Semi-annual Report for 2024
Stock code: 600415 Stock short name: 小商品城
Zhejiang China Commodities City Group
Co., Ltd.
Semi-annual Report for 2024
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Semi-annual Report for 2024
Important Statements
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 this 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. Directors’ absence from directors’ meetings
Position of the Name of the absent
Reasons for absence Name of the entrustee
absent director director
Director ZHANG Leping On business ZHANG Lang
III. This semi-annual report has not been audited.
IV. WANG Dong, Head of the Company, WANG Dong, Principal in charge of accounting,
and ZHAO Difang, Head of the accounting department (Accounting Manager), declare
that they warrant the truthfulness, accuracy and completeness of the financial report
in the semi-annual report.
V. The profit distribution plan for the reporting period or the plan for public reserve
funds into share capital that was approved by the board of directors
No
VI. Risk statement with forward-looking representations
√Applicable □Not applicable
The forward-looking representations involved in this Report such as future plans and
development strategies do not constitute the Company’s substantial commitments to investors.
Investors shall watch out for the investment risks.
VII. Is the Company’s cash occupied by its controlling shareholder or any of other
affiliates for non-operational purposes?
No
VIII. Has the Company provided external guarantee in violation of the prescribed
decision-making procedures?
No
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IX. Whether 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
During the reporting period, the Company did not have any significant risks that would
affect its continued operations. The Company has provided a detailed description of the
potential risks it may face in the "Potential Risks" part in Section III " Discussion and Analysis of
Managers" of this report.
XI. Others
□ Applicable √Not applicable
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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 ........................................................................ 32
SECTION V. ENVIRONMENTAL AND SOCIAL RESPONSIBILITIES ................................ 39
SECTION VI. SIGNIFICANT MATTERS ................................................................................. 40
SECTION VII. CHANGES IN SHARES AND INFORMATION OF SHAREHOLDERS .......... 52
SECTION VIII. PREFERRED SHARES .................................................................................... 59
SECTION IX. BONDS.............................................................................................................. 60
SECTION X. FINANCIAL REPORT ....................................................................................... 66
Accounting statements with the signatures and stamps of head of the
Company, principal in charge of accounting, and head of the
Documents for accounting department (Accounting Manager).
Inspection Original copies of all company documents and announcements
publicly disclosed on the website designated by the China Securities
Regulatory Commission during the reporting period
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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
Zhijie Yuangang means Zhejiang Zhijie Yuangang International Supply
Chain Technology Co., Ltd.
CCCP means Yiwu China Commodities City Property
Development Co., Ltd.
CCCF means Yiwu China Commodities City Financial
Holdings Co., Ltd.
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.
The Big Data Company means Yiwu China Commodities City Big Data Co., Ltd.
Kuaijietong means Kuaijietong Payment Service Co., Ltd.
Yiwu Pay means A payment brand built by Kuaijietong Payment
Company
The Company, the Listed means
Zhejiang China Commodities City Group Co.,
Company, the Group, the
Ltd.
Group Company
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Section II. Company Profile and Financial Highlights
I. Company profile
Chinese name 浙江中国小商品城集团股份有限公司
Chinese short name 小商品城
English name Zhejiang China Commodities City Group Co.,Ltd
English short name YIWU CCC
Legal representative WANG Dong
II. Contact information
Board Secretary Securities Affairs Representative
Name XU Hang RAO Yangjin
YIWU CCC Group Building, No. 567 YIWU CCC Group Building, No. 567
Address
Yinhai Road, Yiwu City Yinhai Road, Yiwu City
Telephone 0579-85182812 0579-85182812
Fax 0579-85197755 0579-85197755
Email Hxu@cccgroup.com.cn Hxu@cccgroup.com.cn
III. Introduction to changes in basic information
567 Yinhai Road, Futian Sub-district, Yiwu City, Jinhua
Registered address
City, Zhejiang Province
The registered address when the Company was
established was No. 158 Binwang Road, Yiwu City,
Zhejiang Province; In May 2006, the registered address
Historical changes in the registered of the Company was changed to Haiyang Business
address of the Company Building, No. 105 Futian Road, Yiwu City; In January
2024, the registered address of the Company was
changed to No. 567 Yinhai Road, Futian Sub-district,
Yiwu City, Jinhua City, Zhejiang Province.
YIWU CCC Group Building, No. 567 Yinhai Road, Yiwu
Office address
City
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
information disclosure and 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
Shanghai Stock
A share 小商品城 600415 Nil
Exchange
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VI. Other relevant information
□ Applicable √Not applicable
VII. Main accounting data and financial indicators of the Company
(i) Main accounting data
Unit: RMB
YoY change
Major accounting data Jan-Jun 2024 Jan-Jun 2023
(%)
Operating revenue 6,765,934,137.13 5,160,991,043.25 31.10
Net profits attributable to
shareholders of the Listed 1,447,982,745.49 1,998,333,646.74 -27.54
Company
Net profits attributable to
shareholders of the Listed
1,418,908,469.37 1,839,365,824.67 -22.86
Company with non-recurring gains
and losses excluded
Net cash flow from operating
114,363,500.83 143,247,195.78 -20.16
activities
Change of Jun
30, 2024 over
Jun 30, 2024 Dec 31, 2023
Dec 31, 2023
(%)
Net assets attributable to 18,078,864,482.54 17,688,393,818.20 2.21
shareholders of the Listed
Company
Total assets 36,021,693,283.42 36,218,947,223.63 -0.54
(ii) Major financial indicators
Major financial indictors Jan-Jun 2024 Jan-Jun 2023 YoY change (%)
Basic EPS (RMB) 0.27 0.37 -27.03
Diluted EPS (RMB) 0.27 0.37 -27.03
Basic EPS after deducting
non-recurring gains and losses 0.26 0.34 -23.53
(RMB/share)
Weighted average ROE (%) 7.86 12.30 Down 4.44 ppt
Weighted average ROE after
deducting non-recurring gains and 7.70 11.32 Down 3.62 ppt
losses (%)
Illustration on major accounting data and financial indicators
√Applicable □Not applicable
1. The operating revenue increased by RMB 1.605 billion YoY, mainly due to the growth of
market operations, commodity sales, and trade services, which increased by RMB 468 million,
RMB 1.057 billion, and RMB 87 million respectively, with growth rates of 25.99%, 37.24%, and
30.63%.
2. The net profit attributable to shareholders of the Listed Company decreased by RMB 550
million YoY, due to a decrease of RMB 1.051 billion in investment income and asset disposal
income, and an increase of RMB 501 million in net profit from market operations and trade
services.
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VIII. Differences in accounting data under domestic and foreign accounting
standards
□ Applicable √Not applicable
IX. Non-recurring gains and losses
√Applicable □Not applicable
Unit: RMB
Non-recurring items Amount Remark (if applicable)
Gains and losses from the disposal of
non-current assets, including the offsetting
-111,894.84
portion of the provision for impairment of
assets
Government grants that are recognized in the
current profit or loss, excluding the
Please refer to the
government grants that are closely related to
details of government
the normal operation of the Company and
10,645,620.69 subsidies included in
provided in a fixed amount or quantity and
other income for
that have a continuous impact on the
details
Company's gains and losses according to the
national polices and certain standards
Except for effective hedging business related
to the normal operation of the Company, the
fair value gains and losses arising from the
Mainly due to gains or
holding of financial assets and financial
-4,468,954.54 losses arising from the
liabilities by non-financial enterprises, as well
change in fair value
as the gains and losses arising from the
disposal of financial assets and financial
liabilities
Cash occupation fees charged from Cash occupation fee
non-financial enterprises that are recognized 12,872,916.46 for receiving financial
in the current profit or loss aid
Profits and losses arising from external
1,258,704.40
entrusted loans
Net income from other non-operating Mainly due to penalty
activities 14,967,685.21 income for breach of
contract
Less: effect of income tax 5,461,289.85
Effect of minority interest (after-tax) 628,511.41
Total 29,074,276.12
If the Company recognizes non-recurring profit and loss items that are not listed in the
Explanatory Announcement No. 1 on Information Disclosure of Companies Issuing Securities to
the Public as non-recurring profit and loss items with significant amounts, and define
non-recurring profit and loss items listed in the Explanatory Announcement No. 1 on Information
Disclosure of Companies Issuing Securities to the Public as recurring profit and loss items, the
reasons should be explained.
□ Applicable √Not applicable
X. Other
□ Applicable √Not applicable
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Section III. Discussion and Analysis of Managers
I. Description of the industry and the Company’s main business during the reporting
period
(I) Main business of the Company
The Company is committed to building a shared trade service platform for small and
medium-sized enterprises in China, with a strategic positioning of a "world-class international
trade comprehensive service provider", continuously enriching and improving the three major
ecosystems: commodity display and trading ecosystem, trade services ecosystem, supporting
service ecosystem, and trade service ecosystem, in order to reduce trade costs, shorten trade
chains, improve trade efficiency, continuously create value for the circulation of small
commodities, strengthen and consolidate the advantageous position of China's daily consumer
goods supply chain in global trade, and serve the new development pattern of
domestic-international dual circulation.
The commodity display and trading ecosystem includes offline market operation and
self-operated trade product sales, trade service ecosystem includes Chinagoods online service
platform, warehousing logistics and payment, credit reporting, factoring and other businesses,
and supporting service ecosystem includes exhibition and hotel sectors.
(II) Industry situation
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. Situation of Yiwu market
As a prestigious global hub for small commodity trade, Yiwu International Trade City has
consistently held a dominant position in China's comprehensive market sector for several years.
Boasting substantial market turnover and an extensive array of products, it has established a
robust industrial cluster that underpins the circulation of small commodities.
The influence of Yiwu market spans across 233 countries and regions globally, propelling
the growth of 2.1 million small and medium-sized enterprises. In turn, this economic engine
generates employment opportunities for a staggering 32 million industrial workers. This
far-reaching influence not only solidifies Yiwu's status as a pivotal center for the global small
commodity trade but also ensures that consumers across the globe have access to an eclectic
and varied assortment of products.
2. Significant characteristics of Yiwu market
(1) Active market entities: The Yiwu market is an important practical platform for the
concept of "mass entrepreneurship and innovation". It not only drives the development of more
than 20 industrial clusters, but also attracts over 15,000 resident foreign merchants and nearly
9,000 foreign-owned entities. These numbers make Yiwu an important gathering place for
global merchants, known as the "World Supermarket".
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(2) A wide range of goods: As the world's largest small commodity distribution center, Yiwu
market gathers 26 major categories and 2.1 million types of products, forming an "ocean of
small commodities and paradise for shoppers ". More than ten thousand new products are
launched every day, and the quality, brand and standard of small commodities are exported to
the world, becoming the representative of "China-chic trend" and "supply place for bestselling
goods".
(3) Innovative business scenarios: The Yiwu market is an important birthplace of innovation
in trade business scenarios. The pioneering market procurement trade method (with a customs
supervision method code of "1039") has driven a huge growth in Yiwu's foreign trade exports in
the past decade and has been promoted to 39 pilot units in China. New business forms such as
import transshipment, internet celebrity live streaming, and cross-border e-commerce are
constantly emerging, forming an e-commerce ecosystem for the full industry chain. The
integration and development of the real economy and digital economy have enabled Yiwu to
continue to lead the new trend of global trade.
(4) High-quality trade ecology: Yiwu market is the preferred place for merchants and
enterprises to trade small commodities. Since the pilot of the comprehensive reform of
international trade, Yiwu has formed multiple national level open platforms, including the Free
Trade Zone, Comprehensive Bonded Zone, Cross-border E-commerce Comprehensive Pilot
Zone, and Import Trade Promotion Innovation Demonstration Zone. The logistics network has
covered over 1,500 counties and cities across China and over 700 hub cities worldwide.
Government, business, and life services are in line with international standards, providing
comprehensive "customs, taxation, currency exchange, transportation, warehousing and
financing" services, with continuously optimized the business environment.
3. Situation of Yiwu market in the first half of 2024
The Yiwu market, as a key platform connecting domestic and international trade supply
chains, occupies a core position in the global small commodity supply chain and plays a crucial
role in promoting internal circulation, enhancing external circulation, and serving the new
development pattern of "dual circulation". As a leader and demonstration site of national market
procurement trade method, Yiwu has maintained high-speed growth for years, effectively
stimulating the vitality of market entities and continuously improving the level of trade
facilitation.
From January to June 2024, the total import and export value of Yiwu reached RMB 324.77
billion, a YoY increase of 20.7%; Among them, exports amounted to RMB 288.03 billion, a YoY
increase of 21.3%; Imports amounted to RMB 36.74 billion, a YoY increase of 16.4%. Building
on a high base in 2023, Yiwu's total import and export volume sustained a high growth rate.
Yiwu continuously gathers new momentum in foreign trade by exploring emerging markets,
building high-level open platforms, and cultivating and strengthening advantageous industries.
From the perspective of trade regions, in the first half of 2024, Yiwu's imports and exports to
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Africa, Latin America, and ASEAN amounted to RMB 57.83 billion, RMB 53.95 billion, and RMB
33.08 billion, respectively, up 17.1%, 32.4%, and 40.2% YoY, respectively; Imports and exports
to India and Saudi Arabia amounted to RMB 16.09 billion and RMB 7.9 billion respectively, up
23.5% and 17.2% YoY, respectively.
The Company integrates market resources through digital means, connects various links in
the supply chain, improves the efficiency of commodity circulation, and promotes the iterative
upgrading of the market procurement trade method to "Version 2.0 ". Market procurement trade
has become the main force driving Yiwu's export growth. In the first half of 2024, Yiwu exported
RMB 232.87 billion through market procurement trade, a YoY increase of 28.7%, accounting for
80.8% of the total export value. In terms of regional trade, Southeast Asia, the Middle East and
Latin America continue to occupy a high market share in the trade with Yiwu. Countries in the
"Belt and Road" initiative and the RCEP region continue to bring new opportunities to the Yiwu
market. “AI Internationalization” and “RMB Internationalization” have become new highlights of
the Yiwu market. From the perspective of export categories, some categories have strong
overseas demand. In the first half of the year, Yiwu exported RMB 8.39 billion of household
appliances, a YoY increase of 51.9%; The export of automotive spare parts reached RMB 3.61
billion, a YoY increase of 33.3%; The export of sports goods and equipment reached RMB 5.02
billion, a YoY increase of 42.3%.
In 2024, the Yiwu market has undergone the following changes due to the impact of the
domestic and overseas trade environment (data sourced from related statistics of Yiwu Index):
(1) The effect of the "Olympic Economy" continued to gain steam. Benefiting from major
sports events such as the European Cup and the 2024 Paris Olympic Games, the sales of
sports and related products such as Olympic bracelets, trophies, flags, and jerseys in the
market have been steadily increasing. In particular, the sports equipment industry in the Third
District of the International Trade City has seen significant growth in orders, with orders from
Europe accounting for over 30%.
(2) The phenomenon of "summer economy" has been thoroughly ignited. As temperatures
climb, the demand for summer consumer goods among shoppers is intensifying. Small
appliances, apparel, and sun protection cosmetics are witnessing a surge in popularity, hitting a
minor sales high in the market. In the realm of finished goods, since the onset of the second
quarter, market sales of products like sun-protective apparel, sun-blocking masks, and ice
sleeves have seen a remarkable upswing, with MoM growth rates surpassing 50% and YoY
increases exceeding 30%. As for raw materials, there has been a significant surge in demand
for zippers used in sun-protective clothing, with the market witnessing a YoY rise of more than
20%.
(3) The peak season for Christmas supplies procurement has started ahead of schedule.
Due to the prolonged sea freight duration and the strain on transportation capacity, some
international buyers have opted to purchase ahead of schedule. Middle Eastern and European
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clients, in particular, have been proactive in their approach, beginning to place advance orders
and build up their inventories as early as February, facilitated by online sample viewings. In the
first half of 2024, the Yiwu market has seen a consistent strong performance in the sales of
traditional products, including Christmas costumes, Christmas trees, and Christmas decorations.
Additionally, there has been a growing demand for more upscale products, such as Christmas
lights and electric Christmas ornaments.
(4) The heat of the "beauty economy" continued to escalate. Since the dawn of 2024,
press-on nails have gradually gained popularity worldwide due to its convenience in application
and removal, as well as its re-usability, making it highly favored by consumers. A group of top
merchants such as Yanxue and Diefei have gathered in the market, significantly improving the
competitiveness of nail products. According to the latest statistics, a range of trendy nail art
styles, including the cat eye light luxury style, the Maillard style, and the sweet cool style, have
become particularly popular among new customers in South American countries, with order
volumes from these regions increasing by more than 30% YoY.
From January to June 2024, the express delivery volume in Yiwu reached 6.007 billion
pieces, a YoY increase of 16.7%. Yiwu's express delivery volume accounted for about 7% of
China’s national total, ranking first among county-level cities in China. Notably, the volume of
express deliveries destined for overseas countries and for Hong Kong, Macau, and Taiwan,
reached 25.354 million pieces, a YoY increase of 17.7%. Relying on the advantages of being a
national comprehensive transportation hub and a national level logistics hub, Yiwu's express
delivery industry integrates various transportation resources such as sea, land, air, and rail to
create a safe, reliable, independent and controllable international logistics supply chain system,
providing richer and more convenient services for export of China's goods and import of
overseas goods.
As Citywalk tourism gains popularity, Yiwu has emerged as a prime destination for
travelers seeking to "roam" thanks to its rich and varied array of tourist attractions. During the
May Day holiday in 2024, Yiwu became one of the most popular county-level tourist
destinations in Zhejiang Province. Tourists flocked to Yiwu International Trade City to purchase
global goods, tasted the "delicacies of various countries" and experienced exotic flavors in
every mouthful. Just on Chouzhou Road in Yiwu City, there’s a wide range of Middle Eastern
restaurants, each with its own distinct style. The barbecue offerings here encompass a variety
of styles, including Afghan, Syrian, Iranian, Jordanian, Yemeni, Turkish, Egyptian, Pakistani,
and more. It's like "the thousand and one nights" of flavors, right on the tip of your tongue. Yiwu
is a dynamic city renowned for its robust B-end commercial exchanges. It has also
demonstrated significant potential in C-end sectors like food and tourism, indicating a broad
scope for future growth and development.
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II. Analysis of core competitiveness 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 in 26 categories and supports one-stop purchase. The market boasts
enormous resources and huge business flow, goods flow, cash flow and information flow.
(II) Brand advantages
“Yiwu China Commodities City” is the first market identified by the SAIC as a well-known
trademark among the national commodities trading markets. The Company has taken multiple
measures to give play to the brand of “Yiwu China Commodities City” and is committed to
improving its influence and leading role in the industry. Its brand advantages and influence have
kept enhancing.
(II) Supporting services advantages
The People’s Government of Yiwu has been providing policy support for the development
of the market for years, and the auxiliary industries are developing rapidly in Yiwu.
1. Convenient logistics system
Yiwu has in place perfect commerce and trade auxiliary facilities and advantageous
logistics service. The logistics network has full coverage in Yiwu. A large number of large-sized
international and domestic express delivery and logistics companies have regional distribution
centers in Yiwu, and a world-oriented goods transport and distribution network has been
established. Yiwu has been listed as a "national logistics hub carrier city for commercial and
trade services" by the National Development and Reform Commission and the Ministry of
Transport of the PRC.
2. Industry Support
During the recent years, thanks to the Yiwu China Commodities City, the Yiwu-centered
manufacturing industry cluster has been developing fast, an commodities industrial belt that is
centered in Yiwu and covers Jinhua, Lishui, Quzhou, Hangzhou, Jiaxing, Taihu, Shaoxing,
Ningbo, Wenzhou and Taizhou with an area of nearly 10,000 km2 has been established, and a
benign mechanism under which the Yiwu wholesales market and the peripheral industry cluster
develop together has been formed.
3. Support from exhibition service
The major international trade exhibitions held by the Company’s exhibition business
division such as China Yiwu International Commodities Fair, China Yiwu International Forest
Products Fair, China Yiwu International Imported Commodities Fair and China Yiwu Hardware
and Electrical Expo support and cultivate vertical exhibition in multiple industries such as
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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 diversified businesses
The Company has strengthened its presence in the related industries, made efforts on
financial investment, kept developing the exhibition business, created a new e-commerce
model, developed the hotel business and also run international trade, modern logistics,
advertising information, shopping and tourism businesses. It has created a group structure and
profit-making model of shared and interactive development of market resources.
(V) Management advantages
In terms of personnel, management and technology, excellent operation and management
ability is one of the core competences of the Company as a professional market operating
company. The Company has developed a series of perfect management systems for market
operation and management, accumulated rich experience in operation and management, and
has cultivated a professional management team with reasonable knowledge and expertise
structures and strategic development insights.
(VI) Advantage of online and offline platform integration
The Company’s international trade city is the global leading commodity market. The
Company’s official Yiwu CCC website, chinagoods platform, relying on the Company’s 75,000
off-line shops, through integration of online and offline services. With trade data integration as
the core driver, it meets the needs of both supply and demand parties in manufacturing, display
transactions, warehousing and logistics, financial credit, market management and other links.
(VII) Advantage of international logistics
The Company establishes a logistics platform to replace the multi-layer freight forwarder
system, thus shortening the level of freight forwarder distribution, and improving logistics
efficiency. In contrast, the traditional foreign trade freight forwarders are divided into multiple
levels, the logistics and transportation services are not standardized, and the service prices
vary widely and are usually not the lowest price.
III. Discussion and analysis of operating status
2024 marks the year of start, the year of breakthroughs, and the year of tireless efforts for
the entire city of Yiwu as it embarks on a mission to “set a model and reclaim glory.” During the
reporting period, the Company's main business entered an era of simultaneous increase in
quantity and price, while its innovative business ventures continued to follow a robust growth
trajectory. The Company has anchored its strategic goal of becoming a "world-class
international trade comprehensive service provider", taking it as its responsibility to build the
world's Capital of Small Commodities with high quality and level. Within the framework of a
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unified national market, it coordinates the promotion of market innovation and enterprise
transformation and upgrading, and accelerates to become a global leading enterprise in
commerce and trade that empowers the mass trade of small commodities.
During the reporting period, the daily average customer flow in Yiwu market was 218,800;
The daily average number of foreign merchants exceeded 3,600, with a YoY growth of over
80%. The number of foreign merchants has significantly increased, and the main traffic
indicators of the market have all exceeded those of the same period in 2019. According to the
data released by Yiwu City, in the first half of 2024, the total volume of road, railway, and air
passenger traffic in Yiwu City reached approximately 12 million trips, a YoY increase of about
15%. The number of inbound foreign merchant visits was about 250,000, showing a YoY
increase of about 95%.
(I) Market operation
1. Digitalization of market operation
During the reporting period, the Company collaborated with universities to update the index
model, iterate the index platform website, and achieve inter-connectivity with the Chinagoods
platform, completed the asset sorting of index data and promoted the entry of data resources
into the balance sheet. “Empowering Small Commodity Digital Trade Facilitation with Data
Elements” has been selected as one of the first 20 typical cases of “Data Element X” by the
National Data Bureau. In response to the goal of building the Dow Jones Index in the field of
small commodity circulation in China, the Company has formulated a three-year action plan:
In 2024, the Company will strive to improve its index model, comprehensively upgrade its
index data system, and expand its index publishing channels, actively establishing closer
cooperation with domestic and foreign media. At the same time, the Company will continue to
promote the entry of data assets into the balance sheet, and generate new quality productivity
in the field of "data elements x commercial circulation".
In 2025, the Company will further expand its index system, innovate and develop more sub
indices to meet the needs of different levels, develop more diversified index application
products for governments, industries, and enterprises, and attempt to develop short-term index
prediction functions to gradually expand the integration and application scope of artificial
intelligence.
By 2026, the Company will strive to promote the internationalization of small commodity
classification standards and realize the trading of data assets, making the Yiwu China Small
Commodity Index a new business card in the Yiwu market and achieving Yiwu's leading
position in the global small commodity circulation field.
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(Yiwu Index 3-year Action Plan Outline)
During the reporting period, the Company continuously explored the potential of data
elements, continued to leverage their empowering role, and promoted the digital transformation
and reshaping of the entire chain, scenario, and format of small commodity trade. The Market
Operation Branch and the Financial Management Branch took the "Shop Management System"
as the core, relied on resource information collaboration to achieve system integration in
version 4.0, classified and constructed business tags, to establish a rich and detailed market
"resource library", thus achieving asset data management, further optimizing operational
efficiency, and driving market upgrade.
2. Steadily advance of the construction of the Global Digital Trade Center In the first half of
the year, 62% of the total project volume for the first phase has been completed, and
roof-topping works for the market section main structure of the second phase have been
completed. About 68% of the above-ground main structure of the commercial office building
section has been completed, and the construction of super high-rise buildings has started. The
Company clarifies the network infrastructure construction plan for the global digital trade center
in the construction of intelligent markets in the digital market; actively promotes cross-border
network construction and advances cross-border access product testing; jointly promotes the AI
collaboration project with the Tsinghua ModelBest team; further supplements and improves the
digitalization plan of the Global Digital Trade Center. Based on the Company's digital solution,
the Company improves the overall construction and operation plan of the smart park, and uses
the property cloud platform as the digital base to achieve the transition from existing
single-scenario intelligence to overall intelligence.
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Semi-annual Report for 2024
(Progress Map of the Global Digital Trade Center Project in June 2024)
(II) Self-operated trade
In the process of building a "good foreign trade product" trade service ecosystem, the
Company promotes brand layout and improves the level of trade facilitation for small and
medium-sized entities. During the reporting period, the self-operated trade volume reached
RMB 3.895 billion, a YoY increase of 37.27%. 4 new ICMALL Global Good Goods Collection
Stores were opened, bringing the total number to 19. In terms of innovative foreign trade
business models, the Company has successfully obtained the qualification for exporting
second-hand cars.
(III) Online platform
The Company continues to explore the integration model of AI and small commodity trade
business, promoting the transformation and upgrading of traditional markets. In the first half of
the year, 45 new third-party digital service products were added, bringing the total number of
digital service products listed to 194. These products cover multiple fields such as content
creation, trade services, warehousing and logistics, operational support, marketing strategies,
enterprise management, and software tools. The Chinagoods platform has collaborated with top
teams such as Tsinghua University, iFlytek, and Baidu to build a 100-member AI R&D team.
Targeting the characteristics of the Yiwu market, the team has launched 5 self-developed AI
products, covering functions such as intelligent translation, video generation, and product
publishing, including "AI digital human matrix" that enables 24-hour interactive operation; AI
intelligent translator that supports 36 languages for mutual translation, breaking down language
barriers; AI intelligent product release and AI intelligent image factory that help merchants deal
with complex and professional problems; and Xiaoshang AI that can accurately capture the
needs of buyers through intelligent Q&A, improving order fulfillment rates. At present, 17,000
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Semi-annual Report for 2024
users on the Chinagoods platform have deeply experienced the Xiaoshang AI series, which
helps market merchants achieve digital upgrades in their business.
(Display of Some AI Applications)
During the reporting period, the net profit of the Big Data Company was RMB 72.7937
million, a YoY increase of 56.89%, and the GMV of Chinagoods was RMB 45 billion, a YoY
increase of 40.6%. There were 40,0000 new registered buyers on the Chinagoods platform,
bringing the total to over 4.45 million.
(IV) Digital payment
Kuaijietong is committed to solving the core pain points and bottlenecks in the field of
cross-border foreign exchange settlement, continuously optimizing its payment platform
functions, and taking practical actions to help small and medium-sized enterprises in the Yiwu
market achieve compliance in their funding channels. During the reporting period, Kuaijietong
successfully partnered with Industrial and Commercial Bank of China Abu Dhabi Branch to
complete the first direct currency settlement business in the Dubai market. This signifies that
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Semi-annual Report for 2024
Kuaijietong has achieved a full-process closed-loop practice in the integrated cross-border RMB
settlement services both at home and abroad.
In addition, Kuaijietong also works with Bank of China to promote the cross-border
application of e-CNY (i.e., the Digital Currency Bridge project). The application was officially
launched on May 30, 2024. The core goal of the Digital Currency Bridge project is to build a
bridge connecting central banks around the world with digital currencies, aiming to promote
efficient inter-connectivity of global financial systems. With the widespread application of digital
currencies, cross-border payment processes will become more convenient and efficient, and
fund flows will enjoy unprecedented freedom, significantly enhancing the inclusiveness of
financial services. The operation of Digital Currency Bridge project not only brings substantial
convenience to market participants, but also provides valuable practical opportunities and
experience accumulation for central banks of various countries. This will help central banks of
various countries to have a deeper understanding of the development trajectory and laws of
digital currencies, providing solid data support and theoretical basis for the formulation of their
future financial policies.
As of June 30, the transaction volume of cross-border RMB payment business in 2024
exceeded RMB 12 billion, supporting 25 different currencies and covering more than 150
countries and regions. All transactions have not involved any risk dispute funds, and there have
been no frozen card incidents, providing a solid financial infrastructure guarantee for business
owners to smoothly go overseas.
During the reporting period, the net profit of Kuaijietong Company was RMB 27.381 million,
a significant increase from RMB -5.7202 million for the same period of the previous year.
(V) Trade performance
Zhijie Yuangang has accelerated the layout of FBC "two warehouses and one route"
commercial infrastructure, enhancing its digital cross-border logistics service capabilities. In
March, it held the 2024 Cross-border Logistics Ecological Transformation and Upgrading
Summit Forum and the "Zuhuopai Platform" brand launch event. The "Zuhuopai" digital logistics
fulfillment platform was launched, connecting international logistics enterprises and providing
multiple supports such as routes, warehousing, and systems for small and medium-sized
enterprises. In the first half of 2024, Zhijie Yuangang has provided 35,000 TEUs of more stable
international logistics services with higher quality for the Yiwu market. The digital cross-border
supply chain service fulfillment platform (Zhijie Yuangang) has been included as a key project
for high-quality development of digital trade in Zhejiang Province in 2024.
(VI) Exhibition
During the reporting period, the driving effect of exhibitions on trade continued to
strengthen. Driven by the drainage effect of professional exhibitions such as the China Import
and Export Fair and China Yiwu International Hardware & Electrical Appliances Fair, the
number of buyers from outside Zhejiang Province and abroad visiting and purchasing in the
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Semi-annual Report for 2024
market increased. In April alone, the number of foreign merchants entering Yiwu reached
61,991, exceeding that of the same period in 2019. The 8th China Yiwu International Hardware
& Electrical Appliances Fair attracted 83,643 buyers, including 3,024 foreign merchants, with a
total offline transaction volume of RMB 560 million.
As of the end of June, Yiwu China Commodities City Exhibition Co., Ltd. held a total of 23
domestic exhibitions such as the China Yiwu International Hardware & Electrical Appliances
Fair and the Yiwu Fashion Jewelry Factory Exhibition, as well as 3 overseas exhibitions in
countries such as Indonesia and Cambodia, attracting over 770,000 buyers. The exhibition area
was 380,000 square meters, and the intended transaction volume was RMB 4.3 billion. The
China Yiwu Imported Commodities Fair project has been included in the 2024 Zhejiang
Province Import High-quality Development Project Plan.
(VII) Hotel
During the reporting period, the hotel business segment (including entrusted hotels)
achieved revenue of RMB 227 million, a YoY increase of 1.3%, and GOP of RMB 24.7138
million, a YoY increase of 4.51%. The hotel segment actively implements the integrated
development strategy of "market+cultural tourism" and "food+shopping", relying on the Yiwu
market to build a comprehensive consumption scene integrating shopping, food, and tourism. It
is committed to creating a unique market cultural tourism IP to significantly enhance the
attractiveness and popularity of the market cultural tourism. The "Taste Global Delicacies, Buy
Global Products" food festival held at the end of June attracted 17 well-known foreign flavor
catering units in Yiwu city to participate. The event was brimming with attendees, and its
overwhelming popularity led to a scarcity of tickets. The mesmerizing fusion of live dance,
music, and lighting elicited exuberant cheers from the crowd, as the array of delectable food,
beer, and snacks provided a veritable feast for the guests. The event surpassed all
expectations.
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Significant changes in the Company's operations during the reporting period, as well as events
that have a significant impact or are expected to have a significant impact in the future on the
Company's operations
□ Applicable √Not applicable
IV. Operating status during the reporting period
(i) Analysis of main business
1 Analysis of changes in the items of the financial statements
Unit: RMB
Item Amount in the
Amount in the same report period
YoY change (%)
current report period of the previous
year
Operating revenue 6,765,934,137.13 5,160,991,043.25 31.10
Operating cost 4,527,895,348.12 3,582,510,450.35 26.39
Sales expenses 92,206,144.98 77,763,668.49 18.57
Administrative expenses 218,138,951.18 267,899,068.22 -18.57
Financial expenses 53,571,231.34 53,603,900.89 -0.06
R&D expenses 11,759,206.64 10,524,249.20 11.73
Net cash flow from operating
114,363,500.83 143,247,195.78 -20.16
activities
Net cash flow from investing
-1,323,845,089.70 -505,539,125.40 Not applicable
activities
Net cash flow from financing
-738,900,347.95 543,680,426.49 -235.91
activities
Reasons for the change in operating revenue: The operating revenue increased by RMB 1.605
billion YoY, mainly due to the growth of market operations, commodity sales, and trade services,
which increased by RMB 468 million, RMB 1.057 billion, and RMB 87 million respectively, with
growth rates of 25.99%, 37.24%, and 30.63%.
Reasons for the change in net cash flow from investment activities: The net cash flow from
investment activities decreased by RMB 818 million YoY, mainly due to a decrease of RMB 208
million in net cash received from the disposal of long-term assets because of the relocation of
Digital Mall and others, and a decrease of RMB 495 million in other cash received related to
investment activities because of the pre-allocation of funds of joint ventures and others.
Reasons for the change in net cash flow from financing activities: The net cash flow from
financing activities decreased by RMB 1.283 billion YoY, mainly due to a YoY decrease of RMB
1.15 billion in the net cash flow from financing.
2 Details of material changes in the business types, the components or sources of
profits of the Company in this reporting period
□ Applicable √Not applicable
(ii) Material changes in profits caused by non-main businesses
□ Applicable √Not applicable
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Semi-annual Report for 2024
(iii) Analysis of assets and liabilities
√Applicable □Not applicable
1. Status of assets and liabilities
Unit: RMB
As a As a
percentage percentage of
Closing balance
Closing balance of total total assets at YoY
of the prior Reasons for
Item of the current assets at the end of the change
corresponding change
period the end of prior (%)
period
the current corresponding
period period (%)
Due to the
Cash and
repayment of
cash 979,696,870.94 2.72 2,922,735,320.61 8.07 -66.48
interest-bearing
equivalents
liabilities
Mainly due to the
growth of the
Prepayments 1,933,879,454.57 5.37 986,062,615.10 2.72 96.12 product sales and
the increase in
advance payment
Mainly due to
increased
Inventories 1,897,027,952.53 5.27 1,247,244,380.91 3.44 52.10 development costs
and inventory of
goods
Mainly due to
Development transfer to
11,157,791.11 0.03 18,648,441.93 0.05 -40.17
expenses intangible assets in
the current period
Mainly due to the
decrease in
Advance advance receipts of
361,888,036.98 1.00 602,364,396.64 1.66 -39.92
receipts merchant payment
during the current
period
Mainly due to the
Payroll
17,782,397.68 0.05 148,473,258.54 0.41 -88.02 distribution of merit
payable
pay for 2023
Mainly due to the
Non-current
transfer-in of
liabilities due
1,767,945,699.70 4.91 179,140,794.24 0.49 886.90 interest-bearing
within one
liabilities due within
year
one year
Mainly due to
Bonds transfer-out of
1,999,398,922.23 5.55 3,498,452,484.47 9.66 -42.85
payable medium-term notes
due within one year
Other statements
Nil
2. Overseas assets
√Applicable □Not applicable
(1) Scale of assets
Among them, overseas assets were RMB 503 million, accounting for 1.40% of the total assets.
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Semi-annual Report for 2024
(2) Explanation of the high proportion of offshore assets
□ Applicable √Not applicable
Other statements
Nil
3. Encumbrances on major assets as of the end of the reporting period
√Applicable □Not applicable
Unit: RMB
Item June 30, 2024 December 31, 2023
Cash and cash equivalents 16,594,295.29 12,556,381.42
Inventories 8,925,585.77 8,925,585.77
Long-term equity investment 102,918,559.00 102,918,559.00
Other non-current financial
631,520,588.85 631,520,588.85
assets
Other current assets 399,764,547.68 313,869,496.74
Total 1,159,723,576.59 1,069,790,611.78
The situation of restricted assets can be found in Financial Report Note VII. 31. Restricted
Assets of Ownership or Use Rights in Section X.
4. Other notes
□ Applicable √Not applicable
(iv) Analysis of investments
1. Overall analysis of external equity investment
√Applicable □Not applicable
As of June 30, 2024, the total amount of external investments was RMB 8,998.438 million
(including RMB 11.6408 million in held-for-trading financial assets, RMB 6,938.8045 million in
long-term equity investments, RMB 555.6431 million in other equity instrument investments,
and RMB 1,492.3496 million in other non-current financial assets), a decrease of RMB 17.9397
million, or 0.20%, from RMB 9,016.3777 million (including RMB 15.1309 million in
held-for-trading financial assets, RMB 7,022.7795 million in long-term equity investments, RMB
556.8974 million in other equity instrument investments, and RMB 1,421.5699 million in other
non-current financial assets) at the end the previous year. The main changes are as follows:
I. At the end of the reporting period, held-for-trading financial assets decreased by RMB
3.4901 million from the end of the previous year, which was due to a decrease of RMB 3.4901
million in fair value changes during the reporting period.
II. At the end of the reporting period, long-term equity investment decreased by RMB
83.975 million from the end of the previous year, mainly due to:
1. The net decrease of RMB147.7909 million in investment costs, which was due to an
increase of RMB 22.4591 million in investment funds to investees such as JEBEL ALI FREE
ZONE TRADER MARKET DEVELOPMENT AND OPERATION FZCO during the reporting
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Semi-annual Report for 2024
period, and the recovery of RMB 170.25 million in investment funds to investees such as Yiwu
Hongyi Equity Investment Fund Partnership.
2. The net increase of RMB 63.8159 million in the accrued income by equity method and
others, mainly due to RMB 98.3488 million in the accrued investment income by equity method,
and RMB 34.75 million in dividends from Yiwu Hongyi Equity Investment Fund Partnership
(Limited Partnership) during the reporting period.
III. At the end of the reporting period, the investment in other equity instruments decreased
by RMB 1.2543 million from the end of the previous year, due to the change in fair value of
Shenwan Hongyuan Group Co., Ltd. during the reporting period.
IV. At the end of the reporting period, other non current financial assets increased by RMB
70.7797 million compared to the end of the previous year. This was due to an increase of RMB
21.7182 million in investment from MASAI MARA TECHNOLOGY LTD, an increase of RMB 60
million in investment to Suzhou Xiangzhong Entrepreneurship Investment Partnership (Limited
Partnership), the recovery of RMB 9.7385 million in investment from Nantong Zijinghuatong
Equity Investment Partnership (Limited Partnership), and a decrease of RMB 1.2 million from
cancellation of Yiwu Smart Transportation Co., Ltd.
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Semi-annual Report for 2024
(1).Major equity investments
√Applicable □Not applicable
Unit: RMB10,000
Wheth
er the Wheth Imp
Whet
target er to act
Investe is Statem Progres Estim her Disclo Disclo
Invest Invest consoli Partner Invest on
d Main mainly Shareh ent Sourc s as of ated invol sure sure
ment ment date s (if ment curr
compa busines engag olding item (if e of balance earnin ved date index
ed in metho amoun financi applica period ent
ny s ratio applica funds sheet gs (if in (if (if
invest d t al ble) (if any) profi
name ment ble) date any) litigat any) any)
statem t or
busine ion
ss
ents loss
Ventur
Suzhou
e
Xiangz Taicang
capital Feb
hong Weizho
(limited Accumu 10,
Ventur Other ng
to Self-o lated 2021
e non-cu Investm
investm wned Not investm Nov
Capital 6,000. rrent ent
ent in Yes Other 13.70% No Fund applic ent of No 19, Nil
Partner 00 financi Manage
unlisted source able RMB 2020
ship al ment
enterpri s 160 Nov
(Limite assets Co.,
ses); million 18,
d Ltd.,
Equity 2020
Partner etc.
investm
ship)
ent
6,000.
Total / / / / / / / / / / / / /
00
(2).Major non-equity investments
√Applicable □Not applicable
Unit: RMB10,000
Investment Cumulative
Project
Item Progress amount actual
amount
during the investment
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Semi-annual Report for 2024
current amount
period .
The construction of the lower structure of the A-B overpass in the comprehensive protection zone has
The Yiwu Comprehensive
624,250.00 been completed, and all other projects have been completed and accepted. Zones A, B, and D have 4,008.12 435,748.16
Bonded Zone Project
been put into use.
Logistics Park S2 108,000.00 Completed and accepted. 8,007.27 74,093.26
Logistics Park S3 132,000.00 Completed and accepted. 14,509.36 97,597.76
Yiwu International Digital
113,600.00 Completed and accepted. 6,417.49 83,179.76
Logistics Market
62% of the total project volume for the first phase has been completed, and roof-topping works for the
Global Digital Free Trade market section main structure of the second phase have been completed. About 68% of the
832,082.00 8,747.59 289,684.70
Center above-ground main structure of the commercial office building section has been completed, and the
construction of super high-rise buildings has started.
(3).Financial assets measured at fair value
√Applicable □Not applicable
Unit: RMB10,000
Profit and loss Current
Cumulative fair Current Sale/redemption
Opening from changes in provision Other Closing
Category of assets value changes purchase amount in
balance fair value in the included in equity for changes balance
amount current period
current period impairment
Held-for-trading financial
1,513.09 -349.01 - - - - - 1,164.08
assets
Other equity instruments
55,689.74 - 151.33 - - - -125.43 55,564.31
investment
Other non-current financial
142,156.99 - - - 8,171.82 1,093.85 - 149,234.96
assets
Total 199,359.82 -349.01 151.33 - 8,171.82 1,093.85 -125.43 205,963.35
Securities Investment
√Applicable □Not applicable
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Semi-annual Report for 2024
Unit: RMB10,000
Profit
and loss
from Cumulative Sales Profit and
Initial Opening changes fair value Current amount loss from Closing
Security Security Source of Accounting
Securities investment book in fair changes purchase in investment book
code abbreviation funds item
cost value value in included in amount current in current value
the equity period period
current
period
Other equity
Shenwan Self-owned
Stocks 000166 55,362.54 55,689.74 - 151.33 - - - 55,564.31 instruments
Hongyuan funds
investment
Oriental Self-owned Held-for-trading
Stocks 600278 5,000.00 1,513.09 -349.01 - - - - 1,164.08
Venture funds financial assets
Other
Tiantu Self-owned
Stocks 833979 15,519.21 3,717.19 - - - - - 3,717.19 non-current
Investment funds
financial assets
Total / / 75,881.75 / 60,920.02 -349.01 151.33 - - - 60,445.58 /
Explanation of securities investment
□ Applicable √Not applicable
PE investment
√Applicable □Not applicable
At the end of this reporting period, the book value of private equity fund investments was RMB 1,272,744,900, an increase of RMB 50.2615 million
from RMB 1,222,483,400 at the end of the previous year. This was due to the addition of RMB 60 million to Suzhou Xiangzhong Venture Capital
Partnership (Limited Partnership) and the recovery of RMB 9.7385 million from Nantong Redbud Huatong Equity Investment Partnership (Limited
Partnership).
Derivatives investment
□ Applicable √Not applicable
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Semi-annual Report for 2024
(v) Major sales of assets and equity
√Applicable □Not applicable
The Company held the 18th meeting of the 9th Board of Directors on April 22, 2024, and
the 2023 Annual Shareholders' Meeting on May 23, 2024. The Proposal on Wholly-owned
Subsidiary’s Proposed Equity Transfer and Related Transaction was approved, and it was
agreed that the wholly-owned subsidiary Big Data Company and the controlling shareholder
CCCH would sign an Equity Transfer Agreement, agreeing that Big Data Company would
transfer 100% of its equity in Yiwu Xingchen Enterprise Management Co., Ltd. to CCCH. For
details, please refer to the Announcement on Wholly-owned Subsidiary’s Proposed Equity
Transfer and Related Transaction (L 2024-020), Announcement on the Progress of
Wholly-owned Subsidiary’s Proposed Equity Transfer (L 2024-028), and Announcement on the
Completion of Change Registration with Market Regulation Authorities for Equity Transfer of
Wholly-owned Subsidiary (L 2024-029) disclosed by the Company on the Shanghai Stock
Exchange website on April 23, 2024, July 10, 2024, and July 20, 2024, respectively. The equity
transfer has been fully completed.
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Semi-annual Report for 2024
(vi) Analysis of major subsidiaries and associates
√Applicable □Not applicable
Unit: RMB10,000
Registered
Company name Business Total assets Net assets Net profits
capital
Yiwu China Commodities City Financial Enterprise's own capital investment, asset management, investment consulting
400,000.00 276,480.69 258,619.40 -2,099.38
Holdings Co., Ltd. services, investment management services
Industry investment, investment management, property service, market
development and operation, market auxiliary service, real estate development,
Haicheng Company 60,000.00 188,582.64 -110,770.92 -5,890.49
sale and lease, design, production and agency of domestic advertising, and
operation and management of parking garages
Yiwu Shangbo Yuncang Enterprise
Enterprise management; property management, etc. 30,000.00 132,667.02 49,229.88 -1,074.91
Management Co., Ltd.
Yiwu Shangcheng Gonglian Enterprise
Enterprise management; Real estate development and operation, etc. 20,000.00 16,242.96 15,756.41 -123.30
Management Co., Ltd.
Kuaijietong Payment Service Co., Ltd. Internet payment, cross-border RMB, cross-border foreign exchange, etc. 18,000.00 62,658.94 17,996.24 2,738.10
Yiwu Xingchen Enterprise Management Co.,
Enterprise management; Enterprise management consulting 15,000.00 269,442.05 12,095.75 -0.11
Ltd
Yiwu China Commodities City Import and
Domestic trade and international trade 10,000.00 223,717.33 6,731.69 -805.16
Export Co., Ltd.
Internet data services; professional design services; intelligent control system
Yiwu China Commodities City Big Data Co.,
integration; computer information technology development, technical 10,000.00 52,017.34 27,770.52 7,279.37
Ltd.
consulting, technical services, technology transfer, etc.
Yiwu China Commodities City Supply Chain
Supply chain management service 10,000.00 15,490.29 6,105.04 -854.02
Management Co., Ltd.
Computer software, multimedia technologies, computer network and
Zhejiang Yiwugou E-commerce Co., Ltd. 10,000.00 16,191.77 13,541.03 1,119.34
application, and wholesale & retail
Yiwu China Commodities City Property
Real estate development and sale 500,000.00 2,339,132.01 651,232.83 -1,594.92
Development Co., Ltd.
Yiwu Hongyi Equity Investment Fund Investment management, equity investment, asset management and
200,100.00 143,380.84 143,366.88 271.23
Partnership (limited partnership) investment consulting
Zhejiang Chouzhou Financial Lease Co., Ltd. Financial lease service, and transfer of financial lease assets 100,000.00 2,077,490.10 241,915.68 20,777.69
Industrial investment, investment management, property services, parking lot
Yiwu Shanglv Investment Development Co.,
operation and management, commercial marketing planning, business 80,000.00 130,494.82 96,802.46 4,791.51
Ltd.
management consulting, mall operation and management, etc.
Pujiang Lvgu Property Co., Ltd. Real estate development and sale 70,000.00 114,682.66 80,152.69 9,453.00
International cargo transportation agency by sea; international cargo
Zhijie Yuangang 55,556.00 69,362.83 37,797.48 -2,518.95
transportation agency by air; international cargo transportation agency by land;
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Semi-annual Report for 2024
domestic cargo transportation agency; domestic shipping agency; general
cargo warehousing services, etc.
Real estate development, sale and lease; real estate brokerage service,
Yiwu Guoshen Shangbo Property Co., Ltd. 4,081.63 218,445.13 189,489.54 774.37
interior decoration service; and landscaping service
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Semi-annual Report for 2024
(vii) Structured entities controlled by the Company
□ Applicable √Not applicable
V. Other disclosure matters
(i) Potential risks
√Applicable □Not applicable
1. Macroeconomic fluctuation risk. The profitability of the Company's main businesses such
as market operations, hotel exhibitions, and product sales is significantly correlated with the
macroeconomic cycle. If global economic growth is sluggish and trade volume shrinks, it will
lead to a decrease in the overall prosperity of the Yiwu small commodity market, which will have
a negative impact on shop leasing and related businesses.
2. Risk of insufficient reserves of talents. With the acceleration of market transformation
and the expansion of the Company’s business, and with the expansion of 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 inter-disciplinary talents.
3. External uncertainty. Geopolitical conflicts have caused increased uncertainty in
international trade, and the development of global market trade is more complicated and severe
than before; new technologies are accelerating to breed new opportunities, and new trade
models and new formats are constantly emerging.
(ii) Other disclosure matters
□ Applicable √Not applicable
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Semi-annual Report for 2024
Section IV. Corporate Governance
I. General meeting of shareholders
Designated website
Date of
Session of on which the Resolution of
Date disclosure of the
meeting resolution is the meeting
resolution
published
The first
extraordinary See the
general resolution
Jan 23, 2024 www.sse.com.cn Jan 24, 2024
meeting of announcement
shareholders for details
in 2024
2023 Annual See the
General resolution
May 23, 2024 www.sse.com.cn May 24, 2024
Meeting of announcement
Shareholders for details
The preferred shareholders whose voting rights had been restituted requested to convene an
extraordinary general meeting of shareholders
□ Applicable √Not applicable
Statement on shareholders’ meetings
√Applicable □Not applicable
1. The first extraordinary general meeting of shareholders in 2024 approved the proposals
on changing registered capital and revising the Articles of Association, revising the Rules of
Procedure for Directors’ Meeting, revising the External Guarantee Management System,
revising the Rules of Procedure for Shareholders' Meetings, revising the Decision and
Implementation System for Related-party Transactions, and formulating the Independent
Director Work System.
2. The 2023 Shareholders' Meeting approved the 2023 Board of Directors Work Report,
2023 Board of Supervisors Work Report, 2023 Annual Report and Summary, 2023 Final
Account Report, 2024 Financial Budget Report, 2023 Profit Distribution Plan, Proposal on the
Issuance of Various Debt Financing Instruments in the Next 12 Months, Proposal on the
Redemption of Remuneration for Some Directors of the Company in 2022, and Proposal on
Wholly-owned Subsidiary’s Proposed Equity Transfer and Related Transaction.
II. Changes in directors, supervisors, and senior management of the Company
√Applicable □Not applicable
Name Title Change
WANG Dong Chairman of the Board of Directors Election
WANG Dong General Manager Leaving office
ZHAO Wenge Chairman of the Board of Directors Leaving office
ZHANG Qizhen Vice General Manager Leaving office
Statement on the changes in directors, supervisors and senior officers of the Company
□ Applicable √Not applicable
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Semi-annual Report for 2024
III. Plan for profit distribution or capital reserve into share capital
Plan for profit distribution or capital reserve into share capital made in the current period
Whether to distribute profits or capitalize the No
capital reserve
Number of bonus shares for every 10 shares 0
Dividend payout per 10 shares (RMB) 0
(including tax)
Number of shares converted from the 0
capitalization of capital reserve for every 10
shares
Explanation of the plan for profit distribution or capital reserve into share capital
Nil
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 23rd meeting of the 8th board of
directors of the Company passed the Proposal on the Company's
2020 Restricted Stock Incentive Plan (Draft) and Summary,
Proposal on the Measures for the Evaluation and Management of
the Implementation of the Company's 2020 Restricted Stock
Incentive Plan, Proposal on Requesting the General Meeting of
Shareholders to Authorize the Board of Directors to Handle
Issues Related to Equity Incentives. The independent directors of
For details, please
the Company issued relevant independent opinions.
refer to the Company's
On October 23, 2020, the sixth meeting of the eighth Board announcement on the
website of the Shanghai
of Supervisors of the Company deliberated and approved the
Stock Exchange
Proposal on the Company's 2020 Restricted Stock Incentive Plan (www.sse.com.cn) on
October 24, 2020.
(Draft) and its Summary, The Proposal on the Implementation
Evaluation and Management Measures for the Company's 2020
Restricted Stock Incentive Plan, Proposal on Verification of the
List of Incentive Objects of the Company's 2020 Restricted Stock
Incentive Plan. The board of supervisors issued relevant
verification opinions.
Independent financial consultants, lawyers and other
intermediary agencies issued corresponding opinions.
On November 18, 2020, it received the Approval for For specific details,
please refer to the
Approving Zhejiang China Commodity City Group Co., Ltd. to
announcement disclosed
implement the 2020 restricted stock incentive plan issued by the by the Company on the
Shanghai Stock Exchange
State-owned Assets Supervision and Administration Office of the
website (www.sse.com.cn)
33 / 213
Semi-annual Report for 2024
People's Government of Yiwu City, forwarded by Yiwu China on November 20, 2020.
Commodity City Holdings Ltd. (Ref: Yiwu SASAO〔2020〕51).
From November 20, 2020 to November 29, 2020, the list of
incentive objects and positions of the 2020 restricted stock
incentive plan were internally publicized. Within the time limit of
For details, please
the publicity, the board of supervisors of the Company did not
refer to the Company's
receive any objection from any organization or individual or bad announcement on the
website of the Shanghai
feedback, without feedback record. On November 30, 2020, the
Stock Exchange
Board of Supervisors of the Company issued the Examination (www.sse.com.cn) on
December 1, 2020.
Opinions and Public Statement of the Board of Supervisors on
the List of Incentive Objects of the Company's 2020 Restricted
Stock Incentive Plan.
On December 10, 2020, the Company's 2020 Fifth
Provisional General Meeting of Shareholders deliberated and
approved the “Proposal on the Company's 2020 Restricted Stock
Incentive Plan (Draft)’ and Summary”, the “Proposal on the For details, please
Measures of Assessment and Management of Implementation of refer to the Company's
announcement on the
Company’s 2020 Restricted Stock Incentive Plan”, and the website of the Shanghai
“Proposal on Requesting the General Meeting of Shareholders to Stock Exchange
(www.sse.com.cn) on
Authorize the Board of Directors to Deal with Equity Incentive December 11, 2020.
Related Matters”, and disclosed the “Self-examination Report on
the Trades of Company’s Stocks by Insiders of Company’s 2020
Restricted Stock Incentive Plan”.
On December 11, 2020, the 26th meeting of the 8th board of
directors of the Company passed the Proposal on Granting
Restricted Shares to Incentive Objects for the First Time. The
independent directors of the Company issued relevant
independent opinions. For details, please
On December 11, 2020, the 7th meeting of the Company's refer to the Company's
announcement on the
8th board of supervisors passed the Proposal on Granting website of the Shanghai
Restricted Stocks to Incentive Objects for the First Time. The Stock Exchange
(www.sse.com.cn) on
Board of Supervisors issued the Verification Opinions of the December 12, 2020.
Board of Supervisors on Matters Related to the First Grant of the
Company's 2020 Restricted Stock Incentive Plan.
Independent financial consultants, lawyers and other
intermediary agencies issued corresponding opinions.
On January 15, 2021, the Company received the Securities For details, please
refer to the Company's
34 / 213
Semi-annual Report for 2024
Change Registration Certificate issued by the Shanghai Branch announcement on the
website of the Shanghai
of China Securities Depository and Clearing Co., Ltd., and the
Stock Exchange
Company completed the registration of the first grant of restricted (www.sse.com.cn) on
January 19, 2021.
stocks to incentive objects.
On August 9, 2021, the 35th meeting of the 8th board of
directors of the Company passed the "Proposal on Reserved
Granting Restricted Stocks to Incentive Objects", "Proposal on
Adjusting the Repurchase Price of Restricted Stocks and
Repurchasing and Cancelling Some Restricted Stocks". The
independent directors of the Company issued relevant For details, please
independent opinions. refer to the Company's
announcement on the
On August 9, 2021, the 9th meeting of the 8th Boarder of website of the Shanghai
Supervisors of the Company passed the "Proposal on Reserved Stock Exchange
(www.sse.com.cn) on
Granting Restricted Stocks to Incentive Objects", "Proposal on August 11, 2021.
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 Stock Incentive Plan in 2020.
On November 4, 2021, the Company received the Securities
For details, see the
Change Registration Certificate issued by the Shanghai Branch Company's announcement
of China Securities Depository and Clearing Co., Ltd., and the on the website of the
Shanghai Stock Exchange
Company completed the registration of the reserved grant of (www.sse.com.cn) on
restricted stocks to incentive objects. November 6, 2021.
On November 17, 2021, the Company applied to China
Securities Depository and Clearing Co., Ltd. Shanghai Branch for
repurchase and cancellation of restricted stocks that have been
For details, see the
granted but not yet lifted by some resigned employees. On Company's announcement
November 30, 2021, the Company received the "Securities on the website of the
Shanghai Stock Exchange
Change Registration Certificate" issued by China Securities (www.sse.com.cn) on
Depository and Clearing Co., Ltd. Shanghai Branch, and the November 26, 2021.
Company has completed the registration of the restricted stock
repurchase and cancellation.
On July 19, 2022, the 51st meeting of the 8th board of
For details, see the
directors of the Company reviewed and approved the "Proposal Company's announcement
on Adjusting the Repurchase Price of Restricted Stocks and the on the website of the
Shanghai Stock Exchange
Repurchase and Cancellation of Some Restricted Stocks", and (www.sse.com.cn) on July
the independent directors of the Company issued a statement on 20, 2022.
35 / 213
Semi-annual Report for 2024
this independent opinion expressing consent. On July 19, 2022,
the 14th meeting of the 8th Board of Supervisors of the Company
passed the "Proposal on Adjusting the Repurchase Price of
Restricted Shares and Repurchasing and Cancelling Some
Restricted Shares".
On October 18, 2022, the Company applied to China
Securities Depository and Clearing Co., Ltd. Shanghai Branch for
repurchase and cancellation of restricted stocks that have been
For details, see the
granted but not yet lifted by some resigned employees. On Company's announcement
October 21, 2022, the Company received the "Securities Change on the website of the
Shanghai Stock Exchange
Registration Certificate" issued by China Securities Depository (www.sse.com.cn) on
and Clearing Co., Ltd. Shanghai Branch, and the Company has October 19, 2022.
completed the registration of the restricted stock repurchase and
cancellation.
On December 28, 2022, the 6th Meeting of the 9th Board of
Directors of the Company passed the "Proposal on the
Satisfaction of the Unlocking Conditions for the First Unlocking
Period of the First Grant Part of the 2020 Restricted Stock
Incentive Plan ". The independent directors of the Company have
issued independent opinions expressing agreement. For details, see the
Company's announcement
On December 28, 2022, the 2nd Meeting of the Company's
on the website of the
9th Board of Supervisors passed the "Proposal on the Shanghai Stock Exchange
(www.sse.com.cn) on July
Satisfaction of the Unlocking Conditions for the First Unlocking
20, 2022.
Period of the First Grant Part of the 2020 Restricted Stock
Incentive Plan". The Board of Supervisors issued the
"Verification Opinion on the Satisfaction of the Unlocking
Conditions for the First Unlocking Period for the First Grant Part
of the 2020 Restricted Stock Incentive Plan".
On August 17, 2023, the 12th Meeting of the 9th Board of
Directors of the Company approved the Proposal on Adjusting
the Repurchase Price of Restricted Stocks and Repurchasing For specific details,
and Cancelling Some Restricted Stocks. The independent please refer to the
announcement disclosed
directors of the Company expressed their independent opinion of by the Company on the
agreement on this. On August 17, 2023, the 5th Meeting of the Shanghai Stock Exchange
website (www.sse.com.cn)
9th Board of Supervisors of the Company approved the Proposal on August 19, 2023.
on Adjusting the Repurchase Price of Restricted Stocks and
Repurchasing and Cancelling Some Restricted Stocks.
On October 19, 2023, the 13th Meeting of the 9th Board of For specific details,
36 / 213
Semi-annual Report for 2024
Directors of the Company approved the Proposal on the please refer to the
announcement disclosed
Satisfaction of the Unlocking Conditions for the First Unlocking
by the Company on the
Period of the Reserved Grant Part of the 2020 Restricted Stock Shanghai Stock Exchange
website (www.sse.com.cn)
Incentive Plan. The independent directors of the Company have
on October 20, 2023.
issued independent opinions expressing agreement.
On October 19, 2023, the 6th Meeting of the 9th Board of
Supervisors of the Company approved the Proposal on the
Satisfaction of the Unlocking Conditions for the First Unlocking
Period of the Reserved Grant Part of the 2020 Restricted Stock
Incentive Plan. The Board of Supervisors issued Verification
Opinion on the Satisfaction of the Unlocking Conditions for the
First Unlocking Period of the Reserved Grant Part of the 2020
Restricted Stock Incentive Plan.
On November 8, 2023, the Company applied to Shanghai
Branch of China Securities Depository and Clearing Corporation
for the repurchase and cancellation of restricted stocks that had For specific details,
been granted to some resigned employees but still under lock-up. please refer to the
announcement disclosed
On November 20, 2023, the Company received a Securities by the Company on the
Change Registration Certificate issued by Shanghai Branch of Shanghai Stock Exchange
website (www.sse.com.cn)
China Securities Depository and Clearing Corporation, and on November 16, 2023.
completed the registration for the repurchase and cancellation of
restricted stocks.
On December 28, 2023, the 14th Meeting of the 9th Board of
Directors of the Company approved the Proposal on the
Satisfaction of the Unlocking Conditions for the Second
Unlocking Period of the First Grant Part of the 2020 Restricted
For specific details,
Stock Incentive Plan. On December 28, 2023, the 7th Meeting of
please refer to the
the 9th Board of Supervisors of the Company approved the announcement disclosed
by the Company on the
Proposal on the Satisfactio`n of the Unlocking Conditions for the
Shanghai Stock Exchange
Second Unlocking Period of the First Grant Part of the 2020 website (www.sse.com.cn)
on December 29, 2023.
Restricted Stock Incentive Plan. The Board of Supervisors issued
Verification Opinion on the Satisfaction of the Unlocking
Conditions for the Second Unlocking Period of the First Grant
Part of the 2020 Restricted Stock Incentive Plan.
(ii) Incentives that have not been disclosed in the temporary announcements or had
further progresses
Incentive stock option
□ Applicable √Not applicable
37 / 213
Semi-annual Report for 2024
Other statements
□ Applicable √Not applicable
Employee stock ownership plans
□ Applicable √Not applicable
Other incentives
□ Applicable √Not applicable
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Semi-annual Report for 2024
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
During the reporting period, the Company's Yiwu International Trade City used clean energy for
power generation, reducing emissions of approximately 10,100 tons of carbon dioxide
equivalent.
II. Status of consolidation and expansion of the results of poverty alleviation, rural
revitalization and other specific work
□ Applicable √Not applicable
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Semi-annual Report for 2024
Section VI. Significant matters
I. Fulfillment of commitments
(i) Commitments made by the actual controller, shareholders, affiliates and acquirer of the Company, the Company itself and other related
parties during the reporting period or as of the reporting period
□ Applicable √Not applicable
II. The Company’s funds occupied by its controlling shareholders or any of other affiliates for non-operational purposes during the
reporting period
□ Applicable √Not applicable
III. Illegal guarantees
□ Applicable √Not applicable
40 / 213
Semi-annual Report for 2024
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
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Semi-annual Report for 2024
VII. Material litigations and arbitrations
√ During the period, the Company had major litigations or arbitrations □ During the period, the Company did not have any major litigations or
arbitrations
(i) Litigations and arbitrations that 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:
Value Does the
Party Litig litigation
involved (arbitration)
bearing ation Status of Enforcement
Plaintiff Defendant Basic information of litigation in cause Results of litigation (arbitration) and
joint or estimated litigation of judgment
(claimant) (respondent) (arbitration) litigation effect thereof
liabilitie arbitr liabilities and (arbitration) (award)
(arbitratio
s ation the amount
n) thereof
Beijing Urban
Dispute over construction project
Construction Litig 35,636.1 Hearings have
The Company Nil contract No
Group Co., ation 5 not been held
(2024) Z 07 MC No. 534
Ltd.
Judgement for
the first
instance has
Yiwu China been made,
Shizuishan
Commodities the Company
Shengyuze
City Supply Litig Contract dispute has appealed,
Asset Nil 1,166.06 No
Chain ation (2024) N 0202 MC No. 514 and the
Management
Management hearing for the
Co., Ltd.
Co., Ltd. second
instance has
not been held
yet
The
Company,
third party Dispute over construction project
Litig Hearings have
Ying Jianhua Shenzhen Nil construction contract 836.31 No
ation not been held
Pengrun (2022) Z 0782 MSQT No. 18007
Construction
Group Co.,
42 / 213
Semi-annual Report for 2024
Ltd.
Luo Haiquan,
The hearing
Huang
Dispute case involving for the second
Shuiying, third
shareholders harming the instance has
party: Litig
The Company Nil interests of the Company's 300 No been held,
Longchuan ation
creditors but judgement
Yuegang
(2023) Y 1622 MC No. 2752 has not been
Industrial Co.,
made yet
Ltd.
I. The defendant Yiwu Junhuhui
Entertainment Co., Ltd. shall pay the
plaintiff Zhejiang China Commodities
Zhejiang
City Group Co., Ltd. CCC Hotel a rent
China Small The litigation
Yiwu Junhuhui Disputes over Housing Lease of RMB 5,330,000 and a penalty of
Commodities Litig Judgment has amount has
Entertainment Nil Contracts 554.66 No RMB 334,400 for the period from April
City Group ation been made been
Co., Ltd. (2024) Z 0782 MC No. 9083 1, 2023 to June 21, 2024;
Co., Ltd. CCC recovered
II. The litigation fee is RMB 25,313
Hotel
(halved), shall be borne by the
defendant Yiwu Junhuhui
Entertainment Co., Ltd.
(iii) Other notes
□ Applicable √Not applicable
43 / 213
Semi-annual Report for 2024
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. Significant related transactions
(i) Related 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
44 / 213
Semi-annual Report for 2024
3. Matters that have not been disclosed in the temporary announcements
√Applicable □Not applicable
Unit: RMB
Reasons for the
Percentage
large difference
in the
Type of Contents of Price of Amount of between the
Related Pricing amount of Settlement
Relationship related-party related-party related-party related-party Market price price of the
counterparty principle similar method
transaction transaction transaction transaction transaction and
transactions
reference market
(%)
price
Subsidiary Property
Yiwu China
of the Acceptance service fee
Commodities Market Account
Company’s of labor and greening 110,312,803.36 110,312,803.36 87.69 110,312,803.36
City Property price transfer
largest service maintenance
Service Co., Ltd.
shareholder fee
Subsidiary
of
controlling
Acceptance
Yiwu Security shareholder Security Market Account
of labor 9,059,886.19 9,059,886.19 7.20 9,059,886.19
Service Co., Ltd. of the service fee price transfer
service
Company’s
largest
shareholder
Subsidiary
Yiwu Shangbo
of the Acceptance
Yungu Enterprise Construction Market Account
Company’s of labor 5,203,100.00 5,203,100.00 4.14 5,203,100.00
Management fee price transfer
largest service
Co., Ltd.
shareholder
Yourworld Branch of
International Controlling Entrusted
Conference shareholder Other management Negotiated Account
1,220,016.70 1,220,016.70 0.97 1,220,016.70
Center, of the inflows and license price transfer
subordinated to Company’s fees
Yiwu Market largest
45 / 213
Semi-annual Report for 2024
Development shareholder
Group
Total / / 125,795,806.25 100.00 / 125,795,806.25 /
Return of large-value goods sales Not applicable
Yiwu China Small Commodity City Property Service Co., Ltd. obtained the market property
Illustration on related-party transactions
service and greening maintenance contract by participating in public bidding.
46 / 213
Semi-annual Report for 2024
(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
The Company held the 18th meeting of the 9th Board of Directors on April 22, 2024, and
the 2023 Annual Shareholders' Meeting on May 23, 2024. The Proposal on Wholly-owned
Subsidiary’s Proposed Equity Transfer and Related Transaction was approved, and it was
agreed that the wholly-owned subsidiary Big Data Company and the controlling shareholder
CCCH would sign an Equity Transfer Agreement, agreeing that Big Data Company would
transfer 100% of its equity in Yiwu Xingchen Enterprise Management Co., Ltd. to CCCH. For
details, please refer to the Announcement on Wholly-owned Subsidiary’s Proposed Equity
Transfer and Related Transaction (L 2024-020), Announcement on the Progress of
Wholly-owned Subsidiary’s Proposed Equity Transfer (L 2024-028), and Announcement on the
Completion of Change Registration with Market Regulation Authorities for Equity Transfer of
Wholly-owned Subsidiary (L 2024-029) disclosed by the Company on the Shanghai Stock
Exchange website on April 23, 2024, July 10, 2024, and July 20, 2024, respectively. The equity
transfer has been fully completed.
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 transactions arising from joint investments in external entities
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) Credits and liabilities with related parties
1. Matters that have been disclosed in the temporary announcements and had no
further progresses or changes
□ Applicable √Not applicable
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Semi-annual Report for 2024
2. Matters that have been disclosed in the temporary announcements but had further
progresses or changes
□ Applicable √Not applicable
3. Matters that have not been disclosed in the temporary announcements
□ Applicable √Not applicable
(v) Financial business between the Company and the associated financial companies,
the Company's holding financial company and the related parties
□ Applicable √Not applicable
(vi) Other significant related transactions
□ Applicable √Not applicable
(vii) Other
□ Applicable √Not applicable
XI. Significant contracts and their execution
1 Trusteeship, contracting and leases
□ Applicable √Not applicable
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Semi-annual Report for 2024
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
ip guarant Overdu
Is the Is the Is it a
between Amoun ee Guaran Guaran e
The Type of Princi Collate guarant guarant related-p Related
Guaran the t of (signing tee tee amount Counter
guarant guarant pal ral (if ee ee arty Relationsh
tor guarantor guarant date of Starting Maturity of the guarantees
eed ee debts any) fulfilled overdu guarante ip
and the ee the date date guarant
in full e e
Listed agreem ee
Company ent)
Joint
and SCO
The The
Yiwu 2,659. Dec 16, Jul 1, Dec 15, several provided a Joint
Compa Company Nil No No - Yes
Shanglv 17 2015 2015 2026 liability counter-guar venture
ny itself
guarant antee
ee
Hangzh Joint
ou and
Wholly-ow House Wholly-ow
Shangb 461.1 several
ned purchas Nil No No - No ned
o 3 liability
subsidiary er subsidiary
Nanxin guarant
g ee
Amount of guarantees made during the reporting period
-1,918.12
(excluding the guarantees provided for subsidiaries)
Balance of guarantees at the end of the reporting period (A)
3,120.30
(excluding the 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)
49 / 213
Semi-annual Report for 2024
Total guaran`tees provided by the Company (including those provided for the subsidiaries)
Total amount of guarantees (A+B) 3,120.30
Ratio of the total amount of guarantees to the Company’s net
0.17
assets (%)
Among them:
Amount of guarantees provided for shareholders, actual
-
controller and their related parties (C)
Amount of guarantees provided directly or indirectly for the
-
debtors whose debt-to-asset ratio exceed 70% (D)
Portion of total amount of guarantees in excess of 50% of net
-
assets (E)
Total (C+D+E) -
Statement on the joint and several liability that may be assumed
Not applicable
due to outstanding guarantees
1. According to the resolution of the 15th Meeting of the 7th Board of Directors on
July 1, 2015, the Group applied for a loan of RMB 750 million 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, 2024, Yiwu Shanglv actually borrowed RMB 54,268,838.96
(December 31, 2023: RMB 93,377,327.02) from banks in total. According to the
guarantee contract, the Group should bear a guarantee liability of RMB
26,591,731.09 (December 31, 2023: RMB 45,754,890.24) to Yiwu Branch of
Statement on guarantees
Agricultural Bank of China. SCO provided a counter-guarantee for this guarantee.
2. According to relevant regulations, the Group is required to provide mortgage loan
guarantees to the bank for the sale of commercial housing before purchasers of the
housing obtain the property ownership certificate. The outstanding guarantee amount
as of June 30, 2024 was RMB 4,611,250.35 (December 31, 2023: RMB
4,629,333.68). 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.
50 / 213
Semi-annual Report for 2024
3 Other significant contracts
√Applicable □Not applicable
Contract
price
No. Contract name Signing parties Signing time
(RMB Ten
thousand)
General Contract
for Global Digital
The Company, Zhejiang Provincial
1 Trade Center 108,064.44 April 2024
Yijian Construction Group Co., Ltd.
Project Super
High-rise Building
General Contract
for Lot 1 of Yiwu
Comprehensive The Company, Yiwu Shenglin
2 2,362.69 March 2024
Bonded Zone Construction Co., Ltd.
Phase II
Overpass Project
Yiwu Global
Digital Trade
Center Phase II The Company, Yiwu Jiangshen
3 1,755.25 June 2024
Building Construction Co., Ltd.
Intelligence
Project
XII. Description of progress in the use of raised funds
□ Applicable √Not applicable
XIII. Other significant matters
□ Applicable √Not applicable
51 / 213
Semi-annual Report for 2024
Section VII. Changes in Shares and Information of Shareholders
I. Changes in shares
(i) Table of changes in shares
1. Table of changes in shares
Unit: share
Increase or decrease in the current period
Before this change After this change
(+, -)
Share
s
New
Bon conve
Propor shar Propor
us rted Sub-tot
Quantity tion es Other Quantity tion
shar from al
(%) issu (%)
es capital
ed
reserv
e
I. Restricted 27,218,7 -12,414 -12,414 14,804,1
0.50 0 0 0 0.27
shares 50 ,600 ,600 50
3. Shares
held by
27,218,7 -12,414 -12,414 14,804,1
other 0.50 0 0 0 0.27
50 ,600 ,600 50
domestic
investors
share
s held by
27,218,7 -12,414 -12,414 14,804,1
domestic 0.50 0 0 0 0.27
50 ,600 ,600 50
natural
persons
II.
5,457,11 12,414, 12,414, 5,469,53
Unrestricted 99.50 0 0 0 99.73
5,426 600 600 0,026
shares
1.
RMB-deno
5,457,11 12,414, 12,414, 5,469,53
minated 99.50 0 0 0 99.73
5,426 600 600 0,026
common
shares
III. Total
5,484,33 5,484,33
number of 100 0 0 0 0 0 100
4,176 4,176
shares
2. Explanation of changes in shares
√Applicable □Not applicable
On January 15, 2024, a total of 12,414,600 restricted shares for the second unlocking
period of the first grant part of the Company's 2020 Restricted Stock Incentive Plan were listed
for circulation.
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
52 / 213
Semi-annual Report for 2024
4. Other matters the Company deems it necessary to disclose or required by the
securities regulatory authority to be disclosed
□ Applicable √Not applicable
53 / 213
Semi-annual Report for 2024
(ii) Changes in restricted shares
√Applicable □Not applicable
Unit: Ten Thousand Shares
Number
Number Number
of Number of
of of
restricted increased
restricted restricted Reasons
shares restricted
shares at shares at for
Shareholder unlocked shares Release date
the the end of restriction
during during the
beginning the on trade
the reporting
of the reporting
reporting period
period period
period
The lock-up period
322 incentive is 24 months, 36
recipients subject months and 48
Restricted
to the first grant months from the
2,574.14 1,241.46 - 1,332.68 stock
under the 2020 date when the
incentives
restricted stock registration of the
incentive plan first grant is
completed.
The lock-up period
29 incentive
is 24 months, 36
recipients subject
months and 48
to the reserved Restricted
months from the
grant part under 147.735 - - 147.735 stock
date when the
the 2020 incentives
registration of the
restricted stock
first grant is
incentive plan
completed.
Total 2,721.875 1,241.46 - 1,480.415 / /
The Company's restricted stock incentive plan for 2020 was implemented until the end of
the reporting period. A total of 75 incentive recipients no longer met the incentive conditions due
to transfer, resignation, retirement, and other reasons. Their restricted stocks were repurchased
and cancelled by the Company. As of the end of the reporting period, there were a total of 351
remaining incentive recipients, holding a total of 14.80415 million shares restricted for sale.
II. Information about shareholders
(i) Total number of shareholders:
Number of common shareholders as of the end of 139,302
the reporting period
As of the end of the reporting period, the total 0
number of preferred shareholders whose voting
rights have been restored
54 / 213
Semi-annual Report for 2024
(ii) Shareholdings of the top 10 shareholders and top 10 holders of tradable shares (or shareholders not subject to trading restrictions)
Unit: share
Shareholdings of the top ten shareholders (excluding shares lent through refinancing)
Number of Pledge, mark or
shares held at Number of freezing
Shareholder Change during the Proportion Ownership of
the end of the non-tradable
(full name) reporting period (%) Status of shareholder
reporting shares held Quantity
shares
period
Yiwu China Commodities City State-owned
0 3,038,179,392 55.40 0 Nil 0
Holdings Limited legal person
Zhejiang Zhecai Capital State-owned
0 147,466,528 2.69 0 Nil 0
Management Co., Ltd. legal person
Hong Kong Central Clearing
25,706,463 108,568,504 1.98 0 Unk - Others
Company Limited
China Life Insurance Co., Ltd. -
Traditional - General Insurance -6,387,200 33,646,042 0.61 0 Unk - Unk
Products -005L-CT001 Shanghai
Overseas natural
Gao Yaping 0 32,261,566 0.59 0 Unk -
person
Industrial and Commercial Bank of
China Limited – Huatai-PineBridge 31,710,002 31,710,002 0.58 0 Unk - Unk
CSI 300 ETF
Bank of China Limited - Guangfa
Small and Medium Cap Selected 8,034,400 27,830,800 0.51 0 Unk - Unk
Hybrid Securities Investment Fund
Southern Asset Management－
Agricultural Bank of China－ 0 26,675,000 0.49 0 Unk - Unk
Southern China Securities Financial
Assets Management Scheme
Dacheng Fund－Agricultural Bank of
China－Dacheng China Securities 0 26,447,800 0.48 0 Unk - Unk
Financial Assets Management
Scheme
55 / 213
Semi-annual Report for 2024
Domestic natural
Jiang Shibo 0 24,387,200 0.44 0 Unk -
person
Shareholdings of the top ten shareholders not restricted for sale (excluding shares lent through refinancing)
Type and quantity of shares
Shareholder Number of tradable shares held
Type Quantity
RMB-denominated
Yiwu China Commodities City Holdings Limited 3,038,179,392 3,038,179,392
common share
RMB-denominated
Zhejiang Zhecai Capital Management Co., Ltd. 147,466,528 147,466,528
common share
RMB-denominated
Hong Kong Central Clearing Company Limited 108,568,504 108,568,504
common share
China Life Insurance Co., Ltd. - Traditional - General RMB-denominated
33,646,042 33,646,042
Insurance Products -005L-CT001 Shanghai common share
RMB-denominated
Gao Yaping 32,261,566 32,261,566
common share
Industrial and Commercial Bank of China Limited – RMB-denominated
31,710,002 31,710,002
Huatai-PineBridge CSI 300 ETF common share
Bank of China Limited - Guangfa Small and Medium Cap RMB-denominated
27,830,800 27,830,800
Selected Hybrid Securities Investment Fund common share
Southern Asset Management－Agricultural Bank of China
RMB-denominated
－Southern China Securities Financial Assets Management 26,675,000
common share
26,675,000
Scheme
Dacheng Fund－Agricultural Bank of China－Dacheng RMB-denominated
26,447,800 26,447,800
China Securities Financial Assets Management Scheme common share
RMB-denominated
Jiang Shibo 24,387,200 24,387,200
common share
Explanation of the special account for repurchased shares
Nil
among the top ten shareholders
Explain if any of the shareholders above was involved in
entrusting/being entrusted with voting rights or waiving Nil
voting rights
56 / 213
Semi-annual Report for 2024
Zhejiang Provincial Finance Development Co., Ltd., controlling shareholder of Zhejiang
Zhecai Capital Management Co., Ltd., holds 9.44% of the shares of Yiwu State-owned
Explanation on the relationship or concerted action
Capital Operation Co., Ltd., the controlling shareholder of Yiwu China Commodity City
between the above shareholders
Holding Limited, the controlling shareholder of Yiwu Market Development Group Co.,
Ltd.
Explanation on the preferred shareholders whose voting
rights had been restituted and the quantity of shares held Nil
thereby
57 / 213
Semi-annual Report for 2024
Participation of shareholders holding more than 5% of the shares, top ten shareholders, and top
ten shareholders with non-restricted tradable shares in the lending of shares through
refinancing
□ Applicable √Not applicable
Changes in the top ten shareholders and the top ten shareholders with non-restricted tradable
shares compared to the prior corresponding period due to lending or return of shares through
refinancing
□ Applicable √Not applicable
Number of shares held by the top 10 shareholders subject to trading restrictions and the trading
restrictions
□ Applicable √Not applicable
(iii) Strategic investors or general corporations becoming top ten shareholders due
to placing of new shares
□ Applicable √Not applicable
III. Directors, supervisors and senior management
(i) Changes in shareholding of 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 notes
□ Applicable √Not applicable
IV. Changes in controlling shareholder or actual controller
□ Applicable √Not applicable
58 / 213
Semi-annual Report for 2024
Section VIII. Preferred Shares
□ Applicable √Not applicable
59 / 213
Semi-annual Report for 2024
Section IX. Bonds
I. Corporate bonds (including enterprise bonds) and non-financial corporate debt
financing instruments
√Applicable □Not applicable
(i) Corporate bonds (including enterprise bonds)
√Applicable □Not applicable
1. Basic information of corporate bonds
Unit: RMB 100 million
Whet
her
The
there
late Meth
is a
st od of
Investo risk
put- princi
r of
bac Outst pal
Inte Plac Trust approp termi
Name Valu k Matur andin repa Lead Trade
Abbre Co Issue rest e of ee riate natin
of e date ity g ymen under mech
viation de date rate tradi man arrang g the
bond date after date balan t and writer anism
(%) ng ager ement trans
Aug ce inter
s (if actio
ust est
any) n in
31, paym
the
202 ent
stock
4
mark
et
Zhejia Simp
ng le
China inter
Com est is
modit calcu
y City lated,
Group the
Co., inter
Ltd. est
Sha
public paym Profes
ngha
ly 22 Sept Sept Sept ent CITI sional Publi
i CITIC
issue YIWU 137 embe embe embe 2.8 frequ C instituti c
8 Stoc Secur No
d CCC 740 r 1, r 1, r 1, 8 ency Secu onal tradin
k ities
corpo 01 2022 2022 2025 is rities investo g
Exch
rate annu rs
ange
bonds al,
to and
profes the
sional princi
invest pal is
ors in repai
2022 d
(Issue once
1) due.
Zhejia Simp
ng le
China inter
Com est is
modit calcu
y City lated,
Group the
Co., inter
Ltd. est
Sha
public paym Profes
ngha
ly 22 Sept Sept Sept ent CITI sional Publi
i CITIC
issue YIWU 137 embe embe embe 2.8 frequ C instituti c
7 Stoc Secur No
d CCC 815 r 22, r 22, r 22, 8 ency Secu onal tradin
k ities
corpo 02 2022 2022 2025 is rities investo g
Exch
rate annu rs
ange
bonds al,
to and
profes the
sional princi
invest pal is
ors in repai
2022 d
(Issue once
2) due.
60 / 213
Semi-annual Report for 2024
The Company's measures to deal with the risk of bond termination
□ Applicable √Not applicable
2. Triggering and execution of issuer or investor choice clauses and investor
protection clauses
□ Applicable √Not applicable
3. Changes in credit ratings
□ Applicable √Not applicable
Other statements
Shanghai New Century Credit Rating Investment Service Co., Ltd. issued the Zhejiang
China Commodities City Group Co., Ltd. Credit Rating Report [XSJQP (2024) 020213] on June
26, 2024. According to the report, the Company's main credit rating is AAA, and the rating
outlook is stable.
4. Changes, variations, and execution of guarantees, debt repayment plans, and other
debt protection measures during the reporting period and their impacts
□ Applicable √Not applicable
Other statements
Nil
61 / 213
Semi-annual Report for 2024
(ii) Non-financial corporate debt financing instruments in the interbank bond market
√Applicable □Not applicable
1. Basic information of non-financial corporate debt financing instruments
Unit: RMB 100 million
Whether
there is a
Method of
risk of
principal Investor
Interest terminating
Maturity Outstanding repayment Place of appropriate Trade
Name of bond Abbreviation Code Issue date Value date rate the
date balance and trading arrangements mechanism
(%) transaction
interest (if any)
in the
payment
stock
market
Annual
Feb 22, interest
Zhejiang China Commodities 22 Zhejiang
2022 to Feb 24, Feb 24, payment, Interbank
City Group Co., Ltd.’s 2022 Yiwu CCC 102280347 10 3.29 No
Feb 23, 2022 2025 principal market
MTN (Issue 1) MTN001
2022 repayment
at maturity
Annual
Mar 25, interest
Zhejiang China Commodities 22 Zhejiang
2022 to Mar 29, Mar 29, payment, Interbank
City Group Co., Ltd.’s 2022 Yiwu CCC 102280660 5 3.57 No
Mar 28, 2022 2025 principal market
MTN (Issue 2) MTN002
2022 repayment
at maturity
Annual
Jul 18, interest
Zhejiang China Commodities 22 Zhejiang
2022 to Jul 20, Jul 20, payment, Interbank
City Group Co., Ltd.'s 2022 Yiwu CCC 102281584 5 3.00 No
Jul 19, 2022 2025 principal market
MTN (Issue 3) MTN003
2022 repayment
at maturity
One-time
repayment
Zhejiang China Commodities Nov 6,
23 Zhejiang of
City Group Co., Ltd. 2023 2023 to Nov 8, Aug 2, Interbank
Yiwu CCC 012384038 10 2.78 principal No
Super Short-term Financing Nov 7, 2023 2024 market
SCP005 and
Bonds (Issue 5) 2023
interest at
maturity.
Zhejiang China Commodities 24 Zhejiang 012480815 Mar 11, Mar 31, Dec 6, 10 2.40 One-time Interbank No
62 / 213
Semi-annual Report for 2024
City Group Co., Ltd.’s 2024 Yiwu CCC 2024 to 2024 2024 repayment market
Super Short-term Financing SCP001 Mar 12, of
Bonds (Issue 1) 2024 principal
and
interest at
maturity.
One-time
repayment
Zhejiang China Commodities Apr 7,
24 Zhejiang of
City Group Co., Ltd.’s 2024 2024 to Apr 9, Dec 26, Interbank
Yiwu CCC 012481205 10 2.33 principal No
Super Short-term Financing Apr 8, 2024 2024 market
SCP002 and
Bonds (Issue 2) 2024
interest at
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
63 / 213
Semi-annual Report for 2024
2. Triggering and execution of issuer or investor choice clauses and investor
protection clauses
□ Applicable √Not applicable
3. Changes in credit ratings
□ Applicable √Not applicable
Other statements
Shanghai New Century Credit Rating Investment Service Co., Ltd. issued the Zhejiang
China Commodities City Group Co., Ltd. Credit Rating Report [XSJQP (2024) 020213] on June
26, 2024. According to the report, the Company's main credit rating is AAA, and the rating
outlook is stable.
4. Execution and changes of guarantees, debt repayment plans, and other debt
protection measures during the reporting period and their impact
□ Applicable √Not applicable
Other statements
Nil
5. Explanation of other situations regarding non-financial corporate debt financing
instruments
□ Applicable √Not applicable
(iii) Fundraising through corporate bonds
√ All corporate bonds of the Company did not involve the use of raised funds or rectification
during the reporting period □ The Company's bonds involved the use or rectification of the
raised funds during the reporting period
(iv) Other matters that should be disclosed for special bond varieties
□ Applicable √Not applicable
(v) Important matters related to corporate bonds during the reporting period
□ Applicable √Not applicable
(vi) Consolidated loss of the reporting period over 10% of net assets as at the end of
last year
□ Applicable √Not applicable
64 / 213
Semi-annual Report for 2024
(vii) Main accounting data and financial indicators
√Applicable □Not applicable
Unit: RMB
Increase/decrease at
As of the end of the end of the
At the end of the Reasons for
Major indicator the current reporting period over
previous year change
reporting period the end of the
previous year (%)
Current ratio 0.43 0.48 -10.42
Quick ratio 0.30 0.39 -23.08
Debt-to-asset ratio (%) 49.76 51.12 Down 1.36 ppt
Reasons for
Jan-Jun 2024 Jan-Jun 2023 YoY change (%)
change
Net profit after deduction of 1,418,908,469.37 1,839,365,824.67 -22.86
non-recurring gains and
losses
EBITDA to total debt ratio 0.27 0.31 -12.90
Interest coverage ratio 16.83 19.59 -14.09
Cash interest protection Due to the
multiple increase in cash
3.74 2.25 66.22
income tax paid
in this period
EBITDA-to-interest coverage
20.59 22.50 -8.49
ratio
Loan repayment rate (%) 100 100
Interest payment rate (%) 100 100
II. Convertible bonds
□ Applicable √Not applicable
65 / 213
Semi-annual Report for 2024
Section X. Financial Report
I. Auditor's Report
□ Applicable √Not applicable
II. Financial statements
Consolidated Balance Sheet
June 30, 2024
Prepared by: Zhejiang China Commodities City Group Co., Ltd.
Unit: RMB
Item Notes June 30, 2024 December 31, 2023
Current assets:
Cash and cash equivalents 979,696,870.94 2,922,735,320.61
Held-for-trading financial assets 11,640,817.50 15,130,895.00
Accounts receivable 475,461,557.28 592,857,795.09
Prepayments 1,933,879,454.57 986,062,615.10
Other receivables 121,606,527.40 115,279,387.63
Inventories 1,897,027,952.53 1,247,244,380.91
Other current assets 834,033,616.52 665,132,672.86
Total current assets 6,253,346,796.74 6,544,443,067.20
Non-current assets:
Debt investments 48,066,000.00 48,073,333.34
Long-term receivables 291,886,046.34 278,026,679.25
Long-term equity investment 6,938,804,460.82 7,022,779,506.25
Other equity instruments investment 555,643,105.79 556,897,379.17
Other non-current financial assets 1,492,349,593.33 1,421,569,904.19
Investment properties 4,055,293,637.52 4,144,209,365.57
Fixed assets 4,779,247,066.98 4,940,523,363.51
Construction in progress 4,383,862,731.01 3,955,959,200.32
Right-of-use assets 169,346,250.60 180,873,833.84
Intangible assets 6,244,505,092.51 6,238,384,501.96
Among them: data resources 8,445,063.18 -
Development expenses 11,157,791.11 18,648,441.93
Among them: data resources 9,101,400.55 7,855,225.73
Goodwill 284,916,367.87 284,916,367.87
Long-term prepaid expenses 273,485,862.73 330,032,050.64
Deferred income tax assets 101,529,164.07 115,356,912.59
Other non-current assets 138,253,316.00 138,253,316.00
Total non-current assets 29,768,346,486.68 29,674,504,156.43
Total assets 36,021,693,283.42 36,218,947,223.63
Current liabilities:
Short-term borrowings 1,351,119,861.12 1,619,804,888.91
Accounts payable 1,165,262,393.64 1,390,254,849.27
Advance receipts 361,888,036.98 602,364,396.64
Contract liabilities 3,694,027,281.44 4,066,579,965.73
Payroll payable 17,782,397.68 148,473,258.54
Tax payable 376,044,575.37 348,185,249.71
Other payables 2,288,090,193.05 1,862,720,723.00
Including: Interest payable - -
Dividend payable 608,684,665.60 -
Non-current liabilities due within one
1,767,945,699.70 179,140,794.24
year
Other current liabilities 3,579,574,210.39 3,514,924,439.85
66 / 213
Semi-annual Report for 2024
Total current liabilities 14,601,734,649.37 13,732,448,565.89
Non-current liabilities:
Long-term borrowings 907,780,063.03 862,798,863.03
Bonds payable 1,999,398,922.23 3,498,452,484.47
Lease liabilities 180,232,391.94 176,832,206.26
Deferred income 152,843,381.09 160,432,656.23
Deferred income tax liabilities 82,839,360.82 84,044,926.48
Total non-current liabilities 3,323,094,119.11 4,782,561,136.47
Total liabilities 17,924,828,768.48 18,515,009,702.36
Owners’ (or Shareholders’) Equity:
Paid-in capital (share capital) 5,484,334,176.00 5,484,334,176.00
Capital reserve 1,670,651,142.45 1,666,882,087.60
Less: treasury stocks 40,264,267.55 74,367,173.75
Other comprehensive income 24,877,490.32 23,394,697.32
Surplus reserve 1,879,651,431.02 1,879,651,431.02
General risk reserve 4,893,646.97 4,893,646.97
Undistributed profits 9,054,720,863.33 8,703,604,953.04
Total equity attributable to owners (shareholders)
of the parent company 18,078,864,482.54 17,688,393,818.20
Minority interest 18,000,032.40 15,543,703.07
Total owners’ equity (or
18,096,864,514.94 17,703,937,521.27
shareholders’ equity)
Total liabilities and owners’ equity (or
shareholders’ equity)
36,021,693,283.42 36,218,947,223.63
Legal representative of the Company: WANG Dong Principal in charge of accounting:
WANG Dong Head of accounting department: ZHAO Difang
67 / 213
Semi-annual Report for 2024
Parent Company Balance Sheet
June 30, 2024
Prepared by: Zhejiang China Commodities City Group Co., Ltd.
Unit: RMB
Item Notes June 30, 2024 December 31, 2023
Current assets:
Cash and cash equivalents 198,541,806.69 2,265,528,812.87
Accounts receivable 9,941,475.80 33,941,436.69
Prepayments 19,415,853.83 12,620,700.86
Other receivables 28,372,376.18 12,892,088.01
Inventories 566,410,051.20 5,231,744.36
Other current assets 4,705,066,612.71 3,970,347,163.03
Total current assets 5,527,748,176.41 6,300,561,945.82
Non-current assets:
Long-term receivables 31,864,236.48 31,863,990.46
Long-term equity investment 10,818,530,854.21 10,598,239,200.32
Other equity instruments investment 555,643,105.79 556,897,379.17
Other non-current financial assets 121,590,140.86 121,590,140.86
Investment properties 4,025,134,746.00 4,115,810,590.81
Fixed assets 3,841,463,013.65 3,974,413,890.47
Construction in progress 2,769,840,520.81 2,555,580,061.19
Right-of-use assets 99,627,222.47 103,038,184.75
Intangible assets 5,512,586,381.12 5,610,536,305.45
Long-term prepaid expenses 257,320,794.05 308,633,101.63
Deferred income tax assets 82,035,386.94 95,863,135.46
Total non-current assets 28,115,636,402.38 28,072,465,980.57
Total assets 33,643,384,578.79 34,373,027,926.39
Current liabilities:
Short-term borrowings 1,351,119,861.12 1,619,804,888.91
Accounts payable 701,281,788.73 990,280,605.47
Advance receipts 309,937,182.03 550,737,695.05
Contract liabilities 2,052,964,368.51 3,003,146,485.10
Payroll payable 16,467,499.02 105,072,078.58
Tax payable 354,108,444.85 311,510,488.15
Other payables 1,958,987,202.28 1,501,163,670.08
Including: Interest payable - -
Dividend payable 608,684,665.60 -
Non-current liabilities due within one
1,726,408,423.62 144,137,373.24
year
Other current liabilities 3,915,246,940.66 3,763,504,419.10
Total current liabilities 12,386,521,710.82 11,989,357,703.68
Non-current liabilities:
Long-term borrowings 529,680,000.00 510,290,000.00
Bonds payable 1,999,398,922.23 3,498,452,484.47
Lease liabilities 111,955,291.61 107,858,015.51
Deferred income 94,571,381.09 102,160,656.23
Deferred income tax liabilities 11,120,976.54 11,434,544.88
Total non-current liabilities 2,746,726,571.47 4,230,195,701.09
Total liabilities 15,133,248,282.29 16,219,553,404.77
Owners’ (or Shareholders’) Equity:
Paid-in capital (share capital) 5,484,334,176.00 5,484,334,176.00
Capital reserve 1,902,719,872.26 1,898,950,817.41
Less: treasury stocks 40,264,267.55 74,367,173.75
68 / 213
Semi-annual Report for 2024
Other comprehensive income 1,513,256.09 2,453,961.13
Surplus reserve 1,879,597,955.19 1,879,597,955.19
Undistributed profits 9,282,235,304.51 8,962,504,785.64
Total owners’ equity (or
18,510,136,296.50 18,153,474,521.62
shareholders’ equity)
Total liabilities and owners’ equity (or
shareholders’ equity)
33,643,384,578.79 34,373,027,926.39
Legal representative of the Company: WANG Dong Principal in charge of accounting:
WANG Dong Head of accounting department: ZHAO Difang
69 / 213
Semi-annual Report for 2024
Consolidated Income Statement
January-June 2024
Unit: RMB
Item Notes H1 2024 H1 2023
I. Gross revenue 6,765,934,137.13 5,160,991,043.25
Including: operating revenue 6,765,934,137.13 5,160,991,043.25
II. Gross cost 4,986,564,001.60 4,038,995,021.46
Including: Operating cost 4,527,895,348.12 3,582,510,450.35
Taxes and surcharges 82,993,119.34 46,693,684.31
Sales expenses 92,206,144.98 77,763,668.49
Administrative expenses 218,138,951.18 267,899,068.22
R&D expenses 11,759,206.64 10,524,249.20
Financial expenses 53,571,231.34 53,603,900.89
Including: interest expenses 120,646,122.86 125,445,414.65
Interest income 23,637,669.49 38,139,798.22
Add: other income 11,178,944.81 14,631,536.76
Investment income (loss is indicated
107,996,646.94 1,033,500,114.51
by “-”)
Including: income from investment in
associates and joint ventures
98,348,751.52 1,017,671,762.53
Changes in fair value (loss is indicated by “-”) -3,490,077.50 -7,181,931.08
Credit impairment loss (loss is
59,404.71 548,917.85
indicated by “-”)
Income from disposal of assets (loss is
84.36 165,883,894.78
indicated by “-”)
III. Operating profit (loss is indicated by “-”) 1,895,115,138.85 2,329,378,554.61
Add: income from non-operating activities 16,256,469.98 3,111,709.63
Less: expenses from non-operating
1,400,763.97 197,968.35
activities
IV. Profits before tax (loss is indicated by “-”) 1,909,970,844.86 2,332,292,295.89
Less: income tax 459,552,666.97 331,637,822.02
V. Net profits (net loss is indicated by “-”) 1,450,418,177.89 2,000,654,473.87
(I) Categorized by continuity of operation
Net profits from continuing operation (net loss is
indicated by “-”)
1,450,418,177.89 2,000,654,473.87
(II) Categorized by ownership
Net profits attributable to shareholders of the parent company
(net loss is indicated by “-”) 1,447,982,745.49 1,998,333,646.74
Minority interest(net loss is indicated by “-”) 2,435,432.40 2,320,827.13
VI. Other comprehensive income, net of tax 1,503,689.93 67,799,099.64
(I) Other comprehensive income attributable to owners of
the parent company, net of tax 1,482,793.00 67,916,223.03
1. Other comprehensive income that
-940,705.04 60,205,122.07
cannot be reclassified as profits or loss
(3) Changes in fair value of investments in
-940,705.04 60,205,122.07
other equity instruments
2 . Other comprehensive income that will
2,423,498.04 7,711,100.96
be reclassified as profits or loss
Other comprehensive income that can be
transferred into profit and loss under equity 217,103.05 -
method
(6) Difference arising from the translation of
2,206,394.99 7,711,100.96
foreign currency financial statements
(2) After -tax net of other comprehensive income
attributable to minority shareholders
20,896.93 -117,123.39
VII. Total comprehensive income 1,451,921,867.82 2,068,453,573.51
(I) Total comprehensive income attributable 1,449,465,538.49 2,066,249,869.77
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Semi-annual Report for 2024
to owners of the parent company
(II) Total comprehensive income
2,456,329.33 2,203,703.74
attributable to minority shareholders
VIII. Earnings per share:
(I) Basic earnings per share 0.27 0.37
(II) Diluted earnings per share 0.27 0.37
For business combinations 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 of the Company: WANG Dong Principal in charge of accounting:
WANG Dong Head of accounting department: ZHAO Difang
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Parent company income statement
January-June 2024
Unit: RMB
Item Notes H1 2024 H1 2023
I. Operating revenue 2,428,541,827.28 1,923,534,277.16
Less: Operating cost 490,180,610.81 525,153,455.43
Taxes and surcharges 64,145,878.71 29,462,268.30
Sales expenses 35,521,657.02 37,008,590.21
Administrative expenses 95,524,740.97 130,896,651.97
Financial expenses 59,531,140.85 65,718,043.69
Including: interest expenses 120,646,122.86 125,445,414.65
Interest income 15,619,670.82 30,709,123.09
Add: other income 7,944,882.13 12,319,396.64
Investment income (loss is indicated
117,453,264.95 1,044,304,324.89
by “-”)
Including: income from investment in
associates and joint ventures
114,978,264.95 1,040,883,650.78
Changes in fair value (loss is indicated by “-”) - -9,305,911.08
Credit impairment loss (loss is
24,247.94 1,193.47
indicated by “-”)
Income from disposal of assets (loss is
- 163,241,247.23
indicated by “-”)
II. Operating profits (loss is indicated by “-”) 1,809,060,193.94 2,345,855,518.71
Add: income from non-operating activities 13,204,046.33 1,090,764.24
Less: expenses from non-operating
183,540.75 53,023.89
activities
III. Profits before tax (loss is indicated by “-”) 1,822,080,699.52 2,346,893,259.06
Less: income tax 405,483,345.45 320,573,444.90
IV. Net profits (net loss is indicated by “-”) 1,416,597,354.07 2,026,319,814.16
(I) Categorized by continuity of operation(net loss is
indicated by “-”) 1,416,597,354.07 2,026,319,814.16
V. Other comprehensive income, net of tax -940,705.04 60,205,122.07
(I) Other comprehensive income that
-940,705.04 60,205,122.07
cannot be reclassified as profit or loss
3. Changes in fair value of investments
-940,705.04 60,205,122.07
in other equity instruments
VI. Total comprehensive income 1,415,656,649.03 2,086,524,936.23
Legal representative of the Company: WANG Dong Principal in charge of accounting:
WANG Dong Head of accounting department: ZHAO Difang
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Consolidated Cash Flow Statement
January-June 2024
Unit: RMB
Item Notes H1 2024 H1 2023
I. Cash flows generated from operating activities:
Cash received from sale of goods and
6,947,726,888.17 4,977,640,834.09
rendering of services
Cash received for taxes and surcharges
20,905,599.66 23,897,946.46
refunded
Other cash receipts relating to operating
127,309,299.43 187,951,543.68
activities
Sub-total of cash inflow from operating
7,095,941,787.26 5,189,490,324.23
activities
Cash paid for goods and services 5,840,206,516.42 4,090,931,069.08
Cash paid to and on behalf of employees 335,050,513.33 339,067,822.26
Payments of taxes 562,136,323.31 358,963,558.10
Other cash payments relating to
244,184,933.37 257,280,679.01
operating activities
Sub-total of cash outflow from
6,981,578,286.43 5,046,243,128.45
operating activities
Net cash flow from operating
114,363,500.83 143,247,195.78
activities
II. Cash flows generated from investment activities:
Cash received from recovery of
156,957,965.07 80,872,677.09
investment
Cash received from investment income 4,507,839.58 136,547,121.87
Net cash received from disposal of property, plant and
equipment, intangible assets and other long-term assets 109,332.43 208,129,700.93
Net cash received from disposal of
- 12,482,830.94
subsidiaries and other business units
Other cash receipts relating to investing
6,842,944.87 501,750,200.00
activities
Sub-total of cash inflow from investing
168,418,081.95 939,782,530.83
activities
Cash paid to acquire and construct fixed assets,
intangible assets and other long-term assets 1,388,085,871.65 1,433,747,137.68
Cash paid to acquire investments 104,177,300.00 21,106.36
Other cash paid related to investing
- 11,553,412.19
activities
Sub-total of cash outflow from investing
1,492,263,171.65 1,445,321,656.23
activities
Net cash flow from investing
-1,323,845,089.70 -505,539,125.40
activities
III. Cash flows generated from financing activities:
Cash received from borrowings 1,311,000,000.00 2,111,485,725.67
Cash received from bond issuance 1,998,540,487.07 2,998,270,624.05
Sub-total of cash inflow from financing
3,309,540,487.07 5,109,756,349.72
activities
Cash paid for debts repayment 3,422,600,000.00 4,072,600,000.00
Cash paid for distribution of dividends or
617,490,536.58 479,370,705.33
profits or payment of interest
Other cash paid related to financing
8,350,298.44 14,105,217.90
activities
Sub-total of cash outflow from financing
4,048,440,835.02 4,566,075,923.23
activities
Net cash flow from financing -738,900,347.95 543,680,426.49
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activities
IV. The impact of exchange rate fluctuations
1,305,573.28 2,390,230.36
on cash and cash equivalents
V. Net increase in cash and cash
-1,947,076,363.54 183,778,727.23
equivalents
Add: opening balance of cash and cash
2,910,178,939.19 1,981,200,941.64
equivalents
VI. Closing balance of cash and cash
963,102,575.65 2,164,979,668.87
equivalents
Legal representative of the Company: WANG Dong Principal in charge of accounting:
WANG Dong Head of accounting department: ZHAO Difang
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Parent Company Cash Flow Statement
January-June 2024
Unit: RMB
Item Notes H1 2024 H1 2023
I. Cash flows generated from operating activities:
Cash received from sale of goods and
1,569,836,230.15 1,098,788,301.57
rendering of services
Other cash receipts relating to operating
61,884,473.08 70,609,769.29
activities
Sub-total of cash inflow from operating
1,631,720,703.23 1,169,398,070.86
activities
Cash paid for goods and services 286,262,561.44 236,241,398.35
Cash paid to and on behalf of employees 155,179,719.30 174,499,662.84
Payments of taxes 446,412,904.13 293,658,960.27
Other cash payments relating to
71,737,707.82 126,086,015.59
operating activities
Sub-total of cash outflow from
959,592,892.69 830,486,037.05
operating activities
Net cash flow from operating activities 672,127,810.54 338,912,033.81
II. Cash flows generated from investment activities:
Cash received from recovery of
2,230,398,406.42 4,589,970,369.66
investment
Cash received from investment income 3,165,839.58 124,316,127.19
Net cash received from disposal of property, plant and
equipment, intangible assets and other long-term assets 54,659.85 205,308,403.69
Other cash receipts relating to investing
- 501,750,200.00
activities
Sub-total of cash inflow from investing
2,233,618,905.85 5,421,345,100.54
activities
Cash paid to acquire and construct fixed assets,
intangible assets and other long-term assets 1,115,427,273.06 908,361,246.65
Cash paid to acquire investments 3,086,430,000.00 5,053,269,903.20
Other cash paid related to investing
326,400.00 31,628,618.75
activities
Sub-total of cash outflow from investing
4,202,183,673.06 5,993,259,768.60
activities
Net cash flow from investing
-1,968,564,767.21 -571,914,668.06
activities
III. Cash flows generated from financing activities:
Cash received from borrowings 1,271,000,000.00 1,950,000,000.00
Cash received from bond issuance 1,998,540,487.07 2,998,270,624.05
Sub-total of cash inflow from financing
3,269,540,487.07 4,948,270,624.05
activities
Cash paid for debts repayment 3,422,600,000.00 4,072,600,000.00
Cash paid for distribution of dividends or
617,490,536.58 479,370,705.33
profits or payment of interest
Sub-total of cash outflow from financing
4,040,090,536.58 4,551,970,705.33
activities
Net cash flow from financing
-770,550,049.51 396,299,918.72
activities
IV. The impact of exchange rate fluctuations
- -
on cash and cash equivalents
V. Net increase in cash and cash
-2,066,987,006.18 163,297,284.47
equivalents
Add: opening balance of cash and cash
2,258,308,812.87 1,431,822,390.59
equivalents
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VI. Closing balance of cash and cash
191,321,806.69 1,595,119,675.06
equivalents
Legal representative of the Company: WANG Dong Principal in charge of accounting:
WANG Dong Head of accounting department: ZHAO Difang
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Semi-annual Report for 2024
Consolidated Statement of Changes in Owners' Equity
January-June 2024
Unit: RMB
H1 2024
Equity attributable to owners of the parent company
Item
Minority Total owners’
Other interest equity
Paid-in capital Less: treasury General risk
Capital reserve comprehensive Surplus reserve Undistributed profits Sub-total
(share capital) stocks reserve
income
I. Closing
balance of the 5,484,334,176.00 1,666,882,087.60 74,367,173.75 23,394,697.32 1,879,651,431.02 4,893,646.97 8,703,604,953.04 17,688,393,818.20 15,543,703.07 17,703,937,521.27
previous year
II. Opening
balance of the 5,484,334,176.00 1,666,882,087.60 74,367,173.75 23,394,697.32 1,879,651,431.02 4,893,646.97 8,703,604,953.04 17,688,393,818.20 15,543,703.07 17,703,937,521.27
current year
III. Change in
the current
period
- 3,769,054.85 -34,102,906.20 1,482,793.00 - - 351,115,910.29 390,470,664.34 2,456,329.33 392,926,993.67
(decrease is
indicated by
“-”)
(I) Total
comprehensive - - - 1,482,793.00 - - 1,447,982,745.49 1,449,465,538.49 2,456,329.33 1,451,921,867.82
income
(II)Owners’
contribution to
- 3,769,054.85 -34,102,906.20 - - - - 37,871,961.05 - 37,871,961.05
and reduction
in capital
3. Amount of
share-based
- 3,769,054.85 -34,102,906.20 - - - - 37,871,961.05 - 37,871,961.05
payment into
owner’s equity
(III) Profits
- - - - - - -1,096,866,835.20 -1,096,866,835.20 - -1,096,866,835.20
distribution
3．Distribution
to owners (or - - - - - - -1,096,866,835.20 -1,096,866,835.20 - -1,096,866,835.20
shareholders)
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Semi-annual Report for 2024
IV. Closing
balance of the 5,484,334,176.00 1,670,651,142.45 40,264,267.55 24,877,490.32 1,879,651,431.02 4,893,646.97 9,054,720,863.33 18,078,864,482.54 18,000,032.40 18,096,864,514.94
current period
H1 2023
Equity attributable to owners of the parent company
Item
Minority Total owners’
Other interest equity
Paid-in capital Less: treasury General risk Undistributed
Capital reserve comprehensive Surplus reserve Sub-total
(share capital) stocks reserve profits
income
I. Closing
balance of the 5,486,074,176.00 1,651,146,033.96 119,483,675.00 -24,008,473.60 1,616,083,136.73 1,038,991.13 6,651,440,591.35 15,262,290,780.57 18,805,602.08 15,281,096,382.65
previous year
II. Opening
balance of the 5,486,074,176.00 1,651,146,033.96 119,483,675.00 -24,008,473.60 1,616,083,136.73 1,038,991.13 6,651,440,591.35 15,262,290,780.57 18,805,602.08 15,281,096,382.65
current year
III. Change in
the current
period
- 8,933,604.45 -38,730,384.00 67,916,223.03 - - 1,641,738,825.30 1,757,319,036.78 -6,225,956.78 1,751,093,080.00
(decrease is
indicated by
“-”)
(I) Total
comprehensive - - - 67,916,223.03 - - 1,998,333,646.74 2,066,249,869.77 2,203,703.74 2,068,453,573.51
income
(II)Owners’
contribution to
- 8,933,604.45 -38,730,384.00 - - - - 47,663,988.45 - 47,663,988.45
and reduction
in capital
3. Amount of
share-based
- 8,933,604.45 - - - - - 8,933,604.45 - 8,933,604.45
payment into
owner’s equity
4．Others - - -38,730,384.00 - - - - 38,730,384.00 - 38,730,384.00
(III) Profits
- - - - - - -356,594,821.44 -356,594,821.44 - -356,594,821.44
distribution
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Semi-annual Report for 2024
3．Distribution
to owners (or - - - - - - -356,594,821.44 -356,594,821.44 - -356,594,821.44
shareholders)
(VI) Others - - - - - - - - -8,429,660.52 -8,429,660.52
IV. Closing
balance of the 5,486,074,176.00 1,660,079,638.41 80,753,291.00 43,907,749.43 1,616,083,136.73 1,038,991.13 8,293,179,416.65 17,019,609,817.35 12,579,645.30 17,032,189,462.65
current period
Legal representative of the Company: WANG Dong Principal in charge of accounting: WANG Dong Head of accounting department: ZHAO
Difang
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Semi-annual Report for 2024
Statement of Changes in the Parent Company Shareholders' Equity
January-June 2024
Unit: RMB
H1 2024
Other
Item Paid-in capital Less: treasury
Capital reserve comprehensiv Surplus reserve Undistributed profits Total owners’ equity
(share capital) stocks
e income
I. Closing balance of the previous year 5,484,334,176.00 1,898,950,817.41 74,367,173.75 2,453,961.13 1,879,597,955.19 8,962,504,785.64 18,153,474,521.62
II. Opening balance of the current year 5,484,334,176.00 1,898,950,817.41 74,367,173.75 2,453,961.13 1,879,597,955.19 8,962,504,785.64 18,153,474,521.62
III. Change in the current period (decrease is
indicated by “-”)
- 3,769,054.85 -34,102,906.20 -940,705.04 - 319,730,518.87 356,661,774.88
(I) Total comprehensive income - - - -940,705.04 - 1,416,597,354.07 1,415,656,649.03
(II)Owners’ contribution to and reduction in
- 3,769,054.85 -34,102,906.20 - - - 37,871,961.05
capital
3. Amount of share-based payment into
- 3,769,054.85 -34,102,906.20 - - - 37,871,961.05
owner’s equity
(III) Profits distribution - - - - - -1,096,866,835.20 -1,096,866,835.20
2. Distribution to owner (or shareholders) - - - - - -1,096,866,835.20 -1,096,866,835.20
IV. Closing balance of the current period 5,484,334,176.00 1,902,719,872.26 40,264,267.55 1,513,256.09 1,879,597,955.19 9,282,235,304.51 18,510,136,296.50
H1 2023
Other
Item Paid-in capital Less: treasury
Capital reserve comprehensive Surplus reserve Undistributed profits Total owners’ equity
(share capital) stocks
income
I. Closing balance of the previous year 5,486,074,176.00 1,885,778,197.50 119,483,675.00 -40,818,470.36 1,616,029,660.90 6,946,984,958.48 15,774,564,847.52
II. Opening balance of the current year 5,486,074,176.00 1,885,778,197.50 119,483,675.00 -40,818,470.36 1,616,029,660.90 6,946,984,958.48 15,774,564,847.52
III. Change in the current period (decrease is
indicated by “-”)
- -631,849,329.03 -38,730,384.00 60,205,122.07 - 1,669,724,992.72 1,136,811,169.76
(I) Total comprehensive income - - - 60,205,122.07 - 2,026,319,814.16 2,086,524,936.23
(II)Owners’ contribution to and reduction in
- 5,769,315.06 -38,730,384.00 - - - 44,499,699.06
capital
3. Amount of share-based payment into
- 5,769,315.06 - - - - 5,769,315.06
owner’s equity
4．Others - - -38,730,384.00 - - - 38,730,384.00
(III) Profits distribution - - - - - -356,594,821.44 -356,594,821.44
2. Distribution to owner (or shareholders) - - - - - -356,594,821.44 -356,594,821.44
(VI) Others - -637,618,644.09 - - - - -637,618,644.09
IV. Closing balance of the current period 5,486,074,176.00 1,253,928,868.47 80,753,291.00 19,386,651.71 1,616,029,660.90 8,616,709,951.20 16,911,376,017.28
80 / 213
Semi-annual Report for 2024
Legal representative of the Company: WANG Dong Principal in charge of accounting: WANG Dong Head of accounting department: ZHAO
Difang
81 / 213
Semi-annual Report for 2024
III. Company profile
1. Company overview
√Applicable □Not applicable
Zhejiang China Commodities City Group Co., Ltd. (the “Company”) is a company limited by
share and was incorporated on Dec 28, 1993 in Zhejiang province of the People’s Republic of
China. The RMB-denominated common A shares issued by the Company got listed on
Shanghai Stock Exchange on May 9, 2002. The Company's headquarters is located at No. 567
Yinhai Road, Futian Street, Yiwu City, Jinhua City, Zhejiang Province.
The Group’s main business activities: market development and operation and supporting
services, sales of commodities, provision of online trading platforms and services, development
and management of online trading market, etc., in the category of comprehensive services.
The parent company of the Group is Yiwu China Commodities City Holdings Limited
(hereinafter referred to as “CCCH”) and the final controller of the Group is the State-owned
Assets Supervision and Administration Office of the People’s Government of Yiwu.
IV. Basis for the preparation of consolidated financial statements
1. Basis of preparation
The financial statements of the Company were prepared on a going-concern basis.
The financial statements were prepared in accordance with the Accounting Standards for
Enterprises-Basic Standards and the specific accounting standards, application guidelines,
interpretations and other related regulations promulgated and amended thereafter (collectively
referred to as “Accounting Standards”). In addition, the financial statements also disclose
relevant financial information in accordance with the Rule No. 15 for the Preparation and
Disclosure of Information by Companies Offering Securities to the Public - General Provisions
for Financial Reporting.
2. Operation as a going concern
√Applicable □Not applicable
As of June 30, 2024, after deducting the Group’s contract liabilities and advance receipts,
which are to be recognized as revenue upon the provision of services or delivery of goods in the
future, as well as advances to suppliers for goods or services that the Group would receive in
the future, the Group's current liabilities exceeded its current assets by RMB 6,226,351,988.78.
The Board of Directors of the Company comprehensively considered the following sources of
funds available to the Group: 1. The Group’s expected net cash inflow from operating activities
within the next 12 months; 2. As of June 30, 2024, the Group’s unused bank credit line of was
RMB 4,657,661,136.97. The board of directors of the Company is convinced that the available
credit line can be re-approved when it expires based on past experience and good reputation; 3.
In view of the credit history of the Group, other available financing channels from banks and
other financial institutions; 4. , The Group's controlling shareholder CCCH has promised to
continue to provide sufficient financial support in the foreseeable future.
After evaluation, the Board of Directors of the Company believed that the Group had
sufficient resources to continue operating for a foreseeable future period of no less than 12
months from the end of this reporting period. Therefore, the Board of Directors of the Company
continued to prepare the Group's financial statements on a going concern basis.
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 estimates based on the actual
production and operation characteristics, mainly reflected in bad debt provisions for accounts
receivable, inventory valuation methods, provision for inventory depreciation, fixed asset
depreciation, intangible asset amortization, revenue recognition and measurement,
classification of investment properties and fixed assets, and the useful life and residual value of
fixed assets.
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Semi-annual Report for 2024
1. Statement on compliance with ASBE
The financial statements prepared by the Group comply with the requirements of the
Accounting Standards, and truly and completely reflect the Company’s financial conditions,
operating results, changes in shareholders’ equity, cash flows and other related information.
2. Accounting period
The Company’s accounting year is from Jan 1 to Dec 31 of each calendar year.
3. Business cycle
√Applicable □Not applicable
The business cycle of the Company is relatively short, and 12 months are used as the
standard for defining the liquidity of assets and liabilities.
4. Bookkeeping base currency
The Company’s functional currency is RMB.
The subsidiaries, joint ventures and associates of the Group determine their functional
currencies at their own discretion based on the main economic environments in their places of
businesses and convert all amounts into RMB while preparing financial statements.
5. Method for determining importance criteria and selection basis
√Applicable □Not applicable
Item Importance criteria
Important debt investment Amount greater than RMB 10 million
Important construction in progress Amount greater than RMB 10 million
Important minority shareholders’ The total assets are greater than RMB 100 million and
interest the minority shareholder's shareholding ratio is greater
than or equal to 5%
Important joint ventures or Investment targets that align with the Group's
associates development strategy
6. Accounting methods for business combinations under common control and
business combinations not under common control
√Applicable □Not applicable
Business combinations are divided into business combinations under common control and
business combinations not under common control.
Business combinations under common control
A business combination under common control is a business combination in which all of
the combining entities are ultimately controlled by the same party or parties both before and
after the combination, and that control is not transitory.
The assets and liabilities acquired by the receiving party in a business combination under
common control (including the goodwill formed through the acquisition of the tranferred party by
the ultimate controller) are accounted according to the book value thereof in the ultimate
controller’s financial statements on the combination date. The difference between the book
value of the net assets obtained by the merging party and the book value of the consideration
for the merger (or the total face value of the issued shares) should be adjusted to the capital
reserve (equity premium); if the capital reserve (equity premium) is not sufficient to offset, the
retained earnings should be adjusted .
Business combinations not under common control
A business combination not under common control is a business combination in which all
of the combining entities are not ultimately controlled by the same party or parties before and
after the combination.
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Semi-annual Report for 2024
The acquiree’s identifiable assets, liabilities and contingent liabilities obtained from a
business combination not under common control are measured at their fair values on the date
of acquisition. The difference between the merger cost and the fair value share of the
identifiable net assets obtained from the acquired party in the merger is recognized as goodwill
and subsequently measured at cost minus accumulated impairment losses. If the merger cost is
less than the fair value share of the identifiable net assets obtained from the acquired party in
the merger, the fair values of the identifiable assets, liabilities, and contingent liabilities obtained
from the acquired party, as well as the measurement of the merger cost, shall be reviewed. If
the merger cost is still less than the fair value share of the identifiable net assets obtained from
the acquired party in the merger, the difference shall be recognized in gains and losses for this
period.
7. Judgment criteria for control and preparation methods for consolidated financial
statements
√Applicable □Not applicable
The financial statements to be consolidated is determined on the basis of control, including
those of the Company and all of its subsidiaries. Subsidiaries refer to the entities controlled by
the Company (including the severable parts of enterprises and invested entities, and the
structured entities controlled by the Company). When and only when the investor possesses the
following three elements, the investor can control the investee: the investor has the power over
the investee; enjoy variable returns due to participation in related activities of the invested party;
ability to exercise power over the invested party to influence its return amount.
If the accounting policies or accounting periods adopted by the subsidiary and the
Company are inconsistent, necessary adjustments shall be made to the subsidiary's financial
statements in accordance with the Company's accounting policies and accounting periods
when preparing the consolidated financial statements. Assets, liabilities, equity, income,
expenses and cash flows generated from all deals between companies within the Group are
fully offset at the time of merger.
If the amount of loss for the current period attributable to the minority shareholders of a
subsidiary exceeds the minority shareholders’ share in the opening balance of shareholders’
equity in the subsidiary, the excess will still be recognized against minority interest.
For a subsidiary acquired through a business combination not under common 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 combination under common control, the
operating results and cash flows of merged party will be included in the consolidated financial
statements since the beginning of the period of the combination. In the preparation of
consolidated financial statements, adjustments will be made to the related items in its previous
financial statements as if the reporting entity formed after the merger has been existing as from
the ultimate controller starts to exercise control.
In case of any change to one or more elements of the control due to the changes in related
facts and circumstances, the Group will re-evaluate whether to control the investee.
Without loss of control, changes in minority shareholders' equity are regarded as equity
transactions.
8. Classification of joint arrangements and accounting treatment of joint operations
√Applicable □Not applicable
Joint arrangements are divided into joint operations and joint ventures. Joint operation
refers to a joint arrangement in which the parties thereto enjoy the assets relating to such
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.
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Each party to a joint arrangement recognizes the following items relating to its share in the
joint operation: assets held individually by it and assets held jointly based on its share; liabilities
assumed individually by it and liabilities assumed jointly based on its share; revenue from the
sale of its share in the output of the joint operation; revenue from the sale of the output of the
joint operation based on its share; expenses incurred individually by it and expenses incurred
by the joint operation based on its share.
9. Criteria of cash and cash equivalents
Cash refers to the Group’s cash on hand and deposits that can be used for payment at any
time; cash equivalent refers to the investment held by the Group with a short term, strong
liquidity, easy to convert into cash with a known amount, and with low risk of value changes.
10. Foreign currency business and foreign currency financial statement conversion
√Applicable □Not applicable
For foreign currency transactions, the Group will translate the foreign currency amounts
into its functional currency amounts.
In the initial recognition of a foreign currency transaction, the foreign currency amount is
translated to a functional currency amount according to the spot exchange rate on the date of
transaction. On the balance sheet date, the foreign currency monetary items are translated
according to the spot exchange rate on the balance sheet date. The translation difference
between settlement and monetary items is recognized in the profit or loss for the current period,
except for the difference arising from the special foreign currency borrowing relating to the
acquisition and construction of the assets qualified for capitalization, which will be treated based
on the principles for the capitalization of borrowing expenses. Foreign currency non-monetary
items measured at historical cost are still converted using the exchange rate used at initial
recognition, without changing their accounting base currency amount. The foreign currency
non-monetary items measured by fair value are translated according to the spot exchange rate
on the fair value determination date and the difference arising therefrom is recognized in the
profit or loss or other comprehensive income for the current period based on the nature of the
items.
The Group translates the functional currency of its foreign business into RMB while
preparing the financial statements. The assets and liabilities items in the balance sheet are
translated according to the spot exchange rate on the balance sheet date, the shareholders’
equity items are translated according to the spot exchange rate at the occurrence of the items
except for “undistributed profits”; revenue and expenses items in the income statement are
translated according to the average exchange rate during the period in which the transaction
happens (conversion shall be at the spot rate on the date of the transaction, unless exchange
rate fluctuations make such conversion inappropriate). The translation differences of foreign
currency statements arising from the above translations are recognized as other
comprehensive income. For the disposal of foreign business, other comprehensive income
relating to the foreign business is recognized in the profit or loss of the disposal for the current
period and is calculated pro rata for partial disposal.
Foreign currency cash flows and cash flows of overseas subsidiaries are converted using
the average exchange rate for the period in which the cash flows occur (unless exchange rate
fluctuations make the exchange rate inappropriate, the spot exchange rate on the day the cash
flows occur) is used for conversion. The amount of impact of the changes in exchange rate on
cash is separately stated in the cash flow statement as an adjustment item.
11. Financial instruments
√Applicable □Not applicable
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
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The Group recognizes a financial asset or financial liability at the time of becoming a party
to a financial instrument contract.
The Group will derecognize a financial asset (or a part of the financial asset or a part of a
group of similar financial assets), i.e. writing off the asset from its account and balance sheet, if:
(1) The right to receive cash flows from financial assets expires;
(2) The Company transferred the right to receive cash flows from financial assets, or
assumed the obligation to timely and fully pay the received cash flows to third parties under a
"pass through agreement"; and essentially transferred almost all the risks and rewards of
ownership of the financial asset, or relinquished control over the financial asset even though it
neither transferred nor retained almost all the risks and rewards of ownership.
If a financial liability has been fulfilled, revoked or expired, it will be derecognized. If an
existing financial liability is replaced by the same creditor with another financial liability under
substantially different terms or the terms of the existing liability are substantially modified in
whole, the existing liability will be derecognized and the new liability will be recognized, and the
difference will be recognized in the profit or loss for the current period.
For the transactions of financial assets in regular ways, the recognition and de-recognition
thereof will be conducted based on the accounting on the transaction date. Buying and selling
financial assets in a conventional manner refers to the purchase or sale of financial assets in
accordance with contractual provisions, and the terms of the contract stipulate that financial
assets are delivered according to the time schedule usually determined by regulations or
market practices. The transaction date refers to the date when the Group promises to buy or
sell the financial assets.
Classification and measurement of financial assets
The financial assets of the Group are classified at initial recognition based on the business
model of managing financial assets and the contractual cash flow characteristics of financial
assets as financial assets measured at amortized cost, financial assets measured at fair value
with changes recognized in other comprehensive income, and financial assets measured at fair
value with changes recognized in current period profit and loss. All affected related financial
assets will be reclassified only when the Group changes its business model for managing
financial assets.
If a financial asset is measured by fair value at initial recognition, but the accounts
receivable or notes receivable from the sale of goods or rendering of service do not include
significant financing components or the financing components with a term no longer than one
year are not considered, the initial measurement will be made based on the transaction price.
For the financial assets that are measured by fair value and of which the changes in fair
value are recognized in the profit or loss for the current period, the related transaction fees will
be directly recognized in the profit or loss for the current period; the related transaction fees of
other financial assets will be recognized in the initially recognized amounts thereof.
The subsequent measurement of financial assets depends on the classification thereof:
Investment in debt instruments measured by amortized cost
A financial asset is classified into those measured by amortized cost, if the business model
for the management of the asset is for the purpose of collecting contractual cash flow; and the
terms of the contract of the asset stipulate that the cash flow generated on the specific date is
only the repayment of principal and the payment of interest on the outstanding principal. The
interest income of such financial assets is recognized with the effective interest method, and the
gains or losses from the de-recognition, modification or impairment thereof are all recognized in
the profit or loss for the current period.
Investment in the equity instruments that are measured by fair value and of which
the changes in fair value are recognized in other comprehensive income
The Group has irrevocably chosen to designate some non-trading equity instrument
investments as the financial assets that are measured by fair value and of which the changes in
fair value are recognized in other comprehensive income. Only the related dividend income
(except for the dividend income expressly acting as a recovery of investment cost) is
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
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recognized in other comprehensive income will be moved out of other comprehensive income
and recognized in retained earnings.
Financial assets that are measured by fair value and of which the changes in fair
value are recognized in the profit or loss for the current period
The financial assets other than the above financial assets measured by amortized cost and
the above financial assets that are measured by fair value and of which the changes in fair
value are recognized in other comprehensive income are classified as the financial assets that
are measured by fair value and of which the changes in fair value are recognized in the profit or
loss for the current period. Those financial assets are subsequently measured by fair value and
all changes in the fair value thereof are recognized in the profit or loss for the current period.
Classification and measurement of financial liabilities
The financial liabilities of the Group are classified at initial recognition as financial liabilities
measured at fair value through profit or loss, and financial liabilities measured at amortized cost.
For financial liabilities measured at fair value through profit or loss, the relevant transaction
costs are directly recognized in profit or loss, while the relevant transaction costs of financial
liabilities measured at amortized cost are recognized in their initial recognition amount.
The subsequent measurement of financial liabilities depends on the classification thereof:
Financial liabilities measured at fair value through profit or loss
The financial liabilities that are measured by fair value and of which the changes in fair
value are recognized in the profit or loss for the current period include financial liabilities held for
trading (including the derivative instruments as financial liabilities) and the liabilities that are
designated at initial recognition as the financial liabilities that are measured by fair value and of
which the changes in fair value are recognized in the profit or loss for the current period. The
financial liabilities held for trading (including the derivative instruments as financial liabilities) are
subsequently measured by fair value and all changes in the fair value are recognized in the
profit or loss for the current period.
Financial assets measured at amortized cost
Those financial liabilities are subsequently measured by amortized cost with the effective
interest method.
Impairment of financial instruments
The Group has treated and recognized the impairment of the financial assets measured by
amortized cost based on the expected credit loss.
For receivables that do not contain significant financing components, the Group measures
the loss provision based on the amount of expected credit loss equivalent to the entire duration
under a simplified measurement method,
For the financial assets not measured with the simplified method, the Group evaluates on
each balance sheet date whether their credit risks have increased significantly since the initial
recognition. If the credit risk of a financial asset has not increased significantly since the initial
recognition, the asset is in the first stage and the Group will make provision for loss based on
the amount of expected credit loss within the coming 12 months and calculate interest income
based on the book balance and effective interest rate; if the credit risk has increased
significantly since the initial recognition, but credit has not been impaired, the asset is in the
second stage and the Group will make provision for loss equivalent to the amount of expected
credit loss during the entire term and calculate interest income based on the book balance and
effective interest rate; if credit has been impaired after the initial recognition, the asset is in the
third stage and the Group will make provision for loss equivalent to the amount of expected
credit loss during the entire term and calculate interest income based on the amortized cost and
effective interest rate.
The Group evaluates the expected credit losses of financial instruments on an individual
and grouping basis. The Group considers the credit risk characteristics of different customers,
evaluates the expected credit losses of accounts receivable based on grouping by aging, and
determines the aging based on the invoicing date. Except for the aforementioned financial
instruments that are evaluated for expected credit losses on a grouping basis, the Group
assesses their expected credit losses on an individual basis.
Please refer to Note XII. 1. Risk of Financial Instruments for the disclosure of the criteria for
significantly increasing credit risk and the definition of credit impairment assets that have
occurred by the Group.
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The factors reflected in the Group's method of measuring expected credit losses of
financial instruments include: unbiased probability-weighted average amount determined by
evaluating a series of possible outcomes; time value of money; no unnecessary additional cost
or effort on the balance sheet date Reasonable and evidence-based information that is readily
available about past events, current conditions and forecasts of future economic conditions.
When the Group no longer reasonably expects that it can recover the contractual cash flow
of a financial asset in whole or in part, it will directly write down the book balance of the asset.
12. Notes receivable
□ Applicable √Not applicable
13. accounts receivable
√Applicable □Not applicable
Grouping classification and determination basis of provision for bad debt based on
grouping of credit risk characteristics
√Applicable □Not applicable
Please refer to Note V - Important Accounting Policies and Accounting Estimates - 11.
Financial Instruments.
Account aging calculation method in which the credit risk characteristic grouping is
comfirmed by account aging
√Applicable □Not applicable
Please refer to Note V - Important Accounting Policies and Accounting Estimates - 11.
Financial Instruments.
Determination criteria for provision of bad debts on an individual basis
√Applicable □Not applicable
Please refer to Note V - Important Accounting Policies and Accounting Estimates - 11.
Financial Instruments.
14. Receivables Financing
□ Applicable √Not applicable
15. Other receivables
√Applicable □Not applicable
Grouping classification and determination basis of provision for bad debt based on
grouping of credit risk characteristics
√Applicable □Not applicable
Please refer to Note V - Important Accounting Policies and Accounting Estimates - 11.
Financial Instruments.
Account aging calculation method in which the credit risk characteristic grouping is
comfirmed by account aging
√Applicable □Not applicable
Please refer to Note V - Important Accounting Policies and Accounting Estimates - 11.
Financial Instruments.
Determination criteria for provision of bad debts on an individual basis
√Applicable □Not applicable
Please refer to Note V - Important Accounting Policies and Accounting Estimates - 11.
Financial Instruments.
16. Inventories
√Applicable □Not applicable
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Inventories category, valuation method for issuance, inventory system, amortization method for
low-value consumables and packaging materials
√Applicable □Not applicable
Inventories includes raw materials, work-in-progress materials, finished goods, real estate
development costs and real estate development products.
Inventories is initially measured by cost. The costs of inventory except development costs
and development products include the procurement cost, processing cost and other costs. The
actual costs of items out of inventory are determined with the weighted average method.
Work-in-progress materials include low-value consumables and packages, which are amortized
with the one-off amortization method.
Development costs refer to the properties that have not been completed and are developed
for the purpose of being sold. Development products refer to the properties that have been
completed and are ready for sale. The actual costs of real estate development costs and
development products include the land acquisition cost, expenditures on construction and
installation works, capitalized interest and other direct and indirect development expenses. The
use right of the land for development purpose at the development of a project is amortized and
recognized as the development cost of the project based on the site area of the development
product, and the development cost will be changed over to development product after being
completed.
If the public auxiliary facilities are completed earlier than the related development product,
the facilities will be allocated to and recognized in the development cost of related development
project based on the floor space of the project after final accounting of the facilities upon
completion; if the public auxiliary facilities are completed later than the related development
product, they will be recognized in the development cost of related development project based
on the predicted cost of the public auxiliary facilities.
Hotel, catering and fresh goods inventories are subject to onsite inventory, while other
inventories are subject to perpetual inventory.
Recognition criteria and provision methods for provision for inventory depreciation
√Applicable □Not applicable
On the balance sheet date, inventory is measured by cost and net realizable value,
whichever is lower. If the cost is higher than the net realizable value, provision will be made for
inventory depreciation, which will be recognized in the profit or loss for the current period. Net
realizable value is the estimated selling price of inventory less the cost estimated to occur as of
completion, estimated sales expenses and related taxes. In principle, provisions for inventory
depreciation shall be made for inventory items individually. For the inventory with a large
quantity and a low unit price, inventory depreciation provision will be made based on the Groups
of items.
Grouping classification and determination basis for provision for inventory depreciation
on a grouping basis, and determination basis for net realizable value of inventory of
different categories
□ Applicable √Not applicable
Calculation methods and determination basis for the net realizable value of each
inventory aging grouping for which the net realizable value is comfirmed by inventory
aging
□ Applicable √Not applicable
17. Contract assets
□ Applicable √Not applicable
18. Non-current assets or disposal groups held for sale
□ Applicable √Not applicable
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Recognition criteria and accounting treatment methods for non-current assets or disposal
groups classified as held for sale
□ Applicable √Not applicable
Recognition criteria and reporting methods for termination of operations
□ Applicable √Not applicable
19. Long-term equity investment
√Applicable □Not applicable
Long-term equity investment includes equity investment in subsidiaries, joint ventures and
associates.
Long-term equity investment is initially measured by the initial investment cost at the time
of being acquired. The initial investment cost for long-term equity investments obtained through
business combinations under common control shall be the share of the book value of the
owner's equity of the transferred party obtained on the combinaton date in the consolidated
financial statements of the ultimate controlling party; The difference between the initial
investment cost and the book value of the merger consideration shall be adjusted to the capital
reserve (if it is not sufficient to offset, it shall be offset against retained earnings). Long term
equity investments obtained through business combinations not under common control are
initially invested at the cost of the merger (if a business combination not under common control
is achieved through multiple transactions in steps, the initial investment cost is the sum of the
book value of the equity investments held by the acquired party before the purchase date and
the newly added investment cost on the purchase date). The initial investment costs of the
long-term equity 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
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relating to the arrangement shall be made only after the parties sharing the control reach an
agreement. Significant influence refers to the power over the decision-making on the financial
affairs and business policies of the investee, but the investor does not have control or joint
control with others over the formulation of those policies.
In the equity method, if the initial investment cost of long-term equity investment is higher
than the share enjoyed by the Group in the fair value of the investee’s identifiable net assets at
investment, the excess will be recognized in the initial investment cost of the long-term equity
investment; if the initial investment cost of long-term equity investment is lower than the share
enjoyed by the Group in the fair value of the investee’s identifiable net assets at investment, the
difference will be recognized in the profit or loss for the current period and the cost of the
long-term equity investment will be adjusted simultaneously.
In the equity method, after long-term equity investment is acquired, the investment gains or
losses and other comprehensive income shall be recognized and the book value of the
long-term equity investment shall be adjusted based on the share in the net gains or losses and
other comprehensive income realized by the investees to be enjoyed or assumed. The share in
the investee’s net gains or losses to be enjoyed shall be determined based on the fair value of
the investee’ s identifiable assets at the acquisition of investment, according to the Group’s
accounting policies and accounting periods and after net profits of the investee are adjusted
with the portion of gains or losses from the internal transactions with its associates and joint
ventures that is attributable to the investor based on the share to be enjoyed by it (but if the loss
from internal transactions falls in the assets impairment loss, it shall be recognized in full) offset,
except for the invested and sold assets that constitute businesses. The book value of long-term
equity investment shall be reduced according to the share to be enjoyed by it in the profits or
cash dividend declared by the investees to be distributed. For an investee’s net losses
recognized by the Group, the book value of the long-term equity investment and other long-term
equity that substantially constitute net investment in the investee shall be written down to zero
at maximum, except for the extra losses for which the Group is liable. For the investee’s other
changes in shareholders’ equity other than net gains or losses, other comprehensive income
and profit distribution, the book value of the long-term equity investment will be adjusted and the
changes will be recognized in the shareholders’ equity.
20. Investment properties
(1).With the cost measurement model
Depreciation or amortization method
Investment properties refer to properties held for the purpose of earning rent or capital
appreciation, or both.
Investment real estate is initially measured at cost. The subsequent expenses relating to
investment properties will be recognized in the cost of the investment properties if the economic
benefits relating to the asset are very likely to flow in and the cost thereof can be measured
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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 investment properties with the cost model. The
depreciation/amortization of investment properties is calculated on a straight line basis. The
service life, estimated net residual value and annual depreciation rate of investment properties
are as follows:
Category Service life Estimated net Annual depreciation
residual value rate
Buildings and 20-30 years 4% 3.2%-4.8%
structures
Land use right 40-70 years - 1.4%-2.5%
21. Fixed assets
(1). Confirmation conditions
√Applicable □Not applicable
A fixed asset will be recognized only if the economic benefits relating thereto are very likely
to flow into the Group and its cost can be measured reliably. If meeting the above recognition
requirement, the subsequent expenses relating to a fixed asset will be recognized in the cost of
the fixed asset, and the book value of the replaced part will be deleted; otherwise, the
subsequent expenses will be recognized in the profit or loss for the current period at the time of
being incurred.
Fixed assets are initially measured by cost. The costs of purchasing a fixed asset include
the purchase price, related taxes and other expenses that are incurred before the fixed asset is
made to the predetermined ready-for-use status and are directly attributable to the asset.
The Group reviews and makes adjustment to, if necessary, the service life, estimated
residual value and depreciation method of its fixed assets at least at the end of each year.
(2). Depreciation method
√Applicable □Not applicable
Depreciation
Depreciation Residual value Annual
Category period (number
methods rate depreciation rate
of years)
Buildings and Straight-line 10-40 4% 2.4%-9.6%
structures method
General Straight-line 5-10 4% 9.6%-19.2%
equipment method
Transportation Straight-line 6 4% 16.0%
equipment method
22. Construction in progress
√Applicable □Not applicable
The cost of construction in progress is determined based on the actual expenses, including
the necessary expenses on the works incurred during the construction, the borrowing costs
incurred before the works reach the predetermined ready-for-use status that shall be capitalized
and other related expenses.
The construction in progress is transferred to fixed assets, investment properties and
long-term deferred expenses when it reaches the expected serviceable condition. The
standards are as follows:
Standards for carrying forward fixed assets
Buildings and structures Actual start of use
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Machinery equipment Completion of installation and commissioning
Transportation equipment Obtaining a transportation vehicle driving
license
Other equipment Actual start of use or completion of
installation and debugging
23. Borrowing costs
√Applicable □Not applicable
Borrowing costs that are directly attributable to the acquisition, construction or production
of the assets qualified for capitalization shall be capitalized, and other borrowing costs shall be
recognized in the profit or loss for the current period.
When capital expenditures and borrowing costs have already occurred, and the necessary
acquisition or production activities to bring the asset to its intended usable or saleable state
have begun, borrowing costs begin to be capitalized.
The borrowing costs for the assets qualified for capitalization shall cease being capitalized
when the assets reach the predetermined ready-for-use or sale status after the acquisition,
construction or production. The borrowing costs incurred subsequently will be recognized in the
profit or loss for the current period.
During the capitalization period, the capitalization amount of interest for each accounting
period shall be determined according to the following method: specialized loans shall be
determined based on the actual interest expenses incurred in this period, minus temporary
deposit interest income or investment income; The general borrowing used is calculated and
determined based on the weighted average of the accumulated asset expenses exceeding the
special borrowing portion multiplied by the weighted average interest rate of the general
borrowing used.
If assets that meet the capitalization criteria experience abnormal interruptions during the
acquisition, construction, or production process, except for the necessary procedures to reach
the predetermined usable or saleable state, and the interruption period lasts for more than 3
consecutive months, the capitalization of borrowing costs shall 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.
24. Biological assets
□ Applicable √Not applicable
25. Oil and gas assets
□ Applicable √Not applicable
26. Intangible assets
(1). Service life and its determination basis, estimated situation, amortization method or
review procedure
√Applicable □Not applicable
Goodwill is an intangible asset with an uncertain useful life. Such intangible assets are not
amortized, and impairment testing is conducted annually regardless of whether there are signs
of impairment; During each accounting period, its useful life is reviewed, and if there is evidence
that its useful life is limited, accounting treatment is carried out according to the policy of
intangible assets with limited useful life.
The remaining intangible assets are amortized using the straight-line method over their
useful lives, with the following useful lives:
Category Service life Determination basis
Land use right 40-50 years Term of land use rights
Software and software 10 years Which is shorter between the
copyright contract period and the
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expected service life
(2). The scope of R&D expenditure collection and related accounting treatment methods
√Applicable □Not applicable
The Group divides expenditures for internal R & D projects into research expenditures and
development expenditures. Research expenses are recognized in the profit or loss for the
current period at the time of being incurred. Development expenditures can be capitalized only
when all of the following conditions are met at the same time, that is, it is technically feasible to
complete the intangible asset to make them usable or saleable; there is an intention to complete
the intangible asset and use or sell it; the way for intangible assets to generate economic
benefits, including the ability to prove that there are markets for the products generated by the
intangible assets or the intangible assets themselves. Intangible assets that will be used
internally can prove their usefulness; there are sufficient technology, financial resources and
other resource supports to complete the development of the intangible asset and ability to use
or sell the intangible asset; the expenditure attributable to the development of such intangible
asset can be reliably measured. Development expenditures that do not satisfy the above
conditions are included in the current profits and losses when incurred.
27. Impairment of long-term assets
√Applicable □Not applicable
The impairment of assets other than inventory, deferred income tax assets, and financial
assets is determined using the following method: On the balance sheet date, it is determined
whether there are signs of possible impairment of assets. If there are signs of impairment, the
Group will estimate their recoverable amount and conduct impairment testing; For goodwill
formed by business combinations, intangible assets with uncertain useful lives, and intangible
assets that have not yet reached a usable state, regardless of whether there are signs of
impairment, impairment testing shall be conducted at least at the end of each year.
The recoverable value of an asset is determined based on the fair value of the asset less
the disposal expenses or the present value of the expected future cash flows of the asset,
whichever is higher. The Group estimates the recoverable value of each asset. For an asset
whose recoverable value is hard to be estimated, the Group estimates the recoverable value of
the assets group which the asset belongs to. An assets group is identified based on whether the
main cash inflows from the Group are independent from the cash inflows from other assets or
assets groups.
When the recoverable value of an asset or assets group is lower than its book value, the
Group will write down its book value to the recoverable value and the amount written down will
be recognized in the profit or loss for the current period; meanwhile, it will make provision for the
impairment thereof.
As for the impairment test of goodwill, the book value of goodwill shall be allocated to the
relevant asset groups or groups of asset groups in a reasonable manner from the date of
acquisition. The relevant asset groups or groups of asset groups refer to asset groups or groups
of asset groups that can benefit from the synergistic effects of business combinations, and are
not larger than the operating segments determined by the Group.
Compare the book value and recoverable amount of asset groups or groups of asset
groups that contain goodwill. If the recoverable amount is lower than the book value, the
impairment loss amount is first offset against the book value of goodwill allocated to the asset
group or group of asset groups. Then, based on the proportion of the book value of other assets
in the asset group or group of asset groups except for goodwill, the book value of other assets is
proportionally offset.
The above assets impairment loss will not be reversed during the subsequent accounting
periods.
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28. Long-term deferred expenses
√Applicable □Not applicable
Long-term prepaid expenses are amortized with the straight-line method and the
amortization periods are as follows:
Category Amortization period
Architectural ornaments of buildings 3-5 years
Advertising facilities 3-5 years
29. Contract liabilities
√Applicable □Not applicable
A contractual liability refers to an obligation to transfer goods or services to a customer for
the consideration received or receivable from the customer, such as the amount received by the
enterprise before the transfer of committed goods or services.
30. Employee compensation
(1). Accounting treatment methods for short-term compensation
√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 method for 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 methods for termination benefits
√Applicable □Not applicable
Where the Group provides severance benefits to its employees, the employee
compensation liabilities arising from the severance benefits will be recognized, and the amount
will be recognized in the profit or loss for the current period on the earlier date below: the date
when the Group cannot unilaterally withdraw the severance benefits provided as a result of the
employment termination plan or downsizing proposal; or the date when the Group recognizes
the costs or expenses relating to the reorganization involving the payment of severance
benefits.
(4). Accounting treatment methods for other long-term employee benefits
□ Applicable √Not applicable
31. Estimated liabilities
□ Applicable √Not applicable
32. Share-based payment
√Applicable □Not applicable
Share-based payment is divided into equity-settled share-based payment and cash-settled
share-based payment. An equity-settled share-based payment refers to a deal in which the
Group uses shares or other equity instruments as the consideration for settlement to obtain
services.
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The equity-settled share-based payment in exchange for services provided by employees
shall be measured at the fair value of the equity instruments granted to employees. If it can be
exercised immediately after the grant, it shall be included in the relevant costs or expenses at
fair value on the grant date, and the capital reserve shall be increased accordingly; if it cannot
be exercised until the service within the waiting period has been completed or the specified
performance conditions have been satisfied on each balance sheet date during the waiting
period, the Group will, based on the best estimate of the number of exercisable equity
instruments, include the services acquired in the current period, as relevant costs or expenses
based on the fair value on the grant date, and increase the capital reserve accordingly . The fair
value of equity instruments is determined using market quotations, as detailed in Note XIII. 2.
If the equity-settled share payment is canceled, it will be treated as an accelerated exercise
on the cancellation day, and the unrecognized amount shall be recognized immediately. If an
employee or other party has option to satisfy the non-exercising conditions but fails to satisfy
within the waiting period, it shall be treated as cancellation of equity-settled share-based
payment. However, if a new equity instrument is granted and if it is determined that the new
equity instrument granted is used to replace the canceled equity instrument on the grant date of
the new equity instrument, the replacement equity instruments granted in the same way shall be
treated in the same way as that for the modification of the terms and conditions for the original
equity instrument.
33. Preferred stocks, perpetual bonds, and other financial instruments
□ Applicable √Not applicable
34. Revenue
(1). Disclosure of accounting policies adopted for revenue recognition and
measurement by business type
√Applicable □Not applicable
The Group recognizes incomes when it has fulfilled its performance obligations in the
contract, that is, the customer has acquired the control over the relevant goods or services. The
acquisition of the control over related goods or services means the ability to control the use of
the goods or the provision of the service and obtain almost all of the economic benefits from
them.
Commodity sales contracts
Sales contracts between the Group and customers typically include commitments to
transfer goods, which may vary depending on the customer's agreement. As customers are
able to benefit separately from the aforementioned goods or services or use them together with
other readily available resources, and there is no significant integration, modification,
customization, or high correlation between the aforementioned goods or services, the Group
considers them as clearly distinguishable goods and constitutes separate performance
obligations.
On the basis of comprehensive consideration of the following factors, the Group recognizes
revenue at the time when the customer obtains control over the relevant goods: the current right
to receive payment for the goods, the transfer of the main risks and rewards of ownership of the
goods, the transfer of legal ownership of the goods, the transfer of physical assets of the goods,
and the customer's acceptance of the goods.
Service contracts
The service contracts between the Group and customers usually include performance
obligations such as providing the use of shops in Yiwu Market and the supporting services for
operation , providing hotel accommodation and catering services, providing paid use services
for funds to external parties of the Group, and providing collection and payment services.
The use of shops in Yiwu Market 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
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progress of the provision of the use of shops in Yiwu Market 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). Adopting different business models for similar businesses involves different
revenue recognition methods and measurement methods
□ Applicable √Not applicable
35. Contract cost
√Applicable □Not applicable
The Group's assets related to contract costs include contract acquisition costs and contract
performance costs. According to their liquidity, they are presented in inventory, other current
assets and other non-current assets respectively.
If the incremental cost incurred by the Group to acquire a contract is expected to be
recoverable, it is recognized as an asset as the contract acquisition cost, unless the
amortization period of the asset does not exceed one year.
If the cost incurred by the Group for the performance of the contract does not apply to the
scope of the relevant standards such as inventory, fixed assets or intangible assets, and meets
the following conditions at the same time, it is recognized as an asset as the cost of contract
performance:
(1) This cost is directly related to a current or expected contract, including direct labor,
direct materials, manufacturing expenses (or similar expenses), costs clearly borne by the
customer, and other costs incurred solely due to the contract;
(2) This cost increases the resources that the enterprise will use in the future to fulfill its
contractual obligations;
(3) This cost is expected to be recovered.
The Group amortizes the assets related to contract costs on the same basis as the revenue
recognition related to the assets, and includes them in the current profit and loss.
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For assets related to contract costs, if the book value is higher than the difference between
the following two items, the Group will make provision for impairment for the excess part and
recognize it as asset impairment loss:
(1) The expected remaining consideration that the enterprise can obtain from the transfer
of goods or services related to the asset;
(2) The estimated cost to be incurred for the transfer of the relevant goods or services.
36. Government grants
√Applicable □Not applicable
A government grant is recognized when it can meet the requirements and can be received.
If a government grant falls in monetary assets, it will be measured by the amount received or
receivable. If a government grant does not fall in monetary assets, it will be measured by fair
value. If the fair value of a grant cannot be determined reliably, it will be measured by its
nominal amount.
A government grant prescribed by government documents to be used to acquire or
construct or otherwise form long-term assets will be deemed as an asset-related government
grant; if no government documents have express provisions, the grants that are used to acquire
or construct or otherwise form long-term assets will be deemed as asset-related government
grants and others as income-related government grants.
The Group recognizes government subsidies received using the total amount method.
Government subsidies related to income, used to compensate for related costs or losses in
future periods, are recognized as deferred income and are recognized in this period's profit or
loss or offset against related costs during the period of recognition of related costs or losses;
For compensating for related costs or losses that have already occurred, they are directly
recognized in this period's profit and loss or offset against related costs. The Group recognizes
government subsidies received using the total amount method.
The asset-related government grants shall be used to offset the book value of related
assets; or recognized as deferred income, and included in profit and loss in stages under a
reasonable and systematic method during the useful life of the related assets (but government
grants measured at a nominal amount shall be directly included in the current profit and loss); if
the relevant asset is sold, transferred, scrapped or damaged before the end of its useful life, the
balance of the undistributed deferred income shall be transferred to the current profit and loss
when the asset is disposal.
37. Deferred income tax assets/ deferred income tax liabilities
√Applicable □Not applicable
The Group recognizes deferred income tax with the balance sheet liability method based
on the temporary difference between the book value of assets and liabilities on the balance
sheet date and the tax base and that between the book value of the items that have not been
recognized as assets and liabilities but whose tax base can be determined according to the tax
law and the tax base thereof.
All taxable temporary differences will be recognized as deferred income tax liabilities,
unless:
(1) Taxable temporary differences arise in the following transactions: initial recognition of
goodwill, or initial recognition of assets or liabilities arising from individual transactions with the
following characteristics: the transaction is not a business combination, the transaction does not
affect accounting profits or taxable income or deductible losses at the time of occurrence, and
the initially recognized assets and liabilities do not result in equal amounts of taxable temporary
differences and deductible temporary differences;
(2) For taxable temporary differences related to investments in subsidiaries, joint ventures,
and associates, the timing of the reversal of such temporary differences can be controlled and it
is likely that they will not be reversed in the foreseeable future.
For the deductible temporary differences and the deductible losses and tax deductions that
can be carried forward to the subsequent years, the Group recognizes the deferred income tax
assets arising therefrom within the limit of the future taxable income that is very likely to be
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obtained and used to be offset against the deductible temporary differences, deductible losses
and tax deductions, unless:
(1) Deductible temporary differences arise in the following individual transactions: the
transaction is not a business combination, the transaction does not affect accounting profits or
taxable income or deductible losses at the time of occurrence, and the initially recognized
assets and liabilities do not result in an equal amount of taxable temporary differences and
deductible temporary differences;
(2) For deductible temporary differences related to investments in subsidiaries, joint
ventures, and associates, such temporary differences are likely to be reversed in the
foreseeable future and are likely to receive taxable income used to offset such temporary
differences in the future.
The Group measures, on the balance sheet date, the deferred income tax assets and
liabilities based on the applicable tax rate for the period when the assets are expected to be
recovered or the liabilities are expected to be paid off, in accordance with the tax law, which will
also reflect the impact of the way of the expected recovery of assets or repayment of liabilities
on the income tax on the balance sheet date.
The Group reviews the book value of deferred income tax assets on the balance sheet date.
If it is very likely to be unable to acquire adequate taxable income to be offset against the
benefits of deferred income tax assets in the future, the book value of deferred income tax
assets will be written down. On the balance sheet date, the Group re-evaluates the
unrecognized deferred income tax assets and recognizes the same to the extent that it is very
likely to acquire adequate taxable income to reverse all or part of the deferred income tax
assets.
If all the following requirements are met, deferred income tax assets and liabilities will be
presented in net amount after offsetting: the Group has the legal right to settle the current
income tax assets and liabilities in net amount; the deferred income tax assets and liabilities are
related to the income tax levied by an identical tax authority on an identical taxpayer, or are
related to the income tax levied by an identical tax authority on different taxpayers, but during
each important period when the deferred income tax assets and liabilities are reversed, the
involved taxpayers intend to settle the current income tax assets and liabilities in net amount or
acquire assets or pay off debts simultaneously.
38. Lease
√Applicable □Not applicable
Judgment basis and accounting treatment methods for simplifying short-term leases and
low-value asset leases as a lessee
√Applicable □Not applicable
The Group recognizes leases with a lease term not exceeding 12 months and excluding
purchase options as short-term leases on the commencement date of the lease term; Leases
with lower value when a single leased asset is considered a brand new asset are recognized as
low-value asset leases. The Group chooses not to recognize right-of-use assets and lease
liabilities for short-term leases and leases of low-value assets. In each period of the lease term,
it is included in the relevant asset cost or current profit and loss on a straight-line basis.
Classification criteria and accounting treatment methods for leasing as a lessor
√Applicable □Not applicable
The lease that transfers virtually all the risks and rewards related to the ownership of the
leased asset on the lease commencement date is a finance lease, and other leases are
operating leases.
Rental income from operating leases is recognised in profit or loss on a straight-line basis
over each period of the lease term, and variable lease payments not included in lease receipts
are included in profit or loss for the current period when actually incurred. The capitalized initial
direct expenses shall be amortized on the same basis recognized with the rental income during
the lease period, and shall be included in the current profit and loss in installments.
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39. Other important accounting policies and accounting estimates
√Applicable □Not applicable
Measurement of fair value
The Group measures the fair values of equity instruments investments on each balance
sheet date. Fair value refers to the price received from the sale of an asset or paid for the
transfer of a liability by a market player in the orderly transactions on the measurement date.
For the assets and liabilities which are measured or disclosed by fair value in the financial
statements, the levels of fair value are determined based on the lowest-level input of important
significance for the overall measurement of fair values: Level 1 input is the unadjusted offer
price for an identical asset or liability that can be obtained in an active market on the
measurement date; Level 2 inputs are the inputs that are directly or indirectly observable for
related assets or liabilities other than Level 1 inputs; Level 3 inputs are the inputs that are
observable for related assets or liabilities.
On each balance date, the Group re-evaluates the assets and liabilities that are recognized in
the financial statements and keep being measured by fair value so as to determine whether to
change the measurement levels of fair value.
Significant accounting judgments and estimates
In the preparation of financial statements, the management need to make judgments,
estimates and assumptions, which will affect the presented amounts and disclosure of revenue,
expenses, assets and liabilities and the disclosure of contingent liabilities on the balance sheet
date. However, the uncertainty of these assumptions and estimates may result in significant
adjustments to the book value of future affected assets or liabilities.
Judgments
When applying the Group’s accounting policies, the management have made the following
judgments which have had significant influence on the amounts recognized in the financial
statements:
Operating lease - as a lessor
The Group has signed lease contracts for investment properties. 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.
Classification of investment properties 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
investment properties, including but not limited to the auxiliary banking and catering outlets for
market operation and the auxiliary service outlets for hotels. Other buildings and structures
leased out are classified as fixed assets.
Business model
The classification of financial assets at initial recognition depends on the Group’s business
model for the management of financial assets. When judging the business model, the Group
factors in the enterprise evaluation, the way of reporting financial assets performance to key
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.
Contract cash flow characteristics
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
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The following are key assumptions regarding the future at the balance sheet date and other
key sources of estimation uncertainty that may result in significant adjustments to the book
value of assets and liabilities in future accounting periods.
Impairment of financial instruments
The Group evaluates the impairment of financial instruments with the expected credit loss
model. To apply the model, the Group needs to make significant judgments and estimates and
take into account all reasonable and evidenced information, including forward-looking
information. When making these judgments and estimates, the Group infers the expected
changes in the debtors’ credit risks based on their historical repayment data, in combination
with the economic policies, macroeconomic indicators and industry risks. Different estimates
may affect the provisions for impairment and the provision that has been made for impairment
may not necessarily be equal to the actual amount of impairment loss in the future.
Net realizable value of property inventory
The Group’s property inventory is measured by cost or net realizable value, whichever is
lower. For the calculation of net realizable value, assumptions and estimates should be used. If
the management adjust the estimated price and the costs and expenses to be incurred until the
completion, it will affect the estimate of the net realizable value of the inventory and the
difference will affect the provision for inventory depreciation.
Impairment of non-current assets other than financial assets (excluding goodwill)
The Group determines, on the balance sheet date, whether the non-current assets other
than financial assets have a sign of being impaired. Non-current assets other than financial
assets are subject to impairment testing when there are indications that their book value is
irrecoverable. When the book value of an asset or a group of assets is higher than its
recoverable value, i.e. fair value less the disposal expenses or the present value of expected
future cash flow, whichever is higher, the asset or group has been impaired. For the fair value
less the disposal expenses, the Group refers to the agreed selling price or observable market
price of the similar asset in a fair transaction, less the cost increase directly attributable to the
disposal of the asset. When predicting the present value of future cash flows, the management
must estimate the expected future cash flows of the asset or group of assets and select an
appropriate discount rate. When identifying a group of assets, the management consider
whether the smallest identifiable group of assets can generate income and cash flows
independently from other departments or units, or the income and cash inflows generated
thereby are mostly independent from other departments or units, and also take into account the
way of managing or monitoring production and operating activities and the way of making
decisions on the continued use or disposal of the asset. Please refer to Note VI. 21 for details.
Goodwill impairment
The Group tests goodwill for impairment at least annually. This requires estimating the
present value of the future cash flows of the asset group or groups of asset groups to which the
goodwill is allocated. When estimating the present value of future cash flows, the Group needs
to estimate the cash flows generated by future asset groups or groups of asset groups, and at
the same time select an appropriate discount rate to determine the present value of future cash
flows. Please refer to Note VI. 27 for details.
Fair value of non-listed equity investments
The Group determines the fair value of non-listed equity investments based on the
expected future cash flows discounted at the current discount rate of other financial instruments
with similar contractual terms and risk characteristics. This requires the Group to estimate the
expected future cash flows, credit risk, volatility and discount rate, which brings uncertainties.
Development expenditure
When determining the amount of capitalization, management must make assumptions on
the expected future cash flow, the applicable discount rate, and the expected benefit period of
the asset.
Deferred tax assets
To the extent that it is very likely for the Group to have enough taxable income to be offset
against the deductible losses, the Group shall recognize deferred income tax assets in
connection with the outstanding deductible losses. This requires the management to use lots of
judgments to estimate the acquisition time and amount of the taxable income to be acquired in
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the future to determine the amount of deferred income tax assets to be recognized, in
consideration of the tax payment planning strategy.
Lessee incremental borrowing interest rate
For leases where the interest rate implicit in the lease cannot be determined, the Group
uses the lessee's incremental borrowing rate as the discount rate to calculate the present value
of the lease payments. When determining the incremental borrowing rate, the Group takes the
observable interest rate as the reference basis for determining the incremental borrowing rate
according to the economic environment it is in. On this basis, the Group adjusts the reference
interest rate according to its own situation, the underlying asset situation, the lease term, the
amount of lease liabilities and other specific conditions of the lease business to obtain the
applicable incremental borrowing rate.
40. Changes in important accounting policies and accounting estimates
(1). Changes in important accounting policies
□ Applicable √Not applicable
(2). Changes in important accounting estimates
□ Applicable √Not applicable
(3). From 2024, the implementation of new accounting standards or standard
interpretations for the first time would involve adjustments to the financial
statements at the beginning of the first implementation year
□ Applicable √Not applicable
41. Other
□ Applicable √Not applicable
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VI. Taxes
1. Main tax types and tax rates
Major taxes and tax rates
√Applicable □Not applicable
Tax Base of taxation Rate
The Company is a general taxpayer, and the taxable income is
calculated for output tax at the tax rates of 13%, 9%, and 6%.
The difference between
Value added tax is calculated and paid based on the difference
the output tax amount
after deducting the input tax allowed for deduction in this period.
calculated based on sales
In addition, for the sale of self-developed old real estate projects
VAT revenue and applicable
(the contract commencement date specified in the Construction
tax rates, and the input
Engineering Construction Permit is before April 30, 2016) and the
tax amount allowed for
rental of real estate acquired by the Group before April 30, 2016,
deduction
the simplified tax calculation method is applicable, and the
payable tax amount is calculated and paid at a 5% tax rate
Urban
Actual paid value-added
maintenance and Paid at 5% or 7% of the actual turnover tax paid.
tax amount
construction tax
Except for the tax incentives listed in Note VI. 1 and the
subsidiaries registered in Prague, Czech Republic, Hong Kong
Corporate income Special Administrative Region, Germany, Kenya, Rwanda, and
Taxable income
tax Dubai, the corporate income tax of the Company and its
subsidiaries within the Group is calculated and paid at 25% of the
taxable income.
According to the ratio of value-added to deduction items, a four-level
Land appreciation Value added from the transfer
progressive tax rate (30% to 60%) will be implemented for exceeding the
tax of real estate
rate.
Ad valorem taxation:
deducting a certain
If the tax is levied according to price, the amount is 1.2% of the
proportion from the
balance of the original value of the property after a 30%
Real estate tax original value of the
deduction; if the tax is levied according to rental, the amount is
property
12% of the rental income.
Levy based on rent:
rental income
Education Actual paid value-added
Paid at 3% of the actual turnover tax paid.
surcharge tax amount
Local education Actual paid value-added
Paid at 2% of the actual turnover tax paid.
surcharge tax amount
Cultural
undertaking Advertising turnover Calculated and paid at 3% of the advertising industry's revenue.
development fee
Disclosure of taxpayers subject to different income tax rates
√Applicable □Not applicable
Taxpayer Income tax rate (%)
Huafrica (Kenya) Investment Development Co., Limited 30.00
BETTER SILK ROAD RWANDA Ltd 30.00
Mingzhe Technology Development Co., Ltd. 20.00
European Huajie Investment Development Co., Ltd. 19.00
Yiwu China Commodities City (Hong Kong) International Trade Co., 16.50
Ltd.
Hong Kong Better Silk Road Co., Ltd. 16.50
Yiwu China Commodity City (Germany) Co., Ltd. 15.00
Yiwu China Commodities City Big Data Co., Ltd. 15.00
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BETTER SILK ROAD FZE Not subject to corporate
income tax
2. Tax incentives
√Applicable □Not applicable
According to the Announcement on the Filing of High-tech Enterprises recognized by
Zhejiang Provincial Accreditation Agency in 2022 issued by the Office of the National High-tech
Enterprise Accreditation Management Leading Group, Yiwu China Small Commodities City Big
Data Co., Ltd. has been listed in the filing list of high-tech enterprises recognized by Zhejiang
Provincial Accreditation Agency in 2022 and passed the recognition of high-tech enterprises.
The Certificate number is GR202233004297, date of issue: December 24, 2022, valid period:
three years. From January 1, 2022 to December 31, 2024, Yiwu China Commodities City Big
Data Co., Ltd. will be subject to a reduced corporate income tax rate of 15%.
3. Other
□ Applicable √Not applicable
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VII. Notes to items in consolidated financial statements
1. Cash and cash equivalents
√Applicable □Not applicable
Unit: RMB
Item Closing balance Opening balance
Cash on hand 213,381.46 249,915.87
Bank deposits 976,757,905.00 2,922,477,584.50
Other cash and cash equivalents 2,725,584.48 7,820.24
Total 979,696,870.94 2,922,735,320.61
Including: amount deposited abroad 13,217,960.58 100,628,215.18
Other statements
Monetary funds with restricted usage rights are detailed in Note VII. 31. Assets with
restricted ownership or usage rights.
2. Held-for-trading financial assets
√Applicable □Not applicable
Unit: RMB
Opening Reasons and basis
Item Closing balance
balance for determination
Financial assets that are /
measured by fair value and of
which the changes in fair value 11,640,817.50 15,130,895.00
are recognized in the profit or
loss for the current period
Among them:
Equity instrument /
11,640,817.50 15,130,895.00
investment
Total 11,640,817.50 15,130,895.00 /
Other notes:
□ Applicable √Not applicable
3. Derivative financial assets
□ Applicable √Not applicable
4. Notes receivable
(1). List of notes receivable by category
□ Applicable √Not applicable
(2). Notes receivable pledged by the Company at the end of the period
□ Applicable √Not applicable
(3). Notes receivable that have been endorsed or discounted by the Company at the end
of the period and have not yet matured on the balance sheet date
□ Applicable √Not applicable
(4). Categorized disclosure based on the bad debt provision method
□ Applicable √Not applicable
Provision for bad debts on an individual basis:
□ Applicable √Not applicable
Provision for bad debts on a grouping basis:
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□ Applicable √Not applicable
Provision for bad debts based on the general model of expected credit losses
□ Applicable √Not applicable
Classification basis and bad debt provision ratio for each stage
Nil
Explanation of significant changes in the book balance of accounts receivable with changes in
loss provisions in this period:
□ Applicable √Not applicable
(5). The situation of bad debt provision
□ Applicable √Not applicable
In which the recovered or reversed amount is important:
□ Applicable √Not applicable
Other notes:
Nil
(6). Notes receivable actually written off during the current period
□ Applicable √Not applicable
Important notes receivable written off:
□ Applicable √Not applicable
Description of notes written off:
□ Applicable √Not applicable
Other notes:
□ Applicable √Not applicable
5. accounts receivable
(1). Disclosure by aging
√Applicable □Not applicable
Unit: RMB
Account aging Closing book balance Opening book balance
Within 1 year
Including: sub-items
Within 1 year 472,258,564.38 587,700,197.38
Within 1 year 472,258,564.38 587,700,197.38
1 to 2 years 8,083,399.52 10,408,255.33
2 to 3 years 1,522,338.68 1,195,926.30
Total 481,864,302.58 599,304,379.01
(2). Categorized disclosure based on the bad debt provision method
√Applicable □Not applicable
Unit: RMB
Category Closing balance Opening balance
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Book balance Bad debt provision Book balance Bad debt provision
Book Book
Proportion Provision value Proportion Provision value
Amount Amount Amount Amount
(%) ratio (%) (%) ratio (%)
Provision for bad debts
on an individual basis
6,261,907.10 1.30 6,261,907.10 100.00 - 6,261,907.10 1.04 6,261,907.10 100.00 -
Among them:
Lease receivables 6,261,907.10 1.30 6,261,907.10 100.00 - 6,261,907.10 1.04 6,261,907.10 100.00 -
Provision for bad debts
475,602,395.48 98.70 140,838.20 0.03 475,461,557.28 593,042,471.91 98.96 184,676.82 0.03 592,857,795.09
on a grouping basis
Among them:
Provision for bad debts
by grouping of credit 475,602,395.48 98.70 140,838.20 0.03 475,461,557.28 593,042,471.91 98.96 184,676.82 0.03 592,857,795.09
risk characteristics
Total 481,864,302.58 / 6,402,745.30 / 475,461,557.28 599,304,379.01 / 6,446,583.92 /
Provision for bad debts on an individual basis:
√Applicable □Not applicable
Unit: RMB
Closing balance
Name Bad debt Provision ratio Reason for
Book balance
provision (%) provision
Due to
deterioration of
operating
Lease receivables 6,261,907.10 6,261,907.10 100.00
conditions,
expected not to
be recovered
Total 6,261,907.10 6,261,907.10 100.00 /
Explanation for provision for bad debts on an individual basis:
□ Applicable √Not applicable
Provision for bad debts on a grouping basis:
√Applicable □Not applicable
Provision items on a grouping basis: by grouping of credit risk characteristics
Unit: RMB
Closing balance
Name
Accounts receivable Bad debt provision Provision ratio (%)
Within 1 year 472,258,564.38 50,914.35 0.01
1 - 2 years 1,821,492.42 33,991.91 1.87
2 -3 years 1,522,338.68 55,931.94 3.67
Total 475,602,395.48 140,838.20 /
Description of provision for bad debts on a grouping basis:
□ Applicable √Not applicable
Provision for bad debts based on the general model of expected credit losses
√Applicable □Not applicable
Unit: RMB
Stage 1 Stage 2 Stage 3
Expected credit Expected credit
Expected credit
loss in the entire loss in the entire
Bad debt provision loss in the Total
duration (credit duration (credit
coming 12
has not been has been
months
impaired) impaired)
Balance as of 6,446,583.92 6,446,583.92
January 1, 2024
Provision made in 215,577.51 215,577.51
the current period
Current reversal 259,416.13 259,416.13
Balance as of June 6,402,745.30 6,402,745.30
30, 2024
Classification basis and bad debt provision ratio for each stage
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Semi-annual Report for 2024
Nil
Explanation of significant changes in the book balance of accounts receivable with changes in
loss provisions in this period:
□ Applicable √Not applicable
(3). The situation of bad debt provision
√Applicable □Not applicable
Unit: RMB
Amount of change during the
Opening current period
Category Closing balance
balance Recovery or
Provision
reversal
Bad debt provision 6,446,583.92 215,577.51 259,416.13 6,402,745.30
for accounts
receivable
Total 6,446,583.92 215,577.51 259,416.13 6,402,745.30
In which the recovered or reversed amount is important:
□ Applicable √Not applicable
Other notes:
Nil
(4). Accounts receivable actually written off during the current period
□ Applicable √Not applicable
Information of write-off of important accounts receivable
□ Applicable √Not applicable
Description of accounts receivable written off:
□ Applicable √Not applicable
(5). The five largest accounts receivable and contract assets aggregated by debtor at the
end of the period
√Applicable □Not applicable
Unit: RMB
Proportion in
the total
Closing
Closing Closing balance closing
balance Closing
balance of of accounts balance of
Debtor of balance of bad
accounts receivable and accounts
contract debt provision
receivable contract assets receivable and
assets
contract
assets (%)
Dalian Guanglong Zhongbang
International Trade Co., Ltd. 12,659,696.23 - 12,659,696.23 2.63 1,364.85
Zhejiang Jielian Network
Technology Co., Ltd.
6,261,907.10 - 6,261,907.10 1.30 6,261,907.10
LPS COMPANY LTDA 6,252,078.36 - 6,252,078.36 1.30 674.04
SUN OCEAN DEVELOPMENTS
LIMITED 2,850,404.07 - 2,850,404.07 0.59 307.30
SWONIA, a.s. 2,769,068.86 - 2,769,068.86 0.57 298.53
Total 30,793,154.62 - 30,793,154.62 6.39 6,264,551.82
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Semi-annual Report for 2024
Other statements
Nil
Other notes:
□ Applicable √Not applicable
6. Contract assets
(1). Contract assets situation
□ Applicable √Not applicable
(2). The amount and reasons for significant changes in book value during the reporting
period
□ Applicable √Not applicable
(3). Categorized disclosure based on the bad debt provision method
□ Applicable √Not applicable
Provision for bad debts on an individual basis:
□ Applicable √Not applicable
Explanation for provision for bad debts on an individual basis:
□ Applicable √Not applicable
Provision for bad debts on a grouping basis:
□ Applicable √Not applicable
Provision for bad debts based on the general model of expected credit losses
□ Applicable √Not applicable
Classification basis and bad debt provision ratio for each stage
Nil
Explanation of significant changes in the book balance of contract assets with changes in loss
provisions in this period:
□ Applicable √Not applicable
(4). Provision for bad debts of contract assets in this period
□ Applicable √Not applicable
In which the recovered or reversed amount is important:
□ Applicable √Not applicable
Other notes:
Nil
(5). Actual written-off contract assets in this period
□ Applicable √Not applicable
Among them, important contract assets write off
□ Applicable √Not applicable
Description of contract assets written off:
□ Applicable √Not applicable
Other notes:
□ Applicable √Not applicable
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7. Receivables Financing
(1). Accounts receivable financing listed by classification
□ Applicable √Not applicable
(2). Accounts receivable financing pledged by the Company at the end of the period
□ Applicable √Not applicable
(3). Accounts receivable financing that has been endorsed or discounted by the
Company at the end of the period and has not yet matured on the balance sheet date
□ Applicable √Not applicable
(4). Categorized disclosure based on the bad debt provision method
□ Applicable √Not applicable
Provision for bad debts on an individual basis:
□ Applicable √Not applicable
Explanation for provision for bad debts on an individual basis:
□ Applicable √Not applicable
Provision for bad debts on a grouping basis:
□ Applicable √Not applicable
Provision for bad debts based on the general model of expected credit losses
□ Applicable √Not applicable
Classification basis and bad debt provision ratio for each stage
Nil
Explanation of significant changes in the financing book balance of accounts receivable with
changes in loss provisions in this period:
□ Applicable √Not applicable
(5). The situation of bad debt provision
□ Applicable √Not applicable
In which the recovered or reversed amount is important:
□ Applicable √Not applicable
Other notes:
Nil
(6). Accounts receivable financing actually written off in this period
□ Applicable √Not applicable
Among them, important accounts receivable financing written off
□ Applicable √Not applicable
Explanation of writing-off:
□ Applicable √Not applicable
(7). Changes in accounts receivable financing and changes in fair value in this period:
□ Applicable √Not applicable
(8). Other notes:
□ Applicable √Not applicable
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8. Prepayments
(1). Presentation of prepayments by aging
√Applicable □Not applicable
Unit: RMB
Account Closing balance Opening balance
aging Amount Proportion (%) Amount Proportion (%)
Within 1 year 1,925,038,260.48 99.54 969,194,841.33 98.29
1 to 2 years 3,050,841.07 0.16 12,339,052.53 1.25
2 to 3 years 2,138,045.31 0.11 4,404,721.24 0.45
Over 3 years 3,652,307.71 0.19 124,000.00 0.01
Total 1,933,879,454.57 100.00 986,062,615.10 100.00
Explanation for failure to settle the prepayments with an account aging longer than one year
and in important amounts:
Nil
(2). The five largest advances to suppliers aggregated by debtor at the end of the
period
√Applicable □Not applicable
Unit: RMB
Proportion in closing balance
Debtor Closing balance
of total prepayments (%)
Total amount of the five largest 691,010,197.59 35.73
advances to suppliers at the end
of the period
Total 691,010,197.59 35.73
Other statements
□ Applicable √Not applicable
9. Other receivables
Presentation of items
√Applicable □Not applicable
Unit: RMB
Item Closing balance Opening balance
Other receivables 121,606,527.40 115,279,387.63
Total 121,606,527.40 115,279,387.63
Other notes:
□ Applicable √Not applicable
Interest receivable
(1). Classification of interest receivable
□ Applicable √Not applicable
(2). Significant overdue interest
□ Applicable √Not applicable
(3). Categorized disclosure based on the bad debt provision method
□ Applicable √Not applicable
Provision for bad debts on an individual basis:
□ Applicable √Not applicable
Explanation for provision for bad debts on an individual basis:
□ Applicable √Not applicable
Provision for bad debts on a grouping basis:
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Semi-annual Report for 2024
□ Applicable √Not applicable
(4). Provision for bad debts based on the general model of expected credit losses
□ Applicable √Not applicable
(5). The situation of bad debt provision
□ Applicable √Not applicable
In which the recovered or reversed amount is important:
□ Applicable √Not applicable
Other notes:
Nil
(6). Interest receivable actually written off in this period
□ Applicable √Not applicable
Important interest receivable written off among them
□ Applicable √Not applicable
Explanation of writing-off:
□ Applicable √Not applicable
Other notes:
□ Applicable √Not applicable
Dividends receivable
(1). Dividend receivable
□ Applicable √Not applicable
(2). Important dividend receivable with an account aging longer than 1 year
□ Applicable √Not applicable
(3). Categorized disclosure based on the bad debt provision method
□ Applicable √Not applicable
Provision for bad debts on an individual basis:
□ Applicable √Not applicable
Explanation for provision for bad debts on an individual basis:
□ Applicable √Not applicable
Provision for bad debts on a grouping basis:
□ Applicable √Not applicable
(4). Provision for bad debts based on the general model of expected credit losses
□ Applicable √Not applicable
(5). The situation of bad debt provision
□ Applicable √Not applicable
In which the recovered or reversed amount is important:
□ Applicable √Not applicable
Other notes:
Nil
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Semi-annual Report for 2024
(6). Dividends receivable actually written off in this period
□ Applicable √Not applicable
Important dividend receivables written off among them
□ Applicable √Not applicable
Explanation of writing-off:
□ Applicable √Not applicable
Other notes:
□ Applicable √Not applicable
Other receivables
(1). Disclosure based on account aging
√Applicable □Not applicable
Unit: RMB
Account aging Closing book balance Opening book balance
Within 1 year
Including: sub-items
Within 1 year 96,390,810.91 51,791,601.59
Within 1 year 96,390,810.91 51,791,601.59
1 to 2 years 5,268,169.86 41,019,455.29
2 to 3 years 1,368,236.00 5,014,989.22
Over 3 years 22,620,082.18 21,509,679.17
Bad debt provision for other -4,040,771.55 -4,056,337.64
receivables
Total 121,606,527.40 115,279,387.63
(2). Classification based on the nature of accounts
√Applicable □Not applicable
Unit: RMB
Nature of receivable Closing book balance Opening book balance
Withholdings and deposits 116,138,182.11 107,984,533.23
Receivables from export tax 7,823,624.70 9,508,128.96
rebate
Reserve 1,685,492.14 1,843,063.08
Total 125,647,298.95 119,335,725.27
(3). Bad debt provision
√Applicable □Not applicable
Unit: RMB
Stage 1 Stage 2 Stage 3
Expected credit Expected credit
Expected credit
loss in the entire loss in the entire
Bad debt provision loss in the Total
duration (credit duration (credit
coming 12
has not been has been
months
impaired) impaired)
Balance as of January 1,
4,056,337.64 4,056,337.64
2024
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Semi-annual Report for 2024
Provision made in the
47,536.69 47,536.69
current period
Current reversal 63,102.78 63,102.78
Balance as of June 30,
4,040,771.55 4,040,771.55
2024
Classification basis and bad debt provision ratio for each stage
Nil
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 4,056,337.64 47,536.69 63,102.78 4,040,771.55
other receivables
Total 4,056,337.64 47,536.69 63,102.78 4,040,771.55
In which the recovered or reversed amount is important:
□ Applicable √Not applicable
Other statements
Nil
(5). Other receivables actually written off during the current period
□ Applicable √Not applicable
Of which, important write-offs of other receivables:
□ Applicable √Not applicable
Notes on the write-off of other receivables:
□ Applicable √Not applicable
(6). The five largest other accounts receivable aggregated by debtor at the end of the
period
√Applicable □Not applicable
Unit: RMB
Closing
Weight in the total
balance of
Closing closing balance of Nature of Account
Debtor bad debt
balance other receivables receivable aging
provision
(%)
114 / 213
Semi-annual Report for 2024
Yiwu Taxation Bureau, State Export tax Within 1
7,823,624.70 6.23 -
Administration of Taxation rebate year
Yiwu Junhuhui Entertainment Co., Transactions
Within 1
Ltd 6,212,477.30 4.94 between -
year
companies
FUNDACION PARA EL
Advance Within 1
INTERCAMBIO ENTRE YIWU Y 5,572,630.27 4.44 -
payment year
ESPANA
Yiwu Weiniuke Trading Co., Ltd Advance Within 1
3,898,300.00 3.10 -
payment year
Yiwu Shengran Trading Co., Ltd. Advance Within 1
3,616,300.00 2.88 -
payment year
Total 27,123,332.27 21.59 / / -
(7). Reported as other receivables due to centralized fund management
□ Applicable √Not applicable
Other notes:
□ Applicable √Not applicable
10. Inventories
(1). Inventories classification
√Applicable □Not applicable
Unit: RMB
Closing balance Opening balance
Provision for Provision for
inventory inventory
depreciation/pr depreciation/pr
Item Book ovision for Book ovision for
Book value Book value
balance impairment of balance impairment of
contract contract
performance performance
cost cost
Raw 209,465.68 - 209,465.68 159,406.39 - 159,406.39
materials
Finished 254,186,01 - 254,186,01 162,423,27 - 162,423,27
goods 5.31 5.31 8.28 8.28
Work-in-pro 3,577,734.0 - 3,577,734.0 4,042,462.1 - 4,042,462.1
gress 0 0 8 8
materials
Developme 629,034,89 28,303,338.06 600,731,55 67,478,414. 28,303,338.06 39,175,076.
nt cost 1.04 2.98 27 21
Developme 1,038,323,1 - 1,038,323,1 1,041,444,1 - 1,041,444,1
nt products 84.56 84.56 57.85 57.85
Total 1,925,331,2 28,303,338.06 1,897,027,9 1,275,547,7 28,303,338.06 1,247,244,3
90.59 52.53 18.97 80.91
(2). Data resources confirmed as inventory
□ Applicable √Not applicable
(3). Provision for inventory depreciation/provision for impairment of contract
performance cost
√Applicable □Not applicable
115 / 213
Semi-annual Report for 2024
Unit: RMB
Increase in the Decrease in the
current period current period
Item Opening balance Closing balance
Reversal or
Provision
charge-off
Development 28,303,338.06 - - 28,303,338.06
cost
Total 28,303,338.06 - - 28,303,338.06
The reason for the reversing or charging off provision for inventory depreciation in this period
□ Applicable √Not applicable
Provision for inventory depreciationon on a grouping basis
□ Applicable √Not applicable
Provision standards for provision for inventory depreciation on a grouping basis
□ Applicable √Not applicable
(4). The capitalized amount of borrowing costs contained in the closing balance of
inventory and its calculation criteria and basis
√Applicable □Not applicable
As of June 30, 2024, the inventory with a book value of RMB 45,315,858.73 (December 31,
2023: RMB 35,797,443.87) was formed by capitalization of borrowing costs. In January-June
2024, the capitalized amount of inventory borrowing costs for the Group was RMB 9,518,414.86
(2023: RMB 0.00), and the cumulative capitalized amount of borrowing costs was RMB
45,315,858.73 (2023: RMB 35,797,443.87)
(5). Explanation of amortization amount of contract performance cost in the current
period
□ Applicable √Not applicable
Other notes:
√Applicable □Not applicable
Inventories-Development Cost Unit: RMB
Item Opening Increase in the Decrease in the Closing balance
balance current period current period
Haicheng Phase I
67,478,414.27 - - 67,478,414.27
Business Street
Global Digital Trade Center
- 526,841,761.92 - 526,841,761.92
Phase II sellable projects
Global Digital Trade Center
Super High-rise
- 34,714,714.85 - 34,714,714.85
Commercial Office Building
project
Total 67,478,414.27 561,556,476.77 - 629,034,891.04
Inventories-Developed Products Unit: RMB
Item Opening balance Increase in the Decrease in the Closing balance
current period current period
Haicheng Phase I
915,706,130.79 - - 915,706,130.79
Business Street
Haicheng Phase II
125,738,027.06 579,705.43 3,700,678.72 122,617,053.77
Business Street
Total 1,041,444,157.85 579,705.43 3,700,678.72 1,038,323,184.56
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Semi-annual Report for 2024
11. Held-for-sale assets
□ Applicable √Not applicable
12. Non-current assets due within one year
□ Applicable √Not applicable
Debt investments due within one year
□ Applicable √Not applicable
Other debt investments due within one year
□ Applicable √Not applicable
Other statement for non-current assets due within one year
Nil
13. Other current assets
√Applicable □Not applicable
Unit: RMB
Item Closing balance Opening balance
Payment business reserve 399,764,547.68 313,869,496.74
To-be-deducted input tax 399,219,355.16 326,795,702.79
Advance income tax 17,203,738.80 17,252,758.70
To-be-certified input tax 16,404,029.61 5,662,735.21
Entrusted loans to the market 1,627,445.27 1,737,479.42
traders
Less: bad debt provision for -185,500.00 -185,500.00
entrusted loans
Total 834,033,616.52 665,132,672.86
Other notes:
Nil
14. Debt investments
(1). Debt investments
√Applicable □Not applicable
Unit: RMB
Closing balance Opening balance
Item Impairment Impairment
Book balance Book value Book balance Book value
provision provision
Entrusted 48,066,000.00 - 48,066,000.00 48,073,333.34 - 48,073,333.34
Loans
Total 48,066,000.00 - 48,066,000.00 48,073,333.34 - 48,073,333.34
Changes in provision for impairment of debt investments in this period
□ Applicable √Not applicable
(2). Important debt investment at the end of the period
√Applicable □Not applicable
Unit: RMB
Closing balance Opening balance
Actua Actua
Overd Overd
Item Coup l Maturi Coup l Maturi
ue ue
Face value on intere ty Face value on intere ty
princip princip
rate st date rate st date
al al
rate rate
117 / 213
Semi-annual Report for 2024
Cheng
du
Dec Dec
Trade 48,000,000 48,000,000
5.5% 5.5% 19, - 5.5% 5.5% 19, -
City .00 .00
2024 2024
entrust
ed loan
48,000,000 / / / - 48,000,000 / / / -
Total
.00 .00
(3). Provision for impairment
□ Applicable √Not applicable
Segmentation basis and provision ratio for impairment in each stage:
Nil
Explanation of significant changes in the book balance of debt investments with changes in loss
provisions in this period:
□ Applicable √Not applicable
Amount of impairment provision for the current period and the basis for assessing whether there
is significant increase in the credit risk of financial instruments:
□ Applicable √Not applicable
(4). Debt investments actually written off in this period
□ Applicable √Not applicable
Important debt investments written off among them
□ Applicable √Not applicable
Description of debt investments written off:
□ Applicable √Not applicable
Other notes:
Nil
15. Other debt investments
(1). Other debt investments
□ Applicable √Not applicable
Changes in provision for impairment of other debt investments in this period
□ Applicable √Not applicable
(2). Other significant debt investments at the end of the period
□ Applicable √Not applicable
(3). Provision for impairment
□ Applicable √Not applicable
(4). Other debt investments actually written off in this period
□ Applicable √Not applicable
Important other debt investments written off among them
□ Applicable √Not applicable
Description of other debt investments written off:
□ Applicable √Not applicable
Other notes:
118 / 213
Semi-annual Report for 2024
□ Applicable √Not applicable
16. Long-term receivables
(1). Long-term receivables
√Applicable □Not applicable
Unit: RMB
Closing balance Opening balance Range of
Item Bad debt Bad debt discount
Book balance Book value Book balance Book value
provision provision rate
Guarantee
7,187,997.99 - 7,187,997.99 7,270,907.13 - 7,270,907.13 2.78%-7.55%
deposit
Financial
assistance
284,698,048.35 - 284,698,048.35 270,755,772.12 - 270,755,772.12 0.00%-6.74%
receivable from
joint ventures
Total 291,886,046.34 - 291,886,046.34 278,026,679.25 - 278,026,679.25 /
(2). Categorized disclosure based on the bad debt provision method
□ Applicable √Not applicable
Provision for bad debts on an individual basis:
□ Applicable √Not applicable
Explanation for provision for bad debts on an individual basis:
□ Applicable √Not applicable
Provision for bad debts on a grouping basis:
□ Applicable √Not applicable
Provision for bad debts based on the general model of expected credit losses
□ Applicable √Not applicable
(3). The situation of bad debt provision
□ Applicable √Not applicable
In which the recovered or reversed amount is important:
□ Applicable √Not applicable
Other notes:
Nil
(4). Actual long-term accounts receivable written off in this period
□ Applicable √Not applicable
Important long-term accounts receivable written off among them
□ Applicable √Not applicable
Explanation of writing-off:
□ Applicable √Not applicable
Other notes:
□ Applicable √Not applicable
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17. Long-term equity investment
(1). Long term equity investment situation
√Applicable □Not applicable
Unit: RMB
Change in the current period
Investment gains Adjustment Closing
or losses of other Declared a balance of
Investee Opening balance Additional Decrease in Closing balance
recognized with comprehen cash dividend impairment
investment investment
the equity sive or profit provision
method income
1. Joint ventures
Yiwu Shanglv 435,929,928.58 - - 23,714,674.25 - - 459,644,602.83 -
Yiwu Rongshang Property Co., Ltd. 65,650,697.03 - - 180.99 - - 65,650,878.02 -
Yiwu Chuangcheng Property 27,685,633.41 - - 565,950.74 - - 28,251,584.15 -
Yiwu Guoshen Shangbo Property Co., Ltd. 927,219,681.28 - - 1,279,075.67 - - 928,498,756.95 -
Others 33,956,893.18 - - -811,605.27 - - 33,145,287.91 3,327,216.16
Sub-total 1,490,442,833.48 - - 24,748,276.38 - - 1,515,191,109.86 3,327,216.16
2. Associates
Huishang Micro-finance 78,587,936.11 - - 668,603.28 - - 79,256,539.39 -
Huishang Zijing 66,800,947.43 - - -6,620,081.78 - - 60,180,865.65 -
Chouzhou Financial Lease 574,958,766.29 - - 54,021,989.23 - - 628,980,755.52 -
Yiwu China Commodities City Investment
9,508,049.22 - - - - - 9,508,049.22 9,508,049.22
Management Co., Ltd.
Yiwu China Commodities City Fuxing
102,918,559.00 - - - - - 102,918,559.00 -
Investment Center (Limited Partnership)
Pujiang Lvgu Property Co., Ltd. 349,641,685.10 - - 46,319,683.10 - - 395,961,368.20 -
Yiwu China Commodities City Property
3,122,444,390.10 - - -5,218,340.42 - - 3,117,226,049.68 -
Development Co., Ltd.
Yiwu Hongyi Equity Investment Fund Partnership
(limited partnership)
904,833,747.27 - 165,250,000.00 11,642,391.12 - 34,750,000.00 716,476,138.39 -
Zhijie Yuangang 131,982,044.17 - - -5,687,009.55 - - 126,295,034.62 -
Yiwu Huishang Redbud Phase II Investment
Partnership (limited partnership)
138,367,322.19 - 5,000,000.00 66,458.61 - - 133,433,780.80 -
Others 65,128,491.27 22,459,100.00 - -21,593,218.45 217,103.05 - 66,211,475.87 -
Sub-total 5,545,171,938.15 22,459,100.00 170,250,000.00 73,600,475.14 217,103.05 34,750,000.00 5,436,448,616.34 9,508,049.22
Total 7,035,614,771.63 22,459,100.00 170,250,000.00 98,348,751.52 217,103.05 34,750,000.00 6,951,639,726.20 12,835,265.38
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(2). Impairment testing of long-term equity investments
□ Applicable √Not applicable
Other statements
Provision for impairment of long-term equity investment：
Unit: RMB
Investee Opening balance Increase in Decrease in the Closing balance
the current current period
period
Yiwu China Commodities City Investment
9,508,049.22 - - 9,508,049.22
Management Co., Ltd. [Note 1]
Others 3,327,216.16 - - 3,327,216.16
Total 12,835,265.38 - - 12,835,265.38
Note 1: 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, 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, as the general partner of the above-mentioned FOF and sub-funds, with a shareholding ratio of 49%, to jointly establish
Yiwu China Commodity City Investment Management Co., Ltd. (hereinafter referred to as “CCCIM” with Fuxing. The FoF and CCCIM are both under
the control of Fuxing and are associates of CCCF.
As a limited partner of Shangfu Chuangzhi Fund, CCCF has subscribed and paid in a capital contribution of RMB 617.51 million. Since the capital
contribution was guaranteed by Fuxing's fixed income, it was recognized as other non-current financial assets. The above paid-in capital contribution
made by CCCF to the FoF has been contributed to Shangfu Chuangzhi Fund together with the capital contribution of Fuxing to the FoF through the
FoF as a limited partner. With the capital contribution from the FoF as a limited partner and CCCF’s capital contribution to Shangfu Chuangzhi Fund as
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a limited partner, Shangfu Chuangzhi Fund made capital contribution of RMB 820.54 million to subscribe for the increase in the registered capital of
Hubei Provincial Asset Management Co., Ltd. to acquire 22.667% equity therein.
In 2018, CCCF learned during its after-investment follow-up management that Fuxing and its actual controller ZHU Yidong were suspected of
having committed a criminal offense and the 22.667% equity held by Shangfu Chuangzhi Fund in Hubei Provincial Asset Management Co., Ltd. was
frozen by the Public Security Bureau of Shanghai due to Fuxing’s contribution to the sources of the capital contribution. The Group believes that, on
June 30, 2024, the Group’s investment in the FOF and Shangfu Chuangzhi Fund was non-related to Fuxing’s investment, and there was no indication
of impairment of the underlying assets. Although they were still frozen, that had no impact on the Group’s equity. Therefore, there was no impairment.
However, for the equity investment in CCCIM, a full impairment provision has been made since 2018.
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18. Other equity instrument investments
(1).Investments in other equity instruments
√Applicable □Not applicable
Unit: RMB
Change in the current period Reason for
Accumulated
Losses designing it as
Gains recognized Dividend gains
recognized in measured at
Opening in other Closing income recognized in
Item other fair value
balance comprehensive balance recognized in other
comprehensive through other
income for this this period comprehensive
income for the comprehensive
period income
current period income
Shenwan
Hongyuan Group 556,897,379.17 - 1,254,273.38 555,643,105.79 - 1,513,256.09 Non-trading
Co., Ltd.
Total 556,897,379.17 - 1,254,273.38 555,643,105.79 - 1,513,256.09 /
(2).Description of termination of recognition in this period
□ Applicable √Not applicable
Other notes:
□ Applicable √Not applicable
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19. Other non-current financial assets
√Applicable □Not applicable
Unit: RMB
Item Closing balance Opening balance
PE investment 1,272,744,910.29 1,222,483,421.12
Unlisted equity investment 182,432,741.89 161,914,541.90
New OTC Market equity investment 37,171,941.15 37,171,941.17
Total 1,492,349,593.33 1,421,569,904.19
Other notes:
Nil
20. Investment properties
Measurement models of investment properties
(1). Investment properties measured at cost
Unit: RMB
Buildings and
Item Land use right Total
structures
I. Original book value
1. Opening balance 4,512,941,362.63 441,780,232.93 4,954,721,595.56
2. Increase in the current - - -
period
(1) Purchased - - -
3. Decrease in the current - - -
period
(1) Disposal - - -
4. Closing balance 4,512,941,362.63 441,780,232.93 4,954,721,595.56
II. Accumulated depreciation and accumulated amortization
1. Opening balance 706,382,061.59 104,130,168.40 810,512,229.99
2. Increase in the current 83,250,364.94 5,665,363.11 88,915,728.05
period
(1) Provision or amortization 83,250,364.94 5,665,363.11 88,915,728.05
3. Decrease in the current - - -
period
(1) Disposal - - -
4. Closing balance 789,632,426.53 109,795,531.51 899,427,958.04
III. Depreciation provision
1. Opening balance - - -
4. Closing balance - - -
IV. Book value
1. Closing book value 3,723,308,936.10 331,984,701.42 4,055,293,637.52
2. Opening book value 3,806,559,301.04 337,650,064.53 4,144,209,365.57
(2). Investment properties for which property ownership certificates have not been
obtained:
□ Applicable √Not applicable
(3). Impairment testing of investment properties measured at cost
□ Applicable √Not applicable
Other statements
□ Applicable √Not applicable
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21. Fixed assets
Presentation of items
√Applicable □Not applicable
Unit: RMB
Item Closing balance Opening balance
Fixed assets 4,779,247,066.98 4,940,523,363.51
Total 4,779,247,066.98 4,940,523,363.51
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 7,913,881,415.11 4,034,531,447.24 10,150,315.37 11,958,563,177.72
2. Increase in the
1,255,669.90 25,220,263.28 - 26,475,933.18
current period
(1) Purchase 1,255,669.90 25,220,263.28 - 26,475,933.18
3. Decrease in the
- 1,785,041.89 - 1,785,041.89
current period
(1) Disposal or
- 1,785,041.89 - 1,785,041.89
retirement
4. Closing balance 7,915,137,085.01 4,057,966,668.63 10,150,315.37 11,983,254,069.01
II. Accumulated depreciation
1. Opening balance 3,269,495,712.70 3,269,131,025.42 8,249,608.24 6,546,876,346.36
2. Increase in the
148,972,351.30 38,341,324.73 367,200.90 187,680,876.93
current period
(1) Provision 148,972,351.30 38,341,324.73 367,200.90 187,680,876.93
3. Decrease in the
- 1,713,689.11 - 1,713,689.11
current period
(1) Disposal or
- 1,713,689.11 - 1,713,689.11
retirement
4. Closing balance 3,418,468,064.00 3,305,758,661.04 8,616,809.14 6,732,843,534.18
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 4,025,505,553.16 752,208,007.59 1,533,506.23 4,779,247,066.98
2. Opening book value 4,173,222,234.56 765,400,421.82 1,900,707.13 4,940,523,363.51
(2). Temporarily idle fixed assets
□ Applicable √Not applicable
(3). Fixed assets leased out through operating lease
□ Applicable √Not applicable
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(4). Fixed assets for which the ownership certificates have not been obtained
√Applicable □Not applicable
Unit: RMB
Reasons for having not
Item Book value obtained the ownership
certificate
Liaoning Xiliu Yiwu China 229,676,129.09 Completion settlement not
Commodity City completed
Huangyuan Clothing Market 223,860,329.85 Completion settlement not
completed
CCC Hotel 47,359,583.83 Completion settlement not
completed
Total 500,896,042.77
(5). Impairment testing of fixed assets
□ Applicable √Not applicable
Other notes:
□ Applicable √Not applicable
Fixed asset liquidation
□ Applicable √Not applicable
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22. Construction in progress
Presentation of items
√Applicable □Not applicable
Unit: RMB
Item Closing balance Opening balance
Construction in progress 4,383,862,731.01 3,955,959,200.32
Total 4,383,862,731.01 3,955,959,200.32
Other notes:
Nil
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
The Yiwu Comprehensive
1,261,434,839.25 - 1,261,434,839.25 1,221,353,672.38 - 1,221,353,672.38
Bonded Zone Project
Global Digital Free Trade
840,760,959.78 - 840,760,959.78 753,285,037.73 - 753,285,037.73
Center
Logistics Park S3 791,916,664.08 - 791,916,664.08 646,823,075.05 - 646,823,075.05
Yiwu International Digital
694,972,397.57 - 694,972,397.57 630,797,491.91 - 630,797,491.91
Logistics Market
Logistics Park S2 660,644,123.83 - 660,644,123.83 580,571,402.07 - 580,571,402.07
The Chian West Sea tourism
71,217,757.44 - 71,217,757.44 70,693,880.52 - 70,693,880.52
project
Liaoning Xiliu Yiwu China
Commodities City Commerce 32,290,506.33 -4,635,059.96 27,655,446.37 32,290,506.33 -4,635,059.96 27,655,446.37
Phase I Project—Hotel Project
The Zhimei Dachen tourism
27,798,801.17 - 27,798,801.17 24,438,877.36 - 24,438,877.36
project
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Other projects 7,461,741.52 - 7,461,741.52 340,316.93 - 340,316.93
Total 4,388,497,790.97 -4,635,059.96 4,383,862,731.01 3,960,594,260.28 -4,635,059.96 3,955,959,200.32
(2). Changes to important construction in progress during the current period
√Applicable □Not applicable
Unit: RMB10,000
Other Including:
Ratio of Interest
Increase reduction capitalized
accumulated Accumulated capitalization
Opening in the amount Closing Progress of interest in
Item Budget investment capitalized ratio for the Source of funds
balance current for the balance project the
to budget interest current
period current current
(%) period (%)
period period
Liaoning Xiliu Yiwu
China Commodities
City Commerce
Phase I
180,000.00 3,229.05 - - 3,229.05 96.32 Shutdown 154.61 - / Self-owned/financing
Project—Hotel
Project
The Zhimei
Under
Dachen tourism 6,000.00 2,443.89 335.99 - 2,779.88 97.30 - - / Self-owned
construction
project
The Chian West
Under
Sea tourism 8,000.00 7,069.39 52.39 - 7,121.78 89.02 - - / Self-owned
construction
project
The Yiwu Under
Comprehensive Bonded 624,250.00 122,135.37 4,008.12 - 126,143.49 47.51 6,046.39 1,784.08 2.93 Self-owned/financing
Zone Project construction
Global Digital Free Under
832,082.00 75,328.50 8,747.59 - 84,076.09 10.10 1,843.23 1,000.80 2.93 Self-owned/financing
Trade Center construction
Under
Logistics Park S2 108,000.00 58,057.14 8,007.27 - 66,064.41 61.17 1,631.66 737.82 2.93 Self-owned/financing
construction
Under
Logistics Park S3 132,000.00 64,682.31 14,509.36 - 79,191.67 59.99 1,850.45 567.52 2.93 Self-owned/financing
construction
Yiwu International
Under
Digital Logistics 113,600.00 63,079.75 6,417.49 - 69,497.24 61.18 1,222.35 466.55 2.93 Self-owned/financing
construction
Market
128 / 213
Semi-annual Report for 2024
Under
Other projects - 34.03 712.14 - 746.17 / - - / Self-owned
construction
Total 2,003,932.00 396,059.43 42,790.35 - 438,849.78 / / 12,748.69 4,556.77 / /
(3). Provision for impairment of construction in progress in this period
□ Applicable √Not applicable
(4). Impairment testing of construction in progress
□ Applicable √Not applicable
Other statements
□ Applicable √Not applicable
Engineering materials
□ Applicable √Not applicable
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23. Productive biological assets
(1). Productive biological assets measured at cost
□ Applicable√Not applicable
(2). Impairment testing of productive biological assets measured at cost
□ Applicable √Not applicable
(3). Productive biological assets measured at fair value
□ Applicable √Not applicable
Other statements
□ Applicable √Not applicable
24. Oil and gas assets
(1). Situation of oil and gas assets
□ Applicable √Not applicable
(2). Impairment testing of oil and gas assets
□ Applicable √Not applicable
Other notes:
Nil
25. Right-of-use assets
(1). Situation of right-of-use assets
√Applicable □Not applicable
Unit: RMB
Buildings and
Item Land Total
structures
I. Original book value
1. Opening balance 156,539,430.45 125,879,033.69 282,418,464.14
4. Closing balance 156,539,430.45 125,879,033.69 282,418,464.14
II. Accumulated depreciation
1. Opening balance 84,334,532.18 17,210,098.12 101,544,630.30
2. Increase in the 8,236,521.95 3,291,061.29 11,527,583.24
current period
(1) Provision 8,236,521.95 3,291,061.29 11,527,583.24
4. Closing balance 92,571,054.13 20,501,159.41 113,072,213.54
III. Depreciation provision
1. Opening balance - - -
4. Closing balance - - -
IV. Book value
1. Closing book value 63,968,376.32 105,377,874.28 169,346,250.60
2. Opening book value 72,204,898.27 108,668,935.57 180,873,833.84
(2). Impairment testing of right-of-use assets
□ Applicable √Not applicable
Other notes:
Nil
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26. Intangible assets
(1). Intangible assets
√Applicable □Not applicable
Unit: RMB
Software and
Item Land use right Data resources Total
software copyright
I. Original book value
1. Opening balance 8,065,716,144.56 213,192,305.09 - 8,278,908,449.65
2. Increase in the 96,717,000.00 9,886,921.27 8,724,238.82 115,328,160.09
current period
(1) Purchase 96,717,000.00 157,461.24 - 96,874,461.24
(2) Internal R&D - 9,729,460.03 8,724,238.82 18,453,698.85
3. Decrease in the current - - - -
period
(1) Disposal - - - -
4. Closing balance 8,162,433,144.56 223,079,226.36 8,724,238.82 8,394,236,609.74
II. Accumulated amortization
1. Opening balance 1,995,851,982.75 44,671,964.94 - 2,040,523,947.69
2. Increase in the 100,699,225.03 8,229,168.87 279,175.64 109,207,569.54
current period
(1) Provision 100,699,225.03 8,229,168.87 279,175.64 109,207,569.54
3. Decrease in the - - - -
current period
(1) Disposal - - - -
4. Closing balance 2,096,551,207.78 52,901,133.81 279,175.64 2,149,731,517.23
III. Depreciation provision
1. Opening balance - - - -
4. Closing balance - - - -
IV. Book value
1. Closing book value 6,065,881,936.78 170,178,092.55 8,445,063.18 6,244,505,092.51
2. Opening book value 6,069,864,161.81 168,520,340.15 - 6,238,384,501.96
At the end of the period, the proportion of intangible assets formed through internal research
and development of the Company in the balance of intangible assets was 1.32%
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(2). Data resources confirmed as intangible assets
√Applicable □Not applicable
Unit: RMB
Self-developed data
Item Total
resources as intangible assets
I. Original book value
1. Opening balance - -
2. Increase in the current period 8,724,238.82 8,724,238.82
Including: Purchased - -
Internally developed 8,724,238.82 8,724,238.82
3. Decrease in the current period - -
4. Closing balance 8,724,238.82 8,724,238.82
II. Accumulated amortization
1. Opening balance - -
2. Increase in the current period 279,175.64 279,175.64
4. Closing balance 279,175.64 279,175.64
III. Depreciation provision
1. Opening balance - -
4. Closing balance - -
IV. Book value
1. Closing book value 8,445,063.18 8,445,063.18
2. Opening book value - -
Other notes:
Nil
(3). Fixed assets for which the land use certificate have not been obtained
□ Applicable √Not applicable
(4). Impairment testing of intangible assets
□ Applicable √Not applicable
Other notes:
□ Applicable √Not applicable
27. Goodwill
(1). Original book value of goodwill
√Applicable □Not applicable
Unit: RMB
Decrease in
Increase in the
The name of the the current
current period
invested unit or Opening period
Closing balance
matters forming balance Formed by a
goodwill business Disposal
combination
Xunchi Group 284,916,367.87 - - 284,916,367.87
Total 284,916,367.87 - - 284,916,367.87
(2). Provision for impairment of goodwill
□ Applicable √Not applicable
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(3). Relevant information on the asset group or group of asset groups where goodwill
is located
√Applicable □Not applicable
Operating Whether it
segment to was
The composition of the asset group or group of
Name which it consistent
asset groups to which it belongs and basis
belongs and with the
basis previous year
It is composed of Kuaijietong Payment Services
Co., Ltd., a subsidiary of Zhejiang Xunchi Digital
For internal
Technology Co., Ltd. Since the synergistic effect
management
of the acquisition of Xunchi Group is reflected in
purposes,
Kuaijietong the Kuaijietong's subsidiaries, the main cash flow
this group of
asset generated by the Kuaijietong's subsidiaries is Yes
asset groups
group independent of other subsidiaries of the Group,
belongs to
and the Group manages the production activities
other
of the Kuaijietong's subsidiaries independently,
segments.
so the goodwill is allocated to the Kuaijietong
asset group.
Changes in asset groups or groups of asset groups
□ Applicable √Not applicable
Other statements
√Applicable □Not applicable
In July 2022, the Group acquired 100% equity of Zhejiang Xunchi Digital Technology Co.,
Ltd. and Kuaijietong Payment Services Co., Ltd., a wholly-owned subsidiary of Zhejiang Xunchi
Digital Technology Co., Ltd. (referred to as "Xunchi Group"), resulting in a goodwill of RMB
284,916,367.87.
(4). The specific method for determining the recoverable amount
The recoverable amount is determined based on the net amount after deducting disposal
expenses from fair value
□ Applicable √Not applicable
The recoverable amount is determined based on the present value of expected future cash
flows
□ Applicable √Not applicable
Reasons for significant discrepancies between the aforementioned information and the
information used in previous year's impairment testing or external information
□ Applicable √Not applicable
Reasons for significant discrepancies between the information used in the Company's previous
year’s impairment testing and the actual situation of that year
□ Applicable √Not applicable
(5). Performance commitments and corresponding impairment of goodwill
When goodwill is formed, there is a performance commitment and the reporting period or the
previous period in the reporting period is within the performance commitment period
□ Applicable √Not applicable
Other notes:
□ Applicable √Not applicable
28. Long-term deferred expenses
√Applicable □Not applicable
Unit: RMB
Opening Increase in Amortized Other
Item Closing balance
balance the current amount in the reduction
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Semi-annual Report for 2024
period current period amount
Decoration
of
buildings 308,876,621.58 1,721,106.20 53,858,871.02 - 256,738,856.76
and
structures
Advertising
21,155,429.06 35,398.23 4,443,821.32 - 16,747,005.97
facilities
Total 330,032,050.64 1,756,504.43 58,302,692.34 - 273,485,862.73
Other notes:
Nil
29. Deferred income tax assets/ deferred income tax liabilities
(1). Deferred income tax assets having not been offset
√Applicable □Not applicable
Unit: RMB
Closing balance Opening balance
Item Deductible Deferred income Deductible Deferred income
temporary tax temporary tax
difference assets difference assets
Provision for impairment of
18,342,152.04 4,585,538.01 18,917,033.18 4,729,258.30
assets
Unrealized profits of internal
1,051,115.67 262,778.92 1,051,115.67 262,778.92
transactions
Deductible losses 27,193,584.84 6,798,396.21 26,986,391.85 6,746,597.98
Recognized but unpaid
119,357,082.99 29,839,270.75 178,820,383.73 44,705,095.94
liabilities
Overspent advertising cost 18,679,540.24 4,669,885.06 15,934,608.52 3,983,652.13
Lease liabilities 122,035,355.81 30,508,838.95 124,053,478.91 31,013,369.72
Asset-related government
79,879,800.00 19,969,950.00 79,879,800.00 19,969,950.00
grants
Changes in fair value of other
120,296,259.64 30,074,064.91 118,020,122.13 29,505,030.53
non-current financial assets
Changes in fair value of
held-for-trading financial - - 2,276,137.50 569,034.38
assets
Total 506,834,891.23 126,708,722.81 565,939,071.49 141,484,767.90
(2). Deferred income tax liabilities having not been offset
√Applicable □Not applicable
Unit: RMB
Closing balance Opening balance
Item Taxable Taxable
Deferred income Deferred income
temporary temporary
tax liabilities tax liabilities
difference difference
Asset evaluation appreciation
for business combinations not 18,953,209.16 4,738,302.29 22,521,198.48 5,630,299.60
under common control
Change in fair value of other
2,017,674.80 504,418.70 3,271,948.17 817,987.04
equity instruments investment
Changes in the fair value of
other non-current financial 310,386,559.32 77,596,639.83 310,386,559.36 77,596,639.84
assets
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Right-of-use assets 100,718,234.96 25,179,558.74 104,511,421.24 26,127,855.31
Total 432,075,678.24 108,018,919.56 440,691,127.25 110,172,781.79
(3). Deferred tax assets or liabilities presented as net amount after offsetting
√Applicable □Not applicable
Unit: RMB
Offset amount
Closing Opening
Deferred between
balance of balance of
income tax deferred
deferred deferred
assets and income tax
Item income tax income tax
liabilities offset assets and
assets or assets or
at the end of liabilities at the
liabilities after liabilities after
the period beginning of
offsetting offsetting
the period
Deferred income tax 25,179,558.74 101,529,164.07 26,127,855.31 115,356,912.59
assets
Deferred income tax 25,179,558.74 82,839,360.82 26,127,855.31 84,044,926.48
liabilities
(4). Details of unconfirmed deferred tax assets
√Applicable □Not applicable
Unit: RMB
Item Closing balance Opening balance
Deductible temporary 482,627,092.06 462,360,964.70
difference
Deductible losses 826,067,540.48 933,593,373.14
Total 1,308,694,632.54 1,395,954,337.84
(5). The deductible losses of unconfirmed deferred tax assets will expire in the
following year
√Applicable □Not applicable
Unit: RMB
Year Closing amount Opening amount REMARKS
2024 - 160,812,048.37
2025 197,127,086.32 205,661,578.38
2026 208,744,327.07 227,475,259.53
2027 165,375,700.71 165,825,700.71
2028 152,256,135.84 173,818,786.15
2029 102,564,290.54 -
Total 826,067,540.48 933,593,373.14 /
Other notes:
√Applicable □Not applicable
The Group believes that the above temporary differences in fixed asset depreciation, asset
impairment provisions, and deductible losses of some subsidiaries can be offset in the
foreseeable future, and it is expected that the Group will have sufficient pre-tax profits to offset
135 / 213
Semi-annual Report for 2024
during the reversal period. Therefore, the Group deemed it necessary to recognize the above
deferred income tax assets.
30. Other non-current assets
√Applicable □Not applicable
Unit: RMB
Closing balance Opening balance
Item 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
Total 138,253,316.00 - 138,253,316.00 138,253,316.00 - 138,253,316.00
Other notes:
Nil
31. Assets with restricted ownership or usage rights
√Applicable □Not applicable
Unit: RMB
Closing amount Opening amount
Book Book value Restric Restric Book Book value Restric Restric
Item balance tion tion balance tion tion
type situatio type situatio
n n
Cash
and
16,594,295. 16,594,295. Pledge [Note 12,556,381. 12,556,381. Pledge [Note
cash
29 29 d 2] 42 42 d 2]
equival
ents
Inventor 8,925,585.7 8,925,585.7 [Note 8,925,585.7 8,925,585.7 [Note
Seized Seized
ies 7 7 3] 7 7 3]
Long-te
rm
102,918,559 102,918,559 [Note 102,918,559 102,918,559 [Note
equity Frozen Frozen
.00 .00 4] .00 .00 4]
investm
ent
Other
non-cur
631,520,588 631,520,588 [Note 631,520,588 631,520,588 [Note
rent Frozen Frozen
.85 .85 4] .85 .85 4]
financia
l assets
Other
399,764,547 399,764,547 Pledge [Note 313,869,496 313,869,496 Pledge [Note
current
.68 .68 d 5] .74 .74 d 5]
assets
1,159,723,5 1,159,723,5 1,069,790,6 1,069,790,6
Total / / / /
76.59 76.59 11.78 11.78
Other notes:
Note 2: As of June 30, 2024, the ownership or use rights of bank deposits with a book value
of RMB 6,888,542.08 (December 31, 2023: RMB 3,888,542.08) were restricted as a risk
margin for express payment business. As of June 30, 2024, bank deposits with a book value
136 / 213
Semi-annual Report for 2024
of RMB 7,220,000.00 (December 31, 2023: RMB 7,220,000.00) were used as a performance
bond for the civil defense project of the hotel plot of the Yiwu Global Digital Free Trade Center
project. As of June 30, 2024, bank deposits with a book value of RMB 2,485,753.21
(December 31, 2023: RMB 1,447,839.34) were used as special funds for S3 Logistics Park
and Yidongbei Engineering Project, and the ownership or use rights were restricted.
Note 3: As of June 30, 2024, inventory with a book value of RMB 8,925,585.77 (December
31, 2023: RMB 8,925,585.77) was seized by the court due to litigation.
Note 4: As of June 30, 2024, long-term equity investments with a book value of RMB
102,918,559.00 (December 31, 2023: RMB 102,918,559.00) and other non-current financial
assets with a book value of RMB 631,520,588.85 (December 31, 2023: RMB 621,447,424.37)
were frozen by the Second Intermediate People's Court of Shanghai.
Note 5: As of June 30, 2024, the payment business reserve fund with a book value of RMB
399,764,547.68 (December 31, 2023: RMB 313,869,496.74) was established by the Company
in accordance with the "Administrative Measures for Payment Services of Non-financial
Institutions" and "Measures for the Custody of Customer Reserve Funds of Payment
Institutions" Bank special deposit account. The scope of funds stored and received by the
Company through the customer reserve account includes funds received from bank card
acquiring business, third-party payment convenience service business, credit card repayment
business, credit payment settlement business, and other part of the Company's business.
32. Short-term borrowings
(1). Classification of short-term borrowings
√Applicable □Not applicable
Unit: RMB
Item Closing balance Opening balance
Credit loans 1,351,119,861.12 1,619,804,888.91
Total 1,351,119,861.12 1,619,804,888.91
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, 2024, the annual interest rate of the above-mentioned loan was 2.85%
-3.75% (December 31, 2023: 2.95% -3.75%).
33. Held-for-trading financial liabilities
□ Applicable √Not applicable
Other notes:
□ Applicable √Not applicable
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34. Derivative financial liabilities
□ Applicable √Not applicable
35. Notes Payable
□ Applicable √Not applicable
36. Accounts payable
(1). Presentation of accounts payable
√Applicable □Not applicable
Unit: RMB
Item Closing balance Opening balance
Accounts payable for 723,773,900.73 1,158,111,539.96
market and auxiliary works
projects
Accounts payable for 363,270,622.04 180,132,641.98
logistics park projects
Trade payables 33,523,711.13 12,022,684.89
Accounts payable for 31,436,663.10 29,601,176.89
procurement for the hotel
project
Others 13,257,496.64 10,386,805.55
Total 1,165,262,393.64 1,390,254,849.27
(2). Important accounts payable with an aging of over 1 year or overdue
□ Applicable √Not applicable
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. Advance receipts
(1). Presentation of advance receipts
√Applicable □Not applicable
Unit: RMB
Item Closing balance Opening balance
Advance receipts for rent 200,663,041.24 224,790,926.84
Advance receipts of 159,508,936.00 373,307,194.00
merchant payment
Others 1,716,059.74 4,266,275.80
Total 361,888,036.98 602,364,396.64
(2). Significant advance receipts with more than one year of account aging
□ Applicable √Not applicable
(3). The amount and reasons for significant changes in book value during the reporting
period
□ Applicable √Not applicable
Other notes:
√Applicable □Not applicable
138 / 213
Semi-annual Report for 2024
Due to the fact that advances received mainly come from advance receipts of merchant
payment and advance receipts for rent, with relatively small individual amounts, there were no
single large advance receipts with an aging of more than 1 year as of June 30, 2024.
38. Contract liabilities
(1). Contract liabilities
√Applicable □Not applicable
Unit: RMB
Item Closing balance Opening balance
Advance receipts for use fee 2,074,881,218.36 3,034,398,081.66
of shops
Advance receipts for goods 1,320,149,723.80 820,058,121.03
Advance receipts for 225,874,136.31 141,534,555.46
advertising fee
Advance receipts for use fee 14,272,150.22 16,677,298.52
of networking cables
Advance receipts for loyalty 8,653,840.53 9,350,894.14
ofbrands
Advance receipts for 2,718,107.75 5,090,581.43
housing purchase
Others 47,478,104.47 39,470,433.49
Total 3,694,027,281.44 4,066,579,965.73
(2). Significant contractual liabilities with an aging of over 1 year
□ Applicable √Not applicable
(3). The amount and reasons for significant changes in book value during the reporting
period
□ Applicable √Not applicable
Other notes:
□ Applicable √Not applicable
39. Employee compensation payable
(1). Employee compensation payable
√Applicable □Not applicable
Unit: RMB
Opening Increase in the Decrease in the
Item Closing balance
balance current period current period
I. Short-term compensation 148,095,620.61 149,939,393.71 280,252,616.64 17,782,397.68
II. Post employment benefits – 377,637.93 19,026,147.00 19,403,784.93 -
defined contribution plan
III. Severance benefits - 1,489,922.83 1,489,922.83 -
Total 148,473,258.54 170,455,463.54 301,146,324.40 17,782,397.68
(2). List 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 147,806,727.99 108,739,134.21 239,260,702.08 17,285,160.12
subsidy
2. Employee benefits - 12,060,825.36 12,060,825.36 -
3. Social security contribution 167,642.26 11,320,564.21 11,488,206.47 -
Including: contribution to 80,149.81 10,795,907.38 10,876,057.19 -
139 / 213
Semi-annual Report for 2024
medical insurance scheme
Contribution to 57,937.54 500,135.98 558,073.52 -
work-related injury insurance
scheme
Contribution to maternity 29,554.91 24,520.85 54,075.76 -
insurance scheme
4. Housing provident fund 82,804.00 13,180,360.00 13,263,164.00 -
5. Contribution to trade union 38,446.36 4,638,509.93 4,179,718.73 497,237.56
fund and employee education
fund
Total 148,095,620.61 149,939,393.71 280,252,616.64 17,782,397.68
(3). List of defined contribution plans
√Applicable □Not applicable
Unit: RMB
Opening Increase in the Decrease in the Closing
Item
balance current period current period balance
1. Contribution to the 363,602.60 18,401,069.99 18,764,672.59 -
basic endowment
insurance scheme
2. Contribution to the 14,035.33 625,077.01 639,112.34 -
unemployment insurance
scheme
Total 377,637.93 19,026,147.00 19,403,784.93 -
Other notes:
□ Applicable √Not applicable
40. Taxes payable
√Applicable □Not applicable
Unit: RMB
Item Closing balance Opening balance
VAT 4,759,020.66 12,041,528.84
Corporate income tax 288,646,508.24 179,050,896.50
Individual income tax 2,927,670.03 1,153,545.22
Urban maintenance and 66,045.87 101,195.78
construction tax
Real estate tax 46,043,137.45 86,296,272.76
Land use tax 33,163,195.39 67,659,355.62
Others 438,997.73 1,882,454.99
Total 376,044,575.37 348,185,249.71
Other notes:
As of June 30, 2024, the details of the main taxes prepaid by the Group are as follows:
Currency: RMB
Item Qiantang Occident Center Total amount of
Impression Real Real Estate prepaid tax
Estate Project Project
Business tax 240,013.55 - 240,013.55
Urban maintenance and
- 731,793.32 731,793.32
construction tax
Land appreciation tax 247,373.48 247,373.48
Education surcharge and local
- 522,709.51 522,709.51
education surcharge
Total 240,013.55 1,501,876.31 1,741,889.86
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Semi-annual Report for 2024
41. Other payables
(1). Presentation of items
√Applicable □Not applicable
Unit: RMB
Item Closing balance Opening balance
Dividend payable 608,684,665.60 -
Other payables 1,679,405,527.45 1,862,720,723.00
Total 2,288,090,193.05 1,862,720,723.00
(2). Interest payable
□ Applicable √Not applicable
(3). Dividends payable
√Applicable □Not applicable
Unit: RMB
Item Closing balance Opening balance
Common stock dividends 608,684,665.60 -
Total 608,684,665.60 -
Other explanations, for important dividends payable that have not been paid for more than one
year, include disclosure of the reasons for non-payment:
Nil
(4). Other payables
Presentation of other payables by nature
√Applicable □Not applicable
Unit: RMB
Item Closing balance Opening balance
Pending investment refunds 919,120,810.37 977,172,602.34
Withholdings and deposits 477,590,192.54 490,913,484.14
Operating expenses payable 241,603,327.27 320,135,730.30
Restricted stock incentive 40,264,267.55 74,367,173.75
plan
Others 826,929.72 131,732.47
Total 1,679,405,527.45 1,862,720,723.00
Significant other payables with an aging of over 1 year or overdue
□ Applicable √Not applicable
Other notes:
□ Applicable √Not applicable
42. Held-for-sale liabilities
□ Applicable √Not applicable
43. Non-current liabilities due within one year
√Applicable □Not applicable
Unit: RMB
Item Closing balance Opening balance
Long-term borrowings within 187,391,704.59 93,995,355.93
one year
Bonds payable due within 1 1,564,653,921.09 61,508,191.79
year
141 / 213
Semi-annual Report for 2024
Lease liabilities due within 1 15,900,074.02 23,637,246.52
year
Total 1,767,945,699.70 179,140,794.24
Other notes:
Nil
44. Other current liabilities
√Applicable □Not applicable
Unit: RMB
Item Closing balance Opening balance
Short-term financing notes 3,029,408,685.78 3,025,604,467.02
payable
Payment business 424,950,326.79 360,157,213.40
transactions
Deferred output tax liability 120,478,684.35 124,426,245.96
Dividend payable to 2,653,400.82 2,653,400.82
to-be-recognized accounts
Dividend announced but not 2,083,112.65 2,083,112.65
collected before listing
Total 3,579,574,210.39 3,514,924,439.85
142 / 213
Semi-annual Report for 2024
Changes in short-term bonds payable:
√Applicable □Not applicable
Unit: RMB
Interest
Coupon Issue in the Repayment in the Whethe
Face Issuing Bond Issuing Opening accrued Premium/discount
Bond name rate current period current period Closing balance it was
value date term amount balance based on face amortization
(%) overdu
value
Super-short-term Jun
269
commercial 100 2.68 20, 1,000,000,000.00 1,014,109,474.89 - 5,379,459.54 208,333.33 1,019,697,267.76 - N
days
paper 2023
Super-short-term Sep
210
commercial 100 2.72 13, 1,000,000,000.00 1,007,838,592.80 - 7,409,297.11 358,667.47 1,015,606,557.38 - N
days
paper 2023
Super-short-term
Nov 8, 268
commercial 100 2.78 1,000,000,000.00 1,003,656,399.33 - 13,812,806.35 369,045.69 - 1,017,838,251.37 N
2023 days
paper
Super-short-term Mar
268
commercial 100 2.40 13, 1,000,000,000.00 - 1,000,000,000.00 7,213,114.75 305,555.55 - 1,006,774,225.86 N
days
paper 2024
Super-short-term
Apr 9, 261
commercial 100 2.33 1,000,000,000.00 - 1,000,000,000.00 5,283,879.78 227,397.26 - 1,004,796,208.55 N
2024 days
paper
Total / / / / 5,000,000,000.00 3,025,604,467.02 2,000,000,000.00 39,098,557.53 1,468,999.30 2,035,303,825.14 3,029,408,685.78
Other notes:
□ Applicable √Not applicable
143 / 213
Semi-annual Report for 2024
45. Long-term borrowings
(1). Classification of long-term borrowings
√Applicable □Not applicable
Unit: RMB
Item Closing balance Opening balance
Credit loans 1,095,171,767.62 956,794,218.96
Long-term borrowings due -187,391,704.59 -93,995,355.93
within one year
Total 907,780,063.03 862,798,863.03
Notes on the classification of long-term borrowings:
Nil
Other statements
√Applicable □Not applicable
As of June 30, 2024, the annual interest rate of the above-mentioned loan was
2.55%-3.00% (December 31, 2023: 2.70%-3.20%).
46. Payable bonds
(1). Payable bonds
√Applicable □Not applicable
Unit: RMB
Item Closing balance Opening balance
Bonds payable 3,564,052,843.32 3,559,960,676.26
Bonds payable due within one -1,564,653,921.09 -61,508,191.79
year
Total 1,999,398,922.23 3,498,452,484.47
144 / 213
Semi-annual Report for 2024
(2). Specific situation of payable bonds: (excluding preferred stocks, perpetual bonds, and other financial instruments classified as
financial liabilities)
√Applicable □Not applicable
Unit: RMB
Repa
ymen
t in Whet
Premium/di
Face Interest the Transfer to bonds her it
Bond Coupon Bond scount
value Issuing date Issuing amount Opening balance accrued based curre due within one Closing balance was
name rate (%) term amortizatio
(RMB) on face value nt year overd
n
perio ue
d
Feb 24, 3 - 1,011,172,476.35 -
MTN 100 3.29 1,000,000,000.00 999,543,046.26 11,447,397.26 182,032.83 No
2022 years
Mar 29, 3 - 504,441,883.10 -
MTN 100 3.57 500,000,000.00 499,754,132.13 4,596,986.30 90,764.67 No
2022 years
July 20, 3 - 14,219,178.08
MTN 100 3.00 500,000,000.00 499,699,270.69 14,219,178.08 91,278.13 499,790,548.82 No
2022 years
Corporate 3 - 19,189,479.45
100 2.88 Sep 1, 2022 800,000,000.00 799,714,114.98 19,189,479.45 81,287.56 799,795,402.54 No
bonds years
Corporate Sep 22, 3 - 15,630,904.11
100 2.88 700,000,000.00 699,741,920.41 15,630,904.11 71,050.46 699,812,970.87 No
bonds 2022 years
Total / / / / 3,500,000,000.00 3,498,452,484.47 65,083,945.20 516,413.65 - 1,564,653,921.09 1,999,398,922.23 /
(3). Description of convertible corporate bonds
□ Applicable √Not applicable
Accounting treatment and judgment basis for equity conversion
□ Applicable √Not applicable
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Semi-annual Report for 2024
(4). Explanation of other financial instruments classified as financial liabilities
Basic information of other financial instruments such as preferred shares and perpetual bonds
outstanding at the end of the reporting period
□ Applicable √Not applicable
Changes in other financial instruments such as preferred shares and perpetual bonds
outstanding at the end of the reporting period
□ Applicable √Not applicable
Basis for other financial instruments being classified as financial liabilities
□ Applicable √Not applicable
Other notes:
□ Applicable √Not applicable
47. Lease liabilities
√Applicable □Not applicable
Unit: RMB
Item Closing balance Opening balance
Undiscounted amount of finance 280,220,129.27 295,896,757.48
lease payables
Unrecognized financing charges -84,087,663.31 -95,427,304.70
Lease liabilities due within 1 year -15,900,074.02 -23,637,246.52
Total 180,232,391.94 176,832,206.26
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 payables
Presentation of items
□ Applicable √Not applicable
Long-term payables
□ Applicable √Not applicable
Special accounts payable
□ Applicable √Not applicable
49. Long-term employee compensation payable
□ Applicable √Not applicable
50. Estimated liabilities
□ Applicable √Not applicable
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Semi-annual Report for 2024
51. Deferred income
Overview of deferred income
√Applicable □Not applicable
Unit: RMB
Increase in Decrease in
Opening Closing Cause of
Item the current the current
balance balance formation
period period
Asset-related
government 160,432,656.23 - 7,589,275.14 152,843,381.09
grants
Total 160,432,656.23 - 7,589,275.14 152,843,381.09 /
Other notes:
□ Applicable √Not applicable
52. Other non-current liabilities
□ Applicable √Not applicable
53. Share capital
√Applicable □Not applicable
Unit: RMB
Increase or decrease in the
Opening balance current period (+, -) Closing balance
Others Sub-total
Total number of 5,484,334,176.00 - - 5,484,334,176.00
shares
Other notes:
Nil
54. Other equity instruments
(1) Basic information of other financial instruments such as preferred stocks and
perpetual bonds outstanding at the end of the period
□ Applicable √Not applicable
(2) Statement of changes in financial instruments such as preferred stocks and
perpetual bonds outstanding at the end of the 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
147 / 213
Semi-annual Report for 2024
55. Capital reserve
√Applicable □Not applicable
Unit: RMB
Increase in the Decrease in the
Item Opening balance Closing balance
current period current period
Capital surplus
(share 1,576,915,195.61 26,939,682.00 - 1,603,854,877.61
premium)
Stock incentive 49,272,885.07 3,769,054.85 26,939,682.00 26,102,257.92
Other capital
40,694,006.92 - - 40,694,006.92
reserve
Total 1,666,882,087.60 30,708,736.85 26,939,682.00 1,670,651,142.45
Other notes including those on the changes in the current period and the reasons therefor:
This year, the Group unlocked some restricted stocks. The corresponding capital reserve
for the unlocking of restricted shares was RMB 26,939,682.00.
The confirmed share-based payment expense for this year was RMB 3,769,054.85, which
was included in the capital reserve.
56. Treasury stocks
√Applicable □Not applicable
Unit: RMB
Increase in the Decrease in the
Item Opening balance Closing balance
current period current period
Restricted stock
74,367,173.75 - 34,102,906.20 40,264,267.55
incentive plan
Total 74,367,173.75 - 34,102,906.20 40,264,267.55
Other notes including those on the changes in the current period and the reasons therefor:
This year, the Group unlocked some restricted stocks. The corresponding decrease in
treasury shares for the unlocking of restricted shares was RMB 34,102,906.20.
57. Other comprehensive income
√Applicable □Not applicable
Unit: RMB
Amount in the current period
Amount before Amount after
Opening
Item tax incurred in Less: income tax attributable Closing balance
balance
the current tax to the parent
period company
I. Other comprehensive
income that cannot be
2,453,961.13 -1,254,273.38 -313,568.35 -940,705.04 1,513,256.09
reclassified into profit or
loss
Change in fair value of
other equity instruments 2,453,961.13 -1,254,273.38 -313,568.35 -940,705.04 1,513,256.09
investment
II. Other comprehensive
income to be reclassified 20,940,736.19 2,423,498.04 - 2,423,498.04 23,364,234.23
into profit or loss
Other comprehensive
income that can be
4,945,544.14 217,103.05 - 217,103.05 5,162,647.19
transferred into profit and
loss under equity method
Difference arising from the
15,995,192.05 2,206,394.99 - 2,206,394.99 18,201,587.04
translation of foreign
148 / 213
Semi-annual Report for 2024
currency financial
statements
Total other comprehensive
23,394,697.32 1,169,224.66 -313,568.35 1,482,793.00 24,877,490.32
income
Other notes, including those on the adjustment of the initially recognized amount of hedged
items converted from the effective part of gains or losses from cash flow hedging:
Nil
58. Special reserves
□ Applicable √Not applicable
59. Surplus reserve
√Applicable □Not applicable
Unit: RMB
Item Opening balance Increase in the Decrease in the Closing balance
current period current period
Statutory 1,827,766,734.43 - - 1,827,766,734.43
surplus reserve
Discretionary 40,195,855.68 - - 40,195,855.68
surplus reserve
Others 11,688,840.91 - - 11,688,840.91
Total 1,879,651,431.02 - - 1,879,651,431.02
Notes on surplus reserves, including those on the changes in the current period and the
reasons therefor:
Nil
60. Undistributed profit
√Applicable □Not applicable
Unit: RMB
Item Current period Previous year
Undistributed profits at the end of the 8,703,604,953.04 6,651,440,591.35
previous reporting period before adjustment
Opening undistributed profits after 8,703,604,953.04 6,651,440,591.35
adjustment
Add: net profits attributable to shareholders 1,447,982,745.49 2,676,182,133.26
of the parent company in the current period
Less: withdrawal of statutory surplus reserve - 263,568,294.29
General risk reserve - 3,854,655.84
Common share dividend payable 1,096,866,835.20 356,594,821.44
Closing undistributed profits 9,054,720,863.33 8,703,604,953.04
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 RMB 0.
2.The opening undistributed profits affected by the changes in accounting policies amounted to
RMB 0.
3. The opening undistributed profits affected by the correction of major accounting errors
amounted to RMB 0.
4. The opening undistributed profits affected by changes in the scope of mergers caused by
common control amounted to RMB 0.
5. The opening undistributed profits affected by other adjustments together amounted to RMB
0.
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Semi-annual Report for 2024
61. Operating revenue and operating cost
(1). Overview of operating revenue and operating cost
√Applicable □Not applicable
Unit: RMB
Amount in the prior corresponding
Amount in the current period
Item period
Revenue Cost of sales Revenue Cost of sales
Main 6,596,681,432.31 4,485,665,686.10 4,981,391,903.99 3,497,747,787.03
businesses
Other 169,252,704.82 42,229,662.02 179,599,139.26 84,762,663.32
businesses
Total 6,765,934,137.13 4,527,895,348.12 5,160,991,043.25 3,582,510,450.35
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(2). Breakdown information of operating revenue and operating costs
√Applicable □Not applicable
Unit: RMB
Total
Classified by type of contract
Operating revenue Operating cost
By Industry type
Market operation 2,269,320,902.37 412,933,423.81
Trade services 370,849,952.74 81,210,859.23
Supporting services 231,045,537.97 170,312,418.96
Product sales 3,894,717,744.05 3,863,438,646.12
By business region
Chinese Mainland 6,648,328,598.74 4,425,255,978.59
Overseas 117,605,538.39 102,639,369.53
By the time of transfer of goods
Recognizing revenue at a certain point in time 4,162,174,451.35 3,956,556,265.15
Recognizing revenue during a certain period of 2,603,759,685.78 571,339,082.97
time
Total 6,765,934,137.13 4,527,895,348.12
Other statements
√Applicable □Not applicable
The income recognized in the current year and included in the opening book value of
contractual liabilities is as follows:
Unit: RMB
Industry type Current period
Market operation 2,144,527,009.14
Trade services 185,397,616.77
Supporting services 39,122,342.26
Sales of goods 820,058,121.03
Total 3,189,105,089.20
(3). Contract performance obligations
√Applicable □Not applicable
Unit: RMB
The types of
Whether Payments
Nature of the quality
Time for the borne by the
goods that the assurance
fulfilling Important Company Company that
Item Company provided by
performance payment terms is the main will be
promises to the Company
obligations responsibl refunded to
transfer and related
e person customers
obligations
Advance
When payment or right
Sales of Trade retail
delivering to receive Yes - Nil
goods goods
goods payment after
delivery of goods
Part of the
deposit will be
The use of
collected in Shop use right
shops in Yiwu When
advance, and / supporting
Market and its providing Yes - Nil
the remaining services for
supporting services
amount will be operation
services
collected upon
completion of the
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Semi-annual Report for 2024
performance
Hotel When Collection upon Hotel
accommodati providing completion of accommodatio Yes - Nil
on business services performance n service
Upon
Collection upon
Hotel catering completion Catering
completion of Yes - Nil
business of the services
performance
service
Terminable When
Regular
paid use of providing Fund sources Yes - Nil
collection
funds services services
Total / / / / - /
(4). Explanation of allocation to remaining contract performance obligations
□ Applicable √Not applicable
(5). Significant contract changes or significant transaction price adjustments
□ Applicable √Not applicable
Other notes:
In January-June 2024, there was no revenue recognized in this period for performance
obligations already fulfilled (or partially fulfilled) in the previous period.
62. Taxes and surcharges
√Applicable □Not applicable
Unit: RMB
Amount in the current period Amount in the prior
Item
corresponding period
Real estate tax 63,375,167.44 59,770,011.60
Land use tax 9,521,117.83 -20,871,643.50
Stamp duty 3,876,045.62 2,760,376.78
Urban maintenance and 3,481,163.04 2,592,625.45
construction tax
Education surcharge 1,431,100.14 1,111,245.71
Local education surcharge 954,066.68 740,831.51
Cultural undertaking 352,418.59 285,127.01
development fee
Vehicle and vessel use tax 2,040.00 1,380.00
Land appreciation tax - 303,673.11
Consumption tax - 56.64
Total 82,993,119.34 46,693,684.31
Other notes:
Nil
63. sales expense
√Applicable □Not applicable
Unit: RMB
Amount in the current Amount in the prior
Item
period corresponding period
Marketing expenses 58,655,407.13 44,804,065.01
Security and insurance expenses 14,881,145.37 16,637,122.08
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Advertising expenses 11,813,472.20 8,817,741.95
Water, electricity and fuel expenses 3,714,266.39 3,001,783.95
Depreciation and amortization 456,351.72 68,097.07
Others 2,685,502.17 4,434,858.43
Total 92,206,144.98 77,763,668.49
Other notes:
Nil
64. Management costs
√Applicable □Not applicable
Unit: RMB
Item Amount in the current Amount in the prior
period corresponding period
Employee and uniform expenses 131,154,974.85 167,894,577.09
Depreciation and amortization 67,190,228.01 73,931,835.81
Office expenses 5,094,467.96 5,162,481.69
Intermediary expenses 4,253,052.99 5,181,120.84
Travel expenses 2,716,793.06 3,181,309.38
Promotion and market traders 122,347.60 174,131.61
introduction expenses
Start-up fee 22,094.75 61,043.87
Others 7,584,991.96 12,312,567.93
Total 218,138,951.18 267,899,068.22
Other notes:
Nil
65. Research and development expenses
√Applicable □Not applicable
Unit: RMB
Item Amount in the current Amount in the prior
period corresponding period
Labor cost 9,080,982.23 7,187,298.15
Technology R&D expenses 2,517,921.67 3,114,081.41
Depreciation and amortization 41,306.12 93,741.44
Others 118,996.62 129,128.20
Total 11,759,206.64 10,524,249.20
Other notes:
Nil
66. Financial expenses
√Applicable □Not applicable
Unit: RMB
Item Amount in the current Amount in the prior
period corresponding period
Interest expenses 120,646,122.86 125,445,414.65
Amortization of short-term commercial 1,860,172.07 1,974,371.03
paper discount
Less: interest income 23,637,669.49 38,139,798.22
Less:capitalized amount of interest 51,962,221.53 35,577,046.98
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Foreign exchange gains or losses -555,504.48 -6,265,717.17
Amortization of unrecognized financing 5,402,522.51 5,893,167.81
expenses
Others 1,817,809.40 273,509.77
Total 53,571,231.34 53,603,900.89
Other notes:
The capitalized amount of borrowing costs has been included in inventory and construction in
progress.
67. Other income
√Applicable □Not applicable
Unit: RMB
Classified by nature Amount in the current Amount in the prior
period corresponding period
Government subsidies related to daily 11,178,944.81 14,631,536.76
activities
Total 11,178,944.81 14,631,536.76
Other notes:
Nil
68. Investment income
√Applicable □Not applicable
Unit: RMB
Amount in the prior
Amount in the
Item corresponding
current period
period
Income from long-term equity investment 98,348,751.52 1,017,671,762.53
calculated with the equity method
Investment income from disposal of long-term - 11,475,509.19
equity investment
Interest income from debt investment during 1,258,704.40 1,252,476.06
holding period
Investment income from disposal of - 1,763,697.53
held-for-trading financial assets
Investment income from disposal of wealth - 31,995.58
management products
Income acquired from other non-current financial 9,368,068.09 2,110,591.00
assets during the holding period
Investment income from disposal of other -978,877.07 -805,917.38
non-current financial assets
Total 107,996,646.94 1,033,500,114.51
Other notes:
Nil
69. Net exposure hedging income
□ Applicable √Not applicable
70. Gains from changes in fair value
√Applicable □Not applicable
Unit: RMB
Sources of income from changes Amount in the current Amount in the prior
in fair value period corresponding period
Held-for-trading financial assets -3,490,077.50 2,123,980.00
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Semi-annual Report for 2024
Other non-current financial assets - -9,305,911.08
Total -3,490,077.50 -7,181,931.08
Other notes:
Nil
71. Credit impairment loss
√Applicable □Not applicable
Unit: RMB
Amount in the current Amount in the prior
Item
period corresponding period
Bad debt loss of accounts receivable 43,838.62 529,746.89
Loss for bad debts of other 15,566.09 19,170.96
receivables
Total 59,404.71 548,917.85
Other notes:
Nil
72. Asset impairment loss
□ Applicable √Not applicable
73. Asset disposal income
√Applicable □Not applicable
Unit: RMB
Item Amount in the current period Amount in the prior
corresponding period
Income from disposal of 84.36 165,883,894.78
property, plant and
equipment
Total 84.36 165,883,894.78
Other notes:
□ Applicable √Not applicable
74. Non-operating income
√Applicable □Not applicable
Unit: RMB
Amount recognized in
Amount in the current Amount in the prior non-recurring gains
Item
period corresponding period and losses for the
current period
Incomes from 14,453,216.26 2,515,430.08 14,453,216.26
liquidated damages
Others 1,803,253.72 596,279.55 1,803,253.72
Total 16,256,469.98 3,111,709.63 16,256,469.98
Other notes:
□ Applicable √Not applicable
75. Non operating expenditure
√Applicable □Not applicable
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Unit: RMB
Amount in the Amount recognized in
Amount in the prior non-recurring gains
Item
current period corresponding and losses for the
period current period
Total loss for disposal of 111,979.20 108,245.71 111,979.20
non-current assets
Including: loss for disposal of 111,979.20 108,245.71 111,979.20
property, plant and equipment
Others 1,288,784.77 89,722.64 1,288,784.77
Total 1,400,763.97 197,968.35 1,400,763.97
Other notes:
Nil
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76. Income tax expense
(1) Table of income tax expenses
√Applicable □Not applicable
Unit: RMB
Amount in the prior
Item Amount in the current period
corresponding period
Current income tax expenses 446,616,915.76 319,963,973.46
Deferred income tax expenses 12,935,751.21 11,673,848.56
Total 459,552,666.97 331,637,822.02
(2) Adjustment process of accounting profits and income tax expenses
√Applicable □Not applicable
Unit: RMB
Item Amount in the current
period
Profits before tax 1,909,970,844.86
Income tax expenses calculated at the statutory/applicable tax rate 477,492,711.22
Impact of different tax rates applied by subsidiaries -6,214,759.16
Effect of adjusting income tax of previous period 3,010,152.95
Effect of non-taxable income -4,243,741.15
Effect of non-deductible costs, expenses and losses -4,566,285.00
Effect of using deductible losses of unrecognized deferred income tax -6,979,296.66
assets in previous period
Effect of deductible temporary differences or deductible losses of 25,641,072.64
unrecognized deferred income tax assets in the current period
Profits or losses attributable to joint ventures and associates -24,587,187.87
Income tax expenses 459,552,666.97
Other notes:
□ Applicable √Not applicable
77. Other comprehensive income
√Applicable □Not applicable
For details, please refer to Note 57. Other comprehensive income
78. Cash flow statement items
(1). Cash related to operating activities
Other cash receipts relating to operating activities
√Applicable □Not applicable
Unit: RMB
Item Amount in the current period Amount in the prior
corresponding period
Deposit and margin received 99,768,071.94 82,617,679.95
Bank deposit interest income 38,139,798.22
received 23,637,669.49
Government grants received 3,128,471.15 64,401,761.02
Bank reserve received - 1,930,508.43
Others 775,086.85 861,796.06
Total 127,309,299.43 187,951,543.68
Notes on other cash receipts relating to operating activities:
Nil
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Semi-annual Report for 2024
Other cash payments relating to operating activities
√Applicable □Not applicable
Unit: RMB
Item Amount in the current period Amount in the prior
corresponding period
Fees paid 163,115,497.55 137,806,934.75
Margins paid 68,812,485.01 115,118,650.38
Bank reserve paid 9,828,318.72 -
Others 2,428,632.09 4,355,093.88
Total 244,184,933.37 257,280,679.01
Notes on other cash payments relating to operating activities:
Nil
(2). Cash related to investment activities
Cash received related to important investment activities
□ Applicable √Not applicable
Cash paid related to important investment activities
□ Applicable √Not applicable
Other cash receipts relating to investing activities
√Applicable □Not applicable
Unit: RMB
Item Amount in the Amount in the prior
current period corresponding period
Recovered pending investment refunds 6,842,944.87 -
Financial assistance received from joint ventures 501,750,200.00
and their subsidiaries -
Total 6,842,944.87 501,750,200.00
Notes on other cash receipts relating to investing activities:
Nil
Other cash payments relating to investing activities
√Applicable □Not applicable
Unit: RMB
Item Amount in the current period Amount in the prior
corresponding period
Payment of financial assistance 11,553,412.19
funds -
Total - 11,553,412.19
Other cash paid related to investment activities:
Nil
(3). Cash related to financing activities
Other cash receipts relating to financing activities
□ Applicable √Not applicable
Other cash payments relating to financing activities
√Applicable □Not applicable
Unit: RMB
Item Amount in the current period Amount in the prior
corresponding period
Lease payments paid 8,350,298.44 14,105,217.90
Total 8,350,298.44 14,105,217.90
Other cash paid related to financing activities:
Nil
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Semi-annual Report for 2024
Changes in liabilities arising from financing activities
√Applicable □Not applicable
Unit: RMB
Increase in the current period Decrease in the current period
Item Opening balance Cash changes Non-cash Cash changes Non-cash changes Closing balance
changes
Short-term borrowings 1,619,804,888.91 1,150,000,000.00 17,613,194.43 1,436,298,222.22 - 1,351,119,861.12
Non-current liabilities due - 1,671,761,851.02 82,956,945.56 - 1,767,945,699.70
within one year 179,140,794.24
Other current liabilities 3,025,604,467.02 1,998,540,487.07 40,567,556.83 2,035,303,825.14 - 3,029,408,685.78
Long-term borrowings 862,798,863.03 161,000,000.00 - - 116,018,800.00 907,780,063.03
Bonds payable 3,498,452,484.47 - 65,600,358.85 - 1,564,653,921.09 1,999,398,922.23
Lease liabilities 176,832,206.26 - 23,090,125.51 8,350,298.44 11,339,641.39 180,232,391.94
Total 9,362,633,703.93 3,309,540,487.07 1,818,633,086.64 3,562,909,291.36 1,692,012,362.48 9,235,885,623.80
(4). Description of cash flows reported on a net basis
□ Applicable √Not applicable
(5). Significant activities and financial impacts that do not involve current cash inflows and outflows but affect the financial condition of the
enterprise or may affect the cash flow of the enterprise in the future
□ Applicable √Not applicable
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79. Supplementary information to the statement of cash flows
(1). Supplementary information to the statement of cash flows
√Applicable □Not applicable
Unit: RMB
Amount in the prior
Amount in the
Supplements corresponding
current period
period
1. Adjustment of net profit to cash flow from operating activities:
Net profits 1,450,418,177.89 2,000,654,473.87
Add: provision for impairment of assets - -
Loss of impairment of credit -59,404.71 -548,917.85
Depreciation of fixed assets, depletion of oil and
gas assets and depreciation of bearer biological 187,680,876.93 188,468,645.61
assets
Amortization of right-of-use assets 11,527,583.24 15,937,530.77
Amortization of intangible assets 109,207,569.54 109,533,646.98
Depreciation and amortization of investment
88,915,728.05 69,501,857.47
properties
Amortization of long-term prepaid expenses 58,302,692.34 39,324,216.01
Loss from disposal of fixed assets, intangible
assets and other long-term assets (gains -84.36 -165,883,894.78
indicated by “-”)
Loss from fixed assets retirement (gains
111,979.20 108,245.71
indicated by “-”)
Loss from changes in fair value (gains indicated
3,490,077.50 7,181,931.08
by “-”)
Financial expenses (gains indicated by “-”) 75,946,595.91 97,735,906.51
Investment loss (gains indicated by “-”) -107,996,646.94 -1,050,919,439.23
Decrease in deferred income tax assets
13,827,748.52 -1,100,746.99
(increase indicated by “－”)
Increase in deferred income tax liabilities
-1,205,565.66 32,842,969.56
(decrease indicated by “－”)
Decrease in inventory (increase indicated by “－”) -649,783,571.62 106,993,100.52
Decrease in operating receivables (increase
1,005,589,280.38 -381,251,455.03
indicated by “－”)
Increase in operating payables (decrease
-2,131,609,535.38 -925,330,874.43
indicated by “－”)
Net cash flow from operating activities 114,363,500.83 143,247,195.78
2. Investment and financing activities that do not involve cash income and payment:
3. Net increase in cash and cash equivalents:
Closing balance of cash 963,102,575.65 2,164,979,668.87
Less: opening balance of cash 2,910,178,939.19 1,981,200,941.64
Add: closing balance of cash equivalents - -
Less: opening balance of cash equivalents - -
Net increase in cash and cash equivalents -1,947,076,363.54 183,778,727.23
(2). Net cash paid for acquisition of subsidiaries in this period
□ Applicable √Not applicable
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Semi-annual Report for 2024
(3). Net cash from disposal of subsidiaries in this period
□ Applicable √Not applicable
(4). Composition of cash and cash equivalents
√Applicable □Not applicable
Unit: RMB
Item Closing balance Opening balance
I. Cash 963,102,575.65 2,910,178,939.19
Including: cash on hand 213,381.46 249,915.87
Bank deposit that can be used for payment at
960,163,609.71 2,909,921,203.08
any time
Other monetary capital that can be used for
2,725,584.48 7,820.24
payment at any time
II. Cash equivalents - -
Including: bond investments due within three
- -
months
III. Closing balance of cash and cash
963,102,575.65 2,910,178,939.19
equivalents
Including:cash and cash equivalents with
restricted use by the parent company or its 16,594,295.29 12,556,381.42
subsidiaries
(5). Situations where the scope of use is limited but still listed as cash and cash
equivalents
□ Applicable √Not applicable
(6). Monetary funds that do not belong to cash and cash equivalents
□ Applicable √Not applicable
Other notes:
□ Applicable √Not applicable
80. Notes to items in 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
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81. Foreign currency monetary items
(1). Foreign currency monetary items
√Applicable □Not applicable
Unit: RMB
Closing balance
Closing balance in after convertion:
Item Exchange rate
foreign currency RMB
Cash and cash equivalents - -
Including: US dollars 5,103,572.22 7.1268 36,372,138.50
Euro 128,458.22 7.6617 984,208.34
Rwandan Franc 15,749,722.00 0.0055 87,300.71
Dirham 36,499.00 1.9462 71,034.35
Koruna 5,562,935.07 0.3100 1,724,509.88
Accounts receivable - -
Including: US dollars 416,308.57 7.1268 2,966,947.93
EURO 152.18 7.6617 1,165.96
Koruna 15,819,861.76 0.3100 4,904,157.14
Other receivables - -
Including: US dollars 361,319.11 7.1268 2,575,049.03
EURO 20,060.00 7.6617 153,693.70
Koruna 18,148,013.89 0.3100 5,625,884.31
Accounts payable - -
Including: US dollars 1,846,880.16 7.1268 13,162,345.52
Koruna 147,421.10 0.3100 45,700.54
Other payables - -
Including: US dollars 1,738,995.14 7.1268 12,393,470.57
EURO 24,948.87 7.6617 191,150.76
Koruna 138,490,383.66 0.3100 42,932,018.93
Other notes:
Nil
(2). Description of overseas operating entities, for important overseas operating entities,
includes the disclosure of principal overseas place of business, functional currency and
the basis for selection, and the reason for the change in functional currency.
□ Applicable √Not applicable
82. Lease
(1). As a leasee
√Applicable □Not applicable
Variable lease payments not included in the measurement of lease liabilities
□ Applicable √Not applicable
Simplified short-term lease or low-value assets leasing expenses
√Applicable □Not applicable
Simplified short-term lease expenses of RMB 7,512,968.82 included in profit or loss for the
current period.
Simplified low-value assets lease expenses of RMB 450,583.97 included in profit or loss for
the current period.
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Leaseback transactions and judgment basis
□ Applicable √Not applicable
The total cash outflow related to leasing was RMB 8,350,298.44.
(2). As a lessor
Operating lease as lessor
□ Applicable √Not applicable
Financing lease as lessor
□ Applicable √Not applicable
Adjustment table for undiscounted lease receipts and net lease investments
□ Applicable √Not applicable
Undiscounted lease receipts for the next five years
□ Applicable √Not applicable
(3). Confirmed gains and losses of financing lease sales as a manufacturer or distributor
□ Applicable √Not applicable
Other statements
The leased assets of the Group include houses, buildings, land use rights, and other
equipment used in the operating process. The lease term for houses and buildings is usually
2-5 years, and the lease term for land use rights is 10 years.
For right-of-use assets, please refer to Note VII.25. Right-of-use assets; for lease liabilities,
please refer to Note VII.47. Lease liabilities.
83. Data resources
□ Applicable √Not applicable
84. Other
□ Applicable √Not applicable
VIII. R&D expenditure
(1). Listed by nature of expenses
√Applicable □Not applicable
Unit: RMB
Item Amount in the current Amount in the prior
period corresponding period
Labor cost 19,706,355.70 18,478,351.38
Technology development fee 193,408.81 371,144.77
Depreciation and amortization 4,737,153.26 6,427,753.86
Others 163,773.60 521,160.10
Total 24,800,691.37 25,798,410.11
Among them: Expensed R&D 11,759,206.64 10,524,249.20
expenditure
Capitalized R&D expenditure 13,041,484.73 15,274,160.91
Other notes:
Nil
(2). R&D project development expenditure that meet capitalization criteria
√Applicable □Not applicable
Unit: RMB
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Semi-annual Report for 2024
Increase in the
Decrease in the current period
current period
Opening Closing
Item Internal Transfer to profit
balance Recognized as balance
development or loss for the
intangible assets
expenditure current period
The development project 7,130,228.92 1,057,601.03 5,966,692.23 2,078,436.70 142,701.02
for platform “chinagoods”
Kuaijietong Core Payment 3,662,987.28 2,013,470.06 3,762,767.80 - 1,913,689.54
System
Data resources 7,855,225.73 9,970,413.64 8,724,238.82 - 9,101,400.55
Total 18,648,441.93 13,041,484.73 18,453,698.85 2,078,436.70 11,157,791.11
Important capitalized research and development projects
□ Applicable √Not applicable
Provision for impairment of development expenditure
□ Applicable √Not applicable
Other statements
Nil
(3). Important outsourced projects under research
□ Applicable √Not applicable
IX. Changes in the scope of consolidation
1. Business combinations not under common control
□ Applicable √Not applicable
2. Business combinations under common control
□ Applicable √Not applicable
3. Reverse acquisition
□ Applicable √Not applicable
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4. Disposal of subsidiaries
Whether there were any transactions or events that resulted in the loss of control over a subsidiary in this period
□ Applicable √Not applicable
Other notes:
□ Applicable √Not applicable
Is there a situation where investments in subsidiaries were disposed of in stages through multiple transactions and control was lost in the current
period
□ Applicable √Not applicable
Other notes:
□ Applicable √Not applicable
5. Changes in the scope of consolidation due to 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 subsidiaries Yiwu Yundailu Data Technology Co., Ltd. and Mingzhe Technology Development Co., Ltd. in this period.
6. Other
□ Applicable √Not applicable
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X. Equity in other entities
1. Equity in subsidiaries
(1). Composition of the Group
√Applicable □Not applicable
Unit: RMB10,000
Shareholding
Subsidiary Main place Registered Place of ratio (%) Acquisition
Business
Name of business capital registration Method
Direct Indirect
Yiwu China
Commodities Yiwu, Yiwu,
10,000.00 Wholesale Establishment
City Import and Zhejiang Zhejiang 100.00
Export Co., Ltd.
Yiwu China
Commodities
City Supply Yiwu, Yiwu,
10,000.00 Wholesale Establishment
Chain Zhejiang Zhejiang 100.00
Management
Co., Ltd.
Yiwu
Comprehensive
Bonded Zone Yiwu, Yiwu, Business
10,000.00 Establishment
Operation and Zhejiang Zhejiang service 100.00
Management
Co., Ltd.
Yiwu China
Commodities
City Overseas Yiwu, Yiwu, Business
10,000.00 Establishment
Investment and Zhejiang Zhejiang service 100.00
Development
Co., Ltd.
Yiwu China
Commodities
Yiwu, Yiwu, Business
City Tourism 10,000.00 Establishment
Zhejiang Zhejiang service 100.00
Development
Co., Ltd.
Yiwu China
Commodities
City Assets Yiwu, Yiwu, Business
1,000.00 Establishment
Operation and Zhejiang Zhejiang service 100.00
Management
Co., Ltd.
Zhejiang Yindu
Hotel Yiwu, Yiwu, Business
1,000.00 Establishment
Management Zhejiang Zhejiang service 100.00
Co., Ltd.
Yiwu Yandoo
Shangtu Yiwu, Yiwu, Business
500.00 Establishment
Catering Co., Zhejiang Zhejiang service 100.00
Ltd
Yiwu China
Commodities
Yiwu, Yiwu, Business
City Research 1,000.00 Establishment
Zhejiang Zhejiang service 100.00
Institute Co.,
Ltd.
Yiwu Shangbo
Shuzhi Yiwu, Yiwu, Business
30,000.00 Establishment
Enterprise Zhejiang Zhejiang service 100.00
Management
166 / 213
Semi-annual Report for 2024
Co., Ltd.
Software and
Yiwu China
Information
Commodities Yiwu, Yiwu,
10,000.00 Technology Establishment
City Big Data Zhejiang Zhejiang 100.00
Service
Co., Ltd.
Industry
Yiwu Xinlian Professional
Technology Yiwu, Yiwu, technical
1,000.00 51.00 Establishment
Service Co., Zhejiang Zhejiang service
Ltd. industry
Yiwu
Shangcheng
Gonglian Yiwu, Yiwu, Business
20,000.00 Establishment
Enterprise Zhejiang Zhejiang service 100.00
Management
Co., Ltd.
Yiwu Shangbo
Yuncang
Yiwu, Yiwu, Business
Enterprise 30,000.00 Establishment
Zhejiang Zhejiang service 100.00
Management
Co., Ltd.
Yiwu China
Commodities
Yiwu, Yiwu,
City Information 5,000.00 IT Establishment
Zhejiang Zhejiang 100.00
Technology
Co., Ltd.
Yiwu China
Commodities
Yiwu, Yiwu, Financial
City Financial 400,000.00 Establishment
Zhejiang Zhejiang industry 100.00
Holdings Co.,
Ltd.
Yiwu China
Commodities Multimodal
City Logistics Yiwu, Yiwu, transport and
10,000.00 Establishment
and Zhejiang Zhejiang transportation 100.00
Warehousing agency
Co., Ltd.
Yiwu China
Commodities Yiwu, Yiwu, Business
3,000.00 98.00 2.00 Establishment
City Exhibition Zhejiang Zhejiang service
Co., Ltd.
Yiwu Yundailu
Internet and
Data Yiwu, Yiwu, Establishment
50,000.00 related
Technology Zhejiang Zhejiang 100.00
services
Co., Ltd.
Zhejiang Huajie
Investment and Yiwu, Yiwu, Business
50,000.00 96.40 Establishment+acquisition
Development Zhejiang Zhejiang service
Co., Ltd.
European
Huajie Prague, Prague,
Business
Investment Czech CZK1,580.00 Czech 96.40 Establishment+acquisition
service
Development Republic Republic
Co., Ltd.
Zhejiang China
Commodities
Yiwu, Yiwu, Financial
City Group 20,000.00 60.00 40.00 Establishment
Zhejiang Zhejiang industry
Commercial
Factoring Co.,
167 / 213
Semi-annual Report for 2024
Ltd.
Zhejiang
Yiwugou Yiwu, Yiwu,
10,000.00 IT 51.00 Establishment
E-commerce Zhejiang Zhejiang
Co., Ltd.
Yiwu Xingchen
Enterprise Yiwu, Yiwu, Business
15,000.00 Establishment
Management Zhejiang Zhejiang service 100.00
Co., Ltd
Yiwu China
Commodities Yiwu, Yiwu,
1,000.00 Advertising Establishment
City Advertising Zhejiang Zhejiang 100.00
Co., Ld.
Yiwu
International
Trade Yiwu, Yiwu,
10,000.00 Wholesale 60.00 Establishment
Comprehensive Zhejiang Zhejiang
Service Co.,
Ltd.
Yiwu China
Commodities
Yiwu, Yiwu,
City Credit 1,000.00 Service 85.00 Establishment
Zhejiang Zhejiang
Investigation
Co., Ltd.
Yiwu Aiximao
Supply Chain Yiwu, Yiwu,
500.00 Service Establishment
Management Zhejiang Zhejiang 100.00
Co., Ltd.
Yiwu China
Commodities
City Internet
Yiwu, Yiwu, Financial
Financial 1,000.00 Establishment+acquisition
Zhejiang Zhejiang industry 100.00
Information
Service Co.,
Ltd.
Yiwu China
Commodity City
RMB and
Yiwu, Yiwu, Financial
Foreign 1,000.00 Establishment
Zhejiang Zhejiang industry 100.00
Currency
Exchange Co.,
Ltd.
Hangzhou
Shangbo
Hangzhou, Hangzhou,
Nanxing 5,000.00 Real estate Establishment
Zhejiang Zhejiang 100.00
Property Co.,
Ltd.
Haicheng Haicheng, Haicheng,
60,000.00 Real estate 95.00 Establishment
Company Liaoning Liaoning
Ningxia Yiwu
China
Commodity City Shizuishan, Shizuishan,
2,000.00 Service Establishment
Supply Chain Ningxia Ningxia 100.00
Management
Co., Ltd.
Yiwu China
Hong Hong
Commodities
Kong, HKD 1.00 Kong, Wholesale Establishment
City (Hong 100.00
China China
Kong)
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International
Trade Co., Ltd.
Hong Kong Hong Hong
HKD
Better Silk Kong, Kong, Service Establishment
10800.00 100.00
Road Co., Ltd. China China
Huafrica
(Kenya)
Nairobi, Nairobi,
Investment KES 3000.00 Service Establishment
Kenya Kenya 100.00
Development
Co., Limited
BETTER SILK Dubai, AED Dubai,
Service Establishment
ROAD FZE UAE 5040.00 UAE 100.00
BETTER SILK
Kigali, RWF Kigali,
ROAD Service Establishment
Rwanda 27000.00 Rwanda 100.00
RWANDA Ltd
Yiwu Zheqing
Yiwu, Yiwu,
Trading Co., 2,200.00 Wholesale Establishment
Zhejiang Zhejiang 100.00
Ltd.
Tortola Tortola
Mingzhe
Island, Island,
Technology Financial
British USD 0.0005 British Establishment
Development industry 100.00
Virgin Virgin
Co., Ltd.
Islands Islands
Yiwu China
Commodity City Frankfurt, Frankfurt,
EUR 100.00 Service Establishment
(Germany) Co., Germany Germany 100.00
Ltd.
Yiwu China
Commodities Madrid, Madrid,
EUR 20.00 Service Establishment
City (Spain) Spain Spain 100.00
Co., Ltd.
Zhejiang
Xunchi Digital Hangzhou, Hangzhou,
19,000.00 IT Acquisition
Technology Zhejiang Zhejiang 100.00
Co., Ltd.
Kuaijietong
Payment Hangzhou, Hangzhou,
18,000.00 IT Acquisition
Service Co., Zhejiang Zhejiang 100.00
Ltd.
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
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(2). Important non-wholly owned subsidiaries
√Applicable □Not applicable
Unit: RMB
Profits or losses attributable to Dividends declared to be distributed
Shareholding ratio of Closing balance of minority
Name of subsidiary minority shareholders in the to minority shareholders for the
minority shareholders (%) interest
current period current period
Zhejiang Yiwugou E-commerce 49 5,484,758.47 - 66,379,109.76
Co., Ltd.
Haicheng Company 5 -2,945,244.02 - -55,385,459.23
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). Main financial information of important non-wholly-owned subsidiaries
√Applicable □Not applicable
Unit: RMB10,000
Closing balance Opening balance
Name of subsidiary Current Non-current Total Current Total Current Non-current Total Current Total
assets assets assets liabilities liabilities assets assets assets liabilities liabilities
Zhejiang Yiwugou E-commerce 10,568.43 5,623.34 16,191.77 2,650.75 2,650.75 12,224.24 5,653.21 17,877.45 5,450.03 5,450.03
Co., Ltd.
Haicheng Company 122,072.96 66,509.68 188,582.64 299,353.56 299,353.56 109,040.55 83,210.84 192,251.39 297,131.82 297,131.82
Amount in the current period Amount in the prior corresponding period
Total Total
Name of subsidiary Operating Cash flow from Operating Cash flow from
Net profits comprehensive Net profits comprehensive
revenue operating activities revenue operating activities
income income
Zhejiang Yiwugou 3,173.27 1,119.34 1,119.34 195.82 3,171.00 1,055.64 1,055.64 751.05
E-commerce Co., Ltd.
170 / 213
Semi-annual Report for 2024
Haicheng Company 941.96 -5,890.49 -5,890.49 -3,202.47 4,257.07 -5,562.04 -5,562.04 -1,874.50
Other notes:
Nil
171 / 213
Semi-annual Report for 2024
(4). Major restrictions on the use of the Group’s assets and repayment of the Group’s
debts:
□ Applicable √Not applicable
(5). Financial or other support provided to structured entities included in the scope of
consolidated financial statements:
□ Applicable √Not applicable
Other notes:
□ Applicable √Not applicable
2. Transactions in which the owners' equity share of a subsidiary changes while still
controlling the subsidiary
□ Applicable √Not applicable
3. Equity in joint ventures or associates
√Applicable □Not applicable
(1). Important joint ventures or associates
√Applicable □Not applicable
Unit: RMB
Shareholding Accounting
ratio (%) treatment
Main place method of
Place of
Name of joint venture or associate of Business investment in
registration
business Direct Indirect the joint
venture or
associate
Joint ventures
Yiwu Shanglv Investment Yiwu, Yiwu,
Real estate 49 Equity method
Development Co., Ltd. Zhejiang Zhejiang
Yiwu Huishang Redbud Capital Yiwu, Yiwu, Financial
20 Equity method
Management Co., Ltd. Zhejiang Zhejiang industry
Yiwu, Yiwu,
Yiwu Rongshang Property Co., Ltd. Real estate 49 Equity method
Zhejiang Zhejiang
Yiwu, Yiwu,
Yiwu Chuangcheng Property Co., Ltd. Real estate 24 Equity method
Zhejiang Zhejiang
Yiwu Guoshen Shangbo Property Co., Yiwu, Yiwu,
Real estate 49 Equity method
Ltd. Zhejiang Zhejiang
Associates
Yiwu Huishang Redbud Equity Yiwu, Yiwu, Commercial
10.42 Equity method
Investment Co., Ltd. (Note 6) Zhejiang Zhejiang services
Zhejiang Chouzhou Financial Lease Hangzhou, Yiwu, Financial
26 Equity method
Co., Ltd. Zhejiang Zhejiang industry
Yiwu Huishang Redbud Phase II Lease and
Yiwu, Yiwu,
Investment Partnership (limited business 10.41 Equity method
Zhejiang Zhejiang
partnership) [Note 7] service
Yiwu Hongyi Equity Investment Fund Yiwu, Yiwu, Financial
49.98 Equity method
Partnership (limited partnership) Zhejiang Zhejiang industry
Pujiang, Pujiang,
Pujiang Lvgu Property Co., Ltd. Real estate 49 Equity method
Zhejiang Zhejiang
Yiwu China Commodities City Property Yiwu, Yiwu,
Real estate 49 Equity method
Development Co., Ltd. Zhejiang Zhejiang
172 / 213
Semi-annual Report for 2024
Technology
promotion
Yiwu, Yiwu, and
Zhijie Yuangang 27 Equity method
Zhejiang Zhejiang application
service
industry
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 6: The Company held 10.42% (2023: 10.42%) of equity of Yiwu Huishang Redbud
Equity Investment Co., Ltd. (hereinafter referred to as "Redbud Equity Investment"), but
regarded it as an associated company of the Company. According to Redbud Investment’s
articles of association, it is engaged in investing and its important financial and operating
decision-making activities are to pick and manage investment projects, which have been fully
entrusted to the Company’s joint venture Yiwu Huishang Redbud Capital Management Co., Ltd.
(“Redbud Capital”). Redbud Capital picks and manages investment projects via its investment
decision-making committee. Except for special investment matters, which are subject to the
resolution of Redbud Investment’s board of directors, other important financial and operating
decision-making activities are conducted by Redbud Capital on the behalf of Redbud
Investment. Therefore, the Company was able to exercise significant influence on Redbud
Investment in which the Company held 10.42% of total equity.
Note 7: The Company held 10.41% (2023: 10.41% ) equity of Yiwu Huishang Redbud
Phase II Investment Partnership (Limited Partnership) (“Redbud Phase II”), but regarded it as
an associated company of the Company. According to Redbud Phase II’s articles of association,
it is engaged in investing and its important financial and operating decision-making activities are
to pick and manage investment projects, which have been fully entrusted to the Company’s joint
venture Redbud Capital. Redbud Capital picks and manages investment projects via its
investment decision-making committee. Except for special investment matters, which are
subject to the resolution of Redbud Phase II’s board of directors, other important financial and
operating decision-making activities are conducted by Redbud Capital on the behalf of Redbud
Phase II. Therefore, the Company could exert significant influence on Redbud Phase II of which
it held 10.41% equity.
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Semi-annual Report for 2024
(2). Key financial information of important joint ventures
√Applicable □Not applicable
Unit: RMB10,000
Closing balance/amount in the current period Opening balance/amount in the previous period
Yiwu Yiwu Yiwu Guoshen Yiwu Yiwu Yiwu Guoshen
Shanglv Rongshang Chuangcheng Shangbo Shanglv Rongshang Chuangcheng Shangbo
Property Property Property Property
Current assets 6,573.61 13,398.20 75,428.66 218,411.82 5,868.55 13,398.19 37,987.32 237,167.69
Including: cash and cash 5,413.08 49.17 37.61 10,860.63 4,831.90 49.30 95.43 18,717.68
equivalents
Non-current assets 123,921.21 - 5,320.29 33.31 125,809.14 - 1.30 43.43
Total assets 130,494.82 13,398.20 80,748.95 218,445.13 131,677.69 13,398.19 37,988.62 237,211.12
Current liabilities 33,692.37 0.06 67,644.28 28,955.59 39,666.74 0.09 25,119.76 47,982.62
Non-current liabilities - - 1,333.17 - - - 1,333.18 -
Total liabilities 33,692.37 0.06 68,977.45 28,955.59 39,666.74 0.09 26,452.94 47,982.62
Shareholders’ equity attributable 96,802.45 13,398.14 11,771.50 189,489.54 92,010.95 13,398.10 11,535.68 189,228.50
to parent company
Share of net assets calculated 47,433.20 6,565.09 2,825.16 92,849.87 45,085.36 6,565.07 2,768.56 92,721.97
based on shareholding ratio
Adjustments -1,468.74 - - - -1,492.37 - - -
--Unrealized profits of internal -1,468.74 - - - -1,492.37 - - -
transactions
Book value of equity investment in 45,964.46 6,565.09 2,825.16 92,849.88 43,592.99 6,565.07 2,768.56 92,721.97
joint ventures
Operating revenue 13,002.45 - - 11,596.00 12,250.84 - - 973,498.72
Financial expenses 271.00 0.10 0.23 -37.14 529.18 -0.08 0.23 -90.79
Net profits 4,791.51 -0.10 -126.64 774.37 4,168.51 0.08 -2,057.65 175,429.06
Total comprehensive income 4,791.51 -0.10 -126.64 774.37 4,168.51 0.08 -2,057.65 175,429.06
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Semi-annual Report for 2024
Dividends received from joint - - - - - - - -
ventures this year
Other statements
Nil
(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 Yiwu China Pujiang Zhijie Chouzhou Hongyi Yiwu China Pujiang Zhijie
Financial Fund Commodities Lvgu Yuangang Financial Fund Commodities Lvgu Yuangang
Lease City Property Lease City Property
Development Development
Co., Ltd. Co., Ltd.
Current assets 69,190.10 5,759.92 2,289,878.02 111,778.36 65,928.52 101,696.23 15,500.19 2,046,024.61 127,841.28 57,624.29
Non-current assets 2,008,299.99 137,620.92 49,253.99 2,904.30 3,434.30 1,917,528.55 170,802.46 46,906.23 6,373.08 3,134.10
Total assets 2,077,490.09 143,380.84 2,339,132.01 114,682.66 69,362.82 2,019,224.78 186,302.65 2,092,930.84 134,214.36 60,758.39
Current liabilities 1,263,746.63 13.96 1,401,761.70 33,532.60 31,565.35 1,209,345.22 2,275.47 1,239,064.78 59,238.51 20,449.28
Non-current liabilities 571,827.79 - 286,137.48 997.36 - 588,800.25 - 201,027.66 4,303.02 -
Total liabilities 1,835,574.42 13.96 1,687,899.18 34,529.96 31,565.35 1,798,145.47 2,275.47 1,440,092.44 63,541.53 20,449.28
Shareholders’ equity 241,915.67 143,366.88 651,232.83 80,152.70 37,797.47 221,079.31 184,027.18 652,838.40 70,672.83 40,309.11
attributable to parent
company
Share of net assets calculated 62,898.07 71,640.43 311,545.35 39,274.82 10,205.24 57,480.62 91,976.78 312,067.18 34,629.69 10,883.38
based on shareholding ratio
Adjustments 0.01 7.18 177.25 321.32 2,424.26 15.26 -1,493.41 177.26 334.48 2,314.82
--Unrealized profits of 0.01 7.18 177.25 321.32 2,424.26 15.26 -1,493.41 177.26 334.48 2,314.82
internal transactions
Book value of equity investment in 62,898.08 71,647.61 311,722.60 39,596.14 12,629.50 57,495.88 90,483.37 312,244.44 34,964.17 13,198.20
joint ventures
175 / 213
Semi-annual Report for 2024
Operating revenue 36,795.59 - 20,104.29 39,338.44 64,164.40 34,574.83 - 185,257.95 1.38 9,402.91
Net profits 20,777.69 271.23 -1,594.92 9,453.00 -2,518.95 20,066.83 720.44 26,262.14 -1,831.78 -2,654.82
Total comprehensive 20,777.69 271.23 -1,594.92 9,453.00 -2,518.95 20,066.83 720.44 26,262.14 -1,831.78 -2,654.82
income
Dividend on associates received in the
current year - 3,475.00 - - - - - - - -
Other statements
Nil
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Semi-annual Report for 2024
(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
current period the previous period
Joint ventures:
Total book value of 29,818,071.75 30,629,677.74
investments
Total amounts of the following items calculated based on shareholding ratio
--Net profits -811,605.27 -730,256.49
--Other comprehensive - -
income
--Total comprehensive -811,605.27 -730,256.49
income
Associates:
Total book value of 442,001,220.71 451,803,256.03
investments
Total amounts of the following items calculated based on shareholding ratio
--Net profits -27,478,238.34 -39,298,606.17
--Other comprehensive 217,103.05 -
income
--Total comprehensive -27,261,135.29 -39,298,606.17
income
Other statements
Nil
(5). Explanation of significant limitations on the ability of joint ventures or associates
to transfer funds to the Company
□ Applicable √Not applicable
(6). Excess losses incurred by joint ventures or associates
□ Applicable √Not applicable
(7). Unconfirmed commitments related to joint venture investments
□ Applicable √Not applicable
(8). Contingent liabilities relating to investment in joint ventures or associates
□ Applicable √Not applicable
4. Important joint operations
□ Applicable √Not applicable
5. Equity in structured entities not included in the scope of consolidated financial
statements
Notes on structured entities not included in the consolidated financial statements:
□ Applicable √Not applicable
6. Other
□ Applicable √Not applicable
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Semi-annual Report for 2024
XI. Government grants
1、 Government subsidies recognized by accounts receivable at the end of the reporting
period
□ Applicable √Not applicable
Reasons for not receiving the expected amount of government subsidies at the expected time
point
□ Applicable √Not applicable
2、 Liabilities items involving government subsidies
√Applicable □Not applicable
Unit: RMB
Transfer to other
Financial statement Related to
Opening balance income in this Closing balance
items assets/income
period
Deferred income 160,432,656.23 7,589,275.14 152,843,381.09 Related to assets
Total 160,432,656.23 7,589,275.14 152,843,381.09 /
3、 Government grant included in profit or loss for the current period
√Applicable □Not applicable
Unit: RMB
Amount in the prior
Type Amount in the current period
corresponding period
Related to assets 7,589,275.14 710,736.84
Income-related 3,589,669.67 13,920,799.92
Total 11,178,944.81 14,631,536.76
Other notes:
Nil
178 / 213
Semi-annual Report for 2024
XII. Risks associated with financial instruments
1. Risk of financial instruments
√Applicable □Not applicable
The risks associated with financial instruments faced by the Group in regular activities
mainly include credit risk, liquidity risk and market risk. The risk management policies of the
Group for these risks are outlined below.
The Group diversifies its investment and business portfolio appropriately to diversify
financial instrument risks, and reduces risks concentrated in any single industry, specific region,
or specific counterparty by formulating corresponding risk management policies.
Credit risk
The Group only deals with the recognized third parties with good reputation. According to
its policy, the Group needs to carry out credit review on all clients who require to deal with the
Group on credit. In addition, the Group keeps monitoring the balance of accounts receivable to
ensure it will not face any material bad debt risk. For the transactions settled other than in the
functional currency of related business entities, unless with specific approval of the Group’s
credit control department, the Group will not provide the conditions for dealing on credit.
As the counterparties to the transactions of cash are banks with good reputation and high
credit ratings, the credit risk of those financial instruments is relatively low.
Other financial assets of the Group include accounts receivable, other receivables, other
current assets, debt investments, long-term receivables, and other non-current assets. The
credit risk of these financial assets arises from counterparty defaults, and the maximum risk
exposure is equal to the book value of these instruments.
The Group also faces credit risks due to providing financial guarantees, as disclosed in
Note XVI. 2.
Due to the Group only engaging in transactions with recognized and reputable third parties,
no collateral is required. Credit risk is centrally managed based on customers/counterparties,
geographic regions, and industries. As the clients from which the Group’s accounts receivable
are receivable are scattered in different sectors and industries, there’s no material credit risk
concentrated within the Group. The Group does not have any collaterals or other credit
enhancements for the balance of its accounts receivable.
Criteria for significant increase in credit risk
The Group evaluates, on each balance sheet date, whether the credit risk of related
financial instruments has increased significantly since the initial recognition thereof. The main
criteria for the Group to judge a significant increase in credit risk are significant changes in one
or more of the following indicators: the operating environment of the debtor, internal and
external credit ratings, and significant adverse changes in actual or expected operating results.
Definition of the assets whose credit has been impaired
The main criterion for determining credit impairment in the Group is that if internal or
external information shows that the contract amount may not be fully recovered before
considering any credit enhancement held.
The credit impairment of financial assets may be caused by multiple events together and
may not necessarily be caused by an individually identifiable event.
Credit risk exposure
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Semi-annual Report for 2024
Disclose the credit risk exposure of the book balance of financial assets according to the
credit risk level, and disclose the expected credit losses for the next 12 months and the credit
losses for the entire duration of the asset separately.
The Group directly accounts for accounts receivable using simplified methods and provides
impairment provisions for expected credit losses of other accounts receivable in the next 12
months using general methods. The quantitative data of the Group's credit risk exposure arising
from accounts receivable and other accounts receivable are detailed in Note VII. 5 and Note VII.
9.
Liquidity risk
The Group's goal is to use various financing methods to maintain a balance between the
sustainability and flexibility of financing. The Group finances its operations through funds
generated from operations and borrowings.
The following table summarizes theanalysis on the due day of financial liabilities based on
non-discounted contractual cash flows:
June 30, 2024
Item Within 1 year 1-2 years 2-3 years Over 3 years Total
Short-term
1,351,119,861.12 - - - 1,351,119,861.12
borrowings
Accounts payable 692,706,560.58 - - - 692,706,560.58
Other payables 1,225,291,430.90 - - 455,671,033.57 1,680,962,464.47
Other current
4,213,751,012.13 - - - 4,213,751,012.13
liabilities
Non-current
liabilities due 1,821,483,163.45 - - - 1,821,483,163.45
within one year
Long-term
27,089,891.55 162,231,925.36 94,080,425.36 878,258,924.68 1,161,661,166.95
borrowings
Lease liabilities - 31,773,627.93 30,411,583.60 184,519,103.27 246,704,314.80
Bonds payable - 2,059,170,000.00 - - 2,059,170,000.00
Total 9,331,441,919.73 2,253,175,553.29 124,492,008.95 1,518,449,061.52 13,227,558,543.50
2023
Item Within 1 year 1-2 years 2-3 years Over 3 years Total
Short-term
1,633,387,388.91 - - - 1,633,387,388.91
borrowings
Accounts payable 1,390,254,849.27 - - - 1,390,254,849.27
Other payables 1,393,726,397.83 - - 468,994,325.17 1,862,720,723.00
Other current
3,420,706,329.61 - - - 3,420,706,329.61
liabilities
Non-current
liabilities due 193,144,703.38 - - - 193,144,703.38
within one year
Long-term
20,441,113.41 48,482,098.41 55,102,649.41 798,322,481.14 922,348,342.37
borrowings
Lease liabilities - 32,905,926.59 32,828,436.37 194,173,777.30 259,908,140.26
Bonds payable - 3,608,950,000.00 - - 3,608,950,000.00
Total 8,051,660,782.41 3,690,338,025.00 87,931,085.78 1,461,490,583.61 13,291,420,476.80
Market risks
Interest rate risk
The risk of changes in market interest rates faced by the Group is mainly related to the
Group's long-term liabilities at floating interest rates. The Group manages interest rate risk
by closely monitoring changes in interest rates and regularly reviewing borrowings.
As of Jun 30, 2024, the Company had long-term borrowings of RMB 378 million among
its long-term liabilities, the interest rates of which were adjusted on an annual basis based
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on the benchmark loan rate on the anniversary dates. Therefore, the management believe
that its risk of market interest rate change is relatively low.
Foreign exchange rate risk
The Group faces trading exchange rate risks. Such risks are caused by sales or
purchases made by certain business units in currencies other than their bookkeeping
currency. Considering the Group’s short time of inventory and timely collection of accounts
receivable, the management believe that its foreign exchange rate risk is relatively low.
Price risk of equity instrument investments
The price risk of equity instrument investments refers to the risk of the fair value of
equity securities decreasing due to the changes in stock indices and value of individual
securities. As of Jun 30, 2024, 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 at fair value through profit or loss (Note VII. 2) or
through other comprehensive income (Note VII. 18). The Group manages risks by holding
investment portfolios with different risks.
The following table illustrates the sensitivity of the Group's net profit and loss and other
comprehensive income net after tax to every 10% change in the fair value of equity
instrument investments based on the book value at the balance sheet date, assuming that
all other variables remain constant.
June 30, 2024
Equity
Other
instrument Total shareholders'
Net profit or loss comprehensive
investment equity
income net after tax
book value
Equity instrument
increase/(decrease) increase/(decrease) increase/(decrease)
investment
Fair value
increase/decrease
by10%
Investment in the
equity instruments that
are measured by fair
value and of which the
555,643,105.79 - 41,673,232.93 41,673,232.93
changes in fair value
are recognized in other
comprehensive
income
Equity instrument
investments measured
11,640,817.50 873,061.31 - 873,061.31
at fair value through
profit or loss
2023
Equity
Other
instrument Total shareholders'
Net profit or loss comprehensive
investment equity
income net after tax
book value
Equity instrument
increase/(decrease) increase/(decrease) increase/(decrease)
investment
Fair value
increase/decrease
by10%
Investment in the
equity instruments that
are measured by fair 556,897,379.17 - 41,767,303.44 41,767,303.44
value and of which the
changes in fair value
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are recognized in other
comprehensive income
Equity instrument
investments measured
15,130,895.00 1,134,817.13 - 1,134,817.13
at fair value through
profit or loss
Capital management
The main objective of the Group in capital management is to ensure the Group’s ability to
continue operations and maintain a healthy capital ratio to support its business development
and maximize the values for shareholders.
The Group manages and adjusts its capital structure based on the changes in the
economic situation and the risk characteristics of related assets. To maintain or adjust the
capital structure, the Group may adjust the distribution of profits to shareholders, return capital
contribution to shareholders or issue new shares. The Group is not subject to external
mandatory capital requirements. There were no changes in the capital management goals,
policies, or procedures from 2023 to 2024.
The Group adopts an asset-liability ratio to manage capital, which refers to the ratio of total
liabilities to total assets. The Group's policy will maintain a relatively stable asset-liability ratio.
Total liabilities include current liabilities and non-current liabilities. The asset-liability ratio of the
Group on the balance sheet date is as follows:
June 30, 2024 2023
Total liabilities 17,924,828,768.48 18,515,009,702.36
Total assets 36,021,693,283.42 36,218,947,223.63
Asset-liability ratio 49.76% 51.12%
2. Hedging
(1) The Company conducts hedging business for risk management
□ Applicable √Not applicable
Other statements
□ Applicable √Not applicable
(2) The Company conducts eligible hedging business and applies hedging accounting
□ Applicable √Not applicable
Other statements
□ Applicable √Not applicable
(3) The Company conducts hedging business for risk management and expects to
achieve risk management goals, but has not applied hedging accounting
□ Applicable √Not applicable
Other statements
□ Applicable √Not applicable
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3. Financial asset transfer
(1) Classification of transfer methods
□ Applicable √Not applicable
(2) Financial assets derecognized due to transfer
□ Applicable √Not applicable
(3) Transferred financial assets in which the Group continued to be involved
□ Applicable √Not applicable
Other statements
□ Applicable √Not applicable
XIII. Disclosure of fair value
1. Closing fair value of assets and liabilities measured at fair value
√Applicable □Not applicable
Unit: RMB
Closing fair value
Item Level 2 fair
Level 1 fair value Level 3 fair value Total
value
I. Continuous fair value measurement
(I) Held-for-trading financial assets 11,640,817.50 - - 11,640,817.50
1. Financial assets that are measured at
fair value and whose changes are 11,640,817.50 - - 11,640,817.50
included in the current profit and loss
(2) Investment in equity instruments 11,640,817.50 - - 11,640,817.50
(III) Other equity instrument investments 555,643,105.79 - - 555,643,105.79
(vi) Other non-current financial assets - 1,492,349,593.33 1,492,349,593.33
Total assets continuously measured at fair
567,283,923.29 - 1,492,349,593.33 2,059,633,516.62
value
2. Basis for determining the market prices of the items continuously and
non-continuously measured at Level 1 fair value
√Applicable □Not applicable
The Group's continuous first level fair value measurement project is equity instruments of
the Listed Company, and fair value is determined based on market quotations.
3. Valuation techniques and qualitative and quantitative information of important
parameters for the items continuously and non-continuously measured at Level 2
fair value
□ Applicable √Not applicable
4. Valuation techniques and qualitative and quantitative information of important
parameters for the items continuously and non-continuously measured at Level 3
fair value
√Applicable □Not applicable
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
183 / 213
Semi-annual Report for 2024
by the Group's Financial Director. For the purpose of annual financial statements, the valuation
process and results are discussed twice a year with the audit committee.
Non-listed equity instrument investments are estimated at fair value using the market
method based on unobservable market prices or interest rate assumptions, or fair value is
determined using the asset-based method for non-listed equity instruments as of the balance
sheet date. The Group needs to determine comparable listed companies based on industry,
scale, leverage, and strategy, and calculate appropriate market multipliers, such as price to
earnings ratios, for each identified comparable listed company. Adjust based on specific facts
and circumstances of the enterprise, taking into account factors such as liquidity and size
differences with comparable listed companies. The Group believes that the fair value and its
changes estimated using valuation techniques are reasonable and the most appropriate value
on the balance sheet date. For the fair value of non-listed equity instrument investments, the
Group estimates the potential impact of using other reasonable and possible assumptions as
inputs to the valuation model.
5. Adjustment information between the opening book value and closing book value,
and the sensitivity analysis of unobservable parameters for items continuously
measured at Level 3 fair value
□ Applicable √Not applicable
6. For items continuously measured at 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 at fair value
□ Applicable √Not applicable
9. Other
□ Applicable √Not applicable
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XIV. Related parties and related transactions
1. Parent company of the Company
√Applicable □Not applicable
Unit: RMB10,000
Shareholding Voting right
Name of parent Place of Registered ratio in the ratio in the
Business
company registration capital Company Company
(%) (%)
Yiwu China
Yiwu, Asset
Commodities City 100,000 55.40 55.40
Zhejiang management
Holdings Limited
Notes on the parent company of the Company
Nil
The ultimate controlling party of this enterprise is the State-owned Assets Supervision and
Administration Office of Yiwu Municipal People's Government.
Other notes:
Nil
2. Subsidiaries of the Company
For details of the Company’s subsidiaries, please refer to the Notes
√Applicable □Not applicable
Please refer to Note VI. 1. Equity in Subsidiaries
3. Joint ventures and associates of the Company
For details of the Company’s important joint ventures or associates, please refer to the Notes
√Applicable □Not applicable
Please refer to Note X. 3 Equity in Joint Ventures or Associates
Other joint ventures or associates that have related-party transactions with the Company in the
current period or had related-party transactions with the Company in the 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
Yiwu China Commodities City Creative Design and Development Services Joint venture
Co., Ltd.
Yiwu Guoshen Shangbo Property Co., Ltd. Joint venture
Yiwu Rongshang Property Co., Ltd. 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 Associate
OPERATION FZCO
Yiwu Digital Port Technology Co., Ltd. Associate
Yiwu China Commodities City Property Development Co., Ltd. Associate
Hangzhou MicroAnts Co., Ltd. Associate
Yiwu Huishang Redbud Equity Investment Co., Ltd. Associate
Zhijie Yuangang Associate
185 / 213
Semi-annual Report for 2024
Yiwu Heimahui Enterprise Service Co., Ltd. Associate
Yiwu Shangfu Chuangzhi Investment Center (limited partnership) Associate
Other statements
□ Applicable √Not applicable
4. Other related parties
√Applicable □Not applicable
Name of other related party Relationship with the Company
Parent company of controlling
Yiwu State-owned Capital Operation Co., Ltd. shareholder of the Company’s
largest shareholder
Controlling shareholder of the
Yiwu Market Development Group Co., Ltd.
Company’s largest shareholder
Subsidiary of controlling
Yiwu Security Service Co., Ltd. shareholder of the Company’s
largest shareholder
Subsidiary of controlling
Yiwu Agriculture Development Co., Ltd. shareholder of the Company’s
largest shareholder
Branch of Controlling
Yourworld International Conference Center Company of
shareholder of the Company’s
Yiwu Market Development Group Co., Ltd.
largest shareholder
Subsidiary of controlling
Yiwu Market Development Service Center Co., Ltd. shareholder of the Company’s
largest shareholder
Subsidiary of the Company’s
Yiwu Shangbo Yungu Enterprise Management Co., Ltd.
largest shareholder
Subsidiary of the Company’s
Yiwu China Commodities City Property Service Co., Ltd.
largest shareholder
Minority shareholder of major
Yisha Chengdu International Trade City Co., Ltd.
subsidiaries
Other statements
Nil
5. Related transactions
(1). Related transactions for purchasing and selling commodities, providing and
receiving labor services
Purchasing goods/accepting service
√Applicable □Not applicable
Unit: RMB
Approved Whether the Amount in the
Contents of
Amount in the transaction transaction limit prior
Related party related-party
current period amount (if was exceeded (if corresponding
transaction
applicable) applicable) period
Property
Yiwu China
service fee
Commodities City
and greening 110,312,803.36 Not applicable Not applicable 98,212,858.68
Property Service Co.,
maintenance
Ltd.
fee
Yiwu Security Service Security
9,059,886.19 Not applicable Not applicable 10,038,757.30
Co., Ltd. service fee
Yiwu Shangbo Yungu
Construction
Enterprise 5,203,100.00 Not applicable Not applicable 4,913,807.45
fee
Management Co., Ltd.
186 / 213
Semi-annual Report for 2024
Procurement
Zhejiang Yemai Data and system
1,167,985.85 Not applicable Not applicable 879,922.62
Technology Co., Ltd. development
fees
Yiwu China
Commodities City
Creative Design and Design fee 651,089.11 Not applicable Not applicable 384,466.02
Development Services
Co., Ltd.
Hangzhou MicroAnts Information
413,850.00 Not applicable Not applicable 86,451.00
Co., Ltd. service fee
Yourworld
International Procurement
Conference Center and meeting
34,982.00 Not applicable Not applicable 233,917.62
Company of Yiwu affair
Market Development expenses
Group Co., Ltd.
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Selling goods/rendering service
√Applicable □Not applicable
Unit: RMB
Amount in the
Contents of
Amount in the prior
Related party related-party
current period corresponding
transaction
period
Yiwu China Commodities City Property Service Co., Ltd. Product sales and 6,178,159.43 1,787,078.02
system development
Zhijie Yuangang Warehousing cost 978,113.21 -
Yiwu Heimahui Enterprise Service Co., Ltd. Information service 345,800.00 -
fee
Yiwu Market Development Group Co., Ltd. Software service fee 292,500.00 -
Yourworld International Conference Center Company of Product sales and - 410,332.78
Yiwu Market Development Group Co., Ltd. washing fees
Yiwu Jinyue Shangbo Real Estate Co., Ltd Advertising - 97,924.53
production costs
Yiwu Security Service Co., Ltd. Meal expenses - 57,390.00
Zhejiang YXE Supply Chain Management Co., Ltd. Payment for goods - 36,196.94
Yiwu Shangbo Yungu Enterprise Management Co., Ltd. Advertising - 16,677.36
production costs
Yiwu Hongtu Shangbo Real Estate Co., Ltd Advertising - 14,433.96
production costs
Yiwu Huishang Micro-finance Co., Ltd. Payment for goods - 10,996.30
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
Starting Ending Entrustment
date of date of Pricing of income/contr
Name of Name of Type of
entrustm entrustm entrustment acting income
consignor/em consignee/cont entrusted/contr
ent ent income/contr recognized in
ployer ractor acted assets
/contract /contract acting income the current
ing ing period
Yiwu Market The Company Entrustment of Feb 1, Jan 31, Negotiated 1,220,016.70
Development other assets 2020 2025 price
Group Co.,
Ltd.
Notes on entrustment/contracting from related parties
√Applicable □Not applicable
According to the management contract signed between the Company and Yiwu Market
Development Group Co., Ltd. for the Yourworld International Conference Center, the Company
is entrusted to manage the Yourworld International Conference Center Hotel located at No. 100
Xingfuhu Road, Yiwu City. The hotel management fee charged during this reporting period was
RMB 1,220,016.70 (January-June 2023: RMB 1,973,291.12).
Entrustment/contracting from the Company:
□ Applicable √Not applicable
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Semi-annual Report for 2024
Notes on related-party management/contracting
□ Applicable √Not applicable
(3). Related leasing
The Company as the lessor:
√Applicable □Not applicable
Unit: RMB
Rental income Rental income
Name of lessee Type of leased asset recognized in the recognized in the
current period previous period
Yiwu Shangbo Yungu Enterprise Office space 485,524.71 292,115.22
Management Co., Ltd.
Yiwu China Commodities City Property Office space 367,373.40 494,462.28
Development Co., Ltd.
Yiwu Market Development Service Center Parking lot 300,962.77 320,811.73
Co., Ltd.
Yiwu China Commodities City Property Office space 234,964.68 97,139.70
Service Co., Ltd.
Yiwu Shanglv Warehouse and parking 229,357.80 917,431.19
lot
Yiwu Huishang Redbud Capital Office space 143,977.85 136,139.73
Management Co., Ltd.
Yiwu Meipinshu Supply Chain Management Office space 107,716.98 174,028.87
Co., Ltd.
Yiwu Digital Port Technology Co., Ltd. Office space 106,579.08 118,715.50
Yiwu Huishang Micro-finance Co., Ltd. Auxiliary buildings 78,360.00 81,909.41
Zhijie Yuangang Office space 72,672.18 74,028.00
Hangzhou MicroAnts Co., Ltd. Office space 29,524.76 81,183.79
189 / 213
Semi-annual Report for 2024
The Company as the lessee
√Applicable □Not applicable
Unit: RMB
Variable lease
Simplified treatment of
payments not
rental expenses for Interest expense on
included in the Increased
short-term leases and Rent paid lease liability
measurement of the right-of-use assets
leases of low-value assets assumed
lease liability (if
Type of (if applicable)
lessor applicable)
leased
name Amou Amou Amou Amou
asset
Amount in nt in Amount in nt in Amount in nt in Amount in nt in Amount in
Amount in
the prior the the prior the the prior the the prior the the prior
the current
correspondi curren correspondi curren correspondi curren correspondi curren correspondi
period
ng period t ng period t ng period t ng period t ng period
period period period period
Yiwu China
Commoditi
Warehous 7,512,968. 7,512,968.8
es City - - - - - -
es 82 2
Holdings
Limited
Notes on related-party lease
√Applicable □Not applicable
The Group rent office spaces from above related parties at market prices
190 / 213
Semi-annual Report for 2024
(4). Related guarantees
The Company as the guarantor
√Applicable □Not applicable
Unit: RMB
Amount of Starting date of Expiry date of the Is the guarantee
The guaranteed
guarantee the guarantee guarantee fulfilled in full
Yiwu Shanglv 26,591,731.09 Jul 1, 2015 Dec 15, 2026 No
The Company as the guaranteed party
□ Applicable √Not applicable
Notes on related-party guarantees
√Applicable □Not applicable
The Group provided guarantee for the borrowings of Yiwu Shanglv. As of June 30, 2024,
Yiwu Shanglv actually borrowed RMB 54.2688 million ( December 31, 2023: RMB 93.3773
million ) from banks. According to the guarantee contract, the Group assumed liability for RMB
26.5917 million (December 31, 2023: RMB 45.7549 million). Yiwu State-owned Capital
Operation Co., Ltd. provided a counter-guarantee
(5). Related-party fund lending
√Applicable □Not applicable
Unit: RMB
Maturity
Related party Amount Starting date Description of
date
Borrowings
In 2022, the Group transferred a total of
RMB 23,996,981.25 from Chengzhen
Property, according to the shareholding
ratio, at the annual interest rate of 0%. As of
Chengzhen
23,996,981.25 Jan 18, 2022 June 30, 2024, RMB 326,400.00 has been
Property
transferred back, and the remaining fund
repayment date would be determined based
on the funding needs of Chengzhen Property
projects.
Yiwu Guoshen
The Group allocated a total of RMB
Shangbo 230,600,000.00 Dec 31, 2022
230,600,000.00 of surplus funds from
Property Co., Ltd.
Guoshen Shangbo in 2022. The allocations
Yiwu Guoshen
were based on the share holding rate and
Shangbo 294,000,000.00 Jun 29, 2023
the annual interest rates were 0%. The
Property Co., Ltd.
Group allocated a total of RMB
Yiwu Guoshen
489,988,200.00 of surplus funds from
Shangbo 98,000,000.00 Oct 30, 2023
Guoshen Shangbo in 2023. The repayment
Property Co., Ltd.
date would be determined according to the
Yiwu Guoshen
funding needs of Guoshen Shangbo
Shangbo 97,988,200.00 Nov 1, 2023 projects.
Property Co., Ltd.
The Company received a pre-dividend of
RMB 64,418,683.00 from Rongshang
Yiwu Rongshang Property in 2022, and the specific date of
64,418,683.00 Jun 30, 2022
Property Co., Ltd. repayment of funds would be determined
according to the distribution of dividend
resolutions.
191 / 213
Semi-annual Report for 2024
The Company received a pre-dividend of
Huishang Zijing 4,500,000.00 Dec 31, 2021 RMB 4,500,000.00 from Huishang Redbud
in 2021, a pre-dividend of
Huishang Zijing 12,000,000.00 Dec 31, 2022 RMB12,000,000.00 from Huishang Redbud
in 2022, and a pre-dividend of RMB
2,250,000.00 from Huishang Redbud in
Huishang Zijing 2,250,000.00 Dec 29, 2023 2022. The specific date of return of funds
would be determined according to the
distribution of dividend resolutions.
Related party Amount Starting date Maturity Description of
date
Lending to
JEBEL ALI FREE
ZONE TRADER
MARKET
DEVELOPMENT 63,465,484.42 Mar 9, 2020
AND In 2020, the Group provided JEBEL ALI
OPERATION FREE ZONE TRADER MARKET
FZCO DEVELOPMENT AND OPERATION FZCO
JEBEL ALI FREE with financial assistance totaling RMB
ZONE TRADER 63,465,484.42; in 2021, the Group provided
MARKET it with financial assistance totaling RMB
DEVELOPMENT 109,636,517.09 Mar 31, 2021 109,636,517.09; in 2022, the Group
AND provided it with financial assistance totaling
OPERATION RMB 41,772,885.00, all at an annual
FZCO interest rate of 6-month average EIBOR
JEBEL ALI FREE plus 5%. The repayment term of the
ZONE TRADER financial assistance would be determined
MARKET based on the progress of the project.
DEVELOPMENT 41,772,885.00 May 12, 2022
AND
OPERATION
FZCO
(6). Asset transfer and debt restructuring of related parties
□ Applicable √Not applicable
(7). Compensation for key officers
√Applicable □Not applicable
Unit: RMB10,000
Amount in the prior
Item Amount in the current period
corresponding period
Remunerations of key officers 1,231.90 1,107.37
(8). Other related transactions
√Applicable □Not applicable
Related party entrusted loan
Unit: RMB
Unit June 30, 2024 2023
Yisha Chengdu International Trade City Co., 48,000,000.00 48,000,000.00
Ltd.
After deliberation and approval at the fifth meeting of the ninth Board of Directors held by
the Group on December 15, 2022, Yiwugou, an indirectly controlled subsidiary of the Group,
192 / 213
Semi-annual Report for 2024
provided an entrusted loan of RMB 48 million to Yisha Chengdu International Trade City Co.,
Ltd., a minority shareholder of Yiwugou, in the form of monetary funds through Yiwu Branch of
Agricultural Bank of China Co., Ltd., with a term of 2 years and an annual interest rate of 5.5%.
6. Unsettled items such as accounts receivable and related parties payable
(1). Receivable items
√Applicable □Not applicable
Unit: RMB
Closing balance Opening balance
Item Related party Bad debt Bad debt
Book balance Book balance
provision provision
Accounts Yiwu Shanglv Investment 1,921,620.36 207.17 7,824.20 149.10
receivable Development Co., Ltd.
Yourworld International
Accounts Conference Center Company of
617,710.49 66.60 535,559.20 10,205.81
receivable Yiwu Market Development Group
Co., Ltd.
Accounts Yiwu Meipinshu Supply Chain
118,567.10 12.78 - -
receivable Management Co., Ltd.
Accounts Zhejiang YXE Supply Chain
175.20 0.02 - -
receivable Management Co., Ltd.
Accounts Yiwu China Commodities City
- - 711,617.24 13,307.24
receivable Property Service Co., Ltd.
Accounts Yiwu Market Development Group
- - 292,500.00 5,573.98
receivable Co., Ltd.
Accounts Yiwu China Commodities City
- - 999.00 19.04
receivable Property Development Co., Ltd.
Total 2,658,073.15 286.57 1,548,499.64 29,255.17
Other Yiwu Market Development Group
340,691.60 - 440,168.00 -
receivables Co., Ltd.
Other Yiwu China Commodities City
231,250.00 - 132,400.00 -
receivables Property Service Co., Ltd.
Other Yiwu Huishang Redbud Capital
1,912.00 - - -
receivables Management Co., Ltd.
Other Zhejiang Xingfuhu Sports
533.40 - 148.30 -
receivables Development Co., Ltd.
Other
Zhijie Yuangang 214.40 - -
receivables
Other Yiwu Market Development Service
- - 42,393.12 -
receivables Center Co., Ltd.
Other
Hangzhou MicroAnts Co., Ltd. - - 342.58 -
receivables
Total 574,601.40 - 615,452.00 -
Long-term Yiwu Shanglv
31,850,000.00 - 31,850,000.00 -
receivables
JEBEL ALI FREE ZONE TRADER
Long-term
MARKET DEVELOPMENT AND 252,848,048.35 - 238,905,772.12 -
receivables
OPERATION FZCO
Total 284,698,048.35 - 270,755,772.12 -
193 / 213
Semi-annual Report for 2024
(2). Payable items
√Applicable □Not applicable
Unit: RMB
Item Related party Closing book Opening book
balance balance
Yiwu China Commodities City Property Service Co., 1,819,306.37 5,606,633.72
Accounts payable
Ltd.
Accounts payable Yiwu Digital Port Technology Co., Ltd. 1,692,174.34 1,692,174.34
Accounts payable Zhejiang Yemai Data Technology Co., Ltd. 455,475.28 629,311.13
Yiwu Shangbo Yungu Enterprise Management Co., - 3,592,709.55
Accounts payable
Ltd.
Accounts payable Yiwu Agriculture Development Co., Ltd. - 402,739.20
Total 3,966,955.99 11,923,567.94
Advance receipts Zhijie Yuangang 699,668.24 274,063.34
Advance receipts Yiwu Shanglv Investment Development Co., Ltd. 420,489.29 649,847.09
Yiwu China Commodities City Property 329,641.51 824,103.79
Advance receipts
Development Co., Ltd.
Yiwu Meipinshu Supply Chain Management Co., 55,363.39 209,100.37
Advance receipts
Ltd.
Advance receipts Yiwu Digital Port Technology Co., Ltd. 54,843.54 156,951.99
Yiwu China Commodities City Property Service Co., - 932,547.16
Advance receipts
Ltd.
Yiwu Shangbo Yungu Enterprise Management Co., - 584,230.37
Advance receipts
Ltd.
Advance receipts Yiwu Market Development Group Co., Ltd. - 403,301.89
Yiwu Huishang Redbud Capital Management Co., - 90,759.83
Advance receipts
Ltd.
Total 1,560,005.97 4,124,905.83
Yiwu China Commodities City Property Service Co., 129,540.17 139,919.81
Contract liabilities
Ltd.
Contract liabilities Yiwu Digital Port Technology Co., Ltd. 49,636.81 45,657.30
Contract liabilities Yiwu Huishang Micro-finance Co., Ltd. 34,591.20 11,792.46
Yiwu Shangbo Yungu Enterprise Management Co., - 4,880.58
Contract liabilities
Ltd.
Total 213,768.18 202,250.15
Other payables Yiwu Guoshen Shangbo Property Co., Ltd. 720,588,200.00 720,588,200.00
Other payables Yiwu Rongshang Property Co., Ltd. 64,418,683.00 64,418,683.00
Other payables Yiwu Chengzhen Property Co., Ltd. 23,670,581.25 23,996,981.25
Other payables Yiwu Huishang Redbud Equity Investment Co., Ltd. 18,750,000.00 18,750,000.00
Other payables Yiwu China Commodities City Holdings Limited 2,000,000.00 -
Other payables Zhijie Yuangang 472,800.00 322,800.00
Yiwu China Commodities City Property
Other payables 240,000.00 240,000.00
Development Co., Ltd.
Yiwu Shangbo Yungu Enterprise Management Co.,
Other payables 200,000.00 200,000.00
Ltd.
Yourworld International Conference Center
Other payables Company of Yiwu Market Development Group Co., 150,043.37 96,522.47
Ltd.
Other payables Yiwu Heimahui Enterprise Service Co., Ltd. 100,000.00 100,000.00
Yiwu Meipinshu Supply Chain Management Co.,
Other payables 88,050.00 57,000.00
Ltd.
Other payables Yiwu Digital Port Technology Co., Ltd. 32,000.00 25,000.00
Yiwu Huishang Redbud Phase II Investment
Other payables - 5,000,000.00
Partnership (Limited Partnership)
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Other payables Zhejiang Yemai Data Technology Co., Ltd. - 70,430.19
Other payables Hangzhou MicroAnts Co., Ltd. - 26,000.00
Yiwu China Commodities City Property Service Co.,
Other payables - 5,062.00
Ltd.
Other payables Yiwu China Commodities City Trading Co., Ld. - 2,500.00
Total 830,710,357.62 833,899,178.91
(3). Other projects
√Applicable □Not applicable
Unit: RMB
Item Related party Closing book Opening book
balance balance
Debt Yisha Chengdu International Trade City 48,066,000.00 48,073,333.34
investment Co., Ltd.
s
7. Related-party commitments
□ Applicable √Not applicable
8. Other
□ Applicable √Not applicable
XV. Share-based payment
1. Various equity instruments
√Applicable □Not applicable
Quantity unit: share Amount unit: RMB
Grant object Grant in this period Unlocked in this period Expired in this period
category Quantity Amount Quantity Amount Quantity Amount
Management - - 12,249,600.00 36,013,824.00 - -
personnel
R&D - - 165,000.00 485,100.00 - -
personnel
Total - - 12,414,600.00 36,498,924.00 - -
Stock options or other equity instruments issued to the public as of the end of the period
√Applicable □Not applicable
Other equity instruments issued to the public as of the
end of the period
Grant object category
The range of exercise Remaining term of the
price contract
Management and R&D 2.94/2.39 60 months from the date of
personnel grant
Other statements
Nil
2. Share-based payments settled in equity
√Applicable □Not applicable
Unit: RMB
Method for determining the fair value of equity Market price on grant day
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instruments on the grant date
Important parameters of fair value of equity /
instruments on grant date
Basis for determining the number of exercisable Determined based on the number of
equity instruments incentive objects that have reached the
assessment target, through annual
assessment on the Company’s financial
performance indicators and personal
performance indicators.
Reason for the significant difference between the Nil
estimates in the current period and in the
previous period
Cumulative amount of equity-settled share-based 82,810,770.00
payments included in the capital reserve
Other statements
Nil
3. Share-based payments settled in cash
□ Applicable √Not applicable
4. Share-based payment expenses in this period
√Applicable □Not applicable
Unit: RMB
Grant object category Equity-settled share-based Cash-settled share-based
payment expenses payment expenses
Administrative expenses 2,881,766.53 /
R&D expenses 67,229.32 /
Total 2,948,995.85 /
Other statements
On December 10, 2020, the Fifth Extraordinary General Meeting of Shareholders of the
Company approved the Proposal on the 2020 Restricted Stock Incentive Plan (Draft) and its
Abstract, granting stock options to 405 eligible directors, senior management, core technical
personnel, and other personnel deemed necessary by the Board of Directors to be incentivized.
The price for the restricted stocks in the first grant under this plan was RMB 2.94 per share; The
price for the restricted stocks in the reserved grant part was RMB 2.39 per share.
On September 6, 2021, Zhejiang Zhicheng Certified Public Accountants LLP issued the
capital verification report (ZZKYZ [2021] No. 17): The Company has received a total of RMB
5,592,600.00 for subscription of restricted shares from 31 restricted stock incentive objects,
including RMB 2,340,000.00 in newly registered capital (share capital), and RMB 3,252,600.00
in capital reserve. The registered capital and share capital of the Company before the capital
increase were both RMB 5,489,914,176.00, and the registered capital and share capital after
the change were both RMB 5,492,254,176.00. 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 part 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".
5. Modification and termination of share-based payment
□ Applicable √Not applicable
6. Other
□ Applicable √Not applicable
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XVI. Commitments and contingencies
1. Important commitments
√Applicable □Not applicable
Important external commitments, nature and amount thereof as of the balance sheet dates
Unit: RMB
Capital commitments June 30, 2024 2023
Signed but not provided 4,281,179,919.98 4,549,081,338.19
In 2017, the Group’s wholly-owned subsidiary Yiwu China Commodities City Financial
Holdings Co., Ltd. (“CCCF”) and Shanghai Fuxing Industry Group Co., Ltd. (“Fuxing Group”)
jointly established an industry fund Yiwu China Commodities City Fuxing Investment Center
(Limited Partnership) (hereinafter referred to as the “FOF”). The FOF as a limited partner
invested in 12 sub-funds including Yiwu Shangfu Chuangzhi Investment Center (Limited
Partnership) (“Shangfu Chuangzhi Fund”). CCCF subscribed for capital contribution of RMB
998 million in the FoF as a limited partner, accounting for 49.9% of the total capital contribution,
and has paid in RMB 102.92 million. The unpaid portion of its subscribed capital contribution
was promised to be RMB 895.08 million and was not subject to a term. CCCF also made capital
contribution of RMB 9.8 million (49% equity) to Yiwu China Commodities City Investment and
Management Co., Ltd. (hereinafter referred to as the “CCCIM”), which was a general partner of
the above FoF and sub-funds. Fuxing made capital contribution of 51% to and had control over
CCCIM.
Shangfu Chuangzhi Fund raised funds of RMB 823.36 million in total. The FoF has
subscribed for and paid in capital contribution of RMB 205.84 million as a limited partner
(including the above RMB 102.92 million from CCCIM and the rest was contributed by Fuxing,
the other limited partner of the FoF). As the other limited partner of Shangfu Chuangzhi Fund,
CCCF has separately subscribed for and paid in capital contribution of RMB 617.51 million. In
addition, neither the Group nor CCCF have invested in other sub-funds of the FoF. Shangfu
Chuangzhi Fund subsequently subscribed to the increased registered capital of Hubei Asset
Management Co., Ltd. for RMB 820.54 million, holding 22.6667% of its equity. In 2019, 9 out of
the 12 sub-funds mentioned above were cancelled.
In 2018, CCCF learned during its after-investment follow-up management that Fuxing and
its actual controller ZHU Yidong were suspected of having committed a criminal offense and the
22.667% equity held by Shangfu Chuangzhi Fund in Hubei Provincial Asset Management Co.,
Ltd. was frozen by the Public Security Bureau of Shanghai due to Fuxing’s contribution to the
sources of the capital contribution. As of the date of approval for the financial statements, the
relevant equity was still frozen.
As of the approval date of the financial statements, the Group had not received any notice
of capital contribution other than the above contributions that had been made or any notice of
action involving the Group, CCCF, FOF and its sub-funds.
In addition, as of June 30, 2024, the Group had other investment commitments totaling
RMB 202.7182 million (December 31, 2023: RMB 117.68 million).
For lease commitment as a lessee, please refer to Note VII. 82.
2. Contingencies
(1). Important contingencies on the balance sheet date
√Applicable □Not applicable
Unit: RMB
Item June 30, 2024 2023
Contingent liabilities resulting from 31,202,981.44 50,384,223.92
the guarantee provided externally
According to relevant regulations, the Group is required to provide mortgage loan
guarantees to the bank for the sale of commercial housing before the purchaser of the housing
has completed the property ownership certificate. The outstanding guarantee amount as of
June 30, 2024 was RMB 4,611,250.35 (December 31, 2023: RMB 4,629,333.68). Those
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Semi-annual Report for 2024
guarantees would be released after the issuance of the property ownership certificates and are
thus little likely to incur losses. Therefore, the management believed that it was not necessary to
make provision for the guarantees.
According to the resolution of the 15th meeting of the 7th Board of Directors on Jul 1, 2015,
the Group applied to the Yiwu Branch of ABC for a loan of RMB 750 million for Yiwu Shanglv
and provided guarantee based on its shareholding ratio. The guarantee was a joint and several
liability guarantee, the maximum amount of guarantee was RMB 367.5 million and the term was
11 years. As of June 30, 2024, Yiwu Shanglv actually borrowed RMB 54,268,838.96 from banks
(December 31, 2023: RMB 93,377,327.02). According to the guarantee contract, the Group
should bear a guarantee liability of RMB 26,591,731.09 (December 31, 2023: RMB
45,754,890.24) to Yiwu Branch of Agricultural Bank of China. Yiwu State-owned Capital
Operation Co., Ltd. provided a counter-guarantee for this guarantee.
(2). The Company should also provide an explanation if there are no important or
contingent matters that need to be disclosed:
□ Applicable √Not applicable
3. Other
□ Applicable √Not applicable
XVII. Matters after the balance sheet date
1. Important non-adjustment events
√Applicable □Not applicable
Unit: RMB 100 million
Effect on Reasons
financial status for inability
Item Content
and operating to estimate
results the effect
Issuance of On July 29, 2024, the Company issued Zhejiang China
ultra-short Commodities City Group Co., Ltd.'s 2024 super-short-term
term financing bonds (Issue 3) for RMB 1 billion, with a term of 268
financing days and a one-time repayment of principal and interest when
notes due, at an issuance interest rate of 2.00%.
Equity On July 20, 2024, the Company’s original wholly-owned
transfer of subsidiary Yiwu Xingchen Enterprise Management Co., Ltd.
wholly-owned completed the change registration with market regulation
subsidiary authorities for the transfer of 100% equity in it to the Company's
[Note 6] controlling shareholder Yiwu China Commodities City Holdings
Limited. The equity transfer has been fully completed.
Note 6: The equity transfer and related debt repayment were completed on July 10, with a
total amount of RMB 2.574 billion received; The equity delivery was completed on July 18. After
the completion of this transaction, monetary funds increased by RMB 2.574 billion (partially
used to repay interest-bearing debts), inventory and long-term assets decreased by
approximately RMB 1.838 billion, capital reserve increased by RMB 681 million, and minority
shareholders' equity increased by RMB 55 million.
2. Profit distribution
□ Applicable √Not applicable
3. Sales return
□ Applicable √Not applicable
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4. Other events after the balance sheet date
□ Applicable √Not applicable
XVIII. Other important matters
1. Correction of previous accounting errors
(1). Retrospective restatement
□ Applicable √Not applicable
(2). Prospective application
□ Applicable √Not applicable
2. Significant debt restructuring
□ Applicable √Not applicable
3. Exchange of assets
(1). Non-monetary asset exchange
□ Applicable √Not applicable
(2). Exchange of other assets
□ Applicable √Not applicable
4. Pension 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:
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Semi-annual Report for 2024
(a) Market operation segment refers to the business that the Group is engaged in market
operation, including the collection of business space usage fees and the rent of auxiliary
buildings and office buildings;
(b) The trade services division includes providing market-related supporting services;
(c) The supporting service division refers to the operational activities of hotels, including
guest room accommodation, catering services, as well as the design, production, publishing,
and advertising agency business;
(d) The commodity sales division refers to the business of buying and selling commodities
such as export trade.
The transfer pricing between divisions is made based on the prices offered to third parties
and the then prevailing market prices.
The management manages the operating results of each business unit separately for the
purpose of allocating resources and evaluating performance. Division performance is evaluated
based on the reported division profits.
(2). Financial information of reporting divisions
√Applicable □Not applicable
Unit: RMB million
Item Market Trade Supporting Sales of Set-offs Total
operation services services goods among
divisions
Revenue from
2,269.00 371.00 231.00 3,895.00 - 6,766.00
external transactions
Revenue from
inter-division 30.00 38.00 16.00 3.00 87.00 -
transactions
Profits before tax 1,801.00 133.00 -6.00 -14.00 4.00 1,910.00
Total assets 46,501.00 11,631.00 1,514.00 2,519.00 26,143.00 36,022.00
Total liabilities 27,267.00 5,872.00 1,384.00 2,373.00 18,971.00 17,925.00
Capital expenditures 215.00 335.00 1.00 - - 551.00
Long-term equity
investment in joint
5,991.00 946.00 - 2.00 - 6,939.00
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 notes
□ Applicable √Not applicable
7. Other important transactions and events that have influence on investors’ decisions
□ Applicable √Not applicable
8. Other
□ Applicable √Not applicable
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XIX. Notes to Main Items in the Financial Statements of the Parent Company
1. accounts receivable
(1). Disclosure by aging
√Applicable □Not applicable
Unit: RMB
Account aging Closing book balance Opening book balance
Within 1 year
Including: sub-items
Within 1 year 8,236,506.26 32,222,205.22
Within 1 year 8,236,506.26 32,222,205.22
1 to 2 years 304,582.11 621,620.47
2 to 3 years 1,522,338.68 1,195,926.30
Total 10,063,427.05 34,039,751.99
(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 (%)
Provision for bad debts on a grouping
10,063,427.05 100.00 121,951.25 1.21 9,941,475.80 34,039,751.99 100.00 98,315.30 0.29 33,941,436.69
basis
Among them:
Provision for bad debts by grouping of 10,063,427.05 100.00 121,951.25 1.21 9,941,475.80 34,039,751.99 100.00 98,315.30 0.29 33,941,436.69
credit risk characteristics
Total 10,063,427.05 / 121,951.25 / 9,941,475.80 34,039,751.99 / 98,315.30 / 33,941,436.69
Provision for bad debts on an individual basis:
□ Applicable √Not applicable
Provision for bad debts on a grouping basis:
√Applicable □Not applicable
Provision items on a grouping basis: by grouping of credit risk characteristics
Unit: RMB
Closing balance
Name
Accounts receivable Bad debt provision Provision ratio (%)
Provision for bad
debts by grouping
10,063,427.05 121,951.25 1.21
of credit risk
characteristics
Total 10,063,427.05 121,951.25 1.21
Description of provision for bad debts on a grouping basis:
□ Applicable √Not applicable
Provision for bad debts based on the general model of expected credit losses
√Applicable □Not applicable
Unit: RMB
Stage 1 Stage 2 Stage 3
Expected credit Expected credit
Expected
loss in the entire loss in the entire
Bad debt provision credit loss in Total
duration (credit duration (credit
the coming 12
has not been has been
months
impaired) impaired)
Balance as of January 1, 98,315.30 98,315.30
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Semi-annual Report for 2024
2024
Movements for the current
period
Provision made in the 127,476.74 127,476.74
current period
Current reversal 103,840.79 103,840.79
Balance as of June 30, 121,951.25 121,951.25
2024
Classification basis and bad debt provision ratio for each stage
Nil
Explanation of significant changes in the book balance of accounts receivable with changes in
loss provisions in this period:
□ Applicable √Not applicable
(3). The situation of bad debt provision
√Applicable □Not applicable
Unit: RMB
Amount of change during the
Opening current period
Category Closing balance
balance Recovery or
Provision
reversal
Bad debt provision 98,315.30 127,476.74 103,840.79 121,951.25
for accounts
receivable
Total 98,315.30 127,476.74 103,840.79 121,951.25
In which the recovered or reversed amount is important:
□ Applicable √Not applicable
Other statements
Nil
(4). Accounts receivable actually written off during the current period
□ Applicable √Not applicable
Information of write-off of important accounts receivable
□ Applicable √Not applicable
Description of accounts receivable written off:
□ Applicable √Not applicable
(5). The five largest accounts receivable and contract assets aggregated by debtor at the
end of the period
□ Applicable √Not applicable
Other notes:
√Applicable □Not applicable
The Company mainly engages in market operations and hotel services, and the business
income obtained from individual customers is very low. Therefore, the total accounts receivable
from the top five customers account for a small proportion of the Company's total accounts
receivable balance.
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Semi-annual Report for 2024
2. Other receivables
Presentation of items
√Applicable □Not applicable
Unit: RMB
Item Closing balance Opening balance
Other receivables 28,372,376.18 12,892,088.01
Total 28,372,376.18 12,892,088.01
Other notes:
□ Applicable √Not applicable
Interest receivable
(1). Classification of interest receivable
□ Applicable √Not applicable
(2). Significant overdue interest
□ Applicable √Not applicable
(3). Categorized disclosure based on the bad debt provision method
□ Applicable √Not applicable
Provision for bad debts on an individual basis:
□ Applicable √Not applicable
Explanation for provision for bad debts on an individual basis:
□ Applicable √Not applicable
Provision for bad debts on a grouping basis:
□ Applicable √Not applicable
(4). Provision for bad debts based on the general model of expected credit losses
□ Applicable √Not applicable
(5). The situation of bad debt provision
□ Applicable √Not applicable
In which the recovered or reversed amount is important:
□ Applicable √Not applicable
Other notes:
Nil
(6). Interest receivable actually written off in this period
□ Applicable √Not applicable
Important interest receivable written off among them
□ Applicable √Not applicable
Explanation of writing-off:
□ Applicable √Not applicable
Other notes:
□ Applicable √Not applicable
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Dividends receivable
(1). Dividend receivable
□ Applicable √Not applicable
(2). Important dividend receivable with an account aging longer than 1 year
□ Applicable √Not applicable
(3). Categorized disclosure based on the bad debt provision method
□ Applicable √Not applicable
Provision for bad debts on an individual basis:
□ Applicable √Not applicable
Explanation for provision for bad debts on an individual basis:
□ Applicable √Not applicable
Provision for bad debts on a grouping basis:
□ Applicable √Not applicable
(4). Provision for bad debts based on the general model of expected credit losses
□ Applicable √Not applicable
(5). The situation of bad debt provision
□ Applicable √Not applicable
In which the recovered or reversed amount is important:
□ Applicable √Not applicable
Other notes:
Nil
(6). Dividends receivable actually written off in this period
□ Applicable √Not applicable
Important dividend receivables written off among them
□ Applicable √Not applicable
Explanation of writing-off:
□ Applicable √Not applicable
Other notes:
□ Applicable √Not applicable
Other receivables
(1). Disclosure by aging
√Applicable □Not applicable
Unit: RMB
Account aging Closing book balance Opening book balance
Within 1 year
Including: sub-items
Within 1 year 27,240,027.28 11,372,670.58
Within 1 year 27,240,027.28 11,372,670.58
1 to 2 years 365,703.11 230,770.07
2 to 3 years 74,836.00 1,086,758.22
Over 3 years 1,399,486.10 957,449.34
Bad debt provision for other -707,676.31 -755,560.20
receivables
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Semi-annual Report for 2024
Total 28,372,376.18 12,892,088.01
(2). Categorized by nature of accounts receivable
√Applicable □Not applicable
Unit: RMB
Nature of receivable Closing book balance Opening book balance
Withholdings and deposits 28,465,429.86 13,444,205.52
Reserve 614,622.63 203,442.69
Total 29,080,052.49 13,647,648.21
(3). Provision for bad debts
√Applicable □Not applicable
Unit: RMB
Stage 1 Stage 2 Stage 3
Expected credit Expected credit
Expected credit
loss in the entire loss in the entire Total
Bad debt provision loss in the
duration (credit duration (credit
coming 12
has not been has been
months
impaired) impaired)
Balance as of January 1, 755,560.20 755,560.20
2024
Movements for the current
period
Provision made in the 26,171.69 26,171.69
current period
Current reversal 74,055.58 74,055.58
Balance as of June 30, 707,676.31 707,676.31
2024
Classification basis and bad debt provision ratio for each stage
Nil
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). The situation of bad debt provision
√Applicable □Not applicable
Unit: RMB
Amount of change during the
Opening current period Closing
Category
balance Recovery or balance
Provision
reversal
Bad debt provision for other 755,560.20 26,171.69 74,055.58 707,676.31
receivables
Total 755,560.20 26,171.69 74,055.58 707,676.31
In which the recovered or reversed amount is important:
□ Applicable √Not applicable
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Semi-annual Report for 2024
Other statements
Nil
(5). Other receivables actually written off during the current period
□ Applicable √Not applicable
Of which, important write-offs of other receivables:
□ Applicable √Not applicable
Notes on the write-off of other receivables:
□ Applicable √Not applicable
(6). The five largest other accounts receivable aggregated by debtor at the end of the
period
√Applicable □Not applicable
Unit: RMB
Closing
As a percentage of
balance of
Closing the closing balance Nature of Account
Debtor bad debt
balance of total other receivable aging
provision
receivables (%)
Yiwu Junhuhui Transactions
Within 1
Entertainment Co., 6,212,477.30 21.36 between -
year
Ltd companies
Jiangdong
Sub-district Office Transactions
Within 1
of Yiwu Municipal 2,631,845.00 9.05 between -
year
People's companies
Government
Yiwu Power
Transmission and
Guarantee Within 1
Transformation 1,287,187.00 4.43 -
deposit year
Engineering Co.,
Ltd.
Zhejiang Yuntong Transactions
Over 3
Advertising Co., 596,580.00 2.05 between 596,580.00
years
Ltd. companies
Yiwu Branch of
China Telecom Electricity Within 1
432,269.96 1.49 -
Corporation charge year
Limited
Total 11,160,359.26 38.38 / / 596,580.00
(7). Reported as other receivables due to centralized fund management
□ Applicable √Not applicable
Other notes:
□ Applicable √Not applicable
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Semi-annual Report for 2024
3. Long-term equity investment
√Applicable □Not applicable
Unit: RMB
Closing balance Opening balance
Item Impairment Impairment
Book balance Book value Book balance Book value
provision provision
Investment in subsidiaries 4,825,639,030.22 - 4,825,639,030.22 4,720,325,641.28 - 4,720,325,641.28
Investment in associates and 5,992,891,823.99 - 5,992,891,823.99 5,877,913,559.04 - 5,877,913,559.04
joint ventures
Total 10,818,530,854.21 - 10,818,530,854.21 10,598,239,200.32 - 10,598,239,200.32
(1) Investment in subsidiaries
√Applicable □Not applicable
Unit: RMB
Decrease in Closing balance of
Increase in the
Investee Opening balance the current Closing balance impairment
current period
period provision
Yiwu China Commodities City Financial 2,239,709,817.88 91,741.10 - 2,239,801,558.98 -
Holdings Co., Ltd.
Yiwu Shangbo Yuncang Enterprise 500,000,000.00 - - 500,000,000.00 -
Management Co., Ltd.
Zhejiang Xunchi Digital Technology Co., 444,496,865.60 28,501.54 - 444,525,367.14 -
Ltd.
Yiwu Shangbo Shuzhi Enterprise 300,000,000.00 - - 300,000,000.00 -
Management Co., Ltd.
Yiwu Shangcheng Gonglian Enterprise 200,000,000.00 - - 200,000,000.00 -
Management Co., Ltd.
Zhejiang China Commodities City Group 120,170,407.81 24,701.34 - 120,195,109.15 -
Commercial Factoring Co., Ltd.
Yiwu China Commodities City Big Data Co., 105,483,537.63 244,502.42 - 105,728,040.05 -
Ltd.
Yiwu China Commodities City Import and 102,548,043.93 62,703.40 - 102,610,747.33 -
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Export Co., Ltd.
Yiwu China Commodities City Logistics and 102,460,999.18 136,509.74 - 102,597,508.92 -
Distribution Co., Ltd.
Yiwu China Commodities City Overseas 101,856,782.73 122,301.09 - 101,979,083.82 -
Investment and Development Co., Ltd.
Yiwu China Commodities City Supply Chain 101,749,098.22 113,392.84 - 101,862,491.06 -
Management Co., Ltd.
Yiwu China Commodities City Tourism 101,233,724.56 52,569.52 - 101,286,294.08 -
Development Co., Ltd.
Zhejiang Huajie Investment and 79,050,980.24 3,656,126.42 - 82,707,106.66 -
Development Co., Ltd.
Yiwu Comprehensive Bonded Zone 60,777,551.11 66,840.32 - 60,844,391.43 -
Operation and Management Co., Ltd.
Yiwu China Commodities City Information 51,083,052.18 23,909.63 - 51,106,961.81 -
Technology Co., Ltd.
Hangzhou Shangbo Nanxing Property Co., 50,000,000.00 - - 50,000,000.00 -
Ltd.
Yiwu China Commodities City Exhibition 20,973,615.43 167,842.43 - 21,141,457.86 -
Co., Ltd.
Zhejiang Yindu Hotel Management Co., Ltd. 15,120,730.48 304,492.03 - 15,425,222.51 -
Yiwu China Commodities City Assets 11,971,370.03 118,439.75 - 12,089,809.78 -
Operation and Management Co., Ltd.
Yiwu China Commodities City Research 11,639,064.27 98,815.37 - 11,737,879.64 -
Institute Co., Ltd.
Yiwu Yundailu Data Technology Co., Ltd. - 100,000,000.00 - 100,000,000.00 -
Total 4,720,325,641.28 105,313,388.94 - 4,825,639,030.22 -
(2) Investments in joint ventures and associates
√Applicable □Not applicable
Unit: RMB
Change in the current period Closing
Investment Investment balance of
Opening balance Additional Decrease in Closing balance
Unit gains or losses impairment
investment investment
recognized with provision
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the equity
method
1. Joint ventures
Yiwu Shanglv Investment Development 435,929,928.58 - - 23,714,674.25 459,644,602.83 -
Co., Ltd.
Yiwu Rongshang Property Co., Ltd. 65,650,697.03 - - 180.99 65,650,878.02 -
Yiwu Chuangcheng Property Co., Ltd. 27,685,633.41 - - 565,950.74 28,251,584.15 -
Yiwu Guoshen Shangbo Property Co., 927,219,681.28 - - 1,279,075.67 928,498,756.95 -
Ltd.
Others 23,531,994.72 - - -710,086.13 22,821,908.59 -
Sub-total 1,480,017,935.02 - - 24,849,795.52 1,504,867,730.54 -
2. Associates
Huishang Micro-finance 78,587,936.11 - - 668,603.28 79,256,539.39 -
Chouzhou Financial Lease 574,958,766.29 - - 54,021,989.23 628,980,755.52 -
Pujiang Lvgu Property Co., Ltd. 346,296,866.40 - - 46,319,683.10 392,616,549.50 -
Yiwu China Commodities City Property 3,127,041,142.49 - - -5,218,340.42 3,121,822,802.07 -
Development Co., Ltd.
Zhijie Yuangang 131,982,044.17 - - -5,687,009.55 126,295,034.62 -
Others 139,028,868.56 5,000,000.00 5,000,000.00 23,543.79 139,052,412.35 -
Sub-total 4,397,895,624.02 5,000,000.00 5,000,000.00 90,128,469.43 4,488,024,093.45 -
Total 5,877,913,559.04 5,000,000.00 5,000,000.00 114,978,264.95 5,992,891,823.99 -
(3). Impairment testing of long-term equity investments
□ Applicable √Not applicable
Other notes:
□ Applicable √Not applicable
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4. Operating revenue and operating cost
(1). Overview of operating revenue and operating cost
√Applicable □Not applicable
Unit: RMB
Amount in the prior corresponding
Amount in the current period
Item period
Revenue Cost of sales Revenue Cost of sales
Main business 2,272,200,082.79 453,367,623.13 1,778,783,417.92 476,160,908.86
Other businesses 156,341,744.49 36,812,987.68 144,750,859.24 48,992,546.57
Total 2,428,541,827.28 490,180,610.81 1,923,534,277.16 525,153,455.43
(2). Breakdown information of operating revenue and operating costs
√Applicable □Not applicable
Unit: RMB
Total
Classified by type of contract
Operating revenue Operating cost
Types of goods
Market operation 2,289,518,896.85 366,269,144.95
Supporting services 139,022,930.43 123,911,465.86
Classified by business area
Chinamainland 2,428,541,827.28 490,180,610.81
Classified by contract term
Revenue confirmed at certain time point 67,336,323.58 31,862,677.38
Revenue confirmed during certain time period 2,361,205,503.70 458,317,933.43
Total 2,428,541,827.28 490,180,610.81
Other statements
√Applicable □Not applicable
The income recognized in the current year and included in the opening book value of
contractual liabilities is as follows:
Unit: RMB
Type of contract Current period
Market operation 2,139,554,703.34
Supporting services 12,817,090.96
Total 2,152,371,794.30
(3). Contract performance obligations
□ Applicable √Not applicable
(4). Explanation of allocation to remaining contract performance obligations
□ Applicable √Not applicable
(5). Significant contract changes or significant transaction price adjustments
□ Applicable √Not applicable
Other notes:
The information related to the performance obligations of the Group is as follows:
The use of shops in Yiwu Market and its supporting services
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The contractual performance obligation is fulfilled when providing the use of shops in Yiwu
Market and the supporting services for business. For the use of shops in Yiwu Market and the
supporting services for business, the progress of contract performance is determined based on
the number of using days of the shops. Customers usually need to pay in advance before the
use of shops in Yiwu Market 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
iscollected from the customer first, and the remaining contract price is usually collected upon
the completion of the hotel accommodation services.
Hotel catering business
The performance obligation is fulfilled when the hotel catering services are provided. The
contract price for hotel catering services is usually charged when the hotel catering services are
performed.
Terminable paid use of funds services
The performance obligation is fulfilled when the fixed-time paid funding service is provided.
For the fixed-time paid funding service, the progress of contractual performance is determined
based on the number of using days the fund. For the fixed-time paid funding service, the
contract price is usually charged regularly as agreed in the contract.
5. Investment income
√Applicable □Not applicable
Unit: RMB
Amount in the prior
Amount in the
Item corresponding
current period
period
Income from long-term equity investment calculated 114,978,264.95 1,040,883,650.78
with the equity method
Investment income from disposal of long-term equity - 1,296,480.56
investment
Investment income from disposal of held-for-trading - 13,602.55
financial assets
Return on investment during investment holding 2,475,000.00 2,110,591.00
period of other non-current financial assets
Total 117,453,264.95 1,044,304,324.89
Other notes:
Nil
6. Other
□ Applicable √Not applicable
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XX. Supplementary information
1. Detailed statement of non-recurring gains and losses for the current period
√Applicable □Not applicable
Unit: RMB
Item Amount Description of
Non-current asset disposal gains and losses, including the offsetting
-111,894.84
portion of the provision for impairment of assets
Please refer to
Government grants that are recognized in the current profit or loss, the details of
excluding the government grants that are closely related to the normal government
operation of the Company and provided in a fixed amount or quantity and 10,645,620.69 subsidies
that have a continuous impact on the Company's gains and losses included in
according to the national polices and certain standards other income
for details
Except for effective hedging business related to the normal operation of the
Company, the fair value gains and losses arising from the holding of financial assets
and financial liabilities by non-financial enterprises, as well as the gains and losses
-4,468,954.54
arising from the disposal of financial assets and financial liabilities
Cash
Cash occupation fees charged from non-financial enterprises that are occupation fee
12,872,916.46
recognized in the current profit or loss for receiving
financial aid
Profits and losses arising from external entrusted loans 1,258,704.40
Mainly due to
penalty
Net income from other non-operating activities 14,967,685.21 income for
breach of
contract
Less: effect of income tax 5,461,289.85
Effect of minority interest (after-tax) 628,511.41
Total 29,074,276.12
If the Company recognizes non-recurring profit and loss items that are not listed in the
Explanatory Announcement No. 1 on Information Disclosure of Companies Issuing Securities to
the Public as non-recurring profit and loss items with significant amounts, and define
non-recurring profit and loss items listed in the Explanatory Announcement No. 1 on Information
Disclosure of Companies Issuing Securities to the Public as recurring profit and loss items, the
reasons should be explained.
□ Applicable √Not applicable
Other statements
□ Applicable √Not applicable
2. Return on equity and earnings per share
√Applicable □Not applicable
Weighted EPS
Profits in the reporting period average ROE
(%) Basic EPS Diluted EPS
Net profits attributable to common
7.86 0.27 0.27
shareholders of the Company
Net profits attributable to common
shareholders of the Company after
7.70 0.26 0.26
deducting non-recurring gains and
losses
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3. Differences in accounting data under domestic and foreign accounting standards
□ Applicable √Not applicable
4. Others
□ Applicable √Not applicable
Chairman of Board of Directors: WANG Dong
Date of approving by the Board of Directors for release: August 16, 2024
Amendment
□ Applicable √Not applicable
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