
27672800 27672800
Financial Assets Management Scheme common share
Dacheng Fund－Agricultural Bank of China－Dacheng China RMB-denominated
27672800 27672800
Securities Financial Assets Management Scheme common share
Harvest Fund－Agricultural Bank of China－Harvest China RMB-denominated
27672800 27672800
Securities Financial Assets Management Scheme common share
GF Fund－Agricultural Bank of China－GF China Securities RMB-denominated
27672800 27672800
Financial Assets Management Scheme common share
Zhong Ou AMC－Agricultural Bank of China－Zhong Ou China RMB-denominated
27672800 27672800
Securities Financial Assets Management Scheme common share
Southern Asset Management－Agricultural Bank of China－
RMB-denominated
Southern China Securities Financial Assets Management 27672800 27672800
common share
Scheme
ICBC Credit Suisse Asset Management－Agricultural Bank of
RMB-denominated
China－ICBC Credit Suisse China Securities Financial Assets 27672800 27672800
common share
Management Scheme
The special accounts for repo for top 10
/
shareholders
Description of the entrusted voting rights entrusted
voting rights and waiver of voting rights for /
above-mentioned shareholders
Zhejiang Finance Development Co. Ltd. holds 9.44% of the shares of Yiwu State-owned Capital
Explanation on the relationship or concerted action Operation Co. Ltd. the controlling shareholder of Yiwu China Commodity City Holding Limited the
between the above shareholders
controlling shareholder of Yiwu Market Development Group Co. Ltd.Explanation on the preferred shareholders whose
voting rights had been restituted and the quantity of /
shares held thereby
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 ten shareholders due to the
placement of new shares
□Applicable √Not applicable
III. Directors supervisors and senior management
(i) Changes in shareholdings of present and resigned directors supervisors and senior
management during the reporting period
□Applicable √Not applicable
Statement on other matters
□Applicable √Not applicable
(ii) The equity incentives granted to directors supervisors and senior management during
the reporting period
□Applicable √Not applicable
√Applicable □Not applicable
Unit: share
Number of Number of
Number of
restricted restricted
restricted
stocks held stocks
Released Unreleased stocks held
Name Title at the granted
shares share at the end
beginning during the
of the
of the reporting
period
period period
ZHAO Wenge Director 0 300000 0 300000 300000
WANG Dong Director 0 300000 0 300000 300000
Senior
JIN Gengzhong 0 300000 0 300000 300000
officer
Senior
WU Xiubin 0 300000 0 300000 300000
officer
Senior
ZHANG Qizhen 0 300000 0 300000 300000
officer
Senior
WEI Gang 0 300000 0 300000 300000
officer
XU Hang Director 0 300000 0 300000 300000
Senior
ZHAO Difang 0 300000 0 300000 300000
officer
Total / 0 2400000 0 2400000 2400000
(iii) Other descriptions
□Applicable √Not applicable
IV. Changes in controlling shareholder or actual controller
□Applicable √Not applicable
Section VIII. Preferred Shares
□Applicable √Not applicable
Section IX. Bonds
I. Corporate bonds corporate bonds and non-financial corporate debt financing
instruments
√Applicable □Not applicable
(i) Corporate bonds
□Applicable √Not applicable
(ii) Corporate bonds
√Applicable □Not applicable
1. Basic information on corporate bonds
Unit: RMB 100 million Currency: RMB
Whether
there is a
risk of
Method of
Maturi Interes terminatin
Issue Value Outstanding principal Marke Trade
Bond name Abbreviation Code ty t rate g the
date date amount repayment and tplace mechanism
date (%) transaction
interest payment
in the
stock
market
For the principal
repayment and
interest payment
of the bond the
list of
Publicly
bondholders
offered
would be made
corporate
according to the Shang
bond 2019 of
Jun June relevant hai
Zhejiang 19 Yiwu 15545 Jun 5
3 5 8 4.3 provisions of the Stock NO
China CCC 01 0 2022
2019 2019 bond registration Excha
Commodities
authority. The nge
City Group
specific matters
Co. Ltd
shall be handled
(Phase I)
according to the
relevant
provisions of the
bond registration
authority.For the principal
repayment and
interest payment
of the bond the
list of
Zhejiang bondholders
China would be made
Commodities according to the Shang
City Group Sep Sep Sep relevant hai
19 SYiwu 15575
Co. Ltd.’s 26 27 27 7 3.99 provisions of the Stock NO
CCC 02 0
2019 Public 2019 2019 2022 bond registration Excha
Corporate authority. The nge
Bonds (Issue specific matters
2) shall be handled
according to the
relevant
provisions of the
bond registration
authority.The Company's measures to deal with the risk of bond termination
□Applicable √Not applicable
Bonds overdue
□Applicable √Not applicable
Explanation on overdue debts
□Applicable √Not applicable
2. Issuer or investor option clause investor protection clause trigger and enforcement
□Applicable √Not applicable
3. Adjustment in credit rating results
□Applicable √Not applicable
4. The implementation and changes of guarantees debt repayment plans and other debt
repayment protection measures during the reporting period and their impacts
□Applicable √Not applicable
5. Other statement on corporate bonds
√Applicable □Not applicable
2019 Corporate Bonds (Issue 1) with a total amount of raised funds of RMB 800 million. 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.2019 Corporate Bonds (Issue 2) with a total raised capital of RMB 700 million. 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.(iii) Non-financial corporate debt financing instruments in the inter-bank bond
market
√Applicable □Not applicable
1. Non-financial corporate debt financing instruments
Unit: RMB 100 million Currency: RMB
Whethe
r there
is a risk
Method of of
Inter
Matur Outstand principal Trade terminat
Bond Abbreviat Value est Marketpl
Code Issue date ity ing repayment mechani ing the
name ion date rate ace
date amount and interest sm transact
(%)
payment ion in
the
stock
market
The interest
of the
current
MTN is paid
once a
year and
the
Zhejiang
principal is
China
redeemed
Commodi
18 in one lump
ties City September Shangha
Zhejiang Septem Sep sum on the
Group 101801 4 2018- i
Yiwu ber 6 6 10 4.75 redemption NO
Co. 043 September Clearing
CCC 2018 2021 date. The
Ltd.’s 5 2018 House
MTN001 interest2018
payment
MTN
and
(Issue 1)
redemption
of the
current
MTN will be
handled by
the
custodian
(if the
maturity
date falls on
a statutory
holiday the
redemption
will be
postponed
to the next
working
day and no
interest will
be accrued
during the
postponem
ent period).The interest
of the
current
MTN is paid
once a
year and
the
principal is
redeemed
in one lump
sum on the
redemption
date. The
interest
payment
Zhejiang
and
China
redemption
Commodi
19 of the
ties City Shangha
Zhejiang July 11 Jul current
Group 101900 July 15 i
Yiwu 2019- July 15 10 3.99 MTN will be NO
Co. 921 2019 Clearing
CCC 12 2019 2022 handled by
Ltd.’s House
MTN001 the2019
custodian
MTN
(if the
(Issue 1)
maturity
date falls on
a statutory
holiday the
redemption
will be
postponed
to the next
working
day and no
interest will
be accrued
during the
postponem
ent period).The interest
of the
current
MTN is paid
once a
Zhejiang
year and
China
the
Commodi
19 October principal is
ties City Shangha
Zhejiang 17 October Oct redeemed
Group 101901 i
Yiwu 2019-Octo 21 21 10 3.97 in one lump NO
Co. 396 Clearing
CCC ber 18 2019 2022 sum on the
Ltd.’s House
MTN002 2019 redemption2019
date. The
MTN
interest
(Issue 2)
payment
and
redemption
of the
current
MTN will be
handled by
the
custodian
(if the
maturity
date falls on
a statutory
holiday the
redemption
will be
postponed
to the next
working
day and no
interest will
be accrued
during the
postponem
ent period).Payment of
principal
and interest
in one lump
sum at
maturity.The issuer
shall
publish the“Redemption
Announcement” in the
information
media
recognized
by the
competent
authority in
accordance
Zhejiang with
China relevant
Commodi regulations
ties City five working
Group days before
21 February
Co. the Shangha
Zhejiang 20 Aug
Ltd.’s 012100 Feb 23 redemption i
Yiwu 2021-Febr 24 10 3.40 NO
2021 639 2021 date of the Clearing
CCC uary 22 2021
Super current House
SCP002 2021
Short-ter ultra-short-t
m erm
Financing financing
Bonds bonds; for
(Issue 2) the
redemption
of the
current
ultra-short-t
erm
financing
bonds
according
to the
Company's
regulations
the
Interbank
Market
Clearing
House Co.Ltd. will
complete
the interest
payment
and
redemption
work as an
agent;
related
matters will
be
disclosed in
the“Redemption
Announcement” in
details.The issuer
shall
publish the“Redemption
Announcement” in the
information
media
recognized
by the
competent
authority in
accordance
with
relevant
regulations
five working
days before
the
redemption
date of the
current
Zhejiang ultra-short-t
China erm
Commodi financing
ties City bonds; for
Group the21
Co. redemption Shangha
Zhejiang April 12 Jul
Ltd.’s 012101 Apr 14 of the i
Yiwu 2021-April 13 10 2.93 NO
2021 427 2021 current Clearing
CCC 13 2021 2021
Super ultra-short-t House
SCP004
Short-ter erm
m financing
Financing bonds
Bonds according
(Issue 4) to the
Company's
regulations
the
Interbank
Market
Clearing
House Co.Ltd. will
complete
the interest
payment
and
redemption
work as an
agent;
related
matters will
be
disclosed in
the“Redemption
Announcem
ent” in
details.The issuer
shall
publish the“Redemption
Announcement” in the
information
media
recognized
by the
competent
authority in
accordance
with
relevant
regulations
five working
days before
the
redemption
date of the
current
ultra-short-t
Zhejiang erm
China financing
Commodi bonds; for
ties City the
Group redemption21
Co. of the Shangha
Zhejiang May 31 Oct
Ltd.’s 012102 Jun 2 current i
Yiwu 2021-June 29 10 2.84 NO
2021 030 2021 ultra-short-t Clearing
CCC 2 2021 2021
Super erm House
SCP005
Short-ter financing
m bonds
Financing according
Bonds to the
(Issue 5) Company's
regulations
the
Interbank
Market
Clearing
House Co.Ltd. will
complete
the interest
payment
and
redemption
work as an
agent;
related
matters will
be
disclosed in
the“Redemption
Announcement” in
details.The Company's measures to deal with the risk of bond termination
□Applicable √Not applicable
Bonds overdue
□Applicable √Not applicable
Explanation on overdue debts
□Applicable √Not applicable
2. Issuer or investor option clause investor protection clause trigger and enforcement
□Applicable √Not applicable
3. Adjustment in credit rating results
□Applicable √Not applicable
4. The implementation and changes of guarantees debt repayment plans and other
debt repayment protection measures during the reporting period and their impacts
□Applicable √Not applicable
5. Explanation on other situations relevant to non-financial corporate debt financing
instruments
√Applicable □Not applicable
1. The Company issued 90-day ultra-short-term financing bonds of RMB 1 billion on November
25 2020 at an annual interest rate of 2.5%. The lead underwriter was Agricultural Bank of China.The bonds have become mature on February 25 2021 with principal and interest cashed.2. The Company issued 90-day ultra-short-term financing bonds of RMB 1 billion on December
8 2020 at an annual interest rate of 2.45%. The lead underwriter was Shanghai Pudong
Development Bank Co. Ltd. The bonds have become mature on March 9 2021 with principal and
interest cashed.3. The Company issued 28-day ultra-short-term financing bonds of RMB 1 billion on December
24 2020 at an annual interest rate of 2.70%. The lead underwriter is Industrial and Commercial
Bank of China. The bonds have become mature on January 22 2021 with principal and interest
cashed.4. The Company issued 88-day ultra-short-term financing bonds of RMB 1 billion on January 14
2021 at an annual interest rate of 3.20%. The lead underwriter was Agricultural Bank of China Co.Ltd. The bonds have become mature on April 16 2021 with principal and interest cashed.5. The Company issued 88-day ultra-short-term financing bonds of RMB 1 billion on March 4
2021 at an annual interest rate of 3.09%. The lead underwriter was Industrial and Commercial Bank
of China. The bonds have become mature on June 4 2021 with principal and interest cashed.(iv) During the reporting period the Company's loss in the scope of consolidated
statements exceeded 10% of its net assets as of the the end of the previous year.□Applicable √Not applicable
(v) Main accounting data and financial indicators
√Applicable □Not applicable
Unit: RMB10000
As of the Increase/decrease
end of the As of the at the end of the
Major indicator current end of reporting period Reasons for change
reporting 2020 over the end of the
period previous year (%)
Current ratio 72.02% 91.44% Down 19.42 %
Quick ratio 70.02% 79.45% Down 9.43 %
Debt-to-asset ratio
52.59 52.78 Down 0.19 %
(%)
Increase/decrease
during the
Jan-Jun Jan-Jun reporting period
Reasons for change
2021 2020 over the same
period of the
previous year (%)
Net profit after The net profit attributable to the
deduction of parent company’s owner
non-recurring increased by RMB 131 million
80498.09 60219.38 33.67
gains and losses year-on-year and non-recurring
gains and losses decreased by
RMB 72 million year-on-year
EBITDA to total
0.23 0.27 -14.81
debt ratio
Interest coverage The interest expenses
ratio 7.09 5.23 35.56 decreased by RMB 61 million
year-on-year
Cash interest The net cash flow from
protection multiple operating activities during the
current period increased by
5.32 0.72 637.55 RMB 870 million year-on-year
and interest payments
decreased by RMB 61 million
year-on-year.EBITDA-to-interest The interest expenses
coverage ratio 9.04 5.99 50.92 decreased by RMB 61 million
year-on-year
Loan repayment
100 100
rate (%)
Interest payment
100 100
rate (%)
II. Convertible corporate bonds
□Applicable √Not applicable
Section X. Financial Report
I. Auditor’s report
□Applicable √Not applicable
II. Financial statements
Consolidated Balance Sheet
June 30 2021
Prepared by: Zhejiang China Commodities City Group Co. Ltd.Unit: RMB
Item Notes June 30 2021 December 31 2020
Current assets:
Monetary capital 3019635447.13 5612642932.21
Held-for-trading financial assets 57568002.17 51712734.31
Accounts Receivable 139603567.84 153573476.86
Prepayments 596382710.86 105187528.26
Other receivables 3072486757.71 2708478136.25
In which: interest receivable 184625160.72 121401210.48
Inventories 1397192587.83 1329467728.17
Other current assets 237091677.93 179724694.17
Total current assets 8519960751.47 10140787230.23
Non-current assets:
Long-term receivables 186094734.90 126756573.81
Long-term equity investment 5284519935.53 3832897502.71
Other equity instruments investment 588254213.58 662256342.79
Other non-current financial assets 1565523492.51 1523925249.81
Investment real estate 1914125314.85 1960426291.73
Property plant and equipment 5043245326.60 5234293786.87
Construction in progress 2011597180.39 982891877.14
Right-of-use assets 179804271.63 -
Intangible assets 3989317996.79 3900780981.92
Development expenditures 36456278.42 22223061.09
Long-term deferred expenses 88479735.68 110728723.36
Deferred tax assets 85913021.35 99664328.84
Other non-current assets 220615444.63 152495196.56
Total non-current assets 21193946946.86 18609339916.63
Total assets 29713907698.33 28750127146.86
Current liabilities:
Short-term loans 1234890481.77 1257179389.40
Accounts payable 807401123.93 636463802.23
Advances from customers 108185394.49 112752897.25
Contract liabilities 2525598728.31 2442211788.88
Employee compensations payable 52119743.98 161498997.53
Taxes payable 232061631.42 495400499.73
Other payables 1775772737.40 1646345561.62
Non-current liabilities due within one year 2031849229.82 1315026574.43
Other current liabilities 3061785512.50 3023608041.68
Total current liabilities 11829664583.62 11090487552.75
Non-current liabilities:
Long- term loans 604000000.00 282000000.00
Bonds payable 2786076439.37 3552161709.68
Lease liabilities 175878039.33 -
Estimated liabilities 110620306.10 110620306.10
Deferred incomes 25834540.46 26545277.30
Deferred income tax liabilities 95833279.47 113602923.79
Total non-current liabilities 3798242604.73 4084930216.87
Total Liabilities 15627907188.35 15175417769.62
Owners' equity (or shareholders' equity):
Paid-in capital (or equity) 5489914176.00 5489914176.00
Capital reserves 1611917337.79 1594906524.67
Less: treasury stocks 137298000.00 137298000.00
Other comprehensive income 20996326.05 78149661.33
Surplus reserve 1364257808.58 1364257808.58
Retained earnings 5716867387.75 5168298206.50
Total owner’s equity (or shareholders’ equity)
14066655036.17 13558228377.08
attributable to the parent company
Minority shareholders' equity 19345473.81 16481000.16
Total owner’s equity (or shareholders’
14086000509.98 13574709377.24
equity)
Total liabilities and owners’ equity (or
29713907698.33 28750127146.86
shareholders’ equity)
Legal Representative: ZHAO Wenge Person in Charge of Finance: WANG Dong Head of Finance
D epartment: ZHAO Difang
Balance Sheet of Parent Company
June 30 2021
Prepared by: Zhejiang China Commodities City Group Co. Ltd.Unit: RMB
Item Notes June 30 2021 December 31 2020
Current assets:
Monetary capital 2818878844.46 5435867497.50
Held-for-trading financial assets 2000.15 6632.72
Accounts Receivable 6894652.11 14671577.47
Prepayments 35388066.41 29452445.04
Other receivables 2996245219.88 2651640610.06
In which: interest receivable 184625160.72 121401210.48
Inventories 9416625.96 10144965.06
Other current assets 3347123936.64 3082340716.76
Total current assets 9213949345.61 11224124444.61
Non-current assets:
Long-term receivables 61250000.00 61250000.00
Long-term equity investment 7645123240.17 6083135428.02
Other equity instruments investment 588254213.58 662256342.79
Other non-current financial assets 268321054.11 266722811.41
Investment real estate 1464961605.75 1501734504.79
Property plant and equipment 4287761821.48 4444239239.28
Construction in progress 1863073492.57 856248099.10
Right-of-use assets 171878246.76 -
Intangible assets 3866223861.24 3777092772.41
Long-term deferred expenses 50758414.87 58705952.97
Deferred tax assets 71754574.34 85739381.21
Other non-current assets 67395000.00 -
Total non-current assets 20406755524.87 17797124531.98
Total assets 29620704870.48 29021248976.59
Current liabilities:
Short-term loans 1234890481.77 1257179389.40
Accounts payable 595073617.56 444254309.61
Advances from customers 81824785.92 97380931.49
Contract liabilities 1919954541.32 2283994068.70
Employee compensations payable 46832827.75 131469702.81
Taxes payable 359818683.29 546100633.28
Other payables 1446659579.24 1333312494.36
Non-current liabilities due within one year 2031849229.82 1315026574.43
Other current liabilities 3530643289.78 3556664822.79
Total current liabilities 11247547036.45 10965382926.87
Non-current liabilities:
Long- term loans 604000000.00 282000000.00
Bonds payable 2786076439.37 3552161709.68
Lease liabilities 167905156.44 -
Estimated liabilities 110620306.10 110620306.10
Deferred incomes 25834540.46 26545277.30
Deferred income tax liabilities 52303754.50 69623249.14
Total non-current liabilities 3746740196.87 4040950542.22
Total Liabilities 14994287233.32 15006333469.09
Owners' equity (or shareholders' equity):
Paid-in capital (or equity) 5489914176.00 5489914176.00
Capital reserves 1844177445.65 1833256515.22
Less: treasury stocks 137298000.00 137298000.00
Other comprehensive income 25971586.93 81473183.84
Surplus reserve 1364204332.75 1364204332.75
Retained earnings 6039448095.83 5383365299.69
Total owner’s equity (or shareholders’
14626417637.16 14014915507.50
equity)
Total liabilities and owners’ equity (or
29620704870.48 29021248976.59
shareholders’ equity)
Legal Representative: ZHAO Wenge Person in Charge of Finance: WANG Dong Head of Finance
D epartment: ZHAO Difang
Consolidated Income Statement
January-June 2021
Unit: RMB
Item Notes Jan-Jun 2021 Jan-Jun 2020
I. Total operating incomes 2072627727.00 2121448794.31
Including: operating incomes 2072627727.00 2121448794.31
II. Total operating costs 1286710176.88 1277687351.73
Including: operating costs 925410625.41 869227556.47
Taxes and surcharges 68637589.35 81768664.49
Selling expenses 74042931.03 87887071.86
General and administrative expenses 166698886.58 130450924.63
R&D expenses 4569138.44 17081225.94
Financial expenses 47351006.07 91271908.34
Including: interest 173963591.17 234530903.42
Interest income 117153799.20 120683282.59
Add: other income 9046028.12 13684424.06
Investment income (losses presented with
263831792.50 119150641.25
"-")
Including: investment income from
263788954.78 13185907.49
associated enterprises and joint ventures
Gains from changes in fair value (losses
1128592.10 20193509.58
presented with "-")
Credit impairment loss (loss is indicated by
-429274.88 -2379335.67
“-”)
Income from asset disposal (losses
101911.42 1095496.24
presented with "-")
III. Operating profit (losses presented with "-") 1059596599.38 995506178.04
Plus: non-operating income 1345652.86 753575.18
Less: non-operating expenses 1121094.44 3230897.12
IV. Total profits (total loss presented with "-") 1059821157.80 993028856.10
Less: income taxes 212576766.64 272987186.07
V. Net profit (net loss presented with "-") 847244391.16 720041670.03
(I) Categorized by continuity of operation
Net profits from continuing operation (net loss
847244391.16 720041670.03
is indicated by “-”)
(II) Categorized by ownership
Net profits attributable to shareholders of the
850514460.93 719595308.66
parent company (net loss is indicated by “-”)
Minority interest(net loss is indicated by “-”) -3270069.77 446361.37
VI. Net after-tax amount of other comprehensive
-57171933.87 -6851012.93
income
(I) Other comprehensive income attributable to
-57153335.28 -6851012.93
owners of the parent company net of tax
1. Other comprehensive income that cannot
-55501596.91 -6584935.23
be reclassified as profits or loss
(3) Changes in fair value of investments in other
-55501596.91 -6584935.23
equity instruments
2 . Other comprehensive income that will be
-1651738.37 -266077.70
reclassified as profits or loss
(6) Difference arising from the translation of
-1651738.37 -266077.70
foreign currency financial statements
(2) After -tax net of other comprehensive
-18598.59 -
income attributable to minority shareholders
VII. Total comprehensive income 790072457.29 713190657.10
(I) Total comprehensive income attributable to
793361125.65 712744295.73
owners of the parent company
(II) Total comprehensive income attributable to
-3288668.36 446361.37
minority shareholders
VIII. Earnings per share:
(I) Basic earnings per share 0.16 0.13
(II) Diluted earnings per share 0.15 0.13
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 Finance: WANG Dong Head of Finance
Department: ZHAO Difang
Income Statement of Parent Company
January-June 2021
Unit: RMB
Item Notes Jan-Jun 2021 Jan-Jun 2020
I. Revenue 1588046245.78 1662962086.90
Less: cost of sales 429090936.75 417683630.26
Taxes and surcharges 58484528.13 65927422.27
Selling expenses 47108501.28 71698416.11
General and administrative
90199678.31 68180551.76
expenses
Financial expenses 46070392.65 93978042.43
Including: interest 173963591.17 234530903.42
Interest income 116062301.61 119943387.77
Add: other income 6818726.38 8427874.93
Investment income (losses
242410649.86 43373764.99
presented with "-")
Including: investment income from
242367812.14 22242937.96
associated enterprises and joint ventures
Gains from changes in fair value
3768691.70 -11815305.33
(losses presented with "-")
Credit impairment loss (loss is
-472652.89 -75439.45
indicated by “-”)
Income from asset disposal (losses
- -776.57
presented with "-")
II. Operating profits (loss is indicated by
1169617623.71 985404142.64
“-”)
Plus: non-operating income 1312807.46 469374.66
Less: non-operating expenses 1119542.70 1413092.81
III. Profits before tax (loss is indicated by
1169810888.47 984460424.49
“-”)
Less: income taxes 211782812.65 243885033.19
IV. Net profits (net loss is indicated by “-”) 958028075.82 740575391.30
(I) Categorized by continuity of
958028075.82 740575391.30
operation(net loss is indicated by “-”)
V. Other comprehensive income net of tax -55501596.91 -6584935.23
(1) Other comprehensive income that
-55501596.91 -6584935.23
cannot be reclassified into profit and loss
3. Changes in fair value of
-55501596.91 -6584935.23
investments in other equity instruments
VI. Total comprehensive income 902526478.91 733990456.07
VII. Earnings per share:
(I) Basic earnings per share 0.18 0.14
(II) Diluted earnings per share 0.17 0.14
Legal Representative: ZHAO Wenge Person in Charge of Finance: WANG Dong Head of Finance
Department: ZHAO Difang
Consolidated Cash Flow Statement
January-June 2021
Unit: RMB
Item Notes Jan-Jun 2021 Jan-Jun 2020
1. Cash flow for operating activities:
Cash received from selling goods and
2103613100.95 1607591030.14
providing labor services
Cash received for taxes and surcharges
31958670.65 -
refunded
Other cash received related to operating
185781336.71 142203534.16
activities
Subtotal of cash inflow from operating
2321353108.31 1749794564.30
activities
Cash paid for purchasing goods and
1072180983.15 728107752.48
receiving labor services
Cash paid to and for employees 321909809.23 335913290.70
Taxes and surcharges paid 585534877.66 637729363.85
Other cash paid related to operating
174991613.52 751110857.43
activities
Subtotal of cash outflow from operating
2154617283.56 2452861264.46
activities
Net cash flow from operating activities 166735824.75 -703066700.16
II. Cash flow for investment activities:
Cash received from investment 5052210999.83 2247254852.56
Cash received from investment income 103616646.00 21358547.58
Net cash received from disposal of
property plant and equipment intangible 43092520.72 -
assets and other long-term assets
Other cash received related to investing
1326599831.00 192154897.34
activities
Subtotal of cash inflow from investing
6525519997.55 2460768297.48
activities
Cash paid for acquisition of property plant
and equipment intangible assets and other 1064887215.22 1193403588.05
long-term assets
Cash paid for investment 3945813863.27 650338982.38
Other cash paid related to investing
1550981005.00 -
activities
Subtotal of cash outflow for investing
6561682083.49 1843742570.43
activities
Net cash flow from investing activities -36162085.94 617025727.05
III. Cash flow for financing activities:
Cash received for investment taking 6000000.00 -
Including: cash received by subsidiaries
from absorbing minority shareholders' 6000000.00 -
investment
Cash received for obtaining loans 1422000000.00 4490000000.00
Cash received from bond issuance 5000000000.00 1999200628.92
Subtotal of cash inflow from financing
6428000000.00 6489200628.92
activities
Cash paid for debt paying 6232000000.00 6200000000.00
Cash paid for distribution of dividends and
400351190.76 159190038.50
profits or payment for interest
Including: dividends and profits paid by
- 114400.00
subsidiaries to minority shareholders
Subtotal of cash outflow from financing
6632351190.76 6359190038.50
activities
Net cash flow from financing activities -204351190.76 130010590.42
IV. Impact of changes in exchange rate on
769966.77 -
cash and cash equivalents
V. Net increase in cash and cash
-73007485.18 43969617.31
equivalents
Add: Opening balance of cash and cash
2032642871.63 3426712549.26
equivalents
VI. Closing balance of cash and cash
1959635386.45 3470682166.57
equivalents
Legal Representative: ZHAO Wenge Person in Charge of Finance: WANG Dong Head of Finance
Department: ZHAO Difang
Cash Flow Statement of Parent Company
January-June 2021
Unit: RMB
Item Notes Jan-Jun 2021 Jan-Jun 2020
1. Cash flow for operating activities:
Cash received from selling goods and
1118280046.33 215927804.72
providing labor services
Cash received for taxes and surcharges
23527341.26 -
refunded
Other cash received related to operating
1789613350.06 136220582.47
activities
Subtotal of cash inflow from operating
2931420737.65 352148387.19
activities
Cash paid for purchasing goods and
154026249.28 244988576.96
receiving labor services
Cash paid to and for employees 222414525.26 227142936.38
Taxes and surcharges paid 492951916.52 433944546.40
Other cash paid related to operating
1990862090.20 504258445.05
activities
Subtotal of cash outflow from
2860254781.26 1410334504.79
operating activities
Net cash flow from operating activities 71165956.39 -1058186117.60
II. Cash flow for investment activities:
Cash received from investment 5052210999.83 2243593538.47
Cash received from investment income 99366646.00 21358547.58
Net cash received from disposal of
property plant and equipment intangible 42716005.31 -
assets and other long-term assets
Other cash received related to investing
1326599831.00 135595485.59
activities
Subtotal of cash inflow from investing
6520893482.14 2400547571.64
activities
Cash paid for acquisition of property
plant and equipment intangible assets and 970900182.64 1114320349.50
other long-term assets
Cash paid for investment 3985050918.27 415508687.71
Other cash paid related to investing
1492745800.00 -
activities
Subtotal of cash outflow for investing
6448696900.91 1529829037.21
activities
Net cash flow from investing 72196581.23 870718534.43
activities
III. Cash flow for financing activities:
Cash received for obtaining loans 1422000000.00 4490000000.00
Cash received from bond issuance 5000000000.00 1999200628.92
Subtotal of cash inflow from financing
6422000000.00 6489200628.92
activities
Cash paid for debt paying 6232000000.00 6200000000.00
Cash paid for distribution of dividends
400351190.76 158618038.50
and profits or payment for interest
Subtotal of cash outflow from
6632351190.76 6358618038.50
financing activities
Net cash flow from financing
-210351190.76 130582590.42
activities
IV. Impact of changes in exchange rate
on cash and cash equivalents
V. Net increase in cash and cash
-66988653.14 -56884992.75
equivalents
Add: Opening balance of cash and cash
1885867436.92 3305541700.68
equivalents
VI. Closing balance of cash and cash
1818878783.78 3248656707.93
equivalents
Legal Representative: ZHAO Wenge Person in Charge of Finance: WANG Dong Head of Finance
Department: ZHAO Difang
Consolidated Statement of Changes in Owners’ Equity
January-June 2021
Unit: RMB
Jan-Jun 2021
Equity attributable to equity holders
Item Minority
Total owner's
Other shareholders' equity
Paid-in capital Less: treasury Retained equity
Capital reserves comprehensiv Surplus reserve Subtotal
(share capital) stocks earnings
e income
I. Closing
balance of the
5489914176.0 1594906524.6 137298000.0 1364257808.5 5168298206.5 13558228377.0 16481000.1 13574709377.2
same reporting 78149661.33
0 7 0 8 0 8 6 4
period of
previous year
II. Opening
5489914176.0 1594906524.6 137298000.0 1364257808.5 5168298206.5 13558228377.0 16481000.1 13574709377.2
balance of the 78149661.33
0 7 0 8 0 8 6 4
current year
III. YoY
change
(decrease is 17010813.12 -57153335.28 548569181.25 508426659.09 2864473.65 511291132.74
indicated by
“-”)
(1) Total
comprehensiv -57153335.28 850514460.93 793361125.65 -3288668.36 790072457.29
e income
(2) Capital
invested and
17010813.12 17010813.12 6153142.01 23163955.13
reduced by
owner
1．Common
shares
6000000.00 6000000.00
contributed by
owners
3. Amount of
share-based
17010813.12 17010813.12 153142.01 17163955.13
payment into
owner’s equity
(III) Profits
-301945279.68 -301945279.68 -301945279.68
distribution
3．Distribution
-301945279.68 -301945279.68 -301945279.68
to owners (or
shareholders)
IV. Closing
5489914176.0 1611917337.7 137298000.0 1364257808.5 5716867387.7 14066655036.1 19345473.8 14086000509.9
balance of the 20996326.05
0 9 0 8 5 7 1 8
current period
Jan-Jun 2020
Equity attributable to equity holders
Item Minority
Total owner's
shareholders'
Other equity
Paid-in capital Retained equity
Capital reserves comprehensiv Surplus reserve Subtotal
(or equity) earnings
e income
I. Closing
balance of the
5443214176.0 1524183779.6 1236166911.8 4750787389.1 13020619449.3 13084299083.2
same reporting 66267192.74 63679633.85
0 4 1 7 6 1
period of
previous year
II. Opening
5443214176.0 1524183779.6 1236166911.8 4750787389.1 13020619449.3 13084299083.2
balance of the 66267192.74 63679633.85
0 4 1 7 6 1
current year
III. YoY
change
-28148773.1
(decrease is -15959450.81 -6851012.93 719595308.66 696784844.92 668636071.820
indicated by
“-”)
(1) Total
comprehensiv -6851012.93 719595308.66 712744295.73 446361.37 713190657.10
e income
(2) Capital
invested and -28595134.4
-15959450.81 -15959450.81 -44554585.28
reduced by 7
owner
1．Common
shares
4000000.00 4000000.00
contributed by
owners
-32595134.4
4．Others -15959450.81 -15959450.81 -48554585.287
IV. Closing
5443214176.0 1508224328.8 1236166911.8 5470382697.8 13717404294.2 13752935155.0
balance of the 59416179.81 35530860.75
0 3 1 3 8 3
current period
Legal Representative: ZHAO Wenge Person in Charge of Finance: WANG Dong Head of Finance Department: ZHAO Difang
Statement of Changes in Owners’ Equity of Parent Company
January-June 2021
Unit: RMB
Jan-Jun 2021
Other
Item Paid-in capital (share Less: treasury Total owner's
Capital reserves comprehensive Surplus reserve Retained earnings
capital) stocks equity
income
I. Closing balance of
the same reporting 5489914176.00 1833256515.22 137298000.00 81473183.84 1364204332.75 5383365299.69 14014915507.50
period of previous year
II. Opening balance of
5489914176.00 1833256515.22 137298000.00 81473183.84 1364204332.75 5383365299.69 14014915507.50
the current year
III. YoY change
(decrease is indicated 10920930.43 -55501596.91 656082796.14 611502129.66
by “-”)
(1) Total
-55501596.91 958028075.82 902526478.91
comprehensive income
(2) Capital invested
10920930.43 10920930.43
and reduced by owner
3. Amount of
share-based payment 10920930.43 10920930.43
into owner’s equity
(III) Profits distribution -301945279.68 -301945279.68
2. Distribution to owner
-301945279.68 -301945279.68
(or shareholders)
IV. Closing balance of
5489914176.00 1844177445.65 137298000.00 25971586.93 1364204332.75 6039448095.83 14626417637.16
the current period
Item Jan-Jun 2020
Paid-in capital (share Other comprehensive
Capital reserves Surplus reserve Retained earnings Total owner's equity
capital) income
I. Closing balance of the
same reporting period of 5443214176.00 1489516614.19 66421903.33 1236113435.98 4363644248.36 12598910377.86
previous year
II. Opening balance of the
5443214176.00 1489516614.19 66421903.33 1236113435.98 4363644248.36 12598910377.86
current year
III. YoY change (decrease is
-1420000.00 -6584935.23 740575391.30 732570456.07
indicated by “-”)
(1) Total comprehensive
-6584935.23 740575391.30 733990456.07
income
(2) Capital invested and
-1420000.00 -1420000.00
reduced by owner
4．Others -1420000.00 -1420000.00
IV. Closing balance of the
5443214176.00 1488096614.19 59836968.10 1236113435.98 5104219639.66 13331480833.93
current period
Legal Representative: ZHAO Wenge Person in Charge of Finance: WANG Dong Head of Finance Department: ZHAO Difang
III. Basic information of the Company
1. Company profile
√Applicable □Not applicable
Zhejiang China Commodities City Group Co. Ltd. (the “Company”) is a
company limited 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.2. Consolidation scope of financial statements
√Applicable □Not applicable
The consolidation of financial statements is determined on the basis of control.For the changes in the current year please refer to Note VIII. Changes in
consolidation scope
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
Because of the period of the Company's business the 12-month cycle is used
to classify current assets and current liabilities.4. Bookkeeping currency
The Company’s functional currency is RMB.The Group uses RMB as its functional currency and in the preparation 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
and business mergers not under the same control.Business merger under the same control
Merger of the enterprises under common control refers to the merger of the
enterprises that are under ultimate control of the same party or parties before and
after the merger and the control is not temporary. For a merger of the enterprises
under common control the party obtaining control over the other(s) involved in the
merger on the date of merger is the merging party and the other(s) is(are) the
merged party. The 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.Mergers of the enterprises not under common control
Merger of the enterprises not under common control refers to the merger of the
enterprises that are not under ultimate control of the same party or parties before
and after the merger. For a merger of the enterprises not under common control
the party obtaining control over the other(s) involved in the merger on the date of
acquisition is the acquirer and the other(s) is(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 or
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 or 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 gains or losses other
comprehensive income and profit distribution shall be recognized in the profit or
loss for the period where the date of acquisition falls.6. Preparation method of consolidated financial statements
√Applicable □Not applicable
The financial statements to be consolidated is determined on the basis of
control 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 financial 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 equivalents refer to the short-term (generally three months from the date
of purchase) and highly liquid investments that are readily convertible to known
amounts of cash and have a very low risk of change in value.9. Foreign currency transactions and translation of foreign currency financial
statements
√Applicable □Not applicable
For foreign currency transactions the Group will translate the foreign 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 or 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 or 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 or 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 collect cash flow from the financial asset has expired;
(2) The right to collect cash flows of financial assets has been transferred or
the obligation to pay the collected cash flows in full and in time to a third party under
the “handover agreement” has been undertaken; and (a) all risks and rewards in the
ownership of the financial assets have been substantially transferred or (b) almost
all risks and rewards in the ownership of the financial asset have been neither
transferred nor retained but control of the financial asset has been waived.If a financial liability has been fulfilled revoked or expired it will be
derecognized. If an 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 will be recognized and the difference will be
recognized in the profit or loss for the current period.For the transactions of financial assets in regular ways the recognition and
de-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 or 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 or loss for the current period the
related transaction fees will be directly recognized in the profit or 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 gains or
losses from the de-recognition modification or impairment thereof are all
recognized in the profit or loss for the current period.Investment in the equity instruments that are measured by fair value and
of which the changes in fair value are recognized in other comprehensive
income
The Group has irrevocably chosen to designate some non-trading 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 or 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 gains or losses 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 or 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 or loss for the current period.Classification and measurement of financial liabilities
The Group’s financial liabilities are classified at initial recognition into the
financial liabilities that are measured by fair value and of which the changes in fair
value are recognized in the profit or loss for the current period 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 or loss for the current period the
related transaction fees are recognized directly in the profit or 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 or loss for the current period
include financial liabilities held for trading (including the derivative instruments as
financial liabilities) and the liabilities that are designated 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 or 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 or 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 the accounts receivable and contract assets without material financing
components the Group uses a simplified method and measures the provision for
loss based on the amount of expected credit loss during the entire term.For financial assets other than those under above-mentioned simplified
measurement method the Group assesses whether its credit risk has increased
significantly since the initial recognition on each balance sheet date. If the credit risk
has not increased significantly since the initial recognition it is in the first stage and
the Group will measure the loss provision at the amount equivalent to the expected
credit losses in the next 12 months and calculate the interest income based on the
book balance and the actual interest rate; if the credit risk has increased
significantly since the initial recognition but no credit impairment has occurred it is
in the second phase and the Group will measure the loss provision at the amount
equivalent to the expected credit loss during the entire duration and calculates the
interest income based on the book balance and the actual interest rate; if the credit
impairment occurs after initial recognition it is in the third stage and the Group will
measure the loss provision at the amount equivalent to the expected credit loss
during the entire duration and calculate the interest income based on the amortized
cost and the actual 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.For the disclosure of the Group’s criteria for a significant increase in credit risk
definition of the assets whose credit has been impaired and assumptions for the
measurement of expected credit loss please refer to Notes X. 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 expected credit loss of accounts
receivable
√Applicable □Not applicable
Please refer to Notes X. Risks Associated with Financial Instruments
13. Accounts receivable financing
□Applicable √Not applicable
14. Other receivables
Determination and accounting treatment of the expected credit loss of other receivables
√Applicable □Not applicable
Please refer to Notes X. Risks Associated with Financial Instruments
15. 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 or 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 or 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
Determination and accounting treatment of the expected credit loss of debt investments
□Applicable √Not applicable
19. Other debt investments
Determination and accounting treatment of the expected credit loss of other debt
investments
□Applicable √Not applicable
20. Long-term receivables
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 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. 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 or 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 gains or losses 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 gains or losses and other comprehensive income realized by
the investees to be enjoyed or assumed. The share in the investee’s net gains or
losses 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 gains or losses from the internal transactions with its
associates and joint ventures that is attributable to the investor based on the share
to be enjoyed by it (but if the loss from internal transactions falls 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 gains or losses 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 gains or losses 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 gains or losses other comprehensive income and
profit distribution will be recognized in the profit or loss for the current period pro
rata.Where the Company loses control over a subsidiary due to step-by-step
disposal of its 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 or loss for the current
period.22. Investment real estate
(1). Under cost measurement model
Depreciation or amortization methods
A property investment is a real estate property held with the intention of 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 a 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 or 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:
Type 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 or loss for the current period at the time of being
incurred.Fixed assets are initially measured by cost. The costs of purchasing a fixed
asset include 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 Residual value
Type period depreciation
method rate
(number of 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 or 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) the expenses on assets have been incurred;
(2) the borrowing costs have been incurred;
(3) The purchase construction or production activities necessary to make the
asset reach the intended usable or saleable status have started.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 or loss for the current period.During capitalization the amount of interest to be capitalized during each
accounting period is determined as follows:
(1) For special borrowings the amount of interest to be capitalized is the
interest expenses actually incurred during the current period less the temporary
deposits interest income or investment income.
(2) For occupied general borrowings it is calculated and determined based on
the weighted average of asset expenditures of the accumulated asset expenditure
exceeding the portion of special borrowings multiplied 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 or 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
On the commencement date of the lease term the Group recognizes its right to
use the leased assets during the lease term as the right to use them including: the
initial measurement amount of the liabilities of the lease; The amount of the lease
payment paid on or before the commencement date of the lease term where there
is a lease incentive shall be deducted from the amount of the lease incentive
already enjoyed; Initial direct costs incurred by lessee; Costs expected to be
incurred by the Lessee to disassemble and remove the leased asset restore the
leased asset to the site or restore the leased asset to the state agreed upon in the
lease terms. The Group subsequently shall adopt the straight-line method for the
depreciation of the usufruct assets. Where the ownership of the leased asset can
be reasonably determined at the end of the lease term the Group shall take
depreciation during the remaining service life of the leased asset. Where it is not
reasonably certain that ownership of the leased asset will be acquired at the end of
the lease term the Group shall make depreciation within the shorter period of the
lease term or the remaining service life of the leased asset.When the Group measures the lease liabilities again according to the present
value of the changed lease payment amount and adjusts the book value of the right
to use assets accordingly if the book value of the right to use assets has been
reduced to zero but the lease liabilities still need to be further reduced the Group
shall record the remaining amount into the current profit and loss.29. Intangible assets
(1). Measurement method service life and impairment test
√Applicable □Not applicable
Intangible assets will be recognized only if the economic benefits relating
thereto are very 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 intangible assets is determined according to the period
during which they can bring economic benefits to the Group. If the period during
which they can bring economic benefits to the Group cannot be determined they
will be classified as intangible assets with uncertain service life.The service life of intangible assets is as follows:
Type Service life
Land use rights 40-50 years
Software 10 years
The 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 assets or
the intangible assets themselves. Intangible assets that will be used internally can
prove their usefulness; there are sufficient technology financial resources and other
resource supports to complete 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 life the Group carries
out impairment tests at least at the end of each year regardless of the impairment
signs. For the intangible assets that have not been ready for use 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 identified 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 or 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:
Type Amortization period
Architectural ornaments of buildings 3-5 years
Advertising facilities 3-5 years
32. Contract liabilities
Recognition of contract liabilities
√Applicable □Not applicable
The Group presents contractual assets or contractual liabilities in the balance
sheet based 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 salary
(1)、Accounting treatment of short-term salary
√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.
(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 or 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
At the commencement date of the lease period the Group recognizes the present
value of the outstanding lease payments as a lease liability except for short term
and low value leases. In calculating the present value of the lease payments the
Group uses the lease embedded interest rate as the discount rate; If the inherent
interest rate of the lease cannot be determined the lessee's incremental borrowing
rate shall be used as the discount rate. The Group calculates the interest expense
of the lease liability in each period of the lease term in accordance with the fixed
cyclical interest rate and records it into the current profit and loss except as
otherwise stipulated in the cost of the relevant assets. The variable lease payment
not included in the measurement of lease liabilities shall be recorded into the profit
and loss of the current period when it actually occurs except for those included in
the cost of related assets as otherwise stipulated.After the lease term begins in the future when substantial changes occurred in the
fixed payment the guaranteed residual value is expected to cope with the amount
of change is used to determine the lease payment ratio index or change call
options renewal options or terminate the option evaluation results or the actual
exercise changes after the Group according to the change of the present value of
the lease payments to measure lease liability.35. Estimated liabilities
√Applicable □Not applicable
Except for the contingent considerations and contingent liabilities assumed in
the mergers 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) The obligation is a current obligation assumed by the Group;
(2) The performance of the obligation may result in the outflow of economic
benefits from the Group;
(3) The amount of the 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 will 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
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.
(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 will 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 or loss or against the related
costs for the period when the related costs expenses or losses are recognized. The
income-related government grants used to compensate for the related costs
expenses or losses that have been incurred are directly recognized in the profit or
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; or recognized as deferred income and included in profit and loss in
stages under a reasonable and systematic method during the service 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 service 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 or 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 differences are generated in the following
transactions: The transaction is not a business combination and when the
occurrence of the transaction affects neither accounting profits nor taxable income
or deductible losses.
(2) For deductible temporary differences related to investments in subsidiaries
joint ventures and associates if all of the following conditions are satisfied
simultaneously the corresponding deferred income tax assets are recognized: 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
balance 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
Original lease rules
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 or loss for the current period with the straight-line method during
each period of the lease terms; contingent rentals are recognized in the profit or
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 is recognized in the profit or loss for
the current period with the straight-line method during each period of the lease
terms; contingent rentals are recognized in the profit or 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 and payment 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
rental 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
Original lease rules
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 or 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
When the Group is the lessee it shall on the commencement date of the lease
recognize the use-right assets and lease liabilities in addition to the short-term
leases and low-value asset leases which are chosen to adopt simplified treatment.After the commencement of the lease period the Group uses the cost model for
subsequent measurement of the right to use assets. The use right assets are
depreciation with reference to the related depreciation regulations in the
“Accounting Standards for Business Enterprises No. 4—Fixed Assets”. Where the
ownership of the leased asset can be reasonably determined at the end of the lease
term the Group shall take depreciation during the remaining service life of the
leased asset. Where it is not reasonably certain that ownership of the leased asset
will be acquired at the end of the lease term the Group shall make depreciation
within the shorter period of the lease term or the remaining service life of the leased
asset. The Group determines whether the use right assets is impaired inaccordance with the “Accounting Standards for Business Enterprises No. 8-AssetImpairment” and accounts for the identified impairment losses. The Group
calculates the interest expense of the lease liability in each period of the lease term
in accordance with the fixed cyclical interest rate and records it into the current profit
and loss. For those that should be included in relevant assets costs in accordancewith the provisions in the “Accounting Standards for Business Enterprises No.17-Borrowing Costs” and other standards the provisions shall be implemented.Where the Group acts as the lessor it shall during each period of the lease
term adopt the straight line method to recognize the lease receipts from the
operating lease as rental income. Capitalizing the initial direct expenses incurred in
connection with the operating lease apportionment during the lease term on the
same basis as the recognition of rental income and recording them into current
profits and losses in stages. For fixed assets in operating leased assets the Group
adopts the depreciation policy for similar assets. Other operating leased assets
shall be amortized in a systematic and reasonable manner in accordance with the
applicable accounting standards for business enterprises for such assets. Inaccordance with the “Accounting Standards for Business Enterprises No. 8-AssetImpairment” the Company determines whether there is any impairment of assets
under operating lease and performs corresponding accounting treatments.43. Other important accounting policies and accounting estimates
√Applicable □Not applicable
Distribution of profits
The Company’s cash dividend is recognized as liabilities after approval by 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
In the preparation of financial statements the management need to make
judgments estimates and assumptions which will affect the presented amounts
and disclosure of revenue expenses assets and liabilities and the disclosure of
contingent liabilities on the balance sheet date. However the uncertainties of these
assumptions and estimates may cause material adjustment to the book value of the
assets or liabilities that will be affected in the future.Judgments
When applying the Group’s accounting policies the management have made
the 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 Maturity date s 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
Remarks
Contents and reason for changes in Approving
(substantially affected
accounting policies procedure
items and amounts)
In 2018 the Ministry of Financerevised and issued the “AccountingStandards for Business Enterprises No.21-Leases” (Cai Kuai [2018] No. 35) Changes in
(hereinafter collectively referred to as statutory See other notes for
the “New Standard for Lease”). The accounting details
company will disclose the accounting policies
statements according to the
requirements of the New Standard for
Lease.Other notes:
In accordance with the New Standard for Lease the Group presented all
leases other than short-term leases and low-value leases with the Group as the
lessee on January 1 2021 in the statements and recognized the use right assets
and lease liabilities. The quantitative impact of the above changes on the specific
financial statement items is: On January 1 2021 the consolidated balance sheet
reduced the prepayment by RMB 13149903.82 and increased the use right
assets and lease liabilities by RMB 185837176.77 and RMB 172687272.95
respectively.
(2). Changes in important accounting estimates
□Applicable √Not applicable
(3). The adjustment of the current opening financial statements for the first
implementation of the New Standard for Lease from 2021
√Applicable □Not applicable
Consolidated Balance Sheet
Unit: RMB
December 31
Item January 1 2021 Adjustment2020
Current assets:
Monetary capital 5612642932.21 5612642932.21
Held-for-trading 51712734.31 51712734.31
financial assets
Accounts Receivable 153573476.86 153573476.86
Prepayments 105187528.26 92037624.44 -13149903.82
Other receivables 2708478136.25 2708478136.25
In which: interest 121401210.48 121401210.48
receivable
Inventories 1329467728.17 1329467728.17
Other current assets 179724694.17 179724694.17
Total current 10140787230.23 10127637326.41 -13149903.82
assets
Non-current assets:
Long-term 126756573.81 126756573.81
receivables
Long-term equity 3832897502.71 3832897502.71
investment
Other equity 662256342.79 662256342.79
instruments investment
Other non-current 1523925249.81 1523925249.81
financial assets
Investment real 1960426291.73 1960426291.73
estate
Property plant and 5234293786.87 5234293786.87
equipment
Construction in 982891877.14 982891877.14
progress
Right-of-use assets 185837176.77 185837176.77
Intangible assets 3900780981.92 3900780981.92
Development 22223061.09 22223061.09
expenditures
Long-term deferred 110728723.36 110728723.36
expenses
Deferred tax assets 99664328.84 99664328.84
Other non-current 152495196.56 152495196.56
assets
Total non-current 18609339916.63 18795177093.40 185837176.77
assets
Total assets 28750127146.86 28922814419.81 172687272.95
Current liabilities:
Short-term loans 1257179389.40 1257179389.40
Accounts payable 636463802.23 636463802.23
Advances from 112752897.25 112752897.25
customers
Contract liabilities 2442211788.88 2442211788.88
Employee 161498997.53 161498997.53
compensations
payable
Taxes payable 495400499.73 495400499.73
Other payables 1646345561.62 1646345561.62
Non-current liabilities 1315026574.4 1315026574.4
due within one year
Other current 3023608041.68 3023608041.68
liabilities
Total current 11090487552.75 11090487552.75
liabilities
Non-current liabilities:
Long- term loans 282000000.00 282000000.00
Bonds payable 3552161709.68 3552161709.68
Lease liabilities 172687272.95 172687272.95
Estimated liabilities 110620306.10 110620306.10
Deferred incomes 26545277.30 26545277.30
Deferred income tax 113602923.79 113602923.79
liabilities
Total non-current 4084930216.87 4257617489.82 172687272.95
liabilities
Total Liabilities 15175417769.62 15348105042.57 172687272.95
Owners' equity (or shareholders' equity):
Paid-in capital (or 5489914176.00 5489914176.00
equity)
Capital reserves 1594906524.67 1594906524.67
Less: treasury stocks 137298000.00 137298000.00
Other 78149661.33 78149661.33
comprehensive income
Surplus reserve 1364257808.58 1364257808.58
Retained earnings 5168298206.50 5168298206.50
Total owner’s equity
(or shareholders’ 13558228377.08 13558228377.08
equity) attributable to
the parent company
Minority
16481000.16 16481000.16
shareholders' equity
Total owner’s
equity (or shareholders’ 13574709377.24 13574709377.24
equity)
Total liabilities
and owners’ equity (or 28750127146.86 28922814419.81 172687272.95
shareholders’ equity)
Statements on item adjustment:
√Applicable □Not applicableIn 2018 the Ministry of Finance revised and issued the “Accounting Standardsfor Business Enterprises No. 21-Leases” (Cai Kuai [2018] No. 35) (hereinafter
collectively referred to as the “New Standard for Lease”). The Company will
disclose the accounting statements according to the requirements of the New
Standard for Lease. In accordance with the standard transmit regulations the
Company retrospectively adjusted the figures for the beginning of 2021. The right to
use assets and lease liabilities shall be confirmed in accordance with the lease
contract and the leases originally included in the prepayments shall be transferred
to the right to use assets.Balance Sheet of Parent Company
Unit: RMB
December 31
Item January 1 2021 Adjustment2020
Current assets:
Monetary capital 5435867497.50 5435867497.50
Held-for-trading 6632.72 6632.72
financial assets
Accounts Receivable 14671577.47 14671577.47
Prepayments 29452445.04 29371534.38 -80910.66
Other receivables 2651640610.06 2651640610.06
In which: interest 121401210.48 121401210.48
receivable
Inventories 10144965.06 10144965.06
Other current assets 3082340716.76 3082340716.76
Total current 11224124444.61 11224043533.95 -80910.66
assets
Non-current assets:
Long-term 61250000.00 61250000.00
receivables
Long-term equity 6083135428.02 6083135428.02
investment
Other equity 662256342.79 662256342.79
instruments investment
Other non-current 266722811.41 266722811.41
financial assets
Investment real 1501734504.79 1501734504.79
estate
Property plant and 4444239239.28 4444239239.28
equipment
Construction in 856248099.10 856248099.10
progress
Right-of-use assets 716801.15 716801.15
Intangible assets 3777092772.41 3777092772.41
Long-term deferred 58705952.97 58705952.97
expenses
Deferred tax assets 85739381.21 85739381.21
Total non-current
17797124531.98 17797841333.13 716801.15
assets
Total assets 29021248976.59 29021884867.08 635890.49
Current liabilities:
Short-term loans 1257179389.40 1257179389.40
Accounts payable 444254309.61 444254309.61
Advances from 97380931.49 97380931.49
customers
Contract liabilities 2283994068.70 2283994068.70
Employee 131469702.81 131469702.81
compensations payable
Taxes payable 546100633.28 546100633.28
Other payables 1333312494.36 1333312494.36
Non-current liabilities 1315026574.43 1315026574.43
due within one year
Other current 3556664822.79 3556664822.79
liabilities
Total current 10965382926.87
10965382926.87
liabilities
Non-current liabilities:
Long- term loans 282000000.00 282000000.00
Bonds payable 3552161709.68 3552161709.68
Lease liabilities 635890.49 635890.49
Estimated liabilities 110620306.10 110620306.10
Deferred incomes 26545277.30 26545277.30
Deferred income tax 69623249.14 69623249.14
liabilities
Total non-current 4040950542.22 4041586432.71 635890.49
liabilities
Total Liabilities 15006333469.09 15006969359.58 635890.49
Owners' equity (or shareholders' equity):
Paid-in capital (or 5489914176.00 5489914176.00
equity)
Capital reserves 1833256515.22 1833256515.22
Less: treasury stocks 137298000.00 137298000.00
Other comprehensive 81473183.84 81473183.84
income
Surplus reserve 1364204332.75 1364204332.75
Retained earnings 5383365299.69 5383365299.69
Total owner’s
equity (or shareholders’ 14014915507.50 14014915507.50
equity)
Total liabilities
and owners’ equity (or 29021248976.59 29021884867.08 635890.49
shareholders’ equity)
Statements on item adjustment:
□Applicable √Not applicable
(4). Explanation of the retrospective adjustment of the previous comparative data for the
first implementation of the New Standard for Lease from 2021.√Applicable □Not applicable
The Group presented all leases other than short-term leases and low-value
leases with the Group as the lessee on January 1 2021 in the statements and
recognized the use right assets and lease liabilities. The quantitative impact of the
above changes on the specific financial statement items is: On January 1 2021 the
consolidated balance sheet reduced the prepayment by RMB 13149903.82 and
increased the use right assets and lease liabilities by RMB 185837176.77 and
RMB 172687272.95 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 The Company is a general taxpayer.rendering of taxable The taxable income is calculated at
service 13% 9% and 6% tax rates as output
tax and the value-added tax is
calculated and paid on the basis of
the difference after deduction of the
input tax allowed to be deducted in
the current period. In addition for
the sale of the self-developed old
real estate projects (the contract
start date indicated in the“Construction Project ConstructionPermit” is before April 30 2016) and
the lease of the real estate acquired
before April 30 2016 the simplified
tax calculation method shall apply at
the rate of 5%.Urban Indirect tax actually paid 5% or 7%
maintenance
and construction
tax
Corporate Domestic enterprises should pay
income tax 25% of the taxable income of
corporate income tax; Yiwu China
Commodities City (Hong Kong)
International Trade Co. Ltd. was
registered in Hong Kong Special
Administrative Region so it is
subject to the Hong Kong income tax
rate 16.50%;
BETTER SILK ROAD FZE was
registered in Dubai and no corporate
income tax is levied.Land Ratio of appreciation Four-bracket progressive tax rate
appreciation tax value to deductible items (30%～60%)
Property tax If the tax is levied 1.2% or 12%
according to price the
amount is 1.2% of the
balance of the original
value of the property
after a 30% deduction; if
the tax is levied
according to rental the
amount is 12% of the
rental income.Education 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 16.50
Kong) International Trade Co. Ltd.BETTER SILK ROAD FZE 0
2. Tax preference
√Applicable □Not applicableAccording to the notice “Measures of Yiwu for Implementation of Adjustment ofUrban Land Use Tax Policies to Promote the Intensive and Economical Utilizationof Land” (Y D S H [2017] No. 56) the Company enjoys tax incentive of exemption
from 90% of land use tax according to the statistical caliber of taxation on acres.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 203319.92 292999.29
Bank Deposits 3019405717.31 4812189759.31
Other monetary capital 26409.90 800160173.61
Total 3019635447.13 5612642932.21
In which: amount deposited 27247689.61 25679209.72
abroad
Other notes:
For the cash and cash equivalents which are restricted in use please refer to
Notes VII.81 Assets with Restricted Title or Right of Use.Interest income of demand deposits is accrued based on the demand deposit
rates of banks. The term of short-term time deposits ranges from three months to
half a year and depends on 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 57568002.17 51712734.31
current profit and loss
Among them
Bank financing products 8500000.00 -
Equity instrument investment 49068002.17 51712734.31
Total 57568002.17 51712734.31
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
(6). Provisions for bad debts
□Applicable √Not applicable
(7). Notes receivable actually written off during the current period
□Applicable √Not applicable
Other notes:
□Applicable √Not applicable
5. Accounts Receivable
(1). Disclosure based on account age
√Applicable □Not applicable
Unit: RMB
Age Closing book balance
Within 1 year 139343225.15
1 to 2 years 111942.00
2 to 3 years 285968.46
Above 3 years 6118.00
Less: bad debt provision for accounts 143685.77
receivable
Total 139603567.84
(2). Categorized disclosure based on the bad debt provision method
√Applicable □Not applicable
Unit: RMB
Closing balance Opening balance
Bad debt Bad debt
Book balance Book balance
provision provision
Type Provisi Book Provisi Book
on value on value
Amount (%) Amount Amount (%) Amount
ratio ratio
(%) (%)
Account
s
receiva
ble for
which
bad 92169507 65. 92169507 90795847 59. 90795847
- - - -
debt .54 95 .54 .76 07 .76
provisio
n is
made
individu
ally
Account
s
receiva
ble for
which
bad 47577746 34. 143685 47434060 62907905 40. 130276 62777629
0.30 0.21
debt .07 05 .77 .30 .93 93 .83 .10
provisio
n is
made
by
group
13974725 143685 13960356 15370375 130276 15357347
Total / / / /
3.61 .77 7.84 3.69 .83 6.86
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
End of June 2021
Estimated book Expected credit Expected credit
Age
balance in default loss rate (%) loss in whole
duration
Within 1 year 47173717.61 0.13 60439.05
1 - 2 years 111942.00 8.79 9839.08
2 -3 years 285968.46 23.53 67289.64
Above 3 years 6118.00 100.00 6118.00
Total 47577746.07 143685.77
(3). Provisions for bad debts
√Applicable □Not applicable
Unit: RMB
Amount of change during the current period
Opening Recover Charge-of Other Closing
Type
balance Accrual y or f or change balance
reversal write-off s
Bad debt
provision
for 130276.8 13408.9 143685.7
- - -
accounts 3 4 7
receivabl
e
Total 130276.8 13408.9 143685.7
- - -
3 4 7
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 operation hotel services and
commodity sales and the balance of receivables is mainly based on the market
operation of commercial rate receivables hotel consumption trade receivables and
advertising publishing fees. As of June 30 2021 the analysis on the top five entities
in terms of the the balance of accounts receivable is as follows:
Unit: RMB
Yuan
Percentage in the
Balance of bad balance of
Balance
debt provision accounts
receivable (%)
Total balance of
the accounts
137348630.74 57883.58 98.28
receivable with the
top five entities
(6). Accounts receivable derecognized due to transfer of financial assets
□Applicable √Not applicable
(7). Amounts of assets and liabilities formed by the transfer of accounts receivable and
continuing involvement
□Applicable √Not applicable
Other notes:
□Applicable √Not applicable
6. Accounts receivable financing
□Applicable √Not applicable
7. Prepayments
(1). Presentation of prepayment by age
√Applicable □Not applicable
Unit: RMB
Closing balance Opening balance
Age
Amount (%) Amount (%)
Within 1 581250317.28 97.46 89507511.37 97.24
year
1 to 2 years 13692579.73 2.30 2329113.07 2.54
2 to 3 years 1338813.85 0.22 - -
Above 3 101000.00 0.02 201000.00 0.22
years
Total 596382710.86 100 92037624.44 100
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
On June 30 2021 the top five entities in terms of the balance of prepayment
are as follows:
Unit: RMB
Proportion in the closing balance
Supplier Book balance of prepayments
(%)
JEFI AQUATECH RESOURCES SDN.BHD. 25666395.57 4.30
PACIFIC SEAFOOD TRADER SA 21511180.45 3.61
PROCESADORA DE MARISCOS DE EL ORO
13997619.48 2.35
PROMARO S.A.NEGOCIOS INDUSTRIALES REAL NIRSA S.A. 13365870.70 2.24
Zhejiang Public Information Industry Co. Ltd. 11396482.03 1.91
Total 85937548.23 14.41
Other descriptions
□Applicable √Not applicable
8. Other receivables
Presentation of items
√Applicable □Not applicable
Unit: RMB
Item Closing balance Opening balance
Interest receivable 184625160.72 121401210.48
Other receivables 2887861596.99 2587076925.77
Total 3072486757.71 2708478136.25
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 184625160.72 121401210.48
receivables
Total 184625160.72 121401210.48
(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
(4). Disclosure based on account age
√Applicable □Not applicable
Unit: RMB
Age Closing book balance
Within 1 year 2854871193.91
1 to 2 years 7384224.96
2 to 3 years 4017126.39
Above 3 years 25743430.09
Less: Provision for bad debts of other 4154378.36
receivables
Total 2887861596.99
(5). Classification based on the nature of accounts
√Applicable □Not applicable
Unit: RMB
Nature of account Closing book balance Opening book balance
Financial assistance 2791718748.00 2480172779.00
receivable from joint
ventures
Withholdings deposit and 85534352.32 59045233.81
margin
Receivables from - 42493714.00
self-operated land
Receivables from export 8977301.44 4841801.31
tax rebate
Reserve 1631195.23 523397.65
Total 2887861596.99 2587076925.77
(6). Bad debt provision
√Applicable □Not applicable
Unit: RMB
Phase I Phase II Phase III
Expected credit Expected credit Expected credit
Bad debt
loss in the loss in the entire loss in the entire Total
provision
coming 12 duration (credit has duration (credit has
months not been impaired) been impaired)
Balance as of
3768512.43 3768512.43
January 1 2021
Balance as of
January 1 2021
in the current
period
Provision made
in the current 535949.33 535949.33
period
Current reversal 120083.39 120083.39
Write-off in
30000.01 30000.01
current period
Balance as of
4154378.36 4154378.36
June 30 2021
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
(7). 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 3768512.43 535949.33 120083.39 30000.01 - 4154378.36
provision
for other
receivables
Total 3768512.43 535949.33 120083.39 30000.01 - 4154378.36
In which the recovered or reversed amount is important:
□Applicable √Not applicable
(8). Other receivables actually written off during the current period
□Applicable √Not applicable
(9). 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 Guoshen
Financial Within 1
Shangbo Property 1372000000.00 47.44 -
assistance year
Co. Ltd.Yiwu Tonghui
Financial Within 1
Shangbo Real 929728548.00 32.15 -
assistance year
Estate Co. Ltd.Yiwu Handing
Financial Within 1
Shangbo Real 489990200.00 16.94 -
assistance year
Estate Co. Ltd.Yisha Chengdu
Current Within 1
International Trade 15000000.00 0.52 -
payments year
City Co. Ltd.Hangzhou
Property Residential
Maintenance property Above 3
13180039.22 0.46 2636007.84
Funds maintenance years
Management funds
Center
Total / 2819898787.22 / 97.51 2636007.84
(10). Receivables involving government grants
□Applicable √Not applicable
(11). Other receivables derecognized due to transfer of financial assets
□Applicable √Not applicable
(12). Amounts of assets and liabilities formed by the transfer of accounts receivable and
continuing involvement
□Applicable √Not applicable
Other notes:
□Applicable √Not applicable
9. Inventories
(1). Category of inventory
√Applicable □Not applicable
Unit: RMB
Closing balance Opening balance
Provision for Provision for
inventory inventory
depreciation/pr depreciation/pr
Item Book ovision for Book ovision for
Book value Book value
balance impairment of balance impairment of
contract contract
performance performance
cost cost
Raw
245661.18 - 245661.18 402020.27 - 402020.27
materials
Finished 102207980 102207980 75506826. 75506826.- -
goods .24 .24 35 35
Developme 381426679 28303338.06 353123341 341654440 28303338.06 313351102
nt costs .54 .48 .82 .76
Developme 932153659 - 932153659 932153659 - 932153659
nt products .76 .76 .76 .76
Work-in-pro 9461945.1 - 9461945.1 8054119.0 - 8054119.0
gress 7 7 3 3
materials
Total 14254959 13971925 13577710 13294677
28303338.06 28303338.06
25.89 87.83 66.23 28.17
(2). Provision for inventory depreciation/provision for impairment of contract
performance cost
√Applicable □Not applicable
Unit: RMB
Increase in the Decrease in the
current period current period
Opening Closing
Item Charge-of
balance Accrua Other Other balance
f or
l s s
write-off
Developmen 28303338.0 - - - - 28303338.0
t costs 6 6
Total 28303338.0 28303338.0
- - - -
6 6
(3). Closing balance of inventory containing capitalized borrowing costs
√Applicable □Not applicable
On June 30 2021 the inventory with a book value of RMB 35797443.87
(December 31 2020: RMB 35797443.87) was formed by capitalization of
borrowing costs.
(4). Amortization of contract performance cost during the current period
□Applicable √Not applicable
Other notes:
√Applicable □Not applicable
Inventory-Development Cost Unit: RMB-yuan Currency: RMB
Project Opening balance Increase in the Decrease in the Closing balance
current period current period
Haicheng Phase I 67907950.27 - - 67907950.27
Business Street
Haicheng Phase II 273746490.55 39772238.72 - 313518729.27
Business Street
Total 341654440.82 39772238.72 - 381426679.54
Inventory-Developed Products Unit: RMB-yuan Currency: RMB
Project Opening balance Increase in the Delivered during Closing balance
current period current reporting
period
Haicheng Phase I 918976130.79 - - 918976130.79
Business Street
Qiantang Yinxiang 238807.22 - - 238807.22
Shuangchuang 12938721.75 - - 12938721.75
Building
Total 932153659.76 - - 932153659.76
10. Contract assets
(1). Overview of contract assets
□Applicable √Not applicable
(2). Amount of and reasons for material changes to book value during the reporting
period
□Applicable √Not applicable
(3). Provision for impairment of contract assets in the current period
□Applicable √Not applicable
Other notes:
□Applicable √Not applicable
11. Held-for -sale assets
□Applicable √Not applicable
12. Non-current assets due within one year
□Applicable √Not applicable
13. Other current assets
√Applicable □Not applicable
Unit: RMB
Item Closing balance Opening balance
Entrusted loans to the 2917329.34 3279187.50
merchants
To-be-deducted input tax 228287916.99 162435010.24
To-be-certified input tax 6071931.60 14195996.43
Less: bad debt provision for -185500.00 -185500.00
entrusted loans
Total 237091677.93 179724694.17
Other notes:
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
15. Other debt investments
(1). Overview of other debt investment
□Applicable √Not applicable
(2). Important other debt investment as of the close of the reporting period
□Applicable √Not applicable
(3). Provision for impairment
□Applicable √Not applicable
Other notes:
□Applicable √Not applicable
16. Long-term receivables
(1) Overview of long-term receivables
√Applicable □Not applicable
Unit: RMB
Closing balance Opening balance Range
of
Item Bad debt Bad debt
Book balance Book value Book balance Book value discount
provision provision
rate
Financial
assistance
receivable 186094734.90 - 186094734.90 126756573.81 - 126756573.81
from joint
ventures
Total 186094734.90 - 186094734.90 126756573.81 - 126756573.81 /
(2) Bad debt provision
□Applicable √Not applicable
(3) Long-term receivables derecognized due to transfer of financial assets
□Applicable √Not applicable
(4) Amounts of assets and liabilities formed by the transfer of long-term receivables and
continuing involvement
□Applicable √Not applicable
Other notes:
□Applicable √Not applicable
17. Long-term equity investment
√Applicable □Not applicable
Unit: RMB
Change in the current period
Investment gains or Closing balance
Opening amount Closing amount
Investee Additional losses recognized Declared a cash of impairment
Balance Others Balance
investment with the equity dividend or profit provision
method
1. Joint ventures
Yiwu Shanglv 365830756.91 12789131.55 378619888.46
Yiwu Rongshang
22319075.64 -1407757.91 20911317.73
Property Co. Ltd.Yiwu Chuangcheng
11444786.74 -2699662.50 8745124.24
Property Co. Ltd.Others 15284720.18 17850000.00 -821967.18 32312753.00 3327216.16
Subtotal 414879339.47 17850000.00 7859743.96 440589083.43 3327216.16
2. Associates
Binjiang Shangbo 154152267.42 20772839.91 98000000.00 76925107.33
Huishang
71396566.07 -1784080.98 69612485.09
Micro-finance
Yiwu Huishang
Redbud Equity
78072569.23 8320885.50 86393454.73
Investment Co.Ltd.Chouzhou
371320662.02 29458129.47 400778791.49
Financial Lease
Yiwu China
Commodities City
Investment 9508049.22
Management Co.Ltd.Yiwu China
Commodities City
Fuxing Investment 102918559.00 102918559.00
Center (limited
partnership)
Pujiang Lvgu
379672466.65 117772150.42 497444617.07
Property Co. Ltd.CCCP 1471572953.91 1225000000.00 81906773.78 -13393890.76 2765085836.93
Yiwu Hongyi Equity
Investment Fund
689756805.12 3297063.43 693053868.55
Partnership (limited
partnership)
Others 99155313.82 56342096.66 -3814550.71 35272.14 151718131.91
Subtotal 3418018163.24 1281342096.66 255929210.82 98000000.00 -13358618.62 4843930852.10 9508049.22
Total 3832897502.71 1299192096.66 263788954.78 98000000.00 -13358618.62 5284519935.53 12835265.38
Other descriptions
Provision for impairment of long-term equity investment：
Unit: RMB
Investee Opening Increase Decrease Closing
balance in the in the balance
current current
period period
Yiwu China Commodities City
Investment Management Co. Ltd. 9508049.22 - - 9508049.22
(Note 1)
Others 3327216.16 - - 3327216.16
Total 12835265.38 - - 12835265.38
Note 1: 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 established Industrial Fund Yiwu China Commodities City Fuxing Investment
Center (LLP) (hereinafter referred to as the "Funds of Funds") the Fund of Funds
has invested in 12 sub-funds including Yiwu Shangfu Chuangzhi Investment Center
(LLP) (hereinafter referred to as "Shangfu Chuangzhi Fund"). CCCF as a limited
partner subscribed RMB 998 million in the FOF accounting for 49.9% of the
subscribed capital. The paid-in capital was RMB 102.92 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 June 30 2021 the Group’s investment in the Fund of
Funds and Shangfu Chuangzhi Fund was non-related to Fuxing’s investment and
there was no indication of impairment of the underlying assets. Although they were
still frozen but without affecting the Group’s equity. Therefore there was no
impairment. However for the equity investment managed for the Yiwu CCC a full
impairment provision has been made since 2018. See Notes VII.81 and Notes XIV.1 for details.18. Other equity instruments investment
(1). Overview of other equity instruments investment
√Applicable □Not applicable
Unit: RMB
Item Closing balance Opening balance
Shenwan Hongyuan Group Co. 588254213.58 662256342.79
Ltd.Total 588254213.58 662256342.79
(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 134582725.74 134582725.75
PE investment 1378094335.77 1341220243.72
NEEQ equity investment 52846431.00 48122280.34
Total 1565523492.51 1523925249.81
Other notes:
None
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 1952906526.61 428095086.44 2381001613.05
4. Closing balance 1952906526.61 428095086.44 2381001613.05
II. Cumulative
depreciation and
amortization
1. Opening balance 352149349.88 68425971.44 420575321.32
2. Increase in the 40831270.32 5469706.56 46300976.88
current period
(1) Accruals or 40831270.32 5469706.56 46300976.88
amortization
4. Closing balance 392980620.20 73895678.00 466876298.20
III. Provision for - - -
impairment
IV. Book value
1. Opening book value 1559925906.41 354199408.44 1914125314.85
2. Closing book value 1600757176.73 359669115.00 1960426291.73
(2). Information of the investment real estate for which the property right certificate
has not yet been obtained:
√Applicable □Not applicable
Unit: RMB
Reasons for having not
Item Book value obtained the ownership
certificate
Office building of the 108069210.67 Completion settlement
auxiliary project in western not completed
Yiwu
Total 108069210.67
Other descriptions
√Applicable □Not applicable
On June 30 2021 amount of the investment real estate for which the
property right certificate has not yet been obtained was RMB 108069210.67.21. Property plant and equipment
Presentation of items
√Applicable □Not applicable
Unit: RMB
Item Closing balance Opening balance
Property plant and 5043245326.60 5234293786.87
equipment
Total 5043245326.60 5234293786.87
Other notes:
None
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 7419947051.90 3785579073.90 17844183.85 11223370309.65
2. Increase in the
2946619.06 2592653.24 271281.00 5810553.30
current period
(1) Acquisition - 2505974.59 271281.00 2777255.59
(2) Changeover from
2946619.06 86678.65 - 3033297.71
construction in progress
3. Decrease in the
- 9442337.92 397282.05 9839619.97
current period
(1) Disposal or scrap - 9442337.92 397282.05 9839619.97
4. Closing balance 7422893670.96 3778729389.22 17718182.80 11219341242.98
II. Accumulated
depreciation
1. Opening balance 2443460695.43 3061676908.45 12775451.05 5517913054.93
2. Increase in the
144652398.57 51510771.48 466947.92 196630117.97
current period
(1) Accruals 144652398.57 51510771.48 466947.92 196630117.97
3. Decrease in the
- 9229333.60 381390.77 9610724.37
current period
(1) Disposal or scrap - 9229333.60 381390.77 9610724.37
4. Closing balance 2588113094.00 3103958346.33 12861008.20 5704932448.53
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 4363617109.11 674771042.89 4857174.60 5043245326.60
2. Closing book value 4505322888.62 723902165.45 5068732.80 5234293786.87
(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
Item Book value of the property right
certificates
Huangyuan Clothing Market Completion settlement not
266148929.12
completed
CCC Hotel Completion settlement not
55177830.32
completed
Liaoning Xiliu Yiwu China Completion settlement not
424042319.75
Commodity City completed
The hotel as a auxiliary work Completion settlement not
505723716.40
for Yixi Project completed
Total 1251092795.59
Other notes:
√Applicable □Not applicable
The impairment of fixed assets was RMB 471163467.85 which was the
impairment of fixed assets of Haicheng Yiwu China Commodities City.As of June 30 2021 the amount of fixed assets for which the property right
certificate has not yet been obtained due to the pending final settlement was RMB
1251092795.59.Liquidation of property plant and equipment
□Applicable √Not applicable
22. Construction in progress
Presentation of items
√Applicable □Not applicable
Unit: RMB
Item Closing balance Opening balance
Construction in progress 2011597180.39 982891877.14
Total 2011597180.39 982891877.14
Other notes:
None
Construction in progress
(1). Overview of construction in progress
√Applicable □Not applicable
Unit: RMB
Closing balance Opening balance
Impairment Impairment
Item
Book balance Book value Book balance Book value
provision provision
West Yiwu International
Means of Production 235273844.69 235273844.69 166382416.70 166382416.70
Market Auxiliary Project
Liaoning Xiliu Yiwu China
Commodities City
32290506.33 -4635059.96 27655446.37 32290506.33 -4635059.96 27655446.37
Commerce Phase I
Project—Hotel Project
The Zhimei Dachen tourism
60444034.88 60444034.88 43194369.48 43194369.48
project
The Chian West Sea
59538399.10 59538399.10 54552839.23 54552839.23
tourism project
The renovation project of
Yindu Hotel and Office 124778522.12 124778522.12 55553736.33 55553736.33
Building
The Yiwu Comprehensive
1204416342.88 1204416342.88 505797275.02 505797275.02
Bonded Zone Project
The business station
project of the warehouse 89894127.82 89894127.82 89894127.82 89894127.82
park of the Yiwu CCC
The lighting project in Zone
29724101.17 29724101.17 29724101.17 29724101.17
IV
Zone II East Parking Lot
145961821.34 145961821.34 7346035.44 7346035.44
Project
Global Digital Free Trade
15772923.38 15772923.38 - -
Center Project
Other projects 18137616.64 18137616.64 2791529.58 2791529.58
Total 2016232240.35 -4635059.96 2011597180.39 987526937.10 -4635059.96 982891877.14
(2). Changes to important construction in progress during the current period
√Applicable □Not applicable
Unit: RMB10000
Inter
est
capi
Proporti taliz
Amoun on of In which: atio
t total Cumulative capitalize n
Opening Increase in Closing Sourc
chang project Progress amount of d interest ratio
Project Budget amount the current amount e of
ed into investm of project interest in the for
Balance period Balance funds
fixed ent in capitalized current the
assets budget period curr
(%) ent
peri
od
(%)
West Yiwu
International
Under Self-o
Means of
constructi wned/
Production 133916.00 16638.24 6889.14 23527.38 85.45 9466.76 553.06 3.65
on as a financ
Market
whole ing
Auxiliary
Project
Liaoning Xiliu
Yiwu China
Commodities Self-o
City Suspend wned/
180000.00 2765.54 - - 2765.54 96.32 154.61 -
Commerce ed financ
Phase I ing
Project—Hot
el Project
The Zhimei Under
Dachen constructi Self-o
6000.00 4319.44 1724.97 - 6044.41 100
tourism on as a wned
project whole
The
infrastruc
The Chian
ture
West Sea Self-o
6000.00 5455.28 498.56 - 5953.84 99.23 project
tourism wned
has been
project
complete
d
The
renovation Under
project of constructi Self-o
25000.00 5555.37 6922.48 - 12477.85 49.91
Yindu Hotel on as a wned
and Office whole
Building
The Yiwu Under Self-o
Comprehensi constructi wned/
624250.00 50579.73 69861.91 - 120441.64 19.29 1196.60 1196.60 3.65
ve Bonded on as a financ
Zone Project whole ing
The business
station Under
project of the constructi Self-o
19000.00 8989.41 - - 8989.41 47.31
warehouse on as a wned
park of the whole
Yiwu CCC
Under
The lighting
constructi Self-o
project in 4000.00 2972.41 - - 2972.41 -
on as a wned
Zone IV
whole
Under
Zone II East
constructi Self-o
Parking Lot 60706.00 734.60 13861.58 - 14596.18 24.04
on as a wned
Project
whole
Other Self-o
279.17 3415.22 303.33 3391.06 -
projects wned
Total 1058872.00 98289.19 103173.86 303.33 201159.72 / / 10817.97 1749.66 / /
(3). Provision made for the impairment of construction in progress in the current
period
□Applicable √Not applicable
Other descriptions
√Applicable □Not applicable
The impairment value of the project under construction is RMB 4635059.96
which is the provision impairment of Liaoning Xiliu Yiwu China Commodities City
Commerce Phase I Project—Hotel Project.Construction 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
Unit: RMB
Item Houses and buildings Total
I. Original book value
1. Opening balance 185837176.77 185837176.77
4. Closing balance 185837176.77 185837176.77
II. Accumulated depreciation
1. Opening balance - -
2. Increase in the current 6032905.14 6032905.14
period
(1) Provision 6032905.14 6032905.14
4. Closing balance 6032905.14 6032905.14
III. Provision for impairment
IV. Book value
1. Opening book value 179804271.63 179804271.63
2. Closing book value 185837176.77 185837176.77
Other notes:
None
26. Intangible assets
(1). Overview of intangible assets
√Applicable □Not applicable
Unit: RMB
Item Land use rights Software Total
I. Original book value
1. Opening balance 5390387256.44 19279040.17 5409666296.61
2. Increase in the 151101000.00 7035970.17 158136970.17
current period
(1) Acquisition 151101000.00 7035970.17 158136970.17
4. Closing balance 5541488256.44 26315010.34 5567803266.78
II. Accumulated
amortization
1. Opening 1504667791.47 4217523.22 1508885314.69
balance
2. Increase in the 68419767.05 1180188.25 69599955.30
current period
(1) Accruals 68419767.05 1180188.25 69599955.30
4. Closing balance 1573087558.52 5397711.47 1578485269.99
III. Provision for
impairment
IV. Book value
1. Opening book value 3968400697.92 20917298.87 3989317996.79
2. Closing book value 3885719464.97 15061516.95 3900780981.92
At the end of the period the percentage of the intangible assets formed through the
Company's internal research and development in the balance of intangible assets
was 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 amount Recognized Transferred Closing amount
Item Internal
Balance as into current Balance
development Others
intangible profit and
expenditure
assets loss
The
development
project for 22223061.09 11638877.71 - - - 33861938.80
platform
“chinagoods”
International - 2594339.62 - - - 2594339.62
logistics
platform
development
project
Total 22223061.09 14233217.33 - - - 36456278.42
Other notes:
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 notes:
□Applicable √Not applicable
29. Long-term deferred expenses
√Applicable □Not applicable
Unit: RMB
Amortized
Opening Increase in the Closing
Item amount in the
balance current period balance
current period
Decoration of
buildings and 107142460.81 4085879.10 24393382.04 86834957.87
structures
Advertising 3586262.55 36575.00 1978059.74 1644777.81
facilities
Total 110728723.36 4122454.10 26371441.78 88479735.68
Other notes:
None
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 Deductible Deferred tax Deferred tax
temporary temporary
assets assets
difference difference
Provision for
49487964.19 12371991.05 18551468.79 4637867.20
impairment of assets
Unrealized profits of
1094793.10 273698.28 1094793.10 273698.27
internal transactions
Deductible loss 19006883.14 4751720.79 19006883.14 4751720.78
Recognized but
180901191.31 45225297.83 268732373.15 67183093.30
unpaid liabilities
Overspent
9689617.59 2422404.40 9689617.59 2422404.41
advertising cost
Changes in the fair
value of other
83471636.00 20867909.00 81582179.51 20395544.88
non-current financial
assets
Total 343652085.33 85913021.35 398657315.28 99664328.84
(2). Deferred income tax liabilities having not been offset
√Applicable □Not applicable
Unit: RMB
Closing balance Opening balance
Item Deferred
Taxable temporary Taxable temporary Deferred income
income tax
difference difference tax liabilities
liabilities
Asset evaluation
appreciation for
merger of the
974224.40 243556.10 1068720.92 267180.23
enterprises not
under common
control
Change in fair value
of other equity
34628782.60 8657195.65 108630911.81 27157727.95
instruments
investment
Changes in the fair
value of other
347730110.89 86932527.72 343005960.28 85751490.08
non-current
financial assets
Changes in fair
value of trading - - 1706102.10 426525.53
financial assets
Total 383333117.89 95833279.47 454411695.11 113602923.79
(3). Deferred income tax assets or liabilities presented in net amount after offsetting
□Applicable √Not applicable
(4). Breakdown of unrecognized deferred income tax assets
√Applicable □Not applicable
Unit: RMB
Item Closing balance Opening balance
Deductible temporary 441165046.56 466278633.25
difference
Deductible loss 980125994.92 908844380.05
Total 1421291041.48 1375123013.30
(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
2021 34738115.44
2022 245346275.18 245346275.18
2023 145652609.01 145652609.01
2024 226329502.26 226329502.26
2025 256777878.16 256777878.16
2026 106019730.31
Total 980125994.92 908844380.05 /
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
Impairm Impairm
Item Book ent Book ent
Book value Book value
balance provisio balance provisio
n n
Prepaid
land 13825331 13825331 13825331 13825331
- -
transfer 6.00 6.00 6.00 6.00
fees
Prepaym
ent for
renovati
on works 14967128 14967128 14241880 14241880
- -
and .63 .63 .56 .56
prepaid
decorati
on rent
Prepaid
payment 67395000 67395000
for - - - -
equity .00 .00
transfer
22061544 22061544 15249519 15249519
Total - -
4.63 4.63 6.56 6.56
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 1234890481.77 1257179389.40
Total 1234890481.77 1257179389.40
Note to the classification of short-term borrowings:
None
(2). Overdue short-term borrowings
□Applicable √Not applicable
Other notes:
√Applicable □Not applicable
As of June 30 2021 the annual interest rate of the above-mentioned borrowing
is 1.20%-3.915% (December 31 2020: 1.20%-4.35%).33. Held-for-trading financial liabilities
□Applicable √Not applicable
34. Derivative financial liabilities
□Applicable √Not applicable
35. Notes payable
□Applicable √Not applicable
36. Accounts payable
(1). Presentation of accounts payable
√Applicable □Not applicable
Unit: RMB
Item Closing balance Opening balance
Accounts payable for real 40440743.90 57763664.12
estate projects
Accounts payable for 665524219.25 511789572.40
market and auxiliary works
projects
Accounts payable for 23091039.22 26767337.63
procurement for the hotel
project
Others 78345121.56 40143228.08
Total 807401123.93 636463802.23
(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 11447649.57 Settlement has not been
estate projects completed or the projects are
within the warranty periods
Total 11447649.57 /
Other notes:
√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
Rental advances 101804405.84 105773195.96
Others 6380988.65 6979701.29
Total 108185394.49 112752897.25
(2). Important advances from customers with age of over 1 year
□Applicable √Not applicable
Other notes:
√Applicable □Not applicable
As the advances from customers are mainly derived from the advance rents of
auxiliary housing businesses and investment real estate with small individual
amount. As of June 30 2021 there were no individual large-sum advances from
customers with an age of more than 1 year.38. Contract liabilities
(1). Overview of contract liabilities
√Applicable □Not applicable
Unit: RMB
Item Closing balance Opening balance
Advances from 1890268302.59 2243528509.65
customers for use fee of
commercial spaces
Advances from 3856621.50 3856621.50
customers for housing
purchase
Advances from 495200615.30 100786067.26
customers for goods
Advances from 11538314.52 10534354.07
customers for use fee of
networking cables
Advances from 86543507.04 57095601.13
customers for advertising
fee
Advances from 2262863.75 3270729.29
customers for loyalty of
brands
Others 35928503.61 23139905.98
Total 2525598728.31 2442211788.88
(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
Increase in the Decrease in the
Item Opening balance Closing balance
current period current period
I. Short-term compensations 159703155.55 191071712.41 300942771.10 49832096.86
II. Post-employment 1795841.98 15757387.86 15265582.72 2287647.12
benefits-defined contribution
plans
III. Dismissal benefits - 3092292.95 3092292.95 -
Total 161498997.53 209921393.22 319300646.77 52119743.98
(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 allowances 158575947.86 146651124.27 257068765.76 48158306.37
and subsidies
II. Employee benefits - 14325052.88 14325052.88 -
III. Social insurance premiums 965231.59 10010465.56 9803559.00 1172138.15
Including: medical insurance 887294.94 9738778.11 9543258.67 1082814.38
premiums
Work-related injury 48011.60 229147.31 216827.84 60331.07
insurance premiums
Maternity insurance 29925.05 42540.14 43472.49 28992.70
premiums
IV. Housing provident funds 110017.00 14302293.00 14325437.00 86873.00
V. Labor union funds and 51959.10 5782776.70 5419956.46 414779.34
employee education funds
Total 159703155.55 191071712.41 300942771.10 49832096.86
(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 1665658.10 15258412.83 14781498.78 2142572.15
the basic
endowment
insurance
scheme
2. Contribution to 130183.88 498975.03 484083.94 145074.97
the
unemployment
insurance
scheme
Total 1795841.98 15757387.86 15265582.72 2287647.12
Other notes:
□Applicable √Not applicable
40. Taxes payable
√Applicable □Not applicable
Unit: RMB
Item Closing balance Opening balance
VAT 27519872.91 90094604.12
Business tax -240013.55 -431783.32
Corporate income tax 181887473.04 341382542.08
Personal income tax 1219628.49 1008552.21
Urban maintenance and 1849817.52 5176906.98
construction tax
Land appreciation tax -109576320.66 -47134688.35
Property tax 121152658.95 93881697.54
land holding tax 7358993.26 5357865.24
Others 889521.46 6064803.23
Total 232061631.42 495400499.73
Other notes:
On June 30 2021 the details of the main taxes prepaid by the Group are as
follows:
Unit: RMB
Item Qiantang Oumei Total amount of
Yinxiang Center prepaid tax
Land appreciation tax 109576320.66 - 109576320.66
Business tax 240013.55 - 240013.55
Urban maintenance and - 731793.32 731793.32
construction tax
Education surcharge and - 522709.51 522709.51
local education surcharge
Total 109816334.21 1254502.83 111070837.04
41. Other payables
Presentation of items
√Applicable □Not applicable
Unit: RMB
Item Closing balance Opening balance
Other payables 1775772737.40 1646345561.62
Total 1775772737.40 1646345561.62
Other notes:
None
Interest payable
□Applicable √Not applicable
Dividend payable
□Applicable √Not applicable
Other payables
(1). Presentation of other payables by nature
√Applicable □Not applicable
Unit: RMB
Item Closing balance Opening balance
Withholdings deposit
462279739.52 584880967.08
and margin
Operating expenses
329981321.58 234420448.09
payable
Bank reserve of Zhejiang
Yiwugou E-commerce 24273488.75 23223609.46
Co. Ltd.Restricted stock
137298000.00 137298000.00
incentive plan
Pending investment 816095590.89 666512070.29
refunds
Others 5844596.66 10466.70
Total 1775772737.40 1646345561.62
(2). Important other payables with account age over 1 year
□Applicable √Not applicable
Other notes:
√Applicable □Not applicable
Since other payables mainly come from the deposits of market shops and the
bidding deposits of engineering projects with small individual amounts on June 30
2021 there were no important other payables with an aging of more than 1 year.42. Held-for-sale liabilities
□Applicable √Not applicable
43. Non-current liabilities due within one year
√Applicable □Not applicable
Unit: RMB
Item Closing balance Opening balance
Long-term borrowings 190790333.31 300634822.21
within one year
Bonds payable due 1841058896.51 1014391752.22
within 1 year
Total 2031849229.82 1315026574.43
Other notes:
None
44. Other current liabilities
√Applicable □Not applicable
Unit: RMB
Item Closing balance Opening balance
Short-term bonds payable 3019926484.02 3004009789.85
To-be-reported output tax 37554993.81 15466581.46
Dividend announced but not 2083112.65 2083112.65
collected before listing
Dividend payable to 2220922.02 2048557.72
to-be-recognized accounts
Total 3061785512.50 3023608041.68
Changes in short-term bonds payable:
√Applicable □Not applicable
Unit: RMB
Premium
Interest
Bond Face Issuing Bond Issuing Opening amount Current period and Current period Closing amount
accrued at
Name value Date Term Amount Balance Issuing discount Repayment Balance
face value
amortization
Super-short-term
November 90
commercial 100 1000000000 1002227312.68 3937070.88 1006164383.56
27 2020 days
paper
Super-short-term
December 90
commercial 100 1000000000 1000238641.55 5802454.34 1006041095.89
9 2020 days
paper
Super-short-term
December 28
commercial 100 1000000000 1001543835.62 527397.26 1002071232.88
25 2020 days
paper
Super-short-term
Jan 18 88
commercial 100 1000000000 1000000000 7965068.49 1007715068.49
2021 days
paper
Super-short-term
Feb 23 182
commercial 100 1000000000 1000000000 11424657.53 350684.93 1011775342.46
2021 days
paper
Super-short-term
Mar 8 88
commercial 100 1000000000 1000000000 7449863.01 1007449863.01
2021 days
paper
Super-short-term
Apr 14 90
commercial 100 1000000000 1000000000 6011369.86 216666.67 1006228036.53
2021 days
paper
Super-short-term
Jun 2 149
commercial 100 1000000000 1000000000 1842549.47 80555.56 1001923105.03
2021 days
paper
Total / / / 8000000000 3004009789.85 5000000000 44960430.84 647907.16 5029441643.83 3019926484.02
Other notes:
√Applicable □Not applicable
As of June 30 2021 the annual interest rate of the above-mentioned
short-term financing bonds was 2.84%-3.40% (December 31 2020: 2.45%-2.70%).45. Long- term loans
(1). Classification of long-term borrowings
√Applicable □Not applicable
Unit: RMB
Item Closing balance Opening balance
Credit loans 604000000.00 282000000.00
Total 604000000.00 282000000.00
Notes on the classification of long-term borrowings:
None
Other notes including the interest rate range:
√Applicable □Not applicable
On June 30 2021 the annual interest rate of the above borrowing was
2.70%-3.92% (December 31 2020: 2.70%-3.92%). For the guarantees for the
borrowings (reclassified to Non-current liabilities due within one year according to
liquidity) please refer to Notes 12-5-(4) Related-Party Guarantees
46. Bonds payable
(1). Bonds payable
√Applicable □Not applicable
Unit: RMB
Item Closing balance Opening balance
MTN 2064727206.49 2024870915.16
Bonds payable 721349232.88 1527290794.52
Total 2786076439.37 3552161709.68
(2). Change in bonds payable (excluding other financial instruments classified as
financial liabilities such as preferred shares and perpetual bonds)
√Applicable □Not applicable
Unit: RMB
Current Premium and
Bond Face Issuing Bond Issuing Opening amount Interest accrued Current period Closing amount
period discount
Name value Date Term Amount Balance at face value Repayment Balance
Issuing amortization
Medium-term
September
notes (Note 100 3 years 1000000000 - - 23554794.52 661938.82 - -
6 2019
1)
MTN July 15
100 3 years 1000000000 1017879350.82 - 19786027.39 187031.09 - 1037852409.302019
MTN October
100 3 years 1000000000 1006991564.34 - 19686849.32 196383.53 - 1026874797.19
21 2019
Corporate
June 5
bonds (Note 100 3 years 800000000 819791780.82 - 17058630.14 - 34400000.00 -2019
2)
Corporate September
100 3 years 700000000 707499013.70 - 13850219.18 - - 721349232.88
bonds 25 2019
Total / / / 4500000000 3552161709.68 - 93936520.55 1045353.44 34400000.00 2786076439.37
Note 1: The Company issued 2018 MTN (Issue 1) of RMB 1 billion in September 2018 with an
annual interest rate of 4.75% and maturity date of September 6 2021 that has been reclassified
according to liquidity to non-current liabilities due within one year in current reporting period.Note 2: The Company issued 2019 corporate bond (Issue 1) of RMB 800 million in June 2019
with an annual interest rate of 4.30% and maturity date of June 5 2022 that has been reclassified
according to liquidity to non-current liabilities due within one year in current reporting period.
(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
Basis for other financial instruments being classified as financial liabilities
□Applicable √Not applicable
Other notes:
□Applicable √Not applicable
47. Lease liabilities
√Applicable □Not applicable
Unit: RMB
Item Closing balance Opening balance
Long term lease liabilities 175878039.33 172687272.95
Total 175878039.33 172687272.95
Other notes:
Note: The Group uses the incremental borrowing rate of 3.67% when it is a
lessee as the book value of the discount rate to determine the lease liability and
measure the sue right assets.48. Long-term payables
Presentation of items
□Applicable √Not applicable
Long-term payables
□Applicable √Not applicable
Special payables
□Applicable √Not applicable
49. Long-term employee compensation payable
□Applicable √Not applicable
50. Estimated liabilities
√Applicable □Not applicable
Unit: RMB
Item Opening balance Closing balance Cause of formation
Pending L/C losses 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 some
equity in the subsidiary. As of Jun 30 2020 the matter was still pending.51. Deferred incomes
Overview of deferred income
√Applicable □Not applicable
Unit: RMB-yuan Currency; RMB
Increase in Decrease in
Opening Closing Cause of
Item the current the current
balance balance formation
period period
Asset-related
government 26545277.30 - 710736.84 25834540.46
grants
Total 26545277.30 - 710736.84 25834540.46 /
Items involving government grants:
√Applicable □Not applicable
Unit: RMB
Increase Amount
Amount
in grant recognized
included in Asset-related
Liability Opening amount in other Other Closing
non-operating or
item balance in the income in changes balance
income in the income-related
current the current
current period
period period
Subsidy for
service
industry 5510112.59 - - 133333.32 - 5376779.27 Asset-related
cluster
project
Interest
subsidy for
the
international
21035164.71 - - 577403.52 - 20457761.19 Asset-related
exhibition
center
construction
fund
Other notes:
□Applicable √Not applicable
52. Other non-current liabilities
□Applicable √Not applicable
53. Capital stock
√Applicable □Not applicable
Unit: RMB
Increase or decrease in the current period (+ -)
Provident
Opening balance Issuing funds Bonus Closing balance
new conversed Others Subtotal
shares
shares into
shares
Total 5489914176.00 - - - - - 5489914176.00
number of
shares
Other notes:
None
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
Decrease
Increase in the in the
Item Opening balance Closing balance
current period current
period
Capital surplus (share
1558612797.11 - - 1558612797.11
premium)
Other capital reserve 36293727.56 17010813.12 - 53304540.68
Total 1594906524.67 17010813.12 - 1611917337.79
Other notes including those on the changes in the current period and the reasons
therefor:
The increase in capital reserve-other capital reserve during the reporting period
was due to the Company's recognition on the share payment fee for RMB
17010813.12 during the waiting period which was included in this item
accordingly.56. Treasury shares
√Applicable □Not applicable
Unit: RMB
Increase in Decrease in
Item Opening balance the current the current Closing balance
period 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 verified by Ernst & Young Huaming Certified 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
Closing amount
Item amount Amount before tax Amount after tax Less: income Balance
Balance incurred in the attributable to taxes
current period parent company
I. Other comprehensive
income that cannot be
81473183.84 -74002129.21 -18500532.30 -55501596.91 25971586.93
reclassified into profit or
loss
Change in fair value of
other equity instruments 81473183.84 -74002129.21 -18500532.30 -55501596.91 25971586.93
investment
II. Other comprehensive
income to be reclassified -3323522.51 -1651738.37 - -1651738.37 -4975260.88
into profit or loss
Translation reserve -3323522.51 -1651738.37 - -1651738.37 -4975260.88
Total other
78149661.33 -75653867.58 -18500532.30 -57153335.28 20996326.05
comprehensive income
Other notes including those on the adjustment of the initially recognized amount of
hedged items converted from the effective part of gains or losses from cash flow
hedging:
None
58. Special reserves
□Applicable √Not applicable
59. Surplus reserve
√Applicable □Not applicable
Unit: RMB
Item Opening balance Increase in Decrease Closing balance
the current in the
period current
period
Statutory 1312373111.99 - -
1312373111.99
surplus reserve
Discretionary 40195855.68 - -
40195855.68
surplus reserve
Others 11688840.91 - - 11688840.91
Total 1364257808.58 - - 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 accrue free 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 year
Undistributed profits at the end of the 5168298206.50 4750787389.17
previous reporting period before
adjustment
Opening undistributed profits after 5168298206.50 4750787389.17
adjustment
Plus: net profits attributable to 850514460.93 926626706.42
shareholders of the parent company in
the current period
Less: withdrawal of statutory surplus - 128090896.77
reserve
Common share dividend payable 301945279.68 381024992.32
Closing undistributed profits 5716867387.75 5168298206.50
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 1877033846.97 863801815.15 1720825843.49 855681051.35
business
Other 195593880.03 61608810.26 400622950.82 13546505.12
businesses
Total 2072627727.00 925410625.41 2121448794.31 869227556.47
(2). Revenue generated from contracts
√Applicable □Not applicable
Unit: RMB
Classified by type of contract Total
Types of goods
Sales of goods 347274324.50
The use of commercial spaces in the Commodity 1368907990.72
City and its supporting services
Hotel accommodation and catering services 62730512.18
Royalty income 47497796.29
Other services 149139123.42
Classified by business area
China mainland 1975549747.11
Classified by contract period
Revenue confirmed at certain time point
Sales of goods 347274324.50
Hotel catering services 42497500.87
Other services 128086929.69
Revenue confirmed during certain time period
The use of commercial spaces in the Commodity 1368907990.72
City and its supporting services
Hotel accommodation service 20233011.31
Royalty income 47497796.29
Other services 21052193.73
Total 1975549747.11
Description of the income from contracts:
The income recognized in the current year and included in the opening book
value of contractual liabilities is as follows:
Unit: RMB
Type of contract Current period
Sales of goods 73909708.08
The use of commercial spaces in the 1355717243.98
Commodity City and its supporting services
Hotel accommodation service 9242614.59
Other services 9059873.51
Total 1447929440.16
(3). Contract performance obligations
√Applicable □Not applicable
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 City and 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 is collected 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
performance obligations that have been signed but not yet performed or not yet
completed was RMB 2525598728.31 of which:
RMB 2525598728.31 is expected to be recognized as an income in 2026
Other notes:
None
62. Taxes and surcharges
√Applicable □Not applicable
Unit: RMB
Amount in the current Amount in the previous
Item
period period
Business tax 200048.93 14045794.11
Urban maintenance and 3687622.46 2314536.16
construction tax
Education surcharge 1581474.20 991721.15
Property tax 55296306.71 51999617.07
land holding tax 5387595.00 4196070.42
Vehicle and vessel use - 32.90
tax
Stamp duty 1421427.19 2006907.56
Land appreciation tax 9038.82 5552018.39
Local education 1054316.04 661966.73
surcharge
Cultural undertaking -240.00 -
development fee
Total 68637589.35 81768664.49
Other notes:
None
63. Selling expenses
√Applicable □Not applicable
Unit: RMB
Amount in the current Amount in the
Item
period previous period
Advertising fees 19829104.82 37445306.55
Marketing expenses 39083745.14 38347950.83
Security and insurance expenses 11869661.68 8872959.16
Depreciation and amortization 356584.59 93888.35
Water electricity and fuel
1946862.81 2647286.40
expenses
Others 956971.99 479680.57
Total 74042931.03 87887071.86
Other notes:
None
64. General and administrative expenses
√Applicable □Not applicable
Unit: RMB
Item Amount in the current Amount in the
period previous period
Employee and uniform expenses 130142013.05 98049547.02
Depreciation and amortization 20578214.86 10598352.97
Intermediary expenses 4610462.83 7983319.28
Travel expenses 2715004.31 1992980.09
Office expenses 6488902.87 6236038.03
Promotion and merchants 159870.08 496350.00
introduction expenses
Lease and property management 1651675.14 556659.50
expenses
Others 352743.44 4537677.74
Total 166698886.58 130450924.63
Other notes:
None
65. R&D expenses
√Applicable □Not applicable
Unit: RMB
Item Amount in the current Amount in the
period previous period
Employee expenses 2702889.51 3834282.80
Depreciation and amortization 62670.46 284072.04
Technology R&D expenses 516473.30 12962871.10
Others 1287105.17 -
Total 4569138.44 17081225.94
Other notes:
None
66. Financial expenses
√Applicable □Not applicable
Unit: RMB
Item Amount in the current Amount in the
period previous period
Interest 173963591.17 234936097.83
Amortization of commercial paper 2406651.36 2673477.84
discount
Interest income -117153799.20 -132172237.44
Capitalized interest -17496623.81 -15494362.77
Foreign exchange gains or losses 1986636.12 -393092.75
Others 3644550.43 1722025.63
Total 47351006.07 91271908.34
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 Amount in the
current period previous period
Government subsidy for service industry 133333.32 133333.32
cluster for 2011
Interest subsidy for the international exhibition 577403.52 577403.52
center construction fund
Award for provincial service industry cluster - 550000.00
Grant for the construction and operation of the
- 1500000.00
credit data center
R&D investment award from Science and
- 978100.00
Technology Bureau for 2018
High-tech awards from Science and
- 600000.00
Technology Bureau for 2019
Subsidy for 2020 Online Hardware Fair
- 600000.00
Exhibition
Tourism development special award from
- 50000.00
Culture and Tourism Bureau
Grant for civilized units from Civilization
- 3000.00
Construction Office
Additional deduction of input tax 2845835.35 2634909.22
Education surcharges refunded by the tax
148.65 9.78
bureau
Refund of the service charges of individual
368142.02 144060.64
income tax
Refund of social security contribution - 5899392.92
Employment stabilization subsidy 23190.40 -
VAT reduction for the recruitment of retired
86065.86 -
soldiers finding jobs on their own
Electricity charge award for production
- 14214.66
resumption
Subsidy for pilot counties in service industry for
500000.00 -2020
Subsidy for six small industries in the Spring
300000.00 -
Festival
Subsidy for Demonstrative Units of "eliminating
pornography and illegal publications" from 10000.00 -
Jinhua Municipal Financial Treasury
Deduction for cultural undertaking
90780.00 -
development fee
Additional deduction of R&D input award from
Yiwu Municipal Science and Technology 131520.00 -
Bureau
Opening-up Promotion Reward from Yiwu
960743.00 -
Bureau of Commerce for 2020
Special Incentive Fund for Modern Supply
Chain System Innovation from Yiwu Bureau of 2682704.00 -
Commerce for 2020
Award for general trading enterprises from
336162.00 -
Yiwu Municipal Bureau of Commerce
Total 9046028.12 13684424.06
Other notes:
None
68. Investment income
√Applicable □Not applicable
Unit: RMB
Amount in the current Amount in the
Item
period previous period
Long-term equity investment income
263788954.78 13185907.49
under the equity method
Investment income from held-for-trading
- 20500000.00
financial assets during holding period
Interest income from debt investment
- 8196820.88
during holding period
Investment income from disposal of
42837.72 169594.15
held-for-trading financial assets
Investment income from disposal of - 76523765.30
subsidiaries and related claims
Investment income from disposal of - 574553.43
wealth management products
Total 263831792.50 119150641.25
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 Amount in the current Amount in the previous
changes in fair value period period
Held-for-trading financial -2640099.60 -
assets
Other non-current financial 3768691.70 20193509.58
assets
Total 1128592.10 20193509.58
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 -13408.94 -2379335.67
receivable
Loss for bad debts of other -415865.94 -
receivables
Total -429274.88 -2379335.67
Other notes:
None
72. Loss for asset impairment
□Applicable √Not applicable
73. Income from asset disposal
√Applicable □Not applicable
Unit: RMB
Item Amount in the current Amount in the previous
period period
Income from disposal of 101911.42 1095496.24
property plant and
equipment
Total 101911.42 1095496.24
Other notes:
□Applicable √Not applicable
74. Non-operating income
√Applicable □Not applicable
Unit: RMB
Amount recognized
in profit or loss of
Amount in the Amount in the
Item nonrecurring items
current period previous period
for the current
period
Government 1200.00 - 1200.00
grants
Incomes from 1258664.54 415800.00 1258664.54
liquidated
damages
Others 85788.32 337775.18 85788.32
Total 1345652.86 753575.18 1345652.86
Government grants recognized in the profit or loss for the current period
√Applicable □Not applicable
Unit: RMB
Amount in the Asset-related or
Grant items Previous amount
current period income-related
Subsidy for
enterprise
monitoring from 1200.00 - Income-related
Choucheng
Subdistrict
Total 1200.00 -
Other notes:
□Applicable √Not applicable
75. Non-operating expenses
√Applicable □Not applicable
Unit: RMB
Amount in the Amount in the Amount
Item
current period previous period recognized in
profit or loss of
nonrecurring
items for the
current period
Total loss for disposal of
791449.35 - 791449.35
non-current assets
Including: loss for
disposal of property 791449.35 - 791449.35
plant and equipment
External donation 200000.00 2731413.91 200000.00
Water conservancy
6.76 249451.94 6.76
construction fund
Others 129638.33 250031.27 129638.33
Total 1121094.44 3230897.12 1121094.44
Other notes:
None
76. Income taxes
(1) Overview of income tax expenses
√Applicable □Not applicable
Unit: RMB
Amount in the current Amount in the previous
Item
period period
Current income taxes 198094571.17 260211241.65
Deferred income tax 14482195.47 12775944.42
expenses
Total 212576766.64 272987186.07
(2) Adjustment process of accounting profits and income tax expenses
√Applicable □Not applicable
Unit: RMB
Item Amount in the current period
Profits before tax 1059821157.80
Income tax expenses calculated at the
264955289.45
statutory/applicable tax rate
Impact of different tax rates applied by
606716.47
subsidiaries
Effect of adjusting income tax of
-18765823.73
previous period
Effect of non-taxable income 1034697.67
Effect of non-deductible costs
203633.97
expenses and losses
Effect of using deductible losses of
unrecognized deferred income tax 3984558.93
assets in previous period
Effect of deductible temporary
differences or deductible losses of
26504932.58
unrecognized deferred income tax
assets in the current period
Profits or losses attributable to joint
-65947238.70
ventures and associates
Income taxes 212576766.64
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 Amount in the previous
period period
Bank deposit interest income 120684004.99
received 117153799.20
Government grants received 4925477.20 10859472.56
Deposit and margin received 60501618.69 10660056.61
Bank reserve received 876213.71 -
Others 2324227.91 -
Total 185781336.71 142203534.16
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 Amount in the previous
period period
Margins paid 55168466.81 125625663.45
Fees paid 117283494.99 111864579.58
Bank reserve paid to Zhejiang -
Yiwugou E-commerce Co. -3157824.29
Ltd.Collection of property -
1335791.74
ownership certificate fees paid
Cash paid to purchase time -
496500000.00
deposits
Others 2539651.72 18942646.95
Total 174991613.52 751110857.43
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 Amount in the previous
period period
Financial assistance recovered 192154897.34
from joint ventures 1326599831.00
Total 1326599831.00 192154897.34
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 Amount in the previous
period period
Financial assistance paid for -
joint ventures 1550981005.00
Total 1550981005.00 -
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
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 847244391.16 720041670.03
Add: Provision for asset impairment - -
Loss of impairment of credit 429274.88 2379335.67
Depreciation of property plant and
equipment depletion of oil and gas
196630117.97 232464508.86
assets and depreciation of productive
biological assets
Amortization of right-of-use assets 6032905.14 -
Amortization of intangible assets 69599955.30 65522814.07
Amortization of long-term deferred
26371441.78 33684186.50
expenses
Loss on disposal of property plant and
equipment intangible assets and other -101911.42 -1095407.99
long-term assets (gain presented with "-")
Loss from scrapping of property plant
791449.35 -88.25
and equipment (gain presented with "-")
Loss from changes in fair value (gain
-1128592.10 -20193509.58
presented with "-")
Financial expense (gain presented with
177154357.55 15494362.77
"-")
Investment loss (gain presented with "-") -263831792.50 -311305538.59
Decrease in deferred income tax assets
13751307.49 -22701798.39
(increase presented with "-")
Increase in deferred income tax liabilities
-17769644.32 1084796.43
(decrease presented with "-")
Decrease in inventory (increase
-67724859.66 -239207823.16
presented with "-")
Decrease in operating receivables
-1120122291.93 -879633090.02
(increase presented with "-")
Increase in operating payables
299409716.06 -299601118.51
(decrease presented with "-")
Others
Net cash flow from operating activities 166735824.75 -703066700.16
2．Significant investing and financing
activities not involving cash receipt
and payment:
3．Net changes in cash and cash
equivalents:
Closing balance of cash 1959635386.45 3470682166.57
Less: opening balance of cash 2032642871.63 3426712549.26
Add: closing balance of cash equivalents
Less: opening balance of cash
equivalents
Net increase in cash and cash
-73007485.18 43969617.31
equivalents
(2) Net cash paid for acquisition of subsidiaries in the current period
□Applicable √Not applicable
(3) Net cash received from disposal of subsidiaries in the current period
□Applicable √Not applicable
(4) Composition of cash and cash equivalents
√Applicable □Not applicable
Unit: RMB
Item Closing balance Opening balance
I. Cash 1959635386.45 2032642871.63
Including: cash on hand 203319.92 292999.29
Bank deposit that can be used for
1959405717.31 2032189759.31
payment at any time
Other monetary capital that can be
26349.22 160113.03
used for payment at any time
II. Cash equivalents
III. Closing balance of cash and
1959635386.45 2032642871.63
cash equivalents
Including: cash and cash
equivalents with restricted use by
60.68 60.58
the parent company or its
subsidiaries
Other notes:
√Applicable □Not applicable
Monetary capital with a deposit period of more than three months
Unit: RMB
Item Closing balance Opening balance
Negotiated deposits 1060000000.00 3580000000.00
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 60.68
Long-term equity investment 102918559.00
Other non-current assets 617511352.00
Total 720429971.68 /
Other notes:
Note 1. On June 30 2021 bank deposits with a book value of RMB 60.68
(December 31 2020: RMB 60.58) were restricted for ownership or use rights due to
being as security deposits for obtaining commercial housing mortgage loan.Note 2: As of June 30 2021 long-term equity investments with a book value of
RMB 102918559.00 (December 31 2020: RMB 102918559.00) and other
non-current assets of RMB 617511352.00 (December 31 2020: RMB
617511352.00) were frozen by Shanghai Municipal Public Security Bureau. See
Note XIV.1 Important commitments for details.82. Foreign currency monetary items
(1). Foreign currency monetary items
√Applicable □Not applicable
Unit: RMB Yuan
Closing balance Closing balance
Item in foreign Exchange rate conversed into
currency RMB
Monetary capital - -
In which: USD 3234568.66 6.4601 20895637.00
EURO 42563.62 7.6829 327012.04
Dirham 293088.41 1.7587 515454.59
Koruna 18707573.41 0.3010 5631418.85
Accounts Receivable - -
In which: USD 3116422.25 6.4601 20132399.38
Koruna 7989665.21 0.3010 2405076.82
Other receivables - -
In which: USD 59503.15 6.4601 384396.29
EURO 3147.80 7.6829 24184.23
Koruna 37171848.63 0.3010 11189599.23
Accounts payable - -
In which: USD 150013.56 6.4601 969102.60
Koruna 7480.00 0.3010 2251.66
Other payables - -
In which: USD 1213426.02 6.4601 7838853.43
EURO 18698.84 7.6829 143661.32
Koruna 66173444.90 0.3010 19919760.66
Other notes:
None
(2). Description of overseas operations for important overseas operations also includes the
disclosure of principal overseas place of business bookkeeping currency and the basis for
selection and the reason for the change in bookkeeping currency.□Applicable √Not applicable
83. Hedging
□Applicable √Not applicable
84. Government grants
1. Overview of government grants
√Applicable □Not applicable
Unit: RMB
Amount
recognized
in profit or
Category Amount Presentation
loss for the
current
period
Subsidy for enterprise monitoring Non-operating
1200.00 1200.00
from Choucheng Subdistrict income
Government subsidy for service Other
133333.32 133333.32
industry cluster for 2011 incomes
Interest subsidy for the international Other
577403.52 577403.52
exhibition center construction fund incomes
Additional deduction of input tax Other
2845835.35 2845835.35
incomes
Education surcharges refunded by Other
148.65 148.65
the tax bureau incomes
Employment stabilization subsidy Other
23190.40 23190.40
incomes
VAT reduction for the recruitment of
Other
retired soldiers finding jobs on their 86065.86 86065.86
incomes
own
Subsidy for pilot counties in service Other
500000.00 500000.00
industry for 2020 incomes
Subsidy for six small industries in Other
300000.00 300000.00
the Spring Festival incomes
Subsidy for Demonstrative Units of
"eliminating pornography and illegal Other
10000.00 10000.00
publications" from Jinhua Municipal incomes
Financial Treasury
Deduction for cultural undertaking Other
90780.00 90780.00
development fee incomes
Additional deduction of R&D input
Other
award from Yiwu Municipal Science 131520.00 131520.00
incomes
and Technology Bureau
Opening-up Promotion Reward
Other
from Yiwu Bureau of Commerce for 960743.00 960743.00
incomes2020
Special Incentive Fund for Modern
Supply Chain System Innovation Other
2682704.00 2682704.00
from Yiwu Bureau of Commerce for incomes2020
Award for general trading
Other
enterprises from Yiwu Municipal 336162.00 336162.00
incomes
Bureau of Commerce
Total 8679086.10 8679086.10
2. Refund of government grants
□Applicable √Not applicable
Other descriptions
None
85. Others
□Applicable √Not applicable
VIII. Changes in consolidation scope
1、 Business merger not under common control□Applicable √Not applicable
2、 Business merger under common control□Applicable √Not applicable
3、 Reverse acquisition□Applicable √Not applicable
4、 Disposal of subsidiariesHas the Group lost control upon a single disposal of investment in a subsidiary?
□Applicable √Not applicable
Other notes:
□Applicable √Not applicable
5、 Changes in consolidation scope for other reasonsChanges in the consolidation scope for other reasons (e.g. new establishment of subsidiaries liquidation of subsidiaries etc.) and
the related information:
□Applicable √Not applicable
6、 Others□Applicable √Not applicable
IX. Equity in Other Entity
1. Equity in subsidiaries
(1). Composition of the enterprise group
√Applicable □Not applicable
Principal Shareholding ratio
Subsidiary Registering Nature of (%) Acquisition business
Name place business Method
place Direct Indirect
Yiwu China Commodities City Yiwu Yiwu
Service 100 Establishment
Logistics and Warehousing Co. Ltd. Zhejiang Zhejiang
Yiwu Commodities City Gonglian Yiwu Yiwu
Real estate 100 Establishment
Property Co. Ltd. Zhejiang Zhejiang
Yiwu China Commodities City Yiwu Yiwu
Service 100 Establishment
Exhibition Co. Ltd. Zhejiang Zhejiang
Yiwu China Commodities City Yiwu Yiwu
Advertising 100 Establishment
Advertising Co. Ld. Zhejiang Zhejiang
Yiwu China Commodities City Yiwu Yiwu
IT 100 Establishment
Information Technology Co. Ltd. Zhejiang Zhejiang
Yiwu China Commodity City RMB and Yiwu Yiwu
Service 100 Establishment
Foreign Currency Exchange Co. Ltd. Zhejiang Zhejiang
Hangzhou Shangbo Nanxing Property Hangzhou Hangzhou
Real estate 100 Establishment
Co. Ltd. Zhejiang Zhejiang
Yiwu China Commodities City
Yiwu Yiwu
Payment Network Technology Co. IT 100 Establishment
Zhejiang Zhejiang
Ltd.Yiwu China Commodities City Credit Yiwu Yiwu
Service 85 Establishment
Investigation Co. Ltd. Zhejiang Zhejiang
Haicheng Yiwu China Commodities Haicheng Haicheng
Real estate 95 Establishment
City Investment Development Co. Ltd. Liaoning Liaoning
Zhejiang Yiwugou E-commerce Co. Yiwu Yiwu
E-commerce 51 Establishment
Ltd. Zhejiang Zhejiang
Hangzhou Hangzhou
Yiwu Shangbo Property Co. Ltd. Real estate 100 Establishment
Zhejiang Zhejiang
Yiwu China Commodities City Import Yiwu Yiwu
Wholesale 100 Establishment
and Export Co. Ltd. Zhejiang Zhejiang
Yiwu China Commodities City Supply Yiwu Yiwu
Service 100 Establishment
Chain Management Co. Ltd. Zhejiang Zhejiang
Lease and
Yiwu China Commodities City Tourism Yiwu Yiwu
business 100 Establishment
Development Co. Ltd. Zhejiang Zhejiang
service
Yiwu China Commodities City Yiwu Yiwu
Service 100 Establishment
Financial Holdings Co. Ltd. Zhejiang Zhejiang
Yiwu China Commodity City Frankfurt Frankfurt
Service 100 Establishment
(Germany) Co. Ltd. Germany Germany
Yiwu International Trade Yiwu Yiwu
Wholesale 60 Establishment
Comprehensive Service Co. Ltd. Zhejiang Zhejiang
Yiwu Aiximao Supply Chain Yiwu Yiwu
Service 100 Establishment
Management Co. Ltd. Zhejiang Zhejiang
Yiwu China Commodities City (Hong Hong Kong Hong Kong
Wholesale 100 Establishment
Kong) International Trade Co. Ltd. China China
Ningxia Yiwu China Commodity City Shizuishan Shizuishan
Service 100 Establishment
Supply Chain Management Co. Ltd. Ningxia Ningxia
Yiwu China Commodities City
Yiwu Yiwu
Overseas Investment and Wholesale 100 Establishment
Zhejiang Zhejiang
Development Co. Ltd.Yiwu China Commodities City
Yiwu Yiwu
Commerce and Trade Service Education 100 Establishment
Zhejiang Zhejiang
Training Center Co. Ltd.Lease and
Yiwu China Commodities City Assets Yiwu Yiwu
business 100 Establishment
Operation and Management Co. Ltd. Zhejiang Zhejiang
service
Lease and
Zhejiang Yindu Hotel Management Yiwu Yiwu
business 100 Establishment
Co. Ltd. Zhejiang Zhejiang
service
Hong Kong Hong Kong
Hong Kong Better Silk Road Co. Ltd. Service 100 Establishment
China China
BETTER SILK ROAD FZE Dubai UAE Dubai UAE Service 100 Establishment
Kigali Kigali
BETTER SILK ROAD RWANDA Ltd Service 100 Establishment
Rwanda Rwanda
Yiwu China Commodities City Yiwu Yiwu Business
100 Establishment
Research Institute Co. Ltd. Zhejiang Zhejiang service
Yiwu Comprehensive Bonded Zone Yiwu Yiwu Business
100 Establishment
Operation and Management Co. Ltd. Zhejiang Zhejiang service
Software and
Information
Yiwu China Commodities City Big Yiwu Yiwu
Technology 100 Establishment
Data Co. Ltd. Zhejiang Zhejiang
Service
Industry
Multimodal
Yiwu Yiwu transport and
Yiwu Global Yida Logistics Co. Ltd. 60 Establishment
Zhejiang Zhejiang transportation
agency
Yiwu China Commodities City Internet Yiwu Yiwu
Service 100 Incorporation+acquisition
Financial Information Service Co. Ltd. Zhejiang Zhejiang
Zhejiang Huajie Investment and Yiwu Yiwu Commercial
96.4 Incorporation+acquisition
Development Co. Ltd. Zhejiang Zhejiang services
Prague Prague
European Huajie Investment Commercial
Czech Czech 96.4 Incorporation+acquisition
Development Co. Ltd. services
Republic Republic
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
Profits or Dividends
Shareholding
losses declared to be
ratio of
attributable to distributed to Closing
minority
Subsidiary minority minority balance of
shareholders
shareholders shareholders minority interest
Proportion
in the current for the current
(%)
period period
Zhejiang Yiwugou E-commerce
49 1974877.84 43560953.39
Co. Ltd.Haicheng Company 5 -3564192.03 -39248251.46
Explanation for the difference between the shareholding ratio and voting right ratio
of minority shareholders in a subsidiary:
□Applicable √Not applicable
Other notes:
□Applicable √Not applicable
(3). Major financial information of important non-wholly-owned subsidiaries
√Applicable □Not applicable
Unit: RMB10000
Closing balance Opening balance
Subsidiar Non-cu
y Current Non-current Current Total Current Non-current Current rrent Total Total assets Total assets
assets assets liabilities Liabilities assets assets liabilities liabilitie Liabilities
s
Zhejiang
Yiwugou
E-comme 10456.98 1092.39 11549.37 2659.38 2659.38 10131.63 1035.94 11167.57 2680.61 - 2680.61
rce Co.Ltd.Haicheng 308420.5
141955.48 87968.51 229923.99 308420.50 124510.56 105804.70 230315.26 301683.12 0.26 301683.38
Company 0
Amount in the current period Amount in the previous period
Cash flow Cash
Total Total
Subsidiary Operating Net from Operating flow from
comprehensive Net profit comprehensive
income profit operating income operating
income income
activities activities
Zhejiang
Yiwugou
2289.66 403.04 403.04 -1005.35 2329.05 735.05 735.05 617.67
E-commerce
Co. Ltd.Haicheng
591.49 -7128.38 -7128.38 4098.84 170.49 -7510.97 -7510.97 456.24
Company
Other notes:
None
(4). Major restrictions on the use of the enterprise group’s assets and repayment of
the enterprise group’s debts
□Applicable √Not applicable
(5). Financial support or other support provided to structured entities included in the
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 ratio Accounting
(%) treatment
Name of joint Principal method of
Registering Nature of
venture or business investment in
place business
associate place Direct Indirect the joint
venture or
associate
Joint venture
Yiwu Shanglv
Investment Yiwu
Yiwu Zhejiang Real estate 49 Equity method
Development Co. Zhejiang
Ltd.Yiwu Huishang
Redbud Capital Yiwu
Yiwu Zhejiang Service 20 Equity method
Management Co. Zhejiang
Ltd.Associate
Hangzhou Binjiang
Shangbo Property Hangzhou Hangzhou
Real estate 49 Equity method
Development Co. Zhejiang Zhejiang
Ltd.Yiwu Huishang
Redbud Equity Yiwu Commercial
Yiwu Zhejiang 10.42 Equity method
Investment Co. Zhejiang services
Ltd.(注 1)
Zhejiang Chouzhou
Yiwu
Financial Lease Yiwu Zhejiang Service 26 Equity method
Zhejiang
Co. Ltd.Yiwu Huishang
Redbud Phase II Lease and
Yiwu
Investment Yiwu Zhejiang business 9.43 Equity method
Zhejiang
Partnership (LLP) service
(Note 2)
Yiwu Hongyi Equity
Yiwu
Investment Fund Yiwu Zhejiang Service 49.98 Equity method
Zhejiang
Partnership
Pujiang Lvgu Pujiang Pujiang
Real estate 49 Equity method
Property Co. Ltd. Zhejiang Zhejiang
Yiwu China
Commodities City
Yiwu
Property Yiwu Zhejiang Real estate 49 Equity method
Zhejiang
Development Co.Ltd.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:
1. The Company holds 10.42% (2020: 10.42%) of equity of Yiwu Huishang
Redbud Equity Investment Co. Ltd. (hereinafter referred to as "Redbud Equity
Investment") but regards 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 Redbud Investment in which the Company held 10.42% of total equity.2.The Company holds 9.43% (9.43% in 2020) equity in Yiwu Huishang Redbud
Phase II Investment Partnership (limited partnership) (“Redbud Phase II”) but takes
the latter as its associate. 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 Opening
balance/amount in balance/amount in
the current period the previous period
Yiwu Shanglv Yiwu Shanglv
Current assets 160212991.84 187602175.56
In which: cash and cash 22573321.54 24893904.53
equivalents
Non-current assets 1351304281.55 1369948370.68
Total assets 1511517273.39 1557550546.24
Current liabilities 348992582.10 420643904.92
Non-current liabilities 356957211.08 356957211.08
Total Liabilities 705949793.18 777601116.00
Shareholders’ equity attributable to 805567480.21 779949430.24
parent company
Share of net assets calculated
394728065.32 382175220.82
based shareholding ratio
Adjustments -16108176.86 -16344463.91
--unrealized profits of internal
-16108176.86 -16344463.91
transactions
Book value of equity investment in
378619888.46 365830756.91
joint ventures
Operating income 119151345.93 86301394.39
Financial expenses 13130464.22 15128184.57
Net profit 25618049.97 2397343.82
Total comprehensive income 25618049.97 2397343.82
Other descriptions
None
(3). Main financial information of important associates
√Applicable □Not applicable
Unit: RMB10000
Closing balance/amount in the current period Opening balance/amount in the previous period
Binjiang Chouzhou Hongyi CCCP Pujiang Binjiang Chouzhou Hongyi CCCP Pujiang
Shangbo Financial Fund Lvgu Shangbo Financial Fund Lvgu
Lease Lease
Current
20006.38 1265303.68 5183.52 1192625.24 109945.07 44924.53 1202046.20 18713.03 755070.00 169861.52
assets
Non-curre
- 8326.54 133530.80 40526.33 1593.35 104.99 2883.99 119447.65 40293.49 1300.60
nt assets
Total
20006.38 1273630.22 138714.32 1233151.57 111538.42 45029.52 1204930.19 138160.68 795363.49 171162.12
assets
Current
2650.84 843554.97 34.24 659240.33 11960.43 12787.62 941372.19 140.31 467243.03 88160.96
liabilities
Non-curre
nt - 275978.70 - - 76.76 - 124684.14 - 20902.58 7441.37
liabilities
Total
2650.84 1119533.67 34.24 659240.33 12037.19 12787.62 1066056.33 140.31 488145.61 95602.33
Liabilities
Sharehold
ers’ equity
attributabl
17355.54 154096.55 138680.08 572748.64 99501.23 32241.90 138873.86 138020.37 307217.88 75559.79
e to
parent
company
Share of
net assets
calculated
8504.21 40065.10 69305.39 280646.83 48755.60 15798.53 36107.20 68975.68 150536.76 37024.30
based
sharehold
ing ratio
Adjustme
-811.70 12.77 - -4138.25 988.86 -383.31 -94.71 - -3379.46 942.95
nts
--unrealiz
ed profits
of internal -811.70 12.77 - -4138.25 988.86 -383.31 -94.71 - -3379.46 942.95
transactio
ns
Book
value of
equity
7692.51 40077.88 69305.39 276508.58 49744.46 15415.23 37132.07 68975.68 147157.30 37964.25
investmen
t in joint
ventures
Operating
3853.49 19148.81 743.86 130649.27 89556.04 8748.17 20390.00 609.57
income
Net profit 4234.21 11330.05 682.67 15476.32 23941.44 3169.81 7876.21 -1636.99
Total
comprehe
4234.21 11330.05 682.67 15476.32 23941.44 3169.81 7876.21 -1636.99
nsive
income
Other descriptions
None
(4). Summary financial information of unimportant joint ventures and associates
√Applicable □Not applicable
Unit: RMB
Closing balance/amount in Opening balance/amount
the current period in the previous period
Joint ventures:
Total book value of
61969194.96 49048582.56
investments
Total amounts of the following items calculated based on shareholding ratio
--Net profits -17417905.83 -58781609.61
--Total comprehensive
-17417905.83 -58781609.61
income
Associates:
Total book value of
410104474.22 351543008.12
investments
Total amounts of the following items calculated based on shareholding ratio
--Net profits -2760126.81 2988663.47
--Total comprehensive
-2760126.81 2988663.47
income
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. Categorization of financial instruments
The book values of financial instruments on the balance sheet date are as follows:
June 30 2021
Financial assets
Financial assets Measured at measured at fair
that are measured amortized cost value and whose
at fair value and changes are
Financial liabilities whose changes included in Total
are included in the other
current profit and comprehensive
loss income
Requirements in Designated
the standard
Monetary capital - 3019635447.13 - 3019635447.13
Held-for-trading 57568002.17
financial assets 57568002.17 - -
Accounts Receivable - 139603567.84 - 139603567.84
Other receivables - 3072486757.71 - 3072486757.71
Other current assets - 237091677.93 - 237091677.93
Long-term 186094734.90
receivables - 186094734.90 -
Other equity 588254213.58
instruments
investment - - 5 88254213.58
Other non-current 1565523492.51
financial assets 1565523492.51 - -
1623091494.68 6654912185.51 588254213.58 8866257893.77
Other financial liabilities
Short-term loans 1234890481.77
Accounts payable 807401123.93
Other payables 1775772737.40
Non-current liabilities due within one
year 2031849229.82
Other current liabilities 3061785512.50
Long- term loans 604000000.00
Bonds payable 2786076439.37
12301775524.792020
Financial assets
Financial assets Measured at measured at fair
that are measured amortized cost value and whose
at fair value and changes are
Financial liabilities whose changes included in Total
are included in the other
current profit and comprehensive
loss income
Requirements in Designated
the standard
Monetary capital - 5612642932.21 - 5612642932.21
Held-for-trading 51712734.31
financial 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
financial 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
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 Note XIV. 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.See Notes VII. 5 and 8 for quantitative data on the Group's credit risk exposure in
relation to receivables and other receivables.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 makes impairment provisions for the expected credit loss of accounts
receivable and other receivables within the coming 12 months with the simplified
method and general method respectively. Please refer to Notes VII. 5 and 8 for
details.Liquidity risk
The Group manages the cash shortage risk with the cyclical liquidity plan tool. The
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. On June 30 2021
70.28% of the Group's debts would be due within one year (December 31 2020:
66.99%).The following table summarizes the analysis on the due day of financial liabilities
based on non-discounted contractual cash flows:
June 30 2021
3 months-1 year (1 1 year - 5 years (5 Above
Item At call 1-3 months Total
year inclusive) years inclusive) 5 years
Short-term loans 1147906.03 10675526.11 1249374764.93 1261198197.07
Accounts payable 688615258.47 118785865.46 807401123.93
Other payables 1313492997.88 462279739.52 1775772737.40
Other current 4304034.67 2024351506.85 1011671232.88 3040326774.40
liabilities
Non-current
liabilities due 206888.89 1099184511.11 975273288.89 2074664688.89
within one year
Long- term loans 583444.44 5426033.33 15986377.78 624787284.44 646783139.99
Bonds payable 39900000.00 87236904.11 2720293095.89 2847430000.00
Total 2008350530.38 3298323442.86 3339542568.59 3807360119.85 12453576661.682020
Above
3 months-1 year 1 year - 5 years
Item At call 1-3 months 5 Total
(1 year inclusive) (5 years inclusive)
years
Short-term loans 3043884.75 704443269.49 559256951.23 1266744105.47
Accounts
538556910.03 97906892.20 636463802.23
payable
Other payables 1168708392.46 477637169.16 1646345561.62
Other current
4131670.37 1002071232.88 2012205479.45 3018408382.70
liabilities
Non-current
liabilities due 980000.00 51731333.33 1285433398.48 1338144731.81
within one year
Long- term loans 868333.33 1736666.67 7815000.00 298671166.67 309091166.67
Bonds payable 141930000.00 3588613260.27 3730543260.27
Total 1716289190.94 1857889394.57 4006640829.16 4364921596.10 11945741010.77
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. As of Jun 30 2021 the Company had
long-term borrowings of RMB604million among its long-term liabilities the interest
rates of which were adjusted on an annual basis based on the benchmark loan rate
on the anniversary dates. Therefore the management believe that its risk of market
interest rate change 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. 7% of the Group's sales in the current period (2020: 3%)
were denominated in a currency other than the functional currency of the operating
unit where the sales occurred while 92% (2020: 98%) of the costs were
denominated in the functional currency of the operating unit. 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. As of Jun 30 2021 the Group was exposed to the price risk of
equity instrument investments arising from the individual equity instrument
investments classified as the financial instruments that are measured by fair value
and of which the changes in fair value are recognized in income in current period
(Note VII. 2) or recognized in other comprehensive income (Note VII. 18). The
listed equity instruments that were invested and held by the Group were listed on
the Shanghai Stock Exchange and the Shenzhen Stock Exchange respectivelythe
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.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. From January to June in 2021 and in 2020 there
was no change in capital management objectives policies or procedures.XI. Disclosure of fair value
1. Closing fair value of the assets and liabilities measured by fair value
√Applicable □Not applicable
Unit: RMB
Closing fair value
Item
Level 1 fair value Level 2 fair value Level 3 fair value Total
I. Continuous fair value
measurement
(1) Held-for-trading financial
2000.15 57566002.02 57568002.17
assets
1. Financial assets that are
measured at fair value and
2000.15 57566002.02 57568002.17
whose changes are included in
the current profit and loss
(2) Investment in equity
2000.15 49066002.02 49068002.17
instruments
(4) Bank wealth management
8500000.00 8500000.00
products
(3) Other equity instruments
588254213.58 588254213.58
investment
(vi) Other non-current financial
224112791.60 1341410700.91 1565523492.51
assets
Total assets continuously
588256213.73 281678793.62 1341410700.91 2211345708.26
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 continuous first-level fair value measurement items mainly include
listed equity instruments whose fair value is determined based on the market
quotation on the last trading day of June 2021.3. 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 as of June 30
2021 combined with comparable information of listed companies in the industry
using the comparable company multiplier method. In the listed equity 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 is not suitable are determined with the
asset-based method as of June 30 2021.5. Adjustment information between the opening book value and closing book value
and the sensitivity analysis of unobservable parameters for items continuously
measured by Level 3 fair value
□Applicable √Not applicable
6. For items continuously measured by fair value if there is conversion between
different levels in the current period the reasons for the conversion and the policy
for determining the time of conversion
□Applicable √Not applicable
7. Changes in valuation techniques in the current period and reasons for changes
□Applicable √Not applicable
8. Fair value of financial assets and financial liabilities not measured by fair value
√Applicable □Not applicable
Assets and liabilities disclosed by fair value
June 30 2021
Entries used in the fair value measurement
Quotation in an Important observable Important observable
active market entry entry
Level 1 Level 2 Level 2 Total
Bonds payable (current 4623646006.73 4623646006.73
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 value Fair value
June 30 2021 2020 June 30 2021 2020
Financial liabilities
bonds payable
(current portion
included) 4627135335.88 4584565819.27 4623646006.73 4566553461.90
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 Group's finance department headed by the General manager of the Group
Finance Center is responsible for developing policies and procedures for the fair
value measurement of financial instruments. The General Manager of the Group
Finance Center reports directly to the Group Finance Officer who 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 significant conversion of the Group’s and the Company’s financial
instruments measured by fair value between different levels in the current year and
in the previous year.XII. Related parties and related-party transactions
1. Parent company of the Company
√Applicable □Not applicable
Unit: RMB10000
Shareholding
Name of Voting right
Registering Nature of Registered ratio in the
parent ratio in the
place business capital Company
company Company (%)
(%)
Yiwu Asset 100000 55.34 55.34
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
For details of the Company’s important joint ventures or associates please refer to
the Notes
□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
Meipinshu Associate
JEBEL ALI FREE ZONE TRADER MARKET
Associate
DEVELOPMENT AND OPERATION FZCO
Digital Port Joint venture
CCCP Associate
Other descriptions
□Applicable √Not applicable
4. Other related parties
√Applicable □Not applicable
Name of other related party Relationship with the Company
Yourworld International
Conference Center Company of Branch of Controlling shareholder of the
Yiwu Market Development Group Company’s largest shareholder
Co. Ltd.Subsidiary of controlling shareholder of the
Yiwu Security Service Co. Ltd.Company’s largest shareholder
Controlling shareholder of the Company’s
MDG
largest shareholder
Parent company of controlling shareholder of
SCO
the Company’s largest shareholder
Huangyuan Shangbo Subsidiaries of joint ventures
Chengzhen Property Subsidiaries of joint ventures
Gongchen Shangbo Subsidiaries of joint ventures
Tonghui Shangbo Subsidiaries of joint ventures
Zhejiang Shangbo Property Co.Subsidiaries of associates
Ltd.Handing Shangbo Subsidiaries of associates
Yiwu Guoshen Shangbo Property
Joint venture
Co. Ltd.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
Contents of
Amount in the Amount in the
Related party related-party
current period previous period
transaction
Local and foreign
Yiwu Security Service currencies truck
37500 42500
Co. Ltd. escort security
service fees
Selling goods/rendering service
√Applicable □Not applicable
Unit: RMB
Amount in the
Contents of related-party Amount in the
Related party previous
transaction current period
period
Xingfuhu International Laundry costs venue
2406375.28 506168.10
Conference Center rental costs etc.Meipinshu Procurement agency 1566898.69 -
CCCP Payment for pandemic 1280.00 -
prevention materials
Pujiang Lvgu Property Payment for pandemic 272.00 -
Co. Ltd. prevention materials
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
Startin
Ending income/cont
g date Pricing of
Type of date of racting
Name of Name of of entrustment
entrusted/co entrust income
consignor/e consignee/co entrust income/cont
ntracted ment recognized
mployer ntractor ment racting
assets /contra in the
/contra income
cting current
cting
period
Entrustment
Feb 1 Jan 31 Negotiated
MDG Our company of other 895759.55
2020 2025 price
assets
Notes on entrustment/contracting from related parties
√Applicable □Not applicable
According to the Yourworld International Conference Center Management
Contract signed by and between the Company and the Market Development Group
the Company is entrusted to manage Yourworld International Conference Center
Hotel located at No. 100 Xingfuhu Road Yiwu City. The hotel management fee
collected during the reporting period was RMB 895759.55 (January- June 2020:
RMB 452962.93)
Entrustment/contracting from the Company:
□Applicable √Not applicable
Notes on related-party management/contracting
□Applicable √Not applicable
(3). Related-party lease
The Company as the lessor:
√Applicable □Not applicable
Unit: RMB
Rental income Rental income
Type of leased
Name of lessee recognized in the recognized in the
asset
current period previous period
Huishang
Office space 196476.69 217159.71
Micro-finance
Redbud Capital Office space 123409.53 135779.71
Zhejiang Yemai
Data
Office space 22184.76 56131.90
Technology
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
Maturity date Whether the
Guaranteed Guaranteed Starting date of
of the guarantee has
party amount the guarantee
guarantee been fulfilled
Yiwu Shanglv 184837311.23 July 1 2015 December 15 NO2026
Yiwu Shanglv 13918103.03 December 25 December 24 NO
2020 2023
Huangyuan 284244666.76 August 23 August 22 NO
Shangbo 2019 2024
The Company as the guaranteed party
√Applicable □Not applicable
Unit: RMB
Maturity date Whether the
Guaranteeing Guaranteed Starting date of
of the guarantee has
party amount the guarantee
guarantee been fulfilled
MDG 90000000.00 April 22 2013 October 22 NO2021
Notes on related-party guarantees
√Applicable □Not applicable
1. MDG provided guarantee for the Group’s loan from the Export-Import Bank of
China Zhejiang Branch with a total amount of RMB 90million (RMB200million as of
Dec 31 2020). As of Jun 30 2021 the Group borrowed RMB 90million (RMB
200million as of Dec 31 2020) under this guarantee for which MDG assumed joint
and several liability in full.2. The Group provided Yiwu Shanglv with a loan guarantee with the maximum
amount not exceeding RMB 49 million to Yiwu Branch of Bank of Communications
Co. Ltd. As of June 30 2021 Yiwu Shanglv actually borrowed RMB 28.4043
million from the bank (December 31 2020: RMB 11.50 million). As agreed in the
guarantee contract the Bank of Communications Co. Ltd. Yiwu Branch assumed a
guarantee liability of RMB 13.9181 million (December 31 2020: RMB 5.635 million).CCCH provided a counter-guarantee
4. The Group provided guarantee for the borrowings of Yiwu Shanglv. As of Jun
30 2021 Yiwu Shanglv actually borrowed RMB377.219million
(RMB477.6597million as of Dec 31 2020) from banks. According to the guarantee
contract the Group assumed liability for RMB184.8373million (RMB234.0533million
as of Dec 31 2020). SCO provided a counter-guarantee
4. The Group provided guarantee for the borrowings of Huangyuan Shangbo. As
of Jun 30 2021 Huangyuan Shangbo actually borrowed RMB580.0912million
(RMB1.2890987 billian as of Dec 31 2020) from banks. According to the guarantee
contract the Group assumed liability for RMB284.2447million (RMB631.6583million
as of Dec 31 2020).
(5). Related-party lending and borrowing
√Applicable □Not applicable
Unit: RMB
Related party Amount Starting date Maturity date Explanation
Borrowings
Huangyuan 98000000.00 Jan 26 2021 In January 2021 the Group borrowed a total
Shangbo of RMB 98000000.00 from Huangyuan
Shangbo in the proportion to the shareholding
ratio at the annual interest rate of 0%. The
repayment date will be determined based on
the funding requirements of the Huangyuan
Shangbo project.Huangyuan 73500000.00 Mar 2 2021 In March 2021 the Group borrowed a total of
Shangbo RMB 73500000.00 from Huangyuan
Shangbo in the proportion to the shareholding
ratio at the annual interest rate of 0%. The
repayment date is determined according to
the funding requirements of the Huangyuan
Shangbo project.Chengzhen 72000000.00 Jan 26 2021 In 2020 the Group borrowed a total of RMB
Property 27200000.00 from Chengzhen Real Estate;
in January 2021 the Group borrowed a total
of RMB 72000000.00 from Chengzhen Real
Estate. All these were borrowed in the
proportion to the shareholding ratio at the
annual interest rate of 0%. The repayment
date is determined according to the funding
requirements of the Chengzhen Real Estate
project.Chengzhen 4800000.00 May 20 2021 In May 2021 the Group borrowed a total of
Property RMB 4800000.00 from Chengzhen Real
Estate in the proportion to the shareholding
ratio at the annual interest rate of 0%. The
repayment date is determined according to
the funding requirements of the Chengzhen
Real Estate project.Gongchen 472659831.00 December 28 May 27 In 2020 the Group provided Gongchen
Shangbo 2020 2021 Shangbo with financial assistance totaling
RMB 472659831.00 at the annual interest
rate of 10%. As of May 31 2021 Gongchen
Shangbo has been repaid off in succession.Gongchen 49000000.00 May 14 2020 May 27 In 2020 the Group provided Gongchen
Shangbo 2021 Shangbo with financial assistance totaling
RMB 49000000.00 at the annual interest
rate of 10%. As of May 31 2021 Gongchen
Shangbo has been repaid off in succession.Tonghui 556640000.00 October 23 In 2020 the Group provided Tonghui
Shangbo 2020 Shangbo with financial assistance totaling
RMB 1486368548.00 at the annual interest
rate of 6.5%. As of June 30 2021 Tonghui
Shangbo has successively repaid RMB
556640000.00.Related party Amount Starting date Maturity Explanation
date
Lending to
Huangyuan 102900000.00 July 31 In 2020 the Group has borrowed a total of
Shangbo 2020 RMB 539000000.00 from Huangyuan
Shangbo in the proportion to the
shareholding ratio at the annual interest
rate of 0%. RMB 102900000.00 of them
has been repaid in April 2021. The
repayment date of the remaining debts will
be determined according to the funding
requirements of Huangyuan Shangbo
project.Handing Shangbo 17845800.00 May 11 In 2020 the Group provided Handing
2021 Shangbo with financial assistance totaling
RMB 472144400.00; in May 2021 the
Group provided Handing Shangbo with
financial assistance totaling RMB
17845800.00 all at the annual interest
rate of 6%. The repayment term of the
financial assistance is determined based
on the progress of the project.Guoshen 1372000000.00 Apr 19 2021 In April 2021 the Group provided
Shangbo Guoshen Shangbo with financial
assistance totaling RMB 1372000000.00
at the annual interest rate of 0%. The
repayment term of the financial assistance
is determined based on the progress of
the project.JEBEL ALI FREE 58235205.00 Mar 15 In 2020 the Group provided JEBEL ALI
ZONE TRADER 2021 FREE ZONE TRADER MARKET
MARKET DEVELOPMENT AND OPERATION
DEVELOPMENT FZCO financial assistance totaling RMB
AND 63465484.42; in March 2021 the Group
OPERATZON provided it will financial assistance totaling
FZCO RMB 58235205.00 all at the annual
interest rate of 6-month average EIBOR
plus 5%. The repayment term of the
financial assistance is determined based
on the progress of the project.
(6). Related-party transfer of assets and restructuring of debts
□Applicable √Not applicable
(7). Remunerations of key officers
√Applicable □Not applicable
Unit: RMB10000
Amount in the
Item Amount in the current period
previous period
Remunerations of key 827.37 1213.93
officers
(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
Project Related party Bad debt Bad debt
Book balance Book balance
provision provision
Accounts Tonghui
1100000.00 0.00
Receivable Shangbo
Accounts Huishang
10993.00 0.00
Receivable Micro-finance
Accounts Yixinou
3841.20 0.00
Receivable Supply Chain
Accounts Meipinshu
4761867.01 3791271.51
Receivable
Total 5876701.21 3791271.51
Interest Handing
15827392.54 1629868.34
receivable Shangbo
Interest Gongchen
106986844.63 101380259.61
receivable Shangbo
Interest Tonghui
61810923.55 18391082.53
receivable Shangbo
Total 184625160.72 121401210.48
Other Handing
489990200.00 472144400.00
receivables Shangbo
Other Guoshen
1372000000.00 0.00
receivables Shangbo
Other Tonghui
929728548.00 1486368548.00
receivables Shangbo
Total 2791718748.00 2480172779.00
Long-term Yiwu Shanglv
61250000.00 61250000.00
receivables
Long-term Dubai Joint 124844734.90 65506573.81
receivables Venture
Company
Total 186094734.90 126756573.81
(2). Payables
√Applicable □Not applicable
Unit: RMB
Project Related party Closing book Opening book balance
balance
Zhejiang Yemai
Accounts payable Data Technology 234991.51 1944907.37
Co. Ltd.Accounts payable Meipinshu 216645.00 0.00
Total 451636.51 1944907.37
Advance from Redbud Capital 205682.56 82272.97
customers
Advance from Huishang 17063.49 119444.13
customers Micro-finance
Advance from Meipinshu 87749.26 29076.43
customers
Advance from CCCP 244915.60 612289.00
customers
Advance from Digital Port 31877.64 116090.04
customers
Advance from Suxi Shangbo 81000.00 0.00
customers
Total 668288.55 966567.57
Huishang 9587.95 12609.59
Contract liabilities
Micro-finance
Contract liabilities Digital Port 18532.07 2192.92
Total 28120.02 14802.51
Huangyuan 607600000.00 539000000.00
Other payables
Shangbo
Chengzhen 104000000.00 27200000.00
Other payables
Property
Other payables MDG 67938.05 400421.10
Other payables Digital Port 26300.00 26300.00
Huishang 33000.00 85000.00
Other payables
Micro-finance
Other payables CCCP 240000.00 240000.00
Other payables Meipinshu 57000.00 57000.00
Total 712024238.05 567032721.10
7. Related-party commitments
□Applicable √Not applicable
8. Others
□Applicable √Not applicable
XIII. Share-based payment
1. Overview of share-based payment
√Applicable □Not applicable
Unit: Share Currency: RMB
Total amount of equity instruments granted by
the Company in the current period
The total amount of equity instruments
exercised by the Company during the current
period
The total amount of the Company's equity
instruments that have lapsed during the current
period
Scope of the exercise price of the stock options The grant price was RMB 2.94 in
issued by the Company and the remaining 60 months from the date of grant
period of the contract at the end of the period registration
Scope of the exercise price of other equity
instruments issued by the Company and the
remaining period of the contract at the end of
the period
Other descriptions
None
2. Share-based payment settled with equity
√Applicable □Not applicable
Unit: RMB
Method for determining the fair value of Market price on grant day
equity instruments on the grant date
Basis for determining the number of Determined based on the number of
exercisable equity instruments incentive objects that have reached the
assessment target through annual
assessment on the Company’s
financial performance indicators and
personal performance indicators.Reason for the significant difference
between the estimates in the current
period and in the previous period
Cumulative amount of equity-settled
share-based payments included in the 18891794.50
capital reserve
Total amount of expenses recognized by
equity-settled share payments in the 17010813.12
current period
Other descriptions
On December 10 2020 the 2020 fifth extraordinary general meeting ofshareholders of the Company reviewed and approved the “Plan on the Company'sRestricted Stock Incentive Plan 2020 (Draft)” and its summary. A total of
50480000 restricted stocks were granted accounting for about 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 objects granted for the first time in this plan was 405 and the restricted
stock incentive objects were directors senior management and core technical
personnel of the Company (including subsidiaries) and other personnel deemed
by the board of directors to be motivated; the grant price of some restricted stocks
granted in this plan for the first time was RMB 2.94 per share.According to the authorization of the fifth extraordinary general meeting of
shareholders in 2020 the Japanese Company held the 26th meeting of the eighthboard of directors on December 11 2020 and reviewed and passed the “Plan onInitially Granting Restricted Shares to Incentive Objects”. The first grant date 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 A-share 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 first grant of restricted shares under the restricted share incentive plan will
vest in three phases from the first trading day 24 months after the date of
completion of the grant registration to the last trading day 60 months after the date
of completion of the grant registration that is upon satisfying the vesting conditions
the employee has the right to purchase the share at the option price. Within the
vesting period if the vesting conditions of the restricted share incentive plan are
met the incentive object may apply for the vesting of the share and be 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
Unit: RMB
Yuan
Capital commitments June 30 2021 2020
Signed but not provided 841672802.56 1346968354.17
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 June 30 2021 the Group had other investment commitments
totaling RMB 872.505 million (December 31 2020: RMB 201.71 million).2. Contingencies
(1). Important contingencies on the balance sheet dates
√Applicable □Not applicable
Unit: RMB
Item June 30 2021 2020
Contingent liabilities resulting 492928937.24 973992539.81
from the guarantee provided
externally
According to relevant regulations before the purchaser of the commercial
housing sold by the Group has obtained the property certificate the Group shall
provide the purchaser with a bank mortgage guarantee. As of June 30 2021 the
unsettled guarantee amount was RMB 9928856.22 (December 31 2020: RMB
16170141.08). 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
July 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 June 30 2021
Yiwu Shanglv actually borrowed RMB 377219002.51 from the banks in total
(December 31 2020: RMB 477659739.88). According to the agreement of the
guarantee contract it assumed the guarantee liability of RMB 184837311.23 for
the Agricultural Bank of China Yiwu Branch (December 31 2020: RMB
234053272.54). Yiwu State-owned Capital Operation Co. Ltd. provided a counter
guarantee for this guarantee.According to the resolution of the 19th Meeting of the 8th Board of Directors on
August 13 2020 the Group applies for a loan with a total amount of not more than
RMB 100 million for Yiwu Shanglv with the Bank of Communications Co. Ltd. Yiwu
Branch and provided a guarantee in proportion to the shareholding ratio. The
guarantee method was under joint liability the maximum amount of the guarantee
was RMB 49 million and the guarantee period was two years from the date of the
expiry of the debt performance period agreed in the independent contract until the
date of the expiration of the debt performance period of all last due main debt under
the master contract. As of June 30 2021 Yiwu Shanglv actually borrowed RMB
28404291.89 from the banks in total (December 31 2020: RMB 11500000.00).According to the agreement of the guarantee contract it assumed the guarantee
liability of RMB 13918103.03 for the Agricultural Bank of China Yiwu Branch
(December 31 2020: RMB 5635000.00). 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 June 30 2021
Huangyuan Shangbo actually borrowed RMB 266421958.33 from Industrial and
Commercial Bank of China Yiwu Branch and RMB 313669198.33 from Shanghai
Pudong Development Yiwu Branch (December 31 2020: RMB 674889305.56
RMB 614209347.22). According to the agreement in the guarantee contract it
assumed the guarantee liability of RMB 130546759.58 for the Yiwu Branch of
Industrial and Commercial Bank of China and RMB 153697907.18 for the Yiwu
Branch of Shanghai Pudong Development Bank (December 31 2020: RMB
330695759.72 RMB 300962580.14).(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
Effect on Reason
financial why the
status effect
Item Content
and cannot
operating be
results estimated
Issuance of On July 6 2021 the Company issued
ultra-short-term Zhejiang China Commodities City Group
financing Co. Ltd.’s 2021 6th issue of
bonds ultra-short-term financing bonds with a
maturity of 152 days and a one-off
repayment of RMB 1 billion at the interest
rate of 2.70%.2. Profit distribution
□Applicable √Not applicable
3. Sales return
□Applicable √Not applicable
4. Other post-balance sheet date events
□Applicable √Not applicable
XVI. Other important 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 are summarized as
follows:
(a) Market operation segment refers to the business that the Group is engaged
in market operation including the collection of business space usage fees and the
rent of auxiliary buildings and office buildings;
(b) The commodities sales division engages in the purchase and sale of goods
such as export trade;
(c) The hotel service division engages in the operation of hotels including
accommodation and catering services;
(d) The exhibition advertising division engages in the design production
placement and agency of advertisements;
(e) Other services division covers the provision of market-related auxiliary
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 Hotel Exhibition Other Set-offs Total
operation of service and services among
goods advertising divisions
Revenue from
external 1493 351 68 43 118 - 2073
transactions
Revenue from
inter-division 26 4 3 5 15 53 -
transactions
Loss for asset
- - - - - - -
impairment
Profits before
1120 -20 -15 -18 26 33 1060
tax
Total assets 38104 679 355 650 4894 14968 29714
Total liabilities 23163 944 371 585 1620 11055 15628
Capital
1117 - 70 7 63 - 1257
expenditures
Long-term
equity
investment in 1273 1 - - 25 - 1299
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
XVII. Notes to the main items in the parent corporate financial statements
1. Accounts Receivable
(1). Disclosure based on account age
√Applicable □Not applicable
Unit: RMB
Age Closing book balance
Within 1 year 6537270.58
1 to 2 years 111942.00
2 to 3 years 285968.46
Above 3 years 6118.00
Less: bad debt provision for accounts 46646.93
receivable
Total 6894652.11
(2). Disclosure by category according to the method of provision for bad
debt
√Applicable □Not applicable
Unit: RMB
Closing balance Opening balance
Bad debt Bad debt
Book balance Book balance
provision provision
Type Provisi Book Provisi Book
on value on value
Amount (%) Amount Amount (%) Amount
ratio ratio
(%) (%)
Accoun
ts
receiva
ble for
which
bad 6941299 100. 46646. 6894652 14686565 100. 14988. 14671577
0.67 0.10
debt .04 00 93 .11 .66 00 19 .47
provisio
n is
made
by
group
6941299 / 46646. / 6894652 14686565 / 14988. / 14671577
Total.04 93 .11 .66 19 .47
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 6941299.04 46646.93 0.67
combination of credit risk
characteristics
Total 6941299.04 46646.93 0.67
Standard for recognition of provision for bad debt by combination of credit risk
characteristics and descriptions:
□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
Unit: RMB
June 30 2021 2020
Estimated Expected Expected Estimated Expected Expected
Age book balance credit credit loss in book balance credit loss credit loss in
in default loss rate whole in default rate (%) whole
(%) duration duration
Within 1
6537270.58 0.01 618.70 14267749.52 0.01 1350.33
year
1 - 2 years 111942.00 0.51 570.57 407254.08 0.51 2075.80
2 -3 years 285968.46 13.76 39339.66 - 13.76 -
Above 3
6118.00 100.00 6118.00 11562.06 100.00 11562.06
years
Total 6941299.04 46646.93 14686565.66 14988.19
(3). Provisions for bad debts
√Applicable □Not applicable
Unit: RMB
Amount of change during the current period
Opening Recovery Closing
Type Charge-off Other
balance Accrual or balance
or write-off changes
reversal
Bad debt provision 14988.19 43220.80 11562.06 46646.93
for accounts
receivable
Total 14988.19 43220.80 11562.06 - - 46646.93
In which the recovered or reversed amount is important:
□Applicable √Not applicable
(4). Accounts receivable actually written off during the current period
□Applicable √Not applicable
(5). Accounts receivable from the five debtors with the highest closing balance
□Applicable √Not applicable
(6). Accounts receivable derecognized due to transfer of financial assets
□Applicable √Not applicable
(7). Amounts of assets and liabilities formed by the transfer of accounts receivable
and continuing involvement
□Applicable √Not applicable
Other notes:
□Applicable √Not applicable
2. Other receivables
Presentation of items
√Applicable □Not applicable
Unit: RMB
Item Closing balance Opening balance
Interest receivable 184625160.72 121401210.48
Other receivables 2811620059.16 2530239399.58
Total 2996245219.88 2651640610.06
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 184625160.72 121401210.48
receivables
Total 184625160.72 121401210.48
(2). Significant overdue interest
□Applicable √Not applicable
(3). Bad debt provision
□Applicable √Not applicable
Other notes:
√Applicable □Not applicable
As of June 30 2021 the receivable capital occupation fee was the capital
occupation fee collectable by the Company for providing financial assistance to joint
ventures and associated enterprises.Dividend receivable
(4). Dividend receivable
□Applicable √Not applicable
(5). Important dividend receivable with an account age longer than 1 year
□Applicable √Not applicable
(6). Bad debt provision
□Applicable √Not applicable
Other notes:
□Applicable √Not applicable
Other receivables
(7). Disclosure based on account age
√Applicable □Not applicable
Unit: RMB
Age Closing book balance
Within 1 year 2807478943.79
1 to 2 years 562964.60
2 to 3 years 1153947.81
Above 3 years 3120786.98
Less: Provision for bad debts of other 696584.02
receivables
Total 2811620059.16
(8). Categorization by nature
√Applicable □Not applicable
Unit: RMB
Nature of account Closing book balance Opening book balance
Financial assistance 2791718748.00 2480172779.00
receivable from joint
ventures
Receivables from - 42493714.00
self-operated land
Reserve 1695632.28 430887.57
Withholdings deposit and 18205678.88 7142019.01
margin
Total 2811620059.16 2530239399.58
(9). 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
285589.88 285589.88
January 1 2021
Balance as of
January 1 2021
in the current
period
Provision made in
561077.54 561077.54
the current period
Current reversal 120083.39 120083.39
Write-off in
30000.01 30000.01
current period
Balance as of
696584.02 - - 696584.02
June 30 2021
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
(10). Provisions for bad debts
√Applicable □Not applicable
Unit: RMB
Amount of change during the current period
Opening Closing
Type Recovery Charge-off or Other
balance Accrual balance
or reversal write-off changes
Bad debt
provision for
285589.88 561077.54 120083.39 30000.01 696584.02
other
receivables
Total 285589.88 561077.54 120083.39 30000.01 - 696584.02
In which the recovered or reversed amount is important:
□Applicable √Not applicable
(11). Other receivables actually written off during the current period
□Applicable √Not applicable
Notes on the write-off of other receivables:
□Applicable √Not applicable
(12). Other receivables from the five debtors with highest closing balance
√Applicable □Not applicable
Unit: RMB
Weight in the Bad debt
Nature of total closing provision
Debtor Closing balance Age
receivable balance of other Closing
receivables (%) balance
Yiwu Guoshen Shangbo Financial Within 1
Property Co. Ltd. 1372000000.00 48.79 assistance year
Yiwu Tonghui Shangbo Financial Within 1
929728548.00 33.06
Real Estate Co. Ltd. assistance year
Yiwu Handing Shangbo Financial Within 1
489990200.00 17.42
Real Estate Co. Ltd. assistance year
Yiwu International Construction
Above 3
Production Material Market commencement 2400000.00 0.09
years
Construction Headquarters deposit
Yiwu Power Transmission
Guarantee Within 1
and Transformation 279365.00 0.01
deposit year
Engineering Co. Ltd.Total / 2794398113.00 / 99.37
(13). Receivables involving government grants
□Applicable √Not applicable
(14). Other receivables derecognized due to transfer of financial assets
□Applicable √Not applicable
(15). Amounts of assets and liabilities formed by the transfer of other receivables and
continuing involvement
□Applicable √Not applicable
Other notes:
□Applicable √Not applicable
3. Long-term equity investment
√Applicable □Not applicable
Unit: RMB
Closing balance Opening balance
Item Impairment Impairment
Book balance Book value Book balance Book value
provision provision
Investment in
3872595391.43 570000000.00 3302595391.43 3727825391.43 570000000.00 3157825391.43
subsidiary
Investment in
associates and joint 4342527848.74 - 4342527848.74 2925310036.59 - 2925310036.59
ventures
Total 8215123240.17 570000000.00 7645123240.17 6653135428.02 570000000.00 6083135428.02
(1) Investment in subsidiary
√Applicable □Not applicable
Unit: RMB
Decrease Current Closing
Increase in the in the provision balance of
Investee Opening balance Closing balance
current period current for impairment
period impairment provision
Yiwu China
Commodities City
Supply Chain 55255.03 55255.03
Management Co.Ltd.Yiwu China
Commodities City
50073398.48 50000000.00 100073398.48
Import and Export
Co. Ltd.Yiwu China
Commodities City
Tourism 100024741.06 100024741.06
Development Co.Ltd.Yiwu China
Commodities City
Overseas
100041073.44 100041073.44
Investment and
Development Co.Ltd.Yiwu China
Commodities City
Commerce and
100000.00 100000.00
Trade Service
Training Center Co.Ltd.Zhejiang Yindu Hotel
Management Co. 1570540.29 1330000.00 2900540.29
Ltd.Yiwu China
Commodities City 81502780.94 18550000.00 100052780.94
Big Data Co. Ltd.Yiwu Global Yida
21442.25 21442.25
Logistics Co. Ltd.Yiwu
Comprehensive
Bonded Zone
6014844.64 5800000.00 11814844.64
Operation and
Management Co.Ltd.Yiwu China
Commodities City
1124741.06 2150000.00 3274741.06
Research Institute
Co. Ltd.Zhejiang Huajie
Investment and
53121810.63 6300000.00 59421810.63
Development Co.Ltd.Yiwu International
Trade
6597.62 6597.62
Comprehensive
Service Co. Ltd.Yiwu China
Commodities City
Assets Operation 5119278.43 4920000.00 10039278.43
and Management
Co. Ltd.Yiwu China
Commodities City 18044533.91 18044533.91
Exhibition Co. Ltd.Yiwu China
Commodities City 9411856.11 9411856.11
Advertising Co. Ld.Hangzhou Shangbo
Nanxing Property 50000000.00 50000000.00
Co. Ltd.Yiwu Commodities
City Gonglian 200000000.00 200000000.00
Property Co. Ltd.Yiwu Shangbo
300000000.00 300000000.00
Property Co. Ltd.Yiwu China
Commodities City
200603896.42 200603896.42
Information
Technology Co. Ltd.Yiwu China
Commodities City
3298.81 3298.81
Payment Network
Technology Co. Ltd.Yiwu China
Commodities City
22266.95 22266.95
Credit Investigation
Co. Ltd.Yiwu China
Commodities City
23449689.27 15720000.00 39169689.27
Logistics and
Distribution Co. Ltd.Haicheng Yiwu
China Commodities
43709.21 43709.21 570000000
City Investment
Development Co.Ltd.Yiwu China
Commodities City
1957469636.88 40000000.00 1997469636.88
Financial Holdings
Co. Ltd.Total 3157825391.43 144770000.00 3302595391.43 570000000
(2) Investment in associates and joint ventures
√Applicable □Not applicable
Unit: RMB
Change in the current period
Investment gains or
Investment Opening amount Closing amount
Additional Reduced losses recognized
Unit Balance Balance
investment investment with the equity
method
1. Joint ventures
Yiwu Shanglv
Investment
365830756.92 12789131.55 378619888.47
Development Co.Ltd.Yiwu Rongshang
22319075.64 -1407757.91 20911317.73
Property Co. Ltd.Yiwu
Chuangcheng 11444786.74 -2699662.50 8745124.24
Property Co. Ltd.Others 8713045.31 17850000.00 -999717.25 25563328.06
Subtotal 408307664.61 17850000.00 7681993.89 433839658.50
2. Associates
Binjiang Shangbo 154152267.42 98000000.00 20772839.91 76925107.33
Huishang
71396566.07 -1784080.98 69612485.09
Micro-finance
Chouzhou
371320662.02 29458129.47 400778791.49
Financial Lease
Pujiang Lvgu
370318840.77 117772150.42 488090991.19
Property Co. Ltd.CCCP 1225000000.0
1500517785.02 68512883.02 2794030668.040
Others 49296250.70 30000000.00 -46103.60 79250147.10
Subtotal 1255000000.0
2517002372.00 98000000.00 234685818.24 3908688190.240
1272850000.0
Total 2925310036.61 98000000.00 242367812.13 4342527848.740
Other notes:
□Applicable √Not applicable
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 previous period
Item
Incomes Costs Incomes Costs
Main 1381597109.86 380762791.32 1259705715.29 391267375.06
business
Other 206449135.92 48328145.43 403256371.61 26416255.20
businesses
Total 1588046245.78 429090936.75 1662962086.90 417683630.26
(2). Incomes from contracts
√Applicable □Not applicable
Unit: RMB
Classified by type of contract Total
Types of goods
The use of commercial spaces in the Commodity 1385613008.44
City and its supporting services
Hotel accommodation and catering services 63369848.47
Royalty income 60891687.05
Other services 8167489.86
Classified by business area
China mainland 1518042033.82
Classified by contract period
Revenue confirmed at certain time point
Hotel catering services 42497500.87
Other services 2795012.09
Revenue confirmed during certain time period
The use of commercial spaces in the Commodity 1385613008.44
City and its supporting services
Hotel accommodation service 20872347.60
Royalty income 60891687.05
Other services 5372477.77
Total 1518042033.82
Description of the income from contracts:
√Applicable □Not applicable
The income recognized in the current year and included in the opening book
value of contractual liabilities is as follows:
Unit: RMB Yuan
Type of contract Current period
The use of commercial spaces in the 1342225022.87
Commodity City and its supporting services
Hotel accommodation service 9242614.59
Total 1351467637.46
(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 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 City and 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 is collected 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:
On June 30 2021 the transaction price allocated to the remaining performance
obligations was RMB 1919954541.32. The Group expects that this amount will be
recognized as an income in the coming 5 years with the progress of relevant service
provision.5. Investment income
√Applicable □Not applicable
Unit: RMB
Amount in the current Amount in the
Item
period previous period
Long-term equity investment income
242367812.14 22242937.96
under the equity method
Investment income from disposal of
42837.72 21130827.03
held-for-trading financial assets
Total 242410649.86 43373764.99
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
Gain or loss from the disposal of
-630703.53
non-current assets
The main reasons include
that the value-added tax
deductible input tax for
taxpayers of production and
living services plus 100%
was used to deduct tax
payable for RMB 2.8458
million the special incentive
Government grants that are fund for modern supply
recognized in the current profit or chain system innovation for
loss excluding government grants 2020 was RMB 2.6827
that are closely related to the million the opening-up
8679086.10
businesses of the Company and promotion reward from for
are provided in a fixed amount or 2020 was RMB 960700
quantity according to the unified the subsidy for pilot
national standards counties in service industry
for 2020 was RMB 500000
the interest subsidy for
funding of the construction
of the International Expo
Center was RMB 577400
and the reward for general
trading companies was
RMB 336200 and so on.Cash occupation fees charged from
non-financial enterprises that are Cash occupation fee for
50288507.85
recognized in the current profit or receiving financial aid
loss
Gain or loss from changes in fair
value of held-for-trading financial
assets derivative financial assets
financial liabilities held for trading
Mainly changes in the fair
and derivative financial liabilities
1171429.82 value of held-for-trading
and investment income from the
assets
disposal of held-for-trading financial
assets derivative financial assets
financial liabilities held for trading
derivative financial liabilities and
other debt instruments except for
effective hedging during the
ordinary course of business
Net income from other
955973.37
non-operating activities
Effect of income tax -14839076.88
Effect of minority interest -91655.24
Total 45533561.49
Explanations shall be made for the non-recurring items identified by the Company
according to 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
Weighted EPS
Profits in the reporting
average ROE Basic earnings Diluted earnings
period
(%) per share per share
Net profits attributable to
common shareholders of 6.09 0.16 0.15
the Company
Net profits attributable to
common shareholders of
the Company after 5.77 0.15 0.15
deducting non-recurring
gains and losses
3. Differences in accounting data between foreign and Chinese accounting standards
□Applicable √Not applicable
4. Others
□Applicable √Not applicable
Chairman of the Board of Directors: ZHAO Wenge
Date of approving by the Board of Directors for release: August 9 2021
Amendment
□Applicable √Not applicable