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S.F. Holding Co., Ltd. 2019 Semi-Annual Report
S.F. Holding Co., Ltd.
2019 Semi-Annual Report
August 2019
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S.F. Holding Co., Ltd. 2019 Semi-Annual Report
Notice
The Company prepared its 2019 Semi-Annual Report in accordance with relevant regulations and
guidelines set forth by the China Securities Regulatory Commission and the Shenzhen Stock Exchange,
including the “Publicly Listed Company Information Disclosure Content and Format Guideline No. 3
Semi-Annual Report Content and Format,” the “Shenzhen Stock Exchange Listing Rules,” the “Shenzhen
Stock Exchange Standard Operating Guidelines for Small and Medium Enterprises,” and the “Small and
Medium Enterprise Information Disclosure Memorandum No. 2 – Matters Related to Periodic Disclosures.”
The Company's 2019 Semi-Annual Report was prepared and published in Chinese and the English version
is for reference only. Should there be inconsistency between the Chinese version and the English version,
the Chinese version shall prevail. Investors can access the Company's 2019 Semi-Annual Report on Cninfo
(www.cninfo.com.cn), which is designated by the China Securities Regulatory Commission for Publishing
the Semi-Annual Report.
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S.F. Holding Co., Ltd. 2019 Semi-Annual Report
Chapter 1 Important Information, Table of Contents, and Definitions
The Company's Board of Directors, Supervisory Committee, directors, supervisors, and senior management
hereby guarantee that the contents of the Semi-Annual Report are true, accurate, and complete, and that there are
no misrepresentations, misleading statements, or material omissions, and shall assume individual and joint legal
liabilities.
Wang Wei, the Company's responsible person, NG Wai Ting, the person in charge of accounting work, and
Wang Lixiu, the person in charge of the accounting department (accounting officer), hereby declare and warrant
that the financial report within the Semi-Annual Report is true, accurate, and complete.
All directors have attended the Board meeting approving the Semi-Annual Report.
Forward-looking statements such as future development plans in this report do not constitute the Company's
promise to investors. Investors are advised to invest rationally and to take into account possible investment risks.
The Company is required to comply with the disclosure requirements presented in the Shenzhen Stock
Exchange for Industrial Information Disclosure No.9 – Listed Companies Engaged in the Express Delivery
Services Business.
In this Semi-Annual Report, the Company details the possible risk factors and countermeasures that may
occur in the future. For more information, refer to “Section X. Possible Risks and Countermeasures” in “Chapter 4.
Management Discussion and Analysis of Business Operation.” Investors shall refer to this information.
The Company does not plan to issue cash or equity dividends, nor to convert equity reserve into share capital
of the Company.
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S.F. Holding Co., Ltd. 2019 Semi-Annual Report
Table of Contents
Chapter 1 Important Information, Table of Contents, and Definitions ........................................ 4
Chapter 2 Company Profile and Key Financial Indicators ........................................................... 7
Chapter3 Business Overview .......................................................................................................... 10
Chapter4 Management Discussion and Analysis of Business Operation .................................... 43
Chapter 5 Significant Events .......................................................................................................... 77
Chapter 6 Share Changes & Shareholder Details ....................................................................... 102
Chapter 7 Preferred Shares .......................................................................................................... 107
Chapter 8 Directors, Supervisors and Senior Managers ............................................................ 108
Chapter 9 Corporate Bonds .......................................................................................................... 109
Chapter 10 Financial Statements.................................................................................................. 110
Chapter 11 List of Documents Available for Inspection ............................................................. 277
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S.F. Holding Co., Ltd. 2019 Semi-Annual Report
Definitions
Term Description
Reporting period January 1, 2019 to June 30, 2019
The same period of
January 1, 2018 to June 30, 2018
previous year
S.F. Holding Co., Ltd., formerly known as Maanshan Dingtai Rare Earth and New
The Company, The listed Materials Co., Ltd. After completing a major asset restructuring (as defined below) in
Company, SF Holding
December 2016, it was officially renamed to S.F. Holding Co., Ltd. in February 2017.
RMB Renminbi yuan
Shenzhen Mingde Holding Development Co., Ltd., the controlling shareholder of S.F.
Mingde Holding
Holding Co., Ltd.
Maanshan Dingtai Rare Earth and New Materials Co., Ltd., The predecessor of S.F.
Dingtai New Materials
Holding Co., Ltd., it was renamed to S.F. Holding Co., Ltd. in February 2017.
Shenzhen S.F. Taisen Holding (Group) Co., Ltd., a subsidiary of S.F. Holding Co.,
Taisen Holding
Ltd.
Shunda Fengrun Ningbo Shunda Fengrun Investment Management Partnership (Limited Partnership)
Jiaqiang Shunfeng Jiaqiang Shunfeng (Shenzhen) Equity Investment Partnership (Limited Partnership)
Zhaoguang Investment Shenzhen Zhaoguang Investment Co., Ltd.
Suzhou Industrial Park Oriza Shunfeng Equity Investment Company (Limited
Oriza Shunfeng
Partnership)
Guyu Qiuchuang Suzhou Guyu Qiuchuang Equity Investment Partnership (Limited Partnership)
Shunxin Fenghe Ningbo Shunxin Fenghe Investment Management Partnership (Limited Partnership)
In December 2016, all assets and liabilities (exchange-out assets) of the Company's
predecessor, Dingtai New Materials, was replaced with the equivalent 100% equity
(exchange-in assets) of Taisen Holding held by all shareholders of Taisen Holding as
Major asset restructuring
of December 31, 2015. The difference between the exchange-in assets and the
exchange-out assets was purchased by Dingtai New Materials, the Company's
predecessor, from all shareholders of Taisen Holding, in the form of issuing shares.
Shenzhen Mingde Holdings Development Co., Ltd., Ningbo Shunda Fengrun
Investment Management Partnership (Limited Partnership), Jiaqiang Shunfeng
(Shenzhen) Equity Investment Partnership (Limited Partnership), Shenzhen
The restructuring
Zhaoguang Investment Co., Ltd., Suzhou Industrial Park Oriza Shunfeng Equity
counterparties
Investment Company (Limited Partnership), Suzhou Guyu Qiuchuang Equity
Investment Partnership (Limited Partnership), and Ningbo Shunxin Fenghe Investment
Management Partnership (Limited Partnership)
All assets and liabilities of the Company's predecessor, Dingtai New Materials, as of
Exchange-out assets
December 31, 2015.
Exchange-in assets 100% equity of Taisen Holding as of December 31, 2015.
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S.F. Holding Co., Ltd. 2019 Semi-Annual Report
Chapter 2 Company Profile and Key Financial Indicators
I. Company Profile
Stock Abbreviation SF Holding Stock Code 002352
Listed Stock Exchange Shenzhen Stock Exchange
Chinese Name of the Company 顺丰控股股份有限公司
Chinese Name Abbreviation of
顺丰控股
the Company
English Name of the Company S.F. Holding Co., Ltd.
English Name Abbreviation of the
SF Holding
Company
Legal Representative of the
Wang Wei
Company
II. Contacts and Contact Methods
Board Secretary Securities Affairs Representative
Name Gan Ling Zeng Jing
Address Wanji Business Building, Xinzhou 11th Street, Wanji Business Building, Xinzhou 11th Street,
Futian District, Shenzhen, Guangdong Province Futian District, Shenzhen, Guangdong Province
Tel No. 0755-36395338 0755-36395338
Fax 0755-36646400 0755-36646400
Email sfir@sf-express.com sfir@sf-express.com
III. Other Information
1. Corporate Contact Information
Were there any changes to the Company's registered address, office address or postal code, company website, or to
the email address during the reporting period?
□ Yes √No
There were no changes to the Company's registered address, office address or postal code, company website, nor
email address during the reporting period. Refer to the Company's 2018 Annual report for details.
2. Information Disclosure and Location of Report
Were there any changes to information disclosure and location during the reporting period?
□ Yes √No
There were no changes to the name of the newspaper designated for information disclosure, to the address of
website designated by the China Securities Regulatory Commission for semi-annual report publication, nor to the
storage location of company's Semi-Annual report during the reporting period. Refer to the Company's 2018
Annual report for details.
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S.F. Holding Co., Ltd. 2019 Semi-Annual Report
IV. Key Accounting Information and Financial Indicators
Does the Company need to adjust its financial information retrospectively or restate its previous year accounting
information?
√Yes □No
Rationale for retrospective adjustments or restatements
Business combination involving enterprises under common control
Increase/Decrease over
The same period of previous year the same period of
Current reporting previous year
period Before After After
restatements restatements restatements
Revenue (RMB) 50,074,704,033.85 42,503,599,511.93 42,550,906,755.42 17.68%
Net profit attributable to shareholders of
3,101,111,638.63 2,233,730,274.21 2,209,579,126.20 40.35%
the parent company (RMB)
Net profit after deducting nonrecurring
profit or loss attributable to shareholders 2,330,310,116.43 2,090,372,413.37 2,090,372,413.37 11.48%
of the parent company (RMB)
Net cash flow from operating activities
4,816,886,549.68 2,280,581,118.96 2,369,608,790.80 103.28%
(RMB)
Basic earnings per share (RMB/share) 0.70 0.51 0.50 40.00%
Diluted earnings per share (RMB/share) 0.70 0.51 0.50 40.00%
an increase of 1.66
Weighted average return on net assets 8.23% 6.67% 6.57%
percentage points
Increase/Decrease over
End of previous year
End of the current previous year end
reporting period Before After After
restatements restatements restatements
Total assets (RMB) 81,037,279,531.30 71,614,568,816.64 71,614,568,816.64 13.16%
Total equity attributable to shareholders of
38,405,163,518.71 36,561,011,876.15 36,561,011,876.15 5.04%
the parent company (RMB)
V. Differences arising from accounting standard of the PRC and the International Accounting
Standards
1. Differences between net profits and net assets disclosed in the financial reports in accordance with
Chinese accounting standards and international accounting standards
□Applicable √Not applicable
There is no difference between the net profits and net assets disclosed in accordance with Chinese accounting
standards and those disclosed in accordance with international accounting standards in the reporting period.
2. Differences between net profit and net assets disclosed in the financial reports in accordance with
Chinese accounting standards and overseas accounting standards
□Applicable √Not applicable
There is no difference between the net profits and net assets disclosed in accordance with Chinese accounting
standards and those disclosed in accordance with overseas accounting standards in the reporting period.
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S.F. Holding Co., Ltd. 2019 Semi-Annual Report
VI. Non-Recurring Profit or Loss
√Applicable □Not applicable
Unit: RMB
Item Amount Note
The amounts of such gains during the
first half year of 2018 and 2017 are of
83,365,835.91 and -16,019,009.67
Gains on disposals of non-current assets (including
315,373,555.74 respectively. The amount for the
offsetting amount for the provision of impairment of assets) current period mainly represents the
investment income from disposal of
subsidiaries.
Government grants recognized in profit or loss for the It mainly represents government
current period (excluding government grants that are subsidies arising from fiscal
175,408,699.42
closely related to the Company's business operations, in appropriation, transportation capacity
accordance with national uniform standards) subsidies and tax refund, etc.
Gains or losses from changes in fair value of financial The amounts of such gains during the
assets and liabilities held for trading, derivative financial first half year of 2018 and 2017 are of
assets and liabilities, and investment (losses)/gains arising -7,644,717.08 and -2,857,548.88
respectively. The amount for the
from the disposal of financial assets and liabilities held for 347,394,450.91
current period is mainly attributable to
trading, derivative financial assets and liabilities and other the gains arising from changes in fair
debt investments, excluding hedging activities related to the value of other non-current financial
normal business operations of the Company assets.
Net amount of other non-operating income and expenses 10,683,463.79
Less: Income tax effect 78,025,730.22
Profit or loss attributable to minority shareholders
32,917.44
(after tax)
Non-recurring profit or loss attributable to shareholders of
770,801,522.20 --
the parent company
Provide explanations for classifying non-recurring profit and loss items defined in the Explanatory Announcement
No. 1 for Public Company Information Disclosures – Non-recurring Profits and Losses, and for classifying
non-recurring profit and loss items listed in the Explanatory Announcement No. 1 for Public Company
Information Disclosures – Non-recurring Profits and Losses as recurring profit and loss items.
□Applicable √Not applicable
The Company has not classified non-recurring profit and loss items defined or listed in the Explanatory
Announcement No. 1 for Public Company Information Disclosures – Non-recurring Profits and Losses in the
reporting period.
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S.F. Holding Co., Ltd. 2019 Semi-Annual Report
Chapter3 Business Overview
I. Primary business of the Company during the reporting period
Is the Company required to comply with disclosure requirement of a particular industry?
Yes
Express Delivery Service Industry
SF Holding is a leading integrated express logistics service provider in China. After years of development, it
has basically established the capabilities of providing integrated comprehensive logistics solutions to customers.
Not only does it provide high quality logistics services from the delivery end, it has also extended its services to
segments of production, supply, sales and distribution in the front-end of the value-chains, and catered to consumer
demand by using data technologies such as big data analysis and cloud computing to provide customers with
comprehensive solutions including warehousing management, sales forecasting, big data analysis and. The logistics
products of the Company mainly include various types of express services such as express delivery, economy
express delivery, intra-city delivery, warehousing service and international express delivery; express transportation
services focused on LTL (less than truckload) service; and cold chain transportation services for customers in the
fresh produce, food products and pharmaceutical segments. Moreover, SF Holding also provides value-added
services such as insurance and Cash on Delivery (COD) as well as diversified and refined services to customers.
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S.F. Holding Co., Ltd. 2019 Semi-Annual Report
Based on the diverse needs of different industries, customers and scenarios, SF Holding adheres to the
“customer-centric, demand-driven and experience-based” product design philosophy that focuses on each
industry’s unique characteristics, and starts from the application scenarios of customers to drill into their
requirements for different use cases within the end-to-end whole process and other individual requirements of
customers. Thus SF Holding is able to design suitable products, services and solutions for customers while creating
value-added differentiation, and such product design in turn drives internal resource allocation and optimizes the
product system. SF Holding continues to enhance the competitiveness of its service quality by providing customers
with experience of fast product delivery and high service quality; continues to optimize operation model and
enhance resource efficiency while reducing costs and increasing efficiency, providing customers with cost-effective
services and achieving win-win for the Company and its customers. Meanwhile, SF Holding enables product
innovation with technologies to create industry solutions and provide customers with integrated comprehensive
logistics services.
SF Holding is also a smart logistics operator with network scale advantages. SF Holding has a gigantic logistics
network at home and abroad, including an “aviation network” consisting of all-cargo aircraft, commercial flight and
drones; a “ground network” consisting of operating service points, transit and distribution service points, land
transportation networks, customer hotline networks, and last mile networks; and an “information network”
consisting of various types of big data, blockchain, machine learning and planning optimization, AI recognition for
voice/image/computer graphics/smart security checks and smart logistics map. The three networks are integrated
into one “aviation +ground + information” network. This directly operated network has domestic and overseas
coverage and is a comprehensive logistics network system with the most powerful network control, the highest
stability, and the most unique resources in the industry domestically.
SF Holding adopts a direct operation model. The headquarter implements centralized operation and
management of all branch offices. It also centralizes collection, delivery, distribution, processing, transit and
transportation, and allocates network resources according to the actual needs of business development. Meanwhile,
SF Holding uses a large number of information technologies to ensure that the entire network implements uniform
standards, and has established a number of industry-leading business information systems to ensure the quality of
overall network operations. SF Holding is currently the first express delivery A-share company that adopts the direct
operation model.
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S.F. Holding Co., Ltd. 2019 Semi-Annual Report
II. Major Changes in Key Assets
1. Major Changes in Key Assets
Key Assets Description on major Changes
Accounts receivables Increased due to increase in revenue.
Other current assets Increased due to increase in wealth management products.
Equity assets No major changes.
In accordance with new standards for financial instruments , “available-for-sale financial
Available-for-sale financial assets assets” has been reclassified to “Investments in other equity instruments” and“other
non-current financial assets”for the current period.
Investments in other equity instruments Same as the above explanation for available-for-sale financial assets
Fixed assets Increased due to the addition of aircraft, accessories and buildings.
Construction in progress No major changes.
Increased due to the recognition of intangible assets arising from business combination
Intangible assets and completion of self-developed software.
Goodwill Increased due to the business combination.
2. Key Overseas Assets
√Applicable □Not applicable
Proportion of Significant
Details of Method of Asset Size Operating Net Profits
Location Controls Company's Risk of
Assets Formation (RMB) Model (RMB)
Net Assets Impairment?
CHUI YUK
HOLDING
Industrial
LIMITED Acquisition 3,935,315,496.90 Hong Kong — 20,186,497.53 10.25% No
park
and its
subsidiaries
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S.F. Holding Co., Ltd. 2019 Semi-Annual Report
III. Core Competitiveness Analysis
(I) Extensive technological capabilities contribute to its unique core competitiveness in the industry
(I) Extensive technological capabilities contribute to its unique core competitiveness in the industry
SF Holding continues to emphasize on and proactively invests in the construction of its various smart logistics
infrastructures, aiming to develop into a technology-driven industry solution service company with its
technology-led, innovation-driven, extensive operation and active exploration business model.
In terms of talents, as of the end of the reporting period, SF Holding employed more than 5,000 technology
staff, including outsourced labour, which is with a good talent structure. Regarding cooperation with universities
and enterprises, in 2019, apart from maintaining close cooperation with universities at home and aboard, including
Georgia Institute of Technology in the United States, Harbin Institute of Technology and Beijing University of
Aeronautics and Astronautics, the Company also successively established cooperation relations with many famous
universities at home and abroad such as Shanghai Jiao Tong University, Xi'an Jiaotong University, Shenzhen
Finance Institute etc. to further integrate diverse internal business scenarios with professional academic expertise,
striving to realize rapid upgrade of technological capabilities in core areas of big data, blockchain, operation
optimization, drones and robots. In addition, the Company specially invited top-notch experts and professors from
renowned academic institutions such as Stanford University, University of California, Berkeley and Nanjing
University as well as industry experts to deliver lectures or exchange ideas for continuous exploration in areas of
innovation and research of smart logistics technologies, so as to accelerate implementation and application of
industry-leading technologies in area of smart logistics.
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S.F. Holding Co., Ltd. 2019 Semi-Annual Report
In terms of technology, in the first half of 2019, SF Holding continued to enhance investment in research and
development technologies in areas such as big data and products, artificial intelligence (AI) and application, precise
map platform, smart equipment, intelligent hardware and integrated logistics solutions, which yielded stable
enhancement of its scientific capabilities. By the end of the reporting period, SF Holding had a total of 1,982 patents
and 854 copyrights awarded or under application. The number of invention patent applications in the first half of
2019 accounted for 60% of the total. At present, in terms of the number of patents held, SF Holding ranks first in the
domestic express delivery industry, and it is actively preparing for international patent applications. The utilization
of technologies and patent development strategy will effectively maintain SF's competitive strength in logistics and
related fields.
SF Holding’s major projects of smart logistics include:
1. Big data and blockchain technology application
(1) Big data ecosystem construction
As of the end of the reporting period, on the basis of continuous optimization of data collection and integration,
desensitization and security mechanisms, machine learning and data visualization, automated operation
maintenance and scheduling platforms, SF Holding further supported the business expansion in various business
segments of the Company including delivery, warehousing, freight, cold chain as well as pharmaceutical
transportation, international express, supply chain, with the amount of business data collected surpassing 35PB
level and the amount of average daily computation surpassing 1PB.
On the basis of established products and services of big data, SF Holding significantly reduced its investment
cost in hardware resources through continuous technology optimization and experience upgrade; incorporating
computer vision technology, the Company has built the Internet of Vehicles (IoV) solution to realise intelligent
monitoring of driving behaviors of drivers; through applying big data and AI technology in more than 20 projects,
the Company has greatly improved its operation and management efficiency, realized digitalized management of
the entire network, and further guaranteed SF's commitment of timeliness to customers while reducing cost and
enhancing efficiency for various business lines including operation, markets, human resources, finance and
property.
In 2019, SF’s Big Data Platform was granted the “Best Practice Case of Big Data” award from the Ministry of
Industry and Information Technology (MIIT), while the Data Beacon won the first prize of the first year of Science
and Technology Award in the postal industry. Through big data-enabled smart transformation of cooperative
enterprises, SF Holding has laid out and implemented scenario-based intelligent big data solutions in many areas
such as fresh produce retail, telecommunications and energy, and has also realized digitalization transformation and
upgrade for customers in traditional industries.
(2) Blockchain technology application
With the development of blockchain technology, SF Holding has successfully applied blockchain technology
in various scenarios based on its own business development requirement and strategic planning, and gradually built
up fully-engineered technical barriers for blockchains from academic papers to code, code to software, software to
products, and products to platforms. Regarding the traceability of drugs, vaccines, and medical devices, blockchain
technology is compatible with mainstream codes such as drug supervision code and GS1. Combined with IoT, big
data and packaging technologies, blockchain technology helps more pharmaceutical companies and regulatory
bodies achieve whole process traceability as well as quality and safety monitoring through integrating cold chain
solutions for drug supply chains and warehousing vehicles. Regarding cross-border commodity, food and
agriculture industry, through self-developed anti-counterfeiting technology and blockchain encryption scheme
together with the quality control systems inside and outside of SF's ecosystem, blockchain technology provides
agricultural customers with integrated solutions for intelligent agriculture consulting, logistics distribution and
terminal sales to protect food safety.
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S.F. Holding Co., Ltd. 2019 Semi-Annual Report
2. Smart logistics map
SF’s smart logistics map platform, based on the high-precision address platform of SF, is extensively applied to
the whole process of logistics including customer ordering, smart scheduling, transit sorting, planning
transportation, terminal distribution and operation management, providing smart location decision service more
tailored to logistics scenarios. Operation iteration has created the first logistics map service product of industrial
grade in China which has become the infrastructure for the construction of SF’s digital and smart facilities.
In the area of accurate address service, SF Map leverages on big data of geographical information in daily
average volume of hundred million and the core technological advantages in the self-developed 18-tier Chinese
address phrases to create an accurate smart address service platform. In the area of customer ordering, the accurate
address service platform utilizes accurate address matching services such as two-way geographical code, address
association, address correction and address reachable system to assist users in completing address input and
enhance the standardization level of addresses and user experience. The smart scheduling and transit sorting
segments, with the smart map routing distribution service as the core to build a closed-loop of operation with
forward and reverse business data mining, form a complete set of comprehensive, efficient and accurate
regionalized distribution solutions which also support diverse logistics scenarios such as “shipments from store”,
front warehouse distribution and smart cloud warehouses. The smart map distribution service has innovated the
processing model of online express parcels. Currently, the accuracy is even more than 99% under application
scenarios of smart scheduling, transit sorting and over-range address identification for couriers of express delivery.
In particular, the identification rate and accuracy of routing automatic distribution under the transit sorting
scenario is close to 100% in first- and second-tier cities, aiming to create a domestic top routing network. The
daily average request volume of the smart sorting operation carried out through SF’s “Fengme Order (丰密订单)”
routing sorting code reaches hundred million times, reducing over 70% manual inspection processing volume
caused by abnormal parcels. The SF address reachable system determines the delivery service area in advance,
greatly reducing the terminal transfer cost for over-range express parcels. In the area of high-precision map
service, SF Map focuses on the planning of walking and cycling routes for the “last mile” and the breakthrough in
truck navigation, predicting the required time, mileage and planned routes for logistics according to different
freight transportation capacities to enhance the due delivery efficiency. In the area of location decision service, SF
Map supports GPS, Beidou Navigation Satellite System, Wi-Fi, and base-station fusion location positioning to
provide a range of LBS logistics management decision-making services. As of the end of the reporting period, the
Smart Logistics Map has managed a daily average of 700 million data for couriers’ location and 7.5 million
kilometers of ground track data; the daily average request volume of cloud services has reached 330 million and
the daily average request volume of terminal SDKs has exceeded 700 million times.
Outside SF’s logistics scenario, SF Map opens the logistics precision map service platform to cooperative
partners of the SF Group to promote digital and smart development of supply chain and retail business in the vertical
segments of petroleum and tobacco. In the areas of public security, fire safety, emergency instruction and urban
management, map data fusion technology and accurate address service are provided to help government authorities
better manage and operate map data by linking up data islands to enhance government decision-making capabilities,
providing map technology support for construction of new-style smart cities and related areas.
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S.F. Holding Co., Ltd. 2019 Semi-Annual Report
3. Smart decision-making
(1) Business demand forecasting
Precise and efficient business demand forecasting is one of the core fundamentals in the transition from
traditional decision making to smart decision-making of the logistics industry. It is difficult for traditional demand
forecasting models to support the business needs of SF Holding because of issues such as low precision, slow speeds
and ineffectiveness when attempting to solve service points demand forecasting problems relating to holidays,
various effects of seasonality, complicated growth trends, and seasonal product effects.
SF Holding, has built a business demand forecasting system with deep learning, machine learning and time series forecasting
technology, that is highly compatible with characteristics of the logistics industry, to create business forecasts on hourly, daily,
monthly and other dimensions, and covered business demand forecasting in areas such as receipt and delivery, transition,
warehousing management, flow direction, calls of customer services centers and characteristic economy. Meanwhile, combining
advanced data model as well as algorithm technology and information platform development technology, SF has also built a
business demand forecasting platform which can help data scientists and engineers complete model deployment promptly, deduct
labor cost for model development and support large-scale data forecasting effectively and smoothly. Through historical time series
data backtesting, the platform automatically selects the most appropriate model and parameter combination, greatly reducing
development time length and version iteration cycle while responding to business change in a timely manner. The platform
contains various model libraries to meet different timing characteristics and diverse business scenarios. Currently, it has provided
forecast data which covers 100% of the service points in the entire network. In particular, flow direction forecasting provides
forecasting for receipt and delivery, flow directions in cities, product groups as well as heavy section to support resource planning
in peak time.
Currently, this service has been used to support business scenarios such as manpower planning, smart
scheduling and task dispatch at peak periods to help resource allocation for different business periods, so as to
reduce costs and improve efficiency.
(2) Site selection programming
In the logistics industry, selecting appropriate location of operation centers is crucial to the efficiency and
operation cost management of the entire logistics network. Traditional site selection of the logistics industry is
carried out with manual calculation and experience-based reasoning, which has problems such as insufficient
support by data and logic, poor performance on scientific decision-making, and being labor intensive and
time-consuming.
SF Holding has established a site selection planning system for the logistics industry by using big data,
operation research algorithms and machine learning technology in light of constraints in actual business scenarios,
fully considering various factors such as site function positioning, transfer capability coordination, customer
experience and site costs. Meanwhile, SF Holding has also constructed a high-standard and visualized information
system that can support site planning and operation management, to assist the Company in planning and making
decision of investment and management through online streamlining process and model intelligent recommendation
science. The system also develops a complete data display monitoring system through which details of site selection
plans with site layout can be seen at a glance in the form of visual display, and real-time monitoring can be carried
out after the plan is implemented, thus reducing consuming of manual labor as in traditional site selection approach
and improving the operational efficiency of the enterprise.
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S.F. Holding Co., Ltd. 2019 Semi-Annual Report
(3) Intelligent network and route planning
SF Holding has already built a versatile system consisting of a comprehensive network and route planning
algorithm that can be applied in various business scenarios. This system, integrating models of network design,
route planning, resource optimization and random simulation, helps improve the timeliness and reduce cost in
transportation. The network design and resource optimization models output corresponding network structure and
configure capacity and operational resources based on specific logistics product requirements together with various
key indicators of network such as timeliness, cargo capacity and node processing capability.
Transit model design: The network and route planning system optimizes the partition load in the transit depot
based on integration of inbound and outbound flows, location allocation optimization, and warehouse inventory
optimization so that collection and distribution is more efficient.
Transportation route planning: An example is SF’s intra-city high-speed network project
(顺丰同城高速网项目) which requires to manage large number of orders during peak hours with tight timeliness.
Therefore, according to the characteristics of the intra-city high-speed network, the project draws on the
hub-and-spoke network structure to propose a multi-level network structure that selects the distribution points from
the network points and selects the transit points from the distribution points to ensure delivery items convergence,
reduce vehicle input and improve operating efficiency of vehicles. The project, which has been implemented in
Shenzhen, has planned a new set of routes for feeder transportation for the inter-city business in Shenzhen. Through
reasonable planning of driving routes and meeting certain limitations, the project has enhanced the timing efficiency
of express delivery in the overall connection network while reducing vehicle transportation cost for express delivery
for the purpose of minimum cost, time consumption and distance. With the same standard of time efficiency,
intra-city delivery speed is accelerated greatly with the implementation of this project.
(4) Smart staff scheduling
Smart staff scheduling aims at optimizing staff management by creating a platform that can make all staff and
shift related information accessible online by using cutting-edge technologies such as operation planning and
machine learning, and then automatically generate the scheduling results according to the historical off-line
scheduling results and more importantly, automatically generate the optimized staff scheduling results, in order to
enhance employee utilization and reduce staff management costs. As a result, the staff arrangement is more optimal
and flexible and resource planning is more scientific.
(5) Digitalised management
With SF's huge daily average business volume, the logistics transit segment is crucial and efficient transfer of
express parcels must be ensured in order to better provide customers with fast, safe and efficient logistics services.
SF Holding has built a digitalized transit operation platform for different business scenarios at gateway hubs.
Through operation algorithm and machine learning technology, pre-preparation, in-process early warning and
post-analysis are carried out for comprehensive monitoring of various operation processes, while digitalised
operation solutions, core data-based analysis and panoramic perspective of core resources are provided to realize
express lifecycle management, enable intelligent decision-making and accelerate online and intelligent information
and resource management, hence driving transformation of traditional management models. As of the end of the
reporting period, digitalised management has been implemented at 100+ sites in SF.
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4. Computer vision
Through comprehensive utilization of computer vision, deep learning and other technologies, video and
pictures relating to parcels, personnel, vehicles and sites in logistics scenarios are analyzed. The smart vision system
is able to detect the working status of personnel, track the trajectory of parcels and vehicles as well as predicting
abnormal behaviors so as to realize smart management and deployment of personnel, vehicles, and sites, etc. It can
also effectively prevent damage to parcels and increase the efficiency of site operation. The overall solution includes
subsystems for vehicle operation analysis, site 6S management, personal appearance and behavior detection, whole
process of cargo traceability, parcel volume measurement, X-ray illegal contraband detection and high-precision
map information recognition for segmentation of different business scenarios and automatic analysis of various
types of image and video information to clear information black holes for smart logistics.
(1) Image recognition
Text recognition solution: The OCR platform has integrated several Chinese character recognition applications
including handwritten paper delivery order, identity card, business license, and general photographic recognition.
These applications can recognize specific handwritten or printed text lines by photos in different complex
backgrounds, which help dramatically improve the efficiency of manual inputting work. At present, the platform
has been applied for long-term use in various internal projects within the Company while enabling external
customers to provide industry solutions.
Smart traffic solutions: Due to the demand for high-precision map information in the logistics industry, SF has
developed a set of traffic information identification technologies. The products have realised collection of traffic
information for road and district areas automatically during the parcel delivery process. Several sub-projects are
included, such as traffic sign detection and recognition, detection of traffic lanes and district buildings as well as
shop POI information among others. Traffic sign detection and traffic lane detection can not only be integrated into
the driving assistance system, but also can be utilized in route planning and help vehicles make decisions in finding
accessible route. District building name detection and shop POI information detection, on the other hand, can be
utilized for collecting several types of information including district name, building number, shop name and so on.
At the same time, the product is able to calculate GPS information within a deviation of 30 meters and automatically
accomplish the map labeling to further help and refine high-precision map. The system has been put into trial
operation in several cities, saving 99% of the manpower verification costs.
Safe driving platform: ADAS and DMS equipment are installed on operating vehicles to collect environmental
data inside and outside of the vehicles in the first instance for identifying and tracking static and dynamic objects, so
that drivers can notice possible dangers, making proactive alarms to arouse attention and improving safety as soon
as possible. Alarm information will be uploaded to the safe driving platform, and driving behaviors of drivers are
analyzed and evaluated, while corresponding training and learning plans will be formulated to continuously increase
safety consciousness and driving skills of drivers, thereby reducing traffic accidents. For drivers at the receiving end,
by installing cameras on express delivery cars, illegal driving behaviors of couriers can be identified and alarmed
which can improve employees’ safety precautions and reduce loss of lives.
X-ray contrabands identification: X-ray images are identified through deep learning to automatically detect
categories of items passing through security check machines, and then identify contrabands. This measure can
improve the performance of security checks by 3 times, with recall rate and accuracy rate that are 9 times and 1.5
times respectively relative to manual security checks, thereby reducing significant systemic risk caused by
contrabands.
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Smart retail solutions: Involving all links of people, goods and sites, the solutions meet the demands of the
retail industry and brand manufacturers for tracking and inspecting real-time sales and customer flow status in sales
channels and sites. By installing cameras at key locations in stores, statistical analysis can be performed on attributes
of people such as flow, gender, age, hairstyle and clothing style of customers, while shelf product identification can
automatically count and replenish goods on shelves. Regarding sites, store location and store display, etc. are guided
through machine visions. Meanwhile, the solutions can also provide couriers with crowdsourcing services and
undertake the routing inspection tasks of brand manufacturers under retail environment in various regions, greatly
improving inspection efficiency.
(2) Video recognition
The “AI Argus (慧眼神瞳)” with independent product trademarks, patents and software copyrights
(hereinafter “Argus”) is the first domestic IVA (Intelligent Video Analysis) industry product independently
researched and developed for the logistics industry in China. It can monitor various types of violence and
non-compliant operations in operating sites in real-time and as a result of effectively reduce the probability of
damaged and lost items. It provides base data for the entire network including parcels traceability, loading rate
detection, vehicle scheduling, transportation capacity monitoring, and staff efficiency analysis. Continuous
feedbacks like real-time loading rate data of all vehicles in respect of express delivery and express transportation
trunk/branch routes promote optimization of transportation capacity and cost, provide full-process image and video
segment query capabilities based on package number, realise standardized business process management, site 6S
management in the field of the entire network and eliminates management blackholes.
The LPSS (Loading Procedure Structuring System) subsystem, in particular, automatically features vehicle
license plate recognition, vehicle arrival/departure time starting and ending event detection for loading and
unloading, instant volume loading rate and staff efficiency analysis through analyzing the monitoring screen of
cameras at the loading and unloading ports. LPSS enables digital recovery of the business scenarios at ports and
provides supporting fundamental data on vehicle deployment, transportation capacity monitoring, and staff
efficiency analysis of the whole network to decrease cost and enhance efficiency.
The VAPD (Violated Action Pattern Detection) subsystem is the algorithm entity for the employees in the
logistics industry such as sorting center and distribution center that can assure package is transported in a standard
manner. After deploying AI Argus, the venue data show that the number of damaged items in express transportation
dropped significantly by46%, and stabilized in a low-level range with no abnormal fluctuations.
The PLTS (Package Lifecycle Tracking System) subsystem is the world's first information system for
full-scale video segmenting and image tracking of express parcels. Through matching video data of 310,000
cameras with the operation of barcode scanner, the position of express parcels in each operation segment can be
found, while anomalies can be checked and identified through inquiry of waybill numbers or vehicle numbers. The
time efficiency of verifying and positioning issues can be improved by 2 times, while damage rate can be reduced by
means of management. Through collection of high-definition pictures of express parcels by industrial cameras,
intelligent detection of outer packaging damage, replacement of outer packaging and non-compliant stickers can be
carried out for real-time detection and timely intervention processing to reduce occurrence of damages. With a
capacity which is 5 times that of manual detection, intelligent damage detection can detect damage that is difficult to
be detected by naked eye and has significant detection results for penetrating damage, damage through wetness,
wrinkles/indentations.
The EIAS (Employee Image Assurance System) is mainly used in terminal points by using intelligent image
analysis technology to help business management department enhance the quality and image of employees, and to
monitor whether the decoration standards and operating environment of service points and sites and other outdoor
facilities in the city meet the standards. Through supervision of vehicle image, safety of transportation vehicles is
guaranteed and personal safety of transportation personnel is ensured. The control of package image contributes to
reduction of additional operating costs due to illegal packaging.
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By analyzing the monitoring screen of the camera, the 6SPD (6S Pattern Detection)system automatically
identifies whether the image of the site meets the standard and whether the tool is positioned as well as providing
fire prevention and anti-theft early warning monitoring and real-time alarm of aggression. With service target that
can extend to different industries, the product can improve and enhance corporate image, ensure safe production of
enterprises and reduce production costs, achieving network-wide standardized business management and
eliminating management blackholes.
(3) 3D perception
Weight and volume have always been the most fundamental elements in the logistics field, for which SF
Holding has launched the “Insta 3D”, a solution for volume measurement scenarios. In the collection and delivery
process, Insta 3D has solved the problem of manual volume measurement by couriers. Not only can the solution be
used to measure regular shape boxes, it can also be used to measure irregular shape boxes the whole process of
which can be completed within 2s. Comparing with manual measurement by rulers which takes about 30s, Insta 3D
has reduced measurement operation such as manual data input quickly and accurately, thus greatly improving work
efficiency.
5. Automatic sorting devices
Based on the fully independent research and development capabilities that have been developed in SF
Holding, smart automatic sorting devices for express transit come as the first step of modern express. Positive
effects have appeared in SF Holding through the deployment of smart automatic sorting devices: the 24-hour
continuous high-speed processing of parcels has been achieved, the transit processing efficiency has been
enhanced effectively, the sorting error rate has been reduced and the service quality has been improved
significantly.
Currently, a variety of smart automatic sorting systems that are low-cost, highly reliable, highly customized
and modularized, which have been massively deployed in transit fields, have been developed for various
requirements in different business scenarios by SF Holding. Issues such as the hardware, the mechanical structure,
the control algorithm, and the software are all designed independently during the development of smart automatic
sorting systems. Particularly, a product series of linear/circular cross-belt sorting system with high applicability,
whose processing capacity covers from 10,000 pieces/hour to 18,000 pieces/hour and the allowed number of
sorting direction is between 40 and 360, has been developed for sorting small packages. As for the hybrid scenario
with single delivery items and others with or without destination information, a product series including the
balance-wheel sorting system and the module-belt sorting system, which can be constructed by customized
modules for different business models, is developed. Meanwhile, the information flow and data flow of equipment
can be integrated effectively due to the independent development of smart automatic sorting devices, benefiting
from which a centralized control and data processing deployment platform for multiple types of equipment can be
achieved in the near future.
Meanwhile, SF Holding keeps ongoing model innovation, with its high-structure automatic sorting project for
use in heavy cargo sites, which is the first in China, put into operation. By realizing an unmanned sorting process for
the entire workflow of heavy cargoes, both manual strength and labour cost of operators have been reduced, filled
the gap in the area of automated technology application in the domestic heavy cargo sorting process and maintaining
the Company’s benchmark position in the industry.
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6. Smart hardware
(1) Smart Bluetooth headset
SF Holding has developed the industry's first voice assistant hardware product for the logistics industry -
Xiaofeng Smart Bluetooth Headset (hereinafter referred to as "Xiaofeng") which is applied to the collection and
delivery processes. It serves the purpose of protecting customers' privacy and improving the safety and work
efficiency of the couriers.
"Xiaofeng" takes voice recognition technology as the core, combines TTS voice broadcast and voice &
semantic analytic ability, and activates the couriers’ daily terminal manual operation through voice instruction,
which brings convenience and provides a more intelligent experience for couriers. In addition to voice interaction,
“Xiaofeng” also implements the voice wake-up function; that is, the couriers can wake up “Xiaofeng” to assist the
couriers to work in a simple voice command without any manual operation. Moreover, considering couriers’ actual
working environment, "Xiaofeng" has been specifically designed to give wearing comfort and uninterrupted battery
life, and is fitted with a dual microphone for noise reduction so that excellent voice recognition can be achieved even
in extreme environments.
“Xiaofeng”, equipped with the AI assistant, can free up the hands of couriers, give real-time assistance to
couriers’ work and the original 8-10 steps manual operation was reduced to a simple voice command, further
boosting the couriers’ work efficiency. At the same time, it supports continuous generation change and online
upgrading according to business requirements without replacing hardware. It has high flexibility and can adapt to
the business needs of different scenarios, improves data collection for operation at the collection and delivery end
and promotes the digital transformation of SF Holding.
(2) Smart hand-held terminals
The seventh-generation smart handheld terminals (HHT7) are customized based on the Android 8.1 operating
system. By collecting information in advance, information can travel faster than cargo while also guiding and
monitoring the flow of parcels. The high extending capability and compatibility of the terminals allow them to
support 1st-tier and 2nd-tier employees in accessing peripherals, which are highly compatible with business needs
while allowing on-demand configuration. In addition, the terminals’ features include industrial-grade security
standards, updated designs, and convenient human-machine interactions.
Currently, SF Holding has already completed the promotion and implementation of over 150,000 HHT7
throughout the entire network. Compared with the sixth-generation smart handheld terminals, there are several
upgrades and improvements including in mobile internet comprehensiveness, high-speed mobile scanning, and
operating system optimization. Meanwhile, the accessories adopt compatibility design that saves R&D and
certification costs while reducing management.
(3) Smart locks
The smart locks independently developed by SF Holding can decrease the level of investment in traditional
disposable car seals and mechanical padlocks, allowing keyless management, energy saving and environment
protection while reducing operating costs. Meanwhile, as carriers of data, smart locks enable seamless connection of
express mail routing information, thus the goals of digitizing task transfer, standardizing processes and improving
operation efficiency can be achieved.
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7. Logistics drones
SF Holding has a comprehensive plan for massive deployment of logistics drones for commercial purposes. It
aims at building a standard management system for the R&D, flight-testing, and operations of logistics drones under
various complex scenarios to complement the existing transportation capacity of the company and extend service
coverage. Logistics drones are expected to carry out transportation tasks across mountains and rivers, achieve
point-to-point transportation and even asynchronous handover, and resolve transportation challenges in various
special scenarios. The independent drone R&D team has mastered the core technology of logistics drones. The
number of patents under application or already granted exceeded 300, approximately 50% of which are invention
patents, covering drone design, cloud platform, operation management, and other logistics drone development and
application-related fields. These outstanding achievements include multi-copper and VTOL fixed-wing drones,
core avionics systems, ground control systems, and communication systems. On the production side, through
cooperation with domestic and foreign advanced drone manufacturers, SF has produced a variety of civil drones
with different loading capacities and flight distances for different geographical locations and operating scenarios.
The Company hopes to connect its aviation logistics networks to the trunks and feeders of its hubs through
logistics drones, providing aviation network coverage for cities categorized as third-tier and below, thus greatly
improving logistics efficiency. In the near future, express parcels are expected to arrive at any places throughout the
country within 36 hours by a three-segment air transport network inter-woven by “Mainline cargo freighters+ Trunk
to feeder large UAV+ End delivery small drones”, covering complex terrain and remote areas.
(1) Drone express logistics customized solution
For the end delivery and transportation scenarios, SF Holding has customized the drone express solutions to
meet the needs of various regions, established a logistics drone testing, production and operation system and
mastered the key technologies and production processes of logistics drones. A number of drone models have been
developed including H4, Ark, Manta Ray, C37, covering multi-rotor and vertical take-off and landing fixed-wing
drones, which are capable of delivering parcels of up to 10kg within 100km. These drones can perform vertical
take-off and landing and thus runways are not required. Besides they are easy to operate and cost little.
In terms of communication and control, SF Holding has developed a logistics drone communication base
station and an operation management and ground control system, which support the building of a large
communication network and centralized management and dispatching. The operation captain can monitor the status
information of all logistics drones in the service area in real-time in the dispatching center, and dispatch and control
the drones according to business needs. The SF Holding end delivery drone has formed a replicable model which
can be further expanded. The farm fresh delivery and regional specialty products distribution projects in Ganzhou
City of Jiangxi Province and Ganzi Autonomous region of Sichuan Province have been put under regular operation.
(2) Operation management and ground control system
Logistics drone operation management and ground control system is an intelligent dispatching system
developed for airspace applications. The system not only has basic functions such as route management, drone
status monitoring and job dispatching, but also can automatically assign drones model and batteries according to the
requirements of specific tasks and based on the performance of various drones and route environment information
while ensuring completion of missions and flight safety. Therefore human errors and resource wastage are basically
avoided. In addition, the ground control system collects operational data and performs calculations, and thus can
backtrack the operational process and perform statistical analysis on the traffic volume. These operational data will
form a part of SF logistics big data for the building of big data ecosystem.
SF Holding has established a standard data format and information interface for the operation and ground
control system. It can be used as part of the civil aviation information and control platform in the future, laying a
solid foundation for the future integration of airspace operations.
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(3) Obtaining policy support from the government
In August 2017, SF was assigned the first “UAV Logistics Distribution Pilot Project” by the Civil Aviation
Administration of China in Nankang District, Canzhou City, Jiangxi Province, on March 27, 2018. It was the first
nationwide drone airspace operation (pilot project) license granted by the Civil Aviation Administration of China
Eastern Region Administration, marking the official commercial application of China's logistics drones. After
nearly two years of drone logistics distribution pilot application, SF Holding has gained some technological
expertise and operational experience. Complying with the principle of unified development advocated by the Civil
Aviation Administration of China, SF Holding has gradually formed a replicable operation model which can be
applied elsewhere. In 2019, SF Holding continued its efforts in government-enterprise cooperation, drone logistics
distribution pilot application, flight airspace, and strived for policy support from the government, civil aviation
sector, and air force.
In order to accumulate more operational experience of various complex operational scenarios, promote the
development of drone operation and airworthiness standards corresponding to different operating risks, and provide
high-quality logistics and poverty alleviation services for the most urgently needed people in distressed areas, SF
Holding extend operations to remote areas of ethnic minorities in the western part of Sichuan Province and northern
Yunnan Province to carry out pilot work on plateaus, and try to solve the issues related to logistics drones in remote
areas of plateaus. At present, it has obtained approvals and supports from the Sichuan Provincial Government, the
Civil Aviation Administration of China Southwestern Region Administration, and the Ganzi Autonomous Region
Government of Sichuan Province. The relevant infrastructure, operation sites and supporting facilities have been
completed. SF Holding has been approved to operate in the airspace in the southwestern region of Sichuan Ganzi
Tibetan Autonomous Region, Aba Tibetan and Qiang Autonomous Region, Yunnan Diqing Tibetan Autonomous
Region and other parts, covering more than 30 cities and counties, benefiting more than 2.5 million poor people.
(4) Participation in the formulation of industry standards
In March 2019, SF Holding participated in the drafting and preparation of the “Regulations for the Operational
License of drone Logistics Distribution Operators” of the Civil Aviation Administration of China Eastern Region
Administration. In April 2019, SF Holding, in cooperation with the National Post Office, has applied for the
establishment of "Regulations for the Joint Information Collection and Exchange of Postal Express Delivery
Drones" and "Code for the Operation of drone Logistics Delivery". Currently, both standards have been initially
selected by the Ministry of Transport for the task of 2020 standards establishment. At the same time, SF Holding
cooperated with the Civil Aviation Administration of China Eastern Region Administration to apply for the
establishment of civil aviation safety capacity building project known as “Research on the drone Logistics Safety
Operation Standard and Service Management System”, which has been approved by the Civil Aviation
Administration of China and entered the implementation stage.
8. Digital warehousing
In the aspect of smart warehousing network, a complete SF cloud-based digital and automatic system has been
constructed to support E-commerce warehouses, automatic benchmark warehouse, cold chain warehouses, medical
warehouses, food warehouses, international shipping warehouses, SF operation and logistics warehouse, front
warehouse, micro warehouses, and other business-specific warehouses, for enhancing the handling capabilities for
daily operation support and peak season comprehensively. Based on demand from leading customers of various
product categories, omnichannel supply chain management, multi-dimensional data analysis, application of big
data and AI technology in intelligent warehouse network route, development and application of system solutions for
segmental industries, support for improving customer experience in warehousing is available. SF Holding has also
invested in an industry-leading web-based comprehensive warehousing service platform – Warehouse In Cloud, to
provide warehouse searching, warehouse leasing, integration of warehousing and distribution and other services,
upon which it has built the country’s leading “warehouse as a service” digital warehouse network platform focused
on warehouse big data applications, digital warehouse management, collaborated warehouse allocation, cloud
warehouse technology, and IoT sensing clouds. Empowering cooperative partners through internet, IoT and
information technology, an open digital warehouse ecosystem network is built for integrating online and offline
warehouse resources, fully participating in the hardware management of warehouse network and transformation of
delivery system, to facilitate SF warehousing in building an industry-leading business ecosystem platform to
provide more diversified warehousing solutions for customers.
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9. Smart packaging
(1) Construction of green packaging products ecosystem and smart platform
SF Holding has always been committed to promoting the lightweight, reused, reduced, recyclable, degradable,
intelligent application and implementation of packaging to build a sustainable packaging ecosystem. As of the end
of the reporting period, it has developed more than 100 sets of packaging solutions for the traditional, cold chain,
pharmaceutical, freight, special goods, intra-city catering and other industries, and constantly explore and innovate,
in areas of solar photovoltaic panels and white appliance, and innovation has been continuously explored. As to
solar photovoltaic panels and white appliance, the research and development of various characteristic packaging
products with independent intellectual property rights continues to create value for customers in various industries.
SF Holding has continuously pioneered and innovated in cold chain packaging. It has realized the
implementation of the standardized packaging products such as cherry, lychee, Chinese bayberry and peach, and
explored the application of new fresh-keeping, green materials and solutions, so as to improve the quality and green
level of fresh packaging. It is exploring the mode of pre-treatment center in the place of origin, aiming to help
standardize, industrialize and automate fresh fruits in the place of origin, to ensure the “first mile” of fresh products
delivery, improve the quality of fresh products and user experience, and create greater value for customers.
In terms of construction and implementation of green recycling system, SF Holding proposes “platform +
container + smart hardware” recycling strategy, and the self-developed “recyclable container management
platform'' realizes the unified management of various recyclable containers, embeds the recycling packaging into all
links of logistics, in which the reusable packaging box “Feng Box” has put into application in 96 cities including
Beijing, Shanghai, Guangzhou and Shenzhen, and has been recognized by dozens of domestic and foreign leading
brands.
(2) Construction of packaging technology research and testing laboratory
SF Holding has also continuously advanced and made breakthroughs in the research and standardization of the
underlying technology for packaging. Among them, the packaging R&D strategy has been gradually upgraded to
four major packaging R&D systems with logistics standards, material technology, product iteration and intangible
property rights as the core, which will help the Company to realize green, digital and automatic packaging.
As of the end of the reporting period, SF Holding completed the construction of packaging parametric design
platform to realize the intelligent iteration of packaging R&D; gradually promoted the basic technology research
such as road spectrum technology and packaging carbon emission technology, promoted the quantitative
measurement and monitoring of logistics packaging, so as to build a measurable evaluation system of green
packaging. SF Holding has applied for more than 260 packaging related patents, revised tens of national standards,
industry standards, enterprise standards, and carried out visual management for the above intangible property rights
to provide technical support and guidance for packaging R&D.
In order to continuously promote the research and verification of materials, methods and models for
sustainable packaging, SF Holding officially launched the physical packaging laboratory in Shenzhen in June 2019,
covering packaging transportation safety test, material performance test, physical and chemical analysis test and
sample preparation and other modules, which provides scientific basis for the research and development of
packaging solutions and the quality control of packaging materials.
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10. Information security
(1) Adhere to network security and ensure compliance
In the first half of 2019, SF Holding adhered to the basic principle of information security compliance and
actively carried out network security and privacy protection. It participated in the formulation of 3 safety industry
standards, newly applied for 9 invention patents in relation to information security, and fulfilled security
compliance.
In the first half of 2019, SF Holding started the ISO29151 personally identifiable information protection
certification on the basis of the practice of ISO27001 certification standard and the second- and third-level
evaluation requirements of network security protection. As a representative of the logistics industry, SF Technology
participated in the network security standardization technical review organized by the National Information
Security Standardization Technical Committee and Shenzhen Institute of Standard and Technology, covering cloud
computing security, IoT security, data security and others. The standards involved include “Cloud Computing
Security Technology Specification (《云计算安全技术规范》)”, “IoT Platform Security Technology
Specification (《物联网平台安全技术规范》)” and “Information Security Technology Hybrid Cloud Security
Technology Requirements (《信息安全技术混合云安全技术要求》)”.
SF Holding completed four security governance tasks initiated by the Ministry of Public Security, the State
Post Bureau, Guangdong Communications Administration and other departments in the first half of 2019, including
personal information protection, postal industry network security, big data governance, blockchain security.
Through overall inspection and identification of the gaps, we gradually improve the level of our enterprise
information security.
(2) Openness and cooperation to ensure all-round enterprise information
On June 27, 2019, the third SF Information Security Summit was held in Shenzhen. Hundreds of information
security practitioners from the State Post Bureau, The Third Research Institute of Ministry of Public Security, China
Electronic Standardization Institute, The Internet Police Command of Guangdong Provincial Public Security
Department (广东省公安厅网警总队), Shenzhen Network Information Office (深圳市网络信息办公室),
Tencent, Everbright Securities, Ping An Group and others from the government, business and academic sectors
gathered to exchange industry technology and development trends, break down barriers and jointly build a new
information security ecosystem.
During the Summit, SF released the "Cuiyu Data Security Solution (粹御数据安全解决方案) ", a set of
life-cycle data security solution products that SF has developed and used in the process of information security
construction through management and technology gained. Through the release and sharing of the design concept
and implementation ideas of the products, SF provides its own practical experience for the government, business
and academic sectors. It also provides a unique perspective for comprehensive data security protection, and arouses
a wide range of attention in the information security industry.
In the meanwhile, SF's big data security team shared a data security solution based on natural language content
learning, which uses unsupervised topic discovery, sequence tagging, keyword extraction and in-depth learning to
achieve automatic recognition of privacy information, standardization of consignment information and detection of
sensitive information in office documents, as well as automatic threat level assessment of test results. The program
not only effectively improves the ability of data security detection, but also improves the upper limit of enterprise
data security governance.
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S.F. Holding Co., Ltd. 2019 Semi-Annual Report
(II) Top ranking in satisfaction and quality for consecutive years, and good branding image
has been established
1. Top ranking in customer satisfaction for 10 consecutive years
According to the 2018 Express Delivery Service Satisfaction Survey issued by the State Post
Bureau(《2018年快递服务满意度调查结果通报》), S.F. Express ranked No. 1 in “Overall Satisfaction of
Express Delivery Enterprises.” SF Holding has topped the ranking for ten consecutive years since the State Post
Bureau began announcing the rankings for the first time in 2009. According to the Announcement on the Express
Delivery Service Satisfaction Survey in the First Quarter of 2019 and the Punctuality and Timeliness Test Results
(《关于 2019 年第二季度快递服务满意度调查和時限準時率测试结果的通告》) and the Announcement on the
Express Delivery Service Satisfaction Survey in the Second Quarter of 2019 and the Punctuality and Timeliness
Test Results 《关于 2019 年第二季度快递服务满意度调查和时限准时率测试结果的通告》 issued by the State
Post Bureau, the user satisfaction scores of express delivery services in the first quarter and the second quarter of
2019 were 77.6 and 78 respectively, while SF’s scores were above 80 and thus, it has continued to stay ahead of its
peers.
2. A continued decrease in complaint rate
According to the data in the Notice on Customers Complaint in Post Industry
(《邮政业消费者申诉情況通告》) published by the State Post Bureau monthly, in January to June 2019, SF
Holding’s complaint rate was 0.18 case (number of valid complaints per million parcels delivered), a decrease of
72% over the same period of last year, which was far below the national average of 0.57 cases.
Note: The monthly average valid complaint rate is a simple average calculation based on data in the
Notice on Customers Complaint in Post Industry (《邮政业消费者申诉情況通告》) published by the
State Post Bureau monthly.
3. Ranked No. 1 in timeliness throughout the entire process of express delivery service
In February 2019, the State Post Bureau released the 2018 Express Delivery Service Punctuality and
Timeliness Test Results (《2018年快递服务时限准时率测试结果》) , which evaluated the nine major express
delivery companies. SF Holding ranked No. 1 in all the six indicators, including timeliness throughout the entire
process, timeliness of handling at the place of origin, timeliness of transportation and handling at the place of
destination, delivery timeliness and 72-hour punctuality. SF Holding ranked No. 1 for six consecutive years since
the State Post Bureau first announced entire process rankings for express delivery in 2013.
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S.F. Holding Co., Ltd. 2019 Semi-Annual Report
4. Entering the BrandZ Top 100 Chinese Brands ranking consecutively
On May 29, 2018, WPP, a global communications group, and Kantar announced the list of ranking for “2018
BrandZ Top 100 Most Valuable Global Brands”. SF entered in the ranking list for the first time. The ranking list
shows that 15 Chinese brands entered the Top 100 list in 2018. On May 6, 2019, WPP and Kantar announced the
list of ranking for “BrandZ 2019 Top 100 Most Valuable Chinese Brands”. S.F. Express ranked 16th, and ranked
among the top in the list of ranking for two consecutive years, maintaining the top position among express
enterprises.
After over 20 years of operation, the SF brand has enjoyed extensive recognition and popularity in the express
delivery industry. “S.F.” has become synonymous with “fast”, “punctual” and “safe” in the express delivery
industry and is a preferred brand for corporate clients and high-end individual customers. Good market reputation
has brought a large number of high-quality corporate clients to SF Holding, long-term cooperation with a large
number of domestic and foreign renowned enterprises, including Apple, Xiaomi, Huawei, Uniqlo, Bestseller, Ping
An, Wish and Tophatter, in industries like 3C, apparel, finance, insurance and cross-border online trade have been
secured.
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S.F. Holding Co., Ltd. 2019 Semi-Annual Report
(III) The first express delivery A-share company with direct operation model
SF Holding adopts an operating model with strong management and control over the whole network, and it is
the first A-share express delivery company that adopts the direct operation model. The headquarters of SF
Holding controls all express delivery networks and core resources, including collection and delivery points, transit
depot, trunk and branch routes, aviation hub, aircraft, vehicles and employees. The direct operation model has
absolute control over the whole logistics operation and helps ensure unified in top-down corporate strategies, to
ensure effective achievement of corporate strategies and operation goals.
The direct operation model has the following advantages: (1) Ensure operating stability and control. The
express delivery industry is characterized by scale and networking, involving tens of thousands of operating
service points and hundreds of thousands of employees; and how to ensure the stability and control of the
company’s operations is the key to ensure future sustainable development. All levels of SF Holding’s business
entities from headquarters to service points, and the core business segments from collection to transit, and from
transit to delivery, have primarily adopted the direct operation model. Only a portion of non-core operations is
complemented by outsourcing. This model not only guarantees the stability of the Company’s business operations,
but also ensures the control in handling abnormal risk events, time sensitivity, quality and cost of operations, and
ensures the Company’s sustainable and healthy development in the future. (2) Facilitate standardized customer
service and operation management, thereby improving quality and efficiency. SF Holding adopts
standardized management across the entire network, together with a uniform top-down approach in operation
monitoring and appraisal mechanism within the company, it can effectively maintain service quality and
timeliness to ensure the customer experience and improve service perception. (3) Enhancement of
standardization and compliance in internal management. Benefiting from the advantage of being uniform,
standardized, and well-controlled, the direct operation model ensures that the Company’s external operations,
internal management, fiscal and taxation management, corporate governance, and other controls are standardized
and compliant to avoid various types of compliance risk, and accountable to the State, regulatory authorities, and
all shareholders. (4) Facilitate the new business to use the resources of the whole network to achieve
collaboration in terms of customers, systems, personnel and resources, etc., as well as fast incubation and
expansion. (5) Improvement in customer loyalty and brand reputation. The direct operation model enables
the Company to stay close to its customers and to fully and precisely understand their needs at first instance.
When a problem occurs, the direct operation model enables the Company to handle and respond to customers
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S.F. Holding Co., Ltd. 2019 Semi-Annual Report
immediately and ensure that service quality and customer satisfaction are maintained. As a result, SF Holding held
the top ranking in the industry’s customer satisfaction and brand reputation for ten consecutive years. (6) Better
control of the entire data process and core information. Under the direct operation model, information systems
and data of full processes are managed and controlled in a centralized and unified manner, which is beneficial to
the valuable big data analysis and application conducted by the Company on customer service. Especially in the
process of exploring the creation of smart logistics, the direct operation model helps black technology integrate
internal and external resources of the Company for fast application, upgrade and iteration into relevant businesses.
(IV) Unique and scarce intelligent logistics network, the “Aviation + Ground + Information”
three-in-one network
After years of dedicated operations with a forward-looking strategic framework, SF Holding has built up a
comprehensive logistics service network that integrates three networks “aviation network + ground network +
information network” into one with both domestic and overseas coverage. Under the direct operation model, with
strongest network control and highest stability, together with SF Holding’s heavy investment in information
network, SF Holding now owns abundant network resources that are most unique and scarce among industry
peers in China.
1. Aviation network
In 2009, SF Airlines became the first privately-owned air freight company in China, and currently it has
developed into an air freight company with the largest air cargo fleet in China. As at the end of the reporting
period, among the domestic express delivery companies, only three companies, namely SF Holding, EMS, and
YTO Express, have established logistic airlines with independent air transportation capabilities. SF Holding is a
leader in domestic industries in terms of quantity of cargo aircraft, number of routes and transportation capacity.
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S.F. Holding Co., Ltd. 2019 Semi-Annual Report
Cargo aircraft: (1) Fleet building: As at the end of the reporting period, SF Holding had a total of 55
self-owned all-cargo aircraft (including Boeing 767: 8 aircraft, Boeing 757: 29 aircraft, Boeing 747: 1 aircraft and
Boeing 737: 17 aircraft), with 23.34 years of average service time, and 14 chartered all-cargo aircraft, operating a
total of 65 flight routes. As at the end of the reporting period, SF Airlines operated flights to 43 major cities in
China and 15 international cities including Chennai, Bishkek and New York. In January 2016, when the first B767
wide-body cargo aircraft officially commenced operation, SF Holding became the first express delivery company
that owned a B767 wide-body cargo aircraft. In November 2017, SF Holding bought two Boeing 747 cargo
aircraft at an online auction platform in China, one of the aircraft had commenced operation in October 2018, and
the other aircraft is expected to commence operation in August 2019. Wide-body cargo aircraft has bigger space
for transportation, higher fuel efficiency, and better performance in transportation capacity and capability. In
addition to supplementing and optimizing the aircraft types in the current fleet, the introduction of new aircraft
models also allows better allocation of capacity resources in areas with sufficient cargo volume, improves time
utilization rate, saves energy and reduces emission. In the next three years, the size of SF Holding’s self-owned
fleet is expected to reach 80 aircraft, forming an aviation network comprising mainly four types of all-cargo
aircraft, including 737, 747, 757, and 767. (2) Reserve of pilot resources: SF Airlines has been recruiting talents
since its establishment, attracting pilots through strict internal management and service flow process to join SF
Airlines, and actively cultivates its own pilots through cooperation with domestic and foreign aviation schools. As
at the end of the reporting period, SF Airlines had a total of 479 pilots, including 195 captains, 248 co-pilots, and
36 student pilots. (3) Traffic rights and airport slots: Based on the allocation principle of “seniority” in civil
aviation flight schedules, SF Airlines has certain first-mover advantages when compared with other companies.
As at the end of the reporting period, SF Airlines had a total of 143 pairs of slots, covering 43 large and
medium-size cities nationwide and international cities including Chennai, Bishkek and Almaty. (4) Self-operated
ground support: Since 2015, SF Airlines operated ground support services directly in some cities gradually. By
shortening the time duration of ground services and improving the efficiency of ground servicing, more handling
time is available for the collection and distribution segments of express delivery and generates more momentum to
realize safety, stability and fast timeliness of express parcels. Shenzhen Airport’s southeast parking apron was
officially launched for operation in December 2017, further improving the operating efficiency of ground services
and the timeliness of cargo handling. (5) Aviation safety assurance: Since its inception, SF Airlines has made
aviation safety its priority, the SMS management system has been established to implement rules and regulations
strictly. From the first flight to the end of the reporting period, SF Airlines has operated approximately 306,800
hours safely and has been accredited by the CAAC and other regulatory agencies as a safe entity for 9 consecutive
years. In 2010, it was named “2010 Accredited Unit of Safety Responsibility” by CAAC Central and Southern
Regional Administration; in 2011, it was named “2011 Excellent Unit of Safety Responsibility” and “2011
Advanced Unit of Traffic and Transport Production Safety in Shenzhen” by CAAC Central and Southern
Regional Administration; in 2012-2013, it was named “Advanced Unit for Safety Responsibility” by CAAC
Central and Southern Regional Administration for two consecutive years; and in 2014-2018, it was named
“Accredited Unit of Safety Responsibility” for five consecutive years by CAAC Central and Southern Regional
Administration.
Commercial flight resources: In addition to all-cargo aircraft, SF has also secured stable passenger aircraft
bellyhold resources from about 100 commercial airlines at home and abroad through direct operations
(cooperating directly with airlines), agents (freight forwarders), or tripartite cooperation (SF, airlines, and agents)
to operate 2,023 flight routes at home and abroad.
Air freight capacity: As at the end of the reporting period, SF Holding’s all-cargo aircraft and commercial
flights operated a total of 2,088 aviation routes, the total number of flights in the first half of 2019 was 755,000,
with a daily average of 4,170 flights, covering 43 major cities in China and 15 international cities including
Chennai, Bishkek and Almaty. Total air cargo volume handled by the Company in the first half of 2019 was
approximately 617,000 tonnes, and daily average cargo volume handled was 3,407tonnes.
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S.F. Holding Co., Ltd. 2019 Semi-Annual Report
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S.F. Holding Co., Ltd. 2019 Semi-Annual Report
End of the current reporting period / Daily average during the
Resources
Current reporting period reporting period
Number of self-owned
55 aircrafts -
aircrafts
Number of external chartered
14 aircrafts -
aircrafts
All-cargo aircrafts
Number of all-cargo aircraft
65 routes -
routes
Total number of flights 17,600 flights 97 flights
Total cargo volume 255,000 tonnes 1,406 tonnes
Number of commercial flight
2,023 routes -
routes
Commercial flights
Total number of flights 737,000 flights 4,073 flights
Total cargo volume 362,000 tonnes 2,001 tonnes
Future airport construction: The Hubei International Logistics Hub project lies at the core of SF Airlines’
transportation system. In the future, SF will use this hub as the center of its air route network that covers the entire
country and reaches the world. The construction of the logistics hub project will provide good fundamental
support for enhancing timeliness of products, improving the stability of services, building high-end integrated
logistics service capabilities, and improving customer satisfaction, and is an important way to optimize the
Company’s aviation network structure and reduce its operating costs. In February 2019, having obtained the
“Approval reply on the Preliminary Design and Budgetary Estimates of the Civil Airport in Ezhou, Hubei, from
CCAC Central and Southern Regional Administration and Hubei Provincial Development and Reform
Commission” (CAAC CSRA[2019] No.59), the airport project entered the working drawing design stage.
2. Ground network:
Service points: SF Holding has built a nationwide express delivery service network and expanded it to major
countries around the world. As at the end of the reporting period, SF Holding’s business has covered 336
prefecture-level cities, 2,779 county-level cities, nearly 16,000 directly-operated service points. For international
business, the international standard express and international economy express businesses cover 62 countries
including the United States, the European Union, Russia, Canada, Japan, South Korea, ASEAN, India, Brazil,
Mexico and Chile. Among which, the international economy express business commenced in 8 African countries
including Congo (DRC), Uganda and Mali in June 2019. The international small parcel business, E-parcel, covers
225 countries and regions around the world.
Courier quantity: As at the end of the reporting period, the Company had about 286,400 couriers. The
Company responds to the call of the country’s drive for “Mass Entrepreneurship and Innovation” and encourages
some employees to start businesses that provide the Company with services of unified brand and quality standards;
and on the other hand, the Company actively makes use of social resources. This has not only significantly
improved employee motivation and labor flexibility, thereby improving resource efficiency and reducing costs,
but also effectively guaranteed the stability of customer service standards and quality.
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S.F. Holding Co., Ltd. 2019 Semi-Annual Report
Transit Hub Distribution: As at the end of the reporting period, SF Holding had 9 hub-level transit depots,
service points at 34 aviation and railway stations (excluding stations sharing sites with transit depots), and 150
sub-district transit depots (including Shunxin Express (顺心快运)), of which 44 transit depots have adopted the
automatic sorting system.
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S.F. Holding Co., Ltd. 2019 Semi-Annual Report
Ground transportation network: As at the end of the reporting period, SF Holding had about 35,000
directly-operated and outsourced vehicles for more than 90,000 long-haul and branch routes. The total number of
vehicles for terminal collection and delivery was 72,000 (excluding motorcycles and electric vehicles). 81
high-speed railway lines and 121 standard railway lines have been launched. The ground transportation network
of SF Holding covers the entire country. In addition, the Company has also entered into cooperation with the
National Railway Administration actively, a joint venture company has been formed to develop logistics business
by leveraging on the high-speed and standard railway resources, which helped the Company in making significant
strategic breakthroughs in obtaining railway resources, and the joint products developed by both parties have now
achieved considerable scale initially. As at the end of the reporting period, the extremely express delivery
products by high-speed railway covered 57 cities and 272 traffic flows. The convenient delivery products by
high-speed railway covered 34 cities and 69 high-speed railway stations.
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S.F. Holding Co., Ltd. 2019 Semi-Annual Report
Warehouse network: As at the end of the reporting period, SF Holding had 145 warehouses of different categories with a total
area of nearly 1.8 million square meters, forming a nationwide warehouse service network covering more than 100 major cities
across the nation, providing professional, efficient and high-quality warehouse service to nearly a thousand customers. In 2019, the
Company has continued to promote the building of core capabilities, and the overall capabilities of SF warehousing were enhanced
comprehensively. SF Holding promoted the implementation of automatic benchmark warehouses according to the demand of leading
customers in various segmental markets, and enhanced operational abilities through digital warehousing and efficiency enhancement，
reflecting the highest standards in the warehousing industry. The design capability of warehousing solutions has become a key core
component of SF’s supply chain solutions+ and provides strong technological support for acquisition of leading customers, and it is
one of the core capabilities to support the new vision of the Company to become a “technology service company for industry
solutions”. SF warehousing has been equipped with the capabilities of serving business modes such as shoes and apparel, 3C,
cosmetics and cross-border business, and has been recognized repeatedly by leading customers in the industries amidst market
competition.
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S.F. Holding Co., Ltd. 2019 Semi-Annual Report
Customer terminal service network: SF Holding has established four independent call centers in China
with about 4,200 seats and providing 900,000 instances of customer service daily. The Company provided 7*24
hours self-services through SF official website, monthly statement manager, APP mobile phone client, WeChat
mini-programs and WeChat public account, and provided services that understood users’ needs better and were
faster through the 95338 interactive voice response system, the intelligent voice recognition system and the online
intelligent customer service system. In 2019, SF Holding has been committed to establishing a customer service
system and a service strategy that led the industry, listening to customers’ voices, and timely and efficiently
solving customer appeals; continuously building an intelligent and digital service management system, applying
artificial intelligence and big data to the intelligent customer service system, proactively discovering and quickly
solving customer problems and needs with technology-driven services, and providing customers with professional,
efficient and warm services.
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S.F. Holding Co., Ltd. 2019 Semi-Annual Report
Last mile service: SF Holding has achieved last mile coverage through its cooperation with SF’s
commercial service points, cooperative agencies, property management, and smart express delivery lockers. As at
the end of the reporting period, SF Holding cooperated with 30,000 cooperative agencies and nearly 600 property
management companies. In addition, Hive Box Technology, a participating of SF Holding, had installed
approximately 150,000 smart delivery lockers in community/office buildings, covering 100 cities in China,
including Shenzhen, Guangzhou, Beijing, Shanghai, and Wuhan.
3. Information network:
SF Holding has built a high-speed network covering global business by combining logistics scenarios with
business needs, and instantly aggregated business information into SF Intelligent Brain, with the business data
volume exceeding the level of 35PB and the daily average calculated amount exceeding 1PB. The Company has
conducted analyses and made decisions through the intelligent brain, and achieved the integration of the three
networks of “aviation network+ground network+information network” into one network via coordination and
adjustment, supporting unlimited business possibilities.
SF Holding has independently researched and developed a complete set of smart network platforms, including SF’s core
operating systems, the SF Map platform, big data platform, information security platform, and smart O&M management platform.
The set of all those platforms has covered all business segments and scenarios to enable business in a fast, flexible, safe and
comprehensive manner, and has promoted logistics full chain information interconnection, which has created a smart and solid
foundation for the diversified business development of the Company. Meanwhile, the Company has also been committed to the
development and implementation of cutting-edge technologies, adhered to independent innovation, facilitated the upgrading of
intelligent logistics, applied cutting-edge technologies such as operation optimization, machine learning, deep learning, data analysis
and mining to more practical business scenarios, and supported new technology applications with cloud computing. The Company
has adhered to user-oriented product design to enhance business performance and user experience, and enabled technology and
products to be conscientiously implemented and better serve customers.
Moreover, SF Holding has also integrated internal resources. The Company used big data calculation and
analysis, operation optimization, artificial intelligence and other technologies to establish intelligent management
and intelligent decision-making platforms such as logistics operation analysis platform and business forecasting
platform by relying on massive internal and external data. The Company uses data and technology to make
decisions, operate and optimize processes, which has increased the efficiency and scientificness of operation,
created SF’s “intelligent brain” and realized data-driven technology and technology-enabled logistics.
SF Holding has coverage of domestic and international express delivery networks, coupled with the
Company’s constant attention and investment in smart information networks, a comprehensive logistics service
network integrating the three networks of “aviation network+ground network+information network” into one
network was formed, its unique and scarcity characteristics further consolidate and expand the leading advantages
of SF in the industry.
(V) With forward-looking plans for new business, integrated logistics showed gradual growth
in scale
SF Holding has been adhering to the development of a diversified network in recent years, which has
accelerated its transformation from a single service provider (express) into an integrated logistics service provider.
It has expanded horizontally into new businesses such as warehousing, cold chain, international product, freight and
intra-city instant delivery service to satisfy diverse customer needs; it has also extended vertically from back-end
delivery to the front-end of supply chain by leveraging on the sophisticated logistics system of SF and a portfolio of
quality products to offer customized logistic services for enterprises, and provides end-to-end integrated supply
chain solutions and services covering the entire process, including supply chain strategy, solution design,
implementation and operational management, to assist customers in optimizing, transforming and upgrading their
supply chains. After years of explorations and diligent efforts, the new business development in SF has gradually
seen results with a growing business scale. During the first half of 2019, new business revenue accounted for 23.66%
of total revenues with much higher growth than original express business, indicating that new businesses have
become the key driving force for business growth in the Company.
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S.F. Holding Co., Ltd. 2019 Semi-Annual Report
Rapid development of new businesses to supplement the coverage of products: New business lines of SF,
such as freight, cold chain and pharmaceutical transportation, intra-city instant delivery, have achieved stage results
and established network coverage with industry-leading depth and width, operational capabilities, innovative
technology, service quality and customer experience, as well as industry-leading market shares in their respective
sectors, established the brand image of quality services, and formation of long-term cooperative partnership with
leading customers of the sectors, these businesses have continued to maintain a high growth trend. All of the new
business lines will continue to rely on the sophisticated logistics network, operational capabilities and technological
capabilities of SF to deepen their penetration, improve their products and operating models in order to supplement
the coverage of products in the comprehensive logistics network of the Company.
Entry into supply chain through acquisition: In August 2018 and February 2019, SF Holding completed the
acquisition of cold chain business in mainland China, Hong Kong China and Macau China from the U.S. HAVI
Group and the acquisition of supply chain business in mainland China, Hong Kong China and Macau China from
Deutsche Post DHL to establish SF New HAVI and SF DHL business segments, respectively. The U.S. HAVI
Group has almost 40 years of supply chain management experience in cold chain operations, with leading
capabilities in supply chain management and solution design for cold chains, and provides cold chain logistic
services and one-stop supply chain solutions and services for global renowned customers. Deutsche Post DHL has
30 years of supply chain management experience in China, and provides industry-leading solution design and
supply chain services to renowned customers in the industries of automobile and industrial manufacturing, life
sciences and medical, high technology and spare parts logistics, fast-moving consumer products and retail sector.
The integration and synergies of the acquired business and SF business have generated initial results, the volume of
new business in New HAVI and SF DHL has recorded significant growth. Meanwhile, by relying on the advantages
of the logistics network and technological capabilities of SF Holding, the warehousing and cold chain business
segments in SF joined hands with New HAVI and SF DHL to fulfill the supply chain demand from leading
customers in food and fresh produce, new retail catering and 3C industries by providing more diversified and
superior standard supply chain services to customers. In the future, SF will continue consolidating high quality
logistics resources, learning and replicating supply chain experience and management capabilities rapidly, and
enhancing the supply chain management capabilities by leveraging on the technological capabilities of SF to further
upgrade the solution capabilities.
Technological solutions drive upgrading of industry supply chain: As internet gradually evolves towards
the internet-of-things, and with the fast arrival of industry 4.0 and the new retail era of all channels, enterprises with
conventional supply chains are forced to go for transformation or upgrading. SF technological solutions are driven
by technology and data, using SF DNA as genes, learning form the advanced supply chain industry experience of
New HAVI and SF DHL to create a digital, modular and one-stop intelligent supply chain management platform.
Through digital technology such as internet-of-things, big data and artificial intelligence, and by combining
products and processes in the model, supply chain services are provided to customers at three levels including
strategic planning, tactical plans and optimization, operational and implementation management to help customers
realize an upgraded supply chain system and create competition barriers. SF has provided comprehensive solutions
to certain industries, including but not limited to the following
3C industry: By leveraging its strong logistics network, technological advantages of big data and artificial
intelligence as well as its practical experience and capabilities of logistics visualization, SF has created a business
model that provides 3C customers with the whole process, end-to-end solutions for systematic, integrated, and
customized comprehensive services covering raw material - production and processing - channel distribution -
consumer (C2M2B2C). The model also helps the channel distributors of customers by building a capital logistics
platform and an after-sales service platform, by integrating information flow, business flow, logistics, and capital
flow, realizing the visualization, management, and control of the whole chain of the supply chain. As a result, we
further enhanced the depth and breadth of services so as to provide customers with domestic and international
end-to-end supply chain solutions services covering the whole chain of production, supply, marketing and
distribution.
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S.F. Holding Co., Ltd. 2019 Semi-Annual Report
Apparel industry: SF has assisted customers to perform comprehensive digitization and management
upgrading in inventory management by managing customers’ products from all aspects, including product
launching, distribution, replenishment and marketing, which have notably enhanced the transformation rate of
offline outlets and the product collection experience for online customers, digitized management has been realized
for online and offline outlets in the retail apparels industry. Through accurate customer images, online and offline
integration, unified management is realized for all sales channels. SF has provided supply chain solution services to
many famous international fashion brands.
Fast-moving consumer goods industry: Fast-moving consumer goods industry is characterized by mass
consumers, high frequency of consumption, complicated sales channels and high demand for convenience. Affected
by generation change and upgrading in e-commerce mode, fast-moving consumer goods and retail enterprises have
become more responsive to market changes. By relying on the full coverage and highly time-sensitive logistics
network, big data and artificial intelligence are used to assist customers to improve image precision and marketing.
SF has provided supply chain solution services to many international renowned brands of fast-moving consumer
goods.
Pharmaceutical industry: By relying on the logistics network, technological capabilities and hardware
facilities, SF provides systematic end-to-end software and hardware integrated supply chain solutions to customers
in the pharmaceutical industry, with connections across the five major chains of procurement, production,
distribution, consumption and reverse logistics. Through the assistance of technological systems such as smart
warehousing management, postal medical delivery, electronic delivery notes for drug categories, pharmaceutical
customers may reduce cost and increase efficiency. The research and development of hospital interior floor plans
and reverse QR code for sample testing procedures have improved the diagnostic/service experience of
patients/users. SF has provided supply chain solution services to several large-scale hospitals and customers in the
pharmaceutical industry.
Automobile and spare parts industry: In the first half of 2019, the weak trend of the whole vehicle market
continued from 2018, automobile enterprises are under higher pressure to reshape the supply chain, enhance the
quality and efficiency of supply chain to realize cost cutting. By utilizing the advantages in network and
transportation resources, synergies in big data and warehousing R&D capability, SF provides comprehensive
solutions to customers ranging from procurement logistics, production logistics, and after-sales logistics to
distribution logistics. It strives to realize automation and visualization of life-cycle management for orders, smart
router planning for milk-run circulating delivery, smart freight arrangement, smart warehouse allocation using big
data, digital supervision and management for safeguarding the whole process, so as to reduce production risks and
costs, accelerate the intelligent evolution and model reform of the industry, and ultimately enhance the quality and
efficiency of supply chain and reinvent the logistics experience for customers. SF has provided comprehensive supply chain
solution services to a number of domestic renowned automobile enterprises.
(VI) First-mover advantages with scarce logistics venue resources
Riding on sustained rapid growth in the express delivery industry and responding to the requirements of the
State Post Bureau in the “13th Five-Year Plan” for the express delivery industry to accelerate the construction of
logistics industrial parks, SF Holding committed to create an “Express+” and “Internet+” dual-core industrial park
service ecosystem, which will provide not only internal services for SF Holding, but will also provide
comprehensive package services in warehousing, logistics, business, information and capital flows for local
industries and external customers, creating a hub and communication window for effective linkage to government,
SF services and customer demand.
As at the end of the Reporting Period, SF Holding has successfully lay out the industrial park project across 45
cities, representing an addition of four cities, namely Haikou, Suzhou, Shenyang and Luoyang, as compared to the
end of 2018. SF Holding owned logistic land area of approximately 1,119 acres, and a total planned construction
area of approximately 4 million square metres, approximately 1.18 million square metres of construction area were
completed. The total net book value of logistic site resources was approximately RMB10.26 billion. In future, the
Company will utilize existing resources to fulfill internal requirements, further expanding the layout for core
strategic resources to enhance the core competitiveness for sustainable development.
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S.F. Holding Co., Ltd. 2019 Semi-Annual Report
In order to revitalize existing assets of the Company, satisfy the rolling development needs of projects, and
accelerate the layout of industrial parks, the Company has been actively exploring the innovation of securitization of
logistics industrial parks. In 2018, the Company was approved to issue RMB5 billion ABS by way of shelf offering
and completed the first tranche of issuance successfully, with total proceeds of RMB1.846 billion raised. It was the
first perpetual domestic REITs in respect of logistics property issued by way of shelf offering, meanwhile the
Company recorded investment gains of approximately RMB808 million on asset appreciation. In 2019, the
Company has proposed the issuance of the second tranche of ABS and is expected to raise total proceeds up to
RMB1.5 billion, and is expected to realize investment gains of approximately RMB600 million on asset
appreciation. As at the date of disclosure of this report, the second tranche of issuance is still in active progress.
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S.F. Holding Co., Ltd. 2019 Semi-Annual Report
Total planned
Total net book value
construction area Area of completed
Size of land area held as at the end of the
Location (including projects under construction/ construction
(acres) reporting period
planned) (10,000 square metres)
(RMB100 million)
(10,000 square metres)
East China 275.11 85.49 47.02 16.47
North China 144.31 47.13 20.20 12.93
Central China 391.09 136.71 20.82 17.82
South China 101.81 53.72 29.68 49.07
West China 206.42 76.96 - 6.33
Total 1,118.73 400.01 117.73 102.62
Note: The data in the above table has not been audited.
(VII) Warm, principled and productive SF culture
In SF Holding’s 26-year history of development, its genes of outstanding and strong corporate culture have
continually played an important role. Customer success, equality and respect, innovation, unity, and accountability
are part of SF’s culture. To SF, corporate culture is not just a belief, but more as a commitment and practice. It is
reflected in every word and action of all SF employees, is expressed in every operating process, and has become a
strong spiritual force that is embedded in SF’s cohesiveness, competitiveness, and vitality.
1. SF’s success is based on assisting customer to succeed
As a service-centric enterprise, SF Holding has always been customer-oriented and is committed to providing
customers with above expectation services, assisting customers to create value and achieve success. In recent
years, SF Holding has been trying to provide convenient and reliable international express, logistics and supply
chain solutions to domestic and international manufacturing enterprises, trading enterprises, cross-border
e-commerce enterprises and specialty economic products to help outstanding enterprises and products in China to
“go global” and “bring in” quality merchandise from overseas. Moreover, in industries such as 3C, fresh produce,
apparel and pharmaceutical industries, SF is able to provide comprehensive logistics solutions based on customer
needs and industry characteristics. While facilitating the success of customers, SF Holding also achieves its own
success.
2. Innovation drives SF forward
SF Holding advocates the culture of innovation, emphasizing that everyone and every move can be innovative. In recent years,
SF Holding has innovated continuously, not only in the field of logistic UAVs, smart devices and smart packaging, but also in
investment for building big data, AI automation, AI recognition and smart decision-making, and has achieved extraordinary results in
technological innovations such as artificial intelligence, Internet of Things, cloud computing and machine learning. In May 2019, the
“SF Big Data Platform”, a commercial decision big data solution researched and developed by SF Technology, won the “Top Ten Big
Data Cases” from the Ministry of Industry and Information Technology (MIIT). SF Technology has launched a smart blue tooth
earpiece “Xiao Feng” (小丰) by incorporating a number of AI technologies innovatively, and has been rated among the “Top 50
Smart Companies”(TR50) in 2019 by MIT Technology Review. Innovations also exist in front line business of SF. Among winners of
the “Best SF Person” Award, many of them are innovators. The power of innovation drives SF Holding moving forward continuously
at high speed.
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S.F. Holding Co., Ltd. 2019 Semi-Annual Report
3. Equality and respect uniting every heart
SF Holding advocates treating every person equally and with respect, regardless of his role and level within
the Company. In February 2017 at the listing ceremony of SF Holding, the courier who was beaten by a customer
was invited to ring the bell together with the Chairman to share the glorious moment. So far, SF has been
advocating the principles of “fairness, justice and openness” in staff employment, respecting the value of their
contributions, providing everyone with equal development opportunities and assisting staff to actualize personal
value. Meanwhile, online communication and interactive platforms such as “echo, Face Initiative, communication
hotline” are established to encourage employees to express their opinions and their ideas freely. The corporate
culture of equality and respect has further united hundreds of thousands of employees in SF.
4. United as one, we are strong
SF Holding advocates the spirit of solidarity. Everyone must be cooperative and unite every employee’s
strengths in order to achieve the same goals. During the peak season, such as the 11.11 Festival, Mid-Autumn
Festival, National Day, and Spring Festival, from Chairman to regional heads, and to third-tier functional staff, all
of them will go to network points and transit depots for providing support and sympathy and working together
with the frontline staff. By uniting all hearts, the dedicated SF Holding will have strong cohesive and fighting
power to act faster and burn brighter.
5. Be responsible proactively and contribute compassion
SF Holding advocates positive accountability. It does not only require employees to fulfill their responsibilities
and perform their duties during their work, but also encourage employees to take social responsibility. Under this
cultural influence, returning lost-and-found money, helping others, saving people and fighting fires, upholding just
and rightful acts, working for the public good, and other positive events occur more and more frequently among SF
employees. Acts of kindness included a resident driving a vehicle lost control and fell into a reservoir, at the most
dangerous moment, a courier from Dongguan district did not hesitate and jumped into the water amidst cold winds
to save the fainted driver from the water; a pregnant woman was in critical condition and needed platelets of blood
type O, but the blood bank supply was not enough, 21 young men from Nanjing district donated blood proactively to
help the pregnant woman overcome the critical moment; a baby was born in prematurity and needed urgent blood
transfusion within one hour, the child’s father was desperate and asked for help in the street, a courier in Beijing
district did not hesitate and went to the hospital immediately with the child’s father, 400 cc blood was donated to
save the life of the child and assured his healthy growth; ……all these positive cases attracted coverage by media,
such as People’s Daily and Express Magazine, some courier were presented “Good Personality Awards” by the
government to commend the couriers on taking social responsibility and disseminate positive values. Up to now, a
total of seven sessions of “Best SF Person” Awards were held and presented “Social Responsibility Awards” to 17
selected employees, conferring the highest SF honor to outstanding staff in the aspect of social responsibility.
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S.F. Holding Co., Ltd. 2019 Semi-Annual Report
Chapter 4 Management Discussion and Analysis of Business
Operation
I. Overall Performance of the Company during the First Half of 2019
1. Overall financial performance
Due to the uncertainties in the international situation and easing domestic market demand, the growth of the
revenue from the Company's traditional products slowed down during the first half of 2019. However, benefiting
from the sustained and rapid growth of the Company's new businesses, effective implementation of cost reduction
measures and efficiency improvement brought by the application of new technologies, the Company's overall
revenue growth remained healthy and its profitability steadily increased during the first half of 2019.
Revenue: During the first half of 2019, the Company realized 2.017 billion of shipments and revenue of
RMB50.075 billion, a year-on-year revenue increase of 17.68%. In order to cope with the changes in market
demand brought about by the adjustment of consumption structure, the Company adjusted its product strategy in due
course and launched new products for specific markets and customers, thereby realizing increase in volume and
revenue. At the same time, the Company continued to develop new businesses such as freight, cold chain and
pharmaceutical transportation, international express delivery and intra-city delivery. By establishing New HAVI
and SF DHL, SF Holding entering supply chain business, the scale of integrated logistics business is gradually
increasing. During the first half of 2019, the Company's revenue from new businesses (including supply chain)
accounted for 23.66% of the total revenue, and the rapid growth of the revenue from the new businesses contributed
significantly to the overall revenue growth of the Company.
Profit: During the first half of 2019, the Company realized a net profit attributable to shareholders of parent
company of RMB3.101 billion, representing a year-on-year increase of 40.35%, while net profit attributable to
shareholders of parent company after deducting non-recurring profits and losses amounted to RMB2.33 billion,
representing a year-on-year increase of 11.48%. The new businesses have achieved scale economy to a certain
extent. At the same time, benefiting from the application of various new technologies and effective cost reduction
measures, the Company's cost efficiency effects have been further demonstrated. Gross profit margin rose to 21.50%
in the second quarter of 2019, representing an increase of 3.5 percentage points from the previous quarter. During
the first half of 2019, the overall gross profit margin rose to 19.82%, representing an increase of 0.86 percentage
points from the same period of last year and an increase of 1.9 percentage points as compared with the whole year of
2018. Among them, the optimization and control of transportation costs have achieved remarkable results, which
are mainly reflected in two aspects: on the one hand, on the premise of ensuring timeliness, the routes are integrated
and dynamically optimized by means of business forecasting and route planning, so as to improve transportation
efficiency significantly. On the other hand, through the combination of deploying various transportation resources,
such as self-operating, outsourcing, and on-demand trucking platform, the optimal strategy of transportation
resources is realized, while the cost of transportation resources is continuously reduced without compromise of
quality. Having benefited from the above measures, the transportation cost to revenue ratio decreased significantly
year-on-year.
Financial Status: As at the end of the reporting period, the Company’s total assets were RMB81.037 billion,
an increase of 13.16% as compared with the end of 2018. Benefiting from stable and healthy profit contribution in
the first half of 2019, the Company's total equity attributable to shareholders of the parent company at the end of the
reporting period was RMB38.405 billion, an increase of 5.04% as compared with the end of 2018. As at the end of
the reporting period, the Company's debt-to-asset ratio increased slightly, from 48.45% as at December 31, 2018 to
52.26% as at June 30, 2019, while the level of debt remained relatively healthy and the financial position was stable
and optimistic.
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S.F. Holding Co., Ltd. 2019 Semi-Annual Report
The key financial indicators are shown in the table below. Please refer to the business discussion and analysis
in this Chapter for more detailed financial data analysis.
Current The same period Increase/Decrease
Item Indicators reporting of previous year over the same period
period (Restated) of previous year
Revenue from express logistic and supply chain
(billions RMB) 49.480 42.160 17.36%
Of which:
Business (1) Revenue from express logistic (billions RMB) 47.637 42.160 12.99%
Shipments (Billions) 2.017 1.858 8.54%
Average revenue per shipment (RMB) 23.62 22.69 4.10%
(2) Revenue from supply chain (billions RMB) 1.843 N/A N/A
Revenue (billions RMB) 50.075 42.551 17.68%
Net profit attributable to shareholders of the
parent company (billions RMB) 3.101 2.210 40.35%
Net profit attributable to shareholders of the
Income
parent company after deducting non-recurring 2.330 2.090 11.48%
Statement
profits and losses (billions RMB)
An increase of 1.66
Weighted average return on net assets 8.23% 6.57%
percentage points
Earnings per share(RMB/Share) 0.70 0.50 40.00%
End of the End of Increase/Decrease
current previous year
Item Indicators over previous year
reporting
(Restated) end
period
Total assets (billion RMB) 81.037 71.615 13.16%
Total equity attributable to shareholders of the
Balance 38.405 36.561
parent company (billion RMB) 5.04%
Sheet
An increase of 3.81
Debt to Asset Ratio 52.26% 48.45%
percentage points
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S.F. Holding Co., Ltd. 2019 Semi-Annual Report
2. The traditional business grew steadily and contributed to sustainable and healthy revenue
Customer resources: In response to the changes in the market and the diversification of customer demand, SF
Holding focused on industry characteristics and business clustering, centered on the direction of multiple-scenario
planning, digitalization and refinement, and tapped into customer demand for supply chain. By relying on
technological means to drive internal changes and upgrading product portfolio, we constantly improved customer
service capabilities and customer experience to achieve a stable and healthy growth of customer volume and
revenues.
Cash customers: Cash customer management adhered to customer-centric approach, continuously covered all
the scenarios of customer delivery services through the combination of online and offline platforms, focused on the
traffic volume of various online lifestyle applications, completed the coverage of online delivery service, deepened
the scenario planning for traditional offline delivery services and expanded the scope of new delivery scenarios for
users, and completed the coverage of offline delivery service. In respect of customer operation, the perception and
loyalty of customers have been continuously improved by formulating refined strategies to match different interests
and services of customers. As at the end of the reporting period, the number of members reached 200 million and
average monthly active customers exceeded 28.89 million, representing a year-on-year increase of 35%. In the
future, the Company will continue to consolidate the service framework capacity and upgrade, optimize and review
the operation tools, improve the efficiency of cash customer management, so as to jointly ensure the healthy
achievement of the business objectives and realize long-term and stable business growth.
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S.F. Holding Co., Ltd. 2019 Semi-Annual Report
Credit account customers: During the first half of 2019, SF Holding continued to focus on the industry
supply chains by distinguishing between different industries, between different business use cases throughout
end-to-end processes, refinement of all touchpoints, and digitization, to further improve customer service quality
and the customer experience, the number of credit account customers thereby increased steadily. We improved the
experience of small and medium customers through online platform operation. The number of active account
customers grew from 950,000 in June 2018 to 1.17 million in June 2019, representing an increase of 23%
year-on-year. Meanwhile, by approaching key industry customers with integrated logistics solutions, the customer
structure has been continuously optimized, and the proportion of major customers spending over RMB1million
continued to increase.
The stable and growing number of active customers, the full-cycle risk prevention and control system, the
multi-product portfolio, and the diversified solutions collectively ensure the long-term stable and healthy growth of
SF Holding’s revenue.
Time-definite Express: In 2018, SF Holding continued to consolidate and enhance the competitiveness of the
express products. Combining key resource capabilities and technological means, we optimized timeliness
throughout the entire process of express delivery service and achieved a rational price differentiation of products
using the technology pricing/cost model to improve product cost performance. Meanwhile, we focused on the
diversified needs of our customers and created regionalized products. Diversified high-quality services ensured the
healthy and stable growth of the business. During the reporting period, revenue from time-definite express was
RMB26.765 billion. The average delivery time of shipments decreased by 3.5 hours as compared with the same
period of last year. In the future, with the further improvement of the cost performance, the core competitiveness
will be further consolidated and the steady growth of the time-definite express business will be maintained.
Economy product: SF Holding continued to optimize and upgrade the economy products, improve a faster,
safer and more cost-effective ground transportation network, and optimize the end-to-end operation segments,
models and framework of products through scientific and technological empowerment, thereby further improving
the utilization rate of resources, reducing costs and increasing efficiency, and enhancing the competitiveness of
products. On the premise of ensuring service quality and timeliness, we made full use of the existing resources by
means of business demand forecasting and route planning, gave full play to the marginal effect of the existing
resources, and integrated and optimized the existing resources. For example, we merged the trunk and branch routes
with overlapping flow direction, time period and efficiency, replaced the vehicles with larger-capacity models, and
reduced the number ad hoc routes and branch routes, thus further improving the efficiency of scale and significantly
increase the loading rate.
The fast-growing traffic of the second-category e-commerce in the past two years is at a much faster rate than
that of its peers. The Company leveraged its unique advantages as a third-party logistics service provider, gained
customers' trust, and launched products and services with high cost performance through utilization of big data and
system integration. In May 2019, the Company launched new products such as preferential distribution for specific
markets and customers to meet the diversified needs of customers, and quickly gained market recognition, which
accelerated the increase in the revenue from and market share of economy products. The new products broke
through the price limitation of the original products, filled the gap in the price range, improved the economy product
portfolio and constantly kept pace with the market competition. In the meantime, through targeted sales approach
and technological means, the new products optimized the end-to-end operation model, such as centralized collection
of bulk items, delivery / pick-up by customers through transit depot, delivery to Hive Box locker, and so on, based
on the characteristics and needs of customers' business, thereby further improving the utilization efficiency of stock
resources and transport capacity, achieving cost reduction and efficiency increase, and at the same time realizing
more flexible and competitive quotations.
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S.F. Holding Co., Ltd. 2019 Semi-Annual Report
During the reporting period, the revenue from economy products was RMB11.46billion and the overall
timeliness fulfillment rate was 5% higher than that of during the same period of last year.
3. Strong development momentum of new businesses
(1) Freight
The freight business of SF Holding is divided into SF Freight and SX Freight. SF Freight is positioned in the
medium to high-end market with high-level requirements for timeliness, quality and service experience, and SX is
positioned in the mid-end market.
Through years of intensive development and cultivation, SF Freight has accumulated a large number of leading
customers across different industries including Huawei, Midea and Hisense. These high-quality customers not only
have stable operations and strong risk resilience, but also diversified service requirements, which provides solid
customer resource support and sustained momentum for the rapid development of SF Freight.
Relying on the advantages of SF Holding's network and resources, SF Freight provides customers with
door-to-door service, which is fast, stable, efficient, reliable, and cost-effective. At the same time, based on the
personalized needs of different customers, it offers tailor-made end-to-end integrated supply chain solutions and
services to customers, which effectively solves customer needs and pain points, and thereby helps customers seize
development opportunities. In addition, having benefited from the talents and technological reserves of SF
Technology, SF Freight has set up a specialized technology team to develop a digital operating system and
automation equipment suitable for the business scenarios of SF Freight by using SF Holding's exclusive advanced
technologies such as electronic freight maps, big data, computer graphics, operational planning, mobile AI
computing, and other advanced technologies, which serves the scientific decision-making and fine operation of SF
Freight.
As at the end of the reporting period, SF Freight had 44 transit depots and 1,131 service points, with overall site
area of over 1.38 million m2 , over 15,000 delivery vehicles, over 930 trunk routes and more than 7,000 branch
routes, covering 362 major cities and regions in 31 provinces nationwide. During the first half of 2019, SF Freight
stayed far ahead of its peers in terms of the growth rate in the high-end market, while the overall market share
continued to increase and the service quality steadily improved. In the second half of the year, the Company will
continue to enhance the network frameworks, strengthen study and development in sub-sectors and heavy cargo
sorting automation and technological application capacity building to further improve efficiency and
customer experience, and support the rapid growth. "
SX Freight" is an independent brand of Shunxin Express, a subsidiary of SF Holding, focusing on the whole
network mid-range freight market. As of June 30, 2019, SX Freight had 3,918 affiliated outlets and 132 direct
operation stations, with a total area of over 320,000 m2 and a 100% coverage of the major cities and regions
nationwide. SX Freight’s cumulative cargo volume increased by 114% during the first half of 2019 as compared
with the same period of last year and its overall volume growth momentum has maintained a leading position in the
industry. In the second half of the year, SX Freight will continue to strengthen the framework development and
enhance penetration of network coverage. SX Freight ensured cost performance with quality, and shared resources
with SF Freight in respect of operation mode and product positioning. At the same time, SF Freight and SX Freight
also shared resources and deepened complementarities in terms of depots, routes and transport capacities, thereby
helping each other enhance the competitiveness of their operation networks and service quality and jointly
providing customers with comprehensive logistics solutions.
During the first half of 2019, the revenue from Company's freight business as a whole amounted to RMB5.072
billion, representing an increase of 46.99% year-on-year, significantly higher than that of its peers.
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S.F. Holding Co., Ltd. 2019 Semi-Annual Report
(2) Cold Chain for food products and pharmaceuticals
At present, the domestic cold chain market is fragmented. Market participants are mainly regional or local
players. SF Holding is the first logistics company in China to initially establish a national cold chain network. As of
the end of the reporting period, SF Holding held 25 refrigerated food product warehouses with operation area of
158,800 m2, 433 refrigerated trucks, and food product transportation routes across core cities of China. SF
Holding’s refrigerated food product warehouses have already acquired international high-standard DQMP
certification, equipped with advanced automated refrigeration equipment, smart temperature monitoring and control
systems, and integrating the ability to manage multiple temperature zones, such as freezing, refrigerated, constant,
and room temperatures, with high-standard cold storage capabilities. Relying on advanced cold chain technologies
such as customized packaging, high-energy storage refrigerant temperature control technology, storage temperature
and humidity monitoring and warning systems connected to vehicle GPS, vehicle-mounted temperature control and
real-time monitoring systems, SF Holding provides customers with professional and efficient end-to-end cold chain
logistics distribution services throughout the whole process. The cold chain business already has covered many
sectors including production, e-commerce, sales and retail. Major customers include Hitomorrow, Family Mart and
Honest Dairy.
SF Holding has developed the concept of "Branch-to-Tongue, Farm-to-Table" for the promotion of Chinese
agricultural products. On top of the foundation built by continuously focusing on B2C in the industry value chain,
SF Holding will further develop the B2B service market, and enhance its "market competitiveness" under various
business scenarios through "model innovation, cost reduction and efficiency enhancement" to meet the
differentiated needs of diverse customers. Driven by technology, SF Holding created "new models of industry
solutions" for the regional special products and developed a new operation model of "trunk transportation +
delivery" for Shandong peach and Guangxi mango and "warehouse + trunk transportation + delivery" for Shandong
seafood and aquatic products. SF Holding adhered to the concept of "opening-up and win-win cooperation", shared
promotion channels and commercial platform resources, and actively built regional public brands so as to help bring
more special agricultural products out from the mountains to across the country. Among them, SF Holding, along
with the government and local associations, jointly organized a total of 17 activities under the themes of logistics or
production and marketing coordination. At present, the main agricultural projects include, among others, Yantai
cherry, Lingnan lychee, Xianju waxberry, Yangshan peach, Yunnan flower, and Ganzi matsutake. In the future, SF
Holding will continue to focus on "innovation" and "efficiency enhancement" in order to assist in the healthy and
rapid development of regional special economies by means of model adjustment, process optimization, and
technology empowerment.
In recent years, the government has continuously pushed forward the healthcare reforms. Under the influence
of policies such as the tiered diagnosis and treatment model, the centralized drug procurement program in “4+7
cities”, and the two-invoice system, pharmaceutical resources have extended to grassroots medical organizations,
and pharmaceutical circulation channels have been developing in a horizontal and decentralized way. This has
posed a great test to the network breadth and depth of pharmaceutical logistics distribution enterprises, as well as the
quality and safety guarantee in the process of pharmaceutical transportation and storage. SF Holding made use of its
resource advantages and relied on mature logistics network and technological capabilities to further improve a
deeper and broader pharmaceutical service network and provide services with the total solution capabilities of
customers in core industries. As of the end of the reporting period, SF Holding's pharmaceutical network covered
137 prefecture-level cities and 1,003 districts and counties, had 4 GSP certified pharmaceutical warehouses with a
total area of 30,000 m2 in addition to 36 trunk routes of pharmaceutical transportation, linking the core cities of
Northeast, North, East, South and Central China, and had 236 refrigerated trucks verified by GSP, and equipped
with a complete logistics information system and a self-developed TCEMS whole-process visual monitoring
platform. SF Holding focused on providing professional, safe and controllable logistics supply chain services to
customers in the pharmaceutical industry, covering many fields such as production, e-commerce, sales and retail in
the pharmaceutical industry. Major customers in the pharmaceutical industry include Bayer, Sanofi, Boehringer
Ingelheim, Hengrui Pharmaceuticals, Harbin Pharmaceuticals, CR Sanjiu, Qilu Pharmaceuticals, GPHL, etc.
In the first half of 2019, the Company's revenue from the cold chain and pharmaceutical business amounted to
RMB2.352 billion, representing an increase of 53.93% year-on-year, maintaining its rapid growth.
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S.F. Holding Co., Ltd. 2019 Semi-Annual Report
(3) Intra-city instant delivery
With the popularity of new retailing, the application scenarios of intra-city instant delivery are becoming
increasingly abundant, and consumers are paying more and more attention to the high-quality last mile delivery
experience. The instant delivery market reached RMB120 billion in 2019, and is expected to maintain a compound
annual growth of over 30% in the following three years. The market will exceed RMB200 billion in 2021, with great
market potential.
In the past three years, SF Holding has provided standardized intra-city delivery services with high cost
performance for catering, supermarket, clothing, pharmaceuticals and other industries, as well as customized
services with different scenarios, delivery distances and delivery models based on the special needs of different
customers. SF intra-city delivery business has always been focusing on the value proposition of "high quality, high
efficiency and full scene" in the field of instant delivery, with rich and diversified products, flexible and diverse
transport models and efficient operation and management, thereby building a nationwide instant delivery network
with high quality and efficient delivery and rapidly increasing market share.
In terms of brand image, SF intra-city instant delivery has built a neutral and reliable market image, which can
fully promote the brand value proposition to the customers, accumulated a large number of customers and good
reputation, and has become the preferred third-party distribution partner for independent merchants in the industry.
Our partner brands include McDonald's, KFC, Luckin Coffee, Tianhong, Yonghui, Pizza Hut, Uniqlo and other
industry-leading customers.
In terms of products and customer services, we not only continued to provide the best quality and customized
brand products for partner brands, but also launched economy products for small and medium-sized businesses to
form a diversified and healthy business portfolio. In terms of personal urgent delivery, the business has covered the
major urban areas of major cities across China, providing 24/7 direct delivery service.
In terms of operation and resource support, we continued to promote the integration of mixed transport models,
improve rider efficiency and further optimize operating costs. As for the service quality, we have always been
leading the industry in terms of aspects including personnel quality, equipment support, system level, and after-sales
service. We have also been providing customers with professional, safe, efficient, stable, high-standard and
high-quality delivery even in peak periods or abnormal weather conditions. In the future, we will continue to
enhance our ability to provide high-quality and efficient instant delivery services, and will also provide one-stop
new retail solutions for businesses focusing on the needs of retail operators, helping businesses to create lifestyle
experience at zero distance by bringing businesses to zero distance from consumers while bringing consumers to
zero distance from what they want at the moment.
During the first half of 2019, revenue from the Company's intra-city delivery business amounted to RMB0.786
billion, representing an increase of 129.13% over the same period last year, much higher than the average growth
rate of the industry.
(4) International Express
SF Holding is committed to providing convenient and reliable international express delivery and logistics
solutions for domestic and foreign manufacturing companies, trading companies, cross-border e-commerce, and
consumers, including international standard express, international economy express, international small parcel,
overseas warehousing, transshipping, international e-commerce express, and other different categories of timing
standards and import/export services. In addition, we can provide integrated and customized import/export
solutions based on customer needs including market access, transportation, customs clearance, and delivery. SF
international standard express / international economy express businesses cover 62 countries including the United
States, the European Union, Russia, Canada, Japan, South Korea, India, Brazil, Mexico, and Chile, among others.
In June 2019, 8 African countries including Tanzania, and Nigeria, among others were newly added to the scope
of international economy express business. The international small parcel business covers 225 countries and
regions across the world. Under the influence of the complex international environment, the demand for SF's
cross-border logistics services by domestic and foreign enterprises is increasingly growing. SF Holding will
further speed up the international network layout so as to help outstanding enterprises/products "go global" and
"bring in" overseas high-quality enterprises/products to China.
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S.F. Holding Co., Ltd. 2019 Semi-Annual Report
In response to the "the Belt and Road" initiative, SF Holding has been helping Chinese enterprises with their
overseas positioning, providing customized cross-border supply chain solutions based on diversified needs of
enterprises, and providing cross-border relocation logistics solutions for diversified industry value chains such as
cross-border factory relocation, cross-border transportation of domestic supply chain raw materials, local VMI
warehouse of overseas supply chain raw materials, and overseas F2B distribution and delivery. In August 2018,
SF’s Sino-Indian all-cargo flight helped a Chinese leading customer 3C brand by providing cross-border raw
material transportation and supply chain integration solutions. In May 2019, SF Holding provided a full-chain
cross-border factory relocation from China to India for a domestic high-tech electronic parts manufacturer.
SF Holding has been committed to providing end-to-end supply chain solutions for overseas renowned
enterprises and brands to enter the Chinese market. SF Holding has been serving an international chip and
semiconductor manufacturer since 2017. In 2019, SF Holding became the brand's core logistics provider and
successfully entered the supply chain service provider system of the manufacturer's upstream and downstream
supporting industries. With the increasing influence of SF Holding among overseas brands, an increasing number
of international enterprises choose to enter the Chinese market with the help of SF Holding. In September 2018,
SF Holding became a cross-border e-commerce export logistics provider for Tophatter, a US-based SFB platform,
serving 30% of the platform's sellers. The two sides jointly organized a special session of SF International
Training Class to provide an exchange platform for cross-border sellers from cities such as Hefei, Changsha and
Guangzhou, with a daily average shipment increase of 200%. In April 2019, SF Holding became Kaola.com’s
certified logistics service provider, providing Kaola users with cross-border import logistics solutions from the US,
South Korea, and Singapore, with the inflow from the US covering over 20% of customers of the platform.
During the first half of 2019, the revenue from the Company's international express business amounted to
RMB1.202 billion, maintaining its steady development.
(5) Supply Chain Business
In August 2018 and February 2019, SF Holding completed the acquisition of the cold chain business of
HAVI in mainland China, Hong Kong China and Macao China and the supply chain business of DHL in mainland
China, Hong Kong China and Macao China respectively, and established SF’s New HAVI and SF DHL businesses.
The integration and synergy between New HAVI and SF DHL businesses with SF Holding’s original businesses
have achieved initial results. On the one hand, SF rapidly learned from and replicated the supply chain solutions
and management capabilities of New HAVI and SF DHL. On the other hand, driven by technology and data, based
on SF’s DNA genes, and through digital technologies such as the Internet of Things, big data, artificial
intelligence, SF's technological solutions drive the transformation and upgrading of the supply chain to jointly
reshape the supply chain for customers and provide comprehensive solutions with multi-scenario products.
The integrated supply chain solutions and service capabilities of New HAVI are both professional in design
and feasible for implementation. In addition, New HAVI has a high-quality supply chain plan implementation
capability, and continuously optimized business workflow, and strengthened the development of resources and
technology framework so as to ensure stable and efficient service quality and supply chain plan implementation,
which has been highly recognized by customers and the industry. In March and May 2019, New HAVI was
conferred the titles of "China Outstanding Catering Supply Chain Service Provider" (中国优秀餐饮供应链服务
商) and the "Smart Logistics Service Brand Enterprise" (智慧物流服务品牌企) by the Cold Chain Logistics
Committee of the China Federation of Logistics and Purchasing and the China Communications and
Transportation Association respectively.
In the first half of 2019, New HAVI adopted a flexible and targeted business expansion strategy to meet the
needs of customers of varying scales and across different industries, and achieved sustained and healthy business
growth. At the same time, New HAVI continued to strengthen the construction of core resources and technology
framework to support rapid business development. Currently, it has 30 highly efficient cold chain logistics centers
(including internal leasing) in operation covering 19 core cities. New HAVI and SF's various business sectors are
actively cooperating with each other. SF Holding and New HAVI have integrated and shared resources such as
warehousing and transportation capacity to improve resource efficiency. In terms of IT systems, with the support
of SF Holding, New HAVI has reconstructed and upgraded its existing system service capacity and now has the
capacity to carry out platform business. On the other hand, SF Holding's various business segments have joined
forces with New HAVI to jointly expand cooperation with industry benchmark customers and provide customers
with high-quality cold chain B2B2C industry solutions. During the reporting period, New HAVI has signed
dozens of new clients.
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S.F. Holding Co., Ltd. 2019 Semi-Annual Report
Relying on the solid logistics infrastructure and customer base of SF Holding’s extensive network and the
global leading supply chain management experience of Deutsche Post DHL Group, SF DHL provides high-quality
integrated supply chain solutions to customers. In the first half of 2019, SF DHL seized the opportunities arising
from enterprise reform to improve supply chain efficiency and lean management, and tapped into customers'
demand for supply chain upgrading. Among them, in the automotive and industrial manufacturing sectors,
benefiting from its extensive experience in inbound logistics, after-sales logistics and digital innovation capability,
it actively utilized technological capacity of SF Holding and its technology partners to help customers
continuously improve the quality, efficiency and reliability of their supply chain. In terms of the fast-moving
consumer goods and retail industry, with the help of the capabilities of SF Holding's big data team and the service
experience of e-commerce customers, it successfully completed multiple B2B/B2C integrated warehouses and
opened up new business fields. In terms of the pharmaceutical industry, acquiring key qualifications and
capabilities through mergers and acquisitions has achieved rapid growth. As for the high-tech and 3C industries,
SF DHL has integrated resources with SF Holding's customers to jointly develop China's domestic high-tech
industries and 3C enterprise customers. During the first half of 2019, SF DHL's revenue continued to grow,
leading the enterprise supply chain market.
During the first half of 2019, the revenue from the Company's supply chain business amounted to RMB1.843
billion, of which the revenue from SF DHL was incorporated since March 2019 after the acquisition completed. In
the future, New HAVI and SF DHL will further bring synergy to the Company, thereby driving the Company's
overall supply chain business to grow rapidly.
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S.F. Holding Co., Ltd. 2019 Semi-Annual Report
II. Analysis on Main Business
For details, please refer to “I. Overall Business Performance of the Company during the First Half of 2019” under
the section “Chapter 4 Management Discussion and Analysis of Business Operation.”
Year-over-year changes to major financial data
Unit: RMB
Increase/Decrease
Current Reporting The same period of
over the same period of Rationale
Period previous year
previous year
Revenue 50,074,704033.85 42,550,906,755.42 17.68%
Cost of revenue 42,152,044,224,73 34,483,562,144.39 16.44%
Selling and distribution
884,549,456.76 973,618,226.32 -9.15%
expenses
General and administration
4,843,661,455.94 3,844,763,325.32 25.98%
expenses
Increased due to the increase in
interest expenses from increased
Financial expenses 331,609,607.60 54,420,723.81 509.34% borrowings and decrease in
interest income from inter-bank
deposits.
Income tax expense 882,642,296.52 790,949,730.08 11.59%
R&D investment (including
capitalized and expensed R&D)
Research and development increased by RMB 436 million,
1,208,951,470.76 773,427,188.15 56.31%
investment or56.31%, mainly due to the
increase in research and
development activities.
Increased due to the net profit
increase and impact of cash
inflow from sales of goods and
Net cash flow from
4,816,886,549.68 2,369,608,790.80 103.28% services being greater than cash
operating activities
outflows from purchases of
goods services and payroll
expenses.
Decreased due to the cash
outflow in acquisition of
Net cash flows from subsidiaries, increase in net cash
-13,153,751,568.98 -4,999,614,188.54 163.10%
investing activities outflow of wealth management
products and the purchase of
long-term assets.
Net cash flows from Increased due to the increase in
4,968,519,388.28 -1,216,079,983.17 -508.57%
financing activities net inflows of borrowings.
Please refer to the above analysis
Net increase in cash and of cash flow changes for
-3,371,260,653.60 -3,832,719,722.18 -12.04%
cash equivalents operating activities, investment
activities and financing activities.
52
S.F. Holding Co., Ltd. 2019 Semi-Annual Report
Did significant changes occur in profit composition or sources of profit?
□Applicable √Not applicable
Composition of revenue
Unit: RMB
Current Reporting Period The same period of previous year Increase/Decrease
Proportion of Proportion of over the same period
Amount Amount of previous year
Revenue Revenue
Revenue 50,074,704,033.85 100% 42,550,906,755.42 100% 17.68%
Categorized by industry
Express logistic and
49,479,804,469.27 98.81% 42,160,162,854.77 99.08% 17.36%
supply chain
Sales of goods 253,670,085.55 0.51% 54,768,168.17 0.13% 363.17%
Others 341,229,479.03 0.68% 335,975,732.48 0.79% 1.56%
Categorized by product
Time-define Express 26,765,052,056.21 53.45% 25,731,642,712.22 60.47% 4.02%
Economy Express 11,460,073,418.28 22.89% 9,885,355,748.45 23.23% 15.93%
Heavy Cargo 5,072,343,493.02 10.13% 3,450,872,512.36 8.11% 46.99%
Cold Chain 2,352,046,365.17 4.70% 1,528,029,936.00 3.59% 53.93%
Intra-City Delivery 785,671,660.75 1.57% 342,887,870.67 0.81% 129.13%
International Express 1,201,793,431.30 2.40% 1,221,374,075.08 2.87% -1.60%
Supply Chain 1,842,824,044.54 3.68% N/A N/A N/A
Others 594,899,564.58 1.19% 390,743,900.65 0.92% 52.25%
Categorized by region
Express logistic and
supply chain –East 14,440,657,980.91 28.84% 12,443,526,804.15 29.24% 16.05%
China
Express logistic and
supply chain –South 11,633,487,344.92 23.23% 10,660,429,957.42 25.05% 9.13%
China
Express logistic and
supply chain –North 11,295,843,131.23 22.56% 9,245,291,089.11 21.73% 22.18%
China
Express logistic and
supply chain 6,674,286,669.48 13.33% 5,656,142,970.02 13.29% 18.00%
–Central China
Express logistic and
supply chain –West 3,995,871,735.90 7.98% 3,250,923,966.29 7.64% 22.91%
China
Express logistic and
supply chain –Hong 1,106,991,784.15 2.21% 644,905,256.71 1.52% 71.65%
Kong and Macao
Express logistic and
supply chain 332,665,822.68 0.66% 258,942,811.07 0.61% 28.47%
–Overseas
Commodity and
594,899,564.58 1.19% 390,743,900.65 0.92% 52.25%
others
Note: Product revenue and district revenue in the preceding table have not been audited.
53
S.F. Holding Co., Ltd. 2019 Semi-Annual Report
Industries, products, or regions accounting for more than 10% of company revenue or operating profit
√Applicable □Not applicable
The Company is required to comply with the disclosure requirements of the “Guidelines of the Shenzhen Stock
Exchange for Industrial Information Disclosure No.9–Listed Companies Engaged in the Express Delivery
Services Business”
Unit: RMB
Revenue Cost of revenue Gross Profit Margin
Gross Increase/ Increased or Increased or
Revenue Cost of revenue Profit Decrease over Decreased over Decreased over the
Margin the same period the same period same period of
of previous year of previous year previous year
Industries
Express logistic
49,479,804,469.27 39,676,010,637.56 19.81% 17.36% 15.96% 0.96%
and supply chain
During the reporting period, the Company has accounted its operation costs according to the nature of resources
consumed appropriately. However, a fair and accurate allocation of cost by product or by region has not been
possible. It was because the express and logistics industry itself was basically a complex network, by highly
connection, overlaps in different types of resources consumed, all direction of waybills, a tremendous number of
customers, highly crossover of different types of resources fully shared.
Disclosure of express delivery volumes, revenues and average revenue per shipment and analysis of changes and
rationale
For more details, please refer to the “I. Overall Business Performance of the Company during the First Half of
2019”under the section “Chapter 4 Management Discussion and Analysis of Business Operation”.
Explanation for related changes greater than 30% as compared with those in the prior year period
□Applicable √Not applicable
54
S.F. Holding Co., Ltd. 2019 Semi-Annual Report
III. Non-core Business Analysis
√Applicable □Not applicable
Unit: RMB
Proportion of
Amount Reason Sustainable
Total Profit
Mainly including government grants
Other income 164,346,392.59 4.19% No
related to daily activities.
Revenue from
Mainly including investment income
wealth management
from wealth management products,
products is
arising gains/ (losses) from the disposal
Investment income 386,073,900.85 9.83% sustainable, while
of long-term equity investment and share
other investment
of net gain or loss of investee companies
income is not
by equity method.
sustainable.
Gains and losses arising from Mainly including changes in fair value of
330,207,611.55 8.41% No
changes in fair value other non-current financial assets.
Mainly including impairment losses of
Asset impairment losses 54,112,179.14 1.38% long-term equity investment and No
intangible assets
Mainly including bad debt losses of
Credit impairment losses 148,865,353.45 3.79% accounts receivables and other accounts No
receivables.
Gains /(Losses) on disposal of Mainly including the gains or losses from
-12,876,151.73 -0.33% No
assets disposal of fixed assets.
Mainly including government grants
Non-operating income 70,153,540.77 1.79% unrelated to daily activities and No
compensation income
Mainly including donations,
Non-operating expenses 41,761,260.71 1.06% No
compensation expenses, and penalties.
55
S.F. Holding Co., Ltd. 2019 Semi-Annual Report
IV. Analysis of Assets and Liabilities
1. Major Changes in Asset Composition
Unit: RMB
End of Current Reporting Period End of previous year
Increase/
Proportion
Proportion of Decrease in Major Changes
Amount of Total Amount
Total Assets Proportion
Assets
For details, please refer
to analysis on cash flow
in“II. Analysis on Main
Cash at bank and Business” under Chapter
12,487,217,955.15 15.41% 16,131,119,850.56 22.52% -7.11%
on hand 4 Management
Discussion and Analysis
of Business
Operation.
In accordance with new
standards for financial
instruments, financial
assets at fair value
through profit or loss
was restated as financial
assets held for trading;
certain structured
deposits that did not
carry the characteristics
of financial assets’
contractual cash flows
for principal and interest
were restated from other
Financial assets current assets to
2,525,764,638.79 3.12% - - -
held for trading financial assets held for
trading;
available-for-sale
financial assets were
restated as investment in
other equity instruments
and other non-current
financial assets. Except
for the above
re-classifications,
changes in financial
assets held for trading
for the current period are
mainly due to increase in
structured deposits.
Financial assets at Please refer to the above
fair value through - - 14,441,978.09 0.02% - financial assets held for
profit or loss trading description.
Please refer to the above
Available-for-sale
- - 3,423,527,060.27 4.78% - financial assets held for
financial assets
trading description.
Same as the description
for the above financial
assets held for trading ,
Investments in except for the impact of
other equity 4,042,698,444.01 4.99% - - - reclassification, changes
instruments for the current period are
mainly due to increase in
equity investment in
Flexport.
Please refer to the above
Other non-current
405,065,380.55 0.50% - - - financial assets held for
financial assets
trading description.
Accounts 8,438,161,191.55 10.41% 7,352,877,748.87 10.27% 0.14% Increased due to the
56
S.F. Holding Co., Ltd. 2019 Semi-Annual Report
receivables increase in revenue.
Inventories 735,112,901.55 0.91% 818,050,025.02 1.14% -0.23% No significant changes.
Increased due to the
Other current
4,940,497,682.72 6.10% 3,003,959,574.30 4.19% 1.91% increase of wealth
assets
management products.
Long-term equity
2,250,846,960.26 2.78% 2,203,431,122.03 3.08% -0.30% No major changes.
investments
Investment
2,478,519,190.07 3.06% 2,453,931,501.54 3.43% -0.37% No major changes.
properties
Construction in
6,216,142,800.45 7.67% 6,507,907,313.07 9.09% -1.42% No major changes.
progress
Increased due to the
increase in aircraft,
Fixed assets 15,090,191,297.79 18.62% 13,966,702,267.45 19.50% -0.88%
accessories and
buildings.
Increased due to the
value-added intangible
assets arising from
Intangible assets 9,269,904,840.92 11.44% 6,662,097,473.89 9.30% 2.14%
acquisition of
subsidiaries and
self-developed software.
Capitalized
development 613,265,656.66 0.76% 585,212,743.77 0.82% -0.06% No major changes.
expenditures
Increased due to
Goodwill 3,528,248,763.10 4.35% 590,365,319.20 0.82% 3.53% acquisition of
subsidiaries.
The company’s
borrowings include
short-term borrowings,
the long-term
borrowings and the
long-term borrowings
Short-term
10,329,017,919.04 12.75% 8,585,129,399.63 11.99% 0.76% due within one year .
borrowings
The total amount of
these borrowings
increased byRMB6.88
billion compared with
2018, mainly due to
increase in borrowings.
Current portion of Please refer to the above
non-current 577,267,751.27 0.71% 273,222,821.65 0.38% 0.33% short-term borrowings
liabilities description.
Please refer to the above
Long-term
5,922,181,122.48 7.31% 998,287,835.19 1.39% 5.92% short-term borrowings
borrowings
description.
57
S.F. Holding Co., Ltd. 2019 Semi-Annual Report
2. Assets and liabilities measured at fair value
√Applicable □Not applicable
Unit: RMB
Accumulated Provision
Changes in Fair Amount of
Fair Value for
Value Gains and Increase in the Sales in
Opening Balance Changes Impairment Closing Balance
Losses in Current Period Current
Included in in Current
Current Period Period
Equity Period
Financial assets
1. Financial assets held
for trading
(excluding 1,146,225,204.41 330,542,683.78 2,029,309,222.46 79,244,163.94 2,930,446,915.60
derivative financial
assets) ( Note1)
2. Derivative financial
assets 726,641.31 -335,072.23 383,103.74
3. Investments in other
equity instruments 2,812,830,084.90 24,629,582.65 630,682,562.62 54,996,904.29 4,042,698,444.01
Total financial assets 3,959,781,930.62 330,207,611.55 24,629,582.65 2,659,991,785.08 134,241,068.23 6,973,528,463.35
Total 3,959,781,930.62 330,207,611.55 24,629,582.65 2,659,991,785.08 134,241,068.23 6,973,528,463.35
Note1: In the current period, financial assets include structured deposits that do not carry the characteristics of contract cash flow for
principal and interest. The structured deposits have short maturities and are highly liquid, and net purchases and sales for the current
period is stated in the current period. (The purchased amount is RMB 16,980,000,000.00 and the sales amount is RMB
15,038,730,804.00.)
Did significant changes occur for the Company's major asset measurement attributes during the reporting period?
□Yes √No
3. Limitation of asset rights as of the end of the reporting period
Item Book Value at the End of Period（RMB） Limitation Reason
Cash at bank 32,247.00 SF Holding's Letter of Guarantee
Cash at bank 592,676,085.96 Legal reserves in the Central Bank
Fixed assets 534,736,222.21 Long-term borrowing mortgage
Intangible assets 1,292,367,113.77 Long-term borrowing mortgage
Investment properties 496,985,596.74 Long-term borrowing mortgage
Total 2,916,797,265.68
58
S.F. Holding Co., Ltd. 2019 Semi-Annual Report
V. Analysis of Investments
1. General situation
√Applicable □Not applicable
The Company is required to comply with the disclosure requirements of the “Guidelines of the Shenzhen Stock
Investment Amount During the Investment Amount During the same
Change
Reporting Period (RMB) period of previous year (RMB)
9,243,454,423.59 5,596,644,897.07 65.16%
Exchange for Industrial Information Disclosure No.9 –Listed Companies Engaged in the Express Delivery
Services Business.”:
Investment Amount During the Reporting Period (RMB)
Office and Buildings 93,446,749.92
Land 299,994,256.45
Warehouse 262,012,638.96
Sorting center 432,052,604.01
Aircraft 902,953,344.52
Vehicle 142,648,423.61
Information technology equipment 289,260,664.05
Equity investments 5,948,878,786.99
Others 872,206,955.08
Total 9,243,454,423.59
59
S.F. Holding Co., Ltd. 2019 Semi-Annual Report
2. Significant Equity Investment Obtained During the Reporting Period
√ Applicable □Not applicable
Unit: RMB10 thousands
Progress Investment
Name of Whether
Principal Investment investment Shareholding Capital Investment Product as of the Expected profit/loss Date of
investee Partner involved in Disclosure index
business method amount ratio source period type balance return for current disclosure
company litigation
sheet date period
DHL
The subject
SUPPLY
matter of the
CHAIN Refer to the Announcement
acquisition
(HONG Self-owned
Supply does not No.2018-094, No.2019-013 and
KONG) and February
chain Acquisition 550,000 100% N/A N/A N/A completed N/A N/A involve
LIMITED self-raised 19, 2019 No.2019-023 disclosed by the
business major Company on CNINFO
and DHL funds
disputes, (http://www.cninfo.com.cn).
Logistics
litigation or
(Beijing)
arbitration
Co., Ltd.
Total -- -- 550,000 -- -- -- -- -- -- -- -- -- -- --
3. Significant Non-Equity Investment Ongoing During the Reporting Period
□Applicable √ Not applicable
4. Financial Assets Measured at Fair Value
√Applicable □Not applicable
Unit: RMB
Changes in Fair Amount of Amount of
Accumulated Fair Accumulated
Value Gains and Purchase During Sales During
Asset Type Initial Investment Cost Value Changes Investment Closing Balance Capital source
Losses in Current the Reporting the Reporting
Included in Equity Income
Period Period Period
Stock 756,424,305.71 - 31,339,063.00 - 76,308,098.62 7,595,857.55 792,918,258.45 Self-owned funds
Financial derivatives - -335,072.23 - - - 233,341.47 383,103.74 Self-owned funds
Others 5,429,254,608.57 330,542,683.78 -6,709,480.35 2,659,991,785.08 57,932,969.61 71,912,874.60 6,180,227,101.16 Self-owned funds
Total 6,185,678,914.28 330,207,611.55 24,629,582.65 2,659,991,785.08 134,241,068.23 79,742,073.62 6,973,528,463.35 --
60
S.F. Holding Co., Ltd. 2019 Semi-Annual Report
5. Investments in Securities
√ Applicable □Not applicable
Unit: RMB
Accumulated Purchase
Book value at Gains and losses Sales amount Gains and Book value at
Accounting fair value amount
Security Stock Abbreviation Initial the beginning from changes in during the losses of the the end of the Accounting Capital
Measurement changes during the
Type Code of Security Investment of the reporting fair value during reporting reporting reporting items source
Model included in reporting
period the period period period period
equity period
Investments
Domestic
Fair value in other Self-owned
and foreign 06166 China VAST 414,614,556.49 528,918,442.86 - -61,849,385.15 - - - 467,881,009.93 funds
measurement equity
stock
instruments
Investments
Domestic
Xiaomi Fair value in other Self-owned
and foreign 01810 209,281,978.58 157,200,330.90 - -35,559,796.11 - - - 121,888,164.58 funds
Corporation measurement equity
stock
instruments
Investments
Domestic
Fair value in other Self-owned
and foreign 01492 Zhongdi Dairy 111,150,770.64 49,004,561.41 - -925,435.39 - - - 48,165,333.94 funds
measurement equity
stock
instruments
Investments
Domestic
Ligeance Fair value in other Self-owned
and foreign 000697 - 58,929,974.64 - -3,933,070.35 - 54,996,904.29 - - funds
Mineral measurement equity
stock
instruments
Investments
Domestic
Zhilai Fair value in other Self-owned
and foreign 300771 21,377,000.00 21,377,000.00 - 133,606,750.00 - - - 154,983,750.00 funds
Technology measurement equity
stock
instruments
Other securities held at the end of the -
- -- 13,715,336.78 - - 21,311,194.33 7,595,857.55 - -- --
period
Total 756,424,305.71 -- 829,145,646.59 - 31,339,063.00 - 76,308,098.62 7,595,857.55 792,918,258.45 -- --
Disclosure Date of Securities Investment Approval Board Announcement October 27, 2017
Disclosure Date of Securities Investment Approval Shareholders Meeting
December 1, 2017
Announcement (if any)
61
S.F. Holding Co., Ltd. 2019 Semi-Annual Report
6. Investments in Derivatives
√ Applicable □Not applicable
Unit: RMB10 thousands
Investment Investment
Investment Gains/
amount at Provision amount at the
Related- amount at (losses)
Related-party Initial the end of the
party Type of Starting Ending for the end of recognized
Counterparty transactions investment beginning impairment reporting
relationship derivatives date date the during the
(Y/N) amount of the period to net
(Y/N) （if any） reporting reporting
reporting assets of the
period period
period Company
Interest Rate
Bank No No 7,039.76 2016/07/25 2021/01/25 7,027.28 - 7,039.76 0.18% 23.33
swap contracts
Total 7,039.76 -- -- 7,027.28 - 7,039.76 0.18% 23.33
Source of funds Self-owned funds
Lawsuit if applicable N/A
Disclosure Date of Derivatives Investment Approval
January 4, 2019
Board Announcement（if any）
Disclosure Date of Derivatives Investment Approval
N/A
Shareholders Meeting Announcement (if any)
In order to contain interest rate risks and reduce additional cost caused by interest rate rises, the
company used bank financial instruments to carry out foreign exchange derivatives transactions.
The company has fully evaluated and controlled the foreign exchange derivatives investment and
positions, as specified below:
1. Legal risks: The company's foreign exchange derivatives investment should comply with laws
and regulations, and the rights and obligations between the company and banks should be clearly
stipulated. Control measures: The company formulated the “Hedging Management System” and
reviewed the contracts strictly , defined the rights and obligations clearly in the contracts, and
strengthened the compliance inspection, so as to ensure the compliance with laws, regulations and
the company's internal policies, the company
2. Operational risk: The operational risks might be caused by employee operation, systems, etc.,
which lead to losses in the foreign exchange derivatives. Control measures: The company
established management systems to clarify the roles and responsibilities, approval processes and
Risk analysis and control measures for derivatives
operation processes in the foreign exchange derivatives transactions, and established a relatively
investment during the reporting period (including but
complete supervision mechanism to reduce operational risks effectively through risk control of
not limited to market risk, liquidity risk, credit risk,
operation processes, decision-making processes and transaction processes.
operational risk, legal risk, etc.)
3. Market risk: The uncertainty of interest rate fluctuations in the foreign exchange market lead to
relatively high market risks in the foreign exchange derivatives transactions. In the case where the
interest rate trend deviates significantly from the company's foreign exchange hedging transactions,
the company's cost of locking in interest rate may exceed the amount when it is not locked, leading
to potential losses. Control measures: The company's foreign exchange derivatives tradings adheres
to the principle of prudent and steady operation, and speculative transactions of foreign exchange
derivatives are forbidden by internal policies. All foreign exchange derivatives transactions should
be based on normal business operations, and the transaction amount should not exceed the demand
of actual business. The company studied and judged the trend of exchange rate and interest rate,
and locked the exchange rate and loan interest rate through contracts to prevent market risks
effectively. Besides, the company recorded each transaction, check the records, and track the
changes timely, properly arranged the delivery funds to prevent delivery default risk.
Changes in fair value or market price of invested
The Company's analysis of the fair value of derivatives is based on the financial market fair value
derivatives during the reporting period (the specific
valuation report provided by the bank at month end. The gains from changes in fair value
methods ,relevant assumptions and parameters used in
recognized by the Company during the reporting period were RMB -335,100.
the analysis of the fair value should be disclosed)
Explanation of whether the accounting policies and
accounting principles of the Company's derivatives are
NO
significantly changed compared with the previous
reporting period during the reporting period
The independent directors believed that the company had established an internal control system for
foreign exchange hedging and effective risk control measures in accordance with the requirements
stipulated by relevant laws. Under the premise of complying with national laws and regulations and
Opinions of independent directors on the Company's ensuring that the company's daily operation were not affected, the company used its own funds to
derivatives investment and risk control carry out foreign exchange hedging in a timely manner, which was conducive to preventing interest
rate and exchange rate risks, reducing the impact of interest rate fluctuations on the company, in
line with the company ,the interests of all shareholders and was no harm to the company and all
shareholders, especially the interests of minority shareholders.
62
S.F. Holding Co., Ltd. 2019 Semi-Annual Report
7. Use of Raised Funds
√ Applicable □Not applicable
(1) Overall use of Raised Funds
√ Applicable □Not applicable
Unit: RMB10 thousands
Total Raised Funds (Note 1) 796,851.70
Total Raised Funds invested in the current year 39,792.95
Accumulative Raised Funds invested (Note 2) 796,851.70
Total Raised Funds with usage altered in the reporting period 39,792.95
Accumulative Raised Funds with usage altered (Note 3) 372,982.30
Proportion of accumulative total Raised Funds with usage altered 46.81%
Description for overall utilisation of Raised Funds
As of June 30, 2019, all funds raised have been used for relevant projects with total proceeds amounting to RMB 7,968,517,000.
Proceeds used for Aviation Materials Purchasing and Flight Support Project totalled RMB2,636,220,200, that used for the Cold
Chain Vehicles and Temperature Control Equipment Purchasing Project totalled RMB292,008,800, that used for the Information
Service Platform Construction and the Next Generation Logistics Informatisation Technology R&D Project totalled
RMB3,846,502,100, and that used for the Transit Depot Construction Project totalled RMB1,193,785,900. The balance of
proceeds amounted to RMB2,972,900, all of which has been used to permanently replenish the Company's working capital.
63
S.F. Holding Co., Ltd. 2019 Semi-Annual Report
(2) Statement of committed investment projects of Raised Funds
√ Applicable □Not applicable
Unit: RMB10 thousands
Investment
Whether Benefits Whether Whether
Total committed Accumulative progress at the
project has Total investment achieved expected feasibility of
Committed investment projects and investment Investment in investment at end of the Date of asset ready
been (or after alteration in the benefits project has
allocation of over-raised funds based on net the current year the end of the period (%) for intended use
partially) (a) current have been changed
Raised Funds period (b)
altered (d)=(b)/(a) year achieved significantly
Committed investment projects
1. Aviation material purchase and
Yes 268,622.08 263,622.02 - 263,622.02 100% - Note: 4 N/A No
flight support project
1.1Aviation material purchase Yes 237,622.08 157,298.74 - 157,298.74 100% 2018/12/31 Note: 4 N/A No
1.2Recruitment of pilots Yes 31,000.00 27,554.51 - 27,554.51 100% 2018/12/31 Note: 4 N/A No
1.3Aircraft purchase and modification Yes 78,768.77 - 78,768.77 100% 2019/6/30 Note: 4 N/A No
2. Cold storage vehicles and
temperature control equipment Yes 71,795.00 29,200.88 - 29,200.88 100% - Note: 5 N/A No
purchase
2.1Purchase of vehicles for cold chain
Yes 49,729.00 28,056.60 - 28,056.60 100% 2018/12/31 Note:5 N/A No
transport
2.2Purchase of EPP temperature
Yes 22,066.00 1,144.28 - 1,144.28 100% 2018/12/31 Note: 5 N/A No
control containers
64
S.F. Holding Co., Ltd. 2019 Semi-Annual Report
Investment
Whether Benefits Whether Whether
Total committed Accumulative progress at the
project has Total investment achieved expected feasibility of
Committed investment projects and investment Investment in investment at end of the Date of asset ready
been (or after alteration in the benefits project has
allocation of over-raised funds based on net the current year the end of the period (%) for intended use
partially) (a) current have been changed
Raised Funds period (b)
altered (d)=(b)/(a) year achieved significantly
3.Information service platform
construction and next-generation
Yes 111,918.00 384,650.21 39,792.95 384,650.21 100% 2019/6/30 Note: 6 N/A No
logistics IT research and development
projects
4.Distribution hub construction
Yes 329,882.88 119,378.59 - 119,378.59 100% - Note: 7 N/A No
projects
4.1Zhengzhou SF E-commerce
Yes 50,584.68 343.82 - 343.82 100% 2018/12/31 Note: 7 N/A No
Industrial Park project
4.2Changchun SF E-commerce
Yes 61,945.51 22,264.73 - 22,264.73 100% 2019/5/31 Note: 7 N/A No
Industrial Park project
4.3Wuxi SF E-commerce Industrial
Yes 41,834.10 22,192.87 - 22,192.87 100% 2019/6/30 Note: 7 N/A No
Park project
4.4Shanghai Shunheng Logistics Co.,
Yes 50,634.05 18,816.19 - 18,816.19 100% 2018/8/31 Note: 7 N/A No
Ltd. new factory project
4.5SF Express Nantong District
Yes 33,055.34 Project investment cancelled after changes
Aviation Hub (phase 2) project`
4.6Hefei smart sorting base Yes 26,427.29 31,958.78 - 31,958.78 100% 2019/6/30 Note: 7 N/A No
65
S.F. Holding Co., Ltd. 2019 Semi-Annual Report
Investment
Whether Benefits Whether Whether
Total committed Accumulative progress at the
project has Total investment achieved expected feasibility of
Committed investment projects and investment Investment in investment at end of the Date of asset ready
been (or after alteration in the benefits project has
allocation of over-raised funds based on net the current year the end of the period (%) for intended use
partially) (a) current have been changed
Raised Funds period (b)
altered (d)=(b)/(a) year achieved significantly
4.7SF E-commerce Industrial Yiwu
Yes 24,900.96 8,287.38 - 8,287.38 100% 2019/6/30 Note: 7 N/A No
Integrated Service Center
4.8Ningbo Transshipping Center Yes 22,587.92 7,269.33 - 7,269.33 100% 2019/6/30 Note: 7 N/A No
4.9Wenzhou Ganglu E-commerce
Yes 17,913.03 8,245.49 - 8,245.49 100% 2019/6/30 Note: 7 N/A No
Industrial Park project
Subtotal of committed investment
-- 782,217.96 796,851.70 39,792.95 796,851.70 -- -- - -- --
projects
Investment of excess proceeds N/A
Total -- 782,217.96 796,851.70 39,792.95 796,851.70 -- -- - -- --
Status of and reason for planned progress or estimated income not achieved (of a
N/A
specific project)
Significant changes in the feasibility of projects N/A
Amount, usage and use progress of over-raised Funds N/A
Change in implementation location of investment projects of Raised Funds N/A
Adjustment to implementation method of investment projects of Raised Funds N/A
66
S.F. Holding Co., Ltd. 2019 Semi-Annual Report
Investment
Whether Benefits Whether Whether
Total committed Accumulative progress at the
project has Total investment achieved expected feasibility of
Committed investment projects and investment Investment in investment at end of the Date of asset ready
been (or after alteration in the benefits project has
allocation of over-raised funds based on net the current year the end of the period (%) for intended use
partially) (a) current have been changed
Raised Funds period (b)
altered (d)=(b)/(a) year achieved significantly
Pursuant to the resolution of the seventh meeting of the fourth Board of Directors on 4 August 2017 and the
explicit consent given by the sponsors, the independent directors and the supervisory board, the Group was
approved to replace upfront self-raised funds of RMB 2,645,283,600 invested in the Aviation Materials
Purchasing and Flight Support Project, the Cold Chain Vehicles and Temperature Control Equipment Purchasing
Upfront investment and replacement of investment projects of Raised Funds Project, the Information Service Platform Construction and the Next Generation Logistics Informatisation
Technology R&D Project, and the Transit Port Construction Project with the Raised Funds. See the
announcement (No. 2017-046) disclosed at the Securities Times, Shanghai Securities News, China Securities
Journal and the website of CNINFO (http://www.cninfo.com.cn) by the Company on 5 August 2017 for more
details..
Supplementing working capital temporarily with idle Raised Funds N/A
As at 30 June 2019, the Company has completed all the Raised Funds projects with balance (income from
wealth management and interest income) of RMB 2,972,900, which was less than RMB 5 million or 1% of the
net Raised Funds. Pursuant to the Guidelines of the Shenzhen Stock Exchange for the Standard Operation of
Listed Companies on the Small and Medium-sized Enterprise Board and the Management System for Corporate
Raised Funds, such balance can permanently be used to supplement working capital with exemption from
approval procedures of the Board of Directors and the shareholders’ meeting.
Balances of the Raised Funds during the project implementation and the reasons As at 15 August 2019, the Company has transferred all the balance of Raised Funds from the Raised Funds
Account to the Company's Proprietary Funds, amounting to RMB 2,988,700 (including the total current interest
of RMB 15,800 settled at the time of account closing), with account closing procedures for the Raised Funds
Account completed at the same time. See the announcement (No. 2019-091) disclosed at the website of
CNINFO (http://www.cninfo.com.cn) by the Company on 15 August 2019 for more details.
Usage and allocation of the unused Raised Funds N/A
67
S.F. Holding Co., Ltd. 2019 Semi-Annual Report
Investment
Whether Benefits Whether Whether
Total committed Accumulative progress at the
project has Total investment achieved expected feasibility of
Committed investment projects and investment Investment in investment at end of the Date of asset ready
been (or after alteration in the benefits project has
allocation of over-raised funds based on net the current year the end of the period (%) for intended use
partially) (a) current have been changed
Raised Funds period (b)
altered (d)=(b)/(a) year achieved significantly
Defects and other problems in utilisation and disclosure of the Raised Funds N/A
(3) Statement of Altered Investment Projects of Raised Funds
√ Applicable □Not applicable
Unit: RMB10 thousands
Total Raised Whether
Investment Benefits Whether
Funds to be Actual Actual Date of asset feasibility of
progress achieved in expected
Project after alteration Project before alteration invested to the investment in accumulative ready for project has
(%) the current benefits have
project after the current year investment (b) intended use changed
(c)=(b)/(a) year been achieved
alteration (a) significantly
Aviation material purchase and Aviation material purchase and
flight support project flight support project
78,768.77 - 78,768.77 100% 2019/6/30 Note: 4 N/A No
- Aircraft purchase and - Aviation material purchase
modification - Recruitment of pilots
Information service platform Cold storage vehicles and
construction and next-generation temperature control equipment
384,650.21 39,792.95 384,650.21 100% 2019/6/30 Note:6 N/A No
logistics IT research and purchase
development projects
Aviation material purchase and
68
S.F. Holding Co., Ltd. 2019 Semi-Annual Report
flight support project
Distribution hub construction
projects
Distribution hub construction
Distribution hub construction
project – Hefei smart sorting base 31,958.78 - 31,958.78 100% 2019/6/30 Note: 7 N/A No
projects
project
Total -- 495,377.76 39,792.95 495,377.76 -- -- -- -- --
The Company altered some investment projects of the Raised Funds based on actual conditions.
Pursuant to the Proposal for Alteration of Some Investment Projects of the Raised Funds discussed at the
eighth meeting of the fourth Board of Directors and approved by the third interim shareholders’ meeting in
2017, the Company extracted RMB 837,688,300 from the Raised Funds invested in subprojects “Aviation
Materials Purchasing and Maintenance” and “Pilot Recruitment” and invested such funds to the new
subproject “Aircraft Purchasing and Modification”, with the total Raised Funds invested in “Aviation
Materials Purchasing and Flight Support Project” unchanged. Furthermore, with the total investment in
“Cold Chain Vehicles and Temperature Control Equipment Purchasing Project” and “Transit Port
Construction Project” unchanged, the Company adjusted the Raised Funds invested to each subproject.
Alteration reason, decision making progress and information disclosure (of a specific RMB 2,329,392,600 extracted from the Raised Funds were invested into “Information Service Platform
project) Construction and the Next Generation Logistics Informatisation Technology R&D Project”. See
Announcement No. 2017-049, 2017-052 and No. 2017-059 for more details about the Company’s project
alteration.
Pursuant to the Proposal for Alteration of Certain Investment Projects of the Raised Funds approved at the
eighteenth meeting of the fourth Board of Directors and the first interim shareholders’ meeting in 2019, the
Company agreed to extract funds from the Raised Funds invested to subprojects “Transit Port Construction
Project” and “Aviation Materials Purchasing and Flight Support Project” with the total investment in both
projects unchanged. The Company extracted RMB 50,000,600 and RMB 201,591,500 from the Raised
Funds invested in subprojects “Aircraft Purchasing and Modification” and “Transit Port Construction
Project” respectively, totalling RMB 251,592,100, plus the accumulative income from wealth management
69
S.F. Holding Co., Ltd. 2019 Semi-Annual Report
and interest income amounting to RMB 146,337,400, a total amount of RMB 397,929,500 invested into the
“Information Service Platform Construction and the Next Generation Logistics Informatisation Technology
R&D Project”. See the announcements (No. 2019-001, 2019-008 and No. 2019-018) disclosed at the website
of CNINFO (http://www.cninfo.com.cn) by the Company on 4 January 2019 and 24 January 2019
respectively for more details about the Company’s project alteration.
As at 30 June 2019, the Raised Funds used by Aviation Materials Purchasing and Flight Support Project
accumulated RMB 2,636,220,200, that used by Cold Chain Vehicles and Temperature Control Equipment
Purchasing Project accumulated RMB 292,008,800, that used by Information Service Platform
Construction and the Next Generation Logistics Informatisation Technology R&D Project accumulated
RMB 3,846,502,100, and that used by Transit Port Construction Project accumulated RMB 1,193,785,900.
Status of and reason for planned progress or expected benefit has not been reached (by
N/A
project)
Description of major changes in project feasibility after changes N/A
70
S.F. Holding Co., Ltd. 2019 Semi-Annual Report
（4）Statement of Fundraising projects
Overview of Fundraising projects Disclosure date Disclosure method
For more, please refer to “First Half 2019 Special Report on the Deposit
August 28, 2019 http://www.cninfo.com.cn
Status and Actual Use of Funds Raised”
Note1: The “Total Raised Funds“ include the net Raised Funds before alteration, amounting to RMB 7,822,179,600, and the
accumulative income from wealth management and interest income from the “Information Service Platform Construction
and the Next Generation Logistics Informatisation Technology R&D Project” after alteration, amounting to RMB
146,337,400.
Note 2 “Accumulative Raised Funds invested” includes accumulative Raised Funds invested and upfront investment replaced after
the reception of Raised Funds of RMB 2,645,283,600.
Note 3 “Total Raised Funds with usage altered” refers to the altered Raised Funds ready for investment calculated based on the
last-tier subproject of Raised Funds with usage altered listed in the Annex 2.
Note 4 The Company’s business developed rapidly. Based on the Company’s future strategic plan, the original aircraft’s capacity
cannot meet the requirements of business development any more. This project is aimed at improving the Company’s air
transportation effectiveness and market competitiveness. The benefits achieved are not directly quantifiable.
Note 5 The project is aimed at improving the speed and quality of cold chain transportation and providing customers with
sophisticated temperature control service. The benefits achieved are not directly quantifiable.
Note 6 The project is aimed at lay outing the next generation logistics informatisation technology in advance, improving the
intelligent logistics capacity, supporting the development of future comprehensive logistics business, promoting the
digitalisation, networking and marketisation of information, and backing the innovation and incubation of new businesses.
The benefits achieved are not directly quantifiable.
Note 7 The project is aimed at further enhancing the processing capacity of the Company’s express backbone network as well as
improving the operation effectiveness of the whole network. The benefits achieved are not directly quantifiable.
8. Major projects not involving fundraising
□Applicable √ Not applicable
VI. Sale of Significant Assets and Equity
1. Sale of significant assets
□Applicable √ Not applicable
The Company did not sell any significant assets during the reporting period.
2. Sale of significant equity
□Applicable √ Not applicable
The Company did not sell any significant equity during the reporting period.
71
S.F. Holding Co., Ltd. 2019 Semi-Annual Report
VII. Analysis of Major Holdings and Participating Companies
√ Applicable □Not applicable
Major subsidiaries and equity participation companies that affect the Company's net profit by more than 10%
Unit: RMB
Company Company Primary Registered Operating Operating
Total Assets Net Assets Net Profit
name Type Business Capital Income Profit
Investments in
industrial
businesses,
Investment
Shenzhen consulting and
S.F. Taisen other information
2 billion
Holdings Subsidiary consulting，supply 35,375,140,785.76 19,549,670,833.02 1,740,673,059.34 562,921,601.09 561,780,502.69
(Group) Co., RMB
chain management，
Ltd. asset management,
capital
management,
investment
management, etc.
Acquisition and disposal of subsidiaries during the reporting period
√ Applicable □Not applicable
Acquisition or Disposal of Impact on Overall
Company Name Subsidiaries During the Reporting Production Operations
Period and Performance
Shanghai Fengpaida Supply Chain Co., Ltd. New establishment No major impact
Shenzhen Lver Technology Co., Ltd. New establishment No major impact
Shenzhen S.F.Zhongyuan Network Technology Co., Ltd. New establishment No major impact
Shenzhen Yike Technology Co., Ltd. New establishment No major impact
Hangzhou Xiaoshan Gonglaohan Business hotel Co., Ltd. Acquisition No major impact
Qian'an deda beifeng logistics Co. LTD Acquisition No major impact
Beijing fenglejia hotel management Co., LTD New establishment No major impact
SF Pharmaceutical Supply Chain (Jilin) Co., Ltd. New establishment No major impact
Shanghai Haosiju Supply Chain Management Co., Ltd. New establishment No major impact
Shanghai Chengbai Technology Co., Ltd. New establishment No major impact
Wenzhou Jietai Enterprise Management Co., Ltd. New establishment No major impact
Huaian Fengtai Enterprise Management Co., Ltd. New establishment No major impact
Quanzhou Fengyutai Enterprise Management Co., Ltd. New establishment No major impact
Yiwu Fengyutai Enterprise Management Co., Ltd. New establishment No major impact
Jiaxing Hongjie Enterprise Management Co., Ltd. New establishment No major impact
S.F. Intra-city Holding Co., Ltd. New establishment No major impact
Hengyang hongyue network co. LTD Acquisition No major impact
Hengyang Wanwei Information Technology Co., Ltd. Acquisition No major impact
DC（PaloAlto）Corporation Acquisition No major impact
Exel Logistics (Weihai) CO.,Ltd New establishment No major impact
Wuhan Jufeng Supply Chain Management Co., Ltd. New establishment No major impact
Yangzhou Fengyutai Enterprise Management Co., Ltd. New establishment No major impact
Shenzhen Fengchi Shuntong Information Technology Co.,
New establishment No major impact
Ltd.
DHL Logistics (Beijing) Co., Ltd. Acquisition No major impact
DHL Supply Chain (Hong Kong) Limited Acquisition No major impact
Dun ho Logistics Zhuhai (Hong Kong) Limited Acquisition No major impact
DHL Logistics (Zhuhai) Co., Ltd. Acquisition No major impact
Shun Lok Supply Chain (HK) Limited Acquisition No major impact
Shunhao Supply Chain Management (Wuhan) Co., Ltd. Acquisition No major impact
DHL Logistics (Nanjing) Co., Ltd. Acquisition No major impact
DHL Logistics (Shenzhen) Co., Ltd. Acquisition No major impact
EXEL LOGISTICS CHINA CO.,LTD. Acquisition No major impact
Exel Logistics (Chengdu) CO.,Ltd Acquisition No major impact
DHL Logistics (China) CO.,Ltd Acquisition No major impact
72
S.F. Holding Co., Ltd. 2019 Semi-Annual Report
Acquisition or Disposal of Impact on Overall
Company Name Subsidiaries During the Reporting Production Operations
Period and Performance
Donggguan DHL Supply Chain Co.,Ltd Acquisition No major impact
GREAT AFFLUENT GROUP LIMITED Acquisition No major impact
HARMONIC JOY HOLDINGS LIMITED Acquisition No major impact
Wuhan Shunheng Express Co., Ltd. New establishment No major impact
Suzhou Fengyutai Enterprise Management Co., Ltd. New establishment No major impact
Shenzhen Fenglian Technology Co., Ltd. New establishment No major impact
Hefei Jietai Enterprise Management Co., Ltd. New establishment No major impact
Shanghai Binxian Supply Chain Management Co., Ltd. New establishment No major impact
Yunnan Shunzhu Xinfeng Express Co., Ltd. New establishment No major impact
Xinjiang Shunxin Express Co., Ltd. New establishment No major impact
Fenghao Supply Chain (Shenzhen) Co., Ltd. New establishment No major impact
Shanghai Solution Plus Supply Chain Co., Ltd. New establishment No major impact
WEALTHY SMART INTERNATIONAL HOLDINGS
Acquisition No major impact
LIMITED
JOVIAL BLISS GROUP LIMITED Acquisition No major impact
TREND POWER INVESTMENTS LIMITED Acquisition No major impact
Langfang S.F. Express Co., Ltd. New establishment No major impact
SF Share Precision Information Technology (Shenzhen) Co.,
New establishment No major impact
Ltd.
Xi'an SF Information Service Co., Ltd. New establishment No major impact
Shenzhen Yijiayi Technology Co., Ltd. New establishment No major impact
Guangdong Zhifan Technology Co., Ltd. New establishment No major impact
SF LOGISTICS PRIVATE LIMITED New establishment No major impact
Shanghai shunru Fenglai technology co., LTD New establishment No major impact
Luoyang Fengnong Technology Co., Ltd. New establishment No major impact
Hangzhou Shuangjie Supply Chain Co., Ltd. New establishment No major impact
Hangzhou S.F.Intra-city Industrial Co., Ltd. New establishment No major impact
Sichuan Fengnong Technology Co., Ltd. New establishment No major impact
Suzhou hengding logistics co. LTD Acquisition No major impact
SinoServices International Technologies Co., Ltd. Sale No major impact
Shenzhen Fengyi Technology Co., Ltd. Sale No major impact
SF Pharmaceutical Supply Chain Nanjing Co., Ltd. Sale No major impact
Nanjing Sihai Pharmaceutical Co., Ltd. Sale No major impact
Xiamen Jinchetou Information Technology Co., Ltd. Sale No major impact
Shanghai Ruitexin Information Technology Co., Ltd. Sale No major impact
SinoServices International Technologies Company Limited Sale No major impact
SinoServices International Technologies (Singapore) Pte
Sale No major impact
LTD
Shanghai Haikuqiang Supply Chain Information Technology
Sale No major impact
Co., Ltd.
Shenzhen Jingliantong Information Technology Co., Ltd. Sale No major impact
VIII. Structured Entities Controlled by the Company
□Applicable √ Not applicable
73
S.F. Holding Co., Ltd. 2019 Semi-Annual Report
IX. Performance forecast for the first nine months of 2019
□Applicable √ Not applicable
X. Possible risks and countermeasures
1. Market risks
Risks of macroeconomic fluctuations: The logistics industry plays an important fundamental role in the
development of national economy while it is also significantly affected by macroeconomic conditions. In recent
years, China's macroeconomy has experienced slowing growth as it underwent a period of economic structure
transition, and the future development will remain rather complicated. Future fluctuation of the macroeconomy
will have a certain impact on the overall development of China's logistics industry and the performance of SF
Holding.
Market competition risks: Competition in China's express logistics industry has become increasingly fierce.
On the one hand, industry-leading express logistics enterprises continue to strive to expand their businesses and
networks. On the other hand, E-commerce platform enterprises, social capitals and other external forces are
creeping into the express logistics industry, further exacerbating market competition. If the Company cannot take
active and effective measures to cope with the ever-changing market competition, it may face the risk of slowing
business growth and declining market share.
Risks arising from change in new business patterns: In recent years, with the rapid development of
information technology, the impact of the Internet economy on all aspects of life has become increasingly obvious.
In the express delivery industry, information platform-type enterprises have emerged. Through fast matching and
effective management of information between supply and demand, such enterprises can quickly gather and utilize
social capitals to deliver appropriate services for customers, which will have a certain impact on the traditional
business model of the express delivery industry.
Risk response: In the face of complex and volatile potential market risks, the Company has established a
comprehensive risk management system for close monitoring and dedicated analyses of the macroeconomy, of
industry development trends and market competition patterns. From these analyses, SF Holding plans and adjusts
its strategic direction, business planning and work priority in a forward-looking manner so as to minimize the
impact of changes in external market environment on the Company's business and future development.
2. Policy risks
Risks arising from changes in industry regulations and industrial policies: Operation of express delivery
requires business licensing and is subject to regulation by laws, administrative rules and industry standards such
as the Postal Law (《邮政法》), the Administrative Measures for Express Delivery Business Licensing (《快递业
务经营许可管理办法》), the Administrative Measures for Express Delivery Market ( 《快递市场管理办法》), the
Industry Standard for Express Delivery Services 《快递服务》行业标准) and the Rules for Guiding the Operation
of Express Business ( 《快递业务操作指导规范》). In order to support the development of the express delivery
industry, competent departments at various levels have successively introduced a number of industrial support and
encouragement policies. However, should major changes in or adjustments to relevant laws, regulations or
industrial policies occur in the future, they may have an impact on the development trend and market competition
landscape of the express delivery industry, which may in turn affect the future business growth and performance
of the Company.
Risks from relevant state policies on environmental protection, energy conservation and emission
reduction:
Various types and models of motor vehicles are important components of transportation vehicles of express
delivery companies. With the intensifying state policies on environmental protection, energy conservation and
emission reduction may lead to increased expenses in relevant aspects such as environmental protection, energy
conservation and emission reduction incurred by express delivery companies, which may affect the future
performance of the Company.
74
S.F. Holding Co., Ltd. 2019 Semi-Annual Report
Risk response: The Company has established research teams for state and local policies in all business units
to conduct in-depth analysis on relevant policies introduced and scientific prediction of future policy directions
and trends in the light of overall changes in external environment. Forward-looking plans are implemented and
adjusted by fully capitalizing on favorable policies while avoiding policy risks, hence promoting business growth.
3. Business risks
Risks of possible rising costs: The traditional express delivery industry is a labor-intensive industry. There
are relatively large demands for labor along various stages of operation such as collection, sorting, transportation
and delivery. With decreasing rate of population growth in China, there are certain pressures on rising labor costs
while investments in logistics infrastructures and other aspects are also increasing. If the Company cannot secure
enough business volume or effectively control costs in the future, it will probably face challenges in its future
performance growth.
Risk response: SF Holding has continued to increase investment in areas such as logistics framework
optimization and system component innovation, including in areas such as bringing the entire logistics process
online by applying smart technologies to reduce manpower and offline operations, while upgrading service points
and route planning and using scientific and technological means to enhance efficiency and reduce labor costs,
hence leading transformation of the express delivery industry from a labor-intensive to a technology intensive
industry.
Risks from fuel price fluctuation: Transportation cost is one of the major costs of the express delivery
industry, and fuel cost is a component of transportation cost. Fluctuation of fuel price will have a certain impact
on the profitability of express delivery companies. If the fuel price rises significantly in the future, the Company
will experience pressure of increased costs. Generally speaking, however, fuel costs accounted for only 1.90% of
revenue in the first half of 2019, a ratio which is not high. Therefore, the impact of fuel price fluctuation on
operating costs is relatively limited. It is estimated that if fuel price fluctuates by +/- 5%, cost of revenue may
increase or decrease by RMB0.95 million for the current year, which will either increase or decrease net profit
attributable to the parent company by a maximum of RMB71 million.
Risk response: The Company will further optimise layout of service points, enhance scientific route
planning and loading rate of operating routes, and increase resource use efficiency to reduce the risk of fuel price
fluctuations. Further, the Company will strengthen promotion for use of new energy vehicles to reduce the risk of
fuel price fluctuations to a certain extent. Meanwhile, the Company has matured operation and cost monitoring
mechanisms. When costs fluctuate significantly, operation plans and fuel cost control measures will be
dynamically adjusted to reduce the negative impact of fuel cost fluctuation on the Company.
4. Exchange rate fluctuation risks
The Company currently offers express delivery services in countries such as the U.S., Japan, Korea, and
Singapore and provides B2C and E-commerce delivery services in many countries and regions. In the future, as
SF Holding's international business grows, the proportion of business denominated in foreign currencies will
gradually increase. Given the uncertainties in the international financial environment and fluctuations of the RMB
exchange rate, foreign currency assets and liabilities as well as future foreign currency transactions of the
Company will be at risk of exchange rate fluctuation, which may have certain impacts on the reporting and
profitability of the Company.
75
S.F. Holding Co., Ltd. 2019 Semi-Annual Report
Risk response: The Company's foreign exchange transactions are mainly based on actual needs of
cross-border foreign currency businesses. To avoid and prevent risks of exchange rate and interest rate
fluctuations and better manage its foreign currency positions, the Company has established the Management
System for Business Hedging 《套期保值业务管理制度》 to enable centralized management of foreign currency
positions by deciding expenditure based on revenue to achieve natural hedging where possible. To avoid exchange
rate or interest rate risks, the Company timely monitors exchange rate and interest rate fluctuations and selects
hedging products with low default risks and controllable risks so as to lock in costs of exchange rate and interest
rate. Meanwhile, the Company will also strengthen research and analysis of exchange rate and interest rate so that
it can be alerted of changes in the international market in real time and take countermeasures on early warning
signals. The Company conducts foreign exchange hedging business only with large and established commercial
banks which follow the principles of legality, prudence, safety and effectiveness. All foreign exchange hedging
transactions are based on normal production and operation with support of specific business operation. The
Company does not trade for speculation, and operates in strict accordance within authorized operations to ensure
effective implementation and reduce the impact of exchange rate risks on the Company's operations as well as
profit and loss.
5. Information system risk
Information system risk: To cope with our diversified development of, the complex and diverse needs of
customers, and the strategic direction of technology-led business expansion to enhance market position, the
Company has built and applied various information systems and technologies. Rapid development of the industry
and changing market also pose challenge of rapid change in technology and services to the construction of core
business systems of the Company. With the wide variety and rapid replacement of professional technologies in the
Company along with emerging new technologies, changes in information technology and future business
requirements may cause certain information system risks. Meanwhile, despite the series of information security
control mechanisms established for the large amount of data accumulated for years by the Company, there still
exists certain human or system caused information security risks.
Risk Responses: The Company has formulated comprehensive response measure for information system
risks. On the one hand, the Company continues to carry out operation and optimization of the ISO27001
information security management system, and has obtained certification after the on-site assessment by the
authority. The Company implements information security control and protection in all aspects according to
established policies and strategies for information security, and continuously updates all procedures and systems
for information security. It continuously strengthens risk awareness of staff and trainings for staff operation
standards, develop internal information circulation guidelines, implement rules of strong control over sensitive
information, avoid unintentional violations, and construct monitoring and early warning and disposal systems for
abnormal behaviors, so as to eliminate information system security risks in their infancy. Meanwhile, according to
requirements of regulatory authorities, the Company has engaged in and passed the testing and evaluation for
security classification protection of information system. Based on high standards of technology protection
requirements, it conduct continuous and stable security intervention in the business system construction phase to
strengthen the ability of the client's service products and business systems themselves against anti-security attacks,
and enhance the capability of the IT infrastructures to discover and defend against cybersecurity attacks during
operation of the information system. On the other hand, the Company has established a more comprehensive
system for prevention and control of information risks, formulated standard processes such as the Major Event
Management Process System for IT System 《IT系统重大事件管理流程制度》 and the Management Guidelines
for Emergency Plan Formulation and Implementation of IT System 《IT系统应急预案制定与执行管理指引》 to
implement closed-loop risk prevention and control in terms of pre-warning, in-process control and post-recording.
Additionally, the Company has actively cooperated with the National Development and Reform Commission, the
State General Administration of Posts and all levels of public security departments to combat behaviours such as
black production and speculation; has actively participated in the formulation and review of various information
security standards of the National Information Security Standards Committee, pilot work for implementation of
policies; has regularly held security summits and security salons to facilitate information sharing with industry
leaders and industry elites; and has established alliance partnership and cooperation with information security
teams of well-known Internet and e-commerce companies for the joint construction of a safe and orderly
Cyberspace.
76
S.F. Holding Co., Ltd. 2019 Semi-Annual Report
Chapter 5 Significant Events
I. Annual general meeting of shareholders and extraordinary general meeting of shareholders
held during the period
1. Shareholder meetings held during the reporting period
Meeting Investor Date Disclosure
Meeting Disclosure Index
Type Participation % Convened Date
“Resolutions of the
First Extraordinary
First Extraordinary General
Extraordinary January January 24, General Meeting of
Meeting of Shareholders of 84.59%
General Meeting 23, 2019 2019 2019”
2019
(2019-018)(http://ww
w.cninfo.com.cn)
“2018 Annual
April 10, General Meeting
2018 Annual General Annual General April 9,
74.29% Resolutions”
Meeting Meeting 2019 2019 (2019-057)(http://ww
w.cninfo.com.cn)
“Resolutions of the
Second Extraordinary
Second Extraordinary May 10,
Extraordinary May 9, General Meeting of
General Meeting of 75.79%
General Meeting 2019 2019 2019”
Shareholders of 2019
(2019-070)(http://ww
w.cninfo.com.cn)
2. Extraordinary general meetings convened at the request of preferred stockholders whose voting rights
have been restored
□Applicable √ Not applicable
II. Profit distribution or increase of share capital from equity reserves during the reporting
period
□Applicable √ Not applicable
The Company does not plan to issue cash or equity dividends, nor to convert equity reserves into share capital.
III. Commitments made by the Company's actual controllers, shareholders, related parties,
purchasers, and others that were fulfilled during the reporting period or were not fulfilled
and exceed the time limit as of the end of the reporting period
□Applicable √ Not applicable
There were no such situations during the reporting period.
IV. Appointment and dismissal of accounting firms
Is the semi-annual financial report audited?
□Yes √ No
The Company's semi-annual financial report has not been audited
77
S.F. Holding Co., Ltd. 2019 Semi-Annual Report
V. Explanations provided by the Board of Directors, the Supervisory Committee, and the
independent directors regarding the “non-standard audit report” issued by the auditor for
the reporting period
□Applicable √ Not applicable
VI. Explanations provided by the Board of Directors regarding the “non-standard audit
report” issued by the auditor for the last year
□Applicable √ Not applicable
VII. Bankruptcy and Reorganization
□Applicable √ Not applicable
There was no such situation for the Company during the reporting period.
78
S.F. Holding Co., Ltd. 2019 Semi-Annual Report
VIII. Significant lawsuit or arbitration
√Applicable □Not applicable
Lawsuit Execution
Results and
amount Progress status of
Situation overview of lawsuit effects of Disclosure
(10 Provisions of lawsuit lawsuit
judgment Disclosure index
(arbitration) of lawsuit date
thousands (arbitration)
(arbitration)
RMB) (arbitration)
According to Shenzhen Glorint The judgment
Factoring Co., Ltd. (the plaintiff in of the court of
this case, hereinafter referred to as first instance
“Shenzhen Glorint”), the is as follows:
“Indictment”: On October 11, 2014, 1. SF Supply
Shenzhen Glorint and Hubei Xingyu Chain should
Garment Co., Ltd. (hereinafter pay the
referred to as “Hubei Xingyu”) plaintiff RMB
signed the “SDIC Factoring Business 3,289,100
Contract,” which stipulated that within 10
Shenzhen Glorint will provide days after the
factoring financing to Hubei Xingyu, judgment
and Hubei Xingyu shall also carry takes effect.
out a premium repurchase on time 2. Hubei
according to the terms of the contract. Xingyu,
Fucheng Investment Holding Group Fucheng
Co.,Ltd. (defendant II in this case, Investment
hereinafter referred to as “Fucheng should pay
Investment”), Zeng Shixiang the plaintiff a
(defendant III in this case), Zeng On June 18, legal fee of
Cheng (defendant IV in this case), 2019, the RMB 500,000
and JiangBin (defendant V in this Futian District within 10
case) shall provide guarantees for this People's Court days after the
contract. made a judgment has
In May 2014 and January 2015, S.F. first-instance taken effect.
Express Co., Ltd. (defendant VI in judgment. As 3. Other Main Assets Replacement
this case, hereinafter referred to as of the claims of the and Issuance of Shares to
“S.F. Express “), Shenzhen SF disclosure date plaintiff were Purchase Assets and
Supply Chain Co., Ltd. (defendant of this report, dismissed. December Raise Matching Funds
1,859.95 No N/A
VII in this case, hereinafter referred to the plaintiff The court fee 13,2016 and Related-party
as “SF Supply Chain”) signed an Shenzhen was Transaction Report
apparel purchase contract with Hubei Glorint has RMB133,397, (Revised Draft) at
Xingyu respectively. The total filed an appeal which should http://www.cninfo.com.cn
amount of the contract was and this be borne by
RMB18,099,519. lawsuit has the plaintiff
On January 30, 2015, Hubei Xingyu entered the Shenzhen
and Shenzhen Glorint signed the second Glorint as to
Supplementary Agreement (I) of the instance RMB95,284,
SDIC Factoring Business Contract, procedure. and SF
which stipulated that Hubei Xingyu Supply Chain
shall transfer a total of as to
RMB18,099,519 accounts receivable RMB33,113.
to Shenzhen Glorint, based on the RMB 5,000
accounts receivable in the of the fee
above-mentioned apparel purchase should be
contract with S.F. Express and SF jointly born
Supply Chain. In view of the fact that by Hubei
Hubei Xingyu did not fulfill the Xingyu and
premium repurchase of factoring Fucheng
financing in accordance with the Investment;
stipulated SDIC Factoring Business preservation
Contract, S.F. Express and SF Supply fee of 5,000
Chain did not pay RMB18,099,519 yuan should
for Shenzhen Glorint. On September be borne by
1, 2015, Shenzhen Glorint filed a SF Supply
lawsuit with the Futian District Chain.
People’s Court and requested a
decree:(1) S.F. Express and SF As of the
79
S.F. Holding Co., Ltd. 2019 Semi-Annual Report
Lawsuit Execution
Results and
amount Progress status of
Situation overview of lawsuit effects of Disclosure
(10 Provisions of lawsuit lawsuit
judgment Disclosure index
(arbitration) of lawsuit date
thousands (arbitration)
(arbitration)
RMB) (arbitration)
Supply Chain should pay 18,099,519 disclosure
RMB to Shenzhen Glorint. (2) Hubei date of this
Xingyu, Fucheng Investment, Zeng report, the
Shixiang, Zeng Cheng, Jiang Bin, plaintiff
S.F. Express, and SF Supply Chain Shenzhen
will be jointly and severally liable for Glorint has
the aforementioned payment. (3) The filed an
defendants in this case should bear appeal and
the legal fees, litigation fees, and all this lawsuit
other litigation fees in this case. has entered
On July 19, 2016, Shenzhen Glorint the second
applied to the Futian District People’s instance
Court to withdraw the lawsuit against procedure.
the defendants Zeng Shixiang, Zeng
Cheng, and Jiang Bin. This case is a
On April 20, 2017, Futian District dispute arising
People’s Court ruled that the case from the
was transferred to the jurisdiction of payment of
the Yuting District People’s Court, contract
Yichang City, where the Hubei payment. The
Xingyu Bankruptcy case was filed. subject matter
Shenzhen Glorint rejected the of the lawsuit is
first-instance ruling and appealed to the Company's
Shenzhen Intermediate People’s payable for the
Court. contract, and the
amount is small.
On July 10, 2017, Shenzhen The results of
Intermediate People’s Court ruled to these cases will
revoke the decision of the Futian not be
District People’s Court and the case materially
was under the jurisdiction of the adverse to the
Futian District People’s Court. Company's
On October 23, 2017, the Futuan financial status
District People’s court held its second and continuing
hearing. The bankruptcy operations.
administrator of Hubei Xingyu,
Yichang Xinli Bankruptcy and
Liquidation Office Co., Ltd. engaged
lawyers to participate in the trial.
As of June 30, 2019, in addition to the above legal case, other legal proceedings of the listed Company and its
subsidiaries were as follows:
1. The total amount involved in legal cases resolved during the reporting period was RMB130.55 million.
2. Cases not yet resolved during the reporting period include: Cases involving the Company and its subsidiaries as
defendants amounted to RMB114.15 million, accounting for 0.31 % of audited net assets attributable to
shareholders of the parent Company at the end of 2018. The above-mentioned litigation matters include a number
of independent traffic accident cases and transportation claims with small amounts involved. The Company and its
subsidiaries have already purchased commercial insurance for operating vehicles, transportation and other
business activities. Based on the historical experience, the insurance purchased can basically cover the losses
caused by the case. Cases involving the Company and its subsidiaries as plaintiffs amounted to RMB415.55
million, accounting for 1.14% of audited net assets attributable to shareholders of the parent Company at the end
of 2018. The described legal proceedings will not have a material adverse effect on the Company's financial status
and ability to continue operations.
80
S.F. Holding Co., Ltd. 2019 Semi-Annual Report
IX. Questioning by the Media
□Applicable √ Not applicable
The company did not experience widespread media questioning during the reporting period.
X. Punishment and rectification
□Applicable √ Not applicable
There was no such situation during the reporting period.
XI. Integrity of the Company, its controlling shareholders, and actual controller
□Applicable √ Not applicable
XII. Execution of stock incentive plan, ESOP, or other employee incentives
√ Applicable □Not applicable
1. During the reporting period, the unlocking conditions for the first post lock-up period under the 2017
Restricted Stock Incentive Plan of the Company was fulfilled. On January 3, 2019, the Company convened the
18th meeting of the 4th session of the Board at which the “Resolution regarding the fulfillment of unlocking
conditions for the first post lock-up period under the 2017 Restricted Stock Incentive Plan” was considered and
approved, and the Company was authorised to unlock the sales restriction on a total of 1,113,173 restricted shares
held by 703 participants who have fulfilled the unlocking conditions. On January 11, 2019, these shares which
could be released of the sales restriction (“unlocked restricted shares”) were listed and available for trading.
2. During the reporting period, the exercise conditions for the first exercise period under the 2017 Share
Appreciation Rights Incentive Plan of the Company were fulfilled. On January 3, 2019, the Company convened
the 18th meeting of the 4th session of the Board at which the “Resolution regarding the Cancellation of Certain
Share Appreciation Rights” and the “Resolution regarding Fulfillment of the Exercise Condition for the First
Exercise Period under the 2017 Share Appreciation Rights Incentive Plan” were considered and approved.
Accordingly, the Company was authorised to cancel all the 6,400 share appreciation rights held by 3 incentive
participants who ceased to be eligible for the incentive due to their resignation, and to handle the exercise of rights
held by 17 eligible incentive participants.
3. At the 18th meeting of the 4th session of the Board and the 2019 first extraordinary general meeting convened
by the Company on January 3, 2019 and January 23, 2019 respectively, the “Resolution regarding the Repurchase
and Cancellation of Certain Restricted Shares” was considered and approved. Accordingly, the Company was
authorised to repurchase and cancel a total of 293,308 restricted shares held by 65 incentive participants who
ceased to be eligible for the incentive under the 2017 Restricted Stock Incentive Plan due to their resignation, at a
repurchase price of RMB29.529 per share; and the Company was authorised to repurchase and cancel a total of
147,278 restricted shares held by 34 incentive participants who ceased to be eligible for the incentive under the
2018 Restricted Stock Incentive Plan due to their resignation, at the repurchase price of RMB24.511 per share.
The total number of restricted shares repurchased for cancellation was 440,586 shares. As of March 13, 2019, the
Company has completed the repurchase and cancellation of the aforesaid restricted shares, thus the share capital of
the Company was reduced from 4,418,767,258 shares to 4,418,326,672 shares.
81
S.F. Holding Co., Ltd. 2019 Semi-Annual Report
4. At the 20th meeting of the 4th session of the Board and the 2018 annual general meeting convened by the
Company on March 14, 2019 and April 9, 2019 respectively, the “Resolution regarding the Repurchase and
Cancellation of Certain Restricted Shares” was considered and approved. Accordingly, the Company was
authorised to repurchase and cancel a total of 1,113,271 restricted shares held by 703 incentive participants who
ceased to be eligible for the incentive due to failure of the Company to meet the performance assessment
requirement for the second post lock-up period, at the repurchase price of RMB29.613 per share; and the
Company was authorised to repurchase and cancel a total of 2,628,136 restricted shares held by 1,105 incentive
participants who failed to fulfil the unlocking conditions due to failure of the Company to meet the performance
assessment requirement for the first post lock-up period, and by 37 incentive participants who ceased to be
eligible for the incentive under the 2018 Restricted Stock Incentive Plan due to their resignation, at a repurchase
price of RMB24.581 per share. The total number of restricted shares repurchased for cancellation was 3,741,407
shares. Upon completion of the repurchase and cancellation, the total share capital of the Company will be
reduced from 4,418,326,672 shares to 4,414,585,265 shares.
As the Company has implemented the 2018 dividend distribution plan prior to implementing the repurchase
and cancellation of restricted shares, according to the authorization of the Board, the management of the Company
adjusted the repurchase prices of the aforesaid repurchases based on relevant provisions. The repurchase price
under the 2017 Restricted Stock Incentive Plan was adjusted from RMB29.613 per share to RMB29.399 per share,
while that under the 2018 Restricted Stock Incentive Plan was adjusted from RMB24.581 per share to
RMB24.369 per share. As of June 12, 2019, the Company has completed the repurchase and cancellation of the
aforesaid restricted shares.
5. At the 20th meeting of the 4th session of the Board convened by the Company on March 14, 2019, the
“Resolution on the Cancellation of Certain Share Appreciation Rights” was considered and approved.
Accordingly, the Company was authorised to cancel a total of 26,500 share appreciation rights held by 17
incentive participants who ceased to have exercise qualification due to failure of the Company to meet the
performance assessment requirement for the second exercise period under the 2017 Share Appreciation Rights
Incentive Plan; and the Company was authorised to cancel a total of 80,825 share appreciation rights held by 29
incentive participants who ceased to be eligible for the incentive due to failure of the Company to meet the
performance assessment requirement for the first exercise period, and by 5 incentive participants who ceased to be
eligible for the incentive under the 2018 Share Appreciation Rights Incentive Plan due to their resignation.
82
S.F. Holding Co., Ltd. 2019 Semi-Annual Report
Details of the Company’s stock incentive plans during the reporting period have been disclosed on
http://www.cninfo.com.cn by the Company. A disclosure index is as follows:
Announcement Disclosure Date Disclosure Website
Announcement on Repurchase and Cancellation of January 4, 2019 http://www.cninfo.com.cn
Certain Restricted Shares (2019-003)
Announcement on Fulfillment of the Exercise January 4, 2019 http://www.cninfo.com.cn
Condition for the First Exercise Period under the 2017
Share Appreciation Rights Incentive Plan and the
Cancellation of Certain Share Appreciation Rights
(2019-004)
Announcement on Fulfillment of the Unlocking January 4, 2019 http://www.cninfo.com.cn
conditions for the First Post Lock-up Period under the
2017 Restricted Stock Incentive Plan (2019-005)
Announcement on the Listing and available for Trading January 10, 2019 http://www.cninfo.com.cn
of Unlocked Restricted Shares for the First Post
Lock-up Period under the 2017 Restricted Stock
Incentive Plan (2019-014)
Announcement on Capital Reduction due to Repurchase January 25, 2019 http://www.cninfo.com.cn
and Cancellation of Certain Restricted Shares
(2019-019)
Announcement on Completion of Repurchase and March 13, 2019 http://www.cninfo.com.cn
Cancellation of Certain Restricted Shares (2019-033)
Announcement on Repurchase and Cancellation of March 16, 2019 http://www.cninfo.com.cn
Certain Restricted Shares (2019-043)
Announcement on Cancellation of Certain Share March 16, 2019 http://www.cninfo.com.cn
Appreciation Rights (2019-044)
Announcement on Capital Reduction due to Repurchase April 10, 2019 http://www.cninfo.com.cn
and Cancellation of Certain Restricted Shares
(2019-058)
Announcement on Adjustment to Repurchase Price for April 19, 2019 http://www.cninfo.com.cn
the Repurchase and Cancellation of Restricted Shares
by the Company due to Dividend Distribution
(2019-062)
Announcement on Completion of Repurchase and June 12, 2019 http://www.cninfo.com.cn
Cancellation of Certain Restricted Shares (2019-074)
83
S.F. Holding Co., Ltd. 2019 Semi-Annual Report
XIII. Significant related-party transactions
1. Related-party transactions relevant to routine operations
√ Applicable □Not applicable
Pricing Approved
Transaction Proportion Was the Related-party
Type of Details of principle transaction Similar
Transaction amount of same approved transaction Disclosure
Related Party Relationship related-party related-party of the quota Market Disclosure index
price (10 category of quota settlement date
transaction transaction related-party thousands (10 price
RMB) transactions Thousands exceeded? method
transaction RMB)
Announcement on the
Fair pricing “Proposal
Courier service, based on Settlement on Estimated Daily
Mingde Controlling Provide communication market prices based on the Related-party Transaction
service, in accordance Contract 7,910.04 0.16% 27,000 No settlement N/A January 4, Amount in 2019”
Holding and shareholder of services to technology with the price period and 2019
its subsidiaries the Company related parties development principle of terms in the disclosed at CNINFO
service, etc. independent contract (Announcement
transactions No. 2019-011)
(http://www.cninfo.com.cn)
A director of Announcement on the
Fair pricing “Proposal
M China The Company Settlement
based on on Estimated Daily
Management serves as a Cold-chain market prices based on the
director of the Provide Related-party Transaction
Limited and services to transportation in accordance Contract 55,235.82 1.10% 0 130,00 No settlement N/A January 4, Amount in 2019”
parent price period and 2019
its subsidiaries
company of M related parties and warehousing with the terms in the disclosed at CNINFO
and its services principle of (Announcement
China independent contract
franchisees Management No. 2019-011)
transactions
Limited (http://www.cninfo.com.cn)
An
independent Announcement on the
director of Fair pricing “Proposal
China Pacific the Company based on Settlement on Estimated Daily
Insurance serves as an Provide Courier service, market prices based on the
services Related-party Transaction
(Group) Co., independent technology in accordance Contract 1,840.67 0.04% 7,000 No settlement N/A January 4, Amount in 2019”
to related development with the price period and 2019
Ltd. and its director of service. principle of terms in the disclosed at CNINFO
parties (Announcement
subsidiaries China Pacific independent contract
Insurance transactions No. 2019-011)
(Group) Co., (http://www.cninfo.com.cn)
Ltd.
84
S.F. Holding Co., Ltd. 2019 Semi-Annual Report
Pricing Approved
Transaction Proportion Was the Related-party
Type of Details of principle transaction Similar
Transaction amount of same approved transaction Disclosure
Related Party Relationship related-party related-party of the quota Market Disclosure index
price (10 category of quota settlement date
transaction transaction related-party thousands (10 price
RMB) transactions Thousands exceeded? method
transaction RMB)
An
independent
directors of Announcement on the
Ping An Fair pricing “Proposal
Insurance the Company based on Settlement on Estimated Daily
serves as an Provide market prices based on the
(Group) services Related-party Transaction
in accordance Contract settlement January 4,
Company of independent to related Courier service
with the price 4,922.69 1.10% 11,000 No period and N/A 2019
Amount in 2019”
China, Ltd. director of disclosed at CNINFO
Ping An parties principle of terms in the
and independent contract (Announcement
its subsidiaries Insurance
(Group) transactions No. 2019-011)
(http://www.cninfo.com.cn)
Company of
China, Ltd.
Announcement on the
Fair pricing “Proposal
based on Settlement on Estimated Daily
Receive Express delivery market prices based on the
Mingde Controlling services Related-party Transaction
agent service in accordance Contract 5,618.52 0.14% 18,000 No settlement N/A January 4, Amount in 2019”
Holding and shareholder of from related with the price period and 2019
its subsidiaries the Company fees, etc. principle of terms in the disclosed at CNINFO
parties (Announcement
independent contract
transactions No. 2019-011)
(http://www.cninfo.com.cn)
An
independent Announcement on the
director of Fair pricing “Proposal
China Pacific the Company based on Settlement on Estimated Daily
Insurance serves as an Receive market prices based on the
services Insurance Related-party Transaction
(Group) Co., independent in accordance Contract 4,506.21 0.11% 13,000 No settlement N/A January 4, Amount in 2019”
from related premium with the price period and 2019
Ltd. and its director of principle of terms in the disclosed at CNINFO
parties (Announcement
subsidiaries China Pacific independent contract
Insurance transactions No. 2019-011)
(Group) Co., (http://www.cninfo.com.cn)
Ltd.
A senior Announcement on the
Fair pricing “Proposal
manager of the Settlement
Company based on on Estimated Daily
CR-SF Receive market prices based on the Related-party Transaction
International serves asofa services Transportation in accordance Contract 8,077.80 0.20% 35,000 No settlement N/A January 4, Amount in 2019”
Express Co., director
CR-SF from related services with the price period and 2019
Ltd. principle of terms in the disclosed at CNINFO
International parties (Announcement
Express Co., independent contract
transactions No. 2019-011)
Ltd. (http://www.cninfo.com.cn)
85
S.F. Holding Co., Ltd. 2019 Semi-Annual Report
Pricing Approved
Transaction Proportion Was the Related-party
Type of Details of principle transaction Similar
Transaction amount of same approved transaction Disclosure
Related Party Relationship related-party related-party of the quota Market Disclosure index
price (10 category of quota settlement date
transaction transaction related-party thousands (10 price
RMB) transactions Thousands exceeded? method
transaction RMB)
Announcement on the
Fair pricing “Proposal
based on Settlement on Estimated Daily
Mingde Controlling Purchase of market prices based on the Related-party Transaction
Purchase of in accordance Contract settlement January 4, Amount in 2019”
Holding and shareholder of materials from materials price 4,177.27 0.10% 15,000 No period and N/A 2019
its subsidiaries the Company related parties with the disclosed at CNINFO
principle of terms in the
independent contract (Announcement
transactions No. 2019-011)
(http://www.cninfo.com.cn)
A director of Announcement on the
Fair pricing “Proposal
the Company based on Settlement
Zhejiang serves as a on Estimated Daily
Galaxy Purchase of market prices based on the Related-party Transaction
director of Purchase of in accordance Contract settlement January 4,
Technology Zhejiang assets from assets - - 40,000 No N/A Amount in 2019”
Company with the price period and 2019
Galaxy related parties principle of terms in the disclosed at CNINFO
Limited Technology contract (Announcement
Company independent
transactions No. 2019-011)
Limited (http://www.cninfo.com.cn)
--
Total -- -- 92,289.02 -- 296,000 -- -- -- --
Details of large amount of sales returns N/A
The Company's eighteenth meeting of the fourth Board of Directors on January 3, 2019 and the First Extraordinary General
Actual performance in the reporting period versus predicted total amount of daily Meeting of Shareholders of 2019 on January 23, 2019 reviewed and approved the “Proposal on Estimated Daily
related-party transactions, by types (if any) Related-party Transaction Amount in 2018.” The amount of the aforementioned related-party transactions did not exceed the
approved amount.
Reason for significant difference between the transaction price and the market price N/A
86
S.F. Holding Co., Ltd. 2019 Semi-Annual Report
2. Related-party transactions relevant to purchases and sales of assets
□Applicable √ Not applicable
No significant related-party transactions relevant to purchases and sales of assets during the reporting period.
3. Related-party transactions with joint investments
□Applicable √ Not applicable
No significant related-party transactions with joint investments during the reporting period.
4. Credits and liabilities with related parties
√ Applicable □Not applicable
Were there non-operating credits and liabilities with related parties?
□Yes √ No
No such cases in the reporting period.
5. Other significant related-party transactions
□Applicable √ Not applicable
XIV. Significant contracts and their execution
1. Trusteeships, Contracts, and Leases
(1) Trusteeships
□Applicable √ Not applicable
No significant trusteeships in the reporting period.
(2) Contracts
□Applicable √ Not applicable
No significant contracts in the reporting period.
(3) Leases
□Applicable √ Not applicable
No significant leases in the reporting period.
87
S.F. Holding Co., Ltd. 2019 Semi-Annual Report
2. Significant guarantees
√Applicable □Not applicable
Guarantees provided by the Company
Unit: RMB 10 thousands
The listed Company's guarantees to subsidiaries
Amount of Guarantee
Disclosure date Actual
guaranteed Actual date of Type of Period of for a
Guarantee party of Quota guarantee Executed?
Quota occurrence guarantee guarantee related
announcement amount
approved party?
SF HOLDING INVESTMENT Joint liability 2018/7/26-202
2017/12/28 343,855 2018/7/26 343,855 No No
LIMITED guarantee 3/7/26
Joint liability 2019/02/11-20
SF HOLDING LIMITED 2019/1/4 550,000 2019/2/11 358,163.3 Yes No
guarantee 19/06/26
Total actual amount of
Total guarantee quota approved for guarantees for subsidiaries
subsidiaries during the reporting 1,150,000.00 358,163.30
during the reporting period
period (B1)
（B2）
Total actual guarantee
Total guarantee quota approved for
balance for subsidiaries at the
the subsidiaries at the end of the 1,135,691.71 343,855
end of the reporting period
reporting period（B3）
（B4）
Subsidiary's guarantees to subsidiaries
Amount of
Disclosure date Actual Guarantee
guaranteed Actual date of Type of Period of
Guarantee party of Quota guarantee Executed? for a related
Quota occurrence guarantee guarantee
announcement amount party?
approved
Beijing Shuncheng Logistics Co., Joint liability 2014/5/21-201
2013/6/25 5,000 Yes No
Ltd. guarantee 9/5/21
Shenzhen S.F. Aviation Industry
Joint liability 2013/8/21-201
Real Estate Management Co., Ltd., 2013/7/31 400 Yes No
guarantee 9/5/20
S.F. Express Co., Ltd.
Shenzhen S.F. Aviation Industry
Joint liability 2013/8/21-202
Real Estate Management Co., Ltd., 2013/7/31 404.57 No No
guarantee 3/7/30
S.F. Express Co., Ltd.
Shenzhen S.F. Aviation Industry
Joint liability 2013/9/5-2023/
Real Estate Management Co., Ltd., 2013/7/31 3,500 No No
guarantee 7/30
S.F. Express Co., Ltd.
Shenzhen S.F. Aviation Industry
Joint liability 2013/10/12-20
Real Estate Management Co., Ltd., 2013/7/31 2,600 No No
guarantee 23/7/30
S.F. Express Co., Ltd.
Shenzhen S.F. Aviation Industry
Joint liability 2013/11/25-20
Real Estate Management Co., Ltd., 2013/7/31 1,500 No No
guarantee 23/7/30
S.F. Express Co., Ltd.
Shenzhen S.F. Aviation Industry
Joint liability 2014/11/7-202
Real Estate Management Co., Ltd., 2013/7/31 5,000 No No
guarantee 3/7/30
S.F. Express Co., Ltd.
Shenzhen S.F. Aviation Industry
Joint liability 2015/2/2-2023/
Real Estate Management Co., Ltd., 2013/7/31 5,000 No No
guarantee 7/30
S.F. Express Co., Ltd.
Shenzhen S.F. Aviation Industry
Joint liability 2015/4/30-202
Real Estate Management Co., Ltd., 2013/7/31 1,000 No No
guarantee 3/7/30
S.F. Express Co., Ltd.
Shenzhen S.F. Aviation Industry
Joint liability 2016/5/31-202
Real Estate Management Co., Ltd., 2013/7/31 2,500 No No
guarantee 3/7/30
S.F. Express Co., Ltd.
Joint liability 2015/9/15-201
Jiangxi S.F. Express Co., Ltd. 2015/9/15 300 Yes No
guarantee 9/1/16
Joint liability 2015/11/24-20
Jiangxi S.F. Express Co., Ltd. 2015/9/15 500 Yes No
guarantee 19/1/16
Joint liability 2015/12/29-20
Jiangxi S.F. Express Co., Ltd. 2015/9/15 500 Yes No
guarantee 19/1/16
Joint liability 2016/1/22-201
Jiangxi S.F. Express Co., Ltd. 2015/9/15 500 Yes No
guarantee 9/1/16
Joint liability 2016/4/15-201
Jiangxi S.F. Express Co., Ltd. 2015/9/15 500 Yes No
guarantee 9/1/16
Joint liability 2016/11/24-20
Jiangxi S.F. Express Co., Ltd. 2015/9/15 500 Yes No
guarantee 19/1/16
Quanzhou Fengyutai Enterprise Joint liability 2015/11/23-20
2015/9/24 170 Yes No
Management Co., Ltd. guarantee 19/4/19
Quanzhou Fengyutai Enterprise Joint liability 2015/12/22-20
2015/9/24 310 Yes No
Management Co., Ltd. guarantee 19/4/19
Quanzhou Fengyutai Enterprise Joint liability 2015/12/22-20
2015/9/24 190 No No
Management Co., Ltd. guarantee 25/9/23
88
S.F. Holding Co., Ltd. 2019 Semi-Annual Report
Quanzhou Fengyutai Enterprise Joint liability 2016/1/21-202
2015/9/24 2,500 No No
Management Co., Ltd. guarantee 5/9/23
Quanzhou Fengyutai Enterprise Joint liability 2016/4/28-202
2015/9/24 500 No No
Management Co., Ltd. guarantee 5/9/23
Quanzhou Fengyutai Enterprise Joint liability 2016/5/27-202
2015/9/24 1,500 No No
Management Co., Ltd. guarantee 5/9/23
Quanzhou Fengyutai Enterprise Joint liability 2016/6/28-202
2015/9/24 1,500 No No
Management Co., Ltd. guarantee 5/9/23
Quanzhou Fengyutai Enterprise Joint liability 2016/8/26-202
2015/9/24 100 No No
Management Co., Ltd. guarantee 5/9/23
Quanzhou Fengyutai Enterprise Joint liability 2017/1/18-202
2015/9/24 1,870 No No
Management Co., Ltd. guarantee 5/9/23
Ningbo Fengtai E-commerce
Joint liability 2016/8/11-202
Industrial Park Management Co., 2016/8/11 2,092.50 No No
guarantee 8/8/11
Ltd.
Hefei Fengtai E-commerce
Joint liability 2017/7/7-2027/
Industrial Park Management Co., 2016/12/30 63,100 2017/7/7 622 No No
guarantee 12/30
Ltd.
Tianjin Fengtai E-commerce Park Joint liability 2018/10/19-20
2018/3/14 28,000 2018/10/19 6,877 No No
Co., Ltd. guarantee 33/10/19
Tianjin Fengtai E-commerce Park Joint liability 2018/11/9-203
2018/3/14 28,000 2018/10/19 2,200 No No
Co., Ltd. guarantee 3/10/19
Tianjin Fengtai E-commerce Park Joint liability 2018/12/19-20
2018/3/14 28,000 2018/10/19 1,100 No No
Co., Ltd. guarantee 33/10/19
Tianjin Fengtai E-commerce Park Joint liability 2019/01/28-20
2018/3/14 28,000 2018/10/19 2,150 No No
Co., Ltd. guarantee 33/10/19
Wuhu Fengtai E-commerce
Joint liability 2019/1/18-203
Industrial Park Management Co., 2018/3/14 18,000 2019/1/18 750 No No
guarantee 4/1/18
Ltd.
Wuhu Fengtai E-commerce
Joint liability 2019/4/1-2034/
Industrial Park Management Co., 2018/3/14 18,000 2019/1/18 6,688 No No
guarantee 1/18
Ltd.
Joint liability 2014/12/5-201
S.F. EXPRESS (CHINA) LIMITED 2013/8/26 136.88 Yes No
guarantee 9/1/26
Joint liability 2014/12/5-201
S.F. EXPRESS (CHINA) LIMITED 2013/8/26 141.36 Yes No
guarantee 9/2/26
Joint liability 2014/12/5-201
S.F. EXPRESS (CHINA) LIMITED 2013/8/26 143.97 Yes No
guarantee 9/3/26
Joint liability 2014/12/5-201
S.F. EXPRESS (CHINA) LIMITED 2013/8/26 139.78 Yes No
guarantee 9/4/26
Joint liability 2014/12/5-201
S.F. EXPRESS (CHINA) LIMITED 2013/8/26 139.96 Yes No
guarantee 9/5/26
Joint liability 2014/12/5-201
S.F. EXPRESS (CHINA) LIMITED 2013/8/26 140.39 Yes No
guarantee 9/6/26
Joint liability 2014/12/5-202
S.F. EXPRESS (CHINA) LIMITED 2013/8/26 311.56 No No
guarantee 3/8/26
Joint liability 2015/2/13-202
S.F. EXPRESS (CHINA) LIMITED 2013/8/26 342.96 No No
guarantee 3/8/26
Joint liability 2015/5/18-202
S.F. EXPRESS (CHINA) LIMITED 2013/8/26 700.88 No No
guarantee 3/8/26
Joint liability 2015/6/30-202
S.F. EXPRESS (CHINA) LIMITED 2013/8/26 2,102.65 No No
guarantee 3/8/26
Joint liability 2015/12/2-202
S.F. EXPRESS (CHINA) LIMITED 2013/8/26 1,401.77 No No
guarantee 3/8/26
Joint liability 2016/2/25-202
S.F. EXPRESS (CHINA) LIMITED 2013/8/26 1,407.03 No No
guarantee 3/8/26
Joint liability 2016/3/11-202
S.F. EXPRESS (CHINA) LIMITED 2013/8/26 771.23 No No
guarantee 3/8/26
Joint liability 2016/4/11-202
S.F. EXPRESS (CHINA) LIMITED 2013/8/26 84.64 No No
guarantee 3/8/26
Joint liability 2016/7/25-201
SF Holding Limited 2016/7/25 879.9 Yes No
guarantee 9/1/25
Joint liability 2016/7/25-202
SF Holding Limited 2016/7/25 4,047.54 No No
guarantee 1/9/30
Joint liability 2018/3/20-201
SF Holding Limited 2016/12/30 509,400 2018/3/20 35,196 Yes No
guarantee 9/2/28
Joint liability 2018/7/4-2019/
SF Holding Limited 2018/3/14 522,300 2018/7/4 57,193.50 No No
guarantee 7/15
Joint liability 2018/7/11-201
SF Holding Limited 2018/3/14 522,300 2018/7/11 21,997.50 Yes No
guarantee 9/3/18
Joint liability 2016/11/18-20
SF Holding Limited 2016/11/18 13,198.50 Yes No
guarantee 19/3/11
Joint liability 2019/1/11-201
SF Holding Limited 2018/3/14 522,300 2019/1/11 17,598 Yes No
guarantee 9/5/14
Joint liability 2019/1/8-2020/
SF Holding Limited 2018/3/14 522,300 2019/1/8 30,796.50 No No
guarantee 1/8
Joint liability 2017/6/14-201
SF Holding Limited 2016/12/30 509,400 2017/6/14 17,598 Yes No
guarantee 9/3/21
Joint liability 2018/1/16-202
SF Holding Limited 2016/12/30 509,400 2018/1/16 13,198.50 No No
guarantee 0/1/16
89
S.F. Holding Co., Ltd. 2019 Semi-Annual Report
Joint liability 2018/7/17-201
SF Holding Limited 2018/3/14 522,300 2018/7/17 4,399.50 Yes No
guarantee 9/3/21
Joint liability 2019/3/29-201
SF Holding Limited 2018/3/14 522,300 2019/3/29 17,598 Yes No
guarantee 9/4/8
Joint liability 2019/6/26-201
SF Holding Limited 2019/3/16 1,013,659 2019/6/26 17,598 No No
guarantee 9/7/10
Joint liability 2019/06/21-20
SF Holding Limited 2019/3/16 1,013,659 2019/6/21 358,163.30 No No
guarantee 25/06/26
Joint liability 2017/8/4-2019/
S.F. Express Limited 2016/12/30 1,600 2017/8/4 686.13 Yes No
guarantee 6/25
Joint liability 2017/6/21-201
S.F. Express Co., Ltd. 2016/12/30 13,500 2017/6/21 100 Yes No
guarantee 9/4/30
Joint liability 2017/5/28-201
SF Airlines Company Limited 2016/12/30 76,940 2017/5/28 2,000 Yes No
guarantee 9/6/15
Joint liability 2017/8/7-2019/
SF Airlines Company Limited 2016/12/30 76,940 2017/8/7 2,500 Yes No
guarantee 2/7
Joint liability 2017/6/22-202
SF Holding Limited 2016/12/30 509,400 2017/6/22 14.24 No No
guarantee 0/7/16
S.F. EXPRESS (HONG KONG) Joint liability 2016/12/15-20
2016/12/15 5.69 Yes No
LIMITED guarantee 19/2/14
Zhejiang Shun Feng Express Co., Joint liability 2018/4/8-2019/
2018/3/14 3,900 2018/4/8 200 Yes No
Ltd. guarantee 4/28
Joint liability 2018/4/20-201
Yantai S.F Express Co., Ltd. 2018/3/14 500 2018/4/20 65 Yes No
guarantee 9/1/31
Joint liability 2018/4/17-201
Xi'an Shunlu Logistics Co., Ltd. 2018/3/14 1,000 2018/4/17 213.48 Yes No
guarantee 9/3/9
Joint liability 2018/4/28-201
SF Express ChongQing CO.LTD 2018/3/14 1,700 2018/4/28 255.89 Yes No
guarantee 9/4/27
S.F. Express Group (Shanghai) Co., Joint liability 2018/5/4-2019/
2018/3/14 2,000 2018/4/27 100 Yes No
Ltd. guarantee 5/4
Joint liability 2018/4/28-201
S. F. Express (Shenyang) Co., Ltd 2018/3/14 2,300 2018/4/28 10 Yes No
guarantee 9/1/31
Joint liability 2018/4/28-201
SF-Express(Ningxia)Co.,Ltd 2018/3/14 200 2018/4/28 1 Yes No
guarantee 9/4/10
Joint liability 2018/4/17-201
S.F. Express (Huizhou) Co., Ltd. 2018/3/14 2,500 2018/4/17 19.57 Yes No
guarantee 9/3/24
Joint liability 2018/3/8-2019/
SF Airlines Company Limited 2016/12/30 76,940 2018/4/2 46.84 Yes No
guarantee 3/7
Joint liability 2018/3/8-2019/
SF Airlines Company Limited 2016/12/30 76,940 2018/4/2 22.38 Yes No
guarantee 3/7
Joint liability 2018/4/2-2019/
SF Airlines Company Limited 2016/12/30 76,940 2018/4/2 10 Yes No
guarantee 3/31
Shenzhen Shunlu Air Freight Joint liability 2018/1/9-2019/
2016/12/30 7,000 2018/1/9 1,850 Yes No
Forwarding Co., Ltd. guarantee 2/28
Shenzhen Shunlu Air Freight Joint liability 2018/2/1-2019/
2016/12/30 7,000 2018/2/1 2,038 Yes No
Forwarding Co., Ltd. guarantee 1/31
Shenzhen S.F. Supply Chain Co., Joint liability 2018/2/11-201
2016/12/30 116,000 2018/2/11 600 Yes No
Ltd. guarantee 9/3/1
Shenzhen S.F. Supply Chain Co., Joint liability 2018/3/21-201
2016/12/30 116,000 2018/3/21 500 Yes No
Ltd. guarantee 9/3/20
Shenzhen S.F. Supply Chain Co., Joint liability 2018/4/2-2019/
2016/12/30 116,000 2018/4/2 3,000 Yes No
Ltd. guarantee 4/1
NINGBO SHUNFENG EXPRESS Joint liability 2018/4/12-201
2018/3/14 3,300 2018/4/8 500 Yes No
CO.,LTD. guarantee 9/4/11
Joint liability 2018/3/8-2019/
Hubei S.F. Express Co., Ltd. 2016/12/30 1,450 2018/3/8 323.29 Yes No
guarantee 2/8
Joint liability 2018/2/9-2019/
ShunFeng Express Co.,Ltd.Guangxi 2016/12/30 300 2018/2/9 100 Yes No
guarantee 1/31
Joint liability 2018/2/11-201
Chengdu Taishun Logistics Co.,Ltd. 2016/12/30 2,000 2018/2/8 800 Yes No
guarantee 9/2/10
Joint liability 2018/4/8-2019/
Beijing S.F. Express Co., LTD. 2018/3/14 5,000 2018/4/8 100 Yes No
guarantee 4/20
Joint liability 2018/1/10-201
Anhui S.F Express Co., Ltd. 2016/12/30 500 2018/1/10 100 Yes No
guarantee 9/5/31
S.F. EXPRESS (HONG KONG) Joint liability 2018/2/28-201
2016/12/30 7,700 2018/2/28 13.97 No No
LIMITED guarantee 9/8/31
Joint liability 2018/5/9-2019/
Liaoning Shunlu Logistics Co., Ltd. 2018/3/14 1,000 2018/5/9 191.3 Yes No
guarantee 4/30
NINGBO SHUNFENG EXPRESS Joint liability 2018/5/8-2019/
2018/3/14 3,300 2018/5/8 500 Yes No
CO.,LTD. guarantee 5/7
Joint liability 2018/4/18-201
S.F. EXPRESS (CHINA) LIMITED 2018/3/14 1,500 2018/4/18 42.3 Yes No
guarantee 9/5/4
Hangzhou Shunyifeng Import And Joint liability 2018/5/18-201
2018/3/14 1,000 2018/5/18 20 Yes No
Export Trade CO., LTD guarantee 9/6/4
Joint liability 2018/5/18-201
Wuxi S.F. Express Co., Ltd. 2018/3/14 1,000 2018/5/18 10 Yes No
guarantee 9/5/24
Joint liability 2018/6/5-2019/
Hunan,S.F.Express(Group)Co.,Ltd. 2018/3/14 2,000 2018/6/5 143.1 Yes No
guarantee 5/25
Shenzhen Shuncheng Supply Chain Joint liability 2018/6/5-2019/
2018/3/14 20,000 2018/6/5 23 Yes No
Service Co., Ltd. guarantee 5/31
90
S.F. Holding Co., Ltd. 2019 Semi-Annual Report
Shenzhen S.F. Supply Chain Co., Joint liability 2018/6/5-2019/
2018/3/14 26,100 2018/6/5 500 Yes No
Ltd. guarantee 5/14
Joint liability 2018/6/6-2019/
SF Airlines Company Limited 2018/3/14 58,000 2018/6/6 99.58 Yes No
guarantee 6/1
Joint liability 2018/6/12-201
SF Airlines Company Limited 2018/3/14 58,000 2018/6/12 3.32 Yes No
guarantee 9/6/20
Joint liability 2018/6/12-201
SF Airlines Company Limited 2018/3/14 58,000 2018/6/12 13.28 Yes No
guarantee 9/6/28
Joint liability 2018/6/6-2019/
S.F.Express(Dong Guan)Limited 2018/3/14 8,500 2018/6/6 186.61 Yes No
guarantee 5/1
Shenzhen SF Fix Technology Co., Joint liability 2018/6/21-201
2018/3/14 23,000 2018/6/21 400 Yes No
Ltd. guarantee 9/1/31
Joint liability 2018/6/28-201
Jiangxi S.F. Express Co., Ltd. 2018/3/14 1,300 2018/6/28 50 Yes No
guarantee 9/5/31
Joint liability 2018/6/22-201
Beijing S.F. Express Co., LTD. 2018/3/14 5,000 2018/6/22 30 Yes No
guarantee 9/1/20
Joint liability 2018/6/28-201
Foshan S.F. Express Co., Ltd. 2018/3/14 1,400 2018/6/28 123.91 Yes No
guarantee 9/5/31
Joint liability 2018/6/22-201
Shanghai Shuncheng Co., Ltd. 2018/3/14 6,000 2018/6/22 40 Yes No
guarantee 9/4/30
Chongqing Huiyifeng Logistics Co., Joint liability 2018/6/22-201
2018/3/14 3,000 2018/6/22 500 Yes No
Ltd. guarantee 9/4/30
S.F. EXPRESS (HONG KONG) Joint liability 2017/10/24-20
2016/12/30 7,700 2017/10/24 14.79 No No
LIMITED guarantee 19/8/31
Beijing Shuncheng Logistics Co., Joint liability 2018/7/3-2019/
2018/3/14 6,000 2018/7/3 1,250 Yes No
Ltd. guarantee 6/29
Beijing Shuncheng Logistics Co., Joint liability 2018/7/3-2019/
2018/3/14 6,000 2018/7/3 500 Yes No
Ltd. guarantee 6/27
Joint liability 2018/7/4-2019/
Anhui S.F Express Co., Ltd. 2018/3/14 900 2018/7/4 73.64 Yes No
guarantee 5/31
Chengdu Shunyifeng Joint liability 2018/7/3-2019/
2018/3/14 500 2018/7/3 150 Yes No
Pharmaceutical Co., Ltd. guarantee 6/15
Joint liability 2018/7/3-2019/
Hebei S.F. Express Co., Ltd. 2018/3/14 1,600 2018/7/3 90 Yes No
guarantee 5/11
Joint liability 2018/7/6-2019/
Hubei S.F. Express Co., Ltd. 2018/3/14 1,800 2018/7/6 42.79 Yes No
guarantee 3/31
Joint liability 2018/7/5-2019/
Jiangsu S.F. Express Co., Ltd. 2018/3/14 500 2018/7/5 82.33 Yes No
guarantee 5/31
Joint liability 2018/7/3-2019/
Shandong S.F. Express Co., Ltd. 2018/3/14 1,300 2018/7/3 60 Yes No
guarantee 5/1
Joint liability 2018/7/6-2019/
Shandong S.F. Express Co., Ltd. 2018/3/14 1,300 2018/7/6 14 Yes No
guarantee 5/1
Joint liability 2018/7/24-201
Shandong S.F. Express Co., Ltd. 2018/3/14 1,300 2018/7/24 255 Yes No
guarantee 9/5/31
Joint liability 2018/7/24-201
Shanghai Shuncheng Co., Ltd. 2018/3/14 6,000 2018/7/24 30 No No
guarantee 9/12/31
Joint liability 2018/7/6-2019/
Shanghai Shuncheng Co., Ltd. 2018/3/14 6,000 2018/7/6 380 Yes No
guarantee 5/31
Shanghai Shunheng Logistics Co., Joint liability 2018/7/2-2019/
2018/3/14 500 2018/7/2 100 No No
Ltd. guarantee 9/30
Shenzhen S.F. Supply Chain Co., Joint liability 2018/7/2-2019/
2018/3/14 26,100 2018/7/2 1,000 No No
Ltd. guarantee 7/24
Shenzhen S.F. Supply Chain Co., Joint liability 2018/7/2-2019/
2018/3/14 26,100 2018/7/2 1,300 Yes No
Ltd. guarantee 2/28
Shenzhen S.F. Supply Chain Co., Joint liability 2018/7/4-2019/
2018/3/14 26,100 2018/7/4 39.55 Yes No
Ltd. guarantee 5/31
Shenzhen S.F. Supply Chain Co., Joint liability 2018/7/18-201
2018/3/14 26,100 2018/7/18 110.54 No No
Ltd. guarantee 9/8/8
Joint liability 2018/7/18-201
S.F.Express(Dong Guan)Limited 2018/3/14 8,500 2018/7/18 24.31 Yes No
guarantee 9/5/31
Joint liability 2018/7/24-201
S.F.Express(Dong Guan)Limited 2018/3/14 8,500 2018/7/24 186.61 Yes No
guarantee 9/5/1
Shenzhen S.F. Supply Chain Co., Joint liability 2018/7/4-2019/
2018/3/14 26,100 2018/7/4 104.17 Yes No
Ltd. guarantee 5/31
Joint liability 2018/7/18-201
S.F.Express(Dong Guan)Limited 2018/3/14 8,500 2018/7/18 226.45 Yes No
guarantee 9/5/31
Joint liability 2018/7/6-2019/
Sichuan S.F. Express Co., Ltd. 2018/3/14 1,800 2018/7/6 10 Yes No
guarantee 5/11
Joint liability 2018/7/20-201
XI`AN S.F EXPRESS CO.,LTD 2018/3/14 1,500 2018/7/20 125.74 No No
guarantee 9/7/15
Joint liability 2018/7/5-2019/
Wuxi S.F. Express Co., Ltd. 2018/3/14 1,000 2018/7/5 73.08 Yes No
guarantee 6/30
Joint liability 2018/7/4-2019/
S.F. Express Co., Ltd. 2018/3/14 30,000 2018/7/4 100 Yes No
guarantee 4/30
Joint liability 2018/7/6-2019/
Shanghai Shuncheng Co., Ltd. 2018/3/14 6,000 2018/7/6 400 Yes No
guarantee 6/22
Joint liability 2018/7/24-201
Shandong S.F. Express Co., Ltd. 2018/3/14 1,300 2018/7/24 20 Yes No
guarantee 9/5/9
Zhejiang Shun Feng Express Co., Joint liability 2018/7/6-2019/
2018/3/14 3,900 2018/7/6 451.33 Yes No
Ltd. guarantee 5/31
91
S.F. Holding Co., Ltd. 2019 Semi-Annual Report
Joint liability 2018/7/23-201
Jiangsu S.F. Express Co., Ltd. 2018/3/14 500 2018/7/23 28.15 Yes No
guarantee 9/3/19
S.F. EXPRESS (SINGAPORE) Joint liability 2018/7/19-201
2018/3/14 5,400 2018/7/19 159.89 No No
PRIVATE LIMITED guarantee 9/8/3
Beijing Shuncheng Logistics Co., Joint liability 2018/7/31-201
2018/3/14 6,000 2018/7/31 100 Yes No
Ltd. guarantee 9/5/31
Beijing Shuncheng Logistics Co., Joint liability 2018/7/31-201
2018/3/14 6,000 2018/7/31 200 Yes No
Ltd. guarantee 9/5/31
Beijing Shuncheng Logistics Co., Joint liability 2018/7/31-201
2018/3/14 6,000 2018/7/31 600 Yes No
Ltd. guarantee 9/5/7
Joint liability 2018/8/9-2019/
Lanzhou S.F. Express Co., Ltd. 2018/3/14 100 2018/8/9 15 Yes No
guarantee 4/30
Joint liability 2018/8/9-2019/
Hunan,S.F.Express(Group)Co.,Ltd. 2018/3/14 2,000 2018/8/9 100 Yes No
guarantee 6/30
Joint liability 2018/8/9-2019/
Hunan,S.F.Express(Group)Co.,Ltd. 2018/3/14 2,000 2018/8/9 200 Yes No
guarantee 6/30
Joint liability 2018/8/9-2019/
Hunan,S.F.Express(Group)Co.,Ltd. 2018/3/14 2,000 2018/8/9 400 Yes No
guarantee 6/30
Shenzhen SF Fix Technology Co., Joint liability 2018/8/16-201
2018/3/14 23,000 2018/8/16 100 Yes No
Ltd. guarantee 9/5/30
Joint liability 2018/8/16-201
Xiamen S.F. Express Co., Ltd. 2018/3/14 1,000 2018/8/16 60 Yes No
guarantee 9/6/30
QINGDAO S.F.EXPRESS Joint liability 2018/8/16-201
2018/3/14 1,300 2018/8/16 40 No No
CO.,LTD. guarantee 9/7/31
NINGBO SHUNFENG EXPRESS Joint liability 2018/8/16-201
2018/3/14 3,300 2018/8/16 30 Yes No
CO.,LTD. guarantee 9/4/30
Joint liability 2018/8/22-201
Foshan S.F. Express Co., Ltd. 2018/3/14 1,400 2018/8/22 123.91 Yes No
guarantee 9/5/31
Joint liability 2018/8/22-201
Zhejiang Shunlu Logistics Co.,Ltd. 2018/3/14 4,000 2018/8/22 1,500 Yes No
guarantee 9/6/30
Shenzhen SF Fix Technology Co., Joint liability 2018/8/23-201
2018/3/14 23,000 2018/8/23 1,600 Yes No
Ltd. guarantee 9/6/30
Joint liability 2018/8/23-201
TIANJIN S.F. EXPRESS CO., LTD. 2018/3/14 1,400 2018/8/23 106.05 No No
guarantee 9/7/31
Joint liability 2018/8/23-201
S.F. Express Co., Ltd. 2018/3/14 30,000 2018/8/23 10 No No
guarantee 9/7/31
Shenzhen Shunlu Air Freight Joint liability 2018/8/23-201
2018/3/14 3,000 2018/8/23 1,850 No No
Forwarding Co., Ltd. guarantee 9/12/31
Joint liability 2018/8/28-201
Anhui S.F Express Co., Ltd. 2018/3/14 900 2018/8/28 5 No No
guarantee 9/9/30
Shenzhen Shuncheng Supply Chain Joint liability 2018/8/28-201
2018/3/14 20,000 2018/8/28 6.6 No No
Service Co., Ltd. guarantee 9/10/31
Joint liability 2018/8/28-201
ShunFeng Express Co.,Ltd.Guangxi 2018/3/14 1,000 2018/8/28 6.01 No No
guarantee 9/10/31
Joint liability 2018/8/28-201
Yunnan S.F. Express Co., Ltd. 2018/3/14 800 2018/8/28 11.29 Yes No
guarantee 9/6/15
Joint liability 2018/8/28-201
XI`AN S.F EXPRESS CO.,LTD 2018/3/14 1,500 2018/8/28 52.12 No No
guarantee 9/7/31
Joint liability 2018/8/28-201
Jinhua S.F. Express Co., Ltd. 2018/3/14 200 2018/8/28 83.68 No No
guarantee 9/8/9
Joint liability 2018/8/28-201
S.F. Express Co., Ltd. 2018/3/14 30,000 2018/8/28 1,000 Yes No
guarantee 9/2/18
Joint liability 2018/8/30-201
Hubei S.F. Express Co., Ltd. 2018/3/14 1,800 2018/8/30 55.33 Yes No
guarantee 9/6/30
S.F. Transportation (Changzhou) Joint liability 2018/8/31-201
2018/3/14 300 2018/8/31 118.3 No No
Co., Ltd. guarantee 9/9/30
Joint liability 2018/8/14-201
SF Airlines Company Limited 2018/3/14 58,000 2018/8/14 25.53 No No
guarantee 9/8/13
Joint liability 2018/8/8-2019/
Guang Zhou S.F. Express Co., Ltd. 2018/3/14 8,000 2018/8/8 200 No No
guarantee 8/8
Joint liability 2018/8/8-2019/
Guang Zhou S.F. Express Co., Ltd. 2018/3/14 8,000 2018/8/8 1,500 No No
guarantee 8/8
Joint liability 2018/9/6-2019/
Jiangxi S.F. Express Co., Ltd. 2018/3/14 1,300 2018/9/6 89.1 Yes No
guarantee 5/31
Joint liability 2018/9/6-2019/
Hunan,S.F.Express(Group)Co.,Ltd. 2018/3/14 2,000 2018/9/6 90.7 No No
guarantee 10/31
Joint liability 2018/9/12-201
S.F. Express Co., Ltd. 2018/3/14 30,000 2018/9/12 75.88 No No
guarantee 9/9/14
Joint liability 2018/9/13-201
S.F.Express(Dong Guan)Limited 2018/3/14 8,500 2018/9/13 149.62 No No
guarantee 9/7/31
S.F. Express Group (Shanghai) Co., Joint liability 2018/9/13-201
2018/3/14 2,000 2018/9/13 60 No No
Ltd. guarantee 9/7/31
Shenzhen Shunlu Air Freight Joint liability 2018/9/13-201
2018/3/14 3,000 2018/9/13 200 Yes No
Forwarding Co., Ltd. guarantee 9/1/31
Joint liability 2018/9/18-201
Jiangsu S.F. Express Co., Ltd. 2018/3/14 500 2018/9/18 10 Yes No
guarantee 9/6/30
Joint liability 2018/9/18-201
GANZHOU S.F EXPRESS Co.,Ltd 2018/3/14 100 2018/9/18 25 No No
guarantee 9/8/31
Joint liability 2018/9/20-201
S. F. Express (Shenyang) Co., Ltd 2018/3/14 2,300 2018/9/20 100 No No
guarantee 9/9/7
92
S.F. Holding Co., Ltd. 2019 Semi-Annual Report
Joint liability 2018/9/20-201
Jiangxi S.F. Express Co., Ltd. 2018/3/14 1,300 2018/9/20 15 No No
guarantee 9/9/14
Shenzhen Shuncheng Supply Chain Joint liability 2018/9/19-201
2018/3/14 20,000 2018/9/19 25.04 No No
Service Co., Ltd. guarantee 9/9/30
Joint liability 2018/9/18-201
Wuxi S.F. Express Co., Ltd. 2018/3/14 1,000 2018/9/18 73.08 Yes No
guarantee 9/6/27
Beijing Shuncheng Logistics Co., Joint liability 2018/9/19-201
2018/3/14 6,000 2018/9/19 527.59 No No
Ltd. guarantee 9/9/30
S.F. EXPRESS (HONG KONG) Joint liability 2018/9/13-202
2018/3/14 1,500 2018/9/13 16.76 No No
LIMITED guarantee 0/7/14
S.F. EXPRESS (HONG KONG) Joint liability 2018/9/14-202
2018/3/14 1,500 2018/9/14 46.42 No No
LIMITED guarantee 0/9/30
Joint liability 2018/9/25-201
SF Airlines Company Limited 2018/3/14 58,000 2018/9/25 2,756.10 No No
guarantee 9/10/10
Joint liability 2018/9/17-201
Chengdu Taishun Logistics Co.,Ltd. 2018/3/14 2,000 2018/9/17 100 Yes No
guarantee 9/4/30
Joint liability 2018/08/03-20
Zhejiang Shunlu Logistics Co.,Ltd. 2018/3/14 4,000 2018/8/3 10 Yes No
guarantee 19/04/30
Joint liability 2018/9/18-201
SF Airlines Company Limited 2018/3/14 58,000 2018/9/18 12.4 No No
guarantee 9/9/1
Joint liability 2018/9/29-201
Shenzhen Shunlu Logistics Co., Ltd. 2018/3/14 1,000 2018/9/29 338.32 Yes No
guarantee 9/1/31
Joint liability 2018/9/29-201
SF Airlines Company Limited 2018/3/14 58,000 2018/9/29 2 Yes No
guarantee 9/4/30
Suzhou Industrial Park S.F. Express Joint liability 2018/9/28-201
2018/3/14 1,000 2018/9/28 205.17 Yes No
Co., Ltd. guarantee 9/2/23
Joint liability 2018/9/28-201
Xunchuan Investment Co., Ltd. 2018/3/14 26,000 2018/9/28 11,216.74 Yes No
guarantee 9/2/28
Joint liability 2018/12/17-20
Xunchuan Investment Co., Ltd. 2018/3/14 26,000 2018/12/17 1,375.42 Yes No
guarantee 19/4/30
Joint liability 2018/10/15-20
S.F. Express Co., Ltd. 2018/3/14 30,000 2018/10/15 2,208 No No
guarantee 19/10/31
Joint liability 2018/10/17-20
Zhejiang Shunlu Logistics Co.,Ltd. 2018/3/14 4,000 2018/10/17 80 No No
guarantee 19/9/30
Joint liability 2018/10/17-20
Anhui S.F Express Co., Ltd. 2018/3/14 900 2018/10/17 5 No No
guarantee 19/9/24
Joint liability 2018/10/22-20
SF Express ChongQing CO.LTD 2018/3/14 1,700 2018/10/22 246.15 No No
guarantee 19/9/30
Joint liability 2018/10/22-20
Shandong S.F. Express Co., Ltd. 2018/3/14 1,300 2018/10/22 48.04 No No
guarantee 19/9/30
Joint liability 2018/10/22-20
Beijing S.F. Express Co., LTD. 2018/3/14 5,000 2018/10/22 464.88 No No
guarantee 19/9/22
Joint liability 2018/10/9-201
S.F. Express Co., Ltd. 2018/3/14 30,000 2018/10/9 300 No No
guarantee 9/10/7
Joint liability 2018/10/15-20
S.F. Express Co., Ltd. 2018/3/14 30,000 2018/10/15 30 No No
guarantee 19/10/15
Joint liability 2018/10/1-201
SF Airlines Company Limited 2018/3/14 58,000 2018/10/1 20.9 No No
guarantee 9/9/30
S.F. EXPRESS (HONG KONG) Joint liability 2018/10/10-20
2018/3/14 1,500 2018/10/10 29.6 No No
LIMITED guarantee 21/7/30
Beijing Shuncheng Logistics Co., Joint liability 2018/11/4 -
2018/3/14 6,000 2018/11/4 563.53 No No
Ltd. guarantee 2019/10/26
Joint liability 2018/11/4 -
Yancheng S.F. Express Co., Ltd. 2018/3/14 100 2018/11/4 5 Yes No
guarantee 2019/4/30
Joint liability 2018/11/2 -
SF Data Service (Wuhan) Co., Ltd. 2018/3/14 500 2018/11/2 77.76 No No
guarantee 2019/11/2
Joint liability 2018/11/12
Beijing S.F. Express Co., LTD. 2018/3/14 5,000 2018/11/12 19.5 No No
guarantee -2019/10/31
Quanzhou Shunlu Logistics Co., Joint liability 2018/11/15
2018/3/14 1,500 2018/11/15 75.88 No No
Ltd. guarantee -2019/11/30
Quanzhou Shunlu Logistics Co., Joint liability 2018/11/15
2018/3/14 1,500 2018/11/15 26.36 No No
Ltd. guarantee -2019/10/31
Zhejiang Shun Feng Express Co., Joint liability 2018/12/8 -
2018/3/14 3,900 2018/11/19 250 No No
Ltd. guarantee 2019/12/7
S.F.EXPRESS (TIANJIN) CO., Joint liability 2018/11/19
2018/3/14 1,000 2018/11/19 72.06 No No
LTD. guarantee -2019/11/28
Joint liability 2018/11/19
Shandong S.F. Express Co., Ltd. 2018/3/14 1,300 2018/11/19 5 No No
guarantee -2019/11/30
Joint liability 2018/11/21
XI`AN S.F EXPRESS CO.,LTD 2018/3/14 1,500 2018/11/21 9.42 No No
guarantee -2019/11/30
Joint liability 2018/11/23 -
Yunnan S.F. Express Co., Ltd. 2018/3/14 800 2018/11/23 10 No No
guarantee 2019/11/5
S.F. Express Group (Shanghai) Co., Joint liability 2018/11/23
2018/3/14 2,000 2018/11/23 200 No No
Ltd. guarantee -2019/10/31
QINGDAO S.F.EXPRESS Joint liability 2018/11/23
2018/3/14 1,300 2018/11/23 260 No No
CO.,LTD. guarantee -2019/11/30
Joint liability 2018/11/23 -
Sichuan S.F. Express Co., Ltd. 2018/3/14 1,800 2018/11/23 56.69 No No
guarantee 2019/8/31
Shenzhen Shuncheng Supply Chain Joint liability 2018/11/22-20
2018/3/14 20,000 2018/11/22 7.88 No No
Service Co., Ltd. guarantee 19/9/30
93
S.F. Holding Co., Ltd. 2019 Semi-Annual Report
Joint liability 2018/11/22-20
Anhui S.F Express Co., Ltd. 2018/3/14 900 2018/11/22 23.64 No No
guarantee 19/11/30
Joint liability 2018/11/2-202
SF Express ChongQing CO.LTD 2018/3/14 1,700 2018/11/2 20.81 No No
guarantee 0/2/28
Suzhou Industrial Park S.F. Express Joint liability 2018/11/15-20
2018/3/14 1,000 2018/11/15 19.25 No No
Co., Ltd. guarantee 19/10/15
Suzhou Industrial Park S.F. Express Joint liability 2018/11/15-20
2018/3/14 1,000 2018/11/15 22.62 No No
Co., Ltd. guarantee 19/8/31
S.F. EXPRESS (HONG KONG) Joint liability 2018/11/26-20
2018/3/14 1,500 2018/11/26 12.71 No No
LIMITED guarantee 20/8/12
S.F. EXPRESS (HONG KONG) Joint liability 2018/11/2-202
2018/3/14 1,500 2018/11/2 10.34 No No
LIMITED guarantee 0/10/4
GZ SF Pharmaceutical Supply Joint liability 2018/12/6-201
2018/3/14 1,000 2018/12/6 20 No No
Chain Co., Ltd. guarantee 9/9/30
Suzhou Industrial Park S.F. Express Joint liability 2018/12/6-201
2018/3/14 1,000 2018/12/6 15 Yes No
Co., Ltd. guarantee 9/4/30
Joint liability 2018/12/6-201
Heilongjiang S.F. Express Co., Ltd. 2018/3/14 1,600 2018/12/6 100 No No
guarantee 9/11/28
Joint liability 2018/12/6-201
Liaoning Shunlu Logistics Co., Ltd. 2018/3/14 1,000 2018/12/6 420 No No
guarantee 9/10/31
Beijing Shuncheng Logistics Co., Joint liability 2018/12/17-20
2018/3/14 6,000 2018/12/17 527.59 No No
Ltd. guarantee 19/9/30
Zhejiang Shun Feng Express Co., Joint liability 2018/12/17-20
2018/3/14 3,900 2018/12/17 1,000 Yes No
Ltd. guarantee 19/6/30
Joint liability 2018/12/17-20
Jiangsu Huihai Logistics Co.,Ltd. 2018/3/14 200 2018/12/17 20 No No
guarantee 19/10/14
Joint liability 2018/12/5-201
S. F. Express (Shenyang) Co., Ltd 2018/3/14 2,300 2018/12/5 107.75 No No
guarantee 9/11/30
Joint liability 2018/12/19-20
S.F.Express(Dong Guan)Limited 2018/3/14 8,500 2018/12/19 993.23 No No
guarantee 19/11/20
Joint liability 2018/12/25-20
Anhui S.F Express Co., Ltd. 2018/3/14 900 2018/12/25 59.72 No No
guarantee 19/12/31
Joint liability 2018/12/25-20
S.F. Express Co., Ltd. 2018/3/14 30,000 2018/12/25 233.15 No No
guarantee 19/11/30
Shuncheng Financial Lease Joint liability 2018/2/9-2019/
2018/2/9 7,000 Yes No
(Shenzheng) Co., Ltd. guarantee 1/11
Shuncheng Financial Lease Joint liability 2018/2/9-2019/
2018/2/9 7,000 Yes No
(Shenzheng) Co., Ltd. guarantee 2/11
Shanghai Fengtaiyuanxing Property Joint liability 2018/09/01-20
2018/3/14 10,000 2018/9/1 4,578.29 No No
Management Co., Ltd. guarantee 21/08/31
Chengdu Shunyifeng Joint liability 2018/12/25-20
2018/3/14 500 2018/12/25 5 Yes No
Pharmaceutical Co., Ltd. guarantee 19/3/31
Joint liability 2019/2/7-2021/
SF Airlines Company Limited 2018/3/14 58,000 2018/12/25 2,500 No No
guarantee 2/7
Joint liability 2019/1/25-202
Anhui S.F Express Co., Ltd. 2018/3/14 900 2019/1/25 5 No No
guarantee 0/1/21
Joint liability 2019/1/2-2019/
S.F. EXPRESS (CHINA) LIMITED 2018/3/14 1,500 2019/1/2 8.56 No No
guarantee 11/30
Joint liability 2019/1/18-202
S.F. EXPRESS (CHINA) LIMITED 2018/3/14 1,500 2019/1/18 8.56 No No
guarantee 0/1/4
Joint liability 2019/1/21-201
S.F. EXPRESS (CHINA) LIMITED 2018/3/14 1,500 2019/1/21 12.85 No No
guarantee 9/12/31
Joint liability 2019/1/17-201
S.F. EXPRESS (CHINA) LIMITED 2018/3/14 1,500 2019/1/17 85.64 No No
guarantee 9/12/31
Joint liability 2019/1/31-201
Anhui S.F Express Co., Ltd. 2018/3/14 900 2019/1/31 80 Yes No
guarantee 9/5/31
Joint liability 2019/1/22-201
Anhui S.F Express Co., Ltd. 2018/3/14 900 2019/1/22 24.6 No No
guarantee 9/12/31
Beijing Shuncheng Logistics Co., Joint liability 2019/1/29-201
2018/3/14 6,000 2019/1/29 100 No No
Ltd. guarantee 9/12/31
Joint liability 2019/1/7-2019/
Beijing S.F. Express Co., LTD. 2018/3/14 5,000 2019/1/7 30 No No
guarantee 12/21
Chengdu Shunyifeng Joint liability 2019/1/17-201
2018/3/14 500 2019/1/17 43.63 No No
Pharmaceutical Co., Ltd. guarantee 9/12/31
Joint liability 2019/1/29-201
Chengdu Taishun Logistics Co.,Ltd. 2018/3/14 2,000 2019/1/29 800 Yes No
guarantee 9/4/30
Joint liability 2019/1/14-201
Foshan S.F. Express Co., Ltd. 2018/3/14 1,400 2019/1/14 76.99 No No
guarantee 9/12/31
Joint liability 2019/1/21-202
ShunFeng Express Co.,Ltd.Guangxi 2018/3/14 1,000 2019/1/21 100 No No
guarantee 0/1/31
Joint liability 2019/1/7-2019/
Guizhou S.F. Express Co., Ltd. 2018/3/14 900 2019/1/7 12.21 No No
guarantee 10/31
Joint liability 2019/1/21-201
HaiNan S.F.Express LTD. 2018/3/14 1,100 2019/1/21 35 No No
guarantee 9/10/29
Joint liability 2019/1/21-201
HaiNan S.F.Express LTD. 2018/3/14 1,100 2019/1/21 100 No No
guarantee 9/11/30
Joint liability 2019/1/29-201
HENAN S.F.EXPRESS CO.,LTD 2018/3/14 1,100 2019/1/29 126.93 Yes No
guarantee 9/5/31
Joint liability 2019/1/25-202
Hubei S.F. Express Co., Ltd. 2018/3/14 1,800 2019/1/25 42.79 No No
guarantee 0/1/15
94
S.F. Holding Co., Ltd. 2019 Semi-Annual Report
NINGBO SHUNFENG EXPRESS Joint liability 2019/1/7-2020/
2018/3/14 3,300 2019/1/7 500 No No
CO.,LTD. guarantee 12/31
Quanzhou Shunlu Logistics Co., Joint liability 2019/1/29-201
2018/3/14 1,500 2019/1/29 300 No No
Ltd. guarantee 9/12/31
Quanzhou Shunlu Logistics Co., Joint liability 2019/1/29-201
2018/3/14 1,500 2019/1/29 300 No No
Ltd. guarantee 9/12/31
Joint liability 2019/1/29-201
Xiamen S.F. Express Co., Ltd. 2018/3/14 1,000 2019/1/29 20 No No
guarantee 9/12/31
Joint liability 2019/1/25-201
Shanghai Shuncheng Co., Ltd. 2018/3/14 6,000 2019/1/25 30 No No
guarantee 9/12/31
Shenzhen S.F. Supply Chain Co., Joint liability 2019/1/15-201
2018/3/14 26,100 2019/1/15 120.13 No No
Ltd. guarantee 9/12/31
Shenzhen S.F. Supply Chain Co., Joint liability 2019/1/28-202
2018/3/14 26,100 2019/1/28 36.77 No No
Ltd. guarantee 0/1/20
Shenzhen Shunlu Air Freight Joint liability 2019/1/29-201
2018/3/14 3,000 2019/1/29 2,230 No No
Forwarding Co., Ltd. guarantee 9/12/31
Shenzhen Shunlu Air Freight Joint liability 2019/1/31-202
2018/3/14 3,000 2019/1/31 50 No No
Forwarding Co., Ltd. guarantee 0/1/1
Joint liability 2019/1/10-202
Shenzhen Shunlu Logistics Co., Ltd. 2018/3/14 1,000 2019/1/10 123.91 No No
guarantee 0/1/31
Joint liability 2019/1/10-202
SF Airlines Company Limited 2018/3/14 58,000 2019/1/10 18.19 No No
guarantee 0/5/31
Joint liability 2019/1/21-202
S. F. Express (Shenyang) Co., Ltd 2018/3/14 2,300 2019/1/21 10 No No
guarantee 0/4/30
Joint liability 2019/1/21-202
S. F. Express (Shenyang) Co., Ltd 2018/3/14 2,300 2019/1/21 10 No No
guarantee 0/4/30
S.F.EXPRESS (TIANJIN) CO., Joint liability 2019/1/23-202
2018/3/14 1,000 2019/1/23 61.35 No No
LTD. guarantee 0/1/20
Joint liability 2019/1/4-2019/
SF Express ChongQing CO.LTD 2018/3/14 1,700 2019/1/4 110 No No
guarantee 12/31
S.F. EXPRESS (HONG KONG) Joint liability 2019/1/2-2020/
2018/3/14 1,500 2019/1/2 3.1 No No
LIMITED guarantee 11/22
S.F. EXPRESS (HONG KONG) Joint liability 2019/1/3-2020/
2018/3/14 1,500 2019/1/3 11.97 No No
LIMITED guarantee 9/30
Joint liability 2019/1/29-202
Sichuan S.F. Express Co., Ltd. 2018/3/14 1,800 2019/1/29 5 No No
guarantee 0/1/31
Joint liability 2019/1/29-201
Sichuan S.F. Express Co., Ltd. 2018/3/14 1,800 2019/1/29 5.19 No No
guarantee 9/11/14
Joint liability 2019/1/10-202
TIANJIN S.F. EXPRESS CO., LTD. 2018/3/14 1,400 2019/1/10 80.9 No No
guarantee 0/1/31
QINGDAO S.F.EXPRESS Joint liability 2019/1/10-201
2018/3/14 1,300 2019/1/10 56.77 No No
CO.,LTD. guarantee 9/12/14
Joint liability 2019/1/7-2019/
S.F. Express Co., Ltd. 2018/3/14 30,000 2019/1/7 140.46 No No
guarantee 11/30
Zhejiang Shun Feng Express Co., Joint liability 2019/1/10-201
2018/3/14 3,900 2019/1/10 7 Yes No
Ltd. guarantee 9/3/5
Joint liability 2019/1/31-202
S.F. EXPRESS (CHINA) LIMITED 2018/3/14 1,500 2019/1/31 51.38 No No
guarantee 0/1/14
Chongqing Huiyifeng Logistics Co., Joint liability 2019/1/31-202
2018/3/14 3,000 2019/1/31 1,500 No No
Ltd. guarantee 0/1/24
Suzhou Industrial Park S.F. Express Joint liability 2019/2/20-201
2018/3/14 1,000 2019/2/20 15 Yes No
Co., Ltd. guarantee 9/4/30
Wenzhou Shunheng Express Co., Joint liability 2019/2/20-202
2018/3/14 500 2019/2/20 2 No No
Ltd. guarantee 0/1/6
FAST DELIVER INVESTMENT Joint liability 2019/3/5-2019/
2018/3/14 26,000 2019/3/5 6,586.89 Yes No
LIMITED) guarantee 6/30
FAST DELIVER INVESTMENT Joint liability 2019/3/5-2019/
2018/3/14 26,000 2019/3/5 6,586.89 No No
LIMITED) guarantee 7/31
Joint liability 2019/3/4-2020/
Jiangxi Shunlu Logistics Co.,Ltd. 2018/3/14 100 2019/3/4 50 No No
guarantee 2/29
Shenzhen SF Fix Technology Co., Joint liability 2019/3/5-2019/
2018/3/14 23,000 2019/3/5 20 No No
Ltd. guarantee 10/31
Shenzhen S.F. Supply Chain Co., Joint liability 2019/3/5-2020/
2018/3/14 26,100 2019/3/5 1,300 No No
Ltd. guarantee 3/28
Joint liability 2019/3/5-2020/
S.F. Express Co., Ltd. 2018/3/14 30,000 2019/3/5 300 No No
guarantee 3/1
Joint liability 2019/3/5-2020/
Zhanjiang S.F. Express Co., Ltd. 2018/3/14 700 2019/3/5 25 No No
guarantee 1/23
Shenzhen SF Comprehensive Joint liability 2019/3/12-201
2018/3/14 500 2019/3/12 150 No No
Logistics Service Co., Ltd. guarantee 9/12/31
Joint liability 2019/3/13-202
Xi'an Shunlu Logistics Co., Ltd. 2018/3/14 1,000 2019/3/13 222.02 No No
guarantee 0/3/9
Joint liability 2019/3/13-202
Xinjiang S.F. Express Co., Ltd. 2018/3/14 600 2019/3/13 2 No No
guarantee 0/3/7
Joint liability 2019/3/18-202
SF Airlines Company Limited 2018/3/14 58,000 2019/3/18 10 No No
guarantee 0/3/31
Joint liability 2019/3/19-202
Shenzhen Shunlu Logistics Co., Ltd. 2018/3/14 1,000 2019/3/19 80 No No
guarantee 0/6/30
Shenzhen SF Fix Technology Co., Joint liability 2019/3/26-202
2018/3/14 23,000 2019/3/26 400 No No
Ltd. guarantee 0/1/31
95
S.F. Holding Co., Ltd. 2019 Semi-Annual Report
Joint liability 2019/3/26-202
Yantai S.F Express Co., Ltd. 2018/3/14 500 2019/3/26 65 No No
guarantee 0/1/31
Joint liability 2019/3/26-202
SF Airlines Company Limited 2018/3/14 58,000 2019/3/26 21.84 No No
guarantee 0/3/7
Joint liability 2019/3/27-202
Jiangsu S.F. Express Co., Ltd. 2018/3/14 500 2019/3/27 28.15 No No
guarantee 0/3/19
Joint liability 2019/3/27-201
S.F. Express Co., Ltd. 2018/3/14 30,000 2019/3/27 20 No No
guarantee 9/12/31
Joint liability 2019/3/27-202
Tibet S.F. Express Co., Ltd. 2018/3/14 100 2019/3/27 5 No No
guarantee 0/2/29
Joint liability 2019/3/28-202
S.F. Express (Huizhou) Co., Ltd. 2018/3/14 2,500 2019/3/28 19.57 No No
guarantee 0/3/24
Shenzhen S.F. Supply Chain Co., Joint liability 2019/3/28-202
2018/3/14 26,100 2019/3/28 600 No No
Ltd. guarantee 0/2/29
Joint liability 2019/3/28-202
S.F. Express Co., Ltd. 2018/3/14 30,000 2019/3/28 200 No No
guarantee 0/3/1
Joint liability 2019/3/29-202
S.F. Express Co., Ltd. 2018/3/14 30,000 2019/3/29 3,000 No No
guarantee 0/3/14
Joint liability 2019/3/29-202
Jiangxi S.F. Express Co., Ltd. 2018/3/14 1,300 2019/3/29 223.43 No No
guarantee 0/3/15
Joint liability 2019/3/27-202
Zhongshan S.F. Express Co., Ltd. 2018/3/14 1,000 2019/3/27 141.98 No No
guarantee 0/3/26
Joint liability 2019/3/26-201
Hunan,S.F.Express(Group)Co.,Ltd. 2018/3/14 2,000 2019/3/26 90.7 No No
guarantee 9/11/30
Zhejiang Shun Feng Express Co., Joint liability 2019/4/29-202
2019/3/16 2,000 2019/4/29 50 No No
Ltd. guarantee 0/4/28
Joint liability 2019/4/3-2020/
Beijing S.F. Express Co., LTD. 2018/3/14 5,000 2019/4/3 100 No No
guarantee 4/20
Chengdu Shunyifeng Joint liability 2019/4/19-201
2019/3/16 100 2019/4/19 20 No No
Pharmaceutical Co., Ltd. guarantee 9/12/31
NINGBO SHUNFENG EXPRESS Joint liability 2019/4/10-202
2019/3/16 2,500 2019/4/10 550 No No
CO.,LTD. guarantee 0/5/7
Joint liability 2019/4/19-202
Shenzhen Shunlu Logistics Co., Ltd. 2019/3/16 2,100 2019/4/19 380.61 No No
guarantee 0/1/31
Joint liability 2019/4/19-202
SF Airlines Company Limited 2019/3/16 26,000 2019/4/19 2,000 No No
guarantee 0/5/26
Joint liability 2019/4/10-202
S.F.Express(Dong Guan)Limited 2019/3/16 1,800 2019/4/10 15.03 No No
guarantee 0/4/2
S.F. Express Group (Shanghai) Co., Joint liability 2019/4/24-202
2019/3/16 800 2019/4/24 100 No No
Ltd. guarantee 0/5/4
Joint liability 2019/4/10-202
SF Express ChongQing CO.LTD 2019/3/16 800 2019/4/10 264.85 No No
guarantee 0/4/30
SF Transportation (Nanjing) Co., Joint liability 2019/4/19-202
2019/3/16 300 2019/4/19 100 No No
Ltd. guarantee 0/4/8
S.F. EXPRESS (HONG KONG) Joint liability 2019/4/26-202
2019/3/16 8,200 2019/4/26 12.97 No No
LIMITED guarantee 1/5/15
Joint liability 2019/4/10-202
Sichuan S.F. Express Co., Ltd. 2019/3/16 500 2019/4/10 20 No No
guarantee 0/5/14
Joint liability 2019/4/3-2020/
Xinjiang S.F. Express Co., Ltd. 2018/3/14 600 2019/4/3 6 No No
guarantee 2/29
Joint liability 2019/4/3-2019/
Zhejiang Shunlu Logistics Co.,Ltd. 2018/3/14 4,000 2019/4/3 30 No No
guarantee 9/15
S.F. EXPRESS (HONG KONG) Joint liability 2019/5/23-202
2019/3/16 8,200 2019/5/23 85.64 No No
LIMITED guarantee 2/5/31
S.F. EXPRESS (HONG KONG) Joint liability 2019/5/23-202
2019/3/16 8,200 2019/5/23 144.39 No No
LIMITED guarantee 2/5/31
Joint liability 2019/5/29-202
S.F. EXPRESS (CHINA) LIMITED 2019/3/16 1,000 2019/5/29 42.82 No No
guarantee 0/7/6
Joint liability 2019/5/31-202
Anhui S.F Express Co., Ltd. 2019/3/16 500 2019/5/31 180 No No
guarantee 0/5/31
Joint liability 2019/5/22-202
Chengdu Taishun Logistics Co.,Ltd. 2019/3/16 1,500 2019/5/22 900 No No
guarantee 0/4/30
Joint liability 2019/4/30-202
Hebei S.F. Express Co., Ltd. 2019/3/16 300 2019/4/30 90 No No
guarantee 0/5/11
Joint liability 2019/4/8-2020/
Henan Huihai Logistics Co., Ltd. 2018/3/14 300 2019/4/8 151.72 No No
guarantee 1/31
Joint liability 2019/4/8-2020/
Hubei S.F. Transportation Co., Ltd. 2018/3/14 500 2019/4/8 323.29 No No
guarantee 3/20
Joint liability 2019/5/6-2020/
Liaoning Shunlu Logistics Co., Ltd. 2019/3/16 700 2019/5/6 191.3 No No
guarantee 4/23
Inner Mongolia S.F Express Joint liability 2019/5/28-202
2019/3/16 100 2019/5/28 10 No No
CO.Ltd. guarantee 0/3/31
Shenzhen S.F. Supply Chain Co., Joint liability 2019/4/30-202
2019/3/16 10,900 2019/4/30 3,000 No No
Ltd. guarantee 0/3/31
Joint liability 2019/4/8-2020/
SF-Express(Ningxia)Co.,Ltd 2018/3/14 200 2019/4/8 100 No No
guarantee 1/31
Joint liability 2019/5/6-2020/
S.F. Express Co., Ltd. 2019/3/16 25,000 2019/5/6 100 No No
guarantee 4/30
Joint liability 2019/5/23-202
Wuxi S.F. Express Co., Ltd. 2019/3/16 500 2019/5/23 20 No No
guarantee 0/5/24
96
S.F. Holding Co., Ltd. 2019 Semi-Annual Report
Joint liability 2019/6/11-202
S.F. Express Co., Ltd. 2019/3/16 25,000 2019/6/11 200 No No
guarantee 0/4/16
Shenzhen Shuncheng Supply Chain Joint liability 2019/6/19-202
2019/3/16 1,000 2019/6/19 23 No No
Service Co., Ltd. guarantee 0/5/31
Joint liability 2019/6/19-202
S.F. Express Co., Ltd. 2019/3/16 25,000 2019/6/19 4 No No
guarantee 0/4/16
Joint liability 2019/6/21-202
Shanghai Shuncheng Co., Ltd. 2019/3/16 2,000 2019/6/21 400 No No
guarantee 0/6/22
FS ELECTRONIC TECHNOLOGY Joint liability 2019/6/20-202
2019/3/16 4,000 2019/6/20 25.76 No No
CO., LIMITED guarantee 0/3/31
Shenzhen SF Fix Technology Co., Joint liability 2019/6/5-2020/
2019/3/16 20,800 2019/6/5 1,600 No No
Ltd. guarantee 6/30
Shenzhen S.F. Supply Chain Co., Joint liability 2019/6/5-2020/
2019/3/16 10,900 2019/6/5 104.17 No No
Ltd. guarantee 10/15
Joint liability 2019/6/10-202
Shandong S.F. Express Co., Ltd. 2019/3/16 1,000 2019/6/10 60 No No
guarantee 0/5/31
Joint liability 2019/6/21-202
XI`AN S.F EXPRESS CO.,LTD 2019/3/16 300 2019/6/21 53.84 No No
guarantee 0/6/17
Joint liability 2019/5/29-202
Tibet S.F. Express Co., Ltd. 2019/3/16 200 2019/5/29 2 No No
guarantee 0/4/30
Shanghai Shunxiaofeng Joint liability 2019/6/4-2019/
2019/3/16 200 2019/6/4 50 No No
Transportation Co., Ltd. guarantee 10/31
Joint liability 2019/6/11-202
S.F. EXPRESS (CHINA) LIMITED 2019/3/16 1,000 2019/6/11 42.93 No No
guarantee 0/5/31
E COMMERCE FULFILLMENT Joint liability 2019/6/19-201
2019/3/16 7,060 2019/6/19 20.98 No No
COMPANY LIMITED guarantee 9/12/12
Joint liability 2019/6/10-202
Shandong S.F. Express Co., Ltd. 2019/3/16 1,000 2019/6/10 14 No No
guarantee 0/1/31
Joint liability 2019/5/30-201
Zhejiang Shunlu Logistics Co.,Ltd. 2019/3/16 1,800 2019/5/30 650 No No
guarantee 9/12/31
Joint liability 2019/6/21-202
Shandong S.F. Express Co., Ltd. 2019/3/16 1,000 2019/6/21 255 No No
guarantee 0/6/30
Joint liability 2019/6/24-202
Xi'an Shunlu Logistics Co., Ltd. 2019/3/16 400 2019/6/24 80 No No
guarantee 0/5/31
Joint liability 2019/6/26-202
S.F. Express Co., Ltd. 2019/3/16 25,000 2019/6/26 300 No No
guarantee 0/5/31
Joint liability 2019/6/25-201
Shanxi S.F. Express Co., Ltd. 2019/3/16 200 2019/6/25 35 No No
guarantee 9/12/31
Joint liability 2019/6/25-201
Shanxi S.F. Express Co., Ltd. 2019/3/16 200 2019/6/25 6 No No
guarantee 9/12/31
Joint liability 2019/6/27-202
Wuxi S.F. Express Co., Ltd. 2019/3/16 500 2019/6/27 73.08 No No
guarantee 0/6/27
Joint liability 2019/5/10-202
DHL Logistics (Beijing) Co., Ltd. 2019/3/16 3,100 2019/5/10 237.86 No No
guarantee 0/7/15
Joint liability 2019/5/13-202
DHL Logistics (Beijing) Co., Ltd. 2019/3/16 3,100 2019/5/13 58.86 No No
guarantee 0/7/15
Joint liability 2019/4/30-201
DHL Logistics (Beijing) Co., Ltd. 2019/3/16 3,100 2019/4/30 30 No No
guarantee 9/7/31
Joint liability 2019/6/13-202
DHL Logistics (Beijing) Co., Ltd. 2019/3/16 3,100 2019/6/13 24.85 No No
guarantee 0/7/31
EXEL LOGISTICS CHINA Joint liability 2019/6/13-202
2019/3/16 1,100 2019/6/13 63.61 No No
CO.,LTD. guarantee 0/1/31
Joint liability 2019/4/17-202
DHL Logistics (Beijing) Co., Ltd. 2019/3/16 3,100 2019/4/17 50 No No
guarantee 0/3/21
Shunyuan Financial Lease (Tianjin) Joint liability 2019/5/10-202
2019/3/16 70,000 2019/4/22 20,000 No No
Co., Ltd. guarantee 4/01/24
Total actual amount of
Total guarantee quota approved for
guarantees for subsidiaries
subsidiaries during the reporting 2,500,000.00 during the reporting period 514,935.67
period（C1）
（C2）
Total actual guarantee
Total guarantee quota approved for
balance for subsidiaries at the
the subsidiaries at the end of the 2,709,447.09 617,950.90
end of the reporting period
reporting period（C3）
（C4）
Total guarantee amount provided by the Company
Total actual amount of
Total guarantee quota approved
3,650,000.00 guarantee during the 873,098.97
during the reporting period（B1+C1）
reporting period（B2+C2）
Total guarantee quota approved at Total actual guarantee
the end of the reporting period 3,845,138.80 balance at the end of the 961,805.90
（B3+C3） reporting period（B4+C4）
Total guarantee amount (B4+C4) to net assets of the Company 25.04%
Of which:
Amount of guarantee for shareholders, actual controller, and their related
-
parties (D)
Amount of debt guarantee provided for guaranteed party whose asset-liability
35,673.67
ratio is not less than 70% directly or indirectly (E)
Amount of total guarantee over 50% of net assets (F) -
Total amount of the above three guarantees (D+E+F) 35,673.67
Explanation of warranty liability or possible joint liquidation (if any) N/A
97
S.F. Holding Co., Ltd. 2019 Semi-Annual Report
Explanation of provision of guarantees for external parties in violation of the N/A
prescribed procedure (if any)
Before Taisen Holding was incorporated into the listed Company in December 2016, Taisen Holding and its subsidiaries
performed external guarantee procedures in accordance with their own Articles of Corporation and other relevant regulations. After
Taisen Holding was incorporated into the listed Company in December 2016, as a subsidiary of the listed Company, Taisen Holding
and its subsidiaries strictly performed the review and disclosure procedures of external guarantees in accordance with relevant laws
and regulations such as the Stock Listing Rules of Shenzhen Stock Exchange and other related laws and regulations.
(2) Illegal provision of guarantees for external parties
□Applicable √ Not applicable
No such cases in the reporting period.
3. Other significant contracts
□Applicable √Not applicable
No such cases in the reporting period.
XV. Social Responsibilities
1. Environmental protection
Did the listed Company and its subsidiaries belong to the major pollutant discharge units announced by the
Ministry of Ecology and Environment?
No
The Company and its subsidiaries are not part of the major pollutant discharge units announced by the Ministry of
Ecology and Environment.
2. Targeted Poverty Alleviation Program
□Applicable √ Not applicable
During the reporting period, the Company did not carry out any Targeted Poverty Alleviation Program.
98
S.F. Holding Co., Ltd. 2019 Semi-Annual Report
XVI. Other Major Issues
√ Applicable □Not applicable
1. Issuance of debt financing products in domestic and international markets by wholly-owned subsidiaries
In order to satisfy the development requirements of domestic and international business, reduce financing costs
and optimize the debt structure according to the development strategies of the Company, at the 18th meeting of the
4th session of the Board and the 2019 first extraordinary general meeting convened by the Company on January 3,
2019 and January 23, 2019 respectively, the “Resolution regarding the Issuance of Debt Financing Products in
Domestic and International Markets by Wholly-owned Subsidiaries” was considered and approved, and the
Company was authorised to issue debt financing products in domestic and international markets through Taisen
Holding and SF Holding Investment Limited, the wholly-owned subsidiaries, for an equivalent amount of no more
than RMB16 billion (inclusive), including RMB10 billion which are the expected size of issuance in domestic
market and RMB6 billion which are the expected size of issuance in international market. On March 20, 2019,
Taisen Holding received from CSRC the “Approval for Public Issuance of Corporate Bonds to Eligible Investors
by Shenzhen S.F. Taisen Holding (Group) Co., Ltd.” (Zheng Jian Xu Ke (证监许可) [2019] No.388) pursuant to
which Taisen Holding was approved to issue corporate bonds for a total nominal amount of no more than RMB2
billion to eligible investors through public issuance. On March 26, 2019, Taisen Holding received from the
National Association of Financial Market Institutional Investors the “Notice of Registration Acceptance” (Zhong
Shi Xie Zhu (中市协注) [2019] No. SCP71) pursuant to which the National Association of Financial Market
Institutional Investors has accepted the registration of the super short-term commercial paper of Taisen Holding
with a registered amount of RMB3 billion. On April 10, 2019, Taisen Holding completed the offering of the first
tranche of super short-term commercial paper for 2019 with an issued amount of RMB500 million. On July 12,
2019, Taisen Holding completed the offering of the second tranche of super short-term commercial paper for 2019
with an issued amount of RMB500 million. On August 23, 2019, Taisen Holding completed the offering of the
third tranche of super short-term commercial paper for 2019 with an issued amount of RMB500 million. For
details, please refer to the announcements (2019-006, 2019-051, 2019-053, 2019-060 、2019-083 and 2019-094)
of the Company disclosed on http://www.cninfo.com.cn.
2. Issuance of convertible bonds by the Company
In order to enhance the Company’s competitiveness, increase its profitability, further strengthen its core
competitiveness and increase its capabilities of sustainable development according to the development strategies
of the Company, at the 21st meeting of the 4th session of the Board and the 2019 second extraordinary general
meeting convened by the Company on April 23, 2019 and May 9, 2019 respectively, resolutions regarding the
public issuance of convertible corporate bonds were considered and approved. The total amount of proceeds to be
raised from such public issuance of convertible corporate bonds shall not exceed RMB6.5 billion. The Company
convened the 23rd meeting of the 4th session of the Board on August 6, 2019 to consider and approve the
“Resolution regarding Adjustment to the Proposal of Public Issuance of Convertible Corporate Bonds by the
Company” such that the total amount of proceeds from the public issuance of convertible corporate bonds will
decrease from an amount not exceeding RMB6.5 billion (inclusive) to an amount not exceeding RMB5.8 billion
(inclusive), and the use of proceeds will be adjusted accordingly. On August 23, 2019, the application for public
issuance of convertible corporate bonds by the Company was considered and approved by the China Securities
Issuance Examination Committee (“CSIEC”) of CSRC. As of the disclosure date of this report, the Company has
not yet received the written approval document from CSRC.For details, please refer to the announcements
(2019-072, 2019-081、2019-089 and 2019-093) of the Company disclosed on http://www.cninfo.com.cn.
3. Commencement of asset securitization Business
In order to revitalize existing assets and enhance the capital utilization efficiency, the Company has established a
special asset-backed plan by using the logistics industrial park held by the subsidiary Shenzhen Fengtai
E-Commerce Industrial Park Asset Management Co., Ltd. as the principal and raised funds by means of the
issuance of asset-backed securities under the plan. On November 21, 2018, the Company obtained the “No
Objection Letter regarding Huatai Asset Management’s ‘Huatai Jiayue - Shunfeng Industrial Park Phase I
Asset-Backed Special Plan’ being in line with the Conditions for Listing on the Shenzhen Stock Exchange” (Shen
Zheng Han (深证函) [2018] No. 666) issued by the Shenzhen Stock Exchange, and the total size of issuance by
99
S.F. Holding Co., Ltd. 2019 Semi-Annual Report
way of shelf-offering approved in the No Objection Letter was RMB5 billion for a valid period of two years. In
2018, the Company issued the first tranche of asset-backed securities with a total size of RMB1.846 billion. On
June 13, 2019, the Company convened the 22nd meeting of the 4th session of the Board and the 19th meeting of the
4th session of the Board of Supervisors respectively at which the “Resolution regarding the Commencement of
Asset Securitization and Related Party Transactions” was considered and approved. The Company proposed to
continue the development of the asset securitization business and raise funds by means of issuance of asset-backed
securities under the special plan. The tranche issued in the reporting period was the second tranche within the
amount authorized for shelf-offering under the special plan, and the total amount of asset-backed securities
proposed to be issued in this tranche shall not exceed RMB1.5 billion. For details, please refer to the
announcement (2019-078) of the Company disclosed on http://www.cninfo.com.cn. As of the disclosure date of
this report, transaction documents relating to this tranche under the special plan have not been signed.
4. Signing of the Strategic Cooperation Agreement between a wholly-owned subsidiary and China
Pacific Insurance (Group) Co., Ltd.
As both the Company and China Pacific Insurance (Group) Co., Ltd. (“China Pacific Insurance”) are leaders in
their respective industries, to promote the continuous rapid development of both parties in their respective
industries and fully utilize their resources and industry advantages, Taisen Holding and China Pacific Insurance
entered into the Strategic Cooperation Agreement on June 17, 2019 after due consultations. On the basis of
deepening cooperation in conventional areas, both parties are willing to focus on complementation to each other’s
strengths and resources and sharing core capabilities to carry out multi-level and multi-area strategic cooperation
to realize mutual benefits and joint developments. The strategic cooperation will have positive effects on the
future development of principal business of the Company which will be conducive to the long-term development
of the Company. For details, please refer to the announcement (2019-079) disclosed on http://www.cninfo.com.cn.
A disclosure index for the above-mentioned significant events and other significant events is as below:
Announcement Disclosure Date Disclosure Website
Announcement on Issuance of Debt Financing Products in
Domestic and International Markets by Wholly-owned January 4, 2019 http://www.cninfo.com.cn
Subsidiaries (2019-006)
Announcement on the Progress of Acquisition of 100% Equity
Interest in DHL Supply Chain (Hong Kong) Limited and DHL January 5, 2019 http://www.cninfo.com.cn
Logistics (Beijing) Co., Ltd. (2019-013)
Announcement on the Progress of the Hubei International
January 17, 2019 http://www.cninfo.com.cn
Logistics Hub Project (2019-016)
Announcement on the Progress of Acquisition of 100% Equity
Interest in DHL Supply Chain (Hong Kong) Limited and DHL February 19, 2019 http://www.cninfo.com.cn
Logistics (Beijing) Co., Ltd. (2019-023)
Announcement on the Progress of the Hubei International
March 2, 2019 http://www.cninfo.com.cn
Logistics Hub Project (2019-031)
Announcement on Obtaining Approval from CSRC for Public
Issuance of Corporate Bonds to Eligible Investors by Shenzhen
March 22, 2019 http://www.cninfo.com.cn
S.F. Taisen Holding (Group) Co., Ltd., a Wholly-owned
Subsidiary of the Company (2019-051)
Announcement on Receiving Notice of Registration Acceptance
from the National Association of Financial Market Institutional
March 27, 2019 http://www.cninfo.com.cn
Investors by Shenzhen S.F. Taisen Holding (Group) Co., Ltd., a
Wholly-owned Subsidiary of the Company (2019-053)
Announcement on Completion of Offering of Danqing Phase II
Investment Fund Participated and Invested by Wholly-owned April 11, 2019 http://www.cninfo.com.cn
Subsidiaries (2019-051)
100
S.F. Holding Co., Ltd. 2019 Semi-Annual Report
Announcement on the Result of Issuance of the 2019 First
Tranche of Super Short-Term Commercial Paper of Shenzhen
April 12, 2019 http://www.cninfo.com.cn
S.F. Taisen Holding (Group) Co., Ltd., a wholly-owned
subsidiary of the Company (2019-060)
Announcement on Measures of Compensation for Dilution of
Return for Current Period due to Public Issuance of Convertible
April 24, 2019 http://www.cninfo.com.cn
Corporate Bonds and Undertakings of the Relevant Entities
(2019-068)
Proposal of Public Issuance of Convertible Corporate Bonds April 24, 2019 http://www.cninfo.com.cn
Announcement on Acknowledgement of Receipt of Application
for Public Issuance of Convertible Corporate Bonds from CSRC May 22, 2019 http://www.cninfo.com.cn
(2019-072)
Announcement on the Commencement of Asset Securitization
June 14, 2019 http://www.cninfo.com.cn
and Related Party Transactions (2019-078)
Announcement on the Signing of Strategic Cooperation
Agreement between a Wholly-owned Subsidiary and China June 18, 2019 http://www.cninfo.com.cn
Pacific Insurance (Group) Co., Ltd. (2019-079)
Announcement on Receiving the “Feedback Notice from CSRC
June 22, 2019 http://www.cninfo.com.cn
on First Review of Administrative Permission” (2019-081)
Reply to Feedback Opinions Regarding the "Feedback Notice
from CSRC on First Review of Administrative Permission
July 9, 2019 http://www.cninfo.com.cn
(No.191156)” by the Company and Huatai United Securities Co.,
Ltd.”
Announcement on Result of Issuance of 2019 Second Tranche of
Super Short-Term Commercial Paper by Shenzhen S.F. Taisen
July 13, 2019 http://www.cninfo.com.cn
Holding (Group) Co., Ltd., a Wholly-owned Subsidiary of the
Company (2019-083)
Announcement on Adjustment to the Proposal of Public Issuance
August 7, 2019 http://www.cninfo.com.cn
of Convertible Corporate Bonds (2019-089)
Announcement on Measures of Compensation for Dilution of
Return for the Current Period due to Public Issuance of
August 7, 2019 http://www.cninfo.com.cn
Convertible Corporate Bonds and Undertakings of the Relevant
Entities (Amendment) (2019-090)
Feasibility Analysis Report on the Use of Proceeds from Public
August 7, 2019 http://www.cninfo.com.cn
Issuance of Convertible Corporate Bonds (Amendment)
Proposal of Public Issuance of Convertible Corporate Bonds
August 7, 2019 http://www.cninfo.com.cn
(Amendment)
Announcement on Consideration and Approval of the
Application for Public Issuance of Convertible Corporate Bonds August 26, 2019 http://www.cninfo.com.cn
by CSIEC of CSRC（2019-093）
Announcement on Result of Issuance of 2019 Third Tranche of
Super Short-Term Commercial Paper by Shenzhen S.F. Taisen
August 27, 2019 http://www.cninfo.com.cn
Holding (Group) Co., Ltd., a Wholly-owned Subsidiary of the
Company（2019-094）
XVII. Significant events of subsidiaries
□Applicable √ Not applicable
101
S.F. Holding Co., Ltd. 2019 Semi-Annual Report
Chapter 6 Share Changes & Shareholder Details
I. Changes in shares
1. Changes in shares
Unit: number of shares
Before Change Increase or Decrease (+ or -) After Change
Conversion of
Number of New shares Bonus equity reserve Number of
Proportion into share Others Subtotal Proportion
shares issued shares shares
capital
I. Restricted sales of shares 3,295,795,745 74.59% - - - -512,162,573 -512,162,573 2,783,633,172 63.06%
2.Shares held by
106,655,020 2.41% - - - -106,655,020 -106,655,020 - 0.00%
state-owned legal person
3.Other shares held by
3,188,979,606 72.17% - - - -405,390,697 -405,390,697 2,783,588,909 63.05%
domestic capital
Of which:
Other shares held by 3,094,575,619 70.03% - - - -392,648,480 -392,648,480 2,701,927,139 61.20%
domestic legal person
Other shares held by
94,403,987 2.14% - - - -12,742,217 -12,742,217 81,661,770 1.85%
domestic natural person
4.Shares held by overseas
161,119 0.00% - - - -116,856 -116,856 44,263 0.00%
capital
Of which:
Other shares held by - 0.00% - - - - - - 0.00%
overseas legal person
Other shares held by
161,119 0.00% - - - -116,856 -116,856 44,263 0.00%
overseas natural person
II. Unrestricted sales of
1,122,971,513 25.41% - - - 507,980,580 507,980,580 1,630,952,093 36.94%
shares
1.RMB-denominated
1,122,971,513 25.41% - - - 507,980,580 507,980,580 1,630,952,093 36.94%
ordinary shares
III. Total number of shares 4,418,767,258 100.00% - - - -4,181,993 -4,181,993 4,414,585,265 100.00%
Reasons of share changes
√ Applicable □Not applicable
At the 18th meeting of the 4th session of the Board and the 2019 first extraordinary general meeting convened
by the Company on January 3, 2019 and January 23, 2019 respectively, the “Resolution regarding the Repurchase
and Cancellation of Certain Restricted Shares” was considered and approved. Accordingly, the Company was
authorised to repurchase and cancel a total of 293,308 restricted shares held by 65 incentive participants who
ceased to be eligible for the incentive under the 2017 Restricted Stock Incentive Plan due to their resignation;
and the Company was authorised to repurchase and cancel a total of 147,278 restricted shares held by 34 incentive
participants who ceased to be eligible for the incentive under the 2018 Restricted Stock Incentive Plan due to their
resignation. The total number of restricted shares repurchased for cancellation was 440,586 shares. As of March
13, 2019, the Company has completed the repurchase and cancellation of the aforesaid restricted shares, thus the
total share capital of the Company was reduced from 4,418,767,258 shares to 4,418,326,672 shares.
At the 20th meeting of the 4th session of the Board and the 2018 annual general meeting convened by the
Company on March 14, 2019 and April 9, 2019 respectively, the “Resolution regarding the Repurchase and
Cancellation of Certain Restricted Shares” was considered and approved. Accordingly, the Company was
authorised to repurchase and cancel a total of 1,113,271 restricted shares held by 703 incentive participants who
ceased to be eligible for being released of the sales restriction due to failure of the Company to meet the
performance assessment requirement for the second post lock-up period; and the Company was authorised to
repurchase and cancel a total of 2,628,136 restricted shares held by 1,105 incentive participants who ceased to be
eligible for the incentive due to failure of the Company to meet the performance assessment requirement for the
first post lock-up period, and by 37 incentive participants who ceased to be eligible for the incentive under the
2018 Restricted Stock Incentive Plan due to their resignation. The total number of restricted shares repurchased
for cancellation was 3,741,407 shares. As of June 12, 2019, the Company has completed the repurchase and
cancellation of the aforesaid restricted shares, thus the total share capital of the Company was reduced from
4,418,326,672 shares to 4,414,585,265 shares..
102
S.F. Holding Co., Ltd. 2019 Semi-Annual Report
In summary, the total number of shares of the Company changed from 4,418,767,258 shares to 4,414,585,265
shares.
Approval of share changes
□ Applicable √ Not applicable
Transfer of share ownership
□ Applicable √ Not applicable
Implementation progress of share repurchase
√ Applicable □ Not applicable
On January 31, 2019, the Company convened the 19th meeting of the 4th session of the Board at which the
“Resolution regarding the Proposal for Share Repurchase by the Company through Aggregate Auction” was
considered and approved. Accordingly, the Company proposed to use internal funds to repurchase part of the
shares of the Company through aggregate auction for employee stock ownership plans (ESOP) or share incentives.
The total amount of funds for repurchase shall be no less than RMB200 million and no more than RMB400
million, while the repurchase price shall be no more than RMB45 per share and the repurchase period shall be six
months from the date of consideration and approval of the repurchase proposal by the Board.
As of April 8, 2019, the Company has repurchased a total of 11,010,729 shares through aggregate auction
with the highest transaction price of RMB37.34 per share and the lowest transaction price of RMB34.48 per share
while the total transaction price was RMB395 million (exclusive). The share repurchase has been completed and
the shares repurchased are deposited in the special account for repurchased securities of the Company and will
subsequently be used for employee stock ownership plans (ESOP) or share incentives. The Company will make
appropriate arrangement and timely disclosure in due course.
Implementation of share reduction through aggregate auction
□ Applicable √ Not applicable
Effects of share changes on the basic EPS, diluted EPS, net assets per share attributable to ordinary shareholders
of the Company, and other financial indicators for the last year and the last reporting period
√ Applicable □ Not applicable
During the reporting period, the share capital of the Company decreased by 4,181,993 shares, and the basic EPS,
diluted EPS and net assets per share attributable to ordinary shareholders of the Company increased.
Other contents that the Company considers necessary, or are required by the securities regulatory authorities, to
disclose
□ Applicable √ Not applicable
103
S.F. Holding Co., Ltd. 2019 Semi-Annual Report
2. Changes in restricted shares
√ Applicable □Not applicable
Unit: number of shares
Restricted Number of Number of
shares restricted Restricted
restricted Restricted sales Date of
at the shares shares at the
Name of shareholder shares restricted
beginning end of the reasons
removed in increased in sales removal
period
of the period the period the period
Commitment for issuing
Shenzhen Mingde Holding restricted shares for January 23,
2,701,927,139 - - 2,701,927,139
Development Co., Ltd. purchasing assets during 2020
major asset restructuring
Ningbo Shunda Fengrun Commitment for issuing
Investment Management restricted shares for March 25,
Partnership (Limited 156,901,383 156,901,383 - -
purchasing assets during 2019
Partnership) major asset restructuring
Commitment for issuing
Shenzhen Zhaoguang restricted shares for March 25,
106,655,020 106,655,020 - -
Investment Co., Ltd. purchasing assets during 2019
major asset restructuring
Suzhou Industrial Park Oriza Commitment for issuing
Shunfeng Equity Investment restricted shares for March 25,
106,655,020 106,655,020 - -
Company (Limited purchasing assets during 2019
Partnership) major asset restructuring
Jiaqiang Shunfeng (Shenzhen) Commitment for issuing
Equity Investment Partnership restricted shares for March 25,
106,655,020 106,655,020 - -
purchasing assets during 2019
(Limited Partnership)
major asset restructuring
7,563,907
lock-up
shares of
senior
restricted shares for senior
Liu Jilu 75,123,253 7,563,907 - 67,559,346 management
managers
were
unlocked at
the beginning
of 2019.
Commitment for issuing
Suzhou Guyu Qiuchuang
restricted shares for March 25,
Equity Investment Partnership 21,331,005 21,331,005 - -
purchasing assets during 2019
(Limited Partnership)
major asset restructuring
Liu Lingyun 4,456,942 - - 4,456,942 restricted shares for IPO --
Gong Weiping 2,040,640 - - 2,040,640 restricted shares for IPO --
Huang Xuechun 1,735,024 - - 1,735,024 restricted shares for IPO --
Others 12,315,299 6,401,218 - 5,914,081 -- --
Total 3,295,795,745 512,162,573 - 2,783,633,172 -- --
3. Issuance and Listing of Securities
□Applicable √ Not applicable
104
S.F. Holding Co., Ltd. 2019 Semi-Annual Report
II. Total number of shareholders and their holdings
Unit: number of shares
Total number of preferred
Total number of shareholders at
60,187 shareholders with voting rights -
the end of reporting period
restored (if any)
Shareholders holding more than 5% of shares or shares of the top 10 shareholders
Increase or Pledged or frozen
Number of
decrease of Number of shares
shares held at Number of
Name of Type of Shareholding shares non-restricte
the end of the restricted
shareholder shareholder percentage during d Status of
reporting shares held Amount
reporting shares held shares
period
period
Shenzhen Mingde Domestic
Holding non-state-
61.20% 2,701,927,139 - 2,701,927,139 - Pledged 990,000,000
Development Co., owned legal
Ltd. person
Ningbo Shunda
Domestic
Fengrun Investment
non-state-
Management 7.60% 335,536,715 -37,102,718 - 335,536,715 Pledged 326,049,874
owned legal
Partnership (Limited
person
Partnership)
Shenzhen
State-owned
Zhaoguang 6.04% 266,637,546 - - 266,637,546 - -
legal person
Investment Co., Ltd.
Suzhou Industrial
Park Oriza Domestic
Shunfeng Equity non-state-
5.63% 248,358,260 -1,215,700 - 248,358,260 - -
Investment owned legal
Company (Limited person
Partnership)
Jiaqiang Shunfeng
(Shenzhen) Equity Domestic
non-state-
Investment 4.31% 190,051,123 -52,758,666 - 190,051,123 - -
Partnership (Limited owned legal
Partnership) person
Domestic
Liu Jilu natural 2.04% 90,079,128 - 67,559,346 22,519,782 - -
person
Suzhou Guyu
Qiuchuang Equity Domestic
Investment non-state-
1.21% 53,327,509 - - 53,327,509 - -
Partnership (Limited owned legal
Partnership) person
Zhongyuan Asset
State-owned
Management Co., 1.17% 51,472,193 -16,129,000 - 51,472,193 Pledged 45,967,462
legal person
Ltd.
Hong Kong
Overseas
Securities Clearing 0.66% 29,339,082 13,735,283 - 29,339,082 - -
legal person
Company Ltd.
Chang'an
International Trust
Co., Ltd. –Chang'an
Trust –Mingsheng Other 0.52% 22,790,565 - - 22,790,565 - -
Targeted Additional
Shares Issuance No.
1 -Capital Trust
Additional Shares Strategic
investor or general legal person
becomes the top 10 shareholder N/A
due to the placement of new
shares
105
S.F. Holding Co., Ltd. 2019 Semi-Annual Report
Explain any associated
relationship and/or persons acting The Company is not aware of whether there is an associated relationship between the above
in concert between the mentioned shareholders and whether they are acting in concert.
above-mentioned shareholders
Top 10 shareholders holding unrestricted shares
Number of unrestricted shares held at Type of shares
Name of shareholder
the end of the reporting period Type of shares Quantity
Ningbo Shunda Fengrun Investment Management RMB-denominated
335,536,715 335,536,715
Partnership (Limited Partnership) ordinary shares
RMB-denominated
Shenzhen Zhaoguang Investment Co., Ltd. 266,637,546 266,637,546
ordinary shares
Suzhou Industrial Park Oriza Shunfeng Equity RMB-denominated
248,358,260 248,358,260
Investment Company (Limited Partnership) ordinary shares
Jiaqiang Shunfeng (Shenzhen) Equity Investment RMB-denominated
190,051,123 190,051,123
Partnership (Limited Partnership) ordinary shares
Suzhou Guyu Qiuchuang Equity Investment RMB-denominated
53,327,509 53,327,509
Partnership (Limited Partnership) ordinary shares
RMB-denominated
Zhongyuan Asset Management Co., Ltd. 51,472,193 51,472,193
ordinary shares
RMB-denominated
Hong Kong Securities Clearing Company Ltd. 29,339,082 29,339,082
ordinary shares
Chang'an International Trust Co., Ltd. - Chang'an RMB-denominated
Trust - Mingsheng Targeted Additional Shares 22,790,565 ordinary shares 22,790,565
Issuance No. 1 - Capital Trust
RMB-denominated
Liu Jilu 22,519,782 22,519,782
ordinary shares
RMB-denominated
National Social Security Fund Combination 503 22,400,031 22,400,031
ordinary shares
The Company is not aware of whether there is an associated relationship
Explain any associated relationship and/or persons
between the above-mentioned shareholders and whether they are acting in
acting in concert between the top ten shareholders
concert.
Explain the top 10 common shareholders’
N/A
participation in margin financing (if any)
Did any of the top 10 common shareholder or the top 10 non-restricted common shareholders of the Company
conduct any promissory repurchase during the reporting period?
□Yes √ No
No such cases in the reporting period.
III. Change of controlling shareholder or actual controller
Change of controlling shareholder in the reporting period
□Applicable √ Not applicable
Controlling shareholder did not change during the reporting period.
Change of actual controller during the reporting period
□Applicable √ Not applicable
The actual controller did not change during the reporting period.
106
S.F. Holding Co., Ltd. 2019 Semi-Annual Report
Chapter 7 Preferred Shares
□Applicable √ Not applicable
No such cases in the reporting period.
107
S.F. Holding Co., Ltd. 2019 Semi-Annual Report
Chapter 8 Directors, Supervisors and Senior Managers
I. Changes in shares held by directors, supervisors and senior executives
□Applicable √ Not applicable
Shares held by directors, supervisors and senior executives did not change during the reporting period. For details,
please refer to the 2018 Annual Report.
II. Changes of Directors, Supervisors, and Senior Executives
√Applicable □Not applicable
Name Title Tenure status Date Reason
Resigned as a director due to personal
Zhang Rui Director Resigned March 6, 2019
job deployment.
Director, Resigned as a senior management
Lo Sai Lai Senior Resigned March 14, 2019 member due to personal reasons but
Executives remained as a director.
Senior Resigned as a senior management
Leong Chong Resigned March 14, 2019
Executives member due to personal reasons.
Elected as a director of the Company to
Deng Weidong Director Elected April 9, 2019 fill a vacancy at the 2018 Annual
General Meeting.
108
S.F. Holding Co., Ltd. 2019 Semi-Annual Report
Chapter 9 Corporate Bonds
Were there bonds publicly issued and listed on an exchange, and not at maturity, or at maturity but are not fully
paid on the approval report date of the semi-annual report?
No
109
Chapter 10 Financial Statements
[English Translation for Reference Only]
Review Report
PwC ZT Yue Zi (2019) No. 0028
To the shareholders of S.F. Holding Co., Ltd.,
We have reviewed the accompanying interim financial statements of S.F. Holding Co., Ltd.
(hereinafter “S.F. Holding”), which comprise the consolidated and company balance sheets as
at 30 June 2019, the consolidated and company income statements, the consolidated and
company cash flow statements and the consolidated and company statements of changes in
equity for the 6-month period then ended, and the notes to the interim financial statements.
Management of S.F. Holding is responsible for the preparation of these interim financial
statements in accordance with the requirements of Accounting Standards for Business
Enterprises. Our responsibility is to issue a review report on these interim financial statements
based on our review.
We conducted our review in accordance with China Standards on Review Engagement No.
2101, “Review of Financial Statements”. These standards require that we plan and perform the
review to obtain limited assurance as to whether the interim financial statements are free of
material misstatement. A review is limited primarily to inquiries of company personnel and
analytical procedures applied to financial data and thus provides less assurance than an audit.
We have not performed an audit and, accordingly, we do not express an audit opinion.
Based on our review, nothing has come to our attention that causes us to believe that the
interim financial statements are not prepared in accordance with Accounting Standards for
Business Enterprises or do not present fairly, in all material respects, the consolidated and
company’s financial position of S.F. Holding as at 30 June 2019, and their financial
performance and cash flows for the period then ended.
PricewaterhouseCoopers Zhong Tian LLP Signing CPA ————————
Chen Anqiang
Shanghai, the People’s Republic of China Signing CPA ————————
26 August 2019 Liu Jingping
110
S.F. HOLDING CO., LTD.
CONSOLIDATED BALANCE SHEET
AS AT 30 JUNE 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
ASSETS Note 30 June 2019 31 December 2018
Consolidated
Consolidated (Restated)
Current assets
Cash at bank and on hand 4(1) 12,487,217,955.15 16,131,119,850.56
Financial assets at fair value
through profit or loss 4(2) - 14,441,978.09
Financial assets held for trading 4(3) 2,525,764,638.79 -
Notes receivable 32,582,844.39 20,958,746.36
Accounts receivable 4(4) 8,438,161,191.55 7,352,877,748.87
Advances to suppliers 4(6) 2,445,768,390.66 2,516,851,201.35
Factoring receivables 4(7) 86,935,238.30 447,173,258.65
Loans and advances 4(8) 87,235,941.03 95,070,625.30
Other receivables 4(5) 1,715,646,624.92 1,397,913,483.52
Inventories 4(9) 735,112,901.55 818,050,025.02
Current portion of non-current
assets 4(12) 120,929,410.49 123,197,466.26
Other current assets 4(10) 4,940,497,682.72 3,003,959,574.30
Total current assets 33,615,852,819.55 31,921,613,958.28
Non-current assets
Available-for-sale financial assets 4(11) - 3,423,527,060.27
Long-term receivables 4(12) 474,769,169.71 571,493,790.74
Long-term equity investments 4(13) 2,250,846,960.26 2,203,431,122.03
Investments in other equity
instruments 4(14) 4,042,698,444.01 -
Other non-current financial assets 4(15) 405,065,380.55 -
Investment properties 4(16) 2,478,519,190.07 2,453,931,501.54
Fixed assets 4(17) 15,090,191,297.79 13,966,702,267.45
Construction in progress 4(18) 6,216,142,800.45 6,507,907,313.07
Intangible assets 4(19) 9,269,904,840.92 6,662,097,473.89
Capitalised development
expenditures 4(20) 613,265,656.66 585,212,743.77
Goodwill 4(21) 3,528,248,763.10 590,365,319.20
Long-term prepaid expenses 4(22) 1,782,624,607.32 1,645,861,187.53
Deferred tax assets 4(38) 721,940,063.72 584,462,905.44
Other non-current assets 4(23) 547,209,537.19 497,962,173.43
Total non-current assets 47,421,426,711.75 39,692,954,858.36
TOTAL ASSETS 81,037,279,531.30 71,614,568,816.64
111
S.F. HOLDING CO., LTD.
CONSOLIDATED BALANCE SHEET (CONT’D)
AS AT 30 JUNE 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
LIABILITIES AND EQUITY Note 30 June 2019 31 December 2018
Consolidated
Consolidated (Restated)
Current liabilities
Short-term borrowings 4(25) 10,329,017,919.04 8,585,129,399.63
Deposits from customers - 10,269,542.51
Accounts payable 4(26) 8,499,813,706.49 7,887,342,829.83
Advances from customers 4(27) 664,518,993.55 467,611,291.44
Employee benefits payable 4(28) 2,527,371,082.02 2,967,467,562.41
Taxes payable 4(29) 780,059,087.93 639,295,980.99
Other payables 4(30) 3,964,347,310.74 4,539,637,152.31
Current portion of non-current
liabilities 4(31) 577,267,751.27 273,222,821.65
Other current liabilities 4(32) 1,020,688,321.41 999,378,905.37
Total current liabilities 28,363,084,172.45 26,369,355,486.14
Non-current liabilities
Long-term borrowings 4(33) 5,922,181,122.48 998,287,835.19
Debentures payable 4(34) 6,408,078,107.07 6,405,035,926.40
Long-term payables 4(35) 106,001,190.04 83,655,025.08
Long-term employee benefits
payable 4(36) 158,643,952.32 142,715,259.71
Deferred income 4(37) 183,382,546.98 152,944,183.19
Deferred tax liabilities 4(38) 1,172,170,806.43 537,090,946.18
Provisions 32,649,557.50 11,540,645.33
Total non-current liabilities 13,983,107,282.82 8,331,269,821.08
Total liabilities 42,346,191,455.27 34,700,625,307.22
Equity
Share capital 4(39) 4,414,585,265.00 4,418,767,258.00
Capital reserve 4(40) 15,985,575,538.97 16,069,619,165.67
Less: Treasury stock 4(41) (454,260,935.24) (200,928,467.28)
Other comprehensive income 4(62) 590,851,724.36 527,184,297.85
General risk reserve 185,084,995.61 185,084,995.61
Surplus reserve 4(43) 601,132,890.32 601,132,890.32
Retained earnings 4(44) 17,082,194,039.69 14,960,151,735.98
Total equity attributable to
shareholders of the Company 38,405,163,518.71 36,561,011,876.15
Minority interests 4(61) 285,924,557.32 352,931,633.27
Total equity 38,691,088,076.03 36,913,943,509.42
TOTAL LIABILITIES AND EQUITY 81,037,279,531.30 71,614,568,816.64
The accompanying notes form an integral part of these financial statements.
Legal representative: Principal in charge of accounting: Head of accounting department:
112
S.F. HOLDING CO., LTD.
COMPANY BALANCE SHEET
AS AT 30 JUNE 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
ASSETS Note 30 June 2019 31 December 2018
Company Company
Current assets
Cash at bank and on hand 16(1) 357,988,702.35 1,136,288,489.11
Advances to suppliers 426,069.14 993,616.34
Other receivables 16(2) 1,119,119,042.98 9,542,466,126.10
Other current assets 161,001.34 255,389.87
Total current assets 1,477,694,815.81 10,680,003,621.42
Non-current assets
Long-term receivables 16(3) 7,776,179,035.82 -
Long-term equity investments 16(4) 43,348,872,192.32 43,337,179,817.15
Intangible assets 1,453,335.00 1,608,738.18
Capitalised development
expenditures 246,842.25 94,339.62
Long-term prepaid expenses 89,737.68 110,446.38
Total non-current assets 51,126,841,143.07 43,338,993,341.33
TOTAL ASSETS 52,604,535,958.88 54,018,996,962.75
113
S.F. HOLDING CO., LTD.
COMPANY BALANCE SHEET (CONT’D)
AS AT 30 JUNE 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
LIABILITIES AND EQUITY Note 30 June 2019 31 December 2018
Company Company (Restated)
Current liabilities
Employee benefits payable 697,713.47 603,945.97
Taxes payable 2,998,673.05 8,856,532.95
Other payables 61,796,194.55 204,690,875.26
Total current liabilities 65,492,581.07 214,151,354.18
Total liabilities 65,492,581.07 214,151,354.18
Equity
Share capital 4,414,585,265.00 4,418,767,258.00
Capital reserve 46,667,948,714.32 46,760,852,084.19
Less: Treasury stock (454,260,935.24) (200,928,467.28)
Surplus reserve 448,087,890.01 448,087,890.01
Retained earnings 1,462,682,443.72 2,378,066,843.65
Total equity 52,539,043,377.81 53,804,845,608.57
TOTAL LIABILITIES AND EQUITY 52,604,535,958.88 54,018,996,962.75
The accompanying notes form an integral part of these financial statements.
Legal representative: Principal in charge of accounting: Head of accounting department:
114
S.F. HOLDING CO., LTD.
CONSOLIDATED AND COMPANY INCOME STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
For the six months ended 30 June
Item Note 2019 2018 2019 2018
Consolidated
Consolidated (Restated) Company Company
1. Revenue 4(45) 50,074,704,033.85 42,550,906,755.42 - -
Less: Cost of revenue 4(45) (40,152,044,224.73) (34,483,562,144.39) - -
Taxes and surcharges 4(46) (121,004,877.04) (110,495,850.13) (30,951.27) -
Selling and distribution
expenses 4(47) (884,549,456.76) (973,618,226.32) - -
General and administrative
expenses 4(48) (4,843,661,455.94) (3,844,763,325.32) (4,484,483.37) (1,796,327.32)
Research and
development expenses 4(49) (509,094,373.89) (403,524,405.16) - -
Financial (costs)/income 4(50) (331,609,607.60) (54,420,723.81) 10,098,014.14 12,552,613.87
Including: Interest expenses (432,953,909.77) (290,875,624.94) (1,373,547.25) -
Interest income 140,657,962.96 258,040,873.83 11,482,407.08 12,914,381.13
Add: Other income 4(52) 164,346,392.59 74,730,377.55 - -
Investment income 4(53), 16(5) 386,073,900.85 248,525,092.65 1,929,291.51 99,865,691.77
Including: Investment
losses/
income from
associates
and joint
ventures (50,985,409.53) 8,841,240.97 - -
Gains/(losses) arising from
changes in fair value 4(54) 330,207,611.55 (4,812,095.66) - -
Credit impairment losses 4(55) (148,865,353.45) - - -
Asset impairment losses 4(56) (54,112,179.14) (26,394,809.33) - -
Losses on disposal of
assets 4(57) (12,876,151.73) (6,982,780.03) - -
2. Operating profit 3,897,514,258.56 2,965,587,865.47 7,511,871.01 110,621,978.32
Add: Non-operating income 4(58)(a) 70,153,540.77 59,319,828.95 4,716,981.13 -
Less: Non-operating expenses 4(58)(b) (41,761,260.71) (50,577,721.43) - -
3. Total profit 3,925,906,538.62 2,974,329,972.99 12,228,852.14 110,621,978.32
Less: Income tax expenses 4(59) (882,642,296.52) (790,949,730.08) (2,878,075.90) (27,745,494.59)
4. Net profit 3,043,264,242.10 2,183,380,242.91 9,350,776.24 82,876,483.73
Including: Net loss of the
acquiree in a
business
combination
involving entities
under common
control before the
combination date - (37,645,258.17) Not applicable Not applicable
Classified by continuity of
operations:
Net profit from continuing
operations 3,043,264,242.10 2,183,380,242.91 9,350,776.24 82,876,483.73
Net profit from discontinued
operations - - - -
Classified by ownership of the
equity:
Attributable to shareholders of
the Company 3,101,111,638.63 2,209,579,126.20 Not applicable Not applicable
Minority interests (57,847,396.53) (26,198,883.29) Not applicable Not applicable
115
S.F. HOLDING CO., LTD.
CONSOLIDATED AND COMPANY INCOME STATEMENTS (CONT’D)
FOR THE SIX MONTHS ENDED 30 JUNE 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
For the six months ended 30 June
Item Note 2019 2018 2019 2018
Consolidated
Consolidated (Restated) Company Company
5. Other comprehensive income, net of
tax (8,045,780.57) (78,884,021.39) - -
Attributable to shareholders of the
Company, net of tax (8,131,829.98) (77,279,810.72) - -
Other comprehensive income items
which will not be reclassified
subsequently to profit or loss (21,354,283.70) - - -
Losses on changes in fair value of
other equity instruments (21,354,283.70) - - -
Other comprehensive income items
which will be reclassified subsequently
to profit or loss 4(62) 13,222,453.72 (77,279,810.72) - -
Share of the other comprehensive
income of the investee accounted
for using equity method which will
be reclassified subsequently to
profit and loss 4(62) (1,956,923.83) 147,032.76 - -
Losses arising from changes in fair
value of available-for-sale financial
assets 4(62) - (106,747,986.27) - -
Exchange differences on translation of
foreign currency financial
statements 4(62) 15,179,377.55 29,321,142.79 - -
Attributable to minority interests, net of
tax 4(62) 86,049.41 (1,604,210.67) - -
6. Total comprehensive income 3,035,218,461.53 2,104,496,221.52 9,350,776.24 82,876,483.73
Attributable to shareholders of the
Company 3,092,979,808.65 2,132,299,315.48 Not applicable Not applicable
Attributable to minority interests (57,761,347.12) (27,803,093.96) Not applicable Not applicable
7. Earnings per share
Basic earnings per share (RMB Yuan) 4(60) 0.70 0.50 Not applicable Not applicable
Diluted earnings per share (RMB Yuan) 4(60) 0.70 0.50 Not applicable Not applicable
The accompanying notes form an integral part of these financial statements.
Legal representative: Principal in charge of accounting: Head of accounting department:
116
S.F. HOLDING CO., LTD.
CONSOLIDATED AND COMPANY CASH FLOW STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
For the six months ended 30 June
Item Note 2019 2018 2019 2018
Consolidated
Consolidated (Restated) Company Company
1. Cash flows from operating activities
Cash received from sales of goods or rendering of
services 53,506,206,887.19 45,461,983,062.52 - -
Net decrease in loans to customers 316,421,622.83 31,429,602.95 - -
Net decrease in balances with central bank 281,029,856.02 141,588,022.43 - -
Refund of taxes and levies 23,210,402.25 9,679,303.24 - -
Cash received relating to other operating activities 4(63)(a) 25,624,198,431.13 26,284,180,448.08 18,173,510.83 14,266,553.36
Sub-total of operating cash inflows 79,751,067,199.42 71,928,860,439.22 18,173,510.83 14,266,553.36
Cash paid for purchases of goods and services (32,221,148,364.10) (26,969,529,010.05) - -
Net increase in balances with central bank (10,220,118.69) - - -
Cash paid to and on behalf of employees (11,037,158,454.34) (10,281,379,847.75) (760,000.00) (1,480,000.00)
Payments of taxes and levies (1,562,682,866.61) (1,760,048,885.14) (8,754,992.46) (26,068,955.22)
Cash paid relating to other operating activities 4(63)(b) (30,102,970,846.00) (30,548,293,905.48) (4,927,726.60) (1,663,972.03)
Sub-total of operating cash outflows (74,934,180,649.74) (69,559,251,648.42) (14,442,719.06) (29,212,927.25)
Net cash flows from/(used in) operating activities 4(64)(a) 4,816,886,549.68 2,369,608,790.80 3,730,791.77 (14,946,373.89)
2. Cash flows used in investing activities
Cash received from disposal of investments 144,554,498.39 1,662,632,803.71 - -
Cash received from returns on investments 93,138,373.02 156,286,676.14 1,002,167,424.66 1,029,898,124.94
Net cash received from acquisition of subsidiaries - 4,663,360.76 - -
Cash received from disposal of fixed assets and
other long-term assets 15,953,688.71 10,371,749.53 - -
Net cash received from disposal of subsidiaries and
other business units 201,048,485.80 - - -
Cash received relating to other investing activities 4(63)(c) 19,610,047,058.44 19,045,176,118.39 1,005,498,875.49 6,600,000,000.00
Sub-total of investing cash inflows 20,064,742,104.36 20,879,130,708.53 2,007,666,300.15 7,629,898,124.94
Cash paid to acquire fixed assets and other long-
term assets (3,294,575,636.60) (4,454,376,990.19) (2,053,459.01) -
Cash paid to acquire investments (781,352,136.83) (1,121,409,294.88) - -
Net cash paid to acquire subsidiaries 4(64)(c) (5,167,526,650.16) (20,858,612.00) - -
Cash paid relating to other investing activities 4(63)(d) (23,975,039,249.75) (20,282,100,000.00) (1,357,929,526.75) (7,000,452,272.25)
Sub-total of investing cash outflows (33,218,493,673.34) (25,878,744,897.07) (1,359,982,985.76) (7,000,452,272.25)
Net cash flows (used in)/from investing activities (13,153,751,568.98) (4,999,614,188.54) 647,683,314.39 629,445,852.69
117
S.F. HOLDING CO., LTD.
CONSOLIDATED AND COMPANY CASH FLOW STATEMENTS (CONT’D)
FOR THE SIX MONTHS ENDED 30 JUNE 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
For the six months ended 30 June
Item Note 2019 2018 2019 2018
Consolidated
Consolidated (Restated) Company Company
3. Cash flows from financing activities
Cash received from capital contributions 30,299,062.00 131,524,203.19 - 127,294,205.35
Including: Cash received from capital
contributions by minority
interests of subsidiaries 30,299,062.00 4,229,997.84 - -
Cash received from borrowings 14,472,889,511.02 5,645,533,875.71 - -
Cash received relating to other financing
activities 4(63)(e) - 1,090,821,983.52 - -
Sub-total of financing cash inflows 14,503,188,573.02 6,867,880,062.42 - 127,294,205.35
Cash repayments of borrowings (7,734,415,458.62) (4,594,115,714.47) - -
Cash payments for interest expenses and
distribution of dividends or profits (1,288,529,595.04) (1,272,643,709.50) (926,755,859.89) (970,985,880.70)
Cash payments relating to other financing
activities 4(63)(f) (511,724,131.08) (2,217,200,621.62) (502,850,246.57) (376,192.07)
Sub-total of financing cash outflows (9,534,669,184.74) (8,083,960,045.59) (1,429,606,106.46) (971,362,072.77)
Net cash flows from/(used in) financing
activities 4,968,519,388.28 (1,216,079,983.17) (1,429,606,106.46) (844,067,867.42)
4. Effect of foreign exchange rate changes
on cash and cash equivalents (2,915,022.58) 13,365,658.73 (126.46) (206.91)
5. Net decrease in cash and cash equivalents 4(64)(a) (3,371,260,653.60) (3,832,719,722.18) (778,192,126.76) (229,568,595.53)
Add: Cash and cash equivalents at the
beginning of the period 15,299,270,711.01 16,149,528,832.49 1,136,148,582.11 1,046,986,313.39
6. Cash and cash equivalents at the end of
the period 4(64)(a) 11,928,010,057.41 12,316,809,110.31 357,956,455.35 817,417,717.86
The accompanying notes form an integral part of these financial statements.
Legal representative: Principal in charge of accounting: Head of accounting department:
118
S.F. HOLDING CO., LTD.
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE SIX MONTHS ENDED 30 JUNE 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
Equity attributable to shareholders of the parent company
Other
Less: Treasury comprehensive General risk Special
Note Share capital Capital reserve stock income reserve reserve Surplus reserve Retained earnings Minority interests Total equity
Balance at 31 December 2017 4,411,015,524.00 16,086,543,402.55 - 219,830,232.83 95,759,396.32 - 586,501,527.41 11,478,728,731.98 51,805,434.40 32,930,184,249.49
Movements for the six months
ended 30 June 2018
Total comprehensive income
Net profit - - - - - - - 2,209,579,126.20 (26,198,883.29) 2,183,380,242.91
Other comprehensive income - - - (77,279,810.72) - - - - (1,604,210.67) (78,884,021.39)
Total comprehensive income for
the year - - - (77,279,810.72) - - - 2,209,579,126.20 (27,803,093.96) 2,104,496,221.52
Capital contribution and withdrawal
by shareholders
Share-based payment in capital
contribution by shareholders 4(40) 7,788,643.00 194,466,894.22 (202,255,537.22) - - - - - - -
Share-based payment included in
equity 9(1) - 23,930,346.08 - - - - - - - 23,930,346.08
Capital contribution by
shareholders - - - - - - - - 54,094,150.38 54,094,150.38
Others 4(40) - (9,300,026.82) - - - - - - 9,721,353.92 421,327.10
Business combinations involving
entities under common control - (43,617,193.55) - - - - - - - (43,617,193.55)
Profit distribution
Distribution to shareholders 4(44) - - - - - - - (970,985,880.70) - (970,985,880.70)
Other movements in capital reserve 4(40) - (269,027.26) - - - - - - - (269,027.26)
Safety reserve
Appropriation 4(42) - - - - - 2,727,907.70 - - - 2,727,907.70
Utilisation 4(42) - - - - - (2,727,907.70) - - - (2,727,907.70)
Balance at 30 June 2018 4,418,804,167.00 16,251,754,395.22 (202,255,537.22) 142,550,422.11 95,759,396.32 - 586,501,527.41 12,717,321,977.48 87,817,844.74 34,098,254,193.06
119
S.F. HOLDING CO., LTD.
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (CONT’D)
FOR THE SIX MONTHS ENDED 30 JUNE 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
Equity attributable to shareholders of the parent company
Other
Less: Treasury comprehensive General risk Special Minority
Note Share capital Capital reserve stock income reserve reserve Surplus reserve Retained earnings interests Total equity
Balance at 31 December 2018 4,418,767,258.00 16,069,619,165.67 (200,928,467.28) 527,184,297.85 185,084,995.61 - 601,132,890.32 14,960,151,735.98 352,931,633.27 36,913,943,509.42
Changes in accounting policies - - - 17,465,097.74 - - - - - 17,465,097.74
Balance at 1 January 2019 4,418,767,258.00 16,069,619,165.67 (200,928,467.28) 544,649,395.59 185,084,995.61 - 601,132,890.32 14,960,151,735.98 352,931,633.27 36,931,408,607.16
Movements for the six months
ended 30 June 2019
Total comprehensive income
Net profit - - - - - - - 3,101,111,638.63 (57,847,396.53) 3,043,264,242.10
Other comprehensive income - - - (8,131,829.98) - - - - 86,049.41 (8,045,780.57)
Total comprehensive income for
the year - - - (8,131,829.98) - - - 3,101,111,638.63 (57,761,347.12) 3,035,218,461.53
Capital contribution and withdrawal
by shareholders
Capital contribution by
shareholders - 16,277,032.73 - - - - - - 14,022,029.27 30,299,062.00
Share repurchases 4(41) - - (394,996,314.03) - - - - - - (394,996,314.03)
Changes in Share-based
payment restricted shares 4(41) (4,181,993.00) (104,584,725.90) 141,160,053.20 - - - - - - 32,393,334.30
Share-based payment included in
equity 9(1) - 14,581,133.08 - - - - - - 1,016,579.73 15,597,712.81
Others 4(40) - (11,159,460.36) - - - - - - (24,284,337.83) (35,443,798.19)
Transfer within equity
Transfer from other
comprehensive income to
retained earnings - - - 54,334,158.75 - - - (54,334,158.75) - -
Profit distribution
4(41)
Distribution to shareholders 4(44) - - 503,792.87 - - - - (924,735,176.17) - (924,231,383.30)
Other movements in capital reserve 4(40) - 842,393.75 - - - - - - - 842,393.75
Safety reserve
Appropriation 4(42) - - - - - 3,776,493.37 - - - 3,776,493.37
Utilisation 4(42) - - - - - (3,776,493.37) - - - (3,776,493.37)
Balance at 30 June 2019 4,414,585,265.00 15,985,575,538.97 (454,260,935.24) 590,851,724.36 185,084,995.61 - 601,132,890.32 17,082,194,039.69 285,924,557.32 38,691,088,076.03
The accompanying notes form an integral part of these financial statements.
Legal representative: Principal in charge of accounting: Head of accounting department:
120
S.F. HOLDING CO., LTD.
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE SIX MONTHS ENDED 30 JUNE 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
Less: Treasury Retained
Note Share capital Capital reserve stock Surplus reserve earnings Total equity
Balance at 1 January 2018 4,411,015,524.00 46,530,971,136.14 - 433,456,527.10 3,217,052,890.78 54,592,496,078.02
Movements for the six months
ended 30 June 2018
Total comprehensive income
Net profit - - - - 82,876,483.73 82,876,483.73
Capital contribution and withdrawal
by shareholders
Share-based payment in capital
contribution by shareholders 7,788,643.00 194,466,894.22 (202,255,537.22) - - -
Share-based payment included
in equity - 22,900,543.05 - - - 22,900,543.05
Others - (77,651.25) - - - (77,651.25)
Profit distribution
Distribution to shareholders - - - - (970,985,880.70) (970,985,880.70)
Balance at 30 June 2018 4,418,804,167.00 46,748,260,922.16 (202,255,537.22) 433,456,527.10 2,328,943,493.81 53,727,209,572.85
Balance at 1 January 2019 4,418,767,258.00 46,760,852,084.19 (200,928,467.28) 448,087,890.01 2,378,066,843.65 53,804,845,608.57
Movements for the six months
ended 30 June 2019
Total comprehensive income
Net profit - - - - 9,350,776.24 9,350,776.24
Capital contribution and withdrawal
by shareholders
Share repurchases 4(41) - - (394,996,314.03) - - (394,996,314.03)
Changes in Share-based
payment restricted shares 4(41) (4,181,993.00) (104,584,725.90) 141,160,053.20 - - 32,393,334.30
Share-based payment included
in equity - 11,681,356.03 - - - 11,681,356.03
Profit distribution
4(41)
Distribution to shareholders 4(44) - - 503,792.87 - (924,735,176.17) (924,231,383.30)
Balance at 30 June 2019 4,414,585,265.00 46,667,948,714.32 (454,260,935.24) 448,087,890.01 1,462,682,443.72 52,539,043,377.81
The accompanying notes form an integral part of these financial statements.
Legal representative: Principal in charge of accounting: Head of accounting department:
121
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
1 General information and historical development
S.F. Holding Co., Ltd. (formerly “Ma’anshan Dingtai Rare Earth and New Materials Co., Ltd.”,
hereinafter “S.F. Holding” or “the Company”), formerly known as Ma’anshan Dingtai Science &
Technology Co., Ltd., was established by 11 natural persons including Liu Jilu and the Labour Union
of Ma'anshan Dingtai Metallic Products Co., Ltd. by cash contribution on 13 May 2003. Initiated by
the original shareholders of the Company, the Company was formally changed as Maanshan Dingtai
Rare Earth and New Materials Co., Ltd. with a registered capital of RMB 50 million as approved by
the shareholders’ meeting on 18 October 2007 and the inaugural meeting on 22 October 2007.
On 11 January 2010, the Company successfully issued 19,500,000 ordinary shares at par value of
RMB 1.00 per share at Shenzhen Stock Exchange under the Regulatory Permission [2010] No. 41
as approved by China Securities Regulatory Commission. The outstanding shares were listed for
trading at Shenzhen Stock Exchange on 5 February 2010. After the shares were issued, the total
share capital of the Company was changed to 77,830,780 shares.
Pursuant to the Proposal on the Profit Distribution Plan for 2014 approved by 2014 annual
shareholders’ meeting held by the Company on 19 May 2015, the Company converted capital
reserve into new shares on the basis of 5 shares for every 10 existing shares, with 77,830,780 shares
in total at the end of 2014 as base. After the conversion, the total share capital of the Company was
increased by 38,915,390 shares to 116,746,170 shares.
Pursuant to the Proposal on the Profit Distribution Plan for 2015 approved by the 2015 annual
shareholders’ meeting held by the Company on 17 May 2016, the Company, with 116,746,170 shares
in total at the end of 2015 as base, converted capital reserve into new shares on the basis of 10
shares for every 10 existing shares. After the conversion, the total share capital of the Company was
increased by 116,746,170 shares to 233,492,340 shares.
Pursuant to the resolution of the 13th session of the third Board of Directors of the Company dated
22 May 2016 and relevant resolutions approved on the first interim shareholders’ meeting in 2016
held by the Company on 30 June 2016, including the Resolution concerning the Company Qualifying
for Criteria for Major Assets Restructuring of Listed Companies, the Resolution on Related-party
Transaction Composed of Major Assets Swap and Issuing Shares to Purchase Assets and Raise
Matching Fund and the Resolution on ‘Major Assets Swap and Issuing Shares to Purchase Assets
and Raise Matching Fund and Related-party Transaction Report (Draft) of Maanshan Dingtai Rare
Earth and New Materials Co., Ltd.’ and Summaries, the Company conducted a series of major assets
restructuring as follows:
122
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
1 General information and historical development (Cont’d)
(1) Major assets swap
In December 2016, the Company swapped all the assets and liabilities (“exchange-out assets”) it
held as at 31 December 2015 (“assessment base date”) for the equivalent portion (“exchange-in
assets”) of 68.40%, 9.93%, 6.75%, 6.75%, 6.75%, 1.35% and 0.07% of the equities in Shenzhen S.F.
Taisen Holdings (Group) Co., Ltd. (formerly “S.F. Holding (Group) Co., Ltd.”, hereinafter “Taisen
Holdings”) respectively held by Shenzhen Mingde Holdings Development Co., Ltd. (hereinafter
“Mingde Holdings”), Ningbo Shunda Fengrun Investment Management Partnership (Limited
Partnership) (hereinafter “Shunda Fengrun”), Jiaqiang Shunfeng (Shenzhen) Equity Investment
Partnership (Limited Partnership) (hereinafter “Jiaqiang Shunfeng”), Shenzhen Zhaoguang
Investment Co., Ltd. (hereinafter “Zhaoguang Investment”), Suzhou Industrial Park Oriza Shunfeng
Equity Investment Company (Limited Partnership) (hereinafter “Oriza Shunfeng”), Suzhou Guyu
Qiuchuang Equity Investment Partnership (Limited Partnership) (hereinafter “Guyu Qiuchuang”) and
Ningbo Shunxin Fenghe Investment Management Partnership (Limited Partnership) (hereinafter
“Shunxin Fenghe”). For this transaction, the exchange-out assets were priced at RMB 796 million
and the exchange-in assets were priced at RMB 43.30 billion. Pursuant to the second interim
shareholders’ meeting in 2016 dated 28 December 2016 (hereinafter “restructuring date”), the
Company approved and reelected a new Board of Directors, which indicated the completion of major
assets swap transaction and the successful listing of Taisen Holding on Shenzhen Stock Exchange
through back door listing.
(2) Issuing shares to purchase assets
In December 2016, the Company issued 3,950,185,873 ordinary shares (A shares) at par value of
RMB 1.00 per share at an issuing price of RMB 10.76 per share to Mingde Holdings, Shunda Fengrun,
Jiaqiang Shunfeng, Zhaoguang Investment, Oriza Shunfeng, Guyu Qiu Chuang and Shun Xin Feng
He to cover the difference of the above swap (RMB 42,504,000,000). The difference between the
value of shares and the share capital amounting to RMB 38,553,814,120.48 was recognised as
capital reserve. The total share capital was changed to 4,183,678,213 shares. After the new shares
were issued, Mingde Holdings, Shunda Fengrun, Jiaqiang Shunfeng, Zhaoguang Investment, Oriza
Shunfeng and other shareholders held 64.58%, 9.38%, 6.37%, 6.37%, 6.37% and 6.92%
respectively of the equities in the Company. China Securities Regulatory Commission approved the
above assets restructuring plan of the Company on 12 December 2016. The share change above
was verified by PricewaterhouseCoopers Zhong Tian LLP with a capital verification report of PwC ZT
Yan Zi (2016) No. 1757 issued on 28 December 2016. The Company registered the additional 3.95
billion shares at China Securities Depository and the Clearing Corporation Limited Shenzhen Branch
on 18 January 2017.
123
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
1 General information and historical development (Cont’d)
(3) Raising matching fund
In July 2017, the Company issued 227,337,311 ordinary shares (A shares) at par value of RMB 1.00
per share to specific investors through non-public offering at RMB 35.19 per share. The total fund
raised amounted to RMB 7,999,999,974.09. Net of underwriter and sponsor’s fees and other
transaction costs, the net fund raised amounted to RMB 7,822,179,636.78, including an increment
of share capital of RMB 227,337,311.00 and an increment of capital reserve by RMB
7,604,681,212.80. The aforesaid fund was received on 31 July 2017 and verified by
PricewaterhouseCoopers Zhong Tian LLP with a capital verification report of PwC ZT Yan Zi (2017)
No. 745 issued.
The Company registered the additional shares at China Securities Depository and the Clearing
Corporation Limited Shenzhen Branch on 15 August 2017. The total share capital was changed to
4,411,015,524 shares. Mingde Holdings, Shunda Feng Run, Jiaqiang Shunfeng, Zhaoguang
Investment, Oriza Shunfeng and other shareholders held 61.25%, 8.89%, 6.04%, 6.04%, 6.04% and
11.74% of the equities in the Company respectively.
Afterwards, the Company conducted several restricted shares incentive plans and share repurchase
measures (Note 9(2)(a)). Therefore, the total share capital of the Company as at 30 June 2019 was
changed to 4,414,585,265.00 shares and such change was verified by Chinese Certified Public
Accountant.
124
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
1 General information and historical development (Cont’d)
The approved business scope of the Company and its subsidiaries (hereinafter “the Group”) changes
to: assets management, capital management, investment management (trusts, financial assets
management and security assets management are not allowed); auto rent (excluding auto rent with
driver); enterprise headquarters management; customs brokerage, inspection brokerage; investment
in industries; domestic trade; marketing planning; investment consultancy and other information
consultancy (excluding human resources intermediary service, securities and restricted projects);
engagement in the development of network technology, information technology and electronic
product technology and related technology services, consultancy and transfer of network technology,
and provision of network information, E-Commerce service platform, business management,
business investment, investment management consultancy, investment management, enterprise
management consulting, etc.; call centre business and information service (both are second type
value-added telecommunication services) and road transportation of common cargo; international
freight forwarding for air transportation and road transportation of imported and exported goods or
transit goods, including solicitation, booking, shipping, warehousing and packaging; type-1 and type-
2 (international and domestic) sales agency of air transport; common cargo transportation, stowage
and logistics services; science and technology information consulting, project investment consulting
and logistics information consulting; data processing; research and development and sales of
communication equipment, and related technology services (projects subject to approval could only
be implemented after approval by relevant authorities), research and development of unmanned
aerial vehicle(“UAV”) and spare parts; supply chain management and related supporting services,
and engagement in both export and import business; development, construction and operation of
industrial park; property management; self-owned property leasing; network marketing promotion; E-
Commerce training; information technology outsourcing and information services outsourcing; data
mining, data analysis and data services; development and application of general software, industry
application software and embedded software; operation of on-line trading, on-line consulting, on-line
auction and on-line advertising; network business service and database service; services in respect
of development and application of electronic government affairs system; communications industry
value-added business services; international freight forwarding, domestic and international express
(excluding business exclusively operated by postal enterprises), transportation of cargo shipping
containers and large objects, economic and technical consulting, technical information consulting,
and engagement in commercial activities by way of franchising; transport services of domestic
(including Hong Kong, Macau and Taiwan) and international aviation cargo and related services, and
import and export of goods and technology; cargo express agent services; international freight
forwarding (excluding shipping agency business), loading, unloading and handling; international and
domestic freight forwarding; technology development of software and hardware for financial payment
systems; internet payment, bank card acquiring, supply chain management; non-securities equity
investment activities and relevant consulting services; finance leasing; leasing; purchase of leased
property from home and abroad; residual value processing and maintenance of leased property;
leasing consulting; commercial factoring related to main operating activities; delivery of goods; freight
equipment leasing; container yard operation and container leasing service; railway cargo
transportation; ship freight; product marketing design and planning for enterprises and individuals
and related business agency services; non-vessel operating common carrier business; international
maritime freight forwarding; financial information consulting, financial outsourcing services
commissioned by financial institutions, building construction engineering, and warehousing and
transport of medicine, medical equipment and food.
First-tier and second-tier subsidiaries included in the consolidation scope of the financial statements
are detailed in Note 6(1). The changes in the scope of consolidation for the current period are set out
in Note 5.
As at 30 June 2019, Mingde Holdings was the parent company and ultimate controlling company of
the Company.
These financial statements were authorised for issue by the Board of Directors of the Company on
26 August 2019.
125
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
2 Summary of significant accounting policies and accounting estimates
The Group determines the specific accounting policies and estimates based on its features of
production and operation, primarily comprising the methods of provision for expected credit losses
on loans and receivables (Note 2(9)), valuation of inventories (Note 2(10)), measurement model of
investment properties (Note 2(12)), depreciation of fixed assets and amortisation of intangible assets
(Note 2(13), (16)), criterion for capitalisation of capitalised development expenditures (Note 2(17)),
recognition and measurement of revenue (Note 2(25)), etc.
Details of the Group's critical judgements used in determining significant accounting policies are set
forth in Note 2(30).
(1) Basis of preparation
The financial statements are prepared in accordance with the Accounting Standards for Business
Enterprises - Basic Standard, and the specific accounting standards and other relevant regulations
issued by the Ministry of Finance on 15 February 2006 and in subsequent periods (hereafter
collectively referred to as “the Accounting Standards for Business Enterprises” or “CASs”) and the
disclosure requirements in the Preparation Convention of Information Disclosure by Companies
Offering Securities to the Public No.15 - General Rules on Financial Reporting issued by the China
Securities Regulatory Commission.
The financial statements are prepared on a going concern basis.
(2) Statement of compliance with the Accounting Standards for Business Enterprises
The financial statements of the Company for the six months ended 30 June 2019 are in compliance
with the Accounting Standards for Business Enterprises, and truly and completely present the
consolidated and company financial position as at 30 June 2019 and their financial performance,
cash flows and other information for the period then ended.
(3) Accounting year
The Company’s accounting year starts on 1 January and ends on 31 December.
126
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
2 Summary of significant accounting policies and accounting estimates (Cont’d)
(4) Recording currency
The Company’s recording currency is Renminbi (RMB). The Company’s subsidiaries decide their
recording currencies in line with the economic environments in which they operate, while the
subsidiaries in Hong Kong and abroad mainly adopt currencies including HKD, EUR and etc. as their
recording currencies. The financial statements are presented in RMB.
(5) Business combinations
(a) Business combinations involving enterprises under common control
The consideration paid and net assets obtained by the acquirer in a business combination are
measured at the carrying amount. If the acquiree is acquired from a third party by the ultimate
controlling party in a prior year, the consideration paid and net assets obtained by the acquirer are
measured based on the carrying amounts of the acquiree’s assets and liabilities (including the
goodwill arising from the acquisition of the acquiree by the ultimate controlling party) presented in
the consolidated financial statements of the ultimate controlling party. The difference between the
carrying amount of the net assets obtained from the combination and the carrying amount of the
consideration paid for the combination is treated as an adjustment to capital reserve (share premium).
If the capital reserve (share premium) is not sufficient to absorb the difference, the remaining balance
is adjusted against retained earnings. Costs directly attributable to the business combination are
included in profit or loss in the period in which they are incurred. Transaction costs associated with
the issue of equity or debt securities for the business combination are included in the initially
recognised amounts of the equity or debt securities.
(b) Business combinations involving enterprises not under common control
The combination cost and identifiable net assets obtained by the acquirer in a business combination
are measured at fair value at the acquisition date. Where the combination cost exceeds the acquirer's
interest in the fair value of the acquiree's identifiable net assets, the difference is recognised as
goodwill; where the combination cost is lower than the acquirer's interest in the fair value of the
acquiree's identifiable net assets, the difference is recognised in profit or loss for the current period.
Costs directly attributable to the combination are included in profit or loss in the period in which they
are incurred. Transaction costs associated with the issue of equity or debt securities for the business
combination are included in the initially recognised amounts of the equity or debt securities.
127
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
2 Summary of significant accounting policies and accounting estimates (Cont’d)
(6) Preparation of consolidated financial statements
The consolidated financial statements comprise the financial statements of the Company and all of
its subsidiaries.
Subsidiaries are consolidated from the date on which the Group obtains control and are de-
consolidated from the date on which such control ceases. For a subsidiary that is acquired in a
business combination involving enterprises under common control, it is included in the consolidated
financial statements from the date when it, together with the Company, comes under common control
of the ultimate controlling party. The portion of the net profits realised before the combination date is
presented separately in the consolidated income statement.
In preparing the consolidated financial statements, where the accounting policies and the accounting
periods of the Company and subsidiaries are inconsistent, the financial statements of the subsidiaries
are adjusted in accordance with the accounting policies and the accounting period of the Company.
For subsidiaries acquired from business combinations involving enterprises not under common
control, the individual financial statements of the subsidiaries are adjusted based on the fair value of
the identifiable net assets at the acquisition date.
All significant intra-group balances, transactions and unrealised profits are eliminated in the
consolidated financial statements. The portion of subsidiaries’ equity and the portion of subsidiaries’
net profit or loss and comprehensive income for the period not attributable to the Company are
recognised as minority interests, minority interest income and total comprehensive income
attributable to minority shareholders and presented separately in the consolidated financial
statements under equity, net profit and total comprehensive income respectively. Unrealised profits
and losses resulting from the sale of assets by the Company to its subsidiaries are fully eliminated
against net profit attributable to owners of the parent. Unrealised profits and losses resulting from
the sale of assets by a subsidiary to the Company are eliminated and allocated between net profit
attributable to owners of the parent and minority interest income in accordance with the allocation
proportion of the parent in the subsidiary. Unrealised profits and losses resulting from the sale of
assets by one subsidiary to another are eliminated and allocated between net profit attributable to
owners of the parent and minority interest income in accordance with the allocation proportion of the
parent in the selling subsidiary.
If the accounting treatment of a transaction is inconsistent in the financial statements at the Group
level and at the Company or its subsidiary level, adjustment will be made from the perspective of the
Group.
(7) Cash and cash equivalents
Cash and cash equivalents comprise cash on hand, deposits that can be readily drawn on demand,
and short-term and highly liquid investments that are readily convertible to known amounts of cash
and which are subject to an insignificant risk of changes in value.
128
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
2 Summary of significant accounting policies and accounting estimates (Cont’d)
(8) Foreign currency translation
(a) Foreign currency transactions
Foreign currency transactions are translated into recording currency using the spot exchange rates
and approximate exchange rates prevailing at the dates of the transactions.
At the balance sheet date, monetary items denominated in foreign currencies are translated into
recording currency using the spot exchange rates on the balance sheet date. Exchange differences
arising from these translations are recognised in profit or loss for the current period, except for those
attributable to foreign currency borrowings that have been taken out specifically for acquisition or
construction of qualifying assets, which are capitalised as part of the cost of those assets. Non-
monetary items denominated in foreign currencies that are measured at historical costs are
translated at the balance sheet date using the spot exchange rates at the date of the transactions.
The effect of exchange rate changes on cash is presented separately in the cash flow statement.
(b) Translation of foreign currency financial statements
The asset and liability items in the balance sheets for overseas operations are translated at the spot
exchange rates on the balance sheet date. Among the equity items, the items other than “retained
earnings” are translated at the spot exchange rates of the transaction dates. The income and
expense items in the income statement of foreign operations are translated at the spot exchange
rates of the transaction dates. The differences arising from the above translation are recognised in
other comprehensive income. The cash flows of foreign operations are translated at the spot
exchange rates on the dates of the cash flows. The effect of exchange rate changes on cash is
presented separately in the cash flow statement.
(9) Financial instruments
A financial instrument is any contract that gives rise to a financial asset of one entity and a financial
liability or equity instrument of another entity. A financial asset or a financial liability is recognised
when the Group becomes a party to the contractual provisions of the instrument.
(a) Financial assets
(i) Classification and measurement
Based on the business model for managing the financial assets and the contractual cash flow
characteristics of the financial assets, financial assets are classified as: (1) financial assets at
amortised cost; (2) financial assets at fair value through other comprehensive income; (3) financial
assets at fair value through profit or loss.
129
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
2 Summary of significant accounting policies and accounting estimates (Cont’d)
(9) Financial instruments (Cont’d)
(a) Financial assets (Cont’d)
(i) Classification and measurement (Cont’d)
The financial assets are measured at fair value at initial recognition. Related transaction costs that
are attributable to the acquisition of the financial assets are included in the initially recognised
amounts, except for the financial assets at fair value through profit or loss, the related transaction
costs of which are recognised directly in profit or loss for the current period. Accounts receivable or
notes receivable arising from sales of products or rendering of services (excluding or without regard
to significant financing components) are initially recognised at the consideration that is entitled to be
charged by the Group as expected.
Debt instruments
The debt instruments held by the Group refer to the instruments that meet the definition of financial
liabilities from the perspective of the issuer, and are measured in the following ways:
Measured at amortised cost:
The objective of the Group’s business model is to hold the financial assets to collect the contractual
cash flows, and the contractual cash flow characteristics are consistent with a basic lending
arrangement, which gives rise on specified dates to the contractual cash flows that are solely
payments of principal and interest on the principal amount outstanding. The interest income of such
financial assets is recognised using the effective interest method. Such financial assets mainly
comprise cash at bank and on hand, notes receivable, accounts receivable, Factoring receivables,
loans and advances, other receivables and long-term receivables. Long-term receivables that are
due within one year (inclusive) as from the balance sheet date are included in the current portion of
non-current assets.
Measured at fair value through profit or loss:
Debt instruments held by the Group that are not divided into those at amortised cost, or those
measured at fair value through other comprehensive income, are measured at fair value through
profit or loss and included in financial assets held for trading. At initial recognition, the Group
designates a portion of financial assets as at fair value through profit or loss to eliminate or
significantly reduce an accounting mismatch. Financial assets that are due within one year (inclusive)
as from the balance sheet date and are expected to be held over one year are included in other non-
current financial assets.
130
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
2 Summary of significant accounting policies and accounting estimates (Cont’d)
(9) Financial instruments (Cont’d)
(a) Financial assets (Cont’d)
(i) Classification and measurement (Cont’d)
Equity instruments
Investments in equity instruments, over which the Group has no control, joint control or significant
influence, are measured at fair value through profit or loss under financial assets held for trading;
investments in equity instruments expected to be held over one year as from the balance sheet date
are included in other non-current financial assets.
In addition, a portion of certain investments in equity instruments not held for trading are designated
as financial assets at fair value through other comprehensive income under other investments in
equity instruments. The relevant dividend income of such financial assets is recognised in profit or
loss for the current period.
(ii) Impairment
The Group confirms the loss provision based on expected credit losses for financial assets measured
at amortised cost.
Giving consideration to reasonable and supportable information on past events, current conditions
and forecasts of future economic conditions, as well as the default risk weight, the Group recognises
the expected credit loss ("ECL") as the probability-weighted amount of the present value of the
difference between the cash flows receivable from the contract and the cash flows expected to collect.
As at each balance sheet date, the expected credit losses of financial instruments at different stages
are measured respectively. 12-month ECL provision is recognised for financial instruments in Stage
1 that have not had a significant increase in credit risk since initial recognition; lifetime ECL provision
is recognised for financial instruments in Stage 2 that have had a significant increase in credit risk
yet without credit impairment since initial recognition; and lifetime ECL provision is recognised for
financial instruments in Stage 3 that have had credit impairment since initial recognition.
131
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
2 Summary of significant accounting policies and accounting estimates (Cont’d)
(9) Financial instruments (Cont’d)
(a) Financial assets (Cont’d)
(ii) Impairment (Cont’d)
For the financial instruments with lower credit risk on the balance sheet date, the Group assumes
there is no significant increase in credit risk since initial recognition and recognises the 12-month
ECL provision.
For the financial instruments in Stage 1, Stage 2 and with lower credit risk, the Group calculates the
interest income by applying the effective interest rate to the gross carrying amount (before deduction
of the impairment provision). For the financial instrument in Stage 3, the interest income is calculated
by applying the effective interest rate to the amortised cost (after deduction of the impairment
provision from the gross carrying amount).
For notes and accounts receivables, the Group recognises the lifetime expected credit loss provision
regardless of whether there exists a significant financing component.
In case the expected credit losses of an individually assessed financial asset cannot be evaluated
with reasonable cost, the Group divides the receivables into certain groupings based on credit risk
characteristics, and calculates the expected credit losses for the groupings. Basis for determine
groupings is as follows:
Bank acceptance notes Group of bank notes with low credit risk
Accounts receivables and other receivables Group of receivables from related parties
Accounts receivables and other receivables Group of receivables from non-related parties
Long-term receivables Group of finance lease
Long-term receivables Group of Interest-free loans to employees
Based on the exposure at default and the lifetime expected credit loss rate, the Group calculates the
expected credit losses of notes and accounts receivables that are classified into groupings with
consideration to historical credit losses experience, current conditions and forecasts of future
economic conditions.
Based on the exposure at default and the 12-month/lifetime expected credit loss rate, the Group
calculates the expected credit losses of other receivables, Factoring receivables, loans and
advances, and long-term receivables that are classified into groupings with consideration to historical
credit losses experience, the current conditions and forecasts of future economic conditions.
The Group recognises the loss provision made or reversed into profit or loss for the current period.
132
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
2 Summary of significant accounting policies and accounting estimates (Cont’d)
(9) Financial instruments (Cont’d)
(a) Financial assets (Cont’d)
(iii) Derecognition
A financial asset is derecognised when any of the below criteria is met: (1) the contractual rights to
receive the cash flows from the financial asset expire; (2) the financial asset has been transferred
and the Group transfers substantially all the risks and rewards of ownership of the financial asset to
the transferee; or (3) the financial asset has been transferred and the Group has not retained control
of the financial asset, although the Group neither transfers nor retains substantially all the risks and
rewards of ownership of the financial asset.
When a financial asset is derecognised, the difference between the carrying amount and the sum of
the consideration received and the cumulative changes in fair value that are previously recognised
directly in other comprehensive income is recognised in profit or loss for the current period, except
for those as investments in other equity instruments, the difference aforementioned is recognised in
retained earnings instead.
(b) Financial liabilities
Financial liabilities are classified as financial liabilities at amortised cost and financial liabilities at fair
value through profit or loss at initial recognition.
Financial liabilities of the Group mainly comprise financial liabilities at amortised cost, including notes
and accounts payables, other payables, borrowings, debentures payable, etc. Such financial
liabilities are initially recognised at fair value, net of transaction costs incurred, and subsequently
measured using the effective interest method. Financial liabilities that are due within one year
(inclusive) are classified as current liabilities; those with maturities over one year but are due within
one year (inclusive) as from the balance sheet date are classified as current portion of non-current
liabilities. Others are classified as non-current liabilities.
A financial liability is derecognised or partly derecognised when the underlying present obligation is
discharged or partly discharged. The difference between the carrying amount of the derecognised
part of the financial liability and the consideration paid is recognised in profit or loss for the current
period.
133
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
2 Summary of significant accounting policies and accounting estimates (Cont’d)
(9) Financial instruments (Cont’d)
(c) Determination of fair value of financial instruments
The fair value of a financial instrument that is traded in an active market is determined at the quoted
price in the active market. The fair value of a financial instrument that is not traded in an active market
is determined by using a valuation technique. In valuation, the Group adopts valuation techniques
applicable in the current situation and supported by adequate available data and other information,
selects inputs with the same characteristics as those of assets or liabilities considered in relevant
transactions of assets or liabilities by market participants, and gives priority to the use of relevant
observable inputs. When relevant observable inputs are not available or feasible, unobservable
inputs are adopted.
(10) Inventories
(a) Classification
Inventories comprise low-value consumables, raw materials in stock, finished goods, aviation
consumables and properties under development, and are stated at the lower of cost and net
realisable value.
(b) Valuation method for inventory issued
Raw materials in stock and finished goods are accounted for using the weighted average method
upon issuance. Aviation consumables are accounted for using the specific-unit-cost method upon
issuance. Properties under development comprise land costs relating to real estate development,
construction costs, other direct and indirect development expenses, etc., and are transferred to
completed properties held for sale at actual cost upon completion.
(c) Amortisation methods of low-value consumables
Low-value consumables are amortised into expenses in full when issued for use.
134
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
2 Summary of significant accounting policies and accounting estimates (Cont’d)
(10) Inventories (Cont'd)
(d) Basis for determining the net realisable value of inventories and provision for decline in the value of
inventories
Provision for decline in the value of inventories is determined at the excess amount of the carrying
amounts of the inventories over their net realisable value. Net realisable value is determined based
on the estimated selling price in the ordinary course of business, less the estimated costs and
estimated costs necessary to make the sale and related taxes.
(e) The Group adopts the perpetual inventory system.
(11) Long-term equity investments
Long-term equity investments comprise the Company’s long-term equity investments in its
subsidiaries, and the Group’s long-term equity investments in its joint ventures and associates.
A subsidiary is an investee over which the Company is able to exercise control. A joint venture is a
joint arrangement which is structured through a separate vehicle over which the Group has joint
control together with other parties and only has rights to the net assets of the arrangement based on
legal forms, contractual terms and other facts and circumstances. An associate is the investee over
which the Group has significant influence by participating in the financial and operating policy
decisions.
Investments in subsidiaries are presented in the Company’s financial statements using the cost
method, and are adjusted to the equity method when preparing the consolidated financial statements,
and investments in joint ventures and associates are accounted for using the equity method.
(a) Determination of investment cost
For long-term equity investments arising from business combination: for long-term equity
investments arising from business combination involving enterprises under common control, the
initial investment cost shall be the share of the carrying amount of equity of the acquiree in the
consolidated financial statements of the ultimate controlling party as at the combination date; for
long-term equity investments arising from business combination, the investment cost shall be the
combination cost.
For long-term equity investments acquired not through a business combination: for long-term equity
investments acquired by payment in cash, the initial investment cost shall be the purchase price
actually paid; for long-term equity investments acquired by issuing equity securities, the initial
investment cost shall be the fair value of the equity securities issued.
135
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
2 Summary of significant accounting policies and accounting estimates (Cont’d)
(11) Long-term equity investments (Cont’d)
(b) Subsequent measurement and recognition methods of gains and losses
Long-term equity investments accounted for using the cost method are measured at the initial
investment cost. Cash dividend or profit distribution declared by an investee is recognised as
investment income in profit or loss for the current period.
For long-term equity investments that are accounted for using the equity method, where the initial
investment cost exceeds the Group’s share of the fair value of the investee’s identifiable net assets
at the time of acquisition, the investment is initially measured at cost. Where the initial investment
cost is less than the Group’s share of the fair value of the investee’s identifiable net assets at the
time of acquisition, the difference is included in profit or loss for the current period and the cost of the
long-term equity investment is adjusted upwards accordingly.
Under the equity method, the Group recognises the investment income according to its share of net
profit or loss of the investee. The Group discontinues recognising its share of the net losses of an
investee after the carrying amounts of the long-term equity investment together with any long-term
interests that in substance form part of the investor’s net investment in the investee are reduced to
zero. However, if the Group has obligations for additional losses and the criteria with respect to
recognition of provisions are satisfied, the Group continues recognising the estimated losses that it
needs to bear. The changes of the Group’s share of the investee’s equity other than those arising
from the net profit or loss, other comprehensive income and profit appropriation, are recognised in
the Group’s capital reserve and the carrying amounts of the long-term equity investment are adjusted
accordingly. The carrying amount of the investment is reduced by the Group’s share of the profit
distribution or cash dividends declared by an investee. The unrealised profits or losses arising from
the transactions between the Group and its investees are eliminated in proportion to the Group’s
equity interest in the investees, based on which the investment gain or losses are recognised. For
the loss on the intra-group transaction amongst the Group and its investees attributable to asset
impairment losses, any unrealised loss is not eliminated.
(c) Basis for determining existence of control, joint control, significant influence over investees
Control means having power over an investee, enjoying variable returns through involvement in
relevant activities of the investee, and being able to impact the amount of such variable returns by
using the power over the investee.
Joint control is the agreed sharing of control over an arrangement, and the decision of activities
relating to such arrangement requires the unanimous consent of the Group and other parties sharing
control.
Significant influence is the power to participate in making the decisions on financial and operating
policies of the investee, but is not control or joint control over making those policies.
136
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
2 Summary of significant accounting policies and accounting estimates (Cont’d)
(11) Long-term equity investments (Cont’d)
(d) Impairment of long-term equity investments
The carrying amounts of long-term equity investments in subsidiaries, joint ventures and associates
are reduced to the recoverable amounts when the recoverable amounts are below their carrying
amounts (Note 2(19)).
(12) Investment properties
Investment properties, including land use rights that have already been leased out, buildings that are
held for the purpose of leasing and buildings that are being constructed or developed for future use
for leasing, are measured initially at cost. Subsequent expenditures incurred in relation to an
investment property are included in the cost of the investment property when it is probable that the
associated economic benefits will flow to the Group and their costs can be reliably measured;
otherwise, the expenditures are recognised in profit or loss for the period in which they are incurred.
The Group adopts the cost model for subsequent measurement of investment properties. Buildings
and land use rights are depreciated or amortised to their estimated net residual values over their
estimated useful lives. The estimated useful lives, the estimated net residual values that are
expressed as a percentage of cost and the annual depreciation rates of investment properties are
as follows:
Annual
Estimated useful Estimated net depreciation/
lives residual values amortisation rates
Buildings 10 - 50 years 5% 9.50% - 1.90%
Land use rights 20 - 50 years 0% 2.52% - 2.00%
The investment property’s estimated useful life, net residual value and depreciation (amortisation)
method applied are reviewed and adjusted as appropriate at each year-end.
An investment property is derecognised on disposal or when the investment property is permanently
withdrawn from use and no future economic benefits are expected from its disposal. The net amount
of proceeds from sale, transfer, retirement or damage of an investment property net of its carrying
amount and related taxes and expenses is recognised in profit or loss for the current period.
137
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
2 Summary of significant accounting policies and accounting estimates (Cont’d)
(13) Fixed assets
(a) Recognition and initial measurement of fixed assets
Fixed assets comprise buildings, motor vehicles, computers and electronic equipment, aircraft and
aircraft engines, rotables and high-value aircraft maintenance tools, machinery and equipment, office
equipment and other equipment.
Fixed assets are recognised when it is probable that the associated economic benefits will flow to
the Group and the related cost can be reliably measured. Fixed assets purchased or constructed are
initially measured at cost at the time of acquisition.
Subsequent expenditures incurred for a fixed asset are included in the cost of the fixed asset when
it is probable that the associated economic benefits will flow to the Group and the related cost can
be reliably measured. The carrying amount of the replaced part is derecognised. All the other
subsequent expenditures are recognised in profit or loss for the period in which they are incurred.
(b) Depreciation method for fixed assets
Except for replacement parts for overhaul of engine, fixed assets are depreciated using the straight-
line method to allocate the recorded amount of the assets to their estimated residual values over
their estimated useful lives. For the fixed assets that have been provided for impairment loss, the
related depreciation charge is prospectively determined based upon the adjusted carrying amounts
over their remaining useful lives.
The estimated useful lives and the estimated net residual values expressed as a percentage of cost
and the annual depreciation rates of fixed assets are as follows:
Estimated useful Estimated net Annual
lives residual values depreciation rates
Buildings 10 - 50 years 5% 9.50% - 1.90%
Motor vehicles (excluding
electromobiles) 2 - 5 years 0% - 5% 50.00% - 19.00%
Motor vehicles (electromobiles) 2 years 5% 47.50%
Machinery and equipment
(excluding automatic sorting
equipment imported from abroad) 2 - 10 years 0% - 5% 50.00% - 9.50%
Machinery and equipment
(automatic sorting equipment
imported from abroad) 15 years 5% 6.33%
Computers and electronic
equipment 2 - 5 years 0% - 5% 50.00% - 19.00%
Aircraft and engine bodies 10 years 5% 9.50%
Replacement parts for overhaul of
aircraft fuselage 1.5 - 12 years 0% 66.67% - 8.33%
Rotables 10 years 5% 9.50%
High-value aircraft maintenance
tools 5 years 5% 19.00%
Office equipment and other
equipment 2 - 10 years 0% - 5% 50.00% - 9.50%
138
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
2 Summary of significant accounting policies and accounting estimates (Cont’d)
(13) Fixed assets (Cont’d)
(b) Depreciation method for fixed assets (Cont'd)
Replacement parts for overhaul of engines are depreciated using the units-of-production method and
taking the expected usable recurring number as the unit of production.
The estimated useful life/expected usable recurring number and the estimated net residual value of
a fixed asset and the depreciation method applied to the asset are reviewed, and adjusted as
appropriate at each year-end.
(c) The carrying amounts of fixed assets are reduced to the recoverable amounts when the recoverable
amounts are below their carrying amounts (Note 2(19)).
(d) Basis for identification of fixed assets held under finance leases and related measurement
A finance lease is a lease that transfers substantially all the risks and rewards incidental to ownership
of an asset. The leased asset is recognised at the lower of the fair value of the leased asset and the
present value of the minimum lease payments. The difference between the recorded amount of the
leased asset and the minimum lease payments is accounted for as unrecognised finance charge
(Note 2(28)(b)).
Fixed assets held under a finance lease is depreciated on a basis consistent with the depreciation
policy adopted for fixed assets that are self-owned. When a leased asset can be reasonably
determined that its ownership will be transferred at the end of the lease term, it is depreciated over
its estimated useful life; otherwise, the leased asset is depreciated over the shorter period of the
lease term and its estimated useful life.
(e) Disposal of fixed assets
A fixed asset is derecognised on disposal or when no future economic benefit is expected from its
use or disposal. The amount of proceeds from disposals on sale, transfer, retirement or damage of
a fixed asset net of its carrying amount and related taxes and expenses is recognised in profit or loss
for the current period.
(14) Construction in progress
Construction in progress is measured at actual cost. Actual cost comprises construction costs,
installation costs, borrowing costs that are eligible for capitalisation and other costs necessary to
bring the fixed assets ready for their intended use. Construction in progress is transferred to fixed
assets when the assets are ready for their intended use, and depreciation begins from the following
month. The carrying amount of construction in progress is reduced to the recoverable amount when
the recoverable amount is below its carrying amount (Note 2(19)).
139
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
2 Summary of significant accounting policies and accounting estimates (Cont’d)
(15) Borrowing costs
The Group’s borrowing costs that are directly attributable to the acquisition and construction of a
fixed asset that needs a substantially long period of time for its intended use commence to be
capitalised and recorded as part of the cost of the asset when expenditures for the asset and
borrowing costs have been incurred, and the activities relating to the acquisition and construction
that are necessary to prepare the asset for its intended use have commenced. The capitalisation of
borrowing costs ceases when the asset under acquisition or construction becomes ready for its
intended use and the borrowing costs incurred thereafter are recognised in profit or loss for the
current period. Capitalisation of borrowing costs is suspended during periods in which the acquisition
or construction of a fixed asset is interrupted abnormally and the interruption lasts for more than 3
months, until the acquisition or construction is resumed.
For the specific borrowings obtained for the acquisition or construction of an asset qualifying for
capitalisation, the amount of borrowing costs eligible for capitalisation is determined by deducting
any interest income earned from depositing the unused specific borrowings in the banks or any
investment income arising on the temporary investment of those borrowings during the capitalisation
period.
For general borrowings utilised for the acquisition and construction of an asset qualifying for
capitalisation, the capitalised amount of the general borrowings is determined by the weighted
average of the excess of accumulated capital expenditure over capital expenditure of the special
borrowings multiplied by the weighted average effective interest rate of the utilised general
borrowings. The effective interest rate is the interest rate at which the future cash flows of the
borrowings over the estimated life or a shorter applicable period are discounted into the initial
recognised amount of the borrowings.
(16) Intangible assets
Intangible assets include software, land use rights, trademark rights, customer relationships, patents,
etc.
(a) Software
Software is measured at actual cost and amortised on the straight-line basis over 2 to 10 years.
(b) Land use rights
Land use rights are amortised on the straight-line basis over 33 to 50 years.
(c) Trademark rights
Purchased trademark rights are measured at cost at the time of acquisition. Trademark rights
recognised under business combinations are recorded at fair value. Trademark rights are amortised
on the straight-line basis over 5 to 20 years.
(d) Customer relationships
Customer relationships refer to intangible assets recognised under business combinations.
Customer relationships are recorded at fair value and amortised on the straight-line basis over the
expected beneficial period.
140
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
2 Summary of significant accounting policies and accounting estimates (Cont’d)
(16) Intangible assets (Cont’d)
(e) Patents
Patents are amortised on the straight-line basis over 5 to 10 years.
(f) Periodical review of useful life and amortisation method
For an intangible asset with a finite useful life, review of its useful life and amortisation method is
performed at each year-end, with adjustment made as appropriate.
(g) Impairment of intangible assets
The carrying amounts of intangible assets are reduced to the recoverable amounts when the
recoverable amounts are below their carrying amounts (Note 2(19)).
(17) Research and development
The expenditure on an internal research and development project is classified into expenditure on
the research phase and expenditure on the development phase based on its nature and whether
there is material uncertainty that the research and development activities can form an intangible
asset at end of the project.
Expenditure on the research phase is recognised in profit or loss in the period in which it is incurred.
Expenditure on the development phase is capitalised only if all of the following conditions are
satisfied:
it is technically feasible to complete the intangible asset so that it will be available for use or
sales;
management intends to complete the intangible asset, and use or sell it;
it can be demonstrated how the intangible asset will generate economic benefits;
there are adequate technical, financial and other resources to complete the development
and the ability to use or sell the intangible asset; and
the expenditure attributable to the intangible asset during its development phase can be
reliably measured.
Other development expenditures that do not meet the conditions above are recognised in profit or
loss in the period in which they are incurred. Capitalised development expenditures previously
recognised as expenses are not recognised as an asset in a subsequent period. Capitalised
expenditure on the development phase is presented as capitalised development expenditures in the
balance sheet and transferred to intangible assets at the date when the asset is ready for its intended
use.
141
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
2 Summary of significant accounting policies and accounting estimates (Cont’d)
(18) Long-term prepaid expenses
Long-term prepaid expenses include settling-in allowance and introduction fee for pilots, the
expenditure for improvements to fixed assets held under operating leases, and other expenditures
that have been incurred but should be recognised as expenses over more than one year in the
current and subsequent periods. Long-term prepaid expenses are amortised on a straight-line basis
over the expected beneficial period (2 to 15 years) and are presented at actual expenditure net of
accumulated amortisation.
(19) Impairment of long-term assets
Fixed assets, construction in progress, intangible assets with finite useful lives, investment properties
measured using the cost model and long-term equity investments in subsidiaries, joint ventures and
associates are tested for impairment if there is any indication that the assets may be impaired at the
balance sheet date; intangible assets not ready for their intended use are tested at least annually for
impairment, irrespective of whether there is any indication that it may be impaired. If the result of the
impairment test indicates that the recoverable amount of an asset is less than its carrying amount, a
provision for impairment and an impairment loss are recognised for the amount by which the asset’s
carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s
fair value less costs to sell and the present value of the future cash flows expected to be derived
from the asset. Provision for asset impairment is determined and recognised on individual asset
basis. If it is not possible to estimate the recoverable amount of an individual asset, the recoverable
amount of a group of assets to which the asset belongs is determined. A group of assets is the
smallest group of assets that is able to generate independent cash inflows.
Goodwill that is separately presented in the financial statements is tested at least annually for
impairment, irrespective of whether there is any indication that it may be impaired. In conducting the
test, the carrying amount of goodwill is allocated to the related asset groups or groups of asset groups
which are expected to benefit from the synergies of the business combination. If the result of the test
indicates that the recoverable amount of an asset group or a group of asset groups, including the
allocated goodwill, is lower than its carrying amount, the corresponding impairment loss is recognised.
The impairment loss is first deducted from the carrying amount of goodwill that is allocated to the
asset group or group of asset groups, and then deducted from the carrying amounts of other assets
within the asset group or group of asset groups in proportion to the carrying amounts of assets other
than goodwill.
Once the above asset impairment loss is recognised, it will not be reversed for the value recovered
in the subsequent periods.
142
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
2 Summary of significant accounting policies and accounting estimates (Cont’d)
(20) Employee benefits
Employee benefits refer to all forms of consideration or compensation given by the Group in
exchange for service rendered by employees or for termination of employment relationship, which
include short-term employee benefits, post-employment benefits, termination benefits and other
long-term employee benefits.
(a) Short-term employee benefits
Short-term employee benefits include employee wages or salaries, bonus, allowances and subsidies,
staff welfare, premiums or contributions on medical insurance, work injury insurance and maternity
insurance, housing funds, union running costs and employee education costs. The employee benefit
liabilities are recognised in the accounting period in which the service is rendered by the employees,
with a corresponding charge to the profit or loss for the current period or the cost of relevant assets.
Employee benefits which are non-monetary benefits are measured at fair value.
(b) Post-employment benefits
The Group classifies post-employment benefits plans into defined contribution plans and defined
benefit plans. Defined contribution plans are post-employment benefit plans under which the Group
pays fixed contributions into a separate fund and will have no obligation to pay further contributions;
and defined benefit plans are post-employment benefit plans other than defined contribution plans.
During the reporting period, the Group's post-employment benefits mainly included basic pension
insurance and unemployment insurance, both of which belong to defined contribution plans.
Basic pension insurance
The Group’s employees participate in the basic pension plan set up and administered by local
authorities of Ministry of Human Resource and Social Security. Monthly payments of premiums on
the pensions are calculated according to local regulations for pension plan. When employees retire,
the local labour and social security authority is obliged to pay the basic pensions to them. The
amounts based on the above calculations are recognised as liabilities in the accounting period in
which the service has been rendered by the employees, with a corresponding charge to the profit or
loss for the current period or the cost of relevant assets.
(c) Termination benefits
The Group provides compensation for terminating the employment relationship with employees
before the end of the employment contracts or as an offer to encourage employees to accept
voluntary redundancy before the end of the employment contracts. The Group recognises a liability
arising from compensation for termination of the employment relationship with employees, with a
corresponding charge to profit or loss for the current period at the earlier of the following dates: 1)
when the Group cannot unilaterally withdraw an employment termination plan or a curtailment
proposal; 2) when the Group recognises costs or expenses related to a restructuring that involves
the payment of termination benefits.
The termination benefits expected to be paid within one year since the balance sheet date are
classified as current liabilities.
143
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
2 Summary of significant accounting policies and accounting estimates (Cont’d)
(20) Employee benefits (Cont'd)
(d) Employee incentives
The Group provides incentive plans for on-the-job employees who comply with certain conditions,
and makes payments based on the schedule. Provisions for employee incentives are initially
measured at the best estimate necessary to settle the present obligation, and expensed as incurred.
The Group integrates separation rate, time value of money and other factors into account at initial
measurement. Where the effect of the time value of money is material, the best estimate is
determined by discounting the related future cash outflows. The increase in the discounted amount
of the provision arising from passage of time is expensed as incurred. The carrying amount of
provisions for employee incentives is reviewed at each balance sheet date and adjusted to reflect
the current best estimate.
(21) Dividend distribution
Cash dividends are recognised as liabilities in the period in which the dividends are approved by the
shareholders’ meeting.
(22) Provisions
Provisions are recognised when the Group has a present obligation, it is probable that an outflow of
economic benefits will be required to settle the obligation, and the amount of the obligation can be
measured reliably.
A provision is initially measured at the best estimate of the expenditure required to settle the related
present obligation. Factors surrounding a contingency, such as the risks, uncertainties and the time
value of money, are taken into account as a whole in reaching the best estimate of a provision. Where
the effect of the time value of money is material, the best estimate is determined by discounting the
related future cash outflows. The increase in the discounted amount of the provision arising from
passage of time is recognised as interest expense.
The carrying amount of provisions is reviewed at each balance sheet date and adjusted to reflect the
current best estimate.
The provisions expected to be settled within one year since the balance sheet date are classified as
current liabilities.
144
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
2 Summary of significant accounting policies and accounting estimates (Cont’d)
(23) Share-based payments
(a) Categories of share-based payments
A share-based payment is a transaction in which an enterprise grants equity instruments or assumes
liabilities that are determined based on equity instruments, in exchange for services rendered by
employees or another party. Equity instruments include the equity instruments that are linked to the
enterprise, the parent company of the enterprise or another accounting entity within the same group.
Share-based payments comprise equity-settled and cash-settled payments.
(b) Basis for determining the best estimate of exercisable equity instruments
At each balance sheet date in the vesting period, the Group would make best estimate in accordance
with the newly acquired information such as changes in the number of employees entitled to equity
instruments, and amend the number of exercisable equity instruments. On the exercisable date, the
ultimate estimated number of exercisable equity instruments coincides with the actual number.
(c) Accounting treatment of implementation of share-based payments
(i) Equity-settled share-based payment
The equity-settled share-based payment where the Group grants shares or other equity instruments
as a consideration in return for services, is measured at the fair value of the equity instruments at
the grant date. Where the share-based payment is not exercisable until the service in the vesting
period is completed or specified performance conditions are met, then at each balance sheet date
within the vesting period, the service obtained in the current period shall be included in relevant cost
or expenses and in capital reserve at the fair value of the equity instruments at the grant date based
on the best estimates of the quantity of exercisable equity instruments made by the Group, in
accordance with latest changes in the number of exercisable employees and subsequent information.
(ii) Cash-settled share-based payments
The cash-settled share-based payment where the Group calculates and determines the cash
payment or any other asset obligation on the basis of shares or other equity instruments in return for
services, is measured at the fair value of the liabilities calculated based on relevant equity
instruments. Where the share-based payment is not exercisable until the service in the vesting period
is completed or specified performance conditions are met, then at each balance sheet date within
the vesting period, the service obtained in the current period shall be included in cost or expenses
and in liabilities at the fair value of the Group’s liabilities based on the best estimates of the quantity
of exercisable equity instruments made by the Group. At each balance sheet date and settlement
date before relevant liabilities are settled, the fair value of the liabilities is remeasured and the
changes are recognised in profit or loss.
145
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
2 Summary of significant accounting policies and accounting estimates (Cont’d)
(24) Factoring
The factoring business of the Group mainly represents factoring with recourse. Factoring with
recourse is a kind of financing activity where the customer transfers the creditor's rights of accounts
receivable that meet relevant requirements and are accepted by the Group to the Group according
to the purchase and sale contract and relevant agreements, so as to obtain short-term trade financing,
and agrees to repurchase the financing business in full if the creditor's rights cannot be recovered in
full. The Group's factoring business is accounted for with Factoring receivables based on the amount
paid for the creditor’s rights of accounts receivable (Note 2(9)).
(25) Revenue recognition
The amount of revenue is determined in accordance with the fair value of the consideration received
or receivable for the sales of goods and services in the ordinary course of the Group’s activities.
Revenue is shown net of discounts and returns.
Revenue is recognised when the economic benefits associated with the transaction will flow to the
Group, the related revenue can be reliably measured, and the specific criteria of revenue recognition
have been met for each type of the Group’s activities as described below. The principles are set out
below:
(a) Rendering of services
Revenue from express delivery and supply chain services includes revenue from inbound and
outbound express delivery services; revenue from international freight forwarding agency services;
revenue from domestic and international transport services of aviation cargoes; revenue from
express delivery agency services; and revenue from providing solutions services. Besides the
aforesaid revenue, the Group’s revenue from rendering of services includes revenue from
communication service and maintenance service. Revenue from rendering of services is recognised
when the service is completed and the right to collect payment is obtained.
(b) Sales of goods
Revenue from the sales of goods is recognised when significant risks and rewards of ownership of
the goods are transferred to the buyer, the Group retains neither continuing managerial involvement
to the degree usually associated with ownership nor effective control over the goods sold, and the
economic benefit associated with the transaction will flow to the Group and the relevant revenue and
costs can be measured reliably.
(c) Interest income
The interest income from factoring business, loans to customers and advances business and bank
deposit are measured on the basis of time proportion and the effective interest rate.
146
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
2 Summary of significant accounting policies and accounting estimates (Cont’d)
(26) Government grants
Government grants refer to the monetary or non-monetary assets obtained by the Group from the
government, including tax return, financial subsidy, etc.
Government grants are recognised when the grants can be received and the Group can comply with
all attached conditions. If a government grant is a monetary asset, it will be measured at the amount
received or receivable. If a government grant is a non-monetary asset, it will be measured at its fair
value. If it is unable to obtain its fair value reliably, it will be measured at its nominal amount.
Government grants related to assets refer to the government grants which are obtained by the Group
for the purposes of purchase, construction or acquisition of the long-term assets. Government grants
related to income refer to the government grants other than those related to assets.
Government grants related to assets are recorded as deferred income and recognised in profit or
loss on a systemic basis over the useful lives of the assets. Government grants related to income
that compensate the future costs, expenses or losses are recorded as deferred income and
recognised in profit or loss, or deducted against related costs, expenses or losses in reporting the
related expenses; government grants related to income that compensate the incurred costs,
expenses or losses are recognised in profit or loss, or deducted against related costs, expenses or
losses directly in current period. The Group applies the presentation method consistently to the
similar government grants in the financial statements.
Government grants related to daily corporate activities are included in operating profit. Government
grants not related to daily corporate activities are included in non-operating income or expenses.
Policy-based loans with prime rate to the Group are recorded at actual amount of borrowing received,
and related borrowing costs are calculated with borrowing principal and policy-based prime rate.
Financial discounts directly received by the Group are deducted against related borrowing costs.
(27) Deferred tax assets and deferred tax liabilities
Deferred tax assets and deferred tax liabilities are calculated and recognised based on the
differences arising between the tax bases of assets and liabilities and their carrying amounts
(temporary differences). Deferred tax asset is recognised for the deductible tax losses that can be
carried forward to subsequent years for deduction of the taxable profit in accordance with the tax
laws. No deferred tax liability is recognised for a temporary difference arising from the initial
recognition of goodwill. No deferred tax asset or deferred tax liability is recognised for the temporary
differences resulting from the initial recognition of assets or liabilities due to a transaction other than
a business combination, which affects neither accounting profit nor taxable profit (or deductible tax
losses). At the balance sheet date, deferred tax assets and deferred tax liabilities are measured at
the tax rates that are expected to apply to the period when the asset is realised or the liability is
settled.
147
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
2 Summary of significant accounting policies and accounting estimates (Cont’d)
(27) Deferred tax assets and deferred tax liabilities (Cont’d)
Deferred tax assets are only recognised for deductible temporary differences, deductible tax losses
and tax credits to the extent that it is probable that taxable profit will be available in the future against
which the deductible temporary differences, deductible tax losses and tax credits can be utilised.
Deferred tax liabilities are recognised for temporary differences arising from investments in
subsidiaries, associates and joint ventures, except where the Group is able to control the timing of
reversal of the temporary difference, and it is probable that the temporary difference will not reverse
in the foreseeable future. When it is probable that the temporary differences arising from investments
in subsidiaries, associates and joint ventures will be reversed in the foreseeable future and that the
taxable profit will be available in the future against which the temporary differences can be utilised,
the corresponding deferred tax assets are recognised.
Deferred tax assets and deferred tax liabilities are offset when:
the deferred tax assets and liabilities are related to the same tax payer within the Group and
the same taxation authority; and,
that tax payer within the Group has a legally enforceable right to offset current tax assets
against current tax liabilities.
(28) Leases
A finance lease is a lease that transfers substantially all the risks and rewards incidental to ownership
of an asset. An operating lease is a lease other than a finance lease.
(a) Operating leases
Lease payments under an operating lease are recognised on a straight-line basis over the period of
the lease, and are either capitalised as part of the cost of related assets, or charged as an expense
for the current period.
Lease income under an operating lease is recognised on a straight-line basis over the period of the
lease.
(b) Finance leases (as the leasee)
The leased asset is recognised at the lower of the fair value of the leased asset and the present
value of the minimum lease payments. The difference between the recorded amount of the leased
asset and the minimum lease payments is accounted for as unrecognised finance charge and is
amortised using the effective interest method over the period of the lease. A long-term payable is
recorded at the amount equal to the minimum lease payments less the unrecognised finance charge.
148
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
2 Summary of significant accounting policies and accounting estimates (Cont’d)
(28) Leases (Cont’d)
(c) Finance leases (as the lessor)
At the commencement date of the lease term, lease finance receivables are accounted at the sum
of the minimum lease proceeds and the initial direct cost on the lease commencement date;
unrealised finance gains are recognised at the difference between the sum of the minimum lease
proceeds and the initial direct cost and its present value. Finance lease income is recognised using
the effective interest method over the lease term.
(29) Segment information
The Group identifies operating segments based on the internal organisation structure, management
requirements and internal reporting system, and discloses segment information of reportable
segments which is determined on the basis of operating segments.
An operating segment is a component of the Group that satisfies all of the following conditions: (1)
the component is able to earn revenue and incur expenses from its ordinary activities; (2) whose
operating results are regularly reviewed by the Group’s management to make decisions about
resources to be allocated to the segment and to assess its performance, and (3) for which the
information on financial position, operating results and cash flows is available to the Group. If two or
more operating segments have similar economic characteristics and satisfy certain conditions, they
are aggregated into one single operating segment.
(30) Critical accounting estimates and judgements
The Group continually evaluates the critical accounting estimates and key judgements applied based
on historical experience and other factors, including expectations of future events that are believed
to be reasonable.
(a) Critical accounting estimates and key assumptions
(i) Deferred tax assets
Deferred tax assets are recognised for the deductible tax losses and deductible temporary
differences that can be carried forward to subsequent years to the extent that it is probable that
taxable profit in the future will be available against which the deductible tax losses and deductible
temporary differences can be utilised. Whether to recognise the deferred tax assets arising from
deductible tax losses and deductible temporary differences largely depends on the judgement of
management on: (i) whether the accumulated deductible tax losses and deductible temporary
differences in prior years are still effective, and (ii) whether sufficient taxable income that can be used
to deduct deductible tax losses and deductible temporary differences can be obtained in the future
period. Where there is a difference between the situation and the original estimate, such difference
will affect the Group’s deferred tax assets and income tax expenses in the future period.
149
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
2 Summary of significant accounting policies and accounting estimates (Cont’d)
(30) Critical accounting estimates and judgements (Cont’d)
(a) Critical accounting estimates and key assumptions (Cont’d)
(ii) Risk of impairment on long-term assets
As described in Note 2(19), fixed assets with impairment indication, construction in progress,
intangible assets, investment properties measured using cost model, long-term equity investments
and other long-term assets are tested for impairment annually at the end of each year; and whether
with impairment indication, goodwill are tested for impairment annually at least.
When assessing whether the above assets are impaired, management mainly evaluates and
analyses: (1) whether events affecting asset impairment occurred; (2) whether the present value of
expected cash flows arising from the continuing use or disposal of the asset is lower than its carrying
amount; and (3) whether the significant assumptions used in the calculation of the present value of
the estimated cash flows are appropriate.
Relevant assumptions adopted by the Group to determine impairment, e.g. changes in assumptions
on discount rate and growth rate used to calculate the present value of future cash flows, may have
material impact on the present value used in the impairment test, and cause impairment in the above-
mentioned long-term assets of the Group.
(iii) Determination of fair value of financial instruments by valuation techniques
The fair value of a financial instrument that is not traded in an active market is determined by
valuation techniques. Valuation techniques primarily refer to direct comparison method and income
method, including reference to the prices used in recent orderly transactions between market
participants, reference to the current fair value of other financial instruments that are substantially
identical, discounted cash flow analysis, option pricing models, etc. Observable market information
is applied in valuation techniques to the extent possible. When observable market information is not
available, the management will make estimate of significant unobservable information included in the
valuation method. Different valuation techniques or inputs may lead to significant differences
between fair value estimates.
(iv) The assessment of the fair value of identifiable net assets in acquisition transactions and goodwill
recognition
As stated in Note 2(5)(b), identifiable net assets acquired in a business combination are recognised
at the fair value on the acquisition date, and if the combination cost is greater than the fair value of
the acquiree’s identifiable net assets on the acquisition date, the difference is recognised as goodwill.
The assessment of the fair value of identifiable assets and liabilities involves significant estimates
and judgements from management, in particular, the identification of intangible assets and the
evaluation of their fair values, thereby affecting the recognition of goodwill. As stated in Note 5(1)(b),
key assumptions used in the assessment of the fair value of intangible assets include revenue growth
rate, profit margin, assets contribution rate, customer churn rate, the remaining useful life of the
identified intangible assets, and discount rate, etc. Different input values in key assumptions may
result in significant differences in estimated fair value.
150
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
2 Summary of significant accounting policies and accounting estimates (Cont’d)
(30) Critical accounting estimates and judgements (Cont’d)
(b) Critical judgments in applying the accounting policies
(i) Judgement on significant influence of the Group over investees
The investees over which the Group has significant influence are accounted for under the equity
method. In judging the significant influence over an investee, the management considers based on
one or more of the following circumstances and all facts and circumstances: (1) the shareholding in
the investee; (2) whether it appoints representative in the Board of Directors or a similar authority of
the investee; (3) whether it participates in making decisions on financial and operating policies of the
investee; (4) whether it has significant transaction with the investee; (5) whether it assigns
management personnel to the investee; (6) whether it provides key technical materials to the
investee, and all facts and circumstances are considered.
(31) Changes in significant accounting policies
The Ministry of Finance released the revised CAS 22 - Recognition and Measurement of Financial
Instruments, CAS 23 - Transfer of Financial Assets and CAS 37 - Presentation of Financial
Instruments (hereinafter referred to as “new financial instruments standards”) in 2017 and the
Circular on the Amendment to the Formats of Corporate Financial Statements for the Year of 2019
(Cai Kuai [2019] No. 6) in 2019. The financial statements for the six months ended 30 June 2019 are
prepared in accordance with the above standards and circular, and the impacts are as follows:
(a) Revisions on the formats of corporate financial statements
(i) The impacts on the balance sheet are as follows:
i) The Group split the notes receivable and accounts receivable into separate items, which are
listed as notes receivable and accounts receivable. The comparative period financial
statements are restated.
ii) The Group collects the interest receivables originally included in other receivables based on the
effective interest method into the corresponding book balance of financial assets such as cash
at bank and on hand, factoring receivables, loans and advances,etc. The comparative period
financial statements are not restated.
iii) The Group collects the interest payables originally included in other payables based on the
effective interest method into the corresponding book balance of financial liabilities such as
short-term borrowings, other non-current assets, current portion of non-current liabilities, etc.
The comparative period financial statements are not restated.
(ii) The impacts on the cash flow statement are as follows:
Pursuant to the Circular on the Amendment to the Formats of Corporate Financial Statements for
the Year of 2018 (Cai Kuai [2018] No. 15) and relevant interpretations issued by the Ministry of
Finance in 2018, the Group reclassified the cash received from government grants related to assets
from cash received relating to other investment activities to cash received relating to other operating
activities for the six months ended 30 June 2018. The amount affected was RMB 37,982,039.01.
151
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
2 Summary of significant accounting policies and accounting estimates (Cont’d)
(31) Changes in significant accounting policies (Cont’d)
(b) Financial instruments
Since 1 January, 2019, the Group has adopted the new financial instrument standards. In accordance
with relevant provisions of the new financial instruments standards, the Group and the Company
recognised the cumulative effect of initially applying the standard as an adjustment to the opening
balance of retained earnings in 2019 and other relevant line items in the financial statements. The
comparatives were not restated.
During the comparative period, the accounting and presentation method is according to CAS 22 -
Recognition and Measurement of Financial Instruments and CAS 23 - Transfer of Financial Assets
issued by the Ministry of Finance in 2006, and CAS 37 - Presentation of Financial Instruments issued
by the Ministry of Finance in 2014 (hereinafter referred to as “original financial instruments
standards”).
(i) Impacts on financial statements as at 1 January,2019 at the date of initial application of new
financial instruments standards
Accounting policies under the new financial instruments standards are listed in Note 2(9). At the date
of initial application, the Group and the Company analyzed the business model of financial assets
and cash flow characteristics of financial assets, and evaluated the impact of the new financial
instrument standards on the financial statements of the Group and the Company.
152
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
2 Summary of significant accounting policies and accounting estimates (Cont’d)
(31) Changes in significant accounting policies (Cont’d)
(b) Financial instruments (Cont’d)
(i) Impacts on financial statements as at 1 January,2019 at the date of initial application of new financial instruments standards (Cont’d)
As at 1 January 2019, the financial assets presented in the Group’s consolidated financial statements were classified and measured in accordance with the
old/new financial instruments standards as follows:
Original financial instruments standards New financial instruments standards
Line item Measurement Carrying amount Line item Measurement Carrying amount
Cash at bank and on hand Amortised cost 16,131,119,850.56 Cash at bank and on hand Amortised cost 16,131,119,850.56
Financial assets at fair value
through profit or loss Fair value through profit or loss 14,441,978.09Financial assets held for trading Fair value through profit or loss 14,441,978.09
Notes receivable Amortised cost 20,958,746.36Notes receivable Amortised cost 20,958,746.36
Accounts receivable Amortised cost 7,352,877,748.87Accounts receivable Amortised cost 7,352,877,748.87
Factoring receivables Amortised cost 447,173,258.65Factoring receivables Amortised cost 447,173,258.65
Loans and advances Amortised cost 95,070,625.30Loans and advances Amortised cost 95,070,625.30
Other receivables Amortised cost 1,397,913,483.52Other receivables Amortised cost 1,397,913,483.52
Current portion of non-current Current portion of non-current
assets Amortised cost 123,197,466.26 assets Amortised cost 123,197,466.26
Other current assets Amortised cost 60,108,657.53
Note 1
Other current assets Amortised cost 564,456,452.05 Financial assets held for trading Fair value through profit or loss 504,347,794.52
Fair value through other
comprehensive income
(debt instruments) 178,403,812.08 Other non-current financial assets Fair value through profit or loss 178,403,812.08
Financial assets held for trading Fair value through profit or loss 72,373.06
Fair value through other Investments in other equity Fair value through other
comprehensive income instruments comprehensive income 2,725,569,435.71
(equity instruments) 3,070,327,696.74 Other non-current financial assets Fair value through profit or loss 344,685,887.97
Investments in other equity Fair value through other
Available-for-sale financial instruments comprehensive income 87,260,649.19
assets Cost (equity instruments) 174,795,551.45 Other non-current financial assets Fair value through profit or loss 105,000,000.00
Long-term receivables Amortised cost 571,493,790.74 Long-term receivables Amortised cost 571,493,790.74
Total 30,142,230,460.67 Total 30,159,695,558.41
153
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
2 Summary of significant accounting policies and accounting estimates (Cont’d)
(31) Changes in significant accounting policies (Cont’d)
(b) Financial instruments (Cont'd)
(i) Impacts of adopting new financial instruments standards on financial statements at the date of initial application (January 1, 2019) (Cont’d)
Note 1: As at 31 December 2018, other current assets held by the Group at amortised cost were banking wealth management products.
Due to the application of above revised standards, the affected amount for equity attributable to shareholders of the parent Company in the Group’s
consolidated financial statements amounted to RMB 17,465,097.74, including other comprehensive income of RMB 17,465,097.74, and the affected amount
in minority interests and retained earnings was zero.
As at 1 January 2019, the financial assets presented in the Company’s financial statements were classified and measured in accordance with the old/new
financial instruments standards as follows:
Original financial instruments standards New financial instruments standards
Line item Measurement Carrying amount Line item Measurement Carrying amount
Cash at bank and on hand Amortised cost 1,136,288,489.11 Cash at bank and on hand Amortised cost 1,136,288,489.11
Other receivables Amortised cost 9,542,466,126.10 Other receivables Amortised cost 9,542,466,126.10
Total 10,678,754,615.21 Total 10,678,754,615.21
Due to the above revised standards, the affected amount for equity of the Company and retained earnings was zero on 1 January 2019.
154
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
2 Summary of significant accounting policies and accounting estimates (Cont’d)
(31) Changes in significant accounting policies (Cont’d)
(b) Financial instruments (Cont'd)
(ii) As at 1 January 2019, the carrying amount of financial assets is reconciled from the original financial
instruments standards to the new financial instruments standards based on the new measurement:
Measurement under the new financial instruments standards
Financial assets at amortised cost Table 1
Financial assets at fair value through profit or loss Table 2
Financial assets at fair value through other comprehensive income Table 3
Table 1: Financial assets at amortised cost under the new financial instruments standards
Carrying amount
Consolidated Company
Cash at bank and on hand
As at 31 December 2018 16,131,119,850.56 1,136,288,489.11
As at 1 January 2019 16,131,119,850.56 1,136,288,489.11
Receivables
As at 31 December 2018 (Note 2) 10,008,685,119.70 9,542,466,126.10
As at 1 January 2019 10,008,685,119.70 9,542,466,126.10
Other current assets
As at 31 December 2018 564,456,452.05 -
Less: Transfer to financial assets at
fair value through profit or loss
(under the new financial
instruments standards) (Note 3) (504,347,794.52) -
As at 1 January 2019 60,108,657.53 -
Financial assets at amortised cost 26,199,913,627.79 10,678,754,615.21
Note 2: As at 31 December 2018 and 1 January 2019, receivables included notes receivable,
accounts receivable, factoring receivables, loans and advances, other receivables, current
portion of non-current assets and long-term receivables.
Note 3: As at 31 December 2018, the book value of structured deposits held by the Group was RMB
504,347,794.52. After the implementation of the new financial instrument standards, the
contractual cash flow characteristics of the structured deposits did not meet the basic lending
arrangements. Therefore, on 1 January 2019, the Group re-measured the structured
deposits from other current assets to fair value. Financial assets whose changes are included
in the current profit and loss are presented as financial assets held for trading.
155
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
2 Summary of significant accounting policies and accounting estimates (Cont’d)
(31) Changes in significant accounting policies (Cont’d)
(b) Financial instruments (Cont'd)
(ii) As at 1 January 2019, the carrying amount of financial assets is reconciled from the original financial
instruments standards to the new financial instruments standards based on the new measurement
(Cont’d):
Table 2: Financial assets at fair value through profit or loss under the new financial instruments
standards
Carrying amount
Consolidated
Financial assets held for trading
As at 31 December 2018 -
Add: Transfer from financial assets at fair value
through profit or loss (under the original
financial instruments standards) 14,441,978.09
Transfer from available-for-sale financial
assets measured at fair value (under
original financial instrument standards) 72,373.06
Remeasurement: From amortised cost to fair value (Note 3) 504,347,794.52
As at 1 January 2019 518,862,145.67
Other non-current financial assets
As at 31 December 2018 -
Add: Transfer from available-for-sale financial
assets measured at fair value (under
original financial instrument standards) (Note 4) 523,089,700.05
Remeasurement: From cost to fair value (Note 5) 105,000,000.00
As at 1 January 2019 628,089,700.05
Total financial assets at fair value through profit or
loss (under the new financial instruments
standards) 1,146,951,845.72
Note 4: As at 31 December 2018, the Group held asset-backed special scheme securities
(hereinafter referred to as the "Special Scheme") with book value of RMB 178,403,812.08.
Following the implementation of the new financial Instruments standards, the Group
reclassifies the Special Scheme from available-for-sale financial assets into financial assets
at fair value through profit or loss, and lists them as other non-current financial assets.
As at 31 December, 2018, the Group held Simple Agreement for Future Equity (hereinafter
referred to as the "SAFE") with book value of RMB 344,685,887.97. Following the
implementation of the new Financial Instruments Standards, the Group reclassifies it from
available-for-sale financial assets into financial assets at fair value through profit or loss, and
lists them as other non-current financial assets.
Note 5: As at 31December, 2018, the Group held an investment in industrial funds measure at cost
with a book value of RMB 105,000,000.00. Following the implementation of the new Financial
Instruments Standards, the Group recalculates such industrial fund investments from from
available-for-sale financial assets into financial assets at fair value through profit or loss, and
lists them as other non-current financial assets.
156
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
2 Summary of significant accounting policies and accounting estimates (Cont’d)
(31) Changes in significant accounting policies (Cont’d)
(b) Financial instruments (Cont'd)
(ii) As at 1 January 2019, the carrying amount of financial assets is reconciled from the original financial
instruments standards to the new financial instruments standards based on the new measurement
(Cont’d):
Table 3: Financial assets at fair value through other comprehensive income under the new financial
instruments standards
Carrying amount
Consolidated
Investments in other equity instruments
As at 31 December 2018 -
Add: Transfer from available-for-sale financial
assets measured at fair value (under the
original financial instruments standards) (Note 6) 2,725,569,435.71
Remeasurement: From cost to fair value (Note 7) 87,260,649.19
As at 1 January 2019 2,812,830,084.90
Total financial assets at fair value through other
comprehensive income (under the new financial
instruments standards) 2,812,830,084.90
Note 6: As at 31 December 2018, certain equity investments that were measured at fair value at an
amount of RMB 2,725,569,435.71 were designated to financial assets at fair value through
other comprehensive income on 1 January 2019 due to the Group’s strategic investment
consideration.
Note 7: As at 31 December 2018, certain equity investments that were measured at cost at an
amount of RMB 69,795,551.45 were designated to financial assets at fair value through other
comprehensive income on 1 January 2019 due to the Group’s strategic investment
consideration. The difference between fair value and original book value is RMB
17,465,097.74, adjusting other comprehensive income at the beginning of the period.
157
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
2 Summary of significant accounting policies and accounting estimates (Cont’d)
(31) Changes in significant accounting policies (Cont’d)
(b) Financial instruments (Cont'd)
(iii) As at 1 January 2019, the Group’s reconciliation from the provision for impairment of financial assets
under the original financial instruments standards to loss provision under the new financial
instruments standards is as below:
Loss provision Loss provision
under the original under the new
financial financial
instruments instruments
Measurement standards Remeasurement standards
Consolidated Consolidated
Financial assets at amortised cost -
Provision for impairment of
accounts receivable 79,456,513.05 - 79,456,513.05
Provision for impairment of other
receivables 12,857,692.63 - 12,857,692.63
Provision for impairment of long-
term receivables 11,234,212.14 - 11,234,212.14
Provision for impairment of
Factoring receivables 9,655,084.16 - 9,655,084.16
Provision for impairment of loans
and advances 11,158,725.91 - 11,158,725.91
Financial assets at fair value through
other comprehensive income -
Provision for impairment of
available-for-sale financial
assets 4,596,187.92 (4,596,187.92) -
Total 128,958,415.81 (4,596,187.92) 124,362,227.89
Loss provision under Loss provision under
the original financial the new financial
Measurement instruments standards Remeasurement instruments standards
Company Company
Financial assets at amortised cost -
Provision for impairment of other
receivables - - -
158
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
3 Taxation
The main categories and rates of taxes applicable to the Group are set out below:
Category Tax rate Tax base
Enterprise income tax Note (1) Taxable income
Value-added tax (“VAT”) Note (2) Taxable value-added amount (Tax payable is
calculated using the taxable sales
amount/taxable service income multiplied by
the applicable tax rate less deductible VAT
input of the current period or taxable turnover
amount multiplied by the VAT rate)
City maintenance and 7%, 5%, 1% Amount of VAT paid
construction tax
Educational surcharge 3% Amount of VAT paid
Local educational 2% Amount of VAT paid
surcharge
Customs duty At applicable tax rate Customs dutiable value through examination and
approval of the Customs
In addition, pursuant to the Interim Measures for the Collection, Use and Management of the Civil
Aviation Development Fund (Cai Zong [2012] No. 17) issued by the Ministry of Finance, SF Airlines
Company Limited (“SF Airlines”) pays the civil aviation development fund based on classification of
flight routes, maximum take-off weight, flight mileage and applicable collection standards, and
includes such payment in cost.
159
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
3 Taxation (Cont'd)
(1) Enterprise income tax
Pursuant to the Notice on the Deduction of Enterprise Income Tax Policies for Equipment and
Apparatus (Cai Shui [2018] No. 54) and related regulations issued by the State Administration of
Taxation, the cost of equipment purchased less than RMB 5,000,000 from 1 January 2018 to 31
December 2020 can be deducted against taxable on a straight-line basis over income in the following
month after the assets are put into use, instead of being deducted annually in it’s useful life.
The subsidiaries entitled to the preferential tax are presented as follows:
(a) Pursuant to the Notice on the Policies and Catalogue of Income Tax Preferences for Enterprises in
Guangdong Hengqin New Area, Fujian Pingtan Comprehensive Experimental Zone, and Shenzhen
Qianhai Shenzhen-Hong Kong Modern Service Industry Cooperative Zone (Cai Shui [2014] No. 26)
jointly issued by the Ministry of Finance and the State Administration of Taxation, the Company’s
subsidiaries as below are subject to enterprise income tax at the preferential rate of 15% from 2014
to 2020.
Name of subsidiary Local statutory tax rate Preferential tax rate
Guangdong S.F. E-commerce Co., Ltd. 25% 15%
Shenzhen S.F. Supply Chain Co., Ltd. 25% 15%
Shenzhen S.F. International Logistics Co., Ltd. 25% 15%
Shenzhen S.F. DDJ Technology Co., Ltd. 25% 15%
Shenzhen S.F. Information Service Technology Co.,
Ltd 25% 15%
(b) Pursuant to the Notice on Tax Policy Issues Concerning Further Implementing the Western China
Development Strategy (Cai Shui [2011] No. 58) and the Notice on Issues Concerning the
Implementation of the Tax Policies for the Development of Western China by Ganzhou City (Cai Shui
[2013] No. 4) jointly issued by the Ministry of Finance, the General Administration of Customs and
the State Administration of Taxation, the Company’s subsidiaries as below are subject to enterprise
income tax at the preferential rate of 15% up to 2020:
Name of subsidiary Local statutory tax rate Preferential tax rate
S.F. Express (Chongqing) Co., Ltd. 25% 15%
Guizhou S.F. Express Co., Ltd. 25% 15%
Yunnan S.F. Express Co., Ltd. 25% 15%
Sichuan S.F. Express Co., Ltd. 25% 15%
Xi'an S.F. Express Co., Ltd. 25% 15%
Guangxi S.F. Express Co., Ltd. 25% 15%
S.F. Express (Ningxia) Co., Ltd. 25% 15%
Inner Mongolia S.F. Express Co., Ltd. 25% 15%
Xinjiang S.F. Express Co., Ltd. 25% 15%
Qinghai S.F. Express Co., Ltd. 25% 15%
Lanzhou S.F. Express Co., Ltd. 25% 15%
Ganzhou S.F. Express Co., Ltd. 25% 15%
Xi'an Shunlu Logistics Co., Ltd. 25% 15%
Chongqing Huiyifeng Logistics Co., Ltd. 25% 15%
Chengdu Taishun Logistics Co., Ltd. 25% 15%
Xi'an SF Information Service Co., Ltd. 25% 15%
160
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
3 Taxation (Cont'd)
(1) Enterprise income tax (Cont'd)
(c) Pursuant to the Notice of the People's Government of the Tibet Autonomous Region on Issuing the
Regulations on Preferential Policies for Investment Promotion of the Tibet Autonomous Region
(Provisional) (Zang Zheng Fa [2018] No. 25), the Company’s subsidiaries, which are registered in
Tibet Autonomous Region, are subject to enterprise income tax at the preferential rate of 15% as
stipulated in the Western China Development Strategy from 1 January 2018 to 31 December 2020,
and are temporarily exempt from the region’s share of entitlement to enterprise income tax payable
from 1 January 2018 to 31 December 2021. In other words, the region’s share of entitlement to 40%
in the enterprise income tax payable at the rate of 15% is exempted during the above period.
Name of subsidiary Local statutory tax rate Preferential tax rate
Tibet S.F. Express Co., Ltd. 25% 9%
(d) In accordance with Article 2 of the Notice on Implementing the Inclusive Tax Deduction and
Exemption Policies for Micro and Small Enterprises (Cai Shui [2019] No. 13) jointly issued by the
Ministry of Finance and the State Administration of Taxation, the taxable income of the Company’s
subsidiaries below is recognised at 50% of income and they are subject to enterprise income tax at
the rate of 20%:
Name of subsidiary Local statutory tax rate Preferential tax rate
Weifang Fengtai E-Commerce Industrial Park
Management Ltd. 25% 20%
Ezhou Shunlu Logistics Co., Ltd. 25% 20%
Shenzhen S.F. Research Institution Co., Ltd. 25% 20%
Shenzhen Fenglian Technology Co., Ltd. 25% 20%
Ezhou Fengtai Qisheng Logistics Development Co.,
Ltd. 25% 20%
Ezhou Fengyutai Helin Logistics Development Co.,
Ltd. 25% 20%
Shenzhen Youli Technology Co., Ltd. 25% 20%
Zhengzhou Shuncheng Logistics Co., Ltd. 25% 20%
Shanghai Fengtai Yuanxing Property Management
Service Co., Ltd. 25% 20%
(e) In accordance with Article 1 of the Notice on Implementing the Inclusive Tax Deduction and
Exemption Policies for Micro and Small Enterprises (Cai Shui [2019] No. 13) jointly issued by the
Ministry of Finance and the State Administration of Taxation, the taxable income of the Company and
its subsidiaries below is recognised at 25% of income and they are subject to enterprise income tax
at the rate of 20%:
Name of subsidiary Local statutory tax rate Preferential tax rate
Ningbo Shuncheng Logistics Co., Ltd. 25% 20%
Hangzhou Shunyifeng Import & Export Trading Co
Ltd. 25% 20%
Shanghai Chengbai Technology Co., Ltd. 25% 20%
Shenyang Fengtai E-Commerce Industrial Park
Management Ltd. 25% 20%
Guizhou Shunlu Logistics Co., Ltd. 25% 20%
161
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
3 Taxation (Cont'd)
(1) Enterprise income tax (Cont'd)
(f) Pursuant to the Notice on Enterprise Income Tax Policies for Further Encouraging the Development
of Software and Integrated Circuit Industries (Cai Shui [2012] No. 27) jointly issued by the Ministry
of Finance and the State Administration of Taxation, the Notice on the Issues of the Policies of
Enterprise Income Tax Preferences for Software and Integrated Circuit Industries (Cai Shui [2016]
No. 49) jointly issued by the Ministry of Finance, the State Administration of Taxation, National
Development and Reform Commission and the Ministry of Industry and Information Technology, and
the Announcement on Issuing the Revised Measures for the Matters concerning Preferential
Enterprise Income Tax Policies (Announcement [2018]) No. 23) issued by the State Administration
of Taxation, and through filing with Shenzhen Nanshan District Taxation Bureau, the Company’s
subsidiaries below were subject to enterprise income tax at the preferential rate of 10% from 1
January 2017 as a key software enterprise under the national planning and layout:
Name of subsidiary Local statutory tax rate Preferential tax rate
SF Technology Co., Ltd. (“SF Technology”) 25% 10%
(g) As per Article 28 of the Enterprise Income Tax Law of the People's Republic of China, the high and
new technology enterprises eligible for key support from the State are entitled to a reduced tax rate
of 15%. Through filing with local taxation bureaus, the Company’s subsidiaries as below are qualified
as high and new technology enterprises, and entitled to the preferential tax rates for high and new
technology enterprises eligible for key support from the State. The subsidiaries as below were subject
to a tax rate of 15% in the reporting period.
Name of subsidiary Local statutory tax rate Preferential tax rate
S.F. Hengtong Pay Co., Ltd. 25% 15%
Beijing Shunfeng Deda Logistics Technology
Co., Ltd(“Beijing Deda”) 25% 15%
In addition, the Company’s subsidiaries located in Hong Kong, Singapore, Japan, Korea and USA
are subject to enterprise income tax at the rates of 16.5%, 17%, 23.2%, 22% and 21% respectively
in the reporting period.
In addition to the above subsidiaries, the Company and its other major subsidiaries are subject to
enterprise income tax at the rate of 25%.
162
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
3 Taxation (Cont'd)
(2) VAT
According to different businesses, VAT rates applicable to the Group include:
Business type Applicable VAT rates
Sales of goods and leasing (i) 17% (before 1 May 2018),
16% (from 1 May 2018 to 31 March 2019),
13% (implement from 1 April 2019)
Transportation service (i) 11% (before 1 May 2018),
10% (from 1 May 2018 to 31 March 2019),
9% (implement from 1 April 2019)
Logistics supporting service 6%
R&D and technical service 6%
Information technology service 6%
Property leases (i) 11% (before 1 May 2018),
10% (from 1 May 2018 to 31 March 2019),
9% (implement from 1 April 2019)
(i) Pursuant to the Notice on Adjustment of VAT Tax Rate (Cai Shui [2018] No. 32), taxpayers who
engage in VAT taxable sales or imported goods are subject to 17% and 11% tax rates, and the tax
rates are adjusted to 16% and 10% respectively. The aforesaid circular has been effective since 1
May 2018.
Pursuant to the Announcement on Policies for Deepening the Value-Added Tax Reform (Cai Shui
[2019] No. 39), the VAT taxable sales or goods import, which were subject to the tax rates of 16%
and 10%, are subject to 13% and 9% respectively upon adjustment. The aforesaid circular has been
effective since 1 April 2019.
163
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements
(1) Cash at bank and on hand
30 June 2019 31 December 2018
Cash on hand 925,135.67 1,333,057.53
Cash at bank (a) 11,793,650,488.63 15,181,387,817.87
Balances with central bank from Group
Finance Company 596,684,272.44 886,346,294.94
Including: Balances with central bank -
statutory reserve (b) 592,676,085.96 873,705,941.98
Balances with central bank -
excess reserve (c) 4,008,186.48 12,640,352.96
Other cash balances (a) 95,958,058.41 62,052,680.22
12,487,217,955.15 16,131,119,850.56
Including: Total overseas deposits 1,418,614,001.59 1,539,296,677.54
(a) As at 30 June 2019, RMB 32,247.00 (31 December 2018: RMB 139,907.00) of the other cash
balances represented guarantee deposits with banks for letter of guarantee and was restricted. As
at 31 December 2018, the secured bank borrowings of RMB 86,400,000.00 were pledged by the
Group’s fixed deposits of RMB 30,000,000.00, and such pledge was released within the reporting
period.
(b) On 18 September 2016, Taisen Holdings incorporated S.F. Holding Group Finance Co., Ltd.
(hereinafter “Group Finance Company”). Statutory reserve of Group Finance Company deposited
with the central bank represents required statutory reserve paid by financial enterprises in the
People's Bank of China (“PBOC”) at 6% of deposits from customers denominated in RMB. Statutory
reserve deposits are not available for use by the Group in its day to day operations, which are
restricted cash.
(c) Surplus reserve of Group Finance Company deposited with the central bank represents the excess
over the required statutory reserve paid by financial institutions in the central bank, and it is bank
deposit that can be readily drawn on demand.
(2) Financial assets at fair value through profit or loss
31 December 2018
Investments in equity instrument held for
trading 13,715,336.78
Forward interest rate swap contracts 726,641.31
14,441,978.09
(3) Financial assets held for trading
30 June 2019
Structural deposits 2,509,960,802.13
Others 15,803,836.66
2,525,764,638.79
164
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(4) Accounts receivable
30 June 2019 31 December 2018
Accounts receivable 8,594,782,325.79 7,432,334,261.92
Less: Provision for bad debts (156,621,134.24) (79,456,513.05)
8,438,161,191.55 7,352,877,748.87
The Group adopts regular settlement method for express & logistics comprehensive services provided
to some customers. At each month-end, the outstanding part becomes accounts receivable.
(a) The ageing of accounts receivable is analysed below:
30 June 2019 31 December 2018
Within 1 year (inclusive) 8,484,572,828.94 7,359,283,705.95
1 - 2 years (inclusive) 62,814,614.58 53,918,666.20
Over 2 years 47,394,882.27 19,131,889.77
8,594,782,325.79 7,432,334,261.92
(b) The Group’s accounts receivable comprise the accounts receivable from the customers under
monthly settlement. As at 30 June 2019, the five largest amounts of accounts receivable aggregated
by debtors were summarised and analysed as follows:
30 June 2019
Amount of provision
Amount for bad debts % of total balance
Sum of the five largest
accounts receivable 736,619,491.42 (3,683,097.46) 8.57%
165
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(4) Accounts receivable (Cont’d)
(c) Provision for bad debts
Under the new financial instrument standards, the Group always prepares losses for accounts
receivable based on the expected credit losses for the entire duration.
As at 30 June 2019, accounts receivable for which the related provision for bad debts is provided on
the individual basis are analysed as follows:
Lifetime
expected credit Provision for bad
Ending balance loss rate debts Reason
Receivables The debtor
from encountered
related financial
parties 13,255,247.18 100.00% (13,255,247.18) difficulties, etc.
Receivables
from non-
related
parties 93,265,994.45 100.00% (93,265,994.45)
106,521,241.63 (106,521,241.63)
As at 30 June 2019, accounts receivable for which the related provision for bad debts was provided
on the grouping basis were analysed as follows:
30 June 2019
Ending balance Provision for bad debts
Lifetime expected
Amount credit loss rate Amount
The group of
related parties 290,106,155.59 - -
The group of non-
related parties 8,198,154,928.57 0.61% (50,099,892.61)
8,488,261,084.16 (50,099,892.61)
Under the revised financial instrument standards, the Group's provision for bad debts of accounts
receivable is analyzed as follows:
As at 31 December 2018
Ending balance Provision for bad debts
Amount % of total balance Amount Percentage
Provision for bad debts on individual
basis
Receivables from related parties 13,261,064.53 0.18% (13,261,064.53) 100.00%
Receivables from non-related
parties 23,795,014.21 0.32% (23,795,014.21) 100.00%
Provision for bad debts on grouping
basis
Receivables from related parties 174,836,472.94 2.35% - -
Receivables from non-related
parties 7,220,441,710.24 97.15% (42,400,434.31) 0.59%
7,432,334,261.92 100.00% (79,456,513.05) 1.07%
166
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(4) Accounts receivable (Cont’d)
(c) Provision for bad debts(Cont’d)
For the six months ended 30 June 2019, the Group’s provision for bad debts amounted to RMB
79,264,307.29, and there was no provision for bad debts reversed(Note 4(24)).
For the six months ended 30 June 2019, the provision for bad debts of accounts receivable that was
written off amounted to RMB 14,624,394.24 and no accounts receivable with amounts that are
individually significant were written off(Note 4(24)).
(5) Other receivables
30 June 2019 31 December 2018
Current accounts receivable from related
parties (Note 8(4)(c)) 292,919,000.57 188,372,946.30
Guarantees and deposits 629,903,832.40 567,057,200.70
Cash on delivery service 222,195,652.03 180,008,388.19
Equity transfer receivable 106,979,595.37 -
Employee borrowings and advances 100,562,324.57 117,914,472.13
Entrusted loans receivable 27,000,000.00 27,000,000.00
Social insurance premium prepaid 16,998,234.49 17,332,616.45
Interest receivable - 47,810,100.13
Others 336,585,963.19 265,275,452.25
1,733,144,602.62 1,410,771,176.15
Less: Provision for bad debts (17,497,977.70) (12,857,692.63)
1,715,646,624.92 1,397,913,483.52
(a) The ageing of other receivables is analysed as follows:
30 June 2019 31 December 2018
Within 1 year (inclusive) 1,358,279,331.12 1,065,321,416.55
1 - 2 years (inclusive) 172,364,701.01 136,307,658.64
Over 2 years 202,500,570.49 209,142,100.96
1,733,144,602.62 1,410,771,176.15
167
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(5) Other receivables (Cont’d)
(b) Provision for losses:
(i) Under the new financial instrument standard, the Group measures the loss for other receivables based on the expected credit losses for the next twelve
months or the entire duration.
Stage 1 Stage 3
Expected credit losses in the following 12 Lifetime expected credit losses (credit
months (grouping) impaired) Total
Provision for bad Provision for bad Provision for
Ending balance debts Ending balance debts bad debts
1 January 2019 1,383,519,550.55 (4,506,067.03) 27,251,625.60 (8,351,625.60) (12,857,692.63)
Increase in the current
period 330,783,096.97 (13,049,955.57) - - (13,049,955.57)
Write-off in the current
period (8,409,670.50) 8,409,670.50 - - 8,409,670.50
30 June 2019 1,705,892,977.02 (9,146,352.10) 27,251,625.60 (8,351,625.60) (17,497,977.70)
168
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(5) Other receivables (Cont’d)
(b) Provision for losses (Cont’d):
As at 30 June 2019, for other receivables at stage 1, the related provision for bad debts was analysed
below:
Expected credit loss rate Provision for bad
Ending balance in the following 12 months debts Reason
Provided on the grouping basis:
Related party grouping 292,919,000.57 - - Not applicable
Expected credit
Non-related party grouping 1,412,973,976.45 0.65% (9,146,352.10) loss method
1,705,892,977.02 (9,146,352.10)
As at 30 June 2019, the Group did not have any other receivables at stage 2.
As at 30 June 2019, for other receivables at stage 3, the related provision for bad debts was analysed
below:
Lifetime expected Provision for bad
Ending balance credit losses debts Reason
Provided on the individual
basis:
The debtor encountered
Entrusted loans receivable 27,000,000.00 30.00% (8,100,000.00) financial difficulties
The debtor encountered
Others 251,625.60 100.00% (251,625.60) financial difficulties
27,251,625.60 (8,351,625.60)
(ii) Under the revised financial instrument standards, the provision for bad debts of other receivables
accrued by the Group is as follows:
As at 31 December 2018
Ending balance Provision for bad debts
% of total
Amount balance Amount Percentage
Provision for bad debts on
individual basis
Receivables from related
parties 251,625.60 0.02% (251,625.60) 100.00%
Receivables from non-related
parties 27,000,000.00 1.92% (8,100,000.00) 30.00%
Provision for bad debts on
grouping basis
Receivables from related
parties 188,121,320.70 13.33% - -
Receivables from non-related
parties 1,195,398,229.85 84.73% (4,506,067.03) 0.38%
1,410,771,176.15 100.00% (12,857,692.63) 0.91%
(c) For the six months ended 30 June 2019, the Group’s provision for bad debts amounted to RMB
13,044,791.88, and there was no provision for bad debts reversed (Note 4(24)).
(d) For the six months ended 30 June 2019, the Group’s other receivables that were written off amounted
to RMB 8,409,670.50, and no other receivables with amounts that are individually significant were
written off(Note 4(24)).
169
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(5) Other receivables (Cont’d)
(e) As at 30 June 2019, the five largest other receivables aggregated by debtor were summarised and
analysed as follows:
30 June 2019
Amount of provision
Nature of business Ageing Amount for bad debts % of total
balance
Shenzhen Hive Box Technology Co.,
Ltd. (“Hive Box Technology”) (Note Agency collection Within 1
8(4)(c)) and payment year 189,018,739.98 - 10.91%
Shurui (Xiamen) Science and Equity transfer Within 1
Technology Co., Ltd. receivable year 101,500,000.00 (507,500.00) 5.86%
MHK Restaurants Limited”) (Note Agency collection Within 1
8(4)(c)) and payment year 54,008,413.33 - 3.12%
Within 1
Hangzhou International Airport Airlines subsidy year 49,000,000.00 (245,000.00) 2.83%
Guangdong Baolichi New Energy Deposit and Within 2
Automobile Service Co., Ltd. security deposit year 42,000,000.00 (210,000.00) 2.42%
435,527,153.31 (962,500.00) 25.14%
170
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(6) Advances to suppliers
(a) The ageing of advances to suppliers is analysed below:
30 June 2019 31 December 2018
Ageing Amount % of total balance Amount % of total balance
Within 1 year (inclusive) 2,397,061,306.56 98.01% 2,465,558,542.39 97.96%
1 - 2 years (inclusive) 32,815,207.44 1.34% 20,098,754.74 0.80%
Over 2 years 15,891,876.66 0.65% 31,193,904.22 1.24%
2,445,768,390.66 100.00% 2,516,851,201.35 100.00%
As at 30 June 2019, advances to suppliers with ageing over one year were mainly prepaid property rents, fuel cards, etc. As relevant business transactions
were not completed, the amounts were not settled yet.
171
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(6) Advances to suppliers (Cont'd)
(b) As at 30 June 2019, the amount of top five advances to suppliers was analysed as follows:
30 June 2019
Amount % of total balance
Sum of the five largest advances to suppliers 466,378,919.43 19.07%
(7) Factoring receivables
As at 30 June 2019 and 31 December 2018, Factoring receivables were from the subsidiary
Shenzhen Shuncheng Lefeng Factoring Co., Ltd (“Lefeng Factoring”).
30 June 2019 31 December 2018
Factoring receivables 149,670,834.23 456,828,342.81
Less: Provision for bad debts (62,735,595.93) (9,655,084.16)
86,935,238.30 447,173,258.65
(a) Factoring receivables are disclosed by category as follows:
30 June 2019
Provision for bad
Amount Proportion debts Net amount
Factoring with
recourse 149,670,834.23 100.00% (62,735,595.93) 86,935,238.30
31 December 2018
Provision for bad
Amount Proportion debts Net amount
Factoring with
recourse 456,828,342.81 100.00% (9,655,084.16) 447,173,258.65
172
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(7) Factoring receivables (Cont’d)
(b) As at 30 June 2019, the Group's overdue factoring totaled RMB 140,658,622.66 (31 December 2018:
RMB 152,268,731.29), with an age of less than one year.
(c) For the six months ended 30 June 2019, the Group’s provision for bad debts and bad debts reversed
amounted to RMB 58,118,407.06 and RMB 5,037,895.29 respectively, and there was no provision
for bad debts written-off (Note 4(24)).
(d) As at 30 June 2019, the Group’s Factoring receivables that are individually for which related provision
for bad debts is provided on individual basis amounted to RMB 122,527,142.92, and the related
provision for bad debts RMB 61,263,571.46.
(8) Loans and advances
As at 30 June 2019 and 31 December 2018, loans and advances were all from S.F. Finance (Hong
Kong) Limited (“S.F. Finance”), which is a subsidiary of the Group in Hong Kong.
(a) Loans and advances by individual and enterprise
30 June 2019 31 December 2018
Personal loans 134,667.77 178,001.67
Enterprise loans
Non-related party loans 101,238,468.43 106,051,349.54
Loans and advances - total 101,373,136.20 106,229,351.21
Less: Provision for loan losses (14,137,195.17) (11,158,725.91)
Loans and advances - net 87,235,941.03 95,070,625.30
173
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(8) Loans and advances (Cont’d)
(b) Loans and advances analysed by type of collateral
30 June 2019 31 December 2018
Unsecured loans 94,198,708.43 99,024,069.54
Guaranteed loans 7,174,427.77 7,205,281.67
Loans and advances - total 101,373,136.20 106,229,351.21
(c) Overdue loans are presented by pass-due ageing as follows:
30 June 2019
Within 3 3 months - 1
months year 1 - 3 years Over 3 years Total
Unsecured loans 515,254.11 2,425,415.55 - - 2,940,669.66
31 December 2018
Within 3 3 months - 1
months year 1 - 3 years Over 3 years Total
Unsecured loans 436,925.53 226,867.83 - - 663,793.36
(d) For the six months ended 30 June 2019, the Group’s provision for bad debts and bad debts written-
off amounted to RMB 3,475,742.51 and RMB 497,273.25 respectively, and there was no provision
for bad debts reversed (Note 4(24)).
(e) As at 30 June 2019, the Group had no loans of which related provision for bad debts was provided
on individual basis.
174
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(9) Inventories
Inventories are summarised by category as follows:
30 June 2019
Provision for decline
in the value of
Ending balance inventories Carrying amount
Raw materials in stock 348,000,845.70 - 348,000,845.70
Aviation consumables 172,181,040.62 - 172,181,040.62
Finished goods 110,680,654.39 - 110,680,654.39
Properties under
development 79,078,000.00 - 79,078,000.00
Low-value consumables 25,172,360.84 - 25,172,360.84
735,112,901.55 - 735,112,901.55
31 December 2018
Provision for decline
in the value of
Ending balance inventories Carrying amount
Raw materials in stock 426,581,892.04 - 426,581,892.04
Finished goods 128,321,781.99 - 128,321,781.99
Aviation consumables 125,375,475.35 - 125,375,475.35
Properties under
development 79,078,000.00 - 79,078,000.00
Low-value consumables 34,613,558.73 - 34,613,558.73
Others 24,079,316.91 - 24,079,316.91
818,050,025.02 - 818,050,025.02
(10) Other current assets
30 June 2019 31 December 2018
Bank wealth management products (i) 2,418,220,958.88 564,456,452.05
Input VAT to be offset 2,419,809,267.10 2,345,446,399.93
Prepaid enterprise income tax 101,190,094.81 87,966,412.84
Others 1,277,361.93 6,090,309.48
4,940,497,682.72 3,003,959,574.30
(i) The investment cycle of bank wealth management products is generally within 1 month to 3 months.
According to the contract, the contractual cash flow characteristics are in line with the basic loan
arrangement and are therefore measured at amortized cost.
175
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(11) Available-for-sale financial assets
Under the original financial instrument standards, the Group's available-for-sale financial assets are
analysed as follows:
31 December 2018
Measured at fair value
- Available-for-sale debt instruments (a) 178,403,812.08
- Available-for-sale equity instruments (b) 3,070,327,696.74
Measured at cost
- Available-for-sale equity instruments 174,795,551.45
3,423,527,060.27
(a) Available-for-sale debt instruments measured at fair value:
31 December 2018
Available-for-sale debt instruments
- Fair value 178,403,812.08
- Amortised cost 183,000,000.00
- Accumulated provision for impairment (4,596,187.92)
(b) Available-for-sale equity instruments measured at fair value:
31 December 2018
Available-for-sale equity instruments
- Fair value 3,070,327,696.74
- Cost 2,718,113,957.55
- Accumulated amount recognised in
other comprehensive income 352,213,739.19
- Accumulated provision for impairment -
176
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(12) Long-term receivables
30 June 2019 31 December 2018
Finance lease receivables (a) - -
Interest-free loans to employees
receivable (b) 228,011,459.71 324,736,080.74
Deposit for house purchase 246,757,710.00 246,757,710.00
474,769,169.71 571,493,790.74
(a) Finance lease receivables
30 June 2019 31 December 2018
Finance lease receivables 30,620,458.62 73,046,804.28
Less: Unrealised financing income (1,198,046.77) (4,121,125.88)
Amortised cost of finance lease receivables 29,422,411.85 68,925,678.40
Less: Current portion of finance lease
receivables (18,541,854.93) (57,691,466.26)
Provision for bad debts (10,880,556.92) (11,234,212.14)
- -
Finance lease receivables that should be received after the balance sheet date are as follows:
30 June 2019 31 December 2018
% of total Provision for % of total Provision for
Amount balance bad debts Amount balance bad debts
Within 1
year 30,620,458.62 100.00% (10,880,556.92) 73,046,804.28 100.00% (11,234,212.14)
177
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(12) Long-term receivables (Cont’d)
(b) Interest-free loans to employees receivable
30 June 2019 31 December 2018
Interest-free loans to employees receivable 366,980,000.00 435,850,000.00
Less: Prepaid discount interest (36,580,984.73) (45,607,919.26)
Amortised cost of interest-free loans to
employees 330,399,015.27 390,242,080.74
Less: Current portion of interest-free loans to
employees (102,387,555.56) (65,506,000.00)
Provision for bad debts - -
228,011,459.71 324,736,080.74
As at 30 June 2019, interest-free loans to employees receivable the interest-free loans to qualified
employees with a term of 5 years.
(13) Long-term equity investments
30 June 2019 31 December 2018
Cost:
Joint ventures 1,341,533,741.80 1,326,581,550.05
Associates 984,020,811.60 934,446,087.67
2,325,554,553.40 2,261,027,637.72
Less: Provision for impairment of long-term
equity investments
- Joint ventures (30,718,697.26) (28,236,883.66)
- Associates (43,988,895.88) (29,359,632.03)
(74,707,593.14) (57,596,515.69)
Joint ventures (a) 1,310,815,044.54 1,298,344,666.39
Associates (b) 940,031,915.72 905,086,455.64
2,250,846,960.26 2,203,431,122.03
178
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(13) Long-term equity investments (Cont’d)
(a) Joint ventures
Movements in the current period
Exchange
differences on Balance of
translation of provision for
Carrying amount as Share of net foreign currency Accrual of impairment loss
at 31 December Increase in Decrease in profit/(loss) under financial Other changes in provision for Carrying amount as at the end of the
2018 investments investments equity method statements equity (i) impairment loss at 30 June 2019 period
Hubei International Logistics Airport Co., Ltd. 919,822,243.93 - - (3,012,908.47) - - - 916,809,335.46 -
ZBHA Group Co., Ltd. (“ZBHA”) 207,521,652.37 - - 1,877,757.19 - - - 209,399,409.56 -
Beijing Wulian Shuntong Technology Co., Ltd. 30,000,000.00 40,000,000.00 - (7,490,933.68) - - - 62,509,066.32 -
Hubei International Aviation Industry Metro
Development Co., Ltd. 40,206,913.74 - - 2,412.05 - - - 40,209,325.79 -
Zhongyunda Aviation Ground Services Co., Ltd. 30,049,574.25 - - (4,275,768.23) - - - 25,773,806.02 -
POST11O 15,921,028.91 - - 6,865,530.12 - - - 22,786,559.03 -
Beijing Shunhetongxin Technology Co., Ltd. 15,145,429.40 - - (3,921,499.47) - - - 11,223,929.93 -
Shenzhen Shenghai Information Service Co., Ltd.
(“Shenghai Information”) 6,770,965.97 - - 493,158.21 - - - 7,264,124.18 -
CR-SF International Express Co., Ltd. 4,858,622.97 - - 2,009,488.32 - - - 6,868,111.29 -
Wenzhou Fengbaoke Technology Co., Ltd. 2,000,000.00 - - (397,818.79) - 842,393.75 - 2,444,574.96 -
Shanghai Geling Information Technology Co., Ltd.
(“Geling Information”) 1,842,672.10 - - 134,595.44 - - - 1,977,267.54 -
Shanghai Pharma DHL Supply Chain (Shanghai) Co.,
Ltd. (ii) - 2,030,750.79 - 7,078.40 (64,750.68) - - 1,973,078.51 -
Global Connect Holding Limited 1,036,999.03 - - 539,456.92 - - - 1,576,455.95 -
Shang Shun Supply Chain Management (China) Co.,
Ltd. 23,168,563.72 - (22,785,996.03) - (382,567.69) - - - -
Guangzhou Leshou Network Technologies Co., Ltd.
(“Leshou Network”) - 2,500,000.00 - (18,186.40) - - (2,481,813.60) - (30,718,697.26)
1,298,344,666.39 44,530,750.79 (22,785,996.03) (7,187,638.39) (447,318.37) 842,393.75 (2,481,813.60) 1,310,815,044.54 (30,718,697.26)
(i) Those represent changes in equity resulting from capital injections by investors other than the Group.
179
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(13) Long-term equity investments (Cont’d)
(b) Associates
Movements in the current period
Exchange
differences on Balance of
translation of Other provision for
Carrying amount as Share of net foreign currency comprehensive Accrual of impairment loss
at 31 December Increase in profit/(loss) under financial income provision for Carrying amount as at the end of the
2018 investments equity method statements adjustment impairment loss at 30 June 2019 period
Zhejiang Galaxis Technology Co., Ltd. 165,725,961.09 - 154,360.56 - - - 165,880,321.65 -
Zhuhai Sui Bian Technology Co., Ltd. (“Zhuhai
Sui Bian”) 157,457,861.35 - (33,835,933.64) - - - 123,621,927.71 (8,031,343.63)
Jiangsu Chiata Foton Co., Ltd. 109,489,454.90 - (993,283.11) - - - 108,496,171.79 -
Beijing Dazhangfang Network Technology Co., -
Ltd. (hereinafter “Beijing Dazhangfang”) 105,360,602.87 - (3,388,313.11) - - 101,972,289.76 -
Shenzhen Bai Mi Life Co., Ltd. 93,653,469.59 - (140,240.22) - - - 93,513,229.37 -
DHL Weiheng (Zhuhai) Supply Chain
Management Co., Ltd. (ii) - 63,403,384.03 (85,533.65) 302,189.44 - - 63,620,039.82 -
Feng Wang Investment Co., Ltd. 49,583,185.02 - 1,463,551.38 - (1,956,923.83) - 49,089,812.57 -
Langxing UAV System Co., Ltd. 42,286,144.93 - (782,584.79) - - - 41,503,560.14 -
Shenzhen Canbeidou Supply Chain
Management Co., Ltd. “Canbeidou Supply
Chain”) 31,203,326.00 5,000,000.00 (2,066,177.19) - - - 34,137,148.81 -
Little Red Hat Issuance Co., Ltd. (“Little Red
Hat”) 39,935,693.38 - 1,203,989.34 - - (14,629,263.85) 26,510,418.87 (14,629,263.85)
Beijing GreenValley Technology Limited 22,303,055.14 - (271,203.36) - - - 22,031,851.78 -
Shenzhen SF Lottery Technology Development
Co., Ltd. (“SF Lottery”) 20,243,932.95 - (594,766.39) - - - 19,649,166.56 -
PT TRI ADI BERSAMA 11,030,861.92 10,358,610.85 (2,526,240.70) (20,673.26) - - 18,842,558.81 -
Shenzhen Zhi Hang UAV Co., Ltd. 20,725,087.16 - (2,272,901.17) - - - 18,452,185.99 -
Guangdong Shucheng Technology Co., Ltd. 11,111,112.00 - (337,679.75) - - - 10,773,432.25 -
Shenzhen Shun Jie Feng Da Express Co., Ltd. 9,797,782.97 - 197,366.34 - - - 9,995,149.31 (20,480,557.60)
180
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(13) Long-term equity investments (Cont’d)
(b) Associates (Cont’d)
Movements in the current period
Exchange
differences on Balance of
translation of Other provision for
Carrying amount as Share of net foreign currency comprehensive Accrual of impairment loss
at 31 December Increase in profit/(loss) under financial income provision for Carrying amount as at the end of the
2018 investments equity method statements adjustment impairment loss at 30 June 2019 period
Xi'an Huahan Air Passenger and Freight Service
Co., Ltd. 4,914,936.19 2,106,401.22 1,062,406.31 - - - 8,083,743.72 -
Kin Shun Information Technology Limited - 5,609,808.75 (1,047,837.51) (16,700.51) - - 4,545,270.73 -
Chongqing Boqiang Logistics Co., Ltd. 3,083,249.31 1,321,392.56 45,378.54 - - - 4,450,020.41 -
Beijing Prettyfeather Brand Management Co.,
Ltd. 4,551,225.71 - (254,623.81) - - - 4,296,601.90 -
Wuhan Jinyu DHL Supply Chain Management
Co., Ltd. - 3,798,169.58 (39,493.95) (120,957.44) - - 3,637,718.19 -
Qingdao Dakai Cargo Agency Co., Ltd. 2,128,255.53 912,109.51 (17,971.33) - - - 3,022,393.71 -
KINGS (HK) INTERNATIONAL LIMITED - 2,111,928.00 803,097.67 12,799.83 - - 2,927,825.50 -
GSEXPRESSHOLDINGSPTE.LTD - 550,956.34 - - - - 550,956.34 -
Shenzhen Xiaofeng Technology Co., Ltd.
(“Xiaofeng Technology”) 501,257.63 - (73,137.60) - - - 428,120.03 (847,730.80)
905,086,455.64 95,172,760.84 (43,797,771.14) 156,658.06 (1,956,923.83) (14,629,263.85) 940,031,915.72 (43,988,895.88)
(ii) Those represent the Group's joint ventures and associates acquired through the acquisition of DHL Supply Chain (Hong Kong) Limited (“DHL HK”) and DHL
Logistics (Beijing) Co., Ltd. (“DHL BJ”) (Note 5(1)(b)) via business combination.
181
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(14) Investments in other equity instruments
30 June 2019
Equity of listed companies 792,918,258.45
Equity of unlisted companies 3,249,780,185.56
4,042,698,444.01
Accumulated gains or
Dividend income losses recognised in
recognised in the other comprehensive
Item current period income
Equity of listed companies - 36,493,952.74
Equity of unlisted companies - 412,148,625.59
- 448,642,578.33
182
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(14) Investments in other equity instruments (Cont’d)
Foreign exchange
gains or losses
and exchange
differences on
translation of
foreign currency
31 December Changes in Increase in the Changes in fair value Disposal in the financial
2018 accounting policies 1 January 2019 current period of current period current period statements 30 June 2019
Listed company
equity - 815,357,936.75 815,357,936.75 - 31,339,063.00 (54,996,904.28) 1,218,162.98 792,918,258.45
Non-listed
company
equity - 1,997,472,148.15 1,997,472,148.15 1,257,296,652.39 (6,709,480.35) (175,682.00) 1,896,547.37 3,249,780,185.56
- 2,812,830,084.90 2,812,830,084.90 1,257,296,652.39 24,629,582.65 (55,172,586.28) 3,114,710.35 4,042,698,444.01
183
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(15) Other non-current financial assets
30 June 2019
Financial assets held for trading (over one
year):
Industry fund investments 195,283,651.74
Special scheme equity-class securities 138,000,000.00
Discounted stock option 71,781,728.81
405,065,380.55
(16) Investment properties
Buildings Land use rights Total
Cost
As at 31 December 2018 1,545,871,953.21 1,058,161,494.78 2,604,033,447.99
Transfer from self-used assets in
the current period (Note 4 (17),
(18), (19)) 338,082,842.02 98,289,203.86 436,372,045.88
Transfer to self-used assets in the
current period (Note 4(17), (19)) (307,239,281.03) (94,397,480.70) (401,636,761.73)
Effect of translation of foreign
currency financial statements 1,072,695.90 1,510,780.24 2,583,476.14
As at 30 June 2019 1,577,788,210.10 1,063,563,998.18 2,641,352,208.28
Accumulated depreciation
As at 31 December 2018 74,842,688.75 75,259,257.70 150,101,946.45
Transfer from self-used assets in
the current period (Note 4(17),
(19)) 2,452,041.69 7,130,087.95 9,582,129.64
Provision in the current period 19,201,960.24 13,403,196.82 32,605,157.06
Transfer to self-used assets in the
current period (Note 4(17), (19)) (21,507,647.05) (8,148,525.75) (29,656,172.80)
Effect of translation of foreign
currency financial statements 93,178.43 106,779.43 199,957.86
As at 30 June 2019 75,082,222.06 87,750,796.15 162,833,018.21
Carrying amount
As at 30 June 2019 1,502,705,988.04 975,813,202.03 2,478,519,190.07
As at 31 December 2018 1,471,029,264.46 982,902,237.08 2,453,931,501.54
For the six months ended 30 June 2019, no borrowing cost was recognised in investment properties
(for the six months ended 30 June 2018: Nil).
As at 30 June 2019, the Group was still in the process of applying for certificates of ownership for
certain buildings with carrying amount of RMB 571,234,394.63 (cost of RMB 577,383,288.40)(31
December 2018: carrying amount of RMB 600,697,558.47 and cost of RMB 602,571,540.07). In
addition, as at 30 June 2019, the Group had no land use rights without certificates (31 December
2018: land use rights with carrying amount of RMB 95,106,403.06 and cost of RMB 102,600,875.61
with certificates being handled).
As at 30 June 2019, investment properties with carrying amount of RMB 496,985,596.74 (cost of
RMB 509,215,459.44) (31 December 2018: Nil) were pledged as collateral for long-term borrowings
(Note 4(33)(b)).
As at 30 June 2019 and 31 December 2018, the Group assessed that no impairment loss should be
recognised for investment properties.
184
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(17) Fixed assets
Aircraft, aircraft
Computers and engines, rotables Office equipment
electronic and high-value Machinery and and other
Buildings Motor vehicles equipment maintenance tools equipment equipment Total
Cost
As at 31 December 2018 3,907,817,817.37 5,235,525,474.79 2,837,932,643.79 5,846,203,808.20 2,329,971,443.62 3,529,504,542.15 23,686,955,729.92
Increase arising from business combinations - 3,143,691.24 63,820,257.05 - 230,377,559.28 56,203,155.54 353,544,663.11
Transfer from construction in progress (Note
4(18)) 84,477,850.43 9,970,095.95 6,037,050.12 1,222,649,334.86 102,573,355.29 295,745,451.85 1,721,453,138.50
Transfer from investment properties in the
current period (Note 4(16)) 307,239,281.03 - - - - - 307,239,281.03
Increase in the current period - 142,105,730.36 227,314,091.01 89,565,869.91 51,449,982.47 68,421,327.59 578,857,001.34
Transfer to investment properties in the current
period (Note 4(16)) (28,314,895.02) - - - - - (28,314,895.02)
Decrease in the current period (30,709,329.29) (285,364,040.33) (200,814,899.29) (29,156,304.07) (8,470,233.51) (77,172,508.26) (631,687,314.75)
Effect of translation of foreign currency
financial statements 2,211,605.68 316,571.87 1,022,467.04 623,053.21 2,687,136.52 389,968.02 7,250,802.34
As at 30 June 2019 4,242,722,330.20 5,105,697,523.88 2,935,311,609.72 7,129,885,762.11 2,708,589,243.67 3,873,091,936.89 25,995,298,406.47
Accumulated depreciation
As at 31 December 2018 635,490,679.85 3,377,726,518.44 1,651,819,189.31 1,908,639,462.48 565,797,862.05 1,580,779,750.34 9,720,253,462.47
Increase arising from business combinations - 1,994,821.31 43,124,294.52 - 153,894,514.84 40,754,094.71 239,767,725.38
Transfer from investment properties in the
current period (Note 4(16)) 21,507,647.05 - - - - - 21,507,647.05
Provision in the current period 59,978,099.81 368,420,615.15 298,065,326.76 320,810,300.46 98,521,383.81 306,981,416.38 1,452,777,142.37
Transfer to investment properties in the current
period (Note 4(16)) (2,452,041.69) - - - - - - (2,452,041.69)
Decrease in the current period (1,507,142.40) (263,557,749.81) (179,129,926.41) (21,225,201.49) (4,891,722.69) (59,489,352.58) (529,801,095.38)
Effect of translation of foreign currency
financial statements 202,106.57 179,143.75 721,722.23 9,774.48 1,628,426.45 313,095.00 3,054,268.48
As at 30 June 2019 713,219,349.19 3,484,763,348.84 1,814,600,606.41 2,208,234,335.93 814,950,464.46 1,869,339,003.85 10,905,107,108.68
Carrying amount
As at 30 June 2019 3,529,502,981.01 1,620,934,175.04 1,120,711,003.31 4,921,651,426.18 1,893,638,779.21 2,003,752,933.04 15,090,191,297.79
As at 31 December 2018 3,272,327,137.52 1,857,798,956.35 1,186,113,454.48 3,937,564,345.72 1,764,173,581.57 1,948,724,791.81 13,966,702,267.45
185
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(17) Fixed assets (Cont’d)
(i) For the sixth months ended 30 June 2019, the amount of depreciation expenses charged to cost of
revenue, selling and distribution expenses, general and administrative expenses and research and
development expenses was RMB 1,421,435,012.06 (for the sixth months ended 30 June 2018: RMB
1,240,833,610.69).
(ii) As at 30 June 2019, fixed assets with carrying amount of RMB 534,736,222.21 (cost of RMB
586,427,847.12) (31 December 2018: carrying amount of RMB 342,796,848.43 and cost of RMB
373,875,226.65) were pledged as collateral for long-term borrowings (Note 4(33)(b)).
(iii) Fixed assets with pending certificates of ownership
30 June 2019
Accumulated Provision for
Cost depreciation impairment loss Carrying amount
Buildings 140,011,128.99 (2,710,166.58) - 137,300,962.41
31 December 2018
Accumulated Provision for Carrying
Cost depreciation impairment loss amount
Buildings 193,877,274.92 (6,799,047.80) - 187,078,227.12
In addition, as at 30 June 2019, buildings with carrying amount of RMB 24,485,697.49 and cost of
RMB 29,844,036.64 (31 December 2018: carrying amount of RMB 25,189,141.24 and cost of RMB
29,844,036.64) represented public rental houses with restricted property rights purchased by the
Group for entity talents.
(iv) As at 30 June 2019 and 31 December 2018, the Group assessed that no impairment loss should be
recognised for fixed assets.
186
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(17) Fixed assets (Cont’d)
(v) Disposal of aircraft engines, rotables and high-value aero maintenance tools
For the six months ended 30 June 2019
Accumulated Provision for
Reason for disposal Cost depreciation impairment loss Carrying amount
Aircraft rotables Scrapped 459,094.82 (148,092.22) - 311,002.60
For the six months ended 30 June 2018
Accumulated Provision for
Reason for disposal Cost depreciation impairment loss Carrying amount
Aircraft rotables Sold 155,266.03 (15,709.71) - 139,556.32
Aircraft rotables Scrapped 91,319.37 (48,443.46) - 42,875.91
246,585.40 (64,153.17) - 182,432.23
187
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(18) Construction in progress
30 June 2019 31 December 2018
Chuangzhi Tiandi Building Project 2,808,727,620.95 2,807,629,439.13
Qianhai S.F. Headquarters Office 580,326,645.88 556,833,111.75
Aircraft import and refit 550,864,847.57 943,574,638.75
Industrial Buildings in Dongguan Songshan
Lake Zhigu Industrial Park 437,085,303.75 436,199,481.00
Changsha E-Commerce Industrial Park
Project 214,503,859.06 160,636,162.09
Intelligent Sorting Hefei Base Project 195,947,491.56 313,838,021.65
Dongguan Dalingshan Southern China
Comprehensive Warehouse Project 176,146,611.44 86,998,454.45
Wuhan E-Commerce Industrial Park Project 173,822,533.38 82,658,505.47
Chongqing Fengtai E-Commerce Industrial
Park Project 136,875,434.74 68,562,581.48
S.F. Ma'anshan Innovation Industrial Park
Project 102,472,181.77 31,343,700.01
Tianjin Fengtai E-Commerce Industrial Park
Project 97,022,622.78 257,973,670.95
Foshan Guicheng Fengtai E-Commerce
Industrial Park Project 87,455,704.61 62,684,757.42
Weihai S.F. E-Commerce Industrial Park
Project 81,310,777.07 55,326,012.10
Nantong Aviation Hub Project (Phase II) 81,227,855.04 60,934,684.78
Beijing Daxing Distribution Hub Project 50,062,319.97 63,049,546.34
Xi’an E-Commerce Industrial Park Project 38,217,700.80 37,491,895.04
Zhengzhou E-Commerce Industrial Park
Project 34,785,615.02 11,123,175.33
Others 369,287,675.06 471,049,475.33
6,216,142,800.45 6,507,907,313.07
As at 30 June 2019 and 31 December 2018, the Group assessed that no impairment loss should be
recognised for construction in progress.
188
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(18) Construction in progress (Cont’d)
Including:
Accumulative Borrowing costs
amount of capitalised in
Transfer to long- % of project Progress capitalised the current
Increase in the term assets in the Decrease in the investment in of borrowing period (Note Capitalisation
Name of projects Budget 31 December 2018 current period current period (iii)) current period 30 June 2019 budget (ii) project costs 4(49)) rate Source of funds
Chuangzhi Tiandi Building Project 2,956,187,732.13 2,807,629,439.13 1,098,181.82 - - 2,808,727,620.95 95% 95% - - - Self-owned funds
Self-owned funds and
loans from financial
Qianhai S.F. Headquarters Office 955,063,598.77 556,833,111.75 23,493,534.13 - - 580,326,645.88 61% 61% 48,247,952.06 10,096,711.26 4.72% institutions
Aircraft import and refit 1,553,941,896.72 943,574,638.75 852,107,725.70 (1,222,649,334.87) (22,168,182.01) 550,864,847.57 55% 55% - - - Self-owned funds
Industrial Buildings in Dongguan
Songshan Lake Zhigu Industrial
Park 563,116,062.82 436,199,481.00 885,822.75 - - 437,085,303.75 78% 78% - - - Self-owned funds
Changsha E-Commerce Industrial
Park Project 433,118,340.70 160,636,162.09 53,867,696.97 - - 214,503,859.06 50% 50% - - - Self-owned funds
Intelligent Sorting Hefei Base
Project 689,264,242.19 313,838,021.65 31,563,458.27 (149,453,988.36) - 195,947,491.56 50% 50% - - - Self-owned funds
Dongguan Dalingshan Southern
China Comprehensive
Warehouse Project 228,117,303.14 86,998,454.45 89,148,156.99 - - 176,146,611.44 77% 77% - - - Self-owned funds
Wuhan E-Commerce Industrial
Park Project 656,613,327.16 82,658,505.47 91,164,027.91 - - 173,822,533.38 26% 26% - - - Self-owned funds
Chongqing Fengtai E-Commerce
Industrial Park Project 276,327,944.87 68,562,581.48 68,312,853.26 - - 136,875,434.74 50% 50% - - - Self-owned funds
S.F. Ma'anshan Innovation
Industrial Park Project 108,539,784.72 31,343,700.01 71,128,481.76 - - 102,472,181.77 94% 94% - - - Self-owned funds
Tianjin Fengtai E-Commerce
Industrial Park Project 672,367,278.56 257,973,670.95 79,909,941.35 (240,860,989.52) - 97,022,622.78 50% 50% - - - Self-owned funds
Foshan Guicheng Fengtai E-
Commerce Industrial Park Project 353,640,166.63 62,684,757.42 24,770,947.19 - - 87,455,704.61 25% 25% - - - Self-owned funds
Weihai S.F. E-Commerce Industrial
Park Project 88,073,140.86 55,326,012.10 25,984,764.97 - - 81,310,777.07 92% 92% - - - Self-owned funds
Nantong Aviation Hub Project
(Phase II) 313,999,540.45 60,934,684.78 20,293,170.26 - - 81,227,855.04 26% 26% - - - Self-owned funds
Beijing Daxing Distribution Hub
Project 97,017,748.38 63,049,546.34 8,009,688.80 (606,953.66) (20,389,961.51) 50,062,319.97 73% 73% - - - Self-owned funds
Xi’an E-Commerce Industrial Park
Project 596,106,274.76 37,491,895.04 725,805.76 - - 38,217,700.80 6% 6% - - - Self-owned funds
Zhengzhou E-Commerce Industrial
Park Project 243,936,462.20 11,123,175.33 23,662,439.69 - - 34,785,615.02 14% 14% - - - Self-owned funds
Others - 471,049,475.33 491,276,689.53 (417,649,819.09) (175,388,670.71) 369,287,675.06 - - - - - Self-owned funds
6,507,907,313.07 1,957,403,387.11 (2,031,221,085.50) (217,946,814.23) 6,216,142,800.45 48,247,952.06 10,096,711.26
(i) As at 30 June 2019, no construction in progress was pledged as collateral for long-term borrowings (31 December 2018: RMB 229,810,226.10) (Note
4(33)(b)).
(ii) For aircraft import and refit, the percentage of project investment in budget is related to the investment for the current period; for the other projects, the
percentage of project investment in budget is related to the accumulative investment.
(iii) Transfers from construction in progress for the current period amounted to RMB 2,031,221,085.50, including transfer to fixed assets of RMB 1,721,453,138.50
and transfer to investment properties of RMB 309,767,947.00.
189
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(19) Intangible assets
Purchased Self-developed Customer
Land use rights software software Patents Trademark rights relationships Others Total
Cost
As at 31 December 2018 4,743,645,037.94 409,761,858.21 1,696,690,578.75 54,960,582.79 255,569,142.46 562,141,621.71 76,077,413.36 7,798,846,235.22
Increase in the current period
Business combinations - 12,976,569.15 - - - 2,093,073,628.26 - 2,106,050,197.41
Transfer from investment properties
(Note 4(16)) 94,397,480.70 - - - - - - 94,397,480.70
Transfer from capitalised development
expenditures (Note 4(20)) - - 648,471,436.71 - - - 23,332,747.27 671,804,183.98
Addition 196,048,629.70 36,103,451.42 - 3,077,153.81 360,399.01 - 1,626,982.35 237,216,616.29
Decrease in the current period
Transfer to investment properties in
the current period (Note 4(16)) (98,289,203.86) - - - - - - (98,289,203.86)
Disposal - (13,454,619.57) (39,168,290.25) (42,079,429.53) (24,440,000.00) - (1,314,640.15) (120,456,979.50)
Effect of translation of foreign currency
financial statements 2,986,823.75 110,559.91 - - 398,984.13 69,821,470.09 - 73,317,837.88
As at 30 June 2019 4,938,788,768.23 445,497,819.12 2,305,993,725.21 15,958,307.07 231,888,525.60 2,725,036,720.06 99,722,502.83 10,762,886,368.12
Accumulated amortisation
As at 31 December 2018 329,558,225.50 258,179,090.62 483,295,081.62 32,310,856.99 14,791,777.27 11,988,125.64 6,625,603.69 1,136,748,761.33
Increase in the current period
Business combinations - 11,906,100.07 - - - - - 11,906,100.07
Transfer from investment properties
(Note 4(16)) 8,148,525.75 - - - - - - 8,148,525.75
Provision 57,062,495.72 28,453,073.88 198,442,640.18 1,477,465.54 5,984,344.84 57,269,233.10 4,795,575.32 353,484,828.58
Decrease in the current period
Transfer to investment properties in
the current period (Note 4(16)) (7,130,087.95) - - - - - - (7,130,087.95)
Disposal - (3,316,119.76) (5,505,347.82) (30,131,272.19) (8,757,666.67) - (683,926.09) (48,394,332.53)
Effect of translation of foreign currency
financial statements 160,531.37 81,332.76 - - 96,612.66 878,153.47 - 1,216,630.26
As at 30 June 2019 387,799,690.39 295,303,477.57 676,232,373.98 3,657,050.34 12,115,068.10 70,135,512.21 10,737,252.92 1,455,980,425.51
190
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(19) Intangible assets (Cont’d)
Purchased Self-developed Customer
Land use rights software software Patents Trademark rights relationships Others Total
Provision for impairment loss
As at 31 December 2018 - - - - - - - -
Increase in the current period - - 37,001,101.69 - - - - 37,001,101.69
As at 30 June 2019 - - 37,001,101.69 - - - - 37,001,101.69
Carrying amount
As at 30 June 2019 4,550,989,077.84 150,194,341.55 1,592,760,249.54 12,301,256.73 219,773,457.50 2,654,901,207.85 88,985,249.91 9,269,904,840.92
As at 31 December 2018 4,414,086,812.44 151,582,767.59 1,213,395,497.13 22,649,725.80 240,777,365.19 550,153,496.07 69,451,809.67 6,662,097,473.89
For the sixth months ended 30 June 2019, the amount of amortisation expenses charged to cost of revenue, selling and distribution expenses, general and
administrative expenses and research and development expenses was RMB 316,497,477.63 (for the sixth months ended 30 June 2018: RMB
164,898,545.05).
191
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(19) Intangible assets (Cont’d)
(a) The Group’s land use rights pledged as collateral for long-term borrowings (Note 4(33)(b)):
30 June 2019
Accumulated
Cost amortisation Carrying amount
Land use rights 1,430,182,230.55 (137,815,116.78) 1,292,367,113.77
31 December 2018
Accumulated
Cost amortisation Carrying amount
Land use rights 1,470,189,474.60 (121,708,372.50) 1,348,481,102.10
(b) As at 30 June 2019, the Group was still in the process of applying for certificates for land use rights
with carrying amount of RMB 222,749,760.19 (cost of RMB 225,924,030.40) (31 December 2018:
carrying amount of RMB 135,510,548.64 and cost of RMB 138,476,438.12).
(c) As at 30 June 2019, the intangible assets developed by the Group accounted for 17.18% (31
December 2018: 18.21%) of the carrying amount of intangible assets.
30 June 2019 31 December 2018
Carrying amount of self-developed intangible
assets 1,592,760,249.54 1,213,395,497.13
Carrying amount of intangible assets 9,269,904,840.92 6,662,097,473.89
Proportion 17.18% 18.21%
(d) As at 30 June 2019, due to the discontinuation of some self-developed software, the Group made a
provision for impairment loss of RMB 37,001,101.69 upon assessment (31 December 2018: Nil).
192
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(20) Capitalised development expenditures
Transfer to intangible
Increase in the assets in the current
31 December 2018 current period period (Note 4(19)) 30 June 2019
Unmanned Aerial Vehicle
Project 87,625,999.63 29,050,983.46 (11,721,070.29) 104,955,912.80
CPS 61,169,344.01 84,118,461.52 (103,991,544.02) 41,296,261.51
Fengsheng System 20,350,805.38 14,068,188.66 - 34,418,994.04
Intelligent hardware R&D
Project 18,372,828.56 3,250,052.01 - 21,622,880.57
Fengchi Project 66,510,593.38 35,569,681.86 (86,147,917.34) 15,932,357.90
Claim Risk Control Project - 13,725,059.40 - 13,725,059.40
Big Data Platform - 23,564,278.46 (11,419,461.94) 12,144,816.52
Warehousing Management
System 14,028,361.32 2,651,529.48 (5,520,000.00) 11,159,890.80
Foundation Revolution System
of Product Operation 24,626,556.68 29,194,685.23 (43,699,511.76) 10,121,730.15
Intra-city Express 20,135,507.88 21,539,626.35 (31,751,858.06) 9,923,276.17
SAP Settlement Platform
System 2,543,708.66 6,395,092.56 - 8,938,801.22
Operation Plan System - 8,067,609.92 - 8,067,609.92
Operation and Management
Platform Virtual System 1,608,736.69 4,808,946.17 (4,758,988.88) 1,658,693.98
International Export
Management System 1,608,837.29 77,782.28 (836,320.76) 850,298.81
Refrigerated Transport System
Project 15,310,087.42 2,227,992.50 (17,538,079.92) -
Others 251,321,376.87 421,547,127.01 (354,419,431.01) 318,449,072.87
585,212,743.77 699,857,096.87 (671,804,183.98) 613,265,656.66
As at 30 June 2019, the Group assessed that no impairment loss should be recognised for research
and capitalised development expenditures.
193
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(21) Goodwill
All of the Group's goodwill has been allocated to the relevant asset group or asset group combination on the date of purchase. The allocation is as follows:
Exchange rate
Increase in the Decrease in the changes in the
31 December 2018 current period (i) current period (i) current period 30 June 2019
Cost:
DHL HK and DHL BJ (Note 5(1)(b)) - 2,886,703,468.48 - 95,081,521.91 2,981,784,990.39
Havi Logistics Services (Hong Kong) Ltd. (“Havi Hong Kong”) 355,135,836.43 - - 630,698.55 355,766,534.98
Guangdong Shunxin Express Co., Ltd. (“Guangdong Shunxin”) 149,587,124.73 - - - 149,587,124.73
Beijing Deda 22,702,800.86 - - - 22,702,800.86
Suzhou Hengding Logistics Co., Ltd. - 11,967,426.40 - - 11,967,426.40
Chongqing Xuehu Express LLC 10,555,317.54 - - - 10,555,317.54
Guizhou Xingcheng Zhaipei Express Co., Ltd. 10,199,760.21 - - - 10,199,760.21
Sichuan Wulianyida Technology Co., Ltd. 4,940,247.25 - - - 4,940,247.25
Chengdu Shunyifeng Pharmaceuticals Co., Ltd. 2,434,509.81 - - - 2,434,509.81
Hanxing Industrial Co., Ltd. 1,496,979.95 - - 2,658.54 1,499,638.49
Xiamen Ruite Information Technology Co., Ltd. (“Xiamen Ruite”) 56,502,329.98 - (56,502,329.98) - -
613,554,906.76 2,898,670,894.88 (56,502,329.98) 95,714,879.00 3,551,438,350.66
194
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(21) Goodwill (Cont'd)
All of the Group's goodwill has been allocated to the relevant asset group or asset group combination on the date of purchase. The allocation is as follows
(Cont’d):
Exchange rate
Increase in the Decrease in the changes in the
31 December 2018 current period (i) current period (i) current period 30 June 2019
Less: Provisions for impairment (Note 4(24)) -
Chengdu Shunyifeng Pharmaceuticals Co., Ltd. (2,434,509.81) - - - (2,434,509.81)
Chongqing Xuehu Express LLC (10,555,317.54) - - - (10,555,317.54)
Guizhou Xingcheng Zhaipei Express Co., Ltd. (10,199,760.21) - - - (10,199,760.21)
(23,189,587.56) - - - (23,189,587.56)
590,365,319.20 2,898,670,894.88 (56,502,329.98) 95,714,879.00 3,528,248,763.10
(i) Increase in goodwill in the current period arose from the acquisition of equity of DHL HK and DHL BJ (Note 5(1)(b)). Decrease in goodwill in the current
period arose from the disposal of equity of Xiamen Ruite (Note 5(3)).
195
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(22) Long-term prepaid expenses
Increase in the Amortisation in the Decrease in the
31 December 2018 current period current period current period 30 June 2019
Leasehold improvements 1,130,323,147.57 400,833,641.45 (297,235,387.56) (16,703,647.95) 1,217,217,753.51
Settling-in allowance and introduction fee for pilots 448,064,620.79 96,704,833.61 (31,913,585.25) (3,632,294.72) 509,223,574.43
Prepaid discount interest on interest-free loans to employees 45,607,919.26 - (8,653,429.72) (373,504.81) 36,580,984.73
Others 21,865,499.91 3,599,356.19 (4,643,429.21) (1,219,132.24) 19,602,294.65
1,645,861,187.53 501,137,831.25 (342,445,831.74) (21,928,579.72) 1,782,624,607.32
196
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(23) Other non-current assets
30 June 2019 31 December 2018
Prepaid engineering equipment 326,610,310.44 381,308,573.43
Prepaid land use rights 220,599,226.75 116,653,600.00
547,209,537.19 497,962,173.43
197
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(24) Provision for asset impairment
Changes in Merge under Decrease in the current period
31 December accounting policies non-identical Provision in the Reversal in the Write-off/
2018 (Note 2(31)) 1 January 2019 control current period current period Disposal 30 June 2019
Provision for bad debts 103,548,417.82 - 103,548,417.82 12,529,871.83 92,309,099.17 - (23,387,719.96) 184,999,668.86
Including: Provision for bad
debts of
accounts
receivable (Note
4(4)) 79,456,513.05 - 79,456,513.05 12,524,708.14 79,264,307.29 - (14,624,394.24) 156,621,134.24
Provision for bad
debts of other
receivables
(Note 4(5)) 12,857,692.63 - 12,857,692.63 5,163.69 13,044,791.88 - (8,409,670.50) 17,497,977.70
Provision for bad
debts of long-
term receivables
(Note 4(12)) 11,234,212.14 - 11,234,212.14 - - - (353,655.22) 10,880,556.92
Provision for impairment of
factoring receivables (Note
4(7)) 9,655,084.16 - 9,655,084.16 - 58,118,407.06 (5,037,895.29) - 62,735,595.93
Provision for impairment of
loans and advances (Note
4(8)) 11,158,725.91 - 11,158,725.91 - 3,475,742.51 - (497,273.25) 14,137,195.17
Provision for impairment of
available-for-sale financial
assets (Note 4(11)) 4,596,187.92 (4,596,187.92) - - - - - -
Provision for impairment of
long-term equity investments
(Note 4(13)) 57,596,515.69 - 57,596,515.69 - 17,111,077.45 - - 74,707,593.14
Provision for impairment of
intangible assets (Note 4(19)) - - - - 37,001,101.69 - - 37,001,101.69
Provision for impairment of
goodwill (Note 4(21)) 23,189,587.56 - 23,189,587.56 - - - - 23,189,587.56
209,744,519.06 (4,596,187.92) 205,148,331.14 12,529,871.83 208,015,427.88 (5,037,895.29) (23,884,993.21) 396,770,742.35
198
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(25) Short-term borrowings
30 June 2019 31 December 2018
Unsecured borrowings 8,595,076,419.04 6,086,934,848.48
Guaranteed borrowings (a) 1,733,941,500.00 2,498,194,551.15
10,329,017,919.04 8,585,129,399.63
(a) As at 30 June 2019, guaranteed borrowings of RMB 1,733,941,500.00 (31 December 2018: RMB
2,498,194,551.15) were guaranteed by subsidiaries within the Group.
(b) As at 30 June 2019, the range of annual interest rate of short-term borrowings was 2.60% to 5.00%
(31 December 2018: 2.74% to 5.30%).
(26) Accounts payable
30 June 2019 31 December 2018
Payables to related parties (Note 8(4)(f)) 135,976,802.99 101,316,142.44
Outsourcing cost payable 4,876,443,547.03 4,499,069,987.92
Transportation cost payable 1,317,850,101.89 1,315,973,595.67
Supply and material expenses payable 976,953,620.53 1,029,622,333.02
Office and rental fees payable 911,792,568.19 694,987,360.60
Customs cost payable 24,227,768.35 21,444,033.53
Others 256,569,297.51 224,929,376.65
8,499,813,706.49 7,887,342,829.83
199
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(26) Accounts payable (Cont’d)
Accounts payable with ageing over 1 year are analysed as follows:
Main reason for
30 June 2019 31 December 2018 unsettlement
Transportation cost No invoice issued
payable 3,945,106.91 6,872,109.99 by supplier
Office and rental fees No invoice issued
payable 1,377,602.71 964,421.09 by supplier
Supply and material No invoice issued
expenses payable 6,579,575.26 3,752,895.47 by supplier
Outsourcing cost No invoice issued
payable 15,131,790.25 1,078,046.50 by supplier
Others 2,811,607.23 4,062,160.95
29,845,682.36 16,729,634.00
(27) Advances from customers
30 June 2019 31 December 2018
Advances from related parties (Note 8(4)(g)) 31,522,074.85 21,548,724.88
Prepaid value cards 203,900,624.75 203,086,157.63
Advances of freight charges and others 429,096,293.95 242,976,408.93
664,518,993.55 467,611,291.44
As at 30 June 2019, the Group had no advances from customers with ageing over 1 year (31
December 2018: Nil).
200
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(28) Employee benefits payable
30 June 2019 31 December 2018
Short-term employee benefits payable (a) 2,493,766,632.49 2,931,841,446.33
Defined contribution plans payable (b) 33,604,449.53 35,626,116.08
2,527,371,082.02 2,967,467,562.41
(a) Short-term employee benefits payable
Increase in the Decrease in the
31 December 2018 current period current period 30 June 2019
Wages and salaries,
bonus, allowances
and subsidies 2,594,559,221.36 8,419,707,741.91 (8,904,912,548.22) 2,109,354,415.05
Employee welfare 5,582,944.44 205,799,012.55 (197,499,521.66) 13,882,435.33
Social security
contributions 12,071,624.74 251,297,874.39 (249,605,885.45) 13,763,613.68
Including: Medical
insurance 10,175,009.26 210,659,626.27 (209,193,264.74) 11,641,370.79
Work injury
insurance 578,795.96 19,717,093.82 (19,793,743.91) 502,145.87
Maternity
insurance 1,317,819.52 20,921,154.30 (20,618,876.80) 1,620,097.02
Housing funds 10,631,685.86 123,049,019.35 (123,161,826.62) 10,518,878.59
Labour union funds and
employee education
funds 284,626,306.58 128,838,441.51 (99,047,183.05) 314,417,565.04
Non-monetary welfare 5,877,075.79 356,028,475.22 (357,436,352.65) 4,469,198.36
Others 18,492,587.56 352,801,400.10 (343,933,461.22) 27,360,526.44
2,931,841,446.33 9,837,521,965.03 (10,275,596,778.87) 2,493,766,632.49
Non-monetary welfare provided by the Group for employees primarily were non-monetary subsidies
in various forms which were measured at fair value.
201
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(28) Employee benefits payable (Cont'd)
(b) Defined contribution plans
31 December Increase in the Decrease in the
2018 current period current period 30 June 2019
Basic pensions
insurance 34,208,014.20 457,622,115.32 (458,972,436.74) 32,857,692.78
Unemployment
insurance 1,418,101.88 21,654,707.41 (22,326,052.54) 746,756.75
35,626,116.08 479,276,822.73 (481,298,489.28) 33,604,449.53
(29) Taxes payable
30 June 2019 31 December 2018
Enterprise income tax payable 543,921,510.23 459,287,640.72
Unpaid VAT 154,342,603.66 108,728,116.39
Individual income tax payable 45,153,590.13 49,217,965.69
City maintenance and construction tax
payable 9,072,426.94 5,929,012.12
Educational surcharge payable 6,706,437.22 5,768,817.99
Others 20,862,519.75 10,364,428.08
780,059,087.93 639,295,980.99
202
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(30) Other payables
30 June 2019 31 December 2018
Current accounts payable to related parties
(Note 8(4)(g)) 55,921,179.46 20,094,094.27
Engineering equipment payable 1,617,086,520.06 1,741,749,484.87
Payables of cash on delivery service 1,154,684,729.72 1,377,763,159.38
Deposits payable 510,578,434.98 464,519,542.36
Warranty deposits payable 135,152,505.64 143,399,194.90
Temporary collection payable 75,704,179.64 91,229,288.16
Restricted share repurchases payable 59,249,144.83 200,619,019.91
Management fee payable 35,095,004.74 -
Investments payable 26,710,805.23 113,122,100.23
Professional service fee payable 21,994,542.52 8,219,553.21
Interest payable - 134,234,622.47
Others 272,170,263.92 244,687,092.55
3,964,347,310.74 4,539,637,152.31
Other payables with ageing over 1 year
Main reason for
30 June 2019 31 December 2018 unsettlement
Temporarily retained
Deposits payable 124,219,334.43 165,847,015.19 for continuing business
Engineering
equipment Project payment
payable 37,312,781.07 46,828,801.92 unsettled
Warranty deposits
payable 29,830,294.79 37,078,772.04 Warranty in effect
Indemnities from
insurance company
claims on hold
Others 16,129,943.67 34,022,955.34 and others
207,492,353.96 283,777,544.49
203
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(31) Current portion of non-current liabilities
30 June 2019 31 December 2018
Current portion of long-term borrowings
(Note 4(33)) 388,939,083.61 173,076,233.94
Current portion of employee incentives
(Note 4(36)) 24,643,718.44 99,901,113.14
Current portion of debentures payable
(Note 4(34)) 163,439,474.65 -
Current portion of long-term payables
(Note 4(35)) 245,474.57 245,474.57
577,267,751.27 273,222,821.65
(32) Other current liabilities
30 June 2019 31 December 2018
Super&short term commercial paper
The First Phase of 2018 - 499,729,547.99
The Second Phase of 2018 510,850,466.33 499,649,357.38
The First Phase of 2019 503,305,011.80 -
Others 6,532,843.28 -
1,020,688,321.41 999,378,905.37
The specific information of the super&short term commercial paper is as follows:
Period of commercial Interest
Par value Date of issue paper rate
The First Phase
of 2018 500,000,000.00 17 September 2018 270 days 3.21%
The Second
Phase of 2018 500,000,000.00 22 November 2018 270 days 3.60%
The First Phase
of 2019 500,000,000.00 10 April 2019 270 days 3.20%
(33) Long-term borrowings
30 June 2019 31 December 2018
Unsecured borrowings 1,430,567,499.77 9,000,000.00
Guaranteed borrowings (a) 3,949,278,501.26 403,799,557.64
Secured borrowings (b) 931,274,205.06 758,564,511.49
6,311,120,206.09 1,171,364,069.13
Less: Current portion of long-term
borrowings (Note 4(31))
Unsecured borrowings (201,567,500.00) (9,000,000.00)
Guaranteed borrowings (105,124,935.77) (122,576,233.94)
Secured borrowings (82,246,647.84) (41,500,000.00)
(388,939,083.61) (173,076,233.94)
5,922,181,122.48 998,287,835.19
204
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(33) Long-term borrowings (Cont'd)
(a) As at 30 June 2019, the Group's guaranteed borrowings were all guaranteed by the subsidiaries
within the Group. As at 31 December 2018, the Group's guaranteed borrowings of RMB
63,799,557.64 was guaranteed by the subsidiaries within the Group, and the guaranteed borrowings
of RMB 340,000,000.00 was guaranteed by Mingde Holdings.
(b) As at 30 June 2019, the secured bank borrowings of RMB 81,600,000.00 (31 December 2018: RMB
86,400,000.00) were secured by the Group’s intangible assets with carrying amount of RMB
19,204,680.05 (31 December 2018: Nil), fixed assets with carrying amount of RMB 164,682,362.64
(31 December 2018: Nil) and investment properties with carrying amount of RMB 28,931,982.76 (31
December 2018: Nil) and were fully guaranteed by Taisen Holdings. The interest is paid quarterly.
The principal should be repaid during the period from 22 September 2017 to 23 September 2025 by
instalments.
As at 30 June 2019, the secured bank borrowings of RMB 123,270,000.00 (31 December 2018: RMB
101,770,000.00) were secured by the Group’s fixed assets with carrying amount of RMB
11,585,501.37 (31 December 2018: construction in progress of RMB 229,810,226.10), investment
properties with carrying amount of RMB 290,486,938.08 (31 December 2018: Nil) and intangible
assets with carrying amount of RMB 2,409,490.09 (31 December 2018: RMB 60,885,374.67)
respectively and were fully guaranteed by Taisen Holdings. The interest is paid quarterly. The
principal should be repaid during the period from 19 October 2019 to 20 October 2033 by instalments.
As at 30 June 2019, the secured bank borrowings of RMB 216,000,000.00 (31 December 2018: RMB
220,000,000.00) were secured by the Group’s fixed assets with carrying amount of RMB
333,917,311.80 (31 December 2018: RMB 342,796,843.43) and intangible assets of RMB
38,737,836.24 (31 December 2018: RMB 39,486,373.07) and were fully guaranteed by Taisen
Holdings, and S.F. Express Co., Ltd. (hereinafter “S.F. Express”) was the co-borrower. The interest
is paid quarterly. The principal should be repaid during the period from 25 July 2016 to 30 July 2023
by instalments.
As at 30 June 2019, the secured bank borrowings of RMB 437,971,556.99 (31 December 2018: RMB
408,794,511.49) were secured by the Group’s intangible assets with carrying amount of RMB
1,227,450,168.41 (31 December 2018: RMB 1,244,458,715.78). The interest is paid quarterly. The
principal should be repaid during the period from 18 November 2019 to 18 November 2026 by
instalments.
As at 30 June 2019, the secured bank borrowings of RMB 71,036,000.00 (31 December 2018: Nil)
were secured by the Group’s fixed assets with carrying amount of RMB 24,551,046.40 (31 December
2018: Nil), intangible assets of RMB 4,564,938.98 (31 December 2018: Nil) and investment
properties with carrying amount of RMB 177,566,675.90 (31 December 2018: Nil). The interest is
paid quarterly. The principal should be repaid during the period from 20 April 2020 to 18 January
2034 by instalments.
In addition, as at 31 December 2018, the secured bank borrowings of RMB 28,000,000.00 were
secured by the Group’s land use rights with carrying amount of RMB 3,650,638.58 and were fully
guaranteed by Taisen Holdings. Such borrowings were repaid in January 2019 in advance.
(c) As at 30 June 2019, the range of annual interest rate of long-term borrowings was 3.43% to 5.39%
(31 December 2018: 3.58% to 5.39%).
205
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(34) Debentures payable
Foreign
exchange gains
or losses and
exchange
differences on
translation of Current portion of
Amortisation of foreign currency debentures
premium/ financial payable (Note
31 December 2018 Interest accrual discount statements 4(31)) 30 June 2019
The First Debentures
of 2017 (a) 529,610,589.31 17,269,166.73 105,927.24 - (17,269,166.73) 529,716,516.55
The First Debentures
of 2018 (a) 799,166,867.25 31,364,666.67 153,262.44 - (31,364,666.67) 799,320,129.69
The Second
Debentures of
2018 (a) 669,513,577.98 19,246,866.67 131,235.84 - (19,246,866.67) 669,644,813.82
Overseas debentures
denominated in
USD (b) 3,407,199,722.59 60,622,107.88 3,110,016.19 (537,971.52) (60,622,107.88) 3,409,771,767.26
The First Middle-term
Notes of 2018 (c) 999,545,169.27 34,936,666.70 79,710.48 - (34,936,666.70) 999,624,879.75
6,405,035,926.40 163,439,474.65 3,580,152.19 (537,971.52) (163,439,474.65) 6,408,078,107.07
Currency Par value Date of issue Term Amount
(equivalent to RMB)
The First Debentures of
2017 (a) RMB 530,000,000.00 17 October 2017 5 years 530,000,000.00
The First Debentures of From 1 August 2018 to
2018 (a) RMB 800,000,000.00 2 August 2018 3 years 800,000,000.00
The Second Debentures From 22 October 2018
of 2018 (a) RMB 670,000,000.00 to 23 October 2018 2 +1 years 670,000,000.00
Overseas debentures
denominated in USD
(b) USD 500,000,000.00 27 July 2018 5 years 3,407,508,933.00
The First Middle-term
Notes of 2018 (c) RMB 1,000,000,000.00 19 September 2018 3 years 1,000,000,000.00
(a) Taisen Holdings was approved to issue corporate debentures of no more than RMB 2 billion (inclusive)
in instalments to the public under the Regulatory Permission [2017] No. 1015 as issued by China
Securities Regulatory Commission. In 2017, Taisen Holdings publicly issued the corporate
debentures (1st instalment) (hereinafter “the First Debentures of 2017”) to qualified investors. The
debenture interest shall be annually calculated at simple interest rate, and the nominal interest rate
is 4.6%, with interest paid annually and the final instalment of interest paid with the principal.
In 2018, Taisen Holdings publicly issued the corporate debentures (1st instalment) (hereinafter “the
First Debentures of 2018”) to qualified investors. The debenture interest shall be annually calculated
at simple interest rate, and the nominal interest rate is 4.29%, with interest paid annually and the
final instalment of interest paid with the principal.
In 2018, Taisen Holdings publicly issued the corporate debentures (2nd instalment) (hereinafter “the
Second Debentures of 2018”) to qualified investors. The debenture interest shall be annually
calculated at simple interest rate, and the nominal interest rate is 4.17%, with interest paid annually
and the final instalment of interest paid with the principal.
206
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(34) Debentures payable (Cont’d)
(b) On 26 July 2018, S.F. Holding Investment Limited, a wholly-owned subsidiary of the Company, issued
debentures of USD 500 million overseas. The debentures were listed on the Stock Exchange of Hong
Kong Limited on 27 July 2018. The nominal interest rate is 4.125% per annum, and the interest is
paid semi-annually, for which the Company provides unconditional and irrevocable cross-border
guarantee.
(c) According to the Notice of Acceptance of Registration issued by the National Association of Financial
Market Institutional Dealers (Zhong Shi Zhu Xie [2017] MTN443), Taisen Holdings’ quota of middle-
term notes was RMB 2 billion. On 19 September 2018, Taisen Holdings issued the first middle-term
notes of 2018 (hereinafter “the First Middle-term Notes of 2018”) totalling RMB 1 billion at a nominal
interest rate of 4.46%, with interest paid annually and the final instalment of interest paid with the
principal.
(35) Long-term payables
30 June 2019 31 December 2018
Long-term advances payable 44,915,616.35 43,935,616.37
Long-term payables to China Development
Fund Co., Ltd. 20,346,603.34 20,392,825.23
Others 40,984,444.92 19,572,058.05
Less: Current portion of long-term payables
(Note 4(3)) (245,474.57) (245,474.57)
106,001,190.04 83,655,025.08
(36) Long-term employee benefits payable
30 June 2019 31 December 2018
Employee incentives 130,251,833.98 205,819,013.16
Less: Current portion of employee incentives
(Note 4(31)) (24,643,718.44) (99,901,113.14)
Long-term service bonus 53,035,836.78 36,797,359.69
158,643,952.32 142,715,259.71
207
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(37) Deferred income
Increase in the Decrease in the
31 December 2018 current period current period 30 June 2019 Source
Received government
grants
Government pending for future
grants (a) 152,944,183.19 46,947,663.33 (16,509,299.54) 183,382,546.98 recognition in income
(a) The government grants related to deferred income in the current period are presented as follows:
Amount
recognised in
Grants addition other income in
31 December in the current the current period Related to
Government grants 2018 period (Note 4(52)) 30 June 2019 assets/income
Comprehensive pilot program of
Shanghai modern service
industry 26,937,433.84 - (504,792.48) 26,432,641.36 Related to assets
Ancillary grant of infrastructure for
Wuhu E-Commerce Industrial
Park 26,430,374.01 - (280,625.88) 26,149,748.13 Related to assets
Construction development fund
for Tianjin Project 21,000,000.00 - (68,416.44) 20,931,583.56 Related to assets
Entity Expansion Fund 7,825,678.33 4,572,700.00 (1,799,517.12) 10,598,861.21 Related to assets
Yancheng Smart E-Commerce
Logistics Park Project 10,221,221.18 - (108,352.20) 10,112,868.98 Related to assets
Grant for maintenance of aircraft
engines 10,195,916.38 - (283,160.59) 9,912,755.79 Related to assets
Ma'anshan Industrial Park Project - 7,000,000.00 - 7,000,000.00 Related to assets
Special subsidy for logistics
standardisation from the
Commerce Bureau - 6,873,400.00 (63,642.59) 6,809,757.41 Related to assets
Subsidy for new energy vehicles - 7,155,752.54 (670,167.98) 6,485,584.56 Related to assets
Specific subsidy for modern
service industry granted by
Jinhua Transportation Authority 6,203,438.00 - (60,007.74) 6,143,430.26 Related to assets
Shenzhen intelligent logistics
project fund - 5,000,000.00 - 5,000,000.00 Related to assets
Yiwu Comprehensive Service
Centre Project 5,342,546.78 - (413,565.48) 4,928,981.30 Related to assets
Special fund of Shenzhen
industrial design development - 3,000,000.00 - 3,000,000.00 Related to assets
Logistics Project of Yiwu Industrial
Park 2,938,072.85 - (97,394.70) 2,840,678.15 Related to assets
Tianjin Port Free Trade Zone
supply chain system
construction project - 3,098,800.00 (260,661.57) 2,838,138.43 Related to assets
Compensation for land acquisition
of Nanning Distribution Hub 3,168,203.97 - (432,265.38) 2,735,938.59 Related to assets
Construction subsidy for Taizhou
Shunfeng E-Commerce
Service Platform 1,199,386.61 - (206,079.56) 993,307.05 Related to assets
North China Air Express Pivot 1,197,924.62 - (941,107.20) 256,817.42 Related to assets
Others 30,283,986.62 10,247,010.79 (10,319,542.63) 30,211,454.78 Related to assets
152,944,183.19 46,947,663.33 (16,509,299.54) 183,382,546.98
208
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(38) Deferred tax assets and deferred tax liabilities
(a) Deferred tax assets before offsetting
30 June 2019 31 December 2018
Deductible Deductible
temporary temporary
differences and differences and
deductible tax Deferred tax deductible tax
losses assets losses Deferred tax assets
Deductible losses 2,267,704,531.32 516,121,115.30 2,106,408,366.25 445,292,056.78
Accrued expenses 643,532,634.69 138,037,750.14 477,502,124.17 102,418,612.28
Unrealised profits
from internal
transactions 313,689,547.92 78,422,386.98 205,785,722.06 51,446,430.51
Employee
incentives 116,876,127.51 29,219,031.88 105,902,775.73 26,475,693.93
Provision for asset
impairment 229,671,367.81 54,926,249.61 85,859,422.40 20,729,601.03
Deferred income 162,408,138.76 38,591,680.15 152,739,530.39 37,423,690.25
Depreciation and
amortisation
differences 268,309,974.54 41,532,340.35 268,188,022.13 54,965,938.00
Share-based
payment 42,002,857.43 8,670,846.15 33,845,759.93 7,221,273.29
Changes in fair
value of
available-for-sale
financial assets - - 50,328,715.36 12,582,178.84
4,044,195,179.98 905,521,400.56 3,486,560,438.42 758,555,474.91
Including:
Expected to be
recovered within
one year
(inclusive) 233,707,569.21 171,522,613.57
Expected to be
recovered after
one year 671,813,831.35 587,032,861.34
905,521,400.56 758,555,474.91
(b) Deductible tax losses and deductible temporary differences that are not recognised as deferred tax
assets are analysed as follows:
30 June 2019 31 December 2018
Deductible tax losses (c) 2,553,934,154.60 1,983,381,113.08
Deductible temporary differences 57,942,744.40 35,779,714.55
2,611,876,899.00 2,019,160,827.63
209
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(38) Deferred tax assets and deferred tax liabilities (Cont’d)
(c) The following table shows unrecognised deductible tax losses based on its expiration date:
30 June 2019 31 December 2018
2019 365,124,698.48 382,184,105.91
2020 217,346,174.73 207,216,534.82
2021 263,641,382.24 262,402,324.95
2022 185,639,014.66 209,567,751.03
2023 and subsequent years 1,522,182,884.49 922,010,396.37
2,553,934,154.60 1,983,381,113.08
(d) Deferred tax liabilities before offsetting
30 June 2019 31 December 2018
Taxable temporary Deferred tax Taxable temporary Deferred tax
differences liabilities differences liabilities
Changes in fair value of
other equity
instruments 243,649,970.00 60,912,492.51 - -
Changes in fair value of
other non-current
financial assets 16,000,000.00 4,000,000.00 - -
Changes in fair value of
available-for-sale
financial assets - - 110,043,220.00 27,510,805.00
Changes in fair value
upon reclassification
of remaining equity
of Hive Box
Technology 446,796,225.96 111,699,056.49 446,796,225.96 111,699,056.49
Changes in fair value
upon reclassification
of remaining equity of
Shenzhen Fengyi
Technology Co., Ltd.
("Fengyi Technology") 28,000,000.00 7,000,000.00 - -
Depreciation of fixed
assets 1,867,783,819.66 466,945,954.90 1,543,907,080.21 350,447,802.47
Appreciation in asset
value arising from
business
combination 3,008,978,791.18 701,696,250.10 955,722,159.84 218,485,004.96
Unrealised profits from
internal transactions 13,993,557.08 3,498,389.27 12,163,386.92 3,040,846.73
5,625,202,363.88 1,355,752,143.27 3,068,632,072.93 711,183,515.65
Including:
Expected to be
recovered within one
year (inclusive) 162,568,980.70 114,632,346.16
Expected to be
recovered after one
year 1,193,183,162.57 596,551,169.49
1,355,752,143.27 711,183,515.65
210
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(38) Deferred tax assets and deferred tax liabilities (Cont’d)
(e) The net balances of deferred tax assets and liabilities after offsetting are as follows:
30 June 2019 31 December 2018
Deferred tax assets - net 721,940,063.72 584,462,905.44
Deferred tax liabilities - net 1,172,170,806.43 537,090,946.18
(39) Share capital
Decrease in the
31 December Increase in the current period
2018 current period (Note 9(1)) 30 June 2019
Ordinary shares
denominated in
RMB 4,418,767,258.00 - (4,181,993.00) 4,414,585,265.00
31 December Increase in the Decrease in the
2017 current period current period 31 December 2018
Ordinary shares
denominated in
RMB 4,411,015,524.00 7,788,643.00 - 4,418,804,167.00
(40) Capital reserve
Increase in the Decrease in the
31 December 2018 current period current period 30 June 2019
Share premium
- Capital contribution by
shareholders 15,768,464,376.95 - - 15,768,464,376.95
- Business combinations
involving entities
under common
control (76,026,021.35) - - (76,026,021.35)
- Share-based payment
in capital
contribution by
shareholders (Note
4(41)) 193,344,979.29 - (104,584,725.90) 88,760,253.39
Other capital surplus
- Share-based payment
included in capital
reserve (Note 9(2)) 44,965,842.16 14,581,133.08 - 59,546,975.24
- Others 138,869,988.62 5,959,966.12 - 144,829,954.74
16,069,619,165.67 20,541,099.20 (104,584,725.90) 15,985,575,538.97
211
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(40) Capital reserve (Cont’d)
Increase in the Decrease in the
31 December 2017 current period current period 30 June 2018
Share premium
- Capital contribution by
shareholders 15,768,464,376.95 - - 15,768,464,376.95
- Business combinations
involving entities
under common control 213,592,671.52 - (43,617,193.55) 169,975,477.97
- Share-based payment in
capital contribution by
shareholders (Note
4(41)) - 194,466,894.22 - 194,466,894.22
Other capital surplus
- Share-based payment
included in capital
reserve (Note 9(2)) 419,902.42 23,930,346.08 - 24,350,248.50
- Others 104,066,451.66 14,094,942.26 (23,663,996.34) 94,497,397.58
16,086,543,402.55 232,492,182.56 (67,281,189.89) 16,251,754,395.22
(41) Treasury stock
31 December Increase in the Decrease in the
2018 current period current period 30 June 2019
Restricted shares 200,928,467.28 394,996,314.03 (141,663,846.07) 454,260,935.24
31 December Increase in the Decrease in the
2017 current period current period 30 June 2018
Restricted shares - 202,255,537.22 - 202,255,537.22
As stated in Note 9(2), ordinary A shares, which were issued by the Company to the incentive
recipients of the restricted shares incentive plan in 2017 and 2018, counted at 7,788,643.00 shares
with raised funds totalling RMB 202,255,537.22, including an increment of share capital of RMB
7,788,643.00 and an increment of capital reserve of RMB 194,466,894.22. In addition, the
repurchasing obligation is recognised in liabilities (as purchase of treasury stock) at the number of
restricted shares issued multiplied by the repurchasing price (Note 4(30)).
In 2018, some of the Company’s original incentive recipients resigned and lost their right to receive
incentives, therefore the Company repurchased and cancelled the restricted shares previously held
by these incentive recipients (36,909.00 shares in total) with a deduction from the treasury share of
RMB 1,082,171.88, including a reduction of RMB 36,909.00 in share capital, and RMB 1,045,262.88
in capital reserve.
212
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(41) Treasury stock (Cont’d)
As at 3 January 2019, the Company held the 18th session of the fourth Board of Directors, at which
the Proposal of the Accomplishment of the Unlocking Conditions of the First Post Lock-up Period for
the Restricted Shares for 2017 was reviewed. The Company recognised that the unlocking conditions
for the first post lock-up period for the restricted shares for 2017 were met, and the treasury stock of
RMB 32,393,334.30 were deducted.In addition, the criteria of the performance assessment for the
second post lock-up period for the restricted shares incentive plan for 2017 and the first post lock-up
period for the restricted shares incentive plan for 2018 were not met, therefore the Company
repurchased and cancelled the restricted shares previously held by these incentive recipients
(3,741,407.00 shares in total) during the reporting period with a deduction from the treasury share of
RMB 96,583,654.6, including a reduction of RMB 3,741,407.00 in share capital, and RMB
92,842,247.60 in capital reserve.
For the current reporting period, some of the Company’s original incentive recipients resigned and
lost their right to receive incentives, therefore the Company repurchased and cancelled the restricted
shares previously held by these incentive recipients (440,586.00 shares in total) with a deduction
from the treasury share of RMB 12,183,064.30, including a reduction of RMB 440,586.00 in share
capital, and RMB 11,742,478.30 in capital reserve.
During the reporting period, the Company deducted the treasury stock by RMB 503,792.87 based
on the revocable cash dividends distributed to holders whose restricted shares were expected to be
unlocked in the restricted shares incentive plan for 2018.
In addition, as at 31 January 2019, at the 19th session of the fourth Board of Directors, the Proposal
of Repurchasing Shares by Centralised Price Bidding was approved. The Company repurchase a
portion of corporate shares for employee stock ownership plan or share-based incentive plan through
centralised price bidding by self-owned funds in a total of 11,010,729.00 shares and treasury stock
of RMB 394,996,314.03 was recognised.
(42) Special reserve
31 December Increase in the Decrease in the
2018 current period current period 30 June 2019
Safety reserve - 3,776,493.37 (3,776,493.37) -
31 December Increase in the Decrease in the
2017 current period current period 30 June 2018
Safety reserve - 2,727,907.70 (2,727,907.70) -
Pursuant to the Administrative Measures for the Collection and Utilisation of Enterprise Work Safety
Funds (Cai Qi [2012] No. 16) issued by the Ministry of Finance and the State Administration of Work
Safety on 14 February 2012, 1% of the income from the "Common cargo transportation business"
which is operated by certain subsidiaries of the Group is appropriated to safety reserve. The safety
reserve is recognised in profit or loss as the "Special reserve" item for the current period. When the
accrued safety reserve is used under the prescribed conditions, it is written off against the original
amount directly.
213
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(43) Surplus reserve
31 December Increase in the Decrease in the
2018 current period current period 30 June 2019
Statutory surplus
reserve 601,132,890.32 - - 601,132,890.32
31 December Increase in the Decrease in the
2017 current period current period 30 June 2018
Statutory surplus
reserve 586,501,527.41 - - 586,501,527.41
(44) Retained earnings
For the six months ended 30 June
2019 2018
Undistributed profits at the end of the prior year 14,960,151,735.98 11,478,728,731.98
Add: Net profit attributable to shareholders of the
parent company 3,101,111,638.63 2,209,579,126.20
Less: Ordinary share dividends payable (a) (924,735,176.17) (970,985,880.70)
Transfer from other comprehensive income
to retained earnings (54,334,158.75) -
Retained earnings at the end of the period 17,082,194,039.69 12,717,321,977.48
(a) The Company held shareholders’ meeting on 9 April 2019. On the basis of the total share capital at
the registration date on which the profit distribution plan was implemented less the special shares
repurchased by the Company, a total of RMB 925,302,561.11 of cash dividends were distributed to
all shareholders at RMB 2.10 (including tax) per 10 shares, without bonus shares being given or
capital reserve being converted into the share capital.
During the reporting period, the Company adjusted dividends of ordinary shares by RMB 567,384.94
in total (including 2,628,136 shares of the unregistered restricted stock corresponding to common
stock dividends of RMB 551,908.56), based on the restricted shares that were expected not to be
unlockable (due to employee resignation or share forfeiture) in the future for the restricted shares
incentive plan for 2018. The adjusted ordinary share dividends payable is RMB 924,735,176.17.
(45) Revenue and cost of revenue
For the six months ended 30 June
2019 2018
Revenue from main operations (a) 50,023,101,039.35 42,520,634,130.47
Revenue from other operations (b) 51,602,994.50 30,272,624.95
Total revenue 50,074,704,033.85 42,550,906,755.42
Cost of revenue from main operations (a) 40,120,963,760.73 34,472,523,685.77
Cost of revenue from other operations (b) 31,080,464.00 11,038,458.62
Total cost of revenue 40,152,044,224.73 34,483,562,144.39
214
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(45) Revenue and cost of revenue (Cont’d)
(a) Revenue and cost of revenue from main operations:
For the six months ended 30 June
2019 2018
Cost of revenue Cost of revenue
Revenue from main from main Revenue from main from main
operations operations operations operations
Express logistic
and supply
chain 49,479,804,469.27 39,676,010,637.56 42,160,162,854.77 34,214,278,112.75
Sales of goods 253,670,085.55 244,437,355.69 54,768,168.17 54,683,418.92
Others 289,626,484.53 200,515,767.48 305,703,107.53 203,562,154.10
50,023,101,039.35 40,120,963,760.73 42,520,634,130.47 34,472,523,685.77
(b) Revenue and cost of revenue from other operations:
For the six months ended 30 June
2019 2018
Cost of revenue Cost of revenue
Revenue from from other Revenue from from other
other operations operations other operations operations
Disposal of
materials 5,366,068.43 3,135,831.83 7,873,198.29 3,839,357.84
Others 46,236,926.07 27,944,632.17 22,399,426.66 7,199,100.78
51,602,994.50 31,080,464.00 30,272,624.95 11,038,458.62
(46) Taxes and surcharges
For the six months ended 30 June
2019 2018 Payment criterion
City maintenance and
construction tax 38,783,027.88 37,811,919.68 Refer to Note 3
Educational
surcharge 28,667,288.45 28,097,637.46 Refer to Note 3
Stamp tax 26,174,629.84 23,936,519.60
Property tax 20,621,947.62 14,519,251.20
Land use tax 6,263,679.64 5,607,928.31
Flood-control project
expenses 117,176.63 347,591.97
Others 377,126.98 175,001.91
121,004,877.04 110,495,850.13
215
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(47) Selling and distribution expenses
For the six months ended 30 June
2019 2018
Employee benefits 318,510,509.75 402,086,961.72
Information technology service - outsourcing 208,263,429.24 207,446,231.11
Marketing expenses 105,880,810.06 132,624,859.37
IT and information platform expenses 90,956,344.09 91,023,863.25
Office and rental fees 57,350,290.67 84,864,070.37
Supply and material expenses 13,090,938.53 22,961,218.78
Depreciation and amortisation expenses 69,638,430.07 9,675,871.70
Travelling and transportation expenses 13,360,325.69 9,787,510.78
Others 7,498,378.66 13,147,639.24
884,549,456.76 973,618,226.32
(48) General and administrative expenses
For the six months ended 30 June
2019 2018
Employee benefits 3,889,881,251.00 3,104,847,897.47
Office and rental fees 258,203,417.98 233,644,740.55
Depreciation and amortisation expenses 209,628,709.57 164,874,997.40
Professional service fee 145,893,419.37 90,274,734.43
Entertainment expenses 83,172,264.44 78,994,338.33
Travelling and transportation expenses 64,149,585.92 65,888,125.26
Royalties 35,565,574.35 -
Supply and material expenses 30,892,230.32 44,336,206.17
IT and information platform expenses 27,373,472.94 -
Taxes 14,129,992.87 13,277,832.26
Others 84,771,537.18 48,624,453.45
4,843,661,455.94 3,844,763,325.32
216
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(49) Research and development expenses
For the six months ended 30 June
2019 2018
Employee benefits 274,413,117.59 258,975,780.70
Outsourcing cost 21,612,421.02 41,631,096.16
IT and information platform expenses 62,492,335.64 34,299,055.93
Office and rental fees 16,593,373.66 13,657,314.41
Supply and material expenses 2,380,344.87 2,403,283.33
Depreciation and amortisation expenses 108,581,274.94 35,543,273.50
Travelling and transportation expenses 8,374,048.34 5,695,346.39
Professional service fee 8,386,104.63 3,810,153.83
Others 6,261,353.20 7,509,100.91
509,094,373.89 403,524,405.16
(50) Financial costs
For the six months ended 30 June
2019 2018
Interest on borrowings 443,050,621.03 298,640,675.72
Less: Capitalised interest (Note 4(18)) (10,096,711.26) (7,765,050.78)
Interest expenses 432,953,909.77 290,875,624.94
Less: Interest income (140,657,962.96) (258,040,873.83)
Net losses/(gains) on exchange 4,779,048.26 (5,507,106.10)
Commission expenses and others 34,534,612.53 27,093,078.80
331,609,607.60 54,420,723.81
217
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(51) Expenses by nature
The cost of revenue, selling and distribution expenses, general and administrative expenses and
R&D expenses in the income statement are listed as follows by nature:
For the six months ended 30 June
2019 2018
Outsourcing cost 22,516,293,483.01 18,054,257,870.76
Employee benefits 10,187,960,965.68 9,771,095,076.21
Transportation cost 4,591,767,428.13 4,433,684,663.63
Including: Aircraft maintenance costs 122,550,201.24 83,909,218.24
Office and rental fees 3,370,766,894.22 2,479,218,545.33
Depreciation and amortisation expenses 2,112,983,478.49 1,673,643,034.23
Supply and material expenses 1,821,849,752.17 1,834,735,272.78
IT and information platform expenses 376,367,330.53 250,093,161.82
Claims expenses 286,839,014.36 379,775,938.43
Cost of revenue of goods 244,437,355.69 54,683,418.92
Professional service fee 154,279,523.99 94,084,888.26
Customs cost 146,219,546.06 140,239,527.49
Travelling and transportation expenses 121,361,182.76 109,191,030.98
Marketing expenses 105,880,810.06 132,624,859.37
Brand usage fee 35,565,574.35 -
Taxes 15,370,055.24 14,943,003.13
Others 301,407,116.58 283,197,809.85
46,389,349,511.32 39,705,468,101.19
For the six months ended 30 June 2019, the Group’s government grants which were offset against
expenses amounted to RMB 44,298,310.60 (for the six months ended 30 June 2018: RMB
20,576,287.11) and were fully offset against the cost of revenue. Therein, the amount that was
recognised in non-recurring profit or loss amounted to RMB 44,298,310.60 (for the six months ended
30 June 2018: RMB 11,541,881.11).
(52) Other income
For the six months ended 30 June
2019 2018
Fiscal appropriation for
logistics 75,056,584.88 49,953,937.49 Related to income
Tax preference 54,037,453.25 6,139,529.02 Related to income
Grant from Social
Security Bureau 18,743,054.92 6,318,349.17 Related to income
Amortisation of
deferred income
(Note 4(37)) 16,509,299.54 12,318,561.87 Related to assets
164,346,392.59 74,730,377.55
218
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(53) Investment income
For the six months ended 30 June
2019 2018
Investment income from sale of equity
interests of Fengyi Technology 216,691,565.20 -
Investment income from financial assets
held for trading 79,742,073.62 7,555,719.72
Investment income from remeasurement of
the remaining equity interests in Fengyi
Technology measure at fair value 64,204,908.21 -
Income from disposal on other long-term
equity investments 47,334,607.83 90,348,615.94
Investment income from wealth
management products 29,086,155.52 102,830,226.45
Investment income from entrusted loans - 30,827,736.38
Investment loss from disposal of other
available-for-sale financial assets, etc. - 8,121,553.19
Share of net profit or loss of investees
under equity method (Note 4(13)) (50,985,409.53) 8,841,240.97
386,073,900.85 248,525,092.65
There is no significant restriction on recovery of investment income of the Group.
(54) Gains/(losses) arising from changes in fair value
For the six months ended 30 June
2019 2018
Structural deposits 9,960,802.13 -
SAFE and discounted stock option 304,239,702.03 -
Others 16,007,107.39 (4,812,095.66)
330,207,611.55 (4,812,095.66)
(55) Credit impairment losses
For the six months
ended 30 June
2019
Loss from bad debts of accounts receivable 79,264,307.29
Loss from impairment of factoring receivables 53,080,511.77
Loss from bad debts of other receivables 13,044,791.88
Impairment loss on loans and advances 3,475,742.51
148,865,353.45
219
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(56) Asset impairment losses
For the six months ended 30 June
2019 2018
Impairment loss of intangible assets 37,001,101.69 -
Losses on impairment of long-term equity
investments 17,111,077.45 -
Loss from bad debts - 10,425,741.65
Loss from impairment of factoring
receivables - 3,703,600.13
Impairment loss on loans and advances - (91,323.02)
Impairment loss on available-for-sale
financial assets - 12,356,790.57
54,112,179.14 26,394,809.33
(57) Losses on disposal of assets
For the six months ended 30 June
Amount Amount
recognised in recognised in
non-recurring non-recurring
profit or loss in profit or loss in
2019 2019 2018 2018
Gains on disposal of
fixed assets 22,537,744.97 22,537,744.97 12,251,310.61 12,251,310.61
Losses on disposal of
fixed assets (35,413,896.70) (35,413,896.70) (19,234,090.64) (19,234,090.64)
(12,876,151.73) (12,876,151.73) (6,982,780.03) (6,982,780.03)
(58) Non-operating income and expenses
(a) Non-operating income
For the six months ended 30 June
Amount Amount
recognised in recognised in
non-recurring non-recurring
profit or loss in profit or loss in
2019 2019 2018 2018
Government grants (i) 17,708,816.27 17,708,816.27 18,468,239.86 18,468,239.86
Compensation income 5,971,898.89 5,971,898.89 4,997,518.01 4,997,518.01
Income from penalty 1,198,197.30 1,198,197.30 774,761.71 774,761.71
Others 45,274,628.31 45,274,628.31 35,079,309.37 35,079,309.37
70,153,540.77 70,153,540.77 59,319,828.95 59,319,828.95
220
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(58) Non-operating income and expenses (Cont’d)
(a) Non-operating income (Cont'd)
(i) Details of government grants
For the six months ended 30 June
Related to Related to
2019 assets/income 2018 assets/income
General fiscal Related to Related to
appropriation 16,722,833.19 income 16,917,029.86 income
Related to Related to
Others 985,983.08 income 1,551,210.00 income
17,708,816.27 18,468,239.86
(b) Non-operating expenses
For the six months ended 30 June
Amount Amount
recognised in recognised in
non-recurring non-recurring
profit or loss in profit or loss in
2019 2019 2018 2018
Compensation expenses 19,532,798.24 19,532,798.24 10,805,478.76 10,805,478.76
Donation expenses 5,150,996.20 5,150,996.20 21,455,358.49 21,455,358.49
Penalties and overdue
fines 8,615,819.45 8,615,819.45 8,884,826.16 8,884,826.16
Others 8,461,646.82 8,461,646.82 9,432,058.02 9,432,058.02
41,761,260.71 41,761,260.71 50,577,721.43 50,577,721.43
(59) Income tax expenses
For the six months ended 30 June
2019 2018
Current income tax 891,418,578.47 755,698,296.11
Deferred income tax (8,776,281.95) 35,251,433.97
882,642,296.52 790,949,730.08
221
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(59) Income tax expenses (Cont'd)
The reconciliation from income tax calculated based on the applicable tax rates and total profit
presented in the income statement to the income tax expenses is listed below:
For the six months ended 30 June
2019 2018
Total profit 3,925,906,538.62 2,974,329,972.99
Income tax expenses calculated at the
standard tax rate of 25% 981,476,634.66 743,582,493.25
Costs, expenses and losses not deductible
for tax purposes 39,552,923.73 23,793,243.80
Effect of last-year tax filing differences (29,736,018.06) 22,825,134.33
Effect of different tax rates among different
subsidiaries and branches on income tax
expenses (43,180,878.92) (25,695,497.51)
Deductible tax losses and deductible
temporary differences for which no
deferred tax asset was recognised in the
current period 141,663,070.72 92,129,867.03
Reversal of previously recognised deductible
losses for which deferred tax asset was
recognised 44,911,454.39 -
Utilisation of deductible tax losses and other
deductible temporary differences for which
no deferred tax asset was recognised in
prior periods (134,263,952.26) (49,201,665.06)
Recognition of deductible tax losses and
other deductible temporary differences for
which no deferred tax asset was
recognised in prior periods (2,500,000.00) (6,394,907.15)
Tax preference (10,678,902.56) (6,505,389.39)
Income not subject to tax (104,602,035.18) (3,583,549.22)
Income tax expenses 882,642,296.52 790,949,730.08
222
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(60) Earnings per share
(a) Basic earnings per share
Basic earnings per share are calculated by dividing consolidated net profit attributable to ordinary
shareholders of the parent company by the weighted average number of outstanding ordinary shares
of the parent company:
For the six months ended 30 June
2019 2018
Consolidated net profit attributable to ordinary
shareholders of the parent company 3,101,111,638.63 2,209,579,126.20
Less: Cash dividends distributed to holders
whose restricted shares are
expected to be unlocked (503,792.87) (554,345.44)
Adjusted consolidated net profit attributable to
ordinary shareholders of the parent
company for calculation of earnings per
share 3,100,607,845.76 2,209,024,780.76
Weighted average number of outstanding
ordinary shares of the Company 4,407,421,565.50 4,411,015,524.00
Basic earnings per share 0.70 0.50
Including:
- Basic earnings per share from continuing
operations 0.70 0.50
(b) Diluted earnings per share
Diluted earnings per share are calculated by dividing consolidated net profit attributable to ordinary
shareholders of the parent company adjusted based on the dilutive potential ordinary shares by the
adjusted weighted average number of outstanding ordinary shares of the Company. For the six
months ended 30 June 2019, the Company had dilutive potential ordinary shares (for the six months
ended 30 June 2018: the same):
For the six months ended 30 June
2019 2018
Consolidated net profit attributable to ordinary
shareholders of the parent company 3,101,111,638.63 2,209,579,126.20
Weighted average number of outstanding
ordinary shares of the Company 4,407,421,565.50 4,411,015,524.00
Weighted average number of ordinary shares
increased from share-based payment - 294,453.28
Weighted average number of outstanding
diluted ordinary shares 4,407,421,565.50 4,411,309,977.28
Diluted earnings per share 0.70 0.50
223
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(61) Minority interests
30 June 2019 31 December 2018
Havi Hong Kong 190,162,913.29 190,294,212.29
Beijing Deda 122,622,416.49 120,633,401.06
Xiamen Ruite - 46,511,906.07
Guangdong Shunxin Express (66,861,525.76) (9,492,458.61)
Chengdu Fengcheng Logistics Co., Ltd. (15,546,781.86) (15,272,143.06)
Others 55,547,535.16 20,256,715.52
285,924,557.32 352,931,633.27
224
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(62) Other comprehensive income
Other comprehensive income, the related income tax effect and the reclassifications to profit or loss for the six months ended 30 June 2019 and 30 June
2018:
Other comprehensive income in balance sheet Changes in other comprehensive income for the six months ended 30 June 2019
Less:
Attributable to Reclassification
the parent of other
company in comprehensive Attributable to Attributable
Changes in the current Amount income to the parent to minority
31 December accounting period - net of incurred before Less: Income retained company - net shareholders
2018 policies 1 January 2019 tax 30 June 2019 tax taxes expenses earnings of tax - net of tax
Exchange differences on
translation of foreign
currency financial
statements 191,026,574.28 - 191,026,574.28 15,179,377.55 206,205,951.83 15,265,426.96 - - 15,179,377.55 86,049.41
Other comprehensive
income of convertible
gains and losses
under the equity
method - - - (1,956,923.83) (1,956,923.83) (1,956,923.83) - - (1,956,923.83) -
Changes in fair value of
investments in other
equity instruments - 353,622,821.31 353,622,821.31 32,979,875.05 386,602,696.36 24,629,582.65 (45,983,866.35) 54,334,158.75 32,979,875.05 -
Changes in fair value of
available-for-sale
financial assets 336,157,723.57 (336,157,723.57) - - - - - - -
527,184,297.85 17,465,097.74 544,649,395.59 46,202,328.77 590,851,724.36 37,938,085.78 (45,983,866.35) 54,334,158.75 46,202,328.77 86,049.41
225
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(62) Other comprehensive income (Cont'd)
Other comprehensive income in balance sheet Changes in other comprehensive income for the six months ended 30 June 2019
Less:
Attributable to Reclassification
the parent of other Attributable to Attributable to
company in the comprehensive the parent minority
31 December current period - Amount incurred income to profit Less: Income company - net shareholders -
2017 net of tax 30 June 2018 before tax or loss tax expenses of tax net of tax
Share of the other
comprehensive income of
the investee accounted for
using equity method which
will be reclassified
subsequently to profit and
loss - 147,032.76 147,032.76 147,032.76 - - 147,032.76 -
Exchange differences on
translation of foreign
currency financial
statements 17,159,014.31 29,321,142.79 46,480,157.10 27,716,932.12 - - 29,321,142.79 (1,604,210.67)
Changes in fair value of
available-for-sale financial
assets 202,671,218.52 (106,747,986.27) 95,923,232.25 (127,625,141.88) 3,066,230.82 17,810,924.79 (106,747,986.27) -
219,830,232.83 (77,279,810.72) 142,550,422.11 (99,761,177.00) 3,066,230.82 17,810,924.79 (77,279,810.72) (1,604,210.67)
226
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(63) Notes to the cash flow statement
(a) Cash received relating to other operating activities
For the six months ended 30 June
2019 2018
Inflows from cash on delivery service 24,744,324,674.22 24,226,774,735.21
Government grants 202,754,430.01 147,569,681.66
Interest income 153,109,828.49 276,913,014.71
Finance lease received 23,511,252.99 211,694,980.76
Wealth management funds received on
behalf of other parties - 698,301,656.78
Net cash received from Mingde Holdings - 61,663,743.90
Others 500,498,245.42 661,262,635.06
25,624,198,431.13 26,284,180,448.08
(b) Cash paid relating to other operating activities
For the six months ended 30 June
2019 2018
Outflows from cash on delivery service 25,075,406,925.83 24,535,583,400.73
Office and rental fees 3,138,436,865.23 2,687,326,759.30
IT and information platform expenses 398,949,370.36 264,420,482.55
Claims expenses 286,839,014.36 379,775,938.43
Professional service fee 149,761,306.12 107,278,510.85
Customs cost 143,435,811.24 143,671,679.56
Travelling and transportation expenses 128,642,853.73 114,989,173.89
Marketing expenses 112,233,658.66 139,315,147.22
Entertainment expenses 89,436,984.88 83,699,510.54
Bank charges 34,534,612.53 25,816,237.28
Compensation and penalty 28,148,617.69 19,690,204.92
Donation expenses 5,150,996.20 21,455,358.49
Wealth management funds paid on behalf of
other parties - 1,090,386,560.21
Others 511,993,829.17 934,884,941.51
30,102,970,846.00 30,548,293,905.48
227
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(63) Notes to the cash flow statement (Cont’d)
(c) Cash received relating to other investing activities
For the six months ended 30 June
2019 2018
Redemption of bank wealth management
products 19,610,047,058.44 19,045,176,118.39
(d) Cash paid relating to other investing activities
For the six months ended 30 June
2019 2018
Purchase of bank wealth management
products 23,960,239,249.75 20,258,000,000.00
Deposits for land bidding 14,800,000.00 24,100,000.00
23,975,039,249.75 20,282,100,000.00
(e) Cash received relating to other financing activities
For the six months ended 30 June
2019 2018
Proceeds from transferring factoring-related
creditor’s rights - 945,563,375.34
Proceeds from issuing wealth management
products - 116,078,608.18
Capital injection by former shareholders to
subsidiaries under business
combinations involving entities under
common control - 29,180,000.00
- 1,090,821,983.52
(f) Cash payments relating to other financing activities
For the six months ended 30 June
2019 2018
Repurchasing shares 503,763,032.93 -
Payment to investors upon maturity of
wealth management products - 1,255,876,029.17
Payment to investors upon transferring
factoring-related creditor’s rights - 960,750,732.63
Others 7,961,098.15 573,859.82
511,724,131.08 2,217,200,621.62
228
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(64) Supplementary information to the cash flow statement
(a) Notes to the cash flow statement
Reconciliation from net profit to cash flows from operating activities
For the six months ended 30 June
2019 2018
Net profit 3,043,264,242.10 2,183,380,242.91
Add: Provision for asset impairment 54,112,179.14 26,394,809.33
Provision for credit impairment 148,865,353.45 -
Depreciation of fixed assets 1,421,435,012.06 1,240,833,610.69
Depreciation of investment properties 32,605,157.06 25,713,133.85
Amortisation of intangible assets 316,497,477.63 164,898,545.05
Amortisation of long-term prepaid
expenses 342,445,831.74 247,231,821.97
Net losses on disposal of fixed assets 12,876,151.73 6,982,780.03
(Gains)/losses arising from changes in
fair value (330,207,611.55) 4,812,095.66
Financial costs 438,039,577.86 280,334,441.51
Investment income (386,073,900.85) (248,525,092.65)
Recognised expenses on share-based
payments 15,597,712.81 23,930,346.08
(Increase)/decrease in deferred tax
assets (108,325,029.39) 27,692,143.89
Increase in deferred tax liabilities 99,548,747.44 7,559,290.08
Amortisation of deferred income (16,509,299.54) (12,318,561.87)
Decrease/(increase) in inventories 73,895,759.23 (52,815,615.42)
Decrease/(increase) in operating
receivables 762,706,058.73 (197,859,966.11)
Decrease in operating payables (1,103,886,869.97) (1,358,635,234.20)
Net cash flows from operating activities 4,816,886,549.68 2,369,608,790.80
229
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(64) Supplementary information to the cash flow statement (Cont'd)
(a) Notes to the cash flow statement (Cont'd)
Net increase/(decrease) in cash and cash equivalents
For the six months ended 30 June
2019 2018
Cash and cash equivalents at the end of the
period 11,928,010,057.41 12,316,809,110.31
Less: Cash and cash equivalents at the
beginning of the period (15,299,270,711.01) (16,149,528,832.49)
Net decrease in cash and cash equivalents (3,371,260,653.60) (3,832,719,722.18)
(b) Cash and cash equivalents
30 June 2019 31 December 2018
Cash on hand 925,135.67 1,333,057.53
Cash at bank that can be readily drawn on
demand 11,769,573,155.34 15,164,028,170.83
Other cash balances that can be readily
drawn on demand 95,925,811.41 61,912,773.22
Other balances that can be readily drawn on
demand 61,585,954.99 71,996,709.43
11,928,010,057.41 15,299,270,711.01
(c) Acquisition of subsidiaries
For the six months ended 30 June
2019 2018
Cash and cash equivalents paid in the
current period for business combination
incurred in the current period 5,346,964,309.54 20,858,612.00
Including: DHL HK and DHL BJ 5,325,964,309.54 -
Others 21,000,000.00 20,858,612.00
Less: Cash and cash equivalents held by
subsidiaries at the acquisition date (265,848,954.38) -
Including: DHL HK and DHL BJ (254,733,022.95) -
Others (11,115,931.43) -
Add: Cash paid in the period for business
combination in previous periods 86,411,295.00 -
Net cash paid to acquire subsidiaries 5,167,526,650.16 20,858,612.00
230
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(65) Monetary items denominated in foreign currency
As at 30 June 2019 and 31 December 2018, the Group's companies whose recording currency is
RMB held no significant assets or liabilities denominated in foreign currency. Those companies
operating in Hong Kong with HKD as recording currency held assets and liabilities denominated in
non-recording currency (mainly USD and RMB), of which the equivalent amounts in HKD (recording
currency of companies operating in Hong Kong) and RMB (presentation currency of these financial
statements) are listed as below:
30 June 2019
Amount in the Exchange
original rate to
currency HKD Equivalent to HKD Equivalent to RMB
Cash at bank and
on hand -
RMB 93,646,253.31 1.1368 106,457,060.76 93,646,253.31
USD 10,336,623.15 7.8148 80,778,642.59 71,061,183.17
Accounts
receivable -
RMB 3,019,374.25 1.1368 3,432,424.65 3,019,374.25
USD 3,138,605.15 7.8148 24,527,571.53 21,576,968.82
Accounts
payable -
RMB 3,147,533.02 1.1368 3,578,115.54 3,147,533.02
USD 5,685,501.50 7.8148 44,431,057.12 39,086,117.16
31 December 2018
Amount in the Exchange
original rate to
currency HKD Equivalent to HKD Equivalent to RMB
Cash at bank
and on hand -
RMB 155,585,448.67 1.1413 177,569,672.57 155,585,448.67
USD 10,063,726.14 7.8329 78,828,160.48 69,069,365.24
Accounts
receivable -
RMB 6,584,773.28 1.1413 7,515,201.74 6,584,773.28
Accounts
payable -
RMB 30,803.76 1.1413 35,156.33 30,803.76
231
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
5 Changes in the consolidation scope
(1) Business combinations
(a) Business combinations in the current period
Cash flows from
Revenue of the Profit/(loss) of the operating activities Net cash flows of the
% of Basis for acquiree from the acquiree from the of the acquiree from acquiree from the
Timing of interest Method of Acquisition determining the acquisition date to acquisition date to the acquisition date acquisition date to
Acquiree acquisition Acquisition cost acquired acquisition date acquisition date end of the period end of the period to end of the period end of the period
18
DHL HK and February 18 February Completion of
DHL BJ (b) 2019 5,325,964,309.54 100.00% By cash 2019 equity delivery 1,287,986,985.23 7,530,980.70 (59,943,302.69) (117,442,876.28)
Suzhou
Hengding
Logistics 1 June Completion of
Co., Ltd. 2019 21,000,000.00 58.30% By cash 1 June 2019 equity delivery 13,261,748.08 458,053.30 531,683.84 11,531,683.84
232
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
5 Changes in the consolidation scope (Cont'd)
(1) Business combinations (Cont’d)
(b) DHL HK and DHL BJ
On 18 February 2019, the Group completed the acquisition of 100% equity of DHL HK and DHL BJ
with a consideration of RMB 5,325,964,309.54. As at the acquisition date, the Group obtained control
over DHL HK and DHL BJ, and included DHL HK and DHL BJ in the scope of consolidation.
(i) Details of the consideration of combination and goodwill recognised are as follows:
DHL HK and DHL BJ
Combination cost
- Cash 5,325,964,309.54
Less: Fair value of the share of identifiable net
assets acquired (2,439,260,841.06)
Goodwill 2,886,703,468.48
(ii) The assets and liabilities of DHL HK and DHL BJ as at 18 February 2019 (the “acquisition date”) are
as follows:
Carrying amount Carrying amount
Fair value on the on the acquisition on 31 December
acquisition date date 2018
Cash at bank and on hand 254,733,022.95 254,733,022.95 457,610,020.95
Accounts receivable 1,216,859,696.21 1,216,859,696.21 1,278,629,434.34
Advances to suppliers 134,241,148.09 134,241,148.09 62,682,240.80
Other current assets 166,545,687.78 166,545,687.78 257,365,274.04
Fixed assets 113,777,184.90 113,777,184.90 114,481,903.83
Intangible assets 2,094,144,099.98 1,070,471.72 988,195.13
Deferred tax assets 50,890,814.68 50,890,814.68 55,651,465.97
Other non-current assets 115,287,722.53 115,287,722.53 118,403,520.50
Less: Accounts payable (873,680,255.02) (873,680,255.02) (953,693,659.12)
Other current liabilities (317,178,443.31) (317,178,443.31) (486,346,543.11)
Deferred tax liabilities (490,247,396.37) - (685,652.66)
Other non-current liabilities (26,112,441.36) (26,112,441.36) (17,974,245.73)
Net assets obtained 2,439,260,841.06 836,434,609.17 887,111,954.94
Note: The carrying amount is the total carrying amount of DHL HK and DHL BJ.
233
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
5 Changes in the consolidation scope (Cont'd)
(1) Business combinations (Cont’d)
(b) DHL HK and DHL BJ (Cont'd)
(ii) The assets and liabilities of DHL HK and DHL BJ as at 18 February 2019 (the “acquisition date”) are
as follows:
As at the acquisition date, the fair value of identifiable net assets exceeded the carrying amount by
RMB 1,602,826,231.88, mainly comprising the recognition of intangible assets - customer
relationships (Note 4(19)). The Group has engaged an independent valuer to assist in the
identification and assessment of the fair value of DHL HK and DHL BJ's intangible assets.
The valuation methods of major assets are presented as follows:
Customer relationships are valued mainly using the multi-period excess earnings method that
calculates the current value of customer relationships on the base date of evaluation by using an
appropriate discount rate to discount the aggregated present value of excess earnings after
deduction of asset contribution from the after-tax economic benefits expected to arise from
leveraging the customer relationships in future years.
(2) Business combinations involving entities under common control
On 31 October 2018, Taisen Holdings acquired 100% equity of Lefeng Factoring, Shenzhen
Shunheng Rongfeng Investment Co., Ltd. (“Rongfeng Investment”) and Shenzhen Hengyi Logistics
Service Co., Ltd. (“Hengyi Logistics”), which were owned by the ultimate parent company Mingde
Holdings. The combination date of this transaction is 31 October 2018, on which Taisen Holdings
effectively obtained the control over Lefeng Factoring, Rongfeng Investment and Hengyi Logistics.
This transaction is classified as a business combination involving entities under common control as
Lefeng Factoring, Rongfeng Investment, Hengyi Logistics and Taisen Holdings are all ultimately
controlled by Mingde Holdings prior and subsequent to the combination and the control is not
temporary.
On 31 October 2018, SF Holding Limited, one of the Company’s subsidiaries, acquired 100% equity
of Luxuriant View Limited held by Mingde Holdings Limited, which was under common control of
Mingde Holdings, the ultimate parent company. The combination date of this transaction is 31
October 2018, on which SF Holding Limited effectively obtained the control over Luxuriant View
Limited. This transaction is classified as a business combination involving entities under common
control as Luxuriant View Limited and SF Holding Limited are both ultimately controlled by Mingde
Holdings prior and subsequent to the combination and the control is not temporary.
The above subsidiaries acquired in a business combination involving entities under common control
were included in the consolidated financial statements from the date when they come under control
of the Company’s ultimate controlling party. Therefore, the Company adjusted the comparative
consolidated financial statements for the six months ended 30 June 2018.
234
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
5 Changes in the consolidation scope (Cont'd)
(3) Disposal of subsidiaries
(a) Aggregated information of subsidiaries disposed in the current period:
Difference between Amount transferred from
proceeds from disposal other comprehensive
Basis for and corresponding income related to initial
judgement of shares of net assets in equity investment to
Proceeds from Disposal Method of Timing of losing timing of the consolidated investment income or
Name of subsidiary disposal proportion disposal control losing control financial statements loss
Sales of Transfer of
Fengyi Technology (i) 135,000,000.00 67.50% equity 31 May 2019 control right 216,691,565.20 -
Sales of Transfer of
Xiamen Ruite 203,000,000.00 70.00% equity 31 January 2019 control right 48,778,482.36 -
S.F. Medical Supply Chain Sales of Transfer of
(Nanjing) Co., Ltd. 7,000,000.00 100.00% equity 30 June 2019 control right (1,443,874.53) -
345,000,000.00 264,026,173.03 -
235
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
5 Changes in the consolidation scope (Cont'd)
(3) Disposal of subsidiaries (Cont'd)
(b) Gains or losses on disposal are as follows:
(i) Fengyi Technology
The calculation of gains or losses on disposal is as follows:
Amount
Consideration received from the disposal 135,000,000.00
Add: Bear the loss of Fengyi Technology in the consolidated financial
statements 81,691,565.20
216,691,565.20
Add: Other comprehensive income transferred to the profit and loss
for the current period -
Investment income from disposal 216,691,565.20
(4) Other changes in the consolidation scope
(a) In the current period, the Group set up the following subsidiaries by cash:
Shanghai Fengpaida Supply Chain Co., Ltd.
Shenzhen Green Ear Technology Co., Ltd.
Shenzhen SF Express Zhongyuan Network Technology Co., Ltd.
Shenzhen Yike Technology Co., Ltd.
Beijing Fenglejia Hotel Management Co., Ltd.
SF Pharmaceutical Supply Chain (Jilin) Co., Ltd.
Shanghai Haosiju Supply Chain Management Co., Ltd.
Shanghai Chengbai Technology Co., Ltd.
Wenzhou Jietai Enterprise Management Co., Ltd.
Huai'an Fengtai Enterprise Management Co., Ltd.
Suzhou Fengyutai Enterprise Management Co., Ltd.
Shenzhen Fenglian Technology Co., Ltd.
Hefei Jietai Enterprise Management Co., Ltd.
Shanghai Binxian Supply Chain Management Co., Ltd.
Yunnan Shunzhu Xinfeng Express Co., Ltd.
Xinjiang Shunxin Jeda Express Co., Ltd.
Fenghao Supply Chain (Shenzhen) Co., Ltd.
Shanghai Fang’anjia Supply Chain Co., Ltd.
Luoyang Fengnong Technology Co., Ltd.
Hangzhou Shuangjie Supply Chain Co., Ltd.
Quanzhou fengyutai Business Management
Yiwu Fengyutai Enterprise Management Co., Ltd.
Jiaxing Hongjie Enterprise Management Co., Ltd.
SF Intra-city Holdings Limited
Exel Logistics (Weihai) Co., Ltd.
Wuhan Jufeng Supply Chain Management Co., Ltd.
Yangzhou Fengyutai Enterprise Management Co., Ltd.
Shenzhen Fengchi Shuntong Information Technology Co., Ltd.
Wuhan Shunheng Express Co., Ltd.
Langfang SF Express Co., Ltd.
236
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
5 Changes in the consolidation scope (Cont'd)
(4) Other changes in the consolidation scope (Cont'd)
(a) In the current period, the Group set up the following subsidiaries by cash (Cont'd):
SF Sharing Precision Information Technology (Shenzhen) Co., Ltd.
Xi'an SF Information Service Co., Ltd.
Shenzhen Yijiayi Technology Co., Ltd.
Guangdong Zhifan Technology Co., Ltd.
SF Logistics Private Limited
Shanghai Shunru Fenglai Technology Co., Ltd.
Hangzhou SF Intra-city Industrial Co., Ltd.
Sichuan Fengnong Technology Co., Ltd.
237
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
6 Interests in other entities
(1) Interests in subsidiaries
(a) First-tier and second-tier subsidiaries of the Group are as follows:
Shareholding (%)
Major
Place of business
registration location Registered capital Nature of business Direct Indirect Method of acquisition
Taisen Holdings Shenzhen Shenzhen RMB 2 billion Investment holding 100% - Reverse acquisitions
International freight forwarding, domestic Business combination involving
S.F. Express Shenzhen Shenzhen RMB 150 million and international express service, etc. - 100% enterprises under common control
Technical maintenance and development
SF Technology Shenzhen Shenzhen RMB 50 million service - 100% By new establishment
Cargo transportation and freight Business combination involving
Shenzhen Shunlu Logistics Co., Ltd. Shenzhen Shenzhen RMB 150 million forwarding - 100% enterprises under common control
Anhui S.F. Telecommunication Service Anhui Anhui
Co., Ltd. Province Province RMB 50 million Value-added telecommunication service - 100% By new establishment
Shenzhen Yuhui Management Consulting Business combination involving
Co., Ltd. Shenzhen Shenzhen RMB 250 million Consulting service - 100% enterprises under common control
Supply chain management and other
Shenzhen S.F. Supply Chain Co., Ltd. Shenzhen Shenzhen RMB 700 million services - 100% By new establishment
Business combination involving
SF Airlines Shenzhen Shenzhen RMB 1,500 million Transport service of aviation cargo - 100% enterprises under common control
Business combination involving
Dongguan Jiada Express Service Co., Ltd. Dongguan Dongguan RMB 4 million Cargo express agent service - 100% enterprises under common control
Shenzhen Fengtai E-Commerce Industrial E-Commerce industrial park asset Business combination involving
Park Asset Management Ltd. Shenzhen Shenzhen RMB 4,800 million management - 100% enterprises under common control
Shenzhen Fengtai E-Commerce Industrial
Park Investment Ltd. Shenzhen Shenzhen RMB 55 million Management consulting - 100% By new establishment
Shenzhen S. F. Airport Investment Co.,
Ltd. Shenzhen Shenzhen RMB 100 million Industrial investment - 100% By new establishment
Business combination involving
SF Holding Limited Hong Kong Hong Kong HKD 10,000 Investment holding - 100% enterprises under common control
Financing, wealth management and
Group Finance Company Shenzhen Shenzhen RMB 1,000 million consulting services - 100% By new establishment
238
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
6 Interests in other entities (Cont'd)
(1) Interests in subsidiaries (Cont'd)
(a) First-tier and second-tier subsidiaries of the Group are as follows (Cont'd):
Shareholding
(%)
Place of Major business
registration location Registered capital Nature of business Direct Indirect Method of acquisition
Shenzhen SF Chuangxing Investment Co., Ltd. Shenzhen Shenzhen RMB 150 million Industrial investment - 100% By new establishment
Shenzhen Fengnong Technology Co., Ltd. Shenzhen Shenzhen RMB 5 million Retail - 100% By new establishment
Supply chain management
Shenzhen Fenglang Supply Chain Co., Ltd. Shenzhen Shenzhen RMB 30 million and other services - 100% By new establishment
Shenzhen Shunfeng Runtai Management Consulting Co., Ltd. Shenzhen Shenzhen RMB 5 million Consulting service - 100% By new establishment
Shunyuan Leasing (Tianjin) Company Limited Tianjin Tianjin RMB 170 million Leasing business - 100% By new establishment
SF Multimodal Transport Co., Ltd. Shenzhen Shenzhen RMB 200 million Goods delivery services - 100% By new establishment
Shenzhen Zhongpulasi Network Technology Co., Ltd. Shenzhen Shenzhen RMB 20 million Freight forwarding service - 100% By new establishment
Shenzhen Shunxi Management Consulting Co., Ltd. Shenzhen Shenzhen RMB 2 million Management consulting - 100% By new establishment
S.F. Insurance Broker (Shenzhen) Co., Ltd. Shenzhen Shenzhen RMB 50 million Insurance business - 100% By new establishment
Shenzhen S.F. Tongcheng Logistics Co., Ltd. Shenzhen Shenzhen RMB 100 million Freight forwarding service - 100% By new establishment
S.F. Duolian Technology Co., Ltd. Dongguan Dongguan RMB 150 million Technology development - 100% By new establishment
Real estate development and
Dongguan SF Taisen Enterprise Management Co., Ltd. Dongguan Dongguan RMB 30 million operation - 100% By new establishment
Information technology
SF Innovative Technology Co., Ltd. Dongguan Dongguan RMB 50 million service - 100% By new establishment
R&D, development and sales
Rongyilian Technology (Shenzhen) Co., Ltd. Shenzhen Shenzhen RMB 50 million of systems - 100% By new establishment
Business combination
involving enterprises under
Shunheng Rongfeng Shenzhen Shenzhen RMB 100 million Consulting service - 100% common control
Business combination
involving enterprises under
Hengyi Logistics Shenzhen Shenzhen RMB 100 million Freight forwarding service - 100% common control
Business combination
involving enterprises under
Lefeng Factoring Shenzhen Shenzhen RMB 50 million Factoring - 100% common control
239
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
6 Interests in other entities (Cont'd)
(1) Interests in subsidiaries (Cont'd)
(a) First-tier and second-tier subsidiaries of the Group are as follows (Cont'd):
Shareholding (%)
Place of Major business
registration location Registered capital Nature of business Direct Indirect Method of acquisition
Supply chain management
Hangzhou SF Intra-city Industrial Co., Ltd. Hangzhou Hangzhou RMB 160 million and other services - 92.50% By new establishment
Supply chain management
Shanghai Haosiju Supply Chain Management Co., Ltd. Shanghai Shanghai RMB 20 million and other services - 100% By new establishment
Supply chain management
SF Intra-city Holdings Limited Hangzhou Hangzhou RMB 425 million and other services - 96.47% By new establishment
Shenzhen SF Express Zhongyuan Network Technology Technology development
Co., Ltd. Shenzhen Shenzhen RMB 10 million and consulting services - 100% By new establishment
SF Sharing Precision Information Technology (Shenzhen) Information technology
Co., Ltd. Shenzhen Shenzhen RMB 30 million service - 100% By new establishment
Supply chain
management and other
Shanghai Fengpaida Supply Chain Co., Ltd. Shanghai Shanghai RMB 20 million services - 100% By new establishment
Supply chain
management and other
Hangzhou Shuangjie Supply Chain Co., Ltd. Hangzhou Hangzhou RMB 50 million services - 100% By new establishment
Domestic and
international freight
Shenzhen SF Express Co., Ltd. Shenzhen Shenzhen RMB 50 million forwarding services - 100% By new establishment
240
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
6 Interests in other entities (Cont'd)
(1) Interests in subsidiaries (Cont'd)
(b) Subsidiaries in which the Group has significant minority interests
As at 30 June 2019, minority interests of the Group's subsidiaries had no significant influence on the
Group.
(2) Interests in joint ventures and associates
(a) The Group’s associates have no significant influence on the Group and are summarised as follows:
Ending balance/ Opening balance/
Amount in the current Amount in the prior
period period
Aggregated carrying amount of investments
(Note 4(13)(b)) 940,031,915.72 905,086,455.64
Aggregation of the following items in
proportion:
Net loss (43,797,771.14) (46,275,641.77)
Other comprehensive income (1,956,923.83) (40,122.08)
Total comprehensive income (45,754,694.97) (46,315,763.85)
As at 30 June 2019, an unrecognised investment loss amounted to RMB 4,895,575.74 (for the six
months ended 30 June 2018: RMB 13,429,763.49) in the financial statements for the current period
because the carrying amount of long-term equity investments in investees was written down to RMB
0.
(b) The Group’s joint ventures have no significant influence on the Group and are summarised as follows:
Ending balance/ Opening balance/
Amount in the current Amount in the prior
period period
Aggregated carrying amount of investments
(Note 4(13)(a)) 1,310,815,044.54 1,298,344,666.39
Aggregation of the following items in
proportion:
Net (loss)/profit (7,187,638.39) 8,955,723.70
Other comprehensive income 842,393.75 1,422,854.91
Total comprehensive income (6,345,244.64) 10,378,578.61
241
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
7 Segment information
The segment information is not presented any more since the Group mainly provides express &
logistics service and there is only one major business segment.
8 Related parties and related party transactions
(1) General information of the controlling shareholder and subsidiaries
The general information and other related information of the subsidiaries are set out in Note 6(1).
(a) General information of the controlling shareholder
Place of registration Nature of business
Mingde Holdings Shenzhen Investment
The Company’s ultimate holding company is Mingde Holdings, and the ultimate controlling person is
Wang Wei.
(b) The balances and changes of registered capital of the controlling shareholder
31 December Increase in the Decrease in the
2018 current period current period 30 June 2019
Mingde Holdings 113,405,734.21 - - 113,405,734.21
(c) The percentages of shareholding and voting rights in the Company held by the parent company
30 June 2019 31 December 2018
Shareholding Voting rights Shareholding Voting rights
(%) (%) (%) (%)
Mingde Holdings 61.20% 61.20% 61.15% 61.15%
242
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
8 Related parties and related party transactions (Cont’d)
(2) Nature of related parties that do not control/are not controlled by the Company
Major related parties are listed as follows:
Relationship with the Company in the reporting
period
Significantly influenced by the key management of
Juneyao Airlines Co., Ltd. Note 1 the Company before June 2017
Significantly influenced by the key management of
Shenzhen Henglu Logistics Co., Ltd. the Company before September 2018
Ping An Insurance (Group) Company of China, Ltd. Significantly influenced by the key management of
(“Ping An Insurance”) and its subsidiaries the Company
China Pacific Insurance (Group) Co., Ltd. (“Pacific Significantly influenced by the key management of
Insurance”) and its subsidiaries the Company
Significantly influenced by the key management of
McDonald’s and its subsidiaries the Company
Significantly influenced by the key management of
Shenzhen Qianhai Webank Co., Ltd. the Company
CITIC Securities Co., Ltd. (“CITIC Securities”) and its Significantly influenced by the key management of
subsidiaries Note 2 the Company
Shenghai Information The Group’s joint venture
POST11O The Group’s joint venture
ZBHA and its subsidiaries The Group’s joint venture
CR-SF International Express Co., Ltd.Note 3 The Group’s joint venture
Wenzhou Fengbaoke Technology Co., Ltd.Note 3 The Group’s joint venture
Zhongyunda Aviation Ground Services Co., Ltd. The Group’s joint venture
Geling Information and its subsidiaries The Group’s joint venture
Global Connect Holding Limited The Group’s joint venture
Wulian Shuntong and its subsidiaries Note 3 The Group’s joint venture
Beijing Shunhe Tongxin Technology Co., Ltd. The Group’s joint venture
Shenzhen Shun Jie Feng Da Express Co., Ltd. The Group’s associate
SF Lottery The Group’s associate
Little Red Hat and its subsidiaries The Group’s associate
Hubei Jiuzhou Tongda Technology Development Co.,
Ltd. The Group’s associate
Shenzhen Zhihang UAV Co., Ltd. The Group’s associate
Xi'an Huahan Airline Passenger and Cargo Service
Co., Ltd.Note 3 The Group’s associate
Qingdao Dakai Cargo Agency Co., Ltd.Note 3 The Group’s associate
Beijing Dazhangfang and its subsidiaries Note 3 The Group’s associate
Canbeidou Supply Chain and its subsidiaries Note 3 The Group’s associate
Chongqing Boqiang Logistics Co., Ltd. Note 3 The Group’s associate
Kin Shun Information Technology Co., Ltd. Note 4 The Group’s associate
Shanghai Qianqu Network Technology Co., Ltd.
(“Qianqu Network”) and its subsidiaries The Group’s associate
Controlled by the ultimate controlling person of the
Fengyi Technology Note 5 Company
Controlled by the ultimate controlling person of the
S. F. Holding (Group) Commerce Co., Ltd. Note 6 Company
243
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
8 Related parties and related party transactions (Cont’d)
(2) Nature of related parties that do not control or are not controlled by the Company (Cont'd)
Relationship with the Company in the reporting period
Zhuhai Shunxiaofeng Commercial Co.,
Ltd.Note 6 Controlled by the ultimate controlling person of the Company
Zhongshan Shunxiaofeng Commerce Co.,
Ltd.Note 6 Controlled by the ultimate controlling person of the Company
Huizhou S.F. Commercial Co., Ltd.Note 6 Controlled by the ultimate controlling person of the Company
Heyuan S.F. Commercial Co., Ltd.Note 6 Controlled by the ultimate controlling person of the Company
Changzhou Shunxiaofeng Commerce Co.,
Ltd.Note 6 Controlled by the ultimate controlling person of the Company
Shantou S.F. Commercial Co., Ltd.Note 6 Controlled by the ultimate controlling person of the Company
Jiangmen Shunyifeng Commercial Co.,
Ltd.Note 6 Controlled by the ultimate controlling person of the Company
Jiangsu Shunxiaofeng Commerce Co.,
Ltd.Note 6 Controlled by the ultimate controlling person of the Company
Suzhou Industrial Park Shunhengshun
Commerce Co., Ltd.Note 6 Controlled by the ultimate controlling person of the Company
Lianyungang Shunxiaofeng Commerce Co.,
Ltd.Note 6 Controlled by the ultimate controlling person of the Company
Zhenjiang S.F. Commerce Co., Ltd. Note 6 Controlled by the ultimate controlling person of the Company
Xuzhou Shunxiaofeng Commerce Co.,
Ltd.Note 6 Controlled by the ultimate controlling person of the Company
Suqian Shunxiaofeng Commerce Co.,
Ltd.Note 6 Controlled by the ultimate controlling person of the Company
Huai'an Shunxiaofeng Commerce Co.,
Ltd.Note 6 Controlled by the ultimate controlling person of the Company
Yangzhou Shunheng Commerce Co.,
Ltd.Note 6 Controlled by the ultimate controlling person of the Company
Taizhou Shunjiefeng Commerce Co., Ltd.Note 6 Controlled by the ultimate controlling person of the Company
Qinghai Shunxiaofeng Commerce Co.,
Ltd.Note 6 Controlled by the ultimate controlling person of the Company
Wuxi Shunfengshun Commerce Co., Ltd.Note 6 Controlled by the ultimate controlling person of the Company
Yancheng Shunxiaofeng Commerce Co.,
Ltd.Note 6 Controlled by the ultimate controlling person of the Company
Zhejiang S.F. Commerce Co., Ltd.Note 6 Controlled by the ultimate controlling person of the Company
Wenzhou S.F. Commercial Co., Ltd.Note 6 Controlled by the ultimate controlling person of the Company
Taizhou Shunxiaofeng Commerce Co.,
Ltd.Note 6 Controlled by the ultimate controlling person of the Company
Shaoxing Shunxiaofeng Commerce Co.,
Ltd.Note 6 Controlled by the ultimate controlling person of the Company
Ningbo Shunxiaofeng Commerce Co.,
Ltd.Note 6 Controlled by the ultimate controlling person of the Company
Huzhou Shun Xiao Commerce Co., Ltd.Note 6 Controlled by the ultimate controlling person of the Company
Jiaxing Shun Xiao Commerce Co., Ltd.Note 6 Controlled by the ultimate controlling person of the Company
Jinhua S.F. Commercial Co., Ltd.Note 6 Controlled by the ultimate controlling person of the Company
Shenzhen Shunshang Investment Co.,
Ltd.Note 6 Controlled by the ultimate controlling person of the Company
Shenzhen S.F. Commerce Co., Ltd.Note 6 Controlled by the ultimate controlling person of the Company
Foshan Shunxiaofeng Commerce Co.,
Ltd.Note 6 Controlled by the ultimate controlling person of the Company
244
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
8 Related parties and related party transactions (Cont’d)
(2) Nature of related parties that do not control/are not controlled by the Company (Cont’d)
Relationship with the Company in the reporting period
Quzhou Shunyifeng Commerce Co., Ltd.Note 6 Controlled by the ultimate controlling person of the Company
Liaoning Shunyifeng Commercial Co., Ltd.
Note 6
Controlled by the ultimate controlling person of the Company
Dalian Shunyifeng Commerce Co., Ltd.Note 6 Controlled by the ultimate controlling person of the Company
Shandong Shunxiaofeng Commerce Co., Ltd.
Note 6 Controlled by the ultimate controlling person of the Company
Qingdao Shunyifeng Commercial Co., Ltd.
Note 6 Controlled by the ultimate controlling person of the Company
Beijing Shunxiaofeng Commercial Co., Ltd.
Note 6
Controlled by the ultimate controlling person of the Company
Shanghai S.F. Industrial Co., Ltd. Note 6 Controlled by the ultimate controlling person of the Company
Xiamen S.F. Commerce Co., Ltd. Note 6 Controlled by the ultimate controlling person of the Company
Chongqing Shunxiaofeng Commerce Co.,
Ltd. Note 6 Controlled by the ultimate controlling person of the Company
Jiangxi Shunxiaofeng Commerce Co., Ltd.
Note 6
Controlled by the ultimate controlling person of the Company
Tianjin Shunfengshun Commerce Co., Ltd.Note
6 Controlled by the ultimate controlling person of the Company
Inner Mongolia S.F. Commerce Co., Ltd. Note 6 Controlled by the ultimate controlling person of the Company
Shanxi Shunxiaofeng Commerce Co., Ltd.Note
6
Controlled by the ultimate controlling person of the Company
Jilin S.F. Commerce Co., Ltd. Note 6 Controlled by the ultimate controlling person of the Company
Guangxi Shunyifeng Commerce Co., Ltd.Note 6 Controlled by the ultimate controlling person of the Company
Hainan S.F. Commercial Co., Ltd. Note 6 Controlled by the ultimate controlling person of the Company
Shaanxi Shunyifeng Commerce Co., Ltd. Note 6 Controlled by the ultimate controlling person of the Company
Hunan Shunyifeng Commercial Co., Ltd. Note 6 Controlled by the ultimate controlling person of the Company
Hubei Shunyifeng Commercial Co., Ltd. Note 6 Controlled by the ultimate controlling person of the Company
Anhui Shunxiaofeng Commerce Co., Ltd. Note
6 Controlled by the ultimate controlling person of the Company
Henan Shunyifeng Commerce Co., Ltd. Note 6 Controlled by the ultimate controlling person of the Company
Gansu S.F. Commercial Co., Ltd. Note 6 Controlled by the ultimate controlling person of the Company
Hebei Shunxiaofeng Commerce Co., Ltd. Note
6
Controlled by the ultimate controlling person of the Company
Fujian Shunyifeng Commercial Co., Ltd. Note 6 Controlled by the ultimate controlling person of the Company
Sichuan Shunyifeng Commerce Co., Ltd. Note 6 Controlled by the ultimate controlling person of the Company
Heilongjiang Shunyifeng Commerce Co., Ltd.
Note 6 Controlled by the ultimate controlling person of the Company
Dongguan Shunxiaofeng Commerce Co., Ltd.
Note 6
Controlled by the ultimate controlling person of the Company
Zhaoqing Shunyifeng Commerce Co., Ltd. Note
6 Controlled by the ultimate controlling person of the Company
Dongguan S.F. Commercial Co., Ltd. Note 6 Controlled by the ultimate controlling person of the Company
Shenzhen S.F. Electronic Commerce Co.,
Ltd. Note 6 Controlled by the ultimate controlling person of the Company
Beijing S.F. E-commerce Co., Ltd. Note 6 Controlled by the ultimate controlling person of the Company
S. F. You Xuan International Co., Ltd. Note 6 Controlled by the ultimate controlling person of the Company
245
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
8 Related parties and related party transactions (Cont’d)
(2) Nature of related parties that do not control/are not controlled by the Company (Cont’d)
Relationship with the Company in the reporting period
Controlled by the ultimate controlling person of the
Fengchengda Network Technology Co., Ltd. Company
Controlled by the ultimate controlling person of the
Shenzhen S.F. Hefeng Microfinance Co., Ltd. Company
Controlled by the ultimate controlling person of the
Shenzhen Mingde Fengtai Investment Co., Ltd. Company
Hive Box Technology Held by the ultimate holding company
Significantly influenced by close family members of the
Zhiye Enterprise Co., Ltd. ultimate controlling person.
Organisation sponsored by controlling shareholders and
the Company’s subsidiaries, in which director and
supervisor of the company serve on the Board of
SF Charity Foundation Management
Suzhou Ruihuang Equity Investment Management Another company in which a director of the Group acts
Limited Partnership as managing partner
Note 1: Other companies on which key management personnel of the Company had significant influence
before 30 June 2017. Pursuant to the Listing Rules of Shenzhen Stock Exchange, Juneyao Airlines
Co., Ltd. was no longer a related party of the Group since 30 June 2018. The related party
transactions with Juneyao Airlines Co., Ltd. disclosed in the financial statements refer to the
transaction volumes for the period from January to June 2018.
Note 2: CITIC Securities and its subsidiaries became related parties of the Group in may 2019, the related
transactions disclosed in the financial statement represents transactions from May to June 2019, and
it's transactions with the Group during the period from January to June 2018 are presented as “Not
applicable”.
Note 3: These companies became related parties of the Group in the period from July to December 2018,
so their transactions with the Group during the period from January to June 2018 are presented as
“Not applicable”.
Note 4: The company is a new associate of the Group for the reporting period. The related party transactions
disclosed in the financial statements refer to the ones made in the period from January to June 2019,
so their transactions with the Group during the period from January to June 2018 are presented as
“Not applicable”.
Note 5: The company used to be a subsidiary of the Group. As described in Note 5(3), the Group lost actual
control over Fengyi Technology since 1 June 2019 and stopped including it in the scope of
consolidation. The related party transactions with Fengyi Technology disclosed in the financial
statements represents the transation made in June 2019, so its transactions with the Group during
the period from January to June 2018 are presented as “Not applicable”.
Note 6: They are subsidiaries of S. F. Holding (Group) Commerce Co., Ltd..S. F. Holding (Group) Commerce
Co., Ltd. and its subsidiaries are hereinafter referred to as “Commerce Holding and its subsidiaries”.
246
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
8 Related parties and related party transactions (Cont’d)
(3) Related party transactions
(a) Pricing policies
The pricing method of transactions and transaction price between the Group and related parties are
determined, following arm's length principle, by making reference to the market price or through
negotiation between both parties.
(b) Income from courier service, combined transport and freight forwarding services
For the six months ended 30 June
2019 2018
McDonald’s and its subsidiaries 552,358,228.73 102,481,373.75
Commerce Holding and its subsidiaries 56,252,063.81 56,375,336.54
Ping An Insurance and its subsidiaries 49,226,861.66 38,999,609.26
Zhongyunda Aviation Ground Services Co.,
Ltd. 18,742,561.01 -
Pacific Insurance and its subsidiaries 12,548,160.80 9,151,322.54
Fengchengda Network Technology Co., Ltd. 3,530,601.86 6,145,205.76
Fengyi Technology 1,573,912.41 Not applicable
CITIC Securities and its subsidiaries 1,358,208.06 Not applicable
Shenzhen Henglu Logistics Co., Ltd. 1,076,516.85 725,251.59
Geling Information and its subsidiaries - 2,304,109.62
Others 2,281,523.70 2,692,606.58
698,948,638.89 218,874,815.64
(c) Communication income
For the six months ended 30 June
2019 2018
Hive Box Technology 12,407,113.50 13,788,232.03
Others 645,461.54 565,644.90
13,052,575.04 14,353,876.93
247
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
8 Related parties and related party transactions (Cont’d)
(3) Related party transactions (Cont’d)
(d) Commission income for collection and settlement on behalf of related parties
For the six months ended 30 June
2019 2018
Shenzhen S.F. Hefeng Microfinance Co.,
Ltd. 2,306,831.36 2,659,098.50
Commerce Holding and its subsidiaries 165,762.13 327,067.81
Others 47,965.01 3,854.87
2,520,558.50 2,990,021.18
(e) Income from platform and other services
For the six months ended 30 June
2019 2018
Fengyi Technology 877,253.67 Not applicable
SF Lottery 102,242.61 282,946.85
Commerce Holding and its subsidiaries 68,447.98 9,103,589.92
Shenzhen S.F. Hefeng Microfinance Co.,
Ltd. - 1,634,252.04
Others 179,174.99 -
1,227,119.25 11,020,788.81
(f) Technology development service income
For the six months ended 30 June
2019 2018
Commerce Holding and its subsidiaries 1,386,459.91 37,061,216.46
Pacific Insurance and its subsidiaries 5,858,490.57 -
Hive Box Technology - 169,811.32
7,244,950.48 37,231,027.78
248
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
8 Related parties and related party transactions (Cont’d)
(3) Related party transactions (Cont’d)
(g) Revenue from rent and property management
For the six months ended 30 June
2019 2018
Commerce Holding and its subsidiaries 531,933.13 230,658.63
Others 945,000.14 38,043.71
1,476,933.27 268,702.34
(h) Interest income
For the six months ended 30 June
2019 2018
Mingde Holdings - 2,070,126.30
(i) Sales of equity
For the six months ended 30 June
2019 2018
Mingde Holdings 135,000,000.00 -
The Group transferred its 67.50% equity interest in Fengyi Technology to Mingde Holdings on 31
May 2019, and the income from sales of equity of RMB 216,691,565.20 was recognised (Note 5(3)).
(j) Purchase of equity
For the six months ended 30 June
2019 2018
Shenzhen Mingde Fengtai Investment
Co., Ltd. - 67,042,100.00
249
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
8 Related parties and related party transactions (Cont’d)
(3) Related party transactions (Cont’d)
(k) Combined transport and freight forwarding expenses
For the six months ended 30 June
2019 2018
CR-SF International Express Co., Ltd. 80,777,966.02 Not applicable
Shenzhen Shun Jie Feng Da Express Co.,
Ltd. 65,885,668.41 94,210,538.42
POST11O 33,923,159.79 48,553,701.67
Zhongyunda Aviation Ground Services Co.,
Ltd. 11,072,794.55 -
Kin Shun Information Technology Co., Ltd. 11,335,714.80 Not applicable
Qingdao Dakai Cargo Agency Co., Ltd. 11,254,210.89 Not applicable
Xi'an Huahan Airline Passenger and Cargo
Service Co., Ltd. 9,021,788.33 Not applicable
Juneyao Airlines Co., Ltd. Not applicable 25,416,371.26
Little Red Hat and its subsidiaries 5,582,879.06 3,330,010.85
Wulian Shuntong and its subsidiaries 4,582,295.35 Not applicable
Chongqing Boqiang Logistics Co., Ltd. 6,467,064.68 Not applicable
Others - 316,786.48
239,903,541.88 171,827,408.68
(l) Express delivery agent and other service fees
For the six months ended 30 June
2019 2018
Hive Box Technology 10,158,052.14 1,490,566.23
Commerce Holding and its subsidiaries 2,595,990.29 4,604,362.86
Global Connect Holding Limited 510,519.23 -
Others 330,530.72 429,333.33
13,595,092.38 6,524,262.42
(m) Interest expenses
For the six months ended 30 June
2019 2018
Mingde Holdings - 4,491,859.93
250
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
8 Related parties and related party transactions (Cont’d)
(3) Related party transactions (Cont’d)
(n) Collection commissions fee
For the six months ended 30 June
2019 2018
Hive Box Technology 38,292,379.47 24,193,805.30
(o) Security service fee
For the six months ended 30 June
2019 2018
ZBHA and its subsidiaries 57,702,536.53 2,283,057.50
(p) Rent and property management fees
For the six months ended 30 June
2019 2018
Shenghai Information 9,266,275.07 6,791,744.03
Canbeidou Supply Chain and its
subsidiaries 1,699,556.69 Not applicable
Zhiye Enterprise Co., Ltd. 155,909.70 163,514.20
11,121,741.46 6,955,258.23
(q) Management fee
For the six months ended 30 June
2019 2018
Suzhou Ruihuang Equity Investment
Management Limited Partnership 5,000,000.00 5,000,000.00
(r) Technology development and operation & maintenance service fee
For the six months ended 30 June
2019 2018
Shenghai Information 14,216,580.06 5,961,166.33
Beijing Shunhe Tongxin Technology Co., Ltd. 1,328,216.32 -
Shenzhen Zhihang UAV Co., Ltd. 342,676.74 -
15,887,473.12 5,961,166.33
251
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
8 Related parties and related party transactions (Cont’d)
(3) Related party transactions (Cont’d)
(s) Promotion fee
For the six months ended 30 June
2019 2018
Commerce Holding and its subsidiaries 5,138,819.77 7,272,898.58
Others 416,405.02 -
5,555,224.79 7,272,898.58
(t) Guarantee received
For the six months ended 30 June
2019 2018
Mingde Holdings - 200,000,000.00
(u) Purchase of materials
For the six months ended 30 June
2019 2018
Hubei Jiuzhou Tongda Technology
Development Co., Ltd. 92,406,868.08 -
Commerce Holding and its subsidiaries 41,772,747.36 29,429,604.52
Wenzhou Fengbaoke Technology Co., Ltd. 6,823,613.26 Not applicable
Shenghai Information 579,897.05 1,111,729.29
Others 73,636.83 -
141,656,762.58 30,541,333.81
252
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
8 Related parties and related party transactions (Cont’d)
(3) Related party transactions (Cont’d)
(v) Insurance premium
For the six months ended 30 June
2019 2018
Pacific Insurance and its subsidiaries 45,062,064.16 50,963,129.09
Ping An Insurance and its subsidiaries 2,111,341.83 -
47,173,405.99 50,963,129.09
Insurance premium represents the amount amortised over the benefit period of insurance policies.
(w) Donation expenses
For the six months ended 30 June
2019 2018
SF Charity Foundation 1,000,000.00 40,000,000.00
(x) Remuneration of key management
For the six months ended 30 June
2019 2018
Remuneration of key management 34,260,000.00 23,545,200.00
253
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
8 Related parties and related party transactions (Cont’d)
(4) Receivables from and payables to related parties
(a) Accounts receivable
30 June 2019 31 December 2018
McDonald’s and its subsidiaries 171,219,373.24 116,441,890.28
Commerce Holding and its subsidiaries 80,932,229.81 37,514,388.15
Qianqu Network and its subsidiaries(i) 13,255,247.18 13,261,064.53
Fengyi Technology 11,028,575.09 Not applicable
Ping An Insurance and its subsidiaries 9,303,707.08 9,671,474.65
Zhongyunda Aviation Ground Services Co.,
Ltd. 8,575,329.03 6,816.00
Pacific Insurance and its subsidiaries 4,322,422.97 3,166,845.54
Geling Information and its subsidiaries 1,505,899.40 1,962,406.40
Fengchengda Network Technology Co., Ltd. 1,394,526.30 1,317,672.78
Shenzhen S.F. Hefeng Microfinance Co.,
Ltd. 860,781.46 3,385,444.13
Hive Box Technology 124,718.85 97,084.00
POST11O - 598,526.15
Others 838,592.35 673,924.86
303,361,402.76 188,097,537.47
(i) The Group has made full provision for bad debts of accounts receivable of RMB 13,255,247.18 from
Qianqu Network and its subsidiaries.
(b) Advances to suppliers
30 June 2019 31 December 2018
Pacific Insurance and its subsidiaries 12,786,790.55 20,150,437.55
CR-SF International Express Co., Ltd. 12,715,576.00 -
Hive Box Technology 7,639,995.81 6,158,027.66
Ping An Insurance and its subsidiaries 1,127,200.44 1,927,651.63
Commerce Holding and its subsidiaries 504,847.48 2,712,227.05
Others 517,801.71 289,068.36
35,292,211.99 31,237,412.25
254
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
8 Related parties and related party transactions (Cont’d)
(4) Receivables from and payables to related parties (Cont’d)
(c) Other receivables
30 June 2019 31 December 2018
Hive Box Technology 189,018,739.98 125,183,355.20
McDonald’s and its subsidiaries 54,008,413.33 53,253,508.22
Beijing Dazhangfang and its subsidiaries 35,000,000.00 -
Commerce Holding and its subsidiaries 8,094,310.54 9,323,931.18
Ping An Insurance and its subsidiaries 5,012,054.31 30,070.00
Shenzhen S.F. Hefeng Microfinance Co.,
Ltd. 753,606.03 -
Pacific Insurance and its subsidiaries 64,067.65 86,000.53
Others 967,808.73 496,081.17
292,919,000.57 188,372,946.30
(d) Other non-current assets
30 June 2019 31 December 2018
Hubei Jiuzhou Tongda Technology
Development Co., Ltd. - 52,158,000.00
255
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
8 Related parties and related party transactions (Cont’d)
(4) Receivables from and payables to related parties (Cont’d)
(e) Accounts payable
30 June 2019 31 December 2018
CR-SF International Express Co., Ltd. 43,587,022.65 10,109,885.26
Shenzhen Shun Jie Feng Da Express Co.,
Ltd. 20,327,676.11 7,112,807.99
POST11O 13,952,739.48 24,146,862.13
Commerce Holding and its subsidiaries 12,311,158.70 15,672,110.75
Pacific Insurance and its subsidiaries 10,640,519.21 11,040,965.27
Shenghai Information 8,533,544.29 999,252.61
ZBHA and its subsidiaries 7,817,225.25 7,953,612.69
Zhongyunda Aviation Ground Services Co.,
Ltd. 5,704,009.43 1,561,827.81
Fengyi Technology 4,131,467.19 Not applicable
Wulian Shuntong and its subsidiaries 3,737,623.15 -
Shenzhen S.F. Hefeng Microfinance Co.,
Ltd. 2,377,056.73 2,431,348.44
Kin Shun Information Technology Co., Ltd. 2,071,625.37 Not applicable
Wenzhou Fengbaoke Technology Co., Ltd. 509,946.79 15,362,813.16
Hive Box Technology 87,181.09 1,310,413.21
Little Red Hat and its subsidiaries - 858,030.61
Global Connect Holding Limited - 791,240.39
Others 188,007.55 1,964,972.12
135,976,802.99 101,316,142.44
(f) Advances from customers
30 June 2019 31 December 2018
McDonald’s and its subsidiaries 25,198,960.06 14,397,015.09
Commerce Holding and its subsidiaries 3,885,472.04 4,340,938.92
Ping An Insurance and its subsidiaries 973,044.49 1,147,918.49
Fengyi Technology 632,782.63 Not applicable
Shenzhen Qianhai Webank Co., Ltd. 20,743.70 1,229,168.70
Others 811,071.93 433,683.68
31,522,074.85 21,548,724.88
256
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
8 Related parties and related party transactions (Cont’d)
(4) Receivables from and payables to related parties (Cont’d)
(g) Other payables
30 June 2019 31 December 2018
Beijing Dazhangfang and its subsidiaries 33,537,651.04 -
McDonald’s and its subsidiaries 8,946,418.64 12,778,631.48
Suzhou Ruihuang Equity Investment
Management Limited Partnership 5,000,000.00 -
Hubei Jiuzhou Tongda Technology
Development Co., Ltd. 1,770,685.84 683,500.00
Shenzhen S.F. Hefeng Microfinance Co.,
Ltd. 1,453,384.21 -
Hive Box Technology 1,275,125.00 -
Commerce Holding and its subsidiaries 1,165,233.11 1,234,103.14
Qianqu Network and its subsidiaries 897,104.92 897,104.92
Fengyi Technology 661,686.73 Not applicable
Pacific Insurance and its subsidiaries 485,951.24 1,271,899.21
Shenghai Information 205,858.62 2,879,887.34
Others 522,080.11 348,968.18
55,921,179.46 20,094,094.27
9 Share-based payment
(1) Overview of share-based payment
30 June 2019
Total restricted shares granted at the beginning of the period 7,751,734.00
Add: Total restricted shares granted during the period -
Less: Total restricted shares unlocked during the period (1,113,173.00)
Total restricted shares forfeited during the period (4,181,993.00)
Total restricted shares granted at the end of the period 2,456,568.00
The exercise price of outstanding restricted shares at the end of the period
and residual life of the restricted shares contracts Refer to Note 9(2)
Expenses recognised for the period arising from share-based payment were as follows:
For the six months ended 30 June
2019 2018
Equity-settled share-based payment 15,597,712.81 23,930,346.08
Cash-settled share-based payment 17,652,804.63 423,976.70
33,250,517.44 24,354,322.78
257
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
9 Share-based payment(Cont’d)
(2) Information on equity-settled share-based payment
(a) Information on equity-settled share-based payment of the Company
As at 30 November 2017, the Company held the 4th interim shareholders’ meeting in 2017, at which
the proposal of the Restricted Shares Incentive Plan (Draft) and Summary for 2017 was approved.
Authorised by the 4th interim shareholders’ meeting in 2017, the Company held the 11th meeting of
the 4th Board of Directors on 27 December 2017, at which the Proposal of Granting Restricted
Shares to Incentive Recipients was approved. The restricted shares were granted on 27 December
2017 and entitled the holders to purchase restricted shares at a price of RMB 29.32 per share, which
was 50% of RMB 58.63, the average share price on the prior trading day (total transaction amount
on the prior trading day / total transaction volume on the prior trading day) before the Restricted
Shares Incentive Plan (Draft) of S.F. Holding Co., Ltd. for 2017 was released. The Company’s Board
of Directors was authorised to grant 802 qualified employees restricted ordinary A shares with a total
number of 2,705,400 shares at a consideration of RMB 29.32 per share, accounting for about 0.06%
of S.F. Holding’s total shares, which totalled 4,411,015,500 shares upon announcement of the
incentive plan.
As at 17 May 2018, the Company held the 2nd interim shareholders’ meeting in 2018, at which the
proposal of the Restricted Shares Incentive Plan (Draft) and Summary for 2018 was approved.
Authorised by the 2nd interim shareholders’ meeting in 2018, the Company held the 15th meeting of
the 4th Board of Directors on 13 June 2018, at which the Proposal of Granting Restricted Shares to
Incentive Recipients for 2018 was approved. The restricted shares were granted on 13 June 2018
and entitled the holders to purchase restricted shares at a price of RMB 24.33 per share, which was
50% of RMB 48.65, the average share price on the prior 20 trading days (total transaction amount
on the prior 20 trading days / total transaction volume on the prior 20 trading days) before the
Restricted Shares Incentive Plan (Draft) of S.F. Holding Co., Ltd. for 2018 was released. The Group’s
Board of Directors was authorised to grant 1,181 qualified employees restricted ordinary A shares
with a total number of 5,421,881 shares at a consideration of RMB 24.33 per share, accounting for
about 0.12% of the Company’s total shares, which totalled 4,413,572,200 shares upon
announcement of the incentive plan.
The post lock-up periods and their schedules for the restricted shares for 2017 and 2018 are
presented in the table below:
Proportion of
shares
Post lock-up period Timing exercisable
From the first trading day after 12 months since the
registration of granting to the last trading day within
1st post lock-up period 24 months after the registration of granting 50%
From the first trading day after 24 months since the
registration of granting to the last trading day within
2nd post lock-up period 36 months after the registration of granting 50%
In addition to the Company’s performance, individual performance assessment, which is specified in
the Restricted Shares Incentive Plan, has also to be satisfied to unlock the restricted shares.
After it comes into the post lock-up period, the Group deals with unlocking procedures for the holders
that meet unlocking conditions as well as repurchases and cancels the restricted shares that do not
meet unlocking conditions. The repurchasing price comprises the granting price plus the interest
accruing thereon at the current deposit rate.
258
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
9 Share-based payment (Cont'd)
(2) Information on equity-settled share-based payment (Cont'd)
(a) Information on equity-settled share-based payment of the Company (Cont'd)
If the Company transfers capital reserve to paid-in capital, distributes share dividends, splits shares,
pays dividends, allocates shares or reduces shares after restricted shares are granted, the number
and the price of repurchasing restricted shares shall be adjusted in accordance with the Restricted
Shares Incentive Plan.
In 2017, the Group issued 2,556,661 ordinary A shares denominated in RMB according to the
restricted shares incentive plan for 2017, with raised funds totalling RMB 74,961,331.87. AS at 9
January 2018, the Company completed the granting and registration of the restricted shares
incentive plan for 2017.
In 2018, the Group issued 5,231,982 ordinary A shares denominated in RMB according to the
restricted shares incentive plan for 2018, with raised funds totalling RMB 127,294,205.35. As at 25
June 2018, the Company completed the granting and registration of the restricted shares incentive
plan for 2018.
As stated in Note 4(41), as at 30 June 2019, some of the Group's former incentive recipients of the
restricted shares resigned due to personal reasons, they no longer met the requirements. In addition,
according to the Group’s performance in 2018, the unlocking conditions for the second post lock-up
period for the restricted shares incentive plan for 2017 and for the first post lock-up period for the
restricted shares incentive plan for 2018 were not met. Therefore, the Company repurchased and
cancelled a total of 4,218,902 restricted shares that had been granted and had not been released for
resale.
For the current reporting period, the unlocking conditions for the first post lock-up period for the
restricted shares incentive plan for 2017 were met and 1,113,173 restricted shares were released.
As at 30 June 2019, the restricted shares that were granted to and held by incentive recipients but
not unlocked totalled 2,456,568 shares.
As at 30 June 2019, the Group made best estimation of the quantity of unlockable equity instruments
according to the latest information such as changes in the number of incentive recipients, company
performance and incentive recipients’ individual performance. The Group recognised share-based
compensation expense and capital reserve simultaneously in this period based on the fair value of
equity instruments determined by the stock price at the grant date of the equity instruments. As at 30
June 2019, the equity-settled share-based payment recognised in the capital reserve accumulated
to RMB 48,637,227.21 (31 December 2018: RMB 36,955,871.18). For the six months ended 30 June
2019, expenses recognised for equity-settled share-based payment amounted to RMB
11,681,356.03 (for the six months ended 30 June 2018: RMB 22,900,543.05).
259
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
9 Share-based payment (Cont'd)
(2) Information on equity-settled share-based payment (Cont'd)
(b) Information on equity-settled share-based payment of the Company’s subsidiaries
In 2017 and 2018, the Group granted some equities of several subsidiaries, to senior management
and other employees of the aforesaid companies respectively.
As at 30 June 2019, the equity-settled share-based payments of the above-mentioned companies
recognised by the Group accumulated to RMB 13,272,564.17 (31 December 2018: RMB
9,356,207.39), including accumulated amounts attributable to shareholders of the Company of RMB
10,909,748.03 (31 December 2018: RMB 8,009,970.98). For the six months ended 30 June 2019,
expenses recognised for equity-settled share-based payment amounted to RMB 3,916,356.78 (for
the six months ended 30 June 2018: RMB 1,029,803.03).
(3) Information on cash-settled share-based payment
(a) Information on cash-settled share-based payment of the Company
On 30 November 2017, the Company held the 4th interim shareholders’ meeting in 2017, at which
the proposal of the Incentive Plan of Share Appreciation Rights (Draft) and Summary for 2017 was
approved. Authorised by the 4th interim shareholders’ meeting in 2017, the Company held the 11th
meeting of the 4th Board of Directors on 27 December 2017, at which the Proposal of Granting Share
Appreciation Rights to Incentive Recipients was approved. The share appreciation rights were
granted on 27 December 2017. The exercise price of the share appreciation rights was RMB 29.32
per share. The incentive recipients of the plan refer to 20 key foreign talents.
On 17 May 2018, the Company held the 2nd interim shareholders’ meeting in 2018, at which the
proposal of the Incentive Plan of Share Appreciation Rights (Draft) and Summary for 2018 was
approved. Authorised by the 2nd interim shareholders’ meeting in 2018, the Company held the 15th
meeting of the 4th Board of Directors on 13 June 2018, at which the Proposal of Granting Share
Appreciation Rights to Incentive Recipients was approved. The share appreciation rights were
granted on 13 June 2018. The exercise price of the share appreciation rights was RMB 24.33 per
share. The incentive recipients of the plan refer to 29 key foreign talents.
260
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
9 Share-based payment (Cont'd)
(3) Information on cash-settled share-based payment (Cont'd)
(a) Information on cash-settled share-based payment of the Company (Cont'd)
The exercise periods and their schedules for the share appreciation rights for 2017 and 2018 are
presented in the table below:
Exercise
Exercise period Timing proportion
From the first trading day after 12 months since the
registration of granting to the last trading day within 24
1st exercise period months after the registration of granting 50%
From the first trading day after 24 months since the
registration of granting to the last trading day within 36
2nd exercise period months after the registration of granting 50%
In addition to the Company’s performance, individual performance assessment, which is specified in
the Restricted Shares Incentive Plan, has also to be satisfied for the share appreciation rights granted.
As at 30 June 2019, the accumulated liabilities arising from cash-settled share-based payment
amounted to RMB 421,146.60 (31 December 2018: RMB 223,945.97). For the six months ended 30
June 2019, expenses recognised for cash-settled share-based payment amounted to RMB
197,200.63 (for the six months ended 30 June 2018: RMB 423,976.70).
(b) Information on cash-settled share-based payment of the Company’s subsidiaries
The Group granted the senior management of subsidiaries with the stock options of the subsidiaries
with repurchase terms in 2018.
As at 30 June 2019, liabilities arising from the cash-settled share-based payment accumulated to
RMB 32,007,309.49 (31 December 2018: RMB 14,551,705.49). For the six months ended 30 June
2019, expenses recognised for cash-settled share-based payment in the current period amounted to
RMB 17,455,604.00 (for the six months ended 30 June 2018: Nil).
261
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
10 Commitments
(1) Capital commitments
Capital expenditures contracted for by the Group but are not yet necessary to be recognised in the
balance sheet at the balance sheet date are as follows:
30 June 2019 31 December 2018
Investment contracts that have been signed
but not fulfilled or not absolutely fulfilled 2,417,304,868.00 7,783,785,763.75
Buildings, machinery and equipment 1,760,366,540.17 1,838,275,575.89
Others 91,502,907.98 87,949,458.58
4,269,174,316.15 9,710,010,798.22
(2) Operating lease commitments
The future minimum lease payments due under the signed irrevocable operating leases contracts
are summarised as follows:
30 June 2019 31 December 2018
Within 1 year 4,059,476,735.47 3,452,250,034.37
1 to 2 years 2,823,099,999.00 2,265,599,687.20
2 to 3 years 1,688,882,965.50 1,364,554,994.07
Over 3 years 2,644,105,615.73 1,773,376,291.66
11,215,565,315.70 8,855,781,007.30
(3) Other commitment
(i) In December 2018, the Group issued asset-backed securities through the Special Scheme set up by
Huatai Securities (Shanghai) Asset Management Co., Ltd. by using two logistics industrial parks held
by it as underlying assets. Shanghai Fengtai Yuanxing Property Management Service Co., Ltd.
(“Fengtai Yuanxing”), a wholly-owned subsidiary of the Group, worked as the property operator of
the special scheme. In case that the actual operating income of the property assets does not reach
90% but is not lower than 80% of the objective amount, Fengtai Yuanxing was committed to
compensate the insufficient part of the target amount with Taisen Holdings providing guarantee for
the compensation obligation.
(ii) At the end of each three years, the manager of the Special Scheme accepts open-ended withdrawal
and subscription of preferred securities within the withdrawal registering period. If the preferred
securities shares that have not completed open-ended withdrawal are less than 20% of total
undistributed principal of the preferred securities, RMB 1.12 billion, at the extension operation
announcement date, Taisen Holdings will purchase it.
262
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
11 Events after the balance sheet date
As at 23 August 2019, the China Securities Regulatory Commission(“CSRC”) Issue Review
Committee approved the Company’s application for the issuance of A-share convertible corporate
bonds. The total amount for this public offering of A-share convertible corporate bonds shall not
exceed RMB 5,800 million (RMB 5,800 million inclusive). As of the reporting date, the Company
has not received the written approval document from CSRC.
12 Business combinations
See Note 5(1) and 5(2).
13 Financial instrument and risk
The Group's activities expose it to a variety of financial risks: market risk (primarily including foreign
exchange risk, interest rate risk and other price risk), credit risk and liquidity risk. The above financial
risks and the Group's risk management policies to mitigate the risks are as follows:
The Board of Directors is responsible for planning and establishing the Group's risk management
framework, formulating the Group's risk management policies and related guidelines, and
supervising the implementation of risk management measures. The Group has established risk
management policies to identify and analyse the risks faced by the Group. These risk management
policies specify the risks such as market risk, credit risk and liquidity risk management. The Group
regularly evaluates the market environment and changes in the Group's operating activities to
determine whether to update the risk management policies and systems or not. The Group's risk
management is carried out by the Risk Management Committee under policies approved by the
Board of Directors. The Risk Management Committee closely cooperates with other departments of
the Group to identify, evaluate and avoid relevant risks. The internal audit department of the Group
conducts periodical audit to the controls and procedures for risk management and reports the audit
results to the Risk Management Committee of the Group.
(1) Market risk
(a) Foreign exchange risk
The Group’s major operational activities are carried out in Mainland China and a majority of the
transactions are denominated in RMB. Some operational activities are carried out in
regions/countries including Hong Kong, America and Korea and relevant transactions are settled in
HKD, USD and KRW. Therefore, the Group is exposed to foreign exchange risk arising from the
recognised assets and liabilities, and future transactions denominated in foreign currencies. The
Group is responsible for monitoring the amount of assets and liabilities, and transactions
denominated in foreign currencies, to reduce foreign exchange risk to the greatest extent.
263
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
13 Financial instrument and risk (Cont'd)
(1) Market risk (Cont’d)
(a) Foreign exchange risk (Cont’d)
As at 30 June 2019 and 31 December 2018, the companies within the Group whose recording
currency is RMB held no significant assets or liabilities denominated in foreign currency. Those
companies operating in Hong Kong with HKD as recording currency held assets and liabilities
denominated in foreign currency (mainly USD and RMB), of which the equivalent amounts in HKD
(recording currency of companies operating in Hong Kong) and RMB (presentation currency of these
financial statements) are listed as below:
30 June 2019
RMB USD Total Total
(HKD) (HKD) (HKD) (RMB)
Financial assets
denominated in
foreign currency
Cash at bank and
on hand 106,457,060.76 80,778,642.59 187,235,703.35 164,707,436.48
Receivables 3,432,424.65 24,527,571.53 27,959,996.18 24,596,343.07
Investments in
other equity
investments - 2,121,117,464.07 2,121,117,464.07 1,865,952,581.03
Other non-current
financial
assets - 81,597,725.01 81,597,725.01 71,781,732.12
109,889,485.41 2,308,021,403.20 2,417,910,888.61 2,127,038,092.70
Financial liabilities
denominated in
foreign currency
Payables 3,578,115.54 44,431,057.12 48,009,172.66 42,233,650.18
31 December 2018
RMB USD Total Total
(HKD) (HKD) (HKD) (RMB)
Financial assets
denominated in
foreign
currency
Cash at bank
and on hand 177,569,672.57 78,828,160.48 256,397,833.05 224,654,813.91
Receivables 7,515,201.74 - 7,515,201.74 6,584,773.28
185,084,874.31 78,828,160.48 263,913,034.79 231,239,587.19
Financial liabilities
denominated in
foreign
currency
Payables 35,156.33 - 35,156.33 30,803.76
264
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
13 Financial instrument and risk (Cont'd)
(1) Market risk (Cont’d)
(a) Foreign exchange risk (Cont’d)
As HKD is pegged to USD, there is little difference arising from translating the Group’s financial
assets and financial liabilities denominated in USD to HKD and it does not have significant influence
on the Group’s net profit.
As at 30 June 2019, if the HKD strengthens/weakens by 10% against the RMB while holding all other
variables constant, the Group’s profit before tax for the year would have been approximately HKD
10,631,000.00, equivalent to RMB 9,352,000.00 (31 December 2018: approximately HKD
18,505,000.00, equivalent to RMB 16,214,000.00) lower/higher for various financial assets and
liabilities denominated in RMB.
The changes in exchange rate of other foreign currencies have no significant influence on the Group’s
operating activities.
(b) Interest rate risk
The Group's interest rate risk arises from long-term interest bearing debts including long-term bank
borrowings and debentures payable. Financial liabilities issued at floating rates expose the Group to
cash flow interest rate risk. Financial liabilities issued at fixed rates expose the Group to fair value
interest rate risk. The Group determines the relative proportions of its fixed rate and floating rate
contracts depending on the prevailing market conditions. As at 30 June 2019, the Group’s long-term
interest bearing debts were mainly related to the contracts of floating rate long-term borrowings
denominated in RMB and HKD, and fixed rate debentures payable denominated in RMB and USD.
Among them, the contract amount of floating rate long-term borrowings denominated in RMB was
RMB 2,272,400,998.14 (31 December 2018: RMB 882,550,284.58), and floating rate long-term
borrowings denominated in HKD amounted to HKD 4,202,480,783.95, equivalent to RMB
3,649,780,124.34 (31 December 2018: HKD 131,758,521.06, equivalent to RMB 115,737,550.61);
the contract amount of fixed rate debentures payable denominated in RMB was RMB
3,000,000,000.00 (31 December 2018: RMB 3,000,000,000.00), and fixed rate debentures payable
denominated in USD amounted to USD 500,000,000.00, equivalent to RMB 3,437,350,000.00 (31
December 2017: USD 500,000,000.00, equivalent to RMB 3,439,250,000.00).
The Group continuously monitors the interest rate position of the Group. Increases in interest rates
will increase the cost of new interest bearing borrowings and the interest expenses with respect to
the Group’s outstanding floating rate borrowings, and therefore could have a material adverse effect
on the Group’s financial performance. Management makes adjustments timely with reference to the
latest market conditions and may enter into interest rate swap agreements to mitigate its exposure
to interest rate risk.
As at 30 June 2019, if interest rates on borrowings rise/fall by 50 basis points while holding all other
variables constant, the Group’s profit before tax will decrease/increase by approximately RMB
29,610,000.00 (31 December 2018: RMB 4,991,000.00).
(c) Other price risk
The Group's other price risk arises mainly from movements in price of various equity and debt
instruments measured at fair value that will not be sold within 1 year.
As at 30 June 2019, if the expected price of various investments in equity instruments mentioned
above measured at fair value rises/falls by 10% while holding all other variables constant, the Group’s
net profit and other comprehensive income will be approximately RMB 40,507,000.00 (31 December
2018: Nil) and RMB 404,270,000.00 (31 December 2018: approximately RMB 325,333,000.00)
higher/lower respectively.
265
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
13 Financial instrument and risk (Cont'd)
(2) Credit risk
The Group's credit risk mainly arises from cash at bank and on hand, notes receivable, accounts
receivable, factoring receivables, loans and advances, other receivables, current portion of non-
current assets, long-term receivables, investments in debt instruments measured at fair value
through profit or loss that are not included in the assessment of impairment, etc. At the balance sheet
date, the Group's maximum exposure to credit risk represents the carrying amount of the Group's
financial assets, except that the maximum exposure to credit risk of long-term receivables represents
its undiscounted contractual cash flows.
The Group expects that there is no significant credit risk associated with cash at bank and on hand
since they are mainly deposits at state-owned banks and other medium or large size listed banks
with good reputation and a higher credit rating. The Group does not expect that there will be any
significant losses from non-performance by these counterparties.
Notes receivable, accounts receivable, other receivables, current portion of non-current assets and
long-term receivables include receivables from related parties and receivables from non-related
parties. In respect of receivables from related parties, the Group considers that they have low credit
risk; in respect of receivables from non-related parties, the Group will develop relevant policies to
control the exposure to credit risk and will focus on their credit and recovery situation on a regular
basis. In respect of customers with a poor credit history, the Group will use payment reminders, or
shorten or cancel credit periods, to ensure the overall credit risk of the Group is limited to a
controllable extent.
As at 30 June 2019 and 31 December 2018, the factoring receivables were from the Group’s
subsidiary Lefeng Factoring (Note 4(7)). Loans and advances were from S.F. Finance, an overseas
subsidiary of the Group (Note 4(8)). The Group developed credit policies and operational
implementation rules in accordance with the requirements of relevant state regulatory authorities,
and implemented standardised management over the entire process of credit granting. In addition,
the Group further improved the systems for credit risk monitoring and early warning and defective
credit extension management. The Group actively responded to the changes in the credit
environment, regularly analysed the situation and dynamic of credit risks and took risk control
measures on a forward-looking basis. The Group also established an optimisation management
mechanism for defective credit and accelerated the optimisation progress of defective credit to avoid
non-performing loans.
As at 30 June 2019, The Group had no significant collateral or other credit enhancements held as a
result of debtor’s mortgage.
266
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
13 Financial instrument and risk (Cont'd)
(3) Liquidity risk
Cash flow forecasting is performed by each subsidiary of the Group and aggregated by the Group’s
finance department in its headquarters. Cash flow forecasting is aggregated by the Group. The Group
monitors rolling forecasts of the Group's short-term and long-term liquidity requirements to ensure it
has sufficient cash and securities that are readily convertible to cash to meet operational needs,
while maintaining sufficient headroom on its undrawn committed borrowing facilities from major
financial institutions so that the Group does not breach borrowing limits or covenants on any of its
borrowing facilities to meet the short-term and long-term liquidity requirements.
The financial liabilities of the Group at the balance sheet date are analysed by their maturity date
below at their undiscounted contractual cash flows:
30 June 2019
Within 1 year 1 to 2 years 2 to 5 years Over 5 years Total
Accounts payable 8,499,813,706.49 - - - 8,499,813,706.49
Other payables 3,964,347,310.74 - - - 3,964,347,310.74
Short-term
borrowings 10,549,092,558.05 - - - 10,549,092,558.05
Other current
liabilities 1,031,833,528.22 - - - 1,031,833,528.22
Current portion of
non-current
liabilities 562,341,754.79 - - - 562,341,754.79
Long-term
borrowings 229,693,827.45 1,109,210,113.27 5,422,378,427.64 104,955,033.46 6,866,237,401.82
Debentures
payable 273,079,187.50 273,079,187.50 6,786,545,961.47 - 7,332,704,336.47
Long-term
payables - 26,389,372.14 25,921,201.55 53,690,616.35 106,001,190.04
25,110,201,873.24 1,408,678,672.91 12,234,845,590.66 158,645,649.81 38,912,371,786.62
31 December 2018
Within 1 year 1 to 2 years 2 to 5 years Over 5 years Total
Deposits from
customers 10,269,542.51 - - - 10,269,542.51
Accounts payable 7,887,342,829.83 - - - 7,887,342,829.83
Other payables 4,539,637,152.31 - - - 4,539,637,152.31
Short-term
borrowings 8,760,599,478.79 - - - 8,760,599,478.79
Other current
liabilities 1,027,375,000.00 - - - 1,027,375,000.00
Current portion of
non-current
liabilities 277,598,072.61 - - - 277,598,072.61
Long-term
borrowings 46,986,294.28 304,037,905.73 745,806,442.63 51,386,474.79 1,148,217,117.43
Debentures
payable 271,785,988.56 271,785,988.56 6,932,140,688.26 - 7,475,712,665.38
Long-term
payables - 25,647,058.05 6,075,000.00 52,710,616.37 84,432,674.42
22,821,594,358.89 601,470,952.34 7,684,022,130.89 104,097,091.16 31,211,184,533.28
267
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
14 Fair value estimates
The level in which fair value measurement is categorised is determined by the level of the fair value
hierarchy of the lowest level input that is significant to the entire fair value measurement:
Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities.
Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or
liability, either directly or indirectly.
Level 3: Unobservable inputs for the asset or liability.
(1) Financial assets and liabilities measured at fair value on a recurring basis
As at 30 June 2019, the financial assets measured at fair value on a recurring basis by the above
three levels were analysed below:
Level 1 Level 2 Level 3 Total
Financial assets held for trading-
Structural deposits - 2,509,960,802.13 - 2,509,960,802.13
Others 15,420,732.91 383,103.75 - 15,803,836.66
Other non-current financial assets
Special scheme equity-class
securities - - 138,000,000.00 138,000,000.00
Discounted stock option - - 71,781,728.81 71,781,728.81
Industry fund investments - - 195,283,651.74 195,283,651.74
Investments in other equity
instruments-
Available-for-sale equity
instruments 792,918,258.45 - 3,249,780,185.56 4,042,698,444.01
Total financial assets 808,338,991.36 2,510,343,905.88 3,654,845,566.11 6,973,528,463.35
As at 31 December 2018, the financial assets measured at fair value on a recurring basis by the
above three levels were analysed below:
Level 1 Level 2 Level 3 Total
Financial assets at fair value through
profit or loss
Investments in equity instrument
held for trading 13,715,336.78 - - 13,715,336.78
Forward interest rate swap
contracts - 726,641.31 - 726,641.31
Available-for-sale financial assets
Available-for-sale equity
instruments 794,053,309.82 - 2,276,274,386.92 3,070,327,696.74
Available-for-sale debt
instruments - - 178,403,812.08 178,403,812.08
Total financial assets 807,768,646.60 726,641.31 2,454,678,199.00 3,263,173,486.91
268
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
14 Fair value estimates (Cont’d)
(1) Financial assets and liabilities measured at fair value on a recurring basis (Cont’d)
The Group takes the date on which events causing the transfers between the levels take place as the timing specific for recognising the transfers. There is
no transfer between the levels for the current period.
The fair value of financial instruments traded in an active market is determined at the quoted market price; and the fair value of those not traded in an active
market is determined by the Group using valuation technique. The valuation models used mainly comprise discounted cash flow model and market
comparable company model. The inputs of the valuation technique mainly include risk-free interest rate, benchmark rate, exchange rate, credit spread,
liquidity premium, EBITDA multiplier, liquidity discount, etc.
The changes in Level 3 financial assets are analysed below:
Available-for-sale Available-for-sale Other non-current Other non-current Other non-current Other equity
financial assets financial assets financial assets financial assets financial assets investments
-Special scheme -SAFE and
-Available-for-sale -Available-for-sale equity-class discounted stock -Industry fund -Available-for-sale
debt instruments equity instruments securities option investments equity instruments
As at 31 December 2018 178,403,812.08 2,276,274,386.92 - - - -
Changes in accounting policies (178,403,812.08) (2,276,274,386.92) 178,403,812.08 344,685,887.97 105,000,000.00 1,997,472,148.15
As at 1 January 2019 - - 178,403,812.08 344,685,887.97 105,000,000.00 1,997,472,148.15
Increase in the current period - - - - 74,283,651.74 1,257,296,652.39
Decrease in the current period - - (40,403,812.08) (577,143,861.19) - (175,682.00)
Gains or losses recognised in profit or
loss - - - 304,239,702.03 16,000,000.00 -
Gains or losses recognised in other
comprehensive income (i) - - - - - (4,812,932.98)
As at 30 June 2019 - - 138,000,000.00 71,781,728.81 195,283,651.74 3,249,780,185.56
(i) The above is affected by changes in the fair value of the invested entities and exchange differences on translation of foreign currency financial statements.
269
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
14 Fair value estimates (Cont’d)
(1) Financial assets and liabilities measured at fair value on a recurring basis (Cont’d)
Available-for-sale Available-for-sale
financial assets financial assets
-Available-for-sale debt -Available-for-sale equity
instruments instruments
As at 1 January 2018 58,363,532.08 1,050,000,000.00
Increase in the current period 138,000,000.00 977,953,000.75
Decrease in the current period (6,477,537.61) -
Total gains or losses in the current period (11,482,182.39) 248,321,386.17
Losses recognised in profit or loss (11,482,182.39) -
Gains recognised in other comprehensive
income - 248,321,386.17
As at 31 December 2018 178,403,812.08 2,276,274,386.92
(2) Financial assets and liabilities not measured at fair value but disclosed
The Group’s financial assets and liabilities measured at amortised cost mainly include receivables,
factoring receivables, loans and advances, current portion of non-current liabilities, long-term
receivables, short-term borrowings, payables, long-term borrowings, debentures payable, current
portion of non-current liabilities, other current liabilities and long-term payables.
The carrying amount of financial assets and liabilities not measured at fair value is a reasonable
approximation of their fair value.
The fair value of debentures payable that are traded in an active market is determined at quoted
prices in the active market, categorised within Level 1 of the fair value hierarchy. The fair value of
long-term borrowings and long-term payables is the present value of the contractually determined
stream of future cash flows discounted at the rate of interest applied at that time by the market to
instruments of comparable credit status and providing substantially the same cash flows on the same
terms, and categorised within Level 3 of the fair value hierarchy.
270
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
15 Capital management
The Group’s capital management policies aim to safeguard the Group’s ability to continue as a going
concern in order to provide returns for shareholders and benefits for other stakeholders, and to
maintain an optimal capital structure to reduce the cost of capital.
In order to maintain or adjust the capital structure, the Group may adjust the amount of dividends
paid to shareholders, refund capital to shareholders, issue new shares or sell assets to reduce debts.
The Group's total capital is calculated as “Equity” as shown in the consolidated balance sheet. The
Group is not subject to external mandatory capital requirements.
As at 30 June 2019 and 31 December 2018, the Group's gearing ratio was as follows:
30 June 2019 31 December 2018
Gearing ratio 52.26% 48.45%
16 Notes to the Company’s financial statements
(1) Cash at bank and on hand
30 June 2019 31 December 2018
Cash at bank 357,848,795.35 1,136,148,582.11
Other cash balances 139,907.00 139,907.00
357,988,702.35 1,136,288,489.11
(2) Other receivables
30 June 2019 31 December 2018
Dividends receivable from Taisen Holdings 1,117,405,390.21 2,117,405,390.21
Raised funds granted to the subsidiaries - 7,421,843,560.89
Others 1,713,652.77 3,217,175.00
1,119,119,042.98 9,542,466,126.10
Less: Provision for bad debts - -
1,119,119,042.98 9,542,466,126.10
271
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
16 Notes to the Company’s financial statements (Cont’d)
(2) Other receivables (Cont’d)
The ageing of other receivables is analysed as follows:
30 June 2019 31 December 2018
Within 1 year 1,119,119,042.98 3,529,984,352.31
1 to 2 years - 6,012,481,773.79
1,119,119,042.98 9,542,466,126.10
(3) Long-term receivables
30 June 2019 31 December 2018
Raised funds granted to the subsidiaries 7,776,179,035.82 -
The above raised funds granted to the subsidiaries essentially constitutes the long-term equity
investments in the subsidiaries.
(4) Long-term equity investments
30 June 2019 31 December 2018
Subsidiaries (a) 43,348,872,192.32 43,337,179,817.15
Less: Provision for impairment of long-term
equity investments - -
43,348,872,192.32 43,337,179,817.15
There is no significant restriction on sales of the long-term equity investments held by the Company.
272
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
16 Notes to the Company’s financial statements (Cont'd)
(4) Long-term equity investments (Cont’d)
(a) Subsidiaries
Explanation of
disparity between Provision Cash
Share Voting percentages of for dividends
Accounting 31 December Increase in the holding rights shareholding and impairment declared in the
method 2018 current period 30 June 2019 (%) (%) voting rights loss current period
Cost
Taisen Holdings method 43,337,179,817.15 11,692,375.17 43,348,872,192.32 100.00% 100.00% Not applicable - -
273
S.F. HOLDING CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
16 Notes to the Company’s financial statements (Cont'd)
(5) Investment income
For the six months ended 30 June
2019 2018
Investment income from wealth management
products 2,044,740.25 45,445,973.04
Income from utilisation of raised funds by
subsidiaries - 54,419,718.73
Others (115,448.74) -
1,929,291.51 99,865,691.77
274
S.F. HOLDING CO., LTD.
SUPPLEMENTARY INFORMATION TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
1 Statement of non-recurring profit or loss
For the six months ended 30 June
2019 2018
Gains on disposal of non-current assets 315,373,555.74 83,365,835.91
Government grants recognised in profit or
loss for the current period (government
grants recognised in non-operating
income, other income and deducted
against related cost and expenses) 175,408,699.42 104,740,498.52
Gains/(losses) arising from changes in fair
value of financial assets and liabilities
held for trading and investment losses
arising from disposals of financial assets
and liabilities held for trading and
available-for-sale financial assets 347,394,450.91 (7,644,717.08)
Net loss of the subsidiaries for the period
from the beginning of the period to the
combination date arising from business
combinations involving entities under
common control - (37,645,258.17)
Net amount of other non-operating income
and expenses 10,683,463.79 (11,214,444.33)
Subtotal 848,860,169.86 131,601,914.85
Less: Income tax effect (78,025,730.22) (11,671,788.69)
Less: Total non-recurring profit or loss
attributable to minority shareholders (32,917.44) (723,413.33)
Non-recurring profit or loss attributable to
shareholders of the parent company 770,801,522.20 119,206,712.83
Including: Non-recurring profit or loss from
continuing operations 770,801,522.20 119,206,712.83
Basis for preparation of statement of non-recurring profit or loss
Pursuant to the Explanatory Announcement for Information Disclosure of Companies Offering
Securities to the Public No.1 - Non-recurring Profit or Loss (2008) issued by China Securities
Regulatory Commission, non-recurring profit or loss refers to profit or loss arising from transactions
and events those are not directly related to the company’s normal course of business, also from
transactions and events those even are related to the company’s normal course of business, but will
interfere with the right judgement of users of the financial statements on the company’s operation
performance and profitability due to their special nature and occasional occurrence.
275
S.F. HOLDING CO., LTD.
SUPPLEMENTARY INFORMATION TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
2 Return on net assets and earnings per share
Weighted average Earnings per share
return on net assets (%) Basic earnings per share Diluted earnings per share
For the six months ended 30 June For the six months ended 30 June For the six months ended 30 June
2019 2018 2019 2018 2019 2018
Net profit attributable to
ordinary
shareholders of the
Company 8.23% 6.57% 0.70 0.50 0.70 0.50
Net profit attributable to
ordinary
shareholders of the
Company after
deducting non-
recurring profit or
loss 6.19% 6.25% 0.53 0.47 0.53 0.47
Including:
- Continuing operations
Net profit attributable to
ordinary
shareholders of the
Company 8.23% 6.57% 0.70 0.50 0.70 0.50
Net profit attributable to
ordinary
shareholders of the
Company after
deducting non-
recurring profit or
loss 6.19% 6.25% 0.53 0.47 0.53 0.47
276
S.F. Holding Co., Ltd. 2019 Semi-Annual Report
Chapter 11 List of Documents Available for Inspection
(I). Financial statements with the signatures and seals of the Company principal, the principal of finances, and the
principal of the auditor;
(II). Texts of all the Company's documents ever publicly disclosed in newspapers designated by the CSRC in the
reporting period and the originals of the public announcements;
(III). Original 2019 Semi-Annual Report with the signature of the Chairman of the Board of Directors;
(IV). Place for archiving the above-mentioned documents for reference: office of the Company's Board of
Directors.
277
278
