2023 Annual Report
Stock Code: 600415 Stock short name: 小商品城
Zhejiang China Commodities City Group
Co., Ltd.
2023 Annual Report
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2023 Annual Report
Important Note
I. The Board of Directors, the supervisory committee and the directors, supervisors and
senior management of the Company hereby warrant the truthfulness, accuracy and
completeness of the contents of the Annual Report, guarantee that there are no false
representations, misleading statements or material omissions contained in this
Annual Report, and are jointly and severally responsible for the liabilities of the
Company.
II. All directors of the Company were present at the board meeting.
III. Ernst & Young Hua Ming Certified Public Accountants (special general partnership)
has issued a standard unqualified audit opinion for the Company.
IV. ZHAO Wenge, Head of the Company, WANG Dong, Head in charge of accounting, and
ZHAO Difang, Head of the accounting department (Accounting Supervisor), declare
that they warrant the truthfulness, accuracy and completeness of the financial report
in the annual report.
V. The profit distribution plan for the reporting period or the plan for public reserve funds
into share capital that was approved by the board of directors
Based on the total share capital on the equity registration date for the 2023 profit distribution,
a cash dividend of RMB 2.00 (including tax) will be distributed for every 10 shares. Based on the
total share capital of the Company at the end of 2023, a total of RMB 1,096,866,835.20 (including
tax) in cash dividends will be distributed. If there is a change in the total share capital of the
Company before the equity registration date for equity distribution, it is proposed to maintain the
per share distribution plan unchanged and adjust the total distribution amount accordingly.
VI. Risk statement with forward-looking representations
√Applicable □Not applicable
The forward-looking representations involved in this Report such as future plans and
development strategies do not constitute the Company’s substantial commitments to investors.
Investors shall watch out for the investment risks.
VII. Is the Company’s cash occupied by its controlling shareholder or any of other
affiliates for non-operational purposes?
No
VIII. Has the Company provided external guarantee in violation of the prescribed
decision-making procedures?
No
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IX. Whether more than half of the directors can not warrant the truthfulness, accuracy
and completeness of the annual report disclosed by the Company
No
X. Reminder of major risks
The Company has described the risks that may exist in this Report in details. Please refer
to “Potential Risks” in “Section III Discussion and Analysis of Managers” of this Report..
XI. Others
□Applicable √Not applicable
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2023 Annual Report
Table of Contents
Section I. Definitions ............................................................................................................... 5
Section II. Company Profile and Financial Highlights .............................................................. 6
Section III. Discussion and Analysis of Managers .................................................................. 13
Section IV. Corporate Governance ......................................................................................... 59
Section V. Environmental and Social Responsibilities ........................................................... 82
Section VI. Significant Matters ................................................................................................ 84
Section VII. Changes in Shares and Shareholders ................................................................ 103
Section VIII. Bonds .................................................................................................................. 112
Section IX. Financial Report .................................................................................................. 121
Accounting statements with the signatures and stamps of the person
incharge of the Company, person in charge of accounting and person
in charge of the accounting body.
Documents for
The original audit report with the seal of the accounting firm and the
Inspection
signature and seal of the certified public accountant
The originals of all company documents and announcements publicly
disclosed during the reporting period
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Section I. Definitions
I. Definitions
For the purpose of this Report, unless otherwise stated in the context, the following terms shall
have the following meanings:
Definitions
SCO means Yiwu State-owned Capital Operation Co., Ltd.
MDG means Yiwu Market Development Group Co., Ltd.
CCCH means Yiwu China Commodities City Holdings Limited
Zhijie Yuangang means Zhejiang Zhijie Yuangang International Supply
Chain Technology Co., Ltd.
CCCP means Yiwu China Commodities City Property
Development Co., Ltd.
CCCF means Yiwu China Commodities City Financial Holdings
Co., Ltd.
Huishang Micro-finance means Yiwu Huishang Micro-finance Co., Ltd.
Haicheng Company means Haicheng Yiwu China Commodities City
Investment Development Co., Ltd.
Yiwu Shanglv means Yiwu Shanglv Investment Development Co., Ltd.
Chouzhou Financial means Zhejiang Chouzhou Financial Lease Co., Ltd.
Lease
Yiwu Shangbo means Yiwu Shangbo Yuncang Enterprise Management
Co., Ltd.
Handing Shangbo means Yiwu Handing Shangbo Real Estate Co., Ltd.
Kuaijietong means Kuaijietong Payment Service Co., Ltd.
Yiwu Pay means Kuaijietong Payment Company's payment brand
The Company, the Listed
Company, the Group, the means Zhejiang China Commodities City Group Co., Ltd.
Group Company
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Section II. Company Profile and Financial Highlights
I. Company profile
Chinese name 浙江中国小商品城集团股份有限公司
Chinese short name 小商品城
English name Zhejiang China Commodities City Group Co.,Ltd
English short name YIWU CCC
Legal representative ZHAO Wenge
II. Contact information
Board Secretary Securities Affairs Representative
Name XU Hang RAO Yangjin
Address YIWU CCC Group Building, No. YIWU CCC Group Building, No. 567
567 Yinhai Road, Yiwu City Yinhai Road, Yiwu City
Telephone 0579-85182812 0579-85182812
Fax 0579-85197755 0579-85197755
Email Hxu@cccgroup.com.cn Hxu@cccgroup.com.cn
III. Basic Information
Registered address 567 Yinhai Road, Futian Sub-district, Yiwu City, Jinhua City,
Zhejiang Province
When the Company was established, its registered address
Historical changes in the was Haiyang Business Building, No. 105 Futian Road, Yiwu
registered address of the City; In January 2024, the registered address of the
Company Company was changed to No. 567 Yinhai Road, Futian Sub-
district, Yiwu City, Jinhua City, Zhejiang Province.
Office address YIWU CCC Group Building, No. 567 Yinhai Road, Yiwu City
Postal code at the office address 322000
Corporate website www.cccgroup.com.cn
Email 600415@cccgroup.com.cn
IV. Places for information disclosure and access to the annual report
Media's names and websites selected by China Securities Journal, Shanghai Securities
the Company for annual report disclosure News and Securities Times
Stock exchange website selected by the www.sse.com.cn
Company for annual report disclosure
Place for access to the Company’s annual Securities Department of the Company
report
V. Stock profile
Stock profile
Type of stock Exchange Stock short name Stock code Stock short name
before change
A share Shanghai Stock 小商品城 600415 No
Exchange
VI. Other relevant information
Name Ernst & Young Hua Ming Certified Public Accountants
CPAs engaged by
(special general partnership)
the Company
Office address 16th Floor, Ernst & Young Building, Oriental Plaza, 1
(domestic)
Chang'an Street, Dongcheng District, Beijing, China
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Name of the TAN Chaohui and LING Yuehan
Signing
Certified Public
Accountants
VII. Major accounting data and financial indicators in the past three years
(i) Major accounting data
Unit: RMB
Major accounting data 2023 2022 YoY change (%) 2021
Operating revenue 11,299,686,665.89 7,619,693,742.60 48.30 6,033,842,972.95
Net profits attributable to
shareholders of the 2,676,182,133.26 1,104,719,091.71 142.25 1,334,095,906.95
Listed Company
Net profits attributable to
shareholders of the
Listed Company with 2,468,685,982.43 1,765,087,553.23 39.86 1,221,808,001.15
non-recurring items
excluded
Net cash flow from
1,845,059,849.92 1,400,090,713.77 31.78 2,033,082,507.76
operating activities
At the end of 2023 At the end of 2022 YoY change (%) At the end of 2021
Net assets attributable to
shareholders of the 17,688,393,818.20 15,262,290,780.57 15.90 14,610,845,868.33
Listed Company
Total assets 36,218,947,223.63 32,111,004,317.38 12.79 31,014,635,513.35
(ii) Major financial indicators
Major financial indicators 2023 2022 YoY change (%) 2021
Basic EPS (RMB) 0.49 0.20 145.00 0.25
Diluted EPS (RMB) 0.49 0.20 145.00 0.25
Basic EPS after deducting non-recurring gains
0.45 0.32 40.63 0.22
and losses (RMB/share)
Weighted average ROE (%) 16.06 7.30 Up 8.76 ppt 9.38
Weighted average ROE after deducting non-
14.82 11.67 Up 3.15 ppt 8.59
recurring gains and losses (%)
Explanation of main accounting data and financial indicators of the Company in the previous
three years at the end of the report period
√Applicable □Not applicable
1. The operating revenue increased by RMB 3.68 billion YoY, mainly due to the opening
of the Second District East New Energy Product Market, the rent reduction in the
previous year, and the YoY expansion of product sales scale.
2. The net profit attributable to shareholders of the Listed Company increased by RMB
1.571 billion YoY, mainly due to the YoY increase in market operating profit, trade
performance service business profit, and investment income.
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3. The net profit attributable to shareholders of the Listed Company after deduction of
non-recurring gains and losses increased by RMB 704 million YoY, mainly due to the
increase of RMB 1.571 billion in net profits attributable to shareholders of the Listed
Company and the increase of RMB 868 million in non-recurring gains and losses YoY.
4. The net flow generated by operating activities increased by RMB 445 million YoY,
mainly due to the increase of RMB 665 million YoY in the net cash received after
deduction of payment for sales of goods and provision of service and the decrease
of RMB 278 million YoY in the tax refund received.
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VIII. Differences in accounting data between foreign and Chinese accounting standards
(i) Differences between the net profit and net assets attributable to shareholders of the
Company disclosed in accordance with international accounting standards and
China accounting standards in the financial report
□Applicable √Not applicable
(ii) Differences between the net profit and net assets attributable to shareholders of the
Company disclosed in accordance with overseas accounting standards and China
accounting standards in the financial report
□Applicable √Not applicable
(iii) Explanation of differences between domestic and overseas accounting standards
□Applicable √Not applicable
IX. Key financial indicators by quarter in 2023
Unit: RMB
1st Quarter 2nd Quarter 3rd Quarter 4th Quarter
(Jan- Mar) (Apr-Jun) (Jul-Sep) (Oct-Dec)
Operating revenue 2,120,334,936.46 3,040,656,106.79 2,744,623,047.19 3,394,072,575.45
Net profits
attributable to
1,222,157,366.22 776,176,280.52 318,326,143.58 359,522,342.94
shareholders of the
Listed Company
Net profit
attributable to
shareholders of the
Listed Company 1,079,552,858.79 759,812,965.88 311,561,626.90 317,758,530.86
after deducting
non-recurring
gains and losses
Net cash flow from
-310,531,782.92 453,778,978.70 229,217,122.95 1,472,595,531.19
operating activities
Explanation of difference between quarterly data and disclosed data in regular reports
□Applicable √Not applicable
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X. Non-recurring items and amounts thereof
√Applicable □Not applicable
Unit: RMB
Non-recurring items Amount for 2023 Remark (if applicable) Amount for 2022 Amount for 2021
Non-current asset disposal gains and losses, including
the offsetting portion of the provision for impairment of 139,113,943.98 -1,130,587.34 -561,416.89
assets
Government grants that are recognized in the current
profit or loss, excluding the government grants that are
closely related to the normal operation of the Company
32,404,875.29 38,802,436.81 23,559,898.01
and provided in a fixed amount or quantity and that have
a continuous impact on the Company's gains and losses
according to the national polices and certain standards
Except for effective hedging business related to the
normal operation of the Company, the fair value gains Mainly due to gains or
and losses arising from the holding of financial assets losses arising from
-51,087,595.90 166,489.60 7,298,587.58
and financial liabilities by non-financial enterprises, as the change in fair
well as the gains and losses arising from the disposal of value
financial assets and financial liabilities
Cash occupation fees charged from non-financial Cash occupation fee
enterprises that are recognized in the current profit or 18,907,795.24 for receiving financial 52,315,023.80 107,299,598.45
loss aid
Profits and losses arising from external entrusted loans 2,525,847.12 79,561.64 -
Net income from other non-operating activities 6,365,155.41 3,244,125.63 3,504,923.76
Mainly due to the
Other profit and loss items that meet the definition of reversal of expected
121,465,746.29 -975,086,670.50 1,604,200.49
non-recurring profit and loss liabilities for letter of
credit litigation
Less: effect of income tax 60,306,979.87 -223,084,975.36 28,698,936.71
Effect of minority interest (after-tax) 1,892,636.73 1,843,816.52 1,718,948.89
Total 207,496,150.83 -660,368,461.52 112,287,905.80
Explanations shall be made for the non-recurring items identified by the Company according to the Explanatory Announcement No. 1 on Information
Disclosure by Companies Publicly Offering Securities – Non-recurring Items, and for the Company identifying the non-recurring items enumerated in
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the Explanatory Announcement No. 1 on Information Disclosure by Companies Publicly Offering Securities – Non-recurring Items as recurring items.
□Applicable √Not applicable
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XI. Items measured at fair value
√Applicable □Not applicable
Unit: RMB 10,000
Changes for Amount of
Opening Closing
Item the current impact on
balance balance
period current profits
Held-for-trading financial
6,233.10 1,513.09 -4,720.01 404.25
assets
Other equity instruments
49,920.08 55,689.74 5,769.66 376.28
investment
Other non-current
150,030.76 142,156.99 -7,873.77 -3,983.94
financial assets
Total 206,183.94 199,359.82 -6,824.12 -3,203.41
XII. Other
□Applicable √Not applicable
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Section III. Discussion and analysis of managers
I. Discussion and analysis of operation
2023 marked the 30th anniversary of the Company's establishment. All cadres and
employees have united and worked hard to advance various tasks to a new level. The
Company's revenue and profits reached historic highs, and its market operation steadily
improved. Its core competitiveness has been continuously enhanced, and new businesses have
rapidly emerged. The Company has entered a new stage of development.
(i) Market operation
1. Dynamic adjustment of rent
In the current economic environment, the rationality of the rental price system is crucial for
the healthy development of the market. In order to better adapt to market changes and promote
balanced development of various industries, the Company has established an industry
evaluation system based on the Yiwu Index. This system constructs a differentiated pricing
model for shop rental prices by introducing indicators such as China's GDP growth rate,
fluctuations in market-oriented rental prices, market prosperity index, market commodity price
index, industry prosperity index, and block prosperity index.
According to the pricing model mentioned above, the Company adjusted the rent of the
market's due shops at the end of the reporting period, with an average rent increase of 5.5%. It
is expected that the growth rate will not be less than 5% in the next three years.
The implementation of the rent differentiated pricing model will help balance the competitive
environment within the market and provide merchants with a more fair and transparent business
environment. This not only helps to enhance the overall competitiveness of the market, but also
promotes the effective allocation of resources and the sustainable development of the industry,
laying a solid foundation for the long-term prosperity and stability of the Yiwu market.
2. Construction of digital market
During the reporting period, the Second District East New Energy Market opened with an
additional construction area of 131,000 square meters, and more than 650 new shops were
added on the first to third floors. The investment positioning for the third floor was completed in
December. Therefore, the offline market further expanded. The construction of the digital market
model in the Second District East of the International Trade City was accelerating, and a new
market trade scenario with online and on-site integration and cloud-network linkage was
preliminarily taking shape. As of the end of December, digital tools such as business advisors,
electronic business cards, and event calendars were launched; iterative optimization of digital
software and hardware service functions such as AI interactive screens, digital market mini
programs, and passenger flow analysis systems were completed. The construction of the Global
Digital Trade Center, a landmark project in the sixth-generation market, was accelerating with
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increased efficiency, exploring the construction of an innovative ecosystem for digital trade, and
creating a new model for the future digital commodity market.
(Figure 1. Aerial View of Second District East New Energy Product Market)
(ii) Online platform
Since its launch in October 2020, the Chinagoods platform has had over 10 million products
uploaded and over 4.09 million buyers registered. It has also launched and operated six national
websites, including Spain, Dubai, and Colombia. In 2023, the online trade volume of services
exceeded RMB 65 billion, and a comprehensive international trade service system of
"digitalization of traditional markets+ digitalization of trade performance" has been preliminarily
formed.
1. Launched the homepage and service section of the fourth party service platform, with a
total of 169 third-party service products launched; At the same time, relying on digital technology
and platform channels, we assisted merchants in precise positioning, customer flow attraction,
and operation, and worked together with top platforms such as 1688.com, Baidu, and JD.com to
build a fourth party service platform.
2. The AI project has launched Xiaoshang AI, digital human, AI intelligent product release,
intelligent image matting, and has received widespread praise from market merchants. As of the
end of December, the multilingual digital Lady Boss function covered over 3300 merchants, and
has been recorded and reported by more than 20 official media outlets, including CCTV, Global
Times, People's Daily, Xuexi Qiangguo, Zhejiang TV, Jinhua Daily, and Yiwu Publishing.
(iii) Exhibition
The Company focused on the dual empowerment of the market and exhibitions, integrating
domestic and overseas, online and on-site exhibitions, and achieved significant results in
exhibition venue linkage. As of the end of December, 52 domestic exhibitions such as the China
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Yiwu International Commodities Fair, China Yiwu Cultural and Tourism Products Trade Fair, and
Gift Exhibition were held, attracting over 1.74 million buyers; the Company organized enterprises
to go abroad to Thailand, Indonesia, Japan, Russia, Spain, Germany and other countries to
expand their markets, participating in 18 overseas exhibitions and economic and trade activities,
with over 100 enterprise participants; 44 events were held, including Market Trips, industry
vertical exhibitions, procurement fairs, and new product launches, attracting over 1.7 million
buyers in total. The 29th China Yiwu International Commodities Fair had 2400 participating
companies, 3,800 international standard booths, and an exhibition area of 100,000 square
meters. A total of 160,600 professional buyers attended the exhibition, including 16,500
overseas buyers, with a record high attendance.
(Figure 2. Opening Ceremony of the 29th China Yiwu International Commodities
Fair)
(iv) Hotels
In 2023, the hotel business line (including entrusted hotels) achieved a revenue of over RMB
400 million, reaching a historic high. The Company also achieved interoperability between the
Chinagooods platform and the hotel membership system, and collaborated with the Big Data
Company and Yiwu Pay to carry out digital marketing activities; The New Yandoo Circle Member
Platform optimized functions such as point management, self selection of benefits, and
personalized customization, with 15,000 new members in this year; The Company upgraded the
unified procurement platform and promoted the sharing and integration of centralized
procurement information. The Company's hotels have successfully completed important
reception tasks such as the Hangzhou Asian Games and the World Urban and Rural
Organization Conference, fully showcasing the image of the Yiwu hotel industry and building a
reputation for the Yandoo Hotel Management brand; Starting from scratch and continuously
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breaking through, "Fingertip Canteen" has achieved full coverage of Districts 1-5 of the
International Trade City and the new headquarters building of the Group. The self-created coffee
brand Yandoo was gradually gaining popularity.
(Figure 3. A corner of Fingertip Canteen)
(v) Trade performance
Zhijie Yuangang strengthened its business operations, connects domestic export
consolidation, multimodal transportation, overseas warehouses and other businesses, and has
initially built a digital cross-border logistics third-party delivery platform to provide "end-to-end"
full chain digital supply chain solutions for trading entities. As of the end of December, digital
logistics service products such as "Jihepai" and "Xiaokepai" were launched, with a total shipment
volume of over 45,000 TEUs. The first "Yiwu China Commodities City - RCEP Silk Road
Express" route has been launched and put into operation.
(vi) Digital payment (Yiwu Pay)
During the reporting period, the Payment Company mainly carried out the following
businesses:
(1) Application for qualification license
Kuaijietong obtained the public announcement of the renewal of the Payment Business
License from the People's Bank of China on July 5, 2023, and completed the license renewal
work on time, with a validity period of 5 years; On November 1st, it officially obtained the approval
of the State Administration of Foreign Exchange for the foreign exchange business qualification
license of payment institutions.
(2) Domestic payment business
The Payment Company further integrated into the Group's business scenarios and provided
personalized payment and settlement services for the Chinagoods platform, market, supply
chain, factoring, warehousing, logistics, hotels, Fingertip Canteen, and other Yiwu CCC
ecosystems.
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(3) E-CNY business
Relying on the Group’s ecosystem, it carried out a special digital currency activity and
launched an innovative model of e-CNY one-currency settlement, completing the docking with
Bank of China's e-CNY umbrella account system. In November, the Payment Company officially
signed "E-CNY Cross-border Business Strategic Cooperation Agreement" with Bank of China,
which provides comprehensive services such as B2B e-CNY cross-border fund circulation. It is
the earliest cross-border application of e-CNY in the B2B field in China.
(4) Cross-border RMB business
As of December 31, a total of over 20,000 cross-border RMB accounts were opened, with
a new transaction volume of over RMB 8.5 billion for cross-border RMB payment services. The
Company cooperated with hundreds of major banks worldwide, covering more than 150
countries and regions across five continents, and can support over 25 currencies, with 16
currencies received. All transactions have not involved any risk dispute funds, and there have
been no frozen card incidents, providing a solid financial infrastructure guarantee for business
owners to smoothly go overseas.
Yiwu Pay has become a major force in global payment service
Unit: USD 100 million
Monthly cross-border collection trend
(Figure 4. Partial operating data of Yiwu Pay)
(vii) Yiwu Market Project
During the reporting period, the Yiwu China Commodities City’s “Yiwu Market Project”
strategy was released, and a combination of "overseas sub-markets, overseas warehouses,
overseas websites, Yiwu Selection overseas exhibition halls, and overseas exhibitions" was
established to promote small commodities to reach big markets.
1. Yiwu Market's overseas sub-market extension layout: sorting out the standard models for
franchise export in overseas sub-markets, focusing on research and planning to establish
overseas new small commodities trade centers in cities such as Jakarta in Indonesia, Cairo in
Egypt, and Jeddah in Saudi Arabia.
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2. The Company steadily promoted FBC overseas warehouses of China Commodities City:
Completed 5 FBC warehouses in Czech Republic, Malaysia, Mexico, etc., with a storage area
of over 100,000 square meters and serving over 500 enterprises; Introduced trade factoring
business in FBC warehouse in Malaysia.
3. The Company accelerated implementation of Yiwu Selection overseas exhibition halls:
Completed optimization and addition of 5 Yiwu Selection overseas exhibition halls, including
Tokyo, Japan, Dubai, UAE, and S o Paulo, Brazil. Currently, there are a total of 12 Yiwu
Selection overseas exhibition halls, with more than 500 merchants organized to participate in
overseas trade fairs, and over 10,000 SKUs of Yiwu small commodities entering Yiwu Selection
overseas exhibition halls.
4. The momentum of Yiwu Fair overseas exhibitions was gradually rising: 6 Yiwu Fair
overseas exhibitions have been held in Russia, Indonesia, South Korea, and other countries,
attracting more than 200 companies to participate, with a total exhibition area of over 10,000
square meters.
5. Chinagoods Overseas Websites – Going Overseas Digitally: It completed the launch of
six national websites of Spain, Saudi Arabia, and Colombia among others, and achieved the
display and release of 700,000 products from 32,000 merchants to overseas buyers.
During the reporting period, the Company cooperated with three well-known local e-
commerce platforms, Egatee in Africa, Aucfan in Japan, and G&G Commerce in South Korea,
as well as the Cairo Aviation City Special Economic Zone in Egypt, and signed strategic
cooperation agreements with them, gradually implementing Yiwu Market Project.
(Figure 5. Cases of Yiwu Market Project)
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II. Description of the industry of the Company during the reporting period
According to the definitions in the Guidelines for Industry Classification of Listed Companies
(revised in 2012) released by the CSRC, the Company is engaged in “Business Service” (L72)
in “Lease and Business Service” (L).
(i) Situation of Yiwu market
As a globally renowned small commodity trading center, Yiwu International Trade City has
maintained a leading position in the comprehensive market in China for many years due to its
huge market transaction volume and wide variety of goods. The Yiwu market has not only formed
a strong industrial cluster support in the field of small commodity circulation, but also driven the
development of 2.1 million small and medium-sized enterprises and employment of 32 million
industrial workers through its influence in 233 countries and regions worldwide.
The significant characteristics of the Yiwu market can be summarized from the following
aspects:
1. Active market entities: The Yiwu market is an important practical platform for the concept
of "mass entrepreneurship and innovation". It not only drives the development of more than 20
industrial clusters and 2.1 million small and medium-sized enterprises across China, but also
attracts over 15,000 resident foreign merchants and nearly 9,000 foreign-owned entities. These
numbers make Yiwu an important gathering place for global merchants, known as the "World
Supermarket". There are over 200,000 market practitioners, 75,000 operating shops, and a total
of over 1 million market entities.
2. Wide range of goods: As the world's largest small commodity distribution center, Yiwu
market gathers 26 major categories and 2.1 million types of products, forming an "ocean of small
commodities and paradise for shoppers ". More than ten thousand new products are launched
every day, and the quality, brand and standard of small commodities are exported to the world,
becoming the representative of "China-chic trend" and "supply place for bestselling goods".
3. Innovative business scenarios: The Yiwu market is an important birthplace of innovation
in trade business scenarios. The pioneering market procurement trade method (with a customs
supervision method code of "1039") has driven a 6.6-fold growth in Yiwu's foreign trade exports
in the past decade and has been promoted to 39 pilot units in China. New business forms such
as import transshipment, internet celebrity live streaming, and cross-border e-commerce are
constantly emerging, forming an e-commerce ecosystem for the full industry chain. The
integration and development of the real economy and digital economy have enabled Yiwu to
continue to lead the new trend of global trade.
4. High-quality trade ecology: Yiwu market is the preferred place for merchants and
enterprises to trade small commodities. Since the pilot of the comprehensive reform of
international trade, Yiwu has formed multiple national level open platforms, including the Free
Trade Zone, Comprehensive Bonded Zone, Cross-border E-commerce Comprehensive Pilot
Zone, and Import Trade Promotion Innovation Demonstration Zone. The logistics network has
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covered over 1,500 counties and cities across China and over 700 hub cities worldwide.
Government, business, and life services are in line with international standards, providing
comprehensive "customs, taxation, currency exchange, transportation, warehousing and
financing" services, with continuously optimized the business environment.
The Yiwu market, as a key platform connecting domestic and international trade supply
chains, occupies a core position in the global small commodity supply chain and plays a crucial
role in promoting internal circulation, enhancing external circulation, and serving the new
development pattern of "dual circulation". As a leader and demonstration site of national market
procurement trade method, Yiwu has maintained high-speed growth for 8 consecutive years,
effectively stimulating the vitality of market entities and further improving the level of trade
facilitation.
In 2023, the total import and export value of Yiwu City reached RMB 566.05 billion, up 18.2%
YoY. Among them, exports exceeded the RMB 500 billion mark for the first time, reaching RMB
500.57 billion, a YoY increase of 16.0%, setting a record high; the import value was RMB 65.48
billion, a YoY increase of 38.8%. Yiwu continuously gathers new momentum in foreign trade by
exploring emerging markets, building high-level open platforms, and cultivating and
strengthening advantageous industries. In terms of trade regions, in 2023, the combined import
and export values of Yiwu with Africa and Latin America was RMB 104.90 billion and RMB 89.76
billion, respectively, with YoY increases of 24.9% and 25.4%, respectively. The import and export
values of Yiwu with India and Saudi Arabia were RMB 30.42 billion and RMB 14.13 billion,
respectively, with YoY increases of 24.7% and 38.4%, respectively. In the same period, the total
import and export value of Yiwu with the countries under the "Belt and Road" initiative reached
RMB 349.71 billion, up 19.5% YoY, accounting for 61.8% of the total import and export value of
Yiwu City in the same period, and the contribution rate to the import and export growth of Yiwu
City reached 11.9 percentage points.
In 2023, Yiwu City achieved an export value of RMB 388.37 billion through market
procurement trade, a YoY increase of 19.0%, accounting for 77.6% of Yiwu City's total export
value. The Company integrates market resources through digital means, connects various links
in the supply chain, improves the efficiency of commodity circulation, and promotes the iterative
upgrade of market procurement trade method to Version 2.0. of market procurement trade
method has become the main force driving the growth of Yiwu's exports. In terms of regional
trade, Southeast Asia, the Middle East and Latin America continue to occupy a high market
share in the trade with Yiwu. Countries in the "Belt and Road" initiative and the RCEP region
continue to bring new opportunities to the Yiwu market. “AI Going Overseas” and “RMB Going
Overseas” have become new highlights of the Yiwu market.
During the reporting period, the Yiwu market showed strong vitality. The total number of
market operating entities reached 1.0546 million, an increase of 17.4%, with a new
establishment of 258,000 entities, accounting for one seventh of that of Zhejiang Province. The
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total number of E-commerce entities exceeded 600,000, accounting for one-third of that of
Zhejiang Province. The daily average customer flow of the International Trade City exceeded
200,000, and the number of foreign resident merchants in Yiwu increased to 21,000. More than
400,000 people came to Yiwu for the first time, and the number of college students who came
to Yiwu for the first time reached 46,500, both reaching record highs.
In addition, the "direct loading upon arrival" mode launched by Yiwu-Ningbo-Zhoushan Sea-
railway Combined Transportation allows enterprises to flexibly arrange the loading and delivery
of goods from the warehouse area based on their own production plans and dock appointments,
following the process of "early declaration, release upon arrival, and direct loading upon arrival,"
greatly improving the clearance efficiency. The express delivery business volume reached 10.58
billion pieces, a YoY increase of 13.8%, accounting for one twelfth of the total in China.
III. Description of the business of the Company during the reporting period
(i) Main business of the Company
The Company is committed to building a shared trade service platform for small and
medium-sized enterprises in China, with a strategic positioning of a "world-class international
trade comprehensive service provider", continuously enriching and improving the three major
ecosystems: commodity display and trading ecosystem, supporting services ecosystem, and
trade services ecosystem, in order to reduce trade costs, shorten trade chains, improve trade
efficiency, continuously create value for the circulation of small commodities, strengthen and
consolidate the advantageous position of China's daily consumer goods supply chain in global
trade, and serve the new development pattern of domestic-international dual circulation.
The commodity display and trading ecosystem includes on-site market operation and self-
operated trade product sales, supporting service ecosystem includes exhibition and hotel sectors,
and trade service ecosystem includes Chinagoods online service platform, warehousing logistics
and payment, credit reporting, factoring and other businesses.
(ii) The main business model of the Company
1. Commodity display and trading ecosystem
(1) Market operation
The market operation business is mainly operated and managed by the subordinate market
operation companies of the Company. The main business revenue of the market operation
sector is mainly the revenue from shop usage fees, which refer to the fees charged by the
Company for providing shop leasing and operation services to merchants.
The Company adopts a shop rental model, where the ownership of the shop belongs to the
Company, and merchants only have the right to use the shop during the contract period, while
enjoying the market operation services provided by the Company. The Company signs a contract
with the merchant to clearly specify the usage period, usage fee, and business purpose of the
shop. The merchant shall not change the agreed business purpose, and shall not sublet or
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transfer without the consent of the Company. Generally, the payment methods of usage fee are
one-time payment or installment payment according to the contract terms.
In 2023, the Company restructured the rental price system for shops, implement
differentiated pricing based on industry prosperity and other indicators, and guide the healthy
development of the industry. At present, the markets operated by the Company include the first
to fifth district markets, the import market, the first district eastern expansion and second district
east market, the Huangyuan market, and the international production materials market of the
International Trade City.
(2) Self-operated trade
ICMALL is the initials of International Commodity Mall, which is a subsidiary of the well-
known Chinese trademark "Yiwu China Small Commodities City". "爱喜猫" is the Chinese
transliteration of ICMALL. With the brand vision of "discovering the best products in the world",
ICMALL combines over 20,000 high-quality products from imported goods and trendy domestic
products, covering six categories: home life, beauty and skincare, mother and baby products,
snacks and beverages, entertainment and cultural creativity, and toy digital. ICMALL strives to
create a super supply chain channel brand in new fashion, new consumption, and new
experience application scenarios.
As a self-owned brand that focuses on the creative development of trendy domestic
products, "Yiwu Good Products and Good Brands" provides empowering services for the
improvement and upgrading of small commodities in Yiwu and even across China through the
entire chain of product development and design, production and manufacturing, quality and price,
marketing planning, after-sales service, and other aspects. In the future, the brand will strive to
create a good products brand standardized output system with good prices, quality, and service.
The Company enters the upstream and downstream of market trade through self-operated
trade, fully leveraging its platform and brand advantages, linking trade with the market and
nurturing the market, and forming a virtuous and orderly cycle.
2. Supporting services ecosystem
(1) Exhibition
The Company's exhibition sector has developed into a professional exhibition enterprise
with one-stop service that integrates domestic exhibition organization, overseas exhibition,
exhibition hall management, and exhibition supporting services. The exhibition section mainly
undertakes exhibition projects such as the China Yiwu International Commodities (Standards)
Fair (UFI), China Yiwu Imported Commodities Fair (UFI), China Yiwu International Forest
Products Fair (UFI), and self-operated projects such as overseas exhibitions (Korean Import
Goods Exhibition, China Consumer Goods (Russia) Brand Exhibition, Benin (West Africa) China
Commodity Exhibition, etc.), And engaged in exhibition hall operation, development, leasing and
other exhibition industry chain services. The Company also undertakes the operation and
management of Yiwu International Expo Center venues.
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(2) Hotels
The hotel service business is mainly operated and managed by the Company's subsidiary
Zhejiang Yandoo Hotel Management Company. There are currently 7 star-rated hotels, 1 high-
end homestay, and two catering brands, Fingertip Canteen and Yandoo Cafe. The Company's
hotels mainly provide comprehensive services such as accommodation, catering, leisure and
entertainment, and conferences. The hotel's main revenue includes room sales, catering sales,
commodity sales, and venue leasing. Sales of guest rooms and catering mainly rely on channels
such as contractual clients, conferences, wedding banquets and recommendation by operators
of online booking platforms.
3. Trade services ecosystem
(1) Online service platform
The Yiwu China Commodities City platform (referred to as the "Chinagoods platform") is a
B2B digital trade comprehensive service platform that relies on the Company's 75,000 physical
shop resources in the market, serving 2.1 million small and medium-sized enterprises in the
upstream and downstream of the industrial chain. It is driven by trade data integration and
connects with the needs of both supply and demand sides. The current revenue model of the
platform is to collect service fees by providing basic services and value-added services for
members, digital advertising business services, digital services for financial institutions, and
fourth-party services.
(2) Warehousing and logistics
The Company's warehousing sector is led by warehousing, strengthening the service
capacity of Yiwu freight warehouses, regional warehouses, and overseas warehouses, and
deeply entering various links of the trade chain. At present, there are three parks: Chinagoods
Shared Cloud Warehouse, Houzhai Warehouse Park, and Huanqiu Yida Supply Chain Industrial
Park. Chinagoods Shared Cloud Warehouse is market-oriented and uses digital means to form
a fully visible warehouse system. It combines public warehouses, express package distribution,
and international consolidation to provide convenient warehousing services for market operators,
domestic and foreign buyers, logistics and express delivery companies, as well as freight
forwarders and foreign trade companies. Houzhai Warehouse Park and Huanqiu Yida Supply
Chain Industrial Park are based on warehousing systems, providing efficient, convenient, and
three-dimensional warehousing service systems for market operators.
(3) Payment, credit reporting, factoring and other businesses
The Company's "Yiwu Pay" is a licensed third-party payment institution supervised by the
People's Bank of China, providing convenient and secure electronic payment solutions for
merchants through internet payment technology. Yiwu Pay was established in 2012. With its
professional global payment service capabilities, financial compliance capabilities, and security
risk control capabilities, Yiwu Pay provides one-stop cross-border payment solutions for
domestic and foreign customers, enabling them to receive payments in compliance, settle
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foreign exchange easily, improve fund utilization efficiency, and ensure safe receipt of funds.
The Company’s business covers various scenarios such as online and on-site B2B payments,
cross-border payments, etc. Domestic payment business: As a licensed payment institution,
"Yiwu Pay" links major domestic banking institutions through clearing organizations such as
UnionPay and NetsUnion Clearing Corporation, providing merchants with collection services
such as bank card fast payment, QR code scanning payment, wallet payment, and e-CNY
payment, and obtains payment fee. Cross-border payment business: "Yiwu Pay" provides one-
stop cross-border fund services such as global collection and payment, foreign exchange
management, etc. for import and export enterprises, and obtains cross-border payment fee.
Payment service business: "Yiwu Pay" collaborates with the credit consulting company, banks
and other institutions to provide merchants with a financing credit model based on payment data
as the underlying layer, and the credit reporting company uniformly encapsulates and outputs it
to financial institutions such as banks, providing financing services and obtains corresponding
service fees.
The credit consulting company was established in July 2014, collaborating with government
departments to promote the construction of the city's social credit system. It has established a
data system centered on public data, commercial data, and e-commerce data. By constructing
precise enterprise portraits, it provides technical support in credit verification, joint rewards and
punishments, inclusive finance, and other fields of government and financial institutions, and
empowers trade ecological value with data elements. Currently, it covers 1.08 million legal
entities, with a total of over 164 million pieces of data. Through the enterprise credit information
query platform, the Credit Reporting Company provides financial institutions with enterprise
credit information query services and carries out data management for inclusive finance of banks.
Currently, there are more than 30,000 credit subjects, with a total credit amount of RMB 9.93
billion. The credit consulting company charges service fees through technology development,
system interface docking, and data support based on inclusive finance for banking and insurance
institutions.
Zhejiang China Commodities City Group Commercial Factoring Co., Ltd. (referred to as
"China Commodities City Factoring") was established in January 2022 and is a local financial
organization approved by the Zhejiang Provincial Local Financial Supervision and Administration
Bureau. China Commodities City Factoring is mainly engaged in trade financing, accounts
receivable settlement, management and collection, customer credit investigation and evaluation,
and non-commercial bad debt guarantee through the transfer of accounts receivable. China
Commodities City Factoring mainly serves the merchants of Yiwu International Trade City, and
the main income comes from interests and handling fees for factorage financing. After the
expansion of business scale in the later stage, China Commodities City Factoring can cooperate
with banks and other funding parties to obtain service fees.
3. Chronicles of the 30th anniversary of the Company's establishment
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No. Time Key events
Opening of Yiwu Huqingmen Small Commodities Department
1 September 5, 1982
Store Market
2 December 6, 1984 Opening of Xinma Road Yiwu Small Commodities Market
Opening of Yiwu Small Commodities Market on Chengzhong
3 September 1986
Road
4 February 1992 Opening of Huangyuan Market Phase I
With the approval of the State Administration for Industry and
Commerce, Yiwu Small Commodities Market was officially
5 August 3, 1992
renamed as the "China Commodities City", Yiwu City, Zhejiang
Province
6 October 28, 1994 Opening of Huangyuan Market Phase II
Opening of the First China Commodities City Famous New
7 May 18, 1995
Small Commodities Fair
8 1995 The train named "China Commodities City" departed
Yiwu China Commodities City Chamber of Commerce was
9 August 1, 1995 established (registered and filed with the Civil Affairs Bureau in
August 2008)
10 November 29, 1995 Opening of Binwang Market
The China Commodities City Famous New Small Commodities
11 1996
Fair was officially renamed as the China Yiwu Commodities Fair
Yiwu "China Commodities City" obtained the right of self-
operated import and export, which is one of the first professional
12 October 1, 1998
markets in Zhejiang Province to obtain the right of self-operate
import and export
The China Yiwu Commodities Fair was upgraded to an
13 October 1, 2002 international exhibition and officially renamed as the China Yiwu
International Commodities Fair
14 October 22, 2002 Opening of the First District of Yiwu International Trade City
Yiwu China Commodities City was awarded the title of "Market
valuing quality and keeping promises" by the General
15 October 22, 2002
Administration of Quality Supervision, Inspection and
Quarantine of China
16 October 22, 2004 Opening of the Second District of Yiwu International Trade City
The Yiwu market is praised by authoritative institutions such as
17 2005 the United Nations, the World Bank, and Morgan Stanley as the
"world's largest wholesale market for small commodities"
The United Nations Refugee Agency's Yiwu Procurement
18 August 25, 2005
Information Center settled in Yiwu International Trade City
19 October 22, 2005 Opening of the Third District of Yiwu International Trade City
Yiwu International Trade City was awarded China's first
20 December 22, 2005 "National AAAA-level Shopping Tourism Area" by the National
Tourism Administration
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No. Time Key events
The Yiwu Procurement Information Center of the Supply
21 May 26, 2006 Department of Foreign Missions of the Ministry of Foreign
Affairs unveiled its plaque
Yiwu China Commodities City was awarded the first honorary
22 September 2006 title of "Contract Abiding and Creditworthy Unit" by the State
Administration for Industry and Commerce of China
The Yiwu China Small Commodities Index was officially
23 October 22, 2006
released
Yiwu China Commodities City was awarded the honorary title of
24 February 2008 "National Market Credit Classified Supervision Demonstration
Market" by the State Administration for Industry and Commerce
25 October 21, 2008 Opening of the Fourth District of Yiwu International Trade City
The Ministry of Commerce issued and implemented industry
26 November 1, 2008
standards for the classification and coding of small commodities
27 May 5, 2011 Opening of the Fifth District of Yiwu International Trade City
Yiwu Imported Commodities Museum was opened, which was
28 May 5, 2011 renamed "Yiwu China Imported Commodities City" on August
30, 2017
29 May 5, 2011 Opening of Huangyuan Clothing Market
30 November 19, 2013 Opening of the International Production Materials Market
The trademarks of "Yiwu China Commodities City” and its
31 November 20, 2014 picture were officially recognized as well-known trademarks by
the State Administration for Industry and Commerce
China Commodities City Online Commerce Service Area was
32 July 6, 2015
approved as a "National E-commerce Demonstration Base"
The Eastern Expansion Market of the First District of Yiwu
33 March 24, 2016
International Trade City was officially opened
34 September 28, 2016 Opening of Haicheng Yiwu China Commodities City
The China Yiwu International Commodities Fair was renamed
35 August 2019
as the China Yiwu International Commodities (Standards) Fair
36 February 18, 2020 Yiwu market was the first to restart operation in China
37 June 30, 2022 Opening of Dubai Yiwu China Commodities City
The construction of the Global Digital Trade Center was officially
38 November 25, 2022
started
Opening of Yiwu International Trade City Second District East
39 17-MAR-2023
New Energy Product Market
Xi Jinping, General Secretary of the CPC Central Committee,
President of the State and Chairman of the Central Military
40 September 20, 2023
Commission visited Yiwu International Trade City for
investigation.
4. Honors obtained as of the 30th anniversary of the Company's establishment
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No. Name Awarded by Photos Level
National Bureau of Statistics,
First in the Top Ten
Market Operation Department of
Comprehensive
the Ministry of Commerce National
1 Trading Markets for
National Business Federation of level
Industrial Products
the Department of Trade and
in China
Economic Statistics
Key Integrated
Domestic and
Ministry of Commerce of the National
2 Foreign Trade
People's Republic of China level
Commodity Markets
Cultivated
National Advanced
National
3 Grassroots Party Central Committee of the CPC
level
Organizations
China Council for the Promotion
China Import of International Trade National
4
Promotion Center China International Chamber of level
Commerce
National Advanced Ministry of Human Resources
Collective for and Social Security
National
5 Comprehensive Central Commission for
level
Governance of Comprehensive Control of Law
Social Security and Order
Contract Abiding State Administration for Industry
National
6 and Trustworthy and Commerce of the People's
level
Unit Republic of China
General Administration of
Valuing Quality and Quality Supervision, Inspection National
7
Keeping Promise and Quarantine of the People's level
Republic of China
National Credit
State Administration for Industry
Supervision National
8 and Commerce of the People's
Demonstration level
Republic of China
Market
Zhejiang Province
Foreign Trade
Zhejiang Provincial Department Provincial
9 Innovation and
of Commerce level
Development
Demonstration Unit
National Advanced
National
10 Employment State Council of the PRC
level
Enterprises
National May Fourth
Central Committee of the National
11 Red Flag Youth
Communist Youth League level
League Committee
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2023 Annual Report
No. Name Awarded by Photos Level
China Academy of Social
Top Ten Digital Sciences Evaluation and
National
12 Leaders in China's Research
level
Commodity Market Organizing Committee of China
Commodity Market Summit
China Academy of Social
Sciences Evaluation and
Top 100 Chinese National
13 Research
Commodity Markets level
Organizing Committee of China
Commodity Market Summit
Top Ten Zhejiang Provincial
Transformation Administration for Industry and
Provincial
14 Demonstration Commerce
level
Markets in Zhejiang Zhejiang Provincial Market
Province Association
All-China Federation of Trade National
15 Employee Library
Unions level
Women's Civilized National
16 All-China Women's Federation
Post level
IV. Analysis of core competencies during the reporting period
√Applicable □Not applicable
1. First-mover advantages
At the start of China’s reform and opening-up, Yiwu took the lead in establishing the
commodities market. During the recent forty years, the market has been upgraded five times and
expanded ten times and has been among the top comprehensive national markets with the
highest turnover, pointing to its remarkable first-mover advantages. As the largest commodities
distribution center in the world, the Yiwu commodities market provides more than 2.1 million
products, which fall in 26 categories and support one-stop purchase. The market boasts
enormous resources and huge business flow, goods flow, cash flow and information flow.
2. Brand advantages
“Yiwu China Commodities City” is the first market identified by the SAIC as a well-known
trademark among the national commodities trading markets. The Company has taken multiple
measures to give play to the brand of “Yiwu China Commodities City” and is committed to
improving its influence and leading role in the industry. Its brand advantages and influence have
kept enhancing.
3. Supporting services advantages
The People’s Government of Yiwu has been providing policy support for the development
of the market for years, and the auxiliary industries are developing rapidly in Yiwu.
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(1) Convenient logistics system
Yiwu has in place perfect commerce and trade auxiliary facilities and advantageous logistics
service. The logistics network has full coverage in Yiwu. A large number of large-sized
international and domestic express delivery and logistics companies have regional distribution
centers in Yiwu, and a world-oriented goods transport and distribution network has been
established. Yiwu has been listed among the “commerce and trade-oriented national logistics
hubs” by the National Development and Reform Commission and the Ministry of Transport.
According to the 2023 operation status of the postal industry published by the National Postal
Administration, the express delivery business volume of Jinhua (Yiwu) in 2023 was 13.694 billion
pieces, ranking first in China.
(2) Industry support
During the recent years, thanks to the Yiwu China Commodities City, the Yiwu-centered
manufacturing industry cluster has been developing fast, an commodities industrial belt that is
centered in Yiwu and covers Jinhua, Lishui, Quzhou, Hangzhou, Jiaxing, Taihu, Shaoxing,
Ningbo, Wenzhou and Taizhou with an area of nearly 10,000 sq. km has been established, and
a benign mechanism under which the Yiwu wholesales market and the peripheral industry cluster
develop together has been formed.
(3) Support from exhibition service
The major international trade exhibitions held by the Company’s exhibition business division
such as China Yiwu International Commodities Fair, China Yiwu International Forest Products
Fair, China Yiwu International Imported Commodities Fair and China Yiwu Hardware and
Electrical Expo support and cultivate vertical exhibition in multiple industries such as stationery
and textiles, have developed multiple professional and international exhibition brands, and are
important national platforms for the China Commodities City to lead industry development,
develop the city economy and maintain the clusters of traders and commodities.
4. Advantages of diversified businesses
The Company has strengthened its presence in the related industries, made efforts on
financial investment, kept developing the exhibition business, created a new e-commerce model,
developed the hotel business and also run international trade, modern logistics, advertising
information, shopping and tourism businesses. It has created a group structure and profit-making
model of shared and interactive development of market resources.
5. Management advantages
In terms of personnel, management and technology, excellent operation and management
ability is one of the core competences of the Company as a professional market operating
company. The Company has developed a series of perfect management systems for market
operation and management, accumulated rich experience in operation and management, and
has cultivated a professional management team with reasonable knowledge and expertise
structures and strategic development insights.
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6. Advantages of online and offline platform integration
The Company’s international trade city is the global leading commodity market. The
Company’s official Yiwu CCC website, chinagoods platform, relying on the Company’s 75,000
off-line shops, through integration of online and offline services, serves 2.1 million small, medium
and micro enterprises in the upper reaches of the industry chain. With trade data integration as
the core driver, it meets the needs of both supply and demand parties in manufacturing, display
transactions, warehousing and logistics, financial credit, market management and other links.
7. Advantage of international logistics
The Company's Zhijie Yuangang international logistics business, establishes a logistics
platform to replace the multi-layer freight forwarder system, thus shortening the level of freight
forwarder distribution, and improving logistics efficiency. In contrast, the traditional foreign trade
freight forwarders are divided into multiple levels, the logistics and transportation services are
not standardized, and the service prices vary widely and are usually not the lowest price.
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V. Operating status during the reporting period
During the reporting period, the main operating status of the Company are as follows:
(i) Analysis of main business
1. Analysis of changes in related accounting subjects of income statement and cash
flow statement
Unit: RMB
Subject Amount in the current Amount in the
YoY change (%)
report period previous year
Operating revenue 11,299,686,665.89 7,619,693,742.60 48.30
Operating cost 8,305,741,779.40 6,452,909,829.96 28.71
Sales expenses 240,304,021.01 197,679,981.09 21.56
Administrative expenses 559,531,630.75 529,466,270.71 5.68
Financial expenses 125,011,959.33 149,148,889.80 -16.18
R&D expenses 21,748,987.30 17,377,161.88 25.16
Net cash flow from 1,845,059,849.92 1,400,090,713.77 31.78
operating activities
Net cash flow from -1,374,994,819.34 -2,362,698,917.70 NA
investing activities
Net cash flow from 460,485,131.00 -1,057,216,958.11 NA
financing activities
Reasons for the change in operating revenue: Operating revenue increased by 48.30% YoY,
mainly due to the opening of the Second District East New Energy Product Market and rent
reduction in the previous year, as well as the YoY expansion of product sales scale.
Reasons for the change in net cash flow generated from operating activities: that is mainly
due to the YoY increase of RMB 665 million in net cash received from sales of goods and
provision of services, and a decrease of RMB 278 million in tax refunds received.
Details of material changes to the business types, the components or sources of profits of the
Company in this reporting period
□Applicable √Not applicable
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2. Revenue and cost analysis
√Applicable □Not applicable
The Company's operating revenue for 2023 was RMB 11.3 billion, an increase of RMB 3.68
billion YoY, and operating costs were RMB 8.306 billion, an increase of RMB 1.853 billion YoY;
Among them, the main business revenue was RMB 10.935 billion, up 49.25% YoY, and the main
business cost was RMB 8.163 billion, up 28.84% YoY.
(1). Main business by industry, product, region, and sales model
Unit: RMB 10,000
Main business by industry
Gross Change in Change in
Increase or
Operating Operating profit operating operating
By industry decrease in gross
revenue cost margin revenue cost YoY
profit margin YoY
(%) YoY (%) (%)
Market 307,434.79 86,612.08 71.83 81.16 -9.97 Up 28.52 ppt
operation
Trade services 60,245.91 18,233.13 69.74 43.37 -17.73 Up 22.48 ppt
Supporting 46,662.10 35,658.56 23.58 79.30 64.50 Up 6.88 ppt
services
Sales of goods 679,156.67 675,783.05 0.50 37.22 36.93 Up 0.22 ppt
Sub-total 1,093,499.47 816,286.82 25.35 49.25 28.84 Up 11.82 ppt
Description of main business by industry
1. The market operating revenue increased by 81.16% YoY, mainly due to the newly
added revenue from the Second District East New Energy Product Market and the impact of
the rent reduction policy implemented in the previous year.
2. The trade service revenue increased by 43.37% YoY, mainly due to the YoY increase in
information service revenue from the Chinagoods platform and other platforms in this period.
3. The revenue and cost of supporting services increased by 79.30% YoY and 64.50%
YoY, respectively, mainly due to the increase in hotel occupancy rate and the expansion of
exhibition business scale in this period.
4. The sales revenue and cost of goods increased by 37.22% YoY and 36.93% YoY,
respectively, mainly due to the significant YoY growth in the sales business of goods in this
period.
(2). Table of production and sales analysis
□Applicable √Not applicable
(3). The performance of major purchase contracts and major sales contracts
□Applicable √Not applicable
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2023 Annual Report
(4). Cost Analysis Table
Unit: RMB 10,000
Situation by industry
Proportion Proportion
Amount in
Amount in in the total in the total YoY
By Cost the
the current cost in the cost in the change Description
industry components previous
period current previous (%)
year
period (%) year (%)
Depreciation
Market
and 45,621.19 5.59 43,737.99 6.90 4.31
operation
amortization
Market Wages and
6,381.71 0.78 7,693.99 1.21 -17.06
operation benefits
Market
Other costs 34,609.18 4.24 44,775.42 7.07 -22.70
operation
Property
Trade
management 3,350.82 0.41 3,239.75 0.51 3.43
services
cost
Network
Trade transformation
14,882.31 1.82 18,922.95 2.99 -21.35
services services and
others
Depreciation New provision for
Supporting
and 9,924.40 1.22 5,186.80 0.82 91.34 assets
services
amortization impairment
Cost of food Expansion of
Supporting
and beverage 8,800.84 1.08 5,539.34 0.87 58.88 catering revenue
services
raw materials scale
Supporting Wages and Increase in
4,714.77 0.58 3,154.74 0.50 49.45
services benefits personnel
Material and Expansion of
Supporting
fuel 2,063.33 0.25 1,116.72 0.18 84.77 catering revenue
services
consumption scale
Exhibition and
Supporting
advertising 5,318.13 0.65 4,486.46 0.71 18.54
services
cost
Mainly due to the
Supporting
Other costs 4,837.09 0.59 2,193.16 0.35 120.55 expansion of
services exhibition scale
Mainly due to the
Sales of Cost of
675,783.05 82.79 493,522.41 77.89 36.93 increase in product
goods product sales sales
Total 816,286.82 100.00 633,569.73 100.00 28.84
Explanation on cost analysis and other information
No
(5). Changes in consolidation scope due to the changes in main subsidiaries' share
ownership during the report period
□Applicable √Not applicable
(6). Major changes or adjustment in the Company's business, products or services
□Applicable √Not applicable
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2023 Annual Report
(7). Main sales customers and suppliers
A. Main sales customers of the Company
□Applicable √Not applicable
Case in which the sales to a single customer accounted for over 50% of the total sales, new
customers were added to the list of top 5 customers or the Company relied heavily on a few
customers during the report period
□Applicable √Not applicable
B. Main suppliers of the Company
□Applicable √Not applicable
Case in which the purchase amount for a single supplier accounted for over 50% of the total
purchase amount, new suppliers were added to the list of top 5 suppliers or the Company
relied heavily on a few suppliers during the report period
□Applicable √Not applicable
Other statements
No
3. Costs
√Applicable □Not applicable
Unit: RMB 10,000
Item 2023 2022 YoY change Change Explanation on changes
amount in %
Sales
24,030.40 19,768.00 4,262.40 21.56
expenses
Administrative
55,953.16 52,946.63 3,006.53 5.68
expenses
R&D
2,174.90 1,737.72 437.18 25.16
expenses
Financial
12,501.20 14,914.89 -2,413.69 -16.18
expenses
Income tax Due to an increase in
52,666.89 4,620.57 48,046.32 1,039.84
expenses taxable income
Unit: RMB 10,000
Item 2023 2022 YoY change Change
amount in %
Human resources
34,011.66 31,721.94 2,289.72 7.22
expenditure
Advertising expenses 2,693.85 3,174.30 -480.45 -15.14
Security and insurance
4,733.94 3,384.43 1,349.51 39.87
costs
R&D expenses 2,174.90 1,737.72 437.18 25.16
Depreciation and
14,020.84 11,406.51 2,614.33 22.92
amortization
Promotion and investment
15,535.01 9,221.94 6,313.07 68.46
promotion
Intermediary expenses 1,959.67 1,913.78 45.89 2.40
Office expenses 1,748.95 1,411.89 337.06 23.87
Water, electricity and fuel
716.87 695.33 21.54 3.10
consumption
Start-up fee - 4,089.58 -4,089.58 -100.00
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2023 Annual Report
Other expenses 4,562.77 5,694.93 -1,132.16 -19.88
Subtotal of management,
82,158.46 74,452.35 7,706.11 10.35
R&D and sales expenses
4. R&D Investment
(1) Table of R&D investment status
√Applicable □Not applicable
Unit: RMB 10,000
Expensed R&D investment in this 2,174.90
period
Capitalized R&D investment in this 2,690.93
period
Total R&D investment 4,865.83
Total R&D investment as a 0.43
percentage of operating income (%)
Proportion of capitalization of R&D 55.30
investment (%)
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2023 Annual Report
(2) Table of R&D personnel status
√Applicable □Not applicable
Number of R&D personnel 160
Number of R&D personnel as a percentage of the
4.62
Company’s total personnel number (%)
The education level of R&D personnel
Education level People at this education level
Master's degree 9
Bachelor's degree 110
Junior college education 41
Age of R&D personnel
Age range People in this age range
Below 30 (30 excluded) 54
30-40 (30 included, 40 excluded) 90
40-50 (40 included, 50 excluded) 15
50-60 (50 included, 60 excluded) 1
(3) Reasons for change
□Applicable √Not applicable
(4) Reasons for major changes in the composition of the R&D personnel and their
infuence on the Company's future development
□Applicable √Not applicable
5. Cash flow
√Applicable □Not applicable
Unit: RMB 10,000
Item 2023 2022 YoY change
Net cash flow (used)/generated from
184,505.98 140,009.07 44,496.91
operating activities
Net cash flow (used)/generated from
-137,499.48 -236,269.89 98,770.41
investing activities
Net cash flow (used)/generated from
46,048.51 -105,721.70 151,770.21
financing activities
(Decrease)/increase in cash and cash
92,897.80 -202,526.74 295,424.54
equivalents
1. The net cash flow generated from operating activities increased by RMB 445 million YoY,
mainly due to a YoY increase of RMB 665 million in net cash received and paid for the sale of
goods and provision of services in this period, and a YoY decrease of RMB 278 million in tax
refunds received.
2. The net cash flow generated from investment activities increased by RMB 988 million
YoY, mainly due to a YoY decrease of RMB 488 million in net outflow of investments in this
period, an increase of RMB 187 million in net cash received from the disposal of fixed assets,
intangible assets, and other long-term assets, and a YoY decrease of RMB 313 million in net
cash paid by subsidiaries.
3. The net cash flow generated from financing activities increased by RMB 1.518 billion YoY,
mainly due to a YoY increase of RMB 1.453 billion in net inflow of financing in this period.
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2023 Annual Report
(ii) Material changes to profits caused by non-main businesses
□Applicable √Not applicable
(iii) Analysis of assets and liabilities
√Applicable □Not applicable
1. Assets and liabilities
Unit: RMB 10,000
Percentage
% of
Closing change of the
total
Closing balance as a closing
Amount at assets
balance in the percentage of balance of the
the end of at the
Item prior total assets in current period Reasons for change
the current end of
corresponding the prior compared
period the
period corresponding with the prior
current
period (%) corresponding
period
period (%)
Cash and
cash 292,273.53 8.07 199,129.90 6.20 46.78
equivalents
Held-for-
trading
1,513.09 0.04 6,233.10 0.19 -75.72
financial
assets
Mainly due to the
expansion of factoring
Accounts business scale in this
59,285.78 1.64 21,075.07 0.66 181.31
receivable period and the increase in
factored accounts
receivable
Prepayments 98,606.26 2.72 60,605.70 1.89 62.70
Other
11,527.94 0.32 41,939.81 1.31 -72.51
receivables
Property
414,420.94 11.44 285,164.32 8.88 45.33
investment
Construction
395,595.92 10.92 286,006.48 8.91 38.32
in progress
Due to an increase in
Development research and
1,864.84 0.05 466.10 0.01 300.09
expenses development investment
in this period
Short-term
161,980.49 4.47 105,928.74 3.30 52.91
borrowings
Advances
from 60,236.44 1.66 88,599.33 2.76 -32.01
customers
Tax payable 34,818.52 0.96 21,499.84 0.67 61.95
Other
186,272.07 5.14 132,559.61 4.13 40.52
payables
Non-current
Transfer-in of long-term
liabilities due
17,914.08 0.49 8,685.23 0.27 106.26 interest-bearing liabilities
within one
due within one year
year
Long-term 86,279.89 2.38 40,450.00 1.26 113.30
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2023 Annual Report
borrowings
Offsetting estimated
Estimated
- - 11,062.03 0.34 -100.00 liabilities for provision for
liabilities
letter of credit litigation
Deferred
16,043.27 0.44 10,358.21 0.32 54.88
income
Other statements
No
2. Overseas assets
√Applicable □Not applicable
(1) Scale of assets
Among them, overseas assets were RMB 473 million, accounting for 1.31% of the total assets.
(2) Explanation of the high proportion of offshore assets
□Applicable √Not applicable
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2023 Annual Report
3. Encumbrances on major assets as of the end of the reporting period
√Applicable □Not applicable
Unit: RMB
Item 2023 2022
Cash and cash equivalents 12,556,381.42 10,098,029.66
Inventory 8,925,585.77 -
Long-term equity investment 102,918,559.00 102,918,559.00
Other non-current financial 631,520,588.85 621,447,424.37
assets
Other current assets 313,869,496.74 367,484,914.87
Total 1,069,790,611.78 1,101,948,927.90
The situation of restricted assets can be found in Financial Report Note VII. 31. Restricted
Assets of Ownership or Use Rights in Section IX.
4. Other statements
□Applicable √Not applicable
(iv) Analysis of business information of industry
√Applicable □Not applicable
For details, please refer to "II. The situation of the industry of the Company" in this section
39 / 289
2023 Annual Report
(v) Analysis of investments
Overview of external equity investment
√Applicable □Not applicable
As of the end of December 2023, the external investment amount was RMB 9.0163777 billion (including trading financial assets of RMB 15.1309
million, long-term equity investment of RMB 7.0227795 billion, other equity instrument investment of RMB 556.8974 million, and other non-current
financial assets of RMB 1.4215699 billion), an increase of RMB 921.0654 million, or 11.38%, from RMB 8.0953123 billion (including trading financial
assets of RMB 62.331 million, long-term equity investment of RMB 6.0334729 billion, other equity instrument investment of RMB 499.2008 million, and
other non-current financial assets of RMB 1.5003076 billion) at the end of the previous year. The main changes were as follows:
i. At the end of the reporting period, trading financial assets decreased by RMB 47.201 million from the end of the previous year, due to a
decrease of RMB 38.6794 million in bank wealth management during the reporting period, as well as a decrease of RMB 8.5207 million in the sale of
some Dongfang Entrepreneurship shares and changes in fair value.
ii. At the end of the reporting period, long-term equity investment increased by RMB 989.3066 million from the end of the previous year, mainly
due to:
1. The decrease of RMB 50 million in investment costs, which was due to the recovery of RMB 50 million in investment funds from Yiwu Hongyi
Equity Investment Fund Partnership during the reporting period.
2. The net increase of RMB 1.039306 billion in the accrued income by equity method, ect., which was due to the accrued investment income by
equity method of RMB 1.0358582 billion during the reporting period.
iii. At the end of the reporting period, other equity instrument investments increased by RMB 57.6966 million from the end of the previous year,
due to changes in fair value of Shenwan Hongyuan Group Co., Ltd. during the reporting period.
iv. At the end of the reporting period, other non-current financial assets decreased by RMB 78.7377 million from the end of the previous year. This
was due to the recovery of RMB 40.5043 million in investment funds from Yiwu Shanyue Equity Investment Partnership (Limited Partnership) and
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2023 Annual Report
Beijing Yiyun Clean Technology Entrepreneurship Investment Co., Ltd. during the reporting period, as well as the income of RMB -38.2334 million from
the disposal of other non-current financial assets and fair value change.
1. Major equity investments
□Applicable √Not applicable
2. Major non-equity investments
√Applicable □Not applicable
Unit: RMB 10,000
Investment
Cumulative
amount
actual
Project during
Item Progress investment
amount current
amount
period
.
The Yiwu
Comprehensive The completion and acceptance of the projects in the southern and northern zones of
624,250.00 71,692.37 362,262.42
Bonded Zone the new import market were completed.
Project
Logistics Park The main body was basically completed and met the conditions for completion
108,000.00 34,523.24 58,057.14
S2 acceptance.
Logistics Park The main body was basically completed and met the conditions for completion
132,000.00 34,282.25 64,682.30
S3 acceptance.
Yiwu
International 93.6% of the total project was completed, of which all individual buildings were
113,600.00 51,477.51 63,079.75
Digital Logistics basically completed.
Market
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2023 Annual Report
1. Phase I project (hotel plot): The overall progress was 52%, with 100% of the main
structure completed and about 70% of the secondary structure completed.
2. Phase II project (market, business office building): Approximately 77% of the
Global Digital basement structure work was completed. About 90.30% of the market lot 1 was
Free Trade 832,082.00 completed; About 92.90% of the market lot 2 was completed; About 61.60% of the 68,140.69 75,328.51
Center business office building lot 1 was completed; About 62.70% of the business office
building lot 2 was completed.
3. Super high-rise building lot: In the stage of earthwork and foundation pit engineering,
about 20% of the earthwork transportation was completed.
3. Financial assets measured with fair value
√Applicable □Not applicable
Unit: RMB 10,000
Profit and loss
Closing
from changes Cumulative fair Current Sale/redemption
Opening Other balance of
Category of assets in fair value in value changes purchase amount in current
balance changes the current
the current included in equity amount period
period
period
Held-for-trading
6,233.10 82.33 - - 4,802.34 - 1,513.09
financial assets
Other equity
instruments 49,920.08 - 245.40 - - 5,769.66 55,689.74
investment
Other non-current
150,030.76 -5,325.39 - - 2,548.38 - 142,156.99
financial assets
Total 206,183.94 -5,243.06 245.40 - 7,350.72 5,769.66 199,359.82
Securities Investment
√Applicable □Not applicable
Unit: RMB 10,000
Profit
Initial Source Opening Cumulative Current Sales Profit and Closing
Security Security and loss Accounting
Securities investment of book fair value purchase amount loss from book
code abbreviation from item
cost funds value changes amount in investment value
changes
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2023 Annual Report
in fair included in current in current
value in equity period period
the
current
period
Self- Other equity
Shenwan
Stocks 000166 55,362.54 owned 49,920.08 - 4,327.24 - - 376.28 55,689.74 instruments
Hongyuan
funds investment
Held-for-
Self-
Oriental trading
Stocks 600278 5,000.00 owned 2,365.16 82.33 - - 934.40 202.32 1,513.09
Venture financial
funds
assets
Other non-
Self-
Tiantu - current
Stocks 833979 15,519.21 owned 4,773.97 - - - - 3,717.19
Investment 1,056.78 financial
funds
assets
Total / / 75,881.90 / 57,059.21 -974.45 4,327.24 - 934.40 578.60 60,920.02 /
Explanation of securities investment
□Applicable √Not applicable
PE investment
√Applicable □Not applicable
At the end of this reporting period, the book value of private equity fund investments was RMB 1.2224834 billion, a decrease of RMB 20.054 million
from RMB 1242.5374 million at the end of the previous year. This was due to the recovery of RMB 40.5043 million in investment funds from Yiwu
Shanyue Equity Investment Partnership (Limited Partnership) and Beijing Yiyun Clean Technology Entrepreneurship Investment Co., Ltd. during the
reporting period, as well as RMB 20.453 million in fair value change.
Derivatives investment
□Applicable √Not applicable
4. Specific progress of major asset restructurings during the report period
□Applicable √Not applicable
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2023 Annual Report
(vi) Major sales of assets and equity
□Applicable √Not applicable
(vii) Analysis of major subsidiaries and associates
√Applicable □Not applicable
Unit: RMB 10,000
Registered
Company name Business Total assets Net assets Net profits
capital
Yiwu China Commodities City Financial Enterprise's own capital investment, asset management, investment
400,000.00 284,075.64 260,718.78 -1,643.77
Holdings Co., Ltd. consulting services, investment management services
Industry investment, investment management, property service, market
Haicheng Yiwu China Commodities City development and operation, market auxiliary service, real estate development,
60,000.00 192,251.39 -104,880.43 -10,055.19
Investment Development Co., Ltd. sale and lease, design, production and agency of domestic advertising, and
operation and management of parking garages
Yiwu Shangbo (former name: Yiwu Shangbo
Enterprise management; property management, etc. 30,000.00 118,369.76 50,304.78 -2,083.50
Real Estate Co., Ltd.)
Yiwu Commodities City Gonglian Property Co.,
Real estate development and sale 20,000.00 16,037.46 15,879.71 104.67
Ltd.
Kuaijietong Payment Service Co., Ltd. Internet payment, cross-border RMB, cross-border foreign exchange, etc. 18,000.00 54,033.73 15,258.14 1,629.28
Yiwu Xingchen Enterprise Management Co.,
Ltd. (former name: Yiwu China Commodity R&D of computer and multimedia software 15,000.00 266,227.72 12,095.86 37.48
City Payment Network Technology Co., Ltd.)
Yiwu China Commodities City Import and
Domestic trade and international trade 10,000.00 115,346.11 7,536.84 1,739.81
Export Co., Ltd.
Internet data services; professional design services; intelligent control system
Yiwu China Commodities City Big Data Co.,
integration; computer information technology development, technical 10,000.00 37,757.44 20,491.15 8,141.99
Ltd.
consulting, technical services, technology transfer, etc.
Yiwu China Commodities City Supply Chain
Supply chain management service 10,000.00 16,959.28 6,959.06 100.84
Management Co., Ltd.
Computer software, multimedia technologies, computer network and
Zhejiang Yiwugou E-commerce Co., Ltd. 10,000.00 17,898.25 12,421.69 2,068.40
application, and wholesale & retail
Yiwu China Commodities City Property
Real estate development and sale 500,000.00 2,092,930.84 652,838.40 28,003.14
Development Co., Ltd.
Yiwu Hongyi Equity Investment Fund Investment management, equity investment, asset management and
200,100.00 186,302.65 184,027.18 3,055.34
Partnership (limited partnership) investment consulting
Zhejiang Chouzhou Financial Lease Co., Ltd. Financial lease service, and transfer of financial lease assets 100,000.00 2,019,224.78 221,079.31 32 923.33
Industrial investment, investment management, property services, parking lot
Yiwu Shanglv Investment Development Co.,
operation and management, commercial marketing planning, business 80,000.00 131,677.69 92,010.95 7,854.06
Ltd.
management consulting, mall operation and management, etc.
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2023 Annual Report
Pujiang Lvgu Property Co., Ltd. Real estate development and sale 70,000.00 134,214.36 70,672.83 -5,776.39
International cargo transportation agency by sea; international cargo
Zhejiang Zhijie Yuangang International Supply transportation agency by air; international cargo transportation agency by land;
55,556.00 60,758.39 40,309.11 -5,030.15
Chain Technology Co., Ltd. domestic cargo transportation agency; domestic shipping agency; general
cargo warehousing services, etc.
Real estate development, sale and lease; real estate brokerage service,
Yiwu Guoshen Shangbo Property Co., Ltd. 4,081.63 237,211.12 189,228.50 173,771.35
interior decoration service; and landscaping service
(viii) Structured entities controlled by the Company
□Applicable √Not applicable
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2023 Annual Report
VI. Discussion and Analysis of the Company's Future Development
(i) Industry pattern and trends
√Applicable □Not applicable
1. AI changes business
Artificial intelligence (AI), as one of the core technologies of the Fourth Industrial Revolution,
is driving a profound transformation in global production methods. International organizations
such as the World Economic Forum unanimously believe that AI technologies will greatly
improve production efficiency and product quality, and open up new market opportunities for
enterprises. According to reports from well-known research institutions such as Gartner and
McKinsey, AI is triggering a "productivity revolution" across the world, and it is expected that the
global AI market will exceed trillions of dollars by 2030. As an emerging productivity, AI has
shown broad market prospects and enormous development potential.
In this context, the Company has ushered in a new era with AI technology as its core. The
Company deeply recognizes that AI is not only a symbol of technological innovation, but also a
key force driving changes in business models and operational methods. Therefore, the
management of the Company regards "exploring how AI technology can empower traditional
markets" as the core task of its five-year strategic plan for the future. During the reporting period,
the Company actively integrated AI technology into commercial practice, driving traditional
foreign trade to actively explore the direction of AI.
(1) Preliminary results have been achieved in the exploration and practice of AI applications
① A series of products with AI empowering the digital trade ecosystem have initially formed
a closed loop.
The AI Digital Lady Boss and AI Translator have successfully reduced language barriers for
market operators in foreign trade business; AI-generated images and videos provide a cost-
effective solution for digitizing products; Digital human anchors and AI customer service staff
enable business owners to achieve 24-7 business operations; And AI independent websites
have opened up more trade channels. In addition, Xiaoshang AI has broken through traditional
keyword search and information flow recommendation models through intelligent interactive
Q&A. Not only does it enhance the personalized experience of Chinagoods users, but it also
drives the evolution of the Yiwu commercial model by deeply understanding the preferences and
needs of procurement users, promoting cost reduction and efficiency increase for business
owners, and updating business models.
② "Digital Lady Boss" brings more business display opportunities to merchants
The wave of AI technology is sweeping across various industries, and the business model
of Yiwu is also undergoing changes among "world business circles". Market merchants can
seamlessly switch between different languages and communicate with foreign businesses
without barriers in front of the camera through the multilingual "Digital Lady Boss" AI tool.
Merchants can better showcase their brand store and product image through AI tools, and can
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2023 Annual Report
also achieve business such as customer acquisition, quotation, and order taking. At present,
17,000 people have deeply experienced and used the series of products of Xiaoshang AI on the
Chinagoods platform of Yiwu CCC. The "Digital Lady Boss" empowered by AI has formed a
series of well-known IPs, receiving continuous attention and coverage from media outlets such
as CCTV, People's Daily Online, and Xinhua News Agency, becoming a case of new economic
transformation.
Through follow-up analysis and data statistics of merchants, it was found that within three
months of using AI products, the average inquiry volume of market merchants increased by more
than 30%, and the order volume also increased by more than 15%. The exploration and practice
of AI have received positive feedback in the field of foreign trade.
③ Upgrade of Chinagoods AI Intelligent Innovation Service Platform
In October 2023, the Company released the first large model in the field of commodity
trade China and upgraded the Chinagoods AI Intelligent Innovation Service Platform. Yiwu CCC
has reached strategic cooperation with institutions such as People's Daily Online, Tencent, Baidu,
and Tsinghua University to jointly release big data models in the field of commerce and trade,
successfully attracting numerous AI startups to join the Chinagoods AI Intelligent Innovation
Service Platform.
Unlike most big data models in the market, complex digital trade scenarios require more AI
service providers and AI technology teams to join. The Company chooses to start from the role
of service, combining self-developed products with third-party products, deeply entering trade
scenarios, helping market merchants more efficiently display their brands and products, and
more accurately carry out content marketing. At present, more than 20 AI technology companies
have integrated into the operation and development of digital trade scenarios in the Yiwu market.
The Yiwu market has rich data application scenarios, specific user groups, mature business
models, first-class basic design, and strong computing power support, providing a fertile soil for
the implementation and application of more AI products.
(2) The construction of AI digital trade infrastructure is accelerating
① Hardware construction. In April 2023, the Company signed a cooperation agreement
with China Unicom Zhejiang Branch to plan to build and operate the "Belt and Road" international
data center. The project will follow the framework of "one network, three centers and two
guarantees", including the new international Internet data dedicated channel, green data center,
cloud computing center and intelligent computing center, and provide operation service
guarantee and network data security guarantee. This project aims to promote the flow and
integration of data elements, providing infrastructure support for the future development of
artificial intelligence applications in the Yiwu market.
② Software construction. On October 22, 2023, during the China Yiwu International
Commodities Fair, the Company announced strategic cooperation with institutions such as
People's Daily Online, Tencent, Tsinghua University, and China Post in the fields of AI and big
47 / 289
2023 Annual Report
data. The Company released the world's first vertical industry model in the field of commerce
and trade based on Luka, and launched Version 2.0 of Chinagoods AI Intelligent Innovation
Service Platform. ModelBest is an enterprise incubated by the NLP laboratory of Tsinghua
University, and was named one of the "Top 10 Most Promising Startup" by “AI China” Machine
Heart in 2022. The AI Agent series of ModelBest is based on a large voice model, achieving a
higher quality artificial intelligence interaction experience.
(3) The Company's forward-looking investments in AI applications in the field of commerce
and trade
In the future development blueprint, the Company will continue to make forward-looking
investments in the field of artificial intelligence, promoting innovative applications of AI
technology in the field of commerce and trade.
① With the utmost sincerity and attitude, the Company will work together with more top
technology enterprises to explore the application scenarios of AI technology in the field of
commerce and trade. The Company is dedicated to developing a series of revolutionary digital
tools, including AI digital human matrix, AI website building platform, AI assistant, etc., with the
aim of creating agents (digital agents) with advanced capabilities such as graphic content
generation and deep data analysis, leading the wave of digital transformation in the field of
commerce and trade.
② The Company will accelerate the promotion of digital infrastructure projects such as 10
Gigabit networks and cross-border access networks to ensure an efficient, stable, and fast
network environment. Launch an AI digital customer service system to enhance user service
experience. And pilot the commercial language model project in the new energy industry, in order
to explore deep applications in specific industries and accumulate valuable experience.
AI technology not only improves operational efficiency and reduces costs for traditional
foreign trade, but also creates new business opportunities for market participants, promotes
innovation in business models, and AI changes business. We will always maintain sensitivity and
a sense of crisis, embrace change, and strive for innovation. We will be based on the Yiwu
market and connect global suppliers and buyers through AI technology to achieve intelligent
matching and efficient circulation of trade information, contributing to the prosperity and
development of global trade.
2. Data elements
In the era of digital economy, data has become a "new energy" driving business
transformation, and the digital industry is gradually becoming a new engine for China and even
the global economic recovery. According to the Research Report on the Development of China's
Digital Economy (2023) by the China Academy of Information and Communications Technology,
the scale of China's digital economy development exceeded RMB 5 billion for the first time in
2022, and it is expected that the scale of China's data trading market will reach RMB 204.6 billion
by 2025.
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2023 Annual Report
On January 12, 2022, the State Council released the "14th Five Year Plan for the
Development of the Digital Economy", and on December 19, 2022, the Central Committee of the
Communist Party of China and the State Council issued the "Opinions on Building a Data
Infrastructure System to Better Play the Role of Data Elements" (referred to as the "20 Data
Articles"), which aimed to build a data infrastructure system from aspects such as data property
rights, circulation and transactions, income distribution, and security governance, and proposed
20 policy measures. The introduction of the "Twenty Data Articles" will fully leverage China's
advantages in massive data scale and rich application scenarios, activate the potential of data
elements, strengthen, optimize, and expand the digital economy, and enhance new drivers of
economic development.
In August 2023, the Ministry of Finance issued the "Interim Provisions on Accounting
Treatment of Enterprise Data Resources" ("Interim Provisions"), which stipulated the
presentation and disclosure of enterprise data resources in accounting statements and came
into effect on January 1, 2024.
According to the Provisional Regulations, the Company has conducted corresponding
calculation and analysis on the data resource allocation for 2023. In recent years, the Company
has continuously increased its investment in digitalization and data resource related fields,
reaching RMB 130 million; During the reporting period alone, the Company invested RMB 18
million in data resources. In 2024, the Company will continue to expand its investment in data
elements. By the end of the first quarter, the amount of identifiable intangible assets - data
resources - will exceed RMB 8 million. The annual investment is expected to exceed RMB 50
million.
During the reporting period, the Company continued to leverage data elements to empower
and promote the digital transformation and reshaping of small commodity trade across all links,
scenarios, and formats. It effectively connected multi-dimensional data such as Yiwu Index,
credit reporting, Chinagoods, Yiwu Pay, and Zhijie Yuangang, visualized the trade chain,
provided assistance policies such as warehousing and logistics, display transactions, supply
chain finance, and foreign trade warning. Taking the opportunity of public data authorization
operation, the Company innovated application models and collaborative mechanisms, and built
a more comprehensive credit evaluation system, providing financial institutions and government
departments with precise resource allocation, achieving effective regulation and controllable
risks.
(1) Successfully completed the certification work of Yiwu Index - related data
The Yiwu Index is a price indicator and market barometer that leads the development of the
Yiwu market. The Yiwu Index, as the core module for capitalization of company data elements,
has successfully achieved the confirmation of ownership of Yiwu Index - related data in 2023
with the support of the "People's Chain", ensuring the legal and compliant circulation of future
index related data elements and laying the foundation for subsequent data capitalization.
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The Yiwu Index has been continuously and completely recorded and stored in the
Company's data center for 17 years from 2006 to 2023, including a total index, various levels of
indices, and raw collected data of approximately 10 million rows. Based on Yiwu China
Commodities market trading data, comprehensively reflect the macroeconomic situation and
reveal the macroeconomic turning point in advance.
The "Yiwu China Small Commodity Index Information Special Issue" based on the Yiwu
Index has been disseminated to tens of thousands of buyers from over 100 countries including
Europe, America, the Middle East, and Africa through various channels. Write and publish over
1200 articles, including weekly price index reviews, monthly prosperity index analysis, and
quarterly market operation survey questionnaire analysis, targeting governments, research
institutions, etc., to provide practical basis for policy formulation and market research.
(2) Deepened the "Data Element X Commercial Circulation" action plan, and continuously
accumulated commercial data and high-value application products.
In terms of data element product innovation, based on public data operation and enterprise
data, we promote the operation innovation model of financial derivative products from public data
authorization to "data element X commercial circulation" as the basis. We develop a commercial
circulation industry guidance index, expand shop credit, inclusive finance and other data element
products, actively promote the upgrading of the commercial circulation industry, and provide
empowerment and efficiency improvement guidance for merchants, creating a future "Dow
Jones" index cluster in the field of commerce and trade in China, and releasing the value of data
elements in the commercial and trade circulation industry.
In the more than 40 years of development in the Yiwu market, a large amount of commercial
data has been accumulated. As a leading digital comprehensive service provider in the field of
commercial circulation, the Company has been deeply involved in the field for many years. With
the continuous iteration of digital infrastructure in recent years, while strengthening its digital
trade service capabilities, the Company has accumulated a massive amount of data resources
in the field of commercial circulation, including merchant data, performance data, payment data,
credit data, index data, etc. Based on the Company's vast commodity trading network and years
of data accumulation in the field of commercial circulation, and on the basis of deepening the
development of market digitization and trade digitization in recent years, the Company continues
to increase investment in the development of data resources.
The Company has conducted a detailed analysis of the development inputs and outputs
related to data resources in 2023 and as of the end of the first quarter of 2024, and has identified
multiple potential high-value data products and applications at present
Item Application scenarios Expected value realization method
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Online transaction By accumulating trade data, combined with the
intelligent matching, AI vertical application of big data and artificial intelligence (AI)
Chinagoods- commerce and trade model, technology, the Company provides value-added services
related data intelligent warehousing and such as market trend prediction, consumer behavior
products and logistics, supply chain analysis, digital marketing, refined operations, and
applications optimization management, trade customized intelligent solutions to merchants, helping them
performance, mobile reduce costs, increase efficiency, and double business
applications, precise push, etc. performance.
Trade financing credit
The plan is to launch trade financing products in 2024,
reporting services based on
Yiwu Pay- integrating foreign exchange data and credit data, providing
settlement data, credit
related data enterprises with efficient, convenient, and low-cost financing
assessment and risk
products and methods, breaking the information silos of traditional supply
management, prevention and
applications chain finance, and seamlessly integrating data flow and
monitoring of money laundering
capital flow.
and terrorist financing, etc.
Credit report: Providing credit report inquiry and
personalized interface services according to the needs of
financial institutions, helping financial institutions
Optimization of the entire
comprehensively understand customer credit history and
process of credit management in
financial status;
Credit data financial institutions, including
Risk warning: Analyzing customer profiles through their
products and pre-loan credit assessment and
buying and selling transaction data, timely pushing risk
applications risk control, in loan monitoring,
warning analysis to financial institutions, and thus preventing
customer identification, credit
potential credit risks;
limit calculation, etc.
Intelligent customer acquisition: Supporting dynamic
management of potential users and achieving automated
marketing
These products are To provide basic and customized value-added services
intended for analyzing for different user groups, combined with cooperation with
Application of macroeconomic conditions, external institutions and AIGC technology, the Company
index data industry operation trends, enhances the practicality and innovation of Yiwu Index data
products monitoring consumer market products, explores diversified sources of income, and
trends, predicting future market provides users with more comprehensive and in-depth
trends, etc. market insights and decision-making support.
(3) Planning of and investment in data element capitalization
To ensure the smooth iteration of the Yiwu China Small Commodity Index and better
leverage its role as a “price indicator and market barometer”, in 2024, the Company will use the
inclusion of data resources related to the Yiwu Index into balance sheet as a driving force to
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promote the top-level construction of data element capitalization. With the Yiwu Index cluster as
a landmark, the Company will promote industrial policy guidance and industrial upgrading
empowered by data elements, build a path for data asset value in the digital economy era, and
form a new driving force for the growth of the commercial circulation industry. The Company
plans to collaborate with third-party organizations to promote the capitalization of relevant data
elements. These are specifically manifested in the following as aspects:
① Upgrading the data platform. The Company plans to and its corresponding data
application functions by upgrading the index data collection method, optimizing and upgrading
the index model, developing index prediction functions, implementing data visualization cockpit,
and integrating data dashboards.
② Expanding the breadth of the index. Based on the current Yiwu Index, the Company
plans to build and upgrade index clusters at different levels (world-class, national, industrial, and
enterprise), such as the "Belt and Road" countries trade vitality index, price-prosperity composite
index, small commodity supplier rating index, and SME vitality index, and build the "Dow Jones"
index in the field of commerce and trade in China as a forward-looking indicator.
③ Increasing the depth of the index. The Company plans to combine the needs of different
user groups (government, industry, and corporate clients) and carry out refined management,
providing differentiated data product services with different granularity, quality, form, and content
to different customer groups, such as macroeconomic analysis reports, industry professional
databases, professional report libraries, commercial solutions, etc.
④ Enhancing the impact of the index. The Company plans to deepen cooperation with
mainstream domestic and foreign media and relevant institutions, expand the channels for index
promotion, upgrade the "one magazine, one website, one account", and enhance the influence
of the index.
The Company actively responds to the development needs of the digital economy era,
researches and invests in a new track of data element X, relies on accumulated data resources
and capabilities, constructs a new business and asset portfolio, expands new data products and
service models, drives business applications, and provides digital services for small and
medium-sized enterprises. Based on this, the Company establishes a digital economy landmark,
forms new quality productivity, and accelerates its transformation to an "international trade
comprehensive service provider".
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(ii) Development strategies of the Company
√Applicable □Not applicable
At the Fifth China-Africa Entrepreneurs Conference, General Secretary Xi Jinping called
Yiwu the world "Capital of Small Commodities", pointing out the direction for the development of
the market and the Company. As the builder and service provider of Yiwu market, the Company
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shoulders the historical mission of building the world's "Capital of Small Commodities" with high
quality and high level. The Company puts forward the development strategy of “taking the market
as the main business, taking the digital as the link, taking the platform as the support, building
an international trade comprehensive service provider”.
With the goal of building the world's "Capital of Small Commodities" with high quality and
high standards, focusing on the main market business, promoting various resource elements to
concentrate in the main business, opening up all links of the domestic and foreign trade supply
chain through vigorously developing digital trade, and continuously enhancing and upgrading
the core competitiveness to empower the small commodity industry chain and ecosystem,
promoting the transformation of the physical market into a global trade service platform for small,
medium and micro enterprises, and the transformation of the Company from a market manager
to a comprehensive trade service provider.
(iii) Business plan
√Applicable □Not applicable
2024 is the beginning year for Yiwu to build a model and rebuild brilliance, as well as a year
of tackling difficulties, a year of striving for progress. The Company has anchored its strategic
goal of becoming a "world-class international trade comprehensive service provider", taking it as
its responsibility to build the world's small commodity capital with high quality and level. Within
the framework of a unified national market, it coordinates the promotion of market innovation
and enterprise transformation and upgrading, breaks through traditional business physical
limitations through digital reform, and accelerates to become a global leading enterprise in
commerce and trade that empowers the mass trade of small commodities.
(1) Continuously enhancing market core competitiveness and building a "world trade center"
for small commodities
1. Accelerating the construction of a Global Digital Trade Center that integrates digital
service trade, innovative design, and brand selection, and fully carrying out business mode
planning, investment attraction, and customer retention. Accelerating the upgrading of traditional
markets and the construction of digital markets, updating and transforming existing software and
hardware facilities in the market, building two major application scenarios of digital services and
digital operation and maintenance, enhancing the experience of buyers and the sense of gain
for operators, while providing support for the digital transformation of the physical market and
the development of new digital economy business forms. In 2024, the Global Digital Trade
Center will clarify its market industry layout plan and complete the acquisition and retention of
over 4,000 investors and customers in the market sector; promote the lighting renovation of
International Trade City markets and create distinctive industry blocks.
2. Implementing actions to promote the prosperity and development of new business forms.
Promoting the digital modernization and upgrading of exhibitions, adhering to the branding and
internationalization of exhibitions, strengthen the linkage between online and on-site, domestic
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2023 Annual Report
and overseas exhibitions, enhancing the market attraction and driving effect of exhibitions, and
helping build a world exhibition characteristic city. In 2024, the Company will hold more than 50
domestic exhibitions; and accelerates the planning of a new exhibition center and forms a
conceptual planning plan.
(2) Continuously enhancing the driving force of digital empowerment and promoting the
digitization of the entire trade chain
1. Expanding and strengthening the Chinagoods platform. Comprehensively linking the
global Internet trading platform, integrating the digital performance services of "customs,
warehouse and finance", building a fourth party service platform, and promoting it to become a
platform of platform. In 2024, the online transaction volume of new services will exceed RMB 80
billion, and a total of 200 digital service applications will be launched.
2. Building a new ecosystem for digital trade performance. Focusing on the digital free trade
application of small commodities, the Company will accelerate the development of Caigoubao
and the Caigoubao industry belt, expand the digital application scenarios of the small commodity
industry chain, accelerate the promotion of the "market procurement+ B2B foreign trade
services" application scenarios, and create a new model of "consolidation of goods across China
and export at Yiwu".
3. Improving the digital financial service system. Deepening the cross-border RMB+ cross-
border foreign exchange payment settlement business system, explore cross-border e-CNY
settlement channels, accelerate the global layout of cross-border payment licenses, and build a
cross-border payment network that connects the world.
4. Continuously improving the Yiwu China Small Commodity Index. Deepening cooperation
with units such as People's Daily and People's Data, upgrading index models, exploiting data
value, optimizing indicator collection systems, and enhancing the analytical ability and
application value of the Yiwu China Small Commodity Index in global small commodity trade. In
2024, the Company will complete the reconstruction of the data system for the Yiwu China Small
Commodity Index, explore the derivation of more data products and services, release new
versions to the public, and expand the channels for index release globally.
(3) Continuously improving internal and external opening up to help build a dual circulation
strategic node
1. Deepening the plan for the Yiwu Market Project. Focusing on the countries and regions
along the "Belt and Road", the Company will make overall use of "overseas sub-markets,
overseas warehouses, overseas websites, Yiwu Selection overseas exhibition halls, and
overseas exhibitions", and deeply integrate into the world in terms of products, culture, standards,
and rules, so that small commodities of China can reach a larger market. In 2024, the Company
will focus on expansion in emerging markets such as the Middle East, Southeast Asia, South
America, and Africa, with a total of more than 20 projects including overseas sub-markets, FBC
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2023 Annual Report
overseas warehouses, Yiwu Selection overseas exhibition halls, overseas exhibitions, and
overseas websites.
2. Building high-quality open platforms. Giving full play to the policy advantages of the
Comprehensive Bonded Zone, strengthening exports, expanding imports, developing
transshipment, and continuously improving the level of domestic and foreign opening up;
Improving the digital third-party delivery platform for cross-border logistics, and helping stabilize
international trade chains and increase the international trade volume. In 2024, Yiwu
Comprehensive Bonded Zone will complete an import volume of over RMB 48 billion; The digital
third-party delivery platform for cross-border logistics services will have a shipment volume of
over 80,000 TEUs of goods.
(4) Continuously improving market capitalization management capabilities, achieving
sustainable development of the enterprise and maximizing the interests of all shareholders
On March 15, the China Securities Regulatory Commission issued the "Opinions on
Strengthening the Supervision of Listed Companies (Trial)", which proposed to strengthen the
main responsibility of market capitalization management of listed companies, guide listed
companies to closely monitor the market's evaluation of company value, actively improve
investor return ability and level, and other guiding opinions, clarifying unified regulatory
requirements.
On March 22, the Shanghai Stock Exchange issued the Initiative for SSE-Listed Companies
to Launch a Special Action for “Improving Quality and Efficiency and Valuing Returns”. It called
on listed companies to follow the principles of "voluntary, open, and pragmatic", carry out a
special action to improve the quality of operations and profitability, accelerate the development
of new productive forces, enhance the investment value of the Company, and sincerely repay
investors.
As a state-owned holding listed company, achieving high-quality development of China
Commodities City is crucial for the preservation and appreciation of state-owned assets, the
long-term development of the Company, and the interests of shareholders. Based on this, the
Company has formulated an action plan for market capitalization management and the 2024
Action Plan for “Improving Quality and Efficiency and Valuing Returns”.
Strategic goals: Focusing on the development goal of becoming a world-class international
trade comprehensive service provider, continuously improving business performance and
management level, continuously enhancing the core competitiveness of the enterprise,
continuously enhancing market capitalization management ability, achieving sustainable
development of the enterprise and maximizing the interests of all shareholders.
Basic principles: Adhering to the principles of openness, fairness, and impartiality, following
the requirements of true, accurate, complete, and timely information disclosure, managing the
market capitalization of the Company in accordance with the law and regulations, and
safeguarding the legitimate rights and interests of the Company and its shareholders.
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Specific measures:
1. Strengthening information disclosure and transparency
In the evaluation results of information disclosure work of listed companies on the Shanghai
Stock Exchange in 2022, the Company was rated A level. The Company will continue to make
efforts to provide comprehensive and transparent financial reports and market dynamics, and to
positively convey the Company's value in a reasonable and compliant manner; After the
Company's new official website is launched, a dedicated investor interaction column will be set
up, and designated platforms such as the Shanghai Stock Exchange E-Interaction will be used
to promptly respond to market concerns and investor inquiries. The Company will regularly hold
investor briefing meetings and carry out activities such as "Investors Entering Listed Companies"
to enhance investors' awareness and confidence in the Company.
2. Improving operational efficiency and profitability
Continuously consolidating the operation of core business operations and solidifying the
foundation; Gradually divesting inefficient and non-performing assets, and improve asset quality;
Actively exploring new business models and growth points, and forming competitive new growth
poles.
3. Promoting investment and mergers and acquisitions that meet industry needs
Actively promoting investments and mergers that align with the Company's long-term
development strategy, strengthening industrial layout, and further enhancing the Company's
influence in the global supply chain.
4. Strengthening investor relationship management
This includes transparent and timely disclosure of important information to investors, active
interaction and communication with investors and analysts, quick response to media reports and
proactive release of company news, while setting crisis response strategies and training
communication teams, and continuously improving and learning to enhance relationship
management capabilities.
5. Adhering to regulatory requirements to ensure compliance
Adhering to standardized operation; Establishing a sound internal control system and risk
management system, strengthening internal training, and strictly preventing improper behaviors
such as market manipulation and insider trading.
6. Improving long-term returns
The Company plans to continuously increase the proportion of profits distributed in cash
within three years from 2024; Through equity incentives and other means, the Company will
establish and improve the long-term incentive and constraint mechanism of the Company, and
achieve a win-win situation for the Company, employees, and shareholders.
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(iv) Potential risks
√Applicable □Not applicable
1. Market operation risk. Large-sized shopping malls, hypermarkets, warehouse stores and
e-commerce platforms are strong competitors in the commodities trading market. Large-sized
shopping malls offer products of reliable quality and well-known brands; hypermarkets or
warehouse stores supply diversified products at low prices; e-commerce platforms provide new
trading means and facilitate consumers. Purchasers or consumers may also choose to make
procurement or consumption via e-commerce platforms for convenience. Therefore, the
Company may compete with other forms of business. In addition, affected by the rising
specialized market, robust development of the industry market and rapid development of the
central and western regions, the Company may also face competition from other similar
specialized markets.
2. Risk from insufficient reserve of talents. With the acceleration of market transformation
and the expansion of the Company’s business, and with the expansion of experienced
international trade, warehousing and logistics, supply chain, overseas development, information
data, industrial investment, and business operations, the Company may face the risk of
insufficient reserves of professional talents and compound talents.
3. External uncertainty. International political conflicts have caused increased uncertainty in
international trade, and the development of global market trade is more complicated and severe
than before; new technologies are accelerating to breed new opportunities, and new trade
models and new formats are constantly emerging.
(v) Other
□Applicable √Not applicable
VII. Situation of the Company failing to disclose and explain the reasons in accordance
with the standards due to special reasons such as non-applicable standards or state
secrets and trade secrets.
□Applicable √Not applicable
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Section IV. Corporate governance
I. Description of corporate governance
√Applicable □Not applicable
During the reporting period, in strict accordance with the Company Law of the People's
Republic of China, the Securities Law of the People's Republic of China, the Code of
Governance for Listed Companies and the relevant laws and regulations of the China Securities
Regulatory Commission and the Shanghai Stock Exchange, the Company continuously
established and improved the relevant systems, endeavoured to improve the corporate
governance structure, standardized operations and law-abiding operations.There was no
difference between the actual situation of corporate governance structure and the normative
documents concerning the governance of listed companies
(I) Shareholders and general meetings of shareholders
The Company held shareholders' meetings in strict accordance with the Rules for
Shareholders' Meetings of Listed Companies to ensure that all shareholders of the Company
fully exercise their rights, especially the rights of minority shareholders. The Company usually
earnestly received visits and calls from shareholders to ensure that shareholders have the right
to know, participate and vote on major issues of the Company, so that shareholders truly enjoy
equal rights.
(II) Controlling shareholders and the listed company
The controlling shareholders of the Company exercised the rights of investors according to
law through the shareholders' meeting, and did not directly or indirectly interfere with the
Company's decision-making and business activities beyond the shareholders' meeting, so as to
achieve the "five independence" in terms of assets, personnel, finance, organization and
business, and the Company's board of directors, board of supervisors and internal organs can
operate independently. The controlling shareholder of the Company can strictly abide by the
promise made to the Company to avoid horizontal competition. When engaging in related party
transactions with controlling shareholders, the Company strictly followed relevant laws and
regulations to ensure fairness, impartiality, and fairness in related-party transactions.
(III) Directors and Board of Directors
The Company selected directors in strict accordance with the procedures stipulated in the
Articles of Association and held board meetings in strict accordance with the Code of
Governance for Listed Companies. All directors of the Company can conscientiously attend the
board of directors and shareholders' meetings, actively participate in training, and
conscientiously perform their duties as directors. The three independent directors can
conscientiously perform the duties and obligations entrusted by laws, regulations and the
Company's articles of association, express independent opinions and suggestions on important
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matters of the Company, and effectively protect the legitimate rights and interests of
shareholders.
(IV) Supervisors and Board of Supervisors
During the reporting period, the Company held five supervisory meetings, and the convening
procedures of each meeting complied with relevant laws and regulations. The Company's
supervisors can earnestly perform their duties, supervise the Company's major matters,
supervise the legality and compliance of the Company's directors and senior managers in
performing their duties, and safeguard the legitimate rights and interests of the Company and
shareholders.
(V) Information disclosure and investor relationship management
The Company disclosed relevant information in a true, accurate, complete and timely
manner in accordance with the "Administrative Measures for Information Disclosure of Listed
Companies". The public can learn about the Company's situation through media promotion,
telephone consultation, and other means. In addition to completing the disclosure of periodic
reports and temporary announcements mandatory by regulations, the Company actively carried
out voluntary information disclosure in compliance with regulations, so that investors can have
a continuous understanding of the business situation of concern, and truly protect the right of
shareholders to know.
Whether there are major differences between the corporate governance and the requirements
of the law, administrative laws and regulations, and relevant regulations of the China Securities
Regulatory Commission; if there are major differences, the reasons should be explained.
□Applicable √Not applicable
II. Specific measures for ensuring the independency of the Company's controlling
shareholder and actual controller in company assets, personnel, finance,
organization, business and others, and solutions taken after they influenced the
independency of the Company, the progress thereof and follow-up work plan
□Applicable √Not applicable
The situation where the controlling shareholder, actual controller, and other units under
their control engage in the same or similar business as the Company, as well as the impact of
significant changes in industry competition or industry competition on the Company, the
measures taken, progress made in resolving the issue, and subsequent resolution plans.
□Applicable √Not applicable
III. General meeting of shareholders
Designated
The disclosure
website on
Session of date of Resolution of
Date which the
meeting the resolution the meeting
resolution is
published
published
The First See the
Extraordinary resolution
January 13, 2023 www.sse.com.cn January 14, 2023
General Meeting notice for
of Shareholders in details
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2023 Annual Report
2023
See the
2022 Annual
resolution
General Meeting May 5, 2023 www.sse.com.cn May 6, 2023
notice for
of Shareholders
details
The Second
See the
Extraordinary
resolution
General Meeting July 6, 2023 www.sse.com.cn July 7, 2023
notice for
of Shareholders in
details
2023
The preferred shareholders whose voting rights had been restituted requested to an
extraordinary general meeting of shareholders
□Applicable √Not applicable
Statement on shareholders’ meetings
√Applicable □Not applicable
1. The 2023 First Extraordinary General Meeting of Shareholders reviewed and approved
the Proposal on the Redemption of the Remuneration of Certain Directors of the Company in
2021.
2. The 2022 Annual General Meeting of Shareholders reviewed and adopted the 2022
Annual Work Report of the Board of Directors, the 2022 Annual Work Report of the Board of
Supervisors, the 2022 Annual Report and Summary, the 2022 Annual Financial Report, the 2023
Annual Financial Budget Report, the 2022 Annual Profit Distribution Plan, the Proposal on the
Renewal of the Employment of the Accounting Firm, the Proposal on the Issuance of Various
Debt Financing Instruments in the Next 12 Months, and the Proposal on the Investment in and
Construction of Yiwu Global Digital Free Trade Center.
3. The Second Extraordinary Shareholders' Meeting in 2023 reviewed and approved the
Proposal on the Conditions for Issuing convertible corporate Bonds to Unspecified Objects, the
Proposal on Issuing Convertible Corporate Bonds to Unspecified Objects, the Proposal on the
Pre-plan for Issuing Convertible Corporate Bonds to Unspecified Objects, and the Proposal on
Feasibility Analysis Report on the Use of Funds Raised by Issuing Convertible Corporate Bonds
to Unspecified Objects, the Proposal on No Need to Prepare a Report on the Use of the Previous
Raised Funds, and the Proposal on Risk Warning, Filling Measures and Related Subject
Commitment for Diluting Spot Return of Convertible Corporate Bonds Issued to Unspecified
Objects, the Proposal on Shareholder Dividend Return Planning for the Next Three Years (2023-
2025), the Proposal on Formulating Rules for the Meeting of Holders of Convertible Corporate
Bonds of the Company, the Proposal on the Demonstration and Analysis Report on the Scheme
of Issuing Convertible Corporate Bonds to Unspecific Objects, the Proposal on Requesting the
General Meeting of Shareholders to Authorize the Board of Directors and its Authorized Persons
to Handle Matters Related to the Issuance of Bonds.
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IV. Directors, supervisors and senior management
(i) Changes in shareholding and remuneration of current and resigned directors, supervisors and senior executives during the reporting
period
√Applicable □Not applicable
Unit: share
The Total pre-tax
Number Number
amount remuneration Whether to
of shares of
of stock received from receive
held at shares Reasons
Start date End date of increase the Company remuneration
Name Title Sex Age the held at for
of tenure tenure or during the from related
beginning the end change
decrease reporting parties of the
of the of the
during period (RMB Company
year year
the year ten thousand)
ZHAO September
Chairman Male 57 34 34 50.76 No
Wenge 27, 2018
Vice Chairman
WANG March 8,
and General Male 51 30 30 50.76 No
Dong 2019
Manager
LI May 12,
Director Male 52 0 0 0 Yes
Chengqun 2014
ZHANG November
Director Male 50 0 0 0 Yes
Lang 8, 2022
Director and
Secretary of the December
XU Hang Male 50 30 30 43.15 No
Board of 12, 2017
Directors
ZHANG November
Director Male 44 0 0 0 Yes
Leping 8, 2022
MA Independent August 27,
Male 56 0 0 7.2 No
Shuzhong director 2019
HONG Independent May 22,
Male 58 0 0 7.2 No
Jianqiao director 2020
LUO Independent April 9,
Male 56 0 0 7.2 No
Jinming director 2021
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2023 Annual Report
Chairman of the
December
JIN Xiaojia Supervisory Male 36 0 0 0 Yes
16, 2016
Board
WANG October
Supervisor Male 51 0 0 0 Yes
Jinjian 26, 2020
WU March 10,
Supervisor Female 33 0 0 0 Yes
Menghua 2022
Employee December
FANG Min Male 39 0 0 31.65 No
supervisor 8, 2020
JIN Employee December
Male 46 0 0 18.93 No
Yongsheng supervisor 8, 2020
HUANG Vice general June 21,
Male 35 0 0 43.15 No
Haiyang manager 2022
ZHANG Vice general July 7, January 17,
Male 56 30 30 43.15 No
Qizhen manager 2017 2024
SHOU Vice general November
Male 50 0 0 43.15 No
Shengdi manager 4, 2021
Vice general June 21,
LI Xiaobao Male 47 0 0 43.15 No
manager 2022
GONG Vice general September
Male 44 20 20 43.15 No
Chenghao manager 29, 2021
YANG Vice general September
Male 41 20 20 43.15 No
Yang manager 29, 2021
HUANG Vice general March 9,
Female 41 0 0 35.96 No
Xiaoying manager 2023
ZHAO Financial May 12,
Female 51 35.01 35.01 43.15 No
Difang Manager 2024
Total / / / / / 199.01 199.01 / 554.86 /
Name Main working experience
ZHAO He used to be Vice Chairman and General Manager of the Company, and is currently Secretary of the Party Committee and Chairman
Wenge of the Company.
WANG He used to be a member and deputy director of the Party Committee of Yiwu SASAO, and deputy director (concurrently) of the
Dong management committee of the State-owned Assets Operation Center, and is currently the deputy secretary of the Company’s party
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2023 Annual Report
committee, vice chairman and general manager.
LI He used to be the deputy party secretary, vice chairman and general manager of Yiwu Small Commodity City Evergrande Development
Chengqun Co., Ltd., and is currently the party secretary, chairman and company director of Yiwu Market Development Group Co., Ltd.
ZHANG He used to be the party secretary, vice chairman and general manager of Yiwu International Land Port Group Co., Ltd., and is currently
Lang the deputy secretary, vice chairman, general manager and company director of Yiwu Market Development Group Co., Ltd.
He used to be general manager of the Company's securities legal affairs department, and representative of securities affairs of the
XU Hang
Company's, and is currently a director and the secretary of the board of the Company.
ZHANG He used to be the general manager of Hangtou Equity Investment Fund Management (Hangzhou) Co., Ltd., and is currently the deputy
Leping general manager and director of Zhejiang Zhecai Capital Management Co., Ltd.
MA He is currently the dean of the China Digital Trade Research Institute of Zhejiang University and concurrently serves as an independent
Shuzhong director of the Company.
HONG He is currently the dean of the Accounting Department of the School of Management, Fudan University, and concurrently serves as an
Jianqiao independent director of the Company.
LUO He's now a professor of Zhejiang University, and an independent director of the Company and Silan Microelectronics Co., Ltd.
Jinming
He used to be the accounting director of the Finance Department of Yiwu Communications Investment and Construction Group, and is
JIN Xiaojia
currently a supervisor and chairman of the supervisory committee of the Company.
WANG He used to be the deputy general manager of Yiwu China Commodity City Property Development Co., Ltd., and is currently the general
Jinjian manager and company supervisor of Yiwu China Commodity City Property Development Co., Ltd.
She used to be a supervisor of Yiwu Market Development Group Co., Ltd., concurrently a supervisor of Yiwu State-owned Capital
WU
Operation Co., Ltd. and a supervisor of Yiwu Industrial Investment Development Group Co., Ltd., and currently serves as a supervisor
Menghua
of the Company.
He used to be a business commissioner of the Company’s human resources department (party construction office), and currently serves
FANG Min as deputy general manager of the Company’s human resources department (party construction office) and employee supervisor of the
Company.
He used to be the business assistant of the Company's supervision and audit department, the accounting supervisor of the finance
JIN
department of the Company's Ocean Hotel, and the internal audit supervisor of the Company's legal audit department. He is currently
Yongsheng
the financial director of Yourworld International Conference Center and the Company's employee supervisor.
HUANG He used to be a member of the party committee and deputy general manager of Yiwu Urban Investment and Construction Group Co.,
Haiyang Ltd., and is currently a member of the party committee and deputy general manager of Zhejiang China Commodity City Group Co., Ltd.
ZHANG He used to be the general manager and marketing director of the Company's marketing department, and is currently a member of the
Qizhen party committee and deputy general manager of the Company.
SHOU He used to be a member of the Party Committee of Zhejiang Yiwu Municipal Bureau of Foreign Trade and Economic Cooperation, a
Shengdi member of the Party Committee and Deputy Director of Zhejiang Yiwu City Commerce Bureau, and is currently a member of the party
64 / 289
2023 Annual Report
committee and deputy general manager of the Company.
He used to be a member of the party committee and deputy general manager of Yiwu Urban Investment and Construction Group Co.,
LI Xiaobao
Ltd., and is currently a member of the party committee and deputy general manager of Zhejiang China Commodity City Group Co., Ltd.
He used to be the general manager of Yiwu China Commodity City Information Technology Co., Ltd., and the general manager of Yiwu
GONG
China Commodity City Supply Chain Management Co., Ltd., and is currently a member of the party committee and deputy general
Chenghao
manager of the Company.
YANG He used to be the general manager of Zhejiang Yiwu China Commodity City Imported Commodity Market Branch, the general manager
Yang of Zhejiang Yiwu China Commodity City Import and Export Co., Ltd., and is currently a deputy general manager of the Company.
She used to be the director of the Supervision Office of the People's Government of Fotang Town, the secretary of the Disciplinary
HUANG
Committee, and a member of the Party Committee. He is currently a member of the Party Committee and Deputy General Manager of
Xiaoying
the Company.
ZHAO She used to be the general manager of the Company's financial department and is currently the head of the Company's finance.
Difang
Statement on other matters
□Applicable √Not applicable
65 / 289
2023 Annual Report
(ii) Appointments of current and resigned directors, supervisors and senior executives
during the reporting period
1. Position in shareholder units
√Applicable □Not applicable
Start
Name of Positions held in End date
Name of shareholder unit date of
incumbent shareholder units of tenure
tenure
ZHAO Yiwu China Commodities City Chairman,
2019
Wenge Holdings Limited General Manager
WANG Yiwu China Commodities City
Director 2021
Dong Holdings Limited
LI Yiwu Market Development Group
Chairman 2014
Chengqun Co., Ltd.
Vice Chairman
ZHANG Yiwu Market Development Group
and General 2022
Lang Co., Ltd.
Manager
ZHANG Zhejiang Zhecai Capital Vice General
2022
Leping Management Co., Ltd. Manager
Yiwu China Commodities City Assigned Full-
JIN Xiaojia
Holdings Limited time Supervisor
WU Yiwu State-owned Capital Assigned Full-
Menghua Operation Co., Ltd. time Supervisor
Description
of the
position of
No
the
shareholder
unit
2. Serving in other units
√Applicable □Not applicable
Start
Name of Position held in End date
Names of other units date of
incumbent other units of tenure
tenure
HONG Independent
Shanghai Laiyifen Co., Ltd.
Jianqiao director
HONG Bailige Biotechnology (Shanghai) Independent
Jianqiao Co., Ltd. director
LUO Independent
Hangxiao Steel Structure Co., Ltd.
Jinming director
LUO Chengbang Ecological Environment Independent
Jinming Co., Ltd. director
LUO Ningbo Qiancheng Furniture Co., Independent
Jinming Ltd. (listed on NEEQ) director
WANG Yiwu China Commodities City Chairman, general
Jinjian Property Development Co., Ltd. manager
Deputy Director of
Yiwu Shuangjianghu Development
JIN Xiaojia Discipline
Group Co., Ltd.
Inspection Office
Description
of
employment No
in other
units
66 / 289
2023 Annual Report
(iii) Remuneration of directors, supervisors and senior management personnel
√Applicable □Not applicable
The remuneration of the Company’s remunerated directors,
supervisors and senior executives shall be reviewed by the
Decision-making procedures
remuneration and appraisal committee of the Company’s
for the remuneration of
board of directors and submitted to the board of directors
directors, supervisors and
for review and approval. The remuneration of directors and
senior executives
supervisors shall also be submitted to the general meeting
of shareholders for review and approval.
Whether a director recuses
himself from the board's Yes
discussion of his remuneration
Specific information on the
recommendations made by the
Compensation and
The relevant assessment for 2023 has not been completed
Assessment Committee or the
yet. After the assessment is completed, the salary and
Independent Director's Special
assessment committee will provide relevant opinions.
Meeting on the remuneration of
directors, supervisors, and
senior management personnel
The remuneration of independent directors is determined
according to the Independent Director Allowance System,
which is reviewed and formulated by the Board of Directors
and approved by the shareholders' meeting. The allowance
The basis for determining the
standard is RMB 6,000 (pre-tax) per month. The
remuneration of directors,
remuneration of the Company’s directors, supervisors and
supervisors and senior
senior management shall be reviewed and determined by
managers
the Board of Directors’ Compensation and Appraisal
Committee in conjunction with the assessment opinions and
results of the state-owned regulatory authority, and
submitted to the board of directors for deliberation.
Actual payment of The relevant assessment for 2023 has not been completed
remuneration for directors, yet, and the actual compensation will be determined after
supervisors and senior completing the assessment and fulfilling the relevant
management procedures.
The total remuneration actually The actual payment of remuneration will be determined
received by all directors, after completing the assessment and performing the
supervisors and senior relevant procedures. The current salary paid is the pre-paid
management at the end of the salary for the year 2023, with a total pre-tax amount of RMB
reporting period 5.5486 million.
(iv) Changes in directors, supervisors and senior officers of the Company
√Applicable □Not applicable
Name Title Change Reasons for change
HUANG Xiaoying Vice general Hiring Being hired by the
manager Board of Directors
(v) Explanation of punishments by securities regulatory agencies in the past three years
□Applicable √Not applicable
(vi) Other
□Applicable √Not applicable
67 / 289
2023 Annual Report
V. Description of the meetings of the Board of Directors held during the reporting period
Session of
Date Resolution of the meeting
meeting
Reviewed and approved
The 7th Meeting
March 9, 1. Proposal on Appointment of Deputy General Manager
of the 9th Board
2023 2. Proposal on the Cancellation of the Company's
of Directors
Purchasing Service Branch
Reviewed and approved
1. 2022 Annual Work Report of the Board of Directors
2. 2022 Annual Report and Summary
3. 2022 Annual Financial Settlement Report
4. 2023 Annual Financial Budget Report
5. 2022 Annual Profit Distribution Plan
6. Proposal on the Renewal of the Employment of the
Accounting Firm
7. 2022 Annual Internal Control Evaluation Report
8. 2022 Annual ESG Report
9. Proposal on Applying for Credit Granting from Relevant
The 8th meeting Financial Institutions
April 10,
of the 9th Board (8) Proposal on Issuing Debt Instruments within the Coming
2023
of Directors 12 Months
11. Proposal on Authorizing the Chairman to Use Idle
Funds for Entrusted Wealth Management
12. Proposal on the Investment in and Construction of Yiwu
Global Digital Free Trade Center
13. First Quarter Report for 2023
14. Proposal on Requesting the Convening of the 2022
Annual General Meeting of Shareholders
15. 2022 Annual Internal Control Audit Report
16. 2022 Annual Work Report of Independent Directors
17. 2022 Annual Performance Report of the Audit
Committee of the Board of Directors
The 9th Meeting Reviewed and approved
April 24,
of the 9th Board 1. Proposal on Foreign Investment
2023
of Directors
The 10th Meeting Reviewed and approved
May 11,
of the 9th Board 1. Proposal on Entrusted Management of Project
2023
of Directors Construction and Related Transactions
Reviewed and approved
1. Proposal on the Conditions for Issuing Convertible
Corporate Bonds to Unspecific Objects
2. Proposal on Issuing Convertible Corporate Bonds to
Unspecific Objects
3. Proposal on the Pre-plan for Issuing Convertible
Corporate Bonds to Unspecified Objects
The 11th Meeting 4. Proposal on Feasibility Analysis Report on the Use of
June 19,
of the 9th Board Funds Raised by Issuing Convertible Corporate Bonds to
2023
of Directors Unspecific Objects
5. Proposal on No Need to Prepare a Report on the Use of
Previous Raised Funds
6. Proposal on Risk Warning, Filling Measures and Related
Entity Commitment for Diluting Spot Returns of Convertible
Corporate Bonds Issued to Unspecific Objects
7. Proposal on Shareholder Dividend Return Planning for
the Next Three Years (2023-2025)
68 / 289
2023 Annual Report
8. Proposal on Formulating Rules for the Meeting of Holders
of Convertible Corporate Bonds of the Company
9. Proposal on the Demonstration and Analysis Report on
the Scheme of Issuing Convertible Corporate Bonds to
Unspecific Objects
10. Proposal on Requesting the General Meeting of
Shareholders to Authorize the Board of Directors and its
Authorized Persons to Handle Matters Related to the
Issuance of Bonds
11. Proposal on Convening the Second Extraordinary
General Meeting of Shareholders in 2023
Reviewed and approved
The 12th Meeting 1. Semi-annual Report and Summary for 2023
August 17,
of the 9th Board 2. Proposal on Adjusting the Repurchase Price of
2023
of Directors Restricted Stocks and Repurchasing and Cancelling Some
Restricted Stocks
Reviewed and approved
1. Third Quarter Report for 2023
2. Proposal on Applying for Development Loans from
Financial Institutions for Global Digital Trade Center
Projects
The 13th meeting October 19,
3. Proposal on the Satisfaction of the Unlocking Conditions
of the 9th session 2023
for the First Unlocking Period of the Reserved Grant Part of
the 2020 Restricted Stock Incentive Plan
4. Proposal on Holding Subsidiary Yiwu China Small
Commodities City Exhibition Co., Ltd. to Apply for Being
Listed on NEEQ
Reviewed and approved
The 14th Meeting
December 1. Proposal on the Satisfaction of the Unlocking Conditions
of the 9th Board
28, 2023 for the Second Unlocking Period of the First Grant Part of
of Directors
the 2020 Restricted Stock Incentive Plan
VI. Duties performed by directors
(i) Board of Directors and Shareholders Meetings attended by Directors
Participat
ion in
general
Participation in Board of Directors meeting
of
sharehol
ders
Failur
Indepen
Directo e to
dent The
r atten
director Numb number
Name Numb d the
or not er of Number Number of of
er of Absenc meeti
board of participatio sharehol
delega e ng in
meeti attendan ns by ders
tes Freque perso
ngs ces in communic attending
attend ncy n
this person ation the
ed twice
year general
in a
meeting
row
or not
ZHAO
No 8 8 6 0 0 No 1
Wenge
WANG No 8 8 6 0 0 No 3
69 / 289
2023 Annual Report
Dong
LI
Cheng No 8 8 6 0 0 No 0
qun
Zhang
No 8 8 6 0 0 No 0
Lang
XU
No 8 8 6 0 0 No 3
Hang
ZHAN
G No 8 8 6 0 0 No 2
Leping
MA
Shuzh Yes 8 8 6 0 0 No 1
ong
HONG
Jianqia Yes 8 8 6 0 0 No 2
o
LUO
Jinmin Yes 8 8 6 0 0 No 1
g
Explanation of not attending the board meeting in person for two consecutive times
□Applicable √Not applicable
Number of meetings of the Board of Directors 8
held during the year
Including: the number of on-site meetings 2
Number of meetings held by communication 6
Number of meetings held on site combined 0
with communication methods
(ii) Objections raised by directors on company-related matters
□Applicable √Not applicable
(iii) Other
□Applicable √Not applicable
VII. Committees under the Board of Directors
√Applicable □Not applicable
(i) Members of Committees under the Board of Directors
Category of committees Member name
Audit committee Hong Jianqiao Ma Shuzhong Zhang Lang
Nomination Committee Ma Shuzhong Luo Jinming Xu Hang
Compensation and
Luo Jinming Hong Jianqiao Li Chengqun
Appraisal Committee
Strategy Committee ZHAO Wenge WANG Dong Ma Shuzhong
(ii) 8 meetings were held by these committees during the report period
Other
Important comments things on
Date Contents of the meeting
and suggestions duty
fulfillment
The 2nd Meeting of the Audit Committee of the 9th
January 9, Approved the 2022
Board of Directors reviewed and approved the 2022
2023 Integrated Audit Plan
Integrated Audit Plan
70 / 289
2023 Annual Report
Agreed to nominate Ms.
The 2nd Meeting of the Nomination Committee of
March 9, Huang Xiaoying as the
the 9th Board of Directors approved the Proposal
2023 candidate for Vice
on Nominating Vice General Managers
General Manager
Approved the
The 3rd Meeting of the Audit Committee of the Ninth
preliminary
March 10, Board of Directors approved the Preliminary
communication on the
2023 Communication on the Results of the 2022
results of the 2022
Integrated Audit
integrated audit
Approved the 2022
Financial Report, 2022
Internal Control
The 4th Meeting of the Audit Committee of the 9th
Evaluation Report,
Board of Directors reviewed and approved the 2022
2022 Internal Control
Financial Report, 2022 Internal Control Evaluation
April 10, Audit Report, 2022
Report, 2022 Internal Control Audit Report, 2022
2023 Performance Report of
Performance Report of the Audit Committee, and
the Audit Committee,
Proposal on the Renewal of the Employment of the
and Proposal on the
Accounting Firm
Renewal of the
Employment of the
Accounting Firm
Approved the proposal
The 5th Meeting of the Audit Committee of the 9th on project construction
May 5th, Board of Directors approved the Proposal on commission
2023 Project Construction Entrustment Management and management and
Related Party Transactions related party
transactions
The 6th Meeting of the Audit Committee of the 9th Approved the Internal
August 17, Board of Directors reviewed and approved the Control Audit Work
2023 Internal Control Audit Work Report for the First Half Report for the First Half
of 2023 of 2023
The 2nd meeting of the 9th Board of Directors Approved the
Remuneration and Assessment Committee satisfaction of the
October reviewed and approved the Proposal on the unlocking conditions for
19, 2023 Satisfaction of the Unlocking Conditions for the First the first unlocking
Unlocking Period of the Reserved Grant Part of the period of the reserved
2020 Restricted Stock Incentive Plan grant part.
The 3rd meeting of the Compensation and Approved the
Assessment Committee of the 9th Board of satisfaction of the
December Directors reviewed and approved the Proposal on unlocking conditions for
28, 2023 the Satisfaction of the Unlocking Conditions for the the second unlocking
Second Unlocking Period of the First Grant Part of period of the first grant
the 2020 Restricted Stock Incentive Plan part.
(iii) The specifics of objection
□Applicable √Not applicable
VIII. Explanation of the Company risk that the board of supervisors founds
□Applicable √Not applicable
The Board of Supervisors has no objection to the supervision matters during the reporting
period.
IX. Employees of the parent company and major subsidiaries
(i) Employees
Number of employees in the parent company 2,051
71 / 289
2023 Annual Report
Number of employees in major subsidiaries 1,410
Total number of employees 3,461
Number of retired employees for whom the
parent company and major subsidiaries have
to bear expenses
Professional composition
Professional composition category Professional composition
Production staff 1,171
Salesperson 95
Technical staff 1,320
Financial officer 144
Administration staff 383
Security personnel 348
Total 3,461
Education level
Education level category Quantity (people)
Postgraduate 110
Bachelor's degree 1,598
Junior college education or below 1,753
Total 3,461
(ii) Salary policy
√Applicable □Not applicable
I. Principles of remuneration system
(1) Combination of duties, powers, responsibilities, and benefits;
(2) It shall be fair internally and competitive externally;
(3) Distribution according to work, priority to efficiency, fairness and sustainable development;
(4) Adoption of the distribution form of "salary determined by post, grade determined by ability,
and award determined by performance" to reasonably widen the income gap.
2. Basis of salary system
Position importance, performance contribution, ability, work attitude and spirit of cooperation.
(1) As far as the overall level is concerned, the Company determines the remuneration based
on the current economic benefits and sustainable development.
(2) The Company's salary system includes two different types.
a. The annual salary system is applicable to managers and deputy managers of the
Company's headquarters, as well as members of the management team of branches and
subsidiaries;
b. The structured wage system is applicable to employees who have signed labor contracts
for two years and above. Including grassroots management personnel, functional department
personnel, engineering management personnel, logistics management personnel and
equipment maintenance personnel.
(3) The remuneration of specially hired staff, staff waiting for duty, retired staff and timing
piecework staff shall be stipulated separately.
(4) The Company's employee income generally includes four parts: job skill wages, bonuses,
benefits, and allowances.
72 / 289
2023 Annual Report
(iii) Training program
√Applicable □Not applicable
According to the different training organizations, the Company's employee training can be
divided into: OJT training, company internal training, expatriate training and online training.
1. OJT (On the Job Training). The training of ordinary employees and new employees by
leaders of various departments, experienced or skilled employees belongs to OJT training,
including the Company's administrative management series training, business management
series training, engineering technology series training, and security logistics series training.
2. Enterprise internal training. According to the Company's training needs, the Company
organizes internal trainers or invites external training institutions to tailor training courses for
the Company, allowing employees to receive systematic training, including corporate culture,
company organizational structure and rules and regulations, industry status and prospects, and
professional ethics, etiquette, code of conduct, language, computer skills, etc.
3. Expatriate training In accordance with the needs of the Company's business
development and job skills, the Company organizes personnel in specific positions to go out to
participate in the training of training institutions, including financial securities series training,
human resource management training, and enterprise management series training.
4. Network training It is an online training for employees through the application of
information technology and Internet technology, and different training content is set for different
positions, so that training and learning are independent and personalized, and the use of
resources is maximized.
(iv) Labor outsourcing
√Applicable □Not applicable
Total number of working hours of labor
1,552.53 months
outsourcing
Total remuneration paid for labor outsourcing RMB 11.2121 million
X. Plan for profit distribution or capital reserve into stock capital
(i) Formulation, implementation or adjustment of cash dividend policy
√Applicable □Not applicable
According to the China Securities Regulatory Commission's Notice on Further
Implementation of Cash Dividends by Listed Companies (ZJF [2012] 37) and Zhejiang Securities
Regulatory Bureau Notice on Forwarding and Further Implementation of Listed Companies'
Cash Dividends (ZZJSSZ [2012] 138) Regulations, the Company held the 24th meeting of the
sixth board of directors on August 15, 2012, and reviewed and approved the Proposal on
Amending the Articles of Association, which revised the Company’s profit distribution policy and
adjustment decision-making mechanism. The second extraordinary general meeting of
shareholders held on September 3, 2012 was deliberated and approved. In order to further
implement the new requirements of the China Securities Regulatory Commission's Guidelines
73 / 289
2023 Annual Report
for the Supervision of Listed Companies No. 3-Cash Dividend Distribution of Listed Companies
(November 30, 2013) and the Guidelines for Cash Dividend Distribution of Listed Companies of
the Shanghai Stock Exchange, the forty-fourth meeting of the sixth board of directors of the
Company held on April 17, 2014 reviewed and approved the Proposal on Amending the Profit
Distribution Clauses in the Articles of Association of the Company. The Company further clarified
the basic principles, distribution forms, specific policies, decision-making mechanisms and
procedures of the Company's profit distribution, which were reviewed and approved by the 2013
Annual General Meeting of Shareholders held on May 12, 2014. The nineteenth meeting of the
seventh board of directors of the Company held on December 25, 2015 reviewed and approved
the Plan of Zhejiang China Commodity City Group Co., Ltd. on Shareholder Dividend Return
Plan. The 11th Meeting of the 9th Board of Directors held by the Company on June 19, 2023
reviewed and approved the Proposal on Shareholder Dividend Return Planning for the Next
Three Years (2023-2025).
The 2022 Annual General Meeting of Shareholders of the Company held on May 5, 2023
approved the profit distribution plan for the year 2022. Based on the total share capital of
5,486,074,176 shares, a cash dividend of RMB 0.65 (including tax) would be distributed for every
10 shares, with a total distribution of RMB 356,594,821.44. The Board of Directors of the
Company published the 2022 Annual Equity Distribution Implementation Announcement on the
website of the Shanghai Stock Exchange, as well as in the China Securities Journal, Shanghai
Securities Journal, and Securities Times on May 16, 2023. The profit distribution was completed
on May 24, 2023. The formulation and implementation of the Company's profit distribution plan
complied with the requirements of the Company's Articles of Association and the resolutions of
the shareholders' meeting. The dividend standards and proportions were clear and specific, and
the relevant decision-making procedures and mechanisms were complete. The Company
listened to the opinions and demands of small and medium-sized shareholders, and profit
distribution took into account factors such as the Company's industry characteristics,
development stage, profitability level, and funding needs. It also took into account the
requirements of investors sharing the achievements of the Company's development and growth,
and achieving reasonable investment returns.
(ii) Special explanation of cash dividend policy
√Applicable □Not applicable
Whether it complies with the provisions of the Company's articles of √Yes □No
association or the requirements of the resolution of the general meeting
of shareholders
Whether the dividend standard and ratio are clear and specific √Yes □No
Whether the relevant decision-making procedures and mechanisms are √Yes □No
complete
Whether the independent directors performed their duties and played √Yes □No
their due role
Whether minority shareholders have the opportunity to fully express √Yes □No
their opinions and demands, and whether their legitimate rights and
interests have been fully protected
74 / 289
2023 Annual Report
(iii) During the reporting period, if the parent company is profitable and the profit
available for distribution to shareholders is positive, but does not propose a plan for
the distribution of cash profits, the Company shall disclose in details the reason, the
application and using plan of the undistributed profits.
□Applicable √Not applicable
(iv) Plan for profit distribution and conversion of capital reserves into share capital
during the reporting period
√Applicable □Not applicable
Unit: RMB
Number of bonus shares for every 10 shares 0
Dividend payout for every 10 shares (tax
2.00
inclusive)
Number of shares converted from the
capitalization of capital reserve for every 10 0
shares
Cash dividend amount (tax included) 1,096,866,835.20
Net profit attributable to common
shareholders of listed companies in the 2,676,182,133.26
annual consolidated statements of dividends
Percentage of net profit attributable to
common shareholders of listed companies in 40.99
the consolidated statements (%)
The circumstance when repurchase of
0
shares in cash is included in cash dividends
Total dividend amount (tax included) 1,096,866,835.20
The ratio of the total dividend amount to the
net profit attributable to ordinary
40.99
shareholders of the Listed Company in the
consolidated statement (%)
XI. Incentive stock option plans, employee stock ownership plans and other employee
incentives granted by the Company and the impact thereof
(i) Relevant incentive matters have been disclosed in the temporary announcement
and there is no progress or change in subsequent implementation.
√Applicable □Not applicable
Overview of the matter Query website
On October 23, 2020, the twenty-third meeting of the eighth
session of the Company's board of directors passed the Proposal
For details, please refer
on the Company's 2020 Restricted Stock Incentive Plan (Draft)
to the Company's
and Its Summary, Proposal on the Measures for the Evaluation
announcement on the
and Management of the Implementation of the Company's 2020
website of the Shanghai
Restricted Stock Incentive Plan, Proposal on Requesting the
Stock Exchange
General Meeting of Shareholders to Authorize the Board of
(www.sse.com.cn) on
Directors to Handle Issues Related to Equity Incentives. The
October 24, 2020.
independent directors of the Company issued relevant
independent opinions.
75 / 289
2023 Annual Report
On October 23, 2020, the sixth meeting of the eighth board
of supervisors of the Company deliberated and approved the
Proposal on the Company's 2020 Restricted Stock Incentive Plan
(Draft) and its Summary, The Proposal on the Implementation
Evaluation and Management Measures for the Company's 2020
Restricted Stock Incentive Plan, Proposal on Verification of the
List of Incentive Objects of the Company's 2020 Restricted Stock
Incentive Plan. The board of supervisors issued relevant
verification opinions.
Independent financial consultants, lawyers and other
intermediary agencies issued corresponding opinions.
For details, please refer
On November 18, 2020, it received the Approval for
to the Company's
Approving Zhejiang China Commodity City Group Co., Ltd. to
announcement on the
implement the 2020 restricted stock incentive plan issued by the
website of the Shanghai
State-owned Assets Supervision and Administration Office of the
Stock Exchange
People's Government of Yiwu City, forwarded by Yiwu China
(www.sse.com.cn) on
Commodity City Holdings Ltd. (Ref: Yiwu SASAO〔2020〕51).
November 20, 2020.
From November 20, 2020 to November 29, 2020, the list of
incentive objects and positions of the 2020 restricted stock
For details, please refer
incentive plan were internally publicized. Within the time limit of
to the Company's
the publicity, the board of supervisors of the Company did not
announcement on the
receive any objection from any organization or individual or bad
website of the Shanghai
feedback, without feedback record. On November 30, 2020, the
Stock Exchange
Board of Supervisors of the Company issued the Examination
(www.sse.com.cn) on
Opinions and Public Statement of the Board of Supervisors on the
December 1, 2020.
List of Incentive Objects of the Company's 2020 Restricted Stock
Incentive Plan.
On December 10, 2020, the Company's 2020 Fifth
Provisional General Meeting of Shareholders deliberated and For details, please refer
approved the “Proposal on the ‘Company's 2020 Restricted Stock to the Company's
Incentive Plan (Draft)’ and Summary”, the “Proposal on the announcement on the
“Measures of Assessment and Management of Implementation of website of the Shanghai
‘Company’s 2020 Restricted Stock Incentive Plan’”, and the Stock Exchange
“Proposal on Requesting the General Meeting of Shareholders to (www.sse.com.cn) on
Authorize the Board of Directors to Deal with Equity Incentive December 11, 2020.
Related Matters”, and disclosed the “Self-examination Report on
76 / 289
2023 Annual Report
the Trades of Company’s Stocks by Insiders of Company’s 2020
Restricted Stock Incentive Plan”.
On December 11, 2020, the twenty-sixth meeting of the
eighth session of the Company's board of directors passed the
Proposal on Granting Restricted Shares to Incentive Objects for
the First Time. The independent directors of the Company issued For details, please refer
relevant independent opinions. to the Company's
On December 11, 2020, the seventh meeting of the announcement on the
Company's eighth board of supervisors passed the Proposal on website of the Shanghai
Granting Restricted Stocks to Incentive Objects for the First Time. Stock Exchange
The Board of Supervisors issued the Verification Opinions of the (www.sse.com.cn) on
Board of Supervisors on Matters Related to the First Grant of the December 12, 2020.
Company's 2020 Restricted Stock Incentive Plan.
Independent financial consultants, lawyers and other
intermediary agencies issued corresponding opinions.
For details, please refer
On January 15, 2021, the Company received the Securities to the Company's
Change Registration Certificate issued by the Shanghai Branch announcement on the
of China Securities Depository and Clearing Co., Ltd., and the website of the Shanghai
Company completed the registration of the first grant of restricted Stock Exchange
stocks to incentive objects. (www.sse.com.cn) on
January 19, 2021.
On August 9, 2021, the 35th Meeting of the 8th Board of
Directors of the Company passed the "Proposal on Reserved
Granting Restricted Stocks to Incentive Objects", "On Adjusting
the Repurchase Price of Restricted Stocks and Repurchasing and
Cancelling Some Restricted Stocks" 's proposal". The For details, please refer
independent directors of the Company issued relevant to the Company's
independent opinions. announcement on the
On August 9, 2021, the 9th Meeting of the 8th Boarder of website of the Shanghai
Supervisors of the Company passed the "Proposal on Reserved Stock Exchange
Granting Restricted Stocks to Incentive Objects", "Proposal on (www.sse.com.cn) on
Adjusting the Repurchase Price of Restricted Stocks and August 11, 2021.
Repurchasing and Cancelling Some Restricted Stocks" ". The
Board of Supervisors issued the Verification Opinions of the
Board of Supervisors on Matters Related to the Company's
Reserved Grant of the Restricted Stock Incentive Plan in 2020.
77 / 289
2023 Annual Report
For details, please refer
On November 4, 2021, the Company received the Securities to the Company's
Change Registration Certificate issued by the Shanghai Branch announcement on the
of China Securities Depository and Clearing Co., Ltd., and the website of the Shanghai
Company completed the registration of the reserved grant of Stock Exchange
restricted stocks to incentive objects. (www.sse.com.cn) on
November 6, 2021.
On November 17, 2021, the Company applied to China
Securities Depository and Clearing Co., Ltd. Shanghai Branch for For details, please refer
repurchase and cancellation of restricted stocks that have been to the Company's
granted but not yet lifted by some resigned employees. On announcement on the
November 30, 2021, the Company received the "Securities website of the Shanghai
Change Registration Certificate" issued by China Securities Stock Exchange
Depository and Clearing Co., Ltd. Shanghai Branch, and the (www.sse.com.cn) on
Company has completed the registration of the restricted stock November 26, 2021.
repurchase and cancellation.
On July 19, 2022, the 51st Meeting of the 8th Board of
Directors of the Company reviewed and approved the "Proposal
For details, please refer
on Adjusting the Repurchase Price of Restricted Stocks and the
to the Company's
Repurchase and Cancellation of Some Restricted Stocks", and
announcement on the
the independent directors of the Company issued a statement on
website of the Shanghai
this Independent opinion expressing consent. On July 19, 2022,
Stock Exchange
the 14th meeting of the 8th Supervisory Committee of the
(www.sse.com.cn) on
Company passed the "Proposal on Adjusting the Repurchase
July 20, 2022.
Price of Restricted Shares and Repurchasing and Cancelling
Some Restricted Shares".
On October 18, 2022, the Company applied to China
Securities Depository and Clearing Co., Ltd. Shanghai Branch for For details, please refer
repurchase and cancellation of restricted stocks that have been to the Company's
granted but not yet lifted by some resigned employees. On announcement on the
October 21, 2022, the Company received the "Securities Change website of the Shanghai
Registration Certificate" issued by China Securities Depository Stock Exchange
and Clearing Co., Ltd. Shanghai Branch, and the Company has (www.sse.com.cn) on
completed the registration of the restricted stock repurchase and October 19, 2022.
cancellation.
On December 28, 2022, the 6th Meeting of the 9th Board of For details, please refer
Directors of the Company passed the "Proposal on the to the Company's
Satisfaction of the Unlocking Conditions for the First Unlocking announcement on the
78 / 289
2023 Annual Report
Period of the First Grant Part of the 2020 Restricted Stock website of the Shanghai
Incentive Plan ". The independent directors of the Company have Stock Exchange
issued independent opinions expressing agreement. (www.sse.com.cn) on
On December 28, 2022, the 2nd Meeting of the Company's 9th December 29, 2022.
Board of Supervisors passed the "Proposal on the Satisfaction of
the Unlocking Conditions for the First Unlocking Period of the First
Grant Part of the 2020 Restricted Stock Incentive Plan". The
Board of Supervisors issued the "Verification Opinion on the
Satisfaction of the Unlocking Conditions for the First Unlocking
Period for the First Grant Part of the 2020 Restricted Stock
Incentive Plan".
On August 17, 2023, the 12th Meeting of the 9th Board of
For details, please refer
Directors of the Company approved the Proposal on Adjusting the
to the announcement
Repurchase Price of Restricted Stocks and Repurchasing and
disclosed by the
Cancelling Some Restricted Stocks. The independent directors of
Company on the
the Company expressed their independent opinion of agreement
Shanghai Stock
on this. On August 17, 2023, the 5th Meeting of the 9th Board of
Exchange website
Supervisors of the Company approved the Proposal on Adjusting
(www.sse.com.cn) on
the Repurchase Price of Restricted Stocks and Repurchasing and
August 18, 2023.
Cancelling Some Restricted Stocks.
On October 19, 2023, the 13th Meeting of the 9th Board of
Directors of the Company approved the Proposal on the
Satisfaction of the Unlocking Conditions for the First Unlocking
For details, please refer
Period of the Reserved Grant Part of the 2020 Restricted Stock
to the announcement
Incentive Plan. The independent directors of the Company have
disclosed by the
issued independent opinions expressing agreement.
Company on the
On October 19, 2023, the 6th Meeting of the 9th Board of
Shanghai Stock
Supervisors of the Company approved the Proposal on the
Exchange website
Satisfaction of the Unlocking Conditions for the First Unlocking
(www.sse.com.cn) on
Period of the Reserved Grant Part of the 2020 Restricted Stock
October 20, 2023.
Incentive Plan. The Board of Supervisors issued Verification
Opinion on the Satisfaction of the Unlocking Conditions for the
First Unlocking Period of the Reserved Grant Part of the 2020
Restricted Stock Incentive Plan.
On November 8, 2023, the Company applied to Shanghai For details, please refer
Branch of China Securities Depository and Clearing Corporation to the announcement
for the repurchase and cancellation of restricted stocks that had disclosed by the
been granted to some resigned employees but still under lock-up. Company on the
79 / 289
2023 Annual Report
On November 20, 2023, the Company received a Securities Shanghai Stock
Change Registration Certificate issued by Shanghai Branch of Exchange website
China Securities Depository and Clearing Corporation, and (www.sse.com.cn) on
completed the registration for the repurchase and cancellation of October 19, 2023.
restricted stocks.
On December 28, 2023, the 14th Meeting of the 9th Board of
Directors of the Company approved the Proposal on the
For details, please refer
Satisfaction of the Unlocking Conditions for the Second Unlocking
to the announcement
Period of the First Grant Part of the 2020 Restricted Stock
disclosed by the
Incentive Plan. On December 28, 2023, the 7th Meeting of the 9th
Company on the
Board of Supervisors of the Company approved the Proposal on
Shanghai Stock
the Satisfaction of the Unlocking Conditions for the Second
Exchange website
Unlocking Period of the First Grant Part of the 2020 Restricted
(www.sse.com.cn) on
Stock Incentive Plan. The Board of Supervisors issued
December 29, 2023.
Verification Opinion on the Satisfaction of the Unlocking
Conditions for the Second Unlocking Period of the First Grant Part
of the 2020 Restricted Stock Incentive Plan.
(ii) Incentives that have not been disclosed in the temporary announcements or
had further progresses
Incentive stock option
□Applicable √Not applicable
Other statements
□Applicable √Not applicable
Employee stock ownership plans
□Applicable √Not applicable
Other incentives
□Applicable √Not applicable
(iii) Equity incentives granted to directors and senior executives during the
reporting period
□Applicable √Not applicable
(iv) The evaluation mechanism for senior managers during the reporting period,
as well as the establishment and implementation of incentive mechanisms
√Applicable □Not applicable
In terms of the remuneration evaluation of senior management personnel, performance
assessment results were based on the performance evaluation methods for enterprise leaders,
the Company's operating conditions, and relevant assessment indicators.
The remuneration was determined by the performance assessment results.
80 / 289
2023 Annual Report
XII. Construction and implementation of internal control system during the reporting
period
√Applicable □Not applicable
Please refer to the 2023 Internal Control Evaluation Report disclosed by the Company on the
Shanghai Stock Exchange website for details.
Explanation of major deficiencies in internal control during the reporting period
□Applicable √Not applicable
XIII. Management and control of subsidiaries during the reporting period
√Applicable □Not applicable
Please refer to the 2023 Internal Control Evaluation Report disclosed by the Company on the
Shanghai Stock Exchange website for details.
XIV. Explanation of the internal control audit report
√Applicable □Not applicable
Ernst&Young Hua Ming Certified Public Accountants (Special General Partnership) was
hired by the Company to conduct an audit of the effectiveness of internal control over the
Company's financial reports for the year 2023 and issued an internal control audit report with
standard unqualified opinion. It is believed that the Company has maintained effective internal
control over financial reporting in all material aspects as of December 31, 2023, in accordance
with the Basic Norms for Enterprise Internal Control and relevant regulations. Please refer to the
website of Shanghai Stock Exchange (www.sse.com.cn) for details of the "Internal Control Audit
Report".
Disclosure of internal control audit report: Yes
Opinion type of internal control audit report: standard unqualified opinion
XV. Self-examination and rectification of the Listed Company's governance special
actions
NA
XVI. Other
□Applicable √Not applicable
81 / 289
2023 Annual Report
Section V. Environmental and Social Responsibilities
I. Environmental issues
Whether the Company established relevant mechanisms No
for environmental protection
Investment in environmental protection funds during the NA
reporting period (unit: RMB 10,000)
(i) Description of the environmental protection status of the Company and its main
subsidiaries that are key pollutant discharging units announced by the environmental
protection authorities
□Applicable √Not applicable
(ii) Description of the environmental protection status of the companies other than the
key pollutant discharging units
□Applicable √Not applicable
(iii) Relevant information that is conducive to protecting ecology, preventing pollution,
and fulfilling environmental responsibilities
□Applicable √Not applicable
(iv) Measures taken to reduce their carbon emissions during the reporting period and the
effect
Whether the Company took carbon reduction measures Yes
Reduction of carbon dioxide equivalent emissions (unit: tons) 30,000
Types of carbon reduction measures (such as using clean energy
to generate electricity, using carbon reduction technologies in the Clean energy power
production process, developing and producing new products that generation
help reduce carbon emissions, etc.)
Specific instructions
□Applicable √Not applicable
II. Social responsibility
(i) Whether to disclose social responsibility report, sustainable development report or
ESG report separately
√Applicable □Not applicable
For details, please refer to the 2023 Annual ESG Report disclosed by the Company on the
Shanghai Stock Exchange website
(ii) Social responsibility
□Applicable √Not applicable
Specific instructions
□Applicable √Not applicable
III. Status of consolidation and expansion of the results of poverty alleviation, rural
revitalization and other specific work
□Applicable √Not applicable
82 / 289
2023 Annual Report
Specific instructions
□Applicable √Not applicable
83 / 289
2023 Annual Report
Section VI. Significant Matters
I. Fulfillment of commitments
(i) Commitments made by the actual controller, shareholders, affiliates and acquirer of
the Company, the Company itself and other related parties during the reporting
period or as of the reporting period
□Applicable √Not applicable
(ii) If there is a profit forecast for the Company’s assets or projects, and the reporting
period is still in the profit forecast period, the Company will explain whether the
assets or projects have reached the original profit forecast and the reason
.
□Reached □Not reached √Not applicable
(iii) Completion of performance commitments and its impact on the impairment test
of goodwill
□Applicable √Not applicable
II. Non-operating capital occupation by controlling shareholders and other related
parties during the reporting period
□Applicable √Not applicable
III. Illegal guarantees
□Applicable √Not applicable
IV. The Company's explanation on the ‘non-standard opinion audit report’ of the
accounting firm
□Applicable √Not applicable
V. The Company's analysis and explanation on the reasons and effects of changes in
accounting policies, accounting estimates or corrections of major accounting errors
(i) The Company's analysis and explanation on the reasons and effects of changes in
accounting policies and accounting estimates
□Applicable √Not applicable
(ii) The Company's analysis and explanation on the reasons and effects of major
accounting errors correction
□Applicable √Not applicable
(iii) Communication with the former accounting firm
□Applicable √Not applicable
(iv) Approval procedures and other notes
□Applicable √Not applicable
VI. Engagement and termination of engagement of accounting firm
Unit: RMB 10,000
Now engaging
Name of the engaged domestic accounting Ernst & Young Hua Ming Certified Public
firm Accountants (special general partnership)
Remuneration of the engaged domestic 200
84 / 289
2023 Annual Report
accounting firm
Audit period of the engaged domestic
16
accounting firm
Name Remuneration
Internal control auditing Ernst & Young Hua Ming Certified Public
55
accounting firm Accountants (special general partnership)
Statement on the engagement or termination of engagement of accounting firm
√Applicable □Not applicable
After deliberation at the 8th Meeting of the 9th Board of Directors of the Company held on
April 10, 2023, and the 2022 Shareholders' Meeting held on May 5, 2023, the Proposal on the
Renewal of the Employment of the Accounting Firm was passed, and it was agreed to renew the
employment of Ernst&Young Huaming Certified Public Accountants (Special General
Partnership) as the Company's financial report and internal control audit institution for 2023.
Please refer to the Announcement on the Renewal of Employment of Accounting Firm (L2023-
011) released by the Company on the Shanghai Stock Exchange website (www.sse.com.cn) on
April 11, 2023, and the Announcement on the Resolution of the 2022 Annual General Meeting
of Shareholders (L2023-018) released on the Shanghai Stock Exchange website
(www.sse.com.cn) on May 6, 2023.
Statement on replacing the accounting firm during the audit
□Applicable √Not applicable
Explanation of audit fees decreasing by more than 20% (including 20%) compared to the
previous year
□Applicable √Not applicable
VII. Situations at risk of delisting
(i) Reasons for the delisting risk warning
□Applicable √Not applicable
(ii) The Company's proposed response measures
□Applicable √Not applicable
(iii) Termination of listing and reasons
□Applicable √Not applicable
VIII. Matters relating to bankruptcy and reorganization
□Applicable √Not applicable
85 / 289
2023 Annual Report
IX. Material litigations and arbitrations
√ During the year, the Company had major litigations or arbitrations □ During the year, the Company did not have any major litigations or arbitrations
(i) Litigations and arbitrations have been disclosed in the temporary announcements and have had no further progresses
√Applicable □Not applicable
Overview and type of matters Query website
In December 2023, the Company received a civil judgment from the Zhejiang Provincial The specific content of the judgment can be
High People's Court regarding the dispute over the letter of credit between Zhejiang Branch found in the Announcement on the Progress of
of China Cinda Asset Management Co., Ltd. and the Company and Zhejiang Yiwu China Litigation Involving the Company and
Small Commodities City Trading Co., Ltd. (formerly a controlling subsidiary of the Company, Participating Subsidiaries disclosed by the
now a joint-stock company, with the Company holding 35.8% of its shares). The appeal was Company on December 5, 2023 (L2023-056)
dismissed and the original judgment upheld.
(ii) Litigations and arbitrations that have not been disclosed in the temporary announcements or have had further progresses
√Applicable □Not applicable
Unit: RMB 10,000
During the reporting period:
Does the
litigation
(arbitration)
Party Basic Value
Litigation cause Status of Results of litigation Enforcement
Plaintiff Defendant bearing information of involved in
or estimated litigation (arbitration) and effect of judgment
(claimant) (respondent) joint litigation litigation
arbitration liabilities (arbitration) thereof (award)
liabilities (arbitration) (arbitration)
and the
amount
thereof
86 / 289
2023 Annual Report
1. The defendant
Shizuishan Shengyuze
Asset Management Co.,
Shizuishan
Ltd. shall pay the
Shengyuze
outstanding project payment
Asset
Dispute over of RMB 3,819,617 and
Management
Ningxia construction interest of RMB 303,211,
Co., Ltd., Yiwu
Shenghong project Judgment totaling RMB 4,122,828, to
China
Construction No Litigation construction 430.69 No has been the plaintiff Ningxia
Commodity
Engineering contract made Shenghong Construction
City Supply
Co., Ltd. [(2022) N 0202 Engineering Co., Ltd. within
Chain
MC No. 4273] 15 days after this judgment
Management
takes effect;
Co., Ltd., the
2. Other claims of the
Company
plaintiff Ningxia Shenghong
Construction Engineering
Co., Ltd. were dismissed
Zhejiang
Disputes over The defendant shall pay the
China Small
Yiwu Junhuhui Housing Lease Judgment plaintiff a penalty of RMB
Commodities
Entertainment No Litigation Contracts 203.97 No has been 88,387 within 30 days from
City Group
Co., Ltd. [(2023) Z 0782 made the effective date of this
Co., Ltd.
M C No. 2728] judgment.
CCC Hotel
Dispute over
The Company, construction
third party project
Shenzhen construction Appraisal
Ying Jianhua No Litigation 836.31 No
Pengrun contract in progress
Construction [(2022) Z 0782
Group Co., Ltd. MSQT No.
18007]
Hebei Haicheng Yiwu Dispute over
Construction China construction
No Litigation 7,431.59 No Undecided
Engineering Commodities project
Group Co., City Investment construction
87 / 289
2023 Annual Report
Ltd. Development contract
Co., Ltd. (2023) L 0381
MC No. 1585
Dispute case
Luo Haiquan,
involving
Huang Hearings
shareholders
Shuiying; Third have been
harming the
The party: No held but no
No Litigation interests of 300
Company Longchuan judgment
company
Yuegang has been
creditors
Industrial Co., made
[(2023) Y 1622
Ltd.
M C 2752]
(iii) Other statements
□Applicable √Not applicable
88 / 289
2023 Annual Report
X. Information of the Listed Company and its directors, supervisors, senior
management, controlling shareholder, and actual controller suspected of violations
of laws and regulations, penalties and rectification
□Applicable √Not applicable
XI. Credit standing of the Company and its controlling shareholder and actual controller
√Applicable □Not applicable
There was no outstanding court judgment or overdue debt of a large amount involving the
Company or its controlling shareholder or actual controller during the reporting period.
XII. Material related-party transactions
(i) Related-party transactions relating to regular corporate operation
1. Matters that have been disclosed in the temporary announcements and had no
further progresses or changes
□Applicable √Not applicable
2. Matters that have been disclosed in the temporary announcements but had further
progresses or changes
√Applicable □Not applicable
The 10th Meeting of the 9th Board of Directors of the Company reviewed and approved the
Proposal on Project Construction Entrustment Management and Related Party Transactions,
and agreed to sign an engineering project entrustment management contract with of Shangbo
Yungu, a wholly-owned subsidiary of the Company’s controlling shareholder, CCCH,. For
details, please refer to the Announcement on Project Construction Entrustment Management
and Related Party Transactions (L2023-019) disclosed by the Company on the Shanghai Stock
Exchange website (www.sse.com.cn) on May 12, 2023.
As of the end of the reporting period, the project was under construction.
89 / 289
2023 Annual Report
3. Matters that have not been disclosed in the temporary announcements
√Applicable □Not applicable
Unit: RMB
Reasons for
Percentage the large
Type of in the difference
Contents of Amount of
Related related- Pricing Price of related- amount of Settlement Market price between the
Relationship related-party related-party
counterparty party principle party transaction similar method price of the
transaction transaction
transaction transactions transaction
(%) and reference
market price
Property
Yiwu China Controlling
Acceptance service fee
Commodities City subsidiaries Market Bank
of labor and greening 181,414,943.66 181,414,943.66 77.20 181,414,943.66 /
Property Service of controlling price transfer
service maintenance
Co., Ltd. shareholders
fee
Subsidiaries Bank
of controlling Acceptance transfer
Yiwu Security Security Market
shareholder of labor 17,321,354.13 17,321,354.13 7.37 17,321,354.13 /
Service Co., Ltd. service fee price
parent service
company
Controlling Warehouse Market Bank
CCCH Rent 15,025,937.62 15,025,937.62 6.39 15,025,937.62 /
shareholders space rental price transfer
Yiwu Shangbo Controlling Bank
Yungu Enterprise subsidiaries Providing Construction Market transfer
11,048,288.61 11,048,288.61 4.70 11,048,288.61 /
Management Co., of controlling services fee price
Ltd. shareholders
Yiwu China Controlling Bank
Commodities City subsidiaries Sales of Sales of Market transfer
4,153,162.42 4,153,162.42 1.77 4,153,162.42 /
Property Service of controlling goods goods price
Co., Ltd. shareholders
Yourworld Branches of Acceptance Bank
Laundering Market
International the of labor 2,627,096.60 2,627,096.60 1.12 transfer 2,627,096.60 /
fees price
Conference Center, controlling service
90 / 289
2023 Annual Report
subordinated to shareholder’s
Yiwu Market parent
Development company
Group
Yiwu China Bank
Commodities City Acceptance transfer
Market
Creative Design Associates of labor Design fee 2,440,943.96 2,440,943.96 1.04 2,440,943.96 /
price
and Development service
Services Co., Ltd.
Yourworld Bank
Branches of
International transfer
the Entrusted
Conference Center,
controlling Other management Negotiated
subordinated to 954,484.23 954,484.23 0.41 954,484.23 /
shareholder’s inflow fees and price
Yiwu Market
parent license fees
Development
company
Group
Total / / 234,986,211.23 100 / / /
Details of large-value return of goods sold
Illustration on related-party transactions Yiwu China Small Commodity City Property Service Co., Ltd. obtained the market property
service and greening maintenance contract by participating in public bidding.
91 / 289
2023 Annual Report
(ii) Related transactions in the acquisition or sale of assets or equity
1. Matters that have been disclosed in the temporary announcements and had no
further progresses or changes
□Applicable √Not applicable
2. Matters that have been disclosed in the temporary announcements but had further
progresses or changes
□Applicable √Not applicable
3. Matters that have not been disclosed in the temporary announcements
√Applicable □Not applicable
Unit: RMB 10,000
Reasons
for
The impact significant
of difference
Book Assesse
transactions s between
value d value Gains
Type of Contents of Pricing Transf Settleme on the transactio
Related Relation of of from
related-party related-party princip er nt Company's n price
party ship transfe transferr asset
transaction transaction le price method operating and book
rred ed transfer
results and value or
assets assets
financial assessed
condition value or
market fair
value
This
Transfer of Realized an transactio
Associat
60% equity of income of n was
Zhijie ed Equity Market 1,445. Bank
Yiwu Huanqiu 2,412 2,412 966.31 RMB 9.6631 completed
Yuangang compan transfer price 69 transfer
Yida Logistics million from through
y
Co., Ltd. transfer public
listing
Explanation of related transactions arising from asset acquisition and sale
For details, please refer to Note VIII. Changes in the scope of consolidation
4. If any agreement on the operating results is involved, the achievement of operating
results during the reporting period shall be disclosed
□Applicable √Not applicable
(iii) Related-party transactions arising from joint external investment
1. Matters that have been disclosed in the temporary announcements and had no
further progresses or changes
□Applicable √Not applicable
2. Matters that have been disclosed in the temporary announcements but had further
progresses or changes
□Applicable √Not applicable
3. Matters that have not been disclosed in the temporary announcements
□Applicable √Not applicable
92 / 289
2023 Annual Report
(iv) Related-party credits and debts
1. Matters that have been disclosed in the temporary announcements and had no
further progresses or changes
□Applicable √Not applicable
2. Matters that have been disclosed in the temporary announcements but had further
progresses or changes
□Applicable √Not applicable
3. Matters that have not been disclosed in the temporary announcements
□Applicable √Not applicable
(v) Financial business between the Company and the associated financial companies,
the Company's holding financial company and the related parties
□Applicable √Not applicable
(vi) Other
□Applicable √Not applicable
XIII. Material contracts and performance thereof
(i) Trusteeship, contracting and leases
1. Hosting
□Applicable √Not applicable
2. Contracting
□Applicable √Not applicable
3. Renting
□Applicable √Not applicable
93 / 289
2023 Annual Report
(ii) Guarantees
√Applicable □Not applicable
Unit: RMB 10,000
External guarantees provided by the Company (excluding those provided for the subsidiaries)
Relationsh
Date of
ip
guarante Is the Overdue Is it a
between Amount Guarant Guarant Is the
The e (signing Type of Collater guarant amount Counter related- Related
Guarant the of ee ee guarant
guarante date of guarant al (if ee of the guarante party relationsh
or guarantor guarant starting maturity ee
ed the ee any) fulfilled guarant es guarant ip
and the ee date date overdue
agreeme in full ee ee
Listed
nt)
Company
Joint SCO
and provided
The The
Yiwu 4,575.4 Dec 16, Jul 1, Dec 15, several a Joint
Compan Company No No No NA Yes
Shanglv 9 2015 2015 2026 liability counter- venture
y itself
guarant guarante
ee e
Joint
Hangzh
and
ou Wholly- House
several Not
Shangb owned purchase 462.93 No No No NA No
liability applicable
o subsidiary r
guarant
Nanxing
ee
Amount of guarantees made during the reporting period (excluding the -4,926.14
guarantees provided for subsidiaries)
Balance of guarantees at the end of the reporting period (A) (excluding the 5,038.42
guarantees provided for subsidiaries)
The guarantee of the Company and its subsidiaries to the subsidiaries
Amount of guarantees provided for subsidiaries during the reporting period -
Balance of guarantees provided for subsidiaries at the end of the reporting -
period (B)
Total guarantees provided by the Company (including those provided for the subsidiaries)
94 / 289
2023 Annual Report
Total amount of guarantees (A+B) 5,038.42
Ratio of the total amount of guarantees to the Company’s net assets (%) 0.28
Among them:
Amount of guarantees provided for shareholders, actual controller and their
-
related parties (C)
Amount of guarantees provided directly or indirectly for the debtors whose
-
debt-to-asset ratio exceed 70% (D)
Portion of total amount of guarantees in excess of 50% of net assets (E) -
Total (C+D+E) -
Statement on the joint and several liability that may be assumed due to NA
outstanding guarantees
Statement on guarantees 1. According to the resolution of the 15th Meeting of the 7th Board of
Directors on July 1, 2015, the Group applied for a RMB 750 million loan
with Agricultural Bank of China Yiwu Branch for Yiwu Shanglv and
provided guarantees in accordance with the shareholding ratio. The
guarantee method was joint liability guarantee, the highest guarantee
amount was RMB 367.5 million and the guarantee term was11 years.
As of December 31, 2023, Yiwu Shanglv actually borrowed RMB
93,377,327.02 from banks (December 31, 2022: RMB 193,468,056.42).
According to the guarantee contract, the Group should bear a
guarantee liability of RMB 45,754,890.24 (December 31, 2022: RMB
94,799,347.65) to Yiwu Branch of Agricultural Bank of China. SCO
provided a counter-guarantee for this guarantee.
2. According to relevant regulations, the Group is required to provide
mortgage loan guarantees to the bank for the sale of commercial
housing before the purchaser of the housing has completed the
property ownership certificate. The outstanding guarantee amount as of
December 31, 2023 was RMB 4,629,333.68 (December 31, 2022: RMB
4,846,333.64). Those guarantees would be released after the issuance
of the property ownership certificates and are thus little likely to incur
losses. Therefore, the management believed that it was not necessary
to make provision for the guarantees.
95 / 289
2023 Annual Report
(iii) Entrust the management of the cash assets of others
1. Entrusted financial management
(1) The totality of entrusted financial management
√Applicable □Not applicable
Unit: RMB 10,000
Type Source of funds Amount Undue balance Overdue unrecovered amount
Bank financing products Self-owned funds 3,850.00 - -
Other information
□Applicable √Not applicable
(2) Individual entrusted financial management
□Applicable √Not applicable
Other information
□Applicable √Not applicable
(3) Entrusted financial management impairment provision
□Applicable √Not applicable
2. Entrusted Loan
(1) Total entrusted loan
√Applicable □Not applicable
Unit: RMB 10,000
Type Source of funds Amount Undue balance Overdue unrecovered amount
Entrusted Loans Self-owned funds 4,800 4,800 -
Other information
√Applicable □Not applicable
In order to improve the efficiency of fund utilization, the indirectly controlled subsidiary of the Company, Zhejiang Yiwugou E-commerce Co., Ltd.,
provided an entrusted loan of RMB 48 million to Yixia Chengdu International Trade City Co., Ltd. with its own funds, with a term of 2 years. For details,
96 / 289
2023 Annual Report
please refer to the announcement on providing entrusted loans to external parties disclosed by the Company on the Shanghai Stock Exchange website
(L2022-079).
(2) Single Entrusted Loan
√Applicable □Not applicable
Unit: RMB 10,000
Amount
Expect Realis
Type Entrus Entrus Fund Remuner Annuali Entrus of
Entrust Fund ed tic Statutor
of ted ted sourc ation zed Actual ted provisio
ed loan sources return gains y
Trustee entrust loan loan es determina rate of recov loan n for
terminat Investm (If or procedu
ed amoun start Sour tion return ery progra impairm
ion date ent any) losse res
loan t date ce Method m ent (if
s
any)
Yiwu Bank 4,800 Dec Dec 19, Self- 5.5% 528 / Yes No
Branch entrust 20, 2024 owne
of ed 2022 d
Agricult loans funds
ural
Bank of
China
Co.,
Ltd.
Other information
□Applicable √Not applicable
(3) Entrusted loan impairment provision
□Applicable √Not applicable
3. Other information
□Applicable √Not applicable
97 / 289
2023 Annual Report
(iv) Other material contracts
√Applicable □Not applicable
Contract price (RMB
No. Name of contract Contracting party
10,000)
Contract for Entrusted Construction and Management of The Company, Yiwu Shangbo Yungu
1 3045.57
Global Digital Free Trade Center Enterprise Management Co., Ltd.
Construction Contract for Lot 1 of the Supporting and
The Company, Zhejiang Baisha
2 Landscape Greening Project of the New Import Market 2023.90
Construction Co., Ltd.
in Yiwu Comprehensive Bonded Zone
Supplementary Agreement to the New Import Market of
The Company, Zhejiang Construction
3 Yiwu Comprehensive Bonded Zone - South Zone 67963.69
Engineering Group Co., Ltd.
Engineering Construction Contract (I)
Construction Contract for Lot 2 of the Supporting and
The Company, Yiwu Chengsheng
4 Landscape Greening Project of the New Import Market 1571.56
Municipal Engineering Co., Ltd.
in Yiwu Comprehensive Bonded Zone
Yiwu China Commodities City Information
Procurement Contract for Integrated Services of Yiwu
5 Technology Co., Ltd. and Yiwu Branch of 2558.00
International Trade City
China Telecom
The 8th Meeting of the 9th Board of Directors of the Company reviewed and approved the proposal on investing in the construction of the Yiwu
Global Digital Free Trade Center. For details, please refer to the Announcement on External Investment disclosed by the Company on the Shanghai
Stock Exchange website (www.sse.com.cn) on April 11, 2023 (L2023-014).
XIV. Description of progress in the use of raised funds
□Applicable √Not applicable
XV. Explanation on other major events that have a significant impact on investors' value judgments and investment decisions
√Applicable □Not applicable
During the reporting period, the Company continuously expanded its cooperation with commodity trading partners in the industrial chain, while
also expanding its presence in the supply chain and big data fields. That was intended for consolidating the basic foundation of trade, deeply
exploring the commercial data value of the deep interaction between the small commodity industry chain and the supply chain, assisting Chinese
98 / 289
2023 Annual Report
enterprises in going overseas, actively obtaining global trade increment, and empowering the upgrading of the small commodity industry. The specific
status of strategic cooperation framework agreements signed is as follows:
(1) In the field of commerce and trade
No. Partner Collaboration content Signing time
By means of joint marketing, opening "Yiwu Good Goods" collection stores, and
Beijing Jingdong Century organizing existing merchants of Yiwu China Commodities City to upload to the JD
1 March 2023
Trading Co., Ltd. platform, the parties aim to build a multi-channel digital distribution system and enhance
the brand value of Yiwu China Commodities City.
Relying on the supply chain resources of Yiwu market and the local resources of
Shenzhen Transsion Holdings September
2 Transsion Holdings in Africa, timely cooperation shall be carried out to help the brand of
Co., Ltd. 2023
Yiwu market go global, and timely capital cooperation shall be carried out.
The parties shall fully leverage their respective advantages in industries, resources,
business models, channels, and other aspects in their respective fields, actively promote
3 Tokyo Aucfan Co., Ltd., Japan July 2023
cooperation in on-site commodity trade platforms, carry out online platform
interoperability cooperation, and share online information.
Based on the policy and resource advantages of both sides, the parties shall strengthen
Xinjiang Commercial Logistics November
4 cooperation in the field of commercial logistics, and form a linkage advantage between
(Group) Co., Ltd. 2023
the two regions.
(2) Supply chain field
Signing
No. Partner Collaboration content
time
By creating a "New Energy Vehicle Parts Trading Center", a "New Energy Product
China National Building Materials
1 Exhibition and Sales Center", optimizing transit logistics solutions, and improving August 2023
International UAE Company
supply chain financial services, the parties aim to optimize the development of
99 / 289
2023 Annual Report
bilateral regional trade between Yiwu and Dubai, and deepen the complementarity
of the industrial chain, supply chain, and value chain between the two regions. In
this way, the parties will promote made-in-China products and Chinese brands
going overseas to explore the Middle East and Africa markets, and practice
national strategies such as the Belt and Road initiative, high-quality development
of new energy industry, and internationalization of RMB.
The parties carry out strategic cooperation with the bonded areas of Yiwu
Comprehensive Bonded Zone and Shanghai Pilot Free Trade Zone as the start
point. The parties shall fully leverage the policy and location advantages of Yiwu
Comprehensive Bonded Zone, leverage the professional service capabilities of
February
2 Shanghai Waigaoqiao Group Co., Ltd. Waigaoqiao Group in the field of import trade, jointly serve key foreign-funded
2023
enterprise customers, innovate basic services closely related to trade, including
procurement, customs declaration, logistics, and foreign exchange settlement,
cooperate to explore trade finance models, improve the level of trade services
between both parties, and enrich the international trade business ecosystem.
Three party integration of resources, complementary advantages, supported by
the Yiwu China Commodities City supply and commercial flow, linked by the Zhijie
Zhejiang Zhijie Yuangang International Yuangang logistics supply chain platform, and guaranteed by the Maersk logistics
Supply Chain Technology Co., Ltd. transportation network, based on their respective core competitiveness, the parties
3 July 2023
Damco Global Logistics (Shanghai) Co., shall carry out comprehensive and multi-level cooperation in digital supply chain
Ltd services, end-to-end logistics, cross-border e-commerce, ESG and clean energy,
logistics infrastructure, etc., establish a long-term, stable, and efficient
communication mechanism, and jointly create an efficient, convenient, and
100 / 289
2023 Annual Report
economical global supply chain channel.
(3) Data value field
No. Partner Collaboration content Signing
time
The parties shall integrate resources, complement each other's advantages, and
support themselves with the storage resources of people's data. Taking the information
flow of goods and commerce in Yiwu China Commodities City as the object, the parties
shall carry out comprehensive and multi-level cooperation in data rights confirmation,
People Data Management September
1 data storage, data empowerment, data operation, etc., establish a long-term, stable,
(Beijing) Co., Ltd. 2023
and efficient communication mechanism, and jointly build a trade data ecosystem. For
details, please refer to the Announcement on Signing a Strategic Cooperation
Framework Agreement (L2023-045) disclosed by the Company on the Shanghai Stock
Exchange website on October 9, 2023.
By giving full play to Yiwu China Commodities City’s first mover advantage in market
trade and advantage in trade performance ecology with the chinagoods platform as the
core and Zhejiang Branch of China Unicom’s advantages in the construction and
Zhejiang Branch of China United operation of data centers, cloud computing, big data, artificial intelligence, network and
2 Network Communications data security, and rich international network resources, the parties shall cooperate in April 2023
Limited the construction and operation of the “Belt and Road” international data center that
includes but is not limited to the new Internet data dedicated channel, green data
center, cloud computing center, and intelligent computing center, and will jointly
explore the market-oriented operation of data elements, support projects such as Yiwu
101 / 289
2023 Annual Report
Cross-Border E-Commerce Industrial Park and Global Digital Trade Center, and
promote the transformation of Yiwu market and the upgrading of trade business forms.
For details, please refer to the Announcement on Foreign Investment disclosed by the
Company on the Shanghai Stock Exchange website on April 25, 2023 (L2023-017)
The parties shall jointly develop, construct and operate digital products based on high-
quality cross-border communication services and innovative business services based
on artificial intelligence applications, focus on expanding cooperation in new Internet
data transmission, cross-border access, data analysis application platforms and other
application fields, further improve the digital service system, promote trade with digital,
3 Minying Holdings Limited July 2023
and promote cross-border e-commerce development with trade; actively participate in
and focus on supporting the construction of Yiwu Cross-border E-commerce Industrial
Park, the Global Digital Trade Center, the “Belt and Road” International Data Center
and other projects of Yiwu CCC, and promote the transformation of Yiwu market and
the upgrading of trade business forms.
102 / 289
2023 Annual Report
Section VII. Changes in Shares and Shareholders
I. Changes in equity
(i) Exhibition of changes in shares
1. Exhibition of changes in shares
Unit: 10,000 shares
Increase or decrease in the current
Before this change After this change
period (+, -)
Share
s
New
Bon conver
shar
Proport us ted Sub- Proport
Qty. es Other Quantity
ion (%) shar from total ion (%)
issu
es capital
ed
reserv
e
I. 4,286 0.78 0 0 0 - - 2,721.87 0.5
Restricte 1,564. 1,564. 5
d shares 125 125
1. 4,286 0.78 0 0 0 - - 2,721.87 0.5
Shares 1,564. 1,564. 5
held by 125 125
other
domestic
capitals
shares 4,286 0.78 0 0 0 - - 2,721.87 0.5
held by 1,564. 1,564. 5
domestic 125 125
natural
persons
II. 544,321. 99.22 0 0 0 1,390. 1,390. 545,711. 99.50
Unrestric 4176 125 125 5426
ted
shares
1. RMB- 544,321. 99.22 0 0 0 1,390. 1,390. 545,711. 99.50
denomin 4176 125 125 5426
ated
common
shares
III. Total 548,607. 100 0 0 0 -174 -174 548,433. 100
number 4176 4176
of shares
2. Description of changes in shares
√Applicable □Not applicable
On November 20, 2023, due to some incentive objects no longer meeting the incentive
conditions, the Company repurchased and cancelled 1.74 million circulating shares restricted for
sale.
3. The impact of changes in shares on financial indicators such as earnings per share
and net assets per share in the most recent year and the most recent period (if any)
□Applicable √Not applicable
4. Other matters the Company deems it necessary to disclose or required by the
securities regulatory authority to be disclosed
□Applicable √Not applicable
103 / 289
2023 Annual Report
(ii) Changes in non-tradable shares
√Applicable □Not applicable
Unit: 10,000 shares
Number
Number Number
of Number
of of
restricted of
restricted increased Reasons for
shares at restricted
Shareholder shares restricted restriction Unlocking date
the shares at
released shares on trade
beginning the end of
during the during
of the the year
year the year
year
The lock-up period
322 incentive is 24 months, 36
recipients subject months and 48
Restricted
to the first grant months from the
4,060 1,317.36 - 2,574.14 stock
under the 2020 date when the
incentives
restricted stock registration of the
incentive plan reserved grant is
completed.
The lock-up period
29 incentive
is 24 months, 36
recipients subject
months and 48
to the reserved Restricted
months from the
grant under the 226 72.765 - 147.735 stock
date when the
2020 restricted incentives
registration of the
stock incentive
reserved grant is
plan
completed.
Total 4,286 1,390.125 - 2,721.875 / /
The Company's restricted stock incentive plan for 2020 was implemented until the end of
the reporting period. A total of 75 incentive recipients no longer met the incentive conditions
due to transfer, resignation, retirement, and other reasons. Their restricted stocks were
repurchased and cancelled by the Company. As of the end of the reporting period, there were
a total of 351 remaining incentive recipients, holding a total of 27.21875 million shares
restricted for sale.
II. Securities issuance and listing
(i) Securities issuance as of the reporting period
√Applicable □Not applicable
Unit: 10,000 shares, Currency: RMB
Number Number of
Types of Issuing of shares or
Transaction
stocks and price (or shares bonds
Issue date Listing date termination
their interest or approved
date
derivatives rate) bonds for listed
issued transaction
Common stock class
January 15, RMB 2.94 January
A share 4,670 4,670
2021 /share 15, 2021
November RMB 2.39 / November
A share 234 234
4, 2021 share 4, 2021
Bonds (including corporate bonds, corporate bonds, and non-financial corporate debt financing
104 / 289
2023 Annual Report
instruments)
22 YIWU August 30, September September
2.88% 800 800
CCC 01 2022 8, 2022 1, 2025
22 YIWU September September September
2.88% 700 700
CCC 02 20, 2022 27, 2022 22, 2025
Notes on the issuance of securities as of the reporting period (for bonds with different interest
rates during the duration, please specify separately):
□Applicable √Not applicable
(ii) Changes in the total number of shares of the Company, the shareholder structure,
and changes in the Company's assets and liabilities structure
□Applicable √Not applicable
(iii) Existing internal employee shares
□Applicable √Not applicable
III. Shareholders and actual controllers
(i) Total number of shareholders
Number of common shareholders as of the end of 175,645
the reporting period
The total number of common shareholders 140,804
(households) at the end of the previous month
before the disclosure of the annual report
(ii) Shareholdings of the top 10 shareholders and top 10 holders of tradable shares (or
shareholders not subject to trading restrictions)
Unit: share
Shareholdings of the top ten shareholders (excluding shares lent through refinancing)
Number of Number Pledge, mark or
Change
shares held at of non- freezing Ownership
Shareholder during the Proportion
the end of the tradable of
(full name) reporting (%) Status of
reporting shares Qty. shareholder
period shares
period held
Yiwu China State-
Commodities owned
- 3,038,179,392 55.40 - No -
City Holdings legal
Limited person
Zhejiang
State-
Zhecai
owned
Capital - 147,466,528 2.69 - No -
legal
Management
person
Co., Ltd.
Hong Kong
Central
Clearing 21,107,176 82,862,041 1.51 - No - Other
Company
Limited
105 / 289
2023 Annual Report
China Life
Insurance
Co., Ltd. -
Traditional -
General 40,033,242 40,033,242 0.73 - No - Unknown
Insurance
Products -
005L-CT001
Shanghai
National
Social
36,757,465 36,757,465 0.67 - No - Unknown
Security Fund
116 Portfolio
Domestic
GAO Yaping 32,261,566 32,261,566 0.59 - No - natural
person
Southern
Asset
Management
－ Agricultural
Bank of
China －
Southern -997,800 26,675,000 0.49 - No - Unknown
China
Securities
Financial
Assets
Management
Scheme
Dacheng
Fund －
Agricultural
Bank of
China －
Dacheng -1,225,000 26,447,800 0.48 - No - Unknown
China
Securities
Financial
Assets
Management
Scheme
Domestic
JIANG Shibo 24,387,200 24,387,200 0.44 - No - natural
person
GF Fund －
Agricultural
Bank of
China － GF
China -6,576,400 21,096,400 0.38 - No - Unknown
Securities
Financial
Assets
Management
Scheme
Shares held by top 10 holders of tradable shares
Shareholder Number of tradable shares held Type and quantity of shares
106 / 289
2023 Annual Report
Type Qty.
RMB-
Yiwu China Commodities denominated
3,038,179,392 3,038,179,392
City Holdings Limited common
share
RMB-
Zhejiang Zhecai Capital denominated
147,466,528 147,466,528
Management Co., Ltd. common
share
RMB-
Hong Kong Central Clearing denominated
82,862,041 82,862,041
Company Limited common
share
China Life Insurance Co., RMB-
Ltd. - Traditional - General denominated
40,033,242 40,033,242
Insurance Products -005L- common
CT001 Shanghai share
RMB-
National Social Security denominated
36,757,465 36,757,465
Fund 116 Portfolio common
share
RMB-
denominated
GAO Yaping 32,261,566 32,261,566
common
share
Southern Asset
Management－Agricultural RMB-
Bank of China－Southern denominated
26,675,000 26,675,000
China Securities Financial common
Assets Management share
Scheme
Dacheng Fund－Agricultural
RMB-
Bank of China－Dacheng
denominated
China Securities Financial 26,447,800 26,447,800
common
Assets Management share
Scheme
RMB-
denominated
JIANG Shibo 24,387,200 24,387,200
common
share
GF Fund－Agricultural Bank RMB-
of China－GF China denominated
21,096,400 21,096,400
Securities Financial Assets common
Management Scheme share
Zhejiang Provincial Finance Development Co., Ltd., the controlling
Explanation on the
shareholder of Zhejiang Zhecai Capital Management Co., Ltd., holds
relationship or concerted
9.44% of the shares of Yiwu State-owned Capital Operation Co., Ltd., the
action between the above
controlling shareholder of Yiwu China Commodity City Holding Limited, the
shareholders
controlling shareholder of Yiwu Market Development Group Co., Ltd.
Explanation on the
preferred shareholders
whose voting rights had
No
been restituted and the
quantity of shares held
thereby
107 / 289
2023 Annual Report
The top ten shareholders participating in the lending of shares through refinancing business
□Applicable √Not applicable
Changes in the top ten shareholders compared to the previous period
√Applicable □Not applicable
Unit: share
Changes in the top ten shareholders compared to the end of the previous period
At the end of the period, the number
New At the end of the period, of shares held in the ordinary
addition the number of shares account and credit account of
Shareholder name (full /withdrawal lent through refinancing shareholders as well as the number
name) during this and not yet returned of shares lent through refinancing
reporting and not yet returned
period Proportion
Total Total Proportion (%)
(%)
China Life Insurance Co., New
Ltd. - Traditional - General addition
- - 40,033,242 0.73
Insurance Products -005L-
CT001 Shanghai
National Social Security Fund New
- - 36,757,465 0.67
116 Portfolio addition
New
GAO Yaping - - 32,261,566 0.59
addition
New
JIANG Shibo - - 24,387,200 0.44
addition
China-Europe Fund -
Agricultural Bank of China –
China-Europe China Withdrawal - - - -
Securities Financial Asset
Management Plan
E Fund - Agricultural Bank of
China - E Fund China
Withdrawal - - - -
Securities Financial Asset
Management Plan
Agricultural Bank of China
Limited
- CSI 500 Trading Open Withdrawal 5,714,000 0.10 19,627,919 0.36
Index
Securities Investment Fund
Yinhua Fund - Agricultural
Bank of China - Yinhua
Withdrawal - - 15,341,127 0.28
China Securities Financial
Asset Management Plan
Number of shares held by the top 10 shareholders subject to trading restrictions and the
trading restrictions
□Applicable √Not applicable
(iii) Strategic investors or general legal persons became the top 10 shareholders due to
the placement of new shares.
□Applicable √Not applicable
108 / 289
2023 Annual Report
IV. Controlling shareholder and actual controller
(i) Controlling shareholder
1 Legal person
√Applicable □Not applicable
Name Yiwu China Commodities City Holdings Limited
The person in charge or legal
ZHAO Wenge
representative of the unit
Date of establishment October 29, 2019
Main business State-owned shareholding platform
Shareholdings of other domestic
and overseas listed companies
No
that hold or participate in shares
during the reporting period
Other statements No
2 Natural person
□Applicable √Not applicable
3 Special statement that the Company does not have a controlling shareholder
□Applicable √Not applicable
4 Explanation on Changes in Controlling Shareholders During the Reporting Period
□Applicable √Not applicable
5 Block diagram of the property rights and control relationship between the Company
and the controlling shareholder
√Applicable □Not applicable
55.40%
(ii) The actual controller
1 Legal person
√Applicable □Not applicable
Name State-owned Assets Supervision and Administration
Office of the People’s Government of Yiwu
The person in charge or legal Wang Chenggang
109 / 289
2023 Annual Report
representative of the unit
Date of establishment March 26, 2009
Main business State-owned capital management and state-owned
equity management
Shareholdings of other domestic
and overseas listed companies
No
that hold or participate in shares
during the reporting period
Other statements No
2 Natural person
□Applicable √Not applicable
3 Special explanation that the Company does not have an actual controller
□Applicable √Not applicable
4 Explanation on changes in the Company's control during the reporting period
□Applicable √Not applicable
5 Block diagram of the property rights and control relationship between the Company
and the actual controller
√Applicable □Not applicable
110 / 289
2023 Annual Report
6 The actual controller controls the Company through trust or other asset management
methods.
□Applicable √Not applicable
(iii) Other introductions of controlling shareholders and actual controllers
□Applicable √Not applicable
V. The controlling shareholder or the largest shareholder of the Company and its
persons acting in concert have accumulatively pledged shares that account for more
than 80% of the Company's shares held by them
□Applicable √Not applicable
VI. Other corporate shareholders holding more than 10% of the shares
□Applicable √Not applicable
VII. Description of share restriction reduction
□Applicable √Not applicable
VIII. The specifics of implementation of share repurchase during the reporting period
□Applicable √Not applicable
Preferred Shares
□Applicable √Not applicable
111 / 289
2023 Annual Report
Section VIII. Bonds
I. Corporate bonds, corporate bonds and non-financial corporate debt financing
instruments
√Applicable □Not applicable
(i) Corporate bonds
□Applicable √Not applicable
(ii) Corporate bonds
√Applicable □Not applicable
1. Basic information on corporate bonds
Unit: RMB 100 million
Wheth
Metho er
d of there
princip is a
al risk of
Inter
Outsta repay Tradi termin
Name Abbrevi Cod Issue Value Maturi est
nding ment ng ating
of bond ation e date date ty date rate
amount and venue the
(%)
intere transa
st ction
paym in the
ent stock
market
Zhejian
Simpl
g
e
China
intere
Comm
st is
odity
calcul
City
ated,
Group
the
Co.,
intere
Ltd.
st Shan
publicly 22 Septe Septe Septe
paym ghai
issued YIWU 137 mber mber mber
8 2.88 ent Stock No
corpor CCC 740 1, 1, 1,
freque Exch
ate 01 2022 2022 2025
ncy is ange
bonds
annua
to
l, and
profess
the
ional
princip
investo
al is
rs in
repaid
2022
once
(Issue
due.
1)
Zhejian Simpl
g e Shan
22 Septe Septe Septe
China intere ghai
YIWU 137 mber mber mber
Comm 7 2.88 st is Stock No
CCC 815 22, 22, 22,
odity calcul Exch
02 2022 2022 2025
City ated, ange
Group the
112 / 289
2023 Annual Report
Co., intere
Ltd. st
publicly paym
issued ent
corpor freque
ate ncy is
bonds annua
to l, and
profess the
ional princip
investo al is
rs in repaid
2022 once
(Issue due.
2)
The Company's measures to deal with the risk of bond termination
□Applicable √Not applicable
Bonds overdue
□Applicable √Not applicable
Bond interest payment during the reporting period
√Applicable □Not applicable
Name of bond Description of interest payment
Zhejiang China
Commodity City Group On September 1, 2023, the Company paid all holders of "22 Yiwu
Co., Ltd. publicly issued
corporate bonds to
CCC 01" the interest from September 1, 2022 to September 1, 2023
professional investors in on time.
2022 (Issue 1)
Zhejiang China
Commodity City Group On September 22, 2023, the Company paid all holders of "22 Yiwu
Co., Ltd. publicly issued
corporate bonds to
CCC 02" the interest from September 22, 2022 to September 22,
professional investors in 2023 on time.
2022 (Issue 2)
2. Issuer or investor option clause, investor protection clause trigger and enforcement
□Applicable √Not applicable
3. Intermediaries providing services for bond issuance and duration business
Name of the
Signing Contact
Intermediary name Office address Contact number
Certified Public person
Accountants
CITIC Securities Building,
CITIC Securities Co., ZHANG
No. 48 Liangmaqiao Road, / 0571-85783754
Ltd. Yifan
Chaoyang District, Beijing
Guohao Lawyer Building,
Nos. 2 and 15, Zone B,
Guohao Law Firm YANG
Baita Park, Laofuxing / 0571-85775888
(Hangzhou) Beiyang
Road, Hangzhou City,
Zhejiang Province
Shanghai Brilliance
14/F Huasheng Tower,
Credit Rating & ZHOU
No.398 Hankou Road, / (021)63501349
Investors Service Co., Wenzhe
Shanghai
Ltd.
113 / 289
2023 Annual Report
Changes to the above intermediaries
□Applicable √Not applicable
4. Use of raised funds at the end of the reporting period
√Applicable □Not applicable
Unit: RMB 100 million
Whether it is
Operation
Rectification consistent with
Total of the
of illegal the purpose,
amount special
Amount Amount use of use plan and
Name of bond of account
used unused raised other
funds for raised
funds (if agreements
raised funds (if
any) promised in the
any)
prospectus
Zhejiang China Commodity City
Group Co., Ltd. publicly issued
8 8 - No No No
corporate bonds to professional
investors in 2022 (Issue 1)
Zhejiang China Commodity City
Group Co., Ltd. publicly issued
7 7 - No No No
corporate bonds to professional
investors in 2022 (Issue 2)
The progress and operational benefits of raised funds used for construction projects
□Applicable √Not applicable
Explanation on changing the use of the above-mentioned bonds raised during the reporting
period
□Applicable √Not applicable
Other statements
□Applicable √Not applicable
5. Adjustment in credit rating results
□Applicable √Not applicable
Other statements
√Applicable □Not applicable
Shanghai New Century Credit Rating Investment Service Co., Ltd. issued the Zhejiang China
Commodities City Group Co., Ltd. Credit Rating Report [XSJQP (2023) 020239] on June 27,
2023. According to the report, the Company's main credit rating is AAA, and the rating outlook
is stable.
6. The implementation and changes of guarantees, debt repayment plans and other debt
repayment protection measures during the reporting period and their impacts
□Applicable √Not applicable
7. Other statement on corporate bonds
□Applicable √Not applicable
114 / 289
2023 Annual Report
(iii) Non-financial corporate debt financing instruments in the inter-bank bond market
√Applicable □Not applicable
1. Non-financial corporate debt financing instruments
Unit: RMB 100 million
Whether
there is a
Method of
risk of
principal Investor
Interest terminating
Issue Value Maturity Outstanding repayment Trading appropriate Trade
Name of bond Abbreviation Code rate the
date date date amount and venue arrangements mechanism
(%) transaction
interest (if any)
in the
payment
stock
market
Annual
Feb-22- interest
Zhejiang China Commodities 22 Zhejiang
2022 to Feb 24, Feb 24, payment, Interbank
City Group Co., Ltd.’s 2022 Yiwu CCC 102280347 10 3.29 No No
Feb-23- 2022 2025 principal market
MTN (Issue 1) MTN001
2022 repayment
at maturity
Annual
Mar-25- interest
Zhejiang China Commodities 22 Zhejiang
2022 to Mar 29, Mar 29, payment, Interbank
City Group Co., Ltd.’s 2022 Yiwu CCC 102280660 5 3.57 No No
Mar-28- 2022 2025 principal market
MTN (Issue 2) MTN002
2022 repayment
at maturity
Annual
Jul 18, interest
Zhejiang China Commodities 22 Zhejiang
2022 to Jul 20, Jul 20, payment, Interbank
City Group Co., Ltd.'s 2022 Yiwu CCC 102281584 5 3.00 No No
Jul 19, 2022 2025 principal market
MTN (Issue 3) MTN003
2022 repayment
at maturity
One-time
From repayment
Zhejiang China Commodities
23 Zhejiang June 16, of
City Group Co., Ltd.’s 2023 Jun 20, Mar 15, Interbank
Yiwu CCC 012382295 2023 to 10 2.68 principal No No
Super Short-term Financing 2023 2024 market
SCP003 June 19, and
Bond (Issue 3)
2023 interest at
maturity.
115 / 289
2023 Annual Report
One-time
repayment
Zhejiang China Commodities Sept 11,
23 Zhejiang of
City Group Co., Ltd. 2023 2023 to Sep 13, Apr 10, Interbank
Yiwu CCC 012383426 10 2.72 principal No No
Super Short-term Financing Sep 13, 2023 2024 market
SCP004 and
Bond (Issue 4) 2023
interest at
maturity.
One-time
repayment
Zhejiang China Commodities Nov 6,
23 Zhejiang of
City Group Co., Ltd. 2023 2023 to Nov 8, Aug 2, Interbank
Yiwu CCC 012384038 10 2.78 principal No No
Super Short-term Financing Nov 7, 2023 2024 market
SCP005 and
Bond (Issue 5) 2023
interest at
maturity.
The Company's measures to deal with the risk of bond termination
□Applicable √Not applicable
Bonds overdue
□Applicable √Not applicable
Bond interest payment during the reporting period
√Applicable □Not applicable
Name of bond Description of interest payment
Zhejiang China Commodities City
On February 24, 2023, the Company paid the holders of "22 Zhejiang Yiwu CCC MTN001" the interest from
Group Co., Ltd.’s 2022 MTN (Issue
February 24, 2022 to February 24, 2023 on time.
1)
Zhejiang China Commodities City
On March 29, 2023, the Company paid the holders of "22 Zhejiang Yiwu CCC MTN002" the interest from
Group Co., Ltd.’s 2022 MTN (Issue
March 29, 2022 to March 29, 2023 on time.
2)
Zhejiang China Commodities City
On July 20, 2023, the Company paid the holders of "22 Zhejiang Yiwu CCC MTN003" the interest from July
Group Co., Ltd.'s 2022 MTN (Issue
20, 2022 to July 20, 2023 on time.
3)
Zhejiang China Commodities City On May 19, 2023, the Company paid the holders of "22 Zhejiang Yiwu CCC SCP005" the interest from
Group Co., Ltd.’s 2022 Super September 21, 2022 to May 19, 2023 on time.
116 / 289
2023 Annual Report
Short-term Financing Bond (Issue
8)
Zhejiang China Commodities City
Group Co., Ltd.’s 2022 Super On June 23, 2023, the Company paid the holders of "22 Zhejiang Yiwu CCC SCP006" the interest from
Short-term Financing Bond (Issue October 26, 2022 to June 23, 2023 on time.
6)
Zhejiang China Commodities City
Group Co., Ltd.’s 2022 Super On March 22, 2023, the Company paid the holders of "22 Zhejiang Yiwu CCC SCP007" the interest from
Short-term Financing Bond (Issue November 22, 2022 to March 22, 2023 on time.
7)
Zhejiang China Commodities City
Group Co., Ltd.’s 2023 Super On September 15, 2023, the Company paid the holders of "23 Zhejiang Yiwu CCC SCP001" the interest
Short-term Financing Bond (Issue from March 20, 2023 to September 15, 2023 on time.
1)
Zhejiang China Commodities City
Group Co., Ltd.’s 2023 Super On November 10, 2023, the Company paid the holders of "23 Zhejiang Yiwu CCC SCP002" the interest from
Short-term Financing Bond (Issue May 17, 2023 to November 10, 2023 on time.
2)
117 / 289
2023 Annual Report
2. Issuer or investor option clause, investor protection clause trigger and enforcement
□Applicable √Not applicable
3. Intermediaries providing services for bond issuance and duration business
Name of the
Contact
Intermediary name Office address signing certified Contact number
person
public accountants
Building 4, No. 66 Anli
ZHOU
China Securities Co., Ltd. Road, Chaoyang / 19821224808
Dongpeng
District, Beijing
Shanghai Pudong No.12 Zhongshan East
/ XU Haokang 13732437619
Development Bank Co., Ltd. 1st Road, Shanghai
No. 69 Jianguomen
Agricultural Bank of China Inner Street,
/ JIN Leijun 13676813141
Limited Dongcheng District,
Beijing
No. 55 Fuxingmennei
Industrial and Commercial
Street, Xicheng District, / CAI Sixuan 13626693988
Bank of China Limited
Beijing
1788 Hongning Road,
Xiaoshan District, CHEN
ZheShang Bank Co., Ltd. / 13757985757
Hangzhou City, Guoyang
Zhejiang Province
China Construction Bank No. 25 Jinrong Street,
/ WU Yanting 15067057702
Corporation Xicheng District, Beijing
No. 345, Ningdong
Road, Yinzhou District,
Bank of Ningbo Co., Ltd. / CHEN Dan 13566797625
Ningbo City, Zhejiang
Province
Changes to the above intermediaries
□Applicable √Not applicable
4. Use of raised funds at the end of the reporting period
√Applicable □Not applicable
Unit: RMB 100 million
Whether it is
Operation
Rectification consistent with
of the
Total of illegal the purpose,
special
amount Amount Amount use of use plan and
Name of bond account for
of funds used unused raised other
raised
raised funds (if agreements
funds (if
any) promised in the
any)
prospectus
Zhejiang China Commodities City
Group Co., Ltd.’s 2022 MTN 10 10 - NA NA Yes
(Issue 1)
Zhejiang China Commodities City
Group Co., Ltd.’s 2022 MTN 5 5 - NA NA Yes
(Issue 2)
Zhejiang China Commodities City
Group Co., Ltd.'s 2022 MTN 5 5 - NA NA Yes
(Issue 3)
118 / 289
2023 Annual Report
Zhejiang China Commodities City
Group Co., Ltd.’s 2023 Super
10 10 - NA NA Yes
Short-term Financing Bond (Issue
3)
Zhejiang China Commodities City
Group Co., Ltd. 2023 Super
10 10 - NA NA Yes
Short-term Financing Bond (Issue
4)
Zhejiang China Commodities City
Group Co., Ltd. 2023 Super
10 10 - NA NA Yes
Short-term Financing Bond (Issue
5)
The progress and operational benefits of raised funds used for construction projects
□Applicable √Not applicable
Explanation on changing the use of the above-mentioned bonds raised during the reporting
period
□Applicable √Not applicable
Other statements
□Applicable √Not applicable
5. Adjustment in credit rating results
□Applicable √Not applicable
Other statements
√Applicable □Not applicable
Shanghai New Century Credit Rating Investment Service Co., Ltd. issued the "Zhejiang
China Commodities City Group Co., Ltd. Credit Rating Report" [New Century Enterprise
Review (2023) 020239] on June 27, 2023. The Company's main credit rating is AAA. The
rating outlook is stable.
6. The implementation and changes of guarantees, debt repayment plans and other debt
repayment protection measures during the reporting period and their impacts
□Applicable √Not applicable
7. Explanation on other situations relevant to non-financial corporate debt financing
instruments
□Applicable √Not applicable
(iv) During the reporting period, the Company's loss in the scope of consolidated
statements exceeded 10% of its net assets as of the the end of the previous year.
□Applicable √Not applicable
(v) Interest-bearing debts other than bonds overdue at the end of the reporting period
□Applicable √Not applicable
(vi) The impact of violations of laws and regulations, company articles of association,
information disclosure management system, and provisions or commitments in the bond
prospectus on the rights and interests of bond investors during the reporting period
□Applicable √Not applicable
119 / 289
2023 Annual Report
(vii) The Company's accounting data and financial indicators for the past 2 years as
of the end of the reporting period
√Applicable □Not applicable
Unit: RMB 10,000
Major indicator 2023 2022 YoY change (%) Reasons for change
Mainly due to a year-on-year
Net profits attributable increase of RMB 1.571 billion in
to shareholders of the net profit attributable to
Listed Company with 246,868.60 176,508.76 39.86 shareholders of the listed
non-recurring items company, and a year-on-year
excluded increase of RMB 868 million in
non-recurring gains and losses
Current ratio 47.66% 42.33% Up 5.33 ppt
Quick ratio 38.57% 31.61% Up 6.96 ppt
Debt-to-asset ratio (%) 51.12 52.41 Down 1.29 ppt
EBITDA to total debt
0.48 0.29 65.52
ratio
Interest coverage ratio 12.91 5.09 153.63
Cash interest
7.75 6.60 17.48
protection multiple
EBITDA-to-interest
16.20 7.80 107.71
coverage ratio
Loan repayment rate
100 100 -
(%)
Interest payment rate
100 100 -
(%)
II. Convertible corporate bonds
□Applicable √Not applicable
120 / 289
2023 Annual Report
Section IX. Financial Report
I. Auditor’s report
√Applicable □Not applicable
Ernst & Young Hua Ming (2024)S Z No. 70009137-B01
Zhejiang China Commodities City Group Co., Ltd.
All the shareholders of Zhejiang China Commodities City Group Co., Ltd.
1. Audit opinion
We have audited the financial statements of Zhejiang China Commodities City Group
Co., Ltd., including the consolidated and company balance sheet as of December 31, 2023,
the consolidated and company income statement, statement of changes in shareholders'
equity, cash flow statement, and related notes to the financial statements for the year 2023.
We believe that the attached financial statements of Zhejiang China Commodities City
Group Co., Ltd. have been prepared in accordance with the Accounting Standards for
Business Enterprises in all material respects, and fairly reflect the consolidated and
company financial position of Zhejiang China Commodities City Group Co., Ltd. as of
December 31, 2023, as well as the consolidated and company operating results and cash
flows for the year then ended.
2. Basis of audit opinion
We conducted our audit in accordance with the Auditing Standards for Chinese Certified
Public Accountants. The section “CPAs’ Responsibility for Audit of Financial Statements” in
the audit report further describes on our responsibilities under these standards. In
accordance with the CPA Code of Ethics in China, we are independent of Zhejiang China
Commodities City Group Co., Ltd. and have performed other responsibilities in respect of
professional ethics. We believe that the audit evidence we have acquired is sufficient and
effective, providing a reasonable basis for our opinion.
3. Key audit matters
Key audit matters are matters that we believe are the most important matters for the
audit of the financial statements for 2018 based on professional judgment. The response to
such matters is based on the background of auditing the financial statements as a whole
and forming an audit opinion. We do not express independent opinions on such matters.
This was also the background for our description for how every matter below was responded
in the audit.
We have fulfilled the responsibilities described in the "Certified Accountants'
Responsibilities for the Audit of Financial Statements" section of this report, including
those related to these key audit matters. Correspondingly, our audit work included the
implementation of audit procedures designed to deal with the assessed risk of material
misstatement in the financial statements. The results of our audit procedures, including the
procedures performed in response to the following key audit matters, provide a basis for
the expression of the audit opinion in the financial statements as a whole.
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2023 Annual Report
3. Key audit matters (continued)
Key audit matters: Audit response to the matter:
Impairment of non-goodwill long-term assets with certain useful life
On December 31, 2023, the book During the audit process, our procedures
value of non-goodwill long-lived assets for assessing the impairment of non-
(hereinafter collectively referred to as goodwill long-term assets with a useful life
"long-term assets") such as fixed include:
assets, investment real estate, land 1. Based on our understanding of the
use rights, construction in progress, business of the Company and its
right-of-use assets and long-term subsidiaries and the provisions of the
prepaid expenses attributable to the Enterprise Accounting Standards, evaluate
market and supporting hotels, the management's identification of each
exhibition halls and business buildings asset group and the judgment of
of Zhejiang China Commodities City impairment signs for each asset group;
Group Co., Ltd. was RMB 19.78998 2. With the assistance of internal valuation
billion, accounting for 55% of the total experts, we assessed the reasonableness
consolidated assets of Zhejiang China of the major assumptions and evaluation
Commodities City Group Co., Ltd. methods used by the Group management,
Zhejiang China Commodities City like discount rates;
Group Co., Ltd. needs to review the 3. We assessed the reasonableness of key
recoverable amount of assets or asset assumptions such as estimated sales
groups when identifying whether there income, gross profit, operating costs, and
are signs of impairment in the above- disposal value predictions at the end of the
mentioned long-term assets and useful life of related assets in the future
conducting impairment tests on long- years, and checked basic data on the
term assets with signs of impairment. present value of expected future cash flows
The management needs to make with relevant supporting evidence.
significant judgments and estimates to 4. We compared and analyzed the actual
determine the key assumptions used in performance of the current year with the
predicting the present value of future predicted performance of the previous
cash flows, such as sales revenue, year;
gross profit, operating costs, disposal 5. We have checked the adequacy and
value prediction at the end of the useful completeness of the relevant disclosures in
life of related assets, and discount rate. the notes to the financial statements of
The evaluation process is complex, so Zhejiang China Commodities City Group
we identify them as key audit items. Co., Ltd.
The relevant information has been
disclosed in Note V. 40 and Note VII.
20, 21, 22, 25, 26, and 28 to the
financial statements.
122 / 289
2023 Annual Report
3. Key audit matters (continued)
Key audit matters: Audit response to the matter:
Recognition of revenue from sales of goods
The operating revenue of Zhejiang For the recognition of revenue from sales of
China Commodities City Group Co., goods, our audit procedures mainly
Ltd. mainly comes from commodity include:
sales, shop use right and supporting 1. We have understood and evaluated the
services for operation, hotel design effectiveness of key controls in the
accommodation and catering services, management process related to sales of
leasing business, etc., among which goods business revenue, and tested its
commodity sales revenue accounts for operational effectiveness;
a relatively high proportion. 2. We select a sample to check the sales
contract, identify the terms and conditions
In 2023, the operating revenue of the of the contract related to the transfer of
Group was RMB 11.29969 billion, of control of the sold goods, and evaluate
which the sales revenue of goods was whether the timing of the revenue
RMB 6.80806 billion, accounting for recognition of your group complies with the
60% of the operating revenue. The requirements of the Accounting Standards
group recognizes incomes when it has for Business Enterprises;
fulfilled its performance obligations in 3. We obtained and carried out detailed
the contract, that is, the customer has testing by means of sampling, and
acquired the control over the relevant reviewed supporting documents related to
goods or services. revenue recognition, including orders,
Since revenue is one of the key receipt records, logistics documents, bank
performance indicators of the Group, receipts, invoices, and import and export
there may be an inherent risk that the data of the electronic port data system, etc.;
management of the Group may 4. According to the characteristics and
achieve specific goals or expectations nature of customer transactions, we select
through inappropriate revenue samples to confirm the amount of sales
recognition. We identified the revenue revenue and the balance of receivables to
recognition of the Group's customers;
merchandise sales business as a key 5. We analyzed fluctuations in revenue,
audit matter. cost, and gross profit, and compared them
with the gross profit margin of companies in
For relevant information, please refer the same industry to evaluate the rationality
to Note V. Significant Accounting of changes in revenue-related indicators;
Policies and Estimates and Note VII. 6. We conducted background checks and
61 to the consolidated financial visits to important customers in the sales of
statements. goods;
7. We used a sampling method to check the
sales revenue confirmed before and after
the balance sheet date to supporting
documents such as customer receipts to
assess whether the sales revenue is
recognized in the appropriate period; and
5. We checked the adequacy and
completeness of the relevant disclosures of
the Group in the notes to the financial
statements.
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2023 Annual Report
4. Other information
Zhejiang China Commodities City Group Co., Ltd.’s management is responsible for other
information. Such information includes the information covered by the annual report, but the
financial statements and the audit report provided by us are excluded.
Our audit opinion released in the financial statements do not cover other information and
we do not release any form of assurance conclusion on other information.
Our responsibility is to read other information in conjunction with our audit of the financial
statements. During the process, we consider whether there is a material inconsistency or
other material misstatement in the financial statements with the knowledge acquired by us
during the audit process.
Based on the work we have performed, if we determine that there is a material
misstatement of other information, we should report the fact. We have nothing to report in
this aspect.
5. Responsibility of management and governance for financial statements
The management is responsible for preparing financial statements in accordance with
the provisions of the Accounting Standards for Business Enterprises to achieve fair
reflection, and designing, implementing and maintaining necessary internal controls
to prevent these financial statements from material misstatement arising from fraud or error
.
During preparing the financial statements, the management is responsible for assessing
the sustainability management capabilities of Zhejiang China Commodities City Group Co.,
Ltd., disclosing, as applicable, going-concern-related matters and applying the going-
concern assumption unless the management plans to liquidate Zhejiang China Commodities
City Group Co., Ltd. and discontinue operations or has no other realistic choices.
The governance is responsible for supervising the financial reporting process of
Zhejiang China Commodities City Group Co., Ltd.
6. Certified Public Accountants’ responsibility for audit of financial statements
Our goal is to obtain reasonable assurance about whether the financial statements are
free from material misstatement caused by fraud or error and express an opinion on these
financial statements based on our audits. The reasonable assurance is a guarantee at a high
level, but there is no guarantee that an audit performed in accordance with the auditing
standards will always identify existing material misstatement. Misstatements may be caused
by fraud or error. Misstatement is generally considered to be material if it is reasonably
expected that the misstatement, alone or aggregated, may affect the financial decision made
by the users of the financial statements based on the financial statements.
We applied professional judgment and professional skepticism during conducting audit
work in accordance with the Auditing Standards for CPA while performing following works:
(1) Identifying and evaluating the risk of material misstatements of financial
statements for fraud or error designing and implementing audit procedures to
deal with these risks and obtaining adequate and appropriate audit evidence as
a basis for release of our audit opinion. As fraud may involve collusion, forgery,
124 / 289
2023 Annual Report
willful omission, misrepresentation or override of internal control, the risk of not
discovering a material misstatement due to fraud is higher than the risk of not
discovering a material misstatement resulting from an error.
(2) Understanding the internal control related to the audit in order to design the
appropriate audit procedures.
(3) Evaluating the appropriateness of the accounting policies selected by
management level and the reasonableness of accounting estimates and related
disclosures.
(4) Concluding the appropriateness of management level’s use of the going concern
assumption while drawing a conclusion as to whether there is any material
uncertainty about the issues or circumstances that may cause major doubts
about the ability of the Zhejiang China Commodities City Group Co., Ltd. to
continue as a going concern on basis of the audit evidence acquired. If we
conclude that there is a significant uncertainty, the auditing standards require us
to remind user of the statements of the relevant disclosures in the financial
statements in the audit report. If the disclosures are inadequate, we should
release an unqualified opinion. Our conclusion is based on the information
available by the date of the audit report. However, future events or circumstances
may result in Zhejiang China Commodities City Group Co., Ltd. being unable to
continue as a going concern.
(5) Evaluating the overall presentation, structure and content (including disclosure)
of the financial statements as well as whether the financial statements are a fair
reflection of the related transactions and matters.
(6) Obtaining adequate and appropriate audit evidence on the financial information
of the entities or business activities in Zhejiang China Commodities City Group
Co., Ltd. to express an opinion on the financial statements. We are responsible
for directing, supervising and implementing the Group’s audit and assume full
responsibility for the audit opinion.
6. The Responsibility of Certified Public Accountants for Auditing Financial
Statements (Continued)
We have communicated with the governance on the matters such as the scope and
timing of audit and major audit findings, including the notable defects of internal control
identified in our audit.
We also provided a statement to the governance that we had complied with the
professional ethics requirements related to independence, and communicated with the
governance all relationships and other matters that may be reasonably believed to affect our
independence, and related preventive measures (if applicable) .
In the matters communicated with the governance, we determined which matters should
be the most important to the audit of the financial statements of the current period, and
should constitute the key audit matters accordingly. We described such matters in the audit
report, unless laws and regulations had prohibited public disclosure of these matters, or in
rare cases, we determined that such matters should not be communicated in the audit report
if the negative consequences of communicating a matter in the audit report are reasonably
expected to outweigh the public interests.
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2023 Annual Report
Ernst & Young Hua Ming C Chinese Certified Public Accountant: TAN Chaohui
ertified Public Accountants (Project Partner)
(special general partnership)
Chinese Certified Public Accountant: LING Yuehan
Beijing, China April 15, 2024
126 / 289
2023 Annual Report
II. Financial statements
Consolidated Balance Sheet
December 31, 2023
Prepared by: Zhejiang China Commodities City Group Co., Ltd.
Unit: RMB
Item Note December 31, 2023 December 31, 2022
Current assets:
Cash and cash equivalents 2,922,735,320.61 1,991,298,971.30
Held-for-trading financial assets 15,130,895.00 62,331,000.66
Accounts receivable 592,857,795.09 210,750,725.36
Prepayments 986,062,615.10 606,057,048.25
Other receivables 115,279,387.63 419,398,092.62
Inventory 1,247,244,380.91 1,330,351,243.87
Other current assets 665,132,672.86 634,209,950.69
Total current assets 6,544,443,067.20 5,254,397,032.75
Non-current assets:
Debt investments 48,073,333.34 48,079,561.64
Long-term receivables 278,026,679.25 278,299,600.73
Long-term equity investment 7,022,779,506.25 6,033,472,919.92
Other equity instruments 556,897,379.17 499,200,803.85
investment
Other non-current financial 1,421,569,904.19 1,500,307,562.13
assets
Property investment 4,144,209,365.57 2,851,643,180.42
Fixed assets 4,940,523,363.51 5,220,882,784.47
Construction in progress 3,955,959,200.32 2,860,064,818.36
Right-of-use assets 180,873,833.84 217,702,910.81
Intangible assets 6,238,384,501.96 6,461,849,690.36
Development expenses 18,648,441.93 4,660,995.87
Goodwill 284,916,367.87 284,916,367.87
Long-term prepaid expenses 330,032,050.64 306,925,970.89
Deferred income tax assets 115,356,912.59 150,346,801.31
Other non-current assets 138,253,316.00 138,253,316.00
Total non-current assets 29,674,504,156.43 26,856,607,284.63
Total assets 36,218,947,223.63 32,111,004,317.38
Current liabilities:
Short-term borrowings 1,619,804,888.91 1,059,287,361.11
Accounts payable 1,390,254,849.27 1,191,314,404.15
Advances from customers 602,364,396.64 885,993,269.48
Contract liabilities 4,066,579,965.73 3,991,038,021.56
Payroll payable 148,473,258.54 183,135,314.51
Tax payable 348,185,249.71 214,998,424.41
Other payables 1,862,720,723.00 1,325,596,105.43
Non-current liabilities due within 179,140,794.24 86,852,293.01
one year
Other current liabilities 3,514,924,439.85 3,473,907,027.00
Total current liabilities 13,732,448,565.89 12,412,122,220.66
Non-current liabilities:
Long-term borrowings 862,798,863.03 404,500,000.00
Bonds payable 3,498,452,484.47 3,497,416,819.75
Lease liabilities 176,832,206.26 206,623,735.97
Estimated liabilities - 110,620,306.10
Deferred income 160,432,656.23 103,582,129.94
127 / 289
2023 Annual Report
Deferred income tax liabilities 84,044,926.48 95,042,722.31
Total non-current liabilities 4,782,561,136.47 4,417,785,714.07
Total liabilities 18,515,009,702.36 16,829,907,934.73
Owners’ equity (or shareholders’ equity)
Paid-in capital (share capital) 5,484,334,176.00 5,486,074,176.00
Capital reserve 1,666,882,087.60 1,651,146,033.96
Less: treasury stocks 74,367,173.75 119,483,675.00
Other comprehensive income 23,394,697.32 -24,008,473.60
Surplus reserve 1,879,651,431.02 1,616,083,136.73
General risk reserve 4,893,646.97 1,038,991.13
Undistributed profits 8,703,604,953.04 6,651,440,591.35
Total equity attributable to owners 17,688,393,818.20 15,262,290,780.57
(shareholders) of the parent company
Minority interest 15,543,703.07 18,805,602.08
Total owners’ equity (or 17,703,937,521.27 15,281,096,382.65
shareholders’ equity)
Total liabilities and owners’ equity (or 36,218,947,223.63 32,111,004,317.38
shareholders’ equity)
Legal Representative: ZHAO Wenge Person in Charge of Finance: WANG Dong Head of
Finance Department: ZHAO Difang
128 / 289
2023 Annual Report
Balance Sheet of Parent Company
December 31, 2023
Prepared by: Zhejiang China Commodities City Group Co., Ltd.
Unit: RMB
Item Note December 31, 2023 December 31, 2022
Current assets:
Cash and cash equivalents 2,265,528,812.87 1,439,042,451.56
Accounts receivable 33,941,436.69 22,032,390.71
Prepayments 12,620,700.86 11,055,123.31
Other receivables 12,892,088.01 329,607,469.39
Inventory 5,231,744.36 4,599,032.34
Other current assets 3,970,347,163.03 3,650,862,939.52
Total current assets 6,300,561,945.82 5,457,199,406.83
Non-current assets:
Long-term receivables 31,863,990.46 36,763,731.53
Long-term equity investment 10,598,239,200.32 9,210,422,313.34
Other equity instruments 556,897,379.17 499,200,803.85
investment
Other non-current financial 121,590,140.86 142,053,056.97
assets
Property investment 4,115,810,590.81 2,803,007,146.68
Fixed assets 3,974,413,890.47 4,122,738,826.73
Construction in progress 2,555,580,061.19 2,318,993,733.00
Right-of-use assets 103,038,184.75 109,853,155.63
Intangible assets 5,610,536,305.45 5,872,460,683.86
Long-term prepaid expenses 308,633,101.63 275,795,256.99
Deferred income tax assets 95,863,135.46 137,378,229.19
Total non-current assets 28,072,465,980.57 25,528,666,937.77
Total assets 34,373,027,926.39 30,985,866,344.60
Current liabilities:
Short-term borrowings 1,619,804,888.91 1,059,287,361.11
Accounts payable 990,280,605.47 822,773,769.51
Advances from customers 550,737,695.05 861,860,467.12
Contract liabilities 3,003,146,485.10 3,032,044,768.16
Payroll payable 105,072,078.58 139,946,321.85
Tax payable 311,510,488.15 188,723,169.42
Other payables 1,501,163,670.08 1,075,413,151.71
Non-current liabilities due within 144,137,373.24 64,688,676.55
one year
Other current liabilities 3,763,504,419.10 3,726,398,088.04
Total current liabilities 11,989,357,703.68 10,971,135,773.47
Non-current liabilities:
Long-term borrowings 510,290,000.00 404,500,000.00
Bonds payable 3,498,452,484.47 3,497,416,819.75
Lease liabilities 107,858,015.51 110,999,791.68
Estimated liabilities - 110,620,306.10
Deferred income 102,160,656.23 103,582,129.94
Deferred income tax liabilities 11,434,544.88 13,046,676.14
Total non-current liabilities 4,230,195,701.09 4,240,165,723.61
Total liabilities 16,219,553,404.77 15,211,301,497.08
Owners’ equity (or shareholders’ equity)
Paid-in capital (share capital) 5,484,334,176.00 5,486,074,176.00
129 / 289
2023 Annual Report
Capital reserve 1,898,950,817.41 1,885,778,197.50
Less: treasury stocks 74,367,173.75 119,483,675.00
Other comprehensive income 2,453,961.13 -40,818,470.36
Surplus reserve 1,879,597,955.19 1,616,029,660.90
Undistributed profits 8,962,504,785.64 6,946,984,958.48
Total owners’ equity (or 18,153,474,521.62 15,774,564,847.52
shareholders’ equity)
Total liabilities and owners’ equity (or 34,373,027,926.39 30,985,866,344.60
shareholders’ equity)
Legal Representative: ZHAO Wenge Person in Charge of Finance: WANG Dong Head of
Finance Department: ZHAO Difang
130 / 289
2023 Annual Report
Consolidated Income Statement
January-December 2023
Unit: RMB
Item Note 2023 2022
I. Gross revenue 11,299,686,665.89 7,619,693,742.60
In which: operating revenue 11,299,686,665.89 7,619,693,742.60
II. Gross cost 9,398,535,258.86 7,545,489,637.45
In which: Operating cost 8,305,741,779.40 6,452,909,829.96
Taxes and surcharges 146,196,881.07 198,907,504.01
Sales expenses 240,304,021.01 197,679,981.09
Administrative expenses 559,531,630.75 529,466,270.71
R&D expenses 21,748,987.30 17,377,161.88
Financial expenses 125,011,959.33 149,148,889.80
In which: interest expenses 269,457,747.37 280,924,664.39
Interest income 67,433,620.70 132,216,250.44
Plus: other income 32,220,817.34 38,802,684.45
Investment income (loss is
1,068,443,512.48 1,041,524,864.25
indicated by “-”)
In which: income from investment in
associates and joint ventures
1,035,858,139.92 996,108,417.69
Changes in fair value (loss is indicated by “-”) -52,430,534.83 -5,262,476.59
Credit impairment loss (loss is indicated
by “-”)
2,136,951.63 -1,815,004.95
Income from disposal of assets (loss is
indicated by “-”)
153,800,256.65 -941,780.66
III. Operating profit (loss is indicated by
3,105,322,410.30 1,146,512,391.65
“-”)
Plus: income from non-operating
119,567,119.31 7,499,270.88
activities
Less: expenses from non-operating
16,817,970.47 4,204,829.93
activities
IV. Profits before tax (loss is indicated by
3,208,071,559.14 1,149,806,832.60
“-”)
Less: income tax 526,668,944.35 46,205,700.39
V. Net profits (net loss is indicated by “-”) 2,681,402,614.79 1,103,601,132.21
(I) Categorized by continuity of operation
1. Net profits from continuing operation (net loss is
indicated by “-”) 2,681,402,614.79 1,103,601,132.21
(II) Categorized by ownership
1. Net profits attributable to shareholders of the
parent company (net loss is indicated by “-”) 2,676,182,133.26 1,104,719,091.71
Minority interest(net loss is indicated by “-”) 5,220,481.53 -1,117,959.50
VI. Other comprehensive income net after
47,350,450.91 -84,931,872.51
tax
(I) Other comprehensive income net after tax
attributable to owners of the parent company 47,403,170.92 -84,859,208.62
1. Other comprehensive income that
43,272,431.49 -107,240,373.69
cannot be reclassified as profits or loss
(3) Changes in fair value of
43,272,431.49 -107,240,373.69
investments in other equity instruments
2 . Other comprehensive income that
4,130,739.43 22,381,165.07
will be reclassified as profits or loss
(1) Other comprehensive income that
can be transferred into profit and loss 885,012.68 4,060,531.46
under equity method
131 / 289
2023 Annual Report
(6) Difference arising from the
translation of foreign currency financial 3,245,726.75 18,320,633.61
statements
(II) Other comprehensive income net after tax
attributable to minority shareholders -52,720.01 -72,663.89
VII. Total comprehensive income 2,728,753,065.70 1,018,669,259.70
(I) Total comprehensive income attributable to
owners of the parent company
2,723,585,304.18 1,019,859,883.09
(II) Total comprehensive income
5,167,761.52 -1,190,623.39
attributable to minority shareholders
VIII. Earnings per share:
(I) Basic earnings per share 0.49 0.20
(II) Diluted earnings per share 0.49 0.20
In this period, if a business merger occurs under the same control, the net profit realized by the
merged party before the merger was 0, and the net profit realized by the merged party in the
previous period was 0.
Legal Representative: ZHAO Wenge Person in Charge of Finance: WANG Dong Head of
Finance Department: ZHAO Difang
132 / 289
2023 Annual Report
Income Statement of Parent Company
January-December 2023
Unit: RMB
Item Note 2023 2022
I. Operating revenue 3,641,735,456.48 1,941,582,561.02
Less: Operating cost 1,083,865,641.44 937,173,155.53
Taxes and surcharges 117,591,024.56 165,751,730.61
Sales expenses 201,312,475.87 198,120,081.31
Administrative expenses 281,496,634.12 269,059,168.76
Financial expenses 155,131,505.49 168,088,031.70
In which: interest expenses 267,263,958.81 281,287,879.72
Interest income 53,028,423.62 122,678,523.33
Plus: other income 15,193,514.90 13,079,397.88
Investment income (loss is indicated
1,086,824,054.17 948,235,020.44
by “-”)
In which: income from investment in
associates and joint ventures
1,077,697,693.84 932,395,547.67
Changes in fair value (loss is indicated by “-”) -20,288,211.11 -31,735,150.35
Credit impairment loss (loss is
351,544.77 -288,497.31
indicated by “-”)
Income from disposal of assets (loss
153,797,464.25 1,019,351.95
is indicated by “-”)
II. Operating profits (loss is indicated by “-”) 3,038,216,541.98 1,133,700,515.72
Plus: income from non-operating
113,602,463.95 6,488,569.32
activities
Less: expenses from non-operating
15,060,222.20 3,650,112.77
activities
III. Profits before tax (loss is indicated by
3,136,758,783.73 1,136,538,972.27
“-”)
Less: income tax 501,075,840.84 27,805,559.97
IV. Net profits (net loss is indicated by “-”) 2,635,682,942.89 1,108,733,412.30
(I) Categorized by continuity of operation(net loss is
indicated by “-”) 2,635,682,942.89 1,108,733,412.30
V. Other comprehensive income net after
43,272,431.49 -107,240,373.69
tax
(I) Other comprehensive income that
43,272,431.49 -107,240,373.69
cannot be reclassified as profit or loss
3. Changes in fair value of
43,272,431.49 -107,240,373.69
investments in other equity instruments
VI. Total comprehensive income 2,678,955,374.38 1,001,493,038.61
Legal Representative: ZHAO Wenge Person in Charge of Finance: WANG Dong Head of
Finance Department: ZHAO Difang
133 / 289
2023 Annual Report
Consolidated Cash Flow Statement
January-December 2023
Unit: RMB
Item Note 2023 2022
I. Cash flow from operating activities:
Cash received from sale of goods and 11,845,772,312.84 8,663,117,389.69
rendering of services
Cash received for taxes and 41,491,707.71 319,401,723.98
surcharges refunded
Other cash receipts relating to 297,775,481.56 434,715,976.74
operating activities
Sub-total of cash inflow from 12,185,039,502.11 9,417,235,090.41
operating activities
Cash paid for goods and services 8,652,781,970.44 6,134,704,401.79
Cash paid to and on behalf of 554,447,408.43 522,242,510.47
employees
Payments of taxes 608,080,567.96 804,862,955.73
Other cash payments relating to 524,669,705.36 555,334,508.65
operating activities
Sub-total of cash outflow from 10,339,979,652.19 8,017,144,376.64
operating activities
Net cash flow from operating 1,845,059,849.92 1,400,090,713.77
activities
II. Cash flow from investing activities:
Cash received from recovery of 126,377,336.34 990,875,547.75
investment
Cash received from investment 148,337,260.40 162,065,398.30
income
Net cash received from disposal of property, plant 200,359,058.71 13,483,158.58
and equipment, intangible assets and other long-term
assets
Net cash received from disposal of 12,482,830.94 -
subsidiaries and other business units
Other cash receipts relating to 799,906,608.09 1,259,208,113.00
investing activities
Sub-total of cash inflow from 1,287,463,094.48 2,425,632,217.63
investing activities
Cash paid to acquire and construct fixed 2,627,630,588.71 4,114,901,826.31
assets, intangible assets and other long-term
assets
Cash paid to acquire investments 21,106.36 319,039,459.91
Net cash paid by acquiring subsidiaries and - 312,616,964.11
other business units
Other cash paid related to investing 34,806,218.75 41,772,885.00
activities
Sub-total of cash outflow from 2,662,457,913.82 4,788,331,135.33
investing activities
Net cash flow from investing -1,374,994,819.34 -2,362,698,917.70
activities
III. Cash flow from financing activities:
Cash received from borrowings 7,593,601,904.18 14,419,431,088.06
Sub-total of cash inflow from 7,593,601,904.18 14,419,431,088.06
financing activities
Cash paid for debts repayment 6,495,200,000.00 14,774,484,040.95
Cash paid for distribution of dividends 594,916,647.30 652,035,197.63
or profits or payment of interest
134 / 289
2023 Annual Report
Other cash paid related to financing 43,000,125.88 50,128,807.59
activities
Sub-total of cash outflow from 7,133,116,773.18 15,476,648,046.17
financing activities
Net cash flow from financing 460,485,131.00 -1,057,216,958.11
activities
IV. Effect of foreign exchange rate -1,572,164.03 -5,442,221.79
changes on cash and cash
equivalents
V. Net increase in cash and cash 928,977,997.55 -2,025,267,383.83
equivalents
Plus: opening balance of cash and 1,981,200,941.64 4,006,468,325.47
cash equivalents
VI. Closing balance of cash and cash 2,910,178,939.19 1,981,200,941.64
equivalents
Legal Representative: ZHAO Wenge Person in Charge of Finance: WANG Dong Head of
Finance Department: ZHAO Difang
135 / 289
2023 Annual Report
Cash Flow Statement of Parent Company
January-December 2023
Unit: RMB
Item Note 2023 2022
I. Cash flow from operating activities:
Cash received from sale of goods and 3,642,520,110.94 2,757,913,722.02
rendering of services
Cash received for taxes and - 248,723,587.20
surcharges refunded
Other cash receipts relating to 168,942,827.40 223,084,596.77
operating activities
Sub-total of cash inflow from 3,811,462,938.34 3,229,721,905.99
operating activities
Cash paid for goods and services 726,854,063.79 562,286,375.43
Cash paid to and on behalf of 275,272,953.29 281,130,313.54
employees
Payments of taxes 381,133,816.82 710,961,271.08
Other cash payments relating to 374,603,821.61 403,432,298.40
operating activities
Sub-total of cash outflow from 1,757,864,655.51 1,957,810,258.45
operating activities
Net cash flow from operating activities 2,053,598,282.83 1,271,911,647.54
II. Cash flow from investing activities:
Cash received from recovery of 810,243.65 1,095,641,009.05
investment
Cash received from investment 132,091,654.39 128,261,072.18
income
Net cash received from disposal of property, plant 200,268,213.08 4,820,113.40
and equipment, intangible assets and other long-term
assets
Net cash received from disposal of - 9,380,000.00
subsidiaries and other business units
Other cash receipts relating to 675,140,683.19 1,221,892,831.00
investing activities
Sub-total of cash inflow from 1,008,310,794.31 2,459,995,025.63
investing activities
Cash paid to acquire and construct fixed assets, 1,719,700,944.06 3,579,149,669.56
intangible assets and other long-term assets
Cash paid to acquire investments 605,189,661.99 1,214,422,943.13
Other cash paid related to investing 34,806,218.75 -
activities
Sub-total of cash outflow from 2,359,696,824.80 4,793,572,612.69
investing activities
Net cash flow from investing -1,351,386,030.49 -2,333,577,587.06
activities
III. Cash flow from financing activities:
Cash received from borrowings 7,226,963,041.15 14,419,431,088.06
Sub-total of cash inflow from
7,226,963,041.15 14,419,431,088.06
financing activities
Cash paid for debts repayment 6,495,200,000.00 14,774,484,040.95
Cash paid for distribution of dividends 590,879,374.03 652,035,197.63
or profits or payment of interest
Other cash paid related to financing 16,609,497.18 26,540,591.93
activities
Sub-total of cash outflow from 7,102,688,871.21 15,453,059,830.51
financing activities
136 / 289
2023 Annual Report
Net cash flow from financing 124,274,169.94 -1,033,628,742.45
activities
IV. Effect of foreign exchange rate - -
changes on cash and cash
equivalents
V. Net increase in cash and cash 826,486,422.28 -2,095,294,681.97
equivalents
Plus: opening balance of cash and 1,431,822,390.59 3,527,117,072.56
cash equivalents
VI. Closing balance of cash and cash 2,258,308,812.87 1,431,822,390.59
equivalents
Legal Representative: ZHAO Wenge Person in Charge of Finance: WANG Dong Head of
Finance Department: ZHAO Difang
137 / 289
2023 Annual Report
Statement of Changes in Consolidated Owners’ Equity
January-December 2023
Unit: RMB
2023
Equity attributable to owners of the parent company
Item Minority Total owners’
Other interest equity
Paid-in capital Less: treasury General risk Undistributed
Capital reserve comprehensive Surplus reserve Sub-total
(share capital) stocks reserve profits
income
I. Balance at the
end of previous 5,486,074,176.00 1,651,146,033.96 119,483,675.00 -24,008,473.60 1,616,083,136.73 1,038,991.13 6,651,440,591.35 15,262,290,780.57 18,805,602.08 15,281,096,382.65
year
II. Opening
balance of the 5,486,074,176.00 1,651,146,033.96 119,483,675.00 -24,008,473.60 1,616,083,136.73 1,038,991.13 6,651,440,591.35 15,262,290,780.57 18,805,602.08 15,281,096,382.65
current year
III. YoY change
(decrease is -1,740,000.00 15,736,053.64 -45,116,501.25 47,403,170.92 263,568,294.29 3,854,655.84 2,052,164,361.69 2,426,103,037.63 -3,261,899.01 2,422,841,138.62
indicated by “-”)
(I) Total
comprehensive - - - 47,403,170.92 - - 2,676,182,133.26 2,723,585,304.18 5,167,761.52 2,728,753,065.70
income
(II)Owners’
contribution to
-1,740,000.00 15,736,053.64 -45,116,501.25 - - - - 59,112,554.89 - 59,112,554.89
and reduction in
capital
3. Amount of
share-based
-1,740,000.00 13,172,619.91 -45,116,501.25 - - - - 56,549,121.16 - 56,549,121.16
payment into
owner’s equity
4. Others - 2,563,433.73 - - - - - 2,563,433.73 2,563,433.73
(III) Profits
- - - - 263,568,294.29 3,854,655.84 -624,017,771.57 -356,594,821.44 - -356,594,821.44
distribution
1. Withdrawal of
- - - - 263,568,294.29 - -263,568,294.29 - - -
surplus reserve
2. Withdrawal of
provision for - - - - - 3,854,655.84 -3,854,655.84 - - -
general risks
3．Distribution
to owners (or - - - - - - -356,594,821.44 -356,594,821.44 - -356,594,821.44
shareholders)
138 / 289
2023 Annual Report
(VI) Others - - - - - - - - -8,429,660.53 -8,429,660.53
IV. Closing
balance of the 5,484,334,176.00 1,666,882,087.60 74,367,173.75 23,394,697.32 1,879,651,431.02 4,893,646.97 8,703,604,953.04 17,688,393,818.20 15,543,703.07 17,703,937,521.27
current period
2022
Equity attributable to owners of the parent company
Item Minority Total owners’
Other interest equity
Paid-in capital Less: treasury General risk Undistributed
Capital reserve comprehensive Surplus reserve Sub-total
(share capital) stocks reserve profits
income
I. Balance at
the end of 5,491,274,176.00 1,631,509,114.96 137,494,800.00 60,850,735.02 1,505,209,795.50 - 6,059,496,846.85 14,610,845,868.33 19,996,225.47 14,630,842,093.80
previous year
II. Opening
balance of the 5,491,274,176.00 1,631,509,114.96 137,494,800.00 60,850,735.02 1,505,209,795.50 - 6,059,496,846.85 14,610,845,868.33 19,996,225.47 14,630,842,093.80
current year
III. YoY
change
(decrease is -5,200,000.00 19,636,919.00 -18,011,125.00 -84,859,208.62 110,873,341.23 1,038,991.13 591,943,744.50 651,444,912.24 -1,190,623.39 650,254,288.85
indicated by
“-”)
(I) Total
comprehensive - - - -84,859,208.62 - - 1,104,719,091.71 1,019,859,883.09 -1,190,623.39 1,018,669,259.70
income
(II)Owners’
contribution to
-5,200,000.00 19,636,919.00 -18,011,125.00 - - - - 32,448,044.00 - 32,448,044.00
and reduction
in capital
3. Amount of
share-based
-5,200,000.00 19,636,919.00 -18,011,125.00 - - - - 32,448,044.00 - 32,448,044.00
payment into
owner’s equity
(III) Profits
- - - - 110,873,341.23 1,038,991.13 -512,775,347.21 -400,863,014.85 - -400,863,014.85
distribution
1. Withdrawal
of surplus - - - - 110,873,341.23 - -110,873,341.23 - - -
reserve
2. Withdrawal
of provision for - - - - - 1,038,991.13 -1,038,991.13 - - -
general risks
139 / 289
2023 Annual Report
3．Distribution
to owners (or - - - - - - -400,863,014.85 -400,863,014.85 - -400,863,014.85
shareholders)
IV. Closing
balance of the 5,486,074,176.00 1,651,146,033.96 119,483,675.00 -24,008,473.60 1,616,083,136.73 1,038,991.13 6,651,440,591.35 15,262,290,780.57 18,805,602.08 15,281,096,382.65
current period
Legal Representative: ZHAO Wenge Person in Charge of Finance: WANG Dong Head of Finance Department: ZHAO Difang
140 / 289
2023 Annual Report
Statement of Changes in Owners’ Equity of Parent Company
January-December 2023
Unit: RMB
2023
Other
Item Paid-in capital Less: treasury Undistributed
Capital reserve comprehensive Surplus reserve Total owners’ equity
(share capital) stocks profits
income
I. Balance at the end of previous
5,486,074,176.00 1,885,778,197.50 119,483,675.00 -40,818,470.36 1,616,029,660.90 6,946,984,958.48 15,774,564,847.52
year
II. Opening balance of the current
5,486,074,176.00 1,885,778,197.50 119,483,675.00 -40,818,470.36 1,616,029,660.90 6,946,984,958.48 15,774,564,847.52
year
III. YoY change (decrease is indicated
by “-”)
-1,740,000.00 13,172,619.91 -45,116,501.25 43,272,431.49 263,568,294.29 2,015,519,827.16 2,378,909,674.10
(I) Total comprehensive income - - - 43,272,431.49 - 2,635,682,942.89 2,678,955,374.38
(II)Owners’ contribution to and
-1,740,000.00 13,172,619.91 -45,116,501.25 - - - 56,549,121.16
reduction in capital
3. Amount of share-based payment
-1,740,000.00 13,172,619.91 -45,116,501.25 - - - 56,549,121.16
into owner’s equity
4．Others - - - - - - -
(III) Profits distribution - - - - 263,568,294.29 -620,163,115.73 -356,594,821.44
1. Withdrawal of surplus reserve - - - - 263,568,294.29 -263,568,294.29 -
2. Distribution to owner (or
- - - - - -356,594,821.44 -356,594,821.44
shareholders)
IV. Closing balance of the current
5,484,334,176.00 1,898,950,817.41 74,367,173.75 2,453,961.13 1,879,597,955.19 8,962,504,785.64 18,153,474,521.62
period
2022
Other
Item Paid-in capital Less: treasury Undistributed
Capital reserve comprehensive Surplus reserve Total owners’ equity
(share capital) stocks profits
income
I. Balance at the end of previous
5,491,274,176.00 1,866,141,278.50 137,494,800.00 66,421,903.33 1,505,156,319.67 6,349,987,902.26 15,141,486,779.76
year
II. Opening balance of the current
5,491,274,176.00 1,866,141,278.50 137,494,800.00 66,421,903.33 1,505,156,319.67 6,349,987,902.26 15,141,486,779.76
year
III. YoY change (decrease is indicated
by “-”)
-5,200,000.00 19,636,919.00 -18,011,125.00 -107,240,373.69 110,873,341.23 596,997,056.22 633,078,067.76
(I) Total comprehensive income - - - -107,240,373.69 - 1,108,733,412.30 1,001,493,038.61
(II)Owners’ contribution to and
-5,200,000.00 19,636,919.00 -18,011,125.00 - - - 32,448,044.00
reduction in capital
3. Amount of share-based payment
-5,200,000.00 19,636,919.00 -18,011,125.00 - - - 32,448,044.00
into owner’s equity
141 / 289
2023 Annual Report
(III) Profits distribution - - - - 110,873,341.23 -511,736,356.08 -400,863,014.85
1. Withdrawal of surplus reserve - - - - 110,873,341.23 -110,873,341.23 -
2. Distribution to owner (or
- - - - - -400,863,014.85 -400,863,014.85
shareholders)
IV. Closing balance of the current
5,486,074,176.00 1,885,778,197.50 119,483,675.00 -40,818,470.36 1,616,029,660.90 6,946,984,958.48 15,774,564,847.52
period
Legal Representative: ZHAO Wenge Person in Charge of Finance: WANG Dong Head of Finance Department: ZHAO Difang
142 / 289
2023 Annual Report
III. Basic information of the Company
1. Company profile
√Applicable □Not applicable
Zhejiang China Commodities City Group Co., Ltd. (the “Company”) is a company limited
by share and was incorporated on Dec 28, 1993 in Zhejiang province of the People’s Republic
of China. The RMB-denominated common A shares issued by the Company got listed on
Shanghai Stock Exchange on May 9, 2002. The Company's headquarters is located at No. 567
Yinhai Road, Futian Street, Yiwu City, Jinhua City, Zhejiang Province.
The Group’s main business activities: market development and operation and supporting
services, sales of commodities, provision of online trading platforms and services,
development and management of online trading market, etc., in the category of comprehensive
services.
The parent company of the Group is Yiwu China Commodities City Holdings Limited
(hereinafter referred to as “CCCH”) and the final controller of the Group is the State-owned
Assets Supervision and Administration Office of the People’s Government of Yiwu.
The financial statements were approved for release by the Board of Directors of the
Company on April 17, 2024. According to the Company's articles of association, these financial
statements are to be submitted to the general meeting of shareholders for deliberation.
IV. Basis of preparation of financial statements
1. Basis of preparation
The financial statements of the Company were prepared on a going-concern basis.
The financial statements were prepared in accordance with the Accounting Standards for
Enterprises-Basic Standards and the specific accounting standards, application guidelines,
interpretations and other related regulations promulgated and amended thereafter (collectively
referred to as “Accounting Standards”). In addition, the financial statements also disclose
relevant financial information in accordance with the Rule No. 15 for the Preparation and
Disclosure of Information by Companies Offering Securities to the Public - General Provisions
for Financial Reporting.
2. Going concern
√Applicable □Not applicable
As of December 31, 2023, after deducting the contractual liabilities and prepayments of
the Group's future revenue to be recognized through services or goods settlement, as well as
prepayments for goods or services that the Group would receive in the future, the Group's
current liabilities exceeded its current assets by RMB 3,505,123,751.42. The Board of
Directors of the Company has comprehensively considered the following sources of funds that
the Group can obtain: 1. The expected net cash inflows from operating activities in the next 12
months; 2. As of December 31, 2023, the credit limit unused from banking institutions of the
Group was RMB 4,745,500,000.00, of which RMB650,000,000.00 should be renewed within
the next 12 months. The board of directors of the Company is convinced that the available
credit line can be re-approved when it expires based on past experience and good reputation;
3. In view of the credit history of the group, other available financing channels from banks and
other financial institutions; 4. , The Group's controlling shareholder CCCH has promised to
continue to provide sufficient financial support in the foreseeable future.
After evaluation, the Board of Directors of the Company believed that the Group had
sufficient resources to continue operating for a foreseeable future period of no less than 12
months from the end of this reporting period. Therefore, the Board of Directors of the Company
continued to prepare the financial statements of the Group for the year 2023 based on going
concern.
V. Important Accounting Policies and Accounting Estimates
Reminders on specific accounting policies and accounting estimates:
√Applicable □Not applicable
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The Group has formulated specific accounting policies and estimates based on the actual
production and operation characteristics, mainly reflected in bad debt provisions for accounts
receivable, inventory valuation methods, provision for inventory depreciation, fixed asset
depreciation, intangible asset amortization, revenue recognition and measurement, division of
investment real estate and fixed assets, and the useful life and residual value of fixed assets.
1. Statement of compliance with the Accounting Standards
The financial statements prepared by the Group comply with the requirements of the
Accounting Standards, and truly and completely reflect the Company’s financial conditions,
operating results, changes in shareholders’ equity, cash flows and other related information.
2. Accounting period
The fiscal year of the Group starts from January 1 until December 31 of each calendar
year.
3. Operating cycle
√Applicable □Not applicable
The business cycle of the Company is relatively short, and 12 months are used as the
standard for defining the liquidity of assets and liabilities.
4. Functional currency
The Company’s functional currency is RMB.
The subsidiaries, joint ventures and associates of the Group determine their functional
currencies at their own discretion based on the main economic environments in their places of
businesses and convert all amounts into RMB while preparing financial statements.
5. Method for determining importance criteria and selection basis
√Applicable □Not applicable
Item Importance criteria
Important debt investment Amount greater than RMB 10 million
Important construction in progress Amount greater than RMB 10 million
Important minority shareholders’ The total assets are greater than RMB 100 million
interest and the minority shareholder's shareholding ratio is
greater than or equal to 5%
Important joint ventures or associates Investment targets that align with the Group's
development strategy
6. Accounting methods for merger of the enterprises under common control and merger
of the enterprises not under common control
√Applicable □Not applicable
The mergers of enterprises are divided into the mergers of the enterprises under common
control and mergers of the enterprises not under common control.
Mergers of the enterprises under common control
If the enterprises participating in the merger are ultimately controlled by the same party or
the same parties before and after the merger, and the control is not temporary, the deal is a
business merger under the same control.
The assets and liabilities acquired by the merging party in a merger of the enterprises
under common control (including the goodwill formed through the acquisition of the merged
party by the ultimate controller) are accounted according to the book value thereof in the
ultimate controller’s financial statements on the date of merger. For the difference between the
book value of the net assets obtained by the merging party and the book value of the
consideration paid for the merger (or the total nominal value of the shares issued), the share
capital premium in the capital reserve shall be adjusted; if the share capital premium is not
sufficient to absorb the difference, the retained earnings shall be adjusted.
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Mergers of enterprises not under common control
If the enterprises participating in the merger are not under the ultimate control of the same
party or the same parties before and after the merger, the deal is business merger not under
the same control.
The acquiree’s identifiable assets, liabilities and contingent liabilities obtained from the
merger of the enterprises not under common control are measured at their fair values on the
date of acquisition. The difference between the merger cost and the fair value share of the
identifiable net assets obtained from the acquired party in the merger is recognized as goodwill
and subsequently measured at cost minus accumulated impairment losses. If the merger cost
is less than the fair value share of the identifiable net assets obtained from the acquired party
in the merger, the fair values of the identifiable assets, liabilities, and contingent liabilities
obtained from the acquired party, as well as the measurement of the merger cost, shall be
reviewed. If the merger cost is still less than the fair value share of the identifiable net assets
obtained from the acquired party in the merger, the difference shall be recognized in gains and
losses for this period.
7. Judgment criteria for control and preparation methods for consolidated financial
statements
√Applicable □Not applicable
The financial statements to be consolidated is determined on the basis of control,
including those of the Company and all of its subsidiaries. Subsidiaries refer to the entities
controlled by the Company (including the severable parts of enterprises and invested entities,
and the structured entities controlled by the Company). When and only when the investor
possesses the following three elements, the investor can control the investee: the investor has
the power over the investee; enjoy variable returns due to participation in related activities of
the invested party; ability to exercise power over the invested party to influence its return
amount.
If the accounting policies or accounting periods adopted by the subsidiary and the
Company are inconsistent, necessary adjustments shall be made to the subsidiary's financial
statements in accordance with the Company's accounting policies and accounting periods
when preparing the consolidated financial statements. Assets, liabilities, equity, income,
expenses and cash flows generated from all deals between companies within the Group are
fully offset at the time of merger.
If the amount of loss for the current period attributable to the minority shareholders of a
subsidiary exceeds the minority shareholders’ share in the opening balance of shareholders’
equity in the subsidiary, the excess will still be recognized against minority interest.
For a subsidiary acquired through a business merger not under the same control, the
operating results and cash flows of the acquiree will be included in the consolidated financial
statements from the day when the Group acquires control, until the control of the Group
ceases. In the preparation of consolidated financial statements, adjustments will be made to
the financial statements of the subsidiary based on the fair value of its identifiable assets,
liabilities or contingent liabilities determined on the date of acquisition.
For a subsidiary acquired through a business merger under the same control, the
operating results and cash flows of merged party will be included in the consolidated financial
statements since the beginning of the current period of the merger. In the preparation of
consolidated financial statements, adjustments will be made to the related items in its previous
financial statements as if the reporting entity formed after the merger has been existing as from
the ultimate controller starts to exercise control.
In case of any change to one or more elements of the control due to the changes in
related facts and circumstances, the Group will re-evaluate whether to control the investee.
Without loss of control, changes in minority shareholders' equity are regarded as equity
transactions.
8. Classification of joint arrangements and accounting treatment of joint operations
√Applicable □Not applicable
Joint arrangements are divided into joint operations and joint ventures. Joint operation
refers to a joint arrangement in which the parties thereto enjoy the assets relating to such
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arrangement and assume the liabilities relating to such arrangement. Joint venture refers to a
joint arrangement in which the parties thereto only enjoy rights to the net assets in this
arrangement.
Each party to a joint arrangement recognizes the following items relating to its share in the
joint operation: assets held individually by it and assets held jointly based on its share;
liabilities assumed individually by it and liabilities assumed jointly based on its share; revenue
from the sale of its share in the output of the joint operation; revenue from the sale of the
output of the joint operation based on its share; expenses incurred individually by it and
expenses incurred by the joint operation based on its share.
9. Criteria for the identification of cash and cash equivalents
Cash refers to the group’s cash on hand and deposits that can be used for payment at any
time; cash equivalent refers to the investment held by the Group with a short term, strong
liquidity, easy to convert into cash with a known amount, and with low risk of value changes.
10. Foreign currency transactions and translation of foreign currency financial
statements
√Applicable □Not applicable
For foreign currency transactions, the Group will translate the foreign currency amounts
into its functional currency amounts.
In the initial recognition of a foreign currency transaction, the foreign currency amount is
translated to a functional currency amount according to the spot exchange rate on the date of
transaction. On the balance sheet date, the foreign currency monetary items are translated
according to the spot exchange rate on the balance sheet date. The translation difference
between settlement and monetary items is recognized in the profit or loss for the current
period, except for the difference arising from the special foreign currency borrowing relating to
the acquisition and construction of the assets qualified for capitalization, which will be treated
based on the principles for the capitalization of borrowing expenses. Foreign currency non-
monetary items measured at historical cost are still converted using the exchange rate used at
initial recognition, without changing their accounting base currency amount. The foreign
currency non-monetary items measured by fair value are translated according to the spot
exchange rate on the fair value determination date and the difference arising therefrom is
recognized in the profit or loss or other comprehensive income for the current period based on
the nature of the items.
The Group translates the functional currency of its foreign business into RMB while
preparing the financial statements. The assets and liabilities items in the balance sheet are
translated according to the spot exchange rate on the balance sheet date, the shareholders’
equity items are translated according to the spot exchange rate at the occurrence of the items
except for “undistributed profits”; revenue and expenses items in the income statement are
translated according to the average exchange rate during the period in which the transaction
happens (conversion shall be at the spot rate on the date of the transaction, unless exchange
rate fluctuations make such conversion inappropriate). The translation differences of foreign
currency statements arising from the above translations are recognized as other
comprehensive income. For the disposal of foreign business, other comprehensive income
relating to the foreign business is recognized in the profit or loss of the disposal for the current
period and is calculated pro rata for partial disposal.
Foreign currency cash flows and cash flows of overseas subsidiaries are converted using
the average exchange rate for the period in which the cash flows occur (unless exchange rate
fluctuations make the exchange rate inappropriate, the spot exchange rate on the day the cash
flows occur) is used for conversion. The amount of impact of the changes in exchange rate on
cash is separately stated in the cash flow statement as an adjustment item.
11. Financial instruments
√Applicable □Not applicable
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Financial instruments refer to the contracts which form financial assets of an enterprise
and form financial liabilities or equity instruments of other entities.
Recognition and de-recognition of financial instruments
The Group recognizes a financial asset or financial liability at the time of becoming a party
to a financial instrument contract.
The Group will derecognize a financial asset (or a part of the financial asset or a part of a
group of similar financial assets), i.e. charging off the asset from its account and balance
sheet, if:
(1) The right to receive cash flows from financial assets expires;
(2) The Company transferred the right to receive cash flows from financial assets, or
assumed the obligation to timely and fully pay the received cash flows to third parties under a
"pass through agreement"; and essentially transferred almost all the risks and rewards of
ownership of the financial asset, or relinquished control over the financial asset even though it
neither transferred nor retained almost all the risks and rewards of ownership.
If a financial liability has been fulfilled, revoked or expired, it will be derecognized. If an
existing financial liability is replaced by the same creditor with another financial liability under
substantially different terms or the terms of the existing liability are substantially modified in
whole, the existing liability will be derecognized and the new liability will be recognized, and the
difference will be recognized in the profit or loss for the current period.
For the transactions of financial assets in regular ways, the recognition and de-recognition
thereof will be conducted based on the accounting on the transaction date. Buying and selling
financial assets in a conventional manner refers to the purchase or sale of financial assets in
accordance with contractual provisions, and the terms of the contract stipulate that financial
assets are delivered according to the time schedule usually determined by regulations or
market practices. The transaction date refers to the date when the Group promises to buy or
sell the financial assets.
Classification and measurement of financial assets
The financial assets of the Group are classified at initial recognition based on the business
model of managing financial assets and the contractual cash flow characteristics of financial
assets as financial assets measured at amortized cost, financial assets measured at fair value
with changes recognized in other comprehensive income, and financial assets measured at fair
value with changes recognized in current period profit and loss. All affected related financial
assets will be reclassified only when the Group changes its business model for managing
financial assets.
If a financial asset is measured by fair value at initial recognition, but the accounts
receivable or notes receivable from the sale of goods or rendering of service do not include
significant financing components or the financing components with a term no longer than one
year are not considered, the initial measurement will be made based on the transaction price.
For the financial assets that are measured by fair value and of which the changes in fair
value are recognized in the profit or loss for the current period, the related transaction fees will
be directly recognized in the profit or loss for the current period; the related transaction fees of
other financial assets will be recognized in the initially recognized amounts thereof.
The subsequent measurement of financial assets depends on the classification thereof:
Investment in debt instruments measured by amortized cost
A financial asset is classified into those measured by amortized cost, if the business
model for the management of the asset is for the purpose of collecting contractual cash flow;
and the terms of the contract of the asset stipulate that the cash flow generated on the specific
date is only the repayment of principal and the payment of interest on the outstanding principal.
The interest income of such financial assets is recognized with the effective interest method,
and the gains or losses from the de-recognition, modification or impairment thereof are all
recognized in the profit or loss for the current period.
Investment in the equity instruments that are measured by fair value and of which
the changes in fair value are recognized in other comprehensive income
The Group has irrevocably chosen to designate some non-trading equity instrument
investments as the financial assets that are measured by fair value and of which the changes
in fair value are recognized in other comprehensive income. Only the related dividend income
(except for the dividend income expressly acting as a recovery of investment cost) is
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2023 Annual Report
recognized in the profit or loss for the current period, while the subsequent changes in fair
value are recognized in other comprehensive income, and no provision is required for
impairment. When the financial assets are derecognized, the accumulated gains or losses
previously recognized in other comprehensive income will be moved out of other
comprehensive income and recognized in retained earnings.
Financial assets that are measured by fair value and of which the changes in fair
value are recognized in the profit or loss for the current period
The financial assets other than the above financial assets measured by amortized cost
and the above financial assets that are measured by fair value and of which the changes in fair
value are recognized in other comprehensive income are classified as the financial assets that
are measured by fair value and of which the changes in fair value are recognized in the profit
or loss for the current period. Those financial assets are subsequently measured by fair value
and all changes in the fair value thereof are recognized in the profit or loss for the current
period.
Classification and measurement of financial liabilities
The financial liabilities of the Group are classified at initial recognition as financial liabilities
measured at fair value through profit or loss, and financial liabilities measured at amortized
cost. For financial liabilities measured at fair value through profit or loss, the relevant
transaction costs are directly recognized in profit or loss, while the relevant transaction costs of
financial liabilities measured at amortized cost are recognized in their initial recognition
amount.
The subsequent measurement of financial liabilities depends on the classification thereof:
Financial liabilities measured at fair value through profit or loss
The financial liabilities that are measured by fair value and of which the changes in fair
value are recognized in the profit or loss for the current period include financial liabilities held
for trading (including the derivative instruments as financial liabilities) and the liabilities that are
designated at initial recognition as the financial liabilities that are measured by fair value and of
which the changes in fair value are recognized in the profit or loss for the current period. The
financial liabilities held for trading (including the derivative instruments as financial liabilities)
are subsequently measured by fair value and all changes in the fair value are recognized in the
profit or loss for the current period.
Financial assets measured at amortized cost
Those financial liabilities are subsequently measured by amortized cost with the effective
interest method.
Impairment of financial instruments
The Group has treated and recognized the impairment of the financial assets measured by
amortized cost based on the expected credit loss.
For receivables that do not contain significant financing components, the Group measures
the loss provision based on the amount of expected credit loss equivalent to the entire duration
under a simplified measurement method,
For the financial assets not measured with the simplified method, the Group evaluates on
each balance sheet date whether their credit risks have increased significantly since the initial
recognition. If the credit risk of a financial asset has not increased significantly since the initial
recognition, the asset is in the first stage and the Group will make provision for loss based on
the amount of expected credit loss within the coming 12 months and calculate interest income
based on the book balance and effective interest rate; if the credit risk has increased
significantly since the initial recognition, but credit has not been impaired, the asset is in the
second stage and the Group will make provision for loss equivalent to the amount of expected
credit loss during the entire term and calculate interest income based on the book balance and
effective interest rate; if credit has been impaired after the initial recognition, the asset is in the
third stage and the Group will make provision for loss equivalent to the amount of expected
credit loss during the entire term and calculate interest income based on the amortized cost
and effective interest rate.
The Group evaluates the expected credit losses of financial instruments on the individual
and group bases. The Group considers the credit risk characteristics of different customers,
evaluates the expected credit losses of accounts receivable based on common risk
characteristics and aging combinations, and determines the aging based on the invoicing date.
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Except for financial instruments that are evaluated for expected credit losses in the
aforementioned combination, the Group assesses their expected credit losses in a single item.
Please refer to Note XII. 1. Risk of Financial Instruments for the disclosure of the criteria
for significantly increasing credit risk and the definition of credit impairment assets that have
occurred by the Group.
The factors reflected in the Group's method of measuring expected credit losses of
financial instruments include: unbiased probability-weighted average amount determined by
evaluating a series of possible outcomes; time value of money; no unnecessary additional cost
or effort on the balance sheet date Reasonable and evidence-based information that is readily
available about past events, current conditions and forecasts of future economic conditions.
When the Group no longer reasonably expects that it can recover the contractual cash
flow of a financial asset in whole or in part, it will directly write down the book balance of the
asset.
12. Notes receivable
√Applicable □Not applicable
Determination and accounting treatment of the expected credit loss of notes receivable
□Applicable √Not applicable
Combination classification and determination basis of combined provision for bad debt
based on credit risk characteristics
□Applicable √Not applicable
Methods for calculating aging based on the credit risk characteristics combination
confirmed by aging
□Applicable √Not applicable
Judgment criteria for individual provision for bad debt based on individual provision
□Applicable √Not applicable
13. Accounts receivable
√Applicable □Not applicable
Determination and accounting treatment of the expected credit loss of accounts
receivable
√Applicable □Not applicable
Please refer to Note V - Important Accounting Policies and Accounting Estimates - 11.
Financial Instruments.
Combination classification and determination basis of combined provision for bad debt
based on credit risk characteristics
√Applicable □Not applicable
Please refer to Note V - Important Accounting Policies and Accounting Estimates - 11.
Financial Instruments.
Methods for calculating aging based on the credit risk characteristics combination
confirmed by aging
√Applicable □Not applicable
Please refer to Note V - Important Accounting Policies and Accounting Estimates - 11.
Financial Instruments.
Recognition criteria for individual provision of bad debt
√Applicable □Not applicable
Please refer to Note V - Important Accounting Policies and Accounting Estimates - 11.
Financial Instruments.
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14. Accounts receivable financing
□Applicable √Not applicable
15. Other receivables
√Applicable □Not applicable
Determination and accounting treatment of the expected credit loss of other receivables
√Applicable □Not applicable
Please refer to Note V - Important Accounting Policies and Accounting Estimates - 11.
Financial Instruments.
Combination classification and determination basis of combined provision for bad debt
based on credit risk characteristics
√Applicable □Not applicable
Please refer to Note V - Important Accounting Policies and Accounting Estimates - 11.
Financial Instruments.
Methods for calculating aging based on the credit risk characteristics combination
confirmed by aging
□Applicable √Not applicable
Judgment criteria for individual provision for bad debt based on individual provision
□Applicable √Not applicable
16. Inventory
√Applicable □Not applicable
Inventory category, valuation method for issuance, inventory system, amortization
method for low-value consumables and packaging materials
√Applicable □Not applicable
Inventory includes raw materials, work-in-progress materials, finished goods, real estate
development costs and real estate development products.
Inventory is initially measured by cost. The costs of inventory except development costs and
development products include the procurement cost, processing cost and other costs. The actual
costs of items out of inventory are determined with the weighted average method. Work-in-
progress materials include low-value consumables and packages, which are amortized with the
one-off charging-off method.
Development costs refer to the properties that have not been completed and are developed
for the purpose of being sold. Development products refer to the properties that have been
completed and are ready for sale. The actual costs of real estate development costs and
development products include the land acquisition cost, expenditures on construction and
installation works, capitalized interest and other direct and indirect development expenses. The
use right of the land for development purpose at the development of a project is amortized and
recognized as the development cost of the project based on the site area of the development
product, and the development cost will be changed over to development product after being
completed.
If the public auxiliary facilities are completed earlier than the related development product,
the facilities will be allocated to and recognized in the development cost of related development
project based on the floor space of the project after final accounting of the facilities upon
completion; if the public auxiliary facilities are completed later than the related development
product, they will be recognized in the development cost of related development project based
on the predicted cost of the public auxiliary facilities.
Hotel, catering and fresh goods inventories are subject to onsite inventory, while other
inventories are subject to perpetual inventory.
Recognition criteria and provision methods for provision for inventory depreciation
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2023 Annual Report
√Applicable □Not applicable
On the balance sheet date, inventory is measured by cost and net realizable value,
whichever is lower. If the cost is higher than the net realizable value, provision will be made for
inventory depreciation, which will be recognized in the profit or loss for the current period. Net
realizable value is the estimated selling price of inventory less the cost estimated to occur as of
completion, estimated sales expenses and related taxes. In principle, provisions for inventory
depreciation shall be made for inventory items individually. For the inventory with a large
quantity and a low unit price, inventory depreciation provision will be made based on the
Groups of items.
Combination classification and determination basis for combined provision for
inventory depreciation, and determination basis for net realizable value of inventory of
different categories
□Applicable √Not applicable
Calculation methods and determination basis for the net realizable value of each
inventory age combination based on inventory age confirmation
□Applicable √Not applicable
17. Contract assets
□Applicable √Not applicable
18. Non-current assets or disposal groups held for sale
□Applicable √Not applicable
Recognition criteria and accounting treatment methods for non-current assets or
disposal groups classified as held for sale
□Applicable √Not applicable
Recognition criteria and reporting methods for termination of operations
□Applicable √Not applicable
19. Long-term equity investment
√Applicable □Not applicable
Long-term equity investment includes equity investment in subsidiaries, joint ventures and
associates.
Long-term equity investment is initially measured by the initial investment cost at the time
of being acquired. The initial investment cost for long-term equity investments obtained through
the merger of enterprises under the same control shall be the share of the book value of the
owner's equity of the merged party obtained on the merger date in the consolidated financial
statements of the ultimate controlling party; The difference between the initial investment cost
and the book value of the merger consideration shall be adjusted to the capital reserve (if it is
not sufficient to offset, it shall be offset against retained earnings). Long term equity investments
obtained through mergers of enterprises not under the same control are initially invested at the
cost of the merger (if the merger of enterprises not under the same control is achieved through
multiple transactions in steps, the initial investment cost is the sum of the book value of the equity
investments held by the acquired party before the purchase date and the newly added
investment cost on the purchase date). The initial investment costs of the long-term equity
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2023 Annual Report
investment acquired other than through merger are determined with the following methods: if an
investment is acquired through the payment of cash, its initial investment cost consists of the
purchase price actually paid and the expenses, taxes and other necessary expenses directly
relating to the acquisition of the investment; and if an investment is acquired through the offering
of equity securities, its initial investment cost is the fair value of the equity securities offered.
For the accounting of the long-term equity investment through which the Company can
exercise control over the investees, the Company adopts the cost method in individual financial
statements. Control refers to the power over an investee, with which the investor enjoys variable
return by participating in the investee’s related activities and is able to exercise its power over
the investee to affect the amount of return.
In the cost method, the long-term equity investment is measured by initial investment cost.
If the investment is added or recovered, the cost of long-term equity investment will be adjusted.
The cash dividend or profit declared by the investees to be distributed is recognized as the
investment income for the current period.
If the Group has joint control over or significant influence on the investee, the long-term
equity investment will be measured with the equity method. Joint control refers to joint control
over an arrangement in accordance with related agreements, and decisions on the activities
relating to the arrangement shall be made only after the parties sharing the control reach an
agreement. Significant influence refers to the power over the decision-making on the financial
affairs and business policies of the investee, but the investor does not have control or joint control
with others over the formulation of those policies.
In the equity method, if the initial investment cost of long-term equity investment is higher
than the share enjoyed by the Group in the fair value of the investee’s identifiable net assets at
investment, the excess will be recognized in the initial investment cost of the long-term equity
investment; if the initial investment cost of long-term equity investment is lower than the share
enjoyed by the Group in the fair value of the investee’s identifiable net assets at investment, the
difference will be recognized in the profit or loss for the current period and the cost of the long-
term equity investment will be adjusted simultaneously.
In the equity method, after long-term equity investment is acquired, the investment gains or
losses and other comprehensive income shall be recognized, and the book value of the long-
term equity investment shall be adjusted based on the share in the net gains or losses and other
comprehensive income realized by the investees to be enjoyed or assumed. The share in the
investee’s net gains or losses to be enjoyed shall be determined based on the fair value of the
investee’s identifiable assets at the acquisition of investment, according to the Group’s
accounting policies and accounting periods and after net profits of the investee are adjusted with
the portion of gains or losses from the internal transactions with its associates and joint ventures
that is attributable to the investor based on the share to be enjoyed by it (but if the loss from
internal transactions falls in the assets impairment loss, it shall be recognized in full) offset,
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2023 Annual Report
except for the invested and sold assets that constitute businesses. The book value of long-term
equity investment shall be reduced according to the share to be enjoyed by it in the profits or
cash dividend declared by the investees to be distributed. For an investee’s net losses
recognized by the Group, the book value of the long-term equity investment and other long-term
equity that substantially constitute net investment in the investee shall be written down to zero
at maximum, except for the extra losses for which the Group is liable. For the investee’s other
changes in shareholders’ equity other than net gains or losses, other comprehensive income
and profit distribution, the book value of the long-term equity investment will be adjusted, and
the changes will be recognized in the shareholders’ equity.
20. Property investment
(1). In cost measurement model:
Depreciation or amortization methods
Investment real estate refers to real estate held for the purpose of earning rent or capital
appreciation, or both.
Property investments are initially measured by cost. The subsequent expenses relating to
an property investment will be recognized in the cost of the property investment if the
economic benefits relating to the asset are very likely to flow in and the cost thereof can be
measured reliably. Otherwise, they will be recognized in the profit or loss for the current period
at the time of being incurred.
The Group subsequently measures its property investments with the cost model. The
depreciation/amortization of property investments is calculated on a straight line basis. The
service life, estimated net residual value and annual depreciation rate of property investments
are as follows:
Category Service life Estimated net Annual depreciation
residual value rate
Buildings and 20-30 years 4% 3.2%-4.8%
structures
Land use right 40-70 years - 1.4%-2.5%
21. Fixed assets
(1). Recognition requirements
√Applicable □Not applicable
A fixed asset will be recognized only if the economic benefits relating thereto are very
likely to flow into the Group and its cost can be measured reliably. If meeting the above
recognition requirement, the subsequent expenses relating to a fixed asset will be recognized
in the cost of the fixed asset, and the book value of the replaced part will be deleted; otherwise,
the subsequent expenses will be recognized in the profit or loss for the current period at the
time of being incurred.
Fixed assets are initially measured by cost. The costs of purchasing a fixed asset include
the purchase price, related taxes and other expenses that are incurred before the fixed asset is
made to the predetermined ready-for-use status and are directly attributable to the asset.
The Group reviews and makes adjustment to, if necessary, the service life, estimated
residual value and depreciation method of its fixed assets at least at the end of each year.
(2). Depreciation methods
√Applicable □Not applicable
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2023 Annual Report
Depreciation
Depreciation Residual value Annual
Category period (number
methods rate depreciation rate
of years)
Buildings and Straight-line 10-40 4% 2.4%-9.6%
structures method
General Straight-line 5-10 4% 9.6%-19.2%
equipment method
Transportation Straight-line 6 4% 16.0%
equipment method
22. Construction in progress
√Applicable □Not applicable
The cost of construction in progress is determined based on the actual expenses,
including the necessary expenses on the works incurred during the construction, the borrowing
costs incurred before the works reach the predetermined ready-for-use status that shall be
capitalized and other related expenses.
The construction in progress is transferred to fixed assets, investment real estate and
long-term deferred expenses when it reaches the expected serviceable condition. The
standards are as follows:
Standards for carrying forward fixed assets
Buildings and structures Actual start of use
Machinery equipment Completion of installation and
commissioning
Transportation equipment Obtaining a transportation vehicle driving
license
Other equipment Actual start of use or completion of
installation and debugging
23. Borrowing costs
√Applicable □Not applicable
Borrowing costs that are directly attributable to the acquisition, construction or production
of the assets qualified for capitalization shall be capitalized, and other borrowing costs shall be
recognized in the profit or loss for the current period.
When capital expenditures and borrowing costs have already occurred, and the necessary
acquisition or production activities to bring the asset to its intended usable or saleable state
have begun, borrowing costs begin to be capitalized.
The borrowing costs for the assets qualified for capitalization shall cease being capitalized
when the assets reach the predetermined ready-for-use or sale status after the acquisition,
construction or production. The borrowing costs incurred subsequently will be recognized in
the profit or loss for the current period.
During the capitalization period, the capitalization amount of interest for each accounting
period shall be determined according to the following method: specialized loans shall be
determined based on the actual interest expenses incurred in this period, minus temporary
deposit interest income or investment income; The general borrowing used is calculated and
determined based on the weighted average of the accumulated asset expenses exceeding the
special borrowing portion multiplied by the weighted average interest rate of the general
borrowing used.
If an asset qualified for capitalization is interrupted abnormally for more than three months
during its acquisition, construction or production except due to the necessary procedures for it
to reach the predetermined ready-for-use or sale status, the capitalization of its borrowing
costs will be suspended. The borrowing costs incurred during the interruption will be
recognized as expenses and in the profit or loss for the current period until the acquisition,
construction or production of the asset is resumed.
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24. Biological assets
□Applicable √Not applicable
25. Oil and gas assets
□Applicable √Not applicable
26. Intangible assets
(1). Service life and its determination basis, estimated situation, amortization method or
review procedure
√Applicable □Not applicable
Goodwill is an intangible asset with an uncertain useful life. Such intangible assets are not
amortized, and impairment testing is conducted annually regardless of whether there are signs
of impairment; During each accounting period, its useful life is reviewed, and if there is
evidence that its useful life is limited, accounting treatment is carried out according to the policy
of intangible assets with limited useful life.
The remaining intangible assets are amortized using the straight-line method over their
useful lives, with the following useful lives:
Category Service life Determination basis
Land use right 40-50 years Term of land use rights
Software and software 10 years Which is shorter between the
copyright contract period and the
expected service life
(2). The scope of R&D expenditure collection and related accounting treatment methods
√Applicable □Not applicable
The Group divides expenditures for internal R & D projects into research expenditures and
development expenditures. Research expenses are recognized in the profit or loss for the
current period at the time of being incurred. Development expenditures can be capitalized only
when all of the following conditions are met at the same time, that is, it is technically feasible to
complete the intangible asset to make them usable or saleable; there is an intention to complete
the intangible asset and use or sell it; the way for intangible assets to generate economic benefits,
including the ability to prove that there are markets for the products generated by the intangible
assets or the intangible assets themselves. Intangible assets that will be used internally can
prove their usefulness; there are sufficient technology, financial resources and other resource
supports to complete the development of the intangible asset and ability to use or sell the
intangible asset; the expenditure attributable to the development of such intangible asset can be
reliably measured. Development expenditures that do not satisfy the above conditions are
included in the current profits and losses when incurred.
27. Impairment of long-term assets
√Applicable □Not applicable
The impairment of assets other than inventory, deferred income tax assets, and financial
assets is determined using the following method: on the balance sheet date, it is determined
whether there are signs of possible impairment of assets. If there are signs of impairment, the
Group will estimate their recoverable amount and conduct impairment testing; For goodwill
formed by business mergers, intangible assets with uncertain useful lives, and intangible
assets that have not yet reached a usable state, regardless of whether there are signs of
impairment, impairment testing shall be conducted at least at the end of each year.
The recoverable value of an asset is determined based on the fair value of the asset less
the disposal expenses or the present value of the expected future cash flows of the asset,
whichever is higher. The Group estimates the recoverable value of each asset. For an asset
whose recoverable value is hard to be estimated, the Group estimates the recoverable value of
the assets group which the asset belongs to. An assets group is identified based on whether
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the main cash inflows from the Group are independent from the cash inflows from other assets
or assets groups.
When the recoverable value of an asset or assets group is lower than its book value, the
Group will write down its book value to the recoverable value and the amount written down will
be recognized in the profit or loss for the current period; meanwhile, it will make provision for
the impairment thereof.
As for the impairment test of goodwill, the book value of goodwill shall be allocated to the
relevant asset groups or asset group combinations in a reasonable manner from the date of
purchase. The relevant asset groups or asset group combinations refer to asset groups or
asset group combinations that can benefit from the synergistic effects of enterprise mergers,
and are not larger than the operating segments determined by the Group.
Compare the book value and recoverable amount of asset groups or asset group
combinations that contain goodwill. If the recoverable amount is lower than the book value, the
impairment loss amount is first offset against the book value of goodwill allocated to the asset
group or asset group combination. Then, based on the proportion of the book value of other
assets in the asset group or asset group combination except for goodwill, the book value of
other assets is proportionally offset.
The above assets impairment loss will not be reversed during the subsequent accounting
periods.
28. Long-term prepaid expenses
√Applicable □Not applicable
Long-term prepaid expenses are amortized with the straight-line method and the
amortization periods are as follows:
Category Amortization period
Architectural ornaments of buildings 3-5 years
Advertising facilities 3-5 years
29. Contract liabilities
√Applicable □Not applicable
A contractual liability refers to an obligation to transfer goods or services to a customer for
the consideration received or receivable from the customer, such as the amount received by
the enterprise before the transfer of committed goods or services.
30. Employee compensations
(1). Accounting treatment of short-term compensations
√Applicable □Not applicable
The short-term compensations actually incurred during the accounting period when the
employees provide service for the Group are recognized as liabilities and are recognized in the
profit or loss for the current period or costs of related assets.
(2). Accounting treatment of post-employment benefits
√Applicable □Not applicable
The employees of the Group participate in the endowment insurance and unemployment
insurance managed by the local government, as well as the enterprise annuity, and the
corresponding expenditures are included in the relevant asset cost or current profit and loss
when incurred.
(3). Accounting treatment of severance benefits
√Applicable □Not applicable
Where the Group provides severance benefits to its employees, the employee
compensation liabilities arising from the severance benefits will be recognized, and the amount
will be recognized in the profit or loss for the current period on the earlier date below: the date
when the Group cannot unilaterally withdraw the severance benefits provided as a result of the
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employment termination plan or downsizing proposal; or the date when the Group recognizes
the costs or expenses relating to the reorganization involving the payment of severance
benefits.
(4). Accounting treatment of other long-term employee benefits
□Applicable √Not applicable
31. Estimated liabilities
√Applicable □Not applicable
Except for the contingent consideration and liabilities assumed in the merger of
enterprises not under the same control, obligations related to contingencies are current
obligations assumed by the Group and the performance of such obligations is likely to result in
the outflow of economic benefits from the Group. If the relevant amount can be reliably
measured, the Group recognizes them as estimated liabilities.
Estimated liabilities are initially measured based on the best estimate of the expenses
required for the performance of related current obligations, and the risks, uncertainties and
time value of money relating to the contingent matters are also factored in. Review the book
value of estimated liabilities on the balance sheet date and make appropriate adjustments to
reflect the current best estimate.
32. Share-based payment
√Applicable □Not applicable
Share-based payment is divided into equity-settled share-based payment and cash-settled
share-based payment. An equity-settled share-based payment refers to a deal in which the
Group uses shares or other equity instruments as the consideration for settlement to obtain
services.
The equity-settled share-based payment in exchange for services provided by employees
shall be measured at the fair value of the equity instruments granted to employees. If it can be
exercised immediately after the grant, it shall be included in the relevant costs or expenses at
fair value on the grant date, and the capital reserve shall be increased accordingly; if it cannot
be exercised until the service within the waiting period has been completed or the specified
performance conditions have been satisfied on each balance sheet date during the waiting
period, the Group will, based on the best estimate of the number of exercisable equity
instruments, include the services acquired in the current period, as relevant costs or expenses
based on the fair value on the grant date, and increase the capital reserve accordingly . The
fair value of equity instruments is determined using market quotations, as detailed in Note XIII.
2.
If the equity-settled share payment is canceled, it will be treated as an accelerated
exercise on the cancellation day, and the unrecognized amount shall be recognized
immediately. If an employee or other party has option to satisfy the non-exercising conditions
but fails to satisfy within the waiting period, it shall be treated as cancellation of equity-settled
share-based payment. However, if a new equity instrument is granted and if it is determined
that the new equity instrument granted is used to replace the canceled equity instrument on the
grant date of the new equity instrument, the replacement equity instruments granted in the
same way shall be treated in the same way as that for the modification of the terms and
conditions for the original equity instrument.
33. Preferred shares, perpetual bonds and other financial instruments
□Applicable √Not applicable
34. Revenue
(1). Disclosure of accounting policies adopted for revenue recognition and measurement
by business type
√Applicable □Not applicable
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The group recognizes incomes when it has fulfilled its performance obligations in the
contract, that is, the customer has acquired the control over the relevant goods or services.
The acquisition of the control over related goods or services means the ability to control the
use of the goods or the provision of the service and obtain almost all of the economic benefits
from them.
Commodity sales contracts
Sales contracts between the Group and customers typically include commitments to
transfer goods, which may vary depending on the customer's agreement. As customers are
able to benefit separately from the aforementioned goods or services or use them together with
other readily available resources, and there is no significant integration, modification,
customization, or high correlation between the aforementioned goods or services, the Group
considers them as clearly distinguishable goods and constitutes separate performance
obligations.
On the basis of comprehensive consideration of the following factors, the Group
recognizes revenue at the time when the customer obtains control over the relevant goods: the
current right to receive payment for the goods, the transfer of the main risks and rewards of
ownership of the goods, the transfer of legal ownership of the goods, the transfer of physical
assets of the goods, and the customer's acceptance of the goods.
Service contracts
The service contracts between the Group and customers usually include performance
obligations such as providing the use of shops in the China Commodities City markets and the
supporting services for operation , providing hotel accommodation and catering services,
providing paid use services for funds to external parties of the Group, and providing collection
and payment services.
The use of shops in the Commodity City and its supporting services
Since customers obtain and consume the economic benefits brought about by the Group’s
performance at the time of the performance by the group, the Group regards them as a
performance obligation to be fulfilled within a certain period of time and recognizes an income
based on the performance progress, except that the performance progress cannot be
reasonably determined. Under the output method, the Group determines the performance
progress of the provision of the use of shops in the China Commodities City markets and the
supporting services for operation based on the number of using days of the shops When the
performance progress cannot be reasonably determined, if the cost incurred by the Group is
expected to be compensated, the income shall be recognized according to the amount of the
cost incurred until the performance progress can be reasonably determined.
Hotel accommodation business
Since customers obtain and consume the economic benefits brought about by the Group’s
performance at the time of the performance by the group, the Group regards them as a
performance obligation to be fulfilled within a certain period of time and recognizes an income
based on the performance progress, except that the performance progress cannot be
reasonably determined. In accordance with the output method, the Group determines the
performance progress of hotel accommodation services based on the number of staying
days. . When the performance progress cannot be reasonably determined, if the cost incurred
by the Group is expected to be compensated, the income shall be recognized according to the
amount of the cost incurred until the performance progress can be reasonably determined.
Hotel catering business
For individual performance obligations in the provision of hotel catering services, the
Group prices hotel catering services separately, and uses the completion of hotel catering
services as the point of income recognition.
Terminable paid use of funds services
Since customers obtain and consume the economic benefits brought about by the Group’s
performance at the time of the performance by the group, the Group regards them as a
performance obligation to be fulfilled within a certain period of time and recognizes an income
based on the performance progress, except that the performance progress cannot be
reasonably determined. Under the output method, the Group determines the performance
progress of the services for the fixed-term paid funding services based on the number of using
days of funds. When the performance progress cannot be reasonably determined, if the cost
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incurred by the Group is expected to be compensated, the income shall be recognized
according to the amount of the cost incurred until the performance progress can be reasonably
determined.
(2). Adopting different business models for similar businesses involves different revenue
recognition methods and measurement methods
□Applicable √Not applicable
35. Contract cost
√Applicable □Not applicable
The Group's assets related to contract costs include contract acquisition costs and contract
performance costs. According to their liquidity, they are presented in inventory, other current
assets and other non-current assets respectively.
If the incremental cost incurred by the Group to acquire a contract is expected to be
recoverable, it is recognized as an asset as the contract acquisition cost, unless the amortization
period of the asset does not exceed one year.
If the cost incurred by the Group for the performance of the contract does not apply to the
scope of the relevant standards such as inventory, fixed assets or intangible assets, and meets
the following conditions at the same time, it is recognized as an asset as the cost of contract
performance:
(1) This cost is directly related to a current or expected contract, including direct labor,
direct materials, manufacturing expenses (or similar expenses), costs clearly borne by the
customer, and other costs incurred solely due to the contract;
(2) This cost increases the resources that the enterprise will use in the future to fulfill its
contractual obligations;
(3) This cost is expected to be recovered.
The Group amortizes the assets related to contract costs on the same basis as the revenue
recognition related to the assets, and includes them in the current profit and loss.
For assets related to contract costs, if the book value is higher than the difference between
the following two items, the Group will make provision for impairment for the excess part and
recognize it as asset impairment loss:
(1) The expected remaining consideration that the enterprise can obtain from the transfer
of goods or services related to the asset;
(2) The estimated cost to be incurred for the transfer of the relevant goods or services.
36. Government grants
√Applicable □Not applicable
A government grant is recognized when it can meet the requirements and can be received.
If a government grant falls in monetary assets, it will be measured by the amount received or
receivable. If a government grant does not fall in monetary assets, it will be measured by fair
value. If the fair value of a grant cannot be determined reliably, it will be measured by its nominal
amount.
A government grant prescribed by government documents to be used to acquire or construct
or otherwise form long-term assets will be deemed as an asset-related government grant; if no
government documents have express provisions, the grants that are used to acquire or construct
or otherwise form long-term assets will be deemed as asset-related government grants and
others as income-related government grants.
The Group recognizes government subsidies received using the total amount method.
Government subsidies related to income, used to compensate for related costs or losses in
future periods, are recognized as deferred income and are recognized in this period's profit or
loss or offset against related costs during the period of recognition of related costs or losses; For
compensating for related costs or losses that have already occurred, they are directly recognized
in this period's profit and loss or offset against related costs. The Group recognizes government
subsidies received using the total amount method.
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The asset-related government grants shall be used to offset the book value of related assets;
or recognized as deferred income, and included in profit and loss in stages under a reasonable
and systematic method during the useful life of the related assets (but government grants
measured at a nominal amount shall be directly included in the current profit and loss); if the
relevant asset is sold, transferred, scrapped or damaged before the end of its useful life, the
balance of the undistributed deferred income shall be transferred to the current profit and loss
when the asset is disposal.
37. Deferred income tax assets and deferred income tax liabilities
√Applicable □Not applicable
The Group recognizes deferred income tax with the balance sheet liability method based
on the temporary difference between the book value of assets and liabilities on the balance
sheet date and the tax base and that between the book value of the items that have not been
recognized as assets and liabilities but whose tax base can be determined according to the tax
law and the tax base thereof.
All taxable temporary differences will be recognized as deferred income tax liabilities,
unless:
(1) Taxable temporary differences arise in the following transactions: initial recognition of
goodwill, or initial recognition of assets or liabilities arising from individual transactions with the
following characteristics: the transaction is not a business merger, the transaction does not
affect accounting profits or taxable income or deductible losses at the time of occurrence, and
the initially recognized assets and liabilities do not result in equal amounts of taxable
temporary differences and deductible temporary differences;
(2) For taxable temporary differences related to investments in subsidiaries, joint
ventures, and associates, the timing of the reversal of such temporary differences can be
controlled and it is likely that they will not be reversed in the foreseeable future.
For the deductible temporary differences and the deductible losses and tax deductions
that can be carried forward to the subsequent years, the Group recognizes the deferred
income tax assets arising therefrom within the limit of the future taxable income that is very
likely to be obtained and used to be offset against the deductible temporary differences,
deductible losses and tax deductions, unless:
(1) Deductible temporary differences arise in the following individual transactions: the
transaction is not a business merger, the transaction does not affect accounting profits or
taxable income or deductible losses at the time of occurrence, and the initially recognized
assets and liabilities do not result in an equal amount of taxable temporary differences and
deductible temporary differences;
(2) For deductible temporary differences related to investments in subsidiaries, joint
ventures, and associates, such temporary differences are likely to be reversed in the
foreseeable future and are likely to receive taxable income used to offset such temporary
differences in the future.
The Group measures, on the balance sheet date, the deferred income tax assets and
liabilities based on the applicable tax rate for the period when the assets are expected to be
recovered or the liabilities are expected to be paid off, in accordance with the tax law, which
will also reflect the impact of the way of the expected recovery of assets or repayment of
liabilities on the income tax on the balance sheet date.
The Group reviews the book value of deferred income tax assets on the balance sheet
date. If it is very likely to be unable to acquire adequate taxable income to be offset against the
benefits of deferred income tax assets in the future, the book value of deferred income tax
assets will be written down. On the balance sheet date, the Group re-evaluates the
unrecognized deferred income tax assets and recognizes the same to the extent that it is very
likely to acquire adequate taxable income to reverse all or part of the deferred income tax
assets.
If all the following requirements are met, deferred income tax assets and liabilities will be
presented in net amount after offsetting: the Group has the legal right to settle the current
income tax assets and liabilities in net amount; the deferred income tax assets and liabilities
are related to the income tax levied by an identical tax authority on an identical taxpayer, or are
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related to the income tax levied by an identical tax authority on different taxpayers, but during
each important period when the deferred income tax assets and liabilities are reversed, the
involved taxpayers intend to settle the current income tax assets and liabilities in net amount or
acquire assets or pay off debts simultaneously.
38. Lease
√Applicable □Not applicable
Judgment basis and accounting treatment methods for simplifying short-term leases
and low-value asset leases as a lessee
√Applicable □Not applicable
The Group recognizes leases with a lease term not exceeding 12 months and excluding
purchase options as short-term leases on the commencement date of the lease term; Leases
with lower value when a single leased asset is considered a brand new asset are recognized
as low-value asset leases. The Group chooses not to recognize right-of-use assets and lease
liabilities for short-term leases and leases of low-value assets. In each period of the lease term,
it is included in the relevant asset cost or current profit and loss on a straight-line basis.
Classification criteria and accounting treatment methods for leasing as a lessor
√Applicable □Not applicable
The lease that transfers virtually all the risks and rewards related to the ownership of the
leased asset on the lease commencement date is a finance lease, and other leases are
operating leases.
Rental income from operating leases is recognised in profit or loss on a straight-line basis
over each period of the lease term, and variable lease payments not included in lease receipts
are included in profit or loss for the current period when actually incurred. The capitalized initial
direct expenses shall be amortized on the same basis recognized with the rental income during
the lease period, and shall be included in the current profit and loss in installments.
39. Other important accounting policies and accounting estimates
√Applicable □Not applicable
Measurement of fair value
The Group measures the fair values of equity instruments investments on each balance
sheet date. Fair value refers to the price received from the sale of an asset or paid for the
transfer of a liability by a market player in the orderly transactions on the measurement date.
For the assets and liabilities which are measured or disclosed by fair value in the financial
statements, the levels of fair value are determined based on the lowest-level input of important
significance for the overall measurement of fair values: Level 1 input is the unadjusted offer
price for an identical asset or liability that can be obtained in an active market on the
measurement date; Level 2 inputs are the inputs that are directly or indirectly observable for
related assets or liabilities other than Level 1 inputs; Level 3 inputs are the inputs that are
observable for related assets or liabilities.
On each balance date, the Group re-evaluates the assets and liabilities that are recognized in
the financial statements and keep being measured by fair value so as to determine whether to
change the measurement levels of fair value.
Significant accounting judgments and estimates
In the preparation of financial statements, the management need to make judgments,
estimates and assumptions, which will affect the presented amounts and disclosure of
revenue, expenses, assets and liabilities and the disclosure of contingent liabilities on the
balance sheet date. However, the uncertainty of these assumptions and estimates may result
in significant adjustments to the book value of future affected assets or liabilities.
Judgments
When applying the Group’s accounting policies, the management have made the following
judgments which have had significant influence on the amounts recognized in the financial
statements:
Operating lease - as the lessor
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The Group has signed lease contracts for the property investments. The Group thinks that
according to the terms of the lease contracts, the Group retains all major risks and
compensations on the titles of those real estate properties and thus handles them as operating
leases.
Partition between property investments and fixed assets
The Group classifies the buildings and structures leased out other than for the main
businesses such as market and hotel services as well as the auxiliary land use rights thereof
as property investments, including but not limited to the auxiliary banking and catering outlets
for market operation and the auxiliary service outlets for hotels. Other buildings and structures
leased out are classified as fixed assets.
Business model
The classification of financial assets at initial recognition depends on the Group’s business
model for the management of financial assets. When judging the business model, the Group
factors in the enterprise evaluation, the way of reporting financial assets performance to key
officers, the risks affecting the performance of financial assets, the way of managing financial
assets and the way of related business management personnel obtaining remunerations.
When assessing whether to aim at the collection of contractual cash flow, the Group needs to
analyze the reasons, time, frequency and value for sale of the financial assets to be sold
before the expiry dates thereof.
Characteristics of contractual cash flow
The classification of financial assets at initial recognition depends on the characteristics of
the contractual cash flow of the financial assets. For the judgment on whether the contractual
cash flow is the repayment of principal and the payment of interest on outstanding principal,
including the evaluation of the adjustment to the time value of money, it should be judged
whether it is significantly different from the benchmark cash flow; for the financial assets with
the early repayment characteristic, it should be judged whether the fair value of the early
repayment characteristic is extremely low.
Uncertainties of estimates
The following are key assumptions regarding the future at the balance sheet date and
other key sources of estimation uncertainty that may result in significant adjustments to the
book value of assets and liabilities in future accounting periods.
Impairment of financial instruments
The Group evaluates the impairment of financial instruments with the expected credit loss
model. To apply the model, the Group needs to make significant judgments and estimates and
take into account all reasonable and evidenced information, including forward-looking
information. When making these judgments and estimates, the Group infers the expected
changes in the debtors’ credit risks based on their historical repayment data, in combination
with the economic policies, macroeconomic indicators and industry risks. Different estimates
may affect the provisions for impairment and the provision that has been made for impairment
may not necessarily be equal to the actual amount of impairment loss in the future.
Net realizable value of property inventory
The Group’s property inventory is measured by cost or net realizable value, whichever is
lower. For the calculation of net realizable value, assumptions and estimates should be used. If
the management adjust the estimated price and the costs and expenses to be incurred until
the completion, it will affect the estimate of the net realizable value of the inventory and the
difference will affect the provision for inventory depreciation.
Impairment of non-current assets other than financial assets (excluding goodwill)
The Group determines, on the balance sheet date, whether the non-current assets other
than financial assets have a sign of being impaired. Non-current assets other than financial
assets are subject to impairment testing when there are indications that their book value is
irrecoverable. When the book value of an asset or a group of assets is higher than its
recoverable value, i.e. fair value less the disposal expenses or the present value of expected
future cash flow, whichever is higher, the asset or group has been impaired. For the fair value
less the disposal expenses, the Group refers to the agreed selling price or observable market
price of the similar asset in a fair transaction, less the cost increase directly attributable to the
disposal of the asset. When predicting the present value of future cash flows, the management
must estimate the expected future cash flows of the asset or group of assets and select an
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appropriate discount rate. When identifying a group of assets, the management consider
whether the smallest identifiable group of assets can generate income and cash flows
independently from other departments or units, or the income and cash inflows generated
thereby are mostly independent from other departments or units, and also take into account
the way of managing or monitoring production and operating activities and the way of making
decisions on the continued use or disposal of the asset. Please refer to Note VI. 21 for details.
Goodwill impairment
The Group tests goodwill for impairment at least annually. This requires estimating the
present value of the future cash flows of the asset group or combination of asset groups to
which the goodwill is allocated. When estimating the present value of future cash flows, the
Group needs to estimate the cash flows generated by future asset groups or combinations of
asset groups, and at the same time select an appropriate discount rate to determine the
present value of future cash flows. Please refer to Note VI. 27 for details.
Fair value of unlisted equity investment
The Group determines the fair value of non-listed equity investments based on the
expected future cash flows discounted at the current discount rate of other financial
instruments with similar contractual terms and risk characteristics. This requires the Group to
estimate the expected future cash flows, credit risk, volatility and discount rate, which brings
uncertainties.
Development expenses
When determining the amount of capitalization, management must make assumptions on
the expected future cash flow, the applicable discount rate, and the expected benefit period of
the asset.
Deferred income tax assets
To the extent that it is very likely for the Group to have enough taxable income to be offset
against the deductible losses, the Group shall recognize deferred income tax assets in
connection with the outstanding deductible losses. This requires the management to use lots of
judgments to estimate the acquisition time and amount of the taxable income to be acquired in
the future to determine the amount of deferred income tax assets to be recognized, in
consideration of the tax payment planning strategy.
Lessee incremental borrowing interest rate
For leases where the interest rate implicit in the lease cannot be determined, the Group
uses the lessee's incremental borrowing rate as the discount rate to calculate the present value
of the lease payments. When determining the incremental borrowing rate, the Group takes the
observable interest rate as the reference basis for determining the incremental borrowing rate
according to the economic environment it is in. On this basis, the Group adjusts the reference
interest rate according to its own situation, the underlying asset situation, the lease term, the
amount of lease liabilities and other specific conditions of the lease business to obtain the
applicable incremental borrowing rate.
40. Changes in important accounting policies and accounting estimates
(1). Changes in important accounting policies
√Applicable □Not applicable
Unit: RMB
Name of
statement
Affected
Contents and reason for changes in accounting policies items that are
amount
significantly
affected
According to Interpretation No. 16 of the Accounting Standards
for Enterprises issued in 2022, for individual transactions that
are not business combinations, do not affect accounting profits
NA NA
or taxable income (or deductible losses) at the time of
transaction, and result in equal taxable temporary differences
and deductible temporary differences due to initially recognized
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assets and liabilities, the exemption from initially recognized
deferred income tax is not applicable
Other statements
This regulation took effect in the Group from January 1, 2023. Due to the implementation
of this accounting treatment regulation, there will be no impact on the consolidated financial
statements of the Company and the financial statements of the parent company.
(2). Changes in important accounting estimates
□Applicable √Not applicable
(3). From 2023, the first implementation of new accounting standards or standard
interpretations would involve adjustments to the financial statements at the
beginning of the first implementation year
□Applicable √Not applicable
41. Other
□Applicable √Not applicable
VI. Taxes
1. Major taxes and tax rates
Major taxes and tax rates
√Applicable □Not applicable
Tax Base of taxation Rate
The Company is a general taxpayer, and the
taxable income is calculated for output tax at the
tax rates of 13%, 9%, and 6%. Value added tax is
The difference
calculated and paid based on the difference after
between the output
deducting the input tax allowed for deduction in
tax amount
this period. In addition, for the sale of self-
calculated based on
developed old real estate projects (the contract
VAT sales revenue and
commencement date specified in the
applicable tax rates,
Construction Engineering Construction Permit is
and the input tax
before April 30, 2016) and the rental of real estate
amount allowed for
acquired by the Group before April 30, 2016, the
deduction
simplified tax calculation method is applicable,
and the payable tax amount is calculated and
paid at a 5% tax rate
Urban
Actual paid value-
maintenance and Paid at 5% or 7% of the actual turnover tax paid.
added tax amount
construction tax
Except for the tax incentives listed in Note VI. 1
and the subsidiaries registered in Prague, Czech
Republic, Hong Kong Special Administrative
Corporate
Taxable Income Region, Germany, Kenya, Rwanda, and Dubai,
income tax
the corporate income tax of the Company and its
subsidiaries within the Group is calculated and
paid at 25% of the taxable income.
Value added from According to the ratio of value-added to deduction
Land
the transfer of real items, a four-level progressive tax rate (30% to
appreciation tax
estate 60%) will be implemented for exceeding the rate.
164 / 289
2023 Annual Report
Ad valorem
taxation: deducting
If the tax is levied according to price, the amount
a certain proportion
is 1.2% of the balance of the original value of the
from the original
Real estate tax property after a 30% deduction; if the tax is levied
value of the
according to rental, the amount is 12% of the
property
rental income.
Levy based on rent:
rental income
Education Actual paid value-
Paid at 3% of the actual turnover tax paid.
surcharge added tax amount
Local education Actual paid value-
Paid at 2% of the actual turnover tax paid.
surcharge added tax amount
Cultural
Calculated and paid at 3% of the advertising
undertaking Advertising turnover
industry's revenue.
development fee
Disclosure of taxpayers subject to different income tax rates
√Applicable □Not applicable
Taxpayer Income tax rate (%)
Huafrica (Kenya) Investment Development Co., Limited 30.00
BETTER SILK ROAD RWANDA Ltd 30.00
European Huajie Investment Development Co., Ltd. 19.00
Yiwu China Commodities City (Hong Kong) International 16.50
Trade Co., Ltd.
Hong Kong Better Silk Road Co., Ltd. 16.50
Yiwu China Commodity City (Germany) Co., Ltd. 15.00
Yiwu China Commodities City Big Data Co., Ltd. 15.00
Not subject to corporate
BETTER SILK ROAD FZE
income tax
2. Tax preference
√Applicable □Not applicable
According to the Announcement on the Filing of High-tech Enterprises recognized by
Zhejiang Provincial Accreditation Agency in 2022 issued by the Office of the National High-tech
Enterprise Accreditation Management Leading Group, Yiwu China Small Commodities City Big
Data Co., Ltd. has been listed in the filing list of high-tech enterprises recognized by Zhejiang
Provincial Accreditation Agency in 2022 and passed the recognition of high-tech enterprises.
The Certificate number is GR202233004297, date of issue: December 24, 2022, valid period:
three years. From January 1, 2022 to December 31, 2024, Yiwu China Commodities City Big
Data Co., Ltd. will be subject to a reduced corporate income tax rate of 15%.
3. Other
□Applicable √Not applicable
165 / 289
2023 Annual Report
VII. Notes to items in consolidated financial statements
1. Cash and cash equivalents
√Applicable □Not applicable
Unit: RMB
Item Closing balance Opening balance
Cash on hand 249,915.87 220,471.11
Bank deposits 2,922,477,584.50 1,990,327,169.17
Other cash and cash equivalents 7,820.24 751,331.02
Total 2,922,735,320.61 1,991,298,971.30
In which: amount deposited abroad 100,628,215.18 76,203,839.82
Other statements
Monetary funds with restricted usage rights are detailed in Note VII. 31. Assets with
restricted ownership or usage rights.
2. Held-for-trading financial assets
√Applicable □Not applicable
Unit: RMB
Reasons and
Closing Opening
Item basis for
balance balance
determination
Financial assets that are measured
by fair value and of which the
changes in fair value are recognized 15,130,895.00 62,331,000.66 /
in the profit or loss for the current
period
Among them:
Equity instrument investment 15,130,895.00 23,651,565.00 /
Bank financing products - 38,679,435.66 /
Total 15,130,895.00 62,331,000.66 /
Other notes:
□Applicable √Not applicable
3. Derivative financial assets
□Applicable √Not applicable
4. Notes receivable
(1). Categorized presentation of notes receivable
□Applicable √Not applicable
(2). Notes receivable having been pledged by the Company as of the close of the reporting
period
□Applicable √Not applicable
(3). Notes receivable having been endorsed or discounted by the Company as of the close
of the reporting period and having not been due as of the balance sheet date
□Applicable √Not applicable
(4). Categorized disclosure based on the bad debt provision method
□Applicable √Not applicable
166 / 289
2023 Annual Report
Accounts receivable for which bad debt provision is made individually:
□Applicable √Not applicable
Explanation for making bad debt provision for accounts receivable by group:
□Applicable √Not applicable
Provision for bad debts based on the general model of expected credit losses
□Applicable √Not applicable
Classification basis and bad debt provision ratio for each stage
No
Explanation of significant changes in the book balance of accounts receivable with changes in
loss provisions in this period:
□Applicable √Not applicable
(5). Provisions for bad debts
□Applicable √Not applicable
In which the recovered or reversed amount is important:
□Applicable √Not applicable
Other notes:
No
(6). Notes receivable actually written off during the current period
□Applicable √Not applicable
Important notes receivable written off:
□Applicable √Not applicable
Description of notes written off:
□Applicable √Not applicable
Other statements
□Applicable √Not applicable
5. Accounts receivable
(1). Disclosure based on account age
√Applicable □Not applicable
Unit: RMB
Account age Closing book balance Opening book balance
Within 1 year
In which: sub-items
Within 1 year 587,700,197.38 211,121,943.94
Within 1 year 587,700,197.38 211,121,943.94
1 to 2 years 10,408,255.33 8,026,629.17
2 to 3 years 1,195,926.30 100,234.00
Total 599,304,379.01 219,248,807.11
(2). Categorized disclosure based on the bad debt provision method
√Applicable □Not applicable
Unit: RMB
167 / 289
2023 Annual Report
Closing balance Opening balance
Category Book balance Bad debt provision Book balance Bad debt provision
Book Book
Proportion Provision value Proportion Provision value
Amount Amount Amount Amount
(%) ratio (%) (%) ratio (%)
Accounts
receivable for
which bad
6,261,907.10 1.04 6,261,907.10 100.00 - 6,261,907.10 2.86 6,261,907.10 2.86 -
debt provision
is made
individually
Among them:
Lease
6,261,907.10 1.04 6,261,907.10 100.00 - 6,261,907.10 2.86 6,261,907.10 2.86 -
receivables
Accounts
receivable for
which bad
593,042,471.91 98.96 184,676.82 0.03 592,857,795.09 212,986,900.01 97.14 2,236,174.65 1.05 210,750,725.36
debt provision
is made by
group
Among them:
Provision for
bad debt by
combination 593,042,471.91 98.96 184,676.82 0.03 592,857,795.09 212,986,900.01 97.14 2,236,174.65 1.05 210,750,725.36
of credit risk
characteristics
Total 599,304,379.01 / 6,446,583.92 / 592,857,795.09 219,248,807.11 / 8,498,081.75 / 210,750,725.36
Accounts receivable for which bad debt provision is made individually:
√Applicable □Not applicable
Unit: RMB
Closing balance
Name Bad debt Provision ratio
Book balance Reason for provision
provision (%)
Lease 6,261,907.10 6,261,907.10 Due to deterioration of
100.00
receivables operating conditions,
expected not to be recovered
Total 6,261,907.10 6,261,907.10 100.00 /
Explanation for making bad debt provision for accounts receivable individually:
□Applicable √Not applicable
Explanation for making bad debt provision for accounts receivable by group:
√Applicable □Not applicable
Combined provision items: combined provision for bad debts based on credit risk
characteristics
Unit: RMB
Closing balance
Name Bad debt Provision ratio
Accounts receivable
provision (%)
Within 1 year 587,700,197.38 63,360.15 0.01
1 - 2 years 4,146,348.23 77,377.38 1.87
2 -3 years 1,195,926.30 43,939.29 3.67
Total 593,042,471.91 184,676.82 /
Description of combined provision for bad debts:
□Applicable √Not applicable
168 / 289
2023 Annual Report
Provision for bad debts based on the general model of expected credit losses
√Applicable □Not applicable
Unit: RMB
Stage 1 Stage 2 Stage 3
Expected credit loss Expected credit loss
Expected credit loss
Bad debt provision in the entire duration in the entire duration Total
in the coming 12
(credit has not been (credit has been
months
impaired) impaired)
Balance as of January 1, 2023 8,498,081.75 8,498,081.75
Balance as of January 1, 2023 in
the current period
Provision made in the current 365,048.16 365,048.16
period
Current reversal 2,416,545.99 2,416,545.99
Charging-off in current period - -
Current write-off - -
Balance as of December 31, 6,446,583.92 6,446,583.92
2023
Classification basis and bad debt provision ratio for each stage
No
Explanation of significant changes in the book balance of accounts receivable with changes in
loss provisions in this period:
□Applicable √Not applicable
(3). Provisions for bad debts
√Applicable □Not applicable
Unit: RMB
Amount of change during the current
period
Category Opening balance Closing balance
Recovery or
Provision
reversal
Bad debt provision for
8,498,081.75 365,048.16 2,416,545.99 6,446,583.92
accounts receivable
Total 8,498,081.75 365,048.16 2,416,545.99 6,446,583.92
In which the recovered or reversed amount is important:
□Applicable √Not applicable
Other notes:
No
(4). Accounts receivable actually written off during the current period
□Applicable √Not applicable
Information of write-off of important accounts receivable
□Applicable √Not applicable
Description of accounts receivable written off:
□Applicable √Not applicable
169 / 289
2023 Annual Report
(5). Five debtors with the highest closing balances of accounts receivable and contract
assets
√Applicable □Not applicable
Unit: RMB
Proportion in the
Closing Closing total closing Closing
Closing
balance balance of balance of balance
balance of
Debtor of accounts accounts of bad
accounts
contract receivable and receivable and debt
receivable
assets contract assets contract assets provision
(%)
Dalian Guanglong
Zhongbang International 11,927,381.63 - 11,927,381.63 1.99 1,285.89
Trade Co., Ltd.
Tianjin Jinqinglian Trading
4,472,983.96 - 4,472,983.96 0.75 482.23
Co., Ltd.
Zhejiang Jinhui
Construction Engineering 3,530,755.55 - 3,530,755.55 0.59 380.65
Co., Ltd.
SWONIA, a.s. 2,690,465.53 - 2,690,465.53 0.45 290.06
Hangzhou Aiyun Network
1,232,622.22 - 1,232,622.22 0.21 132.89
Technology Co., Ltd.
Total 23,854,208.89 - 23,854,208.89 3.99 2,571.72
Other statements
No
Other notes:
□Applicable √Not applicable
6. Contract assets
(1). Overview of contract assets
□Applicable √Not applicable
(2). Amount of and reasons for material changes to book value during the reporting
period
□Applicable √Not applicable
(3). Categorized disclosure based on the bad debt provision method
□Applicable √Not applicable
Accounts receivable for which bad debt provision is made individually:
□Applicable √Not applicable
Explanation for making bad debt provision for accounts receivable individually:
□Applicable √Not applicable
Explanation for making bad debt provision for accounts receivable by group:
□Applicable √Not applicable
Provision for bad debts based on the general model of expected credit losses
170 / 289
2023 Annual Report
□Applicable √Not applicable
Classification basis and bad debt provision ratio for each stage
No
Explanation of significant changes in the book balance of contract assets with changes in loss
provisions in this period:
□Applicable √Not applicable
(4). Provision for bad debts of contract assets in this period
□Applicable √Not applicable
In which the recovered or reversed amount is important:
□Applicable √Not applicable
Other notes:
No
(5). Actual written-off contract assets in this period
□Applicable √Not applicable
Among them, important contract assets write off
□Applicable √Not applicable
Description of contract assets written off:
□Applicable √Not applicable
Other notes:
□Applicable √Not applicable
7. Accounts receivable financing
(1). Accounts receivable financing listed by classification
□Applicable √Not applicable
(2). Accounts receivable financing pledged by the Company at the end of the period
□Applicable √Not applicable
(3). Accounts receivable financing that has been endorsed or discounted by the
Company at the end of the period and has not yet matured on the balance sheet date
□Applicable √Not applicable
(4). Categorized disclosure based on the bad debt provision method
□Applicable √Not applicable
Accounts receivable for which bad debt provision is made individually:
□Applicable √Not applicable
Explanation for making bad debt provision for accounts receivable individually:
□Applicable √Not applicable
Explanation for making bad debt provision for accounts receivable by group:
□Applicable √Not applicable
171 / 289
2023 Annual Report
Provision for bad debts based on the general model of expected credit losses
□Applicable √Not applicable
Classification basis and bad debt provision ratio for each stage
No
Explanation of significant changes in the financing book balance of accounts receivable with
changes in loss provisions in this period:
□Applicable √Not applicable
(5). Provisions for bad debts
□Applicable √Not applicable
In which the recovered or reversed amount is important:
□Applicable √Not applicable
Other notes:
No
(6). Accounts receivable financing actually written off in this period
□Applicable √Not applicable
Among them, important accounts receivable financing written off
□Applicable √Not applicable
Explanation of writing-off:
□Applicable √Not applicable
(7). Changes in accounts receivable financing and changes in fair value in this period:
□Applicable √Not applicable
(8). Other notes:
□Applicable √Not applicable
8. Prepayments
(1). Presentation of prepayment by age
√Applicable □Not applicable
Unit: RMB
Account Closing balance Opening balance
age Amount Proportion (%) Amount Proportion (%)
Within 1 969,194,841.33 98.29 600,114,288.07 99.02
year
1 to 2 years 12,339,052.53 1.25 5,252,760.18 0.87
2 to 3 years 4,404,721.24 0.45 240,000.00 0.04
Over 3 124,000.00 0.01 450,000.00 0.07
years
Total 986,062,615.10 100.00 606,057,048.25 100.00
Explanation for failure to settle the prepayments with an account age longer than one year and
in important amounts:
No
172 / 289
2023 Annual Report
(2). Prepayments to the five suppliers with the highest closing balance
√Applicable □Not applicable
Proportion in total closing
Debtor Closing balance
balance of prepayments (%)
Five prepayments with the 361,029,851.26 36.61
highest closing balances
Total 361,029,851.26 36.61
Other statements
No
Other statements
□Applicable √Not applicable
9. Other receivables
Presentation of items
√Applicable □Not applicable
Unit: RMB
Item Closing balance Opening balance
Other receivables 115,279,387.63 419,398,092.62
Total 115,279,387.63 419,398,092.62
Other notes:
□Applicable √Not applicable
Interest receivable
(1). Classification of interest receivable
□Applicable √Not applicable
(2). Significant overdue interest
□Applicable √Not applicable
(3). Categorized disclosure based on the bad debt provision method
□Applicable √Not applicable
Accounts receivable for which bad debt provision is made individually:
□Applicable √Not applicable
Explanation for making bad debt provision for accounts receivable individually:
□Applicable √Not applicable
Explanation for making bad debt provision for accounts receivable by group:
□Applicable √Not applicable
(4). Provision for bad debts based on the general model of expected credit losses
□Applicable √Not applicable
Classification basis and bad debt provision ratio for each stage
No
173 / 289
2023 Annual Report
Explanation of significant changes in the book balance of interest receivable due to changes in
loss provisions in this period:
□Applicable √Not applicable
(5). Provisions for bad debts
□Applicable √Not applicable
In which the recovered or reversed amount is important:
□Applicable √Not applicable
Other notes:
No
(6). Interest receivable actually written off in this period
□Applicable √Not applicable
Important interest receivable written off among them
□Applicable √Not applicable
Explanation of writing-off:
□Applicable √Not applicable
Other notes:
□Applicable √Not applicable
Dividend receivable
(1). Dividend receivable
□Applicable √Not applicable
(2). Important dividend receivable with an account age longer than 1 year
□Applicable √Not applicable
(3). Categorized disclosure based on the bad debt provision method
□Applicable √Not applicable
Accounts receivable for which bad debt provision is made individually:
□Applicable √Not applicable
Explanation for making bad debt provision for accounts receivable individually:
□Applicable √Not applicable
Explanation for making bad debt provision for accounts receivable by group:
□Applicable √Not applicable
(4). Provision for bad debts based on the general model of expected credit losses
□Applicable √Not applicable
Classification basis and bad debt provision ratio for each stage
No
Explanation of significant changes in the book balance of dividends receivable due to changes
in loss provisions in this period:
□Applicable √Not applicable
174 / 289
2023 Annual Report
(5). Provisions for bad debts
□Applicable √Not applicable
In which the recovered or reversed amount is important:
□Applicable √Not applicable
Other notes:
No
(6). Dividends receivable actually written off in this period
□Applicable √Not applicable
Important dividend receivables written off among them
□Applicable √Not applicable
Explanation of writing-off:
□Applicable √Not applicable
Other notes:
□Applicable √Not applicable
Other receivables
(1). Disclosure based on account age
√Applicable □Not applicable
Unit: RMB
Account age Closing book balance Opening book balance
Within 1 year
In which: sub-items
Within 1 year 51,791,601.59 53,134,184.05
Within 1 year 51,791,601.59 53,134,184.05
1 to 2 years 41,019,455.29 12,295,130.76
2 to 3 years 5,014,989.22 341,676,912.95
Over 3 years 21,509,679.17 16,433,656.30
Bad debt provision for other -4,056,337.64 -4,141,791.44
receivables
Total 115,279,387.63 419,398,092.62
(2). Classification based on the nature of accounts
√Applicable □Not applicable
Unit: RMB
Nature of receivable Closing book balance Opening book balance
Withholdings, deposit and 107,984,533.23
88,707,661.45
margin
Receivables from export tax 9,508,128.96 10,041,570.82
rebate
Reserve 1,843,063.08 1,003,739.70
Financial assistance - 323,786,912.09
receivable from joint ventures
Total 119,335,725.27 423,539,884.06
175 / 289
2023 Annual Report
(3). Bad debt provision
√Applicable □Not applicable
Unit: RMB
Stage 1 Stage 2 Stage 3
Expected credit Expected credit
Expected credit loss in the entire loss in the entire
Bad debt provision Total
loss in the coming duration (credit duration (credit
12 months has not been has been
impaired) impaired)
Balance as of January 1,
2023
4,141,791.44 4,141,791.44
Balance as of January 1,
2023 in the current period
Provision made in the
current period
43,219.60 43,219.60
Current reversal 128,673.40 128,673.40
Charging-off in the
current period
- -
Current write-off - -
Balance as of December
31, 2023
4,056,337.64 4,056,337.64
Classification basis and bad debt provision ratio for each stage
No
Significant changes in the book balance of other receivables with changes in loss provisions:
□Applicable √Not applicable
Basis for the bad debt provision made in the current period and for assessing whether the
credit risk of financial instruments has increased significantly:
□Applicable √Not applicable
(4). Provisions for bad debts
√Applicable □Not applicable
Unit: RMB
Amount of change during the
Opening current period
Category Closing balance
balance Recovery or
Provision
reversal
Bad debt provision
4,141,791.44 43,219.60 128,673.40 4,056,337.64
for other receivables
Total 4,141,791.44 43,219.60 128,673.40 4,056,337.64
Among them, important recovered or reversed amounts:
□Applicable √Not applicable
Other statements
No
(5). Other receivables actually written off during the current period
□Applicable √Not applicable
Among them, important write-offs of other receivables:
□Applicable √Not applicable
Notes on the write-off of other receivables:
□Applicable √Not applicable
176 / 289
2023 Annual Report
(6). Other receivables from the five debtors with highest closing balance
√Applicable □Not applicable
Unit: RMB
Closing
Weight in the total balance
Closing closing balance of Nature of Account of bad
Debtor
balance other receivables receivable age debt
(%) provision
Yiwu Taxation Bureau,
Export tax Within 1
State Administration of 9,508,128.96 8.25 -
rebate year
Taxation
Transactions
Yiwu Junhuhui Within 1
5,118,245.58 4.44 between -
Entertainment Co., Ltd year
companies
FUNDACION PARA EL
Advance Within 1
INTERCAMBIO ENTRE 4,070,040.76 3.53 -
payment year
YIWU Y ESPANA
Transactions
Weihai Wentai Doors and Within 1
3,980,000.00 3.45 between -
Windows Co., Ltd year
companies
Yiwu Shengran Trading Advance Within 1
3,757,200.00 3.26 -
Co., Ltd. payment year
Total 26,433,615.30 22.93 / /
(7). Reported as other receivables due to centralized fund management
□Applicable √Not applicable
Other notes:
□Applicable √Not applicable
10. Inventory
(1). Classification of inventory
√Applicable □Not applicable
Unit: RMB
Closing balance Opening balance
Provision for Provision for
inventory inventory
depreciation/pr depreciation/pr
Item Book ovision for Book ovision for
Book value Book value
balance impairment of balance impairment of
contract contract
performance performance
cost cost
Raw
159,406.39 - 159,406.39 555,462.87 - 555,462.87
materials
Finished 162,423,278 162,423,278 212,470,958 212,470,958
- -
goods .28 .28 .56 .56
Work-in-
4,042,462.1 4,042,462.1 2,445,689.6 2,445,689.6
progress - -
8 8 9 9
materials
177 / 289
2023 Annual Report
Develop
67,478,414. 39,175,076. 67,907,950. 39,604,612.
ment 28,303,338.06 28,303,338.06
27 21 27 21
cost
Develop
1,041,444,1 1,041,444,1 1,075,274,5 1,075,274,5
ment - -
57.85 57.85 20.54 20.54
products
1,275,547,7 1,247,244,3 1,358,654,5 1,330,351,2
Total 28,303,338.06 28,303,338.06
18.97 80.91 81.93 43.87
(2). Provision for inventory depreciation/provision for impairment of contract
performance cost
√Applicable □Not applicable
Unit: RMB
Increase in the Decrease in the
current period current period Closing
Item Opening balance
Provisio Reversal or balance
Other Other
n charge-off
Development cost 28,303,338.06 - - - - 28,303,338.06
Total 28,303,338.06 - - - - 28,303,338.06
The reason for the reversing or charging off provision for inventory depreciation in this period
□Applicable √Not applicable
Provision for inventory depreciation by combination
□Applicable √Not applicable
The provision standards for provision for inventory depreciation by combination
□Applicable √Not applicable
(3). The capitalized amount of borrowing costs contained in the closing balance of
inventory and its calculation criteria and basis
√Applicable □Not applicable
As of December 31, 2023, inventory with a book value of RMB 35,797,443.87 (December
31, 2022: RMB 35,797,443.87) was capitalized from borrowing costs. In 2023, the capitalized
amount of inventory borrowing costs for the Group was RMB 0.00 (2022: RMB 0.00), and the
cumulative capitalized amount of borrowing costs was RMB 35,797,443.87 (2022: RMB
35,797,443.87)
(4). Amortization of contract performance cost during the current period
□Applicable √Not applicable
Other statements
√Applicable □Not applicable
Inventory-Development Cost Unit: RMB
Item Opening Increase in the Decrease in the Closing balance
balance current period current period
Haicheng Phase
I Business 67,907,950.27 - 429,536.00 67,478,414.27
Street
Total 67,907,950.27 - 429,536.00 67,478,414.27
Inventory-Developed Products Unit: RMB
Item Opening balance Increase Decrease in Other Closing balance
178 / 289
2023 Annual Report
in the the current transfer-
current period out
period
Haicheng
Phase I
915,616,130.79 90,000.00 - - 915,706,130.79
Business
Street
Haicheng
Phase II
159,658,389.75 - 33,920,362.69 - 125,738,027.06
Business
Street
Total 1,075,274,520.54 90,000.00 33,920,362.69 - 1,041,444,157.85
11. Held-for-sale assets
□Applicable √Not applicable
12. Non-current assets due within one year
□Applicable √Not applicable
Debt investments due within one year
□Applicable √Not applicable
Other debt investments due within one year
□Applicable √Not applicable
Other statement for non-current assets due within one year
No
13. Other current assets
√Applicable □Not applicable
Unit: RMB
Item Closing balance Opening balance
To-be-deducted input tax 326,795,702.79 146,697,598.28
Payment business reserve 313,869,496.74 367,484,914.87
Advance income tax 17,252,758.70 113,127,305.76
To-be-certified input tax 5,662,735.21 5,348,152.36
Entrusted loans to the market 1,737,479.42 1,737,479.42
traders
Less: bad debt provision for -185,500.00 -185,500.00
entrusted loans
Total 665,132,672.86 634,209,950.69
Other statements
No
14. Debt investments
(1). Overview of debt investment
√Applicable □Not applicable
Unit: RMB
Item Closing balance Opening balance
179 / 289
2023 Annual Report
Impairment Impairment
Book balance Book value Book balance Book value
provision provision
Entrusted 48,073,333.34 - 48,073,333.34 48,079,561.64 - 48,079,561.64
Loans
Total 48,073,333.34 - 48,073,333.34 48,079,561.64 - 48,079,561.64
Changes in provision for impairment of debt investments in this period
□Applicable √Not applicable
(2). Important debt investment as of the end of the reporting period
√Applicable □Not applicable
Unit: RMB
Closing balance Opening balance
Actu Actu
Overd Overd
Item Coup al Coup al
Book Maturit ue Book Maturit ue
on inter on inter
value y date princi value y date princi
rate est rate est
pal pal
rate rate
Cheng
du
Trade Decem Decem
48,000,00 48,000,00
City 5.5% 5.5% ber 19, - 5.5% 5.5% ber 19, -
0.00 0.00
entrust 2024 2024
ed
loan
48,000,00 48,000,00
Total / / / - / / / -
0.00 0.00
(3). Provision for impairment
□Applicable √Not applicable
Segmentation basis and provision ratio for impairment in each stage:
No
Explanation of significant changes in the book balance of debt investments with changes in loss
provisions in this period:
□Applicable √Not applicable
Amount of impairment provision for the current period and the basis for assessing whether there
is significant increase in the credit risk of financial instruments
□Applicable √Not applicable
(4). Debt investments actually written off in this period
□Applicable √Not applicable
Important debt investments written off among them
□Applicable √Not applicable
Description of debt investments written off:
□Applicable √Not applicable
Other statements
□Applicable √Not applicable
180 / 289
2023 Annual Report
15. Other debt investments
(1). Overview of other debt investment
□Applicable √Not applicable
Changes in provision for impairment of other debt investments in this period
□Applicable √Not applicable
(2). Important other debt investment as of the close of the reporting period
□Applicable √Not applicable
(3). Provision for impairment
□Applicable √Not applicable
Segmentation basis and provision ratio for impairment in each stage:
No
Explanation of significant changes in the book balance of other debt investments with changes
in loss provisions in this period:
□Applicable √Not applicable
Amount of impairment provision for the current period and the basis for assessing whether there
is significant increase in the credit risk of financial instruments
□Applicable √Not applicable
(4). Other debt investments actually written off in this period
□Applicable √Not applicable
Important other debt investments written off among them
□Applicable √Not applicable
Description of other debt investments written off:
□Applicable √Not applicable
Other notes:
□Applicable √Not applicable
16. Long-term receivables
(1). Overview of long-term receivables
√Applicable □Not applicable
Unit: RMB
Closing balance Opening balance Range
of
Item Bad debt Bad debt
Book balance Book value Book balance Book value discount
provision provision
rate
Guarantee 2.78%-
7,270,907.13 - 7,270,907.13 8,422,485.53 - 8,422,485.53
deposit 7.55%
Financial
assistance
0.00%-
receivable 270,755,772.12 - 270,755,772.12 269,877,115.20 - 269,877,115.20
6.74%
from joint
ventures
Total 278,026,679.25 - 278,026,679.25 278,299,600.73 - 278,299,600.73 /
181 / 289
2023 Annual Report
(2). Categorized disclosure based on the bad debt provision method
□Applicable √Not applicable
Accounts receivable for which bad debt provision is made individually:
□Applicable √Not applicable
Explanation for making bad debt provision for accounts receivable individually:
□Applicable √Not applicable
Explanation for making bad debt provision for accounts receivable by group:
□Applicable √Not applicable
(3). Provision for bad debts based on the general model of expected credit losses
□Applicable √Not applicable
Classification basis and bad debt provision ratio for each stage
No
Explanation of significant changes in the book balance of long-term accounts receivable with
changes in loss provisions in this period:
□Applicable √Not applicable
Amount of bad debt provision for the current period and the basis for assessing whether there is
significant increase in the credit risk of financial instruments
□Applicable √Not applicable
(4). Provisions for bad debts
□Applicable √Not applicable
In which the recovered or reversed amount is important:
□Applicable √Not applicable
Other notes:
No
(5). Actual long-term accounts receivable written off in this period
□Applicable √Not applicable
Important long-term accounts receivable written off among them
□Applicable √Not applicable
Description of long-term accounts receivable written off:
□Applicable √Not applicable
Other statements
□Applicable √Not applicable
182 / 289
2023 Annual Report
17. Long-term equity investment
(1). Long term equity investment situation
√Applicable □Not applicable
Unit: RMB
Change in the current period
Closing
Adjustment of
Investment gains or balance of
Investee Opening Balance Decrease in other Closing Balance
losses recognized with Other impairment
investment comprehensive
the equity method provision
income
1. Joint ventures
Yiwu Shanglv 396,972,448.93 - 38,957,479.65 - - 435,929,928.58 -
Yiwu Rongshang Property Co., Ltd. 65,650,902.46 - -205.43 - - 65,650,697.03 -
Yiwu Chuangcheng Property 28,449,292.72 - -763,659.31 - - 27,685,633.41 -
Yiwu Guoshen Shangbo Property Co.,
75,740,065.56 - 851,479,615.72 - - 927,219,681.28 -
Ltd.
Other 35,311,309.47 - -1,354,416.29 - - 33,956,893.18 3,327,216.16
Sub-total 602,124,019.14 - 888,318,814.34 - - 1,490,442,833.48 3,327,216.16
2. Associates
Huishang Micro-finance 78,209,979.82 - 377,956.29 - - 78,587,936.11 -
Huishang Zijing 80,251,875.33 - -13,450,927.90 - - 66,800,947.43 -
Chouzhou Financial Lease 489,205,549.91 - 85,753,216.38 - - 574,958,766.29 -
Yiwu China Commodities City
9,508,049.22 - - - - 9,508,049.22 9,508,049.22
Investment Management Co., Ltd.
Yiwu China Commodity City Fuxing
Investment Center (Limited Liability 102,918,559.00 - - - - 102,918,559.00 -
Partnership)
Pujiang Lvgu Property Co., Ltd. 378,839,597.00 - -29,197,911.90 - - 349,641,685.10 -
Yiwu China Commodities City Property
2,985,480,694.55 - 136,963,695.55 - - 3,122,444,390.10 -
Development Co., Ltd.
Yiwu Hongyi Equity Investment Fund
945,642,085.02 50,000,000.00 9,191,662.25 - - 904,833,747.27 -
Partnership
Zhejiang Zhijie Yuangang International
145,563,439.33 - -13,581,395.16 - - 131,982,044.17 -
Supply Chain Technology Co., Ltd.
Yiwu Huishang Redbud Phase II Investment
Partnership (limited partnership)
135,174,717.38 - 3,192,604.81 - - 138,367,322.19 -
Other 93,389,619.60 - -31,709,574.74 885,012.68 2,563,433.73 65,128,491.27 -
Sub-total 5,444,184,166.16 50,000,000.00 147,539,325.58 885,012.68 2,563,433.73 5,545,171,938.15 9,508,049.22
Total 6,046,308,185.30 50,000,000.00 1,035,858,139.92 885,012.68 2,563,433.73 7,035,614,771.63 12,835,265.38
183 / 289
2023 Annual Report
(2). Impairment testing of long-term equity investments
□Applicable √Not applicable
Other statements
Provision for impairment of long-term equity investment：
Unit: RMB
Investee Opening balance Increase in Decrease in the Closing balance
the current current period
period
Yiwu China Commodities City Investment
9,508,049.22 - - 9,508,049.22
Management Co., Ltd. [Note 1]
Other 3,327,216.16 - - 3,327,216.16
Total 12,835,265.38 - - 12,835,265.38
Note 1: In 2017, CCCF, a wholly-owned subsidiary of the Group, and Shanghai Fuxing Industrial Group Co., Ltd. (hereinafter referred to as "Fuxing")
jointly established Industrial Fund Yiwu China Commodities City Fuxing Investment Center (LLP) (hereinafter referred to as the "FOF"), the Fund of
Funds has invested in 12 sub-funds including Yiwu Shangfu Chuangzhi Investment Center (LLP) (hereinafter referred to as "Shangfu Chuangzhi Fund").
CCCF, as a limited partner, subscribed RMB 998 million in the FOF, accounting for 49.9% of the subscribed capital. The paid-in capital was RMB
102.92 million, and there is no deadline for the payment for the unpaid capital contribution. The other limited partner of the FOF is Fuxing. CCCF also
contributed RMB 9.8 million, 49% of total shares, to jointly establish Yiwu China Commodity City Investment Management Co., Ltd. (hereinafter referred
to as “CCCIM”) with Fuxing as the general partner of the above-mentioned FOF and sub-funds. The FOF and CCCIM are both under the control of
Fuxing and are associates of CCCF.
As a limited partner of Shangfu Chuangzhi Fund, CCCF has subscribed and paid in a capital contribution of RMB 617.51 million. Since the capital
contribution was guaranteed by Fuxing's fixed income, it was recognized as other non-current financial assets. The above paid-in capital contribution
made by CCCF to the FOF has been contributed to Shangfu Chuangzhi Fund together with the capital contribution of Fuxing to the FoF through the
FOF as a limited partner. With the capital contribution from the FOF as a limited partner and CCCF’s capital contribution to Shangfu Chuangzhi Fund
184 / 289
2023 Annual Report
as a limited partner, Shangfu Chuangzhi Fund made capital contribution of RMB 820.54 million to subscribe for the increase in the registered capital of
Hubei Provincial Asset Management Co., Ltd. to acquire 22.667% equity therein.
In 2018, CCCF learned during its after-investment follow-up management that Fuxing and its actual controller ZHU Yidong were suspected of
having committed a criminal offense and the 22.667% equity held by Shangfu Chuangzhi Fund in Hubei Provincial Asset Management Co., Ltd. was
frozen by the Public Security Bureau of Shanghai due to Fuxing’s contribution to the sources of the capital contribution. The Group believes that, on
December 31, 2023, the Group’s investment in the FOF and Shangfu Chuangzhi Fund was non-related to Fuxing’s investment, and there was no
indication of impairment of the underlying assets. Although they were still frozen, that had no impact on the Group’s equity. Therefore, there was no
impairment. However, for the equity investment in CCCIM, a full impairment provision has been made since 2018.
185 / 289
2023 Annual Report
18. Other equity instruments investment
(1). Overview of other equity instruments investment
√Applicable □Not applicable
Unit: RMB
Change in the
Reason for
current period Accumulated
designing it as
Gains Dividend gains
measured at
Opening recognized in Closing income recognized in
Item fair value
balance other balance recognized other
through other
comprehensive in this period comprehensive
comprehensive
income for this income
income
period
Shenwan
Hongyuan
499,200,803.85 57,696,575.32 556,897,379.17 3,762,820.14 3,271,948.17 Non-trading
Group
Co., Ltd.
Total 499,200,803.85 57,696,575.32 556,897,379.17 3,762,820.14 3,271,948.17 /
(2). Description of termination of recognition in this period
□Applicable √Not applicable
Other notes:
□Applicable √Not applicable
19. Other non-current financial assets
√Applicable □Not applicable
5. Unit: RMB
Item Closing balance Opening balance
PE investment 1,222,483,421.12 1,242,537,387.23
Unlisted equity investment 161,914,541.90 210,030,495.82
NEEQ equity investment 37,171,941.17 47,739,679.08
Total 1,421,569,904.19 1,500,307,562.13
Other notes:
□Applicable √Not applicable
186 / 289
2023 Annual Report
20. Property investment
Measurement models
(1). Property investment measured by cost
Unit: RMB
Buildings and
Item Land use right Total
structures
I. Original book value
1. Opening balance 3,066,726,500.66 441,780,232.93 3,508,506,733.59
2. Increase in the current period 1,446,214,861.97 - 1,446,214,861.97
(2) Inventory\fixed assets\construction 1,446,214,861.97 - 1,446,214,861.97
in progress changed into property
investment
3. Decrease in the current period - - -
4. Closing balance 4,512,941,362.63 441,780,232.93 4,954,721,595.56
II. Accumulated depreciation and accumulated amortization
1. Opening balance 564,165,088.47 92,698,464.70 656,863,553.17
2. Increase in the current period
(1) Provision or amortization 142,216,973.12 11,431,703.70 153,648,676.82
3. Decrease in the current period - - -
4. Closing balance 706,382,061.59 104,130,168.40 810,512,229.99
III. Depreciation provision
1. Opening balance - - -
4. Closing balance - - -
IV. Book value
1. Closing book value 3,806,559,301.04 337,650,064.53 4,144,209,365.57
2. Opening book value 2,502,561,412.19 349,081,768.23 2,851,643,180.42
(2). Information of investment real estate without property right certificates
√Applicable □Not applicable
Unit: RMB
Reasons for having not
Item Book value obtained the ownership
certificate
Trading Station of Yiwu CCC 88,021,224.47 Completion settlement not
Warehousing Park completed
(3). Impairment testing of investment real estate using cost measurement model
√Applicable □Not applicable
The recoverable amount is determined based on the net amount after deducting disposal
expenses from fair value
□Applicable √Not applicable
The recoverable amount is determined based on the present value of expected future
cash flows
□Applicable √Not applicable
Reasons for significant discrepancies between the aforementioned information and the
information used in previous year's impairment testing or external information
□Applicable √Not applicable
187 / 289
2023 Annual Report
Reasons for significant discrepancies between the information used in the Company's
previous year’s impairment testing and the actual situation of that year
□Applicable √Not applicable
Other statements
√Applicable □Not applicable
Due to the long-term losses and signs of impairment of the Group's subsidiary Haicheng
Yiwu China Commodities City Investment Development Co., Ltd. and the Group's branch
International Production Materials Market Branch of Zhejiang China Commodities City Group
Co., Ltd., impairment tests were conducted on the Haicheng main market and Yixi Production
Materials Market belonging to the market segment, as well as Haicheng Market Hotel
belonging to the hotel segment. Please refer to Note VII. 21.
21. Fixed assets
Presentation of items
√Applicable □Not applicable
Unit: RMB
Item Closing balance Opening balance
Fixed assets 4,940,523,363.51 5,220,882,784.47
Total 4,940,523,363.51 5,220,882,784.47
Other notes:
□Applicable √Not applicable
Fixed assets
(1). Overview of fixed assets
√Applicable □Not applicable
Unit: RMB
Buildings and Machinery Transportation
Item Total
structures equipment equipment
I. Original book value:
1. Opening balance 7,924,300,361.81 3,987,303,785.61 9,920,098.37 11,921,524,245.79
2. Increase in the
103,489,776.24 59,443,492.06 230,217.00 163,163,485.30
current period
(1) Purchase 587,658.47 17,094,039.39 230,217.00 17,911,914.86
(2) Changeover from
102,902,117.77 42,349,452.67 - 145,251,570.44
construction in progress
3. Decrease in the
113,908,722.94 12,215,830.43 - 126,124,553.37
current period
(1) Disposal or
108,701,469.92 11,913,960.30 - 120,615,430.22
retirement
(2) Completion
5,207,253.02 8,449.32 - 5,215,702.34
settlement differences
(3) Other transfer-
- 293,420.81 - 293,420.81
out
4. Closing balance 7,913,881,415.11 4,034,531,447.24 10,150,315.37 11,958,563,177.72
II. Accumulated depreciation
1. Opening balance 3,021,987,133.97 3,200,000,153.08 7,490,706.42 6,229,477,993.47
2. Increase in the
298,354,508.54 80,400,046.49 758,901.82 379,513,456.85
current period
(1) Provision 298,354,508.54 80,400,046.49 758,901.82 379,513,456.85
3. Decrease in the
50,845,929.81 11,269,174.15 - 62,115,103.96
current period
188 / 289
2023 Annual Report
(1) Disposal or
50,845,929.81 11,129,116.48 - 61,975,046.29
retirement
(2) Other - 140,057.67 - 140,057.67
changeover
4. Closing balance 3,269,495,712.70 3,269,131,025.42 8,249,608.24 6,546,876,346.36
III. Depreciation provision
1. Opening balance 471,163,467.85 - - 471,163,467.85
4. Closing balance 471,163,467.85 - - 471,163,467.85
IV. Book value
1. Closing book value 4,173,222,234.56 765,400,421.82 1,900,707.13 4,940,523,363.51
2. Opening book value 4,431,149,759.99 787,303,632.53 2,429,391.95 5,220,882,784.47
(2). Temporarily idle fixed assets
□Applicable √Not applicable
(3). Fixed assets leased out through operating lease
□Applicable √Not applicable
(4). Fixed assets for which the ownership certificates have not been obtained
√Applicable □Not applicable
Unit: RMB
Reasons for having not
Item Book value obtained the ownership
certificate
Liaoning Xiliu Yiwu China 261,378,675.92 Completion settlement not
Commodity City completed
Huangyuan Clothing Market 230,908,429.73 Completion settlement not
completed
CCC Hotel 48,587,015.17 Completion settlement not
completed
Total 540,874,120.82
(5). Impairment testing of fixed assets
√Applicable □Not applicable
The recoverable amount is determined based on the net amount after deducting
disposal expenses from fair value
□Applicable √Not applicable
The recoverable amount is determined based on the present value of expected future
cash flows
√Applicable □Not applicable
Unit: RMB
Years of Key Key Basis for
Recoverable Impairment the parameters for parameters determining key
Item Book value
amount amount prediction the prediction for the stable parameters for
period period period the stable period
Historical annual
Revenue
Haicheng Perpetual income analysis,
growth rate,
Main 646,233,802.62 844,381,624.74 - 5 growth rate, gross profit
profit margin,
Market discount rate analysis, CPI
discount rate
index
189 / 289
2023 Annual Report
Historical annual
Yixi Revenue
Perpetual income analysis,
Production growth rate,
913,962,477.74 960,359,206.56 - 5 growth rate, gross profit
Materials profit margin,
discount rate analysis, CPI
Market discount rate
index
Historical annual
Revenue
Haicheng Perpetual income analysis,
growth rate,
Market 36,475,480.54 38,083,284.04 - 5 growth rate, gross profit
profit margin,
Hotel discount rate analysis, CPI
discount rate
index
Total 1,596,671,760.90 1,842,824,115.34 - / / / /
Reasons for significant discrepancies between the aforementioned information and the
information used in previous year's impairment testing or external information
□Applicable √Not applicable
Reasons for significant discrepancies between the information used in the Company's
previous year’s impairment testing and the actual situation of that year
□Applicable √Not applicable
Other notes:
□Applicable √Not applicable
Disposal of fixed assets
□Applicable √Not applicable
190 / 289
2023 Annual Report
22. Construction in progress
Presentation of items
√Applicable □Not applicable
Unit: RMB
Item Closing balance Opening balance
Construction in progress 3,955,959,200.32 2,860,064,818.36
Total 3,955,959,200.32 2,860,064,818.36
Other notes:
□Applicable √Not applicable
191 / 289
2023 Annual Report
Construction in progress
(1). Overview of construction in progress
√Applicable □Not applicable
Unit: RMB
Closing balance Opening balance
Impairment Impairment
Item Book value Book value
Book balance Book balance
provision provision
The Yiwu Comprehensive
1,221,353,672.38 - 1,221,353,672.38 1,853,596,168.27 - 1,853,596,168.27
Bonded Zone Project
Global Digital Free Trade Center 753,285,037.73 - 753,285,037.73 71,878,178.97 - 71,878,178.97
S3 Logistics Park 646,823,075.05 - 646,823,075.05 304,000,538.70 - 304,000,538.70
Yiwu International Digital
630,797,491.91 - 630,797,491.91 116,022,418.71 - 116,022,418.71
Logistics Market
S2 Logistics Park 580,571,402.07 - 580,571,402.07 235,339,023.06 - 235,339,023.06
The Chian West Sea tourism
70,693,880.52 - 70,693,880.52 70,003,472.35 - 70,003,472.35
project
Liaoning Xiliu Yiwu China
Commodities City Commerce 32,290,506.33 -4,635,059.96 27,655,446.37 32,290,506.33 -4,635,059.96 27,655,446.37
Phase I Project—Hotel Project
The Zhimei Dachen tourism
24,438,877.36 - 24,438,877.36 22,801,228.71 - 22,801,228.71
project
Yiwu Digital Trade Industrial
- - - 158,150,730.63 - 158,150,730.63
Park
Other projects 340,316.93 - 340,316.93 617,612.59 - 617,612.59
Total 3,960,594,260.28 -4,635,059.96 3,955,959,200.32 2,864,699,878.32 -4,635,059.96 2,860,064,818.36
192 / 289
2023 Annual Report
(2). Changes to important construction in progress during the current period
√Applicable □Not applicable
Unit: RMB 10,000
In which:
Ratio of Interest
Amount capitalized
Increase in accumulated Accumulated capitalization
Opening changed Closing Progress of interest in
Item Budget the current investment capitalized ratio for the Source of f
balance into fixed balance project the
period to budget interest current
assets current
(%) period (%)
period
Liaoning Xiliu
Yiwu China
Commodities
Self-
City Commerce 180,000.00 3,229.05 - - 3,229.05 96.32 Shutdown 154.61 - /
owned/finan
Phase I
Project—Hotel
Project
Zhimei Dachen Under
6,000.00 2,280.13 163.76 - 2,443.89 97.28 - - / Self-owned
Project construction
Chi’an Xihai Under
8,000.00 7,000.35 69.04 - 7,069.39 88.37 - - / Self-owned
Project construction
The Yiwu
Comprehensive Under
624,250.00 185,359.62 71,692.37 134,916.62 122,135.37 46.87 4,262.31 2,257.11 3.61 Self-owned
Bonded Zone construction
Project
Yiwu Digital
Trade Industrial 39,579.00 15,815.07 18,456.04 34,271.11 - 100.00 completed - - / Self-owned
Park
Global Digital
Under
Free Trade 832,082.00 7,187.82 68,140.68 - 75,328.50 1.79 842.44 736.69 3.20 Self-owned
construction
Center
S2 Logistics Under
108,000.00 23,533.90 34,523.24 - 58,057.14 53.76 893.83 893.83 3.00 Self-owned
Park construction
S3 Logistics Under Self-
132,000.00 30,400.05 34,282.26 - 64,682.31 49.00 1,282.92 967.29 1.90
Park construction owned/finan
193 / 289
2023 Annual Report
Yiwu
International Under Self-
113,600.00 11,602.24 51,477.51 - 63,079.75 55.53 755.80 656.22 1.60
Digital Logistics construction owned/finan
Market
Other / 61.76 25.30 53.03 34.03 / / - - - /
Total 2,043,511.00 286,469.99 278,830.20 169,240.76 396,059.43 / / 8,191.91 5,511.14 / /
(3). Provision made for the impairment of construction in progress in the current period
□Applicable √Not applicable
(4). Impairment testing of construction in progress
√Applicable □Not applicable
The recoverable amount is determined based on the net amount after deducting disposal expenses from fair value
□Applicable √Not applicable
The recoverable amount is determined based on the present value of expected future cash flows
□Applicable √Not applicable
Reasons for significant discrepancies between the aforementioned information and the information used in previous year's impairment
testing or external information
□Applicable √Not applicable
Reasons for significant discrepancies between the information used in the Company's previous year’s impairment testing and the actual
situation of that year
□Applicable √Not applicable
Other statements
√Applicable □Not applicable
Due to the long-term losses and signs of impairment of the Group's subsidiary Haicheng Yiwu China Commodities City Investment Development
Co., Ltd. and the Group's branch International Production Materials Market Branch of Zhejiang China Commodities City Group Co., Ltd., impairment
tests were conducted on the Haicheng main market and Yixi Production Materials Market belonging to the market segment, as well as Haicheng
Market Hotel belonging to the hotel segment. Please refer to Note VII. 21.
194 / 289
2023 Annual Report
Construction materials
(1). Engineering materials
□Applicable √Not applicable
23. Bearer biological asset
(1). Bearer biological asset measured by cost
□Applicable √Not applicable
(2). Impairment testing of productive biological assets using cost measurement model
□Applicable √Not applicable
(3). Bearer biological asset measured by fair value
□Applicable √Not applicable
Other statements
□Applicable √Not applicable
24. Oil and gas assets
(1) Situation of oil and gas assets
□Applicable √Not applicable
(2) Impairment testing of oil and gas assets
□Applicable √Not applicable
Other notes:
No
25. Right-of-use assets
(1) Situation of right-of-use assets
√Applicable □Not applicable
Unit: RMB
Buildings and
Item Land Total
structures
I. Original book value
1. Opening balance 156,223,496.12 125,879,033.69 282,102,529.81
2. Increase in the 315,934.33 -
315,934.33
current period
(1) Lease in 315,934.33 - 315,934.33
3. Decrease in the - - -
current period
4. Closing balance 156,539,430.45 125,879,033.69 282,418,464.14
II. Accumulated depreciation
1. Opening balance 53,771,643.53 10,627,975.47 64,399,619.00
2. Increase in the 30,562,888.65 6,582,122.65 37,145,011.30
current period
(1) Provision 30,562,888.65 6,582,122.65 37,145,011.30
3. Decrease in the - - -
current period
4. Closing balance 84,334,532.18 17,210,098.12 101,544,630.30
III. Depreciation provision
1. Opening balance - - -
4. Closing balance - - -
IV. Book value
1. Closing book value 72,204,898.27 108,668,935.57 180,873,833.84
2. Opening book value 102,451,852.59 115,251,058.22 217,702,910.81
195 / 289
2023 Annual Report
(2) Impairment testing of right-of-use assets
□Applicable √Not applicable
Other notes:
No
26. Intangible assets
(1). Overview of intangible assets
√Applicable □Not applicable
Unit: RMB
Software and
Item Land use right Total
software copyright
I. Original book value
1. Opening balance 8,087,572,660.11 194,975,359.61 8,282,548,019.72
2. Increase in the current
- 30,838,582.77 30,838,582.77
period
(1) Purchase - 17,916,745.31 17,916,745.31
(2) Internal R&D - 12,921,837.46 12,921,837.46
3. Decrease in the
21,856,515.55 12,621,637.29 34,478,152.84
current period
(1) Disposal 21,856,515.55 790,040.00 22,646,555.55
(2) Other
- 11,831,597.29 11,831,597.29
changeover
4. Closing balance 8,065,716,144.56 213,192,305.09 8,278,908,449.65
II. Accumulated amortization
1. Opening balance 1,802,910,260.76 17,788,068.60 1,820,698,329.36
2. Increase in the
200,152,451.32 29,595,186.37 229,747,637.69
current period
(1) Provision 200,152,451.32 29,595,186.37 229,747,637.69
3. Decrease in the
7,210,729.33 2,711,290.03 9,922,019.36
current period
(1) Disposal 7,210,729.33 728,860.36 7,939,589.69
(2) Other
- 1,982,429.67 1,982,429.67
changeover
4. Closing balance 1,995,851,982.75 44,671,964.94 2,040,523,947.69
III. Depreciation provision
1. Opening balance - - -
4. Closing balance - - -
IV. Book value
1. Closing book value 6,069,864,161.81 168,520,340.15 6,238,384,501.96
2. Opening book value 6,284,662,399.35 177,187,291.01 6,461,849,690.36
As of the end of this period, the proportion of intangible assets formed through internal
research and development of the Company in the balance of intangible assets was 1.12%
(2). Land use right for which the ownership certificate has not been obtained
□Applicable √Not applicable
196 / 289
2023 Annual Report
(3) Impairment testing of intangible assets
√Applicable □Not applicable
The recoverable amount is determined based on the net amount after deducting disposal
expenses from fair value
□Applicable √Not applicable
The recoverable amount is determined based on the present value of expected future
cash flows
□Applicable √Not applicable
Reasons for significant discrepancies between the aforementioned information and the
information used in previous year's impairment testing or external information
□Applicable √Not applicable
Reasons for significant discrepancies between the information used in the Company's
previous year’s impairment testing and the actual situation of that year
□Applicable √Not applicable
Other notes:
√Applicable □Not applicable
Due to the long-term losses and signs of impairment of the Group's subsidiary Haicheng
Yiwu China Commodities City Investment Development Co., Ltd. and the Group's branch
International Production Materials Market Branch of Zhejiang China Commodities City Group
Co., Ltd., impairment tests were conducted on the Haicheng main market and Yixi Production
Materials Market belonging to the market segment, as well as Haicheng Market Hotel belonging
to the hotel segment. Please refer to Note VII. 21.
27. Goodwill
(1). Original book value of goodwill
√Applicable □Not applicable
Unit: RMB
Increase in the Decrease in the
The name of the
current period current period
invested unit or Opening
Formed by a Closing balance
matters forming balance
business Disposal
goodwill
combination
Xunchi Group 284,916,367.87 - - 284,916,367.87
Total 284,916,367.87 - - 284,916,367.87
(2). Provision for goodwill impairment
□Applicable √Not applicable
(3). Information on the assets group or combination of assets groups to which the
goodwill belongs
√Applicable □Not applicable
Operating
Whether it was
segment to
The composition of the asset group or consistent with
Name which it
combination to which it belongs and basis the previous
belongs and
year
basis
Kuaijietong It is composed of Kuaijietong Payment Services For internal
Yes
asset Co., Ltd., a subsidiary of Zhejiang Xunchi Digital management
197 / 289
2023 Annual Report
group Technology Co., Ltd. Since the synergistic purposes, this
effect of the acquisition of Xunchi Group is asset group
reflected in the Kuaijietong's subsidiaries, the combination
main cash flow generated by the Kuaijietong's belongs to
subsidiaries is independent of other other
subsidiaries of the Group, and the Group segment.
manages the production activities of the
Kuaijietong's subsidiaries independently, so the
goodwill is allocated to the Kuaijietong asset
group.
Changes in asset groups or asset group combinations
□Applicable √Not applicable
Other statements
√Applicable □Not applicable
In July 2022, the Group acquired 100% equity of Zhejiang Xunchi Digital Technology Co.,
Ltd. and Kuaijietong Payment Services Co., Ltd., a wholly-owned subsidiary of Zhejiang Xunchi
Digital Technology Co., Ltd. (referred to as "Xunchi Group"), resulting in a goodwill of RMB
284,916,367.87.
(4). The specific method for determining the recoverable amount
The recoverable amount is determined based on the net amount after deducting disposal
expenses from fair value
□Applicable √Not applicable
The recoverable amount is determined based on the present value of expected future cash
flows
√Applicable □Not applicable
Unit: RMB
Key
Key paramet
paramet ers for
Basis for Basis for
ers for the
determin determin
Years the stable
ing ing key
Impairm of the predictio period
Recoverabl paramet paramet
Item Book value ent predicti n period (growth
e amount ers for ers for
amount on (growth rate,
the the
period rate, profit
predictio stable
profit margin,
n period period
margin, discount
etc.) rate,
etc.)
Historica Historica
Revenu l annual l annual
Perpetu
e growth income income
al
Kuaijieto rate, analysis, analysis,
356,883,87 379,000,00 growth
ng asset - 5 profit gross gross
3.68 0.00 rate,
group margin, profit profit
discount
discount analysis, analysis,
rate
rate CPI CPI
index index
Total 356,883,87 379,000,00 - / / / / /
3.68 0.00
Reasons for significant discrepancies between the aforementioned information and the
information used in previous year's impairment testing or external information
198 / 289
2023 Annual Report
□Applicable √Not applicable
Reasons for significant discrepancies between the information used in the Company's previous
year’s impairment testing and the actual situation of that year
□Applicable √Not applicable
(5). Performance commitments and corresponding impairment of goodwill
When goodwill is formed, there is a performance commitment and the reporting period or the
previous period in the reporting period is within the performance commitment period
□Applicable √Not applicable
Other statements
□Applicable √Not applicable
28. Long-term prepaid expenses
√Applicable □Not applicable
Unit: RMB
Item Opening Increase in the Amortized Closing balance
balance current period amount in the
current period
Decoration of 296,452,554.64 87,177,423.42 74,753,356.48 308,876,621.58
buildings and
structures
Advertising 10,473,416.25 24,012,035.34 13,330,022.53 21,155,429.06
facilities
Total 306,925,970.89 111,189,458.76 88,083,379.01 330,032,050.64
Other notes:
No
29. Deferred income tax assets/deferred income tax liabilities
(1). Deferred income tax assets having not been offset
√Applicable □Not applicable
Unit: RMB
Closing balance Opening balance
Item Deductible Deferred Deductible Deferred
temporary income tax temporary income tax
difference assets difference assets
Provision for impairment of
18,917,033.18 4,729,258.30 18,828,747.02 4,707,186.78
assets
Unrealized profits of internal
1,051,115.67 262,778.92 1,094,793.10 273,698.28
transactions
Deductible losses 26,986,391.85 6,746,597.98 1,039,362.23 259,840.56
Recognized but unpaid liabilities 178,820,383.73 44,705,095.94 301,006,872.77 75,251,718.21
Overspent advertising cost 15,934,608.52 3,983,652.13 12,547,314.43 3,136,828.61
Lease liabilities 124,053,478.91 31,013,369.72 127,816,376.30 31,954,094.07
Asset-related government
79,879,800.00 19,969,950.00 79,879,800.00 19,969,950.00
grants
Changes in fair value of other
118,020,122.13 29,505,030.53 122,472,837.68 30,618,209.42
non-current financial assets
Changes in fair value of trading
2,276,137.50 569,034.38 3,854,431.84 963,607.96
financial assets
Change in fair value of other
- - 54,424,627.13 13,606,156.78
equity instruments investment
199 / 289
2023 Annual Report
Total 565,939,071.49 141,484,767.90 722,965,162.50 180,741,290.67
(2). Deferred income tax liabilities having not been offset
√Applicable □Not applicable
Unit: RMB
Closing balance Opening balance
Item Taxable Deferred Taxable Deferred
temporary income tax temporary income tax
difference Debt difference Debt
Asset evaluation appreciation for
merger of the enterprises not 22,521,198.48 5,630,299.60 27,573,081.34 6,893,270.33
under common control
Change in fair value of other
3,271,948.17 817,987.04 - -
equity instruments investment
Changes in fair value of other
310,386,559.36 77,596,639.84 352,597,807.91 88,149,451.98
non-current financial assets
Right-of-use assets 104,511,421.24 26,127,855.31 121,577,957.42 30,394,489.36
Total 440,691,127.25 110,172,781.79 501,748,846.67 125,437,211.67
(3). Deferred income tax assets or liabilities presented in net amount after offsetting
√Applicable □Not applicable
Unit: RMB
Offset amount
Closing Opening
Deferred between
balance of balance of
income tax deferred
deferred deferred
assets and income tax
Item income tax income tax
liabilities offset assets and
assets or assets or
at the end of liabilities at the
liabilities after liabilities after
the period beginning of
offsetting offsetting
the period
Deferred income tax 26,127,855.31 115,356,912.59 30,394,489.36 150,346,801.31
assets
Deferred income tax 26,127,855.31 84,044,926.48 30,394,489.36 95,042,722.31
liabilities
(4). Breakdown of unrecognized deferred income tax assets
√Applicable □Not applicable
Unit: RMB
Item Closing balance Opening balance
Deductible temporary 462,360,964.70 465,986,055.60
difference
Deductible losses 933,593,373.14 942,386,751.93
Total 1,395,954,337.84 1,408,372,807.53
(5). The deductible loss in unrecognized deferred income tax assets will be due in the
following years
√Applicable □Not applicable
Unit: RMB
Year Closing amount Opening amount Remarks
2023 - 145,779,196.21
2024 160,812,048.37 161,634,775.04
2025 205,661,578.38 222,983,125.16
200 / 289
2023 Annual Report
2026 227,475,259.53 245,567,218.34
2027 165,825,700.71 166,422,437.18
2028 173,818,786.15 -
Total 933,593,373.14 942,386,751.93 /
Other notes:
√Applicable □Not applicable
The Group believes that the above temporary differences in fixed asset depreciation, asset
impairment provisions, and deductible losses of some subsidiaries can be offset in the
foreseeable future, and it is expected that the Group will have sufficient pre-tax profits to offset
during the reversal period. Therefore, the Group deemed it necessary to recognize the above
deferred income tax assets.
30. Other non-current assets
√Applicable □Not applicable
Unit: RMB
Closing balance Opening balance
Item Book balance Impairment Book balance Impairment
Book value Book value
provision provision
Prepaid 138,253,316.00 - 138,253,316.00 138,253,316.00 - 138,253,316.00
land
transfer
fees
Total 138,253,316.00 - 138,253,316.00 138,253,316.00 - 138,253,316.00
Other notes:
No
31. Assets with restricted ownership or usage rights
√Applicable □Not applicable
Unit: RMB
Closing amount Opening amount
Restric Restric
Restric Restric
Item Book tion Book tion
Book value tion Book value tion
balance situatio balance situatio
type type
n n
Cash
and
12,556,381. 12,556,381. Pledge [Note 10,098,029. 10,098,029. Pledge
cash [Note 2]
42 42 d 2] 66 66 d
equival
ents
Invento 8,925,585.7 8,925,585.7 [Note
Seized - - / /
ry 7 7 3]
Long-
term
102,918,55 102,918,55 [Note 102,918,55 102,918,55
equity Frozen Frozen [Note 4]
9.00 9.00 4] 9.00 9.00
investm
ent
Other
non-
631,520,58 631,520,58 [Note 621,447,42 621,447,42
current Frozen Frozen [Note 4]
8.85 8.85 4] 4.37 4.37
financia
l assets
Other
313,869,49 313,869,49 Pledge [Note 367,484,91 367,484,91 Pledge
current [Note 5]
6.74 6.74 d 5] 4.87 4.87 d
assets
1,069,790,6 1,069,790,6 1,101,948,9 1,101,948,9
Total / / / /
11.78 11.78 27.90 27.90
201 / 289
2023 Annual Report
Other notes:
Note 2: As of December 31, 2023, the ownership or use rights of bank deposits with a book
value of RMB 3,888,542.08 (December 31, 2022: RMB 2,877,968.69) were restricted as a risk
margin for express payment business. As of December 31, 2023, a bank deposit with a book
value of RMB 7,220,000.00 (December 31, 2022: RMB 7,220,000.00) was used as a
performance bond for the civil defense project of the hotel plot of the Yiwu Global Digital Free
Trade Center project. As of December 31, 2023, the bank deposit with a book value of RMB
1,447,839.34 (December 31, 2022: none) was used as special funds for S3 Logistics Park and
Yidongbei Engineering Project, and the ownership or use rights were restricted. As of December
31, 2023, a bank deposit with a book value of RMB 0.00 (December 31, 2022: RMB 60.97) was
used as a security deposit to obtain a mortgage loan for commercial housing, and the ownership
or use rights were restricted.
Note 3: As of December 31, 2023, inventory with a book value of RMB 8,925,585.77
(December 31, 2022: none) was seized by the court due to litigation.
Note 4: As of December 31, 2023, long-term equity investments with a book value of RMB
102,918,559.00 (December 31, 2022: RMB 102,918,559.00) and other non-current financial
assets with a book value of RMB 631,520,588.85 (December 31, 2022: RMB 621,447,424.37)
were frozen by the Second Intermediate People's Court of Shanghai.
Note 5: As of December 31, 2023, the payment business reserve fund with a book value of
RMB 313,869,496.74 (December 31, 2022: RMB 367,484,914.87) was established by the
Company in accordance with the "Administrative Measures for Payment Services of Non-
financial Institutions" and "Measures for the Custody of Customer Reserve Funds of Payment
Institutions" Bank special deposit account. The scope of funds stored and received by the
Company through the customer reserve account includes: funds received from bank card
acquiring business, third-party payment convenience service business, credit card repayment
business, credit payment settlement business, and other part of the Company's business.
32. Short-term borrowings
(1). Classification of short-term borrowings
√Applicable □Not applicable
Unit: RMB
Item Closing balance Opening balance
Credit loans 1,619,804,888.91 1,059,287,361.11
Total 1,619,804,888.91 1,059,287,361.11
Note to the classification of short-term borrowings:
No
(2). Overdue short-term borrowings
□Applicable √Not applicable
The important overdue and unpaid short-term loansare as follows:
□Applicable √Not applicable
Other statements
√Applicable □Not applicable
As of December 31, 2023, the annual interest rate of the above-mentioned loan was 2.95%
-3.75% (December 31, 2022: 2.35% -4.151%).
33. Held-for-trading financial liabilities
□Applicable √Not applicable
Other notes:
□Applicable √Not applicable
34. Derivative financial liabilities
□Applicable √Not applicable
202 / 289
2023 Annual Report
35. Notes payable
(1). Presentation of notes payable
□Applicable √Not applicable
36. Accounts payable
(1). Presentation of accounts payable
√Applicable □Not applicable
Unit: RMB
Item Closing balance Opening balance
Accounts payable for market and 1,158,111,539.96 881,114,454.44
auxiliary works projects
Accounts payable for logistics 180,132,641.98 216,635,705.68
park projects
Accounts payable for 29,601,176.89 17,465,421.40
procurement for the hotel project
Trade payables 12,022,684.89 58,894,383.76
Other 10,386,805.55 17,204,438.87
Total 1,390,254,849.27 1,191,314,404.15
(2). Important accounts payable with an aging of over 1 year or overdue
□Applicable √Not applicable
Other statements
√Applicable □Not applicable
The accounts payable are free of interest and are generally paid within two months after
receipt of the payment notice or based on the project contracts and progress of projects. The
balance payments for the projects are made after completion of settlement.
37. Advances from customers
(1). Presentation of advances from customers
√Applicable □Not applicable
Unit: RMB
Item Closing balance Opening balance
Advance receipt of 373,307,194.00 639,009,194.79
merchant payment
Rental advances 224,790,926.84 236,525,969.44
Other 4,266,275.80 10,458,105.25
Total 602,364,396.64 885,993,269.48
(2). Important advances with the age over 1 year
□Applicable √Not applicable
(3). Amount of and reasons for material changes to book value during the reporting period
□Applicable √Not applicable
Other statements
√Applicable □Not applicable
Due to the fact that prepayments mainly come from prepaid merchant payments and
prepaid rent, with relatively small individual amounts, there were no single large prepayments
with an aging of more than 1 year as of December 31, 2023.
203 / 289
2023 Annual Report
38. Contract liabilities
(1). Overview of contract liabilities
√Applicable □Not applicable
Unit: RMB
Item Closing balance Opening balance
Advances from customers 3,034,398,081.66 2,982,431,412.43
for use fee of shops
Advances from customers 820,058,121.03 653,697,926.33
for goods
Advances from customers 141,534,555.46 228,163,127.56
for advertising fee
Advances from customers 16,677,298.52 17,747,693.18
for use fee of networking
cables
Advances from customers 9,350,894.14 11,119,366.97
for loyalty ofbrands
Advances from customers 5,090,581.43 31,199,591.78
for housing purchase
Other 39,470,433.49 66,678,903.31
Total 4,066,579,965.73 3,991,038,021.56
(2). Significant contractual liabilities with an aging of over 1 year
□Applicable √Not applicable
(3). Amount of and reasons for material changes to book value during the reporting
period
□Applicable √Not applicable
Other notes:
□Applicable √Not applicable
39. Payroll payable
(1). Presentation of payroll payable
√Applicable □Not applicable
Unit: RMB
Increase in the Decrease in the Closing
Item Opening balance
current period current period balance
I. Short-term compensation 179,702,065.74 486,402,894.67 518,009,339.80 148,095,620.61
II. Post employment benefits – 3,433,248.77 31,953,916.99 35,009,527.83 377,637.93
defined contribution plan
III. Severance benefits - 1,428,540.80 1,428,540.80 -
Total 183,135,314.51 519,785,352.46 554,447,408.43 148,473,258.54
204 / 289
2023 Annual Report
(2). Presentation of short-term compensation
√Applicable □Not applicable
Unit: RMB
Increase in the Decrease in the Closing
Item Opening balance
current period current period balance
1. Salary, bonus, allowance and 178,068,953.19 391,454,219.31 421,716,444.51 147,806,727.99
subsidy
2. Employee benefits - 39,628,080.38 39,628,080.38 -
3. Social security contribution 1,271,605.09 19,271,833.41 20,375,796.24 167,642.26
In which: contribution to medical 1,094,163.11 18,513,195.27 19,527,208.57 80,149.81
insurance scheme
Contribution to work- 118,960.20 716,616.49 777,639.15 57,937.54
related injury insurance scheme
Contribution to maternity 58,481.78 42,021.65 70,948.52 29,554.91
insurance scheme
4. Housing provident fund 63,951.00 26,027,789.00 26,008,936.00 82,804.00
5. Contribution to trade union 297,556.46 10,020,972.57 10,280,082.67 38,446.36
fund and employee education
fund
Total 179,702,065.74 486,402,894.67 518,009,339.80 148,095,620.61
(3). Presentation of defined contribution plan
√Applicable □Not applicable
Unit: RMB
Opening Increase in the Decrease in the Closing
Item
balance current period current period balance
1. Contribution to the 3,232,206.01 30,904,130.35 33,772,733.76 363,602.60
basic endowment
insurance scheme
2. Contribution to the 201,042.76 1,049,786.64 1,236,794.07 14,035.33
unemployment
insurance scheme
Total 3,433,248.77 31,953,916.99 35,009,527.83 377,637.93
Other notes:
□Applicable √Not applicable
40. Tax payable
√Applicable □Not applicable
Unit: RMB
Item Closing balance Opening balance
VAT 12,041,528.84 56,402,798.28
Corporate income tax 179,050,896.50 6,138,842.64
Individual income tax 1,153,545.22 1,275,355.73
Urban maintenance and 101,195.78 2,521,434.47
construction tax
Land appreciation tax - 66,652.63
Real estate tax 86,296,272.76 84,142,438.27
Land use tax 67,659,355.62 60,454,035.23
Other 1,882,454.99 3,996,867.16
Total 348,185,249.71 214,998,424.41
Other notes:
As of December 31, 2023, the main taxes prepaid by the Group were as follows: Unit:
RMB
Item Qiantang Occident Center Total amount of
205 / 289
2023 Annual Report
Impression Real Real Estate prepaid tax
Estate Project Project
Business tax 240,013.55 - 240,013.55
Urban maintenance and
- 731,793.32 731,793.32
construction tax
Land appreciation tax 247,373.48 247,373.48
Education surcharge and local
- 522,709.51 522,709.51
education surcharge
Total 240,013.55 1,501,876.31 1,741,889.86
41. Other payables
(1). Presentation of items
√Applicable □Not applicable
Unit: RMB
Item Closing balance Opening balance
Other payables 1,862,720,723.00 1,325,596,105.43
Total 1,862,720,723.00 1,325,596,105.43
Other notes:
□Applicable √Not applicable
(2). Interest payable
Presentation by category
□Applicable √Not applicable
Significant overdue interests payable:
□Applicable √Not applicable
Other notes:
□Applicable √Not applicable
(3). Dividend payable
Presentation by category
□Applicable √Not applicable
(4). Other payables
Presentation of other payables by nature
√Applicable □Not applicable
Unit: RMB
Item Closing balance Opening balance
Pending investment refunds 977,172,602.34 429,637,665.00
Withholdings, deposit and 490,913,484.14 490,392,164.12
margin
Operating expenses 320,135,730.30 284,502,534.04
payable
Restricted stock incentive 74,367,173.75 120,092,075.00
plan
Other 131,732.47 971,667.27
Total 1,862,720,723.00 1,325,596,105.43
Significant other payables with an aging of over 1 year or overdue
□Applicable √Not applicable
206 / 289
2023 Annual Report
Other notes:
□Applicable √Not applicable
42. Held-for-sale liabilities
□Applicable √Not applicable
43. Non-current liabilities due within one year
√Applicable □Not applicable
Unit: RMB
Item Closing balance Opening balance
Long-term borrowings 93,995,355.93 345,934.69
within one year
Bonds payable due within 1 61,508,191.79 61,508,191.79
year
Lease liabilities due within 1 23,637,246.52 24,998,166.53
year
Total 179,140,794.24 86,852,293.01
Other notes:
No
44. Other current liabilities
Other current liabilities
√Applicable □Not applicable
Unit: RMB
Item Closing balance Opening balance
Short-term financing notes payable 3,025,604,467.02 3,012,256,419.90
Payment business transactions 360,157,213.40 397,125,623.54
Tax for items to be charged off 124,426,245.96 59,992,173.80
Dividend announced but not 2,083,112.65 2,083,112.65
collected before listing
Dividend payable to to-be- 2,653,400.82 2,449,697.11
recognized accounts
Total 3,514,924,439.85 3,473,907,027.00
207 / 289
2023 Annual Report
Changes in short-term bonds payable:
√Applicable □Not applicable
Unit: RMB
Current Interest Repayment in
Coupon Whether
Bond Face Issuing Bond Issuing Repayment in accrued Premium/discount the current
rate Opening Balance Closing Balance it was
Name value Date Term Amount the current based on face amortization period
(%) overdue
period value
Super
Short-
September 240
term 100 2.09 1,000,000,000.00 1,005,457,214.61 - 7,901,917.81 383,333.34 1,013,742,465.76 - No
21, 2022 days
Financing
Bond
Super
Short-
October 240
term 100 2.30 1,000,000,000.00 1,003,733,756.28 - 10,901,369.86 480,555.56 1,015,115,681.70 - No
26, 2022 days
Financing
Bond
Super
Short-
November 120
term 100 3.00 1,000,000,000.00 1,003,065,449.01 - 6,575,342.47 222,222.22 1,009,863,013.70 - No
22, 2022 days
Financing
Bond
Super
Short-
March 20, 179
term 100 2.85 1,000,000,000.00 - 999,502,777.78 13,976,712.33 497,222.22 1,013,976,712.33 - No
2023 days
Financing
Bond
Super
Short-
May 17, 177
term 100 2.57 1,000,000,000.00 - 999,515,068.49 12,462,739.73 484,931.51 1,012,462,739.73 - No
2023 days
Financing
Bond
Super
Short-
June 20, 269
term 100 2.68 1,000,000,000.00 - 999,252,777.78 14,317,808.22 538,888.89 - 1,014,109,474.89 No
2023 days
Financing
Bond
208 / 289
2023 Annual Report
Super
Short-
September 210
term 100 2.72 1,000,000,000.00 - 999,424,657.53 8,197,260.27 216,675.00 - 1,007,838,592.80 No
13, 2023 days
Financing
Bond
Super
Short-
November 268
term 100 2.78 1,000,000,000.00 - 999,267,759.57 4,112,876.71 275,763.05 - 1,003,656,399.33 No
8, 2023 days
Financing
Bond
Total / / / / 8,000,000,000.00 3,012,256,419.90 4,996,963,041.15 78,446,027.40 3,099,591.79 5,065,160,613.22 3,025,604,467.02 /
Other notes:
√Applicable □Not applicable
As of December 31, 2023, the annual interest rate of the above-mentioned short-term financing bonds was 2.09% -3.00% (December 31, 2022:
1.75% -3.00%).
209 / 289
2023 Annual Report
45. Long-term borrowings
(1). Classification of long-term borrowings
√Applicable □Not applicable
Unit: RMB
Item Closing balance Opening balance
Credit loans 956,794,218.96 404,845,934.69
Long-term borrowings due -93,995,355.93 -345,934.69
within one year
Total 862,798,863.03 404,500,000.00
Notes on the classification of long-term borrowings:
No
Other notes:
√Applicable □Not applicable
As of December 31, 2023, the annual interest rate of the above-mentioned loans was 2.70%
-3.20% (December 31, 2022: 2.70% -2.90%)
46. Bonds payable
(1). Bonds payable
√Applicable □Not applicable
Unit: RMB
Item Closing balance Opening balance
Bonds payable 3,559,960,676.26 3,558,925,011.54
Bonds payable due within -61,508,191.79 -61,508,191.79
one year
Total 3,498,452,484.47 3,497,416,819.75
210 / 289
2023 Annual Report
(2). Specific situation of payable bonds: (excluding preferred stocks, perpetual bonds, and other financial instruments classified as financial
liabilities)
√Applicable □Not applicable
Unit: RMB
Repay Whe
Fac Issuing ment ther
Coupo Premium/disc Transferred in this
Bond e Issuing Bond Issuing in the Interest accrued in the it
n rate Opening Balance ount year and due within Closing Balance
Name valu Date Term Amount current based on face value curren was
(%) amortization one year
e period t over
period due
Feb 24,
MTN 100 3.29 3Y 1,000,000,000.00 999,177,980.44 - 27,942,465.75 365,065.82 - 27,942,465.75 999,543,046.26 No
2022
Mar 29,
MTN 100 3.57 3Y 500,000,000.00 499,572,104.09 - 13,546,438.36 182,028.04 - 13,546,438.36 499,754,132.13 No
2022
Jul 20,
MTN 100 3.00 3Y 500,000,000.00 499,516,212.89 - 6,739,726.03 183,057.80 - 6,739,726.03 499,699,270.69 No
2022
Corpo
Sep 1,
rate 100 2.88 3Y 800,000,000.00 799,551,093.23 - 7,701,041.10 163,021.75 - 7,701,041.10 699,762,450.85 No
2022
bonds
Corpo
Sep 22,
rate 100 2.88 3Y 700,000,000.00 699,599,429.10 - 5,578,520.55 142,491.31 - 5,578,520.55 799,693,584.54 No
2022
bonds
Total / / / / 3,500,000,000.00 3,497,416,819.75 - 61,508,191.79 1,035,664.72 - 61,508,191.79 3,498,452,484.47 /
(3). Description of convertible corporate bonds
□Applicable √Not applicable
Accounting treatment and judgment basis for equity conversion
□Applicable √Not applicable
(4). Notes on other financial instruments classified as financial liabilities
Basic information of other financial instruments such as preferred shares and perpetual bonds outstanding at the end of the reporting period
□Applicable √Not applicable
Changes in other financial instruments such as preferred shares and perpetual bonds outstanding at the end of the reporting period
□Applicable √Not applicable
211 / 289
2023 Annual Report
The basis for classifying other financial instruments as financial liabilities:
□Applicable √Not applicable
Other notes:
□Applicable √Not applicable
212 / 289
2023 Annual Report
47. Lease liabilities
√Applicable □Not applicable
Unit: RMB
Item Closing balance Opening balance
Undiscounted amount of 295,896,757.48 320,577,235.56
finance lease payables
Unrecognized financing -95,427,304.70 -88,955,333.06
charges
Lease liabilities due within 1 -23,637,246.52 -24,998,166.53
year
Total 176,832,206.26 206,623,735.97
Other notes:
Note: The Group uses the incremental borrowing rate of 2.78%-8.01% as the discount rate
to calculate book value to determine the lease liability and measure right-of-use assets.
48. Long-term accounts payable
Presentation of items
□Applicable √Not applicable
Other notes:
□Applicable √Not applicable
Long-term accounts payable
(1). Long-term payables by nature
□Applicable √Not applicable
Special accounts payable
(1). Special payables by nature
□Applicable √Not applicable
49. Long-term payroll payable
□Applicable √Not applicable
50. Estimated liabilities
√Applicable □Not applicable
Unit: RMB
Item Opening balance Closing balance Cause of formation
Pending L/C losses 110,620,306.10 -
Total 110,620,306.10 - /
Other notes, including the notes on related important assumptions and estimates of important
estimated liabilities:
In 2017, the letters of credit issued by the Group’s subsidiary based on international trade
agency business became overdue successively due to the principals’ failure to make payments
as agreed. Based on the principle of prudence, the Group recognized estimated liabilities for
the estimated potential losses. On June 30, 2023, the Intermediate People's Court of Jinhua
City, Zhejiang Province made a judgment that the Group was not liable for compensation.
51. Deferred income
Overview of deferred income
√Applicable □Not applicable
Unit: RMB
Decrease in
Opening Increase in the Closing Cause of
Item the current
balance current period balance formation
period
213 / 289
2023 Annual Report
Asset-related
103,582,129.94 58,272,000.00 1,421,473.71 160,432,656.23
government grants
Total 103,582,129.94 58,272,000.00 1,421,473.71 160,432,656.23 /
Other notes:
√Applicable □Not applicable
In 2023, the Group received an investment reward of RMB 58,272,000.00 from the Yiwu
Free Trade Development Zone Management Committee for the construction of the Yiwu
Cross-border E-commerce Logistics Park.
52. Other non-current liabilities
□Applicable √Not applicable
53. Capital stock
√Applicable □Not applicable
Unit: RMB
Increase or decrease in the current period (+, -)
Shares
Opening balance Issued converted Closing balance
Bonus
new from Other Sub-total
shares
shares provident
funds
Total 5,486,074,176.00 - - - -1,740,000.00 - 5,484,334,176.00
number 1,740,000.00
of
shares
Other notes:
On December 28, 2022, the Company held the 6th Meeting of the 9th Board of Directors
and the 2nd Meeting of the 9th Board of Supervisors, and reviewed and approved the Proposal
on the Satisfaction of the Unlocking Conditions for the First Unlocking Period of the Reserved
Grant Part of the 2020 Restricted Stock Incentive Plan. There were a total of 338 incentive
objects whose restricted shares could be unlocked, and the total number of restricted shares
that could be unlocked was 13.1736 million; On October 19, 2023, the Company held the 13th
Meeting of the 9th Board of Directors and the 6th Meeting of the 9th Board of Supervisors, and
reviewed and approved the Proposal on the Satisfaction of the Unlocking Conditions for the First
Unlocking Period of the Reserved Grant Part of the 2020 Restricted Stock Incentive Plan. There
were a total of 29 incentive objects whose restricted shares could be unlocked, and a total of
727,700 restricted shares could be released from restrictions and were listed for circulation on
November 6, 2023.
On August 17, 2023, the 12th Meeting of the 9th Board of Directors and the 5th Meeting of
the 9th Board of Supervisors of the Group approved the Proposal on Adjusting the Repurchase
Price of Restricted Stocks and Repurchasing and Cancelling Some Restricted Stocks. According
to Chapter 14 of the Incentive Plan - the Principle of Cancelling Restricted Stock Repurchases,
21 incentive recipients who had been transferred or resigned no longer met the requirements of
the Company's incentive plan regarding incentive recipients. The Board of Directors of the
Company decided to cancel the qualification of the above-mentioned incentive objects and
repurchase and cancel all 1,740,000.00 restricted shares that had been granted but had not yet
been unlocked for sale; the repurchase price of shares in the first grant was RMB 2.747 per
share, and the repurchase price of shares in the reserved grant was calculated based on the
sum of RMB 2.252 per share plus interest calculated at fixed deposit interest rate published by
the People's Bank of China in the same period. The total amount of funds for this repurchase
was RMB 4.9315 million, all of which was paid with the Company's own funds. The equity
cancellation was completed on November 20, 2023.
214 / 289
2023 Annual Report
Through this restricted stock repurchase, the share capital decreased by RMB 1,740,000
this year.
54. Other equity instruments
(1). Basic information of other financial instruments such as preferred shares and
perpetual bonds outstanding at the end of the reporting period
□Applicable √Not applicable
(2). Changes in other financial instruments such as preferred shares and perpetual bonds
outstanding at the end of the reporting period
□Applicable √Not applicable
Changes in other equity instruments in the current period, the reasons therefor and the basis
for relevant accounting treatment:
□Applicable √Not applicable
Other notes:
□Applicable √Not applicable
55. Capital reserve
√Applicable □Not applicable
Unit: RMB
Decrease in
Increase in the
Item Opening balance the current Closing balance
current period
period
Capital surplus
(share 1,549,909,197.11 30,340,348.50 3,334,350.00 1,576,915,195.61
premium)
Stock incentive 63,106,263.66 16,506,969.91 30,340,348.50 49,272,885.07
Other 38,130,573.19 2,563,433.73 - 40,694,006.92
Total 1,651,146,033.96 49,410,752.14 33,674,698.50 1,666,882,087.60
Other notes including those on the changes in the current period and the reasons therefor:
This year, the Group repurchased and cancelled some restricted shares, as detailed in Note
VII. 53. The repurchase resulted in a reduction of RMB 3,334,350.00 in corresponding capital
reserve.
This year, the Group unlocked some restricted shares. Please refer to Note VII. 53 for details.
The corresponding capital reserve for the unlocking restricted shares was RMB 30,340,348.50.
The confirmed share-based payment expense for this year was RMB 16,506,969.91, which
was included in the capital reserve.
This year, other shareholders of Hangzhou Weiyi Technology Co., Ltd., an associated
company of the Group, injected capital, resulting in an increase of RMB 2,563,433.73 in capital
reserve.
56. Treasury shares
√Applicable □Not applicable
Unit: RMB
Opening Increase in the Decrease in the
Item Closing balance
balance current period current period
Restricted
stock incentive 119,483,675.00 - 45,116,501.25 74,367,173.75
plan
Total 119,483,675.00 - 45,116,501.25 74,367,173.75
Other notes including those on the changes in the current period and the reasons therefor:
215 / 289
2023 Annual Report
This year, the Group unlocked some restricted shares. Please refer to Note VII. 53 for details.
The corresponding decrease in treasury shares for the unlocking of restricted shares was RMB
45,116,501.25.
57. Other comprehensive income
√Applicable □Not applicable
Unit: RMB
Amount in the current period
Amount after
Amount
Opening tax Closing
Item before tax Less: income
Balance attributable to Balance
incurred in the tax
parent
current period
company
I. Other
comprehensive
income that cannot -40,818,470.36 57,696,575.32 14,424,143.83 43,272,431.49 2,453,961.13
be reclassified into
profit or loss
Change in fair
value of other equity
-40,818,470.36 57,696,575.32 14,424,143.83 43,272,431.49 2,453,961.13
instruments
investment
II. Other
comprehensive
income to be 16,809,996.76 4,130,739.43 - 4,130,739.43 20,940,736.19
reclassified into profit
or loss
Other comprehensive
income that can be
transferred into profit 4,060,531.46 885,012.68 - 885,012.68 4,945,544.14
and loss under equity
method
Difference arising
from the translation of
12,749,465.30 3,245,726.75 - 3,245,726.75 15,995,192.05
foreign currency
financial statements
Total other
comprehensive -24,008,473.60 61,827,314.75 14,424,143.83 47,403,170.92 23,394,697.32
income
Other notes, including those on the adjustment of the initially recognized amount of hedged
items converted from the effective part of gains or losses from cash flow hedging:
No
58. Special reserve
□Applicable √Not applicable
59. Surplus reserve
√Applicable □Not applicable
Unit: RMB
Item Opening balance Increase in the Decrease in Closing balance
current period the current
period
216 / 289
2023 Annual Report
Statutory 1,564,198,440.14 263,568,294.29 - 1,827,766,734.43
surplus reserve
Discretionary 40,195,855.68 - - 40,195,855.68
surplus reserve
Other 11,688,840.91 - - 11,688,840.91
Total 1,616,083,136.73 263,568,294.29 - 1,879,651,431.02
Notes on surplus reserves, including those on the changes in the current period and the
reasons therefor:
According to the “Company Law” and the Company’s articles of association, the Company
accrued a statutory surplus reserve in terms of 10% of its net profit. If the amount of statutory
surplus reserve accrued reaches more than 50% of the Company's registered capital, the accrual
may cease.
The Company can accrue free surplus reserve after accruing the statutory surplus reserve.
With the approval, the free surplus reserve can be used to make up for previous losses or to
increase share capital.
60. Undistributed profits
√Applicable □Not applicable
Unit: RMB
Item Current period Previous period
Undistributed profits at the end of the 6,651,440,591.35 6,059,496,846.85
previous reporting period before
adjustment
Opening undistributed profits after 6,651,440,591.35 6,059,496,846.85
adjustment
Plus: net profits attributable to 2,676,182,133.26 1,104,719,091.71
shareholders of the parent company in the
current period
Less: withdrawal of statutory surplus 263,568,294.29 110,873,341.23
reserve
General risk reserve 3,854,655.84 1,038,991.13
Common share dividend payable 356,594,821.44 400,863,014.85
Closing undistributed profits 8,703,604,953.04 6,651,440,591.35
Details of the adjustment of opening undistributed profits:
1. Due to the retrospective adjustment of the Enterprise Accounting Standards and related new
regulations, the affected undistributed profit at the beginning of the period was 0.
2. Due to changes in accounting policies, the affected undistributed profit at the beginning of
the period was 0.
3. Due to significant accounting error correction, the affected undistributed profit at the
beginning of the period was 0.
4. Due to changes in the scope of consolidation caused by the same control, the affected
undistributed profit at the beginning of the period was 0.
5. The opening undistributed profits affected by other adjustments together amounted to
RMB0.
61. Operating revenue and operating cost
(1). Overview of operating revenue and operating cost
√Applicable □Not applicable
Unit: RMB
Amount in the current period Amount in the previous period
Item
Revenue Cost of sales Revenue Cost of sales
Main 10,934,994,717.64 8,162,868,195.76 7,326,780,315.71 6,335,697,349.64
business
Other 364,691,948.25 142,873,583.64 292,913,426.89 117,212,480.32
businesses
217 / 289
2023 Annual Report
Total 11,299,686,665.89 8,305,741,779.40 7,619,693,742.60 6,452,909,829.96
218 / 289
2023 Annual Report
(2). Breakdown information of operating revenue and operating costs
√Applicable □Not applicable
Unit: RMB
Total
Classified by type of contract
Operating revenue Operating cost
Types of goods
Seles of goods 6,808,056,513.21 6,757,830,498.54
The use of shops in the China 3,031,842,382.25 704,097,568.67
Commodities City markets and the supporting
services for operation
Lease 373,627,518.33 214,422,193.06
Hotel accommodation and catering 336,598,318.68 281,897,490.22
services
Usage fee 18,907,795.24 -
Other services 730,654,138.18 347,494,028.92
Classified by business area
Chinese Mainland 11,256,474,935.89 8,274,792,382.65
Overseas 43,211,730.00 30,949,396.75
Classification by time of good transfer
Transfer at a certain point in time 7,128,957,734.62 6,896,162,715.99
Transfer within a certain period of time 4,170,728,931.27 1,409,579,063.41
Total 11,299,686,665.89 8,305,741,779.40
Other statements
√Applicable □Not applicable
The income recognized in the current year and included in the opening book value of
contractual liabilities is as follows:
Unit: RMB
Type of contract Current period
Sales of goods 603,726,924.61
The use of shops in the China Commodities City
3,031,842,382.25
markets and the supporting services for operation
Hotel accommodation service 8,997,757.36
Other services 334,919,223.10
Total 3,979,486,287.32
(3). Contract performance obligations
√Applicable □Not applicable
Unit: RMB
Whether The types of
The
Time for Nature of the the quality
expected
fulfilling goods that Company assurance
Important refunds to
Item performanc the Company is the provided by
payment terms customers
e promises to main the Company
borne by the
obligations transfer responsibl and related
Company
e person obligations
Advance payment
When
or right to receive Trade retail
Sales of goods delivering Yes - No
payment after goods
goods
delivery of goods
The use of Part of the deposit Shop use
shops in the When will be collected in right /
China providing advance, and the supporting Yes - No
Commodities services remaining amount services for
City markets will be collected operation
219 / 289
2023 Annual Report
and the upon completion
supporting of the
services for performance
operation
Hotel When Collection upon Hotel
accommodation providing completion of accommodati Yes - No
business services performance on service
Upon
Collection upon
Hotel catering completion Catering
completion of Yes - No
business of the services
performance
service
When
Fixed -time paid Fund
providing Regular collection Yes - No
funding services sources
services
Total / / / / /
(4). Amortization to remaining contract performance obligations
□Applicable √Not applicable
(5). Significant contract changes or significant transaction price adjustments
□Applicable √Not applicable
Other notes:
In the year 2023, there was no revenue recognized in this period for performance
obligations already fulfilled (or partially fulfilled) in the previous period.
62. Taxes and surcharges
√Applicable □Not applicable
Unit: RMB
Amount in the current period Amount in the previous
Item
period
Real estate tax 112,941,296.37 118,168,544.44
Land use tax 15,339,027.73 60,280,050.01
Stamp duty 6,934,464.49 6,790,568.05
Urban maintenance and 5,991,837.64 6,479,070.41
construction tax
Education surcharge 2,570,032.07 2,800,755.18
Local education surcharge 1,713,355.49 1,867,176.45
Cultural undertaking 625,040.28 470,626.83
development fee
Land appreciation tax 78,890.36 2,035,123.43
Travel tax 2,880.00 2,040.00
Consumption tax 56.64 -
Business tax - 13,549.21
Total 146,196,881.07 198,907,504.01
Other notes:
No
63. Sales expenses
√Applicable □Not applicable
6. Unit: RMB
Amount in the current Amount in the previous
Item
period period
Marketing expenses 147,857,976.01 89,853,590.72
220 / 289
2023 Annual Report
Security and insurance
47,339,389.32 33,844,271.39
expenses
Advertising expenses 26,938,539.96 31,743,030.06
Water, electricity and fuel
7,168,737.31 6,953,269.50
expenses
Depreciation and amortization 1,150,159.95 17,375,946.53
Other 9,849,218.46 17,909,872.89
Total 240,304,021.01 197,679,981.09
Other notes:
No
64. Administrative expenses
√Applicable □Not applicable
Unit: RMB
Item Amount in the current Amount in the previous
period period
Employee and uniform expenses 340,116,581.08 317,219,351.11
Depreciation and amortization 139,058,190.70 96,689,173.47
Intermediary expenses 19,596,664.75 19,137,790.40
Office expenses 17,489,523.41 14,118,875.61
Travel expenses 7,492,084.48 2,365,796.11
Branch establishment expenses - 40,895,776.63
Other 35,778,586.33 39,039,507.38
Total 559,531,630.75 529,466,270.71
Other notes:
No
65. R&D expenses
√Applicable □Not applicable
Unit: RMB
Item Amount in the current Amount in the previous
period period
Labor cost 16,183,479.36 8,829,647.10
Technology development fee 5,154,049.92 4,449,479.90
Depreciation and amortization 165,003.33 3,981,240.06
Other 246,454.69 116,794.82
Total 21,748,987.30 17,377,161.88
Other notes:
No
66. Financial expenses
√Applicable □Not applicable
Unit: RMB
Item Amount in the Amount in the previous
current period period
Interest expenses 269,457,747.37 280,924,664.39
Amortization of discount on short-term 4,135,256.51 4,370,938.50
financing bonds, medium-term notes, and
corporate bonds
Less: interest income 67,433,620.70 132,216,250.44
221 / 289
2023 Annual Report
Less:capitalized amount of interest 78,823,138.80 1,860,833.33
Foreign exchange gains or losses -4,963,053.99 -17,091,915.89
Other 2,638,768.94 15,022,286.57
Total 125,011,959.33 149,148,889.80
Other notes:
The capitalized amount of borrowing costs has been included in the construction in
progress.
222 / 289
2023 Annual Report
67. Other income
√Applicable □Not applicable
Unit: RMB
Classified by nature Amount in the current period Amount in the previous
period
Government subsidies 32,220,817.34 38,802,684.45
related to daily activities
Total 32,220,817.34 38,802,684.45
Other notes:
No
68. Investment income
√Applicable □Not applicable
Unit: RMB
Amount in the Amount in the
Item
current period previous period
Income from long-term equity investment 1,035,858,139.92 996,108,417.69
calculated with the equity method
Investment income from held-for-trading 273,136.58 448,207.50
financial assets during holding period
Dividend income from other equity instruments 3,762,820.14 12,542,733.80
investment during holding period
Interest income from debt investment during 2,525,847.12 79,561.64
holding period
Investment income from disposal of held-for- 1,763,697.53 1,841,491.90
trading financial assets
Income acquired from other non-current 13,835,189.60 26,916,977.43
financial assets during the holding period
Investment income from disposal of other non- -420,758.60 2,118,067.24
current financial assets
Investment income from disposal of wealth 1,182,345.06 1,469,407.05
management products
Investment income generated from the disposal 9,663,095.13 -
of subsidiaries
Total 1,068,443,512.48 1,041,524,864.25
Other notes:
No
69. Income from net exposure hedging
□Applicable √Not applicable
70. Income from changes in fair value
√Applicable □Not applicable
Unit: RMB
Sources of income from changes Amount in the current Amount in the previous
in fair value period period
Held-for-trading financial assets 823,330.00 -3,886,171.10
223 / 289
2023 Annual Report
Other non-current financial -53,253,864.83 -1,376,305.49
assets
Total -52,430,534.83 -5,262,476.59
Other notes:
No
71. Loss of impairment of credit
√Applicable □Not applicable
Unit: RMB
Amount in the current Amount in the previous
Item
period period
Bad debt loss of accounts 2,051,497.83 -2,024,409.36
receivable
Loss for bad debts of other 85,453.80 209,404.41
receivables
Total 2,136,951.63 -1,815,004.95
Other notes:
No
72. Loss of impairment of assets
□Applicable √Not applicable
73. Income from disposal of assets
√Applicable □Not applicable
Unit: RMB
Item Amount in the current period Amount in the previous
period
Profit and loss on disposal of 158,156,221.58 -941,780.66
fixed assets
Gains and losses from the -4,355,964.93 -
disposal of intangible assets
Total 153,800,256.65 -941,780.66
Other notes:
No
74. Revenue from non-operating activities
Information of non-operating incomes
√Applicable □Not applicable
Unit: RMB
Amount
recognized in
Amount in the Amount in the profit or loss of
Item
current period previous period nonrecurring
items for the
current period
Reversal of estimated liabilities 110,620,306.10 - 110,620,306.10
Incomes from liquidated 5,852,243.61 4,025,760.93 5,852,243.61
damages
Government grants not related 450,000.00 239,122.00 450,000.00
to the daily activities of the
Company
Other 2,644,569.60 3,234,387.95 2,644,569.60
Total 119,567,119.31 7,499,270.88 119,567,119.31
Other notes:
224 / 289
2023 Annual Report
□Applicable √Not applicable
75. Expenses from non-operating activities
√Applicable □Not applicable
Unit: RMB
Amount
recognized in
Amount in the Amount in the profit or loss of
Item
current period previous period nonrecurring
items for the
current period
Total loss for disposal of non- 14,686,312.67 188,806.68
14,686,312.67
current assets
Including: loss for disposal of 14,625,133.03 188,806.68
14,625,133.03
property, plant and equipment
Income from disposal of 61,179.64
61,179.64
intangible assets
External donation 200,000.00 3,393,094.06 200,000.00
Other 1,931,657.80 622,929.19 1,931,657.80
Total 16,817,970.47 4,204,829.93 16,817,970.47
Other notes:
No
76. Income tax expenses
(1). Overview of income tax expenses
√Applicable □Not applicable
Unit: RMB
Amount in the current Amount in the previous
Item
period period
Current income tax expenses 517,100,995.28 49,512,382.53
Deferred income tax expenses 9,567,949.07 -3,306,682.14
Total 526,668,944.35 46,205,700.39
(2). Adjustment process of accounting profits and income tax expenses
√Applicable □Not applicable
Unit: RMB
Item Amount in the
current period
Profits before tax 3,208,071,559.14
Income tax expenses calculated at the statutory/applicable tax rate 802,017,889.79
Impact of different tax rates applied by subsidiaries -4,424,663.56
Effect of adjusting income tax of previous period -21,856,875.52
Effect of non-taxable income -277,753,023.77
Effect of non-deductible costs, expenses and losses 112,513.91
Effect of using deductible losses of unrecognized deferred income tax -18,466,164.71
assets in previous period
Effect of deductible temporary differences or deductible losses of 47,039,268.21
unrecognized deferred income tax assets in the current period
Income tax expenses 526,668,944.35
Other notes:
□Applicable √Not applicable
225 / 289
2023 Annual Report
77. Other comprehensive income
√Applicable □Not applicable
For details, please refer to Note 57. Other comprehensive income
78. Items of cash flow statement
(1). Cash related to operating activities
Other cash receipts relating to operating activities
√Applicable □Not applicable
Unit: RMB
Item Amount in the current Amount in the previous
period period
Deposit and margin received 116,180,416.00 231,395,229.79
Bank deposit interest income 131,393,012.77
received 67,433,620.70
Bank reserve received 16,787,007.99 2,217,933.25
Government grants received 89,521,343.63 64,453,832.77
Received penalty for breach of 4,025,760.93
contract 5,852,243.61
Other 2,000,849.63 1,230,207.23
Total 297,775,481.56 434,715,976.74
Notes on other cash receipts relating to operating activities:
No
Other cash payments relating to operating activities
√Applicable □Not applicable
Unit: RMB
Item Amount in the current Amount in the previous
period period
Major expenses paid 314,258,977.01 270,289,936.11
Deposit and security paid 142,111,784.58 219,259,625.81
Repair costs and expenses paid 68,046,525.32 62,055,970.52
Other 252,418.45 3,728,976.21
Total 524,669,705.36 555,334,508.65
Notes on other cash payments relating to operating activities:
No
(2). Cash related to investment activities
Cash received related to important investment activities
√Applicable □Not applicable
Unit: RMB
Item Amount in the current Amount in the
period previous period
Net cash received from disposal of -
subsidiaries and other business units 12,482,830.94
Total 12,482,830.94 -
Description of cash received related to important investment activities
No
Cash paid related to important investment activities
√Applicable □Not applicable
Unit: RMB
226 / 289
2023 Annual Report
Item Amount in the Amount in the
current period previous period
Net cash paid by acquiring subsidiaries and 312,616,964.11
other business units -
Total - 312,616,964.11
Description of cash paid related to important investment activities
No
Other cash receipts relating to investing activities
√Applicable □Not applicable
Unit: RMB
Item Amount in the current Amount in the
period previous period
Subsidies to joint ventures and 900,328,548.00
associates 212,650,200.00
Investment return received to be 358,879,565.00
confirmed 587,256,408.09
Total 799,906,608.09 1,259,208,113.00
Notes on other cash receipts relating to investing activities:
No
Other cash payments relating to investing activities
√Applicable □Not applicable
Unit: RMB
Item Amount in the current Amount in the previous
period period
Payment of financial assistance 41,772,885.00
funds 34,806,218.75
Total 34,806,218.75 41,772,885.00
Other cash paid related to investment activities:
No
(3). Cash related to financing activities
Other cash receipts relating to financing activities
□Applicable √Not applicable
Other cash payments relating to financing activities
√Applicable □Not applicable
Unit: RMB
Item Amount in the current Amount in the previous
period period
Restricted stock cancellation 14,934,064.64
payment paid 4,931,526.57
Lease payments paid 38,068,599.31 35,194,742.95
Total 43,000,125.88 50,128,807.59
Other cash paid related to financing activities:
No
227 / 289
2023 Annual Report
Changes in liabilities arising from financing activities
√Applicable □Not applicable
Unit: RMB
Increase in the current period Decrease in the current period
Item Opening balance Closing balance
Cash changes Non-cash changes Cash changes Non-cash changes
Short-term borrowings 1,059,287,361.11 2,000,000,000.00 10,517,527.80 1,450,000,000.00 - 1,619,804,888.91
Non-current liabilities due - 179,140,794.24 86,852,293.01 - 179,140,794.24
within one year 86,852,293.01
Other current liabilities 3,012,256,419.90 4,997,945,194.88 81,545,619.18 5,066,142,766.94 - 3,025,604,467.02
Long-term borrowings 404,500,000.00 596,638,863.03 855,355.93 45,200,000.00 93,995,355.93 862,798,863.03
Bonds payable 3,497,416,819.75 - 62,543,856.51 - 61,508,191.79 3,498,452,484.47
Lease liabilities 206,623,735.97 - 8,277,069.60 14,431,352.79 23,637,246.52 176,832,206.26
Total 8,266,936,629.74 7,594,584,057.91 342,880,223.26 6,662,626,412.74 179,140,794.24 9,362,633,703.93
228 / 289
2023 Annual Report
(4). Description of cash flows reported on a net basis
□Applicable √Not applicable
(5). Significant activities and financial impacts that do not involve current cash inflows
and outflows but affect the financial condition of the enterprise or may affect the cash
flow of the enterprise in the future
√Applicable □Not applicable
Unit: RMB
Item 2023 2022
Income from reversal of expected liabilities for 110,620,306.10 -
liquidated damages in international trade agency
business
79. Supplements to cash flow statement
(1). Supplements to cash flow statement
√Applicable □Not applicable
Unit: RMB
Amount in the Amount in the
Supplements
current period previous period
1. Adjust net profits to cash flow from operating activities:
Net profits 2,681,402,614.79 1,103,601,132.21
Plus: provision for impairment of assets - -
Loss of impairment of credit -2,136,951.63 1,815,004.95
Depreciation of fixed assets, depletion of oil and gas 379,513,456.85 360,066,867.91
assets and depreciation of bearer biological assets
Amortization of right-of-use assets 37,145,011.30 35,119,185.43
Amortization of intangible assets 229,747,637.69 171,380,383.22
Depreciation and amortization of investment real estate 153,648,676.82 129,649,410.69
Amortization of long-term prepaid expenses 88,083,379.01 63,268,555.84
Decrease in expected liabilities -110,620,306.10 -
Loss from disposal of fixed assets, intangible assets
-153,800,256.65 564,167.30
and other long-term assets (gains indicated by “-”)
Loss from fixed assets retirement (gains indicated by
14,686,312.67 188,806.68
“-”)
Loss from changes in fair value (gains indicated by “-”) 52,430,534.83 5,262,476.59
Financial expenses (gains indicated by “-”) 195,547,220.46 300,670,345.73
Investment loss (gains indicated by “-”) -1,086,606,024.98 -1,093,839,888.05
Decrease in deferred income tax assets (increase 34,989,888.72
-1,003,615.63
indicated by “－”)
Increase in deferred income tax liabilities (decrease -25,421,939.66
-2,303,066.49
indicated by “－”)
Decrease in inventory (increase indicated by “－”) 83,106,862.96 -2,892,260.80
Decrease in operating receivables (increase indicated -764,673,004.73
210,882,645.92
by “－”)
Increase in operating payables (decrease indicated by 21,509,767.66
89,496,906.62
“－”)
Other 16,506,969.91 28,163,655.65
Net cash flow from operating activities 1,845,059,849.92 1,400,090,713.77
2. Significant investing and financing activities not involving cash receipt and payment:
3. Net changes in cash and cash equivalents:
Closing balance of cash 2,910,178,939.19 1,981,200,941.64
Less: opening balance of cash 1,981,200,941.64 4,006,468,325.47
229 / 289
2023 Annual Report
Add: closing balance of cash equivalents
Less: opening balance of cash equivalents
Net increase in cash and cash equivalents 928,977,997.55 -2,025,267,383.83
(2). Net cash paid for acquisition of subsidiaries in the current period
□Applicable √Not applicable
(3). Net cash received from disposal of subsidiaries in the current period
√Applicable □Not applicable
Unit: RMB
Amount
Cash or cash equivalents received for disposal of 23,924,400.00
subsidiaries in the current period
Bank deposits 23,924,400.00
Less: Cash and cash equivalents held by the Company on 11,441,569.06
the date of loss of control
Bank deposits 11,441,569.06
Add: Cash or cash equivalents received in the current -
period from the disposal of the subsidiary in the previous
period
Net cash received from disposal of subsidiaries 12,482,830.94
Other notes:
On December 19, 2022, the wholly-owned subsidiary of the Company, Yiwu China
Commodities City Logistics and Warehousing Co., Ltd. (hereinafter referred to as "Logistics and
Warehousing Company"), publicly listed and transferred its 60% equity of Yiwu Huanqiu Yida
Logistics Co., Ltd. on the Yiwu Property Rights Exchange.
On February 2, 2023, Logistics and Warehousing Company received a public listing transfer
transaction notice from the Yiwu Property Rights Exchange, and on February 3, received an
equity transfer payment of RMB 23.9244 million after deducting the transaction service fee of
RMB 195,600.
On February 21, 2023, Logistics and Warehousing Company signed an equity transfer
agreement with Zhejiang Zhijie Yuangang International Supply Chain Technology Co., Ltd.,
agreeing that Logistics and Warehousing Company would transfer its held equity of Yiwu
Huanqiu Yida Logistics Co., Ltd., for a registered capital of RMB 30 million (60% of the total
registered capital), to Zhejiang Zhijie Yuangang International Supply Chain Technology Co., Ltd.
and completed the amendment of the articles of association and industrial and commercial
registration of Yiwu Huanqiu Yida Logistics Co., Ltd. on the same day.
(4). Composition of cash and cash equivalents
√Applicable □Not applicable
Unit: RMB
Item Closing balance Opening balance
I. Cash 2,910,178,939.19 1,981,200,941.64
In which: cash on hand 249,915.87 220,471.11
Bank deposit that can be used for payment at 2,909,921,203.08 1,980,229,200.48
any time
Other monetary capital that can be used for 7,820.24 751,270.05
payment at any time
II. Cash equivalents
Including: bond investments due within three
months
III. Closing balance of cash and cash equivalents 2,910,178,939.19 1,981,200,941.64
230 / 289
2023 Annual Report
Including:cash and cash equivalents with
restricted use by the parent company or its 12,556,381.42 10,098,029.66
subsidiaries
(5). Situations where the scope of use is limited but still listed as cash and cash
equivalents
□Applicable √Not applicable
(6). Monetary funds that do not belong to cash and cash equivalents
□Applicable √Not applicable
Other notes:
□Applicable √Not applicable
80. Notes to items in statement of changes in owners’ equity
Names of “others” items whose closing balances in the previous year are adjusted and the
amounts of adjustments:
□Applicable √Not applicable
81. Foreign currency monetary items
(1). Foreign currency monetary items
√Applicable □Not applicable
Unit: RMB
Closing amount
Closing balance in after conversation:
Item Exchange rate
foreign currency RMB
Balance
Cash and cash equivalents
In which: USD 13,929,827.95 7.0827 98,660,792.42
EURO 50,031.35 7.8592 393,206.39
Rwandan Franc 6,283,437.00 0.0056 35,250.08
Dirham 37,176.25 1.9326 71,845.11
Koruna 2,563,165.56 0.3175 813,703.35
Accounts receivable
In which: USD 30,535.19 7.0827 216,271.59
EURO 9,898.57 7.8592 77,794.84
Koruna 14,954,701.88 0.3175 4,747,524.41
Other receivables
In which: USD 229,798.71 7.0827 1,627,595.32
EURO 68,110.55 7.8592 535,294.43
Koruna 18,078,776.74 0.3175 5,739,294.20
Accounts payable
In which: USD 623,635.14 7.0827 4,417,020.61
Koruna 206,795.57 7.8592 65,649.39
Other payables
In which: USD 1,545,900.71 7.0827 10,949,150.96
EURO 25,492.67 7.8592 200,351.99
Koruna 137,630,939.10 0.3175 43,692,361.62
Other notes:
No
231 / 289
2023 Annual Report
(2). Description of overseas operations, for important overseas operations, also includes
the disclosure of principal overseas place of business, bookkeeping currency and
the basis for selection, and the reason for the change in bookkeeping currency.
□Applicable √Not applicable
82. Lease
(1) As a lessee
√Applicable □Not applicable
Variable lease payments not included in the measurement of lease liabilities
□Applicable √Not applicable
Simplified short-term lease or low-value assets leasing expenses
√Applicable □Not applicable
Simplified short-term lease expenses of RMB 22,693,210.45 included in the current gains.
Simplified low-value assets lease expenses of RMB 457,533.27 included in the current gains.
Leaseback transactions and judgment basis
□Applicable √Not applicable
The total cash outflow related to leasing was RMB 38,068,599.31.
(2) As a lessor
Operating lease as lessor
□Applicable √Not applicable
Financing lease as lessor
□Applicable √Not applicable
Adjustment table for undiscounted lease receipts and net lease investments
□Applicable √Not applicable
Undiscounted lease receipts for the next five years
□Applicable √Not applicable
(3) Confirmed gains and losses of financing lease sales as a manufacturer or distributor
□Applicable √Not applicable
Other statements
The leased assets of the Group include houses, buildings, land use rights, and other
equipment used in the operating process. The lease term for houses and buildings is usually 2-
5 years, and the lease term for land use rights is 10 years.
For right-of-use assets, see Note VII. 25; for lease liabilities, please refer to Note VII. 47.
83. Other
□Applicable √Not applicable
VIII. R&D expenditure
(1). Listed by nature of expenses
√Applicable □Not applicable
Unit: RMB
Item Amount in the current Amount in the previous
period period
Labor cost 37,912,543.15 32,297,207.29
Technology development fee 9,327,714.50 11,980,011.94
232 / 289
2023 Annual Report
Depreciation and amortization 1,010,603.36 4,304,601.41
Other 407,409.81 716,588.19
Total 48,658,270.82 49,298,408.83
Among them: Expensed R&D 21,748,987.30 17,377,161.88
expenditure
Capitalized R&D expenditure 26,909,283.52 31,921,246.95
Other notes:
No
(2). R&D project development expenditure that meet capitalization criteria
√Applicable □Not applicable
Unit: RMB
Increase in the Decrease in the
Opening current period current period
Closing amount
Item amount Internal Recognized as
Balance
Balance development intangible
expenditure assets
Kuaijietong Core
4,108,355.16 4,900,821.08 5,346,188.96 3,662,987.28
Payment System
The development
project for
552,640.71 22,008,462.44 7,575,648.50 14,985,454.65
platform
“chinagoods”
Total 4,660,995.87 26,909,283.52 12,921,837.46 18,648,441.93
Important capitalized research and development projects
□Applicable √Not applicable
Provision for impairment of development expenditure
□Applicable √Not applicable
Other statements
No
(3). Important outsourced projects under research
□Applicable √Not applicable
IX. Changes in consolidation scope
1. Mergers of enterprises not under common control
□Applicable √Not applicable
2. Mergers of the enterprises under common control
√Applicable □Not applicable
(1). Mergers of enterprises under the same control that occurred in this period
□Applicable √Not applicable
(2). Merger cost
□Applicable √Not applicable
233 / 289
2023 Annual Report
(3). The book value of assets and liabilities of the merged party on the merger date
□Applicable √Not applicable
Other notes:
No
3. Reverse acquisition
□Applicable √Not applicable
234 / 289
2023 Annual Report
4. Disposal of subsidiaries
Whether there were any transactions or events that resulted in the loss of control over a subsidiary in this period
√Applicable □Not applicable
Unit: RMB
Difference
between the Method and The amount of
consideration main other
of the assumption comprehensiv
The book
disposal and Fair value of s for e income
value of the Gains or
Disposa Disposa the share in remaining determining related to
Remaining remaining losses from
Consideration l ratio at l Basis for the equity at the the fair equity
shareholdin equity at the the
Time of of the the method determinin subsidiary’s consolidate value of investments in
Name of g ratio on consolidate remaining
loss of disposal at point of s at the g the point net assets in d financial remaining the original
subsidiary the date of d financial shareholdin
control the point of loss of point of of loss of the statement equity at the subsidiary
loss of statement g re-
loss of control control loss of control consolidated level on the consolidate transferred to
control (%) level on the calculated
(%) control financial date of loss d financial investment
date of loss by fair value
statement of control statement gains and
of control
correspondin level on the losses or
g to the date of loss retained
investment of control earnings
disposed
Yiwu Januar 24,120,000.0 60 Equity Both 9,663,095.13 - - - - NA -
Huanqiuyid y 31, 0 transfer parties
a Logistics 2023 completed
Co., Ltd. the equity
transfer
procedures
Other notes:
√Applicable □Not applicable
The relevant financial information of Yiwu Huanqiu Yida Logistics Co., Ltd. is as follows:
Unit: RMB
January 31, 2023
Current assets 12,384,901.06
Non-current assets 10,002,530.76
Current liabilities 1,313,280.50
Non-current liabilities -
Net assets 21,074,151.32
Did the Group dispose of subsidiaries through multiple transactions and lose control in the current period?
235 / 289
2023 Annual Report
□Applicable √Not applicable
Other notes:
□Applicable √Not applicable
5. Changes in consolidation scope for other reasons
Changes in the consolidation scope for other reasons (e.g. new establishment of subsidiaries, liquidation of subsidiaries, etc.) and the related
information:
√Applicable □Not applicable
In this period, the Company established a subsidiary, Yiwu Yandoo Shangtu Catering Co., Ltd., and cancelled a subsidiary, Yiwu China
Commodities City Commerce and Trade Service Training Center Co., Ltd.
6. Other
□Applicable √Not applicable
236 / 289
2023 Annual Report
X. Equity in Other Entity
1. Equity in subsidiaries
(1). Composition of the enterprise group
√Applicable □Not applicable
Unit: RMB 10,000
Shareholdi
Main
Place of ng ratio
Subsidiary place of Registere Acquisition
registrat Business (%)
Name busines d capital Method
ion Dire Indir
s
ct ect
Yiwu China
Commoditi
Yiwu, Yiwu,
es City 10,000.0
Zhejian Zhejian Wholesale 100 Establishment
Import and 0
g g
Export Co.,
Ltd.
Yiwu China
Commoditi
es City Yiwu, Yiwu,
10,000.0
Supply Zhejian Zhejian Wholesale 100 Establishment
0
Chain g g
Manageme
nt Co., Ltd.
Yiwu
Comprehe
nsive
Bonded Yiwu, Yiwu,
10,000.0 Business
Zone Zhejian Zhejian 100 Establishment
0 service
Operation g g
and
Manageme
nt Co., Ltd.
Yiwu China
Commoditi
es City
Yiwu, Yiwu,
Overseas 10,000.0 Business
Zhejian Zhejian 100 Establishment
Investment 0 service
g g
and
Developme
nt Co., Ltd.
Yiwu China
Commoditi
Yiwu, Yiwu,
es City 10,000.0 Business
Zhejian Zhejian 100 Establishment
Tourism 0 service
g g
Developme
nt Co., Ltd.
Yiwu China
Commoditi
es City
Yiwu, Yiwu,
Assets Business
Zhejian 1,000.00 Zhejian 100 Establishment
Operation service
g g
and
Manageme
nt Co., Ltd.
237 / 289
2023 Annual Report
Zhejiang
Yindu Yiwu, Yiwu,
Business
Hotel Zhejian 1,000.00 Zhejian 100 Establishment
service
Manageme g g
nt Co., Ltd.
Yiwu
Yandoo Yiwu, Yiwu,
Business
Shangtu Zhejian 500.00 Zhejian 100 Establishment
service
Catering g g
Co., Ltd
Yiwu China
Commoditi
Yiwu, Yiwu,
es City Business
Zhejian 1,000.00 Zhejian 100 Establishment
Research service
g g
Institute
Co., Ltd.
Yiwu
Shangbo
Yiwu, Yiwu,
Shuzhi 30,000.0 Business
Zhejian Zhejian 100 Establishment
Enterprise 0 service
g g
Manageme
nt Co., Ltd.
Software
Yiwu China and
Commoditi Yiwu, Yiwu, Informatio
10,000.0
es City Big Zhejian Zhejian n 100 Establishment
0
Data Co., g g Technolog
Ltd. y Service
Industry
Yiwu Profession
Xinlian Yiwu, Yiwu, al
Technolog Zhejian 1,000.00 Zhejian technical 51 Establishment
y Service g g service
Co., Ltd. industry
Yiwu
Commoditi
Yiwu, Yiwu,
es City 20,000.0 Real
Zhejian Zhejian 100 Establishment
Gonglian 0 estate
g g
Property
Co., Ltd.
Yiwu
Shangbo
Yuncang
Enterprise
Manageme
nt Co., Ltd. Yiwu, Yiwu,
30,000.0 Real
(formerly Zhejian Zhejian 100 Establishment
0 estate
known as g g
Yiwu
Shangbo
Real
Estate Co.,
Ltd.)
Yiwu China Yiwu, Yiwu,
Commoditi Zhejian 5,000.00 Zhejian IT 100 Establishment
es City g g
238 / 289
2023 Annual Report
Information
Technolog
y Co., Ltd.
Yiwu China
Commoditi
Yiwu, Yiwu,
es City 400,000. Financial
Zhejian Zhejian 100 Establishment
Financial 00 industry
g g
Holdings
Co., Ltd.
Yiwu China
Commoditi Multimoda
es City l transport
Yiwu, Yiwu,
Logistics 10,000.0 and
Zhejian Zhejian 100 Establishment
and 0 transporta
g g
Warehousi tion
ng Co., agency
Ltd.
Yiwu China
Commoditi Yiwu, Yiwu,
Business
es City Zhejian 3,000.00 Zhejian 98 2 Establishment
service
Exhibition g g
Co., Ltd.
Zhejiang
Huajie
Yiwu, Yiwu,
Investment 50,000.0 Business Incorporation+acq
Zhejian Zhejian 96.4
and 0 service uisition
g g
Developme
nt Co., Ltd.
European
Prague, Prague,
Huajie
Czech CZK1,58 Czech Business Incorporation+acq
Investment 96.4
Republi 0.00 Republi service uisition
Developme
c c
nt Co., Ltd.
Zhejiang
China
Commoditi
es City Yiwu, Yiwu,
20,000.0 Financial
Group Zhejian Zhejian 60 40 Establishment
0 industry
Commerci g g
al
Factoring
Co., Ltd.
Zhejiang
Yiwugou Yiwu, Yiwu,
10,000.0
E- Zhejian Zhejian IT 51 Establishment
0
commerce g g
Co., Ltd.
Yiwu
Xingchen
Enterprise
Manageme Yiwu, Yiwu,
15,000.0
nt Co., Ltd. Zhejian Zhejian IT 100 Establishment
0
(former g g
name:
Yiwu China
Commodity
239 / 289
2023 Annual Report
City
Payment
Network
Technolog
y Co., Ltd.)
Yiwu China
Commoditi Yiwu, Yiwu,
Advertisin
es City Zhejian 1,000.00 Zhejian 100 Establishment
g
Advertising g g
Co., Ld.
Yiwu
Internation
al Trade Yiwu, Yiwu,
10,000.0
Comprehe Zhejian Zhejian Wholesale 60 Establishment
0
nsive g g
Service
Co., Ltd.
Yiwu China
Commoditi
Yiwu, Yiwu,
es City
Zhejian 1,000.00 Zhejian Service 85 Establishment
Credit
g g
Investigatio
n Co., Ltd.
Yiwu
Aiximao
Yiwu, Yiwu,
Supply
Zhejian 500.00 Zhejian Service 100 Establishment
Chain
g g
Manageme
nt Co., Ltd.
Yiwu China
Commoditi
es City
Yiwu, Yiwu,
Internet Financial Incorporation+acq
Zhejian 1,000.00 Zhejian 100
Financial industry uisition
g g
Information
Service
Co., Ltd.
Yiwu China
Commodity
City RMB
Yiwu, Yiwu,
and Financial
Zhejian 1,000.00 Zhejian 100 Establishment
Foreign industry
g g
Currency
Exchange
Co., Ltd.
Hangzhou
Hangzh Hangzh
Shangbo
ou, ou, Real
Nanxing 5,000.00 100 Establishment
Zhejian Zhejian estate
Property
g g
Co., Ltd.
Haicheng
Haichen Haichen
Yiwu China
g, 60,000.0 g, Real
Commoditi 95 Establishment
Liaonin 0 Liaonin estate
es City
g g
Investment
240 / 289
2023 Annual Report
Developme
nt Co., Ltd.
Ningxia
Yiwu China
Commodity Shizuis Shizuis
City Supply han, 2,000.00 han, Service 100 Establishment
Chain Ningxia Ningxia
Manageme
nt Co., Ltd.
Yiwu China
Commoditi
es City
Hong Hong
(Hong HKD
Kong, Kong, Wholesale 100 Establishment
Kong) 1.00
China China
Internation
al Trade
Co., Ltd.
Hong Kong
Hong Hong
Better Silk HKD
Kong, Kong, Service 100 Establishment
Road Co., 10800.00
China China
Ltd.
Huafrica
(Kenya)
Investment Nairobi, KES Nairobi,
Service 100 Establishment
Developme Kenya 3000.00 Kenya
nt Co.,
Limited
BETTER
Dubai, AED Dubai,
SILK Service 100 Establishment
UAE 5040.00 UAE
ROAD FZE
BETTER
SILK
Kigali, RWF Kigali,
ROAD Service 100 Establishment
Rwanda 27000.00 Rwanda
RWANDA
Ltd
Yiwu
Yiwu, Yiwu,
Zheqing
Zhejian 2,200.00 Zhejian Wholesale 100 Establishment
Trading
g g
Co., Ltd.
Yiwu China
Frankfur Frankfur
Commodity
t, EUR t,
City Service 100 Establishment
German 100.00 German
(Germany)
y y
Co., Ltd.
Yiwu China
Commoditi
Madrid, EUR Madrid,
es City Service 100 Establishment
Spain 20.00 Spain
(Spain)
Co., Ltd.
Zhejiang
Hangzh Hangzh
Xunchi
ou, 19,000.0 ou,
Digital IT 100 Acquisition
Zhejian 0 Zhejian
Technolog
g g
y Co., Ltd.
Kuaijietong Hangzh 18,000.0 Hangzh
IT 100 Acquisition
Payment ou, 0 ou,
241 / 289
2023 Annual Report
Service Zhejian Zhejian
Co., Ltd. g g
Explanation for the difference between the shareholding ratio and voting right ratio in a
subsidiary:
No
Basis for holding half or less voting rights in but still controlling an investee, and holding more
than half of the voting rights in but not controlling an investee:
No
Basis for controlling important structured entities included in the consolidation scope:
No
Basis for determining whether a company is an agent or a principal:
No
Other notes:
No
242 / 289
2023 Annual Report
(2). Important non-wholly-owned subsidiaries
√Applicable □Not applicable
Unit: RMB
Dividends declared to be
Minority Profits or losses attributable
distributed to minority Closing balance of
Name of subsidiary shareholders’ to minority shareholders in
shareholders for the current minority interest
shareholding ratio the current period
period
Zhejiang Yiwugou E-commerce 49.00% 10,163,252.63 - 60,894,351.29
Co., Ltd.
Haicheng Company 5.00% -5,020,346.01 - -52,440,215.21
Explanation for the difference between the shareholding ratio and voting right ratio of minority shareholders in a subsidiary:
□Applicable √Not applicable
Other notes:
□Applicable √Not applicable
(3). Major financial information of important non-wholly-owned subsidiaries
√Applicable □Not applicable
Unit: RMB 10,000
Closing balance Opening balance
Name of Non- Non- Non- Non-
Current Total Current Total Current Total Current Total
subsidiary current current current current
assets assets liabilities liabilities assets assets liabilities liabilities
assets liabilities assets liabilities
Zhejiang
Yiwugou
E- 12,224.24 5,653.21 17,877.45 5,450.03 - 5,450.03 9,108.24 5,688.44 14,796.68 4,438.90 4.49 4,443.39
commerce
Co., Ltd.
Haicheng
109,040.55 83,210.84 192,251.39 297,131.82 - 297,131.82 112,283.93 89,899.98 202,183.91 297,023.65 - 297,023.65
Company
Amount in the current period Amount in the previous period
Name of Total Total
Operating Cash flow from Operating Cash flow from
subsidiary Net profits comprehensive Net profits comprehensive
revenue operating activities revenue operating activities
income income
243 / 289
2023 Annual Report
Zhejiang
Yiwugou E-
6,410.06 2,074.13 2,074.13 1,847.41 4,881.33 1,206.88 1,206.88 2,240.52
commerce Co.,
Ltd.
Haicheng
5,163.04 -10,045.22 -10,045.22 -3,939.04 24,288.25 -8,909.95 -8,909.95 -1,114.29
Company
Other notes:
No
244 / 289
2023 Annual Report
(4). Significant restrictions on the use of enterprise group’s assets and the settlement of
enterprise group’s debts
□Applicable √Not applicable
(5). Financial or other supports provided to structured entities included in the scope of
consolidated financial statements
□Applicable √Not applicable
Other notes:
□Applicable √Not applicable
2. Transactions in which the Group’s share of owners’ equity in a subsidiary
changes and the Group still controls the subsidiary
□Applicable √Not applicable
3. Equity in joint ventures or associates
√Applicable □Not applicable
(1). Important joint ventures or associates
√Applicable □Not applicable
Shareholding Accounting
ratio (%) treatment
Main place method of
Name of joint venture or Place of
of Business investment in
associate registration
business Direct Indirect the joint
venture or
associate
Joint venture
Yiwu Shanglv Investment Yiwu, Yiwu,
Real estate 49 Equity method
Development Co., Ltd. Zhejiang Zhejiang
Yiwu Huishang Redbud Capital Yiwu, Yiwu, Financial
20 Equity method
Management Co., Ltd. Zhejiang Zhejiang industry
Yiwu Rongshang Property Co., Yiwu, Yiwu,
Real estate 49 Equity method
Ltd. Zhejiang Zhejiang
Yiwu Chuangcheng Property Co., Yiwu, Yiwu,
Real estate 24 Equity method
Ltd. Zhejiang Zhejiang
Yiwu Guoshen Shangbo Property Yiwu, Yiwu,
Real estate 49 Equity method
Co., Ltd. Zhejiang Zhejiang
Associate
Yiwu Huishang Redbud Equity Yiwu, Yiwu, Commercial
10.42 Equity method
Investment Co., Ltd. (Note 6) Zhejiang Zhejiang services
Zhejiang Chouzhou Financial Hangzhou, Yiwu, Financial
26 Equity method
Lease Co., Ltd. Zhejiang Zhejiang industry
Yiwu Huishang Redbud Phase II Lease and
Yiwu, Yiwu,
Investment Partnership (limited business 10.41 Equity method
Zhejiang Zhejiang
partnership) [Note 7] service
Yiwu Hongyi Equity Investment
Yiwu, Yiwu, Financial
Fund Partnership (limited 49.98 Equity method
Zhejiang Zhejiang industry
partnership)
Pujiang, Pujiang,
Pujiang Lvgu Property Co., Ltd. Real estate 49 Equity method
Zhejiang Zhejiang
Yiwu China Commodities City Yiwu, Yiwu,
Real estate 49 Equity method
Property Development Co., Ltd. Zhejiang Zhejiang
245 / 289
2023 Annual Report
Technology
promotion
Zhejiang Zhijie Yuangang
Yiwu, Yiwu, and
International Supply Chain 27 Equity method
Zhejiang Zhejiang application
Technology Co., Ltd.
service
industry
Explanation for the difference between the shareholding ratio and voting right ratio in a joint
venture or associate:
No
Bases for holding less than 20% of the voting rights but having significant influence, or holding
20% or more of the voting rights but not having significant influence:
Note 6: The Company held 10.42% (2022: 10.42%) of equity of Yiwu Huishang Redbud
Equity Investment Co., Ltd. (hereinafter referred to as "Redbud Equity Investment"), but
regarded it as an associated company of the Company. According to Redbud Investment’s
articles of association, it is engaged in investing and its important financial and operating
decision-making activities are to pick and manage investment projects, which have been fully
entrusted to the Company’s joint venture Yiwu Huishang Redbud Capital Management Co., Ltd.
(“Redbud Capital”). Redbud Capital picks and manages investment projects via its investment
decision-making committee. Except for special investment matters, which are subject to the
resolution of Redbud Investment’s board of directors, other important financial and operating
decision-making activities are conducted by Redbud Capital on the behalf of Redbud Investment.
Therefore, the Company was able to exercise significant influence on Redbud Investment in
which the Company held 10.42% of total equity.
Note 7: The Company held 10.41% (2022: 9.43% ) equity of Yiwu Huishang Redbud Phase
II Investment Partnership (Limited Partnership) (“Redbud Phase II”), but regarded it as an
associated company of the Company. According to Redbud Phase II’s articles of association, it
is engaged in investing and its important financial and operating decision-making activities are
to pick and manage investment projects, which have been fully entrusted to the Company’s joint
venture Redbud Capital. Redbud Capital picks and manages investment projects via its
investment decision-making committee. Except for special investment matters, which are subject
to the resolution of Redbud Phase II’s board of directors, other important financial and operating
decision-making activities are conducted by Redbud Capital on the behalf of Redbud Phase II.
Therefore, the Company could exert significant influence on Redbud Phase II of which the
Company held 10.41% equity.
246 / 289
2023 Annual Report
(2). Main financial information of important joint ventures
□Applicable □Not applicable
Unit: RMB 10,000
Closing balance/amount in the current period Opening balance/amount in the previous period
Yiwu Shanglv Yiwu Yiwu Guoshen Yiwu Yiwu Yiwu Guoshen
Rongshang Chuangcheng Shangbo Shanglv Rongshang Chuangcheng Shangbo
Property Property Property Property
Current assets 5,868.55 13,398.19 37,987.32 237,167.69 6,039.08 13,547.12 47,538.36 1,251,563.25
In which: cash and cash
4,831.90 49.30 95.43 18,717.68 4,316.44 198.23 540.41 88,677.29
equivalents
Non-current assets 125,809.14 - 1.30 43.43 129,575.34 - 2.12 2,979.93
Total assets 131,677.69 13,398.19 37,988.62 237,211.12 135,614.42 13,547.12 47,540.47 1,254,543.18
Current liabilities 39,666.74 0.09 25,119.76 47,982.62 39,891.24 148.98 34,353.43 1,237,514.91
Non-current liabilities - - 1,333.18 - 11,566.36 - 1,333.17 1,571.12
Total liabilities 39,666.74 0.09 26,452.94 47,982.62 51,457.60 148.98 35,686.60 1,239,086.02
Shareholders’ equity attributable to
92,010.95 13,398.10 11,535.68 189,228.50 84,156.82 13,398.14 11,853.87 15,457.16
parent company
Share of net assets calculated
45,085.36 6,565.07 2,768.56 92,721.97 41,236.84 6,565.09 2,844.93 7,574.01
based on shareholding ratio
Adjustments -1,492.37 - - - -1,539.60 - - -
--Unrealized profits of internal
-1,492.37 - - - -1,539.60 - - -
transactions
Book value of equity investment in
43,592.99 6,565.07 2,768.56 92,721.97 39,697.24 6,565.09 2,844.93 7,574.01
joint ventures
Operating revenue 24,671.44 - - 1,126,150.25 17,580.08 395,959.62 302,152.46 56,974.31
Financial expenses 918.04 -0.10 0.38 -127.32 1,608.93 -0.94 -33.92 -1,139.10
Income tax expenses 2,644.13 0.14 285.55 56,464.96 454.50 573.35 18,521.80 3,912.35
Net profits 7,854.06 -0.04 -318.19 173,771.35 2,618.68 87,577.34 56,192.82 10,525.21
Total comprehensive income 7,854.06 -0.04 -318.19 173,771.35 2,618.68 87,577.34 56,192.82 10,525.21
Dividends received from joint
- - - - - 58,086.56 19,447.68 -
ventures this year
247 / 289
2023 Annual Report
Other statements
No
(3). Main financial information of important associates
√Applicable □Not applicable
Unit: RMB 10,000
Closing balance/amount in the current period Opening balance/amount in the previous period
Chouzhou Hongyi CCCP Pujiang Zhijie Chouzhou Hongyi CCCP Pujiang Zhijie
Financial Fund Lvgu Yuangang Financial Fund Lvgu Yuangang
Lease Lease
Current assets 101,696.23 15,500.19 2,046,024.61 127,841.28 57,624.29 77,387.23 25,476.19 1,752,170.30 121,318.40 45,894.85
Non-current assets 1,917,528.55 170,802.46 46,906.23 6,373.07 3,134.11 1,605,298.30 163,831.11 43,109.75 777.45 137.68
Total assets 2,019,224.78 186,302.65 2,092,930.84 134,214.36 60,758.39 1,682,685.53 189,307.30 1,795,280.05 122,095.85 46,032.53
Current liabilities 1,209,345.22 2,275.47 1,239,064.78 59,238.51 20,449.28 1,132,279.05 89.88 1,029,256.12 45,646.63 2,363.50
Non-current liabilities 588,800.25 - 201,027.66 4,303.02 - 362,250.51 - 147,172.22 - -
Total liabilities 1,798,145.47 2,275.47 1,440,092.44 63,541.53 20,449.28 1,494,529.55 89.88 1,176,428.34 45,646.63 2,363.50
Shareholders’ equity
attributable to parent 221,079.31 184,027.18 652,838.40 70,672.83 40,309.11 188,155.98 189,217.42 618,851.71 76,449.22 43,669.03
company
Share of net assets
calculated based on 57,480.62 91,958.38 312,067.18 34,629.69 10,883.38 48,920.55 94,570.87 303,237.34 37,460.12 11,790.64
shareholding ratio
Adjustments 15.26 -1,475.01 177.26 334.48 2,314.82 - -6.66 -4,689.27 423.84 2,765.71
--Unrealized profits of
15.26 -1,475.01 177.26 334.48 2,314.82 - -6.66 -4,689.27 423.84 2,765.71
internal transactions
Book value of equity
investment in joint 57,495.88 90,483.37 312,244.44 34,964.17 13,198.20 48,920.55 94,564.21 298,548.07 37,883.96 14,556.34
ventures
Operating revenue 71,405.89 - 292,351.52 2.75 55,854.47 56,469.66 - 209,890.13 9,831.72 2,554.69
Net profits 32,923.33 3,055.34 28,003.14 -5,776.39 -5,030.15 24,301.81 10,670.77 43,105.17 2,642.70 -1,330.97
Total comprehensive
32,923.33 3,055.34 28,003.14 -5,776.39 -5,030.15 24,301.81 10,655.05 43,105.17 2,642.70 -1,330.97
income
248 / 289
2023 Annual Report
Dividend on
associates received - - - - - - - - 8,820.00 -
in the current year
Other statements
No
249 / 289
2023 Annual Report
(4). Summary financial information of unimportant joint ventures and associates
√Applicable □Not applicable
Unit: RMB
Closing balance/amount in Opening balance/amount in
the current period the previous period
Joint ventures:
Total book value of 30,629,677.74 31,984,094.03
investments
Total amounts of the following items calculated based on shareholding ratio
--Net profits -1,354,416.29 -54,341,295.28
--Other comprehensive -
-
income
--Total comprehensive -1,354,416.29
-54,341,295.28
income
Associates:
Total book value of 451,803,256.03 489,944,751.13
investments
Total amounts of the following items calculated based on shareholding ratio
--Net profits -39,026,507.78 15,004,810.36
--Other comprehensive 885,012.68
4,139,085.99
income
--Total comprehensive -38,141,495.10
19,143,896.35
income
Other statements
No
(5). Restrictions on the ability of joint ventures or associates to transfer money to the
Company
□Applicable √Not applicable
(6). Excess losses of joint ventures or associates
□Applicable √Not applicable
(7). Unrecognized commitments relating to investment in joint ventures
□Applicable √Not applicable
(8). Contingent liabilities relating to investment in joint ventures or associates
□Applicable √Not applicable
4. Important joint operations
□Applicable √Not applicable
5. Equity in structured entities not included in the consolidated financial
statements
Notes on structured entities not included in the consolidated financial statements:
□Applicable √Not applicable
6. Other
□Applicable √Not applicable
250 / 289
2023 Annual Report
XI. Government grants
1. Government subsidies recognized by accounts receivable at the end of the reporting
period
√Applicable □Not applicable
Closing balance of accounts receivable 0 (unit: RMB)
Reasons for not receiving the expected amount of government subsidies at the expected time
point
□Applicable √Not applicable
2. Liabilities items involving government subsidies
√Applicable □Not applicable
Unit: RMB
Amount
included
Increase in in non- Transferred Other
Financial
Opening grant amount operating to other changes Closing Related to
statement
balance in the current income income in in this balance assets/income
items
period in the this period period
current
period
Deferred 103,582,129.94 58,272,000.00 - 1,421,473.71 - 160,432,656.23 Asset-related
income
Total 103,582,129.94 58,272,000.00 - 1,421,473.71 - 160,432,656.23 /
3. Government grants recognized in the profit or loss for the current period
√Applicable □Not applicable
Unit: RMB
Amount in the previous
Type Amount in the current period
period
Asset-related 1,421,473.71 1,421,473.68
Income-related 30,799,343.66 37,381,210.77
Total 32,220,817.37 38,802,684.45
Other notes:
No
251 / 289
2023 Annual Report
XII. Risks associated with financial instruments
1. Risk of financial instruments
√Applicable □Not applicable
The risks associated with financial instruments faced by the Group in regular activities
mainly include credit risk, liquidity risk and market risk. The risk management policies of the
Group for these risks are outlined below.
The Group diversifies its investment and business portfolio appropriately to diversify
financial instrument risks, and reduces risks concentrated in any single industry, specific region,
or specific counterparty by formulating corresponding risk management policies.
Credit risk
The Group only deals with the recognized third parties with good reputation. According to
its policy, the Group needs to carry out credit review on all clients who require to deal with the
Group on credit. In addition, the Group keeps monitoring the balance of accounts receivable to
ensure it will not face any material bad debt risk. For the transactions settled other than in the
functional currency of related business entities, unless with specific approval of the Group’s
credit control department, the Group will not provide the conditions for dealing on credit.
As the counterparties to the transactions of cash are banks with good reputation and high
credit ratings, the credit risk of those financial instruments is relatively low.
Other financial assets of the Group include accounts receivable, other receivables, other
current assets, debt investments, long-term receivables, and other non-current assets. The
credit risk of these financial assets arises from counterparty defaults, and the maximum risk
exposure is equal to the book value of these instruments.
The Group also faces credit risks due to providing financial guarantees, as disclosed in Note
XVI. 2.
Due to the Group only engaging in transactions with recognized and reputable third parties,
no collateral is required. Credit risk is centrally managed based on customers/counterparties,
geographic regions, and industries. As the clients from which the Group’s accounts receivable
are receivable are scattered in different sectors and industries, there’s no material credit risk
concentrated within the Group. The Group does not have any collaterals or other credit
enhancements for the balance of its accounts receivable.
Criteria for significant increase in credit risk
The Group evaluates, on each balance sheet date, whether the credit risk of related financial
instruments has increased significantly since the initial recognition thereof. The main criteria for
the Group to judge a significant increase in credit risk are significant changes in one or more of
the following indicators: the operating environment of the debtor, internal and external credit
ratings, and significant adverse changes in actual or expected operating results.
Definition of the assets whose credit has been impaired
The main criterion for determining credit impairment in the Group is that if internal or
external information shows that the contract amount may not be fully recovered before
considering any credit enhancement held.
The credit impairment of financial assets may be caused by multiple events together and
may not necessarily be caused by an individually identifiable event.
Credit risk exposure
252 / 289
2023 Annual Report
Disclose the credit risk exposure of the book balance of financial assets according to the
credit risk level, and disclose the expected credit losses for the next 12 months and the credit
losses for the entire duration of the asset separately.
The Group directly accounts for accounts receivable using simplified methods and provides
impairment provisions for expected credit losses of other accounts receivable in the next 12
months using general methods. The quantitative data of the Group's credit risk exposure arising
from accounts receivable and other accounts receivable are detailed in Note VII. 5 and Note VII.
9.
Liquidity risk
The Group's goal is to use various financing methods to maintain a balance between the
sustainability and flexibility of financing. The Group finances its operations through funds
generated from operations and borrowings.
The following table summarizes the analysis on the due day of financial liabilities based on
non-discounted contractual cash flows:
December 31, 2023
Item Within 1 year 1-2 years 2-3 years Over 3 years Total
Short-term
1,633,387,388.91 - - - 1,633,387,388.91
borrowings
Accounts payable 1,390,254,849.27 - - - 1,390,254,849.27
Other payables 1,393,726,397.83 - - 468,994,325.17 1,862,720,723.00
Other current
3,420,706,329.61 - - - 3,420,706,329.61
liabilities
Non-current
liabilities due 193,144,703.38 - - - 193,144,703.38
within one year
Long-term
20,441,113.41 48,482,098.41 55,102,649.41 798,322,481.14 922,348,342.37
borrowings
Lease liabilities - 32,905,926.59 32,828,436.37 194,173,777.30 259,908,140.26
Bonds payable - 3,608,950,000.00 - - 3,608,950,000.00
Total 8,051,660,782.41 3,690,338,025.00 87,931,085.78 1,461,490,583.61 13,291,420,476.80
2022
Item Within 1 year 1-2 years 2-3 years Over 3 years Total
Short-term
1,066,763,333.33 - - - 1,066,763,333.33
borrowings
Accounts payable 1,191,314,404.15 - - - 1,191,314,404.15
Other payables 835,667,583.73 - - 489,928,521.70 1,325,596,105.43
Other current
3,440,379,594.46 - - - 3,440,379,594.46
liabilities
Non-current
liabilities due 146,035,730.32 - - - 146,035,730.32
within one year
Long-term
11,321,500.00 62,268,500.00 160,416,125.00 268,150,000.00 502,156,125.00
borrowings
Lease liabilities - 35,662,549.03 32,085,308.05 225,253,417.58 293,001,274.66
Bonds payable - 108,950,000.00 3,608,950,000.00 - 3,717,900,000.00
Total 6,691,482,145.99 206,881,049.03 3,801,451,433.05 983,331,939.28 11,683,146,567.35
Market risks
Interest rate risk
The risk of changes in market interest rates faced by the Group is mainly related to the
Group's long-term liabilities at floating interest rates. The Group manages interest rate risk
by closely monitoring changes in interest rates and regularly reviewing borrowings.
253 / 289
2023 Annual Report
As of December 31, 2023, the Group had a long-term loan of RMB 763 million in its
long-term liabilities. The interest rate is adjusted based on the benchmark loan interest rate
on that day at the end of each year, and will not be adjusted in the middle of the year.
Therefore, the management believes that the risk of changes in market interest rates is
relatively low.
Foreign exchange rate risk
The Group faces trading exchange rate risks. Such risks are caused by sales or
purchases made by certain business units in currencies other than their bookkeeping
currency. Considering the Group’s short time of inventory and timely collection of accounts
receivable, the management believe that its foreign exchange rate risk is relatively low.
Price risk of equity instrument investments
The price risk of equity instrument investments refers to the risk of the fair value of equity
securities decreasing due to the changes in stock indices and value of individual securities.
As of December 31, 2023, the Group was exposed to equity instrument investment price
risk arising from individual equity instrument investments classified as measured at fair value
through profit or loss (Note VII. 2) and classified as measured at fair value through other
comprehensive income (Note VII. 18). The Group manages risks by holding investment
portfolios with different risks.
The following table illustrates the sensitivity of the Group's net profit and loss and other
comprehensive income net after tax to every 10% change in the fair value of equity
instrument investments based on the book value at the balance sheet date, assuming that
all other variables remain constant.
2023
Equity
Other
instrument Total shareholders'
Net profit or loss comprehensive
investment equity
income net after tax
book value
Equity instrument
increase/(decrease) increase/(decrease) increase/(decrease)
investment
Fair value
increase/decrease
by10%
Investment in the
equity instruments
that are measured
by fair value and of
which the changes 556,897,379.17 - 41,767,303.44 41,767,303.44
in fair value are
recognized in other
comprehensive
income
Equity instrument
investments
measured at fair 15,130,895.00 1,134,817.13 - 1,134,817.13
value through profit
or loss
2022
Equity
Other
instrument Total shareholders'
Net profit or loss comprehensive
investment equity
income net after tax
book value
Equity instrument
increase/(decrease) increase/(decrease) increase/(decrease)
investment
Fair value
increase/decrease
254 / 289
2023 Annual Report
by10%
Investment in the
equity instruments
that are measured
by fair value and of
which the changes 499,200,803.85 - 37,440,060.29 37,440,060.29
in fair value are
recognized in other
comprehensive
income
Equity instrument
investments
measured at fair 23,651,565.00 1,773,867.38 - 1,773,867.38
value through profit
or loss
The Group manages and adjusts its capital structure based on the changes in the
economic situation and the risk characteristics of related assets. To maintain or adjust the
capital structure, the Group may adjust the distribution of profits to shareholders, return capital
contribution to shareholders or issue new shares. The Group is not subject to external
mandatory capital requirements. There were no changes in capital management goals,
policies, or procedures from 2022 to 2023.
Capital management
The main objective of the Group in capital management is to ensure the Group’s ability to
continue operations and maintain a healthy capital ratio to support its business development
and maximize the values for shareholders.
The Group manages and adjusts its capital structure based on the changes in the
economic situation and the risk characteristics of related assets. To maintain or adjust the
capital structure, the Group may adjust the distribution of profits to shareholders, return capital
contribution to shareholders or issue new shares. The Group is not subject to external
mandatory capital requirements. There were no changes in the capital management goals,
policies, or procedures f from 2022 to 2023.
The Group adopts an asset-liability ratio to manage capital, which refers to the ratio of
total liabilities to total assets. The Group's policy will maintain a relatively stable asset-liability
ratio. Total liabilities include current liabilities and non-current liabilities. The asset-liability ratio
of the Group on the balance sheet date is as follows:
2023 2022
Total liabilities 18,515,009,702.36 16,829,907,934.73
Total assets 36,218,947,223.63 32,111,004,317.38
Asset-liability ratio 51.12% 52.41%
2. Hedging
(1) The Company conducts hedging business for risk management
□Applicable √Not applicable
Other statements
□Applicable √Not applicable
255 / 289
2023 Annual Report
(2) The Company conducts eligible hedging business and applies hedging accounting
□Applicable √Not applicable
Other statements
□Applicable √Not applicable
(3) The Company conducts hedging business for risk management and expects to
achieve risk management goals, but has not applied hedging accounting
□Applicable √Not applicable
Other statements
□Applicable √Not applicable
3. Financial asset transfer
(1) Classification of transfer methods
□Applicable √Not applicable
(2) Financial assets derecognized due to transfer
□Applicable √Not applicable
(3) Transferred financial assets in which the Group continued to be involved
□Applicable √Not applicable
Other statements
□Applicable √Not applicable
256 / 289
2023 Annual Report
XIII. Disclosure of fair value
1. Closing fair value of the assets and liabilities measured by fair value
√Applicable □Not applicable
Unit: RMB
Closing fair value
Level 1 fair Level 2 fair
Item Level 3 fair value
value value Total
measurement
measurement measurement
I. Continuous fair value
measurement
(1) Held-for-trading financial assets 15,130,895.00 - - 15,130,895.00
1. Financial assets that are
measured at fair value and whose
15,130,895.00 - - 15,130,895.00
changes are included in the current
profit and loss
(2) Investment in equity instruments 15,130,895.00 - - 15,130,895.00
(3) Other equity instruments
556,897,379.17 - - 556,897,379.17
investment
(vi) Other non-current financial
- - 1,421,569,904.19 1,421,569,904.19
assets
Total assets continuously
572,028,274.17 - 1,421,569,904.19 1,993,598,178.36
measured by fair value
2. Basis for determining the market prices of the items continuously and non-
continuously measured by Level 1 fair value
√Applicable □Not applicable
The Group's continuous first level fair value measurement project is equity instruments of
the listed company, and fair value is determined based on market quotations.
3. Valuation techniques and qualitative and quantitative information of important
parameters for the items continuously and non-continuously measured by Level 2
fair value
□Applicable √Not applicable
4. Valuation techniques and qualitative and quantitative information of important
parameters for the items continuously and non-continuously measured by Level 3
fair value
√Applicable □Not applicable
The financial department of the Group is led by the general manager of the financial
department of the group, who is responsible for formulating policies and procedures for the
measurement of fair value of financial instruments. The general manager of the financial
department of the Group reports directly to the Financial Director of the group, and the
Financial Director reports to the audit committee. On each balance sheet date, the financial
department analyzes the changes in the value of financial instruments and determines the
main input values applicable to the valuation. The valuation shall be reviewed and approved by
the Group's Financial Director. For the purpose of annual financial statements, the valuation
process and results are discussed twice a year with the audit committee.
Non-listed equity instrument investments are estimated at fair value using the market
method based on unobservable market prices or interest rate assumptions, or fair value is
determined using the asset-based method for non-listed equity instruments as of the balance
sheet date. The Group needs to determine comparable listed companies based on industry,
scale, leverage, and strategy, and calculate appropriate market multipliers, such as price to
earnings ratios, for each identified comparable listed company. Adjust based on specific facts
257 / 289
2023 Annual Report
and circumstances of the enterprise, taking into account factors such as liquidity and size
differences with comparable listed companies. The Group believes that the fair value and its
changes estimated using valuation techniques are reasonable and the most appropriate value
on the balance sheet date. For the fair value of non-listed equity instrument investments, the
Group estimates the potential impact of using other reasonable and possible assumptions as
inputs to the valuation model.
5. Adjustment information between the opening book value and closing book value, and
the sensitivity analysis of unobservable parameters for items continuously measured
by Level 3 fair value
□Applicable √Not applicable
6. For items continuously measured by fair value, if there is conversion between
different levels in the current period, the reasons for the conversion and the policy
for determining the time of conversion
□Applicable √Not applicable
7. Changes in valuation techniques in the current period and reasons for changes
□Applicable √Not applicable
8. Fair value of financial assets and financial liabilities not measured by fair value
□Applicable √Not applicable
9. Other
□Applicable √Not applicable
XIV. Related parties and related-party transactions
1. Parent company of the Company
√Applicable □Not applicable
Unit: RMB 10,000
Voting
Shareholding
right ratio
Name of parent Place of Registered ratio in the
Business in the
company registration capital Company
Company
(%)
(%)
Yiwu China
Yiwu, Asset
Commodities City 100,000 55.40 55.40
Zhejiang management
Holdings Limited
Notes on the parent company of the Company
No
The ultimate controlling party of this enterprise is the State-owned Assets Supervision and
Administration Office of Yiwu Municipal People's Government.
Other notes:
No
2. Subsidiaries of the Company
For details of the Company’s subsidiaries, please refer to the Notes
√Applicable □Not applicable
Please refer to Note VI. 1. Equity in Subsidiaries
258 / 289
2023 Annual Report
3. Joint ventures and associates of the Company
For details of the Company’s important joint ventures or associates, please refer to the Notes
√Applicable □Not applicable
Please refer to Note X. 3 Equity in Joint Ventures or Associates
Other joint ventures or associates that have related-party transactions with the Company in the
current period or had related-party transactions with the Company in the previous year which
resulted in an outstanding amount are as follows
√Applicable □Not applicable
Name of joint venture or associate Relationship
with the
Company
Yiwu Shanglv Joint
venture
Yiwu Huishang Redbud Capital Management Co., Ltd. Joint
venture
Yiwu China Commodities City Creative Design and Development Services Joint
Co., Ltd. venture
Yiwu Guoshen Shangbo Property Co., Ltd. Joint
venture
Yiwu Rongshang Property Co., Ltd. Joint
venture
Hangzhou Binjiang Shangbo Property Development Co., Ltd. Associate
Huishang Micro-finance Associate
Zhejiang Yemai Data Technology Co., Ltd. Associate
Yiwu Meipinshu Supply Chain Management Co., Ltd. Associate
JEBEL ALI FREE ZONE TRADER MARKET DEVELOPMENT AND Associate
OPERATION FZCO
Yiwu Digital Port Technology Co., Ltd. Associate
CCCP Associate
Hangzhou MicroAnts Co., Ltd. Associate
Yiwu Huishang Redbud Equity Investment Co., Ltd. Associate
Zhejiang Zhijie Yuangang International Supply Chain Technology Co., Ltd. Associate
Yiwu Heimahui Enterprise Service Co., Ltd. Associate
Yiwu Shangfu Chuangzhi Investment Center (limited partnership) Associate
Other statements
□Applicable √Not applicable
4. Other related parties
√Applicable □Not applicable
Name of other related party Relationship with the Company
Parent company of controlling
Yiwu State-owned Capital Operation Co., Ltd. shareholder of the Company’s
largest shareholder
Controlling shareholder of the
Yiwu Market Development Group Co., Ltd.
Company’s largest shareholder
Subsidiary of controlling
Yiwu Security Service Co., Ltd. shareholder of the Company’s
largest shareholder
Subsidiary of controlling
Yiwu Agriculture Development Co., Ltd. shareholder of the Company’s
largest shareholder
259 / 289
2023 Annual Report
Branch of Controlling
Yourworld International Conference Center Company of
shareholder of the Company’s
Yiwu Market Development Group Co., Ltd.
largest shareholder
Subsidiary of the Company’s
Yiwu Handing Shangbo Real Estate Co., Ltd.
largest shareholder
Subsidiary of the Company’s
Yiwu Gongchen Shangbo Property Co., Ltd.
largest shareholder
Subsidiary of the Company’s
Yiwu China Commodities City Property Service Co., Ltd.
largest shareholder
Yiwu Comprehensive Bonded Zone Enterprise Subsidiary of the Company’s
Management Co., Ltd. largest shareholder
Minority shareholder of major
Yisha Chengdu International Trade City Co., Ltd.
subsidiaries
Subsidiary of controlling
Zhejiang Yiwu Rural Economic Development Co., Ltd. shareholder of the Company’s
largest shareholder
Other statements
No
5. Related-party transactions
(1). Related-party transactions of purchasing and selling goods and rendering and
accepting service
Purchasing goods/accepting service
√Applicable □Not applicable
Unit: RMB
Approved Whether the
Contents of
Amount in the transaction transaction limit Amount in the
Related party related-party
current period amount (if is exceeded (if previous period
transaction
applicable) applicable)
Yiwu China
Property service
Commodities City
fee and greening 181,414,943.66 NA NA 184,739,755.70
Property Service
maintenance fee
Co., Ltd.
Exhibition
Yiwu Security
security service 17,321,354.13 NA NA 28,188,230.28
Service Co., Ltd.
fee
Yiwu Shangbo
Yungu Enterprise
Construction fee 11,048,288.61 NA NA 1,100,800.00
Management Co.,
Ltd.
Purchase
Zhejiang Yemai
payment and
Data Technology 2,793,096.42 NA NA 2,291,695.43
platform service
Co., Ltd.
fee
Yiwu China
Commodities City
Creative Design and Design fee 2,440,943.96 NA NA 3,472,843.99
Development
Services Co., Ltd.
Zhejiang Zhijie
Yuangang
International Supply Service fees 2,000,000.00 NA NA -
Chain Technology
Co., Ltd.
Hangzhou Information
244,523.00 NA NA -
MicroAnts Co., Ltd. service fee
260 / 289
2023 Annual Report
Technical service
Yiwu Digital Port
fee and
Technology Co., - NA NA 4,948,197.00
hardware
Ltd.
equipment fee
Yiwu Agriculture
Purchase
Development Co., - NA NA 2,042,604.35
payment
Ltd.
Selling goods/rendering service
√Applicable □Not applicable
Unit: RMB
Contents of related- Amount in the Amount in the
Related party
party transaction current period previous period
Yiwu China Commodities City Property Service Product sales and 4,153,162.42
Co., Ltd. system 2,175,245.60
development
MDG and its branch Xingfuhu International 2,627,096.60
Laundering fees 1,054,026.05
Conference Center
Zhejiang Zhijie Yuangang International Supply Storage fee income 2,147,325.34 -
Chain Technology Co., Ltd.
Notes on related-party transactions of purchasing and selling goods and rendering and
accepting service
□Applicable √Not applicable
(2). Entrustment/contracting from and to related parties
Entrustment/contracting to the Company:
√Applicable □Not applicable
Unit: RMB
Entrustment
Starting Ending
Pricing of income/contr
date of date of
Name of Name of Type of entrustment acting
entrust entrust
consignor/em consignee/cont entrusted/contr income/contr income
ment ment
ployer ractor acted assets acting recognized in
/contract /contract
income the current
ing ing
period
Yiwu Market The Company Entrustment of Feb 1, Jan 31, Negotiated 954,484.23
Development other assets 2020 2025 price
Group Co.,
Ltd.
Notes on entrustment/contracting from related parties
√Applicable □Not applicable
According to the management contract signed between the Company and Yiwu Market
Development Group Co., Ltd. for the Yourworld International Conference Center, the Company
is entrusted to manage the Yourworld International Conference Center Hotel located at No. 100
Xingfuhu Road, Yiwu City. The hotel management fee charged during this reporting period was
RMB 954,484.23 (2022: RMB 514,979.27).
Entrusted management/contracted by the Company
□Applicable √Not applicable
Notes on related-party management/contracting
□Applicable √Not applicable
261 / 289
2023 Annual Report
(3). Related-party lease
The Company as the lessor:
√Applicable □Not applicable
Unit: RMB
Rental income Rental income
Type of
recognized in recognized in
Name of lessee leased
the current the previous
asset
period period
Yiwu China Commodities City Property Office 988,924.55 1,126,617.29
Development Co., Ltd. space
Yiwu Market Development Service Parking lot 562,755.00 516,288.99
Center Co., Ltd.
Yiwu Shanglv Investment Development Office 458,715.60 1,376,146.79
Co., Ltd. space
Yiwu Huishang Redbud Capital Office 272,279.43 246,819.06
Management Co., Ltd. space
Yiwu China Commodities City Property Office 194,279.41 122,445.99
Service Co., Ltd. space
Hangzhou MicroAnts Co., Ltd. Office 162,259.84 -
space
Yiwu Meipinshu Supply Chain Office - 207,058.99
Management Co., Ltd. space
Huishang Micro-finance Office - 49,791.48
space
Total 2,639,213.83 3,645,168.59
262 / 289
2023 Annual Report
The Company as the lessee
√Applicable □Not applicable
Unit: RMB
Variable lease
Simplified treatment of rental payments not
Interest expense
expenses for short-term leases included in the Increased right-of-
Rent paid on lease liability
and leases of low-value assets measurement of use assets
Type of assumed
(if applicable) the lease liability
lessor name leased
(if applicable)
asset
Amount Amount Amount Amount Amount Amount
Amount in the Amount in the
Amount in the in the in the Amount in the in the in the in the in the
previous previous
current period current previous current period current previous current previous
period period
period period period period period period
Yiwu China
Commodities
Warehouses 15,025,937.62 15,015,618.37 - - 16,378,272.00 16,378,272.00 - - - -
City Holdings
Limited
Notes on related-party lease
√Applicable □Not applicable
The Group rent office spaces from above related parties at market prices
263 / 289
2023 Annual Report
(4). Related-party guarantees
The Company as the guarantor
√Applicable □Not applicable
Unit: RMB
Amount of Starting date of Expiry date of the Is the guarantee
The guaranteed
guarantee the guarantee guarantee fulfilled in full
Yiwu Shanglv 45,754,890.24 Jul 1, 2015 Dec 15, 2026 No
The Company as the guaranteed party
□Applicable √Not applicable
Notes on related-party guarantees
√Applicable □Not applicable
The Group provided guarantee for the borrowings of Yiwu Shanglv. As of December 31,
2023, Yiwu Shanglv actually borrowed RMB 93.3773 million ( December 31, 2022: RMB
193.4681 million ) from banks. According to the guarantee contract, the Group assumed
liability for RMB 45.7549 million (December 31, 2022: RMB 94.7993 million). Yiwu State-
owned Capital Operation Co., Ltd. provided a counter-guarantee for this guarantee.
264 / 289
2023 Annual Report
(5). Related-party lending and borrowing
√Applicable □Not applicable
Unit: RMB
Maturity
Related party Amount Starting date Description of
date
Borrowings
In 2022, the Group transferred a total of
RMB 58,803,200.00 from Chengzhen Real
Estate, according to the shareholding ratio,
at the annual interest rate of 0%. As of
Chengzhen Property 58,803,200.00 Jan 18, 2022 December 31, 2023, RMB 34,806,218.79
had been transferred back, and the
remaining fund repayment date would be
determined based on the funding needs of
Chengzhen Real Estate projects.
Yiwu Guoshen
The Group allocated a total of RMB
Shangbo Property Co., 230,600,000.00 Oct 31, 2022
230,600,000.00 of surplus funds from
Ltd.
Guoshen Shangbo in 2022. The allocations
Yiwu Guoshen
were based on the share holding rate and
Shangbo Property Co., 294,000,000.00 Jun 29, 2023
the annual interest rates were 0%. The
Ltd.
Group allocated a total of RMB
Yiwu Guoshen
489,988,200.00 of surplus funds from
Shangbo Property Co., 98,000,000.00 Oct 30, 2023
Guoshen Shangbo in 2023. The repayment
Ltd.
date would be determined according to the
Yiwu Guoshen
funding needs of Guoshen Shangbo
Shangbo Property Co., 97,988,200.00 Nov 1, 2023
projects.
Ltd.
The Company received a pre-dividend of
RMB 64,418,683.00 from Rongshang Real
Yiwu Rongshang Estate in 2022, and the specific date of
64,418,683.00 Jun 30, 2022
Property Co., Ltd. repayment of funds would be determined
according to the distribution of dividend
resolutions.
Dec 31, The Company received a pre-dividend of
Huishang Zijing 4,500,000.00
2021 RMB 4,500,000.00 from Huishang Redbud
Dec 31, in 2021, a pre-dividend of
Huishang Zijing 12,000,000.00 RMB12,000,000.00 from Huishang Redbud
2022
in 2022, and a pre-dividend of RMB
2,250,000.00 from Huishang Redbud in
Dec 29, 2022. The specific date of return of funds
Huishang Zijing 2,250,000.00
2023 would be determined according to the
distribution of dividend resolutions.
Related party Amount Starting date Maturity Description of
date
Lending to
Yiwu Handing The Group provided financial assistance to
Shangbo Real Estate 204,604,400.00 Dec 11, 2020 Handing Shangbo totaling RMB
Co., Ltd. 204,604,400.00 in 2020, and provided
financial assistance to Handing Shangbo
Yiwu Handing totaling RMB 17,845,800.00 in 2021, with
Shangbo Real Estate 17,845,800.00 May 11, 2021 an annual interest rate of 6%. Handing
Co., Ltd. Shangbo has repaid all the funds as of
December 31, 2023.
265 / 289
2023 Annual Report
JEBEL ALI FREE
ZONE TRADER In 2020, the Group provided JEBEL ALI
MARKET 63,465,484.42 Mar 9, 2020 FREE ZONE TRADER MARKET
DEVELOPMENT AND DEVELOPMENT AND OPERATION FZCO
OPERATION FZCO financial assistance totaling RMB
JEBEL ALI FREE 63,465,484.42; in 2021, the Group
ZONE TRADER provided it with financial assistance totaling
MARKET 109,636,517.09 Mar 31, 2021 RMB 109,636,517.09; in 2022, the Group
DEVELOPMENT AND provided it with financial assistance totaling
OPERATION FZCO RMB 41,772,885.00, all at an annual
JEBEL ALI FREE interest rate of 6-month average EIBOR
ZONE TRADER plus 5%. The repayment term of the
MARKET 41,772,885.00 May 12, 2022 financial assistance would be determined
DEVELOPMENT AND based on the progress of the project.
OPERATION FZCO
(6). Related-party transfer of assets and restructuring of debts
□Applicable √Not applicable
(7). Remunerations of key officers
√Applicable □Not applicable
Unit: RMB 10,000
Amount in the previous
Item Amount in the current period
period
Remunerations of key officers 1,956.51 1,775.94
(8). Other related-party transactions
√Applicable □Not applicable
Related party entrusted loan
Unit: RMB
Unit 2023 2022
Yisha Chengdu International Trade City Co., 48,000,000.00 48,000,000.00
Ltd.
After deliberation and approval at the fifth meeting of the ninth Board of Directors held by
the Group on December 15, 2022, Yiwugou, an indirectly controlled subsidiary of the Group,
provided an entrusted loan of RMB 48 million to Yisha Chengdu International Trade City Co.,
Ltd., a minority shareholder of Yiwugou, in the form of monetary funds through Yiwu Branch of
Agricultural Bank of China Co., Ltd., with a term of 2 years and an annual interest rate of 5.5%.
266 / 289
2023 Annual Report
6. Unsettled items such as accounts receivable and related parties payable
(1).Receivables
√Applicable □Not applicable
Unit: RMB
Closing balance Opening balance
Item Related party Bad debt Bad debt
Book balance Book balance
provision provision
Accounts Yiwu China Commodities City Property
Service Co., Ltd. 711,617.24 13,307.24 - -
receivable
Yourworld International
Accounts Conference Center Company
535,559.20 10,205.81 168,814.20 1,676.53
receivable of Yiwu Market Development
Group Co., Ltd.
Accounts Yiwu Market Development
292,500.00 5,573.98 -
receivable Group Co., Ltd.
Accounts Yiwu Shanglv Investment
7,824.20 149.10 - -
receivable Development Co., Ltd.
Accounts Yiwu China Commodities City Property
Development Co., Ltd. 999.00 19.04 - -
receivable
Accounts Yiwu Tonghui Shangbo Real
- - 6,200,000.00 61,573.54
receivable Estate Co., Ltd.
Total 1,548,499.64 29,255.17 6,368,814.20 63,250.07
Other Yiwu Market Development
440,168.00 - - -
receivables Group Co., Ltd.
Other Yiwu China Commodities City Property
Service Co., Ltd. 132,400.00 - - -
receivables
Other Yiwu Market Development Service
Center Co., Ltd. 42,393.12 - - -
receivables
Other
Hangzhou Weiyi 342.58 - 1,288.00 -
receivables
Other Zhejiang Xingfuhu Sports
Development Co., Ltd.
148.30 - - -
receivables
Other
Handing Shangbo - - 207,750,200.00 -
receivables
Other
Tonghui Shangbo - - 116,036,712.09 -
receivables
Other
Gongchen Shangbo - - 562,755.00 -
receivables
Total 615,452.00 - 324,350,955.09 -
JEBEL ALI FREE ZONE
TRADER MARKET
Long-term DEVELOPMENT AND
238,905,772.12 - 233,127,115.20 -
receivables FZCOR MARKET
DEVELOPMENT AND
OPERATZON FZCO
Long-term
Yiwu Shanglv 31,850,000.00 - 36,750,000.00 -
receivables
Total 270,755,772.12 - 269,877,115.20 -
267 / 289
2023 Annual Report
(2).Payables
√Applicable □Not applicable
Unit: RMB
Item Related party Closing book Opening book
balance balance
Accounts Yiwu China Commodities City 5,606,633.72 13,728,471.27
payable Property Service Co., Ltd.
Accounts Yiwu Shangbo Yungu Enterprise 3,592,709.55 -
payable Management Co., Ltd.
Accounts Yiwu Digital Port Technology Co., Ltd. 1,692,174.34 -
payable
Accounts Zhejiang Yemai Data Technology 629,311.13 713,020.54
payable
Accounts Yiwu Agriculture Development Co., 402,739.20 1,791,720.12
payable Ltd.
Accounts Yiwu Security Service Co., Ltd. - 919,817.45
payable
Total 11,923,567.94 17,153,029.38
Advance Yiwu China Commodities City 932,547.16 -
from Property Service Co., Ltd.
customers
Advance Yiwu China Commodities City
from Property Development Co., Ltd. 824,103.79 583,018.86
customers
Advance Yiwu Shanglv Investment 649,847.09 -
from Development Co., Ltd.
customers
Advance Yiwu Shangbo Yungu Enterprise 584,230.37 -
from Management Co., Ltd.
customers
Advance Yiwu Market Development Group Co., 403,301.89 -
from Ltd.
customers
Advance Zhejiang Zhijie Yuangang International 274,063.34 -
from Supply Chain Technology Co., Ltd.
customers
Advance Yiwu Meipinshu Supply Chain 209,100.37
from Management Co., Ltd.
customers
Advance Yiwu Digital Port Technology 156,951.99 -
from
customers
Advance Redbud Capital 90,759.83 -
from
customers
Total 4,124,905.83 583,018.86
Contract Yiwu China Commodities City 139,919.81 94,027.70
liabilities Property Service Co., Ltd.
Contract Yiwu Digital Port Technology Co., Ltd. 45,657.30 35,519.71
liabilities
Contract Huishang Micro-finance 11,792.46 11,792.46
liabilities
Contract Yiwu Shangbo Yungu Enterprise 4,880.58 -
liabilities Management Co., Ltd.
268 / 289
2023 Annual Report
Contract Zhejiang Yiwu Rural Economic - 84,905.66
liabilities Development Co., Ltd.
Contract Yiwu Security Service Co., Ltd. - 974.76
liabilities
Total 202,250.15 227,220.29
Other Yiwu Guoshen Shangbo Property Co.,
720,588,200.00 230,600,000.00
payables Ltd.
Other Yiwu Rongshang Property Co., Ltd.
64,418,683.00 64,418,683.00
payables
Other Yiwu Chengzhen Property Co., Ltd.
23,996,981.25 58,803,200.00
payables
Other Yiwu Huishang Redbud Equity
18,750,000.00 16,500,000.00
payables Investment Co., Ltd.
Other Yiwu Huishang Redbud Phase II Investment
Partnership (limited partnership) 5,000,000.00 -
payables
Other Zhejiang Zhijie Yuangang International
322,800.00 150,000.00
payables Supply Chain Technology Co., Ltd.
Other Yiwu China Commodities City
240,000.00 240,000.00
payables Property Development Co., Ltd.
Other Yiwu Shangbo Yungu Enterprise
200,000.00 200,000.00
payables Management Co., Ltd.
Other Yiwu Shanglv Investment
- 108,333.33
payables Development Co., Ltd.
Other Yiwu Heimahui Enterprise Service
100,000.00 100,000.00
payables Co., Ltd.
Yourworld International Conference Center
Other
Company of Yiwu Market Development 96,522.47 78,908.97
payables Group Co., Ltd.
Other Zhejiang Yemai Data Technology
70,430.19 21,328.50
payables
Other Yiwu Meipinshu Supply Chain
57,000.00 57,000.00
payables Management
Other Hangzhou MicroAnts Co., Ltd.
26,000.00 26,000.00
payables
Other Yiwu Digital Port Technology Co., Ltd.
25,000.00 -
payables
Other Yiwu China Commodities City
5,062.00 -
payables Property Service Co., Ltd.
Other Yiwu China Commodities City Trading
Co., Ld.
2,500.00 2,500.00
payables
Other Yiwu Security Service Co., Ltd.
- 14,740.00
payables
Total 833,899,178.91 371,320,693.80
(3).Other projects
√Applicable □Not applicable
Unit: RMB
Item Related party Closing book Opening book
balance balance
Debt Yisha Chengdu International Trade 48,073,333.34 48,079,561.64
investments City Co., Ltd.
7. Related-party commitments
□Applicable √Not applicable
269 / 289
2023 Annual Report
8. Other
□Applicable √Not applicable
XV. Share-based payment
1. Various equity instruments
√Applicable □Not applicable
Quantity unit: share Amount unit: RMB
Grant in this
Unlocked in this period Expired in this period
Grant object period
category Qty Amoun
Qty. Amount Qty. Amount
. t
Managemen - - 13,711,500.0 29,922,651.0 1,740,000.0 4,193,400.0
t personnel 0 0 0 0
R&D - - 189,750.00 417,697.50 - -
personnel
Total 13,901,250.0 30,340,348.5 1,740,000.0 4,193,400.0
- -
0 0 0 0
Stock options or other equity instruments issued to the public as of the end of the period
√Applicable □Not applicable
Other equity instruments issued to the public as of the
end of the period
Grant object category
The range of exercise Remaining term of the
price contract
Management and R&D 2.94/2.39 60 months from the date of
personnel grant
Other statements
No
2. Share-based payment settled with equity
√Applicable □Not applicable
Unit: RMB
Method for determining the fair value of equity
Market price on grant day
instruments on the grant date
Important parameters of fair value of equity
/
instruments on grant date
Determined based on the number of
incentive objects that have reached the
Basis for determining the number of exercisable assessment target, through annual
equity instruments assessment on the Company’s financial
performance indicators and personal
performance indicators.
Reason for the significant difference between the
estimates in the current period and in the No
previous period
Cumulative amount of equity-settled share-based 79,041,715.15
payments included in the capital reserve
Other statements
No
3. Share-based payment settled with cash
□Applicable √Not applicable
270 / 289
2023 Annual Report
4. Share-based payment expenses in this period
√Applicable □Not applicable
Unit: RMB
Grant object category Equity-settled share-based Cash-settled share-based
payment expenses payment expenses
Administrative expenses 15,837,337.16 /
R&D expenses 669,632.75
Total 16,506,969.91 /
Other statements
On December 10, 2020, the Fifth Extraordinary General Meeting of Shareholders of the
Company approved the Proposal on the 2020 Restricted Stock Incentive Plan (Draft) and its
Abstract, granting stock options to 405 eligible directors, senior management, core technical
personnel, and other personnel deemed necessary by the Board of Directors to be incentivized.
The price for the restricted stocks in the first grant under this plan was RMB 2.94 per share; The
price for the restricted stocks in the reserved grant was RMB 2.39 per share.
On September 6, 2021, Zhejiang Zhicheng Certified Public Accountants (Special General
Partnership) issued the capital verification report (Zhezhihuiyizi [2021] No. 17): The Company
has received a total of RMB 5,592,600.00 for subscription of restricted shares from 31 restricted
stock incentive objects, including RMB 2,340,000.00 in newly registered capital (share capital),
and RMB 3,252,600.00 in capital reserve. The registered capital and share capital of the
Company before the capital increase were both RMB 5,489,914,176.00, and the registered
capital and share capital after the change were both RMB 5,492,254,176.00. In the registration
process of this grant, considering that three of the intended incentive recipients determined on
the reserved grant date had voluntarily given up and no longer qualified as incentive recipients,
the actual number of incentive objects subscribed for this time was 31, and the number of
subscribed shares was 2.34 million . On November 4, 2021, the registration procedures for the
reserved grant of restricted stocks involved in this incentive plan were completed, and the
Shanghai Branch of China Securities Depository and Clearing Corporation Limited issued the
"Securities Change Registration Certificate".
On July 19, 2022, the 51st Meeting of the 8th Board of Directors and the 14th Meeting of
the 8th Board of Supervisors of the Company reviewed and approved the Proposal on Adjusting
the Repurchase Price of Restricted Stocks and Repurchasing and Cancelling Some Restricted
Stocks. According to the provisions of Chapter 14, Principle of Restricted Stock Repurchase and
Cancellation in the Company's Incentive Plan, the 45 incentive recipients who had been
transferred or resigned no longer met the relevant provisions of the Company's incentive plan.
The Board of Directors of the Company decided to cancel the qualification of the above-
mentioned incentive objects and repurchase and cancel all 5,200,000.00 restricted shares that
had been granted but had not yet been unlocked for sale. In accordance with the relevant
provisions of the Incentive Plan, the repurchase prices of the restricted stocks in the first and
reserved grant would be adjusted. The repurchase price of the restricted stocks in the first grant
after adjustment was RMB 2.812/share, and the repurchase price the restricted stocks in the
reserved grant after adjustment was RMB 2.317/share. The total amount of restricted stock
repurchase funds this time was RMB 14.9341 million, and all the above-mentioned repurchase
funds would be paid with the Company's own funds.
5. Modification and termination of share-based payment
□Applicable √Not applicable
6. Other
□Applicable √Not applicable
271 / 289
2023 Annual Report
XVI. Commitments and contingencies
1. Important commitments
√Applicable □Not applicable
Important external commitments, nature and amount thereof as of the balance sheet dates
Unit: RMB
Capital commitments 2023 2022
Signed but not provided 4,549,081,338.19 3,451,663,094.71
In 2017, the Group’s wholly-owned subsidiary Yiwu China Commodities City Financial
Holdings Co., Ltd. (“CCCF”) and Shanghai Fuxing Industry Group Co., Ltd. (“Fuxing Group”)
jointly established an industry fund Yiwu China Commodities City Fuxing Investment Center
(Limited Partnership) (hereinafter referred to as the “FOF”). The FOF as a limited partner
invested in 12 sub-funds including Yiwu Shangfu Chuangzhi Investment Center (Limited
Partnership) (“Shangfu Chuangzhi Fund”). CCCF subscribed for capital contribution of RMB 998
million in the FOF as a limited partner, accounting for 49.9% of the total capital contribution, and
has paid in RMB 102.92 million. The unpaid portion of its subscribed capital contribution was
promised to be RMB 895.08 million and was not subject to a term. CCCF also made capital
contribution of RMB 9.8 million (49% equity) to Yiwu China Commodities City Investment and
Management Co., Ltd. (hereinafter referred to as the “CCCIM”), which was a general partner of
the above FOF and sub-funds. Fuxing made capital contribution of 51% to and had control over
CCCIM.
Shangfu Chuangzhi Fund raised funds of RMB 823.36 million in total. The FOF has
subscribed for and paid in capital contribution of RMB 205.84 million as a limited partner
(including the above RMB 102.92 million from CCCIM and the rest was contributed by Fuxing,
the other limited partner of the FOF). As the other limited partner of Shangfu Chuangzhi Fund,
CCCF has separately subscribed for and paid in capital contribution of RMB 617.51 million. In
addition, neither the Group nor CCCF did not invest in other sub-funds of the FOF. Shangfu
Chuangzhi Fund subsequently subscribed to the increased registered capital of Hubei Asset
Management Co., Ltd. for RMB 820.54 million, holding 22.6667% of its equity. In 2019, 9 out of
the 12 sub-funds mentioned above were cancelled.
In 2018, CCCF learned during its after-investment follow-up management that Fuxing and
its actual controller ZHU Yidong were suspected of having committed a criminal offense and the
22.667% equity held by Shangfu Chuangzhi Fund in Hubei Provincial Asset Management Co.,
Ltd. was frozen by the Public Security Bureau of Shanghai due to Fuxing’s contribution to the
sources of the capital contribution. As of the date of approval for the financial statements, the
relevant equity was still frozen.
As of the approval date of the financial statements, the Group had not received any notice
of capital contribution other than the above contributions that had been made or any notice of
action involving the Group, CCCF, FOF and its sub-funds.
In addition, as of December 31, 2023, the Group had other investment commitments totaling
RMB 117.68 million (December 31, 2022: RMB 282.61 million).
For lease commitment as a lessee, please refer to Note VII. 82.
2. Contingencies
(1).Important contingencies on the balance sheet dates
√Applicable □Not applicable
Unit: RMB
Item 2023 2022
Contingent liabilities resulting from 50,384,223.92 99,645,681.29
the guarantee provided externally
According to relevant regulations, the Group is required to provide mortgage loan
guarantees to the bank for the sale of commercial housing before the purchaser of the housing
has completed the property ownership certificate. The outstanding guarantee amount as of
December 31, 2023 was RMB 4,629,333.68 (December 31, 2022: RMB 4,846,333.64). Those
guarantees would be released after the issuance of the property ownership certificates and are
272 / 289
2023 Annual Report
thus little likely to incur losses. Therefore, the management believed that it was not necessary
to make provision for the guarantees.
According to the resolution of the 15th Meeting of the 7th Board of Directors on Jul 1, 2015,
the Group applied to the Yiwu Branch of Agricultural Bank of China for a RMB 750 million loan
for Yiwu Shanglv and provided guarantee based on its shareholding ratio. The guarantee was a
joint and several liability guarantee, the maximum amount of guarantee was RMB 367.5 million
and the term was 11 years. As of December 31, 2023, Yiwu Shanglv actually borrowed RMB
93,377,327.02 from banks (December 31, 2022: RMB 193,468,056.4). According to the
guarantee contract, the Group should bear a guarantee liability of RMB 45,754,890.24
(December 31, 2022: RMB 94,799,347.65) to Yiwu Branch of Agricultural Bank of China. SCO
provided a counter-guarantee for this guarantee.
(2).Notes shall also be made even if the Company has no important contingencies to be
disclosed:
□Applicable √Not applicable
3. Other
□Applicable √Not applicable
XVII. Post-balance sheet date events
1. Important non-adjusting events
√Applicable □Not applicable
Unit: RMB
Effect on Reasons
financial status for inability
Item Contents
and operating to estimate
results the effect
On March 11, 2024, the Company
issued Zhejiang China
Commodities City Group Co.,
Issuance of super- Ltd.'s 2024 super-short-term
short-term financing financing bonds (Issue 1) for RMB
bonds 1 billion, with a term of 268 days
and a one-time repayment of
principal and interest when due, at
an issuance interest rate of 2.40%.
On April 7, 2024, the Company
issued Zhejiang China
Commodities City Group Co.,
Issuance of super- Ltd.'s 2024 super-short-term
short-term financing financing bonds (Issue 2) for RMB
bonds 1 billion, with a term of 261 days
and a one-time repayment of
principal and interest when due, at
an issuance interest rate of 2.33%.
2. Profit distribution
√Applicable □Not applicable
Unit: RMB
Profits or dividends to be distributed 1,096,866,835.20
Profits or dividends announced 1,096,866,835.20
through deliberation and approval
273 / 289
2023 Annual Report
3. Sales return
□Applicable √Not applicable
4. Other post-balance sheet date events
□Applicable √Not applicable
XVIII. Other important events
1. Correction of previous accounting errors
(1). Retrospective restatement
□Applicable √Not applicable
(2). Prospective application
□Applicable √Not applicable
2. Significant debt restructuring
□Applicable √Not applicable
3. Exchange of assets
(1). Exchange of non-monetary assets
□Applicable √Not applicable
(2). Exchange of other assets
□Applicable √Not applicable
4. Annuity plan
□Applicable √Not applicable
5. Termination of operations
□Applicable √Not applicable
274 / 289
2023 Annual Report
6. Information of divisions
(1). Determination basis and accounting policy of reporting divisions
√Applicable □Not applicable
Information of divisions is reported based on business divisions of the Group. In the
identification of region-based divisions, revenue is attributable to the divisions in the regions
where the clients are located, and assets are attributable to the divisions in the regions where
the assets are located. As the Group’s main operating activities and operating assets are both
concentrated in mainland China, it is not required to report more detailed information on
region-based divisions.
The Group’s businesses are organized and managed separately based on the nature of
business and the products and services provided. Each business division of the Group is a
business department or a subsidiary and provides the products and services that face the risk
different from that faced by other business divisions and bring the compensations different
from those brought by other business divisions. The detailed information on business divisions
is summarized as follows:
(a) Market operation segment refers to the business that the group is engaged in market
operation, including the collection of business space usage fees and the rent of auxiliary
buildings and office buildings;
(b) The trade services division includes providing market-related supporting services;
(c) The supporting service division refers to the operational activities of hotels, including
guest room accommodation, catering services, as well as the design, production, publishing,
and advertising agency business;
(d) The commodity sales division refers to the business of buying and selling commodities
such as export trade.
The transfer pricing between divisions is made based on the prices offered to third parties
and the then prevailing market prices.
The management manages the operating results of each business unit separately for the
purpose of allocating resources and evaluating performance. Division performance is
evaluated based on the reported division profits.
(2). Financial information of reporting divisions
√Applicable □Not applicable
Unit: RMB million
Item Market Trade Supporting Sales of Set-offs Total
operation services services goods among
divisions
Revenue from external
3,353 626 514 6,807 - 11,300
transactions
Revenue from inter-division
44 97 62 78 281 -
transactions
Profits before tax 3,066 102 -62 -3 -105 3,208
275 / 289
2023 Annual Report
Total assets 46,558 9,884 1,498 2,845 24,566 36,219
Total liabilities 27,080 5,124 1,476 1,953 17,118 18,515
Capital expenditures 1,357 18 6 355 - 1,736
Long-term equity
investment in joint ventures 5,877 1,145 - 1 - 7,023
and associates
(3). If the Company does not have reporting divisions or is unable to disclose the total
assets and total liabilities of each division, please explain
□Applicable √Not applicable
(4). Other statements
□Applicable √Not applicable
7. Other important transactions and events that have influence on investors’ decisions
□Applicable √Not applicable
8. Other
□Applicable √Not applicable
XIX. Notes to main items in financial statements of parent company
1. Accounts receivable
(1). Disclosure based on account age
√Applicable □Not applicable
Unit: RMB
Account age Closing book balance Opening book balance
Within 1 year
In which: sub-items
Within 1 year 32,222,205.22 20,584,932.68
Within 1 year 32,222,205.22 20,584,932.68
1 to 2 years 621,620.47 1,764,722.07
2 to 3 years 1,195,926.30 100,234.00
Over 3 years - -
Total 34,039,751.99 22,449,888.75
(2). Categorized disclosure based on the bad debt provision method
√Applicable □Not applicable
Unit: RMB
Closing balance Opening balance
Bad debt Bad debt
Book balance Book balance
provision provision
Category Provis Book Provis Book
Propor Propor
Amou ion value Amoun ion value
Amount tion Amount tion
nt ratio t ratio
(%) (%)
(%) (%)
Accounts
receivabl
e for
which 34,039,7 98,31 33,941,4 22,449,8 417,49 22,032,3
100.00 0.29 100 1.86
bad debt 51.99 5.30 36.69 88.75 8.04 90.71
provision
is made
by group
276 / 289
2023 Annual Report
Among them:
Provision
for bad
debt by
combinati 34,039,7 98,31 33,941,4 22,449,8 417,49 22,032,3
100.00 0.29 100 1.86
on of 51.99 5.30 36.69 88.75 8.04 90.71
credit risk
character
istics
34,039,7 98,31 33,941,4 22,449,8 417,49 22,032,3
Total / / / /
51.99 5.30 36.69 88.75 8.04 90.71
Accounts receivable for which bad debt provision is made individually:
□Applicable √Not applicable
Explanation for making bad debt provision for accounts receivable by group:
√Applicable □Not applicable
Items for which the bad debts are provided for by combination: by combination of credit risk
characteristics
Unit: RMB
Closing balance
Name Accounts Bad debt Provision ratio
receivable provision (%)
Provision for bad debt by 34,039,751.99 98,315.30 0.29
combination of credit risk
characteristics
Total 34,039,751.99 98,315.30 0.29
Description of combined provision for bad debts:
□Applicable √Not applicable
Provision for bad debts based on the general model of expected credit losses
√Applicable □Not applicable
Unit: RMB
Stage 1 Stage 2 Stage 3
Expected credit Expected credit
Expected credit
loss in the entire loss in the entire
Bad debt provision loss in the Total
duration (credit duration (credit
coming 12
has not been has been
months
impaired) impaired)
Balance as of January 1, 2023 417,498.04 417,498.04
Balance as of January 1, 2023 417,498.04
in the current period
417,498.04
Provision made in the current 109,808.90
period
109,808.90
Current reversal 428,991.64 428,991.64
Balance as of December 31, 98,315.30
2023
98,315.30
Classification basis and bad debt provision ratio for each stage
No
Explanation of significant changes in the book balance of accounts receivable with changes in
loss provisions in this period:
□Applicable √Not applicable
(3). Provisions for bad debts
√Applicable □Not applicable
Unit: RMB
277 / 289
2023 Annual Report
Amount of change during the current
period
Category Opening balance Closing balance
Recovery or
Provision
reversal
Bad debt provision for 417,498.04 109,808.90 428,991.64 98,315.30
accounts receivable
Total 417,498.04 109,808.90 428,991.64 98,315.30
In which the recovered or reversed amount is important:
□Applicable √Not applicable
Other statements
No
(4). Accounts receivable actually written off during the current period
□Applicable √Not applicable
Information of write-off of important accounts receivable
□Applicable √Not applicable
Description of accounts receivable written off:
□Applicable √Not applicable
(5). Five debtors with the highest closing balances of accounts receivable and contract
assets
□Applicable √Not applicable
Other notes:
√Applicable □Not applicable
The Company is mainly engaged in market operation and hotel services and its revenue
from an individual client is very low. Therefore, the combined accounts receivable from the top
five clients occupied a very small share in its total balance of accounts receivable.
2. Other receivables
Presentation of items
√Applicable □Not applicable
Unit: RMB
Item Closing balance Opening balance
Other receivables 12,892,088.01 329,607,469.39
Total 12,892,088.01 329,607,469.39
Other notes:
□Applicable √Not applicable
Interest receivable
(1). Classification of interest receivable
□Applicable √Not applicable
(2). Significant overdue interest
□Applicable √Not applicable
278 / 289
2023 Annual Report
(3). Categorized disclosure based on the bad debt provision method
□Applicable √Not applicable
Accounts receivable for which bad debt provision is made individually:
□Applicable √Not applicable
Explanation for making bad debt provision for accounts receivable individually:
□Applicable √Not applicable
Explanation for making bad debt provision for accounts receivable by group:
□Applicable √Not applicable
(4). Provision for bad debts based on the general model of expected credit losses
□Applicable √Not applicable
Classification basis and bad debt provision ratio for each stage
No
Explanation of significant changes in the book balance of interest receivable due to changes in
loss provisions in this period:
□Applicable √Not applicable
(5). Provisions for bad debts
□Applicable √Not applicable
In which the recovered or reversed amount is important:
□Applicable √Not applicable
Other notes:
No
(6). Interest receivable actually written off in this period
□Applicable √Not applicable
Important interest receivable written off among them
□Applicable √Not applicable
Explanation of writing-off:
□Applicable √Not applicable
Other notes:
□Applicable √Not applicable
Dividend receivable
(1). Dividend receivable
□Applicable √Not applicable
(2). Important dividend receivable with an account age longer than 1 year
□Applicable √Not applicable
(3). Categorized disclosure based on the bad debt provision method
□Applicable √Not applicable
279 / 289
2023 Annual Report
Accounts receivable for which bad debt provision is made individually:
□Applicable √Not applicable
Explanation for making bad debt provision for accounts receivable individually:
□Applicable √Not applicable
Explanation for making bad debt provision for accounts receivable by group:
□Applicable √Not applicable
(4). Provision for bad debts based on the general model of expected credit losses
□Applicable √Not applicable
Classification basis and bad debt provision ratio for each stage
No
Explanation of significant changes in the book balance of dividends receivable due to changes
in loss provisions in this period:
□Applicable √Not applicable
(5). Provisions for bad debts
□Applicable √Not applicable
In which the recovered or reversed amount is important:
□Applicable √Not applicable
Other notes:
No
(6). Dividends receivable actually written off in this period
□Applicable √Not applicable
Important dividend receivables written off among them
□Applicable √Not applicable
Explanation of writing-off:
□Applicable √Not applicable
Other notes:
□Applicable √Not applicable
Other receivables
(1). Disclosure based on account age
√Applicable □Not applicable
Unit: RMB
Account age Closing book balance Opening book balance
Within 1 year
In which: sub-items
Within 1 year 11,372,670.58 4,851,948.94
Within 1 year 11,372,670.58 4,851,948.94
1 to 2 years 230,770.07 419,739.44
2 to 3 years 1,086,758.22 322,708,656.80
Over 3 years 957,449.34 2,415,046.44
Bad debt provision for other -755,560.20 -787,922.23
receivables
Total 12,892,088.01 329,607,469.39
(2). Classification based on the nature of accounts
√Applicable □Not applicable
280 / 289
2023 Annual Report
Unit: RMB
Nature of receivable Closing book balance Opening book balance
Withholdings, deposit and 13,444,205.52 6,560,139.05
margin
Reserve 203,442.69 48,340.48
Financial assistance - 323,786,912.09
receivable from joint ventures
Total 13,647,648.21 330,395,391.62
(3). Bad debt provision
√Applicable □Not applicable
Unit: RMB
Stage 1 Stage 2 Stage 3
Expected credit
Expected Expected credit loss
loss in the entire
Bad debt provision credit loss in in the entire Total
duration (credit
the coming 12 duration (credit has
has been
months not been impaired)
impaired)
Balance as of January 1,
2023
787,922.23 787,922.23
Balance as of January 1,
2023 in the current period
Provision made in the current
period
43,219.60 43,219.60
Current reversal 75,581.63 75,581.63
Balance as of December 31,
2023
755,560.20 755,560.20
Classification basis and bad debt provision ratio for each stage
No
Significant changes in the book balance of other receivables with changes in loss provisions:
□Applicable √Not applicable
Basis for the bad debt provision made in the current period and for assessing whether the
credit risk of financial instruments has increased significantly:
□Applicable √Not applicable
(4). Provisions for bad debts
√Applicable □Not applicable
Unit: RMB
Amount of change during the
Opening current period
Category Closing balance
balance Recovery or
Provision
reversal
Bad debt provision
for other 787,922.23 43,219.60 75,581.63 755,560.20
receivables
Total 787,922.23 43,219.60 75,581.63 755,560.20
Among them, important recovered or reversed amounts:
□Applicable √Not applicable
Other statements
No
(5). Other receivables actually written off during the current period
□Applicable √Not applicable
Of which, important write-offs of other receivables:
□Applicable √Not applicable
281 / 289
2023 Annual Report
Notes on the write-off of other receivables:
□Applicable √Not applicable
(6). Other receivables from the five debtors with highest closing balance
√Applicable □Not applicable
Unit: RMB
Closing
Weight in the total balance of
Closing Nature of Account
Debtor closing balance of bad debt
balance receivable age
other receivables (%) provision
Transactions
Yiwu Junhuhui Within 1
5,118,245.58 37.50 between -
Entertainment Co., Ltd year
companies
Yiwu China Commodities Transactions
Within 1
City Information 3,452,491.46 25.30 between -
year
Technology Co., Ltd. companies
Yiwu Power Transmission
Electricity Over 3
and Transformation 1,120,054.00 8.21 -
charge years
Engineering Co., Ltd.
Transactions
Zhejiang Yuntong Over 3
596,580.00 4.37 between 596,580.00
Advertising Co., Ltd. years
companies
Transactions
Yiwu Market Development Within 1
337,168.00 2.47 between -
Group Co., Ltd. year
companies
Total 10,624,539.04 77.85 / / 596,580.00
(7). Reported as other receivables due to centralized fund management
□Applicable √Not applicable
Other notes:
□Applicable √Not applicable
282 / 289
2023 Annual Report
3. Long-term equity investment
√Applicable □Not applicable
Unit: RMB
Closing balance Opening balance
Item Impairment Impairment
Book balance Book value Book balance Book value
provision provision
Investment in subsidiaries 4,720,325,641.28 - 4,720,325,641.28 4,980,206,448.14 570,000,000.00 4,410,206,448.14
Investment in associates and 5,877,913,559.04 - 5,877,913,559.04
4,800,215,865.20 - 4,800,215,865.20
joint ventures
Total 10,598,239,200.32 - 10,598,239,200.32 9,780,422,313.34 570,000,000.00 9,210,422,313.34
(1). Investment in subsidiaries
√Applicable □Not applicable
Unit: RMB
Closing
Current
Increase in the Decrease in the balance of
Investee Opening balance Closing balance provision for
current period current period impairment
impairment
provision
Yiwu China Commodities City Financial
2,239,426,242.40 283,575.48 - 2,239,709,817.88 - -
Holdings Co., Ltd.
Haicheng Yiwu China Commodities City
571,277,386.09 - 571,277,386.09 - - -
Investment Development Co., Ltd.
Yiwu Shangbo 300,000,000.00 200,000,000.00 - 500,000,000.00 - -
Yiwu Commodities City Gonglian Property Co.,
200,000,000.00 - - 200,000,000.00 - -
Ltd.
Zhejiang China Commodities City Group
120,059,576.13 110,831.68 - 120,170,407.81 - -
Commercial Factoring Co., Ltd.
Yiwu China Commodities City Big Data Co.,
102,984,635.63 2,498,902.00 - 105,483,537.63 - -
Ltd.
Yiwu China Commodities City Import and
102,334,012.67 214,031.26 - 102,548,043.93 - -
Export Co., Ltd.
Yiwu China Commodities City Supply Chain
101,265,319.13 483,779.09 - 101,749,098.22 - -
Management Co., Ltd.
Yiwu China Commodities City Overseas
101,540,253.96 316,528.77 - 101,856,782.73 - -
Investment and Development Co., Ltd.
283 / 289
2023 Annual Report
Yiwu China Commodities City Tourism
100,977,959.14 255,765.42 - 101,233,724.56 - -
Development Co., Ltd.
Yiwu China Commodities City Logistics and
101,931,157.09 529,842.09 - 102,460,999.18 - -
Distribution Co., Ltd.
Zhejiang Huajie Investment and Development
74,423,097.53 4,627,882.71 - 79,050,980.24 - -
Co., Ltd.
Yiwu China Commodities City Information
50,965,115.90 117,936.28 - 51,083,052.18 - -
Technology Co., Ltd.
Hangzhou Shangbo Nanxing Property Co., Ltd. 50,000,000.00 - - 50,000,000.00 - -
Yiwu China Commodities City Exhibition Co.,
19,666,060.90 1,307,554.53 - 20,973,615.43 - -
Ltd.
Yiwu Comprehensive Bonded Zone Operation
36,668,690.36 24,108,860.75 - 60,777,551.11 - -
and Management Co., Ltd.
Yiwu China Commodities City Assets Operation
11,375,213.90 596,156.13 - 11,971,370.03 - -
and Management Co., Ltd.
Yiwu China Commodities City Research
11,208,192.49 430,871.78 - 11,639,064.27 - -
Institute Co., Ltd.
Zhejiang Yindu Hotel Management Co., Ltd. 13,534,551.93 1,586,178.55 - 15,120,730.48 - -
Yiwu China Commodities City Commerce and
600,000.00 - 600,000.00 - - -
Trade Service Training Center Co., Ltd.
Yiwu Shangbo Shuzhi Enterprise Management
225,600,000.00 74,400,000.00 - 300,000,000.00 - -
Co., Ltd.
Zhejiang Xunchi Digital Technology Co., Ltd. 444,368,982.89 127,882.71 - 444,496,865.60 - -
Total 4,980,206,448.14 311,996,579.23 571,877,386.09 4,720,325,641.28 - -
(2). Investment in associates and joint ventures
√Applicable □Not applicable
Unit: RMB
Change in the current period
Closing balance of
Investment Opening amount Investment gains or losses Closing amount
Change in other impairment
Unit Balance recognized with the equity Balance
benefits provision
method
1. Joint ventures
Yiwu Shanglv Investment Development 38,957,479.65 - 435,929,928.58 -
396,972,448.93
Co., Ltd.
284 / 289
2023 Annual Report
Yiwu Rongshang Property Co., Ltd. 65,650,902.46 -205.43 - 65,650,697.03 -
Yiwu Chuangcheng Property Co., Ltd. 28,449,292.72 -763,659.31 - 27,685,633.41 -
Yiwu Guoshen Shangbo Property Co., Ltd. 75,740,065.56 851,479,615.72 - 927,219,681.28 -
Other 25,064,023.73 -1,532,029.01 - 23,531,994.72 -
Sub-total 591,876,733.40 888,141,201.62 - 1,480,017,935.02 -
2. Associates
Yiwu Huishang Micro-finance Co., Ltd. 78,209,979.82 377,956.29 78,587,936.11
Zhejiang Chouzhou Financial Lease Co., 85,753,216.38 574,958,766.29
489,205,549.91
Ltd.
Pujiang Lvgu Property Co., Ltd. 374,601,160.67 -28,304,294.27 346,296,866.40
Yiwu China Commodities City Property 142,231,123.08 3,127,041,142.49
2,984,810,019.41
Development Co., Ltd.
Zhejiang Zhijie Yuangang International -13,581,395.16 131,982,044.17
145,563,439.33
Supply Chain Technology Co., Ltd.
Other 135,948,982.66 3,079,885.90 139,028,868.56
Sub-total 4,208,339,131.80 189,556,492.22 4,397,895,624.02
Total 4,800,215,865.20 1,077,697,693.84 5,877,913,559.04
(3). Impairment testing of long-term equity investments
□Applicable √Not applicable
Other notes:
No
285 / 289
2023 Annual Report
4. Operating revenue and operating cost
(1). Overview of operating revenue and operating cost
√Applicable □Not applicable
Unit: RMB
Amount in the current period Amount in the previous period
Item
Revenue Cost of sales Revenue Cost of sales
Main business 3,324,037,682.76 990,912,064.53 1,661,326,251.95 856,617,946.98
Other 317,697,773.72
92,953,576.91 280,256,309.07 80,555,208.55
businesses
Total 3,641,735,456.48 1,083,865,641.44 1,941,582,561.02 937,173,155.53
(2). Breakdown information of operating revenue and operating costs
√Applicable □Not applicable
Unit: RMB
Total
Classified by type of contract
Operating revenue Operating cost
Types of goods
The use of shops in the China Commodities 3,030,810,080.75 518,351,009.71
City markets and the supporting services for
operation
Hotel accommodation and catering services 298,712,858.87 265,378,120.34
Leasing 286,324,773.15 133,390,569.90
Usage fee 6,549,230.44 -
Other services 19,338,513.27 166,745,941.49
Classified by business area
Chinese Mainland 3,641,735,456.48 1,083,865,641.44
Revenue recognition time
Revenue confirmed at certain time point 175,816,268.19 144,694,873.14
Revenue confirmed during certain time period 3,465,919,188.29 939,170,768.30
Total 3,641,735,456.48 1,083,865,641.44
Other statements
√Applicable □Not applicable
The income recognized in the current year and included in the opening book value of
contractual liabilities is as follows:
Unit: RMB
Type of contract Current period
The use of shops in the China Commodities City
3,011,011,456.55
markets and the supporting services for operation
Hotel accommodation service 8,997,757.36
Other services 7,257,064.68
Total 3,027,266,278.59
(3). Contract performance obligations
□Applicable √Not applicable
(4). Amortization to remaining contract performance obligations
√Applicable □Not applicable
As of the end of the reporting period, the revenue amount attributable to performance obligations
under contracts that had been signed but not yet partially or fully fulfilled was RMB
3,032,044,768.16. The Group expects this amount to be recognized as revenue in the next 5
years as the relevant services are provided.
286 / 289
2023 Annual Report
(5). Significant contract changes or significant transaction price adjustments
□Applicable √Not applicable
Other notes:
The information related to the performance obligations of the Group is as follows:
The use of shops in the China Commodities City markets and the supporting services for
operation
The contractual performance obligation is fulfilled when providing the use of shops in the
China Commodities City markets and the supporting services for operation. For the use of
shops in the Commodity City and the supporting services for business, the progress of contract
performance is determined based on the number of using days of the shops. Customers
usually need to pay in advance before the use of shops in the China Commodities City markets
and the supporting services for operation are provided.
Hotel accommodation business
The performance obligation is fulfilled when providing hotel accommodation services. For
the hotel accommodation business, the progress of contractual performance is determined
based on the number of days of stay. For hotel accommodation services, a partial deposit is
collected from the customer first, and the remaining contract price is usually collected upon the
completion of the hotel accommodation services.
Hotel catering business
The performance obligation is fulfilled when the hotel catering services are provided. The
contract price for hotel catering services is usually charged when the hotel catering services
are performed.
Fixed -time paid funding services
The performance obligation is fulfilled when the fixed-time paid funding service is
provided. For the fixed-time paid funding service, the progress of contractual performance is
determined based on the number of using days the fund. For the fixed-time paid funding
service, the contract price is usually charged regularly as agreed in the contract.
5. Investment income
√Applicable □Not applicable
Unit: RMB
Amount in the Amount in the
Item
current period previous period
Income from long-term equity investment 1,077,697,693.84 932,395,547.67
calculated with the equity method
Investment income from disposal of long-term - 270,094.36
equity investment
Dividend income from other equity instruments 3,762,820.14 12,542,733.80
investment during holding period
Investment income from disposal of held-for- 13,602.59 47,694.29
trading financial assets
Income acquired from other non-current financial 5,349,937.60 2,978,950.32
assets during the holding period
Total 1,086,824,054.17 948,235,020.44
Other notes:
No
6. Other
□Applicable √Not applicable
287 / 289
2023 Annual Report
XX. Supplements
1. Detailed statement of current non-recurring items
√Applicable □Not applicable
Unit: RMB
Item Amount Description of
Non-current asset disposal gains and losses, including
the offsetting portion of the provision for impairment of 139,113,943.98
assets
Government grants that are recognized in the current
profit or loss, excluding the government grants that are
closely related to the normal operation of the Company
and provided in a fixed amount or quantity and that 32,404,875.29
have a continuous impact on the Company's gains and
losses according to the national polices and certain
standards
Except for effective hedging business related to the
normal operation of the Company, the fair value gains
and losses arising from the holding of financial assets
-51,087,595.90
and financial liabilities by non-financial enterprises, as
well as the gains and losses arising from the disposal
of financial assets and financial liabilities
Cash occupation fees charged from non-financial
enterprises that are recognized in the current profit or 18,907,795.24
loss
Profits and losses arising from external entrusted loans 2,525,847.12
Net income from other non-operating activities 6,365,155.41
Other profit and loss items that meet the definition of
121,465,746.29
non-recurring profit and loss
Less: effect of income tax 60,306,979.87
Effect of minority interest (after-tax) 1,892,636.73
Total 207,496,150.83
If the Company recognizes non-recurring profit and loss items that are not listed in the
Explanatory Announcement No. 1 on Information Disclosure of Companies Issuing Securities
to the Public as non-recurring profit and loss items with significant amounts, and define non-
recurring profit and loss items listed in the Explanatory Announcement No. 1 on Information
Disclosure of Companies Issuing Securities to the Public as recurring profit and loss items, the
reasons should be explained.
□Applicable √Not applicable
Other statements
□Applicable √Not applicable
2. ROE and EPS
√Applicable □Not applicable
Weighted EPS
Profits in the reporting period average ROE
(%) Basic EPS Diluted EPS
Net profits attributable to common
16.06 0.49 0.49
shareholders of the Company
Net profits attributable to common
shareholders of the Company after
14.82 0.45 0.45
deducting non-recurring gains and
losses
288 / 289
2023 Annual Report
3. Differences in accounting data between foreign and Chinese accounting standards
□Applicable √Not applicable
4. Other
□Applicable √Not applicable
Chairman of Board of Directors: ZHAO Wenge
Date of approving by the Board of Directors for release: April 17, 2024
Amendment
□Applicable √Not applicable
289 / 289
