Stock Code: 600415 Stock Abbreviation: 小商品城
Zhejiang China Commodities City Group
Co., Ltd.
Important Note
I. The Board of Directors, the supervisory committee and the directors, supervisors and
senior management of the Company hereby warrant the truthfulness, accuracy and
completeness of the contents of the Annual Report, guarantee that there are no false
representations, misleading statements or material omissions contained in this
Annual Report, and are jointly and severally responsible for the liabilities of the
Company.
II. All directors of the Company were present at the board meeting.
III. Ernst & Young Hua Ming Certified Public Accountants (special general partnership)
has issued a standard unqualified audit opinion for the Company.
IV. ZHAO Wenge, Head of the Company, WANG Dong, Head in charge of accounting, and
ZHAO Difang, Head of the accounting department (Accounting Supervisor), declare
that they warrant the truthfulness, accuracy and completeness of the financial report
in the annual report.
V. The profit distribution plan for the reporting period or the plan for public reserve funds
into share capital that was approved by the board of directors
Based on the total share capital on the registration date of profit distribution equity in 2022,
cash dividends of RMB 0.65 (tax inclusive) will be distributed for every 10 shares. According to
the total share capital of the Company at the end of 2022, cash dividends of RMB
of the Company before the dividend distribution registration date, the scheme of allocation shall
remain unchanged while the total profits distribution will be adjusted accordingly.
VI. Risk statement with forward-looking representations
√Applicable □Not applicable
The forward-looking representations involved in this Report such as future plans and
development strategies do not constitute the Company’s substantial commitments to investors.
Investors shall watch out for the investment risks.
VII. Is the Company’s cash occupied by its controlling shareholder or any of other
affiliates for non-operational purposes?
No
VIII. Has the Company provided external guarantee in violation of the prescribed
decision-making procedures?
No
IX. Whether more than half of the directors can not warrant the truthfulness, accuracy
and completeness of the annual report disclosed by the Company
No
X. Reminder of major risks
The Company has described the risks that may exist in this Report in details. Please refer
to “Potential Risks” in “Section III Discussion and Analysis of Managers” of this Report.
XI. Others
□Applicable √Not applicable
Table of Contents
Accounting statements with the signatures and stamps of the person
incharge of the Company, person in charge of accounting and person
in charge of the accounting body.
Documents for
The original audit report with the seal of the accounting firm and the
Inspection
signature and seal of the certified public accountant
The originals of all company documents and announcements publicly
disclosed during the reporting period
Section I. Definitions
I. Definitions
For the purpose of this Report, unless otherwise stated in the context, the following terms shall
have the following meanings:
Definitions
SCO means Yiwu State-owned Capital Operation Co.,
Ltd.
MDG means Yiwu Market Development Group Co.,
Ltd.
CCCH means Yiwu China Commodities City Holdings
Limited
Zhijie Yuangang means Zhejiang Zhijie Yuangang International
Supply Chain Technology Co., Ltd.
CCCP means Yiwu China Commodities City Property
Development Co., Ltd.
CCCF means Yiwu China Commodities City Financial
Holdings Co., Ltd.
Huishang Micro-finance means Yiwu Huishang Micro-finance Co., Ltd.
Haicheng Company means Haicheng Yiwu China Commodities City
Investment Development Co., Ltd.
Yiwu Shanglv means Yiwu Shanglv Investment Development
Co., Ltd.
Chouzhou Financial Lease means Zhejiang Chouzhou Financial Lease Co.,
Ltd.
Yiwu Shangbo means Yiwu Shangbo Yuncang Enterprise
Management Co., Ltd.
Handing Shangbo means Yiwu Handing Shangbo Real Estate Co.,
Ltd.
Huangyuan Shangbo means Yiwu Huangyuan Shangbo Property Co.,
Ltd.
The Company, the Listed means Zhejiang China Commodities City Group
Company or the Group Co., Ltd.
Section II. Company Profile and Financial Highlights
I. Company profile
Chinese name 浙江中国小商品城集团股份有限公司
Chinese short name 小商品城
English name Zhejiang China Commodities City Group Co.,Ltd
English short name YIWU CCC
Legal representative ZHAO Wenge
II. Contact information
Board Secretary Securities Affairs Representative
Name XU Hang RAO Yangjin
Address Haiyang Business Building, No.105 Haiyang Business Building,
Futian Road, Yiwu No.105 Futian Road, Yiwu
Telephone 0579-85182812 0579-85182812
Fax 0579-85197755 0579-85197755
Email Hxu@cccgroup.com.cn Hxu@cccgroup.com.cn
III. Basic Information
Registered address Haiyang Business Building, No.105 Futian Road,
Yiwu, Zhejiang Province
Office address Haiyang Business Building, No.105 Futian Road,
Yiwu, Zhejiang Province
Postal code at the office address 322000
Corporate website www.cccgroup.com.cn
Email 600415@cccgroup.com.cn
IV. Places for information disclosure and access to the annual report
Media's names and websites selected by China Securities Journal, Shanghai Securities
the Company for annual report disclosure News and Securities Times
Stock exchange website selected by the www.sse.com.cn
Company for annual report disclosure
Place for access to the Company’s annual Securities Department of the Company
report
V. Stock profile
Stock profile
Type of stock Exchange Stock short name Stock code Stock short name
before change
A share Shanghai Stock 小商品城 600415 Nil
Exchange
VI. Other relevant information
Name Ernst & Young Hua Ming Certified Public Accountants
(special general partnership)
Office address 16 th Floor, Ernst & Young Building, Oriental Plaza, 1
CPAs engaged by
Chang'an Street, Dongcheng District, Beijing, China
the Company
Name of the YIN Guowei, HUANG Zhigang
(domestic)
Signing Certified
Public
Accountants
VII. Major accounting data and financial indicators in the past three years
(i) Major accounting data
Unit: RMB
YoY
Major accounting
data
(%)
Operating revenue 7,619,693,742.60 6,033,842,972.95 26.28 3,725,686,100.39
Net profits
attributable to
shareholders of 1,104,719,091.71 1,334,095,906.95 -17.19 926,626,706.42
the Listed
Company
Net profit
attributable to
shareholders of
the Listed
Company after 1,765,087,553.23 1,221,808,001.15 44.47 517,246,267.88
deducting non-
recurring profits
and losses
.
Net cash flow from
operating activities
YoY
At the end of 2022 At the end of 2021 change At the end of 2020
(%)
Net assets
attributable to
shareholders of 15,262,290,780.57 14,610,845,868.33 4.46 13,558,228,377.08
the Listed
Company
Total assets 32,111,004,317.38 31,014,635,513.35 3.54 28,750,127,146.86
(ii) Major financial indicators
Major financial indicators 2022 2021 YoY change (%) 2020
Basic EPS (RMB) 0.20 0.25 -20.00 0.17
Diluted EPS (RMB) 0.20 0.25 -20.00 0.17
Basic EPS after deducting non-
recurring profits and losses 0.32 0.22 45.45 0.10
(RMB/share)
Weighted average ROE (%) 7.30 9.38 Down 2.08 ppt 6.88
Weighted average ROE after
deducting non-recurring profits 11.67 8.59 Up 3.08 ppt 3.84
and losses (%)
Explanation of main accounting data and financial indicators of the Company in the previous
three years at the end of the report period
√Applicable □Not applicable
increase in the sales of goods during the current period.
million compared with the same period of the previous year, mainly due to the implementation
of the rent reduction policy, which resulted in a decrease of RMB 840 million in operating
gross profit, the increase of RMB 407 million in investment income and the decrease of RMB
recurring profits and losses increased by RMB 543 million compared with the same period
of the previous year, mainly due to the decrease of RMB 229 million in net profits attributable
to shareholders of the listed Company and the increase of RMB 773 million in non-recurring
profits and losses compared with the same period of the previous year.
the same period of the previous year, mainly due to the decrease of RMB 916 million YoY in
the net cash received after deduction of payment for sales of goods and provision of service
and the increase of RMB 319 million YoY in the tax refund received.
VIII. Differences in accounting data between foreign and Chinese accounting standards
(i)Differences between the net profit and net assets attributable to shareholders of the
Company disclosed in accordance with international accounting standards and
China accounting standards in the financial report
□Applicable √Not applicable
(ii) Differences between the net profit and net assets attributable to shareholders of the
Company disclosed in accordance with overseas accounting standards and China
accounting standards in the financial report
□Applicable √Not applicable
(iii) Explanation of differences between domestic and overseas accounting standards
□Applicable √Not applicable
IX. Key financial indicators by quarter in 2022
Unit: RMB
October to
January to March April to June July to September
December
Operating
revenue 1,597,965,861.91 2,609,061,754.55 2,113,429,925.63 1,299,236,200.51
Net profits
attributable to
shareholders of 672,246,046.23 549,959,932.58 397,670,847.78 -515,157,734.88
the Listed
Company
Net profit
attributable to
shareholders of
the Listed
Company after
deducting non-
recurring profits
and losses
Net cash flow
from operating -658,351,559.97 -8,235,773.65 329,304,785.87 1,737,373,261.52
activities
Explanation of difference between quarterly data and disclosed data in regular reports
□Applicable √Not applicable
X. Non-recurring items and amounts thereof
√Applicable □Not applicable
Unit: RMB
Remark (if Amount for
Non-recurring items Amount for 2022 Amount for 2021
applicable) 2020
Profits or losses from the disposal of non-current assets -1,130,587.34 -561,416.89 383,206,932.21
Government grants that are recognized in the current Please refer to
profit or loss, excluding the government grants that are details of other
closely related to the normal operation of the Company income and
and are provided in a fixed amount or quantity 38,802,436.81 government grants 23,559,898.01 18,655,980.14
continuously according to the national polices and accounted for profit
certain standards or loss for the
current period
Cash occupation fees charged from non-financial Cash occupation
enterprises that are recognized in the current profit or 52,315,023.80 fee for receiving 107,299,598.45 124,744,826.38
loss financial aid
Gain arising from investment costs for acquisition of
subsidiaries, associates and joint ventures by the
- - 31,308,053.80
corporation being less than its share of fair value of
identifiable net assets of the investees on acquisition
Profits or losses from changes in fair value of held-for-
trading financial assets, derivative financial assets,
financial liabilities held for trading and derivative
Mainly due to profits
financial liabilities, and investment income from the
or losses arising
disposal of held-for-trading financial assets, derivative 166,489.60 7,298,587.58 -32,578,800.48
from the change in
financial assets, financial liabilities held for trading,
fair value
derivative financial liabilities and other debt instruments,
except for effective hedging during the ordinary course
of business
Profits and losses arising from external entrusted loans 79,561.64 - 11,786,857.07
Net income from other non-operating activities 3,244,125.63 3,504,923.76 -4,107,200.75
Other profit and loss items that meet the definition of Mainly due to the
non-recurring profit and loss implementation of
-975,086,670.50 1,604,200.49 688,953.43
the rent reduction
policy
Less: effect of income tax -223,084,975.36 28,698,936.71 122,917,029.51
Effect of minority interest (after-tax) 1,843,816.52 1,718,948.89 1,408,133.75
Total -660,368,461.52 112,287,905.80 409,380,438.54
Explanations shall be made for the non-recurring items identified by the Company according to the Explanatory Announcement No. 1 on Information
Disclosure by Companies Publicly Offering Securities – Non-recurring Items, and for the Company identifying the non-recurring items enumerated in
the Explanatory Announcement No. 1 on Information Disclosure by Companies Publicly Offering Securities – Non-recurring Items as recurring items.
□Applicable √Not applicable
XI. Items measured at fair value
√Applicable □Not applicable
Unit: RMB10,000
Amount of
Changes for
Opening Closing impact on
Item the current
balance balance current profits
period
.
Held-for-trading
financial assets
Other equity
instruments investment
Other non-current
financial assets
Total 224,238.24 206,183.94 -18,054.30 4,007.43
XII. Others
□Applicable √Not applicable
Section III. Discussion and Analysis of Managers
I. Discussion and analysis of operation
In 2022, the 20th National Congress of the Communist Party of China was successfully held,
the "14th Five-Year Plan" entered a critical stage of implementation, and Yiwu Market celebrated
its 40th anniversary. Under the guidance of "Yiwu's development experience" and the
development strategy of "prospering businesses to build counties (cities)", Yiwu Market has
written a legendary story in the history of China's economic development. It has experienced six
relocations, twelve expansions, and five generations of transition. The form of the market ranges
from regional trading, to buying and selling national products, and then to buying and selling
global products: the first generation of road market; the second generation of stall market; the
third generation of scaffolding market; the fourth generation of indoor market; the fifth generation
of international trade city. Today's Yiwu Market brings together more than 2.1 million kinds of
commodities in 26 categories. Here, "there is something you can't think of but nothing you can't
buy." With more than 10,000 new products launched every day, Yiwu Market exports the quality,
brand, and standard of small commodities to the world, and has become the "leader of China
Chic" and "supplying place of hot styles". See Yiwu for global small commodities. The small
commodity index has become a barometer of global small commodity trade.
In 2022, Yiwu City achieved import and export of RMB 478.80 billion, an increase of 22.7%
YoY. Among them, exports were RMB 431.64 billion, an increase of 18.0% YoY; imports were
RMB 47.16 billion, an increase of 93.5% YoY. Market procurement trade mode is still the main
force to promote the growth of Yiwu's export share. Regionally, Southeast Asia, the Middle East
and Latin America continue to occupy a relatively high market share in trade with Yiwu, and the
countries along the “Belt and Road” and in the “RCEP” region continued to bring opportunities
to the Yiwu Market.
During the reporting period, in the face of geopolitical conflicts and other impacts and
challenges, the Company anchored the strategic goal of "building a first-class international trade
comprehensive service provider", under the framework of a unified national market, promoted
business development as a whole, and broke through physical constraints of traditional business
with digital reform, sped up the construction of a real economic ecology centered on the market
and a digital economic ecology centered on the Chinagoods platform.
(1) Physical market ecology
In 2022, the Company's core competitiveness in the market was steadily improved. During
the reporting period, the Company took multiple measures to drive market operators to upgrade
from the era of information trade to the era of digital trade. The occupancy rate of market space
remained above 98%, and the turnover was RMB 202.09 billion, an increase of 8.3% YoY,
showing strong resilience and vitality.
(1) Second District East New Energy Product Market
In 2022, the Company took advantage of the Yiwu Market's product system, customer
groups, trade services and new energy application product trade to create the first professional
market for new energy product display and trading in China—Second District East new energy
product market. During the reporting period, the Second District East market completed part of
the investment promotion work, and collected a total of RMB 856 million in admission
qualification fees and business space usage fees. At present, the Second District East market
has officially opened. A series of digital application scenarios have been implanted in the Second
District East to build a digital market system. The digital market is based on the most cutting-
edge digital trade concept, combined with the characteristics of Yiwu Market, to build an excellent
experience scene. Through cloud computing and trade Internet as information technology
support, intelligent integrated management system is used for unified management and control,
and the high availability of market intelligent operation is improved. Through the construction
and output of AI capabilities such as natural language theory, computer vision, machine learning
and intelligent voice, it helps market participants (purchasers, business operators, etc.) to
connect with the market, to realize the application of industrial digital achievements in off-line
markets.
(2) Overseas market
During the reporting period, Dubai Yiwu China Commodities City (hereinafter referred to as
Dubai Market) opened for business. It takes a 15-minute drive from Maktoum Airport and Jebel
Ali Port, one of the largest ports in the Middle East, to the Dubai Market, effectively radiating the
consumer market of nearly 1 billion people around (the Middle East, North Africa, Europe, etc.).
The Dubai Market is the first overseas submarket in the Company's "global strategy", and it is
also one of the important measures for the Company to integrate into the new development
pattern of domestic and international dual circulation. Dubai is the "Gateway to the Middle East"
and the largest trade distribution center for Made-in-Yiwu commodities in the Middle East. The
Dubai Market is connected to the Yiwu Market. Through the gradual synchronization of products,
it solves the pain points such as high procurement costs for some overseas buyers going to Yiwu,
weak online display experience, and low online communication efficiency. Through commodity
sales exhibition, bonded warehousing, transshipment, and others, the market can promote
bilateral trade and industrial investment between China and UAE and its neighboring countries,
and strive to be a win-win cooperation model of the "Belt and Road" Initiative.
(3) Comprehensive bonded zone
In 2022, Yiwu Comprehensive Bonded Zone insisted on digital reform to speed up
development, and through measures such as precise project investment promotion, refined
operation management, innovative business expansion and other measures, achieved import
volume will over RMB 20 billion, ranking first among the newly approved comprehensive bonded
zones in 2020-2022. Yiwu Comprehensive Bonded Zone launched the zone operation
management system of "e Zongbao", completed the construction of the station operation
assistance system, customs digital large screen display system and other functional platforms;
achieving the annual value of imported bulk commodities over RMB 10 billion, promoting the
implementation of the new model of "Yiwu-Xinjiang-Europe Cargo Train + comprehensive
bonded zone + sea-rail combined transport", and radiating the surrounding manufacturing
industry through the "linkage between district and port"; achieving cross-border parcels out of
the area over 25.1 million, and introducing 50 cross-border e-commerce platforms. The trend of
industrial agglomeration was prominent, and the function of cross-border e-commerce goods
source gathering center gradually emerged. Copying and promoting "cross-border e-commerce
retail import return center warehouse mode", Yiwu Comprehensive Bonded Zone broke through
the last "kilometer" of cross-border e-commerce returns; introducing "bank + guarantee" mode,
developing and implementing separate customs duty payment guarantee products.
During the reporting period, the Company entered the upstream and downstream of market
trade through self-operated trade, gave full play to the Company's platform and brand
advantages, linked trade with the market and fed back the market, forming a situation of virtuous
and orderly cycle, with a trade revenue nearly RMB 5 billion.
In 2022, the hotel sector achieved a revenue of RMB 180 million, bursting with vitality in
adversity, with a growth of 41.43% YoY. During the reporting period, the hotel business line was
deeply integrated with the chinagoods platform to optimize the full-link experience, develop a
unified member marketing platform, build a private domain traffic pool, further promote the
unified development and operation of members, and realize the traffic scale effect; it was
integrated into the Company's market database, and the hotel community module construction
and product launch were completed.
In 2022, the exhibition and advertising sector achieve a revenue of nearly RMB 80 million,
showing resilience in adversity. During the reporting period, the exhibition segment completed
the shareholding reform and continued to promote capitalization operations. The digitalization of
exhibitions was steadily advancing. Focused on the online layout of the four self-organized
exhibitions of Hardware Fair, Yiwu Fair, Forest Expo, and Cultural Tourism Fair, core digital
applications such as digital marketing, online exhibitions, and smart exhibition halls were built,
and traditional exhibition business was transformed into new digital business model.
During the reporting period, the Company reduced or exempted about RMB 1 billion in rent
for small and micro enterprises or individual industrial and commercial households. In order to
fully promote the resumption of work and production of small, medium and micro enterprises and
individual industrial and commercial households, the Company reduced or exempted the rent for
and micro enterprise or individual industrial and commercial household, and effectively assumed
the social responsibility of state-owned enterprises. These measures effectively reduced the
operating costs of individual industrial and commercial households, small, medium and micro
enterprises, unleashed economic vitality, helped small, medium and micro enterprises to
strengthen their confidence and overcome difficulties together, promoted the continued
prosperity of the market, and protected market entities, employment, and people's livelihood.
(2) Digital trade ecology
During the report period, the chinagoods platform, driven by the integration of trade data,
met the demands of supply and demand in production, exhibition and trading, warehousing and
logistics, financial credit, market management and other links, and built an open and integrated
digital trade comprehensive service platform, which is the core carrier for the Company to realize
trade digitalization.
In 2022, the chinagoods platform achieved GMV of RMB 35.676 billion for the whole year,
an increase of 112% YoY.
In 2022, the Company's industrial digitalization process was accelerated. The digital free
trade application of small commodities won the "Best APP" of Zhejiang digital reform in 2022.
The registered purchasers of chinagoods platform exceeded 3.32 million, and more than 2,500
foreign trade companies were linked. In view of the characteristics of scattered orders, LCL
declaration, and no-ticket tax exemption in market procurement trade, combined with the "cargo
unitizer system", one-click "documentary procurement", "digital cargo examination", "loading and
shipping" and "smart customs declaration" can be realized with chinagoods Caigoubao. The
order sheet, packing list, customs declaration form and foreign exchange settlement form are
connected in series to form a unique closed-loop information of market procurement trade
methods; chinagoods platform logistics, overseas warehouses, supply chain financial services
and other functions form a closed loop of logistics; licenses of the Company for payment,
factoring, local and foreign currency exchange, and products such as Huokuanbao amd
Jiehuibao are used to form a closed loop of payment flow and capital flow. "Three Flow
Convergence" simplifies trade links, improves trade efficiency, and helps Chinese small
commodities go overseas.
During the reporting period, the Company successfully completed the delivery of payment
licenses, the adjustment of the new organizational structure has been filed with the regulatory
authorities, and the new management team effectively carried out various tasks. On May 24,
International Trade City. By building an e-CNY experience area in the market, launching “million
e-CNY red envelopes” activity, etc., combined with the means of "online promotion and offline
guidance", the Company integrated chinagoods platform, the import and export company, the
market operation company and other sectors to jointly promote e-CNY, and provided 97.3% of
the market tenants with e-CNY payment collection services. A total of 60,000 e-CNY wallets
were opened, and the cumulative number of transactions was about 21,900, and the cumulative
transaction amount exceeded RMB 799 million. The Company obtained the qualification for
cross-border RMB business, opened up the "Yiwupay" cross-border RMB payment channel, and
completed the first cross-border RMB payment transaction between Yiwu and Saudi Arabia.
From August 2022, the Company upgraded the Kuaijietong brand to create a new brand image
of "YiwuPay". According to the research and analysis of target users, corporate strategy, Yiwu
Market and industry environment, brand positioning, core value extraction, VIS visual system
construction, system optimization and upgrading and other related brand work have been
completed in an orderly manner. YiwuPay can support cross-border collections in 16 mainstream
currencies around the world. At present, it has reached cooperation with more than 400 banks
around the world, and its business covers more than 100 countries and regions, providing a
compliant, safe and efficient integration for market trade payment solutions, using payment to
empower the digital economy, improve the global digital trade service ecosystem, and help the
Company's industrial digital development.
During the reporting period, the Company achieved phased results in cooperation projects
with COSCO SHIPPING and GLP, and established a joint venture company Zhijie Yuangang.
The joint venture company leverages the resource advantages of all parties to create a third-
party delivery platform for digital cross-border logistics, integrating into the Company's existing
business system, and connecting the upstream and downstream links of small commodity trade,
improves the ecology of grouping people, shipping ecology, warehousing ecology, and financial
service ecology, etc., changes the "scattered" supply-demand relationship of various participants
in traditional foreign trade, and improves trade efficiency. The Company carries out business
cooperation extension with the joint venture company in the front-end warehousing link and
back-end payment link of the performance of the contract, realizes LCL and export in Yiwu for
global goods, improves the level of trade facilitation, forms a new market development driving
force in the Yiwu area, and promotes the continuous prosperity of the Yiwu Market.
In the future, the development of contract fulfillment will first be full link integration, followed
by the rapid development of digital and intelligent performance services. The value of full-link
collaboration contract fulfillment service system will become more and more prominent, and
digital intelligent construction is the key to improve the level of full-link collaboration. On the one
hand, the joint venture empowers the development of Yiwu's foreign trade, enhances the vitality
of market subjects, provides stable shipping capacity and efficient storage resources in China
and abroad for Yiwu's foreign trade industry, and stabilizes the cross-border trade of small
commodities. On the other hand, various trade services, including trade implementation, are
connected and integrated by the joint venture company through digital links to enlarge the overall
service functions, so as to reduce trade costs and improve trade facilitation.
II. Description of the industry of the Company during the reporting period
(1) Industry policies
General Secretary Xi Jinping pointed out in the article "Continuously Strengthening,
Optimizing and Expanding China’s Digital Economy" published in the second issue of QiuShi
magazine in 2022 that the digital economy can promote the rapid flow of various resource
elements and accelerate the integration of various market entities, help market entities
reconstruct their organizational models, achieve cross-border development, break the
constraints of time and space, extend the industrial chain, and smooth domestic and foreign
economic cycles.
On February 27, 2023, the Central Committee of the Communist Party of China and the
State Council issued the "Overall Layout Plan for the Construction of Digital China", pointing out
that the construction of digital China is an important engine for promoting Chinese-style
modernization in the digital age and a strong support for building new national competitive
advantages.
On March 10, 2023, the first session of the 14th National People's Congress held its third
plenary meeting, and voted to pass the decision on the institutional reform plan of the State
Council. China established National Data Bureau, and the newly established National Data
Bureau is responsible for coordinating and promoting the construction of data basic system,
coordinating the integration, sharing, development and utilization of data resources, and
promoting the planning and construction of digital China, digital economy and digital society. It
is managed by the National Development and Reform Commission. The establishment of
National Data Bureau demonstrates the important position of the construction of digital China
and the data resource system in the future national development strategy, and it is also a signal
that the construction of digital China is accelerating and reaching a new level.
On February 1, 2023, the Yiwu Municipal Government Work Report stated that "we should
fully release the enthusiasm, initiative, and creativity of 900,000 powerful market entities. It is
necessary to firmly and resolutely support, develop and prosper the market, seize the
"commanding heights" in the small commodity division system, grasp the "right to speak", and
lead the global trade fashion. "
Yiwu International Trade City has been in the forefront of the national comprehensive market
for many years in terms of market turnover, and has formed the support of industrial clusters in
the field of small commodity circulation. As of 2022, the operating area of Yiwu Market reached
micro enterprises upstream and downstream. The Company provides market management,
commodity sales and self-operated trade, chinagoods online platform, hotel and exhibition
services around the Yiwu Market. Yiwu Market is an important platform connecting the domestic
and international trade supply chains, and is at the key node of the global small commodity
supply chain. It plays an important role in smoothing the internal circulation, improving the
external circulation, and serving the new pattern of "dual circulation". Yiwu is the leader and
demonstration center of market procurement trade in China, and has maintained high-speed
growth for 7 years in a row, with a compound annual growth rate over 30%, which has effectively
unlocked the validity of the market subject and further improved the convenience level of trade.
(2) Industry situation
In the future, in China's consumption industry, the transformation and improvement of supply
chain link are important industry opportunities. China's consumer industry has developed
relatively well on the TO C side, while the circulation mode in the TO B field is still relatively
primitive in general. Digital transformation and industrial interconnection transformation will bring
greater room for efficiency improvement.
The Company focuses on its main business, continuously promotes the upgrade of online
and offline markets, and is expected to lead the upgrading and transformation of the industrial
Internet in the field of daily consumption and on the 1039 track. The first is the iteration of the
export declaration process, speed up the approval process, and improve export efficiency. The
second is the Company's 1039 platform, which relies on the resources of tens of thousands of
physical stores in Yiwu Trade City to realize B2B industrial interconnection, speed up the
efficiency of information circulation in the circulation link, and accumulate data to achieve quality
and efficiency. The third is the construction of a series of contract fulfillment facilities such as
Yiwu International Digital Logistics Market. The investment in these logistics facilities is expected
to further improve the contract fulfillment efficiency of merchants in Yiwu Market, and form
synergy with chinagoods and other businesses to continue to reduce the cost of daily consumer
goods going overseas and continuously strengthen China's competitiveness in daily consumer
goods market.
"Yiwu-Xinjiang-Europe Cargo Train" of China-Europe Railway Express was opened. At present,
the "Yiwu-Xinjiang-Europe Cargo Train" of China-Europe Railway Express has opened a total of
annually, a 7-fold increase from 2015. The annual transportation volume exceeded RMB 40
billion, a 4-fold increase from 2015. It has become the "Golden Ribbon" of the "Belt and Road"
initiative and Sino-Euro communication.
Based on the import and export of small commodities in Yiwu, "Yiwu-Xinjiang-Europe Cargo
Train" develops the upstream and downstream of the logistics industry chain, drives the
upgrading of surrounding industries, fully integrates with the development of the digital economy,
and brings extensive development room for the Company's offline market, logistics contract
fulfillment, import trade, online chinagoods platform, and payment business.
III. Description of the business of the Company during the reporting period
According to the definitions in the Guidelines for Industry Classification of Listed Companies
(revised in 2012) released by the CSRC, the Company is engaged in “Business Service” (L72)
and “Lease and Business Service” (L).
(I) Main businesses
The Company is engaged in market development and operation and supporting services,
providing online trading platform and services, online trading market development and operation,
etc., belonging to the comprehensive industry category.
(II) Operating model
Market operation business is mainly operated and managed by the Company's
subordinate market branches. The main business income of the market operation segment is
mainly the income from the use of shops. The Company adopts a shop rental model, that is,
the ownership of the shops belongs to the Company, and market traders only have the right to
use the shop within the contract period. The Company and market traders sign a contract to
clearly stipulate the use period, usage fee and business purpose of the shops. The merchant
shall not change the agreed business purpose, and shall not sublet without the Company’s
consent. Generally, the payment methods of usage fee are one-time payment or installment
payment according to the contract terms. Currently the markets of which the Company is
responsible for operation include Dsitricts 1 to 5 of the International Trade City, Importing
Market, First District East Expansion Market, Huangyuan Market and International Production
Goods Market.
Relying on the Company's market resources of 75,000 off-line shops, Yiwu Market official
website “chinagoods” platform (www.chinagoods.com, referred to as "chinagoods platform")
provides service for 2.1 million micro, small, and medium enterprises in the upper reaches of the
industry chain. With trade data integration as the core driver, it meets the needs of both supply
and demand parties in manufacturing, display transactions, warehousing and logistics, financial
credit, market management and other links to achieve effective and accurate allocation of market
resources, and build a true, open, and integrated digital trade comprehensive service platform.
IV. Analysis of core competencies during the reporting period
√Applicable □Not applicable
(I) First-mover advantages
At the start of China’s reform and opening-up, Yiwu took the lead in establishing the
commodities market. During the recent forty years, the market has been upgraded five times and
expanded ten times and has been among the top comprehensive national markets with the
highest turnover, pointing to its remarkable first-mover advantages. As the largest commodities
distribution center in the world, the Yiwu commodities market provides more than 2.1 million
products, which fall in 26 categories and supports one-stop purchase. The market boasts
enormous resources and huge business flow, goods flow, cash flow and information flow.
(II) Brand advantages
“Yiwu China Commodities City” is the first market identified by the SAIC as a well-known
trademark among the national commodities trading markets. The Company has taken multiple
measures to give play to the brand of “Yiwu China Commodities City” and is committed to
improving its influence and leading role in the industry. Its brand advantages and influence have
kept enhancing.
(III) Auxiliary services advantages
The People’s Government of Yiwu has been providing policy support for the development
of the market for years, and the auxiliary industries are developing rapidly in Yiwu.
Yiwu has perfect commerce and trade auxiliary facilities and advantageous logistics
service. The logistics network has full coverage in Yiwu. A large number of large-sized
international and domestic express delivery and logistics companies have regional distribution
centers in Yiwu, and a world-oriented goods transport and distribution network has been
established. Yiwu has been listed among the “commerce and trade-oriented national logistics
hubs” by the National Development and Reform Commission and the Ministry of Transport.
According to the report on operation of the postal industry in 2022 released by the State Post
Bureau, the express delivery business volume of Yiwu ranked second in China in 2022.
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.
The major international trade exhibitions held by the Company’s exhibition business
division such as China Yiwu International Commodities Fair, China Yiwu International Forest
Products Fair, China Yiwu International Imported Commodities Fair and China Yiwu Hardware
and Electrical Expo support and cultivate vertical exhibition in multiple industries such as
stationery and textiles, have developed multiple professional and international exhibition
brands, and are important national platforms for the China Commodities City to lead industry
development, develop the city economy and maintain the clusters of traders and commodities.
(IV) Advantages of 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) Advantages of online and offline platform integration
The Company’s international trade city is the global leading commodity market. The
Company’s official Yiwu CCC website, chinagoods platform, relying on the Company’s 75,000
off-line shops, through integration of online and offline services, serves 2.1 million small, medium
and micro enterprises in the upper reaches of the industry chain. With trade data integration as
the core driver, it meets the needs of both supply and demand parties in manufacturing, display
transactions, warehousing and logistics, financial credit, market management and other links.
(VII) Advantages of international logistics
The Company's Zhijie Yuangang international logistics business, establishes a logistics
platform to replace the multi-layer freight forwarder system, thus shortening the level of freight
forwarder distribution, and improving logistics efficiency. In contrast, the traditional foreign trade
freight forwarders are divided into multiple levels, the logistics and transportation services are
not standardized, and the service prices vary widely and are usually not the lowest price.
V. Operating status during the reporting period
During the reporting period, the main operating status of the Company are as follows:
(i) Analysis of main business
flow statement
Unit: RMB
Item Amount in the
Amount in the
same report period
current report YoY change (%)
of the previous
period
year
Operating revenue 7,619,693,742.60 6,033,842,972.95 26.28
Operating cost 6,452,909,829.96 4,027,543,138.56 60.22
Sales expenses 197,679,981.09 204,745,974.57 -3.45
Administrative expenses 529,466,270.71 453,543,427.80 16.74
Financial expenses 149,148,889.80 179,911,613.70 -17.10
R&D expenses 17,377,161.88 10,308,801.84 68.57
Net cash flow from operating 1,400,090,713.77 -31.13
activities
Net cash flow from investing -2,362,698,917.70 -243.13
activities
Net cash flow from financing -1,057,216,958.11 NA
-1,701,935,200.78
activities
Reasons for the change in operating cost: the Company’s operating cost increased by 60.22%
YoY, mainly due to the increase in the sales of goods during the current period.
Reasons for change in R&D expenses: the Company's R&D expenses increased 68.57% YoY,
mainly due to the increase in expensed R&D investment during the current period.
Reasons for changes in net cash flow from operating activities: mainly due to a year-on-year
decrease of RMB 916 million in net cash received and paid for sales of goods and provision of
labor services in the current period, and a year-on-year increase of RMB 319 million yuan in tax
refunds received.
Reasons for the change in net cash flow from investment activities: mainly due to a year-on-year
increase of RMB 1.598 billion in net investment outflows in the current period, a year-on-year
increase of RMB 2.072 billion in cash paid for the purchase and construction of long-term assets
such as fixed assets, and a year-on-year increase of RMB 313 million in cash paid for acquiring
subsidiaries.
Explanation for the change in the net cash flow from financing activities: mainly due to an
decrease of RMB 670 million YoY in the net inflow of financing in the current period.
Details of material changes to the business types, the components or sources of profits of the
Company in this reporting period
□Applicable √Not applicable
√Applicable □Not applicable
In 2022, the Company's operating revenue was RMB 7.620 billion, an increase of RMB1.586
billion YoY, and the Company's operating cost was RMB 6.453 billion, an increase of 2.425 billion
YoY.
(1). Main business by industry
Unit: RMB10,000
Main business by industry
Change Change
Gross
in in Change in gross
By Operating Operating profit
operating operating profit margin YoY
industry revenue cost margin
revenue cost YoY (%)
(%)
YoY (%) (%)
Market Down 20.51 ppt
operation
Sales of Up 0.03 ppt
goods
Hotel Up 19.40 ppt
service
Exhibition Up 24.65 ppt
and 7,997.62 6,255.16 21.79 -33.10 -49.13
advertising
Other Down 6.86 ppt
services
Sub-total 732,678.03 633,569.73 13.53 31.16 63.68 Down 17.18 ppt
Description of main business by industry
due to the large year-on-year increase in commodity sales in the current period.
in hotel occupancy rate.
respectively, mainly due to the year-on-year decrease in the number of exhibitions undertaken.
agency costs due to the increase in business volume of Huanqiu Yida in the current period.
(2). Table of production and sales analysis
□Applicable √Not applicable
(3). The performance of major purchase contracts and major sales contracts
□Applicable √Not applicable
(4). Cost Analysis Table
Unit: RMB10,000
Situation by industry
Percentage
change of
Proportion Proportion in
Amount in amount in the
Amount in in the total the total cost Situation
By Cost the same current period
the current cost in the in the prior Description
industry components period of compared
period current corresponding of
prior year with the prior
period (%) period (%)
corresponding
period (%)
Market Depreciation
operation and 43,737.99 6.90 46,031.98 11.89 -4.98
amortization
Mainly due to
the
outsourcing
of basic
property
services
Market Wages and such as
operation benefits
the markets,
which
resulted in
the decrease
in direct
employment
Market Other costs Mainly due
operation to the
outsourcing
of basic
services
such as
security for
the markets
Sales of Cost of Mainly due to
goods product sales the increase
sales
Hotel Depreciation
service and 3,730.53 0.59 2,432.99 0.63 53.33
amortization
Hotel Cost of food
service and beverage 5,539.34 0.87 4,356.83 1.13 27.14
raw materials
Hotel Wages and
service benefits
Hotel Material and
service fuel 1,116.72 0.18 759.03 0.20 47.12
consumption
Hotel Other costs
service
Exhibition Depreciation
and and 1,456.27 0.23 4,167.15 1.08 -65.05
advertising amortization
Exhibition Exhibition and
and advertising 4,486.46 0.71 6,311.12 1.63 -28.91
advertising cost
Exhibition Other costs
and 312.43 0.05 1,817.79 0.47 -82.81
advertising
Other Property
services management 3,239.75 0.51 2,318.52 0.60 39.73
cost
Other Network
services transformation 5,881.42 0.93 7,542.35 1.95 -22.02
and service
Other Other costs Mainly due to
services the increase
agency costs
Total 633,569.73 100.00 387,081.46 100.00 63.68
Explanation on cost analysis and other information
Nil
(5). Changes in consolidation scope due to the changes in main subsidiaries' share
ownership during the report period
□Applicable √Not applicable
(6). Major changes or adjustment in the Company's business, products or services
□Applicable √Not applicable
(7). Main sales customers and suppliers
A. Main sales customers of the Company
□Applicable √Not applicable
Case in which the sales to a single customer accounted for over 50% of the total sales, new
customers were added to the list of top 5 customers or the Company relied heavily on a few
customers during the report period
□Applicable √Not applicable
B. Main suppliers of the Company
□Applicable √Not applicable
Case in which the purchase amount for a single supplier accounted for over 50% of the total
purchase amount, new suppliers were added to the list of top 5 suppliers or the Company
relied heavily on a few suppliers during the report period
□Applicable √Not applicable
Other statements
Nil
√Applicable □Not applicable
Unit: RMB10,000
Item 2022 2021 YoY change Change Explanation on changes
amount /%
Sales
expenses
Administrative
expenses
R&D Due to the increase in
expenses 1,737.72 1,030.88 706.84 68.57 expensed R&D
investment
Financial
expenses
Income tax Due to the decrease in
expenses taxable income
Unit: RMB10,000
Item 2022 2021 YoY change Change
amount /%
Staff expenses and work
clothes
Advertising expenses 3,174.30 4,564.90 -1,390.60 -30.46
Security and insurance
costs
R&D expenses 1,737.72 1,030.88 706.84 68.57
Depreciation and
amortization
Promotion and investment
promotion
Intermediary expenses 1,913.78 2,348.08 -434.30 -18.50
Office expenses 1,411.89 1,761.61 -349.72 -19.85
Water, electricity and fuel
consumption
Start-up fee 4,089.58 - 4,089.58 -
Other expenses 5,694.93 4,557.86 1,137.07 24.95
Subtotal of management,
R&D and sales expenses
Yindu Yayue Hotel’s being put into operation and the year-on-year increase in depreciation and
amortization of the newly added warehouse and logistics park project land in northeast of Yiwu
during the current period.
(1).Table of R&D investment status
√Applicable □Not applicable
Unit: RMB10,000
Expended R&D investment in this 1,737.72
period
Capitalized R&D investment in this 3,192.12
period
Total R&D investment 4,929.84
Total R&D investment as a 0.65
percentage of operating income (%)
Proportion of capitalization of R&D 64.75
investment (%)
(2).Table of R&D personnel status
√Applicable □Not applicable
Number of R&D personnel 182
Number of R&D personnel as a percentage of the
Company’s total personnel number (%)
Education level of R&D personnel
Education level People at this education level
Doctor's degree 3
Master's degree 6
Bachelor's degree 126
College graduates 46
High school graduate and below 1
Age of R&D personnel
Age range People in this age range
Below 30 (30 excluded) 72
(3).Reasons for change
□Applicable √Not applicable
(4).Reasons for major changes in the composition of the R&D personnel and their
influence on the Company's future development
□Applicable √Not applicable
√Applicable □Not applicable
Unit: RMB10,000
Item 2022 2021 YoY change
Net cash flow (used)/generated from 140,009.07 203,308.25 -63,299.18
operating activities
Net cash flow (used)/generated from -236,269.89 165,076.70 -401,346.59
investing activities
Net cash flow (used)/generated from 64,471.82
-105,721.70 -170,193.52
financing activities
(Decrease)/increase in cash and cash -399,909.29
-202,526.74 197,382.55
equivalents
due to a year-on-year decrease of RMB 916 million in net cash received and paid for sales of
goods and provision of labor services in the current period, and a year-on-year increase of RMB
Mainly due to a year-on-year increase of RMB 1.598 billion in net investment outflows in the
current period, a year-on-year increase of RMB 2.072 billion in cash paid for the purchase and
construction of long-term assets such as fixed assets, and a year-on-year increase of RMB 313
million in cash paid for acquiring subsidiaries.
due to an decrease of RMB 670 million YoY in the net inflow of financing during the current
period.
(ii) Material changes to profits caused by non-main businesses
□Applicable √Not applicable
(iii) Analysis of assets and liabilities
√Applicable □Not applicable
Unit: RMB10,000
Percentage
% of
Closing change of the
total
Closing balance as a closing
assets
Amount at the balance in the percentage of balance of the
at the
Item end of the prior total assets in current period Reasons for change
end of
current period corresponding the prior compared
the
period corresponding with the prior
current
period (%) corresponding
period
period (%)
Total assets 3,211,100.43 100.00 3,101,463.55 100.00 3.54
Cash and cash
equivalents
Held-for-trading
financial assets
Accounts
receivable
Prepayments Mainly due to the decrease in
Other Mainly due to recovering of
receivables 41,939.81 1.31 135,592.43 4.37 -69.07 financial assistance during the
current period
Inventory 133,035.12 4.14 132,740.26 4.28 0.22
Mainly due to the newly added
Other current
assets fund during the current period
Debt
investments
Long-term
receivables
Long-term
equity 603,347.29 18.79 577,245.52 18.61 4.52
investment
Other equity
instruments 49,920.08 1.55 64,218.80 2.07 -22.27
investment
Other non-
current 150,030.76 4.67 152,481.93 4.92 -1.61
financial assets
Property
investment
Fixed assets 522,088.28 16.26 507,859.09 16.37 2.80
Mainly due to the payment for
Construction in construction projects such as
progress
zones
Right-of-use
assets
Intangible Mainly due to land purchase
assets
Development
expenses
Goodwill 28,491.64 0.89 - - -
Mainly due to the completion
Long-term
prepaid during the current period
expenses
Deferred
income tax 15,034.68 0.47 13,573.70 0.44 10.76
assets
Mainly due to the transfer-out
Other non-
current assets consideration
Total liabilities 1,682,990.80 52.41 1,638,379.34 52.83 2.72
Short-term
borrowings
Mainly due to the increase in
Accounts
payable supporting projects
Mainly due to the new payment
Advances from received in advance from
customers
period
Contract
liabilities
Payroll payable 18,313.53 0.57 24,396.48 0.79 -24.93
Mainly due to the decrease in
Tax payable 21,499.84 0.67 55,949.65 1.80 -61.57 corporate income tax payable
Mainly due to the increase of
Other payables 132,559.61 4.13 190,874.28 6.15 -30.55 investment allocation to be
confirmed
Non-current
Mainly due to repayment of
liabilities due 8,685.23 0.27 366,424.19 11.81 -97.63 bonds due within one year
within one year
Other current
liabilities
Long-term Mainly due to early repayment
borrowings
Mainly due to the new
issuance of medium-term
Bonds payable 349,741.68 10.90 - - N/A notes and corporate bonds
during the current period
Lease liabilities 20,662.37 0.64 20,594.27 0.66 0.33
Estimated
liabilities
Deferred Mainly due to receiving the
income 10,358.21 0.32 7,817.01 0.25 32.51 start-work reward of the
Comprehensive Bonded Zone
Deferred
income tax 9,504.27 0.31 11,189.75 0.36 -15.06
liabilities
Other statements
Nil
√Applicable □Not applicable
(1) Scale of assets
Among them: offshore assets was RMB 520 million, accounting for 1.62% of the total assets.
(2) Explanation one the high proportion of offshore assets
□Applicable √Not applicable
√Applicable □Not applicable
Unit: RMB
Item 2022 2021
Cash and cash equivalents 10,098,029.66 60.78
Long-term equity investment 102,918,559.00 102,918,559.00
Other non-current financial 621,447,424.37 636,870,392.09
assets
Other current assets 367,484,914.87 -
Total 1,101,948,927.90 739,789,011.87
Note 1. As of December 31, 2022, bank deposits with a book value of RMB 60.97
(December 31, 2021: RMB 60.78) were restricted for ownership or use rights due to being as
security deposits for obtaining commercial housing mortgage loan. As of December 31, 2022,
bank deposits with a book value of RMB 7,220,000.00 (December 31, 2021: RMB 0.00) were
used as a performance guarantee for civil air defense projects under construction. As of
December 31, 2022, bank deposits with a book value of RMB 2,877,968.69 (December 31, 2021:
RMB 0.00) were used as fast payment business risk deposits with restricted ownership or use
rights.
RMB 621,447,424.37 (December 31, 2021: RMB 636,870,392.09) were frozen by Shanghai
Municipal Public Security Bureau.
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.
□Applicable √Not applicable
(iv) Analysis of business information of industry
√Applicable □Not applicable
For details, please refer to "II. The situation of the industry of the Company" in this section
(v) Analysis of investments
Overview of external equity investment
√Applicable □Not applicable
At the end of December 2022, the external investment amounted to RMB 8,095,312,300
(including RMB 62,331,000 for financial assets held for trading, RMB 6,033,472,900 for long-
term equity investment, RMB 499,200,800 for investment in other equity instruments, RMB
from RMB 8,014,837,600 (including RMB 75,375,100 for financial assets held for trading, RMB
instruments, RMB 1,524,819,300 for other non-current financial assets) at the end of the
previous year. The main changes were as follows:
I. Trading financial assets during the reporting period decreased by RMB 13.0441 million
from the end of the previous year, mainly due to the increase in bank wealth management of
RMB 13.6794 million, the sale of part of the equity of Orient International Venture Co., Ltd. and
the decrease of RMB 26.7235 million from fair value changes.
II. Long-term equity investment during the reporting period increased by RMB 261.0177
million from the end of the previous year, mainly due to:
increased by RMB 168.9705 million, including: RMB 150 million for Zhejiang Zhijie Yuangang
International Supply Chain Technology Co., Ltd., 18.1455 million for JEBEL ALI FREE ZONE
TRADER MARKET DEVELOPMENT AND OPERATION FZCO, RMB 625,000 for Zhejiang
Yixinou Supply Chain Management Co., Ltd., and RMB 200,000 for Yiwu Heimahui Enterprise
Service Co., Ltd.; recovered investment principal of RMB 30.71 million, of which RMB 24.5
million was recovered from Hangzhou Binjiang Shangbo Real Estate Development Co., Ltd. and
RMB 6.21 million from Yiwu Huishang Microfinance Co., Ltd.
method. Among it, the investment income and other equity changes accrued during the reporting
period were RMB 1,000.1689 million; the dividends received were RMB 877.4117 million,
including RMB 580.8656 million from Rongshang Real Estate, RMB 194.4768 million from
Chuangcheng Real Estate, RMB 88.2 million from Pujiang Lvgu, and RMB 13.8693 million from
Hangzhou Binjiang Shangbo Real Estate Development Co., Ltd.
III. During the reporting period, the investment in other equity instruments decreased by
RMB 142.9872 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. During the reporting period, other non-current financial assets decreased by RMB
for Suzhou Xiangzhong Venture Capital Partnership (Limited Partnership) and the recovery of
investment funds of RMB 59.2535 million from Nantong Zijing Huatong Equity Investment
Partnership (Limited Partnership) and other enterprises, RMB 23.8819 million for the disposal of
Yiwu Shanfeng Investment Partnership, and RMB -1.3763 million from changes in the fair value
of other non-current financial assets.
√Applicable □Not applicable
Unit: RMB10,000
Wheth
er the
target Whet
is Statemen her Discl
Whet Progress Estimate
mainly Sharehol t subject Partner Investme Impact on invol osure
Invested company Investmen Investment her to Source of as of d Disclosure
Main business engag ding (if Remarks (if nt period current profit ved index
name t method amount conso funds balance earnings date (if any)
ed in Scale applicabl applicable) (if any) and loss in (if
lidate sheet date (if any)
invest e) litigat any)
ment ion
busine
ss
Self- Acquisiti Jun 25,
Zhejiang Xunchi
Value-added Acquisiti owned on 2022
Digital Technology No 44,430.00 100% Yes NA NA NA 682.22 No Nil
Telecom Services on Fund complete Dec 04,
Co., Ltd.
sources d 2021
International cargo
transportation
COSCO
agency by sea;
SHIPPING
Zhejiang Zhijie International cargo
Long- Logistics Contribut
Yuangang transportation Self-
Newly term Supply Chain ion of
International agency by air; owned Aug 24,
No establish 15,000.00 27% No equity Co., Ltd., NA capital -443.66 No Nil
Supply Chain International cargo Fund 2022
ed investm ProLogis complete
Technology Co., transportation sources
ent Investment d
Ltd. agency by land;
(Shanghai)
Domestic cargo
Co., Ltd.
transportation
agency, etc.
Cumulati
Suzhou Venture capital ve Feb 10,
Other Taicang
Xiangzhong (limited to Self- contributi 2021
non- Weizhong
Venture Capital investment in owned on of Nov 19,
Yes Others 6,000.00 12.37% No current Investment NA 697.30 No Nil
Partnership unlisted Fund capital 2020
financial Management
(Limited enterprises); sources RMB Nov 18,
assets Co., Ltd., etc.
Partnership) Equity investment 100 2020
million
Lease and Cumulati
management of ve
Jebel Ali Free Long-
proprietary Self- contributi
Zone Trader term Jebel Ali
properties; and owned on of Aug 23,
Market No Others 1,814.55 30% No equity Free Zone NA -2,508.37 No Nil
lease and Fund capital 2019
Development and investm FZE
management of sources RMB
Operation FZCO ent
the properties 91.6483
owned by others million
Total / / / 67,244.55 / / / / / / / / -1,572.51 / / /
√Applicable □Not applicable
Unit: RMB10,000
Investment Cumulative actual
Project during current investment
Item Progress period amount
amount
Amount .
International Trade Digitalization Industry Project in the Comprehensive Bonded Zone: The
project has been basically completed, and the initial inspection of the completion has been
completed. Comprehensive Bonded Zone bonded processing park project: 95% of the overall
The Yiwu
project of the north project of Zone A has been completed, and the main structure of the south
Comprehensive 624,250.00 149,648.20 290,570.05
project of area A has been completed. The new import market project in the Comprehensive
Bonded Zone Project
Bonded Zone: the general contracting construction in the south area, the bidding of the
landscape project has been completed, and 70% of the overall project has been completed in
the north area.
Logistics Park S2 108,000.00 40% of the main structure has been completed, with partial structure completed. 23,533.90 23,533.90
Logistics Park S3 132,000.00 55% of the main structure is completed, with partial structure completed. 30,400.05 30,400.05
Yiwu Digital Trade The curtain walls below the 12th floor of the main building and the podium have been basically
Industrial Park completed.
About 80% of the foundation works have been completed, among which the construction of
Yiwu International
Digital Logistics Market
building has been completed.
√Applicable □Not applicable
Unit: RMB10,000
Cumulative
Current fair Current
fair value Current Sale/redemption
Opening value provision Other Closing
Category of assets changes purchase amount in
balance Profit and loss for changes balance
included in amount current period
from changes impairment
equity
Held-for-trading
financial assets
Other equity
instruments investment
Other non-current
financial assets
Total 224,238.24 -526.25 -4,081.85 - 7,358.84 4,838.50 -7,110.28 206,183.94
Securities investment
√Applicable □Not applicable
Unit: RMB10,000
Profit
and Profit
loss Cumulati and
Sales
from ve fair loss
Initial Sourc Current amount
Security Security Opening change value from Closing Accounting
Securities investment e of purchase in
code abbreviation book value s in fair changes investm book value item
cost funds amount current
value in included ent in
period
the in equity current
current period
period
Held-for-
Self-
trading
Stocks / New shares 0.15 owned 0.15 - - 6.90 7.05 4.77 -
financial
funds
assets
Self- Other equity
Shenwan - 1,254.2
Stocks 000166 55,362.54 owned 64,218.80 - - - 49,920.08 instruments
Hongyuan 4,081.85 7
funds investment
Held-for-
Self-
Oriental 2,231.4 trading
Stocks 600278 5,000.00 owned 5,037.36 -440.74 - - 224.20 2,365.16
Venture 6 financial
funds
assets
Other non-
Self-
Tiantu current
Stocks 833979 15,519.21 owned 4,788.21 -14.24 - - - - 4,773.97
Investment financial
funds
assets
- 2,238.5 1,483.2
Total / / 75,881.90 / 74,044.52 -454.98 6.90 57,059.21 /
PE investment
√Applicable □Not applicable
The book value of private equity fund investment at the end of the reporting period was RMB 1,242,537,400, a decrease of RMB 20,792,400 from
RMB 1,263,329,800 at the end of the previous year, mainly due to the addition of RMB 60 million for Suzhou Xiangzhong Venture Capital Partnership
(Limited Partnership) in this period, and the recovery of investment funds of RMB 59,253,500 from Nantong Zijing Huatong Equity Investment (Limited
Partnership) and other enterprises, and RMB 23,882,000 from the disposal of Yiwu Shanfeng Investment Partnership, and RMB 2,343,100 from
changes in fair value.
Derivatives investment
□Applicable √Not applicable
□Applicable √Not applicable
(vi) Major sales of assets and equity
□Applicable √Not applicable
(vii) Analysis of major subsidiaries and associates
√Applicable □Not applicable
Unit: RMB10,000
Registered Total Net Net
company name Business
capital assets assets profits
Yiwu China Commodities City Financial Enterprise free capital investment, asset management, investment consulting
Holdings Co., Ltd. services, investment management services
Industry investment, investment management, property service, market
Haicheng Yiwu China Commodities City development and operation, market auxiliary service, real estate development,
Investment Development Co., Ltd. sale and lease, design, production and agency of domestic advertising, and
operation and management of parking garages
Yiwu Shangbo (former name: Yiwu Shangbo
Enterprise management; property management, etc. 30,000.00 83,451.20 32,388.29 -2,011.02
Real Estate Co., Ltd.)
Yiwu Commodities City Gonglian Property
Real estate development and sale 20,000.00 16,041.83 15,775.03 -94.38
Co., Ltd.
Kuaijietong Payment Service Co., Ltd. Internet payment service 18,000.00 56,350.88 13,616.08 1,000.95
Yiwu Xingchen Enterprise Management Co.,
Ltd. (former name: Yiwu China Commodities R&D of computer and multimedia software 15,000.00 12,085.47 12,058.39 -23.40
City Payment Network Technology Co., Ltd.)
Yiwu China Commodities City Import and
Domestic trade and international trade 10,000.00 87,816.70 5,775.63 3,291.02
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 consulting, 10,000.00 36,817.66 12,293.54 110.22
Ltd.
technical services, technology transfer, etc.
Yiwu China Commodities City Supply Chain
Supply chain management service 10,000.00 20,426.92 6,809.85 842.41
Management Co., Ltd.
Computer software, multimedia technologies, computer network and application,
Zhejiang Yiwugou E-commerce Co., Ltd. 10,000.00 14,796.68 10,353.29 1,206.88
and wholesale & retail
Yiwu China Commodities City Property
Real estate development and sale 500,000.00 1,795,280.05 618,851.71 43,105.17
Development Co., Ltd.
Yiwu Hongyi Equity Investment Fund Investment management, equity investment, asset management and investment
Partnership (limited partnership) consulting
Zhejiang Chouzhou Financial Lease Co.,
Financial lease service, and transfer of financial lease assets 100,000.00 1,682,685.53 188,155.98 24,301.81
Ltd.
Industry investment, investment management, property service, operation and
Yiwu Shanglv Investment Development Co.,
management of parking garages, business marketing planning, operation and 80,000.00 135,614.42 84,156.82 2,618.68
Ltd.
management consulting, and operation and management of shopping malls
Pujiang Lvgu Property Co., Ltd. Real estate development and sale 70,000.00 122,095.85 76,449.22 2,642.70
International cargo transportation agency by sea; international cargo
Zhejiang Zhijie Yuangang International transportation agency by air; international cargo transportation agency by land;
Supply Chain Technology Co., Ltd. domestic cargo transportation agency; domestic shipping agency; general cargo
warehousing services, etc.
Yiwu Rongshang Real Estate Co., Ltd. Real estate development and sale 10,204.08 13,547.12 13,398.14 87,577.34
Yiwu Chuangcheng Real Estate Co., Ltd. Real estate development and sale 8,333.33 47,540.47 11,853.87 56,192.82
Real estate development, sale and lease; real estate brokerage service, interior
Yiwu Guoshen Shangbo Property Co., Ltd. 4,081.63 1,254,543.18 15,457.16 10,525.21
decoration service; and landscaping service
(viii) Structured entities controlled by the Company
□Applicable √Not applicable
VI. Discussion and Analysis of the Company's Future Development
(i) Industry Pattern and Trends
√Applicable □Not applicable
From a macro perspective, the world economy is expected to stabilize and recover, the
global supply chain is still resilient, and the digital economy and digital trade will lead future
development. As the initial organizational form of the digital economy, the platform model is a
hallmark feature of the current competition in the digital economy. Jumping out of the
traditional model and innovating the trading platform is an important starting point for the
internationalization and intelligentization of the small commodity market. Through big data
mining, algorithm and computing power, the digital platform can efficiently organize resource
elements, force production companies and trading companies to upgrade, accurately connect
with the market, reduce trade costs for both parties, and form a sustainable buyer-supplier
interaction relationship. By building a new digital platform, the Company creates and
consolidates the market's position as an order center, settlement center, exhibition center, and
R&D center, expands the brand and physical positions of logistics centers and information
centers, and promotes domestic-international dual cycles. It is the current goal of Yiwu Market
to make a good plan for platform construction, build Yiwu's business service system centered
on the platform, build the world's small commodity trading ecosystem, and build the whole
chain of information and financial support from research and development of new products to
inventory clearance.
The Company's sixth-generation market, with the new import market as the core symbol,
realizes the integration of "export, import and re-export"; online and offline integration, "cloud-
network-terminal" digital linkage; promotes standards and design to enter the market, and
moves towards the high end of the value chain; integrates "market + manufacturing",
strengthen support for industrial belts and industrial digitalization.
(ii) Development strategies of the Company
√Applicable □Not applicable
At the Fifth China-Africa Entrepreneurs Conference, General Secretary Xi Jinping called
Yiwu the world "Capital of Small Commodities", pointing out the direction for the development
of the market and the Company. As the builder and service provider of Yiwu Market, the
Company shoulders the historical mission of building the world's "Small Commodity Capital"
with high quality and high level. The Company puts forward the development strategy of
“taking the market as the main business, taking the digital as the link, taking the platform as the
support, building an international trade comprehensive service provider”.
With the goal of building the world's "Small Commodity Capital" with high quality and high
standards, focusing on the main market business, promoting various resource elements to
concentrate in the main business, opening up all links of the domestic and foreign trade supply
chain through vigorously developing digital trade, and continuously enhancing and upgrading
the core competitiveness to empower the small commodity industry chain and ecosystem,
promoting the transformation of the physical market into a global trade service platform for
small, medium and micro enterprises, and the transformation of the Company from a market
manager to a comprehensive trade service provider.
(iii) Business plan
√Applicable □Not applicable
In the past 30 years, generations of employees of company the have overcome difficulties
and forged ahead, creating leading enterprises in the field of commerce and trade in the country;
batches of entrepreneurs have continued to struggle with their original intentions, and have
achieved the world's largest small commodity wholesale market. Over the past 30 years, the
employees of company have unswervingly created a new world. Today, 30 years later, the
employees of company are standing at a new starting point. The Company encourages all cadres
and employees to concentrate, boost their energy, and forge ahead in unity, so as to promote
various tasks to a new level!
Business plan goals of 2023: based on 2019 performance, operating revenue growth rate
shall be not less than 180%; earnings per share shall be not less than RMB 0.25; the above two
indicators are not less than 75% of those of the Company's benchmarking enterprise or average
of the industry; main business income accounts for not less than 90% of operating income; GMV
of chinagoods platform, which is the innovative business of the Company, shall be not less than
RMB 50 billion.
(1) Promoting digital reform of the market and innovatively developing the digital market
Promote the digitalization of all elements of the "people, goods, and market" market in an
integrated manner, build a new market trade scene with online and offline integration, and “cloud,
internet, and terminall” linkage, and build a digital market model in the east of the second district
of the International Trade City.
(2) Improve the digitization of "people"
Fully tap the value of buyers' data, attract accurate customer groups through digital
management tools, empower business customers' business growth and value upgrades, and
provide full life cycle services for business customers and full life cycle management for buyers.
(3) Improve the digitalization of "goods"
Create a "good goods in a package" digital supply chain system to support the growth of
domestic trade, foreign trade, and e-commerce.
(4) Improve the digitization of the "market"
Build two application scenarios of digital service and digital operation and maintenance,
realize intelligent market service, market operation, and property management, multi-span
collaboration, efficient connection, and data fusion in diversified trade scenarios, and provide the
"Yiwu Solution" for the transformation of traditional commodity trading markets.
(1) Promoting the reform of trade digitalization and iteratively upgrading the digital trade
ecology
Accelerate the promotion of digitalization to lead the reconstruction of the supply chain
system, and accelerate the formation of a full-link contract fulfillment service closed loop
through the digitization of information flow, goods flow, and payment flow in all links of trade,
so as to reduce costs and increase efficiency of small, medium and micro trade entities and
empower them.
(2) Upgrading chinagoods platform
Focusing on the promotion and application of the core product Caigoubao and the quality
improvement and expansion of the Caigoubao industrial belt, expand functions such as digital
marketing, traffic empowerment, and order matching, and improve the one-stop digital trade
service of "customs, exchange and tax, transportation, warehousing and financing" to help the
upgrade of market procurement trade to better facilitate the free and convenient participation of
small, medium and micro entities in international trade.
(3) Strengthening digital settlement empowerment
Build and improve the "Yiwu Pay" brand, take advantage of the integration of third-party
payment licenses and market trade scenarios, continue to expand the scale of domestic
payment and cross-border RMB payment business, actively apply for cross-border foreign
exchange qualifications, and form a closed loop of capital flow and information flow for mass
trade of small commodities. Explore e-CNY payment for cross-border trade, cooperate with
major banks to pilot digital renminbi cross-border payment applications, create a benchmark
for digital renminbi domestic and overseas, online and offline full-scenario applications, and
expand digital logistics channels.
(4) Building an international logistics network system
It is necessary to deepen cooperation with COSCO SHIPPING and ProLogis, and
strengthen the operation of the joint venture Zhijie Yuangang. Build an international logistics
network system and use the international logistics market as a platform to ensure the stability
of the international trade supply chain of small, medium and micro enterprises. Improve the
intelligence level of the logistics supply chain, apply advanced digital supply chain technology,
independently develop order, transportation, and warehouse management systems, and
realize intelligent collaboration of cross-border supply chain resources. Build a digital cross-
border logistics service platform, and build a digital international logistics consignment system
that connects the whole China and the world.
(5) Expending overseas network
Accelerate the digital construction of Yiwu overseas warehouses, comprehensively innovate
the operation mode of traditional overseas warehouses, build a digital and intelligent operation
management platform for overseas warehouses, establish standardized, scenario-based, and
automated operation scenarios, and improve the coverage and facilitation of international trade
contract fulfillment services, to provide strong support for the global circulation of goods made in
China. It is necessary to increase the layout of overseas projects in key trading countries and
regions such as the Middle East, Africa, and RCEP countries for the Yiwu Market, so as to realize
the advancement of the Yiwu Market and drive Yiwu's products to go overseas on their own
initiative.
(iv) Potential risks
√Applicable □Not applicable
e-commerce platforms are strong competitors in the commodities trading market. Large-sized
shopping malls offer products of reliable quality and well-known brands; hypermarkets or
warehouse stores supply diversified products at low prices; e-commerce platforms provide new
trading means and facilitate consumers. Purchasers or consumers may also choose to make
procurement or consumption via e-commerce platforms for convenience. Therefore, the
Company may compete with other forms of business. In addition, affected by the rising
specialized market, robust development of the industry market and rapid development of the
central and western regions, the Company may also face competition from other similar
specialized markets.
and the expansion of the Company’s business, and with the expansion of experienced
international trade, warehousing and logistics, supply chain, overseas development, information
data, industrial investment, and business operations, the Company may face the risk of
insufficient reserves of professional talents and compound talents.
international trade, and the development of global market trade is more complicated and severe
than before; new technologies are accelerating to breed new opportunities, and new trade
models and new formats are constantly emerging.
(v) Others
□Applicable √Not applicable
VII. The Company failed to disclose and explain the reasons in accordance with the
standards due to special reasons such as non-applicable standards or state secrets
and trade secrets.
□Applicable √Not applicable
Section IV. Corporate Governance
I. Description of corporate governance
√Applicable □Not applicable
During the reporting period, in strict accordance with the Company Law of the People's
Republic of China, the Securities Law of the People's Republic of China, the Code of
Governance for Listed Companies and the relevant laws and regulations of China Securities
Regulatory Commission and Shanghai Stock Exchange, the Company has continuously
established and improved relevant systems, endeavoured to improve the corporate
governance structure, and conduct standardized and lawful operation. There is no difference
between the actual status of the Company's legal person governance structure and the
normative documents related to the governance of the listed company.
(I) Shareholders and general meetings of shareholders
The Company convenes and holds a general meeting of shareholders in strict accordance
with the Rules of Procedure for the General Meeting of Shareholders of Listed Companies to
ensure that all shareholders of the Company fully exercise their rights, especially those of small
and medium shareholders. In peacetime, the Company earnestly receives visits and calls from
shareholders to ensure the shareholders’ rights to know, participate and vote on major company
issues, so that shareholders can truly enjoy equal rights.
(II) Controlling shareholders and the listed company
The controlling shareholder of the Company exercised the rights of investors through the
general meeting of shareholders in accordance with the law, and did not directly or indirectly
intervene in the Company's decision-making and business activities beyond the general meeting
of shareholders. The Company has achieved the five independences of personnel, assets,
finances, institutions and businesses. The Company's board of directors, board of supervisors
and internal institutions can operate independently. The controlling shareholder of the Company
can strictly abide by the promise made to the Company to avoid horizontal competition. When
the Company has connected transactions with its controlling shareholders, it strictly follows the
relevant laws and regulations to ensure that the connected transactions are fair, just and
equitable.
(III) Directors and Board of Directors
The Company selects directors in strict accordance with the procedures stipulated in the
"Articles of Association", and convenes and holds board meetings in strict accordance with the
"Code of Corporate Governance for Listed Companies". All directors of the Company can
conscientiously attend the board of directors and shareholders' meetings, actively participate in
training, and conscientiously perform their duties as directors. The three independent directors
can conscientiously perform the duties and obligations entrusted by laws, regulations and the
Company's articles of association, express independent opinions and suggestions on important
matters of the Company, and effectively protect the legitimate rights and interests of
shareholders.
(IV) Supervisors and Board of Supervisors
During the reporting period, the Company held eight meetings of Board of Supervisors
meetings, and the convening and holding procedures of the previous meetings complied with
relevant laws and regulations. Company supervisors can earnestly perform their duties,
supervise major company matters, supervise the legality and compliance of the Company's
directors and senior managers in performing their duties, safeguarding the legitimate rights and
interests of the Company and shareholders.
(V) Information disclosure and investor relationship management
The Company disclosed relevant information in a true, accurate, complete and timely
manner in accordance with the "Administrative Measures for Information Disclosure of Listed
Companies". Investors can learn about the Company's situation through media publicity and
telephone consultation. In addition to completing mandatory regular reports and disclosure of
temporary announcements, the Company proactively conducts compliant and voluntary
information disclosure, allowing investors to have a continuous understanding of the business
conditions they care about, and truly protecting shareholders' right to know.
Whether there are major differences between the corporate governance and the requirements
of the law, administrative laws and regulations, and relevant regulations of the China Securities
Regulatory Commission; if there are major differences, the reasons should be explained.
□Applicable √Not applicable
II. Specific measures for ensuring the independency of the Company's controlling
shareholder and actual controller in company assets, personnel, finance,
organization, business and others, and solutions taken after they influenced the
independency of the Company, the progress thereof and follow-up work plan
□Applicable √Not applicable
Cases in which the Company's controlling shareholder, actual controller and other units
controlled by them conduct business as same as or similar to that of the Company, the
influence on the Company due to major changes in horizontal competitors or horizontal
competition, measures taken, progress thereof and follow-up solution plan
□Applicable √Not applicable
III. General meeting of shareholders
Designated
website on
Session of Date of disclosure Resolution of
Date which the
meeting of the resolution the meeting
resolution is
published
Resolution of the
See the
first provisional
resolution
general meeting of Mar 10, 2022 www.sse.com.cn Mar 11, 2022
notice for
shareholders in
details
See the
resolution
General Meeting April 13, 2022 www.sse.com.cn April 14, 2022
notice for
of Shareholders
details
The second
See the
provisional
resolution
general meeting of Nov 8, 2022 www.sse.com.cn Nov 9, 2022
notice for
shareholders in
details
The third
See the
provisional
resolution
general meeting of Nov 29, 2022 www.sse.com.cn Nov 30, 2022
notice for
shareholders in
details
The preferred shareholders whose voting rights had been restituted requested to an
provisional general meeting of shareholders
□Applicable √Not applicable
Statement on shareholders’ meetings
√Applicable □Not applicable
“Proposal on By-election of Supervisors”.
The 2021 Annual General Meeting of Shareholders deliberated and adopted “2021 Board
of Directors Work Report”, “2021 Board of Supervisors Work Report”, “2021 Annual Report and
Summary”, “2021 Final Accounts Report”, “2022 Financial Budget Report”, and “2021 Profit
Distribution Plan”, “Proposal on the Proposed Issuance of Various Debt Financing Instruments
in the Coming 12 Months”.
the "Proposal on the Re-appointment of Accounting Firm", the "Proposal on the Election of Non-
Independent Directors", the "Proposal on the Election of Independent Directors", and the
"Proposal on the Election of Supervisors".
"Proposal on Reducing and Exempting Rents for Small and Micro Enterprises or Individual
Industrial and Commercial Households".
IV. Directors, supervisors and senior management
(i) Changes in shareholding and remuneration of current and resigned directors, supervisors and senior executives during the reporting
period
√Applicable □Not applicable
Unit: Ten Thousand Shares
Total pre-tax Remuneration
The remuneration received from
Number Number
amount received related
of shares of
of stock from the parties of the
held at shares
Position Start date Term end increase Reasons for Company Company
Name SEX AGE the held at
(Note) of tenure date or change during the
beginning the end
decrease reporting
of the of the
during period (RMB
year year
the year ten
thousand)
ZHAO Board September
Male 56 34 34 49.2 No
Wenge chairman 27, 2018
Vice
WANG Chairman March 8,
Male 50 30 30 49.2 No
Dong General 2019
manager
LI May 12,
Director Male 51 0 0 0 Yes
Chengqun 2014
ZHANG November
Director Male 49 0 0 0 Yes
Lang 8, 2022
WANG August 27, November
Director Male 59 0 0 0 Yes
Chunming 2019 8, 2022
Director
December
XU Hang Board Male 49 30 30 41.82 No
Secretary
ZHANG November
Director Male 43 0 0 0 Yes
Leping 8, 2022
December November
GU Zhixu Director Male 35 0 0 0 Yes
MA Independent August 27,
Male 55 0 0 7.2 No
Shuzhong director 2019
HONG Independent May 22,
Male 57 0 0 7.2 No
Jianqiao director 2020
LUO Independent April 9,
Male 55 0 0 7.2 No
Jinming director 2021
Chairman of
the December
JIN Xiaojia Male 35 0 0 0 Yes
Supervisory 16, 2016
Board
WANG October
Supervisor Male 50 0 0 0 Yes
Jinjian 26, 2020
WU March 10,
Supervisor Female 32 0 0 0 Yes
Menghua 2022
WANG October February
Supervisor Female 43 0 0 0 Yes
Gaiying 26, 2020 22, 2022
Employee December
FANG Min Male 38 0 0 27.85 No
supervisor 8, 2020
JIN Employee December
Male 45 0 0 17.51 No
Yongsheng supervisor 8, 2020
HUANG Vice general June 21,
Male 33 0 0 24.395 No
Haiyang manager 2022
ZHANG Vice general July 7,
Male 55 30 30 41.82 No
Qizhen manager 2017
SHOU Vice general November
Male 49 0 0 6.67 No
Shengdi manager 4, 2021
Vice general June 21,
LI Xiaobao Male 46 0 0 24.395 No
manager 2022
GONG Vice general September
Male 43 20 20 41.82 No
Chenghao manager 29, 2021
YANG Vice general September
Male 40 20 20 41.82 No
Yang manager 29, 2021
HUANG Vice general March 9,
Female 40 0 0 0 No
Xiaoying manager 2023
ZHAO Financial May 12,
Female 50 35.01 35.01 41.82 No
Difang Manager 2014
Equity
Incentive
Vice general July 17, June 21,
WU Xiubin Male 52 30 0 -30 Repurchase 17.425 No
manager 2020 2022
and
Cancellation
Equity
Incentive
JIN Vice general September September
Male 53 30 0 -30 Repurchase 17.425 No
Gengzhong manager 18, 2020 6, 2022
and
Cancellation
Vice general November November
ZHU Yi Male 43 0 0 0 No
manager 4, 2021 8, 2022
Total / / / / / 259.01 199.01 -60 / 464.77 /
Name Main working experience
ZHAO He used to be Vice Chairman and General Manager of the Company, and is currently Secretary of the Party Committee and Chairman of
Wenge the Company.
WANG He used to be a member and deputy director of the Party Committee of Yiwu SASAO, and deputy director (concurrently) of the
Dong management committee of the State-owned Assets Operation Center, and is currently the deputy secretary of the Company’s party
committee, vice chairman and general manager.
LI He used to be the deputy party secretary, vice chairman and general manager of Yiwu Small Commodity City Evergrande Development
Chengqun Co., Ltd., and is currently the party secretary, chairman and company director of Yiwu Market Development Group Co., Ltd.
ZHANG He used to be the party secretary, vice chairman and general manager of Yiwu International Land Port Group Co., Ltd., and is currently
Lang the deputy secretary, vice chairman, general manager and company director of Yiwu Market Development Group Co., Ltd.
WANG He used to be a director of the Company, and his term expired on November 8, 2022, and has not held any other positions in the
Chunming Company since then.
XU Hang He used to be general manager of the Company's securities legal affairs department, and representative of securities affairs of the
Company's, and is currently a director and the secretary of the board of the Company.
ZHANG He used to be the general manager of Hangtou Equity Investment Fund Management (Hangzhou) Co., Ltd., and is currently the deputy
Leping general manager and director of Zhejiang Zhecai Capital Management Co., Ltd.
GU Zhixu He used to be a director of the Company, and his term expired on November 8, 2022, and has not held any other positions in the
Company since then.
MA He is currently the dean of the China Digital Trade Research Institute of Zhejiang University and concurrently serves as an independent
Shuzhong director of the Company.
HONG He is currently the dean of the Accounting Department of the School of Management, Fudan University, and concurrently serves as an
Jianqiao independent director of the Company.
LUO He's now a professor of Zhejiang University, and an independent director of the Company and Silan Microelectronics Co., Ltd.
Jinming
JIN Xiaojia He used to be the accounting director of the Finance Department of Yiwu Communications Investment and Construction Group, and is
currently a supervisor and chairman of the supervisory committee of the Company.
WANG He used to be the deputy general manager of Yiwu China Commodities City Property Development Co., Ltd., and is currently the general
Jinjian manager and company supervisor of Yiwu China Commodities City Property Development Co., Ltd.
WU She used to be a supervisor of Yiwu Market Development Group Co., Ltd., concurrently a supervisor of Yiwu State-owned Capital
Menghua Operation Co., Ltd. and a supervisor of Yiwu Industrial Investment Development Group Co., Ltd., and currently serves as a supervisor of
the Company.
WANG She used to be a supervisor of the Company, and resigned as a supervisor of the Company on February 22, 2022, and has not held any
Gaiying other positions in the Company since then.
FANG Min He used to be a business commissioner of the Company’s human resources department (party construction office), and currently serves
as deputy general manager of the Company’s human resources department (party construction office) and employee supervisor of the
Company.
JIN He used to be the business assistant of the Company's supervision and audit department, the accounting supervisor of the finance
Yongsheng department of the Company's Ocean Hotel, and the internal audit supervisor of the Company's legal audit department. He is currently the
financial director of Xingfu Lake International Conference Center and the Company's employee supervisor.
HUANG He used to be a member of the party committee and deputy general manager of Yiwu Urban Investment and Construction Group Co.,
Haiyang Ltd., and is currently a member of the party committee and deputy general manager of Zhejiang China Commodities City Group Co., Ltd.
ZHANG He used to be the general manager and marketing director of the Company's marketing department, and is currently a member of the
Qizhen party committee and deputy general manager of the Company.
He used to be a member of the Party Committee of Zhejiang Yiwu Municipal Bureau of Foreign Trade and Economic Cooperation, a
SHOU
member of the Party Committee and Deputy Director of Zhejiang Yiwu City Commerce Bureau, and is currently a member of the party
Shengdi
committee and deputy general manager of the Company.
He used to be a member of the party committee and deputy general manager of Yiwu Urban Investment and Construction Group Co.,
LI Xiaobao
Ltd., and is currently a member of the party committee and deputy general manager of Zhejiang China Commodities City Group Co., Ltd.
He used to be the general manager of Yiwu China Commodities City Information Technology Co., Ltd., and the general manager of Yiwu
GONG
China Commodities City Supply Chain Management Co., Ltd., and is currently a member of the party committee and deputy general
Chenghao
manager of the Company.
YANG He used to be the general manager of Zhejiang Yiwu China Commodities City Imported Commodity Market Branch, the general manager
Yang of Zhejiang Yiwu China Commodities City Import and Export Co., Ltd., and is currently a deputy general manager of the Company.
She used to be the director of the Supervision Office of the People's Government of Fotang Town, the secretary of the Disciplinary
HUANG
Committee, and a member of the Party Committee. He is currently a member of the Party Committee and Deputy General Manager of the
Xiaoying
Company.
ZHAO She used to be the general manager of the Company's financial department and is currently the head of the Company's finance.
Difang
He used to be a member of the Party Committee and a deputy general manager of the Company, and resigned as a deputy general
WU Xiubin
manager of the Company on June 21, 2022, and has not held other positions in the Company since then.
JIN He used to be a member of the Party Committee and a deputy general manager of the Company, and resigned as a deputy general
Gengzhong manager of the Company on September 6, 2022, and has not held other positions in the Company since then.
He used to be a member of the Party Committee and a deputy general manager of the Company, the term of which expired on November
ZHU Yi
Statement on other matters
√Applicable □Not applicable
will be determined after the completion of relevant assessments and the implementation of relevant procedures.
remuneration received after the annual appraisal based on the position in the Company.
(ii) Appointments of current and resigned directors, supervisors and senior executives
during the reporting period
√Applicable □Not applicable
Start Term
Name of Positions held in
Name of shareholder unit date of end
incumbent shareholder units
tenure date
Yiwu China Commodities City Chairman, general
ZHAO Wenge 2019
Holdings Limited manager
Yiwu China Commodities City
WANG Dong Director 2021
Holdings Limited
Yiwu Market Development Group
LI Chengqun Board chairman 2014
Co., Ltd.
Vice Chairman
Yiwu Market Development Group
ZHANG Lang and General 2022
Co., Ltd.
Manager
ZHANG Zhejiang Zhecai Capital Vice general
Leping Management Co., Ltd. manager
Yiwu State-owned Assets and State-
Assigned full-time
JIN Xiaojia owned Enterprise Development
supervisor
Service Center
Yiwu State-owned Assets and State-
Assigned full-time
WU Menghua owned Enterprise Development
supervisor
Service Center
Yiwu State-owned Assets and State-
WANG Assigned full-time
owned Enterprise Development
Gaiying supervisor
Service Center
Description of
the position in
the Nil
shareholder
unit
√Applicable □Not applicable
Term
Name of Positions held Start date of
Names of other units end
incumbent in other units tenure
date
Yiwu China Commodities City
XU Hang Director March 2017
Investment Management Co., Ltd.
HONG Independent
Shanghai Laiyifen Co., Ltd.
Jianqiao director
HONG Shanghai Huafon Microfiber Independent
Jianqiao Technology Co., Ltd. director
LUO Independent
Hangxiao Steel Structure Co., Ltd.
Jinming director
LUO Independent
Riyue Heavy Industries Co., Ltd.
Jinming director
LUO Independent
Ningbo Qiancheng Furniture Co., Ltd.
Jinming director
LUO Independent
Wanyuan Ecology Co., Ltd.
Jinming director
Chairman,
WANG Yiwu China Commodities City January
general
Jinjian Property Development Co., Ltd. 2019
manager
Description
of
employment Nil
in other
units
(iii) Remuneration of directors, supervisors and senior management personnel
√Applicable □Not applicable
Decision-making The remuneration of the Company’s remunerated directors,
procedures for the supervisors and senior executives shall be reviewed by the
remuneration of remuneration and appraisal committee of the Company’s board of
directors, supervisors directors and submitted to the board of directors for review and
and senior executives approval. The remuneration of directors and supervisors shall also be
submitted to the general meeting of shareholders for review and
approval.
The basis for The remuneration of independent directors is determined in
determining the accordance with the Independent Director Allowance System. The
remuneration of Independent Director Allowance System is deliberated and
directors, supervisors formulated by the board of directors and approved by the general
and senior managers meeting shareholders. The remuneration of the Company’s directors,
supervisors and senior management shall be reviewed and
determined by the Board of Directors’ Compensation and Appraisal
Committee in conjunction with the assessment opinions and results
of the state-owned regulatory authority, and submitted to the board
of directors for deliberation.
Actual payment of The relevant assessment for 2022 has not yet been completed, and
remuneration for the actual payment will be determined after the assessment is
directors, supervisors completed and the relevant procedures are performed.
and senior
management
The total The actual payment of remuneration will be determined after
remuneration actually completing the assessment and performing the relevant procedures.
received by all The salary currently paid is the pre-paid salary for 2022, totaling RMB
directors, supervisors 4,431,700 before tax.
and senior
management at the
end of the reporting
period
(iv) Changes in directors, supervisors and senior officers of the Company
√Applicable □Not applicable
Name Title Change Reasons for change
ZHANG Lang Director Election Election
ZHANG Leping Director Election Election
WANG Chunming Director Leaving Term expired
office
GU Zhixu Director Leaving Term expired
office
WU Menghua Supervisor Election Election
WANG Gaiying Supervisor Leaving Resigned as supervisor in
office accordance with organizational
arrangement
HUANG Haiyang Vice general Hiring Hired by the Board of Directors
manager
LI Xiaobao Vice general Hiring Hired by the Board of Directors
manager
HUANG Xiaoying Vice general Hiring Hired by the Board of Directors
manager
WU Xiubin Vice general Leaving Due to job adjustments, he resigned
manager office from deputy general manager.
JIN Gengzhong Vice general Leaving Due to job adjustments, he resigned
manager office from deputy general manager.
ZHU Yi Vice general Leaving Term expired
manager office
(v) Explanation of punishments by securities regulatory agencies in the past three years
□Applicable √Not applicable
(vi) Others
□Applicable √Not applicable
V. Description of the meetings of the Board of Directors held during the reporting period
Session of meeting Date Resolution of the meeting
Reviewed and approved
Board of Directors 22, 2022
Meeting of Shareholders in 2022"
Reviewed and approved
Firm in 2021"
Board of Directors 2022 9. "Proposal on Applying for Credit Granting from Relevant
Financial Institutions"
Coming 12 Months
Meeting of Shareholders"
of the Board of Directors in 2021"
Reviewed and approved
Board of Directors 2022 2. "Proposal on Participating in Land Bidding"
Funds to Entrust Financial Management"
Board of Directors 2022 1. "First Quarter Report for 2022"
Board of Directors 2022 1. "Proposal on Investing in the Construction of the First
Phase Project of Yiwu International Digital Logistics
Market"
Board of Directors 2022 1. "Proposal on Appointment of Deputy General Manager"
Reviewed and approved
Board of Directors 2022
Subsidiaries by Foreign Investment"
Reviewed and approved
Restricted Stocks and Repurchase and Cancellation of
Board of Directors 2022
Some Restricted Stocks"
August 16, Reviewed and approved
Directors
Reviewed and approved
Board of Directors 2022
Subsidiaries"
Reviewed and approved
Board of Directors 28, 2022
Financial Institutions"
Reviewed and approved
Board of Directors 2022
Firms"
General Meeting of Shareholders in 2022"
Reviewed and approved
of the Ninth Board of Directors"
Committees of the Ninth Board of Directors"
Board of Directors 8, 2022 4. "Proposal on the Appointment of the Company's Deputy
General Manager, Secretary of the Board of Directors and
Person in Charge of Finance"
Representative"
the Management Team Headed by the Chairman"
Reviewed and approved
Board of Directors 11, 2022 and Micro Enterprises or Individual Industrial and
Commercial Households"
Meeting of Shareholders in 2022"
Reviewed and approved
Construction and Related Transactions"
Board of Directors 22, 2022
Management Branch of the Company"
Reviewed and approved
Board of Directors 5, 2022
Amending the Articles of Association"
Reviewed and approved
Board of Directors 15, 2022 External Financial Assistance"
Reviewed and approved
Conditions for the First Unlocking Period of Part of the
First Grant of the 2020 Restricted Stock Incentive Plan"
Board of Directors 28, 2022 directors of the Company"
Company's senior management"
Meeting of Shareholders in 2023"
VI. Duties performed by directors
(i) Meetings of Board of Directors and Shareholders attended by Directors
Participati
on in
General
Participation in meetings of Board of Directors
meeting of
sharehold
ers
Failur
Independ e to
Director ent attend The
Name director or Numbe Number the number of
Number Number of
not r of of meeti sharehold
of participation Absence
board delegat ng in ers
attendanc s by Frequen
meetin es perso attending
es in communicati cy
gs this attende n the
person on
year d twice general
in a meeting
row or
not
ZHAO No 18 18 15 0 0 No 3
Wenge
WANG No 18 18 15 0 0 No 4
Dong
LI No 18 18 15 0 0 No 2
Chengq
un
ZHANG No 6 6 5 0 0 No 2
Lang
WANG No 12 12 10 0 0 No 0
Chunmi
ng
XU No 18 18 15 0 0 No 4
Hang
ZHANG No 6 6 5 0 0 No 1
Leping
GU No 12 11 10 1 0 No 0
Zhixu
MA Yes 18 18 15 0 0 No 1
Shuzho
ng
HONG Yes 18 16 15 2 0 No 0
Jianqiao
LUO Yes 18 18 15 0 0 No 1
Jinming
Explanation of not attending the board meeting in person for two consecutive times
□Applicable √Not applicable
Number of meetings of the Board of 18
Directors held during the year
Including: the number of on-site meetings 3
Number of meetings held by communication 15
Number of meetings held on site combined 0
with communication methods
(ii) Objections raised by directors on company-related matters
□Applicable √Not applicable
(iii) Others
□Applicable √Not applicable
VII. Committees under the Board of Directors
√Applicable □Not applicable
(1).Members of Committees under the Board of Directors
Category of committees Member name
Audit committee HONG Jianqiao MA Shuzhong ZHANG Lang
Nomination Committee MA Shuzhong LUO Jinming XU Hang
Compensation and
LUO Jinming HONG Jianqiao LI Chengqun
Appraisal Committee
Strategy Committee ZHAO Wenge WANG Dong MA Shuzhong
(2).8 meetings were held by these committees during the report period
Other
Important comments and things on
Date Contents of the meeting
suggestions duty
fulfillment
March 3, The 15th meeting of the Audit Approved the 2021 Integrated
Directors reviewed and approved
the "2021 Integrated Audit Plan"
March 20, The 16th meeting of the Audit Approved the 2021 financial
Directors reviewed and approved evaluation report, the 2021
the "2021 Annual Financial internal control audit report, and
Report", "2021 Annual Internal the audit committee's 2021
Control Evaluation Report", performance report
"2021 Annual Internal Control
Audit Report", and "2021 Annual
Duty Performance Report of the
Audit Committee"
June 20, The 8th Meeting of the Agreed to nominate Mr. HUANG
Board of Directors reviewed and candidates for deputy general
approved the "Proposal on manager
Nominating Deputy General
Managers"
August The 17th Meeting of the Audit Approved the 2021 Semi-annual
of the Board of Directors Report
reviewed and approved the "2022
Semi-Annual Internal Control
Audit Work Report"
October The 9th Meeting of the Approved the general election of
Eighth Board of Directors nominate Mr. Zhao Wenge, Mr.
reviewed and approved the Wang Dong, Mr. Li Chengqun,
"Proposal on the General Mr. ZHANG Lang and Mr. Xu
Election of the Board of Directors" Hang as non-independent
director candidates for the
Company's ninth board of
directors, and nominate Mr. Ma
Shuzhong, Mr. Hong Jianqiao
and Mr. Luo Jinming as the
Company's Candidates for
independent directors of the
Ninth Board of Directors, among
whom Mr. Hong Jianqiao is an
accounting professional
October The 18th meeting of the Audit Approved the proposal on
Directors reviewed and approved accounting firm
the "Proposal on Renewing the
Engagement of Accounting
Firms"
November The first meeting of the Agreed to nominate Mr. Wang
Ninth Board of Directors reviewed manager; agree to nominate Mr.
and approved the "Proposal on HUANG Haiyang, Mr. ZHANG
Nominating the Company's Qizhen, Mr. Shou Shengdi, Mr.
General Manager", "The LI Xiaobao, Mr. Gong
Proposal on Nominating the Chenghao, and Mr. Yang Yang
Company's Deputy General as candidates for deputy general
Manager, Secretary of the Board manager, and Mr. Xu Hang as
of Directors and Person in candidate for the Company's
Charge of Finance" board secretary , Ms. Zhao
Difang is the candidate for the
Company's financial director
December The first meeting of the Agreed to award part of the
Committee of the Ninth Board of conditions during the first
Directors deliberated and unlocking period for the first
approved the "Proposal on the time; agreed to honor the 2021
Conditions for Unlocking of the annual remuneration of some
First Granted Part in the First directors and executives
Unlocking Period of the
Restricted Stock Incentive Plan",
"About the 2021 Annual Proposal
on Salary Cashing", "Proposal on
the 2021 Annual Salary Cashing
of the Company's Senior
Management"
(3).The specifics of objection
□Applicable √Not applicable
VIII. Explanation of the Company risk that the board of supervisors founds
□Applicable √Not applicable
The Board of Supervisors has no objection to the supervision matters during the reporting
period.
IX. Employees of the parent company and major subsidiaries
(i) Employees
Number of employees in the parent company 1,754
Number of employees in major subsidiaries 1,475
Total number of employees 3,229
Number of retired employees for whom the
parent company and major subsidiaries have
to bear expenses
Professional composition
Professional composition category Professional composition
Production staff 498
Salesperson 102
Technical staff 1,905
Financial officer 94
Administration staff 416
Security personnel 198
Vehicle management staff 16
Total 3,229
Education level
Education level category Quantity (person)
Postgraduate 113
Bachelor's degree 1,530
College graduates 840
High school 326
Junior high school and below 420
Total 3,229
(ii) Salary policy
√Applicable □Not applicable
I. Principles of remuneration system
(1) Combination of duties, powers, responsibilities, and benefits;
(2) It shall be fair internally and competitive externally;
(3) Distribution according to work, priority to efficiency, fairness and sustainable
development;
(4) Adoption of the distribution form of "salary determined by post, grade determined by
ability, and award determined by performance" to reasonably widen the income gap.
Position importance, performance contribution, ability, work attitude and spirit of
cooperation.
(1) As far as the overall level is concerned, the Company determines the remuneration
based on the current economic benefits and sustainable development.
(2) The Company's salary system includes two different types.
a. The annual salary system is applicable to managers and deputy managers of the
Company's headquarters, as well as members of the management team of branches and
subsidiaries;
b. The structured wage system is applicable to employees who have signed labor contracts
for two years and above. Including grassroots management personnel, functional department
personnel, engineering management personnel, logistics management personnel and
equipment maintenance personnel.
(3) The remuneration of specially hired staff, staff waiting for duty, retired staff and timing
piecework staff shall be stipulated separately.
(4) The Company's employee income generally includes four parts: job skill wages, bonuses,
benefits, and allowances.
(iii) Training program
√Applicable □Not applicable
According to the different training organizations, the Company's employee training can be
divided into: OJT training, company internal training, expatriate training and online training.
leaders of various departments, experienced or skilled employees belongs to OJT training,
including the Company's administrative management series training, business management
series training, engineering technology series training, and security logistics series training.
organizes internal trainers or invites external training institutions to tailor training courses for the
Company, allowing employees to receive systematic training, including corporate culture,
company organizational structure and rules and regulations, industry status and prospects, and
professional ethics, etiquette, code of conduct, language, computer skills, etc.
and job skills, the Company organizes personnel in specific positions to go out to participate in
the training of training institutions, including financial securities series training, human resource
management training, and enterprise management series training.
information technology and Internet technology, and different training content is set for different
positions, so that training and learning are independent and personalized, and the use of
resources is maximized.
(iv) Labor outsourcing
√Applicable □Not applicable
Total number of working hours of labor 2501.5 months
outsourcing
Total remuneration paid for labor outsourcing 14.3055 million yuan
X. Plan for profit distribution or capital reserve into stock capital
(i) Formulation, implementation or adjustment of cash dividend policy
√Applicable □Not applicable
According to the China Securities Regulatory Commission's Notice on Further
Implementation of Cash Dividends by Listed Companies (ZJF [2012] 37) and Zhejiang Securities
Regulatory Bureau Notice on Forwarding and Further Implementation of Listed Companies'
Cash Dividends (ZZJSSZ [2012] 138) Regulations, the Company held the 24th meeting of the
sixth board of directors on August 15, 2012, and reviewed and approved the Proposal on
Amending the Articles of Association, which revised the Company’s profit distribution policy and
adjustment decision-making mechanism. The second provisional general meeting of
shareholders held on September 3, 2012 was deliberated and approved. In order to further
implement the new requirements of the China Securities Regulatory Commission's Guidelines
for the Supervision of Listed Companies No. 3-Cash Dividend Distribution of Listed Companies
(November 30, 2013) and the Guidelines for Cash Dividend Distribution of Listed Companies of
the Shanghai Stock Exchange, the forty-fourth meeting of the sixth board of directors of the
Company held on April 17, 2014 reviewed and approved the Proposal on Amending the Profit
Distribution Clauses in the Articles of Association of the Company. The Company further clarified
the basic principles, distribution forms, specific policies, decision-making mechanisms and
procedures of the Company's profit distribution, which were reviewed and approved by the 2013
Annual General Meeting of Shareholders held on May 12, 2014. The nineteenth meeting of the
seventh board of directors of the Company held on December 25, 2015 reviewed and approved
the Plan of Zhejiang China Commodities City Group Co., Ltd. on Shareholder Dividend Return
Plan.
The Company's 2021 annual general meeting of shareholders held on April 13, 2022
reviewed and approved the Company's profit distribution plan for 2021. In 2021, based on the
total share capital of 5,491,274,176 shares, a cash dividend of RMB 0.73 (including tax) will be
distributed for every 10 shares. A total of RMB 400,863,014.85 was allocated. The Company's
board of directors published the Announcement on the Implementation of the Distribution of
Rights and Interests in 2021 on the website of the Shanghai Stock Exchange and the China
Securities Journal, Shanghai Securities News and Securities Times on June 1, 2022. The profits
have been distributed before June 10, 2022. The decision-making procedures related to the
Company's profit distribution comply with the provisions of the Articles of Association. The
Company listens to the opinions and demands of small and medium shareholders, and the profit
distribution is based on factors such as the Company's industry characteristics, development
stage and profitability level, and capital needs. It takes into account the requirements for
investors to share the results of the Company's development and growth and obtain reasonable
investment returns.
(ii) Special explanation of cash dividend policy
√Applicable □Not applicable
Whether it complies with the provisions of the Company's articles of √Y □N
association or the requirements of the resolution of the general meeting of
shareholders
Whether the dividend standard and ratio are clear and clear √Y □N
Whether the relevant decision-making procedures and mechanisms are √Y □N
complete
Whether the independent directors performed their duties and played their √Y □N
due role
Whether minority shareholders have the opportunity to fully express their √Y □N
opinions and demands, and whether their legitimate rights and interests
have been fully protected
(iii) During the reporting period, if the parent company is profitable and the profit
available for distribution to shareholders is positive, but does not propose a plan for
the distribution of cash profits, the Company shall disclose in details the reason, the
application and using plan of the undistributed profits.
□Applicable √Not applicable
(iv) Profit distribution and conversion of capital reserves into share capital during the
reporting period
√Applicable □Not applicable
Unit: RMB
Number of bonus shares for every 10 shares 0
Dividend payout for every 10 shares (tax
inclusive)
Number of shares converted from the
capitalization of capital reserve for every 10 0
shares
Cash dividend amount (tax included) 356,594,821.44
Net profit attributable to common
shareholders of listed companies in the 1,104,719,091.71
annual consolidated statements of dividends
Percentage of net profit attributable to
common shareholders of listed companies in 32.28
the consolidated statements (%)
The circumstance when repurchase of
shares in cash is included in cash dividends
Total dividend amount (tax included) 356,594,821.44
The ratio of the total dividend amount to the
net profit attributable to ordinary
shareholders of the listed company in the
consolidated statement (%)
XI. Incentive stock option plans, employee stock ownership plans and other employee
incentives granted by the Company and the impact thereof
(i) Relevant incentive matters have been disclosed in the temporary announcement and
there is no progress or change in subsequent implementation.
√Applicable □Not applicable
Overview of the matter Query website
On October 23, 2020, the twenty-third meeting of the eighth
session of the Company's board of directors passed the
Proposal on the Company's 2020 Restricted Stock Incentive
Plan (Draft) and Its 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 For details, please refer to
Incentives. The independent directors of the Company issued the Company's
relevant independent opinions. announcement on the
On October 23, 2020, the sixth meeting of the eighth board website of the Shanghai
of supervisors of the Company deliberated and approved the Stock Exchange
Proposal on the Company's 2020 Restricted Stock Incentive (www.sse.com.cn) on
Plan (Draft) and its Summary, The Proposal on the October 24, 2020.
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
issued relevant verification opinions.
Independent financial consultants, lawyers and other
intermediary agencies issued corresponding opinions.
For details, please refer to
On November 18, 2020, it received the Approval for
the Company's
Approving Zhejiang China Commodities City Group Co., Ltd. to
announcement on the
implement the 2020 restricted stock incentive plan issued by the
website of the Shanghai
State-owned Assets Supervision and Administration Office of
Stock Exchange
the People's Government of Yiwu City, forwarded by Yiwu China
(www.sse.com.cn) on
Commodities City Holdings Ltd. (Yiwu SASAOF〔2020〕51).
November 20, 2020.
From November 20, 2020 to November 29, 2020, the list of
incentive objects and positions of the 2020 restricted stock
For details, please refer to
incentive plan were internally publicized. Within the time limit of
the Company's
the publicity, the board of supervisors of the Company did not
announcement on the
receive any objection from any organization or individual or bad
website of the Shanghai
feedback, without feedback record. On November 30, 2020, the
Stock Exchange
Board of Supervisors of the Company issued the Examination
(www.sse.com.cn) on
Opinions and Public Statement of the Board of Supervisors on
December 1, 2020.
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 For details, please refer to
Stock Incentive Plan (Draft)’ and Summary”, the “Proposal on the Company's
the “Measures of Assessment and Management of announcement on the
Implementation of ‘Company’s 2020 Restricted Stock Incentive website of the Shanghai
Plan’”, and the “Proposal on Requesting the General Meeting of Stock Exchange
Shareholders to Authorize the Board of Directors to Deal with (www.sse.com.cn) on
Equity Incentive Related Matters”, and disclosed the “Self- December 11, 2020.
examination Report on the Trades of Company’s Stocks by
Insiders of Company’s 2020 Restricted Stock Incentive Plan”.
On December 11, 2020, the twenty-sixth meeting of the
eighth session of the Company's board of directors passed the
Proposal on Granting Restricted Shares to Incentive Objects for
the First Time. The independent directors of the Company For details, please refer to
issued relevant independent opinions. the Company's
On December 11, 2020, the seventh meeting of the announcement on the
Company's eighth board of supervisors passed the Proposal on website of the Shanghai
Granting Restricted Stocks to Incentive Objects for the First Stock Exchange
Time. The Board of Supervisors issued the Verification Opinions (www.sse.com.cn) on
of the Board of Supervisors on Matters Related to the First Grant December 12, 2020.
of the Company's 2020 Restricted Stock Incentive Plan.
Independent financial consultants, lawyers and other
intermediary agencies issued corresponding opinions.
For details, please refer to
On January 15, 2021, the Company received the Securities the Company's
Change Registration Certificate issued by the Shanghai Branch announcement on the
of China Securities Depository and Clearing Co., Ltd., and the website of the Shanghai
Company completed the registration of the first grant of Stock Exchange
restricted stocks to incentive objects. (www.sse.com.cn) on
January 19, 2021.
On August 9, 2021, the 35th meeting of the eighth board of
directors of the Company passed the "Proposal on Reserved
Granting Restricted Stocks to Incentive Objects", "On Adjusting
the Repurchase Price of Restricted Stocks and Repurchasing
and Cancelling Some Restricted Stocks" 's proposal". The
For details, please refer to
independent directors of the Company issued relevant
the Company's
independent opinions.
announcement on the
On August 9, 2021, the ninth meeting of the eighth Boarder
website of the Shanghai
of Supervisors of the Company passed the "Proposal on
Stock Exchange
Reserved Granting Restricted Stocks to Incentive Objects",
(www.sse.com.cn) on
"Proposal on Adjusting the Repurchase Price of Restricted
August 11, 2021.
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.
For details, see the
On November 4, 2021, the Company received the
Company's announcement
Securities Change Registration Certificate issued by the
on the website of the
Shanghai Branch of China Securities Depository and Clearing
Shanghai Stock Exchange
Co., Ltd., and the Company completed the registration of the
(www.sse.com.cn) on
reserved grant of 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 details, see the
for repurchase and cancellation of restricted stocks that have
Company's announcement
been granted but not yet lifted by some resigned employees. On
on the website of the
November 30, 2021, the Company received the "Securities
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 fifty-first meeting of the eighth board
of directors of the Company reviewed and approved the
"Proposal on Adjusting the Repurchase Price of Restricted
For details, see the
Stocks and the Repurchase and Cancellation of Some
Company's announcement
Restricted Stocks", and the independent directors of the
on the website of the
Company issued a statement on this Independent opinion
Shanghai Stock Exchange
expressing consent.
(www.sse.com.cn) on July
On July 19, 2022, the 14th meeting of the 8th Supervisory
Committee 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 details, see the
for repurchase and cancellation of restricted stocks that have
Company's announcement
been granted but not yet lifted by some resigned employees. On
on the website of the
October 21, 2022, the Company received the "Securities
Shanghai Stock Exchange
Change Registration Certificate" issued by China Securities
(www.sse.com.cn) on
Depository and Clearing Co., Ltd. Shanghai Branch, and the
October 19, 2022.
Company has completed the registration of the restricted stock
repurchase and cancellation.
On December 28, 2022, the sixth meeting of the ninth
session of the board of directors of the Company passed the
"Proposal on the achievements of the first part of the 2020
Restricted Stock Incentive Plan to grant part of the first unlocking
period to unlock the selling restrictions". The independent For details, see the
directors of the Company have issued independent opinions Company's announcement
expressing agreement. on the website of the
On December 28, 2022, the second meeting of the Shanghai Stock Exchange
Company's ninth board of supervisors passed the "Proposal on (www.sse.com.cn) on July
the Achievement of the First Unlocking Period of the First 20, 2022.
Unlocking Period of the First Grant of the 2020 Restricted Stock
Incentive Plan". The Board of Supervisors issued the
"Verification Opinion on the Achievement of the Unlocking
Conditions for the First Unlocking Period of the Part of the First
Grant of the 2020 Restricted Stock Incentive Plan".
(ii) Incentives that have not been disclosed in the temporary announcements or had
further progresses
Incentive stock option
□Applicable √Not applicable
Other statements
□Applicable √Not applicable
Employee stock ownership plans
□Applicable √Not applicable
Other incentives
□Applicable √Not applicable
(iii) Equity incentives granted to directors and senior executives during the reporting
period
□Applicable √Not applicable
(iv) The evaluation mechanism for senior managers during the reporting period, as well
as the establishment and implementation of incentive mechanisms
√Applicable □Not applicable
The salary appraisal of the senior management personnel is completed and determined
according to the performance appraisal method of the head of the enterprise and the
Company's operation and related appraisal indicators, then the salary determination is
completed.
XII. Construction and implementation of internal control system during the reporting
period
√Applicable □Not applicable
For details, please refer to the "2022 Internal Control Evaluation Report" disclosed by the
Company on the website of the Shanghai Stock Exchange.
Explanation of major deficiencies in internal control during the reporting period
□Applicable √Not applicable
XIII. Management and control of subsidiaries during the reporting period
√Applicable □Not applicable
For details, please refer to the "2022 Internal Control Evaluation Report" disclosed by the
Company on the website of the Shanghai Stock Exchange.
XIV. Explanation of the internal control audit report
√Applicable □Not applicable
The Company hired Ernst & Young Hua Ming Certified Public Accountants (special general
partnership) to audit the effectiveness of the Company's internal control in its 2022 financial
statements. The accounting firm has issued a standard unqualified internal control audit report.
It is believed that the Company maintained effective internal control of financial reporting in all
major aspects in accordance with the Basic Standards for Corporate Internal Control and related
regulations on December 31, 2022. Please refer to the website of Shanghai Stock Exchange
(www.sse.com.cn) for details of the "Internal Control Audit Report".
Disclosure of internal control audit report: Yes
Opinion type of internal control audit report: standard unqualified opinion
XV. Self-examination and rectification of the Listed Company's governance special
actions
In the Listed Company's governance special actions, after self-examination, the Company
found that the Company's articles of association did not specify that when the shareholders'
general meeting elects directors and supervisors, it should implement the cumulative voting
system. The Company held the third provisional general meeting of shareholders in 2021 on
November 4, 2021. With the special resolution of the general meeting of shareholders, the
relevant content of Article 84 of the Company's articles of association, i.e., "When the general
meeting of shareholders votes on the election of directors and supervisors, the cumulative voting
system may be implemented in accordance with the provisions of the Articles of Association or
the resolutions of the shareholders' general meeting" was revised to "When the general meeting
of shareholders votes on the election of two or more directors and supervisors, the cumulative
voting system shall be implemented in accordance with the provisions of the Articles of
Association or the resolutions of the general meeting of shareholders.” For details, please refer
to the "Announcement on Amending the Articles of Association" (L 2021-048) disclosed on
October 19, 2021 and the "Announcement on Resolutions of the Third Provisional General
Meeting in 2021" disclosed on November 5, 2021 ( L 2021-054).
XVI. Others
□Applicable √Not applicable
Section V. Environmental and Social Responsibilities
I. Environmental issues
Whether to establish relevant mechanisms for No
environmental protection
Investment in environmental protection funds NA
during the reporting period (unit: ten thousand
yuan)
(i)Description of the environmental protection status of the Company and its main
subsidiaries that are key pollutant discharging units announced by the environmental
protection authorities
□Applicable √Not applicable
(ii) Description of the environmental protection status of the companies other than the
key pollutant discharging units
□Applicable √Not applicable
(iii) Relevant information that is conducive to protecting ecology, preventing pollution,
and fulfilling environmental responsibilities
□Applicable √Not applicable
(iv) Measures taken to reduce their carbon emissions during the reporting period and the
effect
Whether to take carbon reduction
Yes
measures
Reduction of carbon dioxide
equivalent emissions (unit: tons)
Types of carbon reduction measures
(such as using clean energy to
generate electricity, using carbon
reduction technologies in the clean energy power generation
production process, developing and
producing new products that help
reduce carbon emissions, etc.)
Specific instructions
□Applicable √Not applicable
II. Social responsibility
(i) Whether to disclose social responsibility report, sustainable development report or
ESG report separately
√Applicable □Not applicable
For details, please refer to the "2022 ESG Report" disclosed by the Company on the website of
the Shanghai Stock Exchange.
(ii) Social responsibility
□Applicable √Not applicable
Specific instructions
□Applicable √Not applicable
III. Status of consolidation and expansion of the results of poverty alleviation, rural
revitalization and other specific work
□Applicable √Not applicable
Specific instructions
□Applicable √Not applicable
Section VI. Significant Matters
I. Fulfillment of commitments
(i) Commitments made by the actual controller, shareholders, affiliates and acquirer of
the Company, the Company itself and other related parties during the reporting
period or as of the reporting period
□Applicable √Not applicable
(ii) If there is a profit forecast for the Company’s assets or projects, and the reporting
period is still in the profit forecast period, the Company will explain whether the
assets or projects have reached the original profit forecast and the reason
□Reached □Not reached √Not applicable
Completion of performance commitments and its impact on the impairment test
(iii)
of goodwill
□Applicable √Not applicable
II.Non-operating capital occupation by controlling shareholders and other related
parties during the reporting period
□Applicable √Not applicable
III. Illegal guarantees
□Applicable √Not applicable
IV. The Company's explanation on the ‘non-standard opinion audit report’ of the
accounting firm
□Applicable √Not applicable
V. The Company's analysis and explanation on the reasons and effects of changes in
accounting policies, accounting estimates or corrections of major accounting errors
(i) The Company's analysis and explanation on the reasons and effects of changes in
accounting policies and accounting estimates
□Applicable √Not applicable
(ii) The Company's analysis and explanation on the reasons and effects of major
accounting errors correction
□Applicable √Not applicable
(iii) Communication with the former accounting firm
□Applicable √Not applicable
(iv) Other statements
□Applicable √Not applicable
VI. Engagement and termination of engagement of accounting firm
Unit: RMB10,000
Now engaging
Name of the engaged domestic Ernst & Young Hua Ming Certified Public Accountants
accounting firm (special general partnership)
Remuneration of the engaged 200
domestic accounting firm
Audit period of the engaged 15
domestic accounting firm
Name Remuneration
Internal control auditing Ernst & Young Hua Ming Certified Public 55
accounting firm Accountants (special general partnership)
Statement on the engagement or termination of engagement of accounting firm
√Applicable □Not applicable
After deliberation at the 55th meeting of the eighth Board of Directors of the Company held
on October 19, 2022, and the Company’s second provisional general meeting of shareholders
in 2022 held on November 8, 2022, the Proposal on Renewing the Appointment of the
Accounting Firm was passed, and agreed to continue Appoint Ernst & Young Hua Ming Certified
Public Accountants (Special General Partnership) as the Company's 2022 financial and internal
control audit agency. For details, please refer to the Announcement on Renewing the
Appointment of Accounting Firms (L2022-055) issued by the Company on the Shanghai Stock
Exchange website www.sse.com.cn on October 20, 2022, and the Announcement on
Resolutions of the Second Provisional General Meeting of Shareholders in 2022 (L2022-059)
issued by the Company on the Shanghai Stock Exchange website www.sse.com.cn on
November 9, 2022.
Statement on replacing the accounting firm during the audit
□Applicable √Not applicable
VII. Situations at risk of delisting
(i) Reasons for the delisting risk warning
□Applicable √Not applicable
(ii) The Company's proposed response measures
□Applicable √Not applicable
(iii) Termination of listing and reasons
□Applicable √Not applicable
VIII. Matters relating to bankruptcy and reorganization
□Applicable √Not applicable
IX. Material litigations and arbitrations
√There are material litigations or arbitrations in current reporting period □No material litigations or arbitrations in current reporting period
(i) Litigations and arbitrations have been disclosed in the temporary announcements and have had no further progresses
□Applicable √Not applicable
(ii) Litigations and arbitrations that have not been disclosed in the temporary announcements or have had further progresses
√Applicable □Not applicable
Unit: RMB10,000
During the reporting period:
Does the
litigation
Value
(arbitration) Results of
Party Basic involved Status of
Litigation cause litigation Enforcement
Plaintiff Defendant Bearing information of in litigation
or estimated (arbitration of judgment
(claimant) (respondent) Joint litigation litigation (arbitration
arbitration liabilities ) and effect (award)
Liabilities (arbitration) (arbitratio )
and the thereof
n)
amount
thereof
Zhenjiang
Hongda Real
Estate Co., Ltd., Second
Dismissed
Zhenjiang instance of
Judgment the appeal
Hongda Yiwu unfair Won but not
The Company Nil Litigation 812.00 No has been and upheld
Small competition enforced
made the original
Commodity dispute [(2022)
verdict
Market SMZ No. 362]
Management
Co., Ltd.
Bafang Construction Construction The claims
Group Co., Ltd., the project Judgment of plaintiffs
Sun Lijun, Tu
Company, the first Nil Litigation subcontract 546.98 No has been Sun Lijun Closed
Lixin
branch of the dispute case made and Tu
International Trade [(2022) Z 0782 Lixin were
City MSQD No. dismissed.
China Cinda Dispute over
Zhejiang Yiwu China Hearing
Asset License of
Small Commodity City 10,939.7 Yes, has been
Management Nil Litigation Credit [(2021)
Trading Co., Ltd., the 6 11,062.03 held.
Co., Ltd. Z 07 MC No.
Company Undecided
Zhejiang Branch 230]
Dispute over
The Company, third Hearing
construction
party Shenzhen has been
Ying Jianhua Nil Litigation contract 836.31 No
Pengrun Construction held.
[(2022) Z 0782
Group Co., Ltd. Undecided
M C No. 8315]
Shizuishan
Shengyuze Asset
Ningxia Dispute over
Management Co., Hearing
Shenghong construction
Ltd., Yiwu China has been
Construction Nil Litigation contract 430.69 No
Commodities City held.
Engineering [(2022) N 0202
Supply Chain Undecided
Co., Ltd. M C No. 4273]
Management Co.,
Ltd., the Company
Zhejiang Yiwu
Chuanglian Market
Investment and
Management Co.,
Dispute over
Ltd., Hebei No
unfair
Jiangcheng Real hearings
The Company Nil Litigation competitions 485.00 No
Estate Development have not
[(2021) Z 0782
Co., Ltd., Handan been held
MC No.6367]
Zheshang Yiwu China
Commodities
Wholesale City Co.,
Ltd.
(iii) Other statements
√Applicable □Not applicable
In March 2018, the Company and Yiwu China Commodities City (the Company’s former holding subsidiary, present participating company, in
which the Company holds 35.8% of shares) was sued by Bank of China Co., Ltd. Yiwu Branch (hereinafter referred to as “Bank of China Yiwu Branch”)
due to dispute over a letter of credit” in the Jinhua Intermediate People’s Court of Zhejiang Province (hereinafter referred to as “Jinhua Intermediate
Court”). For details, see the “Announcement on Litigation Involved in the Company and Its Holding Subsidiaries" (L 2018-008) disclosed by the Company
on March 2, 2018. Later, the claims were dismissed by Jinhua Intermediate Court
On May 18, 2018, Bank of China Yiwu Branch transferred all the rights of the principal and interest, compound interest, liquidated damages,
compensation and other claims under the letter of credit involved to China Cinda Asset Management Co., Ltd. Zhejiang Branch (hereinafter referred to
as "Cinda Assets").
On June 25, 2021, Cinda Assets again filed a civil lawsuit with the Jinhua Intermediate People's Court on the dispute over the letter of credit. For
details, see the “Announcement on the Progress of Litigation Involved in the Company and its Subsidiaries” (Lin 2021-036) disclosed by the Company
on July 21, 2021.
As of the end of the reporting period, the court hearing for the case was held but no judgment was made.
X. Information of the listed company and its directors, supervisors, senior management,
controlling shareholder, and actual controller suspected of violations of laws and
regulations, penalties and rectification
□Applicable √Not applicable
XI. Credit standing of the Company and its controlling shareholder and actual controller
√Applicable □Not applicable
There was no outstanding court judgment or overdue debt of a large amount involving the
Company or its controlling shareholder or actual controller during the reporting period.
XII. Material related-party transactions
(i) Related-party transactions relating to regular corporate operation
further progresses or changes
□Applicable √Not applicable
progresses or changes
√Applicable □Not applicable
The third meeting of the Company's ninth Board of Directors reviewed and approved the
"Proposal on Entrusted Management of Project Construction and Related Transactions", and
agreed that the Company's wholly-owned subsidiaries Yiwu Shangbo and Yiwu Shangbo Digital
Intelligence Enterprise Management Co., Ltd. and the controlling shareholder Mall Holdings
respectively signed the "Contract on Entrusted Management of Engineering Projects" with
Shangbo Yungu a wholly-owned subsidiary of the Company's controlling shareholder CCCH.
For details, please refer to the "Announcement on Entrusted Management of Project
Construction and Related Transactions" (L 2022-073) disclosed by the Company on the website
of the Shanghai Stock Exchange (www.sse.com.cn) on November 23, 2022.
As of the end of the reporting period, the project was under construction.
√Applicable □Not applicable
Unit: RMB
Reasons
for the
large
Percentage difference
Type of in the between
Contents of Price of related- Amount of
related- Pricing amount of Settlement Market the price
Related counterparty Relationship related-party party related-party
party principle similar method PRICE of the
transaction transaction transaction
transaction transactions transaction
(%) and
reference
market
price
Property
Yiwu China
Subsidiary of Acceptance service fee
Commodities City Market Account
controlling of labor and greening 184,739,755.70 184,739,755.70 78.08 184,739,755.70
Property Service Co., price transfer
shareholder service maintenance
Ltd.
fee
Subsidiaries of
Acceptance Exhibition
Yiwu Security controlling Market Account
of labor security 28,188,230.28 28,188,230.28 11.91 28,188,230.28
Service Co., Ltd. shareholder price transfer
service service fee
parent company
Controlling Market Account
CCCH Lease Warehouses 15,015,618.37 15,015,618.37 6.35 15,015,618.37
shareholders price transfer
Yiwu China
Subsidiary of
Commodities City Sales of Sales of Market Account
controlling 2,175,245.60 2,175,245.60 0.92 2,175,245.60
Property Service Co., goods goods price transfer
shareholder
Ltd.
Subsidiaries of
Yiwu Agriculture
controlling Buying Commodity Market Account
Development Co., 2,042,604.35 2,042,604.35 0.86 2,042,604.35
shareholder goods purchase price transfer
Ltd.
parent company
Subsidiary of
Market Account
CCCP controlling Lease Office space 1,126,617.29 1,126,617.29 0.48 1,126,617.29
price transfer
shareholder
Yiwu Shangbo
Subsidiary of
Yungu Enterprise Providing Construction Market Account
controlling 1,100,800.00 1,100,800.00 0.47 1,100,800.00
Management Co., services fee price transfer
shareholder
Ltd.
Yourworld
International Branches of the
Acceptance
Conference Center, controlling Laundering Market Account
of labor 1,054,026.05 1,054,026.05 0.45 1,054,026.05
subordinated to Yiwu shareholder fees price transfer
service
Market Development parent company
Group
Subsidiaries of
Yiwu Market
controlling Market Account
Development Service Lease Parking lot 516,288.99 516,288.99 0.22 516,288.99
shareholder price transfer
Center Co., Ltd.
parent company
Yourworld
International Branches of the Entrusted
Conference Center, controlling Other management Negotiated Account
subordinated to Yiwu shareholder inflow fees and price transfer
Market Development parent company license fees
Group
Yiwu China
Subsidiary of
Commodities City Market Account
controlling Lease Office space 122,445.99 122,445.99 0.04 122,445.99
Property Service Co., price transfer
shareholder
Ltd.
Total / / 236,596,611.89 100 / / /
Return of large-value goods sales
Illustration on related-party transactions Yiwu China Small Commodity City Property Service Co., Ltd. obtained the market
property service and greening maintenance contract by participating in public
bidding.
(ii) Related transactions in the acquisition or sale of assets or equity
further progresses or changes
□Applicable √Not applicable
progresses or changes
□Applicable √Not applicable
□Applicable √Not applicable
results during the reporting period shall be disclosed
□Applicable √Not applicable
(iii) Related-party transactions arising from joint external investment
further progresses or changes
□Applicable √Not applicable
progresses or changes
□Applicable √Not applicable
□Applicable √Not applicable
(iv) Related-party credits and debts
further progresses or changes
□Applicable √Not applicable
progresses or changes
□Applicable √Not applicable
□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) Others
□Applicable √Not applicable
XIII. Material contracts and performance thereof
(i) Trusteeship, contracting and leases
□Applicable √Not applicable
□Applicable √Not applicable
□Applicable √Not applicable
(ii) Guarantees
√Applicable □Not applicable
Unit: RMB10,000
External guarantees provided by the Company (excluding those provided for the subsidiaries)
Relationsh
Date of
ip
guarante Is the Overdue Is it a
between Amount Guarant Guarant Is the
The e (signing Type of Collater guarant amount Counter related- Related
Guarant the of ee ee guarant
guarante date of guarant al (if ee of the guarante party Relationsh
or guarantor guarant Starting Maturity ee
ed the ee any) fulfilled guarant es guarant ip
and the ee date date overdue
agreeme in full ee ee
Listed
nt)
Company
The The Yiwu 9,479.9 Dec 16, Jul 1, Dec 15, Joint Nil No No NA SCO Yes Joint
Compan Company Shanglv 3 2015 2015 2026 and provided venture
y itself several a
liability counter-
guarant guarante
ee e
Hangzh Wholly- House 484.63 Joint Nil No No NA No
ou owned purchase and
Shangb subsidiary r several
o liability
Nanxing guarant
ee
Amount of guarantees made during the reporting period -5,898.85
(excluding the guarantees provided for subsidiaries)
Balance of guarantees at the end of the reporting period (A) 9,964.56
(excluding the guarantees provided for subsidiaries)
The guarantee of the Company and its subsidiaries to the subsidiaries
Amount of guarantees provided for subsidiaries during the -
reporting period
Balance of guarantees provided for subsidiaries at the end of -
the reporting period (B)
Total guarantees provided by the Company (including those provided for the subsidiaries)
Total amount of guarantees (A+B) 9,964.5
Ratio of the total amount of guarantees to the Company’s net 0.65
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 N/A
due to outstanding guarantees
Statement on guarantees 1. According to the resolution of the 15th Meeting of the 7th Board of Directors on
July 1, 2015, the Group applied for a RMB 750 million loan with Agricultural Bank of
China Yiwu Branch for Yiwu Shanglv and provided guarantees in accordance with the
shareholding ratio. The guarantee method was joint liability guarantee, the highest
guarantee amount was RMB 367.5 million and the guarantee term was11 years. As of
December 31, 2022, Yiwu Shanglv actually borrowed RMB 193,468,056.42 (December
guarantee contract, it assumed the guarantee liability of RMB 94,799,347.65 (December
provided a counter-guarantee for this guarantee.
housing sold by the Group has obtained the property certificate, the Group shall provide
the purchaser with a bank mortgage guarantee. As of December 31, 2022, the unsettled
guarantee amount was RMB 4,846,333.64 (December 31, 2021: RMB 5,063,333.60).
Those guarantees would be released after the issuance of the property ownership
certificates and are thus little likely to incur losses. Therefore, the management believed
that it was not necessary to make provision for the guarantees.
(iii) Entrust the management of the cash assets of others
(1) The totality of entrusted financial management
□Applicable √Not applicable
Other information
□Applicable √Not applicable
(2) Individual entrusted financial management
□Applicable √Not applicable
Other information
□Applicable √Not applicable
(3) Entrusted financial management impairment provision
□Applicable √Not applicable
(1) Total entrusted loan
√Applicable □Not applicable
Unit: RMB10,000
Overdue
Source of Unexpired
Type Amount unrecovered
funds balance
amount
Entrusted Self-owned 4,800 4,800 -
Loans funds
Zhejiang Yiwugou E-Commerce Co., Ltd., an indirect controlled subsidiary of the Company,
provided an entrusted loan of RMB 48 million to Yixia Chengdu International Trade City Co., Ltd.
with its own funds for a period of 2 years in order to improve the efficiency of capital use. For
details, please refer to the "Announcement on Providing Entrusted Loans to External Parties" (L
Other information
□Applicable √Not applicable
(2) Single Entrusted Loan
√Applicable □Not applicable
Unit: RMB10,000
Amoun
Entrust
Type Entru Entru Fund Annual Entru t of
ed Actu Statuto
of sted sted sour ized sted provisi
loan al ry
trustee entru loan loan ces rate of loan on for
termin recov proced
sted amou start Sour return progr impair
ation ery ures
loan nt date ce am ment
date
(if any)
Yiwu Bank 4,800 Dec Dec Self- 5.5% Yes NA
Branch entru 20, 19, own
of sted 2022 2024 ed
Agricul loans fund
tural s
Bank
of
China
Co.,
Ltd.
Other information
□Applicable √Not applicable
(3) Entrusted loan impairment provision
□Applicable √Not applicable
□Applicable √Not applicable
(iv) Other material contracts
√Applicable □Not applicable
Contract price
No Name of contract Contracting party
(RMB 10,000)
Yiwu International Digital Logistics
Zhejiang Dadongwu Group 70,651.77
Construction Co., Ltd.
Project Phase I Construction Contract
The 48th meeting of the 8th board of directors of the Company reviewed and approved the
"Proposal on Investing in the Construction of the Yiwu International Digital Logistics Market
Phase I Project". For details, please refer to the Company's website of the Shanghai Stock
Exchange (www.sse.com .cn) disclosed the "Announcement on Investing in the Construction of
Yiwu International Digital Logistics Market Phase I Project" (L 2022-027).
XIV. Explanation on other major events that have a significant impact on investors' value
judgments and investment decisions
□Applicable √Not applicable
Section VII. Changes in Shares and Shareholders
I. Changes in equity
(i) Exhibition of changes in shares
Unit: Ten Thousand Shares
Increase or decrease in the
Before this change After this change
current period (+, -)
Shar
Ne es
w Bo conv
sh nu erte
Prop Propo
are s d Oth Sub-
QTY ortio QTY rtion
s sh from ers total
n (%) (%)
iss are capit
ue s al
d rese
rve
I. Restricted
shares
held by other
domestic
capitals
shares held
by domestic
natural
persons
II.
Unrestricted 0 0 0 0 0 544,321.4176 99.22
shares
denominated 544,321.417 99.1
common 6 2
shares
III. Total
number of 100 0 0 0 -520 -520 548,607.4176 100
shares
√Applicable □Not applicable
On October 21, 2022, because some incentive objects no longer met the incentive
conditions, the Company repurchased and cancelled 5,200,000 shares of restricted shares.
and net assets per share in the most recent year and the most recent period (if any)
□Applicable √Not applicable
securities regulatory authority to be disclosed
□Applicable √Not applicable
(ii) Changes in non-tradable shares
√Applicable □Not applicable
Unit: 10,000 shares
Number
Number Number Number
of
of of of
restricted Reasons
restricted increased restricted
shares at for
Shareholder shares restricted shares at Release date
the restriction
released shares the end
beginning on trade
during during of the
of the
the year the year year
year
The lock-up
objects for months, 36
first-time months and 48
Restricted
grand of the months from
restricted the date when
incentives
stock the registration
incentive plan of the reserved
in 2020 grant is
completed.
The lock-up
period is 24
months, 36
objects for
months and 48
reserved grant Restricted
months from
of restricted 234 0 0 226 stock
the date when
stock incentives
the registration
incentive plan
of the reserved
in 2020
grant is
completed.
Total 4,806 0 0 4,286 / /
Note: During the reporting period, 45 incentive objects no longer met the incentive conditions
due to transfer, resignation and other reasons, and the restricted stocks held by them were
repurchased and canceled by the Company. As of the end of the reporting period, there were
II. Securities issuance and listing
(i) Securities issuance as of the reporting period
√Applicable □Not applicable
Unit: 10,000 shares, Currency: RMB
Issuing Number of
Stocks and Transaction
price (or Issuing approved
derivatives Issue date Listing date termination
interest number listing
of securities date
rate) transactions
Common stock class
A share January RMB 2.94 4,670 January 15, 4,670
A share November RMB 2.39 234 November 234
Bonds (including corporate bonds, corporate bonds, and non-financial corporate debt
financing instruments)
CCC 01 2022 8, 2022 1, 2025
CCC 02 20, 2022 27, 2022 22, 2025
Notes on the issuance of securities as of the reporting period (for bonds with different interest
rates during the duration, please specify separately):
√Applicable □Not applicable
Approved by the document "ZJXK [2022] No. 1792" issued by the China Securities Regulatory
Commission, the Company publicly issued corporate bonds of RMB 800,000,000 on September
the Shanghai Stock Exchange on September 8, 2022. The abbreviation of the bond is 22 YIWU
CCC 01 and the bond code is 137740.
In accordance with the document ZJXK [2022] No. 1792 issued by the China Securities
Regulatory Commission, the Company publicly issued corporate bonds of RMB 700,000,000 on
September 22, 2022. The face value of the current bonds is RMB 100, and the coupon rate is
abbreviation of the bond is 22 YIWU CCC 02 and the bond code is 137815.
(ii) Changes in the total number of shares of the Company, the shareholder structure,
and changes in the Company's assets and liabilities structure
□Applicable √Not applicable
(iii) Existing internal employee shares
□Applicable √Not applicable
III. Shareholders and actual controllers
(i) Total number of shareholders
Number of common shareholders as of the end of the 201,353
reporting period
The total number of common shareholders 174,068
(households) at the end of the previous month before
the disclosure of the annual report
(ii) Shareholdings of the top 10 shareholders and top 10 holders of tradable shares (or
shareholders not subject to trading restrictions)
Unit: share
Shares held by top 10 shareholders
Number of Number Pledge, mark or
Change
shares held at of non- freezing Ownership
Shareholder during the Proportion
the end of the tradable of
(full name) reporting (%) Status of
reporting shares QTY shareholder
period shares
period held
Yiwu China
State-
Commodities
owned
City 0 3,038,179,392 55.38 0 Nil 0
legal
Holdings
person
Limited
Zhejiang
State-
Zhecai
owned
Capital 0 147,466,528 2.69 0 Nil 0
legal
Management
person
Co., Ltd.
Hong Kong
Central
Clearing 61,754,865 1.13 0 Unk 0 Others
Company
Limited
Dacheng
Fund－
Agricultural
Bank of
China－
Dacheng 0 27,672,800 0.50 0 Unk 0 Unk
China
Securities
Financial
Assets
Management
Scheme
GF Fund－
Agricultural
Bank of
China－GF
China 0 27,672,800 0.50 0 Unk 0 Unk
Securities
Financial
Assets
Management
Scheme
Southern
Asset
Management
－
Agricultural
Bank of
China－ 0 27,672,800 0.50 0 Unk 0 Unk
Southern
China
Securities
Financial
Assets
Management
Scheme
Zhong Ou
AMC－
Agricultural
Bank of
China－
Zhong Ou -
China 4,378,100
Securities
Financial
Assets
Management
Scheme
E Fund－
Agricultural
Bank of
China－E
Fund China -
Securities 4,662,700
Financial
Assets
Management
Scheme
Agricultural
Bank of
China Co.,
Ltd. - China
Securities
Open-end
Index
Securities
Investment
Fund
Yinhua Fund
－
Agricultural
Bank of
China－
Yinhua -
China 4,401,818
Securities
Financial
Assets
Management
Scheme
Shares held by top 10 holders of tradable shares
Type and quantity of shares
Shareholder Number of tradable shares held
Type QTY
RMB-
Yiwu China Commodities denominated
City Holdings Limited common
share
RMB-
Zhejiang Zhecai Capital denominated
Management Co., Ltd. common
share
RMB-
Hong Kong Central
denominated
Clearing Company 61,754,865 61,754,865
common
Limited
share
Dacheng Fund－
Agricultural Bank of RMB-
China－Dacheng China denominated
Securities Financial common
Assets Management share
Scheme
GF Fund－Agricultural
RMB-
Bank of China－GF denominated
China Securities 27,672,800 27,672,800
common
Financial Assets share
Management Scheme
Southern Asset
Management－
RMB-
Agricultural Bank of
denominated
China－Southern China 27,672,800 27,672,800
common
Securities Financial share
Assets Management
Scheme
Zhong Ou AMC－
Agricultural Bank of RMB-
China－Zhong Ou China denominated
Securities Financial common
Assets Management share
Scheme
E Fund－Agricultural
RMB-
Bank of China－E Fund denominated
China Securities 23,010,100 23,010,100
common
Financial Assets share
Management Scheme
Agricultural Bank of
China Co., Ltd. - China RMB-
Securities 500 Trading denominated
Open-end Index common
Securities Investment share
Fund
Yinhua Fund－
Agricultural Bank of RMB-
China－Yinhua China denominated
Securities Financial common
Assets Management share
Scheme
Zhejiang Provincial Finance Development Co., Ltd., controlling shareholder
Explanation on the
of Zhejiang Zhecai Capital Management Co., Ltd., holds 9.44% of the
relationship or concerted
shares of Yiwu State-owned Capital Operation Co., Ltd., the controlling
action between the
shareholder of Yiwu China Commodities City Holding Limited, the
above shareholders
controlling shareholder of Yiwu Market Development Group Co., Ltd.
Explanation on the
preferred shareholders
whose voting rights had
Nil
been restituted and the
quantity of shares held
thereby
Number of shares held by the top 10 shareholders subject to trading restrictions and the
trading restrictions
□Applicable √Not applicable
(iii) Strategic investors or general legal persons became the top 10 shareholders due to
the placement of new shares.
□Applicable √Not applicable
IV. Controlling shareholder and actual controller
(i) Controlling shareholder
√Applicable □Not applicable
Name Yiwu China Commodities City Holdings Limited
The person in charge or legal
ZHAO Wenge
representative of the unit
Date of establishment October 29, 2019
Main business State-owned shareholding platform
Shareholdings of other domestic
and overseas listed companies
Nil
that hold or participate in shares
during the reporting period
Other statements Nil
□Applicable √Not applicable
□Applicable √Not applicable
□Applicable √Not applicable
and the controlling shareholder
√Applicable □Not applicable
(ii) The actual controller
√Applicable □Not applicable
Name State-owned Assets Supervision and Administration
Office of the People’s Government of Yiwu
The person in charge or legal
Wang Chenggang
representative of the unit
Date of establishment March 26, 2009
Main business State-owned capital management and state-owned
equity management
Shareholdings of other domestic
Nil
and overseas listed companies
that hold or participate in shares
during the reporting period
Other statements Nil
□Applicable √Not applicable
□Applicable √Not applicable
□Applicable √Not applicable
and the actual controller
√Applicable □Not applicable
methods.
□Applicable √Not applicable
(iii) Other introductions of controlling shareholders and actual controllers
□Applicable √Not applicable
V. The controlling shareholder or the largest shareholder of the Company and its
persons acting in concert have accumulatively pledged shares that account for more
than 80% of the Company's shares held by them
□Applicable √Not applicable
VI. Other corporate shareholders holding more than 10% of the shares
□Applicable √Not applicable
VII. Description of share restriction reduction
□Applicable √Not applicable
VIII. The specifics of implementation of share repurchase during the reporting period
□Applicable √Not applicable
Section VIII. Preferred Shares
□Applicable √Not applicable
Section IX. Bonds
I. Corporate bonds, corporate bonds and non-financial corporate debt financing
instruments
√Applicable □Not applicable
(i) Corporate bonds
□Applicable √Not applicable
(ii) Corporate bonds
√Applicable □Not applicable
Unit: RMB 100 million
Wheth
Metho er
d of there
princip is a
al risk of
Inter Tradi
Maturi Outstan repay termin
Name Abbrevi Cod Issue Value est ng
ty ding ment ating
of bond ation e date date rate venu
date amount and the
(%) e
interes transa
t ction in
payme the
nt stock
market
Zhejian
g China Simple
Commo interest
dities is
City calculat
Group ed, the
Co., Ltd. interest
publicly payme Shang
Septe Septe Septe
issued nt hai
corporat 8 2.88 frequen Stock No
CCC 01 740 1, 1, 1,
e bonds cy is Excha
to annual, nge
professi and the
onal princip
investor al is
s in repaid
(Issue due.
Zhejian Simple
g China interest
Commo is
dities calculat
City ed, the
Shang
Group Septe Septe Septe interest
hai
Co., Ltd. 22 YIWU 137 mber mber mber payme
publicly CCC 02 815 22, 22, 22, nt
Excha
issued 2022 2022 2025 frequen
nge
corporat cy is
e bonds annual,
to and the
professi princip
onal al is
investor repaid
s in once
(Issue
The Company's measures to deal with the risk of bond termination
□Applicable √Not applicable
Bonds overdue
□Applicable √Not applicable
Bond interest payment during the reporting period
√Applicable □Not applicable
Name of bond Description of interest payment
Publicly offered
corporate bond 2019 of
On June 1, 2022, the Company paid all the holders of "19 YIWU
Zhejiang China
CCC 01" the interest from June 05, 2021 to June 05, 2022 on time.
Commodities City Group
Co., Ltd (Phase I)
Publicly offered
corporate bond 2019 of On September 23, 2022, the Company paid interest to all "19
Zhejiang China YIWU CCC 02" holders on time from September 27, 2021 to
Commodities City Group September 24, 2022.
Co., Ltd (Phase II)
□Applicable √Not applicable
Name of the
Intermediary Signing Contact
Office address Contact person
name Certified Public number
Accountants
CITIC Securities
CITIC Building, No. 48
HAN Dan, LU
Securities Liangmaqiao Road, ZHANG Yifan 18758102095
Yibin
Co., Ltd. Chaoyang District,
Beijing
Changes to the above intermediaries
□Applicable √Not applicable
√Applicable □Not applicable
Unit: RMB 100 million
Whether it
is
Operation consistent
Rectification
Total of the with the
of illegal
amount special purpose,
Amount Amount use of
Name of bond of account use plan
used unused raised
funds for raised and other
funds (if
raised funds (if agreements
any)
any) promised in
the
prospectus
Zhejiang China 8 8 - Nil Nil No
Commodities City
Group Co., Ltd.
publicly issued
corporate bonds to
professional
investors in 2022
(Issue 1)
Zhejiang China
Commodities City
Group Co., Ltd.
publicly issued
corporate bonds to
professional
investors in 2022
(Issue 2)
The progress and operational benefits of raised funds used for construction projects
□Applicable √Not applicable
Explanation on changing the use of the above-mentioned bonds raised during the reporting
period
□Applicable √Not applicable
Other statements
□Applicable √Not applicable
□Applicable √Not applicable
Other statements
√Applicable □Not applicable
Shanghai Brilliance Credit Rating & Investors Service Co., Ltd. issued the Credit Rating
Surveillance Report on Zhejiang China Commodities City Group Co., Ltd. and Bonds Publicly
Issued by It [Brilliance Surveillance (2022) 00023] on May 20, 2022. The Company had an issuer
rating of AAA with stable outlook, and the bonds had a rating of AAA.
Shanghai New Century Credit Rating Investment Service Co., Ltd. issued the "Zhejiang
China Commodities City Group Co., Ltd. Credit Rating Report" [New Century Enterprise Review
(2022) 020228] on June 28, 2022. The Company's main credit rating is AAA. The rating outlook
is stable.
repayment protection measures during the reporting period and their impacts
□Applicable √Not applicable
□Applicable √Not applicable
(iii) Non-financial corporate debt financing instruments in the inter-bank bond market
√Applicable □Not applicable
Unit: RMB 100 million
Whether
there is a
Method of
risk of
principal Investor
Interest terminating
Name of Issue Value Maturity Outstanding repayment Trading appropriate Trade
Abbreviation Code rate the
bond date date date amount and venue arrangements mechanism
(%) transaction
interest (if any)
in the
payment
stock
market
Zhejiang Feb-
Annual
China 22-
interest
Commodities 22 Zhejiang 2022
Feb 24, Feb 24, payment, Interbank
City Group Yiwu CCC 102280347 to 10 3.29 Nil No
Co., Ltd.’s MTN001 Feb-
repayment
at maturity
(Issue 1) 2022
Zhejiang Mar-
Annual
China 25-
interest
Commodities 22 Zhejiang 2022
Mar 29, Mar 29, payment, Interbank
City Group Yiwu CCC 102280660 to 5 3.57 Nil No
Co., Ltd.’s MTN002 Mar-
repayment
at maturity
(Issue 2) 2022
Zhejiang
Jul Annual
China
Commodities 22 Zhejiang
City Group Yiwu CCC 102281584 5 3.00 Nil No
to Jul 2022 2025 principal market
Co., Ltd.'s MTN003
(Issue 3)
Zhejiang Sep One-time
China 22 Zhejiang 19, repayment
Sep 21, May 19, Interbank
Commodities Yiwu CCC 012283271 2022 10 2.09 of Nil No
City Group SCP005 to principal
Co., Ltd.’s Sep and
Short-term 2022 maturity.
Financing
Bonds (Issue
Zhejiang
China
Oct One-time
Commodities
City Group
Co., Ltd.’s Oct 26, Jun 23, Interbank
Yiwu CCC 012283708 to 10 2.30 principal Nil No
SCP006 Oct and
Short-term
Financing
Bonds (Issue
Zhejiang
China
Nov One-time
Commodities
City Group
Co., Ltd.’s November Mar 22, Interbank
Yiwu CCC 012284013 to 10 3.00 principal Nil No
SCP007 Nov and
Short-term
Financing
Bonds (Issue
The Company's measures to deal with the risk of bond termination
□Applicable √Not applicable
Bonds overdue
□Applicable √Not applicable
Bond interest payment during the reporting period
√Applicable □Not applicable
Name of bond Description of interest payment
Zhejiang China Commodities City On July 14, 2022, the Company paid the interest to the holders of "19 Zhejiang Yiwu CCC MTN001" for
Group Co., Ltd.’s 2019 MTN (Issue 1) the period from July 15, 2021 to July 15, 2022 on time.
Zhejiang China Commodities City On October 20, 2022, the Company paid the interest to the holders of "19 Zhejiang Yiwu CCC MTN002"
Group Co., Ltd.’s 2019 MTN (Issue 2) for the period from October 21, 2021 to October 21, 2022 on time.
Zhejiang China Commodities City
On July 21, 2022, the Company paid interest to the holders of "21 Zhejiang Yiwu CCC SCP008" on time
Group Co., Ltd.’s 2021 Super Short-
for the period from October 27, 2021 to July 22, 2022.
term Financing Bonds (Issue 8)
Zhejiang China Commodities City
On August 11, 2022, the Company paid interest to the holders of "21 Zhejiang Yiwu CCC SCP009" on time
Group Co., Ltd.’s 2021 Super Short-
for the period from November 15, 2021 to August 12, 2022.
term Financing Bonds (Issue 9)
Zhejiang China Commodities City
On August 25, 2022, the Company paid interest to the holders of "21 Zhejiang Yiwu CCC SCP010" on time
Group Co., Ltd.’s 2021 Super Short-
for the period from November 30, 2021 to August 26, 2022.
term Financing Bonds (Issue 10)
Zhejiang China Commodities City
On July 28, 2022, the Company paid interest to the holders of "22 Zhejiang Yiwu CCC SCP001" on time
Group Co., Ltd.’s 2022 Super Short-
for the period from June 29, 2022 to July 29, 2022.
term Financing Bonds (Issue 1)
Zhejiang China Commodities City
On September 23, 2022, the Company paid interest to the holders of "22 Zhejiang Yiwu CCC SCP002" on
Group Co., Ltd.’s 2022 Super Short-
time for the period from July 27, 2022 to September 26, 2022.
term Financing Bonds (Issue 2)
Zhejiang China Commodities City
On October 27, 2022, the Company paid interest to the holders of "22 Zhejiang Yiwu CCC SCP003" on
Group Co., Ltd.’s 2022 Super Short-
time for the period from August 10, 2022 to October 28, 2022.
term Financing Bonds (Issue 3)
Zhejiang China Commodities City
On November 22, 2022, the Company paid interest to the holders of "22 Zhejiang Yiwu CCC SCP004" on
Group Co., Ltd.’s 2022 Super Short-
time for the period from August 24, 2022 to November 23, 2022.
term Financing Bonds (Issue 4)
□Applicable √Not applicable
Name of the
Signing
Contact Contact
Intermediary name Office address Certified
person number
Public
Accountants
Industrial and No. 55 Fuxingmennei Wu Weijun, Wang 010-
Commercial Bank of Street, Xicheng District, Zeng Hao Siyuan 81013642
China Limited Beijing
China Construction No. 25 Jinrong Street, Jiang ZHANG 010-
Bank Corporation Xicheng District, Beijing Changzheng, Rui 67596044
Tian Zhiyong,
Feng Suoteng
Shanghai Pudong 8th Floor, Shanghai SHI Haiyun, Zhao 021-
Development Bank Pudong Development DOU Guangzhi 31886343
Co., Ltd. Bank Building, No. 29 Youming
Bailian Jingluo, Pudong
New Area, Shanghai
Bank of Beijing Co., No. C14, Financial Xu Xuming, Chen Xi 010-
Ltd. Street, Xicheng District, Shi Yuxuan 66225593
Beijing
Agricultural Bank of No. 69 Jianguomen Inner Shi Jian, An Liwei 010-
China Limited Street, Dongcheng HUANG 85109045
District, Beijing Aizhou
Bank of Hangzhou No. 46 Qingchun Road, Zhou ZHANG, Dai 0571-
Co., Ltd. Hangzhou City, Zhejiang Tong Ruinan 85119872
Province Yongjing
Industrial Bank Co., Industrial Bank Building, Chen Sijie, Jiang 0571-
Ltd. No. 398 Jiangbin Middle Wu Zhongjin 87037999
Avenue, Taijiang District, Zhongming
Fuzhou City, Fujian
Province
Bank of Ningbo Co., No. 345, Ningdong Road, Hu Liang, Gu Xu Hong 0574-
Ltd. Yinzhou District, Ningbo Ying 83050395
City, Zhejiang Province
China Securities Co., No. 188 Chaonei Street, Han Dan, Yan Zhou 010-
Ltd. Dongcheng District, Jing Xinnan 85156322
Beijing
Changes to the above intermediaries
□Applicable √Not applicable
√Applicable □Not applicable
Unit: RMB 100 million
Total Operation Rectification Whether it
amount Amount Amount of the of illegal is
Name of bond
of used unused special use of consistent
funds account raised funds with the
raised for raised (if any) purpose,
funds (if use plan
any) and other
agreements
promised in
the
prospectus
Zhejiang China Commodities
City Group Co., Ltd.’s 2022 10 10 - Nil Nil No
MTN (Issue 1)
Zhejiang China Commodities
City Group Co., Ltd.’s 2022 5 5 - Nil Nil No
MTN (Issue 2)
Zhejiang China Commodities
City Group Co., Ltd.'s 2022 5 5 - Nil Nil No
MTN (Issue 3)
Zhejiang China Commodities
City Group Co., Ltd.’s 2022
Super Short-term Financing
Bonds (Issue 5)
Zhejiang China Commodities
City Group Co., Ltd.’s 2022
Super Short-term Financing
Bonds (Issue 6)
Zhejiang China Commodities
City Group Co., Ltd.’s 2022
Super Short-term Financing
Bonds (Issue 7)
The progress and operational benefits of raised funds used for construction projects
□Applicable √Not applicable
Explanation on changing the use of the above-mentioned bonds raised during the reporting
period
□Applicable √Not applicable
Other statements
□Applicable √Not applicable
□Applicable √Not applicable
Other statements
√Applicable □Not applicable
Shanghai Brilliance Credit Rating & Investors Service Co., Ltd. issued the Credit Rating
Surveillance Report on Zhejiang China Commodities City Group Co., Ltd. and Bonds Publicly
Issued by It [Brilliance Surveillance (2022) 00023] on May 20, 2022. The Company had an issuer
rating of AAA with stable outlook, and the bonds had a rating of AAA.
Shanghai New Century Credit Rating Investment Service Co., Ltd. issued the "Zhejiang
China Commodities City Group Co., Ltd. Credit Rating Report" [New Century Enterprise Review
(2022) 020228] on June 22, 2022. The Company's main credit rating is AAA. The rating outlook
is stable.
repayment protection measures during the reporting period and their impacts
□Applicable √Not applicable
instruments
□Applicable √Not applicable
(iv) During the reporting period, the Company's loss in the scope of consolidated
statements exceeded 10% of its net assets as of the the end of the previous year.
□Applicable √Not applicable
(v) Interest-bearing debts other than bonds overdue at the end of the reporting period
□Applicable √Not applicable
(vi) Influence of violations of laws and regulations, the Company's Articles of Association,
information disclosure affairs management system and the stipulations or commitments
in the bond prospectus during the reporting period on the rights and interests of bond
investors
□Applicable √Not applicable
(vii) The Company's accounting data and financial indicators for the past 2 years as
of the end of the reporting period
√Applicable □Not applicable
Unit: RMB10,000
Increase/decrease
in the current
period as
Major indicator 2022 2021 compared to the Reasons for change
prior
corresponding
period (%)
Net profits attributable Mainly due to the decrease of
to shareholders of the RMB 229 million YoY in the net
Listed Company with profit attributable to shareholders
non-recurring items 176,508.76 122,180.80 44.47 of the listed company million, and
excluded the increase of RMB 773 million
YoY in non-recurring profits and
losses.
Current ratio 42.33% 58.91% Down 16.58 ppt
Quick ratio 31.61% 50.12% Down 18.51 ppt
Debt-to-asset ratio
(%)
EBITDA to total
debt ratio
Interest coverage
ratio
Cash interest
protection multiple
EBITDA-to-interest
coverage ratio
Loan repayment
rate (%)
Interest payment
rate (%)
II. Convertible corporate bonds
□Applicable √Not applicable
Section X. Financial Report
I. Auditor’s report
√Applicable □Not applicable
All the shareholders of Zhejiang China Commodities City Group Co., Ltd.
We have audited the financial statements of Zhejiang China Commodities City Group
Co., Ltd., including Consolidated & Corporate Balance Sheets as of December 31, 2022,
Consolidated & Corporate Income Statements, Consolidated & Corporate Cash Flow
Statements, Consolidated & Corporate Statements of Changes in Owner’s Equity for 2022
and Notes to the Financial Statements.
We believe that the attached financial statements were prepared according to
Accounting Standards for Zhejiang China Commodities City Group Co., Ltd. in all material
aspects as a fair reflection of the consolidated and parent company’s financial status of
Zhejiang China Commodities City Group Co., Ltd. on the December 31, 2022 and the
operation outcomes and cash flows of the Company for 2022.
We conducted our audit in accordance with the Auditing Standards for Chinese Certified
Public Accountants. The section “CPAs’ Responsibility for Audit of Financial Statements” in the
audit report further describes on our responsibilities under these standards. In accordance with
the CPA Code of Ethics in China, we are independent of Zhejiang China Commodities City Group
Co., Ltd. and have performed other responsibilities in respect of professional ethics.
We believe that the audit evidence we have acquired is sufficient and effective, providing a rea
sonable basis for our opinion.
Key audit matters are matters that we believe are the most important matters for the
audit of the financial statements for 2018 based on professional judgment. The response to
such matters is based on the background of auditing the financial statements as a whole
and forming an audit opinion. We do not express independent opinions on such matters.
This was also the background for our description for how every matter below was responded
in the audit.
We have fulfilled the responsibilities described in the "Certified Accountants'
Responsibilities for the Audit of Financial Statements" section of this report, including those
related to these key audit matters. Correspondingly, our audit work included the
implementation of audit procedures designed to deal with the assessed risk of material
misstatement in the financial statements. The results of our audit procedures, including the
procedures performed in response to the following key audit matters, provide a basis for the
expression of the audit opinion in the financial statements as a whole.
Key audit matters: Audit response to the matter:
Impairment of non-goodwill long-term assets with certain useful life
As of December 31, 2022, the book value of During the audit process, our procedures
the non-goodwill assets with certain useful for assessing the impairment of non-
life in the Group’s market and supporting goodwill long-term assets with a useful life
hotels, exhibition halls and commercial include:
buildings, such as the corresponding 1. Based on our understanding of the
property, plant and equipment, investment business of the Company and its
real estate, land use rights, construction in subsidiaries and the provisions of the
progress, right-of-use assets and long-term Accounting Standards for Business
deferred expenses(hereinafter collectively Enterprises, evaluate the management's
referred to as "long-term assets") totaled identification of each asset group and its
RMB 17,919.07 million, accounting for 56% judgment on the signs of impairment of
of the total book value of the consolidated each asset group;
assets of the Group. When identifying 2. With the assistance of internal valuation
whether the above-mentioned long-term experts, we assessed the reasonableness
assets have any indications of impairment, of the major assumptions and evaluation
and when carrying out impairment tests on methods used by the Group management,
the long-term assets with indications of like discount rates;
impairment, the recoverable amount of the 3. We assessed the reasonableness of key
asset or asset group needs to be reviewed, assumptions such as estimated sales
the Group needs to review the recoverable income, gross profit, operating costs, and
amount of the asset or asset group. This disposal value predictions at the end of the
requires the management to use major useful life of related assets in the future
judgments and estimates to determine the years, and checked basic data on the
estimated future sales income, gross profit, present value of expected future cash flows
operating costs, the disposal value forecast with relevant supporting evidence.
and discount rate at the end of the useful life 4. We compared and analyzed the actual
of the relevant assets and other key performance of the current year with the
assumptions when predicting the present predicted performance of the previous
value of future cash flows.The evaluation year;
process is complicated, so we identify them 5. We checked the adequacy and
as key audit matters. completeness of the relevant disclosures of
Relevant information has been disclosed in the Group in the notes to the financial
Note V. 43 and Notes VII. 20, 21, 22, 25, 26 statements.
and 29 to the financial statements.
Recognition of revenue from sales of goods
The operating income of the Group mainly For the recognition of revenue from sales of
comes from the sales of commodities, the goods, our audit procedures mainly
use of shops and supporting services for include:
operation, hotel accommodation and 1. We have understood and evaluated the
catering services, leasing business, etc., design effectiveness of key controls in the
among which the revenue from commodity management process related to sales of
sales accounts for a relatively high goods business revenue, and tested its
proportion. operational effectiveness;
In 2022, the operating income of the Group 2. We select a sample to check the sales
was RMB 7,619.69 million, of which the contract, identify the terms and conditions
revenue from sales of goods was RMB of the contract related to the transfer of
operating income. The Group recognizes whether the timing of the revenue
incomes when it has fulfilled its performance recognition of your group complies with the
obligations in the contract, that is, the requirements of the Accounting Standards
customer has acquired the control over the for Business Enterprises;
relevant goods or services. 3. We obtained and carried out detailed
Since revenue is one of the key performance testing by means of sampling, and
indicators of the Group, there may be an reviewed supporting documents related to
inherent risk that the management of the revenue recognition, including orders,
Group may achieve specific goals or receipt records, logistics documents, bank
expectations through inappropriate revenue receipts, invoices, and import and export
recognition. We identified the revenue data of the electronic port data system, etc.;
recognition of the Group's merchandise 4. According to the characteristics and
sales business as a key audit matter. nature of customer transactions, we select
For related information, please refer to Note samples to confirm the amount of sales
V.38 and Note VII.61 to the Financial revenue and the balance of receivables to
Statements. customers;
cost, and gross profit, and compared them
with the gross profit margin of companies in
the same industry to evaluate the rationality
of changes in revenue-related indicators;
visits to important customers in the sales of
goods;
sales revenue confirmed before and after
the balance sheet date to supporting
documents such as customer receipts to
assess whether the sales revenue is
recognized in the appropriate period; and
completeness of the relevant disclosures of
the Group in the notes to the financial
statements.
Zhejiang China Commodities City Group Co., Ltd.’s management is responsible for other
information. Such information includes the information covered by the annual report, but the
financial statements and the audit report provided by us are excluded.
Our audit opinion released in the financial statements do not cover other information and
we do not release any form of assurance conclusion on other information.
Our responsibility is to read other information in conjunction with our audit of the financial
statements. During the process, we consider whether there is a material inconsistency or
other material misstatement in the financial statements with the knowledge acquired by us
during the audit process.
Based on the work we have performed, if we determine that there is a material
misstatement of other information, we should report the fact. We have nothing to report in
this aspect.
The management is responsible for preparing financial statements in accordance with
the provisions of the Accounting Standards for Business Enterprises to achieve fair
reflection, and designing, implementing and maintaining necessary internal controls
to prevent these financial statements from material misstatement arising from fraud or erro
r.
During preparing the financial statements, the management is responsible for assessing
the sustainability management capabilities of Zhejiang China Commodities City Group Co.,
Ltd., disclosing, as applicable, going-concern-related matters and applying the going-
concern assumption unless the management plans to liquidate Zhejiang China Commodities
City Group Co., Ltd. and discontinue operations or has no other realistic choices.
The governance is responsible for supervising the financial reporting process of
Zhejiang China Commodities City Group Co., Ltd.
Our goal is to obtain
reasonable assurance about whether the financial statements are free from material misst
atement caused by fraud or error and
express an opinion on these financial statements based on our audits. The reasonable
assurance is a guarantee at a high level, but there is no guarantee that an audit performed
in accordance with the auditing standards will always identify existing material misstatement.
Misstatements may be caused by fraud or error. Misstatement is generally considered to be
material if it is reasonably expected that the misstatement, alone or aggregated, may affect
the financial decision made by the users of the financial statements based on the financial
statements.
We applied professional judgment and professional skepticism during conducting audit
work in accordance with the Auditing Standards for CPA while performing following works:
（1） (1) Identifying and evaluating the risk of material misstatements of financial
statements for fraud or error designing and implementing audit procedures to
deal with these risks and obtaining adequate and appropriate audit evidence as
a basis for release of our audit opinion. As fraud may involve collusion, forgery,
willful omission, misrepresentation or override of internal control, the risk of not
discovering a material misstatement due to fraud is higher than the risk of not
discovering a material misstatement resulting from an error.
（2） Understanding the internal control related to the audit in order to design the
appropriate audit procedures.
（3） Evaluating the appropriateness of the accounting policies selected by
management level and the reasonableness of accounting estimates and related
disclosures.
（4） Concluding the appropriateness of management level’s use of the going concern
assumption while drawing a conclusion as to whether there is any material
uncertainty about the issues or circumstances that may cause major doubts
about the ability of the Zhejiang China Commodities City Group Co., Ltd. to
continue as a going concern on basis of the audit evidence acquired. If we
conclude that there is a significant uncertainty, the auditing standards require us
to remind user of the statements of the relevant disclosures in the financial
statements in the audit report. If the disclosures are inadequate, we should
release an unqualified opinion. Our conclusion is based on the information
available by the date of the audit report. However, future events or circumstances
may result in Zhejiang China Commodities City Group Co., Ltd. being unable to
continue as a going concern.
（5） Evaluating the overall presentation, structure and content (including disclosure)
of the financial statements as well as whether the financial statements are a fair
reflection of the related transactions and matters.
(6) Obtaining adequate and appropriate audit evidence on the financial information
of the entities or business activities in Zhejiang China Commodities City Group
Co., Ltd. to express an opinion on the financial statements. We are responsible
for directing, supervising and implementing the Group’s audit and assume full
responsibility for the audit opinion.
We have communicated with the governance on the matters such as the scope and
timing of audit and major audit findings, including the notable defects of internal control
identified in our audit.
We also provided a statement to the governance that we had complied with the
professional ethics requirements related to independence, and communicated with the
governance all relationships and other matters that may be reasonably believed to affect our
independence, and related preventive measures (if applicable) .
In the matters communicated with the governance, we determined which matters should
be the most important to the audit of the financial statements of the current period, and
should constitute the key audit matters accordingly. We described such matters in the audit
report, unless laws and regulations had prohibited public disclosure of these matters, or in
rare cases, we determined that such matters should not be communicated in the audit report
if the negative consequences of communicating a matter in the audit report are reasonably
expected to outweigh the public interests.
Ernst & Young Hua Ming Certified Public Accounta Chinese CPA: YIN Guowei
nts (special general partnership) (Project Partner)
Chinese CPA: Huang Zhigang
Beijing, China April 10, 2023
II. Financial statements
Consolidated Balance Sheet
December 31, 2022
Prepared by: Zhejiang China Commodities City Group Co., Ltd.
Unit: RMB
Item Note December 31, 2022 December 31, 2021
Current assets:
Cash and cash equivalents 1,991,298,971.30 4,831,468,386.25
Held-for-trading financial assets 62,331,000.66 75,375,083.20
Accounts receivable 210,750,725.36 185,237,530.89
Prepayments 606,057,048.25 875,167,709.48
Other receivables 419,398,092.62 1,355,924,282.96
In which: interest receivable - 92,249,275.44
Inventory 1,330,351,243.87 1,327,402,567.99
Other current assets 634,209,950.69 248,662,219.40
Total current assets 5,254,397,032.75 8,899,237,780.17
Non-current assets:
Debt investments 48,079,561.64 -
Long-term receivables 278,299,600.73 222,307,363.40
Long-term equity investment 6,033,472,919.92 5,772,455,242.84
Other equity instruments investment 499,200,803.85 642,187,968.77
Other non-current financial assets 1,500,307,562.13 1,524,819,255.41
Property investment 2,851,643,180.42 2,973,936,400.46
Fixed assets 5,220,882,784.47 5,078,590,929.75
Construction in progress 2,860,064,818.36 1,090,577,963.27
Right-of-use assets 217,702,910.81 225,347,077.14
Intangible assets 6,461,849,690.36 4,043,564,662.35
Development expenses 4,660,995.87 6,359,814.02
Goodwill 284,916,367.87 -
Long-term prepaid expenses 306,925,970.89 188,184,376.43
Deferred income tax assets 150,346,801.31 135,737,028.89
Other non-current assets 138,253,316.00 211,329,650.45
Total non-current assets 26,856,607,284.63 22,115,397,733.18
Total assets 32,111,004,317.38 31,014,635,513.35
Current liabilities:
Short-term borrowings 1,059,287,361.11 942,736,046.04
Accounts payable 1,191,314,404.15 493,360,429.02
Advances from customers 885,993,269.48 153,566,311.13
Contract liabilities 3,991,038,021.56 4,058,419,224.84
Payroll payable 183,135,314.51 243,964,755.38
Tax payable 214,998,424.41 559,496,547.34
Other payables 1,325,596,105.43 1,908,742,835.15
Non-current liabilities due within one year 86,852,293.01 3,664,241,923.08
Other current liabilities 3,473,907,027.00 3,081,384,800.50
Total current liabilities 12,412,122,220.66 15,105,912,872.48
Non-current liabilities:
Long-term borrowings 404,500,000.00 771,250,000.00
Bonds payable 3,497,416,819.75 -
Lease liabilities 206,623,735.97 205,942,673.93
Estimated liabilities 110,620,306.10 110,620,306.10
Deferred income 103,582,129.94 78,170,103.62
Deferred income tax liabilities 95,042,722.31 111,897,463.42
Total non-current liabilities 4,417,785,714.07 1,277,880,547.07
Total liabilities 16,829,907,934.73 16,383,793,419.55
Owners’ equity (or shareholders’ equity)
Paid-in capital (share capital) 5,486,074,176.00 5,491,274,176.00
Capital reserve 1,651,146,033.96 1,631,509,114.96
Less: treasury stocks 119,483,675.00 137,494,800.00
Other comprehensive income -24,008,473.60 60,850,735.02
Surplus reserve 1,616,083,136.73 1,505,209,795.50
General risk reserve 1,038,991.13 -
Undistributed profits 6,651,440,591.35 6,059,496,846.85
Total equity attributable to owners (shareholders) of 15,262,290,780.57 14,610,845,868.33
the parent company
Minority interest 18,805,602.08 19,996,225.47
Total owners’ equity (or shareholders’ equity) 15,281,096,382.65 14,630,842,093.80
Total liabilities and owners’ equity (or 32,111,004,317.38 31,014,635,513.35
shareholders’ equity)
Legal Representative: Zhao Wenge, Person in Charge of Finance: Wang Dong, Head of Finance
Department: Zhao Difang
Balance Sheet of Parent Company
December 31, 2022
Prepared by: Zhejiang China Commodities City Group Co., Ltd.
Unit: RMB
Item Note December 31, 2022 December 31, 2021
Current assets:
Cash and cash equivalents 1,439,042,451.56 4,327,117,133.34
Held-for-trading financial assets - 1,484.70
Accounts receivable 22,032,390.71 23,629,682.69
Prepayments 11,055,123.31 11,213,809.02
Other receivables 329,607,469.39 1,207,086,885.99
In which: interest receivable - 92,249,275.44
Inventory 4,599,032.34 7,308,939.20
Other current assets 3,650,862,939.52 3,282,706,248.36
Total current assets 5,457,199,406.83 8,859,064,183.30
Non-current assets:
Long-term receivables 36,763,731.53 41,668,837.64
Long-term equity investment 9,210,422,313.34 8,246,000,020.80
Other equity instruments investment 499,200,803.85 642,187,968.77
Other non-current financial assets 142,053,056.97 179,632,207.32
Property investment 2,803,007,146.68 2,533,374,736.14
Fixed assets 4,122,738,826.73 4,333,691,395.01
Construction in progress 2,318,993,733.00 936,297,029.41
Right-of-use assets 109,853,155.63 118,591,035.63
Intangible assets 5,872,460,683.86 3,878,208,204.47
Long-term prepaid expenses 275,795,256.99 165,720,500.56
Deferred income tax assets 137,378,229.19 122,565,730.38
Other non-current assets - 65,607,343.55
Total non-current assets 25,528,666,937.77 21,263,545,009.68
Total assets 30,985,866,344.60 30,122,609,192.98
Current liabilities:
Short-term borrowings 1,059,287,361.11 942,736,046.04
Accounts payable 822,773,769.51 349,268,967.90
Advances from customers 861,860,467.12 104,805,243.57
Contract liabilities 3,032,044,768.16 3,029,673,931.75
Payroll payable 139,946,321.85 203,724,767.47
Tax payable 188,723,169.42 527,641,861.33
Other payables 1,075,413,151.71 1,596,947,195.91
Non-current liabilities due within one year 64,688,676.55 3,656,595,072.25
Other current liabilities 3,726,398,088.04 3,452,451,678.36
Total current liabilities 10,971,135,773.47 13,863,844,764.58
Non-current liabilities:
Long-term borrowings 404,500,000.00 771,250,000.00
Bonds payable 3,497,416,819.75 -
Lease liabilities 110,999,791.68 113,367,062.05
Estimated liabilities 110,620,306.10 110,620,306.10
Deferred income 103,582,129.94 78,170,103.62
Deferred income tax liabilities 13,046,676.14 43,870,176.87
Total non-current liabilities 4,240,165,723.61 1,117,277,648.64
Total liabilities 15,211,301,497.08 14,981,122,413.22
Owners’ equity (or shareholders’ equity)
Paid-in capital (share capital) 5,486,074,176.00 5,491,274,176.00
Capital reserve 1,885,778,197.50 1,866,141,278.50
Less: treasury stocks 119,483,675.00 137,494,800.00
Other comprehensive income -40,818,470.36 66,421,903.33
Surplus reserve 1,616,029,660.90 1,505,156,319.67
Undistributed profits 6,946,984,958.48 6,349,987,902.26
Total owners’ equity (or shareholders’ equity) 15,774,564,847.52 15,141,486,779.76
Total liabilities and owners’ equity (or 30,985,866,344.60 30,122,609,192.98
shareholders’ equity)
Legal Representative: Zhao Wenge, Person in Charge of Finance: Wang Dong, Head of Finance
Department: Zhao Difang
Consolidated Income Statement
January-December 2022
Unit: RMB
Item Note 2022 2021
I. Gross revenue 7,619,693,742.60 6,033,842,972.95
In which: operating revenue 7,619,693,742.60 6,033,842,972.95
II. Gross cost 7,545,489,637.45 5,037,812,165.29
In which: Operating cost 6,452,909,829.96 4,027,543,138.56
Taxes and surcharges 198,907,504.01 161,759,208.82
Sales expenses 197,679,981.09 204,745,974.57
Administrative expenses 529,466,270.71 453,543,427.80
R&D expenses 17,377,161.88 10,308,801.84
Financial expenses 149,148,889.80 179,911,613.70
In which: interest expenses 280,924,664.39 341,313,765.39
Interest income 132,216,250.44 177,964,682.68
Plus: other income 38,802,684.45 23,556,948.01
Investment income (loss is indicated by
“-”)
In which: income from investment in
associates and joint ventures
Changes in fair value (loss is indicated
-5,262,476.59 7,231,321.84
by “-”)
Credit impairment loss (loss is
-1,815,004.95 -7,299,694.67
indicated by “-”)
Income from disposal of assets (loss is
-941,780.66 76,006.41
indicated by “-”)
III. Operating profit (loss is indicated by “-”) 1,146,512,391.65 1,653,823,380.27
Plus: income from non-operating activities 7,499,270.88 5,766,372.46
Less: expenses from non-operating
activities
IV. Profits before tax (loss is indicated by “-”) 1,149,806,832.60 1,656,693,823.97
Less: income tax 46,205,700.39 327,525,237.95
V. Net profits (net loss is indicated by “-”) 1,103,601,132.21 1,329,168,586.02
(I) Categorized by continuity of operation
Net profits from continuing operation (net
loss is indicated by “-”)
(II) Categorized by ownership
of the parent company (net loss is indicated 1,104,719,091.71 1,334,095,906.95
by “-”)
-1,117,959.50 -4,927,320.93
“-”)
VI. Other comprehensive income, net of tax -84,931,872.51 -17,256,380.07
(I) Other comprehensive income attributable
-84,859,208.62 -17,298,926.31
to owners of the parent company, net of tax
-107,240,373.69 -15,051,280.51
cannot be reclassified as profits or loss
(3) Changes in fair value of investments in
-107,240,373.69 -15,051,280.51
other equity instruments
be reclassified as profits or loss
(1) Other comprehensive income that can
be transferred into profit and loss under equity 4,060,531.46 -
method
(6) Difference arising from the translation of
foreign currency financial statements
(II) After -tax net of other comprehensive
-72,663.89 42,546.24
income attributable to minority shareholders
VII. Total comprehensive income 1,018,669,259.70 1,311,912,205.95
(I) Total comprehensive income attributable
to owners of the parent company
(II) Total comprehensive income attributable
-1,190,623.39 -4,884,774.69
to minority shareholders
VIII. Earnings per share:
(I) Basic earnings per share 0.20 0.25
(II) Diluted earnings per share 0.20 0.25
For merger of the enterprises under common control during the current period, net profits of
the merged party prior to the merger were RMB 0, and net profits of the merged party during
the previous period were RMB 0.
Legal Representative: Zhao Wenge, Person in Charge of Finance: Wang Dong, Head of
Finance Department: Zhao Difang
Income Statement of Parent Company
January-December 2022
Unit: RMB
Item Note 2022 2021
I. Operating revenue 1,941,582,561.02 2,922,125,402.93
Less: Operating cost 937,173,155.53 1,062,881,897.31
Taxes and surcharges 165,751,730.61 132,198,523.20
Sales expenses 198,120,081.31 158,004,638.76
Administrative expenses 269,059,168.76 239,151,835.56
Financial expenses 168,088,031.70 175,493,659.20
In which: interest expenses 281,287,879.72 341,313,765.39
Interest income 122,678,523.33 177,964,682.68
Plus: other income 13,079,397.88 13,716,900.72
Investment income (loss is indicated
by “-”)
In which: income from investment in
associates and joint ventures
Changes in fair value (loss is
-31,735,150.35 -83,904,126.09
indicated by “-”)
Credit impairment loss (loss is
-288,497.31 -989,960.58
indicated by “-”)
Income from disposal of assets
(loss is indicated by “-”)
II. Operating profits (loss is indicated by “-”) 1,133,700,515.72 1,681,506,048.71
Plus: income from non-operating
activities
Less: expenses from non-operating
activities
III. Profits before tax (loss is indicated by
“-”)
Less: income tax 27,805,559.97 274,307,361.05
IV. Net profits (net loss is indicated by “-”) 1,108,733,412.30 1,409,519,869.17
(I) Categorized by continuity of
operation(net loss is indicated by “-”)
V. Other comprehensive income, net of tax -107,240,373.69 -15,051,280.51
(I) Other comprehensive income that
-107,240,373.69 -15,051,280.51
cannot be reclassified as profit or loss
-107,240,373.69 -15,051,280.51
investments in other equity instruments
VI. Total comprehensive income 1,001,493,038.61 1,394,468,588.66
Legal Representative: Zhao Wenge, Person in Charge of Finance: Wang Dong, Head of Finance
Department: Zhao Difang
Consolidated Cash Flow Statement
January-December 2022
Unit: RMB
Item Note 2022 2021
I. Cash flow from operating activities:
Cash received from sale of goods
and rendering of services
Cash received for taxes and
surcharges refunded
Other cash receipts relating to
operating activities
Sub-total of cash inflow from
operating activities
Cash paid for goods and services 6,134,704,401.79 4,655,490,266.98
Cash paid to and on behalf of
employees
Payments of taxes 804,862,955.73 786,973,453.98
Other cash payments relating to
operating activities
Sub-total of cash outflow from
operating activities
Net cash flow from operating
activities
II. Cash flow from investing activities:
Cash received from recovery of
investment
Cash received from investment
income
Net cash received from disposal of
property, plant and equipment,
intangible assets and other long-term
assets
Other cash receipts relating to
investing activities
Sub-total of cash inflow from
investing activities
Cash paid to acquire and construct
fixed assets, intangible assets and 4,114,901,826.31 2,042,626,824.44
other long-term assets
Cash paid to acquire investments 319,039,459.91 4,915,716,783.24
Net cash paid by acquiring
subsidiaries and other business units
Other cash paid related to investing
activities
Sub-total of cash outflow from
investing activities
Net cash flow from investing
-2,362,698,917.70 1,650,766,978.93
activities
III. Cash flow from financing activities:
Cash received for investment taking - 13,992,600.00
Including: cash received by
subsidiaries from absorbing minority - 8,400,000.00
shareholders' investment
Cash received from borrowings 14,419,431,088.06 12,319,250,000.00
Sub-total of cash inflow from
financing activities
Cash paid for debts repayment 14,774,484,040.95 13,344,000,000.00
Cash paid for distribution of
dividends or profits or payment of 652,035,197.63 650,819,017.71
interest
Other cash paid related to financing
activities
Sub-total of cash outflow from
financing activities
Net cash flow from financing
-1,057,216,958.11 -1,701,935,200.78
activities
IV. Effect of foreign exchange rate
changes on cash and cash -5,442,221.79 -8,088,832.07
equivalents
V. Net increase in cash and cash
-2,025,267,383.83 1,973,825,453.84
equivalents
Plus: opening balance of cash and
cash equivalents
VI. Closing balance of cash and
cash equivalents
Legal Representative: Zhao Wenge, Person in Charge of Finance: Wang Dong, Head of
Finance Department: Zhao Difang
Cash Flow Statement of Parent Company
January-December 2022
Unit: RMB
Item Note 2022 2021
I. Cash flow from operating activities:
Cash received from sale of goods
and rendering of services
Cash received for taxes and
surcharges refunded
Other cash receipts relating to
operating activities
Sub-total of cash inflow from
operating activities
Cash paid for goods and services 562,286,375.43 571,281,536.76
Cash paid to and on behalf of
employees
Payments of taxes 710,961,271.08 691,067,319.78
Other cash payments relating to
operating activities
Sub-total of cash outflow from
operating activities
Net cash flow from operating
activities
II. Cash flow from investing activities:
Cash received from recovery of
investment
Cash received from investment
income
Net cash received from disposal of
property, plant and equipment,
intangible assets and other long-term
assets
Net cash received from disposal of
subsidiaries and other business units
Other cash receipts relating to
investing activities
Sub-total of cash inflow from
investing activities
Cash paid to acquire and construct
fixed assets, intangible assets and 3,579,149,669.56 1,973,252,137.98
other long-term assets
Cash paid to acquire investments 1,214,422,943.13 5,193,070,000.00
Other cash paid related to investing
- 1,632,462,005.00
activities
Sub-total of cash outflow from
investing activities
Net cash flow from investing
-2,333,577,587.06 1,518,088,809.39
activities
III. Cash flow from financing activities:
Cash received for investment taking - 5,592,600.00
Cash received from borrowings 14,419,431,088.06 12,319,250,000.00
Sub-total of cash inflow from
financing activities
Cash paid for debts repayment 14,774,484,040.95 13,344,000,000.00
Cash paid for distribution of
dividends or profits or payment of 652,035,197.63 650,819,017.71
interest
Other cash paid related to financing
activities
Sub-total of cash outflow from
financing activities
Net cash flow from financing
-1,033,628,742.45 -1,684,502,289.14
activities
IV. Effect of foreign exchange rate
changes on cash and cash - -
equivalents
V. Net increase in cash and cash
-2,095,294,681.97 1,641,249,635.64
equivalents
Plus: opening balance of cash and
cash equivalents
VI. Closing balance of cash and
cash equivalents
Legal Representative: Zhao Wenge, Person in Charge of Finance: Wang Dong, Head of Finance
Department: Zhao Difang
Statement of Changes in Consolidated Owners’ Equity
January-December 2022
Unit: RMB
Equity attributable to owners of the parent company
Item Minority
Other Total owners’ equity
interest
Paid-in capital Less: treasury General risk Undistributed
Capital reserve comprehensive Surplus reserve Sub-total
(share capital) stocks reserve profits
income
I. Balance at
the end of
previous
year
II. Opening
balance of
the current
year
III. YoY
change
(decrease is -5,200,000.00 19,636,919.00 -18,011,125.00 -84,859,208.62 110,873,341.23 1,038,991.13 591,943,744.50 651,444,912.24 -1,190,623.39 650,254,288.85
indicated by
“-”)
(I) Total
comprehens - - - -84,859,208.62 - - 1,104,719,091.71 1,019,859,883.09 -1,190,623.39 1,018,669,259.70
ive income
(II)Owners’
contribution
to and -5,200,000.00 19,636,919.00 -18,011,125.00 - - - - 32,448,044.00 - 32,448,044.00
reduction in
capital
of share-
based
-5,200,000.00 19,636,919.00 -18,011,125.00 - - - - 32,448,044.00 - 32,448,044.00
payment
into owner’s
equity
(III) Profits
- - - - 110,873,341.23 1,038,991.13 -512,775,347.21 -400,863,014.85 - -400,863,014.85
distribution
wal of - - - - 110,873,341.23 - -110,873,341.23 - - -
surplus
reserve
Withdrawal
of provision - - - - - 1,038,991.13 -1,038,991.13 - - -
for general
risks
on to
owners (or - - - - - - -400,863,014.85 -400,863,014.85 - -400,863,014.85
shareholder
s)
IV. Closing
balance of
the current
period
Equity attributable to owners of the parent company
Item
Other Minority interest Total owners’ equity
Paid-in capital (share Less: treasury Undistributed
Capital reserve comprehensive Surplus reserve Sub-total
capital) stocks profits
income
I. Balance at the
end of previous year
II. Opening balance
of the current year
III. YoY change
(decrease is 1,360,000.00 36,602,590.29 196,800.00 -17,298,926.31 140,951,986.92 891,198,640.35 1,052,617,491.25 3,515,225.31 1,056,132,716.56
indicated by “-”)
(I) Total
comprehensive - - - -17,298,926.31 - 1,334,095,906.95 1,316,796,980.64 -4,884,774.69 1,311,912,205.95
income
(II)Owners’
contribution to and 1,360,000.00 32,884,763.28 196,800.00 - - - 34,047,963.28 8,400,000.00 42,447,963.28
reduction in capital
contributed by 1,360,000.00 1,351,400.00 196,800.00 - - - 2,514,600.00 8,400,000.00 10,914,600.00
owners
based payment into - 31,533,363.28 - - - - 31,533,363.28 - 31,533,363.28
owner’s equity
(III) Profits
- - - - 140,951,986.92 -442,897,266.60 -301,945,279.68 - -301,945,279.68
distribution
- - - - 140,951,986.92 -140,951,986.92 - - -
surplus reserve
owners (or - - - - - -301,945,279.68 -301,945,279.68 - -301,945,279.68
shareholders)
(VI) Others - 3,717,827.01 - - - - 3,717,827.01 - 3,717,827.01
IV. Closing balance
of the current period
Legal Representative: Zhao Wenge, Person in Charge of Finance: Wang Dong, Head of Finance Department: Zhao Difang
Statement of Changes in Owners’ Equity of Parent Company
January-December 2022
Unit: RMB
Other
Item Paid-in capital (share Less: treasury Undistributed
Capital reserve comprehensive Surplus reserve Total owners’ equity
capital) stocks profits
income
I. Balance at the end of previous
year
II. Opening balance of the current
year
III. YoY change (decrease is
-5,200,000.00 19,636,919.00 -18,011,125.00 -107,240,373.69 110,873,341.23 596,997,056.22 633,078,067.76
indicated by “-”)
(I) Total comprehensive income -107,240,373.69 1,108,733,412.30 1,001,493,038.61
(II)Owners’ contribution to and
-5,200,000.00 19,636,919.00 -18,011,125.00 32,448,044.00
reduction in capital
-5,200,000.00 19,636,919.00 -18,011,125.00 32,448,044.00
payment into owner’s equity
(III) Profits distribution 110,873,341.23 -511,736,356.08 -400,863,014.85
-400,863,014.85 -400,863,014.85
shareholders)
IV. Closing balance of the current
period
Other
Item Paid-in capital Less: treasury Undistributed
Capital reserve comprehensive Surplus reserve Total owners’ equity
(share capital) stocks profits
income
I. Balance at the end of previous
year
II. Opening balance of the current
year
III. YoY change (decrease is
indicated by “-”)
(I) Total comprehensive income - - - -15,051,280.51 - 1,409,519,869.17 1,394,468,588.66
(II)Owners’ contribution to and
reduction in capital
owners
- 31,533,363.28 - - - - 31,533,363.28
into owner’s equity
(III) Profits distribution - - - - 140,951,986.92 -442,897,266.60 -301,945,279.68
shareholders)
IV. Closing balance of the current 5,491,274,176.00 1,866,141,278.50 137,494,800.00 66,421,903.33 1,505,156,319.67 6,349,987,902.26 15,141,486,779.76
period
Legal Representative: Zhao Wenge, Person in Charge of Finance: Wang Dong, Head of Finance Department: Zhao Difang
III. Basic information of the Company
√Applicable □Not applicable
Zhejiang China Commodities City Group Co., Ltd. (the “Company”) is a company limited
by share and was incorporated on Dec 28, 1993 in Zhejiang Province of the People’s Republic
of China. The RMB-denominated common A shares issued by the Company got listed on
Shanghai Stock Exchange on May 9, 2002. The Company is headquartered at No.105 Futian
Road, Yiwu 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.
These financial statements were approved for release by the Company's board of
directors on April 10, 2023. According to the Company's articles of association, these financial
statements are to be submitted to the general meeting of shareholders for deliberation.
√Applicable □Not applicable
The consolidation of financial statements is determined on the basis of control. For the
changes in the reporting period, please refer to Note VIII. Changes in consolidation scope
IV. Basis of preparation of financial statements
The financial statements of the Company were prepared on a going-concern basis.
The financial statements were prepared in accordance with the Accounting Standards for
Enterprises-Basic Standards and the specific accounting standards, application guidelines,
interpretations and other related regulations promulgated and amended thereafter (collectively
referred to as “Accounting Standards”).
The financial statements were all prepared based on the valuation principle of historical
cost, except for certain financial instruments. In case of assets impairment, corresponding
provision was made in accordance with relevant provisions.
√Applicable □Not applicable
The Company prepared financial statements on the basis of continuous operation.
On December 31, 2022, after deducting the contract liabilities/advance receipts that the
Group will use services/commodities to settle revenue to be recognized in the future, and the
prepaid accounts that the Group will receive in the future for goods/services, the Group's
current liabilities exceeded current assets by RMB 2,886,750,945.12. 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 December 31, 2022, the Group’s unused bank credit line of was RMB
months. The board of directors of the Company is convinced that the available credit line can
be re-approved when it expires based on past experience and good reputation; 3. In view of
the credit history of the Group, other available financing channels from banks and other
financial institutions; 4. , The Group's controlling shareholder CCCH has promised to continue
to provide sufficient financial support in the foreseeable future.
After evaluation, the board of directors of the Company believed that the Group has
sufficient resources to continue operations in the foreseeable future period of not less than 12
months from the end of the reporting period. Therefore, the Board of Directors of the Company
continued to prepare the Group's 2022 annual 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 accounting estimates based on
the characteristics of actual production and operation, which are mainly reflected in the bad
debt provisions for receivables, inventory valuation methods, depreciation of fixed assets,
amortization of intangible assets, income recognition and measurement, recognition of
property investments and fixed assets, and service life and residual value of fixed assets.
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.
The fiscal year of the Group starts from January 1 until December 31 of each calendar
year.
√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.
The Company’s functional currency is RMB. The Group uses RMB as its functional
currency and in the preparation of financial statements. Unless specifically stated, all amounts
are expressed in RMB.
The subsidiaries, joint ventures and associates of the Group determine their functional
currencies at their own discretion based on the main economic environments in their places of
businesses and convert all amounts into RMB while preparing financial statements.
of the enterprises not under common control
√Applicable □Not applicable
The mergers of enterprises are divided into the mergers of the enterprises under common
control and mergers of the enterprises not under common control.
Mergers of the enterprises under common control
Merger of the enterprises under common control refers to the merger of the enterprises
that are under ultimate control of the same party or parties before and after the merger and the
control is not temporary.
The assets and liabilities acquired by the merging party in a merger of the enterprises
under common control (including the goodwill formed through the acquisition of the merged
party by the ultimate controller) are accounted according to the book value thereof in the
ultimate controller’s financial statements on the date of merger. For the difference between the
book value of the net assets obtained by the merging party and the book value of the
consideration paid for the merger (or the total nominal value of the shares issued), the share
capital premium in the capital reserve shall be adjusted; if the share capital premium is not
sufficient to absorb the difference, the retained earnings shall be adjusted.
Mergers of the enterprises not under common control
Merger of the enterprises not under common control refers to the merger of the
enterprises that are not under ultimate control of the same party or parties before and after the
merger.
The acquiree’s identifiable assets, liabilities and contingent liabilities obtained from the
merger of the enterprises not under common control are measured at their fair values on the
date of acquisition. If the sum of the fair value of the consideration paid for the merger (or fair
value of the equity securities issued) and the fair value of the acquiree’s equity held before the
date of acquisition is higher than the share in the fair value of the acquiree’s identifiable net
assets acquired from the merger, the difference between them is recognized as goodwill,
which will be subsequently measured by the cost less accumulated impairment loss. If the sum
of the fair value of the consideration paid for the merger (or fair value of the equity securities
issued) and the fair value of the acquiree’s equity held before the date of acquisition is lower
than the share in the fair value of the acquiree’s identifiable net assets acquired from the
merger, the measurement of the fair value of the acquiree’s identifiable assets, liabilities and
contingent liabilities, the fair value of the consideration paid for the merger (or fair value of the
equity securities issued) and the fair value of the acquiree’s equity held before the date of
acquisition will be reviewed, and if the sum of the fair value of the consideration paid for the
merger (or fair value of the equity securities issued) and the fair value of the acquiree’s equity
held before the date of acquisition is still lower than the share in the fair value of the acquiree’s
identifiable net assets acquired from the merger after such review, the difference will be
recognized in the profit or loss for the current period.
For mergers of the enterprises not under common control that are executed through
multiple transactions, the long-term equity investment of the acquiree before the date of
acquisition shall be re-measured based on the fair value thereof on the date of acquisition and
any difference between the fair value and book value thereof shall be recognized in the profit
or loss for the current period; other comprehensive income from the long-term equity
investment of the acquiree before the date of acquisition under the equity method shall be
accounted on the same basis as that for the direct disposal of related assets or liabilities by the
investee, and other changes in shareholders’ equity than net profits or losses, other
comprehensive income and profit distribution shall be recognized in the profit or loss for the
period where the date of acquisition falls.
√Applicable □Not applicable
The financial statements to be consolidated is determined on the basis of control,
including those of the Company and all of its subsidiaries. Subsidiaries refer to the entities
controlled by the Company (including the severable parts of enterprises and invested entities,
and the structured entities controlled by the Company).
In the preparation of consolidated financial statements, the subsidiaries adopt the same
accounting year and accounting policies as those adopted by the Company. Assets, liabilities,
equity, income, expenses and cash flows generated from all deals between companies within
the Group are fully offset at the time of merger.
If the amount of loss for the current period attributable to the minority shareholders of a
subsidiary exceeds the minority shareholders’ share in the opening balance of shareholders’
equity in the subsidiary, the excess will still be recognized against minority interest.
For a subsidiary acquired through a business merger not under the same control, the
operating results and cash flows of the acquiree will be included in the consolidated financial
statements from the day when the Group acquires control, until the control of the Group
ceases. In the preparation of consolidated financial statements, adjustments will be made to
the financial statements of the subsidiary based on the fair value of its identifiable assets,
liabilities or contingent liabilities determined on the date of acquisition.
For a subsidiary acquired through a business merger under the same control, the
operating results and cash flows of merged party will be included in the consolidated financial
statements since the beginning of the current period of the merger. In the preparation of
consolidated financial statements, adjustments will be made to the related items in its previous
financial statements as if the reporting entity formed after the merger has been existing as from
the ultimate controller starts to exercise control.
In case of any change to one or more elements of the control due to the changes in
related facts and circumstances, the Group will re-evaluate whether to control the investee.
Without loss of control, changes in minority shareholders' equity are regarded as equity
transactions.
√Applicable □Not applicable
Joint arrangements are divided into joint operations and joint ventures. Joint operation
refers to a joint arrangement in which the parties thereto enjoy the assets relating to such
arrangement and assume the liabilities relating to such arrangement. Joint venture refers to a
joint arrangement in which the parties thereto only enjoy rights to the net assets in this
arrangement.
Each party to a joint arrangement recognizes the following items relating to its share in the
joint operation: assets held individually by it and assets held jointly based on its share;
liabilities assumed individually by it and liabilities assumed jointly based on its share; revenue
from the sale of its share in the output of the joint operation; revenue from the sale of the
output of the joint operation based on its share; expenses incurred individually by it and
expenses incurred by the joint operation based on its share.
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.
statements
√Applicable □Not applicable
For foreign currency transactions, the Group will translate the foreign currency amounts
into its functional currency amounts.
In the initial recognition of a foreign currency transaction, the foreign currency amount is
translated to a functional currency amount according to the spot exchange rate on the date of
transaction. On the balance sheet date, the foreign currency monetary items are translated
according to the spot exchange rate on the balance sheet date. The translation difference
between settlement and monetary items is recognized in the profit or loss for the current
period, except for the difference arising from the special foreign currency borrowing relating to
the acquisition and construction of the assets qualified for capitalization, which will be treated
based on the principles for the capitalization of borrowing expenses. The foreign currency non-
monetary items measured by historical cost are also translated according to the spot exchange
rate on the date of transaction, without changing the functional currency amounts thereof. The
foreign currency non-monetary items measured by fair value are translated according to the
spot exchange rate on the fair value determination date and the difference arising therefrom is
recognized in the profit or loss or other comprehensive income for the current period based on
the nature of the items.
The Group translates the functional currency of its foreign business into RMB while
preparing the financial statements. The assets and liabilities items in the balance sheet are
translated according to the spot exchange rate on the balance sheet date, the shareholders’
equity items are translated according to the spot exchange rate at the occurrence of the items
except for “undistributed profits”; revenue and expenses items in the income statement are
translated according to the average exchange rate during the period in which the transaction
happens (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.
√Applicable □Not applicable
Financial instruments refer to the contracts which form financial assets of an enterprise
and form financial liabilities or equity instruments of other entities.
Recognition and de-recognition of financial instruments
The Group recognizes a financial asset or financial liability at the time of becoming a party
to a financial instrument contract.
The Group will derecognize a financial asset (or a part of the financial asset or a part of a
group of similar financial assets), i.e. writing off the asset from its account and balance sheet,
if:
(1) the right to collect cash flow from the financial asset has expired;
(2) The right to collect cash flows of financial assets has been transferred, or the obligation
to pay the collected cash flows in full and in time to a third party under the “handover
agreement” has been undertaken; and (a) all risks and rewards in the ownership of the
financial assets have been substantially transferred, or (b) almost all risks and rewards in the
ownership of the financial asset have been neither transferred nor retained, but control of the
financial asset has been waived.
If a financial liability has been fulfilled, revoked or expired, it will be derecognized. If an
existing financial liability is replaced by the same creditor with another financial liability under
substantially different terms or the terms of the existing liability are substantially modified in
whole, the existing liability will be derecognized and the new liability will be recognized, and the
difference will be recognized in the profit or loss for the current period.
For the transactions of financial assets in regular ways, the recognition and de-recognition
thereof will be conducted based on the accounting on the transaction date. Transactions of
financial assets in regular ways refer to the collection or delivery of financial assets within the
time limit prescribed by laws and regulation or prevailing practices in accordance with the
contract terms. The transaction date refers to the date when the Group promises to buy or sell
the financial assets.
Classification and measurement of financial assets
Based on the Group’s business model for the management of financial assets and the
features of the contractual cash flow of financial assets, the Group’s financial assets are
classified at initial recognition into the financial assets that are measured by fair value and of
which the changes in fair value are recognized in the profit or loss for the current period, the
financial assets measured by amortized cost and the financial assets that are measured by fair
value and of which the changes in fair value are recognized in other comprehensive income.
If a financial asset is measured by fair value at initial recognition, but the accounts
receivable or notes receivable from the sale of goods or rendering of service do not include
significant financing components or the financing components with a term no longer than one
year are not considered, the initial measurement will be made based on the transaction price.
For the financial assets that are measured by fair value and of which the changes in fair
value are recognized in the profit or loss for the current period, the related transaction fees will
be directly recognized in the profit or loss for the current period; the related transaction fees of
other financial assets will be recognized in the initially recognized amounts thereof.
The subsequent measurement of financial assets depends on the classification thereof:
Investment in debt instruments measured by amortized cost
A financial asset is classified into those measured by amortized cost, if the business
model for the management of the asset is for the purpose of collecting contractual cash flow;
and the terms of the contract of the asset stipulate that the cash flow generated on the specific
date is only the repayment of principal and the payment of interest on the outstanding principal.
The interest income of such financial assets is recognized with the effective interest method,
and the profits 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 profits or losses
previously recognized in other comprehensive income will be moved out of other
comprehensive income and recognized in retained earnings.
Financial assets that are measured by fair value and of which the changes in fair
value are recognized in the profit or loss for the current period
The financial assets other than the above financial assets measured by amortized cost
and the above financial assets that are measured by fair value and of which the changes in fair
value are recognized in other comprehensive income are classified as the financial assets that
are measured by fair value and of which the changes in fair value are recognized in the profit
or loss for the current period. Those financial assets are subsequently measured by fair value
and all changes in the fair value thereof are recognized in the profit or loss for the current
period.
Classification and measurement of financial liabilities
The Group’s financial liabilities are classified at initial recognition into the financial liabilities
that are measured by fair value and of which the changes in fair value are recognized in the
profit or loss for the current period and other financial assets. For the financial liabilities that are
measured by fair value and of which the changes in fair value are recognized in the profit or
loss for the current period, the related transaction fees are recognized directly in the profit or
loss for the current period, while the related transaction fees of other financial liabilities are
recognized in the initially recognized amounts thereof.
The subsequent measurement of financial liabilities depends on the classification thereof:
Financial liabilities that are measured by fair value and of which the changes in fair
value are recognized in the profit or loss for the current period
The financial liabilities that are measured by fair value and of which the changes in fair
value are recognized in the profit or loss for the current period include financial liabilities held
for trading (including the derivative instruments as financial liabilities) and the liabilities that are
designated at initial recognition as the financial liabilities that are measured by fair value and of
which the changes in fair value are recognized in the profit or loss for the current period. The
financial liabilities held for trading (including the derivative instruments as financial liabilities)
are subsequently measured by fair value and all changes in the fair value are recognized in the
profit or loss for the current period.
Other financial liabilities
Those financial liabilities are subsequently measured by amortized cost with the effective
interest method.
Impairment of financial instruments
The Group has treated and recognized the impairment of the financial assets measured by
amortized cost based on the expected credit loss.
For receivables that do not contain significant financing components, the Group measures
the loss provision based on the amount of expected credit loss equivalent to the entire duration
under a simplified measurement method,
For the financial assets not measured with the simplified method, the Group evaluates on
each balance sheet date whether their credit risks have increased significantly since the initial
recognition. If the credit risk of a financial asset has not increased significantly since the initial
recognition, the asset is in the first stage and the Group will make provision for loss based on
the amount of expected credit loss within the coming 12 months and calculate interest income
based on the book balance and effective interest rate; if the credit risk has increased
significantly since the initial recognition, but credit has not been impaired, the asset is in the
second stage and the Group will make provision for loss equivalent to the amount of expected
credit loss during the entire term and calculate interest income based on the book balance and
effective interest rate; if credit has been impaired after the initial recognition, the asset is in the
third stage and the Group will make provision for loss equivalent to the amount of expected
credit loss during the entire term and calculate interest income based on the amortized cost
and effective interest rate.
The Group evaluates the expected credit losses of financial instruments on the individual
and group bases. It evaluates the expected credit loss of accounts receivable by taking into
account the credit risk characteristics of different clients and based on the account aging-
based asset groups.
For the disclosure of the Group’s criteria for a significant increase in credit risk, definition
of the assets whose credit has been impaired and assumptions for the measurement of
expected credit loss, please refer to Notes X. 2.
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.
Determination and accounting treatment of the expected credit loss of notes receivable
□Applicable √Not applicable
Determination and accounting treatment of the expected credit loss of accounts
receivable
√Applicable □Not applicable
Please refer to Notes X. Risks Associated with Financial Instruments
□Applicable √Not applicable
Determination and accounting treatment of the expected credit loss of other receivables
√Applicable □Not applicable
Please refer to Notes X. Risks Associated with Financial Instruments
√Applicable □Not applicable
Inventory includes raw materials, work-in-progress materials, finished goods, real estate
development costs and real estate development products.
Inventory is initially measured by cost. The costs of inventory except development costs
and development products include the procurement cost, processing cost and other costs. The
actual costs of items out of inventory are determined with the weighted average method. Work-
in-progress materials include low-value consumables and packages, which are amortized with
the one-off amortization method.
Development costs refer to the properties that have not been completed and are
developed for the purpose of being sold. Development products refer to the properties that
have been completed and are ready for sale. The actual costs of real estate development
costs and development products include the land acquisition cost, expenditures on
construction and installation works, capitalized interest and other direct and indirect
development expenses. The use right of the land for development purpose at the development
of a project is amortized and recognized as the development cost of the project based on the
site area of the development product, and the development cost will be changed over to
development product after being completed.
If the public auxiliary facilities are completed earlier than the related development product,
the facilities will be allocated to and recognized in the development cost of related
development project based on the floor space of the project after final accounting of the
facilities upon completion; if the public auxiliary facilities are completed later than the related
development product, they will be recognized in the development cost of related development
project based on the predicted cost of the public auxiliary facilities.
Hotel, catering and fresh goods inventories are subject to onsite inventory, while other
inventories are subject to perpetual inventory.
On the balance sheet date, inventory is measured by cost and net realizable value,
whichever is lower. If the cost is higher than the net realizable value, provision will be made for
inventory depreciation, which will be recognized in the profit or loss for the current period. 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.
(1).Determination and criteria for contract assets
□Applicable √Not applicable
(2).Determination and accounting treatment of the expected credit loss of contract
assets
□Applicable √Not applicable
□Applicable √Not applicable
(1).Determination and accounting treatment of the expected credit loss of debt
investments
√Applicable □Not applicable
Please refer to Notes X. Risks Associated with Financial Instruments
(1).Determination and accounting treatment of the expected credit loss of other debt
investments
□Applicable √Not applicable
(1).Determination and accounting treatment of the expected credit loss of long-term
receivables
√Applicable □Not applicable
Please refer to Notes X. Risks Associated with Financial Instruments
√Applicable □Not applicable
Long-term equity investment includes equity investment in subsidiaries, joint ventures and
associates.
Long-term equity investment is initially measured by the initial investment cost at the time
of being acquired. For a long-term equity investment acquired through a business merger
under the same control, the initial investment cost is the share of the book value of the merged
party’s owner’s equity acquired on the merger date in the ultimate controlling party’s
consolidated financial statements; The difference between the initial investment cost and the
book value of the merger consideration is adjusted to the capital reserve (if it is insufficient to
offset, the retained earnings will be offset); other comprehensive income before the merger
date is accounted for on the same basis as that for the investee’s direct disposal of related
assets or liabilities when disposing of the investment. The shareholders’ equity recognized by
the investee due to the changes in shareholders’ equity other than net profit and loss, other
comprehensive income, and profit distribution is transferred to the current profit and loss when
the investment is disposed of; those that are still long-term equity investments after disposal
are carried forward in proportion, and those that are converted into financial instruments after
disposal are carried forward in full. For a long-term equity investment acquired through a
business merger not under the same control, the merger cost shall be used as the initial
investment cost (for the business merger not under the same control realized step by step in a
package deal, the sum of the book value and the new investment cost on the acquisition date
is used as the initial investment cost). The merger cost includes the sum of fair values of the
assets paid, the liabilities incurred or assumed, and the equity securities issued by the
acquirer; the other comprehensive income held prior to the acquisition date that is recognized
for accounting under the equity method is accounted for on the same basis as that for the
investee’s direct disposal of related assets or liabilities when disposing of the investment. The
shareholders’ equity recognized by the investee due to the changes in shareholders’ equity
other than net profit and loss, other comprehensive income, and profit distribution is transferred
to the current profit and loss when the investment is disposed of; those that are still long-term
equity investments after disposal are carried forward in proportion, and those that are
converted into financial instruments after disposal are carried forward in full. The initial
investment costs of the long-term equity investment acquired other than through merger are
determined with the following methods: if an investment is acquired through the payment of
cash, its initial investment cost consists of the purchase price actually paid and the expenses,
taxes and other necessary expenses directly relating to the acquisition of the investment; and if
an investment is acquired through the offering of equity securities, its initial investment cost is
the fair value of the equity securities offered.
For the accounting of the long-term equity investment through which the Company can
exercise control over the investees, the Company adopts the cost method in individual financial
statements. Control refers to the power over an investee, with which the investor enjoys
variable return by participating in the investee’s related activities and is able to exercise its
power over the investee to affect the amount of return.
In the cost method, the long-term equity investment is measured by initial investment cost.
If the investment is added or recovered, the cost of long-term equity investment will be
adjusted. The cash dividend or profit declared by the investees to be distributed is recognized
as the investment income for the current period.
If the Group has joint control over or significant influence on the investee, the long-term
equity investment will be measured with the equity method. Joint control refers to joint control
over an arrangement in accordance with related agreements, and decisions on the activities
relating to the arrangement shall be made only after the parties sharing the control reach an
agreement. Significant influence refers to the power over the decision-making on the financial
affairs and business policies of the investee, but the investor does not have control or joint
control with others over the formulation of those policies.
In the equity method, if the initial investment cost of long-term equity investment is higher
than the share enjoyed by the Group in the fair value of the investee’s identifiable net assets at
investment, the excess will be recognized in the initial investment cost of the long-term equity
investment; if the initial investment cost of long-term equity investment is lower than the share
enjoyed by the Group in the fair value of the investee’s identifiable net assets at investment,
the difference will be recognized in the profit or loss for the current period and the cost of the
long-term equity investment will be adjusted simultaneously.
In the equity method, after long-term equity investment is acquired, the investment profits
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 profits or losses and
other comprehensive income realized by the investees to be enjoyed or assumed. The share in
the investee’s net profits 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 profits 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 profits or losses, other
comprehensive income and profit distribution, the book value of the long-term equity
investment will be adjusted and the changes will be recognized in the shareholders’ equity.
For the disposal of long-term equity investment, the difference between the book value of
long-term equity investment and the proceeds actually received from the disposal thereof is
recognized in the profits or loss for the current period. For the long-term equity investment
measured with the equity method, if the equity method is terminated due to the disposal, the
original related other comprehensive income measured with the equity method will be
accounted on the same basis as that for the direct disposal of related assets or liabilities by the
investees, and the shareholders’ equity recognized due to the investees’ other changes in
shareholders’ equity than net profits or losses, other comprehensive income and profit
distribution will be recognized in the profits or loss for the current period in full; if the equity
method is still adopted, the original related other comprehensive income measured with the
equity method will be accounted on the same basis as that for the direct disposal of related
assets or liabilities by the investees and recognized in the profits or loss for the current period
pro rata, and the shareholders’ equity recognized due to the investees’ other changes in
shareholders’ equity than net profits or losses, other comprehensive income and profit
distribution will be recognized in the profit or loss for the current period pro rata.
(1).In cost measurement model:
Depreciation or amortization methods
A property investment is a real estate property held with the intention of earning rents or of
capital appreciation or both, including land use rights that have been leased, land use rights
that are held and ready to be transferred after appreciation, and buildings that have been
leased.
Property investments are initially measured by cost. The subsequent expenses relating to
an property investment will be recognized in the cost of the property investment if the
economic benefits relating to the asset are very likely to flow in and the cost thereof can be
measured reliably. Otherwise, they will be recognized in the profit or loss for the current period
at the time of being incurred.
The Group subsequently measures its property investments with the cost model. The
depreciation/amortization of property investments is calculated on a straight line basis. The
service life, estimated net residual value and annual depreciation rate of property investments
are as follows:
Category Service life Estimated net Annual depreciation
residual value rate
Buildings and 20-30 years 4% 3.2%-4.8%
structures
Land use right 40-50 years - 1.4%-2.5%
(1).Recognition requirements
√Applicable □Not applicable
A fixed asset will be recognized only if the economic benefits relating thereto are very
likely to flow into the Group and its cost can be measured reliably. If meeting the above
recognition requirement, the subsequent expenses relating to a fixed asset will be recognized
in the cost of the fixed asset, and the book value of the replaced part will be deleted; otherwise,
the subsequent expenses will be recognized in the profit or loss for the current period at the
time of being incurred.
Fixed assets are initially measured by cost. The costs of purchasing a fixed asset include
the purchase price, related taxes and other expenses that are incurred before the fixed asset is
made to the predetermined ready-for-use status and are directly attributable to the asset.
The Group reviews and makes adjustment to, if necessary, the service life, estimated
residual value and depreciation method of its fixed assets at least at the end of each year.
(2).Depreciation methods
√Applicable □Not applicable
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
(3).Identification basis, pricing and depreciation method of the fixed assets under
financial lease
√Applicable □Not applicable
The depreciation method for the fixed assets under financial lease are the same as that for
proprietary fixed assets. If it can be reasonably determined that the ownership of a leased
asset will be acquired upon expiry of the lease term, the depreciation will be based on its
service life; if it cannot be reasonably determined that the ownership of a leased asset can be
acquired upon expiry of the lease term, the depreciation will be based on the lease term or the
service life of the asset, whichever is shorter.
√Applicable □Not applicable
The cost of construction in progress is determined based on the actual expenses,
including the necessary expenses on the works incurred during the construction, the borrowing
costs incurred before the works reach the predetermined ready-for-use status that shall be
capitalized and other related expenses.
The construction in progress will be recognized as fixed assets, property investment and
long-term prepaid expenses when reaching the predetermined ready-for-use status.
√Applicable □Not applicable
Borrowing costs refer to the interests incurred by the Group for its borrowings and other
related costs, including interest, amortization of discounts or premiums, ancillary costs and
exchange difference arising from foreign currency borrowings.
Borrowing costs that are directly attributable to the acquisition, construction or production
of the assets qualified for capitalization shall be capitalized, and other borrowing costs shall be
recognized in the profit or loss for the current period. The assets qualified for capitalization
refer to the fixed assets, property investment, inventory and other assets that can reach the
predetermined ready-for-use or sale status only after a quite long time of acquisition,
construction or production.
Borrowing costs can start to be capitalized only if they meet the following requirements
simultaneously:
(1) the expenses on assets have been incurred;
(2) the borrowing costs have been incurred;
(3) The purchase, construction or production activities necessary to make the asset reach
the intended usable or saleable status have started.
The borrowing costs for the assets qualified for capitalization shall cease being capitalized
when the assets reach the predetermined ready-for-use or sale status after the acquisition,
construction or production. The borrowing costs incurred subsequently will be recognized in
the profit or loss for the current period.
During capitalization, the amount of interest to be capitalized during each accounting
period is determined as follows:
For special borrowings, the amount of interest to be capitalized is the interest expenses
actually incurred during the current period less the temporary deposits interest income or
investment income.
(2) For occupied general borrowings, it is calculated and determined based on the
weighted average of asset expenditures of the accumulated asset expenditure exceeding the
portion of special borrowings multiplied by the weighted average interest rate of the occupied
general borrowings.
If an asset qualified for capitalization is interrupted abnormally for more than three months
during its acquisition, construction or production except due to the necessary procedures for it
to reach the predetermined ready-for-use or sale status, the capitalization of its borrowing
costs will be suspended. The borrowing costs incurred during the interruption will be
recognized as expenses and in the profit or loss for the current period until the acquisition,
construction or production of the asset is resumed.
□Applicable √Not applicable
□Applicable √Not applicable
√Applicable □Not applicable
The Group's right-of-use asset classes mainly include buildings and lands.
On the commencement date of the lease term, the Group recognizes its right to use the
leased asset during the lease term as a right-of-use asset, which is initially measured at cost.
Costs of right-of-use assets include: the initial measurement amount of the liabilities of the
lease; The amount of the lease payment paid on or before the commencement date of the
lease term, where there is a lease incentive, shall be deducted from the amount of the lease
incentive already enjoyed; Initial direct costs incurred by lessee; Costs expected to be incurred
by the Lessee to disassemble and remove the leased asset, restore the leased asset to the
site, or restore the leased asset to the state agreed upon in the lease terms. If the Group re-
measures lease liabilities in accordance with the relevant provisions of the lease standards, the
book value of the right-of-use asset shall be adjusted accordingly. The Group subsequently
shall adopt the straight-line method for the depreciation of the usufruct assets. Where the
ownership of the leased asset can be reasonably determined at the end of the lease term, the
Group shall take depreciation during the remaining useful life of the leased asset. Where it is
not reasonably certain that ownership of the leased asset will be acquired at the end of the
lease term, the Group shall make depreciation within the shorter period of the lease term or the
remaining useful life of the leased asset.
(1).Measurement method, service life and impairment test
√Applicable □Not applicable
Intangible assets will be recognized only if the economic benefits relating thereto are very
likely to flow into the Group and the costs thereof can be measured reliably, and will be initially
measured by cost. However, the intangible assets acquired from the merger of the enterprises
not under common control will be individually recognized so long as the fair values thereof can
be measured reliably, and will be measured by fair value.
The service life of an intangible asset is determined based on the term during which it can
bring economic benefits to the Group. If the term during which an intangible asset can bring
economic benefits to the Group is unforeseeable, it will be deemed as an intangible asset with
uncertain service life.
The service life of intangible assets is as follows:
Category Service life
Land use right 40-50 years
Software and software copyright 10 years
The land use rights acquired by the Group are generally accounted as intangible assets.
The buildings constructed by the Group itself, the related land use rights and buildings are
accounted as intangible assets and fixed assets respectively. The price paid for the land and
buildings purchased externally shall be allocated between the land use rights and buildings. If it
is hard to reasonably allocate the price, the price in full will be treated as fixed assets.
The intangible assets with finite service life shall be amortized with the straight-line
method during their service life. The Group reviews and makes adjustment to, if necessary, the
service life and amortization method of its intangible assets with finite service life at least at the
end of each year.
(2).Accounting policies for internal R&D expenses
√Applicable □Not applicable
The Group divides expenditures for internal R & D projects into research expenditures and
development expenditures. Research expenses are recognized in the profit or loss for the
current period at the time of being incurred. Development expenditures can be capitalized only
when all of the following conditions are met at the same time, that is, it is technically feasible to
complete the intangible asset to make them usable or saleable; there is an intention to
complete the intangible asset and use or sell it; the way for intangible assets to generate
economic benefits, including the ability to prove that there are markets for the products
generated by the intangible 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.
√Applicable □Not applicable
The Group determines the impairment of the assets other than inventory, deferred income
tax and financial assets with the following methods.
On the balance sheet date, the Group judges whether there is any sign of possible
impairment of assets. If there is any sign of impairment, the Group will estimate its recoverable
amount and conduct an impairment test; Uncertain intangible assets and intangible assets not
yet ready for use shall be tested for impairment at least at the end of each year, no matter
whether there is any sign of impairment.
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.
In terms of goodwill impairment tests, the book value of the goodwill formed in the
business merger shall be allocated to the relevant asset group under a reasonable method
from the date of acquisition; if it is difficult to allocate to the relevant asset group, it shall be
allocated to the relevant combination of asset groups. The relevant asset group or asset group
combination is an asset group or asset group combination that can benefit from the synergistic
effect of a business combination, and is not larger than the reporting segment determined by
the Group.
When an impairment test on a related asset group or combination of asset groups that
contains goodwill is made, if there are indications of impairment for an asset group or
combination of asset groups related to goodwill, the asset group or combination of asset
groups that does not contain goodwill shall be tested for impairment first, to calculate the
recoverable amount and recognize the corresponding impairment loss. Then, an impairment
test is conducted on the asset group or asset group combination containing goodwill to
compare its book value with the recoverable amount. If the recoverable amount is lower than
the book value, the impairment loss amount will be first offset and apportion to the book value
of goodwill in the asset group or asset group combination. Then the book value of other assets
shall be offset proportionally according to the proportion of the book value of other assets
except goodwill in the asset group or asset group combination.
The above assets impairment loss will not be reversed during the subsequent accounting
periods.
√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
(1).Recognition of contract liabilities
√Applicable □Not applicable
The Group presents contractual assets or contractual liabilities in the balance sheet based
on the relationship between performance obligations and customers’ payments. The Group
offsets the contractual assets and contractual liabilities under the same contract as a net
amount.
A contractual liability refers to an obligation to transfer goods or services to a customer for
the consideration received or receivable from the customer, such as the amount received by
the enterprise before the transfer of committed goods or services.
(1).Accounting treatment of short-term compensations
√Applicable □Not applicable
The short-term compensations actually incurred during the accounting period when the
employees provide service for the Group are recognized as liabilities and are recognized in the
profit or loss for the current period or costs of related assets.
(2).Accounting treatment of post-employment benefits
√Applicable □Not applicable
The employees of the Group participate in the endowment insurance and unemployment
insurance managed by the local government, as well as the enterprise annuity, and the
corresponding expenditures are included in the relevant asset cost or current profit and loss
when incurred.
(3).Accounting treatment of severance benefits
√Applicable □Not applicable
Where the Group provides severance benefits to its employees, the employee
compensation liabilities arising from the severance benefits will be recognized, and the amount
will be recognized in the profit or loss for the current period on the earlier date below: the date
when the Group cannot unilaterally withdraw the severance benefits provided as a result of the
employment termination plan or downsizing proposal; or the date when the Group recognizes
the costs or expenses relating to the reorganization involving the payment of severance
benefits.
(4).Accounting treatment of other long-term employee benefits
□Applicable √Not applicable
√Applicable □Not applicable
At the commencement date of the lease period, the Group recognizes the present value of
the outstanding lease payments as a lease liability, except for short term and low value leases.
Lease payments include fixed payments and substantial fixed payments after deduction of
lease incentives, variable lease payments depending on indexes or ratios, payments expected
to be made based on security balances, and also include the exercise price of the purchase
option or payments to exercise the option to terminate the lease, provided that the Group is
reasonably certain that the option will be exercised or that the lease period reflects that the
Group will exercise the option to terminate the lease.
In calculating the present value of the lease payments, the Group uses the lease
embedded interest rate as the discount rate; If the inherent interest rate of the lease cannot be
determined, the lessee's incremental borrowing rate shall be used as the discount rate. The
Group calculates the interest expense of the lease liability in each period of the lease term in
accordance with the fixed cyclical interest rate and records it into the current profit and loss,
except as otherwise stipulated in the cost of the relevant assets. The variable lease payment
not included in the measurement of lease liabilities shall be recorded into the profit and loss of
the current period when it actually occurs, except for those included in the cost of related
assets as otherwise stipulated.
After the commencement date of the lease term, the Group increases the book amount of
the lease liability when recognizing interest, and decreases the carrying amount of the lease
liability when paying the lease payment. When the actual fixed payment amount changes, the
expected payable amount of the guarantee residual value changes, the index or ratio used to
determine the lease payment amount changes, the evaluation result of the purchase option,
the lease renewal option or the termination option or the actual exercise situation changes, the
Group will re-measure the lease liabilities according to the current value of the changed lease
payment amount, and adjust the book value of the right-of-use assets accordingly.
√Applicable □Not applicable
Except for the contingent considerations and contingent liabilities assumed in the mergers
of enterprises not under common control, an obligation relating to contingent matters will be
recognized by the Group as estimated liabilities if meeting the following requirements
simultaneously:
(1) The obligation is a current obligation assumed by the Group;
(2) The performance of the obligation may result in the outflow of economic benefits from
the Group;
(3) The amount of the obligation can be measured reliably.
Estimated liabilities are initially measured based on the best estimate of the expenses
required for the performance of related current obligations, and the risks, uncertainties and
time value of money relating to the contingent matters are also factored in. The book value of
estimated liabilities is reviewed on each balance sheet date. If any conclusive evidence
indicates that the book value cannot reflect the current best estimate, the book value will be
adjusted based on the current best estimate.
√Applicable □Not applicable
Share-based payment is divided into equity-settled share-based payment and cash-settled
share-based payment. An equity-settled share-based payment refers to a deal in which the
Group uses shares or other equity instruments as the consideration for settlement to obtain
services.
The equity-settled share-based payment in exchange for services provided by employees
shall be measured at the fair value of the equity instruments granted to employees. If it can be
exercised immediately after the grant, it shall be included in the relevant costs or expenses at
fair value on the grant date, and the capital reserve shall be increased accordingly; if it cannot
be exercised until the service within the waiting period has been completed or the specified
performance conditions have been satisfied on each balance sheet date during the waiting
period, the Group will, based on the best estimate of the number of exercisable equity
instruments, include the services acquired in the current period, as relevant costs or expenses
based on the fair value on the grant date, and increase the capital reserve accordingly .
None of cost or expense shall be recognized for a share payment that cannot be
exercised due to failure to meet non-market conditions and/or service period conditions. Where
market conditions or non-exercising conditions are stipulated in the share-based payment
agreement, regardless of whether the market conditions or non-exercising conditions are
satisfied, it shall be deemed as exercisable as long as all other performance conditions and/or
service period conditions have been satisfied.
If the equity-settled share payment is canceled, it will be treated as an accelerated
exercise on the cancellation day, and the unrecognized amount shall be recognized
immediately. If an employee or other party has option to satisfy the non-exercising conditions
but fails to satisfy within the waiting period, it shall be treated as cancellation of equity-settled
share-based payment. However, if a new equity instrument is granted and if it is determined
that the new equity instrument granted is used to replace the canceled equity instrument on the
grant date of the new equity instrument, the replacement equity instruments granted in the
same way shall be treated in the same way as that for the modification of the terms and
conditions for the original equity instrument.
□Applicable √Not applicable
(1).Accounting policies for the recognition and measurement of revenue
√Applicable □Not applicable
The Group recognizes incomes when it has fulfilled its performance obligations in the
contract, that is, the customer has acquired the control over the relevant goods or services.
The acquisition of the control over related goods or services means the ability to control the
use of the goods or the provision of the service and obtain almost all of the economic benefits
from them.
Commodity sales contracts
Commodity sales contracts between the Group and customers usually only include
performance obligations for the transferred commodities. The Group generally recognizes
incomes on the basis of comprehensive consideration of the following factors, at the time when
the customer obtains control of the relevant products: the acquisition of the current right to
receive payment for the commodities, the transfer of the major risks and rewards in the
ownership of the commodities, the transfer of the legal ownership of the commodities, the
transfer of the physical assets of the commodities, and the acceptance of the commodities by
the customer.
Service contracts
The service contracts between the Group and its customers usually include performance
obligations such as the provision of the use of shops in the Commodity City and its operating
supporting services, the provision of hotel accommodation services and hotel catering
services, and the provision of fixed-term paid funding services to related parties outside the
Group.
The use of shops in the Commodity City and its supporting services
Since customers obtain and consume the economic benefits brought about by the Group’s
performance at the time of the performance by the Group, the Group regards them as a
performance obligation to be fulfilled within a certain period of time and recognizes an income
based on the performance progress, except that the performance progress cannot be
reasonably determined. Under the output method, the Group determines the performance
progress of the provision of the use of shops in the Commodity City and the supporting
services for its operation based on the number of using days of the shops When the
performance progress cannot be reasonably determined, if the cost incurred by the Group is
expected to be compensated, the income shall be recognized according to the amount of the
cost incurred until the performance progress can be reasonably determined.
Hotel accommodation business
Since customers obtain and consume the economic benefits brought about by the Group’s
performance at the time of the performance by the Group, the Group regards them as a
performance obligation to be fulfilled within a certain period of time and recognizes an income
based on the performance progress, except that the performance progress cannot be
reasonably determined. In accordance with the output method, the Group determines the
performance progress of hotel accommodation services based on the number of staying
days. . When the performance progress cannot be reasonably determined, if the cost incurred
by the Group is expected to be compensated, the income shall be recognized according to the
amount of the cost incurred until the performance progress can be reasonably determined.
Hotel catering business
For individual performance obligations in the provision of hotel catering services, the
Group prices hotel catering services separately, and uses the completion of hotel catering
services as the point of income recognition.
Fixed -time paid funding services
Since customers obtain and consume the economic benefits brought about by the Group’s
performance at the time of the performance by the Group, the Group regards them as a
performance obligation to be fulfilled within a certain period of time and recognizes an income
based on the performance progress, except that the performance progress cannot be
reasonably determined. Under the output method, the Group determines the performance
progress of the services for the fixed-term paid funding services based on the number of using
days of funds. When the performance progress cannot be reasonably determined, if the cost
incurred by the Group is expected to be compensated, the income shall be recognized
according to the amount of the cost incurred until the performance progress can be reasonably
determined.
(2).Differences in the revenue recognition policies for the same business under different
business models
□Applicable √Not applicable
√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) The 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 only because of the contract;
(2) The cost increases the resources that the enterprise will use to fulfill the contract
obligations in the future;
(3) The cost is expected to be recoverable.
The Group amortizes the assets related to contract costs on the same basis as the
revenue recognition related to the assets, and includes them in the current profit and loss.
For assets related to contract costs, if the book value is higher than the difference
between the following two items, the Group will make provision for impairment for the excess
part and recognize it as asset impairment loss:
(1) The remaining consideration that the enterprise expects to obtain due to the transfer of
goods or services related to the asset;
(2) Estimated costs to be incurred for the transfer of the relevant goods or services.
√Applicable □Not applicable
A government grant is recognized when it can meet the requirements and can be
received. If a government grant falls in monetary assets, it will be measured by the amount
received or receivable. If a government grant does not fall in monetary assets, it will be
measured by fair value. If the fair value of a grant cannot be determined reliably, it will be
measured by its nominal amount.
A government grant prescribed by government documents to be used to acquire or
construct or otherwise form long-term assets will be deemed as an asset-related government
grant; if no government documents have express provisions, the grants that are used to
acquire or construct or otherwise form long-term assets will be deemed as asset-related
government grants and others as income-related government grants.
The income-related government grants that are used to compensate for the related costs,
expenses or losses during the subsequent periods are recognized as deferred income and will
be recognized in the profit or loss or against the related costs for the period when the related
costs, expenses or losses are recognized. The income-related government grants used to
compensate for the related costs, expenses or losses that have been incurred are directly
recognized in the profit or loss or against the related costs for the current period.
The asset-related government grants shall be used to offset the book value of related
assets; 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.
If the finance allocates the discounted funds to the loan bank, and the loan bank provides
the Group with a loan at a policy-oriented preferential interest rate, the Group takes the actual
loan amount received as the book value of the loan, and the loan principal and the policy The
preferential interest rate calculates the relevant borrowing costs.
√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) The taxable temporary difference is generated in the following types of transactions:
the initial recognition of goodwill, or the initial recognition of assets or liabilities generated in a
transaction with the following characteristics: the transaction is not a business merger, and
neither affecting accounting profits, nor impacting taxable incomes or deductible losses.
(2) For taxable temporary differences related to investments in subsidiaries, joint ventures
and associated enterprises, the time for the reversal of the temporary differences can be
controlled and the temporary differences may not be reversed in the foreseeable future.
For the deductible temporary differences and the deductible losses and tax deductions
that can be carried forward to the subsequent years, the Group recognizes the deferred
income tax assets arising therefrom within the limit of the future taxable income that is very
likely to be obtained and used to be offset against the deductible temporary differences,
deductible losses and tax deductions, unless:
(1) The deductible temporary differences are generated in the following transactions: The
transaction is not a business combination, and when the occurrence of the transaction affects
neither accounting profits nor taxable income or deductible losses.
(2) For deductible temporary differences related to investments in subsidiaries, joint
ventures and associates, if all of the following conditions are satisfied simultaneously, the
corresponding deferred income tax assets are recognized: the temporary differences are likely
to be reversed in the foreseeable future, and it is likely to obtain taxable income that can be
used to offset the deductible temporary differences in the future.
The Group measures, on the balance sheet date, the deferred income tax assets and
liabilities based on the applicable tax rate for the period when the assets are expected to be
recovered or the liabilities are expected to be paid off, in accordance with the tax law, which
will also reflect the impact of the way of the expected recovery of assets or repayment of
liabilities on the income tax on the balance sheet date.
The Group reviews the book value of deferred income tax assets on the balance sheet
date. If it is very likely to be unable to acquire adequate taxable income to be offset against the
benefits of deferred income tax assets in the future, the book value of deferred income tax
assets will be written down. On the balance sheet date, the Group re-evaluates the
unrecognized deferred income tax assets and recognizes the same to the extent that it is very
likely to acquire adequate taxable income to reverse all or part of the deferred income tax
assets.
If all the following requirements are met, deferred income tax assets and liabilities will be
presented in net amount after offsetting: the Group has the legal right to settle the current
income tax assets and liabilities in net amount; the deferred income tax assets and liabilities
are related to the income tax levied by an identical tax authority on an identical taxpayer, or are
related to the income tax levied by an identical tax authority on different taxpayers, but during
each important period when the deferred income tax assets and liabilities are reversed, the
involved taxpayers intend to settle the current income tax assets and liabilities in net amount or
acquire assets or pay off debts simultaneously.
(1).Accounting treatment of operating lease
□Applicable √Not applicable
(2).Accounting treatment of financial lease
□Applicable √Not applicable
(3).Determination and accounting treatment of leases under the new lease standards
√Applicable □Not applicable
On the commencement date of the contract, the Group evaluates whether the contract is a
lease or an inclusive lease if a party in the contract cedes the right to control the use of one or
more identified assets for a certain period in exchange for consideration.
As a tenant
See Note V. 28 and Note V. 34 for the general accounting treatment of the Group as a
lessee.
Short-term leases and leases of low-value assets
The Group regards leases with a lease term shorter than 12 months and excluding
purchase options as short-term leases on the commencement date of the lease term; leases
with a value not exceeding RMB 40,000 when a single leased asset is a brand-new asset is
identified as a low-value asset lease. If the Group subleases or expects to sublease the leased
assets, the original lease is not recognized as a low-value asset lease. The Group chooses not
to recognize right-of-use assets and lease liabilities for short-term leases and leases of low-
value assets. In each period of the lease term, it is included in the relevant asset cost or
current profit and loss on a straight-line basis.
As a lessor
The lease that transfers virtually all the risks and rewards related to the ownership of the
leased asset on the lease commencement date is a finance lease, and other leases are
operating leases.
The Group as the lessor to operating leases
Rental income from operating leases is recognised in profit or loss on a straight-line basis
over each period of the lease term, and variable lease payments not included in lease receipts
are included in profit or loss for the current period when actually incurred. 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.
√Applicable □Not applicable
Distribution of profits
The Company’s cash dividend is recognized as liabilities after approval by the
shareholders’ meeting.
Measurement of fair value
The Group measures the fair values of equity instruments investments on each balance
sheet date. Fair value refers to the price received from the sale of an asset or paid for the
transfer of a liability by a market player in the orderly transactions on the measurement date.
For the assets and liabilities which are measured or disclosed by fair value in the financial
statements, the levels of fair value are determined based on the lowest-level input of important
significance for the overall measurement of fair values: Level 1 input is the unadjusted offer
price for an identical asset or liability that can be obtained in an active market on the
measurement date; Level 2 inputs are the inputs that are directly or indirectly observable for
related assets or liabilities other than Level 1 inputs; Level 3 inputs are the inputs that are
observable for related assets or liabilities.
On each balance date, the Group re-evaluates the assets and liabilities that are
recognized in the financial statements and keep being measured by fair value so as to
determine whether to change the measurement levels of fair value.
Significant accounting judgments and estimates
In the preparation of financial statements, the management need to make judgments,
estimates and assumptions, which will affect the presented amounts and disclosure of
revenue, expenses, assets and liabilities and the disclosure of contingent liabilities on the
balance sheet date. However, the uncertainties of these assumptions and estimates may
cause material adjustment to the book value of the assets or liabilities that will be affected in
the future.
Judgments
When applying the Group’s accounting policies, the management have made the following
judgments which have had significant influence on the amounts recognized in the financial
statements:
Operating lease—as the lessor
The Group has signed lease contracts for the property investments. The Group thinks that
according to the terms of the lease contracts, the Group retains all major risks and
compensations on the titles of those real estate properties and thus handles them as operating
leases.
Partition between property investments and fixed assets
The Group classifies the buildings and structures leased out other than for the main
businesses such as market and hotel services as well as the auxiliary land use rights thereof
as property investments, including but not limited to the auxiliary banking and catering outlets
for market operation and the auxiliary service outlets for hotels. Other buildings and structures
leased out are classified as fixed assets.
Judgments on assets acquisition and mergers of enterprises
When determining whether an acquisition transaction constitutes a merger, the Group
assesses various factors, including whether the acquiree constitutes a business, in accordance
with the Accounting Standards for Enterprises No. 20 – Merger of Enterprises. A business
refers to a group of some production and operation activities or assets and liabilities within an
enterprise, which has the input, processing and output abilities and whose costs and expenses
or revenue can be calculated independently, but an asset or a group of assets or liabilities can
be deemed as a business so long as it has the input and processing processes. The Group
makes comprehensive judgments by combining the asset acquired and the processing
process.
Business model
The classification of financial assets at initial recognition depends on the Group’s business
model for the management of financial assets. When judging the business model, the Group
factors in the enterprise evaluation, the way of reporting financial assets performance to key
management personnel, the risks affecting the performance of financial assets, the way of
managing financial assets and the way of related business management personnel obtaining
remunerations. When assessing whether to aim at the collection of contractual cash flow, the
Group needs to analyze the reasons, time, frequency and value for sale of the financial assets
to be sold before the expiry dates thereof.
Characteristics of contractual cash flow
The classification of financial assets at initial recognition depends on the characteristics of
the contractual cash flow of the financial assets. For the judgment on whether the contractual
cash flow is the repayment of principal and the payment of interest on outstanding principal,
including the evaluation of the adjustment to the time value of money, it should be judged
whether it is significantly different from the benchmark cash flow; for the financial assets with
the early repayment characteristic, it should be judged whether the fair value of the early
repayment characteristic is extremely low.
Uncertainties of estimates
The key assumptions on the balance sheet date for the future and other key sources of
the uncertainties of estimates are shown below, which may cause significant adjustments to
the book values of assets and liabilities during the future accounting periods.
Impairment of financial instruments
The Group evaluates the impairment of financial instruments with the expected credit loss
model. To apply the model, the Group needs to make significant judgments and estimates and
take into account all reasonable and evidenced information, including forward-looking
information. When making these judgments and estimates, the Group infers the expected
changes in the debtors’ credit risks based on their historical repayment data, in combination
with the economic policies, macroeconomic indicators and industry risks. Different estimates
may affect the provisions for impairment and the provision that has been made for impairment
may not necessarily be equal to the actual amount of impairment loss in the future.
Net realizable value of property inventory
The Group’s property inventory is measured by cost or net realizable value, whichever is
lower. For the calculation of net realizable value, assumptions and estimates should be used. If
the management adjust the estimated price and the costs and expenses to be incurred until
the completion, it will affect the estimate of the net realizable value of the inventory and the
difference will affect the provision for inventory depreciation.
Impairment of non-current assets other than financial assets (excluding goodwill)
The Group determines, on the balance sheet date, whether the non-current assets other
than financial assets have a sign of being impaired. For a non-current asset other than
financial asset, if it is indicated that its book value cannot be recovered, an impairment test will
be made. When the book value of an asset or a group of assets is higher than its recoverable
value, i.e. fair value less the disposal expenses or the present value of expected future cash
flow, whichever is higher, the asset or group has been impaired. For the fair value less the
disposal expenses, the Group refers to the agreed selling price or observable market price of
the similar asset in a fair transaction, less the cost increase directly attributable to the disposal
of the asset. When predicting the present value of future cash flows, the management must
estimate the expected future cash flows of the asset or group of assets and select an
appropriate discount rate. When identifying a group of assets, the management consider
whether the smallest identifiable group of assets can generate income and cash flows
independently from other departments or units, or the income and cash inflows generated
thereby are mostly independent from other departments or units, and also take into account
the way of managing or monitoring production and operating activities and the way of making
decisions on the continued use or disposal of the asset.
Goodwill impairment
The Group tests goodwill for impairment at least annually. This requires estimating the
present value of the future cash flows of the asset group or combination of asset groups to
which the goodwill is allocated. When estimating the present value of future cash flows, the
Group needs to estimate the cash flows generated by future asset groups or combinations of
asset groups, and at the same time select an appropriate discount rate to determine the
present value of future cash flows.
Fair value of unlisted equity investment
Valuation of the unlisted equity investment is the expected future cash flows discounted at
the current discount rate of other financial instruments with similar contract terms and risk
characteristics. This requires the Group to estimate the expected future cash flows, credit risk,
volatility and discount rate, which brings uncertainties.
Development expenses
When determining the amount of capitalization, management must make assumptions on
the expected future cash flow, the applicable discount rate, and the expected benefit period of
the asset.
Deferred income tax assets
To the extent that it is very likely for the Group to have enough taxable income to be offset
against the deductible losses, the Group shall recognize deferred income tax assets in
connection with the outstanding deductible losses. This requires the management to use lots of
judgments to estimate the acquisition time and amount of the taxable income to be acquired in
the future to determine the amount of deferred income tax assets to be recognized, in
consideration of the tax payment planning strategy.
Lessee incremental borrowing interest rate
For leases where the interest rate implicit in the lease cannot be determined, the Group
uses the lessee's incremental borrowing rate as the discount rate to calculate the present value
of the lease payments. When determining the incremental borrowing rate, the Group takes the
observable interest rate as the reference basis for determining the incremental borrowing rate
according to the economic environment it is in. On this basis, the Group adjusts the reference
interest rate according to its own situation, the underlying asset situation, the lease term, the
amount of lease liabilities and other specific conditions of the lease business to obtain the
applicable incremental borrowing rate.
(1).Changes in important accounting policies
□Applicable √Not applicable
(2).Changes in important accounting estimates
□Applicable √Not applicable
(3).From 2022, the first implementation of new accounting standards or standard
interpretations would involve adjustments to the financial statements at the
beginning of the first implementation year
□Applicable √Not applicable
□Applicable √Not applicable
VI. Taxes
Major taxes and tax rates
√Applicable □Not applicable
Tax Base of taxation Rate
VAT Sale of goods or rendering of The Company is a general taxpayer. The
taxable service taxable income is calculated at 13%, 9%
and 6% tax rates as output tax, and the
value-added tax is calculated and paid on
the basis of the difference after deduction
of the input tax allowed to be deducted in
the current period. In addition, for the sale
of the self-developed old real estate
projects (the contract start date indicated
in the “Construction Project Construction
Permit” is before April 30, 2016) and the
lease of the real estate acquired before
April 30, 2016, the simplified tax
calculation method shall apply at the rate
of 5%.
Urban Indirect tax actually paid 5% or 7%
maintenance and
construction tax
Corporate income Domestic enterprises should pay 25% of
tax the taxable income for corporate income
tax; European Huajie Development Co.,
Ltd. is registered in Prague, Czech
Republic, so it is subject to the corporate
income tax rate of 19%; Yiwu China
Commodities City (Hong Kong)
International Trade Co., Ltd. is registered
in Hong Kong Special Administrative
Region, so it is subject to the Hong Kong
income tax rate, 16.50%; BETTER SILK
ROAD FZE is registered in Dubai, so it is
free from corporate income tax.
Land appreciation Ratio of appreciation value to Four-bracket progressive tax rate (30%～
tax deductible items 60%)
Real estate tax If the tax is levied according to 1.2% or 12%
price, the amount is 1.2% of the
balance of the original value of the
property after a 30% deduction; if
the tax is levied according to
rental, the amount is 12% of the
rental income.
Education Indirect tax actually paid 3%
surcharge
Local education Indirect tax actually paid 2%
surcharge
Cultural Advertising turnover 3%
undertaking
development fee
Disclosure of taxpayers subject to different income tax rates
√Applicable □Not applicable
Taxpayer Income tax rate (%)
Yiwu China Commodities City (Spain) Co., 25.00
Ltd.
European Huajie Investment Development 19.00
Co., Ltd.
Yiwu China Commodities City (Hong Kong) 16.50
International Trade Co., Ltd.
Yiwu China Commodities City (Germany) 15.00
Co., Ltd.
BETTER SILK ROAD FZE 0
√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. was subject to a reduced corporate income tax rate of 15%.
□Applicable √Not applicable
VII. Notes to items in consolidated financial statements
√Applicable □Not applicable
Unit: RMB
Item Closing balance Opening balance
Cash on hand 220,471.11 154,264.94
Bank deposits 1,990,327,169.17 4,831,258,722.95
Other cash and cash equivalents 751,331.02 55,398.36
Total 1,991,298,971.30 4,831,468,386.25
In which: amount deposited 76,203,839.82 38,554,320.18
abroad
Other statements
For the cash and cash equivalents which are restricted in use, please refer to Notes VII.81
Assets with Restricted Title or Right of Use.
Interest income of demand deposits is accrued based on the demand deposit rates of
banks. The term of short-term time deposits ranges from three months to half a year and
depends on the Group’s cash demand, and the interest income thereof is accrued based on
the corresponding time deposit rates of banks.
√Applicable □Not applicable
Unit: RMB
Item Closing balance Opening balance
Financial assets that are measured by fair value and 62,331,000.66 75,375,083.20
of which the changes in fair value are recognized in
the profit or loss for the current period
Among them:
Bank financing products 38,679,435.66 25,000,000.00
Equity instrument investment 23,651,565.00 50,375,083.20
Total 62,331,000.66 75,375,083.20
Other notes:
□Applicable √Not applicable
□Applicable √Not applicable
(1). Categorized presentation of notes receivable
□Applicable √Not applicable
(2). Notes receivable having been pledged by the Company as of the close of the
reporting period
□Applicable √Not applicable
(3). Notes receivable having been endorsed or discounted by the Company as of the
close of the reporting period and having not been due as of the balance sheet date
□Applicable √Not applicable
(4). Notes turned into accounts receivable due to the drawers’ non-performance at the
close of the reporting period
□Applicable √Not applicable
(5). Categorized disclosure based on the bad debt provision method
□Applicable √Not applicable
Accounts receivable for which bad debt provision is made individually:
□Applicable √Not applicable
Explanation for making bad debt provision for accounts receivable by group:
□Applicable √Not applicable
If the bad debt provision is made according to the general model of expected credit loss,
please refer to the disclosure of other receivables:
□Applicable √Not applicable
(6). Provisions for bad debts
□Applicable √Not applicable
(7). Notes receivable actually written off during the current period
□Applicable √Not applicable
Other statements
□Applicable √Not applicable
(1).Disclosure based on account age
√Applicable □Not applicable
Unit: RMB
Account age Closing book balance
Within 1 year
In which: sub-items
Within 1 year 211,121,943.94
Within 1 year 211,121,943.94
Over 3 years -
Total 219,248,807.11
(2).Categorized disclosure based on the bad debt provision method
√Applicable □Not applicable
Unit: RMB
Closing balance Opening balance
Book balance Bad debt provision Book balance Bad debt provision
Category Book Book
Provisi Provisi
Proport value Proport value
Amount Amount on ratio Amount Amount on ratio
ion (%) ion (%)
(%) (%)
Accounts
receivable
for which
bad debt 6,261,907.10 2.86 6,261,907.10 100.00 - 97,219,393.59 50.71 6,261,907.10 6.44 90,957,486.49
provision is
made
individually
Among them:
Lease
receivables
Trade
- - - - - 90,957,486.49 47.44 - - 90,957,486.49
receivables
Accounts
receivable
for which
bad debt 212,986,900.01 97.14 2,236,174.65 1.05 210,750,725.36 94,491,809.69 49.29 211,765.29 0.22 94,280,044.40
provision is
made by
group
Among them:
Accounts
receivable
for which
the bad
debts are
provided by 212,986,900.01 97.14 2,236,174.65 1.05 210,750,725.36 94,491,809.69 49.29 211,765.29 0.22 94,280,044.40
combinatio
n of credit
risk
characterist
ics
Total 219,248,807.11 / 8,498,081.75 / 210,750,725.36 191,711,203.28 / 6,473,672.39 / 185,237,530.89
Accounts receivable for which bad debt provision is made individually:
√Applicable □Not applicable
Unit: RMB
Closing balance
Name Bad debt Provision
Book balance Reason for provision
provision ratio (%)
Lease receivables 6,261,907.10 6,261,907.10 100.00 Due to deterioration of
operating conditions, expected
not to be recovered
Total 6,261,907.10 6,261,907.10 100.00 /
Explanation for making bad debt provision for accounts receivable individually:
□Applicable √Not applicable
Explanation for making bad debt provision for accounts receivable by group:
□Applicable √Not applicable
If the bad debt provision is made according to the general model of expected credit loss,
please refer to the disclosure of other receivables:
√Applicable □Not applicable
End of December 2022
Account age Estimated book balance Expected credit loss Expected credit loss in
in default rate (%) whole duration
Within 1 211,121,943.94 0.99 2,096,697.81
year
Over 3 - 100.00 -
years
Total 212,986,900.01 2,236,174.65
(3).Provisions for bad debts
√Applicable □Not applicable
Unit: RMB
Amount of change during the
Opening current period Closing
Category
balance Recovery or balance
Provision
reversal
Bad debt 6,473,672.39 2,439,030.53 414,621.17 8,498,081.75
provision for
accounts
receivable
Total 6,473,672.39 2,439,030.53 414,621.17 8,498,081.75
In which the recovered or reversed amount is important:
□Applicable √Not applicable
(4).Accounts receivable actually written off during the current period
□Applicable √Not applicable
(5).Accounts receivable from the five debtors with the highest closing balance
√Applicable □Not applicable
Unit: RMB
Proportion in the
total closing Closing balance
Debtor Closing balance balance of of bad debt
accounts provision
receivable (%)
Total balance of the 24,183,149.50 11.03 240,168.10
accounts receivable with
the top five entities
Total 24,183,149.50 11.03 240,168.10
Other statements
Nil
(6).Accounts receivable derecognized due to transfer of financial assets
□Applicable √Not applicable
(7).Amounts of assets and liabilities formed by the transfer of accounts receivable and
continuing involvement
□Applicable √Not applicable
Other notes:
□Applicable √Not applicable
□Applicable √Not applicable
(1).Presentation of prepayment by age
√Applicable □Not applicable
Unit: RMB
Account Closing balance Opening balance
age Amount Proportion (%) Amount Proportion (%)
Within 1 600,114,288.07 99.02 868,252,359.56 99.21
year
Over 3 450,000.00 0.07 100,000.00 0.01
years
Total 606,057,048.25 100 875,167,709.48 100
Explanation for failure to settle the prepayments with an account age longer than one year and
in important amounts:
Nil
(2).Prepayments to the five suppliers with the highest closing balance
√Applicable □Not applicable
Proportion in total
Debtor Closing balance closing balance of
prepayments (%)
Binzhou Yellow River Oasis Agricultural
Development Co., Ltd.
OPERADORA Y PROCESADORA DE PRODUCTOS
MARINOS OMARSA S.A. 46,604,703.62 7.69
CAMAR-EXPO S.A 42,928,301.09 7.08
PROCESADORA DE MARISCOS DE EL
ORO PROMARO S.A.
Sociedad Nacional de Galapagos C.A.
SONGA
Total 210,142,460.95 34.67
Other statements
Nil
Other statements
□Applicable √Not applicable
Presentation of items
√Applicable □Not applicable
Unit: RMB
Item Closing balance Opening balance
Interest receivable - 92,249,275.44
Other receivables 419,398,092.62 1,263,675,007.52
Total 419,398,092.62 1,355,924,282.96
Other notes:
□Applicable √Not applicable
Interest receivable
(1).Classification of interest receivable
√Applicable □Not applicable
Unit: RMB
Item Closing balance Opening balance
Cash occupation fee for - 92,249,275.44
receivables
Total - 92,249,275.44
(2).Significant overdue interest
□Applicable √Not applicable
(3).Bad debt provision
□Applicable √Not applicable
Other notes:
□Applicable √Not applicable
Dividend receivable
(1).Dividend receivable
□Applicable √Not applicable
(2).Important dividend receivable with an account age longer than 1 year
□Applicable √Not applicable
(3).Bad debt provision
□Applicable √Not applicable
Other notes:
□Applicable √Not applicable
Other receivables
(1).Disclosure based on account age
√Applicable □Not applicable
Unit: RMB
Account age Closing book balance
Within 1 year
In which: sub-items
Within 1 year 53,134,184.05
Within 1 year 53,134,184.05
Over 3 years 16,433,656.30
Bad debt provision for other receivables -4,141,791.44
Total 419,398,092.62
(2).Classification based on the nature of accounts
√Applicable □Not applicable
Unit: RMB
Nature of receivable Closing book balance Opening book balance
Financial assistance 323,786,912.09 1,103,178,748.00
receivable from joint ventures
Withholdings and deposits 84,610,870.01 125,377,518.60
Receivables from export tax 10,041,570.82 34,759,474.84
rebate
Reserve 958,739.70 359,266.08
Total 419,398,092.62 1,263,675,007.52
(3).Bad debt provision
√Applicable □Not applicable
Unit: RMB
Stage 1 Stage 2 Stage 3
Expected credit
Expected credit
Expected credit loss in the
Bad debt provision loss in the entire Total
loss in the coming entire duration
duration (credit has
been impaired)
been impaired)
Balance as at January 1, 4,355,084.46 4,355,084.46
Balance as of January 1,
Provision made in the current 130,607.13
period
Current reversal 340,011.54 340,011.54
Current write-off 3,888.61 3,888.61
Balance as of December 31, 4,141,791.44 4,141,791.44
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
Opening Closing
Category Recovery or Charge-off
balance Provision balance
reversal or write-off
Bad debt provision for
other receivables
Total 4,355,084.46 130,607.13 340,011.54 3,888.61 4,141,791.44
In which the recovered or reversed amount is important:
□Applicable √Not applicable
(5).Other receivables actually written off during the current period
√Applicable □Not applicable
Unit: RMB
Item Amount written-off
Other receivables actually written off 3,888.61
Of which, important write-offs of other receivables:
□Applicable √Not applicable
Notes on the write-off of other receivables:
□Applicable √Not applicable
(6).Other receivables from the five debtors with highest closing balance
√Applicable □Not applicable
Unit: RMB
Weight in the total Bad debt
Nature of Account closing balance of provision
Debtor Closing balance
receivable age other receivables Closing
(%) balance
Yiwu Handing
Financial 2-3
Shangbo Real Estate 207,750,200.00 49.05 -
assistance years
Co., Ltd.
Yiwu Tonghui
Financial 2-3
Shangbo Real Estate 116,036,712.09 27.40 -
assistance years
Co., Ltd.
Land
Yiwu Municipal Within 1
security 34,270,272.36 8.09 -
Bureau of Finance year
deposit
Yiwu Taxation
Bureau, State Export tax Within 1
Administration of rebate year
Taxation
Yiwu Shengran Advance Within 1
Trading Co., Ltd. payment year
Total / 371,630,755.27 / 87.74 -
(7).Receivables involving government grants
□Applicable √Not applicable
(8).Other receivables derecognized due to transfer of financial assets
□Applicable √Not applicable
(9).Amounts of assets and liabilities formed by the transfer of accounts receivable and
continuing involvement
□Applicable √Not applicable
Other notes:
□Applicable √Not applicable
(1).Classification of inventory
√Applicable □Not applicable
Unit: RMB
Closing balance Opening balance
Provision for Provision for
inventory inventory
depreciation/pr depreciation/pr
Item Book ovision for Book ovision for
Book value Book value
balance impairment of balance impairment of
contract contract
performance performance
cost cost
Raw
materials
Finished 212,470,958 212,470,958 75,079,555. 75,079,555.
- -
goods .56 .56 38 38
Work-in-
progress - -
materials
Develop
ment 28,303,338.06 28,303,338.06
cost
Develop
ment - -
products
Total 28,303,338.06 28,303,338.06
(2).Provision for inventory depreciation/provision for impairment of contract
performance cost
√Applicable □Not applicable
Unit: RMB
Increase in the current Decrease in the
period current period
Item Opening balance Closing balance
Charge-off
Provision Others Others
or write-off
Development 28,303,338.06 - - - - 28,303,338.06
cost
Total 28,303,338.06 - - - - 28,303,338.06
(3).Closing balance of inventory containing capitalized borrowing costs
√Applicable □Not applicable
On December 31, 2022, the inventory with a book value of RMB 35,797,443.87
(December 31, 2021: RMB 35,797,443.87) was formed by capitalization of borrowing costs.
(4).Amortization of contract performance cost during the current period
□Applicable √Not applicable
Other statements
√Applicable □Not applicable
Inventory-Development Cost Unit: RMB-yuan Currency: RMB
Item Opening Increase in the Decrease in the Closing balance
balance current period current period
Haicheng Phase
I Business 67,907,950.27 - - 67,907,950.27
Street
Haicheng Phase
II Business 279,215,977.14 69,696,080.84 348,912,057.98 -
Street
Total 347,123,927.41 69,696,080.84 348,912,057.98 67,907,950.27
Inventory-Developed Products Unit: RMB-yuan Currency: RMB
Item Opening Increase in the Decrease in Other Closing balance
balance current period the current transfer-out
period
Haicheng
Phase I
Business
Street
Haicheng
Phase II
- 348,912,057.98 189,253,668.23 - 159,658,389.75
Business
Street
Shuangchuang
Building
Total 928,561,037.31 348,912,057.98 190,659,141.76 11,539,432.99 1,075,274,520.54
(1).Overview of contract assets
□Applicable √Not applicable
(2).Amount of and reasons for material changes to book value during the reporting
period
□Applicable √Not applicable
(3).Provision for impairment of contract assets in the current period
□Applicable √Not applicable
If the bad debt provision is made according to the general model of expected credit loss,
please refer to the disclosure of other receivables:
□Applicable √Not applicable
Other notes:
□Applicable √Not applicable
□Applicable √Not applicable
□Applicable √Not applicable
Important debt investments and other debt investments at the end of the period:
□Applicable √Not applicable
Other statements
Nil
√Applicable □Not applicable
Unit: RMB
Item Closing balance Opening balance
Payment business reserve 367,484,914.87 -
To-be-deducted input tax 146,697,598.28 234,080,141.55
Advance income tax 113,127,305.76 -
To-be-certified input tax 5,348,152.36 4,357,934.03
Contract acquisition cost - 7,629,349.00
Entrusted loans to the market 1,737,479.42 2,780,294.82
traders
Less: bad debt provision for -185,500.00 -185,500.00
entrusted loans
Total 634,209,950.69 248,662,219.40
Other statements
Nil
(1).Overview of debt investment
√Applicable □Not applicable
Unit: RMB
Closing balance Opening balance
Item Impairment Book Impairment Book
Book balance Book value
Provision balance Provision value
Entrusted 48,079,561.64 - 48,079,561.64 - - -
Loans
Total 48,079,561.64 - 48,079,561.64 - - -
(2).Important debt investment as of the close of the reporting period
□Applicable √Not applicable
(3).Provision for impairment
□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
Other statements
□Applicable √Not applicable
(1).Overview of other debt investment
□Applicable √Not applicable
(2).Important other debt investment as of the close of the reporting period
□Applicable √Not applicable
(3).Provision for impairment
□Applicable √Not applicable
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
Other notes:
□Applicable √Not applicable
(1).Overview of long-term receivables
√Applicable □Not applicable
Unit: RMB
Closing balance Opening balance Ran
Bad Bad ge of
Item debt debt disc
Book balance Book value Book balance Book value
provis provis ount
ion ion rate
Financial
assistance
receivable - 269,877,115.20 214,752,001.51 - 214,752,001.51
from joint
ventures
Guarantee
deposit
Total - 278,299,600.73 222,307,363.40 - 222,307,363.40
(2).Bad debt provision
□Applicable √Not applicable
Amount of bad debt provision for the current period and the basis for assessing whether there is
significant increase in the credit risk of financial instruments
□Applicable √Not applicable
(3).Long-term receivables derecognized due to transfer of financial assets
□Applicable √Not applicable
(4).Amounts of assets and liabilities formed by the transfer of long-term receivables and
continuing involvement
□Applicable √Not applicable
Other statements
□Applicable √Not applicable
√Applicable □Not applicable
Unit: RMB
Change in the current period
Investment profits Other Closing balance
Opening amount Closing amount
Investee Additional Decrease in or losses comprehensive Declared a cash of impairment
Balance Balance
investment investment recognized with income dividend or profit provision
the equity method Adjust
Yiwu Shanglv 383,668,354.21 - - 13,304,094.72 - - 396,972,448.93 -
Yiwu Rongshang Real
Estate Co., Ltd.
Yiwu Chuangcheng
Real Estate
Others 60,140,520.92 - - 50,910,854.11 - - 111,051,375.03 3,327,216.16
Sub-total 749,259,738.87 - - 628,206,680.27 - 775,342,400.00 602,124,019.14 3,327,216.16
Hangzhou Binjiang
Shangbo Property
Development Co.,
Ltd.
Huishang Micro-
finance
Yiwu Huishang
Redbud Equity 70,996,992.21 - - 9,254,883.12 - - 80,251,875.33 -
Investment Co., Ltd.
Chouzhou Financial
Lease
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 Investment 102,918,559.00 - - - - - 102,918,559.00 -
Center (Limited
Liability Partnership)
Pujiang Lvgu
Property Co., Ltd.
Yiwu China
Commodities City
Property 2,756,938,444.33 - - 228,542,250.22 - - 2,985,480,694.55 -
Development Co.,
Ltd.
Yiwu Hongyi Equity
Investment Fund 887,872,262.46 - - 57,848,377.09 -78,554.53 - 945,642,085.02 -
Partnership
Zhejiang Zhijie
Yuangang
International Supply - 150,000,000.00 - -4,436,560.67 - - 145,563,439.33 -
Chain Technology
Co., Ltd.
Others 205,193,249.92 18,970,493.87 - 261,507.20 4,139,085.99 - 228,564,336.98 -
Sub-total 5,036,030,769.35 168,970,493.87 30,710,000.00 367,901,737.42 4,060,531.46 102,069,365.94 5,444,184,166.16 9,508,049.22
Total 5,785,290,508.22 168,970,493.87 30,710,000.00 996,108,417.69 4,060,531.46 877,411,765.94 6,046,308,185.30 12,835,265.38
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
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, CCCF, a wholly-owned subsidiary of the Group, and Shanghai Fuxing Industrial Group Co., Ltd. (hereinafter referred to as
"Fuxing") jointly established Industrial Fund Yiwu China Commodities City Fuxing Investment Center (LLP) (hereinafter referred to as the "Funds of
Funds"), the Fund of Funds has invested in 12 sub-funds including Yiwu Shangfu Chuangzhi Investment Center (LLP) (hereinafter referred to as
"Shangfu Chuangzhi Fund").
CCCF, as a limited partner, subscribed RMB 998 million in the FOF, accounting for 49.9% of the subscribed capital. The paid-in capital was
RMB 102.92 million, and there is no deadline for the payment for the unpaid capital contribution. The other limited partner of the FOF is Fuxing.
CCCF also contributed RMB 9.8 million, 49% of total shares, to jointly establish Yiwu China Commodities City Investment Management Co., Ltd.
(hereinafter referred to as “CCCIM”) with Fuxing as the general partner of the above-mentioned FOF and sub-funds. The FoF and CCCIM are both
under the control of Fuxing and are associates of CCCF.
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 a limited partner, Shangfu Chuangzhi Fund made capital contribution of RMB820.54million to subscribe for the increase in the
registered capital of Hubei Provincial Asset Management Co., Ltd. to acquire 22.667% equity therein.
In 2018, CCCF learned during its after-investment follow-up management that Fuxing and its actual controller ZHU Yidong were suspected of
having committed a criminal offense and the 22.667% equity held by Shangfu Chuangzhi Fund in Hubei Provincial Asset Management Co., Ltd. was
frozen by the Public Security Bureau of Shanghai due to Fuxing’s contribution to the sources of the capital contribution. The Group believes that, on
December 31, 2022, the Group’s investment in the Fund of Funds and Shangfu Chuangzhi Fund was non-related to Fuxing’s investment, and there
was no indication of impairment of the underlying assets. Although they were still frozen, but without affecting the Group’s equity. Therefore, there
was no impairment. However, for the equity investment managed for the Yiwu CCC, a full impairment provision has been made since 2018. See
Notes VII.81 and Notes XIV. 1 for details.
(1).Overview of other equity instruments investment
√Applicable □Not applicable
Unit: RMB
Item Closing balance Opening balance
Shenwan Hongyuan Group Co., 499,200,803.85 642,187,968.77
Ltd.
Total 499,200,803.85 642,187,968.77
(2).Non-trading equity instruments investment
□Applicable √Not applicable
Other notes:
□Applicable √Not applicable
√Applicable □Not applicable
Unit: RMB
Item Closing balance Opening balance
PE investment 1,242,537,387.23 1,263,329,797.13
Unlisted equity investment 210,030,495.82 213,607,388.98
NEEQ equity investment 47,739,679.08 47,882,069.30
Total 1,500,307,562.13 1,524,819,255.41
Other notes:
□Applicable √Not applicable
Measurement models
(1).Property investment measured by cost
Unit: RMB
Buildings and
Item Land use right Total
structures
I. Original book value
period
(2) Inventory\fixed
assets\construction in progress 8,520,184.69 3,019,248.30 11,539,432.99
changed into property investment
period
(1) Differences in final 4,183,242.34 - 4,183,242.34
settlement of completion
II. Accumulated depreciation and accumulated amortization
period
(1) Provision or amortization 118,346,091.24 11,303,319.45 129,649,410.69
- - -
period
III. Depreciation provision
IV. Book value
(2).Information of investment real estate without property right certificates
√Applicable □Not applicable
Unit: RMB
Reasons for having not
Item Book value obtained the ownership
certificate
Comprehensive Bonded Zone 974,757,995.98 Completion settlement not
completed
Trading Station of Yiwu CCC 93,034,948.67 Completion settlement not
Warehousing Park completed
Office building of the auxiliary 86,794,063.23 Completion settlement not
project in western Yiwu completed
Total 1,154,587,007.88
Other statements
√Applicable □Not applicable
As of December 31, 2022, the total amount of investment real estate for which the
property right certificates had not been received due to that the final settlement was still in
progress was RMB 1,154,587,007.88.
Presentation of items
√Applicable □Not applicable
Unit: RMB
Item Closing balance Opening balance
Fixed assets 5,220,882,784.47 5,078,590,929.75
Total 5,220,882,784.47 5,078,590,929.75
Other notes:
□Applicable √Not applicable
Fixed assets
(1).Overview of fixed assets
√Applicable □Not applicable
Unit: RMB
Buildings and Machinery Transportation
Item Total
structures equipment equipment
I. Original book value:
balance
the current period
(1) Purchase - 24,440,280.52 91,997.42 24,532,277.94
(2)
Changeover from
construction in
progress
(3) Increase
- 11,155,015.00 - 11,155,015.00
due to mergers
(4) Other
transfer -in
the current period
(1) Disposal
or retirement
balance
II. Accumulated depreciation
balance
the current period
(1) Provision 292,331,556.43 68,862,229.19 1,873,832.47 363,067,618.09
- 23,495,067.46 2,851,395.61 26,346,463.07
the current period
(1) Disposal
- 23,495,067.46 2,851,395.61 26,346,463.07
or retirement
balance
III. Depreciation provision
balance
balance
IV. Book value
book value
value
(2).Temporarily idle fixed assets
□Applicable √Not applicable
(3).Fixed assets leased in through financial lease
√Applicable □Not applicable
Unit: RMB
Original book Accumulated Impairment
Item Book value
value depreciation provision
General 6,084,431.99 5,841,054.71 - 243,377.28
equipment
(4).Fixed assets leased out through operating lease
□Applicable √Not applicable
(5).Fixed assets for which the ownership certificates have not been obtained
√Applicable □Not applicable
Unit: RMB
Reasons for having not
Item Book value obtained the ownership
certificate
Auxiliary project in western 591,632,268.53 Completion settlement not
Yiwu completed
Liaoning Xiliu Yiwu China 324,783,769.58 Completion settlement not
Commodities City completed
Huangyuan Clothing Market 245,004,629.45 Completion settlement not
completed
CCC Hotel 51,462,875.75 Completion settlement not
completed
Total 1,212,883,543.31
Other notes:
√Applicable □Not applicable
The impairment of fixed assets was RMB 471,163,467.85, which was the impairment of
fixed assets of Haicheng Yiwu China Commodities City.
As of December 31, 2022, the total amount of property, plant and equipmentfor which the
property right certificates had not been received due to that the final settlement was still in
progress was RMB 1,212,883,543.31.
Disposal of fixed assets
□Applicable √Not applicable
Presentation of items
√Applicable □Not applicable
Unit: RMB
Item Closing balance Opening balance
Construction in progress 2,860,064,818.36 1,090,577,963.27
Total 2,860,064,818.36 1,090,577,963.27
Other notes:
□Applicable √Not applicable
Construction in progress
(1).Overview of construction in progress
√Applicable □Not applicable
Unit: RMB
Closing balance Opening balance
Item Impairment Impairment
Book balance Book value Book balance Book value
provision provision
West Yiwu International Means of
Production Market Auxiliary - - - 212,637,292.78 - 212,637,292.78
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 Yiwu Comprehensive
Bonded Zone Project
Logistics Park S3 304,000,538.70 - 304,000,538.70 - - -
Logistics Park S2 235,339,023.06 - 235,339,023.06 - - -
Yiwu Digital Trade Industrial Park 158,150,730.63 - 158,150,730.63 60,070,777.68 - 60,070,777.68
Yiwu International Digital
Logistics Market
Global Digital Free Trade Center 71,878,178.97 - 71,878,178.97 30,126,457.56 - 30,126,457.56
The Chian West Sea tourism
project
The Zhimei Dachen Tourism
Project
Zone II East Parking Lot Project - - - 276,099,117.75 - 276,099,117.75
Other projects 617,612.59 - 617,612.59 548,854.99 - 548,854.99
Total 2,864,699,878.32 -4,635,059.96 2,860,064,818.36 1,095,213,023.23 -4,635,059.96 1,090,577,963.27
(2).Changes to important construction in progress during the current period
√Applicable □Not applicable
Unit: RMB10,000
In
Ratio of
which: Interest
Openin Amount accumulat
Increase Accumulat capitaliz capitalizati
g change Closing ed Source
in the Project ed ed on ratio
Item Budget amount d into amount investmen of
current Progress capitalized interest for the
Balanc fixed Balance t to funds
period interest in the current
e assets budget
current period (%)
(%)
period
West Yiwu
International
Own
Means of
Production 9,291.78 - 100.00 9,938.28 - -
Market
ng
Auxiliary
Project
Liaoning
Xiliu Yiwu
China
Commoditie Own
s City 180,000.0 Shutdow funds/
Commerce 0 n financi
Phase I ng
Project—
Hotel
Project
The Yiwu
Comprehen Under
sive Bonded - 46.55 constructi - - -
Zone on
Project
Under
Logistics 108,000.0 23,533.9 23,533.9 Self-
- - 21.79 constructi - - -
Park S2 0 0 0 owned
on
Own
Under
Logistics 132,000.0 30,400.0 30,400.0 funds/
- - 23.03 constructi 91.83 91.83 2.90
Park S3 0 5 5 financi
on
ng
Yiwu Digital
Under
Trade 15,815.0 Self-
Industrial 7 owned
on
Park
Yiwu
Own
International Under
Digital - - 10.21 constructi 94.25 94.25 2.90
Logistics on
ng
Market
Global
Under
Digital Free 832,082.0 Self-
Trade 0 owned
on
Center
The Chian
Under
West Sea Self-
tourism owned
on
project
The Zhimei
Under
Dachen 4,187.4 Self-
tourism 0 owned
on
project
Zone II East
Parking Lot 60,706.00 1,474.95 - 100.00 - - -
Project
Other Self-
- 54.89 61.76 54.89 61.76 - - -
projects owned
Total
.00 30 35 66 99
(3).Provision made for the impairment of construction in progress in the current period
□Applicable √Not applicable
Other statements
√Applicable □Not applicable
The impairment value of the project under construction is RMB 4,635,059.96, which is the provision impairment of Liaoning Xiliu Yiwu China
Commodities City Commerce Phase I Project—Hotel Project.
Construction materials
(1).Engineering materials
□Applicable √Not applicable
(1).Bearer biological asset measured by cost
□Applicable √Not applicable
(2).Bearer biological asset measured by fair value
□Applicable √Not applicable
Other statements
□Applicable √Not applicable
□Applicable √Not applicable
√Applicable □Not applicable
Unit: RMB
Buildings and
Item Land Total
structures
I. Original book value
current period
(1) Lease in 27,475,019.10 - 27,475,019.10
current period
II. Accumulated
depreciation
current period
(1) Provision 32,077,371.07 3,041,814.36 35,119,185.43
current period
III. Depreciation provision
IV. Book value
Other notes:
Nil
(1).Overview of intangible assets
√Applicable □Not applicable
Unit: RMB
Software and
Item Land use right software Total
copyright
I. Original book value
period
(1) Purchase 2,456,129,105.67 10,299,498.80 2,466,428,604.47
(2) Internal R&D - 35,212,024.64 35,212,024.64
(3) Increase due to
- 79,292,510.23 79,292,510.23
mergers
(4) Other transfer -in 10,665,898.00 - 10,665,898.00
- 1,918,946.22 1,918,946.22
period
(1) Disposal - 1,918,946.22 1,918,946.22
II. Accumulated amortization
period
(1) Provision 160,844,157.04 10,723,906.07 171,568,063.11
- 173,000.00 173,000.00
period
(1) Disposal - 173,000.00 173,000.00
III. Depreciation provision
IV. Book value
At the end of the period, the percentage of the intangible assets formed through the
Company's internal research and development in the balance of intangible assets was 0.96%
(2).Land use right for which the ownership certificate has not been obtained
□Applicable √Not applicable
Other notes:
□Applicable √Not applicable
√Applicable □Not applicable
Unit: RMB
Decrease in the
Increase in the current period
Opening current period Closing
Item amount Internal Recognized as amount
Business
Balance development intangible Balance
merger
expenditure assets
The development project 6,359,814.02 29,404,851.33 - 35,212,024.64 552,640.71
for platform “chinagoods”
Kuaijietong Core - 2,516,395.62 1,591,959.54 - 4,108,355.16
Payment System
Total 6,359,814.02 31,921,246.95 1,591,959.54 35,212,024.64 4,660,995.87
Other statements
Nil
(1).Original book value of goodwill
√Applicable □Not applicable
Unit: RMB
Decrease in
Increase in the
the current
The name of the invested current period
Opening period
unit or matters forming Closing balance
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 goodwill impairment
√Applicable □Not applicable
Unit: RMB
Increase in the Decrease in the
The name of the invested unit or Opening current period current period Closing
matters forming goodwill balance balance
Provision Others Disposal Others
Xunchi Group - - - - - -
Total - - - - - -
(3).Information on the assets group or combination of assets groups to which the
goodwill belongs
√Applicable □Not applicable
In July 2022, the Group acquired 100% equity of Zhejiang Haier Network Technology Co.,
Ltd. and Zhejiang Haier Network Technology Co., Ltd.'s subsidiary Kuaijietong Payment
Service Co., Ltd. (hereinafter referred to as "Xunchi Group"), forming a goodwill of RMB
combinations involving enterprises not under common control.
The goodwill obtained from business combination has been allocated to the following
asset groups or combination of asset groups for impairment test:
Kuaijietong asset group
The goodwill of the Group is allocated to the Kuaijietong asset group for impairment
testing. The asset group is composed of Kuaijietong Payment Service Co., Ltd., a subsidiary of
Zhejiang Haier Network Technology Co., Ltd. Since the synergistic effect of the acquisition of
Xunchi Group is reflected in the Kuaijietong's subsidiaries, the main cash flow generated by the
Kuaijietong's subsidiaries is independent of other subsidiaries of the Group, and the Group
manages the production activities of the Kuaijietong's subsidiaries independently, so the
goodwill is allocated to the Kuaijietong asset group.
(4).Goodwill impairment test process, key parameters (e.g. growth rate in the forecast
period, growth rate in the stable period, profit margin, discount rate, forecast period
for the estimate of present value of future cash flows, if applicable) and recognition
of goodwill impairment loss
√Applicable □Not applicable
The book value of the Kuaijietong asset group was RMB 371,204,713.10. The recoverable
amount adopts the present value of the expected future cash flow of the asset group
combination, and is determined according to the cash flow forecast based on the 5-year
financial budget approved by the management. The pre-tax discount rate adopted by
management as of December 31, 2022 was 12.69%. The perpetual cash flow after five years
does not take into account the perpetual growth rate.
The following illustrates the key assumptions made by management in determining the
cash flow projections for the purposes of the goodwill impairment test:
Budgeted gross profit rate - The basis for determination is to increase the average gross
profit rate appropriately according to the expected market development on the basis of the
average gross profit rate achieved in the year before the budget year.
Discount rate —— The discount rate adopted is the pre-tax discount rate reflecting the
specific risk of the relevant asset group or asset group combination.
(5).Impact of goodwill impairment test
√Applicable □Not applicable
Based on the above impairment test results, the Group believes that there was no need to
make provision for impairment of goodwill on December 31, 2022
Other statements
□Applicable √Not applicable
√Applicable □Not applicable
Unit: RMB
Item Opening Increase in the Amortized Mergers of Closing
balance current period amount in the enterprises not under balance
current period common control
Decoration of 174,871,839.30 162,905,555.70 41,324,840.36 - 296,452,554.64
buildings and
structures
Advertising 13,312,537.13 19,029,712.48 21,943,715.48 74,882.12 10,473,416.25
facilities
Total 188,184,376.43 181,935,268.18 63,268,555.84 74,882.12 306,925,970.89
Other notes:
Nil
(1).Deferred income tax assets having not been offset
√Applicable □Not applicable
Unit: RMB
Closing balance Opening balance
Item Deductible Deferred Deductible Deferred
temporary income tax temporary income tax
difference assets difference assets
Provision for impairment of 18,828,747.02 4,707,186.78 18,766,810.88 4,691,702.72
assets
Unrealized profits of internal 1,094,793.10 273,698.28 1,094,793.10 273,698.28
transactions
Deductible losses 1,039,362.23 259,840.56 10,635,059.71 2,658,764.93
Recognized but unpaid liabilities 301,006,872.77 75,251,718.21 359,852,941.25 89,963,235.31
Overspent advertising cost 12,547,314.43 3,136,828.61 8,497,106.53 2,124,276.63
Right-of-use assets and lease 6,238,418.88 1,559,604.71 3,291,235.93 822,808.98
liabilities
Asset-related government 79,879,800.00 19,969,950.00 53,046,300.00 13,261,575.00
grants
Changes in fair value of other 122,472,837.68 30,618,209.42 87,763,868.16 21,940,967.04
non-current financial assets
Changes in fair value of trading 3,854,431.84 963,607.96 - -
financial assets
Change in fair value of other 54,424,627.13 13,606,156.78 - -
equity instruments investment
Total 601,387,205.08 150,346,801.31 542,948,115.56 135,737,028.89
(2).Deferred income tax liabilities having not been offset
√Applicable □Not applicable
Unit: RMB
Closing balance Opening balance
Item Taxable Deferred Taxable Deferred
temporary income tax temporary income tax
difference Debt difference Debt
Asset evaluation appreciation for 27,573,081.34 6,893,270.33 879,727.84 219,931.94
merger of the enterprises not
under common control
Change in fair value of other - - 88,562,537.79 22,140,634.45
equity instruments investment
Changes in fair value of other non- 352,597,807.91 88,149,451.98 357,773,989.11 89,443,497.28
current financial assets
Changes in fair value of trading - - 373,599.00 93,399.75
financial assets
Total 380,170,889.25 95,042,722.31 447,589,853.73 111,897,463.42
(3).Deferred income tax assets or liabilities presented in net amount after offsetting
□Applicable √Not applicable
(4).Breakdown of unrecognized deferred income tax assets
√Applicable □Not applicable
Unit: RMB
Item Closing balance Opening balance
Deductible temporary 13,856,330.50 485,392,932.16
difference
Deductible losses 857,701,806.92 1,090,714,817.48
Total 871,558,137.42 1,576,107,749.64
(5).The deductible loss in unrecognized deferred income tax assets will be due in the
following years
√Applicable □Not applicable
Unit: RMB
Year Closing amount Opening amount REMARKS
Total 857,701,806.92 1,090,714,817.48 /
Other notes:
√Applicable □Not applicable
The Group believes that, the deductible temporary differences including the
aforementioned provision for asset impairmentand the deductible losses of some subsidiaries
can be deducted in the foreseeable future, and it is expected that the Group will have sufficient
pre-tax profit for deduction during the reversing period. Therefore, the Group deemed it
necessary to recognize the above deferred income tax assets.
√Applicable □Not applicable
Unit: RMB
Closing balance Opening balance
Item Book balance Impairment Book balance Impairment
Book value Book value
provision provision
Prepaid land
transfer fees
Prepayment for
renovation works
and prepaid - - - 5,681,334.45 - 5,681,334.45
decoration rent
Prepaid
equity
- - - 67,395,000.00 - 67,395,000.00
transfer
consideration
Total 138,253,316.00 - 138,253,316.00 211,329,650.45 - 211,329,650.45
Other notes:
Nil
(1).Classification of short-term borrowings
√Applicable □Not applicable
Unit: RMB
Item Closing balance Opening balance
Credit loans 1,059,287,361.11 942,736,046.04
Total 1,059,287,361.11 942,736,046.04
Note to the classification of short-term borrowings:
Nil
(2).Overdue short-term borrowings
□Applicable √Not applicable
The important overdue and unpaid short-term loansare as follows:
□Applicable √Not applicable
Other statements
√Applicable □Not applicable
As of December 31, 2022, the range of the annual interest rates of the above-mentioned
borrowings was 2.35%-4.151% (December 31, 2021: 1.20%-3.915%).
□Applicable √Not applicable
□Applicable √Not applicable
(1).Presentation of notes payable
□Applicable √Not applicable
(1).Presentation of accounts payable
√Applicable □Not applicable
Unit: RMB
Item Closing balance Opening balance
Accounts payable for 881,114,454.44 301,995,294.63
market and auxiliary works
projects
Accounts payable for real 216,635,705.68 33,317,557.65
estate projects
Trade payables 58,894,383.76 72,330,560.78
Accounts payable for 17,465,421.40 58,722,226.25
procurement for the hotel
project
Others 17,204,438.87 26,994,789.71
Total 1,191,314,404.15 493,360,429.02
(2).Important accounts payable with age over 1 year
√Applicable □Not applicable
Unit: RMB
Reasons for not being paid
Item Closing balance
or carried forward
Warranty premium 11,095,956.69 Under warranty or not billed
Total 11,095,956.69 /
Other statements
√Applicable □Not applicable
The accounts payable are free of interest and are generally paid within two months after
receipt of the payment notice or based on the project contracts and progress of projects. The
balance payments for the projects are made after completion of settlement.
(1). Presentation of advances from customers
√Applicable □Not applicable
Unit: RMB
Item Closing balance Opening balance
Advance receipt of 639,009,194.79 -
merchant payment
Rental advances 236,525,969.44 142,605,296.83
Others 10,458,105.25 10,961,014.30
Total 885,993,269.48 153,566,311.13
(2). Important advances with the age over 1 year
□Applicable √Not applicable
Other statements
√Applicable □Not applicable
Since the advances from customers are mainly from the advance use fees for shops, as of
December 31, 2022, there was no single large advance from customers with an age of more
than 1 year.
(1).Overview of contract liabilities
√Applicable □Not applicable
Unit: RMB
Item Closing balance Opening balance
Advances from customers 2,982,431,412.43 2,996,965,006.91
for use fee of shops
Advances from customers 653,697,926.33 762,448,893.76
for goods
Advances from customers 228,163,127.56 66,129,057.15
for advertising fee
Advances from customers 31,199,591.78 178,756,399.38
for housing purchase
Advances from customers 17,747,693.18 14,150,457.59
for use fee of networking
cables
Advances from customers 11,119,366.97 17,997,985.07
for loyalty of brands
Others 66,678,903.31 21,971,424.98
Total 3,991,038,021.56 4,058,419,224.84
(2).Amount of and reasons for material changes to book value during the reporting
period
□Applicable √Not applicable
Other notes:
□Applicable √Not applicable
(1).Presentation of payroll payable
√Applicable □Not applicable
Unit: RMB
Decrease in
Increase in the Closing
Item Opening balance the current
current period balance
period
I. Short-term compensation 241,452,764.09 431,850,793.0 493,601,491.4 179,702,065.7
II. Post employment benefits 2,511,991.29 28,857,547.27 27,936,289.79 3,433,248.77
– defined contribution plan
III. Severance benefits - 704,729.26 704,729.26 -
Total
(2).Presentation of short-term compensation
√Applicable □Not applicable
Unit: RMB
Decrease in
Increase in the Closing
Item Opening balance the current
current period balance
period
and subsidy 1 1 9
In which: contribution to 1,101,887.73 15,915,718.41 15,923,443.03 1,094,163.11
medical insurance scheme
Contribution to work- 28,926.87 574,342.48 484,309.15 118,960.20
related injury insurance
scheme
Contribution to 108,132.25 843,038.10 892,688.57 58,481.78
maternity insurance scheme
fund and employee education
fund
Total
(3).Presentation of defined contribution plan
√Applicable □Not applicable
Unit: RMB
Increase in Decrease in
Opening Closing
Item the current the current
balance balance
period period
basic endowment
insurance scheme
unemployment
insurance scheme
Total 2,511,991.29 28,857,547.27 27,936,289.79 3,433,248.77
Other notes:
□Applicable √Not applicable
√Applicable □Not applicable
Unit: RMB
Item Closing balance Opening balance
VAT 56,402,798.28 83,766,540.18
Business tax -240,013.55 -240,013.55
Urban maintenance and 2,521,434.47 4,687,093.90
construction tax
Corporate income tax 6,138,842.64 279,485,623.04
Individual income tax 1,275,355.73 1,260,803.19
Land appreciation tax 66,652.63 2,780,327.20
Real estate tax 84,142,438.27 171,138,711.99
Land use tax 60,454,035.23 10,612,069.24
Others 4,236,880.71 6,005,392.15
Total 214,998,424.41 559,496,547.34
Other notes:
As at December 31, 2022, the details of the main taxes prepaid by the Group are as
follows: Unit: Yuan 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
Presentation of items
√Applicable □Not applicable
Unit: RMB
Item Closing balance Opening balance
Other payables 1,325,596,105.43 1,908,742,835.15
Total 1,325,596,105.43 1,908,742,835.15
Other notes:
□Applicable √Not applicable
Interest payable
(1).Presentation by category
□Applicable √Not applicable
Dividend payable
(1).Presentation by category
□Applicable √Not applicable
Other payables
(1). Presentation of other payables by nature
√Applicable □Not applicable
Unit: RMB
Item Closing balance Opening balance
Withholdings, deposit and 490,392,164.12 598,819,336.72
margin
Pending investment refunds 429,637,665.00 877,464,692.76
Operating expenses 284,502,534.04 268,576,640.89
payable
Restricted stock incentive 120,092,075.00 137,440,900.00
plan
Yiwugou’s bank reserve - 25,823,767.03
fund
Others 971,667.27 617,497.75
Total 1,325,596,105.43 1,908,742,835.15
(2). Important other payables with account age over 1 year
□Applicable √Not applicable
Other notes:
√Applicable □Not applicable
Other payables mainly come from deposits for commercial spaces and bid deposits for
engineering projects, with small individual amounts, so there were no important other payables
with an age of more than 1 year on December 31, 2022.
□Applicable √Not applicable
√Applicable □Not applicable
Unit: RMB
Item Closing balance Opening balance
Long-term borrowings 345,934.69 100,918,614.59
within one year
Bonds payable due within 1 61,508,191.79 3,552,960,829.66
year
Lease liabilities due within 1 24,998,166.53 10,362,478.83
year
Total 86,852,293.01 3,664,241,923.08
Other notes:
Nil
Other current liabilities
√Applicable □Not applicable
Unit: RMB
Item Closing balance Opening balance
Short-term financing notes 3,012,256,419.90 3,009,756,921.11
payable
Payment business reserve 397,125,623.54 -
To-be-reported output tax 59,992,173.80 67,323,844.72
Dividend payable to to-be- 2,449,697.11 2,220,922.02
recognized accounts
Dividend announced but 2,083,112.65 2,083,112.65
not collected before listing
Total 3,473,907,027.00 3,081,384,800.50
Changes in short-term bonds payable:
√Applicable □Not applicable
Unit: RMB
Interest
Bond Face Issuing Bond Issuing Opening amount Current period accrued Premium/discount Current period Closing amount
Name value Date Term Amount Balance Issuing based on face amortization Repayment Balance
value
Super-short-
term Oct 27, 268
commercial 2021 days
paper
Super-short-
term Nov 15, 279
commercial 2021 days
paper
Super-short-
term Nov 30, 269
commercial 2021 days
paper
Super-short-
term Jun 29, 30
commercial 2022 days
paper
Super-short-
term Jul 27, 61
commercial 2022 days
paper
Super-short-
term Aug 10, 79
commercial 2022 days
paper
Super-short-
term Aug 24, 91
commercial 2022 days
paper
Super-short-
term Sep 21, 240
commercial 2022 days
paper
Super-short-
term Oct 26, 240
commercial 2022 days
paper
Super-short-
term Nov 22,
commercial 2022
paper
Total / / / 10,000,000,000.00 3,009,756,921.11 7,000,000,000.00 78,934,794.53 3,129,152.00 7,077,897,781.07 3,012,256,419.90
Other notes:
√Applicable □Not applicable
As of December 31, 2022, the range of annual interest rates of the above-mentioned short-term financing bonds was 1.75%-3.00% (December
(1). Classification of long-term borrowings
√Applicable □Not applicable
Unit: RMB
Item Closing balance Opening balance
Credit loans 404,500,000.00 771,250,000.00
Total 404,500,000.00 771,250,000.00
Notes on the classification of long-term borrowings:
Nil
Other notes, including the interest rate range:
√Applicable □Not applicable
As of December 31, 2022, the range of annual interest rates of the above borrowings was
(1).Bonds payable
√Applicable □Not applicable
Unit: RMB
Item Closing balance Opening balance
Bonds payable 3,497,416,819.75 -
Total 3,497,416,819.75 -
(2).Changes in bonds payable: (excluding preferred stocks, perpetual bonds and other financial instruments classified as financial liabilities)
√Applicable □Not applicable
Unit: RMB
Openi
Transferred
Fac Bon ng Interest Current
Issui Current Premium/disc in this year Closing
Bond e d Issuing amoun accrued period
ng period ount and due amount
Name valu Ter Amount t based on Repaym
Date Issuing amortization within one Balance
e m Balanc face value ent
year
e
MTN Feb
MTN Mar
MTN Jul
Corpor Sep
ate 100 1, 3Y - 54,489.46 -
bonds 2022
Corpor Sep
ate 100 22, 3Y - 39,429.10 -
bonds 2022
Total / / / - 624,366.93 -
(3).Conditions and time for the conversion of convertible corporate bonds
□Applicable √Not applicable
(4).Notes on other financial instruments classified as financial liabilities
Basic information of other financial instruments such as preferred shares and perpetual bonds
outstanding at the end of the reporting period
□Applicable √Not applicable
Changes in other financial instruments such as preferred shares and perpetual bonds
outstanding at the end of the reporting period
□Applicable √Not applicable
The basis for classifying other financial instruments as financial liabilities:
□Applicable √Not applicable
Other notes:
□Applicable √Not applicable
√Applicable □Not applicable
Unit: RMB
Item Closing balance Opening balance
Undiscounted amount of 320,577,235.56 334,659,632.28
finance lease payables
Unrecognized financing -88,955,333.06 -118,354,479.52
charges
Lease liabilities due within 1 -24,998,166.53 -10,362,478.83
year
Total 206,623,735.97 205,942,673.93
Other notes:
Note: The Group uses the incremental borrowing rate of 2.78%-8.01% as the discount rate
to calculate book value to determine the lease liability and measure right-of-use assets.
Presentation of items
□Applicable √Not applicable
Other notes:
□Applicable √Not applicable
Long-term accounts payable
(1).Long-term payables by nature
□Applicable √Not applicable
Special accounts payable
(1).Special payables by nature
□Applicable √Not applicable
□Applicable √Not applicable
√Applicable □Not applicable
Unit: RMB
Item Opening balance Closing balance Cause of formation
Pending L/C losses 110,620,306.10 110,620,306.10
Total 110,620,306.10 110,620,306.10 /
Other notes, including the notes on related important assumptions and estimates of important
estimated liabilities:
In 2017, the letters of credit issued by the Group’s subsidiary based on international trade
agency business became overdue successively due to the principals’ failure to make payments
as agreed. Based on the principle of prudence, the Group recognized estimated liabilities for
the estimated potential losses. On Apr 30, 2018, the Group lost control over the subsidiary due
to its disposal of some equity in the subsidiary. As of December 31, 2022, the matter was
under processing.
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 78,170,103.62 26,833,500.00 1,421,473.68 103,582,129.94
government grants
Total 78,170,103.62 26,833,500.00 1,421,473.68 103,582,129.94 /
Items involving government grants:
√Applicable □Not applicable
Unit: RMB
Amount
Increase in recognized Asset-
Opening grant amount in other Closing related or
Liability item
balance in the current income in balance income-
period the current related
period
Subsidy for
Asset-
service industry 5,243,445.95 - 266,666.64 4,976,779.31
related
cluster project
Interest subsidy
for the
international
Asset-
exhibition 19,880,357.67 - 1,154,807.04 18,725,550.63
related
center
construction
fund
Subsidy for
Yiwu
Asset-
Comprehensive 53,046,300.00 26,833,500.00 - 79,879,800.00
related
Bonded Zone
Project
Total 78,170,103.62 26,833,500.00 1,421,473.68 103,582,129.94
Other notes:
□Applicable √Not applicable
□Applicable √Not applicable
√Applicable □Not applicable
Unit: RMB
Increase or decrease in the current period (+, -)
Provident
Opening balance Issuing Closing balance
Bonus funds
New Others Sub-total
shares Conversion
shares
into shares
Total 5,491,274,176.00 - - - - - 5,486,074,176.00
number 5,200,000.00 5,200,000.00
of
shares
Other notes:
After consideration and approval at the 51st meeting of the eighth Board of Directors and
the 14th meeting of the eighth Board of Supervisors of the Group held on July 19, 2022, in
view of the fact that among the original incentive objects, 45 no longer worked in the Company
due to their position adjustments or had resigned due to personal reasons, according to the
relevant regulations of the "Incentive Plan" and the authorization of the Fifth Provisional
General Meeting of Shareholders in 2020, the Board of Directors of the Company decided to
repurchase and cancel a total of 5,200,000 restricted shares granted to the above 45 people
but yet to be released. The Company would repurchase and cancel the restricted shares held
by the above-mentioned 45 people that had been granted but not yet been released at the sum
of interest calculated at RMB 2.812 per share or RMB 2.317 per share plus the fixed deposit
interest rate announced by the People's Bank of China for the same period. The total amount
of restricted stock repurchase funds this time was RMB 14.9341 million. The above-mentioned
repurchase funds would all be paid with the Company's own funds, and the cancellation would
be completed on October 21, 2022.
After this restricted stock repurchase, the share capital decreased by RMB 5,200,000 this
year.
(1).Basic information of other financial instruments such as preferred shares and
perpetual bonds outstanding at the end of the reporting period
□Applicable √Not applicable
(2).Changes in other financial instruments such as preferred shares and perpetual bonds
outstanding at the end of the reporting period
□Applicable √Not applicable
Changes in other equity instruments in the current period, the reasons therefor and the basis
for relevant accounting treatment:
□Applicable √Not applicable
Other notes:
□Applicable √Not applicable
√Applicable □Not applicable
Unit: RMB
Decrease in
Increase in the
Item Opening balance the current Closing balance
current period
period
Capital surplus (share 1,559,964,197.11 - 10,055,000.00
premium)
Stock incentive 33,414,344.66 29,691,919.00 - 63,106,263.66
Others 38,130,573.19 - - 38,130,573.19
Total 1,631,509,114.96 29,691,919.00 10,055,000.00 1,651,146,033.96
Other notes including those on the changes in the current period and the reasons therefor:
During the reporting period, the capital reserve-equity incentive increase was due to the
Company’s confirmation of share-based payment expenses of RMB 29,691,919.00 during the
waiting period, and the decrease was due to the Company’s repurchase and cancellation of
restricted stock write-offs of RMB 10,055,000.00 for those who did not meet the unlocking
conditions, which were included in this item accordingly.
√Applicable □Not applicable
Unit: RMB
Increase in Decrease in
Opening Closing
Item the current the current
balance balance
period period
Restricted stock 137,494,800.00 - 18,011,125.00
incentive plan
Total 137,494,800.00 - 18,011,125.00 119,483,675.00
Other notes including those on the changes in the current period and the reasons therefor:
Because some incentive objects resigned or left office for personnel transfer during the
waiting period and thus no longer had the incentive qualification, the Company repurchased
the restricted shares for cancellation and offset the corresponding treasury shares. For details,
please refer to Note VII. 53 Share capital.
√Applicable □Not applicable
Unit: RMB
Amount in the current period
Opening Closing
Current income Amount after tax
Item amount Less: income amount
amount before attributable to
Balance tax Balance
tax parent company
I. Other
comprehensive
income that cannot be 66,421,903.33 -35,746,791.23 -107,240,373.69 -40,818,470.36
reclassified into profit
or loss
Change in fair value
of other equity -
instruments 142,987,164.92
investment
II. Other
comprehensive -5,571,168.31 22,381,165.07 - 22,381,165.07 16,809,996.76
income to be
reclassified into profit
or loss
Other comprehensive
income that can be
transferred into profit - 4,060,531.46 - 4,060,531.46 4,060,531.46
and loss under equity
method
Difference arising
from the translation of
-5,571,168.31 18,320,633.61 - 18,320,633.61 12,749,465.30
foreign currency
financial statements
Total other
comprehensive 60,850,735.02 -35,746,791.23 -84,859,208.62 -24,008,473.60
income
Other notes, including those on the adjustment of the initially recognized amount of hedged
items converted from the effective part of profits or losses from cash flow hedging:
Nil
□Applicable √Not applicable
√Applicable □Not applicable
Unit: RMB
Item Opening balance Increase in the Decrease in Closing balance
current period the current
period
Statutory 1,453,325,098.91 110,873,341.23 - 1,564,198,440.14
surplus reserve
Discretionary 40,195,855.68 - - 40,195,855.68
surplus reserve
Others 11,688,840.91 - - 11,688,840.91
Total 1,505,209,795.50 110,873,341.23 - 1,616,083,136.73
Notes on surplus reserves, including those on the changes in the current period and the
reasons therefor:
According to the “Company Law” and the Company’s articles of association, the Company
accrued a statutory surplus reserve in terms of 10% of its net profit. Statutory surplus reserve
If the amount of statutory surplus reserve accrued reaches more than 50% of the Company's
registered capital, the accrual may cease.
The Company can accrue free surplus reserve after accruing the statutory surplus
reserve. With the approval, the free surplus reserve can be used to make up for previous
losses or to increase share capital
.
√Applicable □Not applicable
Unit: RMB
Item Current period Previous period
Undistributed profits at the end of the previous 6,059,496,846.85 5,168,298,206.50
reporting period before adjustment
Opening undistributed profits after adjustment 6,059,496,846.85 5,168,298,206.50
Plus: net profits attributable to shareholders of 1,104,719,091.71 1,334,095,906.95
the parent company in the current period
Less: withdrawal of statutory surplus reserve 110,873,341.23 140,951,986.92
General risk reserve 1,038,991.13 -
Common share dividend payable 400,863,014.85 301,945,279.68
Closing undistributed profits 6,651,440,591.35 6,059,496,846.85
Details of the adjustment of opening undistributed profits:
with the Accounting Standards for Enterprises and related new provisions amounted to RMB0.
RMB0.
amounted to RMB0.
common control amounted to RMB0.
RMB0.
(1).Overview of operating revenue and operating cost
√Applicable □Not applicable
Unit: RMB
Amount in the current period Amount in the previous period
Item
Revenue Cost of sales Revenue Cost of sales
Main 7,326,780,315.71 6,335,697,349.65 5,586,058,113.32 3,870,814,652.77
business
Other 292,913,426.89 117,212,480.31 447,784,859.63 156,728,485.79
businesses
Total 7,619,693,742.60 6,452,909,829.96 6,033,842,972.95 4,027,543,138.56
(2).Revenue generated from contracts
√Applicable □Not applicable
Unit: RMB
Classified by type of contract Total
Types of goods
Sales of goods 5,164,806,897.49
The use of shops in the Commodity City and 1,466,324,121.47
its supporting services
Hotel accommodation and catering services 195,953,697.59
Revenue from use fees 52,315,023.80
Other services 504,563,377.32
Classified by business area
Chinamainland 7,383,963,117.67
Classified by contract period
Revenue confirmed at certain time point
Sales of goods 5,164,806,897.49
Hotel catering services 109,676,970.73
Other services 347,884,728.81
Revenue confirmed during certain time
period
The use of shops in the Commodity City 1,466,324,121.47
and its supporting services
Hotel accommodation service 86,276,726.86
Revenue from use fees 52,315,023.80
Other services 156,678,648.51
Total 7,383,963,117.67
Description of the income from contracts:
√Applicable □Not applicable
The income recognized in the current year and included in the opening book value of
contractual liabilities is as follows:
Unit: RMB
Type of contract Current period
Sales of goods 897,026,499.46
The use of shops in the Commodity City and its
supporting services
Hotel accommodation service 11,260,471.19
Other services 97,370,720.14
Total 2,471,981,812.26
(3).Contract performance obligations
√Applicable □Not applicable
Sales of goods
The performance obligation is fulfilled when the goods are delivered to the customer, and
the contract price is collected in advance before the goods are delivered to the customer or
received upon the delivery of the goods.
The use of shops in the Commodity City and its supporting services
The contractual performance obligation is fulfilled when providing the use of shops in the
Commodity City and the supporting services for business. For the use of shops in the
Commodity City and the supporting services for business, the progress of contract
performance is determined based on the number of using days of the shops. Customers
usually need to pay in advance before the use of shops in the Commodity City and the
supporting services for business are provided.
Hotel accommodation business
The performance obligation is fulfilled when providing hotel accommodation services. For
the hotel accommodation business, the progress of contractual performance is determined
based on the number of days of stay. For hotel accommodation services, a partial deposit is
collected from the customer first, and the remaining contract price is usually collected upon the
completion of the hotel accommodation services.
Hotel catering business
The performance obligation is fulfilled when the hotel catering services are provided. The
contract price for hotel catering services is usually charged when the hotel catering services
are performed.
Fixed -time paid funding services
The performance obligation is fulfilled when the fixed-time paid funding service is
provided. For the fixed-time paid funding service, the progress of contractual performance is
determined based on the number of using days the fund. For the fixed-time paid funding
service, the contract price is usually charged regularly as agreed in the contract.
(4).Amortization to remaining contract performance obligations
□Applicable √Not applicable
Other notes:
As of December 31, 2022, the transaction price allocated to the remaining contract
performance obligations was RMB 3,991,038,021.56. The Group expects that this amount will
be recognized as an income in the next 5 years with the progress of the relevant service.
√Applicable □Not applicable
Unit: RMB
Amount in the current period Amount in the previous
Item
period
Real estate tax 118,168,544.44 118,182,369.56
Land use tax 60,280,050.01 11,029,363.42
Stamp duty 6,790,568.05 7,188,521.64
Urban maintenance and 6,479,070.41 12,672,573.75
construction tax
Education surcharge 2,800,755.18 5,476,928.89
Land appreciation tax 2,035,123.43 3,349,307.04
Local education surcharge 1,867,176.45 3,651,285.86
Cultural undertaking 470,626.83 -1,440.00
development fee
Business tax 13,549.21 206,842.50
Travel tax 2,040.00 3,456.16
Total 198,907,504.01 161,759,208.82
Other notes:
Nil
√Applicable □Not applicable
Unit: RMB
Amount in the current Amount in the previous
Item
period period
Marketing expenses 89,853,590.72 115,754,997.02
Security and insurance
expenses
Advertising expenses 31,743,030.06 45,648,963.60
Depreciation and amortization 17,375,946.53 950,256.30
Water, electricity and fuel
expenses
Others 17,909,872.89 2,733,852.99
Total 197,679,981.09 204,745,974.57
Other notes:
Nil
√Applicable □Not applicable
Unit: RMB
Item Amount in the current Amount in the previous
period period
Employee and uniform expenses 317,219,351.11 326,368,947.18
Depreciation and amortization 96,689,173.47 37,743,155.62
Start-up fee 40,895,776.63 16,102,068.61
Intermediary expenses 19,137,790.40 23,480,815.21
Office expenses 14,118,875.61 17,616,097.42
Travel expenses 2,365,796.11 4,761,152.09
Others 39,039,507.38 27,471,191.67
Total 529,466,270.71 453,543,427.80
Other notes:
Nil
√Applicable □Not applicable
Unit: RMB
Item Amount in the current Amount in the previous
period period
Labor cost 8,829,647.10 6,076,406.11
Depreciation and amortization 3,981,240.06 122,541.44
Technology development fee 4,449,479.90 650,354.19
Others 116,794.82 3,459,500.10
Total 17,377,161.88 10,308,801.84
Other notes:
Nil
√Applicable □Not applicable
Unit: RMB
Item Amount in the current Amount in the previous
period period
Interest expenses 280,924,664.39 341,313,765.39
Amortization of commercial paper 4,370,938.50 4,735,876.54
discount
Amortization of discounted bonds - -
payable
Less: interest income -132,216,250.44 -177,964,682.68
Less:capitalized amount of interest -1,860,833.33 -10,245,795.84
Foreign exchange profits or losses -17,091,915.89 5,841,186.27
Amortization of unrecognized financing 13,010,514.37 12,864,558.43
expenses
Others 2,011,772.20 3,366,705.59
Total 149,148,889.80 179,911,613.70
Other notes:
The capitalized amount of borrowing costs has been included in the construction in
progress.
√Applicable □Not applicable
Unit: RMB
Item Amount in the current Amount in the previous
period period
Development Awards
Comprehensive Bonded Area 5,000,000.00 -
Enterprise Development Support
Policy Subsidy
Additional deduction of input tax 4,814,300.56 6,244,434.23
Subsidies for energy saving and 4,000,000.00 4,863,474.00
consumption reduction
Credit center platform construction 3,500,000.00 -
and operation and maintenance
subsidies
Special incentive funds for modern 2,300,000.00 2,682,704.00
supply chain system innovation
Yiwu Fair Construction Subsidy 2,000,000.00 -
Interest subsidy for the international 1,154,807.04 1,154,807.04
exhibition center construction fund
Job stabilization and job expansion 1,461,352.01 -
subsidies
Government subsidy for service 266,666.64 266,666.64
industry cluster for 2011
Industrial Cluster Cross-border E- - 1,879,093.83
commerce Development Pilot
Subsidy
Reward for "three collections and - 1,084,878.00
three rebates"
Refund of social security contribution - 14,595.20
Others 4,426,356.93 5,366,295.07
Total 38,802,684.45 23,556,948.01
Other notes:
Nil
√Applicable □Not applicable
Unit: RMB
Amount in the Amount in the
Item
current period previous period
Income from long-term equity investment 996,108,417.69 599,180,325.58
calculated with the equity method
Investment income from held-for-trading financial 448,207.50 -
assets during holding period
Dividend income from other equity instruments 12,542,733.80 12,542,733.80
investment during holding period
Interest income from debt investment during 79,561.64 -
holding period
Investment income from disposal of held-for- 1,841,491.90 67,265.72
trading financial assets
Income acquired from other non-current financial 26,916,977.43 20,833,465.43
assets during the holding period
Investment income from disposal of other non- 2,118,067.24 -
current financial assets
Investment income from disposal of wealth 1,469,407.05 1,604,200.49
management products
Total 1,041,524,864.25 634,227,991.02
Other notes:
Nil
□Applicable √Not applicable
√Applicable □Not applicable
Unit: RMB
Sources of income from changes Amount in the current Amount in the previous
in fair value period period
Held-for-trading financial assets -3,886,171.10 -1,332,503.10
Other non-current financial -1,376,305.49 8,563,824.94
assets
Total -5,262,476.59 7,231,321.84
Other notes:
Nil
√Applicable □Not applicable
Unit: RMB
Amount in the current Amount in the previous
Item
period period
Bad debt loss of accounts 2,024,409.36 6,343,395.56
receivable
Loss for bad debts of other -209,404.41 956,299.11
receivables
Total 1,815,004.95 7,299,694.67
Other notes:
Nil
□Applicable √Not applicable
√Applicable □Not applicable
Unit: RMB
Item Amount in the current period Amount in the previous
period
Income from disposal of -941,780.66 -
property, plant and
equipment
Income from disposal of - 76,006.41
intangible assets
Total -941,780.66 76,006.41
Other notes:
Nil
Information of non-operating incomes
√Applicable □Not applicable
Unit: RMB
Amount
recognized in
Amount in the Amount in the profit or loss of
Item
current period previous period nonrecurring
items for the
current period
Government grants not 239,122.00 2,950.00 239,122.00
related to the daily
activities of the Company
Incomes from liquidated 4,025,760.93 5,552,161.47 4,025,760.93
damages
Others 3,234,387.95 211,260.99 3,234,387.95
Total 7,499,270.88 5,766,372.46 7,499,270.88
Government grant included in current profit or loss
√Applicable □Not applicable
Unit: RMB
Asset-related
Amount in the Previous
Grant items or income-
current period amount
related
Financial subsidies for the 200,000.00 - Income-related
development of the digital
entertainment industry
Epidemic subsidy 39,122.00 - Income-related
Yiwu Comprehensive Bonded Zone - 1,750.00 Income-related
Enterprise Development Support
Policy
Subsidy from Yiwu Market - 1,200.00 Income-related
Development Committee
Total 239,122.00 2,950.00
Other notes:
□Applicable √Not applicable
√Applicable □Not applicable
Unit: RMB
Amount
recognized in
Amount in the Amount in the profit or loss of
Item
current period previous period nonrecurring
items for the
current period
Total loss for disposal of 188,806.68 637,423.30 188,806.68
non-current assets
Including: loss for disposal 188,806.68 637,423.30 188,806.68
of property, plant and
equipment
Income from disposal - - -
of intangible assets
External donation 3,393,094.06 1,107,540.00 3,393,094.06
Others 622,929.19 1,150,965.46 622,929.19
Total 4,204,829.93 2,895,928.76 4,204,829.93
Other notes:
Nil
(1).Overview of income tax expenses
√Applicable □Not applicable
Unit: RMB
Amount in the current Amount in the previous
Item
period period
Current income tax expenses 49,512,382.53 360,286,304.87
Deferred income tax expenses -3,306,682.14 -32,761,066.92
Total 46,205,700.39 327,525,237.95
(2).Adjustment process of accounting profits and income tax expenses
√Applicable □Not applicable
Unit: RMB
Item Amount in the
current period
Profits before tax 1,149,806,832.60
Income tax expenses calculated at the statutory/applicable tax rate 287,451,708.15
Impact of different tax rates applied by subsidiaries 1,573,320.93
Effect of adjusting income tax of previous period -18,741,155.49
Effect of non-taxable income -3,696,884.99
Effect of non-deductible costs, expenses and losses 1,275,710.21
Effect of using deductible losses of unrecognized deferred income tax -21,922,246.14
assets in previous period
Effect of deductible temporary differences or deductible losses of 49,354,324.47
unrecognized deferred income tax assets in the current period
Profits or losses attributable to joint ventures and associates -249,089,076.75
Income tax expenses 46,205,700.39
Other notes:
□Applicable √Not applicable
√Applicable □Not applicable
For details, please refer to Note 57. Other comprehensive income
(1).Other cash receipts relating to operating activities
√Applicable □Not applicable
Unit: RMB
Item Amount in the current Amount in the
period previous period
Deposit and margin received 231,395,229.79 212,256,986.10
Bank deposit interest income received 131,393,012.77 177,964,682.68
Government grants received 64,453,832.77 63,576,554.04
Liquidated damages received 4,025,760.93 5,766,372.46
Bank reserve received 2,217,933.25 2,600,157.57
Others 1,230,207.23 63,243,577.73
Total 434,715,976.74 525,408,330.58
Notes on other cash receipts relating to operating activities:
Nil
(2).Other cash payments relating to operating activities
√Applicable □Not applicable
Unit: RMB
Item Amount in the current Amount in the previous
period period
Major expenses paid 270,289,936.11 319,328,171.57
Deposit and security paid 219,259,625.81 157,057,755.29
Repair costs and expenses paid 62,055,970.52 120,690,572.43
Others 3,728,976.21 1,107,540.00
Total 555,334,508.65 598,184,039.29
Notes on other cash payments relating to operating activities:
Nil
(3).Other cash receipts relating to investing activities
√Applicable □Not applicable
Unit: RMB
Item Amount in the current Amount in the previous
period period
Received funding from joint 2,924,599,831.00
ventures and their subsidiaries 900,328,548.00
Recovered pending investment 822,300,000.00
refunds 358,879,565.00
Total 1,259,208,113.00 3,746,899,831.00
Notes on other cash receipts relating to investing activities:
Nil
(4).Other cash payments relating to investing activities
√Applicable □Not applicable
Unit: RMB
Item Amount in the current Amount in the previous
period period
Financial subsidy paid to the joint 104,456,205.00
venture in Dubai 41,772,885.00
Paid the financial assistance for 1,372,000,000.00
Guoshen Shangbo -
Financial subsidy paid to 138,160,000.00
Tonghui Shangbo -
Payment of financial assistance 17,845,800.00
to Handing Shangbo -
Total 41,772,885.00 1,632,462,005.00
Other cash paid related to investment activities:
Nil
(5).Other cash receipts relating to financing activities
□Applicable √Not applicable
(6).Other cash payments relating to financing activities
√Applicable □Not applicable
Unit: RMB
Item Amount in the current Amount in the previous
period period
Lease payments paid 35,194,742.95 37,531,483.07
Restricted stock cancellation 2,827,300.00
payment paid 14,934,064.64
Total 50,128,807.59 40,358,783.07
Other cash paid related to financing activities:
Nil
(1).Supplements to cash flow statement
√Applicable □Not applicable
Unit: RMB
Amount in the Amount in the
Supplements
current period previous period
Net profits 1,103,601,132.21 1,329,168,586.02
Plus: provision for impairment of assets - -
Loss of impairment of credit 1,815,004.95 7,299,694.67
Depreciation of fixed assets, depletion of oil
and gas assets and depreciation of bearer 360,066,867.91 391,927,445.01
biological assets
Amortization of right-of-use assets 35,119,185.43 29,280,433.57
Amortization of intangible assets 171,380,383.22 140,522,789.88
Depreciation and amortization of investment
real estate
Amortization of long-term prepaid expenses 63,268,555.84 62,397,515.62
Loss from disposal of fixed assets, intangible
assets and other long-term assets (gains 564,167.30 -76,006.41
indicated by “-”)
Loss from fixed assets retirement (gains
indicated by “-”)
Loss from changes in fair value (gains
indicated by “-”)
Financial expenses (gains indicated by “-”) 300,670,345.73 336,909,155.82
Investment loss (gains indicated by “-”) -1,093,839,888.05 -769,582,290.36
Decrease in deferred income tax assets
-1,003,615.63 -36,072,700.05
(increase indicated by “－”)
Increase in deferred income tax liabilities
-2,303,066.49 -1,705,460.37
(decrease indicated by “－”)
Decrease in inventory (increase indicated by
-2,892,260.80 -8,180,635.66
“－”)
Decrease in operating receivables (increase
indicated by “－”)
Increase in operating payables (decrease
indicated by “－”)
Others - -
Net cash flow from operating activities 1,400,090,713.77 2,033,082,507.76
payment:
Closing balance of cash 1,981,200,941.64 4,006,468,325.47
Less: opening balance of cash 4,006,468,325.47 2,032,642,871.63
Add: closing balance of cash equivalents
Less: opening balance of cash equivalents
Net increase in cash and cash equivalents -2,025,267,383.83 1,973,825,453.84
(2).Net cash paid for acquisition of subsidiaries in the current period
√Applicable □Not applicable
Unit: RMB
Amount
Cash or cash equivalents paid in the current period for 368,062,500.00
business combination occurred in the current period
Less: Cash and cash equivalents held by the Company on 55,445,535.89
the date of acquisition
Net cash paid by subsidiaries 312,616,964.11
Other notes:
On June 16, 2021, the Company signed the "Equity Transfer Agreement" with Haier
Group (Qingdao) Financial Holdings Co., Ltd. (hereinafter referred to as "Haier Financial
Holdings"), agreeing that the Company would acquire 100% equity of Haier Network
Technology Co., Ltd. (Hereinafter referred to as "Haier Network") and 100% equity of
Kuaijietong Payment Service Co., Ltd. (hereinafter referred to as "Kuaijietong"), a subsidiary of
Zhejiang Haier Network Technology Co., Ltd. at RMB 449,300,000.00.
On June 25, 2021, the Company paid the first delivery payment of RMB 67,395,000.00.
On December 3, 2021, as the prerequisites for the delivery of the second and third phases
under the "Equity Transfer Agreement" were not met as scheduled, the Company signed the
"Supplementary Agreement to the Equity Transfer Agreement" with Haier Financial Holdings,
Haier Network and Kuaijietong, agreeing that if all the delivery was finally completed, Haier
Financial Holdings would compensate the Company for losses of RMB 5,000,000.00, and the
equity transfer consideration would be adjusted to RMB 444,300,000.00 in the end.
On June 15, 2022, the Company signed the "Fine Bearing Agreement" with Haier
Financial Holdings, Haier Network and Kuaijietong, agreeing that Haier Financial Holdings
would bear the fine of RMB 8,842,500.00 before the completion of delivery of Kuaijietong.
On July 26, 2022, the Company signed the "Four-Party Agreement" with Haier Financial
Holdings, Haier Network and Kuaijietong, agreeing that the fine of RMB 8,842,500.00 and the
equity transfer payment to be borne by Haier Financial Holdings should be settled on a net
basis. The actual net cash paid for acquisition of subsidiaries was RMB 312,616,964.11
(3).Net cash received from disposal of subsidiaries in the current period
□Applicable √Not applicable
(4).Composition of cash and cash equivalents
√Applicable □Not applicable
Unit: RMB
Item Closing balance Opening balance
I. Cash 1,981,200,941.64 4,006,468,325.47
In which: cash on hand 220,471.11 154,264.94
Bank deposit that can be used for payment
at any time
Other monetary capital that can be used for
payment at any time
II. Cash equivalents
Including: bond investments due within three
months
III. Closing balance of cash and cash
equivalents
Including:cash and cash equivalents with
restricted use by the parent company or its 7,220,060.97 60.78
subsidiaries
Other notes:
√Applicable □Not applicable
Monetary funds with a deposit period of more than three months: Currency: RMB
Item Closing balance Opening balance
Negotiated deposits - 825,000,000.00
Names of “others” items whose closing balances in the previous year were adjusted and the
amounts of adjustments:
□Applicable √Not applicable
√Applicable □Not applicable
Unit: RMB
Item Closing book value Reasons for restriction
Cash and cash equivalents 10,098,029.66[Note 2]
Long-term equity investment 102,918,559.00 [Note 3]
Other non-current financial 621,447,424.37 [Note 3]
assets
Other current assets 367,484,914.87 [Note 4]
Total 1,101,948,927.90 /
Other notes:
Note 2. As of December 31, 2022, bank deposits with a book value of RMB 60.97
(December 31, 2021: RMB 60.78) were restricted for ownership or use rights due to being as
security deposits for obtaining commercial housing mortgage loan. As of December 31, 2022,
bank deposits with a book value of RMB 7,220,000.00 (December 31, 2021: RMB 0.00) were
used as a performance bond for civil air defense projects under construction and the
ownership or use rights were restricted. As of December 31, 2022, bank deposits with a book
value of RMB 2,877,968.69 (December 31, 2021: RMB 0.00) were used as fast payment
business risk deposits with restricted ownership or use rights.
Note 3: As of December 31, 2022, long-term equity investments with a book value of RMB
RMB 621,447,424.37 (December 31, 2021: RMB 636,870,392.09) were frozen by Shanghai
Municipal Public Security Bureau. See Note XIV.1 Important commitments for details.
Note 4. As of December 31, 2022, the payment business reserve fund with a book value
of RMB 367,484,914.87 (December 31, 2021: RMB0.00) 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. See
Note VII. 13 Other current assets for details.
(1).Foreign currency monetary items
√Applicable □Not applicable
Unit: RMB
Closing amount
Closing balance in after conversation:
Item Exchange rate
foreign currency RMB
Balance
Cash and cash equivalents - -
In which: USD 12,105,648.01 6.9646 84,310,996.13
EURO 81,370.70 7.4229 604,006.57
Rwandan Franc 3,320.96 0.0068 22.58
Dirham 62,205.15 1.8966 117,978.29
Koruna 2,273,111.17 0.3069 697,617.82
Accounts receivable - -
In which: USD 5,926,323.22 6.9646 41,274,470.70
EURO 154,711.02 7.4229 1,148,404.43
Koruna 7,166,958.46 0.3069 2,199,539.55
Other receivables - -
In which: USD 19,395.10 6.9646 135,079.11
EURO 770,300.00 7.4229 5,717,859.87
Koruna 85,733.56 0.3069 26,311.63
Accounts payable - -
In which: USD 8,745,903.07 6.9646 60,911,716.52
EURO 1,439.90 7.4229 10,688.23
Other payables - -
In which: USD 981,222.25 6.9646 6,833,820.48
EURO 512,395.62 7.4229 3,803,461.45
Rwandan Franc 3,062,500.00 0.0068 20,825.00
Koruna 19,992.07 0.3069 6,135.57
Other notes:
Nil
(2).Description of overseas operations, for important overseas operations, also includes
the disclosure of principal overseas place of business, bookkeeping currency and
the basis for selection, and the reason for the change in bookkeeping currency.
□Applicable √Not applicable
□Applicable √Not applicable
(1).Overview of government grants
√Applicable □Not applicable
Unit: RMB
Amount recognized
Type Amount Presentation in profit or loss for
the current period
Financial subsidies for the 200,000.00 Revenue 200,000.00
development of the digital from non-
entertainment industry operating
activities
Epidemic subsidy 39,122.00 Revenue 39,122.00
from non-
operating
activities
Development Awards income
Comprehensive Bonded Area 5,000,000.00 Other 5,000,000.00
Enterprise Development Support income
Policy Subsidy
Additional deduction of input tax 4,814,300.56 Other 4,814,300.56
income
Subsidies for energy saving and 4,000,000.00 Other 4,000,000.00
consumption reduction income
Credit center platform construction 3,500,000.00 Other 3,500,000.00
and operation and maintenance income
subsidies
Special incentive funds for modern 2,300,000.00 Other 2,300,000.00
supply chain system innovation income
Yiwu Fair Construction Subsidy 2,000,000.00 Other 2,000,000.00
income
income
Interest subsidy for the international 1,154,807.04 Other 1,154,807.04
exhibition center construction fund income
Job stabilization and job expansion 1,461,352.01 Other 1,461,352.01
subsidies income
Government subsidy for service 266,666.64 Other 266,666.64
industry cluster for 2011 income
Others 4,186,987.29 Other 4,186,987.29
income
Total 38,802,436.81 38,802,436.81
(2).Refund of government grants
□Applicable √Not applicable
Other notes:
Nil
□Applicable √Not applicable
VIII. Changes in consolidation scope
√Applicable □Not applicable
(1).Business combinations under not under common control occurred in the current
period
√Applicable □Not applicable
Unit: RMB
Income Net
Date of profit of
Time Percen
Metho for acquiree acquiree
Purcha point Cost of tage of
equity d of Acquisi determi from from
sed of equity
equity tion ning acquisitio acquisiti
party equity acquisitio acquire
d acquisi date acquisit n date on date
Name acquisi n
tion ion until end until end
tion （%）
date of the of the
period period
Zhejian July 444,300,0 100 Acquisi July Deliver 29,528,3 9,433,90
g 29, 00.00 tion 29, y of 86.62 0.78
Xunchi 2022 2022 propert
Digital y rights
Techno and
logy acquisit
Co., ion of
Ltd. control
Other notes:
During the year, the Company acquired 100% equity of Zhejiang Haier Network
Technology Co., Ltd. and 100% equity of Zhejiang Haier Network Technology Co., Ltd.’s
subsidiary Kuaijietong Payment Service Co., Ltd. with cash of RMB 435,457,500.00 and the
fair value of debts assumed of RMB 8,842,500.00. After the completion of the transaction, the
name of Zhejiang Haier Network Technology Co., Ltd. was changed to Zhejiang Xunchi Digital
Technology Co., Ltd., and the Group held 100% equity of Zhejiang Xunchi Digital Technology
Co., Ltd. and 100% equity of Kuaijietong Payment Service Co., Ltd. (collectively referred to as
"Xunchi Relax Group"), to gain control over it. The date of purchase was determined to be July
obtained.
(2).Merger costs and goodwill
√Applicable □Not applicable
Unit: RMB
Merger cost Zhejiang Xunchi Digital
Technology Co., Ltd.
--Cash 435,457,500.00
-- Fair value of non-cash assets
-- Fair value of debt issued or assumed 8,842,500.00
-- Fair value of equity securities issued
-- Fair value of contingent consideration
--Fair value of the equity that had been held before the
acquisition date on the acquisition date
--Others
Total merger costs 444,300,000.00
Less: The share in the fair value of identifiable net assets 159,383,632.13
acquired
The difference between the goodwill/consolidation cost and 284,916,367.87
the share in the fair value of identifiable net assets acquired
The method of determining the fair value of the merger cost, contingent consideration and its
changes:
Nil
Main reasons for the formation of large -sum goodwill:
Nil
Other notes:
On June 15, 2021, it was reviewed and approved by the Board of Directors of the Group to
purchase 100% of the equity of Zhejiang Haier Network Technology Co., Ltd. (hereinafter
referred to as "Haier Network") and 100% of the equity of Kuaijietong Payment Service Co.,
Ltd. ((hereinafter referred to as "Kuaijietong"), a subsidiary of Zhejiang Haier Network
Technology Co., Ltd., held by Haier Group (Qingdao) Financial Holdings Co., Ltd. Co.,
Ltd.(hereinafter referred to as "Haier Financial Holdings"), from Haier Financial Holdings, at
cash of RMB 449,300,000.00. However, due to the fact that some pre-conditions for the
delivery could not be fulfilled as scheduled, the Company signed a supplementary agreement
with Haier Financial Holdings, Haier Network, and Kuaijietong on December 3, 2021, agreeing
that the transaction price would be adjusted to RMB 444.3 million, of which RMB 435.4575
million was in cash, and RMB 8,842,500 was the fair value of the fines paid before the
completion of the delivery of Kuaijietong.
(3).Acquiree’s identifiable assets and liabilities on the acquisition date
√Applicable □Not applicable
Unit: RMB
Zhejiang Xunchi Digital Technology Co., Ltd.
Fair value on acquisition date Book value acquisition date
Assets: 625,888,320.15 595,532,480.88
Cash and cash 55,445,535.89 55,445,535.89
equivalents
Held-for-trading financial 10,019,397.26 10,019,397.26
assets
Receivables 984,468.13 984,468.13
Prepayments 918,774.84 918,774.84
Other receivables 13,910,233.61 13,910,233.61
Inventory 56,415.08 56,415.08
Other current assets 452,436,385.09 452,436,385.09
Fixed assets 11,155,015.00 4,508,129.95
Construction in progress 2,743.36 2,743.36
Intangible assets 79,292,510.23 55,583,556.01
Development expenses 1,591,959.54 1,591,959.54
Long-term prepaid 74,882.12 74,882.12
expenses
Liabilities: 466,504,688.02 458,915,728.20
Payables 1,400,556.96 1,400,556.96
Contract liabilities 30,258.29 30,258.29
Payroll payable 3,204,428.12 3,204,428.12
Tax payable 245,091.36 245,091.36
Other payables 1,599,008.38 1,599,008.38
Deferred income tax 7,588,959.82 -
liabilities
Other current liabilities 452,436,385.09 452,436,385.09
Net assets 159,383,632.13 136,616,752.68
Less: Minority - -
shareholders' equity
Net assets acquired 159,383,632.13 136,616,752.68
Method for determining fair value of identifiable assets and liabilities:
The method for determining fair value of the acquiree’s identifiable assets and liabilities
acquired in business mergers not under the same control is evaluation by management expert
using the asset-based method.
The acquiree’s contingent liabilities assumed in the business merger:
Nil
Other notes:
Nil
(4).Profits or losses arising from the re -measurement of equity held before the
acquisition date at fair value
Whether there was any transaction that realized a business merger step by step in a package
deal and where the enterprise obtained control during the reporting period
□Applicable √Not applicable
(5).Relevant explanations on the circumstances where the merger consideration or the
fair value of the acquiree’s identifiable assets and liabilities could not be reasonably
determined on the acquisition date or at the end of the current period
□Applicable √Not applicable
(6).Other statements
□Applicable √Not applicable
□Applicable √Not applicable
□Applicable √Not applicable
Has the Group lost control upon a single disposal of investment in a subsidiary?
□Applicable √Not applicable
Other notes:
□Applicable √Not applicable
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 Shangbo Data Intelligence Enterprise
Management Co., Ltd., Yiwu Zheqing Trading Co., Ltd. and Yiwu China Commodities City
(Spain) Co., Ltd. in the current period.
□Applicable √Not applicable
IX. Equity in Other Entities
(1).Composition of the enterprise group
√Applicable □Not applicable
Shareholding
Subsidiary Main place Place of ratio (%) Acquisition
Business
Name of business registration Method
Direct Indirect
Yiwu China
Commodities City Yiwu, Yiwu,
Wholesale 100 Establishment
Import and Export Zhejiang Zhejiang
Co., Ltd.
Yiwu China
Commodities City
Yiwu, Yiwu,
Supply Chain Wholesale 100 Establishment
Zhejiang Zhejiang
Management Co.,
Ltd.
Yiwu
Comprehensive
Bonded Zone Yiwu, Yiwu, Business
Operation and Zhejiang Zhejiang service
Management Co.,
Ltd.
Yiwu China
Commodities City
Overseas Yiwu, Yiwu, Business
Investment and Zhejiang Zhejiang service
Development
Co., Ltd.
Yiwu China
Commodities City
Yiwu, Yiwu, Business
Tourism 100 Establishment
Zhejiang Zhejiang service
Development
Co., Ltd.
Yiwu China
Commodities City
Yiwu, Yiwu, Business
Assets Operation 100 Establishment
Zhejiang Zhejiang service
and Management
Co., Ltd.
Zhejiang Yindu
Hotel Yiwu, Yiwu, Business
Management Co., Zhejiang Zhejiang service
Ltd.
Yiwu China
Commodities City Yiwu, Yiwu, Business
Research Zhejiang Zhejiang service
Institute Co., Ltd.
Yiwu Shangbo
Shuzhi Enterprise Yiwu, Yiwu, Business
Management Co., Zhejiang Zhejiang service
Ltd.
Software and
Yiwu China Information
Yiwu, Yiwu,
Commodities City Technology 100 Establishment
Zhejiang Zhejiang
Big Data Co., Ltd. Service
Industry
Yiwu
Commodities City Yiwu, Yiwu,
Real estate 100 Establishment
Gonglian Zhejiang Zhejiang
Property Co., Ltd.
Yiwu, Yiwu,
Yiwu Shangbo Real estate 100 Establishment
Zhejiang Zhejiang
Yiwu China
Commodities City
Yiwu, Yiwu,
Information IT 100 Establishment
Zhejiang Zhejiang
Technology Co.,
Ltd.
Yiwu China
Commodities City Yiwu, Yiwu,
Service 100 Establishment
Financial Zhejiang Zhejiang
Holdings Co., Ltd.
Yiwu China
Multimodal
Commodities City
Yiwu, Yiwu, transport and
Logistics and 100 Establishment
Zhejiang Zhejiang transportation
Warehousing
agency
Co., Ltd.
Yiwu China
Commodities City
Commerce and Yiwu, Yiwu,
Education 100 Establishment
Trade Service Zhejiang Zhejiang
Training Center
Co., Ltd.
Yiwu China
Commodities City Yiwu, Yiwu, Business
Exhibition Co., Zhejiang Zhejiang service
Ltd.
Zhejiang Huajie
Investment and Yiwu, Yiwu, Business
Development Zhejiang Zhejiang service
Co., Ltd.
European Huajie
Prague, Prague,
Investment Business
Czech Czech 96.4 Incorporation+acquisition
Development service
Republic Republic
Co., Ltd.
Zhejiang China
Commodities City
Group Yiwu, Yiwu,
Service 60 40 Establishment
Commercial Zhejiang Zhejiang
Factoring Co.,
Ltd.
Zhejiang Yiwugou
Yiwu, Yiwu,
E-commerce Co., IT 51 Establishment
Zhejiang Zhejiang
Ltd.
Yiwu Xinlian
Yiwu, Yiwu,
Technology Service 51 Establishment
Zhejiang Zhejiang
Service Co., Ltd.
Yiwu China
Commodities City
Yiwu, Yiwu,
Payment Network IT 100 Establishment
Zhejiang Zhejiang
Technology Co.,
Ltd.
Yiwu China
Commodities City Yiwu, Yiwu,
Advertising 100 Establishment
Advertising Co., Zhejiang Zhejiang
Ld.
Yiwu International
Trade Yiwu, Yiwu,
Wholesale 60 Establishment
Comprehensive Zhejiang Zhejiang
Service Co., Ltd.
Yiwu China
Commodities City
Yiwu, Yiwu,
Credit Service 85 Establishment
Zhejiang Zhejiang
Investigation Co.,
Ltd.
Yiwu Aiximao
Supply Chain Yiwu, Yiwu,
Service 100 Establishment
Management Co., Zhejiang Zhejiang
Ltd.
Multimodal
Yiwu
Yiwu, Yiwu, transport and
Huanqiuyida 60 Establishment
Zhejiang Zhejiang transportation
Logistics Co., Ltd.
agency
Yiwu China
Commodities City
Yiwu, Yiwu,
Internet Financial Service 100 Incorporation+acquisition
Zhejiang Zhejiang
Information
Service Co., Ltd.
Yiwu China
Commodities City
RMB and Foreign Yiwu, Yiwu,
Service 100 Establishment
Currency Zhejiang Zhejiang
Exchange Co.,
Ltd.
Hangzhou
Hangzhou, Hangzhou,
Shangbo Nanxing Real estate 100 Establishment
Zhejiang Zhejiang
Property Co., Ltd.
Haicheng Yiwu
China
Commodities City Haicheng, Haicheng,
Real estate 95 Establishment
Investment Liaoning Liaoning
Development
Co., Ltd.
Ningxia Yiwu
China
Commodities City Shizuishan, Shizuishan,
Service 100 Establishment
Supply Chain Ningxia Ningxia
Management Co.,
Ltd.
Yiwu China
Commodities City Hong Hong
(Hong Kong) Kong, Kong, Wholesale 100 Establishment
International China China
Trade Co., Ltd.
Hong Kong Better Hong Hong
Silk Road Co., Kong, Kong, Service 100 Establishment
Ltd. China China
BETTER SILK Dubai, Dubai,
Service 100 Establishment
ROAD FZE UAE UAE
BETTER SILK
Kigali, Kigali,
ROAD RWANDA Service 100 Establishment
Rwanda Rwanda
Ltd
Yiwu Zheqing Yiwu, Yiwu,
Wholesale 100 Establishment
Trading Co., Ltd. Zhejiang Zhejiang
Yiwu China
Commodities City Frankfurt, Frankfurt,
Service 100 Establishment
(Germany) Co., Germany Germany
Ltd.
Yiwu China Madrid, Madrid, Service 100 Establishment
Commodities City Spain Spain
(Spain) Co., Ltd.
Zhejiang Xunchi IT 100 Acquisition
Digital Hangzhou, Hangzhou,
Technology Co., Zhejiang Zhejiang
Ltd.
Kuaijietong IT 100 Acquisition
Hangzhou, Hangzhou,
Payment Service
Zhejiang Zhejiang
Co., 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
(2).Important non-wholly-owned subsidiaries
√Applicable □Not applicable
Unit: RMB
Dividends
declared to be
Shareholding ratio of Profits or losses attributable to distributed to
Closing balance of
Name of subsidiary minority shareholders minority shareholders in the minority
minority interest
Scale current period shareholders for
the current
period
Zhejiang Yiwugou E-commerce Co., Ltd. 49% 5,913,716.72 - 50,731,098.66
Haicheng Company 5% -4,426,825.19 - -47,419,869.20
Explanation for the difference between the shareholding ratio and voting right ratio of minority shareholders in a subsidiary:
□Applicable √Not applicable
Other notes:
□Applicable √Not applicable
(3).Major financial information of important non-wholly-owned subsidiaries
√Applicable □Not applicable
Unit: RMB10,000
Closing balance Opening balance
Name of Non- Non- Non- Non-
Current Total Current Total Current Total Current Total
subsidiary current current current current
assets assets liabilities liabilities assets assets liabilities liabilities
assets liabilities assets Debt
Zhejiang
Yiwugou
E- 9,108.24 5,688.44 14,796.68 4,438.90 4.49 4,443.39 11,899.73 900.21 12,799.94 3,653.53 - 3,653.53
commerce
Co., Ltd.
Haicheng
Company
Amount in the current period Amount in the previous period
Total Total Cash flow from
Name of subsidiary Operating Cash flow from Operating
Net profits comprehensive Net profits comprehensive operating
revenue operating activities revenue
income income activities
Zhejiang Yiwugou E-
commerce Co., Ltd.
Haicheng Company 24,288.25 -8,909.95 -8,909.95 -1,114.29 898.01 -14,685.04 -14,685.04 11,694.15
Other notes:
Nil
(4).Significant restrictions on the use of enterprise group’s assets and the settlement of
enterprise group’s debts
□Applicable √Not applicable
(5).Financial or other supports provided to structured entities included in the scope of
consolidated financial statements
□Applicable √Not applicable
Other notes:
□Applicable √Not applicable
and the Group still controls the subsidiary
□Applicable √Not applicable
√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
registration
business Direct Indirect in the joint
venture or
associate
Joint venture
Yiwu Shanglv Investment Yiwu, Yiwu, Equity
Real estate 49
Development Co., Ltd. Zhejiang Zhejiang method
Yiwu Huishang Redbud Capital Yiwu, Yiwu, Equity
Service 20
Management Co., Ltd. Zhejiang Zhejiang method
Yiwu Rongshang Real Estate Co., Yiwu, Yiwu, Equity
Real estate 49
Ltd. Zhejiang Zhejiang method
Yiwu Chuangcheng Real Estate Yiwu, Yiwu, Equity
Real estate 24
Co., Ltd. Zhejiang Zhejiang method
Associate
Yiwu Huishang Redbud Equity Yiwu, Yiwu, Commercial Equity
Investment Co., Ltd. (Note 5) Zhejiang Zhejiang services method
Zhejiang Chouzhou Financial Lease Hangzhou, Yiwu, Equity
Service 26
Co., Ltd. Zhejiang Zhejiang method
Yiwu Huishang Redbud Phase II Lease and
Yiwu, Yiwu, Equity
Investment Partnership (limited business 10.41
Zhejiang Zhejiang method
partnership) [Note 6] service
Yiwu Hongyi Equity Investment Yiwu, Yiwu, Equity
Service 49.975
Fund Partnership Zhejiang Zhejiang method
Pujiang Lvgu Property Co., Ltd. Pujiang, Pujiang, Equity
Real estate 49
Zhejiang Zhejiang method
Yiwu China Commodities City Yiwu, Yiwu, Equity
Real estate 49
Property Development Co., Ltd. Zhejiang Zhejiang method
Zhejiang Zhijie Yuangang Technology
International Supply Chain promotion
Technology Co., Ltd. Yiwu, Yiwu, and Equity
Zhejiang Zhejiang application method
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
Note 5: The Company held 10.42% (2021: 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 6: The Company held 10.41% (2021: 9.43% ) equity of Yiwu Huishang Redbud
Phase II Investment Partnership (limited partnership) (“Redbud Phase II”), but regarded it as
an associated company of the Company. According to Redbud Phase II’s articles of
association, it is engaged in investing and its important financial and operating decision-making
activities are to pick and manage investment projects, which have been fully entrusted to the
Company’s joint venture Redbud Capital. Redbud Capital picks and manages investment
projects via its investment decision-making committee. Except for special investment matters,
which are subject to the resolution of Redbud Phase II’s board of directors, other important
financial and operating decision-making activities are conducted by Redbud Capital on the
behalf of Redbud Phase II. Therefore, the Company could exert significant influence on
Redbud Phase II of which it held 10.41% equity.
(2).Main 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 Shanglv Yiwu Rongshang Yiwu Yiwu Shanglv Yiwu Rongshang Yiwu
Real Estate Chuangcheng Real Estate Chuangcheng
Real Estate Real Estate
Current assets 6,039.08 13,547.12 47,538.36 9,499.55 564,093.80 385,685.30
In which: cash and cash equivalents 4,316.44 198.23 540.41 1,720.42 23,898.97 37,501.70
Non-current assets 129,575.34 - 2.12 133,261.86 8,395.40 5,324.96
Total assets 135,614.42 13,547.12 47,540.47 142,761.41 572,489.20 391,010.26
Current liabilities 39,891.24 148.98 34,353.43 37,527.54 528,124.40 354,317.21
Non-current liabilities 11,566.36 - 1,333.17 23,695.72 - -
Total liabilities 51,457.60 148.98 35,686.60 61,223.26 528,124.40 354,317.21
Shareholders’ equity attributable to 84,156.82 13,398.14 11,853.87
parent company
Share of net assets calculated based 41,236.84 6,565.09 2,844.93
shareholding ratio
Adjustments -1,539.60 - - -1,586.85 - -
--unrealized profits of internal -1,539.60 - -
-1,586.85 - -
transactions
Book value of equity investment in joint 39,697.24 6,565.09 2,844.93
ventures
Operating revenue 17,580.08 395,959.62 302,152.46 23,511.11 272,636.85 199,877.07
Financial expenses 1,608.93 -0.94 -33.92 2,436.46 -384.84 -213.22
Net profits 2,618.68 87,577.34 56,192.82 3,543.88 39,544.26 31,495.95
Total comprehensive income 2,618.68 87,577.34 56,192.82 3,543.88 39,544.26 31,495.95
Dividends received from joint ventures - 58,086.56 19,447.68 - - -
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 CCCP Pujiang Zhijie Chouzhou Hongyi CCCP Pujiang Zhijie
Financial Fund Lvgu Yuangang Financial Fund Lvgu Yuangang
Lease Lease
Current assets 77,387.23 25,476.19 1,752,170.30 121,318.40 45,894.85 77,805.80 21,730.37 1,492,712.71 122,804.10 -
Non-current assets 1,605,298.30 163,831.11 43,109.75 777.45 137.68 1,356,968.91 155,970.63 42,919.44 459.02 -
Total assets 1,682,685.53 189,307.30 1,795,280.05 122,095.85 46,032.53 1,434,774.71 177,701.00 1,535,632.15 123,263.12 -
Current liabilities 1,132,279.05 89.88 1,029,256.12 45,646.63 2,363.50 1,020,585.17 37.71 915,862.90 31,456.60 -
Non-current
liabilities
Total liabilities 1,494,529.55 89.88 1,176,428.34 45,646.63 2,363.50 1,270,920.53 37.71 964,952.53 31,456.60 -
Shareholders’ equity
attributable to parent 188,155.98 189,217.42 618,851.71 76,449.22 43,669.03 163,854.18 177,663.29 570,679.62 91,806.52 -
company
Share of net assets
calculated based 48,920.55 94,570.87 303,237.34 37,460.12 11,790.64 42,602.08 88,796.11 279,633.01 44,985.19 -
shareholding ratio
Adjustments - -6.66 -4,689.27 423.84 2,765.71 - -8.88 -3,939.17 942.95 -
--unrealized profits
of internal - -6.66 -4,689.27 423.84 2,765.71 - -8.88 -3,939.17 942.95 -
transactions
Book value of equity
investment in joint 48,920.55 94,564.21 298,548.07 37,883.96 14,556.34 42,602.08 88,787.23 275,693.84 45,928.14 -
ventures
Operating revenue 56,469.66 - 209,890.13 9,831.72 2,554.69 43,115.27 177.83 138,101.44 90,893.54 -
Net profits 24,301.81 10,670.77 43,105.17 2,642.70 -1,330.97 20,984.32 9,749.03 14,621.40 16,246.73 -
Total
comprehensive 24,301.81 10,655.05 43,105.17 2,642.70 -1,330.97 20,984.32 9,749.03 14,621.40 16,246.73 -
income
Dividend on
associates received - - - 8,820.00 - - - - - -
in the current year
Other statements
Nil
(4).Summary financial information of unimportant joint ventures and associates
√Applicable □Not applicable
Unit: RMB
Closing balance/amount in Opening balance/amount in
the current period the previous period
Joint ventures:
Total book value of 107,724,158.88 56,813,304.76
investments
Total amounts of the following items calculated based on shareholding ratio
--Net profits 50,910,854.11 23,678,584.58
--Other comprehensive - -
income
--Total comprehensive 50,910,854.11 23,678,584.58
income
Associates:
Total book value of 489,944,751.13 461,933,497.77
investments
Total amounts of the following items calculated based on shareholding ratio
--Net profits 15,004,810.36 25,663,075.10
--Other comprehensive 4,139,085.99 -
income
--Total comprehensive 19,143,896.35 25,663,075.10
income
Other statements
Nil
(5).Restrictions on the ability of joint ventures or associates to transfer money to the
Company
□Applicable √Not applicable
(6).Excess losses of joint ventures or associates
□Applicable √Not applicable
(7).Unrecognized commitments relating to investment in joint ventures
□Applicable √Not applicable
(8).Contingent liabilities relating to investment in joint ventures or associates
□Applicable √Not applicable
□Applicable √Not applicable
Notes on structured entities not included in the consolidated financial statements:
□Applicable √Not applicable
□Applicable √Not applicable
X. Risks associated with financial instruments
√Applicable □Not applicable
The book values of financial instruments on the balance sheet date are as follows:
December 31, 2022
Financial assets
Financial assets
that are
measured at
measured by fair
fair value and
value and of
whose changes
which the Measured at
are included in Total
changes in fair amortized cost
other
value are
comprehensive
recognized in the
income
profit or loss for
the current period
Requirements in Designated
the standard
Cash and cash
equivalents
- 1,991,298,971.30 - 1,991,298,971.30
Held-for-trading
financial assets
Accounts
- 210,750,725.36 - 210,750,725.36
receivable
Other receivables - 419,398,092.62 - 419,398,092.62
Other current
- 369,222,394.29 - 369,222,394.29
assets
Debt investments - 48,079,561.64 - 48,079,561.64
Long-term
- 278,299,600.73 - 278,299,600.73
receivables
Other non-current
- 138,253,316.00 - 138,253,316.00
assets
Other equity
instruments - - 499,200,803.85 499,200,803.85
investment
Other non-current
financial assets
Financial liabilities Other financial
liabilities
Short-term borrowings 1,059,287,361.11
Accounts payable 1,191,314,404.15
Other payables 1,325,596,105.43
Non-current liabilities due within
one year
Other current liabilities 3,473,907,027.00
Long-term borrowings 404,500,000.00
Bonds payable 3,497,416,819.75
Lease liabilities 206,623,735.97
Financial assets
Financial assets
measured at
that are measured
fair value and
by fair value and
whose changes
of which the Measured at
are included in Total
changes in fair amortized cost
other
value are
comprehensive
recognized in the
income
profit or loss for
the current period
Requirements in Designated
the standard
Cash and cash
equivalents
- 4,831,468,386.25 - 4,831,468,386.25
Held-for-trading
financial assets
Accounts
- 185,237,530.89 - 185,237,530.89
receivable
Other receivables - 1,355,924,282.96 - 1,355,924,282.96
Other current
- 2,780,294.82 - 2,780,294.82
assets
Long-term
- 222,307,363.40 - 222,307,363.40
receivables
Other equity
instruments - - 642,187,968.77 642,187,968.77
investment
Other non-current
financial assets
Financial liabilities Other financial
liabilities
Short-term borrowings 942,736,046.04
Accounts payable 493,360,429.02
Other payables 1,908,742,835.15
Non-current liabilities due within 3,664,241,923.08
one year
Other current liabilities 3,081,384,800.50
Long-term borrowings 771,250,000.00
Lease liabilities 205,942,673.93
The risks associated with financial instruments faced by the Group in regular activities
mainly include credit risk, liquidity risk and market risk. The main financial instruments
of the Group include cash, borrowings from banks, bonds payable and commercial
papers payable. Those instruments are used mainly to finance the operation of the
Group. The Group has lots of other financial assets and liabilities directly arising from
operation, such as accounts receivable, other receivables, accounts payable and other
payables. The risks associated with those financial instruments and the risk
management strategy taken by the Group to reduce those risks are stated as follows.
Credit risk
The Group only deals with the recognized third parties with good reputation. According
to its policy, the Group needs to carry out credit review on all clients who require to
deal with the Group on credit. In addition, the Group keeps monitoring the balance of
accounts receivable to ensure it will not face any material bad debt risk. For the
transactions settled other than in the functional currency of related business entities,
unless with specific approval of the Group’s credit control department, the Group will
not provide the conditions for dealing on credit. The Group also faces credit risks due
to the provision of financial guarantees. See Note XIV. 2 for details.
As the counterparties to the transactions of cash are banks with good reputation and
high credit ratings, the credit risk of those financial instruments is relatively low.
The Group’s other financial assets include cash, debt investment, other receivables and
certain derivatives, the credit risk of which is sourced from default by the counterparties,
and the maximum risk exposure is equal to the book value of those instruments.
As the clients from which the Group’s accounts receivable are receivable are scattered
in different sectors and industries, there’s no material credit risk concentrated within the
Group. The Group does not have any collaterals or other credit enhancements for the
balance of its accounts receivable.
See Notes VII. 5 and 8 for quantitative data on the Group's credit risk exposure in relation
to receivables and other receivables.
Criteria for significant increase in credit risk
The Group evaluates, on each balance sheet date, whether the credit risk of related
financial instruments has increased significantly since the initial recognition thereof. In
determining whether the credit risk of a financial instrument has increased significantly
since the initial recognition thereof, the Group takes into account the reasonable and
well-grounded information that is accessible without unnecessary extra costs or efforts,
including the qualitative and quantitative analyses based on the Group’s historical data,
external credit risk rating and forward-looking information. The Group compares the risk
of financial instruments defaulting on the balance sheet date and the risk of them
defaulting on the date of initial recognition based on an individual financial instrument
or a group of financial instruments with similar credit risk characteristics to determine
the changes in anticipated default risk of the financial instrument(s) within the duration
thereof.
If a financial instrument meets one or more of the following quantitative or qualitative
criteria, the Group will determine that its credit risk has increased significantly:
（1） The main quantitative criterion is that its probability of default within the
remaining duration on the reporting date rises by a certain margin from that at
its initial recognition;
（2） The main qualitative criterion is that the debtor has materially adverse changes
in business or financial conditions or is on the warning list of clients.
Definition of the assets whose credit has been impaired
In order to determine whether the credit of an asset has been impaired, the Group
adopts the criteria consistent with its internal credit risk management goal for related
financial instruments and also takes into account the quantitative and qualitative
indicators. The Group mainly considers the following factors while assessing whether
the credit of a debtor has been impaired:
（1） the issuer or debtor suffers material financial difficulty;
（2） the debtor is in breach of contract, such as breach in interest payment, principal
repayment or overdue payment;
（3） the creditor makes a compromise to the debtor which it would in no case make,
based on the economic or contract considerations in connection with the
debtor’s financial difficulty;
（4） the debtor is very likely to go bankrupt or enter into other financial
reorganizations;
（5） the financial difficulty of the issuer or debtor results in the disappearance of the
active market of the financial asset;
（6） a financial asset is purchased or derived at a large discount and the discount
points to the fact of credit loss having been incurred.
The credit impairment of financial assets may be caused by multiple events together and
may not necessarily be caused by an individually identifiable event.
The Group makes impairment provisions for the expected credit loss of accounts
receivable and other receivables within the coming 12 months with the simplified
method and general method respectively. Please refer to Notes VII. 5 and 8 for details.
Liquidity risk
The Group manages the cash shortage risk with the cyclical liquidity plan tool. The tool
considers not only the maturity dates of financial instruments but also the estimated cash
flows arising from the operation of the Group.
The Group aims to make use of such financing instruments as bank loans, commercial
papers, MTNs, corporate bonds and long-term borrowings to maintain the balance
between the continuity and flexibility of financing. As of December 31, 2022, 59.75% of
the Group's debts would be due within one year (December 31, 2021: 87.59%).
The following table summarizes the analysis on the due day of financial liabilities based
on non-discounted contractual cash flows:
December 31, 2022
Item At call 1-3 months Total
year inclusive) years inclusive) 5 years
Short-term
borrowings
Accounts
payable
Other payables 835,667,583.73 - - 489,928,521.70 - 1,325,596,105.43
Other current
liabilities
Non-current
liabilities due
within one
year
Long-term
borrowings
Bonds payable - - - 3,486,038,427.42 - 3,486,038,427.42
Total 2,223,496,068.16 1,591,597,312.36 2,816,866,999.43 4,209,728,074.12 257,210,555.56 11,098,899,009.63
Item At call 1-3 months Total
year inclusive) years inclusive) 5 years
Short-term
borrowings
Accounts
payable
Other
payables
Other current
liabilities
Non-current
liabilities due
within one
year
Long-term
borrowings
Total 1,779,870,241.72 369,047,622.42 7,425,157,642.67 1,356,988,838.25 - 10,931,064,345.06
Market risks
Interest rate risk
The risk of changes in market interest rates faced by the Group is mainly related to
the Group's long-term liabilities at floating interest rates.
The Group manages interest costs by maintaining an appropriate combination of
fixed-rate debts and variable-rate debts. In the long-term debts of the Group as of
December 31, 2022, there are long-term loans of RMB 405 million in total. The
interest rate is adjusted based on the benchmark loan interest rate on that day at the
end of each year, and will not be adjusted in the middle of the year. Therefore, the
management believes that the risk of changes in market interest rates is relatively
low.
Foreign exchange rate risk
The Group faces trading exchange rate risks. Such risks are caused by sales or
purchases made by certain business units in currencies other than their bookkeeping
currency. 7.94% (2021: 0.86%) of the Group's sales in the current period were
denominated in a currency other than the functional currency of the operating unit
where the sales occurred, while 92.06% (2021: 99.14%) of the costs were
denominated in the functional currency of the operating unit. Considering the
Group’s short time of inventory and timely collection of accounts receivable, the
management believe that its foreign exchange rate risk is relatively low.
Price risk of equity instrument investments
The price risk of equity instrument investments refers to the risk of the fair value of
equity securities decreasing due to the changes in stock indices and value of
individual securities. As of December 31, 2022, the Group was exposed to the price
risk of equity instrument investments arising from the individual equity instrument
investments classified as the financial instruments that are measured by fair value
and of which the changes in fair value are recognized in income in current period
(Note VII. 2) or recognized in other comprehensive income (Note VII. 18). The listed
equity instruments that were invested and held by the Group were listed on the
Shanghai Stock Exchange and the Shenzhen Stock Exchange, respectively,the
determination is made through discounting and adjustment using the trading prices
of similar circulating stocks of the same listed company on the balance sheet date,
combined with liquidity.
The market stock indexes of the following stock exchanges at the closing point of the
trading day that is closest to the balance sheet date, and their respective highest and
lowest closing points during the year are as follows:
At the end of 2022 At the end of 2021
SZSE-A 2,067 2,661/1,804 2,648 2,691/2,229
Share Index
SSE-A Share 3,238 3,827/3,001 3,814 3,912/3,472
Index
The following table indicates the sensitivity of the Group’s net profit and loss and other
comprehensive income after tax to the change each 10% of the fair value of equity
instrument investment (based on the book value on the balance sheet date) under
the assumption that all other variables remain unchanged.
Equity
Other
instrument Total shareholders'
Net profit or loss comprehensive
investment equity
income net after tax
Book value
Equity instrument
Increase/(decrease) Increase/(decrease) Increase/(decrease)
investment
Fair value
increase/decrease
by10%
Shenzhen -
Investment in the
equity instruments
that are measured
by fair value and of
which the changes
in fair value are
recognized in other
comprehensive
income
Shanghai - Equity
instrument
investment at fair 23,651,565.00 1,773,867.38 - 1,773,867.38
value through profit
or loss
Equity
Other
instrument Total shareholders'
Net profit or loss comprehensive
investment equity
income net after tax
Book value
Equity instrument
Increase/(decrease) Increase/(decrease) Increase/(decrease)
investment
Fair value
increase/decrease
by10%
Shenzhen -
Investment in the
equity instruments
that are measured
by fair value and of
which the changes
in fair value are
recognized in other
comprehensive
income
Shanghai - Equity
instrument
investment at fair 50,375,083.20 3,778,131.24 - 3,778,131.24
value through profit
or loss
The main objective of the Group in capital management is to ensure the Group’s
ability to continue operations and maintain a healthy capital ratio to support its
business development and maximize the values for shareholders.
The Group manages and adjusts its capital structure based on the changes in the
economic situation and the risk characteristics of related assets. To maintain or
adjust the capital structure, the Group may adjust the distribution of profits to
shareholders, return capital contribution to shareholders or issue new shares. The
Group is not subject to external mandatory capital requirements. From 2021 to
procedures.
XI. Disclosure of fair value
√Applicable □Not applicable
Unit: RMB
Closing fair value
Item Level 1 fair Level 2 fair Level 3 fair
Total
value value value
I. Continuous fair
value
measurement
(1) Held-for-
trading financial 23,651,565.00 - 38,679,435.66 62,331,000.66
assets
assets that are
measured at fair
value and whose
changes are
included in the
current profit and
loss
(2) Investment in
equity instruments
(4) Bank wealth
management - - 38,679,435.66 38,679,435.66
products
(3) Other equity
instruments 499,200,803.85 - - 499,200,803.85
investment
(vi) Other non-
current financial - 875,102,686.90 625,204,875.23 1,500,307,562.13
assets
Total assets
continuously
measured by fair
value
continuously measured by Level 1 fair value
√Applicable □Not applicable
The Group's continuous first-level fair value measurement items mainly include listed
equity instruments, whose fair value is determined based on the market quotation on the last
trading day of 2022.
parameters for the items continuously and non-continuously measured by Level 2
fair value
√Applicable □Not applicable
The Group’s level-2 items continuously measured at fair value mainly include unlisted
equity investments and listed equity instruments with restricted sales conditions. The fair value
of unlisted equity investments is determined based on the information in the financial
statements of these unlisted companies on December 31, 2022, combined with comparable
information of listed companies in the same industry under the comparable company multiplier
method. In the listed equity instruments subject to restricted sales conditions, the valuation
model is used to determine the fair value based on the market quotation, and the important
observable input value is the liquidity discount.
parameters for the items continuously and non-continuously measured by Level 3
fair value
√Applicable □Not applicable
The Group’s level-3 items continuously measured at fair value include wealth
management products and equity investments in non-listed companies for which the
comparable company multiplier method cannot be used. Wealth management products are
determined by the discounted cash flow valuation model. The Group will also consider the
initial transaction price, recent transactions of the same or similar financial instruments, or
complete third-party transactions of comparable financial instruments. Adjustments to the
assessment model are made based on changes in liquidity, liquidity, default risk, and market,
economic, or company-specific circumstances. The fair value of the equity investments in non-
listed companies for which the comparable company multiplier method cannot be used are
determined under the net asset-based method as of December 31, 2022.
the sensitivity analysis of unobservable parameters for items continuously measured
by Level 3 fair value
□Applicable √Not applicable
different levels in the current period, the reasons for the conversion and the policy
for determining the time of conversion
□Applicable √Not applicable
□Applicable √Not applicable
√Applicable □Not applicable
December 31, 2022
Entries used in the fair value measurement
Quotation in an Important observable entry Important non-
active market observable entry
Level 1 Level 2 Level 3 Total
Bonds payable 3,544,625,864.62 3,544,625,864.62
(current portion
included)
√Applicable □Not applicable
Fair value of financial instruments
The table below shows the differences between book value and fair value of
the Group’s financial instruments other than the financial instruments with
very small differences between book value and fair value and the equity
instruments that did not have an offering price in the active market and whose
fair value could not be measured reliably:
Book value Fair value
Financial
liabilities
Bonds payable
(current
portion
included) 3,558,925,011.54 3.552.960.829.66 3,544,625,864.62 3.549.754.103.37
The management have evaluated cash and cash equivalents, accounts receivable,
notes payable and accounts payable. Their fair values were equivalent to their book
values as their remaining terms were not long. The fair values of long-term
receivables, other non-current assets, long and short-term borrowings and long-term
accounts payable were determined with the discounted future cash flow method,
with the market yields of other financial instruments with similar contract terms, credit
risks and remaining terms as the discount rates. Their fair values were equivalent to
their book values.
The Group's finance department, headed by the General manager of the Group
Finance Center, is responsible for developing policies and procedures for the fair
value measurement of financial instruments. The General Manager of the Group
Finance Center reports directly to the Group Finance Officer, who reports to the Audit
Committee. On each balance sheet date, the financial department analyzes the
changes in the value of financial instruments and determines the main input values
applicable to the valuation. The valuation shall be reviewed and approved by the
Group's Financial Director. For the preparation of semi-annual and annual financial
statements, the valuation process and results are discussed with the audit
committee twice a year.
The fair values of financial assets and financial liabilities refer to the amounts
determined based on the voluntary exchange of assets or repayment of debts by the
parties to arm’s length transactions who are familiar with the transactions rather than
forced sale or liquidation. The following methods and assumptions are used to
estimate fair value.
The fair value of bonds payable is determined with the discounted future cash flow
method, with the market yields of other financial instruments with similar contract
terms, credit risks and remaining terms as the discount rates, and falls in Level 2.
The significant unobservable inputs for measurement of the fair value of bonds
payable are the prepayment rate and loss given default.
If there are no restrictions on the sale of listed equity instruments, the fair value is
determined at the quoted market price. In the listed equity instruments subject to
restricted sales conditions, the valuation model is used to determine the fair value
based on the market quotation, and the important observable input value is the
liquidity discount. The Group believes that the fair value estimated by valuation
techniques is reasonable and is also the most appropriate value on the balance
sheet date.
There was no significant conversion of the Group’s and the Company’s financial
instruments measured by fair value between different levels in the current year and
in the previous year.
XII. Related parties and related-party transactions
√Applicable □Not applicable
Unit: RMB10,000
Shareholding Voting right
Name of parent Place of Registered
Business ratio in the ratio in the
company registration capital
Company (%) Company (%)
Yiwu China Yiwu, Asset 100,000 55.38 55.38
Commodities City 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
For details of the Company’s subsidiaries, please refer to the Notes
√Applicable □Not applicable
For details, please refer to Note IX. 1. Equity in subsidiaries
For details of the Company’s important joint ventures or associates, please refer to the Notes
√Applicable □Not applicable
For details, please refer to Note IX. 3. Interests in joint ventures or associated enterprises
Other joint ventures or associates that have related-party transactions with the Company in the
current period or had related-party transactions with the Company in the prior year which
resulted in an outstanding amount are as follows
√Applicable □Not applicable
Name of joint venture or associate Relationship
with the
Company
Yiwu Shanglv Joint
venture
Yiwu Huishang Redbud Capital Management Co., Ltd. Joint
venture
Yiwu China Commodities City Creative Design and Development Services Joint
Co., Ltd. venture
Yiwu Guoshen Shangbo Property Co., Ltd. Joint
venture
Yiwu Rongshang Real Estate Co., Ltd. Joint
venture
Hangzhou Binjiang Shangbo Property Development Co., Ltd. Associate
Huishang Micro-finance Associate
Zhejiang Yemai Data Technology Co., Ltd. Associate
Yiwu Meipinshu Supply Chain Management Co., Ltd. Associate
JEBEL ALI FREE ZONE TRADER MARKET DEVELOPMENT AND Associate
OPERATION FZCO
Yiwu Digital Port Technology Co., Ltd. Associate
CCCP Associate
Hangzhou MicroAnts Co., Ltd. Associate
Yiwu Huishang Redbud Equity Investment Co., Ltd. Associate
Zhejiang Zhijie Yuangang International Supply Chain Technology Co., Ltd. Associate
Yiwu Heimahui Enterprise Service Co., Ltd. Associate
Yiwu Shangfu Chuangzhi Investment Center (limited partnership) Associate
Other statements
□Applicable √Not applicable
√Applicable □Not applicable
Name of other related party Relationship with the Company
Parent company of controlling
SCO shareholder of the Company’s
largest shareholder
Controlling shareholder of the
Yiwu Market Development Group Co., Ltd.
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 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
Subsidiary of controlling
Zhejiang Yiwu Rural Economic Development Co., Ltd. shareholder of the Company’s
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 China Commodities City Property Service Co., Ltd.
largest shareholder
Subsidiary of the Company’s
Yiwu Handing Shangbo Real Estate Co., Ltd.
largest shareholder
Subsidiary of the Company’s
Yiwu Gongchen Shangbo Property Co., Ltd.
largest shareholder
Subsidiary of the Company’s
Yiwu Shangbo Yungu Enterprise Management Co., Ltd.
largest shareholder
Yiwu Tonghui Shangbo Real Estate Co., Ltd. Subsidiaries of joint ventures
Yiwu Gongchen Shangbo Property Co., Ltd. Subsidiaries of joint ventures
Yiwu Chengzhen Property Co., Ltd. Subsidiaries of joint ventures
Minority shareholder of major
Yisha Chengdu International Trade City Co., Ltd.
subsidiaries
Other statements
Nil
(1).Related-party transactions of purchasing and selling goods and rendering and
accepting service
Purchasing goods/accepting service
√Applicable □Not applicable
Unit: RMB
Whether the
Approved
Contents of transaction Amount in the
Amount in the transaction
Related party related-party limit is previous
current period amount (if
transaction exceeded (if period
applicable)
applicable)
Yiwu China
Property service
Commodities City
fee and greening 184,739,755.70 13,721,576.38
Property Service
maintenance fee
Co., Ltd.
Exhibition
Yiwu Security
security service 28,188,230.28 23,279,926.97
Service Co., Ltd.
fee
Technical service
Yiwu Digital Port
fee and hardware 4,948,197.00 -
Technology Co., Ltd.
equipment fee
Yiwu China
Commodities City
Creative Design and Design fee 3,472,843.99 1,953,465.33
Development
Services Co., Ltd.
Purchase
Zhejiang Yemai
payment and
Data Technology 2,291,695.43 -
platform service
Co., Ltd.
fee
Yiwu Agriculture
Purchase
Development Co., 2,042,604.35 -
payment
Ltd.
Yiwu Shangbo
Yungu Enterprise
Construction fee 1,100,800.00 -
Management Co.,
Ltd.
Selling goods/rendering service
√Applicable □Not applicable
Unit: RMB
Contents of Amount in Amount in the
Related party related-party the current previous
transaction period period
Yiwu China Commodities City Property Sales of 2,175,245.60 -
Service Co., Ltd. goods
MDG and its branch Xingfuhu International Laundering 1,054,026.05 1,594,054.55
Conference Center fees
Yiwu Meipinshu Supply Chain Management Procurement - 231,822.45
Co., Ltd. agency
Notes on related-party transactions of purchasing and selling goods and rendering and
accepting service
□Applicable √Not applicable
(2).Entrustment/contracting from and to related parties
Entrustment/contracting to the Company:
√Applicable □Not applicable
Unit: RMB
Entrustment
Starting Ending
Pricing of income/contr
date of date of
Name of Name of Type of entrustment acting
entrust entrust
consignor/em consignee/cont entrusted/contr income/contr income
ment ment
ployer ractor acted assets acting recognized in
/contract /contract
income the current
ing ing
period
The Company Entrustment of Feb 1, Jan 31, Negotiated 514,979.27
MDG
other assets 2020 2025 price
Notes on entrustment/contracting from related parties
√Applicable □Not applicable
According to the Yourworld International Conference Center Management Contract signed
by and between the Company and the Market Development Group, the Company is entrusted
to manage Yourworld International Conference Center Hotel located at No. 100, Xingfuhu
Road, Yiwu City. The hotel management fee collected during the reporting period was RMB
Entrusted management/contracted by the Company
□Applicable √Not applicable
Notes on related-party management/contracting
□Applicable √Not applicable
(3).Related-party lease
The Company as the lessor:
√Applicable □Not applicable
Unit: RMB
Rental income Rental income
Type of leased
Name of lessee recognized in the recognized in the
asset
current period previous period
Yiwu Shanglv Office space 1,376,146.79 -
CCCP Office space 1,126,617.29 3,767,104.11
Yiwu Market Development Service Parking lot 516,288.99 -
Center Co., Ltd.
Yiwu Huishang Redbud Capital Office space 246,819.06 -
Management Co., Ltd.
Yiwu Meipinshu Supply Chain Office space 207,058.99 -
Management Co., Ltd.
Yiwu China Commodities City Property Office space 122,445.99 -
Service Co., Ltd.
Huishang Micro-finance Office space 49,791.48 103,301.70
The Company as the lessee
√Applicable □Not applicable
Unit: RMB
Variable lease
Simplified treatment of rental payments not
Interest expense
expenses for short-term included in the Increased right-
Rent paid on lease liability
leases and leases of low- measurement of of-use assets
Type of assumed
lessor value assets (if applicable) the lease liability
leased
name (if applicable)
asset
Amoun Amount Amoun Amount Amoun Amount
Amount in Amount in the
Amount in the t in the in the Amount in the t in the in the t in the in the
the previous previous
current period current previou current period current previou current previou
period period
period s period period s period period s period
CCC Warehouse 15,015,618.3 3,947,798.1 16,378,272.0 15,210,700.0
- - - - - -
H s 7 6 0 0
Notes on related-party lease
√Applicable □Not applicable
The Group rent office spaces from above related parties at market prices
(4).Related-party guarantees
The Company as the guarantor
√Applicable □Not applicable
Unit: RMB
Amount of Starting date of Expiry date of the Is the guarantee
The guaranteed
guarantee the guarantee guarantee fulfilled in full
Yiwu Shanglv 94,799,347.65 Jul 1, 2015 Dec 15, 2026 No
The Company as the guaranteed party
□Applicable √Not applicable
Notes on related-party guarantees
√Applicable □Not applicable
The Group provided guarantee for the borrowings of Yiwu Shanglv. As of December 31,
million ) from banks. According to the guarantee contract, the Group assumed guarantee
liability for RMB 94.7993 million (Dec 31, 2021: RMB 145.2877 million). SCO provided a
counter-guarantee
(5).Related-party lending and borrowing
√Applicable □Not applicable
Unit: RMB
Related Maturity
Amount Starting date Description of
party date
Borrowings
Huangyuan 436,100,000.00 Jul 31, 2020 The Group allocated a total of RMB
Shangbo 436,100,000.00 of surplus funds from
Huangyuan Shangbo in 2020, and allocated a
total of RMB 171,500,000.00 of surplus funds
from Huangyuan Shangbo in 2021. The
allocations were based on the share holding rate
and the annual interest rate was 0%. As of
December 31, 2022, RMB 580,865,600.00 was
converted into dividends, and the remaining
RMB 26,734,400.00 was transferred back to
Huangyuan Shangbo.
Huangyuan 171,500,000.00 Jan 26, 2021 Ditto
Shangbo
Chengzhen 27,200,000.00 Oct 22, 2020 The Group allocated a total of RMB
Property 27,200,000.00 of surplus funds from Chengzhen
Real Estate in 2020, a total of
RMB172,800,000.00 of surplus funds from
Chengzhen Real Estate in 2021, and a total of
RMB 72,000,000.00 of surplus funds from
Chengzhen Real Estate in 2022. The allocations
were based on the share holding rate and the
annual interest rate was 0%. As of December 31,
of which RMB 194,476,800.00 was converted
into dividends, and the return date of the
remaining funds would be determined according
to the fund needs of Chengzhen Real Estate
projects.
Chengzhen 172,800,000.00 Jan 26, 2021 Ditto
Property
Chengzhen 72,000,000.00 Jan 18, 2022 Ditto
Property
Yiwu 230,600,000.00 Dec 31, 2022 In 2022, the Group transferred a total of RMB
Guoshen 230,600,000.00 from Guoshen Shangbo
Shangbo according to the shareholding ratio, at the annual
Property interest rate of 0%. The due date would be
Co., Ltd. determined according to the funding needs of
Guoshen Shangbo projects.
Yiwu 64,418,683.00 Jun 30, 2022 The Company received a pre-dividend of RMB
Rongshang 64,418,683.00 from Rongshang Real Estate in
Real Estate 2022, and the specific date of repayment of
Co., Ltd. funds would be determined according to the
distribution of dividend resolutions.
Huishang 4,500,000.00 Dec 31, 2021 The Company received a pre-dividend of RMB
Zijing 4,500,000.00 from Huishang Redbud in 2021,
and a pre-dividend of RMB12,000,000.00 from
Huishang Redbud in 2022. The specific date of
return of funds would be determined according to
the distribution of dividend resolutions.
Huishang 12,000,000 Dec 31, 2022 Ditto
Zijing
Related party Amount Starting date Maturity Description of
date
Lending to
Yiwu Tonghui 742,568,548.00 Nov 17, 2020 In 2020, the Group provided a total of RMB
Shangbo Real 742,568,548.00 in financial assistance to
Estate Co., Ltd. Tonghui Shangbo, and in 2021, it provided a
total of RMB138,160,000.00 in financial
assistance to Tonghui Shangbo, with an
annual interest rate of 6.5%. Tonghui Shangbo
repaid all the funds as of December 31, 2022.
Yiwu Tonghui 138,160,000.00 Feb 26, 2021 Ditto
Shangbo Real
Estate Co., Ltd.
Yiwu Handing 204,604,400.00 Dec 11, 2020 In 2020, the Group provided financial
Shangbo Real assistance to Handing Shangbo totaling RMB
Estate Co., Ltd. 204,604,400.00, and in 2021, the Group
provided financial assistance to Handing
Shangbo totaling RMB 17,845,800.00, with an
annual interest rate of 6%. Handing Shangbo
repaid RMB 14,700,000.00 successively in
Yiwu Handing 17,845,800.00 May 11, 2021 Ditto
Shangbo Real
Estate Co., Ltd.
JEBEL ALI 63,465,484.42 Mar 9, 2020 In 2020, the Group provided JEBEL ALI FREE
FREE ZONE ZONE TRADER MARKET DEVELOPMENT
TRADER AND OPERATION FZCO financial assistance
MARKET totaling RMB 63,465,484.42; in 2021, the
DEVELOPMENT Group provided it with financial assistance
AND totaling RMB 109,636,517.09; in 2022, the
OPERATION Group provided it with financial assistance
FZCO totaling RMB 41,772,885.00, all at an annual
interest rate of 6-month average EIBOR plus
assistance would be determined based on the
progress of the project.
JEBEL ALI 109,636,517.09 Mar 31, 2021 Ditto
FREE ZONE
TRADER
MARKET
DEVELOPMENT
AND
OPERATION
FZCO
JEBEL ALI 41,772,885.00 May 12, 2022 Ditto
FREE ZONE
TRADER
MARKET
DEVELOPMENT
AND
OPERATION
FZCO
(6).Related-party transfer of assets and restructuring of debts
□Applicable √Not applicable
(7).Remunerations of key officers
√Applicable □Not applicable
Unit: RMB
Amount in the previous
Item Amount in the current period
period
Remunerations of key officers 17,759,375.82 23,333,482.40
(8).Other related-party transactions
√Applicable □Not applicable
Related party entrusted loan
Unit: RMB
Unit 2022 2021
Yisha Chengdu International Trade City Co., 48,000,000.00 -
Ltd.
After deliberation and approval at the fifth meeting of the ninth Board of Directors held by
the Group on December 15, 2022, Yiwugou, an indirectly controlled subsidiary of the Group,
provided an entrusted loan of RMB 48 million yuan 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%.
(1).Receivables
√Applicable □Not applicable
Unit: RMB
Closing balance Opening balance
Item Related party Bad debt Bad debt
Book balance Book balance
provision provision
Accounts
Tonghui Shangbo 6,200,000.00 61,573.54 6,200,000.00 -
receivable
Accounts Yourworld International
receivable Conference Center
Company of Yiwu Market
Development Group Co.,
Ltd.
Accounts Yiwu Gongchen Shangbo
- - 97,351.08 -
receivable Property Co., Ltd.
Accounts
CCCP - - 9,000.00 -
receivable
Total 6,368,814.20 63,250.07 6,676,095.01 -
Other
receivables-
Tonghui Shangbo - - 92,249,275.44 -
interest
receivable
Total - - 92,249,275.44 -
Other
Handing Shangbo 207,750,200.00 - 222,450,200.00 -
receivables
Other
Tonghui Shangbo 116,036,712.09 - - -
receivables
Other Yiwu Gongchen Shangbo
receivables Property Co., Ltd.
Other Hangzhou MicroAnts Co.,
receivables Ltd.
Other
Tonghui Shangbo - - 880,728,548.00 -
receivables
Total 324,350,955.09 - 1,195,428,023.44 -
Yisha Chengdu
Debt
International Trade City 48,079,561.64 - - -
investments
Co., Ltd.
Total 48,079,561.64 - - -
Long-term
Yiwu Shanglv 36,750,000.00 - 41,650,000.00 -
receivables
JEBEL ALI FREE ZONE
Long-term TRADER MARKET
receivables DEVELOPMENT AND
OPERATION FZCO
Total 269,877,115.20 - 214,752,001.51 -
(2).Payables
√Applicable □Not applicable
Unit: RMB
Item Related party Closing book Opening book
balance balance
Accounts Yiwu China Commodities City Property 6,653,942.97 -
payable Service Co., Ltd.
Accounts Yiwu Agriculture Development Co., Ltd. 1,791,720.12 -
payable
Accounts Yiwu Security Service Co., Ltd. 919,817.45 -
payable
Accounts Zhejiang Yemai Data Technology Co., Ltd. 713,020.54 176,873.43
payable
Total 10,078,501.08 176,873.43
Advance from Yiwu China Commodities City Property 583,018.86 612,288.99
customers Development Co., Ltd.
Advance from Yiwu Digital Port Technology Co., Ltd. - 112,281.94
customers
Advance from Redbud Capital - 82,273.06
customers
Advance from Yiwu China Commodities City Property - 32,052.85
customers Service Co., Ltd.
Advance from Yiwu Meipinshu Supply Chain Management - 31,195.06
customers Co., Ltd.
Advance from Huishang Micro-finance - 20,798.09
customers
Total 583,018.86 890,889.99
Contract Yiwu China Commodities City Property 94,027.70 332.00
liabilities Service Co., Ltd.
Contract Zhejiang Yiwu Rural Economic Development 84,905.66 -
liabilities Co., Ltd.
Contract Yiwu Digital Port Technology Co., Ltd. 35,519.71 22,205.25
liabilities
Contract Huishang Micro-finance 11,792.46 7,966.42
liabilities
Contract Yiwu Security Service Co., Ltd. 974.76 2,004.40
liabilities
Total 227,220.29 32,508.07
Other payables Yiwu Guoshen Shangbo Property Co., Ltd. 230,600,000.00 -
Other payables Yiwu Rongshang Real Estate Co., Ltd. 64,418,683.00 -
Other payables Yiwu Chengzhen Property Co., Ltd. 58,803,200.00 200,000,000.00
Yiwu Huishang Redbud Equity Investment
Other payables 16,500,000.00 4,500,000.00
Co., Ltd.
Other payables CCCP 240,000.00 240,000.00
Yiwu Shangbo Yungu Enterprise Management
Other payables 200,000.00 -
Co., Ltd.
Zhejiang Zhijie Yuangang International Supply
Other payables 150,000.00 -
Chain Technology Co., Ltd.
Yiwu Shanglv Investment Development Co.,
Other payables 108,333.33 75,000.00
Ltd.
Other payables Yiwu Heimahui Enterprise Service Co., Ltd. 100,000.00 -
Yourworld International Conference Center
Other payables Company of Yiwu Market Development Group 78,908.97 63,334.76
Co., Ltd.
Yiwu Meipinshu Supply Chain Management
Other payables 57,000.00 57,000.00
Co., Ltd.
Other payables Hangzhou MicroAnts Co., Ltd. 26,000.00 -
Other payables Zhejiang Yemai Data Technology Co., Ltd. 21,328.50 -
Other payables Yiwu Security Service Co., Ltd. 14,740.00 -
Other payables Yiwu China Commodities City Trading Co., Ld. 2,500.00 -
Other payables Huangyuan Shangbo - 607,600,000.00
Yiwu Shangfu Chuangzhi Investment Center
Other payables - 34,000,500.00
(limited partnership)
Hangzhou Binjiang Shangbo Property
Other payables - 14,700,000.00
Development Co., Ltd.
Other payables Huishang Micro-finance - 33,000.00
Other payables Yiwu Digital Port Technology Co., Ltd. - 26,300.00
Other payables Yiwu Gongchen Shangbo Property Co., Ltd. - 3,000.00
Total 371,320,693.80 861,298,134.76
□Applicable √Not applicable
□Applicable √Not applicable
XIII. Share-based payment
√Applicable □Not applicable
Unit: Share, Currency: RMB
Total amount of equity instruments granted by the Company in -
the current period
The total amount of equity instruments exercised by the -
Company during the current period
The total amount of the Company's equity instruments that have 5,200,000.00
lapsed during the current period
Scope of the exercise price of the stock options issued by the NA
Company and the remaining period of the contract at the end of
the period
Scope of the exercise price of other equity instruments issued by The grant prices were
the Company and the remaining period of the contract at the end RMB 2.94 and RMB
of the period 2.39, respectively, both
in 60 months from the
date of grant registration
Other statements
Nil
√Applicable □Not applicable
Unit: RMB
Method for determining the fair value of equity Market price on grant day
instruments on the grant date
Basis for determining the number of Determined based on the number of
exercisable equity instruments incentive objects that have reached the
assessment target, through annual
assessment on the Company’s financial
performance indicators and personal
performance indicators.
Reason for the significant difference between NA
the estimates in the current period and in the
previous period
Cumulative amount of equity-settled share- 63,106,263.66
based payments included in the capital
reserve
Total amount of expenses recognized by 27,154,798.61
equity-settled share payments in the current
period
Other statements
On December 10, 2020, the 2020 fifth provisional general meeting of shareholders of the
Company reviewed and approved the “Plan on the Company's Restricted Stock Incentive Plan
accounting for about 0.927% of the Company's total share capital of 5,443,214,176 shares, of
which 47,920,000 shares were granted for the first time and 2,560,000 shares were reserved.
During the subscription process, 10 incentive objects voluntarily waived the 1,220,000
restricted shares to be granted to them due to personal reasons. Therefore, 46,700,000
restricted shares were actually granted this time, and the number of incentive objects was 395.
On January 15, 2021, the Company's board of directors has completed the registration of the
first grant of restricted stocks.
On September 6, 2021, Zhejiang Zhicheng Certified Public Accountants (Special General
Partnership) issued the capital verification report (Zhezhihuiyizi [2021] No. 17): The Company
has received a total of RMB 5,592,600.00 for subscription of restricted shares from 31
restricted stock incentive objects, including RMB 2,340,000.00 in newly registered capital
(share capital), and RMB 3,252,600.00 in capital reserve. The registered capital and share
capital of the Company before the capital increase were both RMB 5,489,914,176.00, and the
registered capital and share capital after the change were both RMB 5,492,254,176.00. During
this grant registration process, in view of the fact that 3 of the incentive objects to be granted
on the reserved grant date are no longer eligible for incentive objects due to their voluntary
abandonment; 31 incentive objects actually subscribed this time, and 2.34 million shares were
subscribed. On November 4, 2021, the registration procedures for the reserved grant of
restricted stocks involved in this incentive plan were completed, and the Shanghai Branch of
China Securities Depository and Clearing Corporation Limited issued the "Securities Change
Registration Certificate".
The restricted stocks granted for the first time under the restricted stock incentive plan should
be vested in three terms from the first trading day after 24 months after the grant registration is
completed until the last trading day in 60 months after the grant registration is completed. That
is, after the vesting conditions have been satisfied, employees have the right to purchase
stocks at the vesting price. If the vesting conditions of the restricted stock incentive plan have
been satisfied during the vesting period, the incentive objects can apply for the ownership of
stocks and being listed for circulation.
□Applicable √Not applicable
□Applicable √Not applicable
□Applicable √Not applicable
XIV. Commitments and contingencies
√Applicable □Not applicable
Important external commitments, nature and amount thereof as of the balance sheet dates
Unit: RMB
Capital commitments 2022 2021
Signed but not provided 3,451,663,094.71 2,165,863,780.60
Investment commitments:
In 2017, the Group’s wholly-owned subsidiary Yiwu China Commodities City Financial
Holdings Co., Ltd. (“CCCF”) and Shanghai Fuxing Industry Group Co., Ltd. (“Fuxing Group”)
jointly established an industry fund Yiwu China Commodities City Fuxing Investment Center
(limited partnership) (hereinafter referred to as the “FoF”). The FoF as a limited partner
invested in 12 sub-funds including Yiwu Shangfu Chuangzhi Investment Center (limited
partnership) (“Shangfu Chuangzhi Fund”). CCCF subscribed for capital contribution of
RMB998million in the FoF as a limited partner, accounting for 49.9% of the total capital
contribution, and has paid in RMB102.92million. The unpaid portion of its subscribed capital
contribution was promised to be RMB895.08million and was not subject to a term. CCCF also
made capital contribution of RMB9.8million (49% equity) to Yiwu China Commodities City
Investment and Management Co., Ltd. (hereinafter referred to as the “CCCIM”), which was a
general partner of the above FoF and sub-funds. Fuxing made capital contribution of 51% to
and had control over CCCIM.
Shangfu Chuangzhi Fund raised funds of RMB823.36million in total. The FoF has
subscribed for and paid in capital contribution of RMB205.84million as a limited partner
(including the above RMB102.92million from CCCIM and the rest was contributed by Fuxing,
the other limited partner of the FoF). As the other limited partner of Shangfu Chuangzhi Fund,
CCCF has separately subscribed for and paid in capital contribution of RMB617.51million. In
addition, neither the Group nor CCCF have invested in other sub-funds of the FoF.
Subsequently, Shangfu Chuangzhi Fund made capital contribution of RMB820.54million to
subscribe for the increase in the registered capital of Hubei Provincial Asset Management Co.,
Ltd. to acquire 22.667% equity therein. By 2019, 9 out of the above 12 sub-funds had been
deregistered.
In 2018, CCCF learned during its after-investment follow-up management that Fuxing and
its actual controller ZHU Yidong were suspected of having committed a criminal offense and
the 22.667% equity held by Shangfu Chuangzhi Fund in Hubei Provincial Asset Management
Co., Ltd. was frozen by the Public Security Bureau of Shanghai for a term from Sep 6, 2018 to
Sep 6, 2019 due to Fuxing’s contribution in the sources of the capital contribution. As of the
reporting date, the equity was still frozen by the Shanghai Municipal Public Security Bureau.
As of the date of this report, the Group had not received any notice of capital contribution
other than the above contributions that had been made or any notice of action involving the
Group, CCCF, FoF and its sub-funds.
In addition, as of December 31, 2022, the Group had other investment commitments
totaling RMB 281.99 million (December 31, 2021: RMB 1.28078 billion).
(1).Important contingencies on the balance sheet dates
√Applicable □Not applicable
Unit: RMB
Item 2022 2021
Contingent liabilities resulting from 99,645,681.29 158,634,169.67
the guarantee provided externally
According to relevant regulations, before the purchaser of the commercial housing sold by
the Group has obtained the property certificate, the Group shall provide the purchaser with a
bank mortgage guarantee. As of December 31, 2022, the unsettled guarantee amount was
RMB 4,846,333.64 (December 31, 2021: RMB 5,063,333.60). Those guarantees would be
released after the issuance of the property ownership certificates and are thus little likely to
incur losses. Therefore, the management believed that it was not necessary to make provision
for the guarantees.
According to the resolution of the 15th meeting of the 7th Board of Directors on Jul 1,
Shanglv and provided guarantee based on its shareholding ratio. The guarantee was a joint
and several liability guarantee, the maximum amount of guarantee was RMB367.5million and
the term was 11 years. As of December 31, 2022, Yiwu Shanglv actually borrowed RMB
agreement of the guarantee contract, it assumed the guarantee liability of RMB 94,799,347.65
(December 31, 2021: RMB 145,287,733.04) for the Agricultural Bank of China Yiwu Branch.
SCO provided a counter-guarantee for this guarantee.
(2).Notes shall also be made even if the Company has no important contingencies to be
disclosed:
□Applicable √Not applicable
□Applicable √Not applicable
XV. Post-balance sheet date events
√Applicable □Not applicable
Unit: RMB
Effect on Reasons for
financial status inability to
Item Content
and operating estimate the
results effect
Issuance of On March 16, 2023, the Company
super-short-term issued 179-day Zhejiang China
financing bonds Commodities City Group Co., Ltd.’s
(Issue 1) for RMB 1 billion at the rate of
√Applicable □Not applicable
Unit: RMB
Profits or dividends to be distributed 356,594,821.44
Profits or dividends announced 356,594,821.44
through deliberation and approval
□Applicable √Not applicable
□Applicable √Not applicable
XVI. Other important events
(1).Retrospective restatement
□Applicable √Not applicable
(2).Prospective application
□Applicable √Not applicable
□Applicable √Not applicable
(1).Exchange of non-monetary assets
□Applicable √Not applicable
(2).Exchange of other assets
□Applicable √Not applicable
□Applicable √Not applicable
□Applicable √Not applicable
(1).Determination basis and accounting policy of reporting divisions
√Applicable □Not applicable
Information of divisions is reported based on business divisions of the Group. In the
identification of region-based divisions, revenue is attributable to the divisions in the regions
where the clients are located, and assets are attributable to the divisions in the regions where
the assets are located. As the Group’s main operating activities and operating assets are both
concentrated in mainland China, it is not required to report more detailed information on
region-based divisions.
The Group’s businesses are organized and managed separately based on the nature of
business and the products and services provided. Each business division of the Group is a
business department or a subsidiary and provides the products and services that face the risk
different from that faced by other business divisions and bring the compensations different
from those brought by other business divisions. The detailed information on business divisions
are summarized as follows:
(a) Market operation segment refers to the business that the Group is engaged in market
operation, including the collection of business space usage fees and the rent of auxiliary
buildings and office buildings;
(b) The commodities sales division engages in the purchase and sale of goods such as
export trade;
(c) The hotel service division engages in the operation of hotels including accommodation
and catering services;
(d) The exhibition advertising division engages in the design, production, placement and
agency of advertisements;
(e) Other services division covers the provision of market-related auxiliary services.
The transfer pricing between divisions is made based on the prices offered to third parties
and the then prevailing market prices.
(2).Financial information of reporting divisions
√Applicable □Not applicable
Unit: RMB million
Item Market Sales of Hotel Exhibition Other Set-offs Total
operation goods service and services among
advertising divisions
Revenue from
external transactions
Revenue from inter-
division transactions
Profits before tax 1,174 29 -46 -8 -11 -13 1,151
Total assets 40,624 1,199 440 176 10,127 20,454 32,112
Total liabilities 25,052 1,060 478 97 5,064 14,922 16,829
Capital expenditures 1,501 1 2 3 2,378 - 3,885
Long-term equity
investment in joint
ventures and
associates
(3).If the Company does not have reporting divisions or is unable to disclose the total
assets and total liabilities of each division, please explain
□Applicable √Not applicable
(4).Other statements
□Applicable √Not applicable
□Applicable √Not applicable
□Applicable √Not applicable
XVII. Notes to main items in financial statements of parent company
(1).Disclosure based on account age
√Applicable □Not applicable
Unit: RMB
Account age Closing book balance
Within 1 year
In which: sub-items
Within 1 year 20,584,932.68
Within 1 year 20,584,932.68
Over 3 years -
Total 22,449,888.75
(2).Categorized disclosure based on the bad debt provision method
√Applicable □Not applicable
Unit: RMB
Closing balance Opening balance
Category Book balance Bad debt provision Book balance Bad debt provision
Book Book
Proportion Provision value Proportion Provision value
Amount Amount Amount Amount
(%) ratio (%) (%) ratio (%)
Accounts
receivable for
which bad debt
- - - - - - - - - -
provision is
made
individually
Accounts
receivable for
which bad debt 22,449,888.75 100.00 417,498.04 1.86 22,032,390.71 23,657,185.16 100.00 27,502.47 0.12 23,629,682.69
provision is
made by group
Among them:
Accounts
receivable for
which the bad
debts are
provided by
combination of
credit risk
characteristics
Total 22,449,888.75 / 417,498.04 / 22,032,390.71 23,657,185.16 / 27,502.47 / 23,629,682.69
Accounts receivable for which bad debt provision is made individually:
□Applicable √Not applicable
Explanation for making bad debt provision for accounts receivable by group:
√Applicable □Not applicable
Items for which the bad debts are provided for by combination: by combination of credit risk
characteristics
Unit: RMB
Closing balance
Name Accounts Bad debt Provision ratio
receivable provision (%)
Provision for bad debt by combination of
credit risk characteristics
Total 22,449,888.75 417,498.04 1.86
Standard for recognition of provision for bad debt by combination of credit risk characteristics
and descriptions:
□Applicable √Not applicable
If the bad debt provision is made according to the general model of expected credit loss,
please refer to the disclosure of other receivables:
√Applicable □Not applicable
Unit: RMB
Estimated book Expected Expected Estimated book Expected Expected
Account age balance in credit loss credit loss in balance in default credit loss credit loss in
default rate (%) whole rate (%) whole
duration duration
Within 1
year
Total 22,449,888.75 417,498.04 23,657,185.16 27,502.47
(3).Provisions for bad debts
√Applicable □Not applicable
Unit: RMB
Amount of change during the
Opening current period Closing
Category
balance Recovery or balance
Provision
reversal
Bad debt 27,502.47 762,218.41 372,222.84 417,498.04
provision for
accounts
receivable
Total 27,502.47 762,218.41 372,222.84 417,498.04
In which the recovered or reversed amount is important:
□Applicable √Not applicable
(4).Accounts receivable actually written off during the current period
□Applicable √Not applicable
Information of write-off of important accounts receivable
□Applicable √Not applicable
(5).Accounts receivable from the five debtors with the highest closing balance
□Applicable √Not applicable
(6).Accounts receivable derecognized due to transfer of financial assets
□Applicable √Not applicable
(7).Amounts of assets and liabilities formed by the transfer of accounts receivable and
continuing involvement
□Applicable √Not applicable
Other notes:
□Applicable √Not applicable
Presentation of items
√Applicable □Not applicable
Unit: RMB
Item Closing balance Opening balance
Interest receivable - 92,249,275.44
Other receivables 329,607,469.39 1,114,837,610.55
Total 329,607,469.39 1,207,086,885.99
Other notes:
□Applicable √Not applicable
Interest receivable
(1).Classification of interest receivable
√Applicable □Not applicable
Unit: RMB
Item Closing balance Opening balance
Cash occupation fee for - 92,249,275.44
receivables
Total - 92,249,275.44
(2).Significant overdue interest
□Applicable √Not applicable
(3).Bad debt provision
□Applicable √Not applicable
Other notes:
□Applicable √Not applicable
Dividend receivable
(1).Dividend receivable
□Applicable √Not applicable
(2).Important dividend receivable with an account age longer than 1 year
□Applicable √Not applicable
(3).Bad debt provision
□Applicable √Not applicable
Other notes:
□Applicable √Not applicable
Other receivables
(1). Disclosure based on account age
√Applicable □Not applicable
Unit: RMB
Account age Closing book balance
Within 1 year
In which: sub-items
Within 1 year 4,851,948.94
Within 1 year 4,851,948.94
Over 3 years 2,415,046.44
Bad debt provision for other receivables -787,922.23
Total 329,607,469.39
(2). Classification based on the nature of accounts
√Applicable □Not applicable
Unit: RMB
Nature of receivable Closing book balance Opening book balance
Financial assistance 323,786,912.09 1,103,178,748.00
receivable from joint ventures
Withholdings, deposit and 5,772,216.82 11,391,654.06
margin
Reserve 48,340.48 267,208.49
Total 329,607,469.39 1,114,837,610.55
(3). Bad debt provision
√Applicable □Not applicable
Unit: RMB
Stage 1 Stage 2 Stage 3
Expected Expected credit Expected credit
Bad debt Total
credit loss in loss in the entire loss in the entire
provision
the coming 12 duration (credit has duration (credit has
months not been impaired) been impaired)
Balance as at
January 1, 2022
Balance as of
January 1, 2022
in current period
Provision made
in the current 26,743.27 26,743.27
period
Current reversal 128,241.54 128,241.54
Current write-off 3,888.60 3,888.60
Balance as of
December 31, 787,922.23 787,922.23
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
Opening period Closing
Category
balance Recovery or Charge-off balance
Provision
reversal or write-off
Bad debt provision
for other receivables
Total 893,309.10 26,743.27 128,241.54 3,888.60 787,922.23
In which the recovered or reversed amount is important:
□Applicable √Not applicable
(5). Other receivables actually written off during the current period
√Applicable □Not applicable
Unit: RMB
Item Amount written-off
Other receivables actually written off 3,888.60
Of which, important write-offs of other receivables:
□Applicable √Not applicable
Notes on the write-off of other receivables:
□Applicable √Not applicable
(6). Other receivables from the five debtors with highest closing balance
√Applicable □Not applicable
Unit: RMB
Weight in the
total closing Bad debt
Nature of Account balance of provision
Debtor Closing balance
receivable age other Closing
receivables balance
(%)
Yiwu Handing Shangbo Real Financial
Estate Co., Ltd. assistance
Yiwu Tonghui Shangbo Real Financial
Estate Co., Ltd. assistance
Yiwu China Commodities City
Current Within 1
Information Technology Co., 648,400.16 0.20
accounts year
Ltd.
Zhejiang Yuntong Advertising Current Over 3
Co., Ltd. accounts years
Yiwu Market Development Current Within 1
Service Center Co., Ltd. accounts year
Total / 325,594,647.25 / 98.55 596,580.00
(7). Receivables involving government grants
□Applicable √Not applicable
(8). Other receivables derecognized due to transfer of financial assets
□Applicable √Not applicable
(9). Amounts of assets and liabilities formed by the transfer of other receivables and
continuing involvement
□Applicable √Not applicable
Other notes:
□Applicable √Not applicable
√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
Investment in
associates and joint 4,800,215,865.20 - 4,800,215,865.20 4,625,942,083.47 - 4,625,942,083.47
ventures
Total 9,780,422,313.34 570,000,000.00 9,210,422,313.34 8,816,000,020.80 570,000,000.00 8,246,000,020.80
(1). Investment in subsidiaries
√Applicable □Not applicable
Unit: RMB
Current Closing
Decrease in
Increase in the provision balance of
Investee Opening balance the current Closing balance
current period for impairment
period
impairment provision
Yiwu China Commodities City
Financial Holdings Co., Ltd.
Haicheng Yiwu China Commodities
City Investment Development Co., 570,714,398.12 562,987.97 571,277,386.09 - 570,000,000.00
Ltd.
Yiwu Shangbo 300,000,000.00 - 300,000,000.00 -
Yiwu Commodities City Gonglian
Property Co., Ltd.
Zhejiang China Commodities City
Group Commercial Factoring Co., 120,000,000.00 59,576.13 120,059,576.13 -
Ltd.
Yiwu China Commodities City Big
Data Co., Ltd.
Yiwu China Commodities City Import
and Export Co., Ltd.
Yiwu China Commodities City Supply
Chain Management Co., Ltd.
Yiwu China Commodities City
Overseas Investment and 100,790,663.70 749,590.26 101,540,253.96 -
Development Co., Ltd.
Yiwu China Commodities City
Tourism Development Co., Ltd.
Yiwu China Commodities City
Logistics and Distribution Co., Ltd.
Zhejiang Huajie Investment and
Development Co., Ltd.
Yiwu China Commodities City
Information Technology Co., Ltd.
Hangzhou Shangbo Nanxing
Property Co., Ltd.
Yiwu China Commodities City
Exhibition Co., Ltd.
Yiwu Comprehensive Bonded Zone
Operation and Management Co., Ltd.
Yiwu China Commodities City Assets
Operation and Management Co., Ltd.
Yiwu China Commodities City
Advertising Co., Ld.
Yiwu China Commodities City
Research Institute Co., Ltd.
Zhejiang Yindu Hotel Management
Co., Ltd.
Yiwu China Commodities City
Commerce and Trade Service 100,000.00 500,000.00 600,000.00 -
Training Center Co., Ltd.
Yiwu Shangbo Shuzhi Enterprise
- 225,600,000.00 225,600,000.00 -
Management Co., Ltd.
Zhejiang Xunchi Digital Technology
- 444,368,982.89 444,368,982.89 -
Co., Ltd.
Total 4,190,057,937.33 830,492,247.11 40,343,736.30 4,980,206,448.14 - 570,000,000.00
(2). Investment in associates and joint ventures
√Applicable □Not applicable
Unit: RMB
Change in the current period
Closing
Investment
balance
profits or
Investment Opening amount Closing amount of
Additional Decrease in losses Declared a cash
Unit Balance Balance impairme
investment investment recognized dividend or profit
nt
with the equity
provision
method
Yiwu Shanglv Investment
Development Co., Ltd.
Yiwu Rongshang Real 429,128,964.5
Estate Co., Ltd. 2
Yiwu Chuangcheng 134,862,766.9
Real Estate Co., Ltd. 2
Others 50,165,047.97 50,639,041.32 - 100,804,089.29
Sub-total 627,934,867.4
Hangzhou Binjiang
Shangbo Property 34,476,229.08 24,500,000.00 3,893,136.86 13,869,365.94 -
Development Co., Ltd.
Yiwu Huishang Micro-
finance Co., Ltd.
Zhejiang Chouzhou
Financial Lease Co., 426,020,849.24 63,184,700.67 489,205,549.91
Ltd.
Pujiang Lvgu Property
Co., Ltd.
Yiwu China 198,926,743.9
Commodities City 7
Property Development
Co., Ltd.
Zhejiang Zhijie
Yuangang
International Supply - -4,436,560.67 145,563,439.33
Chain Technology Co.,
Ltd.
Others 107,524,955.79 - 28,424,026.87 135,948,982.66
Sub-total 150,000,000.0 304,460,680.1
Total 4,625,942,083.47 30,710,000.00 877,411,765.94 4,800,215,865.20
Other notes:
Nil
(1). Overview of operating revenue and operating cost
√Applicable □Not applicable
Unit: RMB
Amount in the current period Amount in the previous period
Item
Revenue Cost of sales Revenue Cost of sales
Main business 1,661,326,251.95 856,617,946.98 2,538,880,872.96 944,011,791.40
Other 280,256,309.07 80,555,208.55 383,244,529.97 118,870,105.91
businesses
Total 1,941,582,561.02 937,173,155.53 2,922,125,402.93 1,062,881,897.31
(2). Revenue generated from contracts
√Applicable □Not applicable
Unit: RMB
Classified by type of contract Total
Types of goods
The use of shops in the Commodity City and 1,508,941,417.59
its supporting services
Hotel accommodation and catering services 190,167,588.25
Revenue from use fees 35,930,028.91
Other services 3,007,248.54
Classified by business area
Chinese mainland 1,738,046,283.29
Classified by contract period
Revenue confirmed at certain time point
Hotel catering services 103,890,861.39
Other services 2,907,210.24
Revenue confirmed during certain time
period
The use of shops in the Commodity City 1,508,941,417.59
and its supporting services
Hotel accommodation service 86,276,726.86
Revenue from use fees 35,930,028.91
Other services 100,038.30
Total 1,738,046,283.29
Description of the income from contracts:
√Applicable □Not applicable
The income recognized in the current year and included in the opening book value of
contractual liabilities is as follows:
Unit: RMB
Type of contract Current period
The use of shops in the Commodity City and its
supporting services
Hotel accommodation service 11,260,471.19
Other services 1,801,326.20
Total 1,262,501,548.95
(3). Contract performance obligations
√Applicable □Not applicable
The information related to the performance obligations of the Group is as follows:
The use of shops in the Commodity City and its supporting services
The contractual performance obligation is fulfilled when providing the use of shops in the
Commodity City and the supporting services for business. For the use of shops in the
Commodity City and the supporting services for business, the progress of contract
performance is determined based on the number of using days of the shops. Customers
usually need to pay in advance before the use of shops in the Commodity City and the
supporting services for business are provided.
Hotel accommodation business
The performance obligation is fulfilled when providing hotel accommodation services. For
the hotel accommodation business, the progress of contractual performance is determined
based on the number of days of stay. For hotel accommodation services, a partial deposit is
collected from the customer first, and the remaining contract price is usually collected upon the
completion of the hotel accommodation services.
Hotel catering business
The performance obligation is fulfilled when the hotel catering services are provided. The
contract price for hotel catering services is usually charged when the hotel catering services
are performed.
Fixed -time paid funding services
The performance obligation is fulfilled when the fixed-time paid funding service is
provided. For the fixed-time paid funding service, the progress of contractual performance is
determined based on the number of using days the fund. For the fixed-time paid funding
service, the contract price is usually charged regularly as agreed in the contract.
(4). Amortization to remaining contract performance obligations
□Applicable √Not applicable
Other notes:
As of December 31, 2022, the transaction price allocated to the remaining performance
obligations was RMB 3,032,044,768.16. The Group expects that this amount will be
recognized as an income in the coming 5 years with the progress of relevant service provision.
√Applicable □Not applicable
Unit: RMB
Amount in the Amount in the
Item
current period previous period
Income from long-term equity investment with the - 40,000,000.00
cost method
Income from long-term equity investment 932,395,547.67 544,982,046.87
calculated with the equity method
Investment income from disposal of long-term 270,094.36 -
equity investment
Dividend income from other equity instruments 12,542,733.80 12,542,733.80
investment during holding period
Investment income from disposal of held-for- 47,694.29 67,265.74
trading financial assets
Income acquired from other non-current financial 2,978,950.32 728,950.32
assets during the holding period
Total 948,235,020.44 598,320,996.73
Other notes:
Nil
□Applicable √Not applicable
XVIII. Supplements
√Applicable □Not applicable
Unit: RMB
Item Amount Description
Profits or losses from the disposal of
-1,130,587.34
non-current assets
Government grants that are recognized
Please refer to details
in the current profit or loss, excluding
of other income and
government grants that are closely
government grants
related to the businesses of the 38,802,436.81
accounted for profit or
Company and are provided in a fixed
loss for the current
amount or quantity according to the
period
unified national standards
Cash occupation fees charged from
Cash occupation fee for
non-financial enterprises that are 52,315,023.80
receiving financial aid
recognized in the current profit or loss
Profits or losses from changes in fair
value of held-for-trading financial
assets, derivative financial assets,
financial liabilities held for trading and
derivative financial liabilities, and
investment income from the disposal of Mainly due to profits or
held-for-trading financial assets, 166,489.60 losses arising from the
derivative financial assets, financial change in fair value
liabilities held for trading, derivative
financial liabilities and other debt
instruments, except for effective
hedging during the ordinary course of
business
Profits and losses arising from external
entrusted loans
Net income from other non-operating
activities
Other profit and loss items that meet the Mainly due to the
definition of non-recurring profit and -975,086,670.50 implementation of the
loss rent reduction policy
Less: effect of income tax -223,084,975.36
Effect of minority interest 1,843,816.52
Total -660,368,461.52
Explanations shall be made for the non-recurring items identified by the Company according
the Explanatory Announcement No. 1 on Information Disclosure by Companies Publicly
Offering Securities – Non-recurring Items, and for the Company identifying the non-recurring
items enumerated in the Explanatory Announcement No. 1 on Information Disclosure by
Companies Publicly Offering Securities – Non-recurring Items as recurring items.
□Applicable √Not applicable
√Applicable □Not applicable
Weighted average EPS
Profits in the reporting period
ROE (%) Basic EPS Diluted EPS
Net profits attributable to 7.30 0.20 0.20
common shareholders of the
Company
Net profits attributable to 11.67 0.32 0.32
common shareholders of the
Company after deducting non-
recurring profits and losses
□Applicable √Not applicable
□Applicable √Not applicable
Chairman of Board of Directors: ZHAO Wenge
Date of approving by the board of directors for release: April 12, 2023
Amendment
□Applicable √Not applicable
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