Semi-annual Report for 2022
Company Code: 600415 Stock Short Name: 小商品城
Zhejiang China Commodities City Group
Co., Ltd.
Semi-annual Report for 2022
1 / 180
Semi-annual Report for 2022
Important Note
I. The Board of Directors, the Board of Supervisors and the directors, supervisors and
senior management of the Company hereby warrant the truthfulness, accuracy and
completeness of the contents of the Semi-annual Report, guarantee that there are no false
representations, misleading statements or material omissions contained in this
Semi-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. This semi-annual report has not yet been audited.
IV. ZHAO Wenge, Legal Representative, WANG Dong, Head in charge of accounting, and
ZHAO Difang, Head of Accounting Department (Accounting Supervisor) hereby state that,
they guarantee the truthfulness, accuracy and completeness of the financial report in the
semi-annual report.
V. The profit distribution plan for the reporting period or the plan for public reserve funds
into share capital that was approved by the board of directors
Nil
VI. Risk statement with forward-looking representations
√Applicable □Not applicable
The forward-looking representations involved in this Report such as future plans and development
strategies do not constitute the Company’s substantial commitments to investors. Investors shall
watch out for the investment risks.
VII. Is the Company’s cash occupied by its controlling shareholder or any of its affiliates for
non-operational purposes?
No
VIII. Has the Company provided external guarantee in violation of the prescribed
decision-making procedures?
No
2 / 180
Semi-annual Report for 2022
IX. Whether there is circumstance that more than half of the directors cannot guarantee
the authenticity, accuracy and completeness of the semi-annual report disclosed by the
Company
No
X. Reminder of major 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
3 / 180
Semi-annual Report for 2022
Table of Contents
Section I. Definitions .........................................................................................................5
Section II. Company Profile and Financial Highlights ..................................................6
Section III. Discussion and Analysis of Managers .........................................................9
Section IV. Corporate Governance .................................................................................30
Section V. Environmental and Social Responsibilities ...............................................35
Section VI. Significant Matters.........................................................................................36
Section VII. Changes in Shares and Shareholders .......................................................46
Section VIII. Preferred Shares..........................................................................................50
Section IX. Bonds ..............................................................................................................51
Section X. Financial Report ............................................................................................57
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 department.
Documents for
Resolutions of the 52 th Meeting of the 8th Board of Directors, resolutions
Inspection
of the 15 th Meeting of the 8th Board of Supervisors
Written confirmation opinions of directors, supervisors and senior
management on the Company's 2022 Semi-annual Report and Summary
4 / 180
Semi-annual Report for 2022
Section I. Definitions
For the purpose of this Report, unless otherwise stated in the context, the following terms shall have
the following meanings:
Definitions
SCO means Yiwu State-owned Capital Operation Co., Ltd.
MDG means Yiwu Market Development Group Co., Ltd.
CCCH means Yiwu China Commodities City Holdings Limited
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 Lease means Zhejiang Chouzhou Financial Lease Co., Ltd.
Pujiang Lvgu means Pujiang Lvgu Property Co., Ltd.
Handing Shangbo means Yiwu Handing Shangbo Real Estate Co., Ltd.
Huangyuan Shangbo means Yiwu Huangyuan Shangbo Property Co., Ltd.
Yiwu Rongshang Property means Yiwu Rongshang Property Co., Ltd.
Yiwu Chuangcheng Property means Yiwu Chuangcheng Property Co., Ltd.
Chengzhen Property means Yiwu Chengzhen Property Co., Ltd.
Tonghui Shangbo means Yiwu Tonghui Shangbo Real Estate Co., Ltd.
The Company, the Listed means Zhejiang China Commodities City Group Co., Ltd.
Company or the Group
5 / 180
Semi-annual Report for 2022
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 Haiyang Business Building, No.105 Haiyang Business Building, No.105
Futian Road, Yiwu Futian Road, Yiwu
Telephone 0579-85182812 0579-85182812
Fax 0579-85197755 0579-85197755
Email Hxu@cccgroup.com.cn Hxu@cccgroup.com.cn
III. Introduction to changes in basic information
Registered address Haiyang Business Building, No.105 Futian Road, Yiwu,
Zhejiang Province
Office address Haiyang Business Building, No.105 Futian Road, Yiwu,
Zhejiang Province
Postal code at the office address 322000
Corporate website www.cccgroup.com.cn
Email 600415@cccgroup.com.cn
IV. Changes in information disclosure and filing place
Newspaper selected by the Company for China Securities Journal, Shanghai Securities News and
information disclosure Securities Times
Website for publishing the Semi-annual www.sse.com.cn
Report
Place for access to the Company’s Securities Department of the Company
Semil-annual Report
V. Stock profile
Type of stock Exchange Stock short name Stock code Stock short name
before change
A-share Shanghai Stock 小商品城 600415 Nil
Exchange
6 / 180
Semi-annual Report for 2022
VI. Other relevant information
□Applicable √Not applicable
VII. Major accounting data and financial indicators of the Company
(i) Major accounting data
Unit: RMB
Increase/decrease
during the
Current reporting
reporting period
Major accounting data period Jan-Jun 2021
over the same
(Jan-Jun 2022)
period of the
previous year (%)
Operating revenue 4,207,027,616.46 2,072,627,727.00 102.98
Net profits attributable to
1,222,205,978.81 850,514,460.93 43.70
shareholders of the Listed Company
Net profits attributable to
shareholders of the Listed Company 1,181,715,806.64 804,980,899.44 46.80
with non-recurring items excluded
Net cash flow from operating
-666,587,333.62 166,735,824.75 -499.79
activities
Increase/decrease
As of the end of at the end of the
As of the end of
the current reporting period
2021
reporting period over the end of the
previous year (%)
Net assets attributable to
15,381,084,979.34 14,610,845,868.33 5.27
shareholders of the Listed Company
Total assets 30,206,562,945.71 31,014,635,513.35 -2.61
(ii) Major financial indictors
Increase/decrease
Current
during the
reporting
Jan-Jun reporting period
Major financial indictors period
2021 over the same
(Jan-Jun
period of the
2022)
previous year (%)
Basic EPS (RMB) 0.22 0.16 37.50
Diluted EPS (RMB) 0.22 0.15 46.67
Basic EPS after deducting non-recurring gains and 0.22 0.15 46.67
losses (RMB/share)
Weighted average ROE (%) 8.05 6.09 Up 1.96 ppt
Weighted average ROE after deducting non-recurring 7.78 5.77 Up 2.01 ppt
gains and losses (%)
Illustration on major accounting data and financial indicators
□ Applicable √Not applicable
7 / 180
Semi-annual Report for 2022
VIII. Differences in accounting data between foreign and Chinese accounting standards
□ Applicable √Not applicable
IX. Non-recurring items and amounts thereof
√Applicable □Not applicable
Unit: RMB
Non-recurring items Amount Remarks (if applicable)
Gain or loss from the disposal of non-current
-54,710.90
assets
Government grants that are recognized in the
current profit or loss, excluding the government Please refer to details of
grants that are closely related to the normal other income and
operation of the Company and are provided in 16,645,616.31 government grants
a fixed amount or quantity continuously accounted for profit or loss for
according to the national polices and certain the current period
standards
Cash occupation fees charged from
Cash occupation fee for
non-financial enterprises that are recognized in 32,264,049.60
receiving financial aid
the current profit or loss
Gain or loss from changes in fair value of
held-for-trading financial assets, derivative
financial assets, financial liabilities held for Investment income from
trading and derivative financial liabilities, and disposal of financial assets
investment income from the disposal of held for trading, and gains
-390,717.89
held-for-trading financial assets, derivative and losses from changes in
financial assets, financial liabilities held for fair value of financial assets
trading, derivative financial liabilities and other held for trading
debt instruments, except for effective hedging
during the ordinary course of business
Mainly confiscated deposits,
Net income from other non-operating activities 3,443,596.86 collected liquidated damages
and other similar items
Other profit and loss items that meet the
26,619.73
definition of non-recurring profit and loss
Less: effect of income tax 10,410,076.49
Effect of minority interest (after-tax) 1,034,205.05
Total 40,490,172.17
Expanation about defining the non-recurring profit and loss items listed in the Explanatory Notice No.
1 of Information Disclosure of Companies Publicly Issuing Securities - Non-recurring Profit and Loss
items as the current profit and loss items
□Applicable √Not applicable
X. Others
□Applicable √Not applicable
8 / 180
Semi-annual Report for 2022
Section III. Discussion and Analysis of Managers
I. Description of the industry and the Company’s main business during the reporting
period
(i) Description of the industry to which the Company belongs
In recent years, thanks to China's stable economic and social development and its leading
position in the world in pandemic prevention and control, China's potential of the foreign trade
industry was fully tapped and its comprehensive competitiveness continued to improve. The
changing flow of commerce promoted the emergence and evolution of the structural trend of foreign
trade. China is at the key point of "top-down" comprehensive transformation and upgrading of
foreign trade in the national strategy, and Yiwu plays a pivotal role in this key point.
1. Industry policy
The "Opinions of the Central Committee of the Communist Party of China and the State Council
on Accelerating the Construction of a Large National Market" (hereinafter referred to as the
"Opinions") was released in April 2022. The "Opinions" provide an action plan for the construction of
a large national market in the future. It is mentioned in the "Opinions" that it is necessary to optimize
the layout of commercial and trade circulation infrastructure, accelerate digital construction, promote
the integrated development of online and offline, and form more new platforms, new formats and
new models of commercial and trade circulation. It is mentioned in the "Opinions" that vigorously
develop third-party logistics, support the construction of digital third-party logistics delivery platforms,
promote innovation in technology and business models in the third-party logistics industry, cultivate a
group of digital platform companies and supply chain companies with global influence, and promote
cost reduction and efficiency in logistics across society.
2. Yiwu Market
As an "important window" for import and export trade, Yiwu achieved a total import and export
volume of RMB 222.25 billion yuan in the first half of the year, up 32.8% YoY; of which exports were
RMB 202.95 billion yuan, up 28.3% YoY; imports were RMB 19.30 billion yuan, up109.5% YoY.
Yiwu's express delivery business continues to be at the forefront of the country, and is known as
the "wind vane" of the national express delivery business. In the first half of the year, the business
income of the postal industry in Yiwu City (excluding the direct operating income of the Postal
Savings Bank) reached a total of RMB 13.11 billion yuan, up 14.3% YoY; the business volume of
Yiwu express service enterprises reached a total of 4.245 billion pieces, and the business income
reached a total of RMB 12.2 billion yuan, up 11.3% YoY.
(ii) Description of main business
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).
1. Main Business
9 / 180
Semi-annual Report for 2022
The Company is engaged in market development and operation and supporting services,
providing online trading platform and services, online trading market development and operation,
etc., belonging to the comprehensive industry category.
2. Business Model
(1) Market operation
Market operation business is mainly operated and managed by the Company's subordinate
market branches. The main business income of the market operation segment is mainly the income
from the use of shops. The Company adopts a shop rental model, that is, the ownership of the shops
belongs to the Company, and market traders only have the right to use the shop within the contract
period. The Company and market traders sign a contract to clearly stipulate the use period, usage
fee and business purpose of the shops. The merchant shall not change the agreed business
purpose, and shall not sublet without the Company’s consent. Generally, the payment methods of
usage fee are one-time payment or installment payment according to the contract terms. Currently,
the markets that the Company is responsible for operating include Zone 1 to Zone 5 of the
International Trade City, Importing Market, Zone 1 East Expansion Market, Huangyuan Market and
International Production Goods Market.
(2) Online trading platform
Relying on the Company's market resources of 75,000 off-line shops, Yiwu market official
website “chinagoods” platform (www.chinagoods.com, referred to as "chinagoods platform")
provides service for over 2 million micro, small, and medium enterprises in the upper reaches of the
industry chain. With trade data integration as the core driver, it meets the needs of both supply and
demand parties in manufacturing, display transactions, warehousing and logistics, financial credit,
market management and other links to achieve effective and accurate allocation of market resources,
and build a true, open, and integrated digital trade comprehensive service platform.
II. Analysis of core competencies during the reporting period
√Applicable □Not Applicable
(i) First-mover advantages
At the start of China’s reform and opening-up, Yiwu took the lead in establishing the
commodities market. During the recent forty years, the market has been upgraded five times and
expanded ten times and has been among the top comprehensive national markets with the highest
turnover, pointing to its remarkable first-mover advantages. As the largest commodities distribution
center in the world, the Yiwu commodities market provides more than 2.1 million products, which fall
into 26 categories and supports one-stop purchase. The market boasts enormous resources and
huge business flow, goods flow, cash flow and information flow.
(ii) Brand advantages
“Yiwu China Commodities City” is the first market identified by the SAIC as a well-known
trademark among the national commodities trading markets. The Company has taken multiple
measures to give play to the brand of “Yiwu China Commodities City” and is committed to improving
its influence and leading role in the industry. Its brand advantages and influence have kept
enhancing.
10 / 180
Semi-annual Report for 2022
(iii) Auxiliary services advantages
The People’s Government of Yiwu has been providing policy support for the development of the
market for years, and the auxiliary industries are developing rapidly in Yiwu.
1. Convenient logistics system
Yiwu has in place perfect commerce and trade auxiliary facilities and advantageous logistics
service. The logistics network has full coverage in Yiwu. A large number of large-sized international
and domestic express delivery and logistics companies have regional distribution centers in Yiwu,
and a world-oriented goods transport and distribution network has been established. Yiwu has
complete commercial and trade supporting facilities, and has significant advantages in logistics and
distribution service clusters. It vigorously builds a "new eight routes" logistics system consisting of
highways, railways, sea routes, air routes, postal routes, Internet, Yixinou and Yiyongzhou. 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.
2. Industry support
Yiwu City has planned and developed two industrial zones in the northeast and southwest,
covering an area of 100 square kilometers each, led by foreign investment zones, according to its
location advantages and industry layout characteristics. The northeastern industrial zone of Yiwu
focuses on the development of high-tech and advantageous industries such as export product
processing, clothing, knitting, and printing; the southwestern industrial zone of Yiwu has been built
into an internationally competitive modernization, International manufacturing base.
In recent years, thanks to the Yiwu China Commodities City, the Yiwu-centered manufacturing
industry cluster has been developing fast, an commodities industrial belt that covers Jinhua, Lishui,
Quzhou, Hangzhou, Jiaxing, Huzhou, Shaoxing, Ningbo, Wenzhou and Taizhou with an area of
nearly 10,000 km2 has been established, and it has magnified Yiwu Market's advantages and
continued to create values for circulation of small commodities.
3. Development of exhibition service
The major international trade exhibitions held by the Company’s exhibition business division
such as China Yiwu International Commodities Fair, China Yiwu International Forest Products Fair,
China Yiwu International Imported Commodities Fair and China Yiwu Hardware and Electrical Expo
support and cultivate vertical exhibition in multiple industries such as stationery and textiles, have
developed multiple professional and international exhibition brands, and are important national
platforms for the China Commodities City to lead industry development, develop the city economy
and maintain the clusters of traders and commodities.
(iv) Advantages of digital market
The Company's International Trade City is the world's leading small commodity entity market.
The "Yiwu Small Commodities City" platform (www.chinagoods.com), as the official website of Yiwu
Market, was officially launched in October 2020. The platform builds a framework system of "market
entities + business platforms + service platforms + infrastructure", builds a full-link, full-scenario,
digital market and trade ecosystem, demonstrates "a platform on the cloud, a network on the
ground", and jointly promotes the in-depth development of the market trade system of "online and
11 / 180
Semi-annual Report for 2022
offline integration, import and export linkage, communication between domestic and overseas
market, and simutaneous developemt of domestic and foreign trade". In the context of the era of
common prosperity, it serves the domestic and international dual circulation.
(v) 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.
(vi) 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 well-established 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.
III. Discussion and analysis of operation status
2022 is the year of the 20th National Congress of the Communist Party of China, a key year for
the implementation of the "14th Five-Year Plan", and the 40th anniversary of Yiwu Market. In the first
half of the year, facing the challenges of repeated global outbreaks of Covid-19, geopolitical conflicts,
rising raw material and logistics costs, and accelerated onlineization of traditional foreign trade forms,
the Company focused on the strategic goal of an integrated service provider for international trade,
and under the framework of a unified national market, the Company coordinated the prevention of
the Covid-19 pandemic and promotion of transformation development, to break through the physical
limitations of traditional business with digital reform, consolidate and enhance the core
competitiveness of the Market.
In the first half of 2022, the total import and export volume of Yiwu City was RMB 222.25 billion
yuan, up 32.8% YoY. Among them, exports were RMB 202.95 billion yuan, up 28.3% YoY. Imports
were RMB 19.30 billion yuan, up 109.5% YoY. Market procurement trade was still the main force
driving the growth of Yiwu's export share. In terms of region, the total import and export volume to
North America and the EU increased by more than 70% YoY, and the growth rate of the total import
and export volume to East Asia such as South Korea increased by over 150%. The shift to
small-town and rural markets in some regions and the signing of the RCEP agreement have brought
new opportunities to the Yiwu Market.
During the reporting period, the Company's operating income was RMB 4.207 billion, up
102.98% YoY, and the net profit attributable to shareholders of the Listed Company was RMB 1.222
billion, up 43.70% YoY.
12 / 180
Semi-annual Report for 2022
(i) Market operation
1. Overview of market operation
During the reporting period, the Company effectively carried out Covid-19 pandemic prevention
and control work, and took multiple measures to continue to stimulate market vitality. The occupancy
rate of booths remained above 96%. From January to June, the market turnover was RMB 99.967
billion, up 3.71% YoY.
2. Expansion of the domestic markets
In the first half of the year, the construction of the domestic markets progressed in an orderly
manner. The Company's Yiwu International Trade City Second District East Market has completed
the project construction and business location at the end of June. At present, investment promotion
work has started. The Second District East Market has a construction area of about 132,000 square
meters. It is adjacent to the International Trade City Station of light rail lines. The area of an
individual shop has been increased, making it easier to display diversified products in an all-round
way. As a model of the sixth-generation market in Yiwu, the East Market of the Second District has
implanted a series of digital applications, such as AI cameras, interactive screens, etc., to provide
intelligent services such as AI interaction; it improves the efficiency of product selection and
procurement by using applets and contact points in the market, and use efficiency to measure the
level of market digital services and iterating digital technology.
3. Overseas market expansion
Dubai Yiwu China Commodities City (hereinafter referred to as Dubai Market) was officially
opened as of the end of June, with an overall occupancy rate of nearly 99%. It takes a 15-minute
drive from Maktoum Airport and Jebel Ali Port, one of the largest ports in the Middle East, to the
Dubai Market, effectively radiating the consumer market of nearly 1 billion people around (the Middle
East, North Africa, Europe, etc.). The Dubai Market is the first overseas submarket in the Company's
"global strategy", and it is also one of the important measures for the Company to integrate into the
new development pattern of domestic and international dual circulation.
Dubai is the "Gateway to the Middle East" and the largest trade distribution center for
Made-in-Yiwu commodities in the Middle East. The Dubai Market has broken through the limitation
of time and space, which is equivalent to moving the Yiwu market overseas, and gradually "moving"
more than 2 million kinds of commodities to Dubai, solving the problems of foreign buyers not being
able to come to Yiwu to purchase, the lack of physical experience of online display, and the low
inefficiency of online communication, etc. At the same time, the project has built a golden
international logistics channel between Yiwu and Dubai to promote the efficient flow of Chinese
commodities in the UAE, and make Dubai a "bridgehead" for Chinese commodities to seamlessly
connect with the Middle East, Africa and Europe.
(ii) Digital reform
1. Digital + Market
(1) Chinagoods platform
Yiwu Market's official website "Yiwu Small Commodities City" platform (www.chinagoods.com,
referred to as "chinagoods platform") relies on the Company's market resources of 75,000
13 / 180
Semi-annual Report for 2022
brick-and-mortar stores to serve more than 2 million small, medium and micro enterprises in the
upstream of the industry chain. During the reporting period, the chinagoods platform achieved GMV
of RMB 15.178 billion.
The chinagoods platform takes the integration of trade data as the core driving force, meets the
needs of both supply and demand in production, display transactions, warehousing and logistics,
financial credit, market management and other links, and builds a real, open and integrated digital
comprehensive service platform for trade. It's the core carrier for the Company to realize the
digitalization of trade.
(2) Caigoubao
Caigoubao was launched on the chinagoods platform in November 2021. In view of the
characteristics of scattered orders, LCL declaration, and no-ticket tax exemption in market
procurement trade, combined with the "cargo unitizer system", one-click "documentary procurement",
"digital cargo examination", "loading and shipping" and "smart customs declaration" can be realized.
The order sheet, packing list, customs declaration form and foreign exchange settlement form are
connected in series to form a unique closed-loop information of market procurement trade methods;
chinagoods platform logistics, overseas warehouses, supply chain financial services and other
functions form a closed loop of logistics; licenses of the Company for payment, factoring, small loans,
local and foreign currency exchange, and products such as Daikuanbao amd Jiehuibao are used to
form a closed loop of payment flow and capital flow. "Three Flow Convergence" simplifies trade links,
improves trade efficiency, and helps Chinese small commodities go overseas. As of the end of the
reporting period, the transaction volume of Caigoubao was 503 million.
(3) Benben Zhaohuo
Benben is the mascot of chinagoods platform. Benben Zhaohuo by adopting the "Didi Model" to
allow buyers to issue personalized needs, gradually get rid of the dependence on the traditional
"search" transaction model, try to break the "rat race" of advertising industry, and combine the "Beike
Model" with the endorsement of offline store certification and selection. Integrate supply, empower
14 / 180
Semi-annual Report for 2022
"transformation of foreign trade into domestic trade" in the form of services, achieve new, revitalized,
and precise access to effective users, and improve circulation efficiency.
Benben Zhaohuo has been online for a quarter, with an average daily consultation volume of
about 1,500, and maintains an average monthly growth of more than 50%. During the reporting
period, Benben Zhaohuo realized response to a business opportunity clue within 1 hour, merchants
offering quotations within 4 hours, and 24-hour tracking service guarantee, reaching merchants 3.3
million times.
2. Digital + Finance
(1) Payment
At present, the Company has completed the acquisition of payment licenses, and will provide
services such as smart cashiers, cross-border payments, and smart account sharing for the small
commodity industry ecosystem. Focusing on the payment and settlement business, the Company
promotes the digital transformation of the Yiwu Market, builds a closed loop of "people-goods-field"
for capital flow and information flow, and builds a new strategic financial infrastructure for digital
trade globalization.
(2) Pilot program of e-CNY application
15 / 180
Semi-annual Report for 2022
The pilot program of e-CNY application in the International Trade City has been fully launched.
The Company relies on the rich trade scenarios in Yiwu to carry out the pilot program of e-CNY,
actively explores the "Yiwu model" and "Yiwu experience", expands the application and innovation of
e-CNY in the field of commercial and trade circulation, and builds multi-industry participation in the
e-CNY circulation ecosystem. As of June 30, there were 22,395 merchants accepting e-CNY and
36,589 e-CNY wallets.
(iii) Self-operated trade
During the reporting period, the Company focused on the strategic goal of "comprehensive
service provider for international trade", entered the upstream and downstream of market trade
through self-operated trade, gave full play to the Company's platform and brand advantages, linked
trade with the market and fed back the market, forming a situation of virtuous and orderly cycle.
The Company has deployed self-operated trade since 2019. After more than two years of
market exploration and customer development and accumulation, by the second half of 2021, the
self-operated trade business had ushered in explosive growth. In the first half of 2022, relying on the
Company's advantages in overseas centralized procurement, the customer stickiness was relatively
high, and the domestic distribution demand was relatively strong, which maintained a certain growth
scale; however, due to the of global outbreaks of Covid-19 pandemic and other factors, there are still
uncertain factors in the international trade business. In the first half of 2022, trade revenue was RMB
2.401 billion yuan, an increase of 584.05% from RMB 351 million yuan in the same period last year.
(iv) Increasing speed and efficiency of construction of commercial and trade
infrastructure
1. Domestic cloud warehouse
Intensive and automated warehousing facilities and equipment have been introduced into
chinagoods shared cloud warehouses, which have attracted a number of industry chambers of
commerce to settle in. The Company explores models such as "digital inventory management and
standardized cross-border sales of non-standard small commodities" and digital operation of
industry vertical warehouses to better meet the warehousing needs of small, medium and micro
traders. The overall occupancy rate in the first half of the year was over 86%.
16 / 180
Semi-annual Report for 2022
2. Overseas warehouse
The overseas warehouse is an important overseas node for cross-border trade, a new type of
foreign trade infrastructure, and an important platform for driving the growth of foreign trade and
developing overseas markets. During the reporting period, the Company continued to actively build a
network of overseas warehouses and trade hubs, integrated trade service resource elements, and
strived to create a trade performance business supported by overseas warehouse cargo and
payment control, which includes warehousing, cargo unitizing and financial services. The Company
had a total of 144 overseas warehouses with an area of over 1.1 million square meters, covering 47
countries around the world, and initially formed 5 warehouse groups in America, Asia, Europe, Africa
and Oceania. In trade node cities in Germany, Rwanda, the Czech Republic and other countries, 20
"Take You to China" series of trade service centers have been established to promote the
advancement of the commodities market and lay a solid foundation for trade facilitation and
digitalization.
Major changes in the Company's business conditions during the reporting period, and events
occurring during the reporting period that have a major impact on the Company's business
conditions and are expected to have a major impact in the future
□Applicable √Not applicable
17 / 180
Semi-annual Report for 2022
IV. Operating status during the reporting period
(i) Analysis of main business
1 Analysis of the changes to the items in the financial statement
Unit: RMB10,000
Item
Jan-Jun 2021 Jan-Jun 2021 YoY change (%)
Operating revenue 420,702.76 207,262.77 102.98
Operating cost 315,929.81 92,541.06 241.39
Sales expenses 9,328.21 7,404.29 25.98
Administrative expenses 22,657.14 16,669.89 35.92
Financial expenses 6,289.19 4,735.10 32.82
R&D expenses 570.80 456.91 24.93
Net cash flow from operating -66,658.73 16,673.58 -499.79
activities
Net cash flow from investing -47,226.21 -3,616.21 Not applicable
activities
Net cash flow from financing 60,377.06 -20,435.12 Not applicable
activities
Reasons for the change in operating revenue: the Company’s operating revenue increased by
102.98% YoY, mainly due to the increase in the sales of goods during the current period.
Reasons for the change in operating cost: the Company’s operating cost increased by 241.39% YoY,
mainly due to the increase in the sales of goods during the current period.
Reasons for changes in administrative expenses: administrative expenses increased by 35.92% YoY,
due to the YoY increase in the accrued wages based on benefits in the first half of the year, due to
the YoY increase in benefits according to the method for accruing total wages.
Reasons for changes in financial expenses: Financial expenses increased by 32.82% YoY, due to
the decrease in interest income.
Reasons for the change in the net flow generated by operating activities: mainly due to an decrease
of RMB 868 million in net cash deducted from payment for selling goods and providing services.
Reasons for changes in net cash flow from investment activities: mainly because the net outflow of
investment during the current period increased by RMB 278 million YoY, and cash paid for
purchasing and construction of fixed assets, intangible assets and other long-term assets increased
by RMB 116 million YoY.
Explanation for the change in the net cash flow from financing activities: mainly due to an increase of
RMB 885 million YoY in the net inflow of financing in the current period.
2 Details of material changes to the business types, the components or sources of profits
of the Company in this reporting period
□Applicable √Not applicable
(ii) Material changes to profits caused by non-main businesses
□Applicable √Not applicable
(iii) Analysis of assets and liabilities
√Applicable □Not applicable
18 / 180
Semi-annual Report for 2022
1. Assets and liabilities
Unit: RMB10,000
Percentage
Percentage of difference
of the between the
% of total
Amount at closing closing
Amount at assets at
the end of balance of balance of
the end of the end Reasons for
Item the same the the current
the current of the change
period of previous period and
period current
2021 year to the the closing
period
total assets balance of
(%) the previous
year (%)
Monetary
449,933.40 14.90 483,146.84 15.58 -6.87
capital
Mainly due to the
collection of
Receivables 7,378.22 0.24 18,523.75 0.60 -60.17
receivables from
the sales of goods
Inventory 168,475.51 5.58 132,740.26 4.28 26.92
Property
291,645.32 9.66 297,393.64 9.59 -1.93
investment
Long-term
equity 577,395.84 19.11 577,245.52 18.61 0.03
investment
Fixed assets 486,272.61 16.10 507,859.09 16.37 -4.25
Mainly due to the
payment for
Construction construction
169,809.72 5.62 109,057.80 3.52 55.71
in progress projects such as
comprehensive
bonded zone
Right-of-use
21,125.81 0.70 22,534.71 0.73 -6.25
assets
Short-term Due to repayment
58,743.58 1.94 94,273.61 3.04 -37.69
borrowings of due borrowings
Mainly due to the
carry-forward of
Contract
265,058.06 8.77 405,841.92 13.09 -34.69 advance market
liabilities
payment on
schedule
Long-term Due to repayment
20,450.00 0.68 77,125.00 2.49 -73.48
borrowings of due borrowings
Lease
20,360.25 0.67 20,594.27 0.66 -1.14
liabilities
Other description
Nil
2. Overseas assets
√Applicable □Not applicable
(1) Scale of assets
Among them: offshore assets was RMB 880 million, accounting for 2.91% of the total assets.
(2) Explanation one the high proportion of offshore assets
□Applicable √Not applicable
19 / 180
Semi-annual Report for 2022
Other statements
Nil
3. Encumbrances on major assets as of the end of the reporting period
√Applicable □Not applicable
Unit: RMB
Item June 30, 2022 2021
Cash and cash equivalents 60.88 60.78
Long-term equity investment 102,918,559.00 102,918,559.00
Other non-current financial
636,870,392.09 636,870,392.09
assets
Total 739,789,011.97 739,789,011.87
1. As of June 30, 2022, bank deposits with a book value of RMB 60.88 (December 31, 2021:
RMB 60.78) were restricted for ownership or use rights due to being as security deposits for
obtaining commercial housing mortgage loan.
2. As of June 30, 2022, long-term equity investments with a book value of RMB 102,918,559.00
(December 31, 2021: RMB 102,918,559.00) and other non-current assets of RMB 636,870,392.09
(December 31, 2021: RMB 636,870,392.09) were frozen by Shanghai Municipal Public Security
Bureau.
4. Other statements
□Applicable √Not applicable
(iv) Analysis of investments
1. Overview of external equity investment
At the end of June 2022, the external investment amounted to RMB 7,936,163,100 (including
RMB 51,033,600 for financial assets held for trading, RMB 538,083,300 for investment in other
equity instruments, RMB 1,573,087,800 for other non-current financial assets, and RMB
5,773,958,400 for long-term equity investment), a decrease of RMB 78,674,500 or 0.98%, from RMB
8,014,837,600 (including RMB 75,375,100 for financial assets held for trading, RMB 642,188,000 for
investments in other equity instruments, RMB 1,524,819,300 for other non-current financial assets,
and RMB 5,772,455,200 for long-term equity investments) at the end of the previous year. The main
changes are as follows:
I. Long-term equity investment during the reporting period increased by RMB 1,503,100 YoY,
mainly due to:
1. The net investment cost decreased by RMB 4.3813 million. The investment principal
increased by RMB 20,118,700, including: RMB 19,493,700 for JEBEL ALI FREE ZONE TRADER
MARKET DEVELOPMENT AND OPERATION FZCO, RMB 625,000 for Zhejiang Yixinou Supply
Chain Management Co., Ltd.; the recovered investment principal of RMB 24,500,000 was due to the
recovery of investment funds from Hangzhou Binjiang Shangbo Real Estate Development Co., Ltd.
2. A net increase of RMB 5,884,400 was recorded in the accrued income by equity method.
Among them, the investment income and other equity changes accrued during the reporting period
20 / 180
Semi-annual Report for 2022
were RMB 748.7954 million; the dividends received were RMB 742.9110 million, including RMB
580.8656 million from Rongshang Real Estate, RMB 88.2 million from Pujiang Lvgu, RMB 60 million
from Chuangcheng Real Estate, and RMB 13.8454 million from Hangzhou Binjiang Shangbo Real
Estate Development Co., Ltd.
II. During the reporting period, the investment in other equity instruments decreased by RMB
104.1047 million year-on-year, due to the change in fair value of Shenwan Hongyuan Group Co.,
Ltd.
III. During the reporting period, the financial assets held for trading decreased by RMB
24,341,500 YoY, which was mainly due to the decrease of RMB 22,675,800 from the sale of part of
the equity of Orient International Venture Co., Ltd.
IV. During the reporting period, other non-current financial assets increased by RMB 48.2685
million compared with the end of the previous year, mainly due to the newly added RMB 60 million
for Suzhou Xiangzhong Venture Capital Partnership (Limited Partnership) and the recovery of
investment funds of RMB 11.1851 million from Nantong Zijing Huatong Equity Investment
Partnership (Limited Partnership).
The main investment is as follows:
Unit: RMB10,000
Book value
at the end Shareholding
Invested target Main business Cost of investment
of June ratio (%)
2022
Yiwu China
Commodities City Real estate development, sales, leasing (used together
Property with valid qualification certificates), real estate brokerage 271,854.77 285,826.24 49.00
Development Co., services, interior decoration; landscaping
Ltd.
Investment management, equity investment, asset
management and investment consulting (without approval
Yiwu Hongyi Equity
of the industry regulatory authorities such as the finance
Investment Fund
regulatory authority, the Company shall not be engaged in 84,000.00 89,525.45 49.975
Partnership (limited
the absorption of deposits, financial guarantee, agency
partnership)
wealth management, fundraising (financing) from the
public and other financial businesses)
Yiwu Shangfu
Chuangzhi Asset management, investment management, and
61,751.14 63,687.04 74.9982
Investment Center investment consulting service
(limited partnership)
Shenwan Hongyuan Securities brokerage, securities investment consulting
55,362.54 53,808.33 0.501
Group Co., Ltd. and securities underwriting & sponsorship
Industry investment, investment management (excluding
financial businesses such as securities and futures),
Yiwu Shanglv
property service, design, production and agency of
Investment
domestic advertising, operation and management of 39,200.00 39,024.18 49.00
Development Co.,
parking garages, marketing planning, operation and
Ltd.
management consulting, operation and management of
shopping malls and business management consulting
Pujiang Lvgu Real estate development, sales, leasing and property
37,365.79 38,094.79 49.00
Property Co., Ltd. management
21 / 180
Semi-annual Report for 2022
Financial lease service; transfer of financial lease assets;
fixed-income securities investment; acceptance of
lessees’ lease margin; absorption of time deposit with a
Zhejiang Chouzhou
term no shorter than three months from non-bank
Financial Lease Co., 26,000.00 46,169.00 26.00
shareholders; inter-financial institutional lending;
Ltd.
borrowing from financial institutions; overseas borrowing;
sale and disposal of leased items; and economic
consulting
Nantong Redbud
Huatong Equity
Equity investment; investment consulting; and investment
Investment 18,881.49 24,752.50 21.05
management
Partnership (limited
partnership)
Yiwu Huishang Micro-loans in Yiwu, and consulting services in connection
Micro-finance Co., with the development, management and finance for 12,420.00 8,388.54 23.00
Ltd. small-sized enterprises
Shenzhen Tiantu
Investment PE investment management in the consumer goods
11,438.62 4,003.52 1.536
Management Co., industry
Ltd.
Yiwu China
Commodities City
Equity investment, investment management and
Fuxing Investment 10,291.86 10,291.86 49.90
investment consulting
Center (limited
partnership)
Investment management, asset management (excluding
the assets subject to special state regulation such as
Yiwu Huishang state-owned assets) (the above business scope excludes
Redbud Phase II financial businesses such as securities and futures; and
Investment without approval of the industry regulatory authorities 10,000.00 10,667.13 9.43
Partnership (limited such as the finance regulatory authority, the Company
partnership) shall not be engaged in the absorption of deposits,
financial guarantee, agency wealth management,
fundraising (financing) from the public and other financial
Suzhou Xiangzhong businesses)
Venture Capital Venture capital (limited to investment in unlisted
10,000.00 10,761.35 17.17
Partnership (Limited enterprises); Equity investment
Partnership)
Industry investment, venture capital, investment
management, business management, social and
Jiaxing Zhehua economic consulting. (Operating activities subject to
Redbud Investment approval in accordance with laws shall only be conducted
8,152.97 11,562.84 17.51
Partnership (limited after approval from related authority) [it shall not be
partnership) engaged in the absorption of deposits, financial
guarantee, agency wealth management, fundraising
(financing) from the public and other financial businesses]
Jebel Ali Free Zone
Trader Market Lease and management of proprietary properties; and
9,299.65 7,601.60 30.00
Development and lease and management of the properties owned by others
Operation FZCO
Beijing Redbud
Huarong Equity Asset management, investment management and
6,171.78 13,846.69 12.36
Investment investment consulting
Partnership
Yiwu Rongshang Real estate development and operation, landscape
5,000.00 10,975.31 49.00
Property Co., Ltd. engineering and decoration engineering
Equity investment and related consulting services (without
approval of the industry regulatory authorities such as the
Yiwu Huishang
finance regulatory authority, the Company warrants that it
Redbud Equity 3,277.64 6,762.49 10.42
will not be engaged in the absorption of deposits, financial
Investment Co., Ltd.
guarantee, agency wealth management, fundraising
(financing) from the public and other financial businesses)
22 / 180
Semi-annual Report for 2022
Granting of personal consumption loans; acceptance of
deposits from shareholders’ domestic subsidiaries and
domestic shareholders; lending to domestic financial
Mashang Consumer institutions; issuance of financial bonds upon approval;
3,000.00 4,854.75 0.75
Finance Co., Ltd. inter-financial institution lending in China; consumption
finance-related consulting; agency sale of insurance
products related to consumption loans; and fixed-income
securities investment
Network information technology service; computer system
integration service; development and technical service of
computer hardware and software; wholesale, agency
purchase and agency sale of maternal and infant
products; online operation of electronic products and
Fujian Zongteng
components and accessories thereof, household supplies 3,000.00 11,151.71 0.5631
Network Co., Ltd.
and components and accessories thereof, and outdoor
goods and components and accessories thereof; market
research; business management consulting; enterprise
marketing planning; international freight forwarding; and
domestic trade agency service; and foreign trade
Food business; self-operated and agent for the import and
export of products and technologies other than those that
are uniformly organized or approved by the state, "three
forms of OEM and compensation trades" and processing
Oriental
of imported materials, development, production, and sales
International
of biological, pharmaceutical and chemical products, 2,768.54 2,603.05 0.39
Entrepreneurship
international freight forwarding agent, industrial and
Co., Ltd.
high-tech industry investment, counter trade, transit trade
and service trade, sales: clothing and apparel, shoes and
hats, knitwear, leather products, luggage and bags, daily
necessities; the second-category medical devices sales.
Yiwu Shanfeng
Investment Investment management, asset management and
2,600.00 2,388.19 56.40
Partnership (limited investment consulting
partnership)
Yiwu Meipinshu
Supply Chain Supply chain management service, software
2,570.14 2,690.74 22.11
Management Co., development, and business management consulting
Ltd.
Communication equipment repair; communication
equipment sales; communication equipment
manufacturing; computer and communication equipment
leasing; information technology equipment sales;
computer software and hardware and auxiliary equipment
wholesale; computer software and hardware and auxiliary
equipment retail; information consulting services
(excluding licensing information consulting services) ;
Yiwu Digital Port socio-economic consulting services; advertising design,
Technology Co., agency; advertising production; advertising publishing 2,550.00 2,458.81 51.00
Ltd. (excluding channels such as radio, television, newspaper
publishing units); technical services, technology
development, technology consulting, technology
exchange, technology transfer, technology promotion;
software development; sales of chemical product
(excluding licensed chemical products); business agent
services; general goods warehousing services (excluding
hazardous chemicals and other items that require license
approval)
Yiwu Guoshen Real estate development, sale and lease; real estate
Shangbo Property brokerage service, interior decoration service; and 2,000.00 3,819.20 49.00
Co., Ltd. landscaping service
Yiwu Shanyue
Equity investment; equity investment fund management,
Equity Investment
investment consulting, and operation and management of 2,000.00 1,689.66 39.60
Partnership (limited
state-owned assets
partnership)
23 / 180
Semi-annual Report for 2022
Real estate development and sale; lease of proprietary
Yiwu Chuangcheng
houses; real estate brokerage service; interior decoration 2,000.00 13,597.44 24.00
Property Co., Ltd.
service; and landscaping service
(1) Major equity investments
√Applicable □Not applicable
Percentage in
Actual
total equity in
investment
the invested
amount during
Invested target Main business project By the Remarks
the reporting
end of the
period
reporting
(RMB10,000)
period (%)
The subscribed
capital was AED
Jebel Ali Free Zone 50.40 million, and
Lease and management of proprietary
Trader Market as of the end of the
properties; and lease and management of 1,949.37 30.00
Development and reporting period,
the properties owned by others
Operation FZCO the actual capital
contributed was
AED 50.40 million
The subscribed
capital was RMB
Suzhou Xiangzhong 200 million, and as
Venture Capital Venture capital (limited to investment in of the end of the
6,000.00 17.17
Partnership (Limited unlisted enterprises); Equity investment reporting period,
Partnership) the actual capital
contributed was
RMB 100 million
(2) Major non-equity investments
√Applicable □Not applicable
Unit: RMB10,000
Investment
Accumulative
Project amount in
Item Progress invested
amount current
amount
period
The BD warehouse has been completed and put
into use, the main part of the north area of the
import market has been completed, 90% of the
The Yiwu
main project of the basement in the north and the
Comprehensive Bonded 624,250.00 55,936.22 196,857.57
south has been completed, the main part of the
Zone Project
north area of the processing park has been
completed, and 25% of the main part of the project
in the south area has been completed.
The concrete pouring and tamping of the 18th floor
Yiwu Digital Trade of the core tube has been completed, 80% of the
39,579.00 2,675.90 8,682.98
Industrial Park 12th floor slab has been laid, and 42% of the main
body has been completed.
(3) Financial assets measured with fair value
√Applicable □Not applicable
Unit: RMB10,000
24 / 180
Semi-annual Report for 2022
Gains or
Initial Opening Closing losses
Source of
Name investme book book during the Accounting item
funds
nt cost value value reporting
period
Guangdong Yangshan Union Held-for-trading Self-owne
0.31 - 0.31 -
Precision Manufacturing Co., Ltd. financial assets d funds
Held-for-trading Self-owne
Wealth management products 2,500.00 2,500.00 2,500.00 2.66
financial assets d funds
Oriental International Held-for-trading Self-owne
2,768.54 5,037.36 2,603.05 12.65
Entrepreneurship Co., Ltd. financial assets d funds
Other equity
55,362.5 64,218.8 53,808.3 Self-owne
Shenyin & Wanguo Securities Co., - instruments
4 0 3 d funds
Ltd. investment
Yiwu Shangfu Chuangzhi Investment 61,751.1 63,687.0 63,687.0 Other non-current Self-owne
-
Center (limited partnership) 4 4 4 financial assets d funds
Nantong Redbud Huatong Equity
18,881.4 25,871.0 24,752.5 Other non-current Self-owne
Investment Partnership (limited -
9 1 1 financial assets d funds
partnership)
Shenzhen Tiantu Investment 15,519.2 Other non-current Self-owne
4,788.21 4,003.52 -784.68
Management Co., Ltd. 1 financial assets d funds
Beijing Redbud Huarong Equity 13,846.6 13,846.6 Other non-current Self-owne
6,171.78
Investment Co., Ltd. 9 9 financial assets d funds
Jiaxing Zhehua Redbud Investment 11,562.8 11,562.8 Other non-current Self-owne
8,152.97 -
Partnership (limited partnership) 4 4 financial assets d funds
Suzhou Xiangzhong Venture Capital 10,000.0 10,761.3 Other non-current Self-owne
4,042.17 719.18
Partnership (Limited Partnership) 0 5 financial assets d funds
Beijing Yiyun Clean Technology Other non-current Self-owne
1,891.82 288.00 288.00 -
Venture Capital Co., Ltd. financial assets d funds
Suzhou Yiyun Venture Capital Center Other non-current Self-owne
637.91 2,957.37 2,968.25 10.87
(limited partnership) financial assets d funds
11,151.7 11,151.7 Other non-current Self-owne
Fujian Zongteng Network Co., Ltd. 3,000.00 -
1 1 financial assets d funds
Other non-current Self-owne
Mashang Consumer Finance Co., Ltd. 3,000.00 4,854.75 4,854.75 -
financial assets d funds
Yiwu Shanfeng Investment Other non-current Self-owne
2,600.00 2,388.19 2,388.19 -
Partnership (limited partnership) financial assets d funds
Yiwu Shanyue Equity Investment Other non-current Self-owne
2,000.00 1,689.66 1,689.66 -
Partnership (limited partnership) financial assets d funds
Beijing Wudaokou Education Other non-current Self-owne
500.00 59.38 59.38 -
Technology Co., Ltd. financial assets d funds
Yiwu Water Resources Development Other non-current Self-owne
200.00 1,860.00 1,860.00 -
Co., Ltd. financial assets d funds
Cheng Jian Bao (Beijing) Consulting Other non-current Self-owne
150.00 150.00 150.00 -
Services Co., Ltd. financial assets d funds
Other non-current Self-owne
Yiwu Smart Transport Co., Ltd. 120.00 120.00 120.00 -
financial assets d funds
Other non-current Self-owne
Zhejiang Yiwu Tap Water Co., Ltd. 207.29 3,064.89 3,064.89 -
financial assets d funds
Quanzhou Huayun Tiancheng Other non-current Self-owne
100.00 100.00 100.00 -
E-commerce Co., Ltd. financial assets d funds
(v) Major sales of assets and equity
□Applicable √Not applicable
(vi) Analysis of major subsidiaries and associates
√Applicable □Not applicable
Unit: RMB10,000
Registered Net
Company name Business Total assets Net assets
capital profits
25 / 180
Semi-annual Report for 2022
Enterprise's own capital
Yiwu China
investment, asset
Commodities City
management, investment 400,000.00 266,197.12 253,037.40 793.75
Financial Holdings
consulting services, investment
Co., Ltd.
management services
Industry investment, investment
management, property service,
Haicheng Yiwu market development and
China operation, market auxiliary
Commodities City service, real estate
60,000.00 210,431.24 -89,445.74 -3,459.65
Investment development, sale and lease,
Development Co., design, production and agency
Ltd. of domestic advertising, and
operation and management of
parking garages
Industry investment, investment
Zhejiang Huajie
management, investment
Investment and
consulting, business 50,000.00 9,095.08 9,087.20 -44.95
Development Co.,
information consulting, and
Ltd.
asset management services
Yiwu Shangbo
Yuncang
Enterprise management;
Enterprise 30,000.00 52,985.62 33,305.63 -1,093.67
property management, etc.
Management Co.,
Ltd.
Yiwu Commodities
Real estate development and
City Gonglian 20,000.00 15,977.18 15,799.73 -69.68
sale
Property Co., Ltd.
Yiwu China
Commodities City
R&D of computer and
Payment Network 15,000.00 11,962.29 11,956.70 -122.58
multimedia software
Technology Co.,
Ltd.
Yiwu China
Commodities City Domestic trade and
10,000.00 86,999.84 906.25 -1,488.13
Import and Export international trade
Co., Ltd.
Internet data services;
professional design services;
intelligent control system
Yiwu China
integration; computer
Commodities City 10,000.00 33,144.96 11,666.51 -557.87
information technology
Big Data Co., Ltd.
development, technical
consulting, technical services,
technology transfer, etc.
Yiwu China
Commodities City
Supply chain management
Supply Chain 10,000.00 18,060.49 5,312.80 -600.43
service
Management Co.,
Ltd.
Yiwu China
Commodities City
Overseas industry investment,
Overseas
and construction and operation 10,000.00 29,933.96 8,203.79 -257.52
Investment and
of overseas shopping malls
Development Co.,
Ltd.
Yiwu China Development of tourism
Commodities City resources and tourism projects; 10,000.00 14,299.57 8,600.73 -72.87
Tourism domestic tourism business,
26 / 180
Semi-annual Report for 2022
Development Co., inbound tourism business;
Ltd. tourism information consulting;
and wholesale of fruits,
vegetables, aquatic products
and primary edible agricultural
products
Computer software, multimedia
Zhejiang Yiwugou
technologies, computer
E-commerce Co., 10,000.00 12,801.32 9,814.58 668.17
network and application, and
Ltd.
wholesale & retail
Yiwu China
Commodities City
Ordinary cargo transport and
Logistics and 10,000.00 6,555.58 4,677.71 -489.58
goods warehousing
Warehousing Co.,
Ltd.
Property management;
low-temperature storage;
Yiwu
general goods warehousing
Comprehensive
services (excluding hazardous
Bonded Zone
chemicals and other items that 10,000.00 4,947.57 2,161.13 1,095.97
Operation and
require license approval);
Management Co.,
information consulting services;
Ltd.
warehousing equipment rental
services, etc.
Yiwu China
Commodities City
R&D of computer and
Information 5,000.00 8,010.30 5,234.69 -45.94
multimedia software
Technology Co.,
Ltd.
Yiwu China
Commodities City
Real estate development and
Property 500,000.00 1,425,287.57 596,824.04 25,513.10
sale
Development Co.,
Ltd.
Yiwu Hongyi Equity Investment management,
Investment Fund equity investment, asset
200,100.00 179,195.73 179,158.39 8,934.93
Partnership (limited management and investment
partnership) consulting
Yiwu Huishang
Redbud Phase II
Investment management and
Investment 106,100.00 132,480.00 127,033.45 35.39
asset management
Partnership (limited
partnership)
Zhejiang Chouzhou Financial lease service, and
Financial Lease transfer of financial lease 100,000.00 1,558,670.21 177,573.08 13,718.90
Co., Ltd. assets
Industry investment, investment
management, property service,
Yiwu Shanglv operation and management of
Investment parking garages, business
80,000.00 131,342.96 82,831.45 1,293.30
Development Co., marketing planning, operation
Ltd. and management consulting,
and operation and
management of shopping malls
Pujiang Lvgu Real estate development and
70,000.00 110,388.46 75,820.08 2,013.56
Property Co., Ltd. sale
Yiwu Huishang
Micro-finance Co., Micro loans 54,000.00 36,356.87 36,010.74 461.17
Ltd.
27 / 180
Semi-annual Report for 2022
Yiwu Huishang
Redbud Equity Equity investment and related
49,000.00 73,056.17 64,919.86 4,642.38
Investment Co., consulting services
Ltd.
Yiwu Rongshang Real estate development and
10,204.08 196,567.21 22,398.58 96,577.78
Property Co., Ltd. sale
Yiwu Chuangcheng Real estate development and
8,333.33 153,251.77 56,655.98 44,962.93
Property Co., Ltd. sale
Real estate development, sale
Yiwu Guoshen and lease; real estate
Shangbo Property brokerage service, interior 4,081.63 1,266,861.71 7,794.28 2,862.34
Co., Ltd. decoration service; and
landscaping service
Jebel Ali Free Zone Lease and management of
Trader Market proprietary properties; and AED
125,642.27 25,338.67 -2,523.91
Development and lease and management of the 16,800.00
Operation FZCO properties owned by others
(vii) Structured entities controlled by the Company
□Applicable √Not applicable
V. Other disclosure matters
(i) Potential risks
√Applicable □Not applicable
1. Market operation risk
Large-sized shopping malls, hypermarkets, warehouse stores and e-commerce platforms are
strong competitors in the commodities trading market. Large-sized shopping malls offer products of
reliable quality and well-known brands; hypermarkets or warehouse stores supply diversified
products at low prices; e-commerce platforms provide new trading means and facilitate consumers.
Purchasers or consumers may also choose to make procurement or consumption via e-commerce
platforms for convenience. Therefore, the Company may compete with other forms of business. In
addition, affected by the rising specialized market, robust development of the industry market and
rapid development of the central and western regions, the Company may also face competition from
other similar specialized markets.
2. Risk of insufficient reserve of talents
With the acceleration of market transformation and the expansion of the Company’s business,
and with the expansion of experienced international trade, warehousing and logistics, supply chain,
overseas development, information data, industrial investment, and business operations, the
Company may face the risk of insufficient reserves of professional talents and compound talents.
3. The risk of increasing external uncertainty
In the context of the normalization of pandemic prevention and control, the development of
global market trade is more complicated and severer than before. The global spread of the pandemic
28 / 180
Semi-annual Report for 2022
and reverse globalization are parallel, and the downward pressure on the world economy has
increased. New technologies have accelerated the birth of new opportunities, and new trade models
and new business formats have emerged. In the post-pandemic era, uncertainty will become the
greatest certainty for the development of market trade, and the global pandemic will continue for a
long time, showing a repeated see-saw state. Pandemic prevention and control, international politics,
and global economy are intertwined. Uncertainty, instability, and restructuring of international trade
will become the new normal. The Company may face the risk of increased external uncertainty.
(ii) Other disclosure matters
□Applicable √Not applicable
29 / 180
Semi-annual Report for 2022
Section IV. Corporate Governance
I. General meeting of shareholders
Designated
Date of
Session of website on which Resolution of the
Date disclosure of the
meeting the resolution is meeting
resolution
published
Resolution of the
first provisional See the
general meeting of Mar 10, 2022 www.sse.com.cn Mar 11, 2022 resolution notice
shareholders in for details
2022
2021 Annual See the
General Meeting April 13, 2022 www.sse.com.cn April 14, 2022 resolution notice
of Shareholders for details
The preferred shareholders whose voting rights had been resituated requested to an extraordinary
general meeting of shareholders
□Applicable √Not applicable
Statement on shareholders’ meetings
√Applicable □Not applicable
1. The 2022 First Provisional General Meeting of Shareholders deliberated and adopted the
“Proposal on By-election of Supervisors”.
The 2021 Annual General Meeting of Shareholders deliberated and adopted “2021 Board of
Directors Work Report”, “2021 Board of Supervisors Work Report”, “2021 Annual Report and
Summary”, “2021 Final Accounts Report”, “2022 Financial Budget Report”, and “2021 Profit
Distribution Plan”, “Proposal on the Proposed Issuance of Various Debt Financing Instruments in the
Coming 12 Months”.
II. Changes in directors, supervisors and senior officers of the Company
√Applicable □Not applicable
Name Title Change
HUANG Haiyang Vice general manager Hiring
LI Xiaobao Vice general manager Hiring
WU Xiubin Vice general manager Leaving office
WU Menghua Supervisor Election
WANG Gaiying Supervisor Leaving office
Statement on the changes in directors, supervisors and senior officers of the Company
□Applicable √Not applicable
30 / 180
Semi-annual Report for 2022
III. Plan for profit distribution or capital reserve into stock capital
Semi-annual proposals on profits distribution and capitalization of capital reserve
Whether to distribute profits or capitalize the
No
capital reserve
IV. Incentive stock option plans, employee stock ownership plans and other employee
incentives granted by the Company and the impact thereof
(i) Related equity incentive matters that have been disclosed in the provisional
announcement without progress or change in subsequent implementation
√Applicable □Not applicable
Overview of the matter Query website
On October 23, 2020, the twenty-third meeting of the eighth session
of the Company's board of directors passed the Proposal on the
Company's 2020 Restricted Equity Incentive Plan (Draft) and Its
Summary, Proposal on the Measures for the Evaluation and
Management of the Implementation of the Company's 2020 Restricted
Equity Incentive Plan, Proposal on Requesting the General Meeting of
Shareholders to Authorize the Board of Directors to Handle Issues For details, please
Related to Equity Incentives. The independent directors of the Company refer to the Company's
issued relevant independent opinions. announcement on the
On October 23, 2020, the sixth meeting of the eighth board of website of the Shanghai
supervisors of the Company deliberated and approved the Proposal on Stock Exchange
the Company's 2020 Restricted Equity Incentive Plan (Draft) and its (www.sse.com.cn) on
Summary, The Proposal on the Implementation Evaluation and October 24, 2020.
Management Measures for the Company's 2020 Restricted Equity
Incentive Plan, Proposal on Verification of the List of Incentive Objects of
the Company's 2020 Restricted Equity Incentive Plan. The board of
supervisors issued relevant verification opinions. Independent financial
consultants, lawyers and other intermediary agencies issued
corresponding opinions.
For details, please
On November 18, 2020, it received the Approval for Approving
refer to the Company's
Zhejiang China Commodities City Group Co., Ltd. to implement the 2020
announcement on the
restricted equity incentive plan issued by the State-owned Assets
website of the Shanghai
Supervision and Administration Office of the People's Government of
Stock Exchange
Yiwu City, forwarded by Yiwu China Commodities City Holdings Ltd.
(www.sse.com.cn) on
(Yiwu SASAOF〔2020〕51).
November 20, 2020.
From November 20, 2020 to November 29, 2020, the list of incentive For details, please
objects and positions of the 2020 restricted equity incentive plan were refer to the Company's
internally publicized. Within the time limit of the publicity, the board of announcement on the
supervisors of the Company did not receive any objection from any website of the Shanghai
31 / 180
Semi-annual Report for 2022
organization or individual or bad feedback, without feedback record. On Stock Exchange
November 30, 2020, the Board of Supervisors of the Company issued (www.sse.com.cn) on
the Examination Opinions and Public Statement of the Board of December 1, 2020.
Supervisors on the List of Incentive Objects of the Company's 2020
Restricted Equity Incentive Plan.
On December 10, 2020, the Company's 2020 Fifth Provisional
General Meeting of Shareholders deliberated and approved the
For details, please
“Proposal on the ‘Company's 2020 Restricted Equity Incentive Plan
refer to the Company's
(Draft)’ and Summary”, the “Proposal on the “Measures of Assessment
announcement on the
and Management of Implementation of ‘Company’s 2020 Restricted
website of the Shanghai
Equity Incentive Plan’”, and the “Proposal on Requesting the General
Stock Exchange
Meeting of Shareholders to Authorize the Board of Directors to Deal with
(www.sse.com.cn) on
Equity Incentive Related Matters”, and disclosed the “Self-examination
December 11, 2020.
Report on the Trades of Company’s Stocks by Insiders of Company’s
2020 Restricted Equity 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
For details, please
independent directors of the Company issued relevant independent
refer to the Company's
opinions.
announcement on the
On December 11, 2020, the seventh meeting of the Company's
website of the Shanghai
eighth board of supervisors passed the Proposal on Granting Restricted
Stock Exchange
Stocks to Incentive Objects for the First Time. The Board of Supervisors
(www.sse.com.cn) on
issued the Verification Opinions of the Board of Supervisors on Matters
December 12, 2020.
Related to the First Grant of the Company's 2020 Restricted Equity
Incentive Plan. Independent financial consultants, lawyers and other
intermediary agencies issued corresponding opinions.
For details, please
On January 15, 2021, the Company received the Securities Change refer to the Company's
Registration Certificate issued by the Shanghai Branch of China announcement on the
Securities Depository and Clearing Co., Ltd., and the Company website of the Shanghai
completed the registration of the first grant of restricted stocks to Stock Exchange
incentive objects. (www.sse.com.cn) on
January 19, 2021.
On August 9, 2021, the 35th meeting of the eighth board of directors For details, please
of the Company passed the "Proposal on Reserved Granting Restricted refer to the Company's
Stocks to Incentive Objects", "On Adjusting the Repurchase Price of announcement on the
Restricted Stocks and Repurchasing and Cancelling Some Restricted website of the Shanghai
32 / 180
Semi-annual Report for 2022
Stocks" 's proposal". The independent directors of the Company issued Stock Exchange
relevant independent opinions. (www.sse.com.cn) on
On August 9, 2021, the ninth meeting of the eighth Boarder of August 11, 2021.
Supervisors of the Company passed the "Proposal on Reserved
Granting Restricted Stocks to Incentive Objects", "Proposal on Adjusting
the Repurchase Price of Restricted Stocks and 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 Equity Incentive Plan
in 2020.
For details, see the
On November 4, 2021, the Company received the Securities Company's
Change Registration Certificate issued by the Shanghai Branch of China announcement on the
Securities Depository and Clearing Co., Ltd., and the Company website of the Shanghai
completed the registration of the reserved grant of restricted stocks to Stock Exchange
incentive objects. (www.sse.com.cn) on
November 6, 2021.
On November 17, 2021, the Company applied to China Securities
For details, see the
Depository and Clearing Co., Ltd. Shanghai Branch for repurchase and
Company's
cancellation of restricted stocks that have been granted but not yet lifted
announcement on the
by some resigned employees. On November 30, 2021, the Company
website of the Shanghai
received the "Securities Change Registration Certificate" issued by
Stock Exchange
China Securities Depository and Clearing Co., Ltd. Shanghai Branch,
(www.sse.com.cn) on
and the 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 For details, see the
the Company passed the "Proposal on Adjusting the Repurchase Price Company's
of Restricted Shares and Repurchasing and Cancelling Some Restricted announcement on the
Shares". The independent directors of the Company issued relevant website of the Shanghai
independent opinions. Stock Exchange
On July 19, 2022, the 14th meeting of the 8th Board of Supervisors (www.sse.com.cn) on
of the Company passed the "Proposal on Adjusting the Repurchase July 20, 2022.
Price of Restricted Shares and Repurchasing and Cancelling Some
Restricted Shares".
(ii) Incentives that have not been disclosed in the temporary announcements or had further
progresses
Incentive stock option
33 / 180
Semi-annual Report for 2022
□Applicable √Not applicable
Other statements
□Applicable √Not applicable
Employee stock ownership plans
□Applicable √Not applicable
Other incentives
□Applicable √Not applicable
34 / 180
Semi-annual Report for 2022
Section V. Environmental and Social Responsibilities
I. Environmental issues
(i) Description of the environmental protection status of the Company and its main
subsidiaries that are key pollutant discharging units announced by the environmental
protection authorities
□Applicable √Not applicable
(ii) Description of the environmental protection status of the companies other than the key
pollutant discharging units
□Applicable √Not applicable
(iii) Further progress or change of the environmental issues disclosed during the reporting
period
□Applicable √Not applicable
(iv) Relevant information that is conducive to protecting ecology, preventing pollution, and
fulfilling environmental responsibilities
□Applicable √Not applicable
(v) Measures taken to reduce their carbon emissions during the reporting period and the
effect
□Applicable √Not applicable
II. Status of consolidation and expansion of the results of poverty alleviation, rural
revitalization and other specific work
□Applicable √Not applicable
35 / 180
Semi-annual Report for 2022
Section VI. Significant Matters
I. Fulfilment of commitments
(i) Commitments made by the actual controller, shareholders, affiliates and acquirer of the
Company, the Company itself and other related parties during the reporting period or as
of the reporting period
□Applicable √Not applicable
II. Non-operating capital occupation by controlling shareholders and other related parties
during the reporting period
□Applicable √Not applicable
III. Illegal guarantees
□Applicable √Not applicable
IV. Information about audit on the semi-annual report
□Applicable √Not applicable
V. Changes and handling of matters involved in modified audit opinion in the previous
year’s annual report
□Applicable √Not applicable
VI. Matters relating to bankruptcy and reorganization
□Applicable √Not applicable
VII. Material litigations and arbitrations
√Applicable □Not applicable
(i) Litigations and arbitrations have been disclosed in the temporary announcements and
have had no further progresses
□Applicable √Not applicable
(ii) Litigations and arbitrations that have not been disclosed in the temporary
announcements or have had further progresses
√Applicable □ Not applicable
Unit: RMB10,000
During the reporting period:
Does the Results
Value litigation of
Basic Status
Party involve (arbitratio litigatio Enforce
Litigati informati of
Plaintiff Defendant Bearin d in n) cause n ment of
on or on of litigatio
(claimant (respondent g Joint litigatio estimated (arbitrat judgme
arbitrat litigation n
) ) Liabilit n liabilities ion) nt
ion (arbitrati (arbitrat
ies (arbitrat and the and (award)
on) ion)
ion) amount effect
thereof thereof
Zhejiang
No
Yiwu
Unfair hearing
The Chuanglian
Litigati Competi s have
Compan Market Nil 485 No / /
on tion not
y Investment
Dispute been
and
held
Manageme
36 / 180
Semi-annual Report for 2022
nt Co., Ltd.,
Hebei
Jiangcheng
Real Estate
Developme
nt Co., Ltd.,
Handan
Zheshang
Yiwu China
Commoditie
s Wholesale
City Co.,
Ltd.
Jiangsu
Zhonghaoji
ayuan
Holding
Group Co., Hearing
Ltd., Suqian s have
Yiwu been
Unfair
The Internationa held
Litigati Competi
Compan l Trade City Nil 512 No but no / /
on tion
y Market judgme
Dispute
Manageme nt has
nt Co., Ltd., been
Suqian made
Maike
Information
Technology
Co., Ltd.
Dispute
over No
Golden construc hearing
The
Curtain Wall Litigati tion s have
Compan Nil 900.35 No / /
Group Co., on project not
y
Ltd. construc been
tion held
contract
Second
Instance
Chongqing
of Unfair Hearing
Jingtou
Competi s have
Investment
tion been
Group Co.,
The Dispute held
Ltd., Litigati
Compan Nil and 512 No but no / /
Chongqing on
y Infringe judgme
Jingtou
ment of nt has
Wanyu Real
Tradem been
Estate Co.,
ark made
Ltd.
Exclusiv
e Right
Nanjing
Yiwu
China
Commod
ities City
Second No
Co., Ltd.,
Instance hearing
Nanjing
The Litigati of Unfair s have
Zheshan Nil 812 No / /
Company on Competi not
g
tion been
Investme
Dispute held
nt Co.,
Ltd.,
Nanjing
Xiezhon
g Group
37 / 180
Semi-annual Report for 2022
Real
Estate
Develop
ment
Co., Ltd.
Zhenjian
g
Hongda
Real
Estate
Co., Ltd.,
Second No
Zhenjian
Instance hearing
g
The Litigati of Unfair s have
Hongda Nil 812 No / /
Company on Competi not
Yiwu
tion been
Small
Dispute held
Commod
ity
Market
Manage
ment
Co., Ltd.
Bafang
Constructio
n Group Dispute
No
Co., Ltd., over
hearing
Sun the construc
Litigati s have
Lijun, Tu Company, Nil tion 546.98 No / /
on not
Lixin the first project
been
branch of subcontr
held
the act
Internationa
l Trade City
Shizuishan
Shengyuze
Asset
Ningxia Manageme Dispute
Shengho nt Co., Ltd., over No
ng Yiwu China construc hearing
Construc Commoditie Litigati tion s have
Nil 650.69 No / /
tion s City on project not
Engineer Supply construc been
ing Co., Chain tion held
Ltd. v. Manageme contract
nt Co., Ltd.,
the
Company
The Dispute
Company, over No
third party construc hearing
Ying Shenzhen Litigati tion s have
Nil 836.31 No / /
Jianhua Pengrun on project not
Constructio construc been
n Group tion held
Co., Ltd. contract
Xinyang
Wanjia
Lighting
Second No
Industry
Instance hearing
Co., Ltd.,
The Litigati of Unfair s have
Henan Nil 792 No / /
Company on Competi not
Zhongda
tion been
Commer
Dispute held
cial
Operatio
n
38 / 180
Semi-annual Report for 2022
Manage
ment
Co., Ltd.
(iii) Other statements
√Applicable □Not applicable
In March 2018, the Company and Shangcheng Trade Co., Ltd. (the Company’s former holding
subsidiary, present participating company, in which the Company holds 35.8% of shares) was sued
by Bank of China Co., Ltd. Yiwu Branch (hereinafter referred to as “Bank of China Yiwu Branch”) due
to a letter of credit dispute” to the Jinhua Intermediate People’s Court of Zhejiang Province
(hereinafter referred to as “Jinhua Intermediate Court”). For details, see the “Announcement on
Litigation Involved in the Company and Its Holding Subsidiaries" (Lin 2018-008) disclosed by the
Company on March 2, 2018. Later, the lawsuit was dismissed by Jinhua Intermediate Court.
On May 18, 2018, Bank of China Yiwu Branch transferred all the rights of the principal and
interest, compound interest, liquidated damages, compensation and other claims under the letter of
credit involved to China Cinda Asset Management Co., Ltd. Zhejiang Branch (hereinafter referred to
as "Cinda Assets").
On June 25, 2021, Cinda Assets again filed a civil lawsuit with the Jinhua Intermediate People's
Court on the dispute over the letter of credit. For details, see the “Announcement on the Progress of
Litigation Involved in the Company and its Subsidiaries” (Lin 2021-036) disclosed by the Company
on July 21, 2021.
No decision has been made as of the end of the reporting period.
VIII. Information of the listed company and its directors, supervisors, senior management,
controlling shareholder, and actual controller suspected of violations of laws and
regulations, penalties and rectification
□Applicable √Not applicable
IX. Credit standing of the Company and its controlling shareholder and actual controller
√Applicable □Not applicable
There was no outstanding court judgment or overdue debt of a large amount involving the
Company or its controlling shareholder or actual controller during the reporting period.
X. Material related-party transactions
(i) Related-party transactions relating to regular corporate operation
1. Matters that have been disclosed in the temporary announcements and had 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
Type of Contents Price of Amount of Percent Mark Reason
Related Settlem
Relations related-p of Pricing related-par related-par age in et s for
counterpa ent
hip arty related-pa principle ty ty the M/Pri the
rty method
transacti rty transaction transaction amount ce large
39 / 180
Semi-annual Report for 2022
on transactio of differen
n similar ce
transacti betwee
ons n the
(%) price of
the
transac
tion
and
referen
ce
market
price
Yiwu Controlli
Property
China ng
service
Commo subsidia Accept Acco
fee and
dities ries of ance of Market 72,002,6 72,002,6 unt
greenin 85.70
City controlli labor price 26.73 26.73 transf
g
Property ng service er
mainten
Service shareho
ance fee
Co., Ltd. lders
Pandem
Subsidi ic
aries of preventi
controlli on and
Yiwu Accept Acco
ng control
Security ance of Market 10,543,1 10,543,1 unt
shareho and 12.55
Service labor price 39.42 39.42 transf
lder exhibitio
Co., Ltd. service er
parent n
compan security
y service
fee
Controlli
ng
subsidia Acco
Office
ries of Lease Market 468,572. 468,572. unt
CCCP space 0.56
controlli out price 46 46 transf
rental
ng er
shareho
lders
Xingfuh
u
Internati
Branche
onal
s of the
Confere
controlli
nce Accept Acco
ng
Center, ance of Launder Market 438,145. 438,145. unt
shareho 0.52
subordin labor ing fees price 35 35 transf
lder
ated to service er
parent
Yiwu
compan
Market
y
Develop
ment
Group
Yiwu
China
Commo
dities
City Accept Acco
Creative Associat ance of Design Market 379,844. 379,844. unt
0.45
Design es labor fee price 66 66 transf
and service er
Develop
ment
Services
Co., Ltd.
40 / 180
Semi-annual Report for 2022
Xingfuh
u
Internati
Branche
onal
s of the Entruste
Confere
controlli d
nce Acco
ng manage Negoti
Center, Other 182,819. 182,819. unt
shareho ment ated 0.22
subordin inflows 84 84 transf
lder fees and price
ated to er
parent license
Yiwu
compan fees
Market
y
Develop
ment
Group
84,015,148
Total / / 100.00 / / /
.46
Return of large-value goods sales
Illustration on related-party transactions
(ii) Related transactions arising from asset acquisitions or equity acquisitions and sales
1. Matters that have been disclosed in the temporary announcements and had 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
4. If any agreement on the operating results is involved, the achievement of operating
results during the reporting period shall be disclosed
□Applicable √Not applicable
(iii) Related-party transactions arising from joint external investment
1. Matters that have been disclosed in the temporary announcements and had no further
progresses or changes
□Applicable √Not applicable
2. Matters that have been disclosed in the temporary announcements but had further
progresses or changes
□Applicable √Not applicable
3. Matters that have not been disclosed in the temporary announcements
□Applicable √Not applicable
(iv) Related-party credits and debts
1. Matters that have been disclosed in the temporary announcements and had no further
progresses or changes
□Applicable √Not applicable
2. Matters that have been disclosed in the temporary announcements but had further
progresses or changes
√Applicable □Not applicable
In order to meet the development needs of Handing Shangbo, a wholly-owned subsidiary of the
Company's subsidiary CCCP for the development of real estate project on the east side of the
intersection of Fotang Avenue and Shuangfeng Road, Fotang Town, Yiwu, the Company provided
41 / 180
Semi-annual Report for 2022
Handing Shangbo with a financial aid of no more than RMB 490 million. CCCH, the Company’s
controlling shareholder, will provide Handing Shangbo with the financial aid in the same proportion of
its indirect shareholding in Handing Shangbo. For details, please refer to the Announcement on
Providing External Financial Assistance and Related Party Transactions (Announcement Number:
L2020-098).
As of the end of the reporting period, the balance of financial assistance provided by the
Company was RMB 208 million, and the balance of financial assistance provided by CCCH was
RMB 216 million.
3. Matters that have not been disclosed in the temporary announcements
□Applicable √Not applicable
(v) Financial business between the Company and the associated financial companies, the
Company's holding financial company and the related parties
□Applicable √Not applicable
(vi) Other significant related transactions
□Applicable √Not applicable
(vii) Others
□Applicable √Not applicable
XI. Material contracts and performance thereof
1 Trusteeship, contracting and leases
□Applicable √Not applicable
42 / 180
Semi-annual Report for 2022
2 Material guarantees fulfilled or not completely fulfilled in the reporting period
√Applicable □Not applicable
Unit: RMB10,000
External guarantees provided by the Company (excluding those provided for the subsidiaries)
Relationsh
Date of Is the Overdue
ip between Guaran Guarant Is it a
the The guarantee Is the guarant amount related-p Related
Guarant Amount of tee ee Principal Collateral (if guarantee Counter
guarantor guarante (signing date Type of guarantee any) fulfilled in ee of the arty Relatio
or and the guarantee Starting Maturity debts guarantees guarante
ed of the full overdu guarante nship
Listed date date e
Company agreement) e e
SCO provided
The The Yiwu Dec Joint
Dec 16, Jul 1, Joint and several liability a
Comp Compa Shang 12,542.86 15, Normal No No - Yes ventu
ny itself 2015 2015 guarantee counter-guara
any lv 2026 re
ntee
Hangzh
ou Wholly-ow House
Joint and several liability
Shangb ned purchas 495.48 Normal No No - No
subsidiary er guarantee
o
Nanxing
Amount of guarantees made during the reporting period (excluding the
-2,825.07
guarantees provided for subsidiaries)
Balance of guarantees at the end of the reporting period (A) (excluding the
13,038.34
guarantees provided for subsidiaries)
Guarantees provided by the Company for its subsidiaries
Amount of guarantees provided for subsidiaries during the reporting period -
Balance of guarantees provided for subsidiaries at the end of the reporting
-
period (B)
Total guarantees provided by the Company (including those provided for the subsidiaries)
Total amount of guarantees (A+B) 13,038.34
Ratio of the total amount of guarantees to the Company’s net assets (%) 0.85
Among which:
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) 13,038.34
Statement on the joint and several liability that may be assumed due to
Nil
outstanding guarantees
43 / 180
Semi-annual Report for 2022
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 June 30, 2022,
Yiwu Shanglv actually borrowed RMB 255,976,751.57 from banks in total (December 31, 2021: RMB
296,505,577.63). According to the agreement of the guarantee contract, it assumed the guarantee liability of
RMB 125,428,608.27 (December 31, 2021: RMB 145,287,733.04) with the Agricultural Bank of China Yiwu
Statement on guarantees
Branch. SCO provided a counter-guarantee for this guarantee.
2. According to relevant regulations, before the purchaser of the commercial housing sold by the Group has
obtained the property certificate, the Group shall provide the purchaser with a bank mortgage guarantee. As of
June 30, 2022, the unsettled guarantee amount was RMB 4,954,833.62 (December 31, 2021: RMB
5,063,333.60). 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.
44 / 180
Semi-annual Report for 2022
3 Other material contracts
√Applicable □Not applicable
Contract price
No. Name of contract Contracting party
(RMB10,000)
The lot 2 of the first phase of the
Beijing Urban Construction
1 logistics warehousing project in the 86,711.78
Group Co., Ltd.
Comprehensive Bonded Zone
Yiwu Comprehensive Bonded Zone China Construction
2 New Import Market - North Zone Seventh Engineering 72,323.68
Engineering Contract Bureau Co., Ltd.
Yiwu Comprehensive Bonded Zone
Zhejiang Construction
3 New Import Market - South Zone 63,710.82
Engineering Group Co., Ltd.
Engineering Contract
Yiwu Comprehensive Bonded Zone
Yuanyang Construction
4 International Trade Digital Industry 40,498.09
Group Co., Ltd.
Project
XII. Other significant matters
□Applicable √Not applicable
45 / 180
Semi-annual Report for 2022
Section VII. Changes in Shares and Shareholders
I. Changes in equity
(i) Exhibition of changes in shares
1. Exhibition of changes in shares
During the reporting period, the total number of shares and capital stock structure of the Company
did not change.
□Applicable √Not applicable
2. Description of changes in shares
□Applicable √Not applicable
3. The impact of share changes on financial indicators such as earnings per share and net
assets per share during the period from the end of the reporting period to the disclosure
date of the semi-annual report (if any)
□Applicable √Not applicable
4. Other matters the Company deems it necessary to disclose or required by the securities
regulatory authority to be disclosed
□Applicable √Not applicable
(ii) Changes in non-tradable shares
□Applicable √Not applicable
II. Information of restricted shareholders
(i) Information of shareholders:
Total number of common shareholders as of the end of
171,362
the reporting period
46 / 180
Semi-annual Report for 2022
(ii) Shareholdings of the top 10 shareholders and top 10 holders of tradable shares (or
shareholders not subject to trading restrictions)
Unit: share
Shares held by top 10 shareholders
Number of Pledge, mark or
Change
shares held at Number of freezing Ownership
Shareholder during the Proportion
the end of the non-tradable of
(full name) reporting (%) Status of
reporting shares held Quantity shareholder
period shares
period
Yiwu China
Commodities State-owned
0 3,038,179,392 55.33 0 Nil 0
City Holdings legal person
Limited
Zhejiang
Provincial
State-owned
Finance 0 147,466,528 2.69 0 Nil 0
legal person
Development
Ltd.
Hong Kong
Securities
6,409,291 70,319,616 1.28 0 Unknown 0 Others
Clearing
Company Ltd.
Ping An Life
Insurance
Company of
China -
56,000,019 56,000,019 1.02 0 Unknown 0 Unknown
Unit-linked -
Individual
Unit-linked
Insurance
Dacheng Fund
－Agricultural
Bank of China
－Dacheng
China 0 27,672,800 0.50 0 Unknown 0 Unknown
Securities
Financial
Assets
Management
Scheme
GF Fund－
Agricultural
Bank of China
－GF China
Securities 0 27,672,800 0.50 0 Unknown 0 Unknown
Financial
Assets
Management
Scheme
47 / 180
Semi-annual Report for 2022
Southern Asset
Management－
Agricultural
Bank of China
－Southern
China 0 27,672,800 0.50 0 Unknown 0 Unknown
Securities
Financial
Assets
Management
Scheme
Zhong Ou AMC
－Agricultural
Bank of China
－Zhong Ou
China -4,378,100 23,294,700 0.42 0 Unknown 0 Unknown
Securities
Financial
Assets
Management
Scheme
E Fund－
Agricultural
Bank of China
－E Fund China
Securities -4,662,700 23,010,100 0.42 0 Unknown 0 Unknown
Financial
Assets
Management
Scheme
Domestic
Zhu Lina 2,002,800 20,406,003 0.37 0 Unknown 0 natural
person
Shares held by top 10 holders of tradable shares
Number of Type and quantity of shares
Shareholder tradable
Type Quantity
shares held
Yiwu China Commodities City RMB-denominated common
3,038,179,392 3,038,179,392
Holdings Limited share
Zhejiang Provincial Finance RMB-denominated common
147,466,528 147,466,528
Development Ltd. share
Hong Kong Securities Clearing RMB-denominated common
70,319,616 70,319,616
Company Ltd. share
Ping An Life Insurance
Company of China - Unit-linked RMB-denominated common
56,000,019 56,000,019
- Individual Unit-linked share
Insurance
Dacheng Fund－Agricultural
Bank of China－Dacheng RMB-denominated common
27,672,800 27,672,800
China Securities Financial share
Assets Management Scheme
GF Fund－Agricultural Bank of
China－GF China Securities RMB-denominated common
27,672,800 27,672,800
Financial Assets Management share
Scheme
48 / 180
Semi-annual Report for 2022
Southern Asset Management
－Agricultural Bank of China－
RMB-denominated common
Southern China Securities 27,672,800 27,672,800
share
Financial Assets Management
Scheme
Zhong Ou AMC－Agricultural
Bank of China－Zhong Ou RMB-denominated common
23,294,700 23,294,700
China Securities Financial share
Assets Management Scheme
E Fund－Agricultural Bank of
China－E Fund China RMB-denominated common
23,010,100 23,010,100
Securities Financial Assets share
Management Scheme
RMB-denominated common
Zhu Lina 20,406,003 20,406,003
share
Zhejiang Finance Development Co., Ltd. holds 9.44% of the shares of Yiwu
Explanation on the relationship or
State-owned Capital Operation Co., Ltd., the controlling shareholder of Yiwu
concerted action between the
China Commodities City Holding Limited, the controlling shareholder of Yiwu
above shareholders
Market Development Group Co., Ltd.
Explanation on the preferred
shareholders whose voting rights
Nil
had been restituted and the
quantity of shares held thereby
Number of shares held by the top 10 shareholders subject to trading restrictions and the trading
restriction conditions
□Applicable √Not applicable
(iii) Strategic investors or general legal persons became the top ten shareholders due to the
placement of new shares
□Applicable √Not applicable
III. Directors, supervisors and senior management
(i) Changes in shareholdings of present and resigned directors, supervisors and senior
management during the reporting period
□Applicable √Not applicable
Statement on other matters
□Applicable √Not applicable
(ii) The equity incentives granted to directors, supervisors and senior management during
the reporting period
□Applicable √Not applicable
(iii) Other statements
□Applicable √Not applicable
IV. Changes in controlling shareholder or actual controller
□Applicable √Not applicable
49 / 180
Semi-annual Report for 2022
Section VIII. Preferred Shares
□Applicable √Not applicable
50 / 180
Semi-annual Report for 2022
Section IX. Bonds
I. Corporate bonds, corporate bonds and non-financial corporate debt financing
instruments
√Applicable □Not applicable
(i) Corporate bonds
□Applicable √Not applicable
(ii) Corporate bonds
√Applicable □Not applicable
1. Basic information on corporate bonds
Unit: RMB 100 million
Whether
there is
Method of a risk of
Issu Outsta Inte
Val Matur principal terminat
Name of Abbreviat e nding rest Marketpl
Code ue ity repayment ing the
bond ion dat amoun rate ace
date date and interest transacti
e t (%)
payment on in the
stock
market
For the
principal
repayment
and interest
payment of
the bond,
the list of
Publicly
bondholders
offered
would be
corporate
made
bond
according to
2019 of Sep Sep Shangha
Sep the relevant
Zhejiang 19 YIWU 1557 26, 27, 3.9 i Stock
27, 7 provisions of No
China CCC 02 50 201 201 9 Exchang
2022 the bond
Commodi 9 9 e
registration
ties City
authority.
Group
The specific
Co., Ltd
matters shall
(Phase II)
be handled
according to
the relevant
provisions of
the bond
registration
authority.
The Company's measures to deal with the risk of bond termination
□Applicable √Not applicable
Bonds overdue
□Applicable √Not applicable
Explanation on overdue debts
□Applicable √Not applicable
51 / 180
Semi-annual Report for 2022
2. Issuer or investor option clause, investor protection clause trigger and enforcement
□Applicable √Not applicable
3. Adjustment in credit rating results
□Applicable √Not applicable
Other statements
Shanghai Brilliance Credit Rating & Investors Service Co., Ltd. issued the Credit Rating
Surveillance Report on Zhejiang China Commodities City Group Co., Ltd. and Bonds Publicly Issued
by It [Brilliance Surveillance (2022) 00023] on May 20, 2022. The Company had an issuer rating of
AAA with stable outlook, and the bonds had a rating of AAA.
4. The implementation, changes and impacts of guarantees, debt repayment plans and other
debt repayment protection measures during the reporting period and their impacts
□Applicable √Not applicable
Other statements
Nil
5. Other statement on corporate bonds
□Applicable √Not applicable
52 / 180
Semi-annual Report for 2022
(iii) Non-financial corporate debt financing instruments in the inter-bank bond market
√Applicable □Not applicable
1. Non-financial corporate debt financing instruments
Unit: RMB 100 million Currency: RMB
Method of Whether there is
Investor
Interest principal a risk of
Value Maturity Outstanding appropriate Trade
Name of bond Abbreviation Code Issue date rate repayment Marketplace terminating the
date date amount arrangements mechanism
(%) and interest transaction in the
(if any)
payment stock market
One-time
Zhejiang China
19 Zhejiang July 11, Jul repayment of
Commodities City Group Jul 15, Interbank
Yiwu CCC 0101900921 2019 to July 15, 10 3.99 principal and Nil No
Co., Ltd.’s 2019 MTN 2022 market
MTN001 12, 2019 2019 interest at
(Issue 1)
maturity.
One-time
Zhejiang China October 17,
19 Zhejiang Oct repayment of
Commodities City Group 2019 to Oct 21, Interbank
Yiwu CCC 0101901396 21, 10 3.97 principal and Nil No
Co., Ltd.’s 2019 MTN October 18, 2022 market
MTN002 2019 interest at
(Issue 2) 2019
maturity.
One-time
Zhejiang China
22 Zhejiang Feb 2, 2022 Feb repayment of
Commodities City Group Feb 24, Interbank
Yiwu CCC 0102280347 to Feb 23, 24, 10 3.29 principal and Nil No
Co., Ltd.’s 2022 MTN 2025 market
MTN001 2022 2022 interest at
(Issue 1)
maturity.
One-time
Zhejiang China
22 Zhejiang Mar 25, 2022 Mar repayment of
Commodities City Group Mar 29, Interbank
Yiwu CCC 0102280660 to Mar 28, 29, 5 3.57 principal and Nil No
Co., Ltd.’s 2022 MTN 2022 market
MTN002 2022 2022 interest at
(Issue 2)
maturity.
Zhejiang China One-time
Commodities City Group 21 Zhejiang Oct 25, 2021 Oct repayment of
Jul 22, Interbank
Co., Ltd.’s 2021 Super Yiwu CCC 012103893 to Oct 26, 27, 10 2.98 principal and Nil No
2022 market
Short-term Financing SCP008 2021 2021 interest at
Bonds (Issue 8) maturity.
Zhejiang China One-time
Commodities City Group 21 Zhejiang Nov11, 2021 Nov repayment of
Aug 12, Interbank
Co., Ltd.’s 2021 Super Yiwu CCC 012104113 to Nov 12, 15, 10 2.87 principal and Nil No
2022 market
Short-term Financing SCP009 2021 2021 interest at
Bonds (Issue 9) maturity.
53 / 180
Semi-annual Report for 2022
Zhejiang China One-time
Commodities City Group 21 Zhejiang Nov 26, Nov repayment of
Aug 26, Interbank
Co., Ltd.’s 2021 Super Yiwu CCC 012105209 2021 to Nov 30, 10 2.84 principal and Nil No
2022 market
Short-term Financing SCP010 29, 2021 2021 interest at
Bonds (Issue 10) maturity.
Zhejiang China One-time
Commodities City Group 22 Zhejiang Jun 27, 2022 Jun repayment of
Jul 29, Interbank
Co., Ltd.’s 2022 Super Yiwu CCC 012282279 to Jun 28, 29, 10 2.2 principal and Nil No
2022 market
Short-term Financing SCP001 2022 2022 interest at
Bonds (Issue 1) maturity.
The Company's measures to deal with the risk of bond termination
□Applicable √Not applicable
Bonds overdue
□Applicable √Not applicable
Explanation on overdue debts
□Applicable √Not applicable
54 / 180
Semi-annual Report for 2022
2. Issuer or investor option clause, investor protection clause trigger and enforcement
□Applicable √Not applicable
3. Adjustment in credit rating results
□Applicable √Not applicable
Other statements
Shanghai Brilliance Credit Rating & Investors Service Co., Ltd. issued the Credit Rating Surveillance
Report on Zhejiang China Commodities City Group Co., Ltd. and Bonds Publicly Issued by It
[Brilliance Surveillance (2022) 00023] on May 20, 2022. The Company had an issuer rating of AAA
with stable outlook, and the bonds had a rating of AAA.
4. The implementation, changes and impacts of guarantees, debt repayment plans and other
debt repayment protection measures during the reporting period and their impacts
□Applicable √Not applicable
Other statements
Nil
5. 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 end of the previous year.
□Applicable √Not applicable
(v) Main accounting data and financial indicators
√Applicable □Not applicable
Unit: RMB10,000
As of the Increase/decrease
end of the at the end of the
As of the end
Major indicator current reporting period Reasons for change
of 2021
reporting over the end of the
period previous year (%)
Current ratio 60.37% 58.91% 1.46
Quick ratio 46.98% 50.12% -3.14
Debt-to-asset ratio (%) 49.01 52.83 -3.82
Increase/decrease
Jan-Jun during the
2022 reporting period
Jan-Jun 2021 Reasons for change
over the same
period of the
previous year (%)
Net profit after deduction of Net profit increased by
118,171.58 80,498.09 46.80
non-recurring gains and losses RMB 375 million YoY
EBITDA to total debt ratio 0.20 0.23 -13.04
Interest coverage ratio EBIT increased by RMB
9.83 7.09 38.65
286 million YoY
Cash interest protection The net cash flow from
-1.93 5.32 -136.21
multiple operating activities shrank
55 / 180
Semi-annual Report for 2022
by RMB 833 million YoY
EBITDA-to-interest coverage
12.08 9.04 33.62
ratio
Loan repayment rate (%) 100 100 -
Interest payment rate (%) 100 100 -
II. Convertible corporate bonds
□Applicable √Not applicable
56 / 180
Semi-annual Report for 2022
Section X. Financial Report
I. Audit report
□Applicable √Not applicable
II. Financial statements
Consolidated Balance Sheet
June 30, 2022
Prepared by: Zhejiang China Commodities City Group Co., Ltd.
Unit: RMB
Item Note Closing balance Opening balance
Current assets:
Cash and cash equivalents 4,499,334,048.52 4,831,468,386.25
Held-for-trading financial assets 51,033,592.50 75,375,083.20
Accounts receivable 73,782,158.07 185,237,530.89
Prepayments 361,239,084.72 875,167,709.48
Other receivables 746,718,985.83 1,355,924,282.96
In which: interest receivable 3,107,715.32 92,249,275.44
Inventory 1,684,755,094.66 1,327,402,567.99
Other current assets 177,152,158.93 248,662,219.40
Total current assets 7,594,015,123.23 8,899,237,780.17
Non-current assets:
Long-term receivables 270,534,332.30 222,307,363.40
Long-term equity investment 5,773,958,377.25 5,772,455,242.84
Other equity instruments investment 538,083,278.52 642,187,968.77
Other non-current financial assets 1,573,087,817.52 1,524,819,255.41
Property investment 2,916,453,207.65 2,973,936,400.46
Fixed assets 4,862,726,129.51 5,078,590,929.75
Construction in progress 1,698,097,157.31 1,090,577,963.27
Right-of-use assets 211,258,055.82 225,347,077.14
Intangible assets 4,232,587,518.36 4,043,564,662.35
Development expenses 18,685,324.05 6,359,814.02
Long-term prepaid expenses 175,587,961.61 188,184,376.43
Deferred income tax assets 125,668,332.39 135,737,028.89
Other non-current assets 215,820,330.19 211,329,650.45
Total non-current assets 22,612,547,822.48 22,115,397,733.18
Total assets 30,206,562,945.71 31,014,635,513.35
Current liabilities:
Short-term borrowings 587,435,842.88 942,736,046.04
Accounts payable 293,544,737.63 493,360,429.02
Advances from customers 113,351,334.60 153,566,311.13
Contract liabilities 2,650,580,628.21 4,058,419,224.84
Payroll payable 164,527,450.31 243,964,755.38
57 / 180
Semi-annual Report for 2022
Tax payable 170,871,026.68 559,496,547.34
Other payables 1,326,087,294.15 1,908,742,835.15
Non-current liabilities due within one year 3,204,867,360.53 3,664,241,923.08
Other current liabilities 4,066,990,475.43 3,081,384,800.50
Total current liabilities 12,578,256,150.42 15,105,912,872.48
Non-current liabilities:
Long-term borrowings 204,500,000.00 771,250,000.00
Bonds payable 1,514,288,084.70 -
Lease liabilities 203,602,525.97 205,942,673.93
Estimated liabilities 110,620,306.10 110,620,306.10
Deferred income 104,292,866.78 78,170,103.62
Deferred income tax liabilities 89,666,983.34 111,897,463.42
Total non-current liabilities 2,226,970,766.89 1,277,880,547.07
Total liabilities 14,805,226,917.31 16,383,793,419.55
Owners’ equity (or shareholders’ equity)
Paid-in capital (share capital) 5,491,274,176.00 5,491,274,176.00
Capital reserve 1,647,923,697.45 1,631,509,114.96
Less: treasury stocks 137,494,800.00 137,494,800.00
Other comprehensive income -6,667,700.42 60,850,735.02
Surplus reserve 1,505,209,795.50 1,505,209,795.50
Undistributed profits 6,880,839,810.81 6,059,496,846.85
Total equity attributable to owners
15,381,084,979.34 14,610,845,868.33
(shareholders) of the parent company
Minority interest 20,251,049.06 19,996,225.47
Total owners’ equity (or shareholders’
15,401,336,028.40 14,630,842,093.80
equity)
Total liabilities and owners’ equity (or
30,206,562,945.71 31,014,635,513.35
shareholders’ equity)
Legal Representative: ZHAO Wenge, Head in charge of accounting: WANG Dong, Head of
Accounting Department: ZHAO Difang
58 / 180
Semi-annual Report for 2022
Balance Sheet of Parent Company
June 30, 2022
Prepared by: Zhejiang China Commodities City Group Co., Ltd.
Unit: RMB
Item Note Closing balance Opening balance
Current assets:
Cash and cash equivalents 4,045,621,633.06 4,327,117,133.34
Held-for-trading financial assets 3,080.00 1,484.70
Accounts receivable 25,424,746.34 23,629,682.69
Prepayments 14,153,905.05 11,213,809.02
Other receivables 653,433,594.64 1,207,086,885.99
In which: interest receivable 3,107,715.32 92,249,275.44
Inventory 5,000,843.85 7,308,939.20
Other current assets 3,565,923,715.25 3,282,706,248.36
Total current assets 8,309,561,518.19 8,859,064,183.30
Non-current assets:
Long-term receivables 41,669,604.79 41,668,837.64
Long-term equity investment 8,288,658,823.14 8,246,000,020.80
Other equity instruments investment 538,083,278.52 642,187,968.77
Other non-current financial assets 171,894,026.00 179,632,207.32
Property investment 2,873,773,394.30 2,533,374,736.14
Fixed assets 3,756,492,933.16 4,333,691,395.01
Construction in progress 1,538,628,671.27 936,297,029.41
Right-of-use assets 112,591,599.79 118,591,035.63
Intangible assets 3,887,514,197.64 3,878,208,204.47
Long-term prepaid expenses 156,364,077.85 165,720,500.56
Deferred income tax assets 112,083,303.88 122,565,730.38
Other non-current assets 67,395,000.00 65,607,343.55
Total non-current assets 21,545,148,910.34 21,263,545,009.68
Total assets 29,854,710,428.53 30,122,609,192.98
Current liabilities:
Short-term borrowings 587,435,842.88 942,736,046.04
Accounts payable 125,750,763.10 349,268,967.90
Advances from customers 83,269,401.44 104,805,243.57
Contract liabilities 1,927,881,713.96 3,029,673,931.75
Payroll payable 112,381,861.90 203,724,767.47
Tax payable 190,945,626.00 527,641,861.33
Other payables 1,035,183,717.62 1,596,947,195.91
Non-current liabilities due within one year 3,190,242,996.49 3,656,595,072.25
Other current liabilities 4,528,612,888.61 3,452,451,678.36
Total current liabilities 11,781,704,812.00 13,863,844,764.58
Non-current liabilities:
Long-term borrowings 204,500,000.00 771,250,000.00
59 / 180
Semi-annual Report for 2022
Bonds payable 1,514,288,084.70 -
Lease liabilities 117,673,614.09 113,367,062.05
Estimated liabilities 110,620,306.10 110,620,306.10
Deferred income 104,292,866.78 78,170,103.62
Deferred income tax liabilities 21,756,720.68 43,870,176.87
Total non-current liabilities 2,073,131,592.35 1,117,277,648.64
Total liabilities 13,854,836,404.35 14,981,122,413.22
Owners’ equity (or shareholders’ equity)
Paid-in capital (share capital) 5,491,274,176.00 5,491,274,176.00
Capital reserve 1,870,356,367.84 1,866,141,278.50
Less: treasury stocks 137,494,800.00 137,494,800.00
Other comprehensive income -11,656,614.36 66,421,903.33
Surplus reserve 1,505,156,319.67 1,505,156,319.67
Undistributed profits 7,282,238,575.03 6,349,987,902.26
Total owners’ equity (or shareholders’ 15,999,874,024.18 15,141,486,779.76
equity)
Total liabilities and owners’ equity (or 29,854,710,428.53 30,122,609,192.98
shareholders’ equity)
Legal Representative: ZHAO Wenge, Head in charge of accounting: WANG Dong, Head of
Accounting Department: ZHAO Difang
60 / 180
Semi-annual Report for 2022
Consolidated Income Statement
Jan-Jun 2022
Unit: RMB
Item Note Jan-Jun 2022 Jan-Jun 2021
I. Gross revenue 4,207,027,616.46 2,072,627,727.00
In which: operating revenue 4,207,027,616.46 2,072,627,727.00
II. Gross cost 3,611,063,999.15 1,286,710,176.88
In which: Operating cost 3,159,298,146.77 925,410,625.41
Taxes and surcharges 63,312,437.35 68,637,589.35
Sales expenses 93,282,063.73 74,042,931.03
Administrative expenses 226,571,368.27 166,698,886.58
R&D expenses 5,708,047.58 4,569,138.44
Financial expenses 62,891,935.45 47,351,006.07
In which: interest expenses 154,500,444.77 173,963,591.17
Interest income 89,271,567.84 117,153,799.20
Plus: other income 16,715,248.69 9,046,028.12
Investment income (loss is indicated by “-”) 750,723,439.63 263,831,792.50
In which: income from investment in 748,873,944.26 263,788,954.78
associates and joint ventures
Changes in fair value (loss is indicated by “-”) -2,213,593.53 1,128,592.10
Credit impairment loss (loss is indicated by 27,935.44 -429,274.88
“-”)
Income from disposal of assets (loss is 1,389.88 101,911.42
indicated by “-”)
III. Operating profit (loss is indicated by “-”) 1,361,218,037.42 1,059,596,599.38
Plus: income from non-operating activities 4,017,499.69 1,345,652.86
Less: expenses from non-operating activities 430,003.61 1,121,094.44
IV. Profits before tax (loss is indicated by “-”) 1,364,805,533.50 1,059,821,157.80
Less: income tax 142,279,469.17 212,576,766.64
V. Net profits (net loss is indicated by “-”) 1,222,526,064.33 847,244,391.16
(I) Categorized by continuity of operation
Net profits from continuing operation (net loss 1,222,526,064.33 847,244,391.16
is indicated by “-”)
(II) Categorized by ownership
Net profits attributable to shareholders of the
1,222,205,978.81 850,514,460.93
parent company (net loss is indicated by “-”)
Minority interest(net loss is indicated by “-”) 320,085.52 -3,270,069.77
VI. Other comprehensive income, net of tax -67,583,697.37 -57,171,933.87
(I) Other comprehensive income attributable to owners
-67,518,435.44 -57,153,335.28
of the parent company, net of tax
1. Other comprehensive income that cannot be
-78,078,517.69 -55,501,596.91
reclassified as profits or loss
(3) Changes in fair value of investments in other
-78,078,517.69 -55,501,596.91
equity instruments
2 . Other comprehensive income that will be
10,560,082.25 -1,651,738.37
reclassified as profits or loss
Other comprehensive income that can be
-78,548.99 -
transferred into profit and loss under equity method
(6) Difference arising from the translation of foreign
10,638,631.24 -1,651,738.37
currency financial statements
(2) After -tax net of other comprehensive income
-65,261.93 -18,598.59
attributable to minority shareholders
VII. Total comprehensive income 1,154,942,366.96 790,072,457.29
(I) Total comprehensive income attributable to
1,154,687,543.37 793,361,125.65
owners of the parent company
61 / 180
Semi-annual Report for 2022
(II) Total comprehensive income attributable to 254,823.59 -3,288,668.36
minority shareholders
VIII. Earnings per share:
(I) Basic earnings per share 0.22 0.16
(II) Diluted earnings per share 0.22 0.15
For merger of the enterprises under common control during the current period, net profits of the
merged party prior to the merger were RMB 0, and net profits of the merged party during the
previous period were RMB 0.
Legal Representative: ZHAO Wenge, Head in charge of accounting: WANG Dong, Head of
Accounting Department: ZHAO Difang
62 / 180
Semi-annual Report for 2022
Income Statement of Parent Company
Jan-Jun 2022
Unit: RMB
Item Note Jan-Jun 2022 Jan-Jun 2021
I. Operating revenue 1,436,820,545.38 1,588,046,245.78
Less: Operating cost 444,169,635.03 429,090,936.75
Taxes and surcharges 49,112,350.75 58,484,528.13
Sales expenses 39,499,869.87 47,108,501.28
Administrative expenses 99,654,988.83 90,199,678.31
Financial expenses 75,012,149.89 46,070,392.65
In which: interest expenses 154,500,444.77 173,963,591.17
Interest income 86,046,217.34 116,062,301.61
Plus: other income 6,672,653.40 6,818,726.38
Investment income (loss is indicated by “-”) 754,092,157.92 242,410,649.86
In which: income from investment in 753,179,755.40 242,367,812.14
associates and joint ventures
Changes in fair value (loss is indicated by -7,738,181.32 3,768,691.70
“-”)
Credit impairment loss (loss is indicated by -151,096.47 -472,652.89
“-”)
Income from disposal of assets (loss is 1,971,031.95 -
indicated by “-”)
II. Operating profits (loss is indicated by “-”) 1,484,218,116.49 1,169,617,623.71
Plus: income from non-operating activities 3,754,970.99 1,312,807.46
Less: expenses from non-operating activities 131,077.29 1,119,542.70
III. Profits before tax (loss is indicated by “-”) 1,487,842,010.19 1,169,810,888.47
Less: income tax 154,728,322.57 211,782,812.65
IV. Net profits (net loss is indicated by “-”) 1,333,113,687.62 958,028,075.82
(I) Categorized by continuity of operation(net 1,333,113,687.62 958,028,075.82
loss is indicated by “-”)
V. Other comprehensive income, net of tax -78,078,517.69 -55,501,596.91
(I) Other comprehensive income that cannot be -78,078,517.69 -55,501,596.91
reclassified as profit or loss
3. Changes in fair value of investments in -78,078,517.69 -55,501,596.91
other equity instruments
VI. Total comprehensive income 1,255,035,169.93 902,526,478.91
Legal Representative: Zhao Wenge Head in charge of accounting: Wang Dong Head of Accounting
Department: Zhao Difang
63 / 180
Semi-annual Report for 2022
Consolidated Cash Flow Statement
Jan-Jun 2022
Unit: RMB
Item Note Jan-Jun 2022 Jan-Jun 2021
I. Cash flow from operating activities:
Cash received from sale of goods and
3,817,631,052.46 2,103,613,100.95
rendering of services
Cash received for taxes and surcharges
224,460,979.51 31,958,670.65
refunded
Other cash receipts relating to operating
222,892,462.11 185,781,336.71
activities
Sub-total of cash inflow from operating
4,264,984,494.08 2,321,353,108.31
activities
Cash paid for goods and services 3,653,727,304.04 1,072,180,983.15
Cash paid to and on behalf of employees 325,183,213.92 321,909,809.23
Payments of taxes 605,322,164.89 585,534,877.66
Other cash payments relating to operating
347,339,144.85 174,991,613.52
activities
Sub-total of cash outflow from operating
4,931,571,827.70 2,154,617,283.56
activities
Net cash flow from operating activities -666,587,333.62 166,735,824.75
II. Cash flow from investing activities:
Cash received from recovery of investment 2,838,060,000.34 5,052,210,999.83
Cash received from investment income 118,704,141.34 103,616,646.00
Net cash received from disposal of property,
plant and equipment, intangible assets and 355,650.91 43,092,520.72
other long-term assets
Other cash receipts relating to investing
901,774,483.00 1,326,599,831.00
activities
Sub-total of cash inflow from investing
3,858,894,275.59 6,525,519,997.55
activities
Cash paid to acquire and construct fixed
assets, intangible assets and other long-term 1,180,574,429.74 1,064,887,215.22
assets
Cash paid to acquire investments 3,082,074,693.64 3,945,813,863.27
Other cash paid related to investing activities 68,507,285.00 1,550,981,005.00
Sub-total of cash outflow from investing
4,331,156,408.38 6,561,682,083.49
activities
Net cash flow from investing activities -472,262,132.79 -36,162,085.94
III. Cash flow from financing activities:
Cash received for investment taking - 6,000,000.00
Including: cash received by subsidiaries from
- 6,000,000.00
absorbing minority shareholders' investment
Cash received from borrowings 2,275,250,000.00 1,422,000,000.00
Cash received from bond issuance 2,500,000,000.00 5,000,000,000.00
Sub-total of cash inflow from financing
4,775,250,000.00 6,428,000,000.00
activities
Cash paid for debts repayment 3,700,000,000.00 6,232,000,000.00
Cash paid for distribution of dividends or
459,508,761.85 400,351,190.76
profits or payment of interest
Other cash paid related to financing activities 11,970,676.79 -
Sub-total of cash outflow from financing
4,171,479,438.64 6,632,351,190.76
activities
64 / 180
Semi-annual Report for 2022
Net cash flow from financing activities 603,770,561.36 -204,351,190.76
IV. Effect of foreign exchange rate changes on
2,944,567.22 769,966.77
cash and cash equivalents
V. Net increase in cash and cash equivalents -532,134,337.83 -73,007,485.18
Plus: opening balance of cash and cash
4,006,468,325.47 2,032,642,871.63
equivalents
VI. Closing balance of cash and cash
3,474,333,987.64 1,959,635,386.45
equivalents
Legal Representative: ZHAO Wenge, Head in charge of accounting: WANG Dong, Head of
Accounting Department: ZHAO Difang
65 / 180
Semi-annual Report for 2022
Cash Flow Statement of Parent Company
Jan-Jun 2022
Unit: RMB
Item Note Jan-Jun 2022 Jan-Jun 2021
I. Cash flow from operating activities:
Cash received from sale of goods and
358,669,144.91 1,118,280,046.33
rendering of services
Cash received for taxes and surcharges
168,188,111.96 23,527,341.26
refunded
Other cash receipts relating to operating
97,589,662.20 1,789,613,350.06
activities
Sub-total of cash inflow from operating
624,446,919.07 2,931,420,737.65
activities
Cash paid for goods and services 166,099,659.04 154,026,249.28
Cash paid to and on behalf of employees 203,530,312.37 222,414,525.26
Payments of taxes 537,128,931.09 492,951,916.52
Other cash payments relating to operating
251,492,294.32 1,990,862,090.20
activities
Sub-total of cash outflow from operating
1,158,251,196.82 2,860,254,781.26
activities
Net cash flow from operating activities -533,804,277.75 71,165,956.39
II. Cash flow from investing activities:
Cash received from recovery of investment 5,314,515,684.34 5,052,210,999.83
Cash received from investment income 107,024,942.32 99,366,646.00
Net cash received from disposal of property,
plant and equipment, intangible assets and 329,836.53 42,716,005.31
other long-term assets
Net cash received from disposal of
9,380,000.00 -
subsidiaries and other business units
Other cash receipts relating to investing
886,118,683.00 1,326,599,831.00
activities
Sub-total of cash inflow from investing
6,317,369,146.19 6,520,893,482.14
activities
Cash paid to acquire and construct fixed
assets, intangible assets and other long-term 989,899,828.33 970,900,182.64
assets
Cash paid to acquire investments 5,864,167,378.64 3,985,050,918.27
Other cash paid related to investing activities 26,734,400.00 1,492,745,800.00
Sub-total of cash outflow from investing
6,880,801,606.97 6,448,696,900.91
activities
Net cash flow from investing activities -563,432,460.78 72,196,581.23
III. Cash flow from financing activities:
Cash received from borrowings 2,275,250,000.00 1,422,000,000.00
Cash received from bond issuance 2,500,000,000.00 5,000,000,000.00
Sub-total of cash inflow from financing
4,775,250,000.00 6,422,000,000.00
activities
Cash paid for debts repayment 3,700,000,000.00 6,232,000,000.00
Cash paid for distribution of dividends or
459,508,761.85 400,351,190.76
profits or payment of interest
Sub-total of cash outflow from financing
4,159,508,761.85 6,632,351,190.76
activities
Net cash flow from financing activities 615,741,238.15 -210,351,190.76
IV. Effect of foreign exchange rate changes on - -
66 / 180
Semi-annual Report for 2022
cash and cash equivalents
V. Net increase in cash and cash equivalents -481,495,500.38 -66,988,653.14
Plus: opening balance of cash and cash
3,527,117,072.56 1,885,867,436.92
equivalents
VI. Closing balance of cash and cash
3,045,621,572.18 1,818,878,783.78
equivalents
Legal Representative: ZHAO Wenge, Head in charge of accounting: WANG Dong, Head of
Accounting Department: ZHAO Difang
67 / 180
Semi-annual Report for 2022
Statement of Changes in Consolidated Owners’ Equity
Jan-Jun 2022
Unit: RMB
Jan-Jun 2022
Equity attributable to owners of the parent company
Item
Minority Total owners’
Other interest equity
Paid-in capital Less: treasury Undistributed
Capital reserve comprehensive Surplus reserve Sub-total
(share capital) stocks profits
income
I. Closing
balance of the
same reporting 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
period of
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. Change in
current period
(decrease is - 16,414,582.49 - -67,518,435.44 - 821,342,963.96 770,239,111.01 254,823.59 770,493,934.60
indicated by
“-”)
(I) Total
comprehensive - - - -67,518,435.44 - 1,222,205,978.81 1,154,687,543.37 254,823.59 1,154,942,366.96
income
(II)Owners’
contribution to
- 16,414,582.49 - - - - 16,414,582.49 - 16,414,582.49
and reduction
in capital
3. Amount of
share-based
- 16,414,582.49 - - - - 16,414,582.49 - 16,414,582.49
payment into
owner’s equity
(III) Profits
- - - - - -400,863,014.85 -400,863,014.85 - -400,863,014.85
distribution
3．Distribution
to owners (or - - - - - -400,863,014.85 -400,863,014.85 - -400,863,014.85
shareholders)
68 / 180
Semi-annual Report for 2022
IV. Closing
balance of the 5,491,274,176.00 1,647,923,697.45 137,494,800.00 -6,667,700.42 1,505,209,795.50 6,880,839,810.81 15,381,084,979.34 20,251,049.06 15,401,336,028.40
current period
Jan-Jun 2021
Equity attributable to owners of the parent company
Item
Minority Total owners’
Other interest equity
Paid-in capital Less: treasury Undistributed
Capital reserve comprehensive Surplus reserve Sub-total
(share capital) stocks profits
income
I. Closing
balance of the
same reporting 5,489,914,176.00 1,594,906,524.67 137,298,000.00 78,149,661.33 1,364,257,808.58 5,168,298,206.50 13,558,228,377.08 16,481,000.16 13,574,709,377.24
period of
previous year
II. Opening
balance of the 5,489,914,176.00 1,594,906,524.67 137,298,000.00 78,149,661.33 1,364,257,808.58 5,168,298,206.50 13,558,228,377.08 16,481,000.16 13,574,709,377.24
current year
III. Change in
current period
(decrease is - 17,010,813.12 - -57,153,335.28 - 548,569,181.25 508,426,659.09 2,864,473.65 511,291,132.74
indicated by
“-”)
(I) Total
comprehensive - - - -57,153,335.28 - 850,514,460.93 793,361,125.65 -3,288,668.36 790,072,457.29
income
(II)Owners’
contribution to
- 17,010,813.12 - - - - 17,010,813.12 6,153,142.01 23,163,955.13
and reduction
in capital
1．Common
shares
- - - - - - - 6,000,000.00 6,000,000.00
contributed by
owners
3. Amount of - 17,010,813.12 - - - - 17,010,813.12 153,142.01 17,163,955.13
69 / 180
Semi-annual Report for 2022
share-based
payment into
owner’s equity
(III) Profits
- - - - - -301,945,279.68 -301,945,279.68 - -301,945,279.68
distribution
3．Distribution
to owners (or - - - - - -301,945,279.68 -301,945,279.68 - -301,945,279.68
shareholders)
IV. Closing
balance of the 5,489,914,176.00 1,611,917,337.79 137,298,000.00 20,996,326.05 1,364,257,808.58 5,716,867,387.75 14,066,655,036.17 19,345,473.81 14,086,000,509.98
current period
Legal Representative: ZHAO Wenge, Head in charge of accounting: WANG Dong, Head of Accounting Department: ZHAO Difang
70 / 180
Semi-annual Report for 2022
Statement of Changes in Owners’ Equity of Parent Company
Jan-Jun 2022
Unit: RMB
Jan-Jun 2022
Item Other
Paid-in capital Less: treasury Undistributed Total owners’
Capital reserve comprehensive Surplus reserve
(share capital) stocks profits equity
income
I. Closing balance of the same reporting period
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
of previous year
II. Opening balance of the current year 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
III. Change in current period (decrease is
- 4,215,089.34 - -78,078,517.69 - 932,250,672.77 858,387,244.42
indicated by “-”)
(I) Total comprehensive income - - - -78,078,517.69 - 1,333,113,687.62 1,255,035,169.93
(II)Owners’ contribution to and reduction in
- 4,215,089.34 - - - - 4,215,089.34
capital
3. Amount of share-based payment into
- 4,215,089.34 - - - - 4,215,089.34
owner’s equity
(III) Profits distribution - - - - - -400,863,014.85 -400,863,014.85
2. Distribution to owner (or shareholders) - - - - - -400,863,014.85 -400,863,014.85
IV. Closing balance of the current period 5,491,274,176.00 1,870,356,367.84 137,494,800.00 -11,656,614.36 1,505,156,319.67 7,282,238,575.03 15,999,874,024.18
Jan-Jun 2021
Other
Item Paid-in capital Less: treasury Undistributed Total owners’
Capital reserve comprehensive Surplus reserve
(share capital) stocks profits equity
income
I. Closing balance of the same reporting period 5,489,914,176.00 1,833,256,515.22 137,298,000.00 81,473,183.84 1,364,204,332.75 5,383,365,299.69 14,014,915,507.50
of previous year
II. Opening balance of the current year 5,489,914,176.00 1,833,256,515.22 137,298,000.00 81,473,183.84 1,364,204,332.75 5,383,365,299.69 14,014,915,507.50
III. Change in current period (decrease is - 10,920,930.43 - -55,501,596.91 - 656,082,796.14 611,502,129.66
indicated by “-”)
(I) Total comprehensive income - - - -55,501,596.91 - 958,028,075.82 902,526,478.91
(II)Owners’ contribution to and reduction in - 10,920,930.43 - - - - 10,920,930.43
capital
3. Amount of share-based payment into - 10,920,930.43 - - - - 10,920,930.43
owner’s equity
71 / 180
Semi-annual Report for 2022
(III) Profits distribution - - - - - -301,945,279.68 -301,945,279.68
2. Distribution to owner (or shareholders) - - - - - -301,945,279.68 -301,945,279.68
IV. Closing balance of the current period 5,489,914,176.00 1,844,177,445.65 137,298,000.00 25,971,586.93 1,364,204,332.75 6,039,448,095.83 14,626,417,637.16
Legal Representative: ZHAO Wenge, Head in charge of accounting: WANG Dong, Head of Accounting Department: ZHAO Difang
72 / 180
Semi-annual Report for 2022
III. Basic information of the Company
1. Company profile
√Applicable □Not applicable
Zhejiang China Commodities City Group Co., Ltd. (the “Company”) is a company limited by
share and was incorporated on Dec 28, 1993 in Zhejiang province of the People’s Republic of China.
The RMB-denominated common A shares issued by the Company got listed on Shanghai Stock
Exchange on May 9, 2002. The Company is headquartered at No.105 Futian Road, Yiwu, Zhejiang.
The Group’s main business activities: market development and operation and supporting
services, 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.
2. Consolidation scope of financial statements
√Applicable □Not applicable
The consolidation of financial statements is determined on the basis of control. For the changes
in the reporting period, please refer to Note VIII. Changes in consolidation scope.
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”).
The financial statements were all prepared based on the valuation principle of historical cost,
except for certain financial instruments. In case of assets impairment, corresponding impairment
provision was made in accordance with relevant provisions.
2. Going concern
√Applicable □Not applicable
The Company prepared its financial statements on a going-concern basis. The management of
the Company expected that the Group would generate adequate cash inflow from the future
day-to-day operation, which in combination with the Group’s adequate lines of credit from banks
could be sufficient to repay its due debts.
V. Important Accounting Policies and Accounting Estimates
Reminders on specific accounting policies and accounting estimates:
√Applicable □Not applicable
The Group has formulated specific accounting policies and accounting estimates based on the
characteristics of actual production and operation, which are mainly reflected in the bad debt
provisions for receivables, inventory valuation methods, depreciation of fixed assets, amortization of
intangible assets, income recognition and measurement, recognition of property investments and
fixed assets, and service life and residual value of fixed assets.
1. Statement of compliance with the Accounting Standards
The financial statements prepared by the Company comply with the requirements of the
Accounting Standards, and truly and completely reflect the Company’s financial conditions,
operating results, changes in shareholders’ equity, cash flows and other related information.
√Applicable □Not applicable
2. Accounting period
The Company’s accounting year is from Jan 1 to Dec 31 of each calendar year.
73 / 180
Semi-annual Report for 2022
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 Group uses RMB as its functional currency
and in the preparation of financial statements. Unless specifically stated, all amounts are expressed
in RMB.
5. 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
Merger of the enterprises under common control refers to the merger of the enterprises that are
under ultimate control of the same party or parties before and after the merger and the control is not
temporary. For a merger of the enterprises under common control, the party obtaining control over
the other(s) involved in the merger on the date of merger is the merging party and the other(s) is(are)
the merged party. The date of merger refers to the date when the merging party actually obtains
control over the merged party.
The assets and liabilities acquired by the merging party in a merger of the enterprises under
common control (including the goodwill formed through the acquisition of the merged party by the
ultimate controller) are accounted according to the book value thereof in the ultimate controller’s
financial statements on the date of merger. For the difference between the book value of the net
assets obtained by the merging party and the book value of the consideration paid for the merger (or
the total nominal value of the shares issued), the share capital premium in the capital reserve shall
be adjusted; if the share capital premium is not sufficient to absorb the difference, the retained
earnings shall be adjusted.
Mergers of the enterprises not under common control
Merger of the enterprises not under common control refers to the merger of the enterprises that
are not under ultimate control of the same party or parties before and after the merger. For a merger
of the enterprises not under common control, the party obtaining control over the other(s) involved in
the merger on the date of acquisition is the acquirer and the other(s) is(are) the acquiree. The date of
acquisition refers to the date when the acquirer actually obtains control over the acquiree.
The acquiree’s identifiable assets, liabilities and contingent liabilities obtained from the merger
of the enterprises not under common control are measured at their fair values on the date of
acquisition.
If the sum of the fair value of the consideration paid for the merger (or fair value of the equity
securities issued) and the fair value of the acquiree’s equity held before the date of acquisition is
higher than the share in the fair value of the acquiree’s identifiable net assets acquired from the
merger, the difference between them is recognized as goodwill, which will be subsequently
measured by the cost less accumulated impairment loss. If the sum of the fair value of the
consideration paid for the merger (or fair value of the equity securities issued) and the fair value of
the acquiree’s equity held before the date of acquisition is lower than the share in the fair value of the
acquiree’s identifiable net assets acquired from the merger, the measurement of the fair value of the
acquiree’s identifiable assets, liabilities and contingent liabilities, the fair value of the consideration
paid for the merger (or fair value of the equity securities issued) and the fair value of the acquiree’s
equity held before the date of acquisition will be reviewed, and if the sum of the fair value of the
consideration paid for the merger (or fair value of the equity securities issued) and the fair value of
the acquiree’s equity held before the date of acquisition is still lower than the share in the fair value of
the acquiree’s identifiable net assets acquired from the merger after such review, the difference will
be recognized in the profit or loss for the current period.
For mergers of the enterprises not under common control that are executed through multiple
transactions, the long-term equity investment of the acquiree before the date of acquisition shall be
re-measured based on the fair value thereof on the date of acquisition and any difference between
74 / 180
Semi-annual Report for 2022
the fair value and book value thereof shall be recognized in the profit or loss for the current period;
other comprehensive income from the long-term equity investment of the acquiree before the date of
acquisition under the equity method shall be accounted on the same basis as that for the direct
disposal of related assets or liabilities by the investee, and other changes in shareholders’ equity
than net gains or losses, other comprehensive income and profit distribution shall be recognized in
the profit or loss for the period where the date of acquisition falls.
6. Preparation method of consolidated financial statements
√Applicable □Not applicable
The financial statements to be consolidated is determined on the basis of control, including
those of the Company and all of its subsidiaries. Subsidiaries refer to the entities controlled by the
Company (including the severable parts of enterprises and invested entities, and the structured
entities controlled by the Company).
In the preparation of consolidated financial statements, the subsidiaries adopt the same
accounting year and accounting policies as those adopted by the Company. Assets, liabilities, equity,
income, expenses and cash flows generated from all deals between companies within the Group are
fully offset at the time of merger.
If the amount of loss for the current period attributable to the minority shareholders of a
subsidiary exceeds the minority shareholders’ share in the opening balance of shareholders’ equity
in the subsidiary, the excess will still be recognized against minority interest.
For a subsidiary acquired through a business merger not under the same control, the operating
results and cash flows of the acquiree will be included in the consolidated financial statements from
the day when the Group acquires control, until the control of the Group ceases. In the preparation of
consolidated financial statements, adjustments will be made to the financial statements of the
subsidiary based on the fair value of its identifiable assets, liabilities or contingent liabilities
determined on the date of acquisition.
For a subsidiary acquired through a business merger under the same control, the operating
results and cash flows of merged party will be included in the consolidated financial statements since
the beginning of the current period of the merger. In the preparation of consolidated financial
statements, adjustments will be made to the related items in its previous financial statements as if
the reporting entity formed after the merger has been existing as from the ultimate controller starts to
exercise control.
In case of any change to one or more elements of the control due to the changes in related facts
and circumstances, the Group will re-evaluate whether to control the investee.
7. Classification of joint arrangements and accounting treatment of joint operations
√Applicable □Not applicable
Joint arrangements are divided into joint operations and joint ventures. Joint operation refers to
a joint arrangement in which the parties thereto enjoy the assets relating to such arrangement and
assume the liabilities relating to such arrangement. Joint venture refers to a joint arrangement in
which the parties thereto only enjoy rights to the net assets in this arrangement.
Each party to a joint arrangement recognizes the following items relating to its share in the joint
operation: assets held individually by it and assets held jointly based on its share; liabilities assumed
individually by it and liabilities assumed jointly based on its share; revenue from the sale of its share
in the output of the joint operation; revenue from the sale of the output of the joint operation based on
its share; expenses incurred individually by it and expenses incurred by the joint operation based on
its share.
8. 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.
9. Foreign currency transactions and translation of foreign currency financial statements
√Applicable □Not applicable
75 / 180
Semi-annual Report for 2022
For foreign currency transactions, the Group will translate the foreign currency amounts into its
functional currency amounts.
In the initial recognition of a foreign currency transaction, the foreign currency amount is
translated to a functional currency amount according to the spot exchange rate on the date of
transaction. On the balance sheet date, the foreign currency monetary items are translated
according to the spot exchange rate on the balance sheet date. The translation difference between
settlement and monetary items is recognized in the profit or loss for the current period, except for the
difference arising from the special foreign currency borrowing relating to the acquisition and
construction of the assets qualified for capitalization, which will be treated based on the principles for
the capitalization of borrowing expenses. The foreign currency non-monetary items measured by
historical cost are also translated according to the spot exchange rate on the date of transaction,
without changing the functional currency amounts thereof. The foreign currency non-monetary items
measured by fair value are translated according to the spot exchange rate on the fair value
determination date and the difference arising therefrom is recognized in the profit or loss or other
comprehensive income for the current period based on the nature of the items.
The Group translates the functional currency of its foreign business into RMB while preparing
the financial statements. The assets and liabilities items in the balance sheet are translated
according to the spot exchange rate on the balance sheet date, the shareholders’ equity items are
translated according to the spot exchange rate at the occurrence of the items except for
“undistributed profits”; revenue and expenses items in the income statement are translated
according to the average exchange rate during the period in which the transaction happens. The
translation differences of foreign currency statements arising from the above translations are
recognized as other comprehensive income. For the disposal of foreign business, other
comprehensive income relating to the foreign business is recognized in the profit or loss of the
disposal for the current period and is calculated pro rata for partial disposal.
The foreign currency cash flow and cash flow of foreign subsidiaries are translated according to
the spot exchange rate on the occurrence date of cash flow/average exchange rate during the period
in which the cash flow occurs. The amount of impact of the changes in exchange rate on cash is
separately stated in the cash flow statement as an adjustment item.
10. Financial instruments
√Applicable □Not applicable
Financial instruments refer to the contracts which form financial assets of an enterprise and
form financial liabilities or equity instruments of other entities.
Recognition and de-recognition of financial instruments
The Group recognizes a financial asset or financial liability at the time of becoming a party to a
financial instrument contract.
The Group will derecognize a financial asset (or a part of the financial asset or a part of a group
of similar financial assets), i.e. writing off the asset from its account and balance sheet, if:
(1) the right to collect cash flow from the financial asset has expired;
(2) The right to collect cash flows of financial assets has been transferred, or the obligation to
pay the collected cash flows in full and in time to a third party under the “handover agreement” has
been undertaken; and (a) all risks and rewards in the ownership of the financial assets have been
substantially transferred, or (b) almost all risks and rewards in the ownership of the financial asset
have been neither transferred nor retained, but control of the financial asset has been waived.
If a financial liability has been fulfilled, revoked or expired, it will be derecognized. If an existing
financial liability is replaced by the same creditor with another financial liability under substantially
different terms or the terms of the existing liability are substantially modified in whole, the existing
liability will be derecognized and the new liability will be recognized, and the difference will be
recognized in the profit or loss for the current period.
For the transactions of financial assets in regular ways, the recognition and de-recognition
thereof will be conducted based on the accounting on the transaction date. Transactions of financial
assets in regular ways refer to the collection or delivery of financial assets within the time limit
prescribed by laws and regulation or prevailing practices in accordance with the contract terms. The
transaction date refers to the date when the Group promises to buy or sell the financial assets.
Classification and measurement of financial assets
Based on the Group’s business model for the management of financial assets and the features
of the contractual cash flow of financial assets, the Group’s financial assets are classified at initial
recognition into the financial assets that are measured by fair value and of which the changes in fair
76 / 180
Semi-annual Report for 2022
value are recognized in the profit or loss for the current period, the financial assets measured by
amortized cost and the financial assets that are measured by fair value and of which the changes in
fair value are recognized in other comprehensive income.
If a financial asset is measured by fair value at initial recognition, but the accounts receivable or
notes receivable from the sale of goods or rendering of service do not include significant financing
components or the financing components with a term no longer than one year are not considered,
the initial measurement will be made based on the transaction price.
For the financial assets that are measured by fair value and of which the changes in fair value
are recognized in the profit or loss for the current period, the related transaction fees will be directly
recognized in the profit or loss for the current period; the related transaction fees of other financial
assets will be recognized in the initially recognized amounts thereof.
The subsequent measurement of financial assets depends on the classification thereof:
Investment in debt instruments measured by amortized cost
A financial asset is classified into those measured by amortized cost, if the business model for
the management of the asset is for the purpose of collecting contractual cash flow; and the terms of
the contract of the asset stipulate that the cash flow generated on the specific date is only the
repayment of principal and the payment of interest on the outstanding principal. The interest income
of such financial assets is recognized with the effective interest method, and the gains or losses from
the de-recognition, modification or impairment thereof are all recognized in the profit or loss for the
current period.
Investment in the equity instruments that are measured by fair value and of which the
changes in fair value are recognized in other comprehensive income
The Group has irrevocably chosen to designate some non-trading equity instrument
investments as the financial assets that are measured by fair value and of which the changes in fair
value are recognized in other comprehensive income. Only the related dividend income (except for
the dividend income expressly acting as a recovery of investment cost) is recognized in the profit or
loss for the current period, while the subsequent changes in fair value are recognized in other
comprehensive income, and no provision is required for impairment. When the financial assets are
derecognized, the accumulated gains or losses previously recognized in other comprehensive
income will be moved out of other comprehensive income and recognized in retained earnings.
Financial assets that are measured 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 Group’s financial liabilities are classified at initial recognition into the financial liabilities that
are measured by fair value and of which the changes in fair value are recognized in the profit or loss
for the current period and other financial assets. For the financial liabilities that are measured by fair
value and of which the changes in fair value are recognized in the profit or loss for the current period,
the related transaction fees are recognized directly in the profit or loss for the current period, while
the related transaction fees of other financial liabilities are recognized in the initially recognized
amounts thereof.
The subsequent measurement of financial liabilities depends on the classification thereof:
Financial liabilities that are measured 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 that are measured by fair value and of which the changes in fair value are
recognized in the profit or loss for the current period include financial liabilities held for trading
(including the derivative instruments as financial liabilities) and the liabilities that are designated at
initial recognition as the financial liabilities that are measured by fair value and of which the changes
in fair value are recognized in the profit or loss for the current period. The financial liabilities held for
trading (including the derivative instruments as financial liabilities) are subsequently measured by
fair value and all changes in the fair value are recognized in the profit or loss for the current period.
Other financial liabilities
Those financial liabilities are subsequently measured by amortized cost with the effective
interest method.
Impairment of financial instruments
77 / 180
Semi-annual Report for 2022
The Group has treated and recognized the impairment of the financial assets measured by
amortized cost based on the expected credit loss.
For receivables that do not contain significant financing components, the Group measures the loss
provision based on the amount of expected credit loss equivalent to the entire duration under a
simplified measurement method,
For the financial assets not measured with the simplified method, the Group evaluates on each
balance sheet date whether their credit risks have increased significantly since the initial recognition.
If the credit risk of a financial asset has not increased significantly since the initial recognition, the
asset is in the first stage and the Group will make provision for loss based on the amount of expected
credit loss within the coming 12 months and calculate interest income based on the book balance
and effective interest rate; if the credit risk has increased significantly since the initial recognition, but
credit has not been impaired, the asset is in the second stage and the Group will make provision for
loss equivalent to the amount of expected credit loss during the entire term and calculate interest
income based on the book balance and effective interest rate; if credit has been impaired after the
initial recognition, the asset is in the third stage and the Group will make provision for loss equivalent
to the amount of expected credit loss during the entire term and calculate interest income based on
the amortized cost and effective interest rate.
The Group evaluates the expected credit losses of financial instruments on the individual and
group bases. It evaluates the expected credit loss of accounts receivable by taking into account the
credit risk characteristics of different clients and based on the account aging-based asset groups.
For the disclosure of the Group’s criteria for a significant increase in credit risk, definition of the
assets whose credit has been impaired and assumptions for the measurement of expected credit
loss, please refer to Notes X. 2.
When the Group no longer reasonably expects that it can recover the contractual cash flow of a
financial asset in whole or in part, it will directly write down the book balance of the asset.
11. Notes receivable
Determination and accounting treatment of the expected credit loss of notes receivable
□Applicable √Not applicable
12. Accounts receivable
Determination and accounting treatment of the expected credit loss of accounts receivable
√Applicable □Not applicable
Please refer to Notes X. Risks Associated with Financial Instruments
13. Accounts receivable financing
□Applicable √Not applicable
14. Other receivables
Determination and accounting treatment of the expected credit loss of other receivables
√Applicable □Not applicable
Please refer to Notes X. Risks Associated with Financial Instruments
15. Inventory
√Applicable □Not applicable
Inventory includes raw materials, work-in-progress materials, finished goods, real estate
development costs and real estate development products.
Inventory is initially measured by cost. The costs of inventory except development costs and
development products include the procurement cost, processing cost and other costs. The actual
costs of items out of inventory are determined with the weighted average method. Work-in-progress
materials include low-value consumables and packages, which are amortized with the one-off
amortization method.
Development costs refer to the properties that have not been completed and are developed for
the purpose of being sold. Development products refer to the properties that have been completed
78 / 180
Semi-annual Report for 2022
and are ready for sale. The actual costs of real estate development costs and development products
include the land acquisition cost, expenditures on construction and installation works, capitalized
interest and other direct and indirect development expenses. The use right of the land for
development purpose at the development of a project is amortized and recognized as the
development cost of the project based on the site area of the development product, and the
development cost will be changed over to development product after being completed.
If the public auxiliary facilities are completed earlier than the related development product, the
facilities will be allocated to and recognized in the development cost of related development project
based on the floor space of the project after final accounting of the facilities upon completion; if the
public auxiliary facilities are completed later than the related development product, they will be
recognized in the development cost of related development project based on the predicted cost of
the public auxiliary facilities.
Hotel, catering and fresh goods inventories are subject to onsite inventory, while other
inventories are subject to perpetual inventory.
On the balance sheet date, inventory is measured by cost and net realizable value, whichever is
lower. If the cost is higher than the net realizable value, provision will be made for inventory
depreciation, which will be recognized in the profit or loss for the current period. If the impact of the
previous provision for inventory depreciation has disappeared and the net realizable value of the
inventory becomes higher than the book value thereof, the amounts written down previously in the
original provision for inventory depreciation will be restituted and recognized in the profit or loss for
the current period.
Net realizable value is the estimated selling price of inventory less the cost estimated to occur
as of completion, estimated sales expenses and related taxes. In principle, provisions for inventory
depreciation shall be made for inventory items individually. For the inventory with a large quantity
and a low unit price, inventory depreciation provision will be made based on the Groups of items.
16. Contract assets
(1).Determination and criteria for contract assets
□Applicable √Not applicable
(2).Determination and accounting treatment of the expected credit loss of contract assets
□Applicable √Not applicable
17. Held-for-sale assets
□Applicable √Not applicable
18. Debt investments
Determination and accounting treatment of the expected credit loss of debt investments
□Applicable √Not applicable
19. Other debt investments
Determination and accounting treatment of the expected credit loss of other debt
investments
□Applicable √Not applicable
20. Long-term receivables
Determination and accounting treatment of the expected credit loss of long-term receivables
√Applicable □Not applicable
Please refer to Notes X. Risks Associated with Financial Instruments
21. Long-term equity investment
√Applicable □Not applicable
Long-term equity investment includes equity investment in subsidiaries, joint ventures and
associates.
Long-term equity investment is initially measured by the initial investment cost at the time of
being acquired. For a long-term equity investment acquired through a business merger under the
79 / 180
Semi-annual Report for 2022
same control, the initial investment cost is the share of the book value of the merged party’s owner’s
equity acquired on the merger date in the ultimate controlling party’s consolidated financial
statements; The difference between the initial investment cost and the book value of the merger
consideration is adjusted to the capital reserve (if it is insufficient to offset, the retained earnings will
be offset); other comprehensive income before the merger date is accounted for on the same basis
as that for the investee’s direct disposal of related assets or liabilities when disposing of the
investment. The shareholders’ equity recognized by the investee due to the changes in
shareholders’ equity other than net profit and loss, other comprehensive income, and profit
distribution is transferred to the current profit and loss when the investment is disposed of; those that
are still long-term equity investments after disposal are carried forward in proportion, and those that
are converted into financial instruments after disposal are carried forward in full. For a long-term
equity investment acquired through a business merger not under the same control, the merger cost
shall be used as the initial investment cost (for the business merger not under the same control
realized step by step in a package deal, the sum of the book value and the new investment cost on
the acquisition date is used as the initial investment cost). The merger cost includes the sum of fair
values of the assets paid, the liabilities incurred or assumed, and the equity securities issued by the
acquirer; the other comprehensive income held prior to the acquisition date that is recognized for
accounting under the equity method is accounted for on the same basis as that for the investee’s
direct disposal of related assets or liabilities when disposing of the investment. The shareholders’
equity recognized by the investee due to the changes in shareholders’ equity other than net profit
and loss, other comprehensive income, and profit distribution is transferred to the current profit and
loss when the investment is disposed of; those that are still long-term equity investments after
disposal are carried forward in proportion, and those that are converted into financial instruments
after disposal are carried forward in full. The initial investment costs of the long-term equity
investment acquired other than through merger are determined with the following methods: if an
investment is acquired through the payment of cash, its initial investment cost consists of the
purchase price actually paid and the expenses, taxes and other necessary expenses directly relating
to the acquisition of the investment; and if an investment is acquired through the offering of equity
securities, its initial investment cost is the fair value of the equity securities offered.
For the accounting of the long-term equity investment through which the Company can exercise
control over the investees, the Company adopts the cost method in individual financial statements.
Control refers to the power over an investee, with which the investor enjoys variable return by
participating in the investee’s related activities and is able to exercise its power over the investee to
affect the amount of return.
In the cost method, the long-term equity investment is measured by initial investment cost. If the
investment is added or recovered, the cost of long-term equity investment will be adjusted. The cash
dividend or profit declared by the investees to be distributed is recognized as the investment income
for the current period.
If the Group has joint control over or significant influence on the investee, the long-term equity
investment will be measured with the equity method. Joint control refers to joint control over an
arrangement in accordance with related agreements, and decisions on the activities relating to the
arrangement shall be made only after the parties sharing the control reach an agreement. Significant
influence refers to the power over the decision-making on the financial affairs and business policies
of the investee, but the investor does not have control or joint control with others over the formulation
of those policies.
In the equity method, if the initial investment cost of long-term equity investment is higher than
the share enjoyed by the Group in the fair value of the investee’s identifiable net assets at
investment, the excess will be recognized in the initial investment cost of the long-term equity
investment; if the initial investment cost of long-term equity investment is lower than the share
enjoyed by the Group in the fair value of the investee’s identifiable net assets at investment, the
difference will be recognized in the profit or loss for the current period and the cost of the long-term
equity investment will be adjusted simultaneously.
In the equity method, after long-term equity investment is acquired, the investment gains or
losses and other comprehensive income shall be recognized and the book value of the long-term
equity investment shall be adjusted based on the share in the net gains or losses and other
comprehensive income realized by the investees to be enjoyed or assumed. The share in the
investee’s net gains or losses to be enjoyed shall be determined based on the fair value of the
investee’ s identifiable assets at the acquisition of investment, according to the Group’s accounting
policies and accounting periods and after net profits of the investee are adjusted with the portion of
gains or losses from the internal transactions with its associates and joint ventures that is attributable
80 / 180
Semi-annual Report for 2022
to the investor based on the share to be enjoyed by it (but if the loss from internal transactions falls in
the assets impairment loss, it shall be recognized in full) offset, except for the invested and sold
assets that constitute businesses. The book value of long-term equity investment shall be reduced
according to the share to be enjoyed by it in the profits or cash dividend declared by the investees to
be distributed. For an investee’s net losses recognized by the Group, the book value of the long-term
equity investment and other long-term equity that substantially constitute net investment in the
investee shall be written down to zero at maximum, except for the extra losses for which the Group is
liable. For the investee’s other changes in shareholders’ equity other than net gains or losses, other
comprehensive income and profit distribution, the book value of the long-term equity investment will
be adjusted and the changes will be recognized in the shareholders’ equity.
For the disposal of long-term equity investment, the difference between the book value of
long-term equity investment and the proceeds actually received from the disposal thereof is
recognized in the profits or loss for the current period. For the long-term equity investment measured
with the equity method, if the equity method is terminated due to the disposal, the original related
other comprehensive income measured with the equity method will be accounted on the same basis
as that for the direct disposal of related assets or liabilities by the investees, and the shareholders’
equity recognized due to the investees’ other changes in shareholders’ equity than net gains or
losses, other comprehensive income and profit distribution will be recognized in the profits or loss for
the current period in full; if the equity method is still adopted, the original related other
comprehensive income measured with the equity method will be accounted on the same basis as
that for the direct disposal of related assets or liabilities by the investees and recognized in the profits
or loss for the current period pro rata, and the shareholders’ equity recognized due to the investees’
other changes in shareholders’ equity than net gains or losses, other comprehensive income and
profit distribution will be recognized in the profit or loss for the current period pro rata.
Where the Company loses control over a subsidiary due to step-by-step disposal of its equity
investment in the subsidiary through multiple transactions, if the transactions constitute a package of
deals, each transaction will be accounted as a transaction that disposes of the subsidiary and
causes the loss of control over the subsidiary; however, the difference between the proceeds from
each disposal and the book value of the corresponding long-term equity investment disposed of is
recognized as other comprehensive income in individual financial statements before the Company
loses control and is recognized in the profits or loss for the period in which the control is lost at the
loss of control. If the transactions do not constitute a package of deals, each transaction will be
accounted separately. In the event that the Company loses control, if the residual equity after the
disposal enables the Company to have joint control over or significant influence on the subsidiary, it
will be recognized as long-term equity investment in individual financial statements and be
accounted in accordance with the relevant rules for changing the cost method to the equity method;
otherwise, it will be recognized as a financial instrument and the difference between its fair value on
the date of the loss of control and its book value will be recognized in the profit or loss for the current
period.
22. Property investment
(1). Under cost measurement model
Depreciation or amortization methods
A property investment is a real estate property held with the intention of earning rents or of
capital appreciation or both, including land use rights that have been leased, land use rights that are
held and ready to be transferred after appreciation, and buildings that have been leased.
Property investments are initially measured by cost. The subsequent expenses relating to 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 residual Annual depreciation
value rate
Buildings and 20-30 years 4% 3.2%-4.8%
structures
81 / 180
Semi-annual Report for 2022
Land use right 40-70 years - 1.4%-2.5%
23. 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.
(2). Depreciation methods
√Applicable □Not applicable
Depreciation
Depreciation Residual value Annual
Category period (number of
methods rate depreciation rate
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
(3). Identification basis, pricing and depreciation method of the fixed assets under financial
lease
√Applicable □Not applicable
The depreciation method for the fixed assets under financial lease is the same as that for
proprietary fixed assets. If it can be reasonably determined that the ownership of a leased asset will
be acquired upon expiry of the lease term, the depreciation will be based on its service life; if it
cannot be reasonably determined that the ownership of a leased asset can be acquired upon expiry
of the lease term, the depreciation will be based on the lease term or the service life of the asset,
whichever is shorter.
24. Construction in progress
√Applicable □Not applicable
The cost of construction in progress is determined based on the actual expenses, including the
necessary expenses on the works incurred during the construction, the borrowing costs incurred
before the works reach the predetermined ready-for-use status that shall be capitalized and other
related expenses.
The construction in progress will be recognized as fixed assets, property investment and
long-term prepaid expenses when reaching the predetermined ready-for-use status.
25. Borrowing costs
√Applicable □Not applicable
Borrowing costs refer to the interests incurred by the Group for its borrowings and other related
costs, including interest, amortization of discounts or premiums, ancillary costs and exchange
difference arising from foreign currency borrowings.
Borrowing costs that are directly attributable to the acquisition, construction or production of the
assets qualified for capitalization shall be capitalized, and other borrowing costs shall be recognized
in the profit or loss for the current period. The assets qualified for capitalization refer to the fixed
assets, property investment, inventory and other assets that can reach the predetermined
ready-for-use or sale status only after a quite long time of acquisition, construction or production.
82 / 180
Semi-annual Report for 2022
Borrowing costs can start to be capitalized only if they meet the following requirements
simultaneously:
(1) the expenses on assets have been incurred;
(2) the borrowing costs have been incurred;
(3) The purchase, construction or production activities necessary to make the asset reach the
intended usable or saleable status have started.
The borrowing costs for the assets qualified for capitalization shall cease being capitalized when
the assets reach the predetermined ready-for-use or sale status after the acquisition, construction or
production. The borrowing costs incurred subsequently will be recognized in the profit or loss for the
current period.
During capitalization, the amount of interest to be capitalized during each accounting period is
determined as follows:
For special borrowings, the amount of interest to be capitalized is the interest expenses actually
incurred during the current period less the temporary deposits interest income or investment income.
(2) For occupied general borrowings, it is calculated and determined based on the weighted
average of asset expenditures of the accumulated asset expenditure exceeding the portion of
special borrowings multiplied by the weighted average interest rate of the occupied general
borrowings.
If an asset qualified for capitalization is interrupted abnormally for more than three months
during its acquisition, construction or production except due to the necessary procedures for it to
reach the predetermined ready-for-use or sale status, the capitalization of its borrowing costs will be
suspended. The borrowing costs incurred during the interruption will be recognized as expenses and
in the profit or loss for the current period until the acquisition, construction or production of the asset
is resumed.
26. Biological assets
□Applicable √Not applicable
27. Oil and gas assets
□Applicable √Not applicable
28. Right-of-use assets
√Applicable □Not applicable
The Group's right-of-use asset classes mainly include buildings and lands.
On the commencement date of the lease term, the Group recognizes its right to use the leased
assets during the lease term as the right to use them, including: the initial measurement amount of
the liabilities of the lease; The amount of the lease payment paid on or before the commencement
date of the lease term, where there is a lease incentive, shall be deducted from the amount of the
lease incentive already enjoyed; Initial direct costs incurred by lessee; Costs expected to be incurred
by the Lessee to disassemble and remove the leased asset, restore the leased asset to the site, or
restore the leased asset to the state agreed upon in the lease terms. The Group subsequently shall
adopt the straight-line method for the depreciation of the usufruct assets. Where the ownership of
the leased asset can be reasonably determined at the end of the lease term, the Group shall take
depreciation during the remaining useful life of the leased asset. Where it is not reasonably certain
that ownership of the leased asset will be acquired at the end of the lease term, the Group shall
make depreciation within the shorter period of the lease term or the remaining useful life of the
leased asset.
When the Group measures the lease liabilities again according to the present value of the
changed lease payment amount and adjusts the book value of the right to use assets accordingly, if
the book value of the right to use assets has been reduced to zero, but the lease liabilities still need
to be further reduced, the Group shall record the remaining amount into the current profit and loss.
29. Intangible assets
(1). Measurement method, service life and impairment test
√Applicable □Not applicable
83 / 180
Semi-annual Report for 2022
Intangible assets will be recognized only if the economic benefits relating thereto are very likely
to flow into the Group and the costs thereof can be measured reliably, and will be initially measured
by cost. However, the intangible assets acquired from the merger of the enterprises not under
common control will be individually recognized so long as the fair values thereof can be measured
reliably, and will be measured by fair value.
The service life of an intangible asset is determined based on the term during which it can bring
economic benefits to the Group. If the term during which an intangible asset can bring economic
benefits to the Group is unforeseeable, it will be deemed as an intangible asset with uncertain
service life.
The service life of intangible assets is as follows:
Category Service life
Land use right 40-50 years
Software 10 years
The land use rights acquired by the Group are generally accounted as intangible assets. The
buildings constructed by the Group itself, the related land use rights and buildings are accounted as
intangible assets and fixed assets respectively. The price paid for the land and buildings purchased
externally shall be allocated between the land use rights and buildings. If it is hard to reasonably
allocate the price, the price in full will be treated as fixed assets.
The intangible assets with finite service life shall be amortized with the straight-line method
during their service life. The Group reviews and makes adjustment to, if necessary, the service life
and amortization method of its intangible assets with finite service life at least at the end of each
year.
(2). Accounting policies for internal R&D expenses
√Applicable □Not applicable
The Group divides expenditures for internal R & D projects into research expenditures and
development expenditures. Research 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 assetsor the
intangible assets themselves. Intangible assets that will be used internally can prove their usefulness;
there are sufficient technology, financial resources and other resource supports to complete the
development of the intangible asset and ability to use or sell the intangible asset; the expenditure
attributable to the development of such intangible asset can be reliably measured. Development
expenditures that do not satisfy the above conditions are included in the current profits and losses
when incurred.
30. Impairment of long-term assets
√Applicable □Not applicable
The Group determines the impairment of the assets other than inventory, deferred income tax
and financial assets with the following methods.
The Group decides on the balance sheet date whether an asset has a sign of impairment. If it
has a sign of impairment, the Group will estimate its recoverable value and carry out an impairment
test. For the goodwill formed due to the merger of enterprises and the intangible assets with
uncertain service life, the Group carries out impairment tests at least at the end of each year,
regardless of the impairment signs. For the intangible assets that have not been ready for use, the
Group also carries out impairment tests every year.
The recoverable value of an asset is determined based on the fair value of the asset less the
disposal expenses or the present value of the expected future cash flows of the asset, whichever is
higher. The Group estimates the recoverable value of each asset. For an asset whose recoverable
value is hard to be estimated, the Group estimates the recoverable value of the assets group which
the asset belongs to. An assets group is identified based on whether the main cash inflows from the
Group are independent from the cash inflows from other assets or assets groups.
When the recoverable value of an asset or assets group is lower than its book value, the Group
will write down its book value to the recoverable value and the amount written down will be
recognized in the profit or loss for the current period; meanwhile, it will make provision for the
impairment thereof.
84 / 180
Semi-annual Report for 2022
The above assets impairment loss will not be reversed during the subsequent accounting
periods.
31. 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
32. Contract liabilities
Recognition of contract liabilities
√Applicable □Not applicable
The Group presents contractual assets or contractual liabilities in the balance sheet based on
the relationship between performance obligations and customers’ payments. The Group offsets the
contractual assets and contractual liabilities under the same contract as a net amount.
A contractual liability refers to an obligation to transfer goods or services to a customer for the
consideration received or receivable from the customer, such as the amount received by the
enterprise before the transfer of committed goods or services.
33. Employee 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
When the Group provides severance benefits to its employees, the employee compensation
liabilities arising from the severance benefits will be recognized, and the amount will be recognized
in the profit or loss for the current period on the earlier date below: the date when the Group cannot
unilaterally withdraw the severance benefits provided as a result of the employment termination plan
or downsizing proposal; or the date when the Group recognizes the costs or expenses relating to the
reorganization involving the payment of severance benefits.
(4) Accounting treatment of other long-term employee benefits
□Applicable √Not applicable
34. Lease liabilities
√Applicable □Not applicable
At the commencement date of the lease period, the Group recognizes the present value of the
outstanding lease payments as a lease liability, except for short term and low value leases. In
calculating the present value of the lease payments, the Group uses the lease embedded interest
rate as the discount rate; If the inherent interest rate of the lease cannot be determined, the lessee's
incremental borrowing rate shall be used as the discount rate. The Group calculates the interest
expense of the lease liability in each period of the lease term in accordance with the fixed cyclical
interest rate and records it into the current profit and loss, except as otherwise stipulated in the cost
of the relevant assets. The variable lease payment not included in the measurement of lease
85 / 180
Semi-annual Report for 2022
liabilities shall be recorded into the profit and loss of the current period when it actually occurs,
except for those included in the cost of related assets as otherwise stipulated.
After the lease term begins, in the future when substantial changes occurred in the fixed payment,
the guaranteed residual value is expected to cope with the amount of change, is used to determine
the lease payment ratio index or change, call options, renewal options or terminate the option
evaluation results or the actual exercise changes, after the Group according to the change of the
present value of the lease payments to measure lease liability.
35. Estimated liabilities
√Applicable □Not applicable
Except for the contingent considerations and contingent liabilities assumed in the mergers of
enterprises not under common control, an obligation relating to contingent matters will be recognized
by the Group as estimated liabilities if meeting the following requirements simultaneously:
(1) The obligation is a current obligation assumed by the Group;
(2) The performance of the obligation may result in the outflow of economic benefits from the
Group;
(3) The amount of the obligation can be measured reliably.
Estimated liabilities are initially measured based on the best estimate of the expenses required
for the performance of related current obligations, and the risks, uncertainties and time value of
money relating to the contingent matters are also factored in. The book value of estimated liabilities
is reviewed on each balance sheet date. If any conclusive evidence indicates that the book value
cannot reflect the current best estimate, the book value will be adjusted based on the current best
estimate.
36. Share-based payment
√Applicable □Not applicable
Share-based payment is divided into equity-settled share-based payment and cash-settled
share-based payment. An equity-settled share-based payment refers to a deal in which the Group
uses shares or other equity instruments as the consideration for settlement to obtain services.
The equity-settled share-based payment in exchange for services provided by employees shall
be measured at the fair value of the equity instruments granted to employees. If it can be exercised
immediately after the grant, it shall be included in the relevant costs or expenses at fair value on the
grant date, and the capital reserve shall be increased accordingly; if it cannot be exercised until the
service within the waiting period has been completed or the specified performance conditions have
been satisfied on each balance sheet date during the waiting period, the Group will, based on the
best estimate of the number of exercisable equity instruments, include the services acquired in the
current period, as relevant costs or expenses based on the fair value on the grant date, and increase
the capital reserve accordingly .
None of cost or expense shall be recognized for a share payment that cannot be exercised due
to failure to meet non-market conditions and/or service period conditions. Where market conditions
or non-exercising conditions are stipulated in the share-based payment agreement, regardless of
whether the market conditions or non-exercising conditions are satisfied, it shall be deemed as
exercisable as long as all other performance conditions and/or service period conditions have been
satisfied.
If the equity-settled share payment is canceled, it will be treated as an accelerated exercise on
the cancellation day, and the unrecognized amount shall be recognized immediately. If an employee
or other party has option to satisfy the non-exercising conditions but fails to satisfy within the waiting
period, it shall be treated as cancellation of equity-settled share-based payment. However, if a new
equity instrument is granted and if it is determined that the new equity instrument granted is used to
replace the canceled equity instrument on the grant date of the new equity instrument, the
replacement equity instruments granted in the same way shall be treated in the same way as that for
the modification of the terms and conditions for the original equity instrument.
37. Preferred shares, perpetual bonds and other financial instruments
□Applicable √Not applicable
86 / 180
Semi-annual Report for 2022
38. Revenue
(1). Accounting policies for the recognition and measurement of revenue
√Applicable □Not applicable
The Group recognizes incomes when it has fulfilled its performance obligations in the contract,
that is, the customer has acquired the control over the relevant goods or services. The acquisition of
the control over related goods or services means the ability to control the use of the goods or the
provision of the service and obtain almost all of the economic benefits from them.
Commodity sales contracts
Commodity sales contracts between the Group and customers usually only include performance
obligations for the transferred commodities. The Group generally recognizes incomes on the basis of
comprehensive consideration of the following factors, at the time when the customer obtains control
of the relevant products: the acquisition of the current right to receive payment for the commodities,
the transfer of the major risks and rewards in the ownership of the commodities, the transfer of the
legal ownership of the commodities, the transfer of the physical assets of the commodities, and the
acceptance of the commodities by the customer.
Service contracts
The service contracts between the Group and its customers usually include performance
obligations such as the provision of the use of shops in the China Commodities Cities and its
operating supporting services, the provision of hotel accommodation services and hotel catering
services, and the provision of fixed-term paid funding services to related parties outside the Group.
The use of shops in the China Commodities Cities 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 Cities and the supporting services for its 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.
Fixed -time paid funding services
Since customers obtain and consume the economic benefits brought about by the Group’s
performance at the time of the performance by the Group, the Group regards them as a performance
obligation to be fulfilled within a certain period of time and recognizes an income based on the
performance progress, except that the performance progress cannot be reasonably determined.
Under the output method, the Group determines the performance progress of the services for the
fixed-term paid funding services based on the number of using days of funds. When the performance
progress cannot be reasonably determined, if the cost incurred by the Group is expected to be
compensated, the income shall be recognized according to the amount of the cost incurred until the
performance progress can be reasonably determined.
(2). Differences in the revenue recognition policies for the same business under different
business models
□Applicable √Not applicable
87 / 180
Semi-annual Report for 2022
39. Contract cost
□Applicable √Not applicable
40. Government grants
√Applicable □Not applicable
A government grant is recognized when it can meet the requirements and can be received. If a
government grant 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 income-related government grants that are used to compensate for the related costs,
expenses or losses during the subsequent periods are recognized as deferred income and will be
recognized in the profit or loss or against the related costs for the period when the related costs,
expenses or losses are recognized. The income-related government grants used to compensate for
the related costs, expenses or losses that have been incurred are directly recognized in the profit or
loss or against the related costs for the current period.
The asset-related government grants shall be used to offset the book value of related assets;
orrecognized as deferred income, and included in profit and loss in stages under a reasonable and
systematic method during the useful life of the related assets (but government grants measured at a
nominal amount shall be directly included in the current profit and loss); if the relevant asset is sold,
transferred, scrapped or damaged before the end of its useful life, the balance of the undistributed
deferred income shall be transferred to the current profit and loss when the asset is disposal.
If the finance allocates the discounted funds to the loan bank, and the loan bank provides the
Group with a loan at a policy-oriented preferential interest rate, the Group takes the actual loan
amount received as the book value of the loan, and the loan principal and the policy The preferential
interest rate calculates the relevant borrowing costs.
41. Deferred income tax assets and deferred income tax liabilities
√Applicable □Not applicable
Income tax consists of current income tax and deferred income tax. Except for the income tax
arising from the adjustment of goodwill caused by the mergers of enterprises or the income tax that
is related to the transactions or matters directly recognized in shareholders’ equity, which are
recognized in the shareholders’ equity, income tax will be recognized in the profit or loss for the
current period as income tax expenses or income.
The Group measures the current income tax liabilities or assets formed during the current
period and the previous periods by the estimated amount of income tax to be paid or refunded as
calculated in accordance with the tax law.
The Group recognizes deferred income tax with the balance sheet liability method based on the
temporary difference between the book value of assets and liabilities on the balance sheet date and
the tax base and that between the book value of the items that have not been recognized as assets
and liabilities but whose tax base can be determined according to the tax law and the tax base
thereof.
All taxable temporary differences will be recognized as deferred income tax liabilities, unless:
(1) The taxable temporary difference is generated in the following types of transactions: the
initial recognition of goodwill, or the initial recognition of assets or liabilities generated in a
transaction with the following characteristics: the transaction is not a business merger, and neither
affecting accounting profits, nor impacting taxable incomes or deductible losses when a transaction
occurs.
(2) For taxable temporary differences related to investments in subsidiaries, joint ventures and
associated enterprises, the time for the reversal of the temporary differences can be controlled and
the temporary differences may not be reversed in the foreseeable future.
88 / 180
Semi-annual Report for 2022
For the deductible temporary differences and the deductible losses and tax deductions that can
be carried forward to the subsequent years, the Group recognizes the deferred income tax assets
arising therefrom within the limit of the future taxable income that is very likely to be obtained and
used to be offset against the deductible temporary differences, deductible losses and tax deductions,
unless:
(1) The deductible temporary differences are generated in the following transactions: The
transaction is not a business combination, and when the occurrence of the transaction affects
neither accounting profits nor taxable income or deductible losses.
(2) For deductible temporary differences related to investments in subsidiaries, joint ventures
and associates, if all of the following conditions are satisfied simultaneously, the corresponding
deferred income tax assets are recognized: the temporary differences are likely to be reversed in the
foreseeable future, and it is likely to obtain taxable income that can be used to offset the deductible
temporary differences in the future.
The Group measures, on the balance sheet date, the deferred income tax assets and liabilities
based on the applicable tax rate for the period when the assets are expected to be recovered or the
liabilities are expected to be paid off, in accordance with the tax law, which will also reflect the impact
of the way of the expected recovery of assets or repayment of liabilities on the income tax on the
balance sheet date.
The Group reviews the book value of deferred income tax assets on the balance sheet date. If it
is very likely to be unable to acquire adequate taxable income to be offset against the benefits of
deferred income tax assets in the future, the book value of deferred income tax assets will be written
down. On the balance sheet date, the Group re-evaluates the unrecognized deferred income tax
assets and recognizes the same to the extent that it is very likely to acquire adequate taxable income
to reverse all or part of the deferred income tax assets.
If all the following requirements are met, deferred income tax assets and liabilities will be
presented in net amount after offsetting: the Group has the legal right to settle the current income tax
assets and liabilities in net amount; the deferred income tax assets and liabilities are related to the
income tax levied by an identical tax authority on an identical taxpayer, or are related to the income
tax levied by an identical tax authority on different taxpayers, but during each important period when
the deferred income tax assets and liabilities are reversed, the involved taxpayers intend to settle the
current income tax assets and liabilities in net amount or acquire assets or pay off debts
simultaneously.
42. Lease
(1).Accounting treatment of operating lease
□Applicable √Not applicable
(2).Accounting treatment of financial lease
□Applicable √Not applicable
(3).Determination and accounting treatment of leases under the new lease standards
√Applicable □Not applicable
Identification of the lease
On the commencement date of the contract, the Group evaluates whether the contract is a
lease or an inclusive lease if a party in the contract cedes the right to control the use of one or more
identified assets for a certain period in exchange for consideration. To determine whether the
contract cedes the right to control the use of the identified assets for a certain period, the Group
assesses whether the client in the contract is entitled to receive almost all the economic benefits
arising from the use of the identified assets during the use period and to dominate the use of the
identified assets during the use period.
Identification of separate leases
If the contract contains multiple separate leases at the same time, the Group will split the
contract and account for each separate lease separately. The right to use the identified asset
constitutes a separate lease in the contract if both of the following conditions are met:
(1) The lessee can profit from the use of the asset alone or in combination with other readily
available resources;
(2) The asset is not highly dependent or highly related to other assets in the contract.
89 / 180
Semi-annual Report for 2022
Separation of lease and non-lease components
If the contract contains both lease and non-lease parts, when the Group acts as the lessor and
lessee, the lease and non-lease parts are separated for accounting treatment.
Evaluation of the lease term
The lease term is the irrevocable period during which the Group has the right to use the leased
asset. The Group has the option to renew the lease, that is, it has the right to choose to renew the
lease of the asset, and if it is reasonably certain that the option will be exercised, the lease term also
includes the period covered by the renewal option. The Group has the option to terminate the lease,
that is, it has the right to choose to terminate the lease of the asset, but if it is reasonably certain that
the option will not be exercised, the lease term includes the period covered by the option to terminate
the lease. In the event of a major event or change within the control of the Group and affecting
whether the Group is reasonably certain to exercise the corresponding option, whether the Group is
reasonably certain to exercise the option to renew the lease, purchase the option or not exercise the
option to terminate the lease right to be reassessed.
As a tenant
See Note V. 28 and Note V. 34 for the general accounting treatment of the Group as a lessee.
Change in lease
Change in lease is the change in lease scope, lease consideration and lease term beyond the
original contract terms, including increasing or terminating the right to use one or more leased assets,
extending or shortening the lease term specified in the contract, etc.
If the lease changes and the following conditions are met at the same time, the Group will
account for the change in lease as a separate lease:
(1) The change in lease expands the scope of the lease by increasing the right to use one or
more leased assets;
(2) The increased consideration is equivalent to the amount adjusted by the individual price of
the expanded part of the lease scope according to the contract.
If the lease modification is not accounted for as a separate lease, on the effective date of the
lease modification, the Group re-determines the lease term and discounts the modified lease
payments using the revised discount rate to remeasure the lease liability . When calculating the
present value of the lease payment after the change, the Group uses the lease embedded interest
rate of the remaining lease period as the discount rate; If it is impossible to determine the embedded
interest rate of the remaining lease period, the Group's incremental loan interest rate on the effective
date of the lease change shall be used as the discount rate.
Regarding the impact of the above lease liability adjustment, the Group conducts accounting
treatment according to the following situations:
(1) If the change in lease results in the narrowing of the lease scope or the shortening of the
lease term, the Group reduces the book value of the right-of-use assets to reflect the partial or
complete termination of the lease, and the relevant gains or losses from the partial or complete
termination of the lease are included in profit and loss for the current period;
(2) For other changes in lease, the Group adjusts the book value of the right-of-use asset
accordingly.
Short-term leases and leases of low-value assets
The Group regards leases with a lease term shorter than 12 months and excluding purchase
options as short-term leases on the commencement date of the lease term; leases with a value not
exceeding RMB 40,000 when a single leased asset is a brand-new asset is identified as a low-value
asset lease. If the Group subleases or expects to sublease the leased assets, the original lease is
not recognized as a low-value asset lease. 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.
As a lessor
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.
The Group as the lessor to 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.
If an operating lease is changed, the Group will account for it as a new lease from the effective
date of the change, and the advance receipts or lease receivables related to the lease before the
change will regarded as the receipts of the new lease.
90 / 180
Semi-annual Report for 2022
43. Other important accounting policies and accounting estimates
√Applicable □Not applicable
Distribution of profits
The Company’s cash dividend is recognized as liabilities after approval by the shareholders’
meeting.
Measurement of fair value
The Group measures the fair values of equity instruments investments on each balance sheet
date. Fair value refers to the price 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. The Group
measures the related asset or liability by fair value, assuming that the orderly transaction of selling
the asset or transferring the liability is executed in the principal market of related asset or liability, or
if there is no principal market, assuming that the transaction is executed in the most advantageous
market of related asset or liability. The principal market (or most advantageous market) is the
marketplace which the Group can enter on the measurement date. The Group adopts the
assumptions used by market players to maximize economic benefits in the pricing of the assets or
liabilities.
When measuring non-financial assets at fair value, consider the ability of market participants to
use the asset for the best use to generate economic benefits, or to sell the asset to other market
participants who can use the asset for the best use to generate economic benefits.
The Group adopts the valuation technique that is applicable under the current conditions and is
supported with sufficient available data and other information and uses the related observable inputs
with priority. The unobservable inputs will be used only if the observable inputs are unavailable or it
is unfeasible to acquire the observable inputs.
For the assets and liabilities which are measured or disclosed by fair value in the financial
statements, the levels of fair value are determined based on the lowest-level input of important
significance for the overall measurement of fair values: Level 1 input is the unadjusted offer price for
an identical asset or liability that can be obtained in an active market on the measurement date;
Level 2 inputs are the inputs that are directly or indirectly observable for related assets or liabilities
other than Level 1 inputs; Level 3 inputs are the inputs that are observable for related assets or
liabilities.
On each balance date, the Group re-evaluates the assets and liabilities that are recognized in
the financial statements and keep being measured by fair value so as to determine whether to
change the measurement levels of fair value.
Significant accounting judgments and estimates
In the preparation of financial statements, the management need to make judgments, estimates
and assumptions, which will affect the presented amounts and disclosure of revenue, expenses,
assets and liabilities and the disclosure of contingent liabilities on the balance sheet date. However,
the uncertainties of these assumptions and estimates may cause material adjustment to the book
value of the assets or liabilities that will be affected in the future.
Judgments
When applying the Group’s accounting policies, the management have made the following
judgments which have had significant influence on the amounts recognized in the financial
statements:
Operating lease - as the lessor
The Group has signed lease contracts for the property investments. The Group thinks that
according to the terms of the lease contracts, the Group retains all major risks and compensations
on the titles of those real estate properties and thus handles them as operating leases.
Partition between property investments and fixed assets
The Group classifies the buildings and structures leased out other than for the main businesses
such as market and hotel services as well as the auxiliary land use rights thereof as property
investments, including but not limited to the auxiliary banking and catering outlets for market
operation and the auxiliary service outlets for hotels. Other buildings and structures leased out are
classified as fixed assets.
Judgments on assets acquisition and mergers of enterprises
When determining whether an acquisition transaction constitutes a merger, the Group assesses
various factors, including whether the acquiree constitutes a business, in accordance with the
Accounting Standards for Enterprises No. 20 – Merger of Enterprises. A business refers to a group
of some production and operation activities or assets and liabilities within an enterprise, which has
91 / 180
Semi-annual Report for 2022
the input, processing and output abilities and whose costs and expenses or revenue can be
calculated independently, but an asset or a group of assets or liabilities can be deemed as a
business so long as it has the input and processing processes. The Group makes comprehensive
judgments by combining the asset acquired and the processing process.
Business model
The classification of financial assets at initial recognition depends on the Group’s business
model for the management of financial assets. When judging the business model, the Group factors
in the enterprise evaluation, the way of reporting financial assets performance to key management
personnel, the risks affecting the performance of financial assets, the way of managing financial
assets and the way of related business management personnel obtaining remunerations. When
assessing whether to aim at the collection of contractual cash flow, the Group needs to analyze the
reasons, time, frequency and value for sale of the financial assets to be sold before the expiry dates
thereof.
Characteristics of contractual cash flow
The classification of financial assets at initial recognition depends on the characteristics of the
contractual cash flow of the financial assets. For the judgment on whether the contractual cash flow
is the repayment of principal and the payment of interest on outstanding principal, including the
evaluation of the adjustment to the time value of money, it should be judged whether it is significantly
different from the benchmark cash flow; for the financial assets with the early repayment
characteristic, it should be judged whether the fair value of the early repayment characteristic is
extremely low.
Uncertainties of estimates
The key assumptions on the balance sheet date for the future and other key sources of the
uncertainties of estimates are shown below, which may cause significant adjustments to the book
values of assets and liabilities during the future accounting periods.
Impairment of financial instruments
The Group evaluates the impairment of financial instruments with the expected credit loss
model. To apply the model, the Group needs to make significant judgments and estimates and take
into account all reasonable and evidenced information, including forward-looking information. When
making these judgments and estimates, the Group infers the expected changes in the debtors’ credit
risks based on their historical repayment data, in combination with the economic policies,
macroeconomic indicators and industry risks. Different estimates may affect the provisions for
impairment and the provision that has been made for impairment may not necessarily be equal to
the actual amount of impairment loss in the future.
Net realizable value of property inventory
The Group’s property inventory is measured by cost or net realizable value, whichever is lower.
For the calculation of net realizable value, assumptions and estimates should be used. If the
management adjust the estimated price and the costs and expenses to be incurred until the
completion, it will affect the estimate of the net realizable value of the inventory and the difference
will affect the provision for inventory depreciation.
Impairment of non-current assets other than financial assets (excluding goodwill)
The Group determines, on the balance sheet date, whether the non-current assets other than
financial assets have a sign of being impaired. For a non-current asset other than financial asset, if it
is indicated that its book value cannot be recovered, an impairment test will be made. When the book
value of an asset or a group of assets is higher than its recoverable value, i.e. fair value less the
disposal expenses or the present value of expected future cash flow, whichever is higher, the asset
or group has been impaired. For the fair value less the disposal expenses, the Group refers to the
agreed selling price or observable market price of the similar asset in a fair transaction, less the cost
increase directly attributable to the disposal of the asset. When predicting the present value of future
cash flows, the management must estimate the expected future cash flows of the asset or group of
assets and select an appropriate discount rate. When identifying a group of assets, the management
consider whether the smallest identifiable group of assets can generate income and cash flows
independently from other departments or units, or the income and cash inflows generated thereby
are mostly independent from other departments or units, and also take into account the way of
managing or monitoring production and operating activities and the way of making decisions on the
continued use or disposal of the asset.
Fair value of unlisted equity investment
Valuation of the unlisted equity investment is the expected future cash flows discounted at the
current discount rate of other financial instruments with similar contract terms and risk characteristics.
92 / 180
Semi-annual Report for 2022
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.
Service life and residual value of fixed assets
The Group makes provisions for the depreciation of its fixed assets during the expected service
life thereof after considering their residual value. The Group reviews the expected service life and
residual value of related assets on a regular basis to determine the amount of depreciation expenses
to be recognized for each reporting period. The Group determines the service life and residual value
of assets based on its experience in similar assets and in combination with the expected technology
changes. If the previous estimates have material changes, the depreciation expenses will be
adjusted for the future periods.
44. Changes in important accounting policies and accounting estimates
(1).Changes in important accounting policies
□Applicable √Not applicable
(2).Changes in important accounting estimates
□Applicable √Not applicable
45. Others
□Applicable √Not applicable
VI. Taxes
1. Major taxes and tax rates
Major taxes and tax rates
√Applicable □Not applicable
Tax Base of taxation Tax rate
VAT Sale of goods or rendering of The company is a general taxpayer. The
taxable service taxable income is calculated at 13%, 9%
and 6% tax rates as output tax, and the
value-added tax is calculated and paid
on the basis of the difference after
deduction of the input tax allowed to be
deducted in the current period. In
addition, for the sale of the
self-developed old real estate projects
(the contract start date indicated in the
“Construction Project Construction
Permit” is before April 30, 2016) and the
lease of the real estate acquired before
April 30, 2016, the simplified tax
calculation method shall apply at the rate
of 5%.
Urban maintenance Indirect tax actually paid 5% or 7%
and construction tax
Corporate income Domestic enterprises should pay 25% of
tax the taxable income of corporate income
tax; European Huajie Development Co.,
93 / 180
Semi-annual Report for 2022
Ltd. is registered in Prague, Czech
Republic, so it is subject to the corporate
income tax rate of 19%; Yiwu China
Commodities City (Hong Kong)
International Trade Co., Ltd. is registered
in Hong Kong Special Administrative
Region, so it is subject to the Hong Kong
income tax rate, 16.50%; Yiwu China
Commodities City (Germany) Co., Ltd. is
registered in Frankfurt, Germany, so it is
subject to the corporate income tax rate
of 15%.
BETTER SILK ROAD FZE was
registered in Dubai and no corporate
income tax is levied.
Land appreciation Ratio of appreciation value to Four-bracket progressive tax rate
tax deductible items (30%～60%)
Real estate tax If the tax is levied according to 1.2% or 12%
price, the amount is 1.2% of the
balance of the original value of
the property after a 30%
deduction; if the tax is levied
according to rental, the amount
is 12% of the rental income.
Education surcharge Indirect tax actually paid 3%
Local education Indirect tax actually paid 2%
surcharge
Cultural undertaking Advertising turnover 2%
development fee
Disclosure of taxpayers subject to different income tax rates
√Applicable □Not applicable
Taxpayer Income tax rate (%)
European Huajie Investment Development Co., 19.00
Ltd.
Yiwu China Commodities City (Hong Kong) 16.50
International Trade Co., Ltd.
Yiwu China Commodities City (Germany) Co., 15.00
Ltd.
BETTER SILK ROAD FZE 0
2. Tax preference
√Applicable □Not applicable
According to the notice “Measures of Yiwu for Implementation of Adjustment of Urban Land Use
Tax Policies to Promote the Intensive and Economical Utilization of Land” (Y Z B F [2022] No. 16),
the Company enjoys tax incentive of exemption from 90% of land use tax according to the statistical
caliber of taxation on acres .
3. Others
□Applicable √Not applicable
VII. Notes to items in consolidated financial statements
1. Cash and cash equivalents
√Applicable □Not applicable
94 / 180
Semi-annual Report for 2022
Unit: RMB
Item Closing balance Opening balance
Cash on hand 216,579.25 154,264.94
Bank deposits 4,498,985,667.17 4,831,258,722.95
Other cash and cash equivalents 131,802.10 55,398.36
Total 4,499,334,048.52 4,831,468,386.25
In which: amount deposited abroad 26,775,103.35 38,554,320.18
Other notes:
For the cash and cash equivalents which are restricted in use, please refer to Notes VII.81
Assets with Restricted Title or Right of Use.
Interest income of demand deposits is accrued based on the demand deposit rates of banks.
The term of short-term time deposits ranges from three months to half a year and depends on the
Group’s cash demand, and the interest income thereof is accrued based on the corresponding time
deposit rates of banks.
2. Held-for-trading financial assets
√Applicable □Not applicable
Unit: RMB
Item Closing balance Opening balance
Financial assets that are measured by fair value and of 51,033,592.50 75,375,083.20
which the changes in fair value are recognized in the
profit or loss for the current period
Among which:
Equity instrument investment 26,033,592.50 50,375,083.20
Bank financing products 25,000,000.00 25,000,000.00
Total 51,033,592.50 75,375,083.20
Other statements:
□Applicable √Not applicable
3. Derivative financial assets
□Applicable √Not applicable
4. Notes receivable
(1). Categorized presentation of notes receivable
□Applicable √Not applicable
(2). Notes receivable having been pledged by the Company as of the close of the reporting
period
□Applicable √Not applicable
(3). Notes receivable having been endorsed or discounted by the Company as of the close
of the reporting period and having not been due as of the balance sheet date
□Applicable √Not applicable
(4). Notes turned into accounts receivable due to the drawers’ non-performance at the close
of the reporting period
□Applicable √Not applicable
(5). Categorized disclosure based on the bad debt provision method
□Applicable √Not applicable
95 / 180
Semi-annual Report for 2022
(6). Provisions for bad debts
□Applicable √Not applicable
(7). Notes receivable actually written off during the current period
□Applicable √Not applicable
Other notes:
□Applicable √Not applicable
5. Accounts receivable
(1). Disclosure based on account age
√Applicable □Not applicable
Unit: RMB
Account age Closing book balance
Within 1 year 79,963,537.64
1 to 2 years 120,212.00
2 to 3 years 100,234.00
Over 3 years 291,021.46
Total 80,475,005.10
(2). Categorized disclosure based on the bad debt provision method
√Applicable □Not applicable
Unit: RMB
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 debt provision 6,261,907.10 7.78 6,261,907.10 100.00 - 97,219,393.59 50.71 6,261,907.10 6.44 90,957,486.49
is made individually
Among which:
Trade receivables - - - - - 90,957,486.49 47.44 - - 90,957,486.49
Lease receivables 6,261,907.10 7.78 6,261,907.10 100.00 - 6,261,907.10 3.27 6,261,907.10 100.00 -
Accounts receivable for
which bad debt provision 74,213,098.00 92.22 430,939.93 0.58 73,782,158.07 94,491,809.69 49.29 211,765.29 0.22 94,280,044.40
is made by group
Among which:
Accounts receivable for
which the bad debts are
provided by combination 74,213,098.00 92.22 430,939.93 0.58 73,782,158.07 94,491,809.69 49.29 211,765.29 0.22 94,280,044.40
of credit risk
characteristics
Total 80,475,005.10 / 6,692,847.03 / 73,782,158.07 191,711,203.28 / 6,473,672.39 / 185,237,530.89
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 operating
100.00
receivables 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:
96 / 180
Semi-annual Report for 2022
□Applicable √Not applicable
Explanation for making bad debt provision for accounts receivable by group:
□Applicable √Not applicable
If the bad debt provision is made according to the general model of expected credit loss, please refer
to the disclosure of other receivables:
√Applicable □Not applicable
End of June 2022
Account age Estimated book balance in Expected credit loss Expected credit loss for the
default rate (%) duration
Within 1 year 73,701,630.54 0.16 117,922.61
1 - 2 years 120,212.00 5.66 6,805.20
2 -3 years 100,234.00 15.16 15,190.66
Over 3 years 291,021.46 100.00 291,021.46
Total 74,213,098.00 430,939.93
(3). Provisions for bad debts
□Applicable √Not applicable
In which the recovered or reversed amount is important:
□Applicable √Not applicable
(4). Accounts receivable actually written off during the current period
□Applicable √Not applicable
(5). Accounts receivable from the five debtors with the highest closing balance
√Applicable □Not applicable
Unit: RMB
Proportion in the
Closing total closing Closing balance of
Debtor
balance balance of accounts bad debt provision
receivable (%)
Total balance of the accounts
33,324,100.20 41.41 6,305,206.61
receivable with the top five entities
Total 33,324,100.20 41.41 6,305,206.61
(6). Accounts receivable derecognized due to transfer of financial assets
□Applicable √Not applicable
(7). Amounts of assets and liabilities formed by the transfer of accounts receivable and
continuing involvement
□Applicable √Not applicable
Other notes:
□Applicable √Not applicable
97 / 180
Semi-annual Report for 2022
6. Accounts receivable financing
□Applicable √Not applicable
7. Prepayments
(1). Presentation of prepayment by account age
√Applicable □Not applicable
Unit: RMB
Closing balance Opening balance
Account age
Amount Proportion (%) Amount Proportion (%)
Within 1 year 354,712,671.92 98.20 868,252,359.56 99.21
1 to 2 years 4,894,426.80 1.35 6,212,572.92 0.71
2 to 3 years 1,281,986.00 0.35 602,777.00 0.07
Over 3 years 350,000.00 0.10 100,000.00 0.01
Total 361,239,084.72 100 875,167,709.48 100
Explanation for failure to settle the prepayments with an account age longer than one year and in
important amounts:
Nil
(2). Prepayments to the five suppliers with the highest closing balance
√Applicable □Not applicable
Proportion in total
Debtor Closing balance closing balance of
prepayments (%)
Binzhou Yellow River Oasis Agricultural Development
57,853,830.00 16.02
Co., Ltd.
INDUSTRIAL PESQUERA SANTA PRISCILA S.A. 46,430,455.57 12.85
Sociedad Nacional de Galapagos C.A. SONGA 45,440,739.74 12.58
MARINASOL S.A. 30,413,936.01 8.42
PROCESADORA DE MARISCOS DE EL ORO
29,493,673.49 8.16
PROMARO S.A.
Total 209,632,634.81 58.03
Other statements
□Applicable √Not applicable
8. Other receivables
Presentation of items
√Applicable □Not applicable
Unit: RMB
Item Closing balance Opening balance
Interest receivable 3,107,715.32 92,249,275.44
Other receivables 743,611,270.51 1,263,675,007.52
Total 746,718,985.83 1,355,924,282.96
Other notes:
□Applicable √Not applicable
Interest receivable
(1). Classification of interest receivable
√Applicable □Not applicable
Unit: RMB
98 / 180
Semi-annual Report for 2022
Item Closing balance Opening balance
Cash occupation fee for 3,107,715.32 92,249,275.44
receivables
Total 3,107,715.32 92,249,275.44
(2). Significant overdue interest
□Applicable √Not applicable
(3). Bad debt provision
□Applicable √Not applicable
Other notes:
□Applicable √Not applicable
Dividend receivable
(1). Dividend receivable
□Applicable √Not applicable
(2). Important dividend receivable with an account age longer than 1 year
□Applicable √Not applicable
(3). Bad debt provision
□Applicable √Not applicable
Other notes:
□Applicable √Not applicable
Other receivables
(1). Disclosure based on account age
√Applicable □Not applicable
Unit: RMB
Account age Closing book balance
Within 1 year 260,642,903.54
1 to 2 years 460,810,668.28
2 to 3 years 6,879,340.47
Over 3 years 19,386,332.60
Bad debt provision for other receivables -4,107,974.38
Total 743,611,270.51
(2). Classification based on the nature of accounts
√Applicable □Not applicable
Unit: RMB
Nature of receivable Closing book balance Opening book balance
Financial assistance receivable 466,228,109.38 1,103,178,748.00
from joint ventures
Withholdings, deposit and 259,280,900.18 125,377,518.60
margin
Receivables from export tax 17,268,258.54 34,759,474.84
rebate
Reserve 834,002.41 359,266.08
Total 743,611,270.51 1,263,675,007.52
99 / 180
Semi-annual Report for 2022
(3). Bad debt provision
√Applicable □Not applicable
Unit: RMB
Phase I Phase 2 Phase 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 on January 1, 4,355,084.46 4,355,084.46
2022
Balance on January 1,
2022 in current period
Provision made in the 111,995.39 111,995.39
current period
Current reversal 359,105.47 359,105.47
Balance on June 30, 4,107,974.38 4,107,974.38
2022
Significant changes in the book balance of other receivables with changes in loss provisions:
□Applicable √Not applicable
Basis for the bad debt provision made in the current period and for assessing whether the credit risk
of financial instruments has increased significantly:
□Applicable √Not applicable
(4). Provisions for bad debts
√Applicable □Not applicable
Unit: RMB
Amount of change during the
current period
Category Opening balance Closing balance
Recovery or
Provision
reversal
Bad debt provision for 4,355,084.46 111,995.39 359,105.47 4,107,974.38
other receivables
Total 4,355,084.46 111,995.39 359,105.47 4,107,974.38
In which the recovered or reversed amount is important:
□Applicable √Not applicable
(5). Other receivables actually written off during the current period
□Applicable √Not applicable
(6). Other receivables from the five debtors with highest closing balance
√Applicable □Not applicable
Unit: RMB
Weight in the Bad debt
Nature of Account total closing provision
Debtor Closing balance
receivable age balance of other Closing
receivables (%) balance
Yiwu Tonghui Shangbo Real Estate Financial 258,477,909.38 1-2 years 34.57 -
Co., Ltd. assistance
Yiwu Handing Shangbo Real Estate Financial 207,750,200.00 1-2 years 27.78 -
Co., Ltd. assistance
100 / 180
Semi-annual Report for 2022
Yiwu Municipal Bureau of Finance Land bid deposit 132,840,000.00 Within 1 17.77 -
year
Yisha Chengdu International Trade Temporary loan 40,000,000.00 Within 1 5.35 -
City Co., Ltd. year
SUN OCEAN DEVELOPMENTS Margin 4,026,840.00 Within 1 0.54 -
LIMITED year
Total / 643,094,949.38 / 86.01 -
(7). Receivables involving government grants
√Applicable □Not applicable
Unit: RMB
Government
subsidy Closing Closing Estimated time, amount and basis for
Debtor
project balance Aging collection
name
Yiwu Taxation It is expected to be fully recovered by the
Bureau, State Export tax Within 1 end of October 2022, according to the
17,268,258.54
Administration rebate year "Interim Regulations of the People's
of Taxation Republic of China on Value-Added Tax"
Other notes:
Nil
(8). Other receivables derecognized due to transfer of financial assets
□Applicable √Not applicable
(9). Amounts of assets and liabilities formed by the transfer of accounts receivable and
continuing involvement
□Applicable √Not applicable
Other notes:
□Applicable √Not applicable
9. Inventory
(1). Classification of inventory
√Applicable □Not applicable
Unit: RMB
Closing balance Opening balance
Provision for Provision for
inventory inventory
Item depreciation/provision depreciation/provision
Book balance Book value Book balance Book va
for impairment of for impairment of
contract performance contract performance
cost cost
Raw materials 470,280.64 - 470,280.64 723,775.34 - 723,7
Finished goods 532,706,313.54 - 532,706,313.54 75,079,555.38 - 75,079,5
Development
123,683,595.74 28,303,338.06 95,380,257.68 347,123,927.41 28,303,338.06 318,820,5
cost
Development
1,054,046,726.67 - 1,054,046,726.67 928,561,037.31 - 928,561,0
products
Work-in-progress
2,151,516.13 - 2,151,516.13 4,217,610.61 - 4,217,6
materials
Total 1,713,058,432.72 28,303,338.06 1,684,755,094.66 1,355,705,906.05 28,303,338.06 1,327,402,5
101 / 180
Semi-annual Report for 2022
(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
Item Opening balance Closing balance
Charge-off
Provision Others Others
or write-off
Development 28,303,338.06 - - - - 28,303,338.06
cost
Total 28,303,338.06 - - - - 28,303,338.06
(3). Closing balance of inventory containing capitalized borrowing costs
√Applicable □Not applicable
On June 30, 2022, the inventory with a book value of RMB 35,797,443.87 (December 31, 2021:
RMB 35,797,443.87) was formed by capitalization of borrowing costs.
(4). Amortization of contract performance cost during the current period
□Applicable √Not applicable
Other notes:
√Applicable □Not applicable
Inventory-Development Cost Unit: RMB-yuan Currency: RMB
Item Opening balance Increase in the Decrease in the Closing balance
current period current period
Haicheng Phase
67,907,950.27 - - 67,907,950.27
I Business Street
Haicheng Phase
II Business 279,215,977.14 68,749,158.36 292,189,490.03 55,775,645.47
Street
Total 347,123,927.41 68,749,158.36 292,189,490.03 123,683,595.74
Inventory-Developed Products Unit: RMB-yuan Currency: RMB
Item Opening Increase in the Delivered Other Closing balance
balance current period during current transfer-out
reporting
period
Haicheng
Phase I
915,616,130.79 90,000.00 - - 915,706,130.79
Business
Street
Haicheng
Phase II
- 292,189,490.03 153,848,894.15 - 138,340,595.88
Business
Street
Shuangchuang
12,944,906.52 - 1,405,473.53 11,539,432.99 -
Building
Total 928,561,037.31 292,279,490.03 155,254,367.68 11,539,432.99 1,054,046,726.67
10. Contract assets
(1).Overview of contract assets
□Applicable √Not applicable
102 / 180
Semi-annual Report for 2022
(2).Amount of and reasons for material changes to book value during the reporting period
□Applicable √Not applicable
(3).Provision for impairment of contract assets in the current period
□Applicable √Not applicable
Other notes:
□Applicable √Not applicable
11. Held-for-sale assets
□Applicable √Not applicable
12. Non-current assets due within one year
□Applicable √Not applicable
13. Other current assets
√Applicable □Not applicable
Unit: RMB
Item Closing balance Opening balance
To-be-deducted input tax 161,704,695.57 234,080,141.55
Contract acquisition cost 9,594,785.76 7,629,349.00
To-be-certified input tax 3,927,978.21 4,357,934.03
Entrusted loans to the market
2,110,199.39 2,780,294.82
traders
Less: bad debt provision for
-185,500.00 -185,500.00
entrusted loans
Total 177,152,158.93 248,662,219.40
Other notes:
Nil
14. Debt investments
(1).Overview of debt investment
□Applicable √Not applicable
(2).Important debt investment as of the close of the reporting period
□Applicable √Not applicable
(3).Provision for impairment
□Applicable √Not applicable
15. Other debt investments
(1).Overview of other debt investment
□Applicable √Not applicable
(2).Important other debt investment as of the close of the reporting period
□Applicable √Not applicable
(3).Provision for impairment
□Applicable √Not applicable
Other notes:
□Applicable √Not applicable
103 / 180
Semi-annual Report for 2022
16. Long-term receivables
(1) Overview of long-term receivables
√Applicable □Not applicable
Unit: RMB
Closing balance Opening balance Range
of
Item Bad debt Bad debt
Book balance Book value Book balance Book value discount
provision provision
rate
Financial assistance 262,871,244.84 - 262,871,244.84 214,752,001.51 - 214,752,001.51
receivable from joint
ventures
Guarantee deposit 7,663,087.46 - 7,663,087.46 7,555,361.89 - 7,555,361.89
Total 270,534,332.30 - 270,534,332.30 222,307,363.40 - 222,307,363.40 /
(2) Bad debt provision
□Applicable √Not applicable
(3) Long-term receivables derecognized due to transfer of financial assets
□Applicable √Not applicable
(4) Amounts of assets and liabilities formed by the transfer of long-term receivables and
continuing involvement
□Applicable √Not applicable
Other notes:
□Applicable √Not applicable
104 / 180
Semi-annual Report for 2022
17. Long-term equity investment
√Applicable □Not applicable
Unit: RMB
Change in the current period
Investment Closing
Adjustment
Opening amount gains or losses Closing amount balance of
Investee Additional Decrease in of other Declared a cash
Balance recognized with Balance impairment
investment investment comprehen dividend or profit
the equity provision
sive income
method
1. Joint ventures
Yiwu Shanglv 383,668,354.21 - - 6,573,467.38 - - 390,241,821.59 -
Yiwu Rongshang
217,387,537.94 - - 473,231,114.45 - 580,865,600.00 109,753,052.39 -
Property
Yiwu Chuangcheng
88,063,325.80 - - 107,911,035.49 - 60,000,000.00 135,974,361.29 -
Property
Others 60,140,520.92 - - 14,358,584.28 - - 74,499,105.20 3,327,216.16
Sub-total 749,259,738.87 - - 602,074,201.60 - 640,865,600.00 710,468,340.47 3,327,216.16
2. Associates
Huishang Micro-finance 82,824,696.64 - - 1,060,693.70 - - 83,885,390.34 -
Huishang Redbud equity 70,996,992.21 - - -3,372,135.02 - - 67,624,857.19 -
Chouzhou Financial
426,020,849.24 - - 35,669,149.76 - - 461,689,999.00 -
Lease
Yiwu China
Commodities City
9,508,049.22 - - - - - 9,508,049.22 9,508,049.22
Investment Management
Co., Ltd.
Yiwu China
Commodities City
Fuxing Investment 102,918,559.00 - - - - - 102,918,559.00 -
Center (limited
partnership)
Pujiang Lvgu 459,281,437.25 - - 9,866,449.40 - 88,200,000.00 380,947,886.65 -
CCCP 2,756,938,444.33 - - 101,323,992.37 - - 2,858,262,436.70 -
Yiwu Hongyi Equity
887,872,262.46 - - 7,460,777.81 -78,548.99 - 895,254,491.28 -
Investment Fund
105 / 180
Semi-annual Report for 2022
Partnership (limited
partnership)
Others 239,669,479.00 20,118,692.20 24,500,000.00 -5,209,185.36 13,845,353.06 216,233,632.78 -
Sub-total 5,036,030,769.35 20,118,692.20 24,500,000.00 146,799,742.66 -78,548.99 102,045,353.06 5,076,325,302.16 9,508,049.22
Total 5,785,290,508.22 20,118,692.20 24,500,000.00 748,873,944.26 -78,548.99 742,910,953.06 5,786,793,642.63 12,835,265.38
Other statements
Provision for impairment of long-term equity investment：
Unit: RMB
Investee Opening balance Increase in the Decrease in the Closing balance
current period current period
Yiwu China Commodities City Investment Management
9,508,049.22 - - 9,508,049.22
Co., Ltd. (Note 1)
Others 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 "Funds of Funds"), the Fund of
Funds has invested in 12 sub-funds including Yiwu Shangfu Chuangzhi Investment Center (LLP) (hereinafter referred to as "Shangfu Chuangzhi Fund").
CCCF, as a limited partner, subscribed RMB 998 million in the FOF, accounting for 49.9% of the subscribed capital. The paid-in capital was RMB 102.92
million, and there is no deadline for the payment for the unpaid capital contribution. The other limited partner of the FOF is Fuxing. CCCF also contributed
RMB 9.8 million, 49% of total shares, to jointly establish Yiwu China Commodities City Investment Management Co., Ltd. (hereinafter referred to as “CCCIM”)
with Fuxing as the general partner of the above-mentioned FOF and sub-funds. The FoF and CCCIM are both under the control of Fuxing and are associates
of CCCF. The above paid-in capital contribution made by CCCF to the FoF has been contributed to Shangfu Chuangzhi Fund together with the capital
contribution of Fuxing to the FoF through the FoF as a limited partner. With the capital contribution from the FoF as a limited partner and CCCF’s capital
contribution to Shangfu Chuangzhi Fund as a limited partner, Shangfu Chuangzhi Fund made capital contribution of RMB820.54million to subscribe for the
increase in the registered capital of Hubei Provincial Asset Management Co., Ltd. to acquire 22.667% equity therein.
In 2018, CCCF learned during its after-investment follow-up management that Fuxing and its actual controller ZHU Yidong were suspected of having
committed a criminal offense and the 22.667% equity held by Shangfu Chuangzhi Fund in Hubei Provincial Asset Management Co., Ltd. was frozen by the
Public Security Bureau of Shanghai due to Fuxing’s contribution to the sources of the capital contribution. The Group believes that, on June 30, 2022, the
Group’s investment in the Fund of Funds and Shangfu Chuangzhi Fund was non-related to Fuxing’s investment, and there was no indication of impairment of
the underlying assets. Although they were still frozen, they had no effect on the Group’s equity. Therefore, there was no impairment. However, for the equity
investment managed for the Yiwu CCC, a full impairment provision has been made since 2018. See Notes VII.81 and Notes XIV. 1 for details.
106 / 180
Semi-annual Report for 2022
18. Other equity instruments investment
(1).Overview of other equity instruments investment
√Applicable □Not applicable
Unit: RMB
Item Closing balance Opening balance
Shenwan Hongyuan Group Co., Ltd. 538,083,278.52 642,187,968.77
Total 538,083,278.52 642,187,968.77
(2).Non-trading equity instruments investment
□Applicable √Not applicable
Other notes:
□Applicable √Not applicable
19. Other non-current financial assets
√Applicable □Not applicable
Unit: RMB
Item Closing balance Opening balance
Unlisted equity investment 213,607,388.98 213,607,388.98
PE investment 1,319,445,253.54 1,263,329,797.13
NEEQ equity investment 40,035,175.00 47,882,069.30
Total 1,573,087,817.52 1,524,819,255.41
Other notes:
Nil
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 3,062,389,558.31 438,760,984.63 3,501,150,542.94
2. Increase in the current
8,520,184.69 3,019,248.30 11,539,432.99
period
(2) Inventory\fixed
assets\construction in progress 8,520,184.69 3,019,248.30 11,539,432.99
changed into property investment
3. Decrease in the current
4,183,242.35 - 4,183,242.35
period
(2) Other changeover 4,183,242.35 - 4,183,242.35
4. Closing balance 3,066,726,500.65 441,780,232.93 3,508,506,733.58
II. Accumulated depreciation and accumulated amortization
1. Opening balance 445,818,997.23 81,395,145.25 527,214,142.48
2. Increase in the current
59,202,855.19 5,636,528.26 64,839,383.45
period
(1) Provision or amortization 59,202,855.19 5,636,528.26 64,839,383.45
3. Decrease in the current
- - -
period
4. Closing balance 505,021,852.42 87,031,673.51 592,053,525.93
III. Depreciation provision
1. Opening balance - - -
4. Closing balance - - -
IV. Book value
1. Closing book value 2,561,704,648.23 354,748,559.42 2,916,453,207.65
107 / 180
Semi-annual Report for 2022
2. Opening book value 2,616,570,561.08 357,365,839.38 2,973,936,400.46
(2). Information of the investment real estate for which the property right certificate has not
yet been obtained:
√Applicable □Not applicable
Unit: RMB
Reasons for having not
Item Book value obtained the ownership
certificate
Office building of the auxiliary 99,404,674.81 Completion settlement not
project in western Yiwu completed
Total 99,404,674.81
Other statements
√Applicable □Not applicable
On June 30, 2022, amount of the the investment real estate for which the property right
certificate has not yet been obtained was RMB 99,404,674.81.
21. Fixed assets
Presentation of items
√Applicable □Not applicable
Unit: RMB
Item Closing balance Opening balance
Fixed assets 4,862,726,129.51 5,078,590,929.75
Total 4,862,726,129.51 5,078,590,929.75
Other notes:
Nil
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 7,561,987,149.45 3,867,198,470.98 13,325,615.62 11,442,511,236.05
2. Increase in the current
- 4,230,732.51 57,522.12 4,288,254.63
period
(1) Purchase - 3,773,750.97 57,522.12 3,831,273.09
(2) Changeover from
- 456,981.54 - 456,981.54
construction in progress
3. Decrease in the
42,100,173.18 6,963,910.64 998,753.63 50,062,837.45
current period
(1) Disposal or
- 6,963,910.64 998,753.63 7,962,664.27
retirement
(2) Other changeover 42,100,173.18 - - 42,100,173.18
4. Closing balance 7,519,886,976.27 3,864,465,292.85 12,384,384.11 11,396,736,653.23
II. Accumulated depreciation
1. Opening balance 2,729,655,577.54 3,154,632,991.35 8,468,269.56 5,892,756,838.45
2. Increase in the current
142,055,011.31 36,414,826.05 552,993.28 179,022,830.64
period
(1) Provision 142,055,011.31 36,414,826.05 552,993.28 179,022,830.64
3. Decrease in the current
2,010,522.58 6,056,354.13 865,736.51 8,932,613.22
period
(1) Disposal or
- 6,056,354.13 865,736.51 6,922,090.64
retirement
(2) Other changeover 2,010,522.58 - - 2,010,522.58
4. Closing balance 2,869,700,066.27 3,184,991,463.27 8,155,526.33 6,062,847,055.87
108 / 180
Semi-annual Report for 2022
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 4,179,023,442.15 679,473,829.58 4,228,857.78 4,862,726,129.51
2. Opening book value 4,361,168,104.06 712,565,479.63 4,857,346.06 5,078,590,929.75
(2). Temporarily idle fixed assets
□Applicable √Not applicable
(3). Fixed assets leased in through financial lease
√Applicable □Not applicable
Unit: RMB
Original book Accumulated Impairment
Item Book value
value depreciation provision
General 6,084,431.99 5,841,054.71 - 243,377.28
equipment
(4). Fixed assets leased out through operating lease
□Applicable √Not applicable
(5). 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
Huangyuan Clothing Market 252,052,729.34 Completion settlement not
completed
CCC Hotel 52,701,193.94 Completion settlement not
completed
Liaoning Xiliu Yiwu China 357,262,319.84 Completion settlement not
Commodities City completed
The hotel as a supporting work 456,499,084.67 Completion settlement not
for Liaoning Xiliu Yiwu China completed
Commodities City
Total 1,118,515,327.79
Other notes:
√Applicable □Not applicable
The impairment of fixed assets was RMB 471,163,467.85, which was the impairment of fixed
assets of Haicheng Yiwu China Commodities City.
As of June 30, 2022, the amount of fixed assets for which the property right certificate has not
yet been obtained due to the pending final settlement was RMB 1,118,515,327.79.
Disposal of fixed assets
□Applicable √Not applicable
22. Construction in progress
Presentation of items
√Applicable □Not applicable
Unit: RMB
Item Closing balance Opening balance
Construction in progress 1,698,097,157.31 1,090,577,963.27
Total 1,698,097,157.31 1,090,577,963.27
Other notes:
Nil
109 / 180
Semi-annual Report for 2022
Construction in progress
(1). Overview of construction in progress
√Applicable □Not applicable
Unit: RMB
Closing balance Opening balance
Item
Impairment Impairment
Book balance Book value Book balance Book value
provision provision
West Yiwu International Means of
191,458,192.21 - 191,458,192.21 212,637,292.78 - 212,637,292.78
Production Market Auxiliary Project
Liaoning Xiliu Yiwu China
Commodities City Commerce Phase 32,290,506.33 -4,635,059.96 27,655,446.37 32,290,506.33 -4,635,059.96 27,655,446.37
I Project—Hotel Project
The Zhimei Dachen tourismproject 60,751,584.47 - 60,751,584.47 58,285,106.90 - 58,285,106.90
The Chian West Sea tourism project 70,446,792.08 - 70,446,792.08 68,040,671.22 - 68,040,671.22
The Yiwu Comprehensive Bonded
916,476,466.50 - 916,476,466.50 357,114,238.02 - 357,114,238.02
Zone Project
Zone II East Parking Lot Project 218,439,962.05 - 218,439,962.05 276,099,117.75 - 276,099,117.75
Yiwu Digital Trade Industrial Park 86,829,745.85 - 86,829,745.85 60,070,777.68 - 60,070,777.68
Logistics Park S2 83,067,635.14 - 83,067,635.14 - - -
Other projects 42,971,332.64 - 42,971,332.64 30,675,312.55 - 30,675,312.55
Total 1,702,732,217.27 -4,635,059.96 1,698,097,157.31 1,095,213,023.23 -4,635,059.96 1,090,577,963.27
(2). Changes to important construction in progress during the current period
√Applicable □Not applicable
110 / 180
Semi-annual Report for 2022
Unit: RMB10,000
In which:
Amount Other Ratio of Interest
Increase capitalized
Opening changed decrease Closing accumulated Accumulated capitalization
in the Progress of interest in
Item Budget amount into in the amount investment capitalized ratio for the Source of funds
current project the
Balance fixed current Balance to budget interest current
period current
assets period (%) period (%)
period
West Yiwu
International
Means of Under
133,916.00 21,263.73 - - 2,117.91 19,145.82 83.76 9,938.28 - - Self-owned/financing
Production construction
Market Auxiliary
Project
Liaoning Xiliu
Yiwu China
Commodities
City Commerce 180,000.00 3,229.05 - - - 3,229.05 96.32 Shutdown 154.61 - - Self-owned/financing
Phase I
Project—Hotel
Project
The Zhimei
Under
Dachen 6,000.00 5,828.51 246.65 - - 6,075.16 101.25 - - - Self-owned
construction
tourismproject
The Chian West
Under
Sea tourism 8,000.00 6,804.07 240.61 - - 7,044.68 88.06 - - - Self-owned
construction
project
The Yiwu
Comprehensive Under
624,250.00 35,711.42 55,936.22 - - 91,647.64 76.93 - - - Self-owned
Bonded Zone construction
Project
Zone II East
Parking Lot 60,706.00 27,609.91 - - 5,765.91 21,844.00 46.37 Acceptance - - - Self-owned
Project
Yiwu Digital
Under
Trade Industrial 39,579.00 6,007.08 2,675.90 - - 8,682.98 21.94 - - - Self-owned
construction
Park
111 / 180
Semi-annual Report for 2022
Logistics Park Under
108,683.00 - 8,306.76 - - 8,306.76 7.64 - - - Self-owned
S2 construction
Other projects Under
3,067.53 1,275.30 45.70 - 4,297.13 - - - - Self-owned
construction
Total 1,161,134.00 109,521.30 68,681.44 45.70 7,883.82 170,273.22 / / 10,092.89 - / /
(3). Provision made for the impairment of construction in progress in the current period
□Applicable √Not applicable
Other statements
√Applicable □Not applicable
The impairment value of the project under construction is RMB 4,635,059.96, which is the provision impairment of Liaoning Xiliu Yiwu China Commodities
City Commerce Phase I Project—Hotel Project.
Construction materials
□Applicable √Not applicable
112 / 180
Semi-annual Report for 2022
23. Productive biological assets Productive biological assets
Productive biological asset measured by cost
□Applicable √Not applicable
(1). Productive biological asset measured by fair value
□Applicable √Not applicable
Other statements
□Applicable √Not applicable
(2). Productive biological asset measured by cost
□Applicable √Not applicable
24. Oil and gas assets
□Applicable √Not applicable
25. Right-of-use assets
√Applicable □Not applicable
Unit: RMB
Buildings and
Item Land Total
structures
I. Original book value
1. Opening balance 128,748,477.02 125,879,033.69 254,627,510.71
4. Closing balance 128,748,477.02 125,879,033.69 254,627,510.71
II. Accumulated depreciation
1. Opening balance 21,694,272.46 7,586,161.11 29,280,433.57
2. Increase in the current 8,287,864.11 5,801,157.21 14,089,021.32
period
(1) Provision 8,287,864.11 5,801,157.21 14,089,021.32
4. Closing balance 29,982,136.57 13,387,318.32 43,369,454.89
III. Depreciation provision
1. Opening balance - - -
4. Closing balance - - -
IV. Book value
1. Closing book value 98,766,340.45 112,491,715.37 211,258,055.82
2. Opening book value 107,054,204.56 118,292,872.58 225,347,077.14
Other notes:
Nil
26. Intangible assets
(1). Overview of intangible assets
√Applicable □Not applicable
Unit: RMB
113 / 180
Semi-annual Report for 2022
Item Land use right Software Total
I. Original book value
1. Opening balance 5,620,777,656.44 72,090,272.16 5,692,867,928.60
2. Increase in the 264,349,500.00 543,574.26 264,893,074.26
current period
(1) Purchase 264,349,500.00 543,574.26 264,893,074.26
3. Decrease in the current - - -
period
4. Closing balance 5,885,127,156.44 72,633,846.42 5,957,761,002.86
II. Accumulated amortization
1. Opening balance 1,642,066,103.72 7,237,162.53 1,649,303,266.25
2. Increase in the 73,257,337.22 2,612,881.03 75,870,218.25
current period
(1) Provision 73,257,337.22 2,612,881.03 75,870,218.25
3. Decrease in the - - -
current period
4. Closing balance 1,715,323,440.94 9,850,043.56 1,725,173,484.50
III. Depreciation provision
1. Opening balance - - -
4. Closing balance - - -
IV. Book value
1. Closing book value 4,169,803,715.50 62,783,802.86 4,232,587,518.36
2. Opening book value 3,978,711,552.72 64,853,109.63 4,043,564,662.35
At the end of the period, the percentage of the intangible assets formed through the Company's
internal research and development in the balance of intangible assets was 0.75%
(2). Land use right for which the ownership certificate has not been obtained
□Applicable √Not applicable
Other notes:
□Applicable √Not applicable
27. Development expenses
√Applicable □Not applicable
Unit: RMB
Increase in the Decrease in the
Opening current period current period Closing
Item amount Internal amount
Recognized as
Balance development Balance
intangible assets
expenditure
The development project 6,359,814.02 12,325,510.03 - 18,685,324.05
for platform “chinagoods”
Total 6,359,814.02 12,325,510.03 - 18,685,324.05
Other notes:
Nil
28. Goodwill
(1). Original book value of goodwill
□Applicable √Not applicable
114 / 180
Semi-annual Report for 2022
(2). Provision for goodwill impairment
□Applicable √Not applicable
(3). Information on the assets group or combination of assets groups to which the goodwill
belongs
□Applicable √Not applicable
(4). Goodwill impairment test process, key parameters (e.g. growth rate in the forecast
period, growth rate in the stable period, profit margin, discount rate, forecast period for
the estimate of present value of future cash flows, if applicable) and recognition of
goodwill impairment loss
□Applicable √Not applicable
(5). Impact of goodwill impairment test
□Applicable √Not applicable
Other notes:
□Applicable √Not applicable
29. Long-term prepaid expenses
√Applicable □Not applicable
Unit: RMB
Amortized
Increase in the
Item Opening balance amount in the Closing balance
current period
current period
Decoration of 174,871,839.30 - 13,593,423.11 161,278,416.19
buildings and
structures
Advertising 13,312,537.13 9,469,811.06 8,472,802.77 14,309,545.42
facilities
Total 188,184,376.43 9,469,811.06 22,066,225.88 175,587,961.61
Other notes:
Nil
30. Deferred income tax assets/deferred income tax liabilities
(1). Deferred income tax assets having not been offset
√Applicable □Not applicable
Unit: RMB
Closing balance Opening balance
Item Deductible Deferred income Deductible Deferred income
temporary tax temporary tax
difference assets difference assets
Provision for impairment of assets 14,868,883.20 3,717,220.80 18,766,810.88 4,691,702.72
Unrealized profits of internal 1,094,793.12 273,698.28 1,094,793.10 273,698.28
transactions
Deductible losses 9,544,749.40 2,386,187.35 10,635,059.71 2,658,764.93
Recognized but unpaid liabilities 269,749,328.20 67,437,332.05 359,852,941.25 89,963,235.31
Overspent advertising cost 8,497,106.53 2,124,276.63 8,497,106.53 2,124,276.63
Changes in the fair value of other 97,265,682.48 24,316,420.62 87,763,868.16 21,940,967.04
non-current financial assets
Change in fair value of other equity 15,542,152.48 3,885,538.12 - -
instruments investment
115 / 180
Semi-annual Report for 2022
Changes infair value of trading 1,654,920.00 413,730.00 - -
financial assets
Right-of-use assets and lease liabilities 4,575,914.17 1,143,978.54 3,291,235.93 822,808.98
Asset-related government grants 79,879,800.00 19,969,950.00 53,046,300.00 13,261,575.00
Total 502,673,329.58 125,668,332.39 542,948,115.56 135,737,028.89
(2). Deferred income tax liabilities having not been offset
√Applicable □Not applicable
Unit: RMB
Closing balance Opening balance
Item Taxable Deferred Deferred income
Taxable temporary
temporary income tax tax
difference
difference Debt Debt
Asset evaluation appreciation for 785,231.24 196,307.81 879,727.84 219,931.94
merger of the enterprises not under
common control
Change in fair value of other equity - - 88,562,537.79 22,140,634.45
instruments investment
Changes infair value of other 357,882,702.12 89,470,675.53 357,773,989.10 89,443,497.28
non-current financial assets
Changes infair value of trading - - 373,599.00 93,399.75
financial assets
Total 358,667,933.36 89,666,983.34 447,589,853.73 111,897,463.42
(3). Deferred income tax assets or liabilities presented in net amount after offsetting
□Applicable √Not applicable
(4). Breakdown of unrecognized deferred income tax assets
√Applicable □Not applicable
Unit: RMB
Item Closing balance Opening balance
Deductible temporary 477,308,792.73 485,392,932.16
difference
Deductible losses 951,481,265.31 1,090,714,817.48
Total 1,428,790,058.04 1,576,107,749.64
(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
2022 245,346,275.18
2023 145,652,609.01 145,652,609.01
2024 177,875,157.18 219,603,443.50
2025 286,076,024.63 236,606,485.47
2026 257,575,644.11 243,506,004.32
2027 84,301,830.38
Total 951,481,265.31 1,090,714,817.48 /
Other notes:
√Applicable □Not applicable
116 / 180
Semi-annual Report for 2022
The Group believes that, the deductible temporary differences including the aforementioned
provision for asset impairment and the deductible losses of some subsidiaries can be deducted in
the foreseeable future, and it is expected that the Group will have sufficient pre-tax profit for
deduction during the reversing period. Therefore, the Group deemed it necessary to recognize the
above deferred income tax assets.
31. Other non-current assets
√Applicable □Not applicable
Unit: RMB
Closing balance Opening balance
Item Impairment Impairment
Book balance Book value Book balance Book value
provision provision
Prepaid land
138,253,316.00 - 138,253,316.00 138,253,316.00 - 138,253,316.00
transfer fees
Prepaid equity
transfer 67,395,000.00 - 67,395,000.00 67,395,000.00 - 67,395,000.00
consideration
Prepayment
for renovation
works and 10,172,014.19 - 10,172,014.19 5,681,334.45 - 5,681,334.45
prepaid
decoration rent
Total 215,820,330.19 - 215,820,330.19 211,329,650.45 - 211,329,650.45
Other notes:
Nil
32. Short-term borrowings
(1). Classification of short-term borrowings
√Applicable □Not applicable
Unit: RMB
Item Closing balance Opening balance
Credit loans 587,435,842.88 942,736,046.04
Total 587,435,842.88 942,736,046.04
Note to the classification of short-term borrowings:
Nil
(2). Overdue short-term borrowings
□Applicable √Not applicable
Other notes:
√Applicable □Not applicable
As of June 30, 2022, the annual interest rate of the above-mentioned short-term financing
bonds was 1.20%-4.151% (December 31, 2021: 1.20%-3.915%).
33. Held-for-trading financial liabilities
□Applicable √Not applicable
34. Derivative financial liabilities
□Applicable √Not applicable
35. Notes payable
□Applicable √Not applicable
36. Accounts payable
(1). Presentation of accounts payable
√Applicable □Not applicable
117 / 180
Semi-annual Report for 2022
Unit: RMB
Item Closing balance Opening balance
Accounts payable for market 145,560,620.49 301,995,294.63
and auxiliary works projects
Trade payables 67,636,814.13 72,330,560.78
Accounts payable for real 29,122,613.44 33,317,557.65
estate projects
Accounts payable for 23,879,296.10 58,722,226.25
procurement for the hotel
project
Others 27,345,393.47 26,994,789.71
Total 293,544,737.63 493,360,429.02
(2). Important accounts payable with age over 1 year
√Applicable □Not applicable
Unit: RMB
Reasons for not being paid or
Item Closing balance
carried forward
Accounts payable for real estate 8,192,556.44 Settlement has not been
projects completed or the projects are
within the warranty periods
Total 8,192,556.44 /
Other notes:
√Applicable □Not applicable
The accounts payable are free of interest and are generally paid within two months
after receipt of the payment notice or based on the project contracts and progress of
projects. The balance payments for the projects are made after completion of
settlement.
37. Advances from customers
(1). Presentation of advances from customers
√Applicable □Not applicable
Unit: RMB
Item Closing balance Opening balance
Rental advances 112,065,459.59 142,605,296.83
Others 1,285,875.01 10,961,014.30
Total 113,351,334.60 153,566,311.13
(2). Important advances with the age over 1 year
□Applicable √Not applicable
Other notes:
√Applicable □Not applicable
As the advances from customers are mainly derived from the advance rents of auxiliary housing
businesses and investment real estate, with small individual amount. As of June 30, 2022, there
were no individual large-sum advances from customers with an age of more than 1 year.
38. Contract liabilities
(1).Overview of contract liabilities
√Applicable □Not applicable
Unit: RMB
Item Closing balance Opening balance
Advances from customers for 1,910,279,223.75 2,996,965,006.91
use fee of shops
118 / 180
Semi-annual Report for 2022
Advances from customers for 616,544,490.17 762,448,893.76
goods
Advances from customers for 47,615,087.77 66,129,057.15
advertising fee
Advances from customers for 35,288,216.69 178,756,399.38
housing purchase
Advances from customers for 12,201,321.47 14,150,457.59
use fee of networking cables
Advances from customers for 9,544,302.02 17,997,985.07
loyalty ofbrands
Others 19,107,986.34 21,971,424.98
Total 2,650,580,628.21 4,058,419,224.84
(2).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
Item Opening balance Closing balance
current period current period
I. Short-term compensation 241,452,764.09 196,297,946.47 275,786,328.50 161,964,382.06
II. Post employment benefits – 2,511,991.29 13,868,164.08 13,817,087.12 2,563,068.25
defined contribution plan
III. Severance benefits - 480,262.75 480,262.75 -
Total 243,964,755.38 210,646,373.30 290,083,678.37 164,527,450.31
(2).Presentation of short-term compensation
√Applicable □Not applicable
Unit: RMB
Increase in the Decrease in the
Item Opening balance Closing balance
current period current period
1. Salary, bonus, allowance and 240,122,029.99 155,887,390.99 235,995,029.80 160,014,391.18
subsidy
2. Employee benefits - 15,580,447.03 15,580,447.03 -
3. Social security contribution 1,238,946.85 8,238,165.65 8,217,640.85 1,259,471.65
In which: contribution to medical 1,101,887.73 7,988,874.04 7,968,306.72 1,122,455.05
insurance scheme
Contribution to 28,926.87 219,689.68 219,732.20 28,884.35
work-related injury insurance
scheme
Contribution to maternity 108,132.25 29,601.93 29,601.93 108,132.25
insurance scheme
4. Housing provident fund 79,760.00 11,878,190.00 11,882,680.00 75,270.00
5. Contribution to trade union 12,027.25 4,713,752.80 4,110,530.82 615,249.23
fund and employee education
fund
Total 241,452,764.09 196,297,946.47 275,786,328.50 161,964,382.06
(3).Presentation of defined contribution plan
√Applicable □Not applicable
Unit: RMB
Item Opening Increase in the Decrease in the Closing
119 / 180
Semi-annual Report for 2022
balance current period current period balance
1. Contribution to the basic 2,342,403.40 13,390,310.31 13,342,873.39 2,389,840.32
endowment insurance
scheme
2. Contribution to the 169,587.89 477,853.77 474,213.73 173,227.93
unemployment insurance
scheme
Total 2,511,991.29 13,868,164.08 13,817,087.12 2,563,068.25
Other notes:
□Applicable √Not applicable
40. Tax payable
√Applicable □Not applicable
Unit: RMB
Item Closing balance Opening balance
VAT 1,193,620.15 83,766,540.18
Business tax -240,013.55 -240,013.55
Corporate income tax 39,307,142.15 279,485,623.04
Individual income tax 1,205,750.34 1,260,803.19
Urban maintenance and 180,463.36 4,687,093.90
construction tax
Land appreciation tax 365,427.14 2,780,327.20
Real estate tax 123,041,645.28 171,138,711.99
Land use tax 3,722,494.45 10,612,069.24
Others 2,094,497.36 6,005,392.15
Total 170,871,026.68 559,496,547.34
Other notes:
On 30 June 2022, the details of the main taxes prepaid by the Group are as follows: Unit: Yuan
Currency: RMB
Item Qiantang Impression Occident Center Total amount of
Real Estate Project Real Estate prepaid tax
Project
Business tax 240,013.55 - 240,013.55
Urban maintenance and
- 731,793.32 731,793.32
construction tax
Education surcharge and local
- 522,709.51 522,709.51
education surcharge
Total 240,013.55 1,254,502.83 1,494,516.38
41. Other payables
Presentation of items
√Applicable □Not applicable
Unit: RMB
Item Closing balance Opening balance
Other payables 1,326,087,294.15 1,908,742,835.15
Total 1,326,087,294.15 1,908,742,835.15
Other notes:
Nil
Interest payable
□Applicable √Not applicable
Dividend payable
□Applicable √Not applicable
120 / 180
Semi-annual Report for 2022
Other payables
(1). Presentation of other payables by nature
√Applicable □Not applicable
Unit: RMB
Item Closing balance Opening balance
Withholdings, deposit and 494,889,933.85 598,819,336.72
margin
Operating expenses payable 323,542,897.12 268,576,640.89
Pending investment refunds 341,626,983.00 877,464,692.76
Restricted equity incentive 137,440,900.00 137,440,900.00
plan
Yiwugou’s bank reserve fund 27,383,673.11 25,823,767.03
Others 1,202,907.07 617,497.75
Total 1,326,087,294.15 1,908,742,835.15
(2). Important other payables with account age over 1 year
□Applicable √Not applicable
Other notes:
√Applicable □Not applicable
Since other payables mainly come from the deposit deposits of market shops and the bidding
deposits of engineering projects, with small individual amounts, on June 30, 2022, there were no
important other payables with an aging of more than 1 year.
42. Held-for-sale liabilities
□Applicable √Not applicable
43. Non-current liabilities due within one year
√Applicable □Not applicable
Unit: RMB
Item Closing balance Opening balance
Long-term borrowings within 1 400,542,263.88 100,918,614.59
year
Bonds payable due within 1 2,786,881,248.24 3,552,960,829.66
year
Lease liabilities due within 1 17,443,848.41 10,362,478.83
year
Total 3,204,867,360.53 3,664,241,923.08
Other notes:
Nil
121 / 180
Semi-annual Report for 2022
44. Other current liabilities
√Applicable □Not applicable
Unit: RMB
Item Closing balance Opening balance
Short-term financing notes payable 4,054,395,271.83 3,009,756,921.11
To-be-reported output tax 8,062,393.84 67,323,844.72
Dividend announced but not collected before 2,083,112.65 2,083,112.65
listing
Dividend payable to to-be-recognized 2,449,697.11 2,220,922.02
accounts
Total 4,066,990,475.43 3,081,384,800.50
Changes in short-term bonds payable:
√Applicable □Not applicable
Unit: RMB
Interest accrued Current
Bond Face Issuing Bond Issuing Opening Current period Premium/discount Closing
based on face period
Name value Date Term Amount Balance Issuing amortization Balance
value Repayment
Super-short-term
Jun 29,
commercial 100 30 days 1,000,000,000.00 - 1,000,000,000.00 120,547.95 6,570.34 - 1,000,043,784.96
2022
paper
Super-short-term
Nov 30,
commercial 100 269 days 1,000,000,000.00 1,001,845,680.63 - 17,927,671.23 591,909.75 - 1,017,786,509.71
2021
paper
Super-short-term
Nov 15,
commercial 100 279 days 1,000,000,000.00 1,003,076,172.00 - 16,573,150.68 633,333.33 - 1,016,456,484.01
2021
paper
Super-short-term
Oct 27,
commercial 100 268 days 1,000,000,000.00 1,004,835,068.48 - 20,166,027.40 676,712.33 - 1,020,108,493.15
2021
paper
Total / / / 4,000,000,000.00 3,009,756,921.11 1,000,000,000.00 54,787,397.26 1,908,525.75 - 4,054,395,271.83
Other notes:
√Applicable □Not applicable
As of June 30, 2022, the annual interest rate of the above-mentioned short-term financing bonds was 2.20%-2.98% (December 31, 2021: 2.48%-2.98%).
122 / 180
Semi-annual Report for 2022
45. Long-term borrowings
(1). Classification of long-term borrowings
√Applicable □Not applicable
Unit: RMB
Item Closing balance Opening balance
Credit loans 204,500,000.00 771,250,000.00
Total 204,500,000.00 771,250,000.00
Notes on the classification of long-term borrowings:
Nil
Other notes, including the interest rate range:
√Applicable □Not applicable
On June 30, 2022, the annual interest rate of the above borrowing was 2.70%(December 31,
2021: 2.70%-3.92%).
46. Bonds payable
(1). Bonds payable
√Applicable □Not applicable
Unit: RMB
Item Closing balance Opening balance
MTN 1,514,288,084.70 -
Total 1,514,288,084.70 -
123 / 180
Semi-annual Report for 2022
(2). Change in bonds payable (excluding other financial instruments classified as financial liabilities, such as preferred shares and perpetual
bonds)
√Applicable □Not applicable
Unit: RMB
Ope
Fac ning Due within one Transferred in this
Interest accrued year and due within
Bond e Issuing Bond Issuing amo year at the Current period Premium/disco Current period Closing amount
based on face one year
Name valu Date Term Amount unt beginning of the Issuing unt amortization Repayment Balance
value
e Bala period
nce
Mar 29,
MTN 100 3Y 500,000,000.00 - - 500,000,000.00 4,548,082.19 49,161.35 - - 503,997,243.54
2022
Feb 24,
MTN 100 3Y 1,000,000,000.00 - - 1,000,000,000.00 11,357,260.27 133,580.89 - - 1,010,290,841.16
2022
Oct 21,
MTN 100 3Y 1,000,000,000.00 - 1,007,406,483.12 - 19,686,849.32 194,533.53 - 1,027,287,865.97 -
2019
Jul 15,
MTN 100 3Y 1,000,000,000.00 - 1,018,263,552.02 - 19,786,027.39 194,569.98 - 1,038,244,149.39 -
2019
Corporate Sep 25,
100 3Y 700,000,000.00 - 707,499,013.70 - 13,850,219.18 - - 721,349,232.88 -
bonds 2019
Corporate
100 Jun 5, 2019 3Y 800,000,000.00 - 819,791,780.82 - 14,608,219.18 - 834,400,000.00 - -
bonds
Total / / / 5,000,000,000.00 - 3,552,960,829.66 1,500,000,000.00 83,836,657.53 571,845.75 834,400,000.00 2,786,881,248.24 1,514,288,084.70
(3). Conditions and time for the conversion of convertible corporate bonds
□Applicable √Not applicable
(4). Notes on other financial instruments classified as financial liabilities
Basic information of other financial instruments such as preferred shares and perpetual bonds outstanding at the end of the reporting period
□Applicable √Not applicable
Changes in other financial instruments such as preferred shares and perpetual bonds outstanding at the end of the reporting period
□Applicable √Not applicable
Basis for other financial instruments being classified as financial liabilities
□Applicable √Not applicable
Other notes:
□Applicable √Not applicable
124 / 180
Semi-annual Report for 2022
47. Lease liabilities
√Applicable □Not applicable
Unit: RMB
Item Closing balance Opening balance
Undiscounted amount of finance 333,582,940.05 334,659,632.28
lease payables
Unrecognized financing charges -112,536,565.67 -118,354,479.52
Lease liabilities due within 1 year -17,443,848.41 -10,362,478.83
Total 203,602,525.97 205,942,673.93
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
Long-term accounts payable
□Applicable √Not applicable
Special accounts payable
□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 110,620,306.10 110,620,306.10
Total 110,620,306.10 110,620,306.10 /
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 Apr 30, 2018, the Group lost control over the subsidiary due to its
disposal of some equity in the subsidiary. As of June 30, 2022, the matter was under processing.
51. Deferred income
Overview of deferred income
√Applicable □Not applicable
Unit: RMB-yuan
Opening Increase in the Decrease in the Cause of
Item Closing balance
balance current period current period formation
Asset-related 78,170,103.62 26,833,500.00 710,736.84 104,292,866.78
government grants
Income-related - 2,000,000.00 2,000,000.00 -
government grants
Total 78,170,103.62 28,833,500.00 2,710,736.84 104,292,866.78 /
125 / 180
Semi-annual Report for 2022
Items involving government grants:
√Applicable □Not applicable
Unit: RMB
Amount
Increase in
recognized in Asset-related
Opening grant amount Closing
Liability item other income or
balance in the current balance
in the current income-related
period
period
Subsidy for service industry Asset-related
5,243,445.95 - 133,333.32 5,110,112.63
cluster project
Interest subsidy for the Asset-related
international exhibition 19,880,357.67 - 577,403.52 19,302,954.15
center construction fund
Subsidy for Yiwu Asset-related
Comprehensive Bonded 53,046,300.00 26,833,500.00 - 79,879,800.00
Zone Project
Subsidy for construction and Income-related
operation of credit data - 2,000,000.00 2,000,000.00 -
center in Yiwu Credit Center
Other notes:
□Applicable √Not applicable
52. Other non-current liabilities
□Applicable √Not applicable
53. Capital stock
√Applicable □Not applicable
Unit: RMB
Increase or decrease in the current period (+, -)
Provident
Opening balance Issuing Closing balance
Bonus funds
New Others Sub-total
shares Conversion
shares
into shares
Total 5,491,274,176.00 - - - - - 5,491,274,176.00
number
of
shares
Other notes:
Nil
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
126 / 180
Semi-annual Report for 2022
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 1,559,964,197.11 - - 1,559,964,197.11
premium)
Equity incentive 33,414,344.66 16,414,582.49 - 49,828,927.15
Other capital reserve 38,130,573.19 - - 38,130,573.19
Total 1,631,509,114.96 16,414,582.49 - 1,647,923,697.45
Other notes including those on the changes in the current period and the reasons therefor:
The increase in capital reserve - stock ownership incentives during the reporting period was due
to the Company's recognition on the share payment fee of RMB 16,414,582.49 during the waiting
period, which was included in this item accordingly.
56. Treasury shares
√Applicable □Not applicable
Unit: RMB
Decrease in
Opening Increase in the
Item the current Closing balance
balance current period
period
Restricted equity 137,494,800.00 - - 137,494,800.00
incentive plan
Total 137,494,800.00 - - 137,494,800.00
Other notes including those on the changes in the current period and the reasons therefor:
Nil
57. Other comprehensive income
√Applicable □Not applicable
Unit: RMB
Amount in the current period
Opening Amount before Amount after tax Closing
Item Less: income
Balance tax incurred in the attributable to Balance
tax
current period parent company
I. Other
comprehensive
income that cannot 66,421,903.33 -104,104,690.25 -26,026,172.56 -78,078,517.69 -11,656,614.36
be reclassified into
profit or loss
Change in fair
value of other equity
66,421,903.33 -104,104,690.25 -26,026,172.56 -78,078,517.69 -11,656,614.36
instruments
investment
II. Other
comprehensive
income to be -5,571,168.31 10,560,082.25 - 10,560,082.25 4,988,913.94
reclassified into profit
or loss
Other comprehensive
income that can be
transferred into profit - -78,548.99 - -78,548.99 -78,548.99
and loss under equity
method
Difference arising
from the translation -5,571,168.31 10,638,631.24 - 10,638,631.24 5,067,462.93
of foreign currency
127 / 180
Semi-annual Report for 2022
financial statements
Total other
comprehensive 60,850,735.02 -93,544,608.00 -26,026,172.56 -67,518,435.44 -6,667,700.42
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:
Nil
58. Special reserve
□Applicable √Not applicable
59. Surplus reserve
√Applicable □Not applicable
Unit: RMB
Item Opening balance Increase in the Decrease in the Closing balance
current period current period
Statutory surplus 1,453,325,098.91 - - 1,453,325,098.91
reserve
Discretionary 40,195,855.68 - - 40,195,855.68
surplus reserve
Others 11,688,840.91 - - 11,688,840.91
Total 1,505,209,795.50 - - 1,505,209,795.50
Notes on surplus reserves, including those on the changes in the current period and the reasons
therefor:
Nil
60. Undistributed profits
√Applicable □Not applicable
Unit: RMB
Item Current period Previous year
Undistributed profits at the end of the 6,059,496,846.85 5,168,298,206.50
previous reporting period before adjustment
Undistributed profits after adjustment at the 6,059,496,846.85 5,168,298,206.50
beginning of the later period after
adjustment
Plus: net profits attributable to shareholders 1,222,205,978.81 1,334,095,906.95
of the parent company in the current period
Less: withdrawal of statutory surplus - 140,951,986.92
reserve
Common share dividend payable 400,863,014.85 301,945,279.68
Closing undistributed profits 6,880,839,810.81 6,059,496,846.85
Details of the adjustment of opening undistributed profits:
1. The opening undistributed profits affected by the retroactive adjustment made in accordance with
the Accounting Standards for Enterprises and related new provisions amounted to RMB0.
2.The opening undistributed profits affected by the changes in accounting policies amounted to
RMB0.
3. The opening undistributed profits affected by the correction of major accounting errors amounted
to RMB0.
4. The opening undistributed profits affected by changes in the scope of mergers caused by common
control amounted to RMB0.
5. The opening undistributed profits affected by other adjustments together amounted to RMB0.
61. 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 4,047,360,914.45 3,106,283,447.96 1,877,033,846.97 863,801,815.15
128 / 180
Semi-annual Report for 2022
Other businesses 159,666,702.01 53,014,698.81 195,593,880.03 61,608,810.26
Total 4,207,027,616.46 3,159,298,146.77 2,072,627,727.00 925,410,625.41
(2).Revenue generated from contracts
√Applicable □Not applicable
Unit: RMB
Classified by type of contract Total
Types of goods
Sales of goods 2,389,696,619.19
The use of shops in the China Commodities Cities 1,415,709,313.01
and its supporting services
Hotel accommodation and catering services 81,585,551.03
Revenue from use fees 32,264,049.60
Other services 176,186,354.97
Classified by business area
Chinese mainland 4,095,441,887.80
Classified by contract period
Revenue confirmed at a certain time point
Sales of goods 2,389,696,619.19
Hotel catering services 47,609,814.93
Other services 170,692,124.72
Revenue confirmed during a certain period of time
The use of shops in the China Commodities 1,415,709,313.01
Cities and its supporting services
Hotel accommodation service 33,975,736.10
Revenue from use fees 32,264,049.60
Other services 5,494,230.25
Total 4,095,441,887.80
Description of the income from contracts:
The income recognized in the current year and included in the opening book value of
contractual liabilities is as follows:
Type of contract Current Period (RMB)
Sales of goods 671,507,781.88
The use of shops in the China Commodities Cities and 1,235,162,642.28
its supporting services
Hotel accommodation service 7,036,462.25
Other services 7,523,515.25
Total 1,921,230,401.66
(3).Contract performance obligations
√Applicable □Not applicable
Sales of goods
The performance obligation is fulfilled when the goods are delivered to the customer, and the
contract price is collected in advance before the goods are delivered to the customer or received
upon the delivery of the goods.
The use of shops in the China Commodities Cities and its supporting services
The contractual performance obligation is fulfilled when providing the use of shops in the China
Commodities Cities and the supporting business services. For the use of shops in the China
Commodities Cities and the business services , 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 Cities and busines services 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
129 / 180
Semi-annual Report for 2022
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 of the fund. For the fixed-time paid funding service, the contract price is
usually charged regularly as agreed in the contract.
(4).Amortization to remaining contract performance obligations
√Applicable □Not applicable
At the end of the reporting period, the amount of revenue corresponding to the performance
obligations that have been signed but have not been performed or have not been fulfilled was RMB
2,650,580,628.21, of which: RMB 2,650,580,628.21 is expected to be recognized as revenue within
5 years
Other notes:
Nil
62. Taxes and surcharges
√Applicable □Not applicable
Unit: RMB
Item Amount in the current period Amount in the previous period
Consumption tax 121.51 -
Business tax 9,307.56 200,048.93
Urban maintenance and 847,074.98 3,687,622.46
construction tax
Education surcharge 376,577.58 1,581,474.20
Real estate tax 57,303,381.47 55,296,306.71
Land use tax 939,264.19 5,387,595.00
Vehicle and vessel use tax 2,040.00 -
Stamp duty 2,342,930.19 1,421,427.19
Land appreciation tax 1,040,058.76 9,038.82
Local education surcharge 251,051.78 1,054,316.04
Cultural undertaking 200,629.33 -240.00
development fee
Total 63,312,437.35 68,637,589.35
Other notes:
Nil
63. Sales expenses
√Applicable □Not applicable
Unit: RMB
Amount in the current Amount in the previous
Item
period period
Marketing expenses 58,838,620.46 39,083,745.14
Advertising expenses 15,210,375.07 19,829,104.82
Security and insurance expenses 13,603,561.83 11,869,661.68
Water, electricity and fuel expenses 4,108,797.27 1,946,862.81
Depreciation and amortization 59,697.22 356,584.59
Others 1,461,011.88 956,971.99
Total 93,282,063.73 74,042,931.03
Other notes:
130 / 180
Semi-annual Report for 2022
Nil
64. Administrative expenses
√Applicable □Not applicable Unit: RMB
Item Amount in the current Amount in the previous
period period
Employee and uniform expenses 162,048,252.07 130,142,013.05
Depreciation and amortization 41,529,941.99 20,578,214.86
Office expenses 12,478,203.63 6,488,902.87
Intermediary expenses 7,648,247.31 4,610,462.83
Travel expenses 727,343.72 2,715,004.31
Lease and property management 588,747.87 1,651,675.14
expenses
Promotion and market traders introduction 95,739.93 159,870.08
expenses
Others 1,454,891.75 352,743.44
Total 226,571,368.27 166,698,886.58
Other notes:
Nil
65. R&D expenses
√Applicable □Not applicable
Unit: RMB
Item Amount in the current Amount in the previous
period period
Employee expenses 3,136,584.80 2,702,889.51
Technology R&D expenses 901,982.58 516,473.30
Depreciation and amortization 62,233.31 62,670.46
Others 1,607,246.89 1,287,105.17
Total 5,708,047.58 4,569,138.44
Other notes:
Nil
66. Financial expenses
√Applicable □Not applicable
Unit: RMB
Item Amount in the current Amount in the previous
period period
Interest expenses 154,500,444.77 173,963,591.17
Amortization of commercial paper discount 1,969,098.85 2,406,651.36
Interest income -89,271,567.84 -117,153,799.20
Capitalized interest - -17,496,623.81
Foreign exchange gains or losses -11,023,802.13 1,986,636.12
Amortization of unrecognized financing
6,001,626.16 3,190,766.38
expenses
Others 716,135.64 453,784.05
Total 62,891,935.45 47,351,006.07
Other notes:
Nil
67. Other income
√Applicable □Not applicable
Unit: RMB
Item Amount in the Amount in the
current period previous period
131 / 180
Semi-annual Report for 2022
Employment stabilization subsidy 2,233,836.28 23,190.40
Additional deduction of input tax 2,103,468.66 2,845,835.35
Grant for the construction and operation of the credit data 2,000,000.00 -
center
Yiwu Municipal Bureau of Development and Reform 2021 1,800,000.00 -
Special Fund for Innovation and Development Zone
Yiwu Municipal Bureau of Commerce 2021 Export Credit 1,527,680.00 -
Insurance Subsidy
Yiwu Municipal Bureau of Commerce Business Promotion 1,000,000.00 -
Fund Subsidy
Market Development Committee 2021 Local Financial 940,693.24 -
Policy Incentives for Encouraging E-commerce
Interest subsidy for the international exhibition center 577,403.52 577,403.52
construction fund
Additional deduction of R&D input award from Yiwu 500,800.00 131,520.00
Municipal Science and Technology Bureau
Pilot Subsidy for Strong Counties in Service Industry 500,000.00 500,000.00
Science and Technology Bureau Innovation Entity Creation 500,000.00 -
Award
Yiwu Municipal Bureau of Commerce Promotion and 480,400.00 960,743.00
Opening Rewards
Subsidies for Helping Tourism Enterprises Fight Against the 390,000.00 -
Pandemic and Promoting Development
Yiwu Municipal Bureau of Commerce 3-levies-3-refunds 304,461.00 -
Rewards
Refund of the service charges of individual income tax 269,632.38 368,142.02
VAT reduction for the recruitment of retired soldiers finding 223,500.00 86,065.86
jobs on their own
Special Incentive Fund for Modern Supply Chain System - 2,682,704.00
Innovation from Yiwu Bureau of Commerce for 2020
Award for general trading enterprises from Yiwu Municipal - 336,162.00
Bureau of Commerce
Others 1,363,373.61 534,261.97
Total 16,715,248.69 9,046,028.12
Other notes:
Nil
68. Investment income
√Applicable □Not applicable
Unit: RMB
Amount in the current Amount in the previous
Item
period period
Income from long-term equity 748,873,944.26 263,788,954.78
investment calculated with the equity
method
Investment income from disposal of 1,822,875.64 42,837.72
held-for-trading financial assets
Investment income from disposal of 26,619.73 -
wealth management products
Total 750,723,439.63 263,831,792.50
Other notes:
Nil
69. Income from net exposure hedging
□Applicable √Not applicable
132 / 180
Semi-annual Report for 2022
70. Income from changes in fair value
√Applicable □Not applicable
Unit: RMB
Sources of income from changes in Amount in the previous
Amount in the current period
fair value period
Held-for-trading financial assets -1,667,262.00 -2,640,099.60
Other non-current financial assets -546,331.53 3,768,691.70
Total -2,213,593.53 1,128,592.10
Other notes:
Nil
71. Loss of impairment of credit
√Applicable □Not applicable
Unit: RMB
Amount in the current Amount in the previous
Item
period period
Bad debt loss of accounts receivable -219,174.64 -13,408.94
Loss for bad debts of other receivables 247,110.08 -415,865.94
Total 27,935.44 -429,274.88
Other notes:
Nil
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
Income from disposal of 1,389.88 101,911.42
property, plant and equipment
Total 1,389.88 101,911.42
Other notes:
□Applicable √Not applicable
74. Revenue from non-operating activities
√Applicable □Not applicable
Unit: RMB
Amount recognized in
Amount in the current Amount in the previous profit or loss of
Item
period period nonrecurring items for
the current period
Government grants 200,000.00 1,200.00 200,000.00
Incomes from 1,329,393.77 1,258,664.54 1,329,393.77
liquidated damages
Others 2,488,105.92 85,788.32 2,488,105.92
Total 4,017,499.69 1,345,652.86 4,017,499.69
Government grants are recognized in the profit or loss for the current period
√Applicable □Not applicable
Unit: RMB
Amount in the Previous Asset-related or
Grant items
current period amount income-related
Financial subsidies for the 200,000.00 - Income-related
133 / 180
Semi-annual Report for 2022
development of the digital
entertainment industry
Subsidy for enterprise monitoring - 1,200.00 Income-related
from Choucheng Subdistrict
Total 200,000.00 1,200.00 Income-related
Other notes:
□Applicable √Not applicable
75. Expenses from non-operating activities
√Applicable □Not applicable
Unit: RMB
Amount in the Amount recognized in profit or
Amount in the
Item previous loss of nonrecurring items for
current period
period the current period
Total loss for disposal of 56,100.78 791,449.35 56,100.78
non-current assets
Including: loss for disposal of 56,100.78 791,449.35 56,100.78
property, plant and equipment
External donation 44,250.00 200,000.00 44,250.00
Others 329,652.83 129,645.09 329,652.83
Total 430,003.61 1,121,094.44 430,003.61
Other notes:
Nil
76. Income tax expenses
(1) Overview of income tax expenses
√Applicable □Not applicable
Unit: RMB
Item Amount in the current period Amount in the previous period
Current income tax expenses 128,391,456.05 198,094,571.17
Deferred income tax expenses 13,888,013.12 14,482,195.47
Total 142,279,469.17 212,576,766.64
(2) Adjustment process of accounting profits and income tax expenses
√Applicable □Not applicable
Unit: RMB
Item Amount in the current
period
Profits before tax 1,364,805,533.50
Income tax expenses are calculated at the statutory/applicable tax rate 341,201,383.38
Impact of different tax rates applied by subsidiaries -717,212.41
Effect of adjusting income tax of the previous period -26,881,684.93
Effect of non-taxable income -810,986.38
Effect of non-deductible costs, expenses and losses 297,172.78
Effect of using deductible losses of unrecognized deferred income tax assets -4,666,174.80
in the previous period
Effect of deductible temporary differences or deductible losses of 21,075,457.60
unrecognized deferred income tax assets in the current period
Profits or losses attributable to joint ventures and associates -187,218,486.07
Income tax expenses 142,279,469.17
Other notes:
□Applicable √Not applicable
134 / 180
Semi-annual Report for 2022
77. Other comprehensive income
√Applicable □Not applicable
For details, please refer to Note 57. Other comprehensive income
78. Items of cash flow statement
(1). Other cash receipts relating to operating activities
√Applicable □Not applicable
Unit: RMB
Item Amount in the current period Amount in the previous period
Bank deposit interest income 117,153,799.20
received 89,271,567.84
Deposit and margin received 84,113,126.29 60,501,618.69
Government grants received 45,748,748.69 4,925,477.20
Bank reserve received 1,532,062.05 876,213.71
Others 2,226,957.24 2,324,227.91
Total 222,892,462.11 185,781,336.71
Notes on other cash receipts relating to operating activities:
Nil
(2). Other cash payments relating to operating activities
√Applicable □Not applicable
Unit: RMB
Item Amount in the current period Amount in the previous period
Margins paid 184,207,298.86 55,168,466.81
Fees paid 159,441,304.15 117,283,494.99
Others 3,690,541.84 2,539,651.72
Total 347,339,144.85 174,991,613.52
Notes on other cash payments relating to operating activities:
Nil
(3). Other cash receipts relating to investing activities
√Applicable □Not applicable
Unit: RMB
Item Amount in the current period Amount in the previous
period
Financial assistance recovered from 1,326,599,831.00
joint ventures 901,774,483.00
Total 901,774,483.00 1,326,599,831.00
Notes on other cash receipts relating to investing activities:
Nil
(4). Other cash payments relating to investing activities
√Applicable □Not applicable
Unit: RMB
Item Amount in the current period Amount in the previous
period
Financial assistance paid for joint 1,550,981,005.00
ventures 68,507,285.00
Total 68,507,285.00 1,550,981,005.00
Other cash paid related to investment activities:
Nil
135 / 180
Semi-annual Report for 2022
(5). Other cash receipts relating to financing activities
□Applicable √Not applicable
(6). Other cash payments relating to financing activities
√Applicable □Not applicable
Unit: RMB
Item Amount in the current period Amount in the previous
period
Minimum lease payment 11,970,676.79 -
Total 11,970,676.79 -
Other cash paid related to financing activities:
Nil
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 1,222,526,064.33 847,244,391.16
Loss of impairment of credit -27,935.44 429,274.88
Depreciation of fixed assets, depletion of oil and gas 170,090,217.42 196,630,117.97
assets and depreciation of Productive biological
assets
Amortization of right-of-use assets 14,089,021.32 6,032,905.14
Amortization of intangible assets 75,870,218.25 69,599,955.30
Depreciation and amortization of investment real 64,839,383.45 46,300,976.88
estate
Amortization of long-term prepaid expenses 22,066,225.88 26,371,441.78
Loss from disposal of fixed assets, intangible assets
-1,389.88 -101,911.42
and other long-term assets (gains indicated by “-”)
Loss from fixed assets retirement (gains indicated by 56,100.78 791,449.35
“-”)
Loss from changes in fair value (gains indicated by “-”) 2,213,593.53 -1,128,592.10
Financial expenses (gains indicated by “-”) 154,500,444.77 177,154,357.55
Investment loss (gains indicated by “-”) -776,830,272.96 -263,831,792.5
Decrease in deferred income tax assets (increase 10,068,696.50 13,751,307.49
indicated by “－”)
Increase in deferred income tax liabilities (decrease -22,230,480.08 -17,769,644.32
indicated by “－”)
Decrease in inventory (increase indicated by “－”) -357,352,526.67 -67,724,859.66
Decrease in operating receivables (increase indicated 361,791,176.72 -1,166,423,268.81
by “－”)
Increase in operating payables (decrease indicated by -1,608,255,871.54 299,409,716.06
“－”)
Net cash flow from operating activities -666,587,333.62 166,735,824.75
2．Significant investing and financing activities not involving cash receipt and payment:
3．Net changes in cash and cash equivalents:
Closing balance of cash 3,474,333,987.64 1,959,635,386.45
Less: opening balance of cash 4,006,468,325.47 2,032,642,871.63
Net increase in cash and cash equivalents -532,134,337.83 -73,007,485.18
136 / 180
Semi-annual Report for 2022
(2) Net cash paid for acquisition of subsidiaries in the current period
□Applicable √Not applicable
(3) Net cash received from disposal of subsidiaries in the current period
□Applicable √Not applicable
(4) Composition of cash and cash equivalents
√Applicable □Not applicable
Unit: RMB
Item Closing balance Opening balance
I. Cash 3,474,333,987.64 4,006,468,325.47
In which: cash on hand 216,579.25 154,264.94
Bank deposit that can be used for payment at any 3,473,985,667.17 4,006,258,722.95
time
Other monetary capital that can be used for 131,741.22 55,337.58
payment at any time
III. Closing balance of cash and cash equivalents 3,474,333,987.64 4,006,468,325.47
Including:cash and cash equivalents with
restricted use by the parent company or its 60.88 60.78
subsidiaries
Other notes:
√Applicable □Not applicable
Monetary funds with a deposit period of more than three months: Currency: RMB
Item Closing balance Opening balance
Negotiated deposits 1,025,000,000.00 825,000,000.00
80. Notes to items in the statement of changes in owners’ equity
Names of “others” items whose closing balances in the previous year are adjusted and the amounts
of adjustments:
□Applicable √Not applicable
81. Assets with restricted title or right of use
√Applicable □Not applicable
Unit: RMB
Item Closing book value Reasons for restriction
Cash and cash equivalents 60.88 [Note 1]
Long-term equity investment 102,918,559.00 [Note 2]
Other non-current assets 636,870,392.09 [Note 2]
Total 739,789,011.97 /
Other notes:
Note 1. As of June 30, 2022, bank deposits with a book value of RMB 60.88 (December 31,
2021: RMB 60.78) were restricted for ownership or use rights due to being as security deposits for
obtaining commercial housing mortgage loans.
Note 2: As of June 30, 2022, long-term equity investments with a book value of RMB
102,918,559.00 (December 31, 2021: RMB 102,918,559.00) and other non-current assets of RMB
636,870,392.09 (December 31, 2021: RMB 636,870,392.09) were frozen by Shanghai Municipal
Public Security Bureau. See Note XIV.1 Important commitments for details.
82. Foreign currency monetary items
(1). Foreign currency monetary items
137 / 180
Semi-annual Report for 2022
√Applicable □Not applicable
Closing balance
Closing balance in
Item Exchange rate after conversation
foreign currency
into RMB
Cash and cash equivalents - -
In which: USD 3,583,237.91 6.7114 24,048,542.92
EURO 47,668.28 7.0396 335,565.62
Dirham 98,384.15 1.8274 179,787.20
Koruna 6,205,219.26 0.2814 1,745,981.78
Accounts receivable - -
In which: USD 2,745,305.09 6.7114 18,424,840.57
EURO 25,145.60 7.0396 177,014.97
Koruna 13,739,732.76 0.2814 3,865,991.21
Other receivables - -
In which: USD 705,710.67 6.7114 4,736,306.59
EURO 5,100.00 7.0396 35,901.96
Koruna 13,552,906.86 0.2814 3,813,423.42
Accounts payable - -
USD 1,339,696.91 6.7114 8,991,241.84
EURO 5,100.00 7.0396 35,901.96
Koruna 145,715.25 0.2814 41,000.35
Other payables - -
USD 2,595,542.14 6.7114 17,419,721.52
EURO 5,125.38 7.0396 36,080.63
Koruna 8,692,963.99 0.2814 2,445,966.13
Other notes:
Nil
(2). Description of overseas operations, for important overseas operations, also includes
the disclosure of principal overseas place of business, bookkeeping currency and the
basis for selection, and the reason for the change in bookkeeping currency.
□Applicable √Not applicable
83. Hedging
□Applicable √Not applicable
84. Government grants
1. Overview of government grants
√Applicable □Not applicable
Unit: RMB
Amount recognized
Type Amount Presentation in profit or loss for
the current period
Financial subsidies for the development of Revenue
the digital entertainment industry from
200,000.00 200,000.00
non-operating
activities
Employment stabilization subsidy 2,233,836.28 Other income 2,233,836.28
Additional deduction of input tax 2,103,468.66 Other income 2,103,468.66
Grant for the construction and operation of Other income
2,000,000.00 2,000,000.00
the credit data center
Yiwu Municipal Bureau of Development and Other income
Reform 2021 Special Fund for Innovation and
1,800,000.00 1,800,000.00
138 / 180
Semi-annual Report for 2022
Development Zone
Yiwu Municipal Bureau of Commerce 2021 Other income
1,527,680.00 1,527,680.00
Export Credit Insurance Subsidy
Yiwu Municipal Bureau of Commerce Other income
1,000,000.00 1,000,000.00
Business Promotion Fund Subsidy
Market Development Committee 2021 Local Other income
Financial Policy Incentives for Encouraging 940,693.24 940,693.24
E-commerce
Interest subsidy for the international Other income
577,403.52 577,403.52
exhibition center construction fund
Additional deduction of R&D input award Other income
from Yiwu Municipal Science and 500,800.00 500,800.00
Technology Bureau
Pilot Subsidy for Strong Counties in Service Other income
500,000.00 500,000.00
Industry
Science and Technology Bureau Innovation Other income
500,000.00 500,000.00
Entity Creation Award
Yiwu Municipal Bureau of Commerce Other income
480,400.00 480,400.00
Promotion and Opening Rewards
Subsidies for Helping Tourism Enterprises Other income
Fight Against the pandemic and Promoting 390,000.00 390,000.00
Development
Yiwu Municipal Bureau of Commerce Other income
304,461.00 304,461.00
3-levies-3-refunds Rewards
Market Pandemic Prevention and Other income
240,000.00 240,000.00
Disinfection Subsidy
VAT reduction for the recruitment of retired Other income
223,500.00 223,500.00
soldiers finding jobs on their own
Others 1,123,373.61 Other income 1,123,373.61
Total 16,645,616.31 16,645,616.31
2. Refund of government grants
□Applicable √Not applicable
Other statements
Nil
85. Others
□Applicable √Not applicable
VIII. 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
3. Reverse acquisition
□Applicable √Not applicable
4. Disposal of subsidiaries
Has the Group lost control upon a single disposal of investment in a subsidiary?
□Applicable √Not applicable
Other notes:
□Applicable √Not applicable
139 / 180
Semi-annual Report for 2022
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
The Company established a subsidiary, Yiwu Shangbo Shuzhi Enterprise Management Co.,
Ltd., in this period.
6. Others
□Applicable √Not applicable
IX. Equity in Other Entity
1. Equity in subsidiaries
(1). Composition of the enterprise group
√Applicable □Not applicable
Shareholding
Subsidiary Main place Place of ratio (%) Acquisition
Business
Name of business registration Method
Direct Indirect
Yiwu China Commodities
Yiwu, Yiwu,
City Import and Export Co., Wholesale 100 Establishment
Zhejiang Zhejiang
Ltd.
Yiwu China Commodities
Yiwu, Yiwu,
City Supply Chain Wholesale 100 Establishment
Zhejiang Zhejiang
Management Co., Ltd.
Yiwu Comprehensive
Yiwu, Yiwu, Business
Bonded Zone Operation 100 Establishment
Zhejiang Zhejiang service
and Management Co., Ltd.
Yiwu China Commodities
Yiwu, Yiwu, Business
City Overseas Investment 100 Establishment
Zhejiang Zhejiang service
and Development Co., Ltd.
Yiwu China Commodities
Yiwu, Yiwu, Business
City Tourism Development 100 Establishment
Zhejiang Zhejiang service
Co., Ltd.
Yiwu China Commodities
Yiwu, Yiwu, Business
City Assets Operation and 100 Establishment
Zhejiang Zhejiang service
Management Co., Ltd.
Zhejiang Yindu Hotel Yiwu, Yiwu, Business
100 Establishment
Management Co., Ltd. Zhejiang Zhejiang service
Yiwu China Commodities
Yiwu, Yiwu, Business
City Research Institute Co., 100 Establishment
Zhejiang Zhejiang service
Ltd.
Yiwu Shangbo Shuzhi
Yiwu, Yiwu, Business
Enterprise Management 100 Establishment
Zhejiang Zhejiang service
Co., Ltd.
Software and
Information
Yiwu China Commodities Yiwu, Yiwu,
Technology 100 Establishment
City Big Data Co., Ltd. Zhejiang Zhejiang
Service
Industry
Yiwu Commodities City Yiwu, Yiwu,
Real estate 100 Establishment
Gonglian Property Co., Ltd. Zhejiang Zhejiang
Yiwu Shangbo Yuncang
Yiwu, Yiwu,
Enterprise Management Real estate 100 Establishment
Zhejiang Zhejiang
Co., Ltd.
Yiwu China Commodities
Yiwu, Yiwu,
City Information IT 100 Establishment
Zhejiang Zhejiang
Technology Co., Ltd.
Yiwu China Commodities Yiwu, Yiwu,
Service 100 Establishment
City Financial Holdings Zhejiang Zhejiang
140 / 180
Semi-annual Report for 2022
Co., Ltd.
Multimodal
Yiwu China Commodities
Yiwu, Yiwu, transport and
City Logistics and 100 Establishment
Zhejiang Zhejiang transportation
Warehousing Co., Ltd.
agency
Yiwu China Commodities
City Commerce and Trade Yiwu, Yiwu,
Education 100 Establishment
Service Training Center Zhejiang Zhejiang
Co., Ltd.
Yiwu China Commodities Yiwu, Yiwu, Business
98 2 Establishment
City Exhibition Co., Ltd. Zhejiang Zhejiang service
Zhejiang Huajie Investment Yiwu, Yiwu, Business
96.4 Incorporation+acquisition
and Development Co., Ltd. Zhejiang Zhejiang service
Zhejiang China
Commodities City Group Yiwu, Yiwu,
Service 60 40 Establishment
Commercial Factoring Co., Zhejiang Zhejiang
Ltd.
Zhejiang Yiwugou Yiwu, Yiwu,
IT 51 Establishment
E-commerce Co., Ltd. Zhejiang Zhejiang
Yiwu China Commodities
Yiwu, Yiwu,
City Payment Network IT 100 Establishment
Zhejiang Zhejiang
Technology Co., Ltd.
Yiwu China Commodities Yiwu, Yiwu,
Advertising 100 Establishment
City Advertising Co., Ld. Zhejiang Zhejiang
Yiwu International Trade
Yiwu, Yiwu,
Comprehensive Service Wholesale 60 Establishment
Zhejiang Zhejiang
Co., Ltd.
Yiwu China Commodities
Yiwu, Yiwu,
City Credit Investigation Service 85 Establishment
Zhejiang Zhejiang
Co., Ltd.
Yiwu Aiximao Supply
Yiwu, Yiwu,
Chain Management Co., Service 100 Establishment
Zhejiang Zhejiang
Ltd.
Multimodal
Yiwu Huanqiuyida Yiwu, Yiwu, transport and
60 Establishment
Logistics Co., Ltd. Zhejiang Zhejiang transportation
agency
Yiwu China Commodities
City Internet Financial Yiwu, Yiwu,
Service 100 Incorporation+acquisition
Information Service Co., Zhejiang Zhejiang
Ltd.
Yiwu China Commodities
City RMB and Foreign Yiwu, Yiwu,
Service 100 Establishment
Currency Exchange Co., Zhejiang Zhejiang
Ltd.
Hangzhou Shangbo Hangzhou, Hangzhou,
Real estate 100 Establishment
Nanxing Property Co., Ltd. Zhejiang Zhejiang
Haicheng Yiwu China
Commodities City Haicheng, Haicheng,
Real estate 95 Establishment
Investment Development Liaoning Liaoning
Co., Ltd.
Ningxia Yiwu China
Commodities City Supply Shizuishan, Shizuishan,
Service 100 Establishment
Chain Management Co., Ningxia Ningxia
Ltd.
Yiwu China Commodities
Hong Hong
City (Hong Kong)
Kong, Kong, Wholesale 100 Establishment
International Trade Co.,
China China
Ltd.
141 / 180
Semi-annual Report for 2022
Hong Hong
Hong Kong Better Silk
Kong, Kong, Service 100 Establishment
Road Co., Ltd.
China China
Yiwu China Commodities Frankfurt, Frankfurt,
Service 100 Establishment
City (Germany) Co., Ltd. Germany Germany
Dubai, Dubai,
BETTER SILK ROAD FZE Service 100 Establishment
UAE UAE
BETTER SILK ROAD Kigali, Kigali,
Service 100 Establishment
RWANDA Ltd Rwanda Rwanda
European Huajie Prague, Prague,
Investment Development Czech Czech Service 96.4 Incorporation+acquisition
Co., Ltd. Republic Republic
Explanation for the difference between the shareholding ratio and voting right ratio in a subsidiary:
Nil
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:
Nil
Basis for controlling important structured entities included in the consolidation scope:
Nil
Basis for determining whether a company is an agent or a principal:
Nil
Other notes:
Nil
142 / 180
Semi-annual Report for 2022
(2). Important non-wholly-owned subsidiaries
√Applicable □Not applicable
Unit: RMB
Profits or losses attributable Dividends declared to be distributed
Shareholding ratio of minority Closing balance of
Name of subsidiary to minority shareholders in to minority shareholders for the
shareholders (%) minority interest
the current period current period
Zhejiang Yiwugou
49 3,274,040.80 - 48,091,422.74
E-commerce Co., Ltd.
Haicheng Company 5 -1,729,824.07 - -44,722,868.07
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: RMB10,000
Closing balance Opening balance
Name of
subsidiary Current Non-current Current Non-current Total Current Non-current Current Non-current Total
Total assets Total assets
assets assets liabilities liabilities liabilities assets assets liabilities liabilities liabilities
Zhejiang Yiwugou
E-commerce Co., 11,943.43 857.89 12,801.32 2,986.75 - 2,986.75 11,899.73 900.21 12,799.94 3,653.53 - 3,653.53
Ltd.
Haicheng 130,653.08 79,778.16 210,431.24 299,876.98 - 299,876.98 126,423.87 98,154.04 224,577.91 310,564.00 - 310,564.00
Company
Amount in the current period Amount in the previous period
Total Total
Name of subsidiary Operating Cash flow from Operating Cash flow from operating
Net profits comprehensive Net profits comprehensive
revenue operating activities revenue activities
income income
Zhejiang Yiwugou E-commerce
2,459.03 668.17 668.17 446.46 2,289.66 403.04 403.04 -1,005.35
Co., Ltd.
Haicheng Company 18,481.88 -3,459.65 -3,459.65 -1,159.89 591.49 -7,128.38 -7,128.38 4,098.84
Other notes:
Nil
143 / 180
Semi-annual Report for 2022
(4). Major restrictions on the use of the enterprise group’s assets and repayment of the
enterprise group’s debts
□Applicable √Not applicable
(5). Financial support or other support provided to structured entities included in the
consolidated financial statements:
□Applicable √Not applicable
Other notes:
□Applicable √Not applicable
2. Transactions in which the Group’s share of owners’ equity in a subsidiary changes and
the Group still controls the subsidiary
□Applicable √Not applicable
3. Equity in joint ventures or associates
√Applicable □Not applicable
(1). Important joint ventures or associates
√Applicable □Not applicable
Unit: RMB
Shareholding ratio Accounting
(%) treatment
Main place
Place of method of
Name of joint venture or associate of Business
registration investment in
business Direct Indirect
the joint venture
or associate
Joint venture
Yiwu Shanglv Investment Development Yiwu, Yiwu,
Real estate 49 Equity method
Co., Ltd. Zhejiang Zhejiang
Yiwu Huishang Redbud Capital Yiwu, Yiwu,
Service 20 Equity method
Management Co., Ltd. Zhejiang Zhejiang
Yiwu Rongshang Property Co., Ltd. Yiwu, Yiwu,
Real estate 49 Equity method
Zhejiang Zhejiang
Yiwu Chuangcheng Property Co., Ltd. Yiwu, Yiwu,
Real estate 24 Equity method
Zhejiang Zhejiang
Yiwu Guoshen Shangbo Property Co., Yiwu, Yiwu,
Real estate 49 Equity method
Ltd. Zhejiang Zhejiang
Associate
Yiwu Huishang Redbud Equity Yiwu, Yiwu, Commercial
10.42 Equity method
Investment Co., Ltd. (Note 4) Zhejiang Zhejiang services
Zhejiang Chouzhou Financial Lease Hangzhou, Yiwu,
Service 26 Equity method
Co., Ltd. Zhejiang Zhejiang
Yiwu Huishang Redbud Phase II Lease and
Yiwu, Yiwu,
Investment Partnership (LLP) (Note 5) business 9.43 Equity method
Zhejiang Zhejiang
service
Yiwu Hongyi Equity Investment Fund Yiwu, Yiwu,
Service 49.975 Equity method
Partnership Zhejiang Zhejiang
Pujiang Lvgu Property Co., Ltd. Pujiang, Pujiang,
Real estate 49 Equity method
Zhejiang Zhejiang
Yiwu China Commodities City Property Yiwu, Yiwu,
Real estate 49 Equity method
Development Co., Ltd. Zhejiang Zhejiang
Explanation for the difference between the shareholding ratio and voting right ratio in a joint venture
or associate:
Nil
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 4: The Company holds 10.42% (2021: 10.42%) of equity of Yiwu Huishang Redbud Equity
Investment Co., Ltd. (hereinafter referred to as "Redbud Equity Investment"), but regards it as a joint
144 / 180
Semi-annual Report for 2022
venture 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 5: The Company holds 9.43% (9.43% in 2021) equity of Yiwu Huishang Redbud Phase II
Investment Partnership (limited partnership) (“Redbud Phase II”), but regards 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 can exert
significant influence on Redbud Phase II in which it holds 9.43% equity.
145 / 180
Semi-annual Report for 2022
(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 Yiwu Shanglv Yiwu Yiwu
Rongshang Chuangcheng Rongshang Chuangcheng
Property Property Property Property
Current assets 6,242.83 196,561.31 153,247.98 9,499.55 564,093.80 385,685.30
In which: cash and cash equivalents 1,818.27 13,423.94 1,204.37 1,720.42 23,898.97 37,501.70
Non-current assets 131,342.96 5.89 3.79 133,261.86 8,395.40 5,324.96
Total assets 137,585.79 196,567.20 153,251.77 142,761.41 572,489.20 391,010.26
Current liabilities 31,058.62 172,197.66 94,821.77 37,527.54 528,124.40 354,317.21
Non-current liabilities 23,695.72 1,970.96 1,774.02 23,695.72 - -
Total liabilities 54,754.34 174,168.62 96,595.79 61,223.26 528,124.40 354,317.21
Minority interest
Shareholders’ equity attributable to 82,831.45 22,398.58 56,655.98 81,538.15 44,364.80 36,693.05
parent company
Share of net assets calculated based on 40,587.41 10,975.30 13,597.44 39,953.69 21,738.75 8,806.33
shareholding ratio
Adjustments -1,563.23 - - -1,586.85 - -
--unrealized profits of internal -1,563.23 - - -1,586.85 - -
transactions
Book value of equity investment in joint 39,024.18 10,975.31 13,597.44 38,366.84 21,738.75 8,806.33
ventures
Operating revenue 8,396.80 427,669.78 275,551.74 11,915.13 - -
Financial expenses 854.71 -119.92 -28.31 1,313.05 -301.55 -116.07
Net profits 1,293.30 96,577.78 44,962.93 2,561.80 -287.30 -1,124.86
Total comprehensive income 1,293.30 96,577.78 44,962.93 2,561.80 -287.30 -1,124.86
Dividends received from joint ventures - 58,086.56 6,000.00 - - -
this year
Other statements
Nil
146 / 180
Semi-annual Report for 2022
(3). Main financial information of important associates
√Applicable □Not applicable
Unit: RMB10,000
Closing balance/amount in the current period Opening balance/amount in the previous period
Chouzhou Hongyi Fund CCCP Pujiang Chouzhou Hongyi CCCP Pujiang Lvgu
Financial Lvgu Financial Fund
Lease Lease
Current assets 44,793.22 22,357.48 1,380,092.59 107,237.16 77,805.80 21,730.37 1,492,712.71 122,804.10
Non-current assets 1,513,877.00 156,838.25 45,194.98 3,151.30 1,356,968.91 155,970.63 42,919.44 459.02
Total assets 1,558,670.22 179,195.73 1,425,287.57 110,388.46 1,434,774.71 177,701.00 1,535,632.15 123,263.12
Current liabilities 1,042,334.83 37.33 727,168.11 32,119.60 1,020,585.17 37.71 915,862.90 31,456.60
Non-current liabilities 338,762.31 - 101,295.42 2,448.78 250,335.36 - 49,089.63 -
Total liabilities 1,381,097.14 37.33 828,463.53 34,568.38 1,270,920.53 37.71 964,952.53 31,456.60
Shareholders’ equity attributable to 177,573.08 179,158.40 596,824.04 75,820.08 163,854.18 177,663.29 570,679.62 91,806.52
parent company
Share of net assets calculated based 46,169.00 89,534.41 292,443.78 37,151.84 42,602.08 88,796.11 279,633.01 44,985.19
shareholding ratio
Adjustments - -8.96 -6,617.54 942.95 - -8.88 -3,939.17 942.95
--unrealized profits of internal - -8.96 -6,617.54 942.95 - -8.88 -3,939.17 942.95
transactions
Book value of equity investment in 46,169.00 89,525.45 285,826.24 38,094.79 42,602.08 88,787.23 275,693.84 45,928.14
joint ventures
Operating revenue 28,545.90 - 171,172.95 2,172.40 19,148.81 743.86 130,649.27 89,556.04
Net profits 13,718.90 8,934.93 25,513.10 2,013.56 11,330.05 682.67 15,476.32 23,941.44
Total comprehensive income 13,718.90 8,919.21 25,513.10 2,013.56 11,330.05 682.67 15,476.32 23,941.44
Dividend on associates received in - - - 8,820.00 - - -
the current year
Other statements
Nil
147 / 180
Semi-annual Report for 2022
(4). Summary of financial information of unimportant joint ventures and associates
√Applicable □Not applicable
Unit: RMB
Closing balance/amount in the Opening balance/amount in the
current period previous period
Joint ventures:
Total book value of 71,171,889.04 56,813,304.76
investments
Total amounts of the following items calculated based on shareholding ratio
--Net profits 14,358,584.28 -17,417,905.83
--Total comprehensive income 14,358,584.28 -17,417,905.83
Associates:
Total book value of 470,662,439.31 461,933,497.77
investments
Total amounts of the following items calculated based on shareholding ratio
--Net profits -7,520,626.68 -2,760,126.81
--Total comprehensive income -7,520,626.68 -2,760,126.81
Other statements
Nil
(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 an investment in joint ventures
□Applicable √Not applicable
(8). Contingent liabilities relating to an investment in joint ventures or associates
□Applicable √Not applicable
4. Important joint operations
□Applicable √Not applicable
5. Equity in structured entities not included in the consolidated financial statements
Notes on structured entities not included in the consolidated financial statements:
□Applicable √Not applicable
6. Others
□Applicable √Not applicable
X. Risks associated with financial instruments
√Applicable □Not applicable
1. Classification of financial instruments
The book values of financial instruments on the balance sheet date are as follows:
June 30, 2022
148 / 180
Semi-annual Report for 2022
Financial assets
Financial assets
measured at
that are measured
fair value and
by fair value and of
whose changes
which the changes Measured at
are included in Total
in fair value are amortized cost
other
recognized in the
comprehensive
profit or loss for
income
the current period
Requirements in Designated
the standard
Cash and cash
equivalents
- 4,499,334,048.52 - 4,499,334,048.52
Held-for-trading
51,033,592.50 - - 51,033,592.50
financial assets
Accounts
- 73,782,158.07 - 73,782,158.07
receivable
Other receivables - 746,718,985.83 - 746,718,985.83
Other current
- 2,110,199.39 - 2,110,199.39
assets
Long-term
- 270,534,332.30 - 270,534,332.30
receivables
Other equity
instruments - - 538,083,278.52 538,083,278.52
investment
Other non-current
financial assets 1,573,087,817.52 - - 1,573,087,817.52
1,624,121,410.02 5,592,479,724.11 538,083,278.52 7,754,684,412.65
Financial liabilities Other
financial
liabilities
Short-term borrowings 587,435,842.88
Accounts payable 293,544,737.63
Other payables 1,326,087,294.15
Non-current liabilities due within
3,204,867,360.53
one year
Other current liabilities 4,066,990,475.43
Long-term borrowings 204,500,000.00
Bonds payable 1,514,288,084.70
Lease liabilities 203,602,525.97
11,401,316,321.29
2021
Financial assets
Financial assets
measured at
that are measured
fair value and
by fair value and of
whose changes
which the changes Measured at
are included in Total
in fair value are amortized cost
other
recognized in the
comprehensive
profit or loss for the
income
current period
Requirements in Designated
the standard
Cash and cash
equivalents
- 4,831,468,386.25 - 4,831,468,386.25
Held-for-trading
75,375,083.20 - - 75,375,083.20
financial assets
Accounts
- 185,237,530.89 - 185,237,530.89
receivable
Other receivables - 1,355,924,282.96 - 1,355,924,282.96
Other current
- 2,780,294.82 - 2,780,294.82
assets
Long-term
- 222,307,363.40 - 222,307,363.40
receivables
Other equity
instruments - - 642,187,968.77 642,187,968.77
investment
149 / 180
Semi-annual Report for 2022
Other non-current
financial assets 1,524,819,255.41 - - 1,524,819,255.41
1,600,194,338.61 6,597,717,858.32 642,187,968.77 8,840,100,165.70
Financial liabilities Other
financial
liabilities
Short-term borrowings 942,736,046.04
Accounts payable 493,360,429.02
Other payables 1,908,742,835.15
Non-current liabilities due within 3,664,241,923.08
one year
Other current liabilities 3,081,384,800.50
Long-term borrowings 771,250,000.00
Lease liabilities 205,942,673.93
11,067,658,707.72
2. Risks associated with financial instruments
The risks associated with financial instruments faced by the Group in regular activities mainly
include credit risk, liquidity risk and market risk. The main financial instruments of the Group
include cash, borrowings from banks, bonds payable and commercial papers payable. Those
instruments are used mainly to finance the operation of the Group. The Group has lots of
other financial assets and liabilities directly arising from operation, such as accounts
receivable, other receivables, accounts payable and other payables. The risks associated
with those financial instruments and the risk management strategy taken by the Group to
reduce those risks are stated as follows.
Credit risk
The Group only deals with the recognized third parties with good reputations. According to
its policy, the Group needs to carry out credit reviews on all clients who require to deal with
the Group on credit. In addition, the Group keeps monitoring the balance of accounts
receivable to ensure it will not face any material bad debt risk. For the transactions settled
other than in the functional currency of related business entities, unless with specific
approval of the Group’s credit control department, the Group will not provide the conditions
for dealing on credit. The Group also faces credit risks due to the provision of financial
guarantees. See Note XIV. 2 for details.
As the counterparties to the transactions of cash are banks with good reputations and high
credit ratings, the credit risk of those financial instruments is relatively low.
The Group’s other financial assets include cash, debt investment, other receivables and
certain derivatives, the credit risk of which is sourced from default by the counterparties, and
the maximum risk exposure is equal to the book value of those instruments.
As the clients from which the Group’s accounts receivable are receivable are scattered in
different sectors and industries, there’s no material credit risk concentrated within the
Group. The Group does not have any collaterals or other credit enhancements for the
balance of its accounts receivable.
See Notes VII. 5 and 8 for quantitative data on the Group's credit risk exposure in relation to
receivables and other receivables.
Criteria for significant increase in credit risk
The Group evaluates, on each balance sheet date, whether the credit risk of related
financial instruments has increased significantly since the initial recognition thereof. In
determining whether the credit risk of a financial instrument has increased significantly
since the initial recognition thereof, the Group takes into account the reasonable and
150 / 180
Semi-annual Report for 2022
well-grounded information that is accessible without unnecessary extra costs or efforts,
including the qualitative and quantitative analyses based on the Group’s historical data,
external credit risk rating and forward-looking information. The Group compares the risk of
financial instruments defaulting on the balance sheet date and the risk of them defaulting on
the date of initial recognition based on an individual financial instrument or a group of
financial instruments with similar credit risk characteristics to determine the changes in
anticipated default risk of the financial instrument(s) within the duration thereof.
If a financial instrument meets one or more of the following quantitative or qualitative
criteria, the Group will determine that its credit risk has increased significantly:
（1） The main quantitative criterion is that its probability of default within the remaining
duration on the reporting date rises by a certain margin from that at its initial
recognition;
（2） The main qualitative criterion is that the debtor has materially adverse changes in
business or financial conditions or is on the warning list of clients.
Definition of the assets whose credit has been impaired
In order to determine whether the credit of an asset has been impaired, the Group adopts
the criteria consistent with its internal credit risk management goal for related financial
instruments and also takes into account the quantitative and qualitative indicators. The
Group mainly considers the following factors while assessing whether the credit of a debtor
has been impaired:
（1） the issuer or debtor suffers material financial difficulty;
（2） the debtor is in breach of contract, such as breach in interest payment, principal
repayment or overdue payment;
（3） the creditor makes a compromise to the debtor which it would in no case make,
based on the economic or contract considerations in connection with the debtor’s
financial difficulty;
（4） the debtor is very likely to go bankrupt or enter into other financial reorganizations;
（5） the financial difficulty of the issuer or debtor results in the disappearance of the
active market of the financial asset;
（6） a financial asset is purchased or derived at a large discount and the discount
points to the fact of credit loss having been incurred.
The credit impairment of financial assets may be caused by multiple events together and
may not necessarily be caused by an individually identifiable event.
Measurement parameters of expected credit loss
Depending on whether credit risk has increased significantly and whether credit has been
impaired, the Group makes impairment provisions for the expected credit losses of different
assets within 12 months or the entire duration. The key parameters of expected credit loss
include the probability of default, loss given default and default risk exposure. The Group
has built the models of probability of default, loss given default and default risk exposure
based on the quantitative analysis of historical data (e.g. rating of counterparties, form of
guarantee and category of collaterals or pledges, form of repayment) and forward-looking
information.
The related definitions are as follows:
（1） The probability of default refers to the possibility that the debtor will be unable to
fulfill its payment obligations in the next 12 months or throughout the remaining
duration. The Group adjusts the probability of default based on the results of the
expected credit loss model and with forward-looking information included to
reflect the debtors’ probability of default under the current macroeconomic
environment.
151 / 180
Semi-annual Report for 2022
（2） The default loss rate refers to the Group’s expectation of the extent of losses
incurred due to the default risk exposure. The loss given default varies with the
type of counterparty, the form and priority of claims and collaterals. The loss
given default is the percentage of risk exposure loss at the time of default and is
calculated based on the coming 12 months or the entire remaining duration.
（3） The default risk exposure refers to the amount that the Group should pay out
when a default occurs in the next 12 months or throughout the remaining
duration.
The determination of significant increase in credit risk and the calculation of expected credit
loss both involve forward-looking information. The Group identifies the key economic
indicators that affect the credit risk and expected credit loss of various types of businesses
through the analysis of historical data.
The influence of those economic indicators on the probability of default and loss have given
default varies with the type of business. The Group predicts those indicators on a quarterly
basis based on experts’ judgments and determines their influence on the probability of
default and loss given default through regression analysis.
The Group makes impairment provisions for the expected credit loss of accounts receivable
and other receivables within the coming 12 months with the simplified method and general
method respectively. Please refer to Notes VII. 5 and 8 for details.
Liquidity risk
The Group manages the cash shortage risk with the cyclical liquidity plan tool. The tool
considers not only the maturity dates of financial instruments but also the estimated cash
flows arising from the operation of the Group.
The Group aims to make use of such financing instruments as bank loans, commercial
papers, MTNs, corporate bonds and long-term borrowings to maintain the balance between
the continuity and flexibility of financing. As of June 30, 2022, 77.72% of the Group's debts
would be due within one year (December 31, 2021: 87.59%).
The following table summarizes the analysis of the due day of financial liabilities based on
non-discounted contractual cash flows:
June 30, 2022
3 months-1 year (1 1 year - 5 years (5Above
Item At call 1-3 months Total
year inclusive) years inclusive) 5 years
Short-term
448,267.14 4,168,884.44 588,738,403.82 - - 593,355,555.40
borrowings
Accounts payable 237,076,730.72 56,468,006.91 - - - 293,544,737.63
Other payables 858,706,023.35 - - 467,381,270.80 - 1,326,087,294.15
Other current
4,532,809.76 4,066,147,671.23 - - - 4,070,680,480.99
liabilities
Non-current
liabilities due 388,888.89 2,811,146,666.67 405,950,000.00 - - 3,217,485,555.56
within one year
Long-term
153,375.00 1,426,387.50 4,202,475.00 213,321,875.00 - 219,104,112.50
borrowings
Bonds payable - 68,600,000.00 1,930,060,000.00 - 1,998,660,000.00
Total 1,101,306,094.86 6,939,357,616.75 1,067,490,878.82 2,610,763,145.80 - 11,718,917,736.23
2021
Above
3 months-1 year 1 year - 5 years (5
Item At call 1-3 months 5 Total
(1 year inclusive) years inclusive)
years
Short-term
2,580,651.41 253,953,316.72 702,138,696.23 - - 958,672,664.36
borrowings
Accounts
433,048,081.66 60,312,347.36 - - - 493,360,429.02
payable
Other payables 1,337,432,161.48 - - 571,310,673.67 - 1,908,742,835.15
Other current 4,304,034.67 - 3,064,041,095.89 - - 3,068,345,130.56
152 / 180
Semi-annual Report for 2022
liabilities
Non-current
liabilities due 326,666.67 50,424,666.67 3,639,370,038.05 - - 3,690,121,371.39
within one year
Long-term
2,178,645.83 4,357,291.67 19,607,812.50 785,678,164.58 - 811,821,914.58
borrowings
Total 1,779,870,241.72 369,047,622.42 7,425,157,642.67 1,356,988,838.25 - 10,931,064,345.06
Market risks
Interest rate risk
The risk of changes in market interest rates faced by the Group is mainly related to
the Group's long-term liabilities at floating interest rates.
The Group manages interest costs by maintaining an appropriate combination of
fixed-rate debts and variable-rate debts. As of Jun 30, 2022, the Company had no
long-term borrowings among its long-term liabilities, the interest rates of which were
adjusted on an annual basis based on the benchmark loan rate on the anniversary
dates. Therefore, the management believes that its risk of market interest rate
change is relatively low.
Foreign exchange rate risk
The Group faces trading exchange rate risks. Such risks are caused by sales or
purchases made by certain business units in currencies other than their
bookkeeping currency. 1.15% (2021: 0.86%) of the Group's sales in the current
period were denominated in a currency other than the functional currency of the
operating unit where the sales occurred, while 98.85% (2021: 99%) of the costs
were denominated in the functional currency of the operating unit. Considering the
Group’s short time of inventory and timely collection of accounts receivable, the
management believes that its foreign exchange rate risk is relatively low.
Price risk of equity instrument investments
The price risk of equity instrument investments refers to the risk of the fair value of
equity securities decreasing due to the changes in stock indices and value of
individual securities. As of Jun 30, 2022, the Group was exposed to the price risk of
equity instrument investments arising from the individual equity instrument
investments classified as the financial instruments that are measured by fair value
and of which the changes in fair value are recognized in income in current period
(Note VII. 2) or recognized in other comprehensive income (Note VII. 18). The listed
equity instruments that were invested and held by the Group were listed on the
Shanghai Stock Exchange and the Shenzhen Stock Exchange, respectively,the
determination is made through discounting and adjustment using the trading prices
of similar circulating stocks of the same listed company on the balance sheet date,
combined with liquidity.
The market stock indexes of the following stock exchanges at the closing point of the
trading day that is closest to the balance sheet date, and their respective highest and
lowest closing points during the year are as follows:
End of June Jan-Jun 2022 End of 2021 Jan-Jun 2021
2022 Max/Min Max/Min
SZSE-A Share 2,327 2,645/1,833 2,648 2,583/2,261
Index
SSE-A Share 3,562 3,807/3,025 3,814 3,875/3,519
153 / 180
Semi-annual Report for 2022
Index
The following table indicates the sensitivity of the Group’s net profit and loss and
other comprehensive income after tax to the change each 10% of the fair value of
equity instrument investment (based on the book value on the balance sheet date)
under the assumption that all other variables remain unchanged.
End of June 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
by10%
Shenzhen -
Investment in the
equity instruments that
are measured by fair
value and of which the 538,083,278.52 - 40,356,245.89 40,356,245.89
changes in fair value
are recognized in other
comprehensive
income
Shanghai - Equity
instrument investment
26,033,592.50 1,952,519.44 - 1,952,519.44
at fair value through
profit or loss
2021
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%
Shenzhen -
Investment in the
equity instruments that
are measured by fair
value and of which the 642,187,968.77 48,164,097.66 48,164,097.66
changes in fair value
are recognized in other
comprehensive
income
Shanghai - Equity
instrument investment
50,375,083.20 3,778,131.24 - 3,778,131.24
at fair value through
profit or loss
3. Capital management
154 / 180
Semi-annual Report for 2022
The main objective of the Group in capital management is to ensure the Group’s
ability to continue operations and maintain a healthy capital ratio to support its
business development and maximize the values for shareholders.
The Group manages and adjusts its capital structure based on the changes in the
economic situation and the risk characteristics of related assets. To maintain or
adjust the capital structure, the Group may adjust the distribution of profits to
shareholders, return capital contribution to shareholders or issue new shares. The
Group is not subject to external mandatory capital requirements. From January to
June 2022 and 2021, there was no change in capital management objectives,
policies or procedures.
XI. Disclosure of fair value
1. Closing fair value of the assets and liabilities measured by fair value
√Applicable □Not applicable
Unit: RMB
Closing fair value
Item
Level 1 fair value Level 2 fair value Level 3 fair value Total
I. Continuous fair value
measurement
(1) Held-for-trading financial assets 26,033,592.50 - 25,000,000.00 51,033,592.50
1. Financial assets that are
measured at fair value and whose
26,033,592.50 - 25,000,000.00 51,033,592.50
changes are included in the current
profit and loss
(2) Investment in equity instruments 26,033,592.50 - - 26,033,592.50
(4) Bank wealth management
- - 25,000,000.00 25,000,000.00
products
(3) Other equity instruments
538,083,278.52 - - 538,083,278.52
investment
(vi) Other non-current financial
- 886,219,106.15 686,868,711.37 1,573,087,817.52
assets
Total assets are continuously
564,116,871.02 886,219,106.15 711,868,711.37 2,162,204,688.54
measured by fair value
2. Basis for determining the market prices of the items continuously and non-continuously
measured by Level 1 fair value
√Applicable □Not applicable
The Group's continuous first-level fair value measurement items mainly include listed equity
instruments, whose fair value is determined based on the market quotation on the last trading day of
June 2022.
3. Valuation techniques and qualitative and quantitative information of important
parameters for the items continuously and non-continuously measured by Level 2 fair
value
√Applicable □Not applicable
The Group’s level-2 items continuously measured at fair value mainly include unlisted equity
investments and listed equity instruments with restricted sales conditions. The fair value of unlisted
equity investments is determined based on the information in the financial statements of these
unlisted companies as of June 30, 2022, combined with comparable information of listed companies
in the industry, using the comparable company multiplier method. In the listed equity instruments
subject to restricted sales conditions, the valuation model is used to determine the fair value based
on the market quotation, and the important observable input value is the liquidity discount.
155 / 180
Semi-annual Report for 2022
4. Valuation techniques and qualitative and quantitative information of important
parameters for the items continuously and non-continuously measured by Level 3 fair
value
√Applicable □Not applicable
The Group’s level-3 items continuously measured at fair value include equity investments and
debt investments in non-listed companies for which the comparable company multiplier method
cannot be used. The fair value of the equity investments and debt investments in non-listed
companies for which the comparable company multiplier method is not suitable are determined with
the asset-based method as of June 30, 2022.
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
June 30, 2022
Entries used in the fair value measurement
Quotation in an Important observable Important observable
active market entry entry
Level 1 Level 2 Level 2 Total
Bonds payable (current 4.583.517.932.98 4.583.517.932.98
portion included)
9. Others
√Applicable □Not applicable
Estimate of fair value
Fair value of financial instruments
The table below shows the differences between book value and fair value of
the Group’s financial instruments other than the financial instruments with
very small differences between book value and fair value and the equity
instruments that did not have an offering price in the active market and whose
fair value could not be measured reliably:
Book value Fair value
June 30, 2022 2021 June 30, 2022 2021
Financial
liabilities bonds
payable
(current portion
included) 4.301.169.332.94 3,552,960,829.66 4.583.517.932.98 3,549,754,103.37
156 / 180
Semi-annual Report for 2022
The management has evaluated cash and cash equivalents, accounts receivable,
notes payable and accounts payable. Their fair values were equivalent to their book
values as their remaining terms were not long. The fair values of long-term
receivables, other non-current assets, long and short-term borrowings and
long-term accounts payable were determined with the discounted future cash flow
method, with the market yields of other financial instruments with similar contract
terms, credit risks and remaining terms as the discount rates. Their fair values were
equivalent to their book values.
The Group's finance department, headed by the General manager of the Group
Finance Center, is responsible for developing policies and procedures for the fair
value measurement of financial instruments. The General Manager of the Group
Finance Center reports directly to the Group Finance Officer, who reports to the
Audit Committee. On each balance sheet date, the financial department analyzes
the changes in the value of financial instruments and determines the main input
values applicable to the valuation. The valuation shall be reviewed and approved by
the Group's Financial Director. For the preparation of semi-annual and annual
financial statements, the valuation process and results are discussed with the audit
committee twice a year.
The fair values of financial assets and financial liabilities refer to the amounts
determined based on the voluntary exchange of assets or repayment of debts by the
parties to arm’s length transactions who are familiar with the transactions rather than
forced sale or liquidation. The following methods and assumptions are used to
estimate fair value.
The fair value of bonds payable is determined with the discounted future cash flow
method, with the market yields of other financial instruments with similar contract
terms, credit risks and remaining terms as the discount rates, and falls in Level 2.
The significant unobservable inputs for measurement of the fair value of bonds
payable are the prepayment rate and loss given default.
If there are no restrictions on the sale of listed equity instruments, the fair value is
determined at the quoted market price. In the listed equity instruments subject to
restricted sales conditions, the valuation model is used to determine the fair value
based on the market quotation, and the important observable input value is the
liquidity discount. The Group believes that the fair value estimated by valuation
techniques is reasonable and is also the most appropriate value on the balance
sheet date.
There was no significant conversion of the Group’s and the Company’s financial
instruments measured by fair value between different levels in the current year and
the previous year.
XII. Related parties and related-party transactions
1. Parent company of the Company
√Applicable □Not applicable
Unit: RMB10,000
Shareholding Voting right ratio
Name of parent Place of Registered
Business ratio in the in the Company
company registration capital
Company (%) (%)
Yiwu, Asset
CCCH 100,000 55.33 55.33
Zhejiang management
Notes on the parent company of the Company
Nil
The ultimate controlling party of this enterprise is the State-owned Assets Supervision and
Administration Office of Yiwu Municipal People's Government.
157 / 180
Semi-annual Report for 2022
Other notes:
Nil
2. Subsidiaries of the Company
For details of the Company’s subsidiaries, please refer to the Notes
√Applicable □Not applicable
For details of subsidiaries, please refer to Note IX. 1. Equity in subsidiaries
3. Joint ventures and associates of the Company
For details of the Company’s important joint ventures or associates, please refer to the Notes
√Applicable □Not applicable
For details, please refer to Note IX. 3. Interests in joint ventures or associated enterprises
Other joint ventures or associates that have related-party transactions with the Company in the
current period or had related-party transactions with the Company in the prior year which resulted in
an outstanding amount are as follows
√Applicable □Not applicable
Name of joint venture or associate Relationship
with the
Company
Yiwu Shanglv Joint venture
Yiwu Huishang Redbud Capital Management 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 OPERATION Associate
FZCO
Yiwu Digital Port Technology Co., Ltd. Associate
CCCP 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
SCO shareholder of the Company’s
largest shareholder
Controlling shareholder of the
MDG
Company’s largest shareholder
Subsidiary of the Company’s
Yiwu China Commodities City Property Service Co., Ltd.
largest shareholder
Branch of Controlling shareholder
Xingfuhu International Conference Center Company of Yiwu
of the Company’s largest
Market Development Group Co., Ltd.
shareholder
Subsidiary of controlling
Yiwu Security Service Co., Ltd. shareholder of the Company’s
largest shareholder
Subsidiary of controlling
Zhejiang Xingfuhu Sports Development Co., Ltd. shareholder of the Company’s
largest shareholder
Huangyuan Shangbo Subsidiaries of joint ventures
Chengzhen Property Subsidiaries of joint ventures
Yiwu Gongchen Shangbo Property Co., Ltd. Subsidiaries of joint ventures
158 / 180
Semi-annual Report for 2022
Tonghui Shangbo Subsidiaries of joint ventures
Zhejiang Shangbo Property Co., Ltd. Subsidiaries of associates
Handing Shangbo Subsidiaries of associates
Other statements
Nil
5. Related-party transactions
(1). Related-party transactions of purchasing and selling goods and rendering and
accepting service
Purchasing goods/accepting service
√Applicable □Not applicable
Unit: RMB
Contents of
Amount in the current Amount in the previous
Related party related-party
period period
transaction
Yiwu China Commodities Property service fee
City Property Service Co., and greening 72,002,626.73 -
Ltd. maintenance fee
Yiwu Security Service Co., Pandemic prevention
Ltd. and control and
10,543,139.42 37,500.00
exhibition security
service fee
Yiwu China Commodities
City Creative Design and
Design fee 379,844.66 -
Development Services
Co., Ltd.
Selling goods/rendering service
√Applicable □Not applicable
Unit: RMB
Contents of
Amount in the current Amount in the previous
Related party related-party
period period
transaction
MDG and its branch Laundry costs, venue
Xingfuhu International rental costs, etc. 438,145.35 2,406,375.28
Conference Center
Yiwu Meipinshu Supply Procurement agency
Chain Management Co., 51,833.38 1,566,898.69
Ltd.
CCCP Payment for pandemic
- 1,280.00
prevention materials
Pujiang Lvgu Property Payment for pandemic - 272.00
Co., Ltd. prevention materials
Notes on related-party transactions of purchasing and selling goods and rendering and accepting
service
□Applicable √Not applicable
(2). Entrustment/contracting from and to related parties
Entrustment/contracting to the Company:
√Applicable □Not applicable
Unit: RMB
159 / 180
Semi-annual Report for 2022
Starting Ending Entrustment
date of date of Pricing of income/contra
Name of Name of Type of
entrustm entrustm entrustment cting income
consignor/empl consignee/contr entrusted/contr
ent ent income/contra recognized in
oyer actor acted assets
/contracti /contracti cting income the current
ng ng period
The Company Entrustment of Feb 1, Jan 31, Negotiated 182,819.84
MDG
other assets 2020 2025 price
Notes on entrustment/contracting from related parties
√Applicable □Not applicable
According to the Xingfuhu International Conference Center Management Contract signed by
and between the Company and the Market Development Group, the Company is entrusted to
manage Xingfuhu International Conference Center Hotel located at No. 100, Xingfuhu Road, Yiwu
City. The hotel management fee collected during the reporting period was RMB 182,819.84
(January- June 2021: RMB 895,759.55)
Entrustment/contracting from the Company:
□Applicable √Not applicable
Notes on related-party management/contracting
□Applicable √Not applicable
(3). Related-party lease
The Company as the lessor:
√Applicable □Not applicable
Unit: RMB
Rental income Rental income
Type of leased
Name of lessee recognized in the recognized in the
asset
current period previous period
CCCP Office space 468,572.46 -
Yiwu Huishang Redbud Capital Office space
123,409.56 123,409.53
Management Co., Ltd.
Yiwu China Commodities City Office space
72,225.96 -
Property Service Co., Ltd.
Huishang Micro-finance Office space 10,171.46 196,476.69
Zhejiang Yemai Data Technology Office space
- 22,184.76
Co., Ltd.
The Company as the lessee
□Applicable √Not applicable
Notes on related-party lease
□Applicable √Not applicable
(4). Related-party guarantees
The Company as the guarantor
√Applicable □Not applicable
Unit: RMB
Amount of Starting date of the Expiry date of the Is the guarantee
The guaranteed
guarantee guarantee guarantee fulfilled in full
Yiwu Shanglv 125,428,608.27 Jul 1, 2015 Dec 15, 2026 No
The Company as the guaranteed party
□Applicable √Not applicable
Notes on related-party guarantees
160 / 180
Semi-annual Report for 2022
√Applicable □Not applicable
The Group provided guarantee for the borrowings of Yiwu Shanglv. As of June 30, 2022, Yiwu
Shanglv actually borrowed RMB 255.9768 million ( Dec 31, 2021: RMB 296.5056 million ) from
banks. According to the guarantee contract, the Group assumed liability for RMB 125.4286 million
(Dec 31, 2021: RMB 145.2877 million). SCO provided a counter-guarantee
(5). Related-party lending and borrowing
√Applicable □Not applicable
Unit: RMB
Related Maturity
Amount Starting date Description
party date
Borrowings
Huangyuan 436,100,000.00 Jul 31, 2020 The Group allocated a total of RMB 436,100,000.00 of
Shangbo surplus funds from Huangyuan Shangbo in 2020, and
allocated a total of RMB 171,500,000.00 of surplus
funds from Huangyuan Shangbo in 2021. The
allocations were based on the shareholding rate and the
annual interest rate was 0%. As of June 30, 2022, RMB
580,865,600.00 was converted into dividends, and the
remaining RMB 26,734,400.00 was transferred back to
Huangyuan Shangbo.
Huangyuan 171,500,000.00 Jan 26, 2021 Ditto
Shangbo
Chengzhen 27,200,000.00 Oct 22, 2020 The Group allocated a total of RMB 27,200,000.00 of
Property surplus funds from Chengzhen Real Estate in 2020, a
total of RMB172,800,000.00 of surplus funds from
Chengzhen Real Estate in 2021, and a total of RMB
72,000,000.00 of surplus funds from Chengzhen Real
Estate in 2022. The allocations were based on the share
holding rate and the annual interest rate was 0%. As of
June 30, 2022, RMB 60,000,000.00 was converted into
dividends, and the return date of the remaining funds is
determined according to the capital needs of the
Chengzhen Real Estate Project.
Chengzhen 172,800,000.00 Jan 26, 2021 Ditto
Property
Chengzhen 72,000,000.00 Jan 18, 2022 Ditto
Property
Related party Amount Starting date Maturity Description
date
Lending to
Tonghui 742,568,548.00 Nov 17, 2022 In 2020, the Group provided a total of RMB
Shangbo 742,568,548.00 in financial assistance to
Tonghui Shangbo, and in 2021, it provided a total
of RMB138,160,000.00 in financial assistance to
Tonghui Shangbo, with an annual interest rate of
6.5%. Tonghui Shangbo repaid RMB
735,000,000.00 successively in 2022.
Tonghui 138,160,000.00 Feb 26, 2021 Ditto
Shangbo
Handing 204,604,400.00 Dec 11, 2020 In 2020, the Group provided financial assistance
Shangbo to Handing Shangbo totaling RMB
204,604,400.00, and in 2021, the Group provided
financial assistance to Handing Shangbo totaling
RMB 17,845,800.00, with an annual interest rate
of 6%. Handing Shangbo repaid RMB
14,700,000.00 successively in 2022.
161 / 180
Semi-annual Report for 2022
Handing 17,845,800.00 May 11, 2021 Ditto
Shangbo
JEBEL ALI 63,465,484.42 Mar 9, 2020 In 2020, the Group provided JEBEL ALI FREE
FREE ZONE ZONE TRADER MARKET DEVELOPMENT
TRADER AND OPERATION FZCO financial assistance
MARKET totaling RMB 63,465,484.42; in 2021, the Group
DEVELOPMENT provided it with financial assistance totaling RMB
AND 109,636,517.09; in 2022, the Group provided it
OPERATION with financial assistance totaling RMB
57,544,119.40, and received interests of RMB
9,424,876.07, all at an annual interest rate of
6-month average EIBOR plus 5%. The
repayment term of the financial assistance is
determined based on the progress of the project.
JEBEL ALI 109,636,517.09 Mar 31, 2021 Ditto
FREE ZONE
TRADER
MARKET
DEVELOPMENT
AND
OPERATION
JEBEL ALI 57,544,119.40 May 12, 2022 Ditto
FREE ZONE
TRADER
MARKET
DEVELOPMENT
AND
OPERATION
(6). Related-party transfer of assets and restructuring of debts
□Applicable √Not applicable
(7). Remunerations of key officers
√Applicable □Not applicable
Unit: RMB10,000
Amount in the previous
Item Amount in the current period
period
Remunerations of key officers 771.29 827.37
(8). Other related-party transactions
□Applicable √Not applicable
6. Accounts receivable from and payable to related parties
(1). Receivables
√Applicable □Not applicable
Unit: RMB
Closing balance Opening balance
Item Related party Bad debt Bad debt
Book balance Book balance
provision provision
Xingfuhu
International
Conference Center
Accounts
Company of Yiwu 221,008.90 353.61 369,743.93 -
receivable Market
Development
Group Co., Ltd.
Yiwu Gongchen
Accounts
Shangbo 87,545.18 140.07 97,351.08 -
receivable
Property Co.,
162 / 180
Semi-annual Report for 2022
Ltd.
Accounts CCCP
5,800.00 9.28 9,000.00 -
receivable
Accounts Tonghui
- - 6,200,000.00 -
receivable Shangbo
Total 314,354.08 502.96 6,676,095.01 -
Other Handing
receivables-interest Shangbo 3,107,715.32 - - -
receivable
Other Tonghui
receivables-interest Shangbo - - 92,249,275.44 -
receivable
Handing
Other receivables 207,750,200.00 - 222,450,200.00 -
Shangbo
Tonghui
Other receivables 258,477,909.38 - 880,728,548.00 -
Shangbo
Total 469,335,824.70 - 1,195,428,023.44 -
Long-term Yiwu Shanglv
41,650,000.00 - 41,650,000.00 -
receivables
JEBEL ALI
FREE ZONE
TRADER
Long-term MARKET
221,221,244.84 - 173,102,001.51 -
receivables DEVELOPMENT
AND
OPERATION
FZCO
Total 262,871,244.84 - 214,752,001.51 -
(2). Payables
√Applicable □Not applicable
Unit: RMB
Item Related party Closing book Opening book
balance balance
Accounts Yiwu China Commodities City Property 60,901,038.04 -
payable Service Co., Ltd.
Accounts Zhejiang Yemai Data Technology Co., Ltd. 176,873.43 176,873.43
payable
Total 61,077,911.47 176,873.43
Advance from Yiwu Huishang Redbud Capital 226,899.53 82,273.06
customers Management Co., Ltd.
Advance from CCCP 244,915.59 612,288.99
customers
Advance from Yiwu Digital Port Technology Co., Ltd. 28,070.44 112,281.94
customers
Advance from Huishang Micro-finance 9,454.12 20,798.09
customers
Advance from Yiwu China Commodities City Property - 32,052.85
customers Service Co., Ltd.
Advance from Yiwu Meipinshu Supply Chain Management - 31,195.06
customers Co., Ltd.
Total 509,339.68 890,889.99
Contract Yiwu Digital Port Technology Co., Ltd. 26,886.57 22,205.25
liabilities
Contract Yiwu China Commodities City Property 8,646.70 332.00
liabilities Service Co., Ltd.
163 / 180
Semi-annual Report for 2022
Contract Yiwu Security Service Co., Ltd. 1,830.60 2,004.40
liabilities
Contract Huishang Micro-finance - 7,966.42
liabilities
Total 37,363.87 32,508.07
Other payables Chengzhen Property 212,000,000.00 200,000,000.00
Yiwu Shangfu Chuangzhi Investment 34,000,500.00 34,000,500.00
Other payables
Center (limited partnership)
Yiwu Huishang Redbud Equity Investment 10,000,000.00 4,500,000.00
Other payables
Co., Ltd.
Other payables CCCP 240,000.00 240,000.00
Other payables MDG 87,656.62 63,334.76
Yiwu Meipinshu Supply Chain Management 57,000.00 57,000.00
Other payables
Co., Ltd.
Other payables Yiwu Digital Port Technology Co., Ltd. 26,300.00 26,300.00
Other payables Huangyuan Shangbo - 607,600,000.00
Hangzhou Binjiang Shangbo Property - 14,700,000.00
Other payables
Development Co., Ltd.
Other payables Yiwu Shanglv - 75,000.00
Other payables Huishang Micro-finance - 33,000.00
Other payables Yiwu Gongchen Shangbo Property Co., Ltd. - 3,000.00
Total 256,411,456.62 861,298,134.76
7. Related-party commitments
□Applicable √Not applicable
8. Others
□Applicable √Not applicable
XIII. Share-based payment
1. Overview of share-based payment
√Applicable □Not applicable
Unit: Share Currency: RMB
Total amount of equity instruments granted by the Company -
in the current period
The total amount of equity instruments exercised by the -
Company during the current period
The total amount of the Company's equity instruments that -
have lapsed during the current period
Scope of the exercise price of the stock options issued by The grant prices were RMB 2.94 and
the Company and the remaining period of the contract at RMB 2.39, respectively, both in 60
the end of the period months from the date of grant
registration
Scope of the exercise price of other equity instruments
issued by the Company and the remaining period of the
contract at the end of the period
Other statements
Nil
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
164 / 180
Semi-annual Report for 2022
instruments on the grant date
Basis for determining the number of exercisable Determined based on the number of incentive
equity instruments objects that have reached the assessment
target, through an annual assessment of the
Company’s financial performance indicators
and personal performance indicators.
Reason for the significant difference between the
estimates in the current period and in the previous
period
Cumulative amount of equity-settled share-based 49,830,088.86
payments included in the capital reserve
Total amount of expenses recognized by 11,093,878.59
equity-settled share payments in the current
period
Other statements
On December 10, 2020, the 2020 fifth extraordinary general meeting of shareholders of the
Company reviewed and approved the “Plan on the Company's Restricted Equity Incentive Plan 2020
(Draft)” and its summary. A total of 50,480,000 restricted shares were granted, accounting for about
0.927% of the Company's total share capital of 5,443,214,176 shares, of which 47,920,000 shares
were granted for the first time and 2,560,000 shares were reserved. During the subscription process,
10 incentive objects voluntarily waived the restrictions to be granted to them due to personal reasons.
Therefore, 46,700,000 restricted shares were actually granted this time, and the number of incentive
objects was 395. On January 15, 2021, the Company's board of directors completed the registration
of the first grant of restricted stocks.
After consideration and approval at the thirty-fifth meeting of the eighth the Board of Directors
and the ninth meeting of the eighth Board of Supervisors of the Company held on August 9, 2021, in
view of the fact that among the original incentive objects granted for the first time, 6 incentive objects
including ZHAO Qitong no longer worked in the Company due to their position adjustments, and
three incentive objects including HOU Wenbin had resigned due to personal reasons, according to
the relevant regulations of the "Incentive Plan" and the authorization of the Fifth Provisional General
Meeting of Shareholders in 2020, the Board of Directors of the Company decided to repurchase and
canceled a total of 980,000 restricted shares granted to the above nine persons but yet to be
released. The Company would repurchase and cancel the restricted shares held by the
above-mentioned 9 persons that had been granted but not yet been released at the sum of interest
calculated at RMB 2.885 per share and the fixed deposit interest rate announced by the People's
Bank of China for the same period. The total amount of restricted stock repurchase funds this time
was RMB 2.852 million, and the above-mentioned repurchase funds would all be paid with the
Company's own funds.
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 equity
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. During this grant registration process, in view of the
fact that 3 of the incentive objects to be granted on the reserved grant date are no longer eligible for
incentive objects due to their voluntary abandonment; 31 incentive objects actually subscribed this
time, and 2.34 million shares were subscribed. 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".
The restricted stocks granted for the first time under the restricted equity incentive plan should
be vested in three terms from the first trading day after 24 months after the grant registration is
completed until the last trading day in 60 months after the grant registration is completed. That is,
after the vesting conditions have been satisfied, employees have the right to purchase stocks at the
vesting price. If the vesting conditions of the restricted equity incentive plan have been satisfied
during the vesting period, the incentive objects can apply for the ownership of stocks and be listed
for circulation.
165 / 180
Semi-annual Report for 2022
3. Share-based payment settled with cash
□Applicable √Not applicable
4. Modification and termination of share-based payment
□Applicable √Not applicable
5. Others
□Applicable √Not applicable
XIV.Commitments and contingencies
1. Important commitments
√Applicable □Not applicable
Important external commitments, nature and amount thereof as of the balance sheet dates
Unit: RMB Yuan
Capital commitments June 30, 2022 2021
Signed but not provided 3,804,207,407.19 2,165,863,780.60
Investment commitments:
In 2017, the Group’s wholly-owned subsidiary Yiwu China Commodities City Financial Holdings
Co., Ltd. (“CCCF”) and Shanghai Fuxing Industry Group Co., Ltd. (“Fuxing 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 RMB998million in the FoF as a
limited partner, accounting for 49.9% of the total capital contribution, and has paid in
RMB102.92million. The unpaid portion of its subscribed capital contribution was promised to be
RMB895.08million and was not subject to a term. CCCF also made capital contribution of
RMB9.8million (49% equity) to Yiwu China Commodities City Investment and Management Co., Ltd.
(hereinafter referred to as the “CCCIM”), which was a general partner of the above FoF and
sub-funds. Fuxing made capital contribution of 51% to and had control over CCCIM.
Shangfu Chuangzhi Fund raised funds of RMB823.36million in total. The FoF has subscribed
for and paid in capital contribution of RMB205.84million as a limited partner (including the above
RMB102.92million from CCCIM and the rest was contributed by Fuxing, the other limited partner of
the FoF). As the other limited partner of Shangfu Chuangzhi Fund, CCCF has separately subscribed
for and paid in capital contribution of RMB617.51million. In addition, neither the Group nor CCCF
have invested in other sub-funds of the FoF. Subsequently, Shangfu Chuangzhi Fund made capital
contribution of RMB820.54million to subscribe for the increase in the registered capital of Hubei
Provincial Asset Management Co., Ltd. to acquire 22.667% equity therein. By 2019, 9 out of the
above 12 sub-funds had been deregistered.
In 2018, CCCF learned during its after-investment follow-up management that Fuxing and its
actual controller ZHU Yidong were suspected of having committed a criminal offense and the
22.667% equity held by Shangfu Chuangzhi Fund in Hubei Provincial Asset Management Co., Ltd.
was frozen by the Public Security Bureau of Shanghai for a term from Sep 6, 2018 to Sep 6, 2019
due to Fuxing’s contribution in the sources of the capital contribution. As of the date of this report, the
freeze period has been extended until September 2, 2022.
As of the date of this report, the Group had not received any notice of capital contribution other
than the above contributions that had been made or any notice of action involving the Group, CCCF,
FoF and its sub-funds.
In addition, as of June 30, 2022, the Group had other investment commitments totaling RMB
1.20066 billion (December 31, 2021: RMB 1.28078 billion).
166 / 180
Semi-annual Report for 2022
2. Contingencies
(1). Important contingencies on the balance sheet dates
√Applicable □Not applicable
Unit: RMB Yuan
Item June 30, 2022 2021
Contingent liabilities resulting from the 130,383,441.89 158,634,169.67
guarantee provided externally
According to relevant regulations, before the purchaser of the commercial housing sold by the
Group has obtained the property certificate, the Group shall provide the purchaser with a bank
mortgage guarantee. As of June 30, 2022, the unsettled guarantee amount was RMB 4,954,833.62
(December 31, 2021: RMB 5,063,333.60). 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 provisions for the guarantees.
According to the resolution of the 15th meeting of the 7th Board of Directors on Jul 1, 2015, the
Group applied to the Yiwu Branch of ABC for an RMB750million loan for Yiwu Shanglv and provided
guarantee based on its shareholding ratio. The guarantee was a joint and several liability guarantee,
the maximum amount of guarantee was RMB367.5million and the term was 11 years. As of June 30,
2020, Yiwu Shanglv actually borrowed RMB 255,976,751.57 (December 31, 2021: 296,505,577.63)
from banks in total. According to the agreement of the guarantee contract, it assumed the guarantee
liability of RMB 125,428,608.27 (December 31, 2021: RMB 145,287,733.04) for the Agricultural
Bank of China Yiwu Branch. 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. Others
□Applicable √Not applicable
XV. Post-balance sheet date events
1. Important non-adjusting events
√Applicable □Not applicable
Unit: RMB
Effect on Reasons for
financial status inability to
Item Content
and operating estimate the
results effect
Medium-term On July 18, 2022, the Company issued the
note issuance third issue of medium-term note of RMB 500
million of Zhejiang China Commodities City
Group Co., Ltd. in 2022, with a term of 3
years and annual interest payment at an
interest rate of 3%.
Ultra-short-term On July 26, 2022, the Company issued
financing bond 61-day Zhejiang China Commodities City
issuance Group Co., Ltd.’s 2022 ultra-short-term
financing bonds (II) for RMB 1 billion at the
rate of 1.89 %.
Acquiring Haier On July 29, 2022, the Company completed
Network the acquisition of Haier Network. For details,
please refer to the "Announcement on the
Progress of the Acquisition of 100% Equity
Interests of Zhejiang Haier Network
Technology Co., Ltd. and the Completion of
Registration of Industrial and Commercial
Changes" (L2022-040)disclosed by the
167 / 180
Semi-annual Report for 2022
Company on the website of the Shanghai
Stock Exchange on August 3, 2022.
2. Profit distribution
□Applicable √Not applicable
3. Sales return
□Applicable √Not applicable
4. Other post-balance sheet date events
□Applicable √Not applicable
XVI.Other important events
1. Correction of previous accounting errors
(1). Retrospective restatement
□Applicable √Not applicable
(2). Prospective application
□Applicable √Not applicable
2. Debt restructuring
□Applicable √Not applicable
3. Exchange of assets
(1). Exchange of non-monetary assets
□Applicable √Not applicable
(2). Exchange of other assets
□Applicable √Not applicable
4. Annuity plan
□Applicable √Not applicable
5. Termination of operations
□Applicable √Not applicable
6. Information of divisions
(1). Determination basis and accounting policy of reporting divisions
√Applicable □Not applicable
Information of divisions is reported based on business divisions of the Group. In the
identification of region-based divisions, revenue is attributable to the divisions in the regions where
the clients are located, and assets are attributable to the divisions in the regions where the assets
are located. As the Group’s main operating activities and operating assets are both concentrated in
mainland China, it is not required to report more detailed information on region-based divisions.
The Group’s businesses are organized and managed separately based on the nature of
business and the products and services provided. Each business division of the Group is a business
department or a subsidiary and provides the products and services that face the risk different from
that faced by other business divisions and bring the compensations different from those brought by
other business divisions. The detailed information on business divisions are summarized as follows:
(a) Market operation segment refers to the business that the Group is engaged in market
operation, including the collection of business space usage fees and the rent of auxiliary buildings
and office buildings;
(b) The commodities sales division engages in the purchase and sale of goods such as export
trade;
168 / 180
Semi-annual Report for 2022
(c) The hotel service division engages in the operation of hotels including accommodation and
catering services;
(d) The exhibition advertising division engages in the design, production, placement and agency
of advertisements;
(e) Other services division covers the provision of market-related auxiliary services.
The transfer pricing between divisions is made based on the prices offered to third parties and
the then prevailing market prices.
(2). Financial information of reporting divisions
√Applicable □Not applicable
Unit: RMB million
Item Market Sales of Hotel Exhibition Other Set-offs Total
operation goods service and services among
advertising divisions
Revenue from external
1,495 2,401 91 18 202 - 4,207
transactions
Revenue from
inter-division 13 30 3 2 24 72 -
transactions
Profits before tax 1,500 -20 -15 -14 5 91 1,365
Total assets 39,207 1,133 449 156 5,557 16,295 30,207
Total liabilities 23,084 1,058 462 85 1,202 11,086 14,805
Capital expenditures 1,694 4 - 6 202 - 1,906
Long-term equity
investment in joint
4,592 1 - - 1,181 - 5,774
ventures and
associates
(3). If the Company does not have reporting divisions or is unable to disclose the total
assets and total liabilities of each division, please explain
□Applicable √Not applicable
(4). Other statements
□Applicable √Not applicable
7. Other important transactions and events that have influences on investors’ decisions
□Applicable √Not applicable
8. Others
□Applicable √Not applicable
XVII. 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
Within 1 year 25,212,421.40
1 to 2 years 120,212.00
2 to 3 years 100,234.00
Over 3 years 291,021.46
Total 25,723,888.86
169 / 180
Semi-annual Report for 2022
(2). Categorized disclosure based on the bad debt provision method
√Applicable □Not applicable
Unit: RMB
Closing balance Opening balance
Category Book balance Bad debt provision Book balance Bad debt provision
Book Book
Proportion Provision ratio value Proportion Provision value
Amount Amount Amount Amount
(%) (%) (%) ratio (%)
Accounts
receivable for
which bad debt - - - - - - - - - -
provision is
made individually
Accounts
receivable for
which bad debt 25,723,888.86 100.00 299,142.52 1.16 25,424,746.34 23,657,185.16 100.00 27,502.47 0.12 23,629,682.69
provision is
made by group
Among which:
Accounts
receivable for
which the bad
debts are
25,723,888.86 100.00 299,142.52 1.16 25,424,746.34 23,657,185.16 100.00 27,502.47 0.12 23,629,682.69
provided by
combination of
credit risk
characteristics
Total 25,723,888.86 / / 25,424,746.34 23,657,185.16 / 27,502.47 / 23,629,682.69
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 25,723,888.86 299,142.52 1.16
combination of credit risk
characteristics
Total 25,723,888.86 299,142.52 1.16
Standard for recognition of provision for bad debt by combination of credit risk characteristics and
descriptions:
□Applicable √Not applicable
If the bad debt provision is made according to the general model of expected credit loss, please refer
to the disclosure of other receivables:
√Applicable □Not applicable
Unit: RMB Yuan
June 30, 2022 2021
Estimated book Expected Expected Estimated book Expected Expected
Account age
balance in credit loss credit loss in balance in default credit loss credit loss for
default rate (%) whole duration rate (%) the duration
Within 1 year 25,212,421.40 0.01 55.28 23,204,362.72 0.01 50.87
1 - 2 years 120,212.00 0.29 343.17 100,234.00 0.29 286.13
2 -3 years 100,234.00 7.70 7,722.61 352,588.44 7.70 27,165.47
Over 3 years 291,021.46 100.00 291,021.46 - 100.00 -
Total 25,723,888.86 299,142.52 23,657,185.16 27,502.47
170 / 180
Semi-annual Report for 2022
(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 27,502.47 271,640.05 - 299,142.52
for accounts
receivable
Total 27,502.47 271,640.05 - 299,142.52
In which the recovered or reversed amount is important:
□Applicable √Not applicable
(4). Accounts receivable actually written off during the current period
□Applicable √Not applicable
(5). Accounts receivable from the five debtors with the highest closing balance
□Applicable √Not applicable
(6). Accounts receivable derecognized due to transfer of financial assets
□Applicable √Not applicable
(7). Amounts of assets and liabilities formed by the transfer of accounts receivable and
continuing involvement
□Applicable √Not applicable
Other notes:
□Applicable √Not applicable
2. Other receivables
Presentation of items
√Applicable □Not applicable
Unit: RMB
Item Closing balance Opening balance
Interest receivable 3,107,715.32 92,249,275.44
Other receivables 650,325,879.32 1,114,837,610.55
Total 653,433,594.64 1,207,086,885.99
Other notes:
□Applicable √Not applicable
Interest receivable
(1).Classification of interest receivable
√Applicable □Not applicable
171 / 180
Semi-annual Report for 2022
Unit: RMB
Item Closing balance Opening balance
Cash occupation fee for 3,107,715.32 92,249,275.44
receivables
Total 3,107,715.32 92,249,275.44
(2).Significant overdue interest
□Applicable √Not applicable
(3).Bad debt provision
□Applicable √Not applicable
Other notes:
√Applicable □Not applicable
As of June 30, 2022, the receivable capital occupation fee was the capital occupation fee
collectible by the Company for providing financial assistance to joint ventures.
Dividend receivable
(1).Dividend receivable
□Applicable √Not applicable
(2).Important dividend receivable with an account age longer than 1 year
□Applicable √Not applicable
(3).Bad debt provision
□Applicable √Not applicable
Other notes:
□Applicable √Not applicable
Other receivables
(1).Disclosure based on account age
√Applicable □Not applicable
Unit: RMB
Account age Closing book balance
Within 1 year 230,919,141.17
1 to 2 years 415,814,290.37
2 to 3 years 27,547.70
Over 3 years 4,337,665.60
Bad debt provision for other receivables -772,765.52
Total 650,325,879.32
(2).Categorization by nature
√Applicable □Not applicable
Unit: RMB
Nature of receivable Closing book balance Opening book balance
Financial assistance receivable 466,228,109.38 1,103,178,748.00
from joint ventures
Reserve 606,564.85 267,208.49
Withholdings, deposit and 183,491,205.09 11,391,654.06
172 / 180
Semi-annual Report for 2022
margin
Total 650,325,879.32 1,114,837,610.55
(3).Bad debt provision
√Applicable □Not applicable
Unit: RMB
Phase I Phase 2 Phase 3
Expected Expected credit Expected credit
Bad debt provision credit loss in loss in the entire loss in the entire Total
the coming 12 duration (credit has duration (credit has
months not been impaired) been impaired)
Balance on January 893,309.10 893,309.10
1, 2022
Provision made in 26,791.89 26,791.89
the current period
Current reversal 147,335.47 147,335.47
Balance on June 30, 772,765.52 772,765.52
2022
Significant changes in the book balance of other receivables with changes in loss provisions:
□Applicable √Not applicable
Basis for the bad debt provision made in the current period and for assessing whether the credit risk
of financial instruments has increased significantly:
□Applicable √Not applicable
(4).Provisions for bad debts
√Applicable □Not applicable
Unit: RMB
Amount of change during the
current period Closing
Category Opening balance
Recovery or balance
Provision
reversal
Bad debt provision for 893,309.10 26,791.89 147,335.47 772,765.52
other receivables
Total 893,309.10 26,791.89 147,335.47 772,765.52
In which the recovered or reversed amount is important:
□Applicable √Not applicable
(5).Other receivables actually written off during the current period
□Applicable √Not applicable
Notes on the write-off of other receivables:
□Applicable √Not applicable
(6).Other receivables from the five debtors with the highest closing balance
√Applicable □Not applicable
Unit: RMB
173 / 180
Semi-annual Report for 2022
Bad debt
Weight in the total
Nature of Account provision
Debtor Closing balance closing balance of
receivable age Closing
other receivables (%)
balance
Yiwu Tonghui Shangbo Real Financial
258,477,909.38 1-2 years 39.70 -
Estate Co., Ltd. assistance
Yiwu Handing Shangbo Financial
207,750,200.00 1-2 years 31.91 -
Real Estate Co., Ltd. assistance
Yiwu Municipal Bureau of Within 1
Land bid deposit 132,840,000.00 20.40 -
Finance year
Zhejiang Yuntong Over 3
Current accounts 596,580.00 0.09 596,580.00
Advertising Co., Ltd. years
Yiwu Power Transmission
and Transformation Current accounts 491,207.00 1-2 years 0.08 -
Engineering Co., Ltd.
Total / 600,155,896.38 / 92.18 596,580.00
(7).Receivables involving government grants
□Applicable √Not applicable
(8).Other receivables derecognized due to transfer of financial assets
□Applicable √Not applicable
(9).Amounts of assets and liabilities formed by the transfer of other receivables and
continuing involvement
□Applicable √Not applicable
Other notes:
□Applicable √Not applicable
3. Long-term equity investment
√Applicable □Not applicable
Unit: RMB
Closing balance Opening balance
Item
Book balance Impairment Book value Book balance Impairment Book value
provision provision
Investment in
4,246,947,937.33 570,000,000.00 3,676,947,937.33 4,190,057,937.33 570,000,000.00 3,620,057,937.33
subsidiaries
Investment in
associates
4,611,710,885.81 - 4,611,710,885.81 4,625,942,083.47 - 4,625,942,083.47
and joint
ventures
Total 8,858,658,823.14 570,000,000.00 8,288,658,823.14 8,816,000,020.80 570,000,000.00 8,246,000,020.80
(1) Investment in subsidiaries
√Applicable □Not applicable
Unit: RMB
Investee Opening balance Increase in the Decrease in Closing balance Current Closing
174 / 180
Semi-annual Report for 2022
current period the current provision for balance of
period impairment impairment
provision
Yiwu China
Commodities
City Financial 2,198,447,939.64 40,000,000.00 - 2,238,447,939.64 - -
Holdings Co.,
Ltd.
Haicheng Yiwu
China
Commodities
570,714,398.12 - - 570,714,398.12 - 570,000,000.00
City Investment
Development
Co., Ltd.
Yiwu Shangbo
Yuncang
Enterprise 300,000,000.00 - - 300,000,000.00 - -
Management
Co., Ltd.
Yiwu
Commodities
City Gonglian 200,000,000.00 - - 200,000,000.00 - -
Property Co.,
Ltd.
Zhejiang China
Commodities
City Group
120,000,000.00 - - 120,000,000.00 - -
Commercial
Factoring Co.,
Ltd.
Yiwu China
Commodities
101,431,713.08 - - 101,431,713.08 - -
City Import and
Export Co., Ltd.
Yiwu China
Commodities
101,431,713.10 613,230.13 - 102,044,943.23 - -
City Big Data
Co., Ltd.
Yiwu China
Commodities
City Supply
100,796,692.53 - - 100,796,692.53 - -
Chain
Management
Co., Ltd.
Yiwu China
Commodities
City Overseas
100,790,663.70 - - 100,790,663.70 - -
Investment and
Development
Co., Ltd.
Yiwu China
Commodities
City Tourism 100,476,265.41 - - 100,476,265.41 - -
Development
Co., Ltd.
Yiwu China
Commodities
City Logistics 63,381,789.92 7,650,000.00 - 71,031,789.92 - -
and Distribution
Co., Ltd.
Zhejiang Huajie
Investment and
61,860,722.12 9,150,000.00 - 71,010,722.12 - -
Development
Co., Ltd.
Yiwu China
50,784,506.16 - - 50,784,506.16 - -
Commodities
175 / 180
Semi-annual Report for 2022
City Information
Technology Co.,
Ltd.
Hangzhou
Shangbo
Nanxing 50,000,000.00 - - 50,000,000.00 - -
Property Co.,
Ltd.
Yiwu China
Commodities
18,857,277.74 - 360,000.00 18,497,277.74 - -
City Exhibition
Co., Ltd.
Yiwu
Comprehensive
Bonded Zone
18,692,136.32 5,200,000.00 - 23,892,136.32 - -
Operation and
Management
Co., Ltd.
Yiwu China
Commodities
City Assets
10,756,109.75 - - 10,756,109.75 - -
Operation and
Management
Co., Ltd.
Yiwu China
Commodities
9,993,230.13 - 9,993,230.13 - - -
City Advertising
Co., Ld.
Yiwu China
Commodities
5,795,057.77 3,130,000.00 - 8,925,057.77 - -
City Research
Institute Co., Ltd.
Zhejiang Yindu
Hotel
5,747,721.84 1,500,000.00 - 7,247,721.84 - -
Management
Co., Ltd.
Yiwu China
Commodities
City Commerce
100,000.00 - - 100,000.00 - -
and Trade
Service Training
Center Co., Ltd.
Total 4,190,057,937.33 67,243,230.13 10,353,230.13 4,246,947,937.33 - 570,000,000.00
176 / 180
Semi-annual Report for 2022
(2) Investment in associates and joint ventures
√Applicable □Not applicable
Unit: RMB
Change in the current period
Closing
Investment gains or
Investment Opening Closing balance of
Decrease in losses recognized Declared a cash
Unit Balance Balance impairment
investment with the equity dividend or profit
provision
method
1. Joint ventures
Yiwu Shanglv 383,668,354.21 - 6,573,467.38 - 390,241,821.59 -
Yiwu Rongshang Property 217,387,537.94 - 473,231,114.45 580,865,600.00 109,753,052.39 -
Yiwu Chuangcheng Property 88,063,325.80 - 107,911,035.49 60,000,000.00 135,974,361.29 -
Others 50,165,047.97 - 13,894,657.76 - 64,059,705.73 -
Sub-total 739,284,265.92 - 601,610,275.08 640,865,600.00 700,028,941.00 -
2. Associates
Huishang Micro-finance 82,824,696.64 - 1,060,693.70 - 83,885,390.34 -
Chouzhou Financial Lease 426,020,849.24 - 35,669,149.76 - 461,689,999.00 -
Pujiang Lvgu 449,927,811.36 - 9,866,449.40 88,200,000.00 371,594,260.76 -
CCCP 2,785,883,275.44 - 101,129,301.72 - 2,887,012,577.16 -
Others 142,001,184.87 24,500,000.00 3,843,885.74 13,845,353.06 107,499,717.55 -
Sub-total 3,886,657,817.55 24,500,000.00 151,569,480.32 102,045,353.06 3,911,681,944.81 -
Total 4,625,942,083.47 24,500,000.00 753,179,755.40 742,910,953.06 4,611,710,885.81 -
Other notes:
Nil.
177 / 180
Semi-annual Report for 2022
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 1,286,870,280.06 399,897,158.60 1,381,597,109.86 380,762,791.32
Other businesses 149,950,265.32 44,272,476.43 206,449,135.92 48,328,145.43
Total 1,436,820,545.38 444,169,635.03 1,588,046,245.78 429,090,936.75
(2). Incomes from contracts
√Applicable □Not applicable
Unit: RMB
Classified by type of contract Total
Types of goods
The use of shops in the China Commodities Cities and 1,251,678,340.58
its supporting services
Hotel accommodation and catering services 81,585,551.03
Revenue from use fees 26,106,833.33
Other services 8,738,847.96
Classified by business area
Chinese mainland 1,368,109,572.90
Classified by contract period
Revenue confirmed at certain time point
Hotel catering services 47,609,814.93
Other services 5,417,292.40
Revenue confirmed during certain time period
The use of shops in the China Commodities Cities 1,251,678,340.58
and its supporting services
Hotel accommodation service 33,975,736.10
Revenue from use fees 26,106,833.33
Other services 3,321,555.56
Total 1,368,109,572.90
Description of the income from contracts:
√Applicable □Not applicable
The income recognized in the current year and included in the opening book value of
contractual liabilities is as follows:
Unit: RMB yuan
Type of contract Current period
The use of shops in the China Commodities Cities 1,221,787,479.88
and its supporting services
Hotel accommodation service 7,036,462.25
Total 1,228,823,942.13
(3). Contract performance obligations
√Applicable □Not applicable
The information related to the performance obligations of the Group is as follows:
The use of shops in the China Commodities Cities and its supporting services
The contractual performance obligation is fulfilled when providing the use of shops in the China
Commodities Cities and the supporting services for business. For the use of shops in the China
Commodities Cities 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
178 / 180
Semi-annual Report for 2022
advance before the use of shops in the China Commodities Cities and the supporting services for
business are provided.
Hotel accommodation business
The performance obligation is fulfilled when providing hotel accommodation services. For the
hotel accommodation business, the progress of contractual performance is determined based on the
number of days of stay. For hotel accommodation services, a partial deposit is collected from the
customer first, and the remaining contract price is usually collected upon the completion of the hotel
accommodation services.
Hotel catering business
The performance obligation is fulfilled when the hotel catering services are provided. The
contract price for hotel catering services is usually charged when the hotel catering services are
performed.
Fixed -time paid funding services
The performance obligation is fulfilled when the fixed-time paid funding services are provided.
For the fixed-time paid funding service, the progress of contractual performance is determined based
on the number of using days of the fund. For the fixed-time paid funding service, the contract price is
usually charged regularly as agreed in the contract.
(4). Amortization to remaining contract performance obligations
□Applicable √Not applicable
Other notes:
On June 30, 2022, the transaction price allocated to the remaining performance obligations was
RMB 1,927,881,713.96. The Group expects that this amount will be recognized as an income in the
coming 5 years with the progress of relevant service provision.
5. Investment income
√Applicable □Not applicable
Unit: RMB yuan
Amount in the current Amount in the previous
Item
period period
Income from long-term equity 753,179,755.40 242,367,812.14
investment calculated with the equity
method
Investment income from disposal of 883,324.49 -
long-term equity investment
Investment income from disposal of 29,078.03 42,837.72
held-for-trading financial assets
Total 754,092,157.92 242,410,649.86
Other notes:
Nil
6. Others
□Applicable √Not applicable
XVIII. Supplements
1. Detailed statement of current non-recurring items
√Applicable □Not applicable
Unit: RMB yuan
Item Amount Explanation
Gain or loss from the disposal of non-current assets -54,710.90
Government grants that are recognized in the current
profit or loss, excluding government grants that are
closely related to the businesses of the Company and 16,645,616.31
are provided in a fixed amount or quantity according to
the unified national standards
Cash occupation fees charged from non-financial
enterprises that are recognized in the current profit or 32,264,049.60
loss
179 / 180
Semi-annual Report for 2022
Gain or loss from changes in fair value of
held-for-trading financial assets, derivative financial
assets, financial liabilities held for trading and
derivative financial liabilities, and investment income
from the disposal of held-for-trading financial assets, -390,717.89
derivative financial assets, financial liabilities held for
trading, derivative financial liabilities and other debt
instruments, except for effective hedging during the
ordinary course of business
Other operating incomes or expenses 3,443,596.86
Other profit or loss items that meet the definition of
26,619.73
non-recurring profit or loss
Less: affected amount of income tax 10,410,076.49
affected amount of minority equity (after tax) 1,034,205.05
Total 40,490,172.17
Explanations shall be made for the non-recurring items identified by the Company according the
Explanatory Announcement No. 1 on Information Disclosure by Companies Publicly Offering
Securities – Non-recurring Items, and for the Company identifying the non-recurring items
enumerated in the Explanatory Announcement No. 1 on Information Disclosure by Companies
Publicly Offering Securities – Non-recurring Items as recurring items.
□Applicable √Not applicable
2. ROE and EPS
√Applicable □Not applicable
Weighted EPS
Profits in the reporting period average ROE
（%） Basic EPS Diluted EPS
Net profits attributable to common
8.05 0.22 0.22
shareholders of the Company
Net profits attributable to common
shareholders of the Company after 7.78 0.22 0.22
deducting non-recurring gains and losses
3. Differences in accounting data between foreign and Chinese accounting standards
□Applicable √Not applicable
4. Others
□Applicable √Not applicable
Chairman of Board of Directors: ZHAO Wenge
Date of approving by the Board of Directors for release: August 18, 2022
Amendment
□Applicable √Not applicable
180 / 180
