小商品城: 2023年半年度报告（英文版）-j9九游app
semi-annual report for 2023
stock code: 600415 stock short name: 小商品城
zhejiang china commodities city group
co., ltd.
semi-annual report for 2023
semi-annual report for 2023
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. this semi-annual report has not yet been audited.
iv. zhao wenge, legal representative, wang dong, person in charge of finance, and
zhao difang, head of finance department (finance manager) hereby state that, they
guarantee the truthfulness, accuracy and completeness of the financial report in the
semi-annual report.
v. the profit distribution plan for the reporting period or the plan for public reserve
funds into share capital that was approved by the board of directors
nil
vi. risk statement with forward-looking representations
√applicable □not applicable
the forward-looking representations involved in this report such as future plans and
development strategies do not constitute the company’s substantial commitments to investors.
investors shall watch out for the investment risks.
vii. is the company’s cash occupied by its controlling shareholder or any of other
affiliates for non-operational purposes?
no
viii. has the company provided external guarantee in violation of the prescribed
decision-making procedures?
no
semi-annual report for 2023
ix. whether there is circumstance that more than half of the directors cannot
guarantee the authenticity, accuracy and completeness of the semi-annual report
disclosed by the company
no
x. reminder of major risks
the company has described the risks that may exist in this report in details. please refer to
“potential risks” in “section iii discussion and analysis of managers” of this report.
xi. other
□applicable √not applicable
semi-annual report for 2023
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 resolutions of the 12th meeting of the 9th board of directors and the
inspection 5th meeting of the 9th board of supervisors
original copies of all company documents and announcements publicly
disclosed on the website designated by the china securities
regulatory commission during the reporting period
semi-annual report for 2023
section i. definitions
for the purpose of this report, unless otherwise stated in the context, the following terms shall
have the following meanings:
definitions
sco means yiwu state-owned capital operation co.,
ltd.
mdg means yiwu market development group co., ltd.
ccch means yiwu china commodities city holdings
limited
zhijie yuangang means zhejiang zhijie yuangang international
supply chain technology co., ltd.
yiwu pay means payment brand wholly-owned by zhejiang
china commodities city group 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.
handing shangbo means yiwu handing shangbo property co., ltd.
the company, the listed means zhejiang china commodities city group
company or the group co., ltd.
semi-annual report for 2023
section ii. company profile and financial highlights
i. company profile
chinese name zhejiang china commodities city group co., ltd.
chinese short name 小商品城
english name zhejiang china commodities city group co.,ltd
english short name yiwu ccc
legal representative zhao wenge
ii. contact information
board secretary securities affairs representative
name xu hang rao yangjin
address haiyang business building, no.105 haiyang business building, no.105
futian road, yiwu futian road, yiwu
telephone 0579-85182812 0579-85182812
fax 0579-85197755 0579-85197755
email hxu@cccgroup.com.cn hxu@cccgroup.com.cn
iii. introduction to changes in basic information
registered address haiyang business building, no.105 futian road,
yiwu, zhejiang province
office address haiyang business building, no.105 futian road,
yiwu, zhejiang province
postal code at the office address 322000
corporate website www.chinagoods.com
email 600415@cccgroup.com.cn
iv. changes in information disclosure and filing place
newspaper selected by the company for china securities journal, shanghai securities news
information disclosure and securities times
website for publishing the semi-annual www.sse.com.cn
report
place for access to the company’s securities department of the company
semil-annual report
v. stock profile
type of stock exchange stock short name stock code stock short name
before change
a share shanghai stock 小商品城 600415 nil
exchange
vi. other relevant information
□applicable √not applicable
semi-annual report for 2023
vii. main accounting data and financial indicators of the company
(i) major accounting data
unit: rmb
major accounting data jan-jun 2023 jan-jun 2022 yoy change (%)
operating revenue 5,160,991,043.25 4,207,027,616.46 22.68
net profits attributable to
shareholders of the listed 1,998,333,646.74 1,222,205,978.81 63.50
company
net profits attributable to
shareholders of the listed
company with non-recurring
profits and losses excluded
net cash flow from operating
activities
jun 30, 2023
jun 30, 2023 dec 31, 2022 versus dec 31,
net assets attributable to
shareholders of the listed 17,019,609,817.35 11.51
company
total assets 32,111,004,317.3
(ii) major financial indicators
jan-jun jan-jun
major financial indicators yoy change (%)
basic eps (rmb) 0.37 0.22 68.18
diluted eps (rmb) 0.37 0.22 68.18
basic eps after deducting non-recurring
gains and losses (rmb/share)
weighted average roe (%) 12.30 8.05 up 4.25 ppt
weighted average roe after deducting
non-recurring gains and losses (%)
illustration on major accounting data and financial indicators
√applicable □not applicable
revenue of the second district east new energy product market and the expansion of
commodity sales scale.
million yoy, mainly due to the official operation of the second district east new energy
product market, which resulted in an increase of rmb 531 million in operating gross profit, a
yoy increase of rmb 449 million in investment income and asset disposal income, and a
yoy increase of rmb 189 million in income tax expenses.
non-recurring gains and losses increased by rmb 658 million yoy, due to an increase of
rmb 776 million and rmb 118 million respectively in net profit and non-recurring profits and
losses attributable to shareholders of the listed company compared with the same period of
the previous year.
viii. differences in accounting data between foreign and chinese accounting standards
□applicable √not applicable
semi-annual report for 2023
ix. non-recurring profits and losses and amounts thereof
√applicable □not applicable
unit: rmb
non-recurring profits and losses amount notes (if applicable)
profits and losses from the disposal mainly due to the income
of non-current assets from asset disposal
government grants that are
recognized in the current profits and
losses, excluding the government
please refer to the details of
grants that are closely related to the
government subsidies
normal operation of the company 14,351,408.58
included in other income for
and are provided in a fixed amount
details
or quantity continuously according
to the national polices and certain
standards
cash occupation fees charged from
non-financial enterprises that are cash occupation fee for
recognized in the current profits and receiving financial aid
losses
profits and losses from changes in
fair value of held-for-trading
financial assets, derivative financial
assets, financial liabilities held for
trading and derivative financial mainly due to changes in fair
liabilities, and investment income value gains and losses of
from the disposal of held-for-trading -6,192,155.35 other non-current financial
financial assets, derivative financial assets and trading financial
assets, financial liabilities held for assets held
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 deduction of asset disposal
non-operating activities and government subsidies
mainly due to corporate
less: effect of income tax 47,508,712.07 income tax corresponding to
asset disposal income
effect of minority interest
(after-tax)
total 158,967,822.07
explanations shall be made for the non-recurring profits and losses identified by the company
according to the explanatory announcement no. 1 on information disclosure by companies
publicly offering securities – non-recurring profits and losses, and for the company identifying
the non-recurring profits and losses enumerated in the explanatory announcement no. 1 on
information disclosure by companies publicly offering securities – non-recurring profits and
losses as recurring profits and losses.
□applicable √not applicable
x. other
□applicable √not applicable
semi-annual report for 2023
section iii. discussion and analysis of managers
i. description of the industry and the company’s main business during the reporting
period
(i) main business of the company
the company is committed to building a shared trade service platform for global small and
medium-sized enterprises, with the strategic positioning of "world-class international trade
comprehensive service provider", continuously enriching and improving the three major
ecosystems: commodity display ecology, service supporting ecology, and trade performance
ecology, in order to reduce trade costs, shorten trade chains, improve trade efficiency, and
continue to create value for the circulation of small commodities, consolidate the advantageous
position of china's daily consumer goods supply chain in global trade, and serve the new
development pattern of domestic and international dual circulation.
the product display ecology includes offline physical market operation and online platform
services, supporting service ecology includes exhibition and hotel sectors, and trade
performance ecology includes warehousing and logistics, self operated trade and payment,
credit reporting, factoring, and other businesses.
(ii) the main business model of the company
(1) market operation
the market operation business is mainly operated and managed by the subordinate market
operation companies of the company. 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. at present, the markets operated by the company
include the first to fifth district markets, the import market, the first district eastern expansion and
second district east market, the huangyuan market, and the international production materials
market of the international trade city.
(2) online trading platform
the yiwu small commodities city platform (referred to as "chinagoods platform") is a b2b
digital trade comprehensive service platform that relies on the company's 75000 physical shops
in the market, serves 2.1 million small and micro enterprises in the upstream and downstream of
the industrial 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. the current revenue model of the platform
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is to collect service fees by providing basic services and value-added services for members,
digital advertising business services, digital services for financial institutions, and fourth-party
services.
(1) exhibition
the company's exhibition sector has developed into a professional exhibition enterprise
with one-stop service that integrates domestic exhibition organization, overseas exhibition,
exhibition hall management, and exhibition supporting services. the exhibition section mainly
undertakes exhibition projects such as china yiwu international small commodity (standard)
expo (ufi), china yiwu import goods expo (ufi), china yiwu international forest products
expo (ufi), and self-operated projects such as overseas exhibitions (korean import goods
exhibition, china consumer goods (russia) brand exhibition, benin (west africa) china
commodity exhibition, etc.), and engaged in exhibition hall operation, development, leasing and
other exhibition industry chain services. the company also undertakes the operation and
management of yiwu international expo center venues.
(2) hotel
the hotel service business is mainly operated and managed by zhejiang yindu hotel
management co., ltd., a subsidiary of the company. the hotels operated by the company
mainly provide comprehensive services such as accommodation, catering, leisure and
entertainment, and conferences, etc. the main revenue sources of the hotels include room sales,
catering sales, commodity sales and venue leasing, etc. sales of guest rooms and catering
mainly rely on channels such as clients agreement, conferences, wedding banquets and
recommendation by operators of online booking platforms.
(1) warehousing and logistics
the company's warehousing sector is led by warehousing, strengthening the service
capacity of yiwu freight warehouses, regional warehouses, and overseas warehouses, and
deeply entering various links of the trade chain. at present, there are three parks: chinagoods
shared cloud warehouse, houzhai warehouse park, and huanqiu yida supply chain industrial
park. chinagoods shared cloud warehouse is market-oriented and uses digital means to form a
fully visible warehouse system. it combines public warehouses, express package distribution,
and international consolidation to provide convenient warehousing services for market operators,
domestic and foreign buyers, logistics and express delivery companies, as well as freight
forwarders and foreign trade companies. houzhai warehouse park and huanqiu yida supply
chain industrial park are based on warehousing systems, providing efficient, convenient, and
three-dimensional warehousing service systems for market operators.
(2) self-operated trade
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icmall is the initials of international commodity mall, which is a subsidiary of the
well-known chinese trademark "yiwu china small commodities city". "爱喜猫" is the chinese
transliteration of icmall. with the brand vision of "discovering the best products in the world",
icmall combines over 20000 high-quality products from imported goods and trendy domestic
products, covering six categories: home life, beauty and skincare, mother and baby products,
snacks and beverages, entertainment and cultural creativity, and toy digital. icmall strives to
create a super supply chain channel brand in new fashion, new consumption, and new
experience application scenarios.
as a self-owned brand that focuses on the creative development of trendy domestic
products, "yiwu good products and good brands" provides empowering services for the
improvement and upgrading of small commodities in yiwu and even across china through the
entire chain of product development and design, production and manufacturing, quality and price,
marketing planning, after-sales service, and other aspects. in the future, the brand will strive to
create a good products brand standardized output system with good prices, quality, and service.
the company enters the upstream and downstream of market trade through self-operated
trade, fully leveraging its platform and brand advantages, linking trade with the market and
nurturing the market, and forming a virtuous and orderly cycle.
(3) payment, credit reporting, factoring and other businesses
the company's "yiwu pay" is a licensed third-party payment institution supervised by the
people's bank of china, providing convenient and secure electronic payment solutions for
merchants through internet payment technology. yiwu pay was established in 2012. with its
professional global payment service capabilities, financial compliance capabilities, and security
risk control capabilities, yiwu pay provides a one-stop cross-border payment solution for
domestic and foreign customers, enabling them to receive payments in compliance, settle
foreign exchange easily, improve fund utilization efficiency, and ensure safe receipt of funds.
the business of yiwu pay covers various scenarios such as online and offline b2b payments,
cross-border payments, among which cross-border payment revenue is the main revenue of the
company. domestic payment business: as a licensed payment institution, "yiwu pay" links
major domestic banking institutions through clearing organizations such as unionpay and
netsunion clearing corporation, providing merchants with collection services such as bank card
fast payment, qr code scanning payment, wallet payment, and e-cny payment, and obtains
payment fee. cross-border payment business: "yiwu pay" provides one-stop cross-border fund
services such as global collection and payment, foreign exchange management, etc. for import
and export enterprises, and obtains cross-border payment fee. payment service business: "yiwu
pay" collaborates with the credit consulting company, banks and other institutions to provide
merchants with a financing credit model based on payment data as the underlying layer, and the
credit reporting company uniformly encapsulates and outputs it to financial institutions such as
banks, providing financing services and obtains corresponding service fees.
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the credit consulting company was established in july 2014, collaborating with government
departments to promote the construction of the city's social credit system. it has established a
data system centered on public data, commercial data, and e-commerce data. by constructing
precise enterprise portraits, it provides technical support in credit verification, joint rewards and
punishments, inclusive finance, and other fields of government and financial institutions, and
empowers trade ecological value with data elements. currently, it covers 995500 legal entities,
with a total of over 158 million pieces of data. through the enterprise credit information query
platform, the credit consulting company provides enterprise credit information query services for
financial institutions and carry out data management for inclusive finance of banks. currently,
there are more than 30000 credit granting subjects, with a total granted credit amount of rmb
development, system interface docking, and data support based on inclusive finance for banking
and insurance institutions.
zhejiang china commodities city group commercial factoring co., ltd. (referred to as
"china commodities city factoring") was established in january 2022 and is a local financial
organization approved by the zhejiang provincial local financial supervision and
administration bureau. china commodities city factoring is mainly engaged in trade financing,
accounts receivable settlement, management and collection, customer credit investigation and
evaluation, and non commercial bad debt guarantee through the transfer of accounts receivable.
china commodities city factoring mainly serves the merchants of yiwu international trade city,
and the main income comes from interests and handling fees for factorage financing. after the
expansion of business scale in the later stage, china commodities city factoring can cooperate
with banks and other funding parties to obtain service fees.
(iii) industry situation
according to the definitions in the guidelines for industry classification of listed companies
(revised in 2012) released by the csrc, the company is engaged in “business service” (l72) in
“lease and business service” (l).
(1) situation of yiwu market
yiwu international trade city has ranked first in the national comprehensive market for 32
consecutive years in terms of market transaction volume, forming a relatively large industrial
cluster in the field of small commodity circulation. in 2023, the second district east new energy
market gained a new construction area of 131000 square meters, and more than 490 new shops
were added on the first and second floors, further expanding the offline market. the yiwu
international trade city gathers 26 major categories and over 2.1 million types of commodities,
radiating to 233 countries and regions, driving the development of 2.1 million small and
medium-sized enterprises and the employment of 32 million industrial workers. every year, more
than 560000 foreign merchants come to yiwu for procurement, and more than 15000 foreign
semi-annual report for 2023
merchants from more than 100 countries and regions reside in yiwu. there are over 8000
foreign-funded entities in yiwu.
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 8 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.
in the first half of 2023, the total import and export amount of yiwu city reached rmb 268.97
billion, a yoy increase of 21.0%. among them, the export amounted to rmb 237.41 billion , a
yoy increase of 17.0%; the import amounted to rmb 31.56 billion, a yoy increase of 63.5%.
yiwu vigorously explores emerging markets, creates high-level open platforms, cultivates and
strengthens advantageous industries, and continuously gathers new momentum for foreign
trade. from the perspective of trade regions, in the first half of 2023, yiwu's import from and
export to africa reached rmb 49.38 billion, an increase of 31.0%; import from and export to latin
america amounted to rmb 40.73 billion, an increase of 37.3%. import from and export to india,
brazil, and saudi arabia amounted to rmb 13.03 billion, rmb 6.77 billion yuan, and rmb 6.74
billion, respectively, an increase of 13.6%, 43.5%, and 56.9%, respectively. over the same
period, import from and export to countries along the "belt and road" totaled rmb101.2 billion,
an increase of 21%.
yiwu city exported rmb 181 billion through market procurement trade, an increase of
growth by 14.3 percentage points. the company integrates market resources through digital
means, driving the iterative upgrading of the market procurement trade method to "version 2.0".
the market procurement trade method has become the main force driving the growth of yiwu's
exports. regionally, southeast asia, the middle east and latin america continue to occupy a
high market share in the trade with yiwu. countries along the "belt and road" and in the "rcep"
region continue to bring opportunities to the yiwu market, and rmb going global has become a
new highlight of yiwu's market.
during the reporting period, the total passenger flow of buses, railways, and airlines in the
urban area of yiwu was 10.4063 million, a yoy increase of 69.01%. the postal industry in yiwu
city has completed a total of over 5 billion pieces of parcels, a year-on-year increase of over 12%.
the total capital and cash flow of bank branches around the yiwu market was rmb 1.78 trillion,
a year-on-year increase of 26.82%. the turnover of market funds continued to be active, with
deposits and loans exceeding rmb a trillion, a year-on-year increase of over 15%. yiwu became
the first county-level city in zhejiang province (excluding districts) to successfully enter the
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trillion-yuan level of deposit and loan, achieving a historic leap in the development of the regional
financial industry.
(2) digital economy
① digital economy
a. development of digital trade of the company
in 2022, the scale of china's digital economy reached rmb 50.2 trillion, a year-on-year
increase of 10.3%. it has been significantly higher than the nominal gdp growth rate of the same
period for 11 consecutive years. the proportion of the digital economy to gdp is equivalent to
the proportion of the secondary industry to the national economy, reaching 41.5%.
centering on the strategic deployment of building "digital zhejiang" made by the general
secretary xi jinping during his work in zhejiang, the company will continue to promote the
digital transformation of market mass trade, and constantly shape the new competitive
advantages of yiwu market through the reconstruction of trade mode and business form and the
reshaping of market scene ecology. from the perspective of domestic enterprise structure, small
and medium-sized enterprises with large volume and rapid growth are the backbone of china's
economic development, but subject to multiple factors such as assets, technology and
experience, the digital level of small and medium-sized enterprises is generally low. the platform
can use the advantages of its own traffic, data and industrial layout to build diversified solutions
from design and production, matching transactions, customs declaration and performance,
foreign exchange settlement and other services around the core pain points of smes, such as
marketing, service and capital.
at present, the transformation of yiwu market has entered the digital stage from the
informatization stage, leading the way and demonstrating the high-quality development of the
commodity market led by digitization. in the "top 10 digital leaders in china's commodity
market" list released for the first time at the 12th china commodity market summit in 2021, yiwu
china commodities city ranked first. in 2022, the digital free trade application of small
commodities was awarded the "best application" for digital reform in zhejiang province.
the core value of digital trade is data resources. data is not only a carrier for national
security and personal privacy, but also an internal driving force for the new stage of economic
semi-annual report for 2023
development. data, as a new economic production factor, can reduce production costs, innovate
business models, and improve resource allocation efficiency. relying on the carrier of digital
trade, data will ultimately achieve cross-border flow and global sharing, thereby improving social
production efficiency and promoting the development process of the global economy. with the
deepening of globalization and the development of digital technology, digital trade will gradually
move towards the goal of liberalization. digital trade may reshape the global value chain system
and payment system, becoming a new driving force for economic growth. with the development
of digital technology and the deepening of globalization, traditional trade models are
transforming and upgrading to digital trade models dominated by digitization.
b. development of data business of the company
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". over the years of business accumulation, yiwu market has formed
the support of industrial clusters in the field of small commodity circulation, collecting massive
information and data on transactions, customs declaration, logistics, foreign exchange
settlement, etc. through the application products such as caigoubao on the chinagoods
platform and yiwu pay, the company has mined the trade data of the industrial belt of the "belt
and road" china commodities cities, and gradually tracked out a new business model: based
on the foreign exchange settlement data or trade data, the company integrates credit
information, provides credit basis for third-party commercial banks or self-operated factoring
businesses, and charges service fees. through data monetization, the massive data formed by
the offline market operated by china commodities cities for many years, including the global
small commodity index, is mined and reshaped through the services of online platforms in the
value chain.
during the reporting period, the company's yiwu pay and credit consulting company
collaborated with the people's bank of china yiwu branch and yiwu rural commercial bank to
launch china's first "credit product trade financing" based on cross-border rmb settlement data,
bringing efficient, convenient, and low-cost financing methods to enterprises. this product
combines the information of the two major resources of credit and payment licenses to build
accurate portraits for cross-border e-commerce and other foreign trade entities, innovate
evaluation standards, and provide exclusive credit services for enterprises. at present, an
integrated service centered on the credit consulting company has been formed, in which the
yiwu pay platform outputs risk control models based on customer authorization and
cross-border settlement data, and authorizes banks to apply for the use of credit consulting
products. yiwu pay integrates foreign exchange settlement data and credit data on the basis of
the original income model, and derives a new income model.
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huokuanbao is developed and operated by the internet financing company, a subsidiary of
the big data company. it is based on the chinagoods platform and integrates foreign trade
export chain data such as design and production, order matching, trade performance, and
foreign exchange settlement. it takes into account both subject credit and trade credit, to provide
trade financing services for merchants, aggregate the foreign trade ecosystem of freight
forwarders, warehousing, and logistics, and derive ecological values. since 2023, the business
volume of huokuanbao has grown rapidly. in the future, it will collaborate with third-party
commercial banks to develop and empower small and medium-sized enterprises' foreign trade
exports. the company integrates trade and foreign exchange data through the chinagoods
platform to solve the pain points and difficulties faced by small and medium-sized enterprises in
trade, gradually enhancing the overall value of the chinagoods platform, and continuously
enhancing the competitiveness of china's daily consumer goods globally.
② cross-border payment
a. situation of cross-border payment industry
this year coincides with the 10th anniversary of the "belt and road" initiative. over the past
aspects. in countries along the "belt and road", the use of rmb has gradually increased, and
rmb cross-border payment has made great progress. according to bloomberg, in march of this
year, the use of rmb surpassed the us dollar in china's cross-border transactions for the first
time, and more and more countries and regions are increasing the scale of rmb settlement.
currently, over 70% of trade settlements between russia and china are already using rubles
and rmb; in addition, argentine officials have also announced that they will use rmb instead of
us dollars to pay for goods imported from china. according to data from the central bank, the
cross-border payment and receipt of rmb increased from less than 10 billion yuan in 2009 to 42
trillion yuan in 2022. in 2022, rmb accounted for about 50% of the total cross-border payment
and receipt of domestic and foreign currencies.
there is a highly positive logical relationship between rmb internationalization and the
construction of the "belt and road", which together constitute two key points for china to
participate in and lead the new international pattern in the new era. the "belt and road" provides
an important opportunity for rmb internationalization. the "belt and road" is a major initiative of
china in the new era to create a pattern of land-sea and domestic-overseas linkage and
east-west two-way opening.
the "belt and road" involves a total population of about 4.4 billion and an economic
aggregate of about 21 trillion us dollars, accounting for 63% and 29% of the world's total,
respectively. many countries along the "belt and road" are developing countries and emerging
economies, which are generally in an upward phase of economic development. in the past 10
years, china's import and export trade to the regions along the "belt and road" has increased at
an average annual rate of about 20%, and its direct investment to the regions along the "belt and
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road" has increased at an average annual rate of more than 30%. none of the countries along
the "belt and road" are major currency issuers, and the currency inertia is relatively small.
china's close economic and financial cooperation with them will provide a solid carrier and broad
market for the regional use of rmb.
rmb internationalization is an important guarantee and necessary condition for the smooth
progress of the "belt and road" construction. internationalization of rmb can effectively prevent
financial risks within the region, reduce transaction costs, and enhance the overall
competitiveness of the regional economy. with the gradual opening of china's capital account,
the development of rmb internationalization can provide sufficient rmb liquidity for the
construction along the "belt and road", and provide financial support and service convenience
for major projects through rmb bonds, loans, direct investment and other forms. at the same
time, the internationalization of rmb will also provide new international currencies and risk
management mechanisms for countries along the "belt and road", promote international
investment and cooperation processes, build economic and financial security anchors, and
maintain regional economic and financial stability.
b. development of cross-border payment business of the company
yiwu is the intersection of the "land silk road" and the "maritime silk road". as the
constructor of the "world capital of small commodities", yiwu undertakes the important mission
of promoting the high-quality development of the "belt and road" and rmb going global. the
company will spare no effort to promote the development of trade services and cross-border
rmb business.
cross-border business map (taking the first saudi cross-border rmb business as an
example)
ii. analysis of core competencies during the reporting period
√applicable □not applicable
(i) first-mover advantages
semi-annual report for 2023
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) supporting services advantages
the people’s government of yiwu has been providing policy support for the development of
the market for years, and the auxiliary industries are developing rapidly in yiwu.
yiwu has in place perfect commerce and trade auxiliary facilities and advantageous logistics
service. the logistics network has full coverage in yiwu. a large number of large-sized
international and domestic express delivery and logistics companies have regional distribution
centers in yiwu, and a world-oriented goods transport and distribution network has been
established. yiwu has been listed among the “commerce and trade-oriented national logistics
hubs” by the national development and reform commission and the ministry of transport.
according to the 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 sq.m 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
semi-annual report for 2023
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) adavantage 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) advantage of international logistics
the company's zhijie yuangang international logistics business, establishes a logistics
platform to replace the multi-layer freight forwarder system, thus shortening the level of freight
forwarder distribution, and improving logistics efficiency. in contrast, the traditional foreign trade
freight forwarders are divided into multiple levels, the logistics and transportation services are
not standardized, and the service prices vary widely and are usually not the lowest price.
iii. discussion and analysis of operation status
this year marks the 30th anniversary of the company's establishment. with thirty years of
ups and downs, the company has been steadfast in writing a new chapter and has set the
strategic goal of becoming a "world-class international trade comprehensive service provider".
with the goal of building the "world capital of small commodities" with high quality and level,
and within the framework of a unified national market, the company is comprehensively
promoting market innovation and development, as well as enterprise transformation and
upgrading. through digital reform, the company is breaking through the physical limitations of
semi-annual report for 2023
traditional business, and speeding up the construction of a global business leader that
empowers the mass trade of small commodities.
timeline of important events in the reform of the company since 2018
during the reporting period, the daily average flow of the international trade city exceeded
market prosperity indicators exceeded those in the same period in 2019, and the morale of all
employees and market operators of the company was high, racing against time and improving
efficiency. the import and export market in yiwu underwent a "strong recovery".
the "strong recovery" of the yiwu market in the first half of 2023 has shown the following
characteristics: firstly, the structural upgrading brought about by the expansion of new energy
industries in the yiwu market. secondly, there is an increasing number of independently
developed products in the yiwu market, which are more innovative and intelligent, accelerating
the transformation from product going global to brand going global. thirdly, the proportion of
online business of the yiwu market is constantly improving, and the trade compliance ability is
becoming stronger. the above factors continuously enhance the connotation of "high
cost-effectiveness" in the yiwu market, and the comprehensive competitiveness of the yiwu
market in the international market is constantly strengthening.
under the support of efficiency improvement and prosperity, the traditional business of the
company reflects certainty and elasticity, while multiple positive factors have come to the
innovative business, which presented a rapid development trend.
(i) transformation and upgrading, continuously enhancing market development resilience
attracting buyers, the company deepened the action of strengthening business entities and
attracting global buyers, and gathered more dynamic and cohesive business entities and buyers.
as of the end of the reporting period, with yiwu small commodity city business school as the
carrier, over 12000 business entities were trained through chairman lectures, trade salons,
online training camps, and other forms. over 500000 buyers were attracted through business
investment, activity attraction, platform invitation, and other methods.
semi-annual report for 2023
design and standards in market , and new industry incubation action, focusing on product
upgrading and industry incubation and cultivation, and continuously improving product
competitiveness and industry vitality. as of the end of the reporting period, in the "yiwu china
commodities city" cup international small commodity creative design competition, over 5000
pieces of works have been collected; the national level service industry standardization pilot of
"bringing standards in market" by zhejiang china small commodity city has been fully launched;
the second district east new energy product market of the international trade city has
officially opened, gathering over 260 business entities and taking the lead in cultivating new
energy as an independent industry in the national commodity market.
of the international trade city as a pilot project to create a digital market model, the company
completed new digital infrastructure such as the 10 gigabit network, ai interactive screen, and
digital virtual human, and achieve functions such as business consulting, market navigation, ai
flow statistics, and digital market cockpit; at the same time, the construction of the global digital
trade center, a core symbol project of the sixth generation market, is fully underway, and the
digital transformation of traditional markets is steadily advancing, creating a new generation
market that leads the global trade trend.
global digital trade center (based on global small commodity trade, leading future trade
trends from three dimensions: digital new infrastructure, smart operations, and digital
empowerment)
exhibition venue linkage, the company holds domestic exhibitions, overseas exhibitions,
professional exhibitions, and industry exhibitions to further expand new exhibition and trade
models. as of the end of the reporting period, 26 domestic exhibitions such as simulation flower,
cultural and tourism fair and china-chic exhibition were held, attracting more than 500000
semi-annual report for 2023
buyers; 50 companies were organized in group to participate in three overseas exhibitions;
during the reporting period, the net profit of the company's exhibition sector experienced an
explosive yoy growth. a total of 25 events were held, including the marketplace good products
shopping festival and the joint exhibition of the world yiwu people conference, attracting
is based on the local and supporting market, strengthens resource integration and quality
improvement, promotes digital, professional, and branded management, establishes the yindu
tavern brand, with the goal of creating a business and tourism culture that integrates "local
characteristics and global style", and strives to become a characteristic service brand of the
"world capital of small commodities", promoting the yindu brand to become a comprehensive
hotel management company with high brand influence in zhejiang region. the company has
four major brand sequences: "yindu ·jia" luxury resort hotel brand, "yindu ·hua" high-end
business hotel brand, "yindu ·ya" super mid-range lifestyle hotel brand, and "yindu ·jing" small
and micro boutique hotel brand. the eight mid to high end hotels are located in various core
locations of yiwu city, serving over 2 million global merchants every year. during the reporting
period, the flow in the yiwu market increased significantly month on month, with a large number
of overseas purchasers continuously purchasing from the yiwu market. many overseas
purchasers booked rooms for 10 to 15 nights, and combined with the promotion of exhibitions,
the yiwu hotel industry showed an explosive growth trend. the company's hotels seized the
opportunity to comprehensively promote centralized procurement, cost reduction, and upgrade
the membership system through the integration of online channels, achieving rapid growth in the
hotel business scale. from january to june 2023, the hotel sector of the company has a
revenue of rmb 217 million, surpassing that in the same period in 2019. among them, the
"fingertip canteen" in the first district of the international trade city built by the company
officially opened in may. with precise positioning, strengthened operation, and outstanding
service "cost-effectiveness", it brings convenient, high-quality, and diverse food supply to market
operators and buyers, and thus is widely welcomed. the revenue of the opening month
exceeded rmb one million, and the daily customer flow exceeded 1300 people.
(ii) deepening innovation and continuously improving the digital trade ecosystem
digital trade service platform and expand functions such as digital marketing, traffic
empowerment, and order matching. as of the end of the reporting period, there were 305000
new registered buyers on the chinagoods platform, totaling 3.605 million. the gmv of the
chinagoods platform in the first half of this year was rmb 32 billion, a yoy increase of 210.83%.
the big data company (the operating entity of the chinagoods platform) achieved a net profit of
rmb 46.3989 million in the first half of the year, compared to rmb -5.5787 million in the same
period of the previous year. despite the increased investment in technology research and
semi-annual report for 2023
development by the chinagoods platform in the first half of the year, the net profit still achieved
significant growth.
company cooperated with platform companies such as alibaba, baidu, and jd to build the "yiwu
small commodity city digital pavilion" and establish a fourth-party service network.
operation of the caigoubao industry belt project, to assist in the upgrading of market
procurement trade, and better serve the free and convenient participation of small and
medium-sized entities in international trade. as of the end of the reporting period, the new order
amount placed on caigoubao exceeded rmb 1 billion, with an accumulated amount of rmb
project has established a performance service system of "comprehensive warehouse in yiwu
sub-warehouses across china", with 85 suppliers stationed in the physical market exhibition hall
and 4 warehousing service franchisees recruited.
internet payment licenses and factoring licenses, utilizing functions such as logistics, overseas
warehouses, and supply chain financial services on the chinagoods platform to form a logistics
closed loop; the company also utilizes licenses such as payment, credit consulting, factoring,
and other products such as alipay and jiehuibao to form a closed loop of payment flow and fund
flow. "three flow convergence" simplifies trade links, improves trade efficiency, helps chinese
small commodities go overseas and improves the ecosystem of trade performance.
as of the end of the reporting period, the company has established cooperation with more
than 400 banks worldwide, covering more than 100 countries and regions, with 20 mainstream
currencies for international payments. since the official launch of the company's own payment
brand "yiwu pay" on february 21, 2023, it has served more than 15000 cross-border rmb
business customers and had settled cross-border funds exceeding rmb 1 billion.
semi-annual report for 2023
yiwu pay's future global layout (the company's cross-border rmb business goal is to
achieve a gmv of over usd 10 billion within 3-5 years, making yiwu pay a globally influential
payment brand)
(iii) open and improve to make continuous optimization of trade performance services
of entities, improves business formats, bravely becomes the "main battlefield" of imports, builds
a bonded "ecosystem", and strives to create a highland for the import industry. as of the end of
the reporting period, yiwu comprehensive bonded zone has attracted a total of 14 top
cross-border e-commerce platforms; sped up the construction of three major industrial
ecological clusters: cross-border e-commerce imports, high-end food processing, and
non-ferrous metal distribution; and realized an import volume of rmb 16.956 billion.
accelerates the improvement in both quality and scale of overseas warehousing and logistics
facilities, actively introduces advantageous resources, and strengthens the basic support for
market performance services. as of the end of the reporting period, there were 29 new overseas
warehouses, totaling 189 accumulatively, with an area of over 1.5 million square meters,
covering 48 countries; dubai yiwu china commodities city was awarded the "class i park
among provincial overseas economic and trade cooperation parks in 2022"; zhijie yuangang
promoted the construction of a digital cross-border logistics third-party delivery platform, and
launched digital logistics service products such as "jihepai" and "xiaokepai". from january to
july 2023, the shipment of zhijie yuangang was 10585teu, with a single month shipment of
quarter and 87% in the second quarter of 2023; the quarter-over-quarter growth rate of served
container volume was 45% in the first quarter and 164% in the second quarter of 2023. zhijie
yuangang has expanded its business scope to 79 countries, 24 routes, and 154 destination
ports worldwide.
self-operated trade since 2019. after more than two years of market exploration and customer
development and accumulation, the self-operated trade business had experienced explosive
growth by the second half of 2021. on february 27, 2023, the company signed a strategic
cooperation agreement with shanghai waigaoqiao group co., ltd. in this strategic cooperation,
both parties will fully utilize their respective advantages in accordance with the principles of
"making respective advantages complementary to each other, win-win cooperation, and mutual
benefit", actively respond to the national initiative of accelerating the development of "new
foreign trade formats, new models, and new infrastructure" and actively developing the "silk
road e-commerce", to serve the new pattern of domestic and international dual circulation,
focus on the integration of domestic and foreign trade and the integration of customs special
supervision zones, enhance the digitalization, refinement, specialization, and global resource
semi-annual report for 2023
allocation capabilities of both parties in the supply chain service field of import and export
markets, and jointly create a digital service ecosystem for the entire trade supply chain that
deeply integrates online and offline with import and export.
as of the end of the reporting period, a trade revenue of rmb 2.838 billion was achieved, a
yoy increase of 18.2%. newly added 2685 good foreign trade product skus; a total of over 1600
core suppliers and 9000 skus of core products have been screened for "good products in a
package".
major changes in the company's business conditions during the reporting period, and
events occurring during the reporting period that have a major impact on the company's
business conditions and are expected to have a major impact in the future
□applicable √not applicable
iv. operating status during the reporting period
(i) analysis of main business
unit: rmb
item amount in the
amount in the same report period
yoy change (%)
current report period of the previous
year
operating revenue 5,160,991,043.25 4,207,027,616.46 22.68
operating cost 3,582,510,450.35 3,159,298,146.77 13.40
sales expenses 77,763,668.49 93,282,063.73 -16.64
administrative expenses 267,899,068.22 226,571,368.27 18.24
financial expenses 53,603,900.89 62,891,935.45 -14.77
r&d expenses 10,524,249.20 5,708,047.58 84.38
net cash flow from operating 143,247,195.78 -666,587,333.62 not applicable
activities
net cash flow from investing -505,539,125.40 -472,262,132.79 not applicable
activities
net cash flow from financing 543,680,426.49 603,770,561.36 -9.95
activities
reason for the change in r&d expenses: r&d expenses increased by 84.38% yoy, mainly due
to the r&d investment in the current period of kuaijietong payment service co., ltd., which was
acquired in the previous year.
profits of the company in this reporting period
□applicable √not applicable
(ii) material changes to profits caused by non-main businesses
□applicable √not applicable
semi-annual report for 2023
(iii) analysis of assets and liabilities
√applicable □not applicable
unit: rmb
percentage
of
percentage difference
of the between
% of total
closing the closing
assets at
amount at the amount at the balance of balance of
the end of reasons for
item end of the current end of the same the the current
the change
period period of 2020 previous period and
current
year to the the closing
period
total assets balance of
(%) the
previous
year (%)
mainly due to
the growth of
the product
prepayments 917,588,009.93 2.75 606,057,048.25 1.89 51.40 sales and the
increase in
advance
payment
mainly due to
the recovery of
other
receivables
assistance from
joint ventures
due to the
development
expenses
investment
due to the
short-term increase in
borrowings short-term
borrowings
mainly due to
the payable
market and
accounts
payable
project
construction
funds
mainly due to
payroll the distribution
payable of merit pay for
mainly due to
non-current
the transfer-in of
liabilities
due within
maturing within
one year
one year
due to the
long-term
borrowings
long-term
semi-annual report for 2023
borrowings
mainly due to
receiving
investment
incentives for
the
deferred
income
of cross-border
e-commerce
logistics park
project in this
period
mainly due to
the recognition
of deferred
deferred
income tax
income tax 127,885,691.87 0.38 95,042,722.31 0.31 34.56
liabilities for use
liabilities
rights assets in
the current
period
other statements
nil
√applicable □not applicable
(1) scale of assets
among them: offshore assets were rmb 548 million, accounting for 1.64% of the total assets.
(2) explanation one the high proportion of offshore assets
□applicable √not applicable
other statements
nil
semi-annual report for 2023
√applicable □not applicable
unit: rmb
item june 30, 2023 2022
cash and cash equivalents 11,461,574.15 10,098,029.66
inventory 8,925,585.72 -
long-term equity investment 102,918,559.00 102,918,559.00
other non-current financial
assets
other current assets 420,922,188.51 367,484,914.87
total 1,165,675,331.75 1,101,948,927.90
rmb 60.97) were restricted for ownership or use rights due to being as security deposits for
obtaining commercial housing mortgage loan. as of june 30, 2023, bank deposits with a book
value of rmb 371288.89 (december 31, 2022: rmb 0.00) were used as funds for engineering
supervision accounts, with restricted ownership or use rights. as of june 30, 2023, bank deposits
with a book value of rmb 7,220,000.00 (december 31, 2022: rmb 7,220,000.00) were used as
performance bonds for civil air defense projects under construction with restricted ownership or
use rights. as of june 30, 2023, bank deposits with a book value of rmb 3,870,224.21
(december 31, 2022: rmb 2,877,968.69) were used as fast payment business risk deposits with
restricted ownership or use rights.
with a book value of rmb 621447424.37 (december 31, 2022: rmb 621447424.37) were frozen
by the shanghai public security bureau.
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.
□applicable √not applicable
semi-annual report for 2023
(iv) analysis of investments
√applicable □not applicable
as of the end of june 2023, the external investment amount was rmb 9,107.0687 million
(including trading financial assets of rmb 51.611 million, long-term equity investment of rmb
non-current financial assets of rmb 1,473.1226 million), an increase of rmb 1,011.7564 million,
or 12.50%, from rmb 8,095.3123 million (including trading financial assets of rmb 62.331
million, long-term equity investment of rmb 6,033.4729 million, other equity instrument
investment of rmb 499.2008 million, and other non-current financial assets of rmb 1,500.3076
million) at the end of the previous year. the main changes were as follows:
i. trading financial assets decreased by rmb 10.72 million from the end of the previous
year, due to the redemption of rmb 3.5 million in bank wealth management, the sale of shares of
dongfang international entrepreneurship co., ltd., and a decrease of rmb 7.22 million in fair
value changes.
ii. long-term equity investment increased by rmb 969.3879 million from the end of the
previous year, due to:
investment fund partnership enterprise (limited partnership).
other comprehensive income . mainly due to the investment income of joint ventures, including
rmb 859.624 million from yiwu guoshen shangbo property co., ltd., rmb 123.6073 million
from shangcheng property, and rmb 52.1737 million from chouzhou financial leasing.
iii. other equity instrument investments increased by rmb 80.2735 million yoy, due to
changes in the fair value of the held shares of shenwan hongyuan group co., ltd.
iv. other non-current financial assets decreased by rmb 27.1850 million yoy, which was
due to the liquidation and withdrawal of rmb 17.8791 million from the investment in yiwu
shanyue equity investment partnership (limited partnership). the income from the change in
the fair value of other non-current financial assets was rmb -9.3059 million.
semi-annual report for 2023
(1).major equity investments
□applicable √not applicable
(2).major non-equity investments
√applicable □not applicable
unit: rmb10,000
investment cumulative
during actual
project
item progress current investment
amount period amount
amount .
the yiwu 95% of indoor decoration work has been completed; 95% of installation work has been completed;
comprehensive 624,250.00 90% of the installation of exterior wall windows has been completed; the excavation and backfilling of 3,448.83 294,018.88
bonded zone project the pipeline have been basically completed, and the construction of landscaping work has been
started; the power supply work for the factory area has been completed.
fully roofed, 75% of the masonry work completed, and warehouse 3 and warehouse 4 passed the
logistics park s2 108,000.00 8,169.97 31,703.87
acceptance of main structure.
fully roofed, 75% of the masonry work completed, and warehouses 1, 3, 4, and 5 passed the
logistics park s3 132,000.00 5,599.45 35,999.50
acceptance of the main structure.
preparation work was carried out before acceptance of all buildings in the southern zone; the main
yiwu digital trade
industrial park
completed as scheduled, and the installation of the outdoor loop has begun to be arranged.
yiwu international
digital logistics market
completed.
the underground main structure of the first phase project (hotel plot) has been completed, with 33%
of the above-ground main structure completed, and approximately 29.3% of the total contract quantity
global digital free
trade center
plot) entered the site to build temporary facilities, and the bidding announcement was made for the
general contracting of the second bid section.
(3).financial assets measured with fair value
√applicable □not applicable
unit: rmb10,000
semi-annual report for 2023
profits and
losses from cumulative fair
current current sale/redemption
opening changes in value changes other closing
category of assets provision for purchase amount in
balance fair value in included in changes balance
impairment amount current period
the current equity
period
held-for-trading
financial assets
other equity
instruments investment
other non-current
financial assets
total 206,183.94 -718.19 1,938.67 - 2.11 3,074.42 8,027.35 210,420.79
securities investment
√applicable □not applicable
unit: rmb10,000
profits
and
losses . profits and
cumulative sales
from losses
initial opening current amount closing
security security source of changes fair value from
securities investment book purchase in book accounting item
code abbreviation funds in fair changes investment
cost value amount current value
value in included in in current
period
the equity period
current
period
stocks / new shares - self-owned - - - 2.11 2.11 1.36 - held-for-trading
funds financial assets
stocks 000166 shenwan 55,362.54 self-owned 49,920.08 - 1,938.67 - - - 57,947.43 other equity
hongyuan funds instruments
investment
stocks 600278 oriental 5,000.00 self-owned 2,365.16 305.83 - - 1,027.84 175.01 1,643.15 held-for-trading
venture funds financial assets
stocks 833979 tiantu 15,519.21 self-owned 4,773.97 -930.59 - - - - 3,843.38 other
semi-annual report for 2023
investment funds non-current
financial assets
total / / 75,881.75 / 57,059.21 -624.76 1,938.67 2.11 1,029.95 176.37 63,433.96 /
explanation of securities investment
□applicable √not applicable
pe investment
√applicable □not applicable
the book value of private equity fund investments during this reporting period was rmb 1,224.6583 million, a decrease of rmb 17.8791 million
from rmb 1,242.5374 million at the end of the previous year, which was due to the liquidation and withdrawal of rmb 17.8791 million from the
investment in yiwu shanyue equity investment partnership (limited partnership) in this period.
derivatives investment
□applicable √not applicable
semi-annual report for 2023
(v) major sales of assets and equity
□applicable √not applicable
(vi) analysis of major subsidiaries and associates
√applicable □not applicable
unit: rmb10,000
registered total
company name business net assets net profits
capital assets
yiwu china commodities enterprise's own capital investment, asset
city financial holdings co., management, investment consulting services, 400,000.00 279,308.32 262,017.82 -316.36
ltd. investment management services
industry investment, investment management,
property service, market development and
haicheng yiwu china
operation, market auxiliary service, real estate
commodities city
development, sale and lease, design, 60,000.00 200,087.01 -100,401.78 -5,562.04
investment development
production and agency of domestic
co., ltd.
advertising, and operation and management of
parking garages
yiwu shangbo yuncang
enterprise management; property
enterprise management 30,000.00 89,740.61 31,311.57 -1,076.72
management, etc.
co., ltd.
yiwu commodities city
real estate development and sale 20,000.00 16,247.87 15,718.55 -56.49
gonglian property co., ltd.
kuaijietong payment
internet payment service 18,000.00 61,038.81 13,044.05 -572.02
service co., ltd.
yiwu xingchen enterprise
r&d of computer and multimedia software 15,000.00 269,467.70 75,806.27 -13.98
management co., ltd
yiwu china commodities
city import and export co., domestic trade and international trade 10,000.00 99,073.86 4,099.00 -1,676.63
ltd.
internet data services; professional design
services; intelligent control system integration;
yiwu china commodities
computer information technology 10,000.00 39,887.42 16,933.43 4,639.89
city big data co., ltd.
development, technical consulting, technical
services, technology transfer, etc.
yiwu china commodities
city supply chain supply chain management service 10,000.00 16,589.16 6,145.64 -664.21
management co., ltd.
computer software, multimedia technologies,
zhejiang yiwugou
computer network and application, and 10,000.00 14,737.46 11,408.92 1,055.64
e-commerce co., ltd.
wholesale & retail
cccp real estate development and sale 500,000.00 1,857,068.88 645,810.35 26,262.14
yiwu hongyi equity
investment fund investment management, equity investment,
partnership (limited asset management and investment consulting
partnership)
zhejiang chouzhou financial lease service, and transfer of
financial lease co., ltd. financial lease assets
industry investment, investment management,
property service, operation and management
yiwu shanglv investment of parking garages, business marketing
development co., ltd. planning, operation and management
consulting, and operation and management of
shopping malls
pujiang lvgu property co.,
real estate development and sale 70,000.00 132,327.94 74,617.45 -1,831.78
ltd.
international cargo transportation agency by
sea; international cargo transportation agency
by air; international cargo transportation
zhijie yuangang 55,556.00 47,156.65 42,838.22 -2,654.82
agency by land; domestic cargo transportation
agency; domestic shipping agency; general
cargo warehousing services, etc.
semi-annual report for 2023
yiwu rongshang property
real estate development and sale 10,204.08 13,971.63 13,971.57 0.08
co., ltd.
yiwu chuangcheng
real estate development and sale 8,333.33 74,853.12 12,967.82 -2,057.65
property co., ltd.
real estate development, sale and lease; real
yiwu guoshen shangbo
estate brokerage service, interior decoration 4,081.63 491,211.15 191,886.22 175,429.06
property co., ltd.
service; and landscaping service
(vii) structured entities controlled by the company
□applicable √not applicable
v. other disclosure matters
(i) potential risks
√applicable □not applicable
as market operations, hotel exhibitions, and product sales is significantly correlated with the
macroeconomic cycle. if global economic growth is sluggish and trade volume shrinks, it will lead
to a decrease in the overall prosperity of the yiwu small commodity market, which will have a
negative impact on shop leasing and related businesses.
business is still in the stage of expanding scale and maintaining channels, and the gross profit
margin of this business is still low in the short term. at the same time, the company is currently
transitioning to an international trade comprehensive service provider. if the profitability of the
new business falls short of expectations, it will lower the company's comprehensive gross profit
margin level.
the expansion of the company’s business, and with the expansion of international trade,
warehousing and logistics, supply chain, overseas development, information data, industrial
investment, and business operations, the company may face the risk of insufficient reserves of
professional talents and inter-disciplinary talents.
international trade, and the development of global market trade is more complicated and severe
than before; new technologies are accelerating to breed new opportunities, and new trade
models and new formats are constantly emerging.
(ii) other disclosure matters
□applicable √not applicable
semi-annual report for 2023
section iv. corporate governance
i. general meeting of shareholders
designated
resolution
session of website on which date of disclosure of
date of the
meeting the resolution is the resolution
meeting
published
see the
provisional
resolution
general january 13, 2023 www.sse.com.cn january 14, 2023
notice for
meeting of
details
shareholders
general resolution
may 5, 2023 www.sse.com.cn may 6, 2023
meeting of notice for
shareholders details
the preferred shareholders whose voting rights had been restituted requested to an
extraordinary general meeting of shareholders
□applicable √not applicable
statement on shareholders’ meetings
√applicable □not applicable
proposal on the redemption of the remuneration of certain directors of the company in 2021.
work report of the board of directors, 2022 work report of the board of supervisors, 2022
annual report and summary, 2022 financial statement report, 2023 financial budget report,
firms, proposal on the proposed issuance of debt financing instruments in the next 12 months,
proposal on investment in the construction of yiwu global digital trade center.
ii. changes in directors, supervisors and senior officers of the company
√applicable □not applicable
name title change
huang xiaoying vice general manager hiring
statement on the changes in directors, supervisors and senior officers of the company
□applicable √not applicable
iii. plan for profit distribution or capital reserve into stock capital
semi-annual proposals on profits distribution and capitalization of capital reserve
whether to distribute profits or capitalize the no
capital reserve
iv. incentive stock option plans, employee stock ownership plans and other employee
incentives granted by the company and the impact thereof
(i) related equity incentive matters that have been disclosed in the provisional
announcement without progress or change in subsequent implementation
√applicable □not applicable
overview of the matter query website
semi-annual report for 2023
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 the
incentives. the independent directors of the company issued
company's announcement
relevant independent opinions.
on the website of the
on october 23, 2020, the sixth meeting of the eighth board
shanghai stock exchange
of supervisors of the company deliberated and approved the
(www.sse.com.cn) on
proposal on the company's 2020 restricted stock incentive
october 24, 2020.
plan (draft) and its summary, the proposal on the
implementation evaluation and management measures for the
company's 2020 restricted stock incentive plan, proposal on
verification of the list of incentive objects of the company's
issued relevant verification opinions.
independent financial consultants, lawyers and other
intermediary agencies issued corresponding opinions.
on november 18, 2020, it received the approval for for details, please refer to the
approving zhejiang china commodities city group co., ltd. to company's announcement
implement the 2020 restricted stock incentive plan issued by the on the website of the
state-owned assets supervision and administration office of shanghai 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
incentive plan were internally publicized. within the time limit of for details, please refer to the
the publicity, the board of supervisors of the company did not company's announcement
receive any objection from any organization or individual or bad on the website of the
feedback, without feedback record. on november 30, 2020, the shanghai 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.
semi-annual report for 2023
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 the
stock incentive plan (draft)’ and summary”, the “proposal on
company's announcement
the “measures of assessment and management of
on the website of the
implementation of ‘company’s 2020 restricted stock incentive
shanghai stock exchange
plan’”, and the “proposal on requesting the general meeting of
(www.sse.com.cn) on
shareholders to authorize the board of directors to deal with
december 11, 2020.
equity incentive related matters”, and disclosed the
“self-examination report on the trades of company’s stocks
by insiders of company’s 2020 restricted stock incentive plan”.
on december 11, 2020, the 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 the
issued relevant independent opinions.
company's announcement
on december 11, 2020, the seventh meeting of the
on the website of the
company's eighth board of supervisors passed the proposal on
shanghai stock exchange
granting restricted stocks to incentive objects for the first
(www.sse.com.cn) on
time. the board of supervisors issued the verification opinions
december 12, 2020.
of the board of supervisors on matters related to the first grant
of the company's 2020 restricted stock incentive plan.
independent financial consultants, lawyers and other
intermediary agencies issued corresponding opinions.
for details, please refer to the
on january 15, 2021, the company received the securities
company's announcement
change registration certificate issued by the shanghai branch
on the website of the
of china securities depository and clearing co., ltd., and the
shanghai stock exchange
company completed the registration of the first grant of
(www.sse.com.cn) on
restricted stocks to incentive objects.
january 19, 2021.
on august 9, 2021, the 35th meeting of the eighth board of
directors of the company passed the "proposal on reserved for details, please refer to the
granting restricted stocks to incentive objects", "on adjusting company's announcement
the repurchase price of restricted stocks and repurchasing on the website of the
and cancelling some restricted stocks" 's proposal". the shanghai stock exchange
independent directors of the company issued relevant (www.sse.com.cn) on august
independent opinions. 11, 2021.
on august 9, 2021, the ninth meeting of the eighth boarder
semi-annual report for 2023
of supervisors of the company passed the "proposal on
reserved granting restricted stocks to incentive objects",
"proposal on adjusting the repurchase price of restricted
stocks and repurchasing and cancelling some restricted
stocks" ". the board of supervisors issued the verification
opinions of the board of supervisors on matters related to the
company's reserved grant of the restricted 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 8, 2022, the company applied to china for details, see the
securities depository and clearing co., ltd. shanghai branch company's announcement
for repurchase and cancellation of restricted stocks that have on the website of the
been granted but not yet lifted by some resigned employees. on shanghai stock exchange
semi-annual report for 2023
october 21, 2022, the company received the "securities (www.sse.com.cn) on
change registration certificate" issued by china securities october 21, 2022.
depository and clearing co., ltd. shanghai branch, and the
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 for details, see the
independent directors of the company have issued independent company's announcement
opinions 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
semi-annual report for 2023
section v. environmental and social responsibilities
i. environmental issues
(i)description of the environmental protection status of the company and its main
subsidiaries that are key pollutant discharging units announced by the
environmental protection authorities
□applicable √not applicable
(ii) description of the environmental protection status of the companies other than the
key pollutant discharging units
□applicable √not applicable
(iii) further progress or change of the environmental issues disclosed during the
reporting period
□applicable √not applicable
(iv) relevant information that is conducive to protecting ecology, preventing pollution,
and fulfilling environmental responsibilities
□applicable √not applicable
(v) measures taken to reduce their carbon emissions during the reporting period and the
effect
√applicable □not applicable
during the reporting period, the company's yiwu international trade city used clean energy for
power generation, reducing emissions of approximately 11,523 tons of carbon dioxide
equivalent.
ii.status of consolidation and expansion of the results of poverty alleviation, rural
revitalization and other specific work
□applicable √not applicable
semi-annual report for 2023
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. non-operating capital occupation by controlling shareholders and other related
parties during the reporting period
□applicable √not applicable
iii. illegal guarantees
□applicable √not applicable
semi-annual report for 2023
iv. information about audit on the semi-annual report
□applicable √not applicable
v. changes and handling of matters involved in modified audit opinion in the previous year’s annual report
□applicable √not applicable
vi. matters relating to bankruptcy and reorganization
□applicable √not applicable
vii. material litigations and arbitrations
√there were 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
party value (arbitration)
litigation basic information status of
plaintiff defendant bearing involved in cause results of litigation
or of litigation litigation
(claimant) (respondent) joint litigation estimated (arbitration) and effect thereof
arbitration (arbitration) (arbitration)
liabilities (arbitration) liabilities and
the amount
thereof
semi-annual report for 2023
zhejiang yiwu
chuanglian
market
investment and
management co.,
ltd., hebei unfair
jiangcheng real competition
the
estate nil litigation dispute 485 no transferred
company
development co., [(2021) z 0782
ltd., handan mc no. 6367]
zheshang yiwu
china
commodities
wholesale city
co., ltd.
shengyuze asset
management co., ltd. shall
pay the outstanding project
shizuishan payment of rmb 3,819,617
dispute over
shengyuze asset and interest of rmb 303,211,
ningxia construction
management co., totaling rmb 4,122,828, to the
shenghong project judgment
ltd., yiwu china plaintiff ningxia shenghong
construction nil litigation construction 430.69 no has been
commodities city construction engineering co.,
engineering contract made
supply chain ltd. within 15 days after the
co., ltd. [(2022) n 0202
management co., effective date of this judgment;
mc no. 4273]
ltd., the company 2. other litigation requests
from the plaintiff ningxia
shenghong construction
engineering co., ltd. was
rejected
the company, dispute over
third party construction
ying mediation
shenzhen nil litigation project 836.31 no
jianhua in progress
pengrun construction
construction contract
semi-annual report for 2023
group co., ltd. [(2022) z 0782
msqt no. 18007]
dispute over
jingang curtain
construction
wall group co.,
project
the ltd. and mediation
nil litigation construction 919.11 no
company qianghuang new in progress
contract
materials co., ltd.
[(2023) z 0782
msqt no. 3593]
dispute over
construction
zhejiang baoye
project
the curtain wall mediation
nil litigation construction 936.36 no
company decoration co., in progress
contract
ltd.
[(2023) z 0782
msqt no. 4170]
dispute over
haicheng yiwu
hebei construction
china
construction project
commodities city
engineering nil litigation construction 7,431.59 no undecided
investment
group co., contract
development co.,
ltd. (2023) l 0381 mc
ltd.
no. 1585
(iii) other statements
□applicable √not applicable
viii. information of the listed company and its directors, supervisors, senior management, controlling shareholder, and actual controller
suspected of violations of laws and regulations, penalties and rectification
□applicable √not applicable
semi-annual report for 2023
ix. credit standing of the company and its controlling shareholder and actual controller
√applicable □not applicable
there was no outstanding court judgment or overdue debt of a large amount involving the company or its controlling shareholder or actual
controller during the reporting period.
x. material related-party transactions
(i) related-party transactions relating to regular corporate operation
□applicable √not applicable
√applicable □not applicable
the 10th meeting of the 9th board of directors of the company reviewed and approved the proposal on project construction entrustment
management and related party transactions, and agreed to sign the engineering project entrustment management contract 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 2023-019) disclosed by the company on the website of the shanghai stock exchange
(www.sse.com.cn) on may 12, 2023.
as of the end of the reporting period, the project was under construction.
semi-annual report for 2023
√applicable □not applicable
unit: rmb
reasons for
the large
percentage
difference
in the
type of contents of price of amount of between the
related pricing amount of settlement
relationship related-party related-party related-party related-party market price price of the
counterparty principle similar method
transaction transaction transaction transaction transaction
transactions
and
(%)
reference
market price
yiwu china
subsidiary of acceptance property service fee
commodities city market account not
controlling of labor and greening 98,212,858.68 98,212,858.68 80.98 98,212,858.68
property service price transfer applicable
shareholder service maintenance fee
co., ltd.
subsidiaries
of controlling acceptance
yiwu security market account not
shareholder of labor security service fee 10,038,757.30 10,038,757.30 8.28 10,038,757.30
service co., ltd. price transfer applicable
parent service
company
controlling market account not
ccch lease warehouses 7,512,968.82 7,512,968.82 6.19 7,512,968.82
shareholders price transfer applicable
yiwu china selling
subsidiary of
commodities city goods and product sales and market account not
controlling 1,787,078.02 1,787,078.02 1.47 1,787,078.02
property service providing system development price transfer applicable
shareholder
co., ltd. services
yourworld
branches of
international
the
conference center
controlling management service negotiated account not
company of yiwu other inflow 1,545,161.54 1,545,161.54 1.27 1,545,161.54
shareholder fee price transfer applicable
market
parent
development
company
group co., ltd.
semi-annual report for 2023
subsidiary of
market account not
cccp controlling lease office space 494,462.28 494,462.28 0.41 494,462.28
price transfer applicable
shareholder
controlling
shareholder management and negotiated account not
mdg other inflow 428,129.58 428,129.58 0.35 428,129.58
parent license fees price transfer applicable
company
yourworld
branches of
international
the selling
conference center
controlling goods and product sales and market account not
company of yiwu 410,332.78 410,332.78 0.34 410,332.78
shareholder providing washing fees price transfer applicable
market
parent services
development
company
group co., ltd.
subsidiaries
yiwu market
of controlling
development market account not
shareholder lease parking lot 320,811.73 320,811.73 0.26 320,811.73
service center co., price transfer applicable
parent
ltd.
company
yiwu shangbo
subsidiary of
yungu enterprise market account not
controlling lease office space 292,115.22 292,115.22 0.24 292,115.22
management co., price transfer applicable
shareholder
ltd.
yourworld
branches of
international
the
conference center acceptance
controlling market account not
company of yiwu of labor meeting affair charge 233,917.62 233,917.62 0.19 233,917.62
shareholder price transfer applicable
market service
parent
development
company
group co., ltd.
total / / 121,276,593.57 100.00 / / /
return of large-value goods sales not applicable
semi-annual report for 2023
yiwu china small commodity city property service co., ltd. obtained the market
illustration on related-party transactions
property service and greening maintenance contract by participating in public bidding.
semi-annual report for 2023
(ii) related transactions arising from asset acquisitions or equity acquisitions and sales
further progresses or changes
□applicable √not applicable
progresses or changes
□applicable √not applicable
√applicable □not applicable
unit: rmb10,000
the
reasons for
impact of
typ significant
transacti
e of differences
assess ons on
relat between
rel rel book value ed settle the
ed- contents of pricing gains from transaction
ated atio of value of transfe ment compan
part related-party principl asset price and
part nshi transferred transfer r price meth y's
y transaction e transfer book value or
y p assets red od operatin
tran assessed
assets g results
sact value or
and
ion market fair
financial
value
condition
transfer of
this
zhiji 60% equity
equ acco transaction
e ass of yiwu not
ity market unt was
yua ocia huanqiu 1,264.45 2,412 2,412 1,129.10 applicabl
tran price transf completed
nga tes yida e
sfer er through
ng logistics
public listing
co., ltd
explanation of related transactions arising from asset acquisition and sale
for details, please refer to note 8: changes in the scope of consolidation
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
semi-annual report for 2023
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) other significant related transactions
□applicable √not applicable
(vii) other
□applicable √not applicable
xi. material contracts and performance thereof
□applicable √not applicable
semi-annual report for 2023
√applicable □not applicable
unit: rmb10,000
external guarantees provided by the company (excluding those provided for the subsidiaries)
date of
relationsh
guarant overdu
ip between is the is the is it a
amount ee guarant guarant e
the the type of princi collate guarant guarant related-p related
guaran of (signing ee ee amount counter
guarantor guarant guarant pal ral (if ee ee arty relations
tor guarant date of starting maturity of the guarantees
and the eed ee debts any) fulfilled overdu guarante hip
ee the date date guarant
listed in full e e
agreem ee
company
ent)
joint
and sco provided
the the not
yiwu 7,509. dec 16, jul 1, dec 15, several norm a joint
compa company nil no no applica yes
shanglv 22 2015 2015 2026 liability al counter-guara venture
ny itself ble
guarant ntee
ee
hangzh joint
ou and
wholly-ow house not not
shangb 473.7 several norm not
ned purchas nil no no applica no applicabl
o 8 liability al applicable
subsidiary er ble e
nanxin guarant
g ee
amount of guarantees made during the reporting period
-1,981.56
(excluding the guarantees provided for subsidiaries)
balance of guarantees at the end of the reporting period (a)
(excluding the guarantees provided for subsidiaries)
guarantees provided by the company for its subsidiaries
amount of guarantees provided for subsidiaries during the
reporting period
balance of guarantees provided for subsidiaries at the end of the
reporting period (b)
semi-annual report for 2023
total guarantees provided by the company (including those provided for the subsidiaries)
total amount of guarantees (a b) 7,983.00
ratio of the total amount of guarantees to the company’s net
assets (%)
among them:
amount of guarantees provided for shareholders, actual
controller and their related parties (c)
amount of guarantees provided directly or indirectly for the
debtors whose debt-to-asset ratio exceed 70% (d)
portion of total amount of guarantees in excess of 50% of net
assets (e)
total (c d e) -
statement on the joint and several liability that may be assumed
not applicable
due to outstanding guarantees
yiwu branch for yiwu shanglv and provided guarantees in accordance with the
shareholding ratio. the guarantee method was joint liability guarantee, the highest
guarantee amount was rmb 367.5 million and the guarantee term was11 years. as of
june 30, 2023, yiwu shanglv actually borrowed rmb 153,249,486.86 (december 31,
guarantee contract, it assumed the guarantee liability of rmb 75,092,248.56
(december 31, 2022: rmb 94,799,347.65) for the agricultural bank of china yiwu
statement on guarantees
branch. yiwu state-owned capital operation co., ltd. provided a counter guarantee
for this guarantee.
sold by the group has obtained the property certificate, the group shall provide the
purchaser with a bank mortgage guarantee. as of june 30, 2023, the unsettled
guarantee amount was rmb 4,737,833.66 (december 31, 2022: rmb 4,846,333.64).
those guarantees would be released after the issuance of the property ownership
certificates and are thus little likely to incur losses. therefore, the management
believed that it was not necessary to make provision for the guarantees.
semi-annual report for 2023
□applicable √not applicable
xii. other significant matters
□applicable √not applicable
semi-annual report for 2023
section vii. changes in shares and shareholders
i. changes in equity
(i) exhibition of changes in shares
during the reporting period, the total number of shares and capital stock structure of the
company did not change.
□applicable √not applicable
net assets per share during the period from the end of the reporting period to the
disclosure date of the semi-annual report (if any)
□applicable √not applicable
securities regulatory authority to be disclosed
□applicable √not applicable
(ii) changes in non-tradable shares
□applicable √not applicable
ii. information of restricted shareholders
(i) information of shareholders:
number of common shareholders as of the end of 208,473
the reporting period
(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 of freezing ownershi
sharehold during
at the end proporti non-trada p of
er the
of the on (%) ble status of qt sharehold
(full name) reporting
reporting shares shares y er
period
period held
yiwu
china
state-own
commodit 3,038,179,
ies city 392
person
holdings
limited
zhejiang
zhecai
state-own
capital 147,466,52
managem 8
person
ent co.,
ltd.
semi-annual report for 2023
hong
kong
central 8,293,17
clearing 0
company
limited
dacheng
fund－
agricultur
al bank of
china－
dacheng
china 0 27,672,800 0.50 0 unk 0 unk
securities
financial
assets
managem
ent
scheme
southern
asset
managem
ent－
agricultur
al bank of
china－
southern 0 27,672,800 0.50 0 unk 0 unk
china
securities
financial
assets
managem
ent
scheme
gf fund
－
agricultur
al bank of
china－
gf china -5,328,4
securities 00
financial
assets
managem
ent
scheme
semi-annual report for 2023
china
constructi
on bank
corporatio
n - gf
technolog 20,356,9
y 00
innovation
hybrid
securities
investmen
t fund
china
merchants
bank
corporatio
n-
minsheng
jiayin 19,800,033 0.36 0 unk 0 unk
growth
preferred
equity
securities
investmen
t fund
bank of
china
limited -
gf small
and
medium 19,204,3
cap 00
selected
hybrid
securities
investmen
t fund
domestic
gao 16,923,7
yaping 00
person
shares held by top 10 holders of tradable shares
type and quantity of shares
shareholder number of tradable shares held
type qty
yiwu china rmb-denomin
commodities city 3,038,179,392 ated common 3,038,179,392
holdings limited share
zhejiang zhecai rmb-denomin
capital management 147,466,528 ated common 147,466,528
co., ltd. share
hong kong central rmb-denomin
clearing company 70,048,035 ated common 70,048,035
limited share
semi-annual report for 2023
dacheng fund－
agricultural bank of
china－dacheng rmb-denomin
china securities 27,672,800 ated common 27,672,800
financial assets share
management
scheme
southern asset
management－
agricultural bank of
rmb-denomin
china－southern
china securities share
financial assets
management
scheme
gf fund－
agricultural bank of
rmb-denomin
china－gf china
securities financial share
assets management
scheme
china construction
bank corporation -
rmb-denomin
gf technology
innovation hybrid
share
securities investment
fund
china merchants
bank corporation -
rmb-denomin
minsheng jiayin
growth preferred
share
equity securities
investment fund
bank of china limited
- gf small and
rmb-denomin
medium cap
selected hybrid
share
securities investment
fund
rmb-denomin
gao yaping 16,923,700 ated common 16,923,700
share
explanation on the
relationship or
concerted action
between the above
shareholders
explanation on the
preferred
shareholders whose
voting rights had been nil
restituted and the
quantity of shares
held thereby
semi-annual report for 2023
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 ten shareholders due to
the placement of new shares
□applicable √not applicable
iii. directors, supervisors and senior management
(i) changes in shareholdings of present and resigned directors, supervisors and senior
management during the reporting period
□applicable √not applicable
statement on other matters
□applicable √not applicable
(ii) the equity incentives granted to directors, supervisors and senior management
during the reporting period
□applicable √not applicable
(iii) other statements
□applicable √not applicable
iv. changes in controlling shareholder or actual controller
□applicable √not applicable
semi-annual report for 2023
section viii. preferred shares
□applicable √not applicable
semi-annual report for 2023
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 unit: rmb
wheth
metho
er there
d of
is a risk
princip
of
inter al
outstan termina
name of abbrevi cod issue value maturit est repay marketp
ding ting the
bond ation e date date y date rate ment lace
amount transac
(%) and
tion in
interest
the
payme
stock
nt
market
simple
zhejiang
interest
china
is
commod
calcula
ities city
ted, the
group
interest
co., ltd.
payme
publicly shangh
issued 1377 ai stock
yiwu mber 1, mber 1, mber 1, 8 2.88 freque no
corporat 40 exchan
ccc 01 2022 2022 2025 ncy is
e bonds ge
annual,
to
and the
professio
princip
nal
al is
investors
repaid
in 2022
once
(issue 1)
due.
simple
zhejiang
interest
china
is
commod
calcula
ities city
ted, the
group
interest
co., ltd.
payme
publicly septe septe septe shangh
issued 1378 mber mber mber ai stock
yiwu 7 2.88 freque no
corporat 15 22, 22, 22, exchan
ccc 02 ncy is
e bonds 2022 2022 2025 ge
annual,
to
and the
professio
princip
nal
al is
investors
repaid
in 2022
once
(issue 2)
due.
semi-annual report for 2023
the company's measures to deal with the risk of bond termination
□applicable √not applicable
bonds overdue
□applicable √not applicable
explanation on overdue debts
□applicable √not applicable
□applicable √not applicable
□applicable √not applicable
other statements
shanghai new century credit rating investment service co., ltd. issued the "zhejiang
china commodities city group co., ltd. credit rating report" [new century enterprise review
(2023) 020239] on june 27, 2023. 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
other statements
nil
□applicable √not applicable
semi-annual report for 2023
(iii) non-financial corporate debt financing instruments in the inter-bank bond market
√applicable □not applicable
unit: rmb 100 million unit: rmb
whether
method of there is a
principal investor risk of
interest
value maturity outstanding repayment appropriate trade terminating
name of bond abbreviation code issue date rate marketplace
date date amount and arrangements mechanism the
(%)
interest (if any) transaction
payment in the stock
market
annual
interest
zhejiang china commodities city 22 zhejiang feb-2-2022 feb
feb 24, payment, interbank
group co., ltd.’s 2022 mtn yiwu ccc 102280347 to 24, 10 3.29 nil no
(issue 1) mtn001 feb-23-2022 2022
repayment
at maturity
annual
interest
zhejiang china commodities city 22 zhejiang mar-25-2022 mar
mar 29, payment, interbank
group co., ltd.’s 2022 mtn yiwu ccc 102280660 to 29, 5 3.57 nil no
(issue 2) mtn002 mar-28-2022 2022
repayment
at maturity
annual
interest
zhejiang china commodities city 22 zhejiang jul 18, 2022 jul
jul 20, payment, interbank
group co., ltd.'s 2022 mtn yiwu ccc 102281584 to jul 19, 20, 5 3.00 nil no
(issue 3) mtn003 2022 2022
repayment
at maturity
one-time
repayment
zhejiang china commodities city from march
group co., ltd.’s 2023 super 16, 2023 to september interbank
yiwu ccc 012381077 20, 10 2.85 principal nil no
short-term financing bonds march 17, 15, 2023 market
scp001 2023 and
(issue 1) 2023
interest at
maturity.
semi-annual report for 2023
one-time
repayment
zhejiang china commodities city
group co., ltd.’s 2023 super may 16, november interbank
yiwu ccc 012381886 17, 10 2.57 principal nil no
short-term financing bonds 2023 10, 2023 market
scp002 2023 and
(issue 2)
interest at
maturity.
one-time
repayment
zhejiang china commodities city from june
group co., ltd.’s 2023 super 16, 2023 to march 15, interbank
yiwu ccc 012382295 20, 10 2.68 principal nil no
short-term financing bonds june 19, 2024 market
scp003 2023 and
(issue 3) 2023
interest at
maturity.
the company's measures to deal with the risk of bond termination
□applicable √not applicable
bonds overdue
□applicable √not applicable
explanation on overdue debts
□applicable √not applicable
semi-annual report for 2023
□applicable √not applicable
□applicable √not applicable
other statements
shanghai new century credit rating investment service co., ltd. issued the "zhejiang
china commodities city group co., ltd. credit rating report" [new century enterprise review
(2023) 020239] on june 27, 2023. 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
other statements
nil
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) main accounting data and financial indicators
√applicable □not applicable
unit: rmb
jun 30, 2023 versus
major indicator jun 30, 2023 dec 31, 2022 reasons for change
dec 31, 2022 (%)
current ratio 45.82% 42.33% up 3.49 ppt
quick ratio 35.31% 31.61% up 3.70 ppt
debt-to-asset ratio
(%)
jan-jun 2023 jan-jun 2022 yoy change (%) reasons for change
net profit after mainly due to a yoy
deduction of increase of rmb 778
non-recurring gains million in net profit, and
and losses the same below
ebitda to total debt
ratio
interest coverage
ratio
due to a yoy increase in
cash interest
protection multiple
from operating activities
ebitda-to-interest mainly due to a yoy
coverage ratio increase in net profit
loan repayment rate
(%)
interest payment
rate (%)
semi-annual report for 2023
ii. convertible corporate bonds
□applicable √not applicable
semi-annual report for 2023
section x. financial report
i. auditor’s report
□applicable √not applicable
ii. financial statements
consolidated balance sheet
june 30, 2023
prepared by: zhejiang china commodities city group co., ltd.
unit: rmb
item note june 30, 2023 december 31, 2022
current assets:
cash and cash equivalents 2,176,441,243.02 1,991,298,971.30
held-for-trading financial assets 51,610,980.66 62,331,000.66
accounts receivable 150,768,192.08 210,750,725.36
prepayments 917,588,009.93 606,057,048.25
other receivables 87,930,115.50 419,398,092.62
inventory 1,223,358,143.35 1,330,351,243.87
other current assets 725,289,690.84 634,209,950.69
total current assets 5,332,986,375.38 5,254,397,032.75
non-current assets:
debt investments 48,066,000.00 48,079,561.64
long-term receivables 288,037,945.91 278,299,600.73
long-term equity investment 7,002,860,849.12 6,033,472,919.92
other equity instruments investment 579,474,299.94 499,200,803.85
other non-current financial assets 1,473,122,562.94 1,500,307,562.13
property investment 3,541,905,331.54 2,851,643,180.42
fixed assets 4,991,042,386.46 5,220,882,784.47
construction in progress 2,749,978,013.56 2,860,064,818.36
right-of-use assets 202,220,518.66 217,702,910.81
intangible assets 6,351,921,020.08 6,461,849,690.36
development expenses 14,588,967.82 4,660,995.87
goodwill 284,916,367.87 284,916,367.87
long-term prepaid expenses 268,638,087.91 306,925,970.89
deferred income tax assets 151,447,548.30 150,346,801.31
other non-current assets 138,253,316.00 138,253,316.00
total non-current assets 28,086,473,216.11 26,856,607,284.63
total assets 33,419,459,591.49 32,111,004,317.38
current liabilities:
short-term borrowings 1,809,722,500.02 1,059,287,361.11
accounts payable 475,316,014.07 1,191,314,404.15
advances from customers 648,525,649.84 885,993,269.48
contract liabilities 3,159,674,905.35 3,991,038,021.56
payroll payable 119,585,250.83 183,135,314.51
tax payable 174,131,551.64 214,998,424.41
other payables 1,615,071,971.63 1,325,596,105.43
non-current liabilities due within one 134,947,210.88 86,852,293.01
year
other current liabilities 3,503,035,185.79 3,473,907,027.00
total current liabilities 11,640,010,240.05 12,412,122,220.66
non-current liabilities:
long-term borrowings 648,185,725.67 404,500,000.00
bonds payable 3,497,930,395.94 3,497,416,819.75
semi-annual report for 2023
lease liabilities 201,494,376.11 206,623,735.97
estimated liabilities 110,620,306.10 110,620,306.10
deferred income 161,143,393.10 103,582,129.94
deferred income tax liabilities 127,885,691.87 95,042,722.31
total non-current liabilities 4,747,259,888.79 4,417,785,714.07
total liabilities 16,387,270,128.84 16,829,907,934.73
owners’ equity (or shareholders’ equity)
paid-in capital (share capital) 5,486,074,176.00 5,486,074,176.00
capital reserve 1,660,079,638.41 1,651,146,033.96
less: treasury stocks 80,753,291.00 119,483,675.00
other comprehensive income 43,907,749.43 -24,008,473.60
surplus reserve 1,616,083,136.73 1,616,083,136.73
general risk reserve 1,038,991.13 1,038,991.13
undistributed profits 8,293,179,416.65 6,651,440,591.35
total equity attributable to owners 17,019,609,817.35 15,262,290,780.57
(shareholders) of the parent company
minority interest 12,579,645.30 18,805,602.08
total owners’ equity (or shareholders’ 17,032,189,462.65 15,281,096,382.65
equity)
total liabilities and owners’ equity (or 33,419,459,591.49 32,111,004,317.38
shareholders’ equity)
legal representative: zhao wenge person in charge of finance: wang dong
head of finance department: zhao difang
semi-annual report for 2023
balance sheet of parent company
june 30, 2023
prepared by: zhejiang china commodities city group co., ltd.
unit: rmb
december 31,
item note june 30, 2023
current assets:
cash and cash equivalents 1,602,339,736.11 1,439,042,451.56
accounts receivable 17,779,452.00 22,032,390.71
prepayments 14,661,292.74 11,055,123.31
other receivables 26,842,202.39 329,607,469.39
inventory 5,539,270.27 4,599,032.34
other current assets 3,240,507,005.04 3,650,862,939.52
total current assets 4,907,668,958.55 5,457,199,406.83
non-current assets:
long-term receivables 36,763,731.53 36,763,731.53
long-term equity investment 10,345,905,964.12 9,210,422,313.34
other equity instruments investment 579,474,299.94 499,200,803.85
other non-current financial assets 132,747,145.89 142,053,056.97
property investment 3,483,137,850.92 2,803,007,146.68
fixed assets 3,948,053,217.18 4,122,738,826.73
construction in progress 1,905,406,697.14 2,318,993,733.00
right-of-use assets 106,443,457.58 109,853,155.63
intangible assets 5,772,352,421.37 5,872,460,683.86
long-term prepaid expenses 242,617,779.51 275,795,256.99
deferred income tax assets 139,329,428.72 137,378,229.19
total non-current assets 26,692,231,993.90 25,528,666,937.77
total assets 31,599,900,952.45 30,985,866,344.60
current liabilities:
short-term borrowings 1,809,722,500.02 1,059,287,361.11
accounts payable 281,452,212.79 822,773,769.51
advances from customers 597,100,599.53 861,860,467.12
contract liabilities 2,213,236,702.02 3,032,044,768.16
payroll payable 93,018,884.38 139,946,321.85
tax payable 158,760,824.64 188,723,169.42
other payables 1,304,983,892.59 1,075,413,151.71
non-current liabilities due within one year 113,405,539.68 64,688,676.55
other current liabilities 3,757,437,897.35 3,726,398,088.04
total current liabilities 10,329,119,053.00 10,971,135,773.47
non-current liabilities:
long-term borrowings 486,700,000.00 404,500,000.00
bonds payable 3,497,930,395.94 3,497,416,819.75
lease liabilities 115,164,029.26 110,999,791.68
estimated liabilities 110,620,306.10 110,620,306.10
deferred income 102,871,393.10 103,582,129.94
deferred income tax liabilities 46,119,757.77 13,046,676.14
total non-current liabilities 4,359,405,882.17 4,240,165,723.61
total liabilities 14,688,524,935.17 15,211,301,497.08
owners’ equity (or shareholders’ equity)
paid-in capital (share capital) 5,486,074,176.00 5,486,074,176.00
capital reserve 1,253,928,868.47 1,885,778,197.50
less: treasury stocks 80,753,291.00 119,483,675.00
other comprehensive income 19,386,651.71 -40,818,470.36
semi-annual report for 2023
surplus reserve 1,616,029,660.90 1,616,029,660.90
undistributed profits 8,616,709,951.20 6,946,984,958.48
total owners’ equity (or shareholders’ 16,911,376,017.28 15,774,564,847.52
equity)
total liabilities and owners’ equity (or 31,599,900,952.45 30,985,866,344.60
shareholders’ equity)
legal representative: zhao wenge person in charge of finance: wang dong
head of finance department: zhao difang
semi-annual report for 2023
consolidated income statement
jan.-jun. 2023
unit: rmb
item note jan-jun 2023 jan-jun 2022
i. gross revenue 5,160,991,043.25 4,207,027,616.46
in which: operating revenue 5,160,991,043.25 4,207,027,616.46
ii. gross cost 4,038,995,021.46 3,611,063,999.15
in which: operating cost 3,582,510,450.35 3,159,298,146.77
taxes and surcharges 46,693,684.31 63,312,437.35
sales expenses 77,763,668.49 93,282,063.73
administrative expenses 267,899,068.22 226,571,368.27
r&d expenses 10,524,249.20 5,708,047.58
financial expenses 53,603,900.89 62,891,935.45
in which: interest expenses 125,445,414.65 154,500,444.77
interest income 38,139,798.22 89,271,567.84
plus: other income 14,631,536.76 16,715,248.69
investment income (loss is indicated by
“-”)
in which: income from investment in
associates and joint ventures
changes in fair value (loss is indicated by “-”) -7,181,931.08 -2,213,593.53
credit impairment loss (loss is
indicated by “-”)
income from disposal of assets (loss is
indicated by “-”)
iii. operating profit (loss is indicated by “-”) 2,329,378,554.61 1,361,218,037.42
plus: income from non-operating activities 3,111,709.63 4,017,499.69
less: expenses from non-operating
activities
iv. profits before tax (loss is indicated by “-”) 2,332,292,295.89 1,364,805,533.50
less: income tax 331,637,822.02 142,279,469.17
v. net profits (net loss is indicated by “-”) 2,000,654,473.87 1,222,526,064.33
(i) categorized by continuity of operation
net profits from continuing operation (net loss is
indicated by “-”)
(ii) categorized by ownership
net profits attributable to shareholders of the parent company
(net loss is indicated by “-”) 1,998,333,646.74 1,222,205,978.81
minority interest(net loss is indicated by “-”) 2,320,827.13 320,085.52
vi. other comprehensive income, net of tax 67,799,099.64 -67,583,697.37
(i) other comprehensive income attributable to owners of
the parent company, net of tax 67,916,223.03 -67,518,435.44
cannot be reclassified as profits or loss
(3) changes in fair value of investments in
other equity instruments
be reclassified as profits or loss
other comprehensive income that can be
transferred into profits and losses under - -78,548.99
equity method
(6) difference arising from the translation of
foreign currency financial statements
(2) after -tax net of other comprehensive income
attributable to minority shareholders
-117,123.39 -65,261.93
vii. total comprehensive income 2,068,453,573.51 1,154,942,366.96
(i) total comprehensive income attributable to 2,066,249,869.77 1,154,687,543.37
semi-annual report for 2023
owners of the parent company
(ii) total comprehensive income
attributable to minority shareholders
viii. earnings per share:
(i) basic earnings per share 0.37 0.22
(ii) diluted earnings per share 0.37 0.22
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
semi-annual report for 2023
income statement of parent company
jan.-jun. 2023
unit: rmb
item note jan-jun 2023 jan-jun 2022
i. operating revenue 1,923,534,277.16 1,436,820,545.38
less: operating cost 525,153,455.43 444,169,635.03
taxes and surcharges 29,462,268.30 49,112,350.75
sales expenses 37,008,590.21 39,499,869.87
administrative expenses 130,896,651.97 99,654,988.83
financial expenses 65,718,043.69 75,012,149.89
in which: interest expenses 125,445,414.65 154,500,444.77
interest income 30,709,123.09 86,046,217.34
plus: other income 12,319,396.64 6,672,653.40
investment income (loss is indicated
by “-”)
in which: income from investment in
associates and joint ventures
changes in fair value (loss is indicated by “-”) -9,305,911.08 -7,738,181.32
credit impairment loss (loss is indicated
by “-”)
income from disposal of assets (loss is
indicated by “-”)
ii. operating profits (loss is indicated by “-”) 2,345,855,518.71 1,484,218,116.49
plus: income from non-operating activities 1,090,764.24 3,754,970.99
less: expenses from non-operating
activities
iii. profits before tax (loss is indicated by “-”) 2,346,893,259.06 1,487,842,010.19
less: income tax 320,573,444.90 154,728,322.57
iv. net profits (net loss is indicated by “-”) 2,026,319,814.16 1,333,113,687.62
(i) categorized by continuity of operation(net loss is
indicated by “-”) 2,026,319,814.16 1,333,113,687.62
v. other comprehensive income, net of tax 60,205,122.07 -78,078,517.69
(i) other comprehensive income that
cannot be reclassified as profits and losses
in other equity instruments
vi. total comprehensive income 2,086,524,936.23 1,255,035,169.93
vii. earnings per share:
legal representative: zhao wenge person in charge of finance: wang dong
head of finance department: zhao difang
semi-annual report for 2023
consolidated cash flow statement
jan.-jun. 2023
unit: rmb
item note jan-jun 2023 jan-jun 2022
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 4,090,931,069.08 3,653,727,304.04
cash paid to and on behalf of employees 339,067,822.26 325,183,213.92
payments of taxes 358,963,558.10 605,322,164.89
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 136,547,121.87 118,704,141.34
net cash received from disposal of property, plant and
equipment, intangible assets and other long-term assets 208,129,700.93 355,650.91
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 other long-term assets 1,433,747,137.68 1,180,574,429.74
cash paid to acquire investments 21,106.36 3,082,074,693.64
other cash paid related to investing
activities
sub-total of cash outflow from investing
activities
net cash flow from investing activities -505,539,125.40 -472,262,132.79
iii. cash flow from financing activities:
cash received from borrowings 2,111,485,725.67 2,275,250,000.00
cash received from bond issuance 2,998,270,624.05 2,500,000,000.00
sub-total of cash inflow from financing
activities
cash paid for debts repayment 4,072,600,000.00 3,700,000,000.00
cash paid for distribution of dividends or
profits or payment of interest
other cash paid related to financing
activities
sub-total of cash outflow from financing
activities
net cash flow from financing activities 543,680,426.49 603,770,561.36
iv. effect of foreign exchange rate 2,390,230.36 2,944,567.22
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changes on cash and cash equivalents
v. net increase in cash and cash
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
semi-annual report for 2023
cash flow statement of parent company
jan.-jun. 2023
unit: rmb
item note jan-jun 2023 jan-jun 2022
i. cash flow from operating activities:
cash received from sale of goods and
rendering of services
cash received for taxes and surcharges
- 168,188,111.96
refunded
other cash receipts relating to operating
activities
sub-total of cash inflow from operating
activities
cash paid for goods and services 236,241,398.35 166,099,659.04
cash paid to and on behalf of employees 174,499,662.84 203,530,312.37
payments of taxes 293,658,960.27 537,128,931.09
other cash payments relating to operating
activities
sub-total of cash outflow from operating
activities
net cash flow from operating activities 338,912,033.81 -533,804,277.75
ii. cash flow from investing activities:
cash received from recovery of
investment
cash received from investment income 124,316,127.19 107,024,942.32
net cash received from disposal of property, plant and
equipment, intangible assets and other long-term assets 205,308,403.69 329,836.53
net cash received from disposal of
- 9,380,000.00
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 other 908,361,246.65 989,899,828.33
long-term assets
cash paid to acquire investments 5,053,269,903.20 5,864,167,378.64
other cash paid related to investing
activities
sub-total of cash outflow from investing
activities
net cash flow from investing activities -571,914,668.06 -563,432,460.78
iii. cash flow from financing activities:
cash received from borrowings 1,950,000,000.00 2,275,250,000.00
cash received from bond issuance 2,998,270,624.05 2,500,000,000.00
sub-total of cash inflow from financing
activities
cash paid for debts repayment 4,072,600,000.00 3,700,000,000.00
cash paid for distribution of dividends or
profits or payment of interest
sub-total of cash outflow from financing
activities
net cash flow from financing activities 396,299,918.72 615,741,238.15
iv. effect of foreign exchange rate
- -
changes on cash and cash equivalents
v. net increase in cash and cash 163,297,284.47 -481,495,500.38
semi-annual report for 2023
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
semi-annual report for 2023
statement of changes in consolidated owners’ equity
jan.-jun. 2023
unit: rmb
jan-jun 2023
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. closing
balance of
the same
reporting 5,486,074,176.00 1,651,146,033.96 119,483,675.00 -24,008,473.60 1,616,083,136.73 1,038,991.13 6,651,440,591.35 15,262,290,780.57 18,805,602.08 15,281,096,382.65
period of
previous
year
ii. opening
balance of
the current
year
iii. yoy
change
(decrease is - 8,933,604.45 -38,730,384.00 67,916,223.03 - - 1,641,738,825.30 1,757,319,036.78 -6,225,956.78 1,751,093,080.00
indicated by
“-”)
(i) total
comprehensi - - - 67,916,223.03 - - 1,998,333,646.74 2,066,249,869.77 2,203,703.74 2,068,453,573.51
ve income
(ii)owners’
contribution
to and - 8,933,604.45 -38,730,384.00 - - - - 47,663,988.45 - 47,663,988.45
reduction in
capital
share-based
payment into - 8,933,604.45 - - - - - 8,933,604.45 - 8,933,604.45
owner’s
equity
(iii) profits - - - - - - -356,594,821.44 -356,594,821.44 - -356,594,821.44
semi-annual report for 2023
distribution
on to owners
(or - - - - - - -356,594,821.44 -356,594,821.44 - -356,594,821.44
shareholders
)
(vi) others - - - - - - - - -8,429,660.52 -8,429,660.52
iv. closing
balance of
the current
period
jan-jun 2022
equity attributable to owners of the parent company
item
total owners’
other minority interest
equity
paid-in capital less: treasury undistributed
capital reserve comprehensive surplus reserve sub-total
(share capital) stocks profits
income
i. closing balance of
the same reporting
period of previous
year
ii. opening balance
of the current year
iii. yoy change
(decrease is - 16,414,582.49 - -67,518,435.44 - 821,342,963.96 770,239,111.01 254,823.59 770,493,934.60
indicated by “-”)
(i) total
comprehensive - - - -67,518,435.44 - 1,222,205,978.81 1,154,687,543.37 254,823.59 1,154,942,366.96
income
(ii)owners’
contribution to and - 16,414,582.49 - - - - 16,414,582.49 - 16,414,582.49
reduction in capital
share-based
- 16,414,582.49 - - - - 16,414,582.49 - 16,414,582.49
payment into
owner’s equity
semi-annual report for 2023
(iii) profits
- - - - - -400,863,014.85 -400,863,014.85 - -400,863,014.85
distribution
owners (or - - - - - -400,863,014.85 -400,863,014.85 - -400,863,014.85
shareholders)
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
jan.-jun. 2023
unit: rmb
jan-jun 2023
item paid-in capital (share other comprehensive
capital reserve less: treasury stocks surplus reserve undistributed profits total owners’ equity
capital) income
i. closing balance of the same reporting period of
previous year
ii. opening balance of the current year 5,486,074,176.00 1,885,778,197.50 119,483,675.00 -40,818,470.36 1,616,029,660.90 6,946,984,958.48 15,774,564,847.52
iii. yoy change (decrease is indicated by “-”) - -631,849,329.03 -38,730,384.00 60,205,122.07 - 1,669,724,992.72 1,136,811,169.76
(i) total comprehensive income - - - 60,205,122.07 - 2,026,319,814.16 2,086,524,936.23
(ii)owners’ contribution to and reduction in capital - 5,769,315.06 -38,730,384.00 - - - 44,499,699.06
- 5,769,315.06 - - - - 5,769,315.06
equity
(iii) profits distribution - - - - - -356,594,821.44 -356,594,821.44
(vi) others - -637,618,644.09 - - - - -637,618,644.09
iv. closing balance of the current period 5,486,074,176.00 1,253,928,868.47 80,753,291.00 19,386,651.71 1,616,029,660.90 8,616,709,951.20 16,911,376,017.28
jan-jun 2022
item paid-in capital (share other comprehensive
capital reserve less: treasury stocks surplus reserve undistributed profits total owners’ equity
capital) income
i. closing balance of the same reporting period of
previous year
ii. opening balance of the current year 5,491,274,176.00 1,866,141,278.50 137,494,800.00 66,421,903.33 1,505,156,319.67 6,349,987,902.26 15,141,486,779.76
iii. yoy change (decrease is indicated by “-”) - 4,215,089.34 - -78,078,517.69 - 932,250,672.77 858,387,244.42
(i) total comprehensive income - - - -78,078,517.69 - 1,333,113,687.62 1,255,035,169.93
(ii)owners’ contribution to and reduction in capital - 4,215,089.34 - - - - 4,215,089.34
semi-annual report for 2023
equity
(iii) profits distribution - - - - - -400,863,014.85 -400,863,014.85
iv. closing balance of the current period 5,491,274,176.00 1,870,356,367.84 137,494,800.00 -11,656,614.36 1,505,156,319.67 7,282,238,575.03 15,999,874,024.18
legal representative: zhao wenge person in charge of finance: wang dong head of finance department: zhao difang
semi-annual report for 2023
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,
zhejiang.
the group’s main business activities: market development and operation and supporting
services, sales of commodities, provision of online trading platforms and services, development
and management of online trading market, etc., in the category of comprehensive services.
the parent company of the group is yiwu china commodities city holdings limited
(hereinafter referred to as “ccch”) and the final controller of the group is the state-owned
assets supervision and administration office of the people’s government of yiwu.
√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 june 30, 2023, 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 3,416,411,319.41. the board of directors of the
company comprehensively considered the following sources of funds available to the group: 1.
the group’s expected net cash inflow from operating activities within the next 12 months; 2. as
of june 30, 2023, the group’s unused bank credit line of was rmb 2,968,100,000.00. 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 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
semi-annual report for 2023
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 company’s accounting year is from jan 1 to dec 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.
merger of the enterprises not under common control
√applicable □not applicable
the mergers of enterprises are divided into the mergers of the enterprises under common
control and mergers of the enterprises not under common control.
mergers of the enterprises under common control
merger of the enterprises under common control refers to the merger of the enterprises that
are under ultimate control of the same party or parties before and after the merger and the
control is not temporary.
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
semi-annual report for 2023
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 profits
and losses 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 profits and losses for
the current period; other comprehensive income from the long-term equity investment of the
acquiree before the date of acquisition under the equity method shall be accounted on the same
basis as that for the direct disposal of related assets or liabilities by the investee, and other
changes in shareholders’ equity than net gains or losses, other comprehensive income and profit
distribution shall be recognized in the profits and losses for the period where the date of
acquisition falls.
semi-annual report for 2023
√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.
the group’s cash refers to cash on hand, deposits available for payment at any time, and
cash equivalents refer to the investments held by the group with a short period (generally due
within three months from the date of purchase), high liquidity and small risk in value change, and
easy to convert to a known amount in cash.
statements
√applicable □not applicable
semi-annual report for 2023
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 profits and losses 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 profits and losses 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 profits and losses 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 profits and losses for the current period.
semi-annual report for 2023
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 profits and losses 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 profits and losses for the current period, the related transaction fees
will be directly recognized in the profits and losses for the current period; the related transaction
fees of other financial assets will be recognized in the initially recognized amounts thereof.
the subsequent measurement of financial assets depends on the classification thereof:
investment in debt instruments measured by amortized cost
a financial asset is classified into those measured by amortized cost, if the business model
for the management of the asset is for the purpose of collecting contractual cash flow; and the
terms of the contract of the asset stipulate that the cash flow generated on the specific date is
only the repayment of principal and the payment of interest on the outstanding principal. the
interest income of such financial assets is recognized with the effective interest method, and the
gains or losses from the de-recognition, modification or impairment thereof are all recognized in
the profits and losses 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 profits and losses for the current period, while the subsequent changes in fair value are
recognized in other comprehensive income, and no provision is required for impairment. when
the financial assets are derecognized, the accumulated gains or losses previously recognized in
other comprehensive income will be moved out of other comprehensive income and recognized
in retained earnings.
financial assets that are measured by fair value and of which the changes in fair
value are recognized in the profits and losses 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 profits and
losses 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 profits and losses 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
profits and losses 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 profits
and losses for the current period, the related transaction fees are recognized directly in the
semi-annual report for 2023
profits and losses 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 profits and losses 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 profits and losses 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 profits and losses 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
profits and losses 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
semi-annual report for 2023
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
semi-annual report for 2023
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 profits and losses 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
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 asset refers to the right to receive a consideration for the transfer of goods or
services to a customer, and this right depends on the factors other than the passage of time.
(2).determination and accounting treatment of the expected credit loss of contract
assets
√applicable □not applicable
please refer to note v.10. financial instruments for details.
semi-annual report for 2023
□applicable √not applicable
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
determination and accounting treatment of the expected credit loss of other debt
investments
□applicable √not applicable
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 profits and losses, other comprehensive income,
and profit distribution is transferred to the current profits and losses 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 profits and losses, other
comprehensive income, and profit distribution is transferred to the current profits and losses
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
semi-annual report for 2023
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 profits and losses for the current period and the cost of the
long-term equity investment will be adjusted simultaneously.
in the equity method, after long-term equity investment is acquired, the investment gains or
losses and other comprehensive income shall be recognized and the book value of the long-term
equity investment shall be adjusted based on the share in the net gains or losses and other
comprehensive income realized by the investees to be enjoyed or assumed. the share in the
investee’s net gains or losses to be enjoyed shall be determined based on the fair value of the
investee’ s identifiable assets at the acquisition of investment, according to the group’s
accounting policies and accounting periods and after net profits of the investee are adjusted with
the portion of gains or losses from the internal transactions with its associates and joint ventures
that is attributable to the investor based on the share to be enjoyed by it (but if the loss from
internal transactions falls in the assets impairment loss, it shall be recognized in full) offset,
except for the invested and sold assets that constitute businesses. the book value of long-term
equity investment shall be reduced according to the share to be enjoyed by it in the profits or
cash dividend declared by the investees to be distributed. for an investee’s net losses
recognized by the group, the book value of the long-term equity investment and other long-term
equity that substantially constitute net investment in the investee shall be written down to zero at
maximum, except for the extra losses for which the group is liable. for the investee’s other
changes in shareholders’ equity other than net gains or losses, other comprehensive income and
profit distribution, the book value of the long-term equity investment will be adjusted and the
changes will be recognized in the shareholders’ equity.
for the disposal of long-term equity investment, the difference between the book value of
long-term equity investment and the proceeds actually received from the disposal thereof is
recognized in the profits or loss for the current period. for the long-term equity investment
measured with the equity method, if the equity method is terminated due to the disposal, the
original related other comprehensive income measured with the equity method will be accounted
on the same basis as that for the direct disposal of related assets or liabilities by the investees,
and the shareholders’ equity recognized due to the investees’ other changes in shareholders’
equity than net gains or losses, other comprehensive income and profit distribution will be
recognized in the profits or loss for the current period in full; if the equity method is still adopted,
the original related other comprehensive income measured with the equity method will be
accounted on the same basis as that for the direct disposal of related assets or liabilities by the
investees and recognized in the profits or loss for the current period pro rata, and the
shareholders’ equity recognized due to the investees’ other changes in shareholders’ equity than
semi-annual report for 2023
net gains or losses, other comprehensive income and profit distribution will be recognized in the
profits and losses for the current period pro rata.
(1).under cost measurement model
depreciation or amortization methods
a property investment is a real estate property held with the intention of earning rents or of
capital appreciation or both, including land use rights that have been leased, land use rights that
are held and ready to be transferred after appreciation, and buildings that have been leased.
property investments are initially measured by cost. the subsequent expenses relating to
an property investment will be recognized in the cost of the property investment if the economic
benefits relating to the asset are very likely to flow in and the cost thereof can be measured
reliably. otherwise, they will be recognized in the profits and losses 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 profits and losses 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
semi-annual report for 2023
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 profits and losses 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
profits and losses 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 profits and losses for the current period until the acquisition, construction or
production of the asset is resumed.
□applicable √not applicable
semi-annual report for 2023
□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 j9九游app 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 profits and losses for the
semi-annual report for 2023
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 profits and losses 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:
semi-annual report for 2023
category amortization period
architectural ornaments of buildings 3-5 years
advertising facilities 3-5 years
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
profits and losses 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 profits and losses
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 profits and losses 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.
semi-annual report for 2023
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 profits and losses, 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 profits and losses 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.
semi-annual report for 2023
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
semi-annual report for 2023
(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 yiwu market 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 yiwu market and its supporting services
since customers obtain and consume the economic benefits brought about by the group’s
performance at the time of the performance by the group, the group regards them as a
performance obligation to be fulfilled within a certain period of time and recognizes an income
based on the performance progress, except that the performance progress cannot be
reasonably determined. under the output method, the group determines the performance
progress of the provision of the use of shops in yiwu market and the supporting services for its
operation based on the number of using days of the shops when the performance progress
cannot be reasonably determined, if the cost incurred by the group is expected to be
compensated, the income shall be recognized according to the amount of the cost incurred until
the performance progress can be reasonably determined.
hotel accommodation business
since customers obtain and consume the economic benefits brought about by the group’s
performance at the time of the performance by the group, the group regards them as a
performance obligation to be fulfilled within a certain period of time and recognizes an income
based on the performance progress, except that the performance progress cannot be
reasonably determined. in accordance with the output method, the group determines the
performance progress of hotel accommodation services based on the number of staying days. .
when the performance progress cannot be reasonably determined, if the cost incurred by the
group is expected to be compensated, the income shall be recognized according to the amount
of the cost incurred until the performance progress can be reasonably determined.
hotel catering business
for individual performance obligations in the provision of hotel catering services, the group
prices hotel catering services separately, and uses the completion of hotel catering services as
the point of income recognition.
fixed -time paid funding services
since customers obtain and consume the economic benefits brought about by the group’s
performance at the time of the performance by the group, the group regards them as a
performance obligation to be fulfilled within a certain period of time and recognizes an income
based on the performance progress, except that the performance progress cannot be
reasonably determined. under the output method, the group determines the performance
progress of the services for the fixed-term paid funding services based on the number of using
days of funds. when the performance progress cannot be reasonably determined, if the cost
semi-annual report for 2023
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 profits and losses.
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 profits and losses 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 profits and losses 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 profits and losses in stages under a
reasonable and systematic method during the useful life of the related assets (but government
semi-annual report for 2023
grants measured at a nominal amount shall be directly included in the current profits and losses);
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 profits and
losses 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
semi-annual report for 2023
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 profits and losses
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 profits and losses on a straight-line
basis over each period of the lease term, and variable lease payments not included in lease
receipts are included in profits and losses 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 profits and losses 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
semi-annual report for 2023
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
semi-annual report for 2023
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
semi-annual report for 2023
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 2023, the first implementation of new accounting standards or standard
interpretations would involve adjustments to the financial statements at the
beginning of the first implementation year
□applicable √not applicable
□applicable √not applicable
vi. taxes
major taxes and tax rates
√applicable □not applicable
tax base of taxation rate
the company is a general taxpayer. the
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
sale of goods or rendering of
vat addition, for the sale of the self-developed old
taxable service
real estate projects (the contract start date
indicated in the “construction project
construction permit” is before april 30, 2016)
and the lease of the real estate acquired before
april 30, 2016, the simplified tax calculation
method shall apply at the rate of 5%.
urban
maintenance and indirect tax actually paid 5% or 7%
construction tax
domestic enterprises should pay 25% of the
taxable income for corporate income tax;
european huajie development co., ltd. is
corporate income registered in prague, czech republic, so it is
tax 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
semi-annual report for 2023
is subject to the hong kong income tax rate,
in dubai, so it is free from corporate income tax.
land appreciation ratio of appreciation value to
four-bracket progressive tax rate (30%～60%)
tax deductible items
if the tax is levied according to
price, the amount is 1.2% of the
balance of the original value of the
real estate tax property after a 30% deduction; if 1.2% or 12%
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
undertaking advertising turnover 3%
development fee
disclosure of taxpayers subject to different income tax rates
√applicable □not applicable
taxpayer income tax rate (%)
yiwu china commodities city (spain) co., ltd. 25.00
european huajie investment development co., 19.00
ltd.
yiwu china commodities city (hong kong) 16.50
international trade co., ltd.
yiwu china commodities city (germany) co., 15.00
ltd.
better silk road fze 0
√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 218,145.54 220,471.11
bank deposits 2,176,166,493.38 1,990,327,169.17
other cash and cash equivalents 56,604.10 751,331.02
semi-annual report for 2023
total 2,176,441,243.02 1,991,298,971.30
in which: amount deposited abroad 41,583,347.91 76,203,839.82
other notes:
for the cash and cash equivalents which are restricted in use, please refer to notes vii.81
assets with restricted title or right of use.
interest income of demand deposits is accrued based on the demand deposit rates of banks.
the term of short-term time deposits ranges from three months to half a year and depends on the
group’s cash demand, and the interest income thereof is accrued based on the corresponding
time deposit rates of banks.
√applicable □not applicable
unit: rmb
opening
item closing balance
balance
financial assets that are measured by fair value and of 51,610,980.66 62,331,000.66
which the changes in fair value are recognized in the
profits and losses for the current period
among them:
bank financing products 35,179,435.66 38,679,435.66
equity instrument investment 16,431,545.00 23,651,565.00
total 51,610,980.66 62,331,000.66
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
(6). provisions for bad debts
□applicable √not applicable
semi-annual report for 2023
(7). notes receivable actually written off during the current period
□applicable √not applicable
other notes:
□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 150,946,794.66
subtotal within 1 year 150,946,794.66
over 3 years 100,234.00
total 158,736,526.94
(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 6,261,907.10 3.94 6,261,907.10 100.00 - 6,261,907.10 2.86 6,261,907.10 100.00 -
made individually
among them:
lease receivables 6,261,907.10 3.94 6,261,907.10 100.00 - 6,261,907.10 2.86 6,261,907.10 100.00 -
accounts receivable for
which bad debt provision is 152,474,619.84 96.06 1,706,427.76 1.12 150,768,192.08 212,986,900.01 97.14 2,236,174.65 1.05 210,750,725.36
made by group
among them:
accounts receivable for
which the bad debts are
provided by combination of
credit risk characteristics
total 158,736,526.94 / 7,968,334.86 / 150,768,192.08 219,248,807.11 / 8,498,081.75 / 210,750,725.36
accounts receivable for which bad debt provision is made individually:
√applicable □not applicable
unit: rmb
closing balance
name bad debt provision ratio
reason for
book balance
provision provision(%)
due to
deterioration of
operating
lease receivables 6,261,907.10 6,261,907.10 100.00
conditions,
expected not to
be recovered
total 6,261,907.10 6,261,907.10 100.00 /
explanation for making bad debt provision for accounts receivable individually:
□applicable √not applicable
explanation for making bad debt provision for accounts receivable by group:
semi-annual report for 2023
√applicable □not applicable
combined provision items: accounts receivable with provision for bad debts based on credit risk
characteristics
unit: rmb
closing balance
name accounts bad debt provision ratio
receivable provision (%)
accounts receivable for which the bad debts are 152,474,619.84 1,706,427.76 1.12
provided by combination of credit risk
characteristics
total 152,474,619.84 1,706,427.76 1.12
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
end of june 2023
account age estimated book balance expected credit loss expected credit loss in
in default rate (%) whole duration
within 1
year
over 3
years
total 152,474,619.84 1,706,427.76
(3). 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 accounts 8,498,081.75 - 529,746.89 - 7,968,334.86
receivable
total 8,498,081.75 - 529,746.89 - 7,968,334.86
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
debtor closing balance proportion in the closing balance of
total closing balance bad debt provision
of accounts
semi-annual report for 2023
receivable (%)
total balance of the accounts 36,896,309.25 23.24 6,566,143.99
receivable with the top five
entities
total 36,896,309.25 23.24 6,566,143.99
(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
closing balance opening balance
account age
amount proportion (%) amount proportion (%)
within 1 year 912,327,191.47 99.43 600,114,288.07 99.02
over 3 years 340,000.00 0.04 450,000.00 0.07
total 917,588,009.93 100.00 606,057,048.25 100.00
explanation for failure to settle the prepayments with an account age longer than one year and in
important amounts:
nil
(2). prepayments to the five suppliers with the highest closing balance
√applicable □not applicable
unit: rmb
proportion in total
debtor closing balance closing balance of
prepayments (%)
pacific seafood trader sa 83,558,074.90 9.11
binzhou yellow river oasis agricultural
development co., ltd.
industrial pesquera santa priscila
s.a.
sociedad nacional de galapagos c.a. songa 65,308,100.38 7.12
negocios industriales real nirsa s.a. 55,112,031.87 6.01
total 354,503,995.51 38.65
other statements
□applicable √not applicable
semi-annual report for 2023
presentation of items
√applicable □not applicable
unit: rmb
item closing balance opening balance
other receivables 87,930,115.50 419,398,092.62
total 87,930,115.50 419,398,092.62
other notes:
□applicable √not applicable
interest receivable
(1). classification of interest receivable
□applicable √not applicable
(2). significant overdue interest
□applicable √not applicable
(3). 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 71,074,199.16
subtotal within 1 year 71,074,199.16
over 3 years 17,008,357.32
bad debt provision for other receivables -4,106,745.69
total 87,930,115.50
(2). classification based on the nature of accounts
√applicable □not applicable
unit: rmb
nature of receivable closing book balance opening book balance
withholdings and deposits 81,190,657.14 84,610,870.01
receivables from export tax 4,934,649.01 10,041,570.82
rebate
semi-annual report for 2023
reserve 1,804,809.35 958,739.70
financial assistance - 323,786,912.09
receivable from joint ventures
total 87,930,115.50 419,398,092.62
(3). bad debt provision
√applicable □not applicable
unit: rmb
stage 1 stage 2 stage 3
expected credit expected credit
expected credit
loss in the entire loss in the entire
bad debt provision loss in the total
duration (credit duration (credit
coming 12
has not been has been
months
impaired) impaired)
balance as of january 1, 4,141,791.44 4,141,791.44
balance as of january 1,
provision made in the 77,346.86 77,346.86
current period
current reversal 96,517.82 96,517.82
write-off in current period 15,874.79 15,874.79
balance as of june 30, 2023 4,106,745.69 4,106,745.69
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 charge-off balance
provision
or reversal or write-off
bad debt provision for
other receivables
total 4,141,791.44 77,346.86 96,517.82 15,874.79 4,106,745.69
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 15,874.79
of which, important write-offs of other receivables:
□applicable √not applicable
notes on the write-off of other receivables:
□applicable √not applicable
semi-annual report for 2023
(6). other receivables from the five debtors with highest closing balance
√applicable □not applicable
unit: rmb
weight in the total bad debt
nature of closing account closing balance of provision
debtor
receivable balance age other receivables closing
(%) balance
yiwu weiniuke trading co., ltd advance 4,275,000.00 within 1 4.64 -
payment year
yiwu shengran trading co., advance 4,027,918.00 within 1 4.38 -
ltd. payment year
yiwu green light import and advance 2,645,000.00 within 1 2.87 -
export co., ltd payment year
yiwu jufu import and export advance 2,378,500.00 within 1 2.58 -
co., ltd payment year
yiwu changde import and advance 2,126,000.00 within 1 2.31 -
export co., ltd payment year
total / 15,452,418.00 / 16.78 -
(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
item depreciation/provision depreciation/provision
book balance book value book balance book value
for impairment of for impairment of
contract performance contract performance
cost cost
raw materials 238,747.71 - 238,747.71 555,462.87 - 555,462.87
finished goods 137,875,101.03 - 137,875,101.03 212,470,958.56 - 212,470,958.56
work-in-progress 4,114,430.01 - 4,114,430.01 2,445,689.69 - 2,445,689.69
materials
development 67,907,950.27 28,303,338.06 39,604,612.21 67,907,950.27 28,303,338.06 39,604,612.21
cost
development 1,041,525,252.39 - 1,041,525,252.39 1,075,274,520.54 - 1,075,274,520.54
products
total 1,251,661,481.41 28,303,338.06 1,223,358,143.35 1,358,654,581.93 28,303,338.06 1,330,351,243.87
(2). provision for inventory depreciation/provision for impairment of contract
performance cost
√applicable □not applicable
semi-annual report for 2023
unit: rmb
increase in the decrease in the
opening current period current period closing
item
balance charge-off balance
provision other other
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
as of june 30, 2023, the inventory with a book value of rmb 35,797,443.87 (december 31,
(4). amortization of contract performance cost during the current period
□applicable √not applicable
other notes:
√applicable □not applicable
inventory-development cost unit: rmb-yuan unit: rmb
item opening increase in the decrease in the closing balance
balance current period current period
haicheng phase
i business 67,907,950.27 - - 67,907,950.27
street
total 67,907,950.27 - - 67,907,950.27
inventory-developed products unit: rmb-yuan unit: rmb
item opening balance increase in the decrease in the closing balance
current period current period
haicheng phase i
business street
haicheng phase
ii business street
total 1,075,274,520.54 528,468.99 34,277,737.14 1,041,525,252.39
(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
other notes:
□applicable √not applicable
semi-annual report for 2023
□applicable √not applicable
□applicable √not applicable
√applicable □not applicable
unit: rmb
item closing balance opening balance
payment business reserve 420,922,188.51 367,484,914.87
to-be-deducted input tax 285,384,179.21 146,697,598.28
advance income tax 12,324,603.12 113,127,305.76
to-be-certified input tax 5,106,740.58 5,348,152.36
entrusted loans to the market 1,737,479.42 1,737,479.42
traders
less: bad debt provision for -185,500.00 -185,500.00
entrusted loans
total 725,289,690.84 634,209,950.69
other notes:
nil
(1).overview of debt investment
√applicable □not applicable
unit: rmb
closing balance opening balance
item impairment impairment
book balance book value book balance book value
provision provision
entrusted 48,066,000.00 - 48,066,000.00 48,079,561.64 - 48,079,561.64
loans
total 48,066,000.00 - 48,066,000.00 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
(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
semi-annual report for 2023
other notes:
□applicable √not applicable
semi-annual report for 2023
(1) overview of long-term receivables
√applicable □not applicable
unit: rmb
closing balance opening balance range
of
item bad debt bad debt
book balance book value book balance book value discount
provision provision
rate
receivables
from joint
ventures 280,785,954.02 - 280,785,954.02 269,877,115.20 - 269,877,115.20
financial
assistance
guarantee
deposit
total 288,037,945.91 - 288,037,945.91 278,299,600.73 - 278,299,600.73 /
(2) bad debt provision
□applicable √not applicable
(3) long-term receivables derecognized due to transfer of financial assets
□applicable √not applicable
(4) amounts of assets and liabilities formed by the transfer of long-term receivables and
continuing involvement
□applicable √not applicable
other notes:
□applicable √not applicable
semi-annual report for 2023
√applicable □not applicable
unit: rmb
change in the current period
investment gains adjustment of closing balance
opening amount closing amount
investee decrease in or losses other of impairment
balance balance
investment recognized with the comprehensiv provision
equity method e income
yiwu shanglv 396,972,448.93 - 20,662,266.60 - 417,634,715.53 -
yiwu rongshang property 65,650,902.46 - 2,809,806.79 - 68,460,709.25 -
yiwu chuangcheng property 28,449,292.72 - 2,673,475.72 - 31,122,768.44 -
yiwu guoshen shangbo property co., ltd. 75,740,065.56 - 859,602,411.13 - 935,342,476.69 -
other 35,311,309.47 - -730,256.49 - 34,581,052.98 3,327,216.16
sub-total 602,124,019.14 - 885,017,703.75 - 1,487,141,722.89 3,327,216.16
huishang micro-finance 78,209,979.82 - 1,067,437.11 - 79,277,416.93 -
huishang redbud equity 80,251,875.33 - -15,920,657.62 - 64,331,217.71 -
chouzhou financial lease 489,205,549.91 - 52,173,749.11 - 541,379,299.02 -
yiwu china commodities city investment 9,508,049.22 - - - 9,508,049.22 9,508,049.22
management co., ltd.
yiwu china commodities city fuxing 102,918,559.00 - - - 102,918,559.00 -
investment center (limited partnership)
pujiang lvgu property co., ltd. 378,839,597.00 - -8,975,700.27 - 369,863,896.73 -
cccp 2,985,480,694.55 - 123,607,288.99 - 3,109,087,983.54 -
yiwu hongyi equity investment fund partnership 945,642,085.02 50,000,000.00 12,315,353.28 - 907,957,438.30 -
(limited partnership)
zhijie yuangang 145,563,439.33 - -7,168,026.16 - 138,395,413.17 -
other 228,564,336.98 - -24,445,385.66 1,716,166.67 205,835,117.99 -
sub-total 5,444,184,166.16 50,000,000.00 132,654,058.78 1,716,166.67 5,528,554,391.61 9,508,049.22
total 6,046,308,185.30 50,000,000.00 1,017,671,762.53 1,716,166.67 7,015,696,114.50 12,835,265.38
semi-annual report for 2023
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]
other 3,327,216.16 - - 3,327,216.16
total 12,835,265.38 - - 12,835,265.38
note 1: in 2017, cccf, a wholly-owned subsidiary of the group, and shanghai fuxing industrial group co., ltd. (hereinafter referred to as "fuxing")
jointly established industrial fund yiwu china commodities city fuxing investment center (llp) (hereinafter referred to as the "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
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, as of
june 30, 2023, 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.
semi-annual report for 2023
(1).overview of other equity instruments investment
√applicable □not applicable
unit: rmb
item closing balance opening balance
shenwan hongyuan group co., ltd. 579,474,299.94 499,200,803.85
total 579,474,299.94 499,200,803.85
(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 1,224,658,299.12 1,242,537,387.23
unlisted equity investment 210,030,495.82 210,030,495.82
neeq equity investment 38,433,768.00 47,739,679.08
total 1,473,122,562.94 1,500,307,562.13
other notes:
nil
measurement models
(1). property investment measured by cost
unit: rmb
buildings and
item land use right total
structures
i. original book value
(1) purchase 83,263,968.57 - 83,263,968.57
(2) inventory\fixed 676,500,040.02 - 676,500,040.02
assets\construction in progress changed
into property investment
ii. accumulated depreciation and accumulated amortization
(1) provision or amortization 63,836,494.36 5,665,363.11 69,501,857.47
iii. depreciation provision
iv. book value
semi-annual report for 2023
(2). information of the investment real estate for which the property right certificate has
not yet been obtained:
√applicable □not applicable
unit: rmb
reasons for having not
item book value obtained the ownership
certificate
comprehensive bonded zone 1,713,868,771.75 completion settlement not
completed
trading station of yiwu ccc 90,528,086.57 completion settlement not
warehousing park completed
office building of the auxiliary 82,309,277.35 completion settlement not
project in western yiwu completed
total 1,886,706,135.67
other statements
√applicable □not applicable
as of june 30, 2023, amount of the investment real estate for which the property right
certificate has not yet been obtained was rmb 1,886,706,135.67.
presentation of items
√applicable □not applicable
unit: rmb
item closing balance opening balance
fixed assets 4,991,042,386.46 5,220,882,784.47
total 4,991,042,386.46 5,220,882,784.47
other notes:
nil
semi-annual report for 2023
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:
- 2,232,611.64 - 2,232,611.64
current period
(1) purchase - 2,232,611.64 - 2,232,611.64
current period
(1) disposal or
retirement
(2) other
changeover
ii. accumulated depreciation
current period
(1) provision 149,412,757.51 38,675,304.85 380,583.25 188,468,645.61
current period
(1) disposal or
retirement
(2) other - 126,783.63 - 126,783.63
changeover
iii. depreciation provision
iv. book 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
semi-annual report for 2023
(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 558,037,755.60 completion settlement not
yiwu completed
liaoning xiliu yiwu china 293,081,222.75 completion settlement not
commodities city completed
huangyuan clothing market 237,956,529.59 completion settlement not
completed
ccc hotel 49,814,446.51 completion settlement not
completed
total 1,138,889,954.45 completion settlement not
completed
other notes:
√applicable □not applicable
the impairment of fixed assets was rmb 471,163,467.85, which was the impairment of
fixed assets of haicheng yiwu china commodities city.
as of june 30, 2023, the amount of fixed assets for which the property right certificate has
not yet been obtained due to the pending final settlement was rmb 1,138,889,954.45.
disposal of fixed assets
□applicable √not applicable
presentation of items
√applicable □not applicable
unit: rmb
item closing balance opening balance
construction in progress 2,749,978,013.56 2,860,064,818.36
total 2,749,978,013.56 2,860,064,818.36
other notes:
nil
semi-annual report for 2023
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
liaoning xiliu yiwu china
commodities city commerce 32,290,506.33 -4,635,059.96 27,655,446.37 32,290,506.33 -4,635,059.96 27,655,446.37
phase i project—hotel project
the zhimei dachen tourism
project
the chian west sea tourism
project
the yiwu comprehensive
bonded zone project
yiwu digital trade industrial
park
global digital free trade
center
logistics park s2 317,038,694.08 - 317,038,694.08 235,339,023.06 - 235,339,023.06
logistics park s3 359,995,043.23 - 359,995,043.23 304,000,538.70 - 304,000,538.70
yiwu international digital
logistics market
other projects 13,671,044.16 - 13,671,044.16 617,612.59 - 617,612.59
total 2,754,613,073.52 -4,635,059.96 2,749,978,013.56 2,864,699,878.32 -4,635,059.96 2,860,064,818.36
semi-annual report for 2023
(2). changes to important construction in progress during the current period
√applicable □not applicable
unit: rmb10,000
accumulated
amount
investment
transferred in which: interest
increase in the project
opening to closing accumulated capitalized capitalization
in the as a progress of
item budget amount investment amount capitalized interest in ratio for the source of funds
current percentage project
balance real estate balance interest the current current
period of the budget
in this period period (%)
proportion
period
(%)
liaoning xiliu
yiwu china
commodities
city commerce 180,000.00 3,229.05 - - 3,229.05 96.32 shutdown 154.61 - - self-owned/financing
phase i
project—hotel
project
the zhimei
under
dachen tourism 6,000.00 2,280.13 - - 2,280.13 97.25 - - - self-owned
construction
project
the chian
under
west sea 8,000.00 7,000.35 343.51 - 7,343.86 89.36 - - - self-owned
construction
tourism project
the yiwu
comprehensive under
bonded zone construction
project
yiwu digital
under
trade industrial 39,579.00 15,815.07 1,072.87 - 16,887.94 42.67 220.95 220.95 2.91 self-owned/financing
construction
park
global digital
under
free trade 832,082.00 7,187.82 12,103.48 - 19,291.30 2.35 211.39 211.39 2.91 self-owned/financing
construction
center
semi-annual report for 2023
logistics park under
s2 construction
logistics park under
s3 construction
yiwu
international under
digital logistics construction
market
under
other projects - 61.76 1,305.34 - 1,367.10 - - - - self-owned
construction
total 2,043,511.00 286,469.99 56,641.32 67,650.00 275,461.31 / / 3,898.39 3,557.70 / /
semi-annual report for 2023
(3). provision made for the impairment of construction in progress in the current
period
□applicable √not applicable
other statements
√applicable □not applicable
the impairment value of the project under construction is rmb 4,635,059.96, which is the
provision impairment of liaoning xiliu yiwu china commodities city commerce phase i
project—hotel project.
construction materials
□applicable √not applicable
(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
ii. accumulated depreciation
current period
(1) provision 12,646,469.39 3,291,061.38 15,937,530.77
iii. depreciation provision
iv. book value
other notes:
semi-annual report for 2023
nil
(1). overview of intangible assets
√applicable □not applicable
unit: rmb
software and
item land use right total
software j9九游app copyright
i. original book value
current period
(1) purchase - 8,525,099.93 8,525,099.93
(2) internal r&d - 5,346,188.96 5,346,188.96
current period
(1) disposal 11,190,617.14 740,040.00 11,930,657.14
(2) other - 11,531,983.84 11,531,983.84
changeover
ii. accumulated amortization
current period
(1) provision 100,025,736.90 9,507,910.08 109,533,646.98
current period
(1) disposal 6,834,652.21 678,860.36 7,513,512.57
(2) other 1,682,816.22 1,682,816.22
changeover
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 1.03%
(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
opening increase in the decrease in the closing
item amount current period current period amount
balance internal recognized as balance
semi-annual report for 2023
development intangible assets
expenditure
the development project
for platform “chinagoods”
kuaijietong core payment
system
total 4,660,995.87 15,274,160.91 5,346,188.96 14,588,967.82
other notes:
nil
(1). original book value of goodwill
√applicable □not applicable
unit: rmb
increase in the decrease in the
the name of the
current period current period
invested unit or opening
formed by a closing balance
matters forming balance
business disposal
goodwill
combination
xunchi group 284,916,367.87 - - 284,916,367.87
total 284,916,367.87 - - 284,916,367.87
(2). provision for goodwill impairment
√applicable □not applicable
unit: rmb
the name of the increase in the decrease in the
opening current period current period closing
invested unit or matters
balance balance
forming goodwill provision disposal
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 284,916,367.87.
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.
semi-annual report for 2023
(4). goodwill impairment test process, key parameters (e.g. growth rate in the forecast
period, growth rate in the stable period, profit margin, discount rate, forecast period
for the estimate of present value of future cash flows, if applicable) and recognition
of goodwill impairment loss
□applicable √not applicable
(5). impact of goodwill impairment test
□applicable √not applicable
other notes:
□applicable √not applicable
semi-annual report for 2023
√applicable □not applicable
unit: rmb
amortized
increase in the
item opening balance amount in the closing balance
current period
current period
decoration of 296,452,554.64 434,300.01 33,762,748.04 263,124,106.61
buildings and
structures
advertising 10,473,416.25 602,033.02 5,561,467.97 5,513,981.30
facilities
total 306,925,970.89 1,036,333.03 39,324,216.01 268,638,087.91
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 14,972,784.88 3,743,196.22 18,828,747.02 4,707,186.78
assets
unrealized profits of internal 1,094,793.10 273,698.28 1,094,793.10 273,698.28
transactions
deductible losses 1,039,362.24 259,840.56 1,039,362.23 259,840.56
recognized but unpaid 245,863,907.30 61,465,976.83 301,006,872.77 75,251,718.21
liabilities
overspent advertising cost 12,547,314.44 3,136,828.61 12,547,314.43 3,136,828.61
right-of-use assets and lease 119,938,342.46 29,984,585.62 6,238,418.88 1,559,604.71
liabilities
asset-related government 79,879,800.00 19,969,950.00 79,879,800.00 19,969,950.00
grants
changes in the fair value of other 129,478,401.20 32,369,600.30 122,472,837.68 30,618,209.42
non-current financial assets
changes in fair value of trading 975,487.52 243,871.88 3,854,431.84 963,607.96
financial assets
change in fair value of other equity - - 54,424,627.13 13,606,156.78
instruments investment
total 605,790,193.14 151,447,548.30 601,387,205.08 150,346,801.31
(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 24,853,936.77 6,213,484.20 27,573,081.34 6,893,270.33
merger of the enterprises not under
semi-annual report for 2023
common control
change in fair value of other 25,848,868.92 6,462,217.23 - -
equity instruments investment
right-of-use assets and lease 108,242,153.82 27,060,538.46 - -
liabilities
changes in the fair value of other 352,597,807.91 88,149,451.98 352,597,807.91 88,149,451.98
non-current financial assets
total 511,542,767.42 127,885,691.87 380,170,889.25 95,042,722.31
(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 30,468,765.02 13,856,330.50
difference
deductible losses 848,202,955.01 857,701,806.92
total 878,671,720.03 871,558,137.42
(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 848,202,955.01 857,701,806.92 /
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 impairment impairment
book balance book value book balance book value
provision provision
prepaid
land
transfer
fees
total 138,253,316.00 - 138,253,316.00 138,253,316.00 - 138,253,316.00
semi-annual report for 2023
other notes:
nil
(1). classification of short-term borrowings
√applicable □not applicable
unit: rmb
item closing balance opening balance
credit loans 1,809,722,500.02 1,059,287,361.11
total 1,809,722,500.02 1,059,287,361.11
note to the classification of short-term borrowings:
nil
(2). overdue short-term borrowings
□applicable √not applicable
other notes:
√applicable □not applicable
as of june 30, 2023, the annual interest rate of the above-mentioned loan was 2.35%
-3.75% (december 31, 2022: 2.35% -4.151%).
□applicable √not applicable
□applicable √not applicable
□applicable √not applicable
(1). presentation of accounts payable
√applicable □not applicable
unit: rmb
item closing balance opening balance
accounts payable for 298,935,362.25 881,114,454.44
market and auxiliary works
projects
trade payables 69,539,451.17 58,894,383.76
accounts payable for real 52,102,031.86 216,635,705.68
estate projects
accounts payable for 32,820,089.58 17,465,421.40
procurement for the hotel
project
other 21,919,079.21 17,204,438.87
total 475,316,014.07 1,191,314,404.15
(2). important accounts payable with age over 1 year
√applicable □not applicable
semi-annual report for 2023
unit: rmb
reasons for not being paid or
item closing balance
carried forward
warranty premium 8,687,983.28 under warranty or not billed
total 8,687,983.28 /
other notes:
√applicable □not applicable
the accounts payable are free of interest and are generally paid within two months after
receipt of the payment notice or based on the project contracts and progress of projects. the
balance payments for the projects are made after completion of settlement.
semi-annual report for 2023
(1). presentation of advances from customers
√applicable □not applicable
unit: rmb
item closing balance opening balance
advance receipt of merchant 431,917,765.67 639,009,194.79
payment
rental advances 204,656,942.67 236,525,969.44
other 11,950,941.50 10,458,105.25
total 648,525,649.84 885,993,269.48
(2). important advances with the age over 1 year
□applicable √not applicable
other notes:
√applicable □not applicable
since the advances from customers are mainly from the advance use fees for shops and the
single amount is small, as of june 30, 2023, 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 2,199,386,342.82 2,982,431,412.43
for use fee of shops
advances from customers 620,817,196.70 653,697,926.33
for goods
advances from customers 225,190,284.87 228,163,127.56
for advertising fee
advance payment service 42,930,659.86 33,407,547.17
fee
advance payment for 24,195,203.57 23,697,301.00
exhibition
advances from customers 15,135,900.94 17,747,693.18
for use fee of networking
cables
advances from customers 9,297,169.67 11,119,366.97
for loyalty ofbrands
advances from customers 4,536,322.88 31,199,591.78
for housing purchase
other 18,185,824.04 9,574,055.14
total 3,159,674,905.35 3,991,038,021.56
(2).amount of and reasons for material changes to book value during the reporting
period
□applicable √not applicable
other notes:
□applicable √not applicable
semi-annual report for 2023
(1).presentation of payroll payable
√applicable □not applicable
unit: rmb
increase in the decrease in the
item opening balance closing balance
current period current period
i. short-term compensation 179,702,065.74 239,354,632.36 301,956,937.18 117,099,760.92
ii. post employment benefits – 3,433,248.77 16,274,949.53 17,222,708.39 2,485,489.91
defined contribution plan
iii. severance benefits - 165,265.73 165,265.73 -
total 183,135,314.51 255,794,847.62 319,344,911.30 119,585,250.83
(2).presentation of short-term compensation
√applicable □not applicable
unit: rmb
increase in the decrease in the
item opening balance closing balance
current period current period
subsidy
in which: contribution to medical 1,094,163.11 9,409,814.90 9,427,785.52 1,076,192.49
insurance scheme
contribution to work-related 118,960.20 380,384.91 391,337.53 108,007.58
injury insurance scheme
contribution to maternity 58,481.78 36,839.94 36,839.94 58,481.78
insurance scheme
and employee education fund
total 179,702,065.74 239,354,632.36 301,956,937.18 117,099,760.92
(3).presentation of defined contribution plan
√applicable □not applicable
unit: rmb
increase in the decrease in the
item opening balance closing balance
current period current period
endowment insurance scheme
unemployment insurance
scheme
total 3,433,248.77 16,274,949.53 17,222,708.39 2,485,489.91
other notes:
□applicable √not applicable
√applicable □not applicable
unit: rmb
item closing balance opening balance
vat 4,985,229.25 56,402,798.28
business tax -240,013.55 -240,013.55
semi-annual report for 2023
urban maintenance and 327,484.92 2,521,434.47
construction tax
corporate income tax 86,742,057.16 6,138,842.64
individual income tax 4,478,946.88 1,275,355.73
land appreciation tax 10,964.44 66,652.63
real estate tax 43,410,929.52 84,142,438.27
land use tax 33,928,267.93 60,454,035.23
other 487,685.09 4,236,880.71
total 174,131,551.64 214,998,424.41
other notes:
as of june 30, 2023, the details of the main taxes prepaid by the group are as follows:
unit: 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 1,615,071,971.63 1,325,596,105.43
total 1,615,071,971.63 1,325,596,105.43
other notes:
nil
interest payable
□applicable √not applicable
dividend payable
□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 457,891,193.69 490,392,164.12
margin
pending investment refunds 705,903,783.09 429,637,665.00
operating expenses payable 369,302,680.90 284,502,534.04
restricted stock incentive 80,753,291.00 120,092,075.00
plan
other 1,221,022.95 971,667.27
total 1,615,071,971.63 1,325,596,105.43
semi-annual report for 2023
(2). important other payables with account age over 1 year
□applicable √not applicable
other notes:
√applicable □not applicable
since other payables mainly come from the deposit deposits of market shops and the
bidding deposits of engineering projects, with small individual amounts, on june 30, 2023, there
were no important other payables with an aging of more than 1 year.
□applicable √not applicable
√applicable □not applicable
unit: rmb
item closing balance opening balance
long-term borrowings within 45,630,869.44 345,934.69
one year
bonds payable due within 1 64,785,452.04 61,508,191.79
year
lease liabilities due within 1 24,530,889.40 24,998,166.53
year
total 134,947,210.88 86,852,293.01
other notes:
nil
√applicable □not applicable
unit: rmb
item closing balance opening balance
short-term financing notes payable 3,010,718,482.87 3,012,256,419.90
payment business reserve 420,922,096.01 397,125,623.54
to-be-reported output tax 66,658,093.44 59,992,173.80
dividend payable to to-be-recognized 2,653,400.82 2,449,697.11
accounts
dividend announced but not collected 2,083,112.65 2,083,112.65
before listing
total 3,503,035,185.79 3,473,907,027.00
semi-annual report for 2023
changes in short-term bonds payable:
√applicable □not applicable
unit: rmb
interest
bond face issuing bond issuing opening amount current period premium/discount current period closing amount
accrued based
name value date term amount balance issuing amortization repayment balance
on face value
super-short-term
september 240
commercial 100 1,000,000,000.00 1,005,457,214.61 - 7,901,917.80 383,333.34 1,013,742,465.75 -
paper
super-short-term
oct 26, 240
commercial 100 1,000,000,000.00 1,003,733,756.28 - 10,901,369.86 488,161.53 1,015,123,287.67 -
paper
super-short-term
november 120
commercial 100 1,000,000,000.00 1,003,065,449.01 - 6,575,342.47 222,222.22 1,009,863,013.70 -
paper
super-short-term
march 20, 179
commercial 100 1,000,000,000.00 - 1,000,000,000.00 8,042,465.75 286,111.11 - 1,007,831,354.64
paper
super-short-term
may 17, 177
commercial 100 1,000,000,000.00 - 1,000,000,000.00 3,168,493.15 123,287.67 - 1,002,806,849.31
paper
super-short-term
june 20, 269
commercial 100 1,000,000,000.00 - 1,000,000,000.00 807,671.23 19,829.91 - 1,000,080,278.92
paper
total / / / 6,000,000,000.00 3,012,256,419.90 3,000,000,000.00 37,397,260.26 1,522,945.78 3,038,728,767.12 3,010,718,482.87
other notes:
√applicable □not applicable
as of june 30, 2023, the annual interest rate of the above-mentioned short-term financing bonds was 2.57% -2.85% (december 31, 2022: 1.75%
-3.00%).
semi-annual report for 2023
(1). classification of long-term borrowings
√applicable □not applicable
unit: rmb
item closing balance opening balance
credit loans 648,185,725.67 404,500,000.00
total 648,185,725.67 404,500,000.00
notes on the classification of long-term borrowings:
nil
other notes, including the interest rate range:
√applicable □not applicable
as of june 30, 2023, the annual interest rate of the above-mentioned loan was 2.70% -3.20%
(december 31, 2022: 2.70% -2.90%).
(1). bonds payable
√applicable □not applicable
unit: rmb
item closing balance opening balance
bonds payable 3,497,930,395.94 3,497,416,819.75
total 3,497,930,395.94 3,497,416,819.75
semi-annual report for 2023
(2). change in bonds payable (excluding other financial instruments classified as financial liabilities, such as preferred shares and
perpetual bonds)
√applicable □not applicable
unit: rmb
interest transferred in
current current
bond face issuing bond issuing opening amount accrued premium/discount this year and closing amount
period period
name value date term amount balance based on face amortization due within one balance
issuing repayment
value year
mtn 100 feb 24, 3y 1,000,000,000.00 999,177,980.44 - 16,314,794.52 181,032.64 - 16,314,794.52 999,359,013.08
mtn 100 mar 29, 3y 500,000,000.00 499,572,104.09 - 8,851,643.83 90,265.96 - 8,851,643.83 499,662,370.05
mtn 100 jul 20, 3y 500,000,000.00 499,516,212.89 - 7,438,356.16 90,776.60 - 7,438,356.16 499,606,989.49
corporate 100 sep 1, 3y 800,000,000.00 799,551,093.23 - 9,997,150.68 80,840.92 - 9,997,150.68 799,631,934.15
bonds 2022
corporate 100 sep 22, 3y 700,000,000.00 699,599,429.10 - 11,425,315.06 70,660.07 - 11,425,315.06 699,670,089.17
bonds 2022
total / / / 3,500,000,000.00 3,497,416,819.75 - 54,027,260.25 513,576.19 - 54,027,260.25 3,497,930,395.94
(3). conditions and time for the conversion of convertible corporate bonds
□applicable √not applicable
semi-annual report for 2023
(4). notes on other financial instruments classified as financial liabilities
basic information of other financial instruments such as preferred shares and perpetual bonds
outstanding at the end of the reporting period
□applicable √not applicable
changes in other financial instruments such as preferred shares and perpetual bonds
outstanding at the end of the reporting period
□applicable √not applicable
basis for other financial instruments being classified as financial liabilities
□applicable √not applicable
other notes:
□applicable √not applicable
√applicable □not applicable
unit: rmb
item closing balance opening balance
undiscounted amount of finance 320,972,277.53 320,577,235.56
lease payables
unrecognized financing charges -94,947,012.02 -88,955,333.06
lease liabilities due within 1 year -24,530,889.40 -24,998,166.53
total 201,494,376.11 206,623,735.97
other notes:
note: the group uses the incremental borrowing rate of 2.78%-8.01% as the discount rate
to calculate book value to determine the lease liability and measure right-of-use assets.
presentation of items
□applicable √not applicable
long-term accounts payable
□applicable √not applicable
special accounts payable
□applicable √not applicable
□applicable √not applicable
√applicable □not applicable
unit: rmb
semi-annual report for 2023
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 april 30, 2018, the group lost control over the subsidiary due to its
disposal of some equity in the subsidiary. up to now, the first instance judgment has been made
and has not yet taken effect.
overview of deferred income
√applicable □not applicable
unit: rmb
decrease
increase in
opening in the closing cause of
item the current
balance current balance formation
period
period
asset-related
government 103,582,129.94 58,272,000.00 710,736.84 161,143,393.10
grants
total 103,582,129.94 58,272,000.00 710,736.84 161,143,393.10 /
items involving government grants:
√applicable □not applicable
unit: rmb
amount
increase in
recognized in asset-related
opening grant amount
liability item other income closing balance or
balance in the current
in the current income-related
period
period
subsidy for
service industry 4,976,779.31 - 133,333.32 4,843,445.99 asset-related
cluster project
interest subsidy
for the
international
exhibition center
construction
fund
subsidy for
yiwu
comprehensive 79,879,800.00 - - 79,879,800.00 asset-related
bonded zone
project
compensation
for cross-border
e-commerce - 58,272,000.00 - 58,272,000.00 asset-related
logistics park
project
other notes:
semi-annual report for 2023
□applicable √not applicable
□applicable √not applicable
semi-annual report for 2023
√applicable □not applicable
unit: rmb
increase or decrease in the current
period ( , -)
opening balance issuing closing balance
new other sub-total
shares
total 5,486,074,176.00 - - - 5,486,074,176.00
number of
shares
other notes:
nil
(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 1,549,909,197.11 28,586,712.00 - 1,578,495,909.11
premium)
stock incentive 63,106,263.66 8,933,604.45 28,586,712.00 43,453,156.11
other capital reserve 38,130,573.19 - - 38,130,573.19
total 1,651,146,033.96 37,520,316.45 28,586,712.00 1,660,079,638.41
other notes including those on the changes in the current period and the reasons therefor:
the increase in capital reserve capital premium (capital stock premium) during this reporting
period is due to the first batch of restricted stocks meeting the exercise conditions during the first
term of sale. the capital reserve equity incentive corresponding to this portion of restricted
stocks of the company has been transferred to this project at rmb 28,586,712.00.
the increase in capital reserve - equity incentive during this reporting period is due to the
company's confirmation of a share-based payment fee of rmb 8,933,604.45 during the waiting
period, while the decrease is due to the first batch of restricted stocks that have met the exercise
conditions during the first selling period and have been transferred to capital reserve - capital
premium (capital stock premium).
semi-annual report for 2023
√applicable □not applicable
unit: rmb
increase in decrease in
closing
item opening balance the current the current
balance
period period
restricted stock 119,483,675.00 - 38,730,384.0080,753,291.00
incentive plan
total 119,483,675.00 - 38,730,384.00 80,753,291.00
other notes including those on the changes in the current period and the reasons therefor:
the restricted stock incentive plan unlocked the first batch of restricted stocks in this period,
reducing the number of treasury shares by 13,173,600, with a grant price of rmb 2.94 per share,
and reducing the treasury shares by rmb 38,730,384.00 in this period.
√applicable □not applicable
unit: rmb
amount in the current period
amount before amount after
opening closing
item tax incurred in less: income tax attributable
balance balance
the current tax to parent
period company
i. other
comprehensive
income that cannot be -40,818,470.36 80,273,496.09 20,068,374.02 60,205,122.07 19,386,651.71
reclassified into profits
and losses
change in fair value
of other equity
-40,818,470.36 80,273,496.09 20,068,374.02 60,205,122.07 19,386,651.71
instruments
investment
ii. other
comprehensive
income to be 16,809,996.76 7,711,100.96 - 7,711,100.96 24,521,097.72
reclassified into profits
and losses
other comprehensive
income that can be
transferred into profits 4,060,531.46 - - - 4,060,531.46
and losses under
equity method
difference arising from
the translation of
foreign currency
financial statements
total other
comprehensive -24,008,473.60 87,984,597.05 20,068,374.02 67,916,223.03 43,907,749.43
income
other notes, including those on the adjustment of the initially recognized amount of hedged
items converted from the effective part of gains or losses from cash flow hedging:
nil
semi-annual report for 2023
□applicable √not applicable
√applicable □not applicable
unit: rmb
item opening balance increase in the decrease in the closing balance
current period current period
statutory 1,564,198,440.14 - - 1,564,198,440.14
surplus reserve
discretionary 40,195,855.68 - - 40,195,855.68
surplus reserve
other 11,688,840.91 - - 11,688,840.91
total 1,616,083,136.73 - - 1,616,083,136.73
notes on surplus reserves, including those on the changes in the current period and the reasons
therefor:
nil
√applicable □not applicable
unit: rmb
item current period previous year
undistributed profits at the end of the 6,651,440,591.35 6,059,496,846.85
previous reporting period before
adjustment
opening undistributed profits after 6,651,440,591.35 6,059,496,846.85
adjustment
plus: net profits attributable to 1,998,333,646.74 1,104,719,091.71
shareholders of the parent company in the
current period
less: withdrawal of statutory surplus - 110,873,341.23
reserve
general risk reserve - 1,038,991.13
common share dividend payable 356,594,821.44 400,863,014.85
closing undistributed profits 8,293,179,416.65 6,651,440,591.35
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.
(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 4,981,391,903.99 3,497,747,787.03 4,047,360,914.45 3,106,283,447.96
business
semi-annual report for 2023
other 179,599,139.26 84,762,663.32 159,666,702.01 53,014,698.81
businesses
total 5,160,991,043.25 3,582,510,450.35 4,207,027,616.46 3,159,298,146.77
(2).revenue generated from contracts
√applicable □not applicable
unit: rmb
classified by type of contract total
types of goods
sales of goods 2,837,601,444.17
the use of shops in yiwu market and its 1,696,394,598.57
supporting services
hotel accommodation and catering services 130,306,259.25
revenue from use fees 17,419,324.72
other services 294,652,655.65
classified by business area
chines mainland 4,976,374,282.36
classified by contract period
revenue confirmed at certain time point
sales of goods 2,837,601,444.17
hotel catering services 68,408,571.83
other services 182,787,606.18
revenue confirmed during certain time period
the use of shops in yiwu market and its 1,696,394,598.57
supporting services
hotel accommodation service 61,897,687.42
revenue from use fees 17,419,324.72
other services 111,865,049.47
total 4,976,374,282.36
description of the income from contracts:
the income recognized in the current year and included in the opening book value of
contractual liabilities is as follows:
unit: rmb
type of contract current period
sales of goods 594,429,754.91
the use of shops in yiwu market and its supporting
services
hotel accommodation service 7,275,513.89
other services 104,740,586.68
total 2,306,061,509.91
(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 yiwu market and its supporting services
the contractual performance obligation is fulfilled when providing the use of shops in yiwu
market and the supporting services for business. for the use of shops in yiwu market and the
supporting services for business, the progress of contract performance is determined based on
the number of using days of the shops. customers usually need to pay in advance before the use
of shops in yiwu market and the supporting services for business are provided.
hotel accommodation business
semi-annual report for 2023
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 june 30, 2023, the transaction price allocated to the remaining contract performance
obligations was rmb 3,159,674,905.35. 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
item amount in the current period amount in the previous period
real estate tax 59,770,011.60 57,303,381.47
stamp duty 2,760,376.78 2,342,930.19
urban maintenance and 2,592,625.45 847,074.98
construction tax
education surcharge 1,111,245.71 376,577.58
local education surcharge 740,831.51 251,051.78
land appreciation tax 303,673.11 1,040,058.76
cultural undertaking 285,127.01 200,629.33
development fee
vehicle and vessel use tax 1,380.00 2,040.00
consumption tax 56.64 121.51
business tax - 9,307.56
land use tax -20,871,643.50 939,264.19
total 46,693,684.31 63,312,437.35
other notes:
nil
√applicable □not applicable
unit: rmb
amount in the current amount in the previous
item
period period
marketing expenses 44,804,065.01 58,838,620.46
security and insurance expenses 16,637,122.08 13,603,561.83
advertising expenses 8,817,741.95 15,210,375.07
semi-annual report for 2023
water, electricity and fuel expenses 3,001,783.95 4,108,797.27
depreciation and amortization 68,097.07 59,697.22
other 4,434,858.43 1,461,011.88
total 77,763,668.49 93,282,063.73
other notes:
nil
√applicable □not applicable
unit: rmb
item amount in the current amount in the previous
period period
employee and uniform expenses 167,894,577.09 150,954,373.48
depreciation and amortization 73,931,835.81 41,529,941.99
intermediary expenses 5,181,120.84 7,648,247.31
office expenses 5,162,481.69 4,578,803.69
travel expenses 3,181,309.38 727,343.72
promotion and market traders 174,131.61 95,739.93
introduction expenses
start-up fee 61,043.87 11,488,120.65
other 12,312,567.93 9,548,797.50
total 267,899,068.22 226,571,368.27
other notes:
nil
√applicable □not applicable
unit: rmb
item amount in the current amount in the previous
period period
labor cost 7,187,298.15 3,136,584.80
technology r&d expenses 3,114,081.41 2,470,954.57
depreciation and amortization 93,741.44 62,233.31
other 129,128.20 38,274.90
total 10,524,249.20 5,708,047.58
other notes:
nil
semi-annual report for 2023
√applicable □not applicable
unit: rmb
item amount in the current amount in the previous
period period
interest expenses 125,445,414.65 154,500,444.77
amortization of discount on short-term 1,974,371.03 1,969,098.85
commercial papers
interest income -38,139,798.22 -89,271,567.84
capitalized interest -35,577,046.98 -
foreign exchange gains or losses -6,265,717.17 -11,023,802.13
amortization of unrecognized financing 5,893,167.81 6,001,626.16
expenses
other 273,509.77 716,135.64
total 53,603,900.89 62,891,935.45
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 amount in the
current period previous period
subsidy for ocean (bay area) economic 7,800,000.00 -
development fund
employment stabilization subsidy 40,818.03 2,233,836.28
additional deduction of input tax 4,318,534.11 2,103,468.66
grant for the construction and operation of the credit 500,000.00 2,000,000.00
data center
yiwu municipal bureau of development and reform - 1,800,000.00
zone
yiwu municipal bureau of commerce 2021 export - 1,527,680.00
credit insurance subsidy
yiwu municipal bureau of commerce business - 1,000,000.00
promotion fund subsidy
market development committee 2021 local - 940,693.24
financial policy incentives for encouraging
e-commerce
interest subsidy for the international exhibition center 577,403.52 577,403.52
construction fund
additional deduction of r&d input award from yiwu - 500,800.00
municipal science and technology bureau
pilot subsidy for strong counties in service industry - 500,000.00
science and technology bureau innovation entity - 500,000.00
creation award
yiwu municipal bureau of commerce promotion and - 480,400.00
opening rewards
special funds for supporting scientific and 400,000.00 -
technological development
special fund award for the development of the 391,800.00 -
exhibition industry in 2023
subsidies for helping tourism enterprises fight - 390,000.00
semi-annual report for 2023
against the epidemic and promoting development
yiwu municipal bureau of commerce - 304,461.00
refund of the service charges of individual income 280,128.18 269,632.38
tax
vat reduction for the recruitment of retired soldiers - 223,500.00
finding jobs on their own
other 322,852.92 1,363,373.61
total 14,631,536.76 16,715,248.69
other notes:
nil
semi-annual report for 2023
√applicable □not applicable
unit: rmb
amount in the current amount in the
item
period previous period
income from long-term equity investment 1,017,671,762.53 748,873,944.26
calculated with the equity method
investment income from disposal of long-term 11,475,509.19 -
equity investment
interest income from debt investment during 1,252,476.06 -
holding period
investment income from disposal of 1,763,697.53 1,822,875.64
held-for-trading financial assets
investment income from disposal of wealth 31,995.58 26,619.73
management products
income acquired from other non-current 2,110,591.00 -
financial assets during the holding period
investment income from disposal of other -805,917.38 -
non-current financial assets
total 1,033,500,114.51 750,723,439.63
other notes:
nil
□applicable √not applicable
√applicable □not applicable
unit: rmb
sources of income from changes amount in the previous
amount in the current period
in fair value period
held-for-trading financial assets 2,123,980.00 -1,667,262.00
other non-current financial assets -9,305,911.08 -546,331.53
total -7,181,931.08 -2,213,593.53
other notes:
nil
√applicable □not applicable
unit: rmb
amount in the current amount in the previous
item
period period
bad debt loss of accounts receivable 529,746.89 -219,174.64
loss for bad debts of other 19,170.96 247,110.08
receivables
total 548,917.85 27,935.44
other notes:
nil
semi-annual report for 2023
□applicable √not applicable
√applicable □not applicable
unit: rmb
item amount in the current period amount in the previous period
income from disposal of 165,883,894.78 1,389.88
property, plant and equipment
total 165,883,894.78 1,389.88
other notes:
□applicable √not applicable
√applicable □not applicable
unit: rmb
amount recognized in
profits and losses of
amount in the current amount in the
item nonrecurring profits
period previous period
and losses for the
current period
government grants - 200,000.00 -
incomes from 2,515,430.08 1,329,393.77 2,515,430.08
liquidated damages
other 596,279.55 2,488,105.92 596,279.55
total 3,111,709.63 4,017,499.69 3,111,709.63
government grant included in current profits and losses
√applicable □not applicable
unit: rmb
amount in the previous asset-related or
grant items
current period amount income-related
financial subsidies for the - 200,000.00 income-related
development of the digital
entertainment industry
other notes:
□applicable √not applicable
√applicable □not applicable
unit: rmb
amount recognized in profits
amount in the
amount in the and losses of nonrecurring
item previous
current period profits and losses for the
period
current period
total loss for disposal of 108,245.71 56,100.78 108,245.71
non-current assets
semi-annual report for 2023
including: loss for disposal of 108,245.71 56,100.78 108,245.71
property, plant and
equipment
external donation - 44,250.00 -
other 89,722.64 329,652.83 89,722.64
total 197,968.35 430,003.61 197,968.35
other notes:
nil
semi-annual report for 2023
(1) overview of income tax expenses
√applicable □not applicable
unit: rmb
item amount in the current period amount in the previous period
current income tax expenses 319,963,973.46 128,391,456.05
deferred income tax expenses 11,673,848.56 13,888,013.12
total 331,637,822.02 142,279,469.17
(2) adjustment process of accounting profits and income tax expenses
√applicable □not applicable
unit: rmb
item amount in the current
period
profits before tax 2,332,292,295.89
income tax expenses calculated at the statutory/applicable tax rate 583,073,073.97
impact of different tax rates applied by subsidiaries 1,991,502.97
effect of adjusting income tax of previous period -20,073,416.15
effect of non-taxable income -2,859,790.04
effect of non-deductible costs, expenses and losses 381,320.92
effect of using deductible losses of unrecognized deferred income tax -5,845,060.38
assets in previous period
effect of deductible temporary differences or deductible losses of 29,388,131.36
unrecognized deferred income tax assets in the current period
profits or losses attributable to joint ventures and associates -254,417,940.63
income tax expenses 331,637,822.02
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 period amount in the previous
period
deposit and margin received 82,617,679.95 84,113,126.29
government grants received 64,401,761.02 45,748,748.69
bank deposit interest income 89,271,567.84
received 38,139,798.22
bank reserve received 1,930,508.43 1,532,062.05
other 861,796.06 2,226,957.24
total 187,951,543.68 222,892,462.11
notes on other cash receipts relating to operating activities:
nil
semi-annual report for 2023
(2). other cash payments relating to operating activities
√applicable □not applicable
unit: rmb
item amount in the current period amount in the previous
period
fees paid 137,806,934.75 159,441,304.15
margins paid 115,118,650.38 184,207,298.86
other 4,355,093.88 3,690,541.84
total 257,280,679.01 347,339,144.85
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
period previous period
financial assistance received from joint ventures 901,774,483.00
and affiliated subsidiaries 501,750,200.00
total 501,750,200.00 901,774,483.00
notes on other cash receipts relating to investing activities:
nil
(4). other cash payments relating to investing activities
√applicable □not applicable
unit: rmb
item amount in the current period amount in the previous
period
refund of investment to be -
confirmed paid 11,553,412.19
financial assistance paid to the 68,507,285.00
joint venture company -
total 11,553,412.19 68,507,285.00
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 period amount in the previous
period
lease payments paid 14,105,217.90 11,970,676.79
total 14,105,217.90 11,970,676.79
other cash paid related to financing activities:
nil
semi-annual report for 2023
(1) supplements to cash flow statement
√applicable □not applicable
unit: rmb
amount in the amount in the
supplements
current period previous period
net profits 2,000,654,473.87 1,222,526,064.33
loss of impairment of credit -548,917.85 -27,935.44
depreciation of fixed assets, depletion of oil and
gas assets and depreciation of bearer biological 188,468,645.61 170,090,217.42
assets
amortization of right-of-use assets 15,937,530.77 14,089,021.32
amortization of intangible assets 109,533,646.98 75,870,218.25
depreciation and amortization of investment real
estate
amortization of long-term prepaid expenses 39,324,216.01 22,066,225.88
loss from disposal of fixed assets, intangible
assets and other long-term assets (gains -165,883,894.78 -1,389.88
indicated by “-”)
loss from fixed assets retirement (gains indicated
by “-”)
loss from changes in fair value (gains indicated
by “-”)
financial expenses (gains indicated by “-”) 97,735,906.51 154,500,444.77
investment loss (gains indicated by “-”) -1,050,919,439.23 -776,830,272.96
decrease in deferred income tax assets (increase
-1,100,746.99 10,068,696.50
indicated by “－”)
increase in deferred income tax liabilities
(decrease indicated by “－”)
decrease in inventory (increase indicated by “－”) 106,993,100.52 -357,352,526.67
decrease in operating receivables (increase
-381,251,455.03 361,791,176.72
indicated by “－”)
increase in operating payables (decrease
-925,330,874.43 -1,608,255,871.54
indicated by “－”)
net cash flow from operating activities 143,247,195.78 -666,587,333.62
closing balance of cash 2,164,979,668.87 3,474,333,987.64
less: opening balance of cash 1,981,200,941.64 4,006,468,325.47
net increase in cash and cash equivalents 183,778,727.23 -532,134,337.83
(2) net cash paid for acquisition of subsidiaries in the current period
□applicable √not applicable
semi-annual report for 2023
(3) net cash received from disposal of subsidiaries in the current period
√applicable □not applicable
unit: rmb
amount
cash or cash equivalents received for disposal of subsidiaries 23,924,400.00
in the current period
bank deposits 23,924,400.00
less: cash and cash equivalents held by the company on the 11,441,569.06
date of loss of control
bank deposits 11,441,569.06
add: cash or cash equivalents received in the current period -
from the disposal of the subsidiary in the previous period
net cash received from disposal of subsidiaries 12,482,830.94
other notes:
on december 19, 2022, the wholly-owned subsidiary of the company, yiwu china
commodities city logistics and warehousing co., ltd. (hereinafter referred to as "logistics and
warehousing company"), publicly listed and transferred its 60% equity of yiwu huanqiu yida
logistics co., ltd. on the yiwu property rights exchange.
on february 2, 2023, logistics and warehousing company received a public listing transfer
transaction notice from the yiwu property rights exchange, and on february 3, received an
equity transfer payment of rmb 23.9244 million after deducting the transaction service fee of
rmb 195,600.
on february 21, 2023, logistics and warehousing company signed an equity transfer
agreement with zhejiang zhijie yuangang international supply chain technology co., ltd.,
agreeing that logistics and warehousing company would transfer its held registered capital of
rmb 30 million (60% of the total registered capital) of yiwu huanqiu yida logistics co., ltd. to
zhejiang zhijie yuangang international supply chain technology co., ltd, and completed the
amendment of the articles of association and industrial and commercial registration of yiwu
huanqiu yida logistics co., ltd. on the same day.
(4) composition of cash and cash equivalents
√applicable □not applicable
unit: rmb
item closing balance opening balance
i. cash 2,164,979,668.87 1,981,200,941.64
in which: cash on hand 218,145.54 220,471.11
bank deposit that can be used for payment at
any time
other monetary capital that can be used for
payment at any time
iii. closing balance of cash and cash
equivalents
including:cash and cash equivalents with
restricted use by the parent company or its 11,461,574.15 10,098,029.66
subsidiaries
other notes:
□applicable √not applicable
names of “others” items whose closing balances in the previous year are adjusted and the
amounts of adjustments:
semi-annual report for 2023
□applicable √not applicable
semi-annual report for 2023
√applicable □not applicable
unit: rmb
item closing book value reasons for restriction
cash and cash equivalents 11,461,574.15 [note 2]
inventory 8,925,585.72 [note 3]
long-term equity investment 102,918,559.00 [note 4]
other non-current financial 621,447,424.37 [note 4]
assets
other current assets 420,922,188.51 [note 5]
total 1,165,675,331.75 /
other notes:
note 2. as of june 30, 2023, bank deposits with a book value of rmb 61.05 (december 31,
for obtaining commercial housing mortgage loan. as of june 30, 2023, bank deposits with a book
value of rmb 371288.89 (december 31, 2022: rmb 0.00) were used as funds for engineering
supervision accounts, with restricted ownership or use rights. as of june 30, 2023, bank deposits
with a book value of rmb 7,220,000.00 (december 31, 2022: rmb 7,220,000.00) were used as
performance bonds for civil air defense projects under construction with restricted ownership or
use rights. as of june 30, 2023, bank deposits with a book value of rmb 3,870,224.21
(december 31, 2022: rmb 2,877,968.69) were used as fast payment business risk deposits with
restricted ownership or use rights.
note 3. as of june 30, 2023, the inventory with a book value of rmb 8,925,585.72
(december 31, 2022: rmb 0.00) was judicially seized by the court due to litigation.
note 4: as of june 30, 2023, long-term equity investments with a book value of rmb
rmb 621,447,424.37 (december 31, 2022: rmb 621,447,424.37) were frozen by shanghai
municipal public security bureau. see note xiv.1 important commitments for details.
note 5: as of june 30, 2023, the payment business reserve fund with a book value of rmb
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.
semi-annual report for 2023
(1). foreign currency monetary items
√applicable □not applicable
closing balance
closing balance in
item exchange rate after conversation
foreign currency
in rmb
cash and cash equivalents - -
in which: usd 6,326,010.80 7.2258 45,710,488.83
euro 144,750.99 7.9549 1,151,479.62
rwandan franc 2,123,896.00 0.0062 13,229.75
dirham 37,176.25 1.9741 73,389.64
koruna 6,313,352.46 0.3328 2,100,949.23
accounts receivable - -
in which: usd 1,588,862.49 7.2258 11,480,802.58
euro 5,895.28 7.9549 46,896.36
koruna 14,659,511.75 0.3328 4,878,373.29
other receivables - -
in which: usd 229,798.71 7.2258 1,660,479.51
euro 22,338.09 7.9549 177,697.29
koruna 17,056,711.56 0.3328 5,676,110.34
accounts payable
in which: usd 6,545,207.15 7.2258 47,294,357.81
koruna 3,428,276.74 0.3328 1,140,930.50
other payables
in which: usd 968,501.24 7.2258 6,998,196.26
euro 62,893.72 7.9549 500,313.25
rwandan franc 1,403,178.00 0.0062 8,740.40
koruna 130,407,209.29 0.3328 43,396,741.86
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
semi-annual report for 2023
(1). overview of government grants
√applicable □not applicable
unit: rmb
amount recognized in
type amount presentation profits and losses for
the current period
subsidy for ocean (bay area) 7,800,000.00 other 7,800,000.00
economic development fund income
additional deduction of input tax 4,318,534.11 other 4,318,534.11
income
interest subsidy for the international 577,403.52 other 577,403.52
exhibition center construction fund income
grant for the construction and 500,000.00 other 500,000.00
operation of the credit data center income
special funds for supporting scientific 400,000.00 other 400,000.00
and technological development income
special fund award for the 391,800.00 other 391,800.00
development of the exhibition industry income
in 2023
other 363,670.95 other 363,670.95
income
total 14,351,408.58 14,351,408.58
(2). refund of government grants
□applicable √not applicable
other statements
nil
□applicable √not applicable
viii. changes in consolidation scope
□applicable √not applicable
□applicable √not applicable
□applicable √not applicable
semi-annual report for 2023
has the group lost control upon a single disposal of investment in a subsidiary?
√applicable□not applicable
unit: rmb
difference amount of
between the determination other
consideration of of the fair comprehensive
gains or
the disposal and remaining book value fair value of value of income relating
basis for losses from
percentage the share in the shareholding of remaining remaining remaining to the original
consideration form of time of determining the
name of of equity subsidiary’s net ratio on the shareholding shareholding shareholding equity
of the equity equity loss of the time of remaining
subsidiary disposal assets in the date of loss on the date on the date on the date of investment in
disposal disposal control loss of shareholding
(%) consolidated of control of loss of of loss of loss of control the subsidiary
control re-calculated
financial statement (%) control control and main that is
by fair value
corresponding to assumptions recognized in
the investment therefor investment
disposed gains or losses
yiwu 24,120,000.00 60 publicly february the earliest 11,475,509.21 - - - - not -
huanqiu listed 21, 2023 date when applicable
yida for the transfer
logistics transfer of control is
co., ltd. effectuated
other notes:
√applicable □not applicable
on december 19, 2022, the wholly-owned subsidiary of the company, yiwu china commodities city logistics and warehousing co., ltd.
(hereinafter referred to as "logistics and warehousing company"), publicly listed and transferred its 60% equity of yiwu huanqiu yida logistics co., ltd.
on the yiwu property rights exchange.
on february 2, 2023, logistics and warehousing company received a public listing transfer transaction notice from the yiwu property rights
exchange, and on february 3, received an equity transfer payment of rmb 23.9244 million after deducting the transaction service fee of rmb 195,600.
on february 21, 2023, logistics and warehousing company signed an equity transfer agreement with zhejiang zhijie yuangang international
supply chain technology co., ltd., agreeing that logistics and warehousing company would transfer its held registered capital of rmb 30 million
(60% of the total registered capital) of yiwu huanqiu yida logistics co., ltd. to zhejiang zhijie yuangang international supply chain technology co.,
ltd, and completed the amendment of the articles of association and industrial and commercial registration of yiwu huanqiu yida logistics co., ltd. on
the same day. after the disposal, the company's shareholding in yiwu huanqiu yida logistics co., ltd. decreased from 60% to 0%. therefore, starting
from february 21, 2023, the group will no longer include yiwu huanqiu yida logistics co., ltd. in the scope of consolidation.
semi-annual report for 2023
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
□applicable √not applicable
semi-annual report for 2023
ix. equity in other entity
(1). composition of the enterprise group
√applicable □not applicable
shareholding
subsidiary main place place of ratio (%) acquisition
business
name of business registration method
direct indirect
yiwu china commodities
yiwu, yiwu,
city import and export co., wholesale 100 establishment
zhejiang zhejiang
ltd.
yiwu china commodities
yiwu, yiwu,
city supply chain wholesale 100 establishment
zhejiang zhejiang
management co., ltd.
yiwu comprehensive
yiwu, yiwu, business
bonded zone operation 100 establishment
zhejiang zhejiang service
and management co., ltd.
yiwu china commodities
yiwu, yiwu, business
city overseas investment 100 establishment
zhejiang zhejiang service
and development co., ltd.
yiwu china commodities
yiwu, yiwu, business
city tourism development 100 establishment
zhejiang zhejiang service
co., ltd.
yiwu china commodities
yiwu, yiwu, business
city assets operation and 100 establishment
zhejiang zhejiang service
management co., ltd.
zhejiang yindu hotel yiwu, yiwu, business
management co., ltd. zhejiang zhejiang service
yiwu china commodities
yiwu, yiwu, business
city research institute 100 establishment
zhejiang zhejiang service
co., ltd.
yiwu shangbo shuzhi
yiwu, yiwu, business
enterprise management 100 establishment
zhejiang zhejiang service
co., ltd.
software and
information
yiwu china commodities yiwu, yiwu,
technology 100 establishment
city big data co., ltd. zhejiang zhejiang
service
industry
yiwu commodities city
yiwu, yiwu,
gonglian property co., real estate 100 establishment
zhejiang zhejiang
ltd.
yiwu shangbo yuncang
yiwu, yiwu,
enterprise management real estate 100 establishment
zhejiang zhejiang
co., ltd.
yiwu china commodities
yiwu, yiwu,
city information it 100 establishment
zhejiang zhejiang
technology co., ltd.
yiwu china commodities
yiwu, yiwu, financial
city financial holdings 100 establishment
zhejiang zhejiang industry
co., ltd.
multimodal
yiwu china commodities
yiwu, yiwu, transport and
city logistics and 100 establishment
zhejiang zhejiang transportation
warehousing co., ltd.
agency
yiwu china commodities yiwu, yiwu, education 100 establishment
semi-annual report for 2023
city commerce and trade zhejiang zhejiang
service training center co.,
ltd.
yiwu china commodities yiwu, yiwu, business
city exhibition co., ltd. zhejiang zhejiang service
zhejiang huajie
yiwu, yiwu, commercial
investment and 96.4 incorporation acquisition
zhejiang zhejiang services
development co., ltd.
european huajie prague, prague,
investment development czech czech service 96.4 incorporation acquisition
co., ltd. republic republic
zhejiang china
commodities city group yiwu, yiwu,
service 60 40 establishment
commercial factoring co., zhejiang zhejiang
ltd.
zhejiang yiwugou yiwu, yiwu,
it 51 establishment
e-commerce co., ltd. zhejiang zhejiang
yiwu xinlian technology yiwu, yiwu,
service 51 establishment
service co., ltd. zhejiang zhejiang
yiwu xingchen enterprise yiwu, yiwu,
it 100 establishment
management co., ltd zhejiang zhejiang
haicheng yiwu china
commodities city haicheng, haicheng,
real estate 95 establishment
investment development liaoning liaoning
co., ltd.
yiwu china commodities yiwu, yiwu,
advertising 100 establishment
city advertising co., ld. zhejiang zhejiang
yiwu international trade
yiwu, yiwu,
comprehensive service wholesale 60 establishment
zhejiang zhejiang
co., ltd.
yiwu china commodities
yiwu, yiwu,
city credit investigation service 85 establishment
zhejiang zhejiang
co., ltd.
yiwu aiximao supply
yiwu, yiwu,
chain management co., service 100 establishment
zhejiang zhejiang
ltd.
yiwu china commodities
city internet financial yiwu, yiwu, financial
information service co., zhejiang zhejiang industry
ltd.
yiwu china commodities
city rmb and foreign yiwu, yiwu, financial
currency exchange co., zhejiang zhejiang industry
ltd.
hangzhou shangbo hangzhou, hangzhou,
real estate 100 establishment
nanxing property co., ltd. zhejiang zhejiang
ningxia yiwu china
commodities city supply shizuishan, shizuishan,
service 100 establishment
chain management co., ningxia ningxia
ltd.
yiwu china commodities
hong hong
city (hong kong)
kong, kong, wholesale 100 establishment
international trade co.,
china china
ltd.
hong kong better silk hong hong financial
road co., ltd. kong, kong, services
semi-annual report for 2023
china china industry
yiwu china commodities frankfurt, frankfurt,
service 100 establishment
city (germany) co., ltd. germany germany
financial
better silk road fze dubai, uae dubai, uae services 100 establishment
industry
better silk road kigali, kigali,
service 100 establishment
rwanda ltd rwanda rwanda
huafrica (kenya)
nairobi, nairobi,
investment development service 100 establishment
kenya kenya
co., limited
yiwu zheqing trading co., yiwu, yiwu,
wholesale 100 establishment
ltd. zhejiang zhejiang
yiwu china commodities madrid, madrid,
service 100 establishment
city (spain) co., ltd. spain spain
zhejiang xunchi digital hangzhou, hangzhou,
it 100 acquisition
technology co., ltd. zhejiang zhejiang
kuaijietong payment hangzhou, hangzhou,
it 100 acquisition
service co., ltd. zhejiang zhejiang
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
semi-annual report for 2023
(2). important non-wholly-owned subsidiaries
√applicable □not applicable
unit: rmb
dividends declared to be
profits or losses attributable to
shareholding ratio of distributed to minority closing balance of
name of subsidiary minority shareholders in the
minority shareholders (%) shareholders for the current minority interest
current period
period
zhejiang yiwugou e-commerce 49% 5,172,636.33 - -
co., ltd.
haicheng company 5% -2,781,021.76 - -
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
current non-current total current non-current total current non-current total current non-current total
subsidiary
assets assets assets liabilities liabilities liabilities assets assets assets liabilities liabilities liabilities
zhejiang
yiwugou
e-commerce
co., ltd.
haicheng
company
amount in the current period amount in the previous period
total total
name of subsidiary operating cash flow from operating cash flow from
net profits comprehensive net profits comprehensive
revenue operating activities revenue operating activities
income income
semi-annual report for 2023
zhejiang yiwugou 3,171.00 1,055.64 1,055.64 751.05 2,459.03 668.17 668.17 446.46
e-commerce co., ltd.
haicheng company 4,257.07 -5,562.04 -5,562.04 -1,874.50 18,481.88 -3,459.65 -3,459.65 -1,159.89
other notes:
nil
semi-annual report for 2023
(4). major restrictions on the use of the enterprise group’s assets and repayment of the
enterprise group’s debts
□applicable √not applicable
(5). financial support or other support provided to structured entities included in the
consolidated financial statements:
□applicable √not applicable
other notes:
□applicable √not applicable
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
name of joint venture or place of
of business investment
associate registration
business direct indirect in the joint
venture or
associate
joint venture
yiwu, yiwu, equity
yiwu shanglv real estate 49
zhejiang zhejiang method
yiwu huishang redbud
yiwu, yiwu, equity
capital management service 20
zhejiang zhejiang method
co., ltd.
yiwu rongshang yiwu, yiwu, equity
real estate 49
property co., ltd. zhejiang zhejiang method
yiwu chuangcheng yiwu, yiwu, equity
real estate 24
property co., ltd. zhejiang zhejiang method
yiwu guoshen shangbo yiwu, yiwu, equity
real estate 49
property co., ltd. zhejiang zhejiang method
associate
yiwu huishang redbud
yiwu, yiwu, commercial equity
equity investment co., 10.42
zhejiang zhejiang services method
ltd. (note 6)
chouzhou financial hangzhou, yiwu, equity
service 26
lease zhejiang zhejiang method
yiwu huishang redbud
lease and
phase ii investment yiwu, yiwu, equity
business 10.41
partnership (limited zhejiang zhejiang method
service
partnership) [note 7]
yiwu hongyi equity
yiwu, yiwu, equity
investment fund service 49.98
zhejiang zhejiang method
partnership
semi-annual report for 2023
pujiang lvgu property pujiang, pujiang, equity
real estate 49
co., ltd. zhejiang zhejiang method
yiwu, yiwu, equity
cccp real estate 49
zhejiang zhejiang method
technology
promotion
yiwu, yiwu, and equity
zhijie yuangang 27
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 6: the company held 10.42% (2022: 10.42%) of equity of yiwu huishang redbud
equity investment co., ltd. (hereinafter referred to as "redbud equity investment"), but
regarded it as an associated company of the company. according to redbud investment’s
articles of association, it is engaged in investing and its important financial and operating
decision-making activities are to pick and manage investment projects, which have been fully
entrusted to the company’s joint venture yiwu huishang redbud capital management co., ltd.
(“redbud capital”). redbud capital picks and manages investment projects via its investment
decision-making committee. except for special investment matters, which are subject to the
resolution of redbud investment’s board of directors, other important financial and operating
decision-making activities are conducted by redbud capital on the behalf of redbud investment.
therefore, the company was able to exercise significant influence on redbud investment in
which the company held 10.42% of total equity.
note 7: the company held 10.41% (2022: 10.41% ) equity of yiwu huishang redbud
phase ii investment partnership (limited partnership) (“redbud phase ii”), but regarded it as an
associated company of the company. according to redbud phase ii’s articles of association, it
is engaged in investing and its important financial and operating decision-making activities are to
pick and manage investment projects, which have been fully entrusted to the company’s joint
venture redbud capital. redbud capital picks and manages investment projects via its
investment decision-making committee. except for special investment matters, which are
subject to the resolution of redbud phase ii’s board of directors, other important financial and
operating decision-making activities are conducted by redbud capital on the behalf of redbud
phase ii. therefore, the company could exert significant influence on redbud phase ii of which
it held 10.41% equity.
semi-annual report for 2023
(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 yiwu yiwu guoshen yiwu yiwu yiwu guoshen
shanglv rongshang chuangcheng shangbo shanglv rongshang chuangcheng shangbo
property property property property
current assets 8,095.17 13,971.63 69,532.09 488,243.58 6,039.08 13,547.12 47,538.36 1,251,563.25
in which: cash and cash 6,756.08 49.28 37.58 10,816.27 4,316.44 198.23 540.41 88,677.29
equivalents
non-current assets 127,692.22 - 5,321.03 2,967.57 129,575.34 - 2.12 2,979.93
total assets 135,787.39 13,971.63 74,853.12 491,211.15 135,614.42 13,547.12 47,540.48 1,254,543.18
current liabilities 35,803.90 0.06 61,885.30 297,753.81 39,891.24 148.98 34,353.43 1,237,514.91
non-current liabilities 11,658.11 - - 1,571.12 11,566.36 - 1,333.17 1,571.12
total liabilities 47,462.01 0.06 61,885.30 299,324.93 51,457.60 148.98 35,686.60 1,239,086.03
shareholders’ equity attributable to 88,325.38 13,971.57 12,967.82 191,886.22 84,156.82 13,398.14 11,853.88 15,457.15
parent company
share of net assets calculated based 43,279.44 6,846.07 3,112.28 94,024.25 41,236.84 6,565.09 2,844.93 7,574.00
on shareholding ratio
adjustments -1,515.97 - - -490.00 -1,539.60 - - 3,864.29
--unrealized profits of internal -1,515.97 - - -490.00 -1,539.60 - - 3,864.29
transactions
book value of equity investment in 41,763.47 6,846.07 3,112.28 93,534.25 39,697.24 6,565.09 2,844.93 7,574.01
joint ventures
operating revenue 12,250.84 - - 973,498.72 8,396.80 427,669.78 275,551.74 7,869.67
financial expenses 529.18 -0.08 0.23 -90.79 854.71 -119.92 -28.31 -823.72
net profits 4,168.51 0.08 -2,057.65 175,429.06 1,293.30 96,577.78 44,962.93 2,862.34
total comprehensive income 4,168.51 0.08 -2,057.65 175,429.06 1,293.30 96,577.78 44,962.93 2,862.34
dividends received from joint - - - - - 58,086.56 6,000.00 -
semi-annual report for 2023
ventures this year
other statements
nil
(3). main financial information of important associates
√applicable □not applicable
unit: rmb10,000
closing balance/amount in the current period opening balance/amount in the previous period
chouzhou hongyi fund cccp pujiang lvgu zhijie chouzhou hongyi fund cccp pujiang lvgu zhijie
financial yuangang financial lease yuangang
lease
current assets 86,876.29 23,132.21 1,803,818.31 126,952.96 43,916.25 77,387.24 25,476.19 1,752,170.30 121,318.40 45,894.85
non-current assets 1,837,325.27 158,585.54 53,250.57 5,374.98 3,240.40 1,605,298.30 163,831.11 43,109.75 777.45 137.68
total assets 1,924,201.56 181,717.75 1,857,068.88 132,327.94 47,156.65 1,682,685.54 189,307.30 1,795,280.05 122,095.85 46,032.53
current liabilities 1,293,820.80 25.46 911,292.70 53,837.46 4,318.43 1,132,279.05 89.88 1,029,256.12 45,646.63 2,363.50
non-current liabilities 422,157.95 - 299,965.82 3,873.03 - 362,250.51 - 147,172.22 - -
total liabilities 1,715,978.75 25.46 1,211,258.52 57,710.49 4,318.43 1,494,529.56 89.88 1,176,428.34 45,646.63 2,363.50
shareholders’ equity
attributable to parent 208,222.81 181,692.29 645,810.36 74,617.45 42,838.22 188,155.98 189,217.42 618,851.71 76,449.22 43,669.03
company
share of net assets
calculated based 54,137.93 90,809.81 316,447.08 36,562.55 11,566.32 48,920.55 94,570.87 303,237.34 37,460.12 11,790.64
shareholding ratio
adjustments - -14.07 -5,538.28 423.84 2,273.22 - -6.66 -4,689.27 423.84 2,765.70
--unrealized profits of
- -14.07 -5,538.28 423.84 2,273.22 - -6.66 -4,689.27 423.84 2,765.70
internal transactions
book value of equity
investment in joint 54,137.93 90,795.74 310,908.80 36,986.39 13,839.54 48,920.55 94,564.21 298,548.07 37,883.96 14,556.34
ventures
operating revenue 34,574.83 - 185,257.95 1.38 9,402.91 28,545.90 743.86 171,172.95 2,172.40 -
net profits 20,066.83 720.44 26,262.14 -1,831.78 -2,654.82 13,718.90 8,934.93 25,513.10 2,013.56 -
total comprehensive 20,066.83 720.44 26,262.14 -1,831.78 -2,654.82 13,718.90 8,919.21 25,513.10 2,013.56 -
semi-annual report for 2023
income
dividend on associates
received in the current - - - -- - - - 8,820.00 -
year
other statements
nil
semi-annual report for 2023
(4). summary financial information of unimportant joint ventures and associates
√applicable □not applicable
unit: rmb
closing balance/amount in the opening balance/amount in
current period the previous period
joint ventures:
total book value of 31,253,836.82 31,984,093.31
investments
total amounts of the following items calculated based on shareholding ratio
--net profits -730,256.49 333,121.82
--other comprehensive - -
income
--total comprehensive -730,256.49 333,121.82
income
associates:
total book value of 452,362,311.63 489,944,751.13
investments
total amounts of the following items calculated based on shareholding ratio
--net profits -39,298,606.17 -7,520,626.68
--other comprehensive - -
income
--total comprehensive -39,298,606.17 -7,520,626.68
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
semi-annual report for 2023
x. risks associated with financial instruments
√applicable □not applicable
the book values of financial instruments on the balance sheet date are as follows:
june 30, 2023
financial assets
requirements for financial measured at fair
assets that are measured value and whose
at fair value and whose measured at changes are
total
changes are recorded in amortized cost included in
profits and losses for the other comprehensive
period income designation
cash and cash
equivalents
- 2,176,441,243.02 - 2,176,441,243.02
held-for-trading
financial assets
accounts
- 150,768,192.08 - 150,768,192.08
receivable
other receivables - 87,930,115.50 - 87,930,115.50
other current
- 422,659,667.93 - 422,659,667.93
assets
debt investments - 48,066,000.00 - 48,066,000.00
long-term
- 288,037,945.91 - 288,037,945.91
receivables
other non-current
- 138,253,316.00 - 138,253,316.00
assets
other equity
instruments - - 579,474,299.94 579,474,299.94
investment
other non-current
financial assets
financial liabilities other financial
liabilities
short-term borrowings 1,809,722,500.02
accounts payable 475,316,014.07
other payables 1,615,071,971.63
non-current liabilities due within
one year
other current liabilities 3,503,035,185.79
long-term borrowings 648,185,725.67
bonds payable 3,497,930,395.94
lease liabilities 201,494,376.11
financial assets
requirements for financial measured at fair
assets that are measured value and whose
at fair value and whose measured at changes are
total
changes are recorded in amortized cost included in
profits and losses for the other comprehensive
period income designation
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
semi-annual report for 2023
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 86,852,293.01
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
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
semi-annual report for 2023
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
semi-annual report for 2023
the group manages the cash shortage risk with the cyclical liquidity plan tool. the tool
considers not only the maturity dates of financial instruments but also the estimated cash
flows arising from the operation of the group.
the group aims to make use of such financing instruments as bank loans, commercial
papers, mtns, corporate bonds and long-term borrowings to maintain the balance
between the continuity and flexibility of financing. as of june 30, 2023, 59.69%
(december 31, 2022: 59.75) of the group's debts would be due within less than one
year.
the following table summarizes the analysis on the due day of financial liabilities based on
non-discounted contractual cash flows:
june 30, 2023
item at call 1-3 months total
year inclusive) years inclusive) 5 years
short-term
borrowings
accounts
payable
other payables 1,157,644,420.36 - - 457,427,551.27 - 1,615,071,971.63
other current
liabilities
non-current
liabilities due
within one
year
long-term
- 4,937,646.87 14,600,568.71 384,714,522.94 397,283,135.34 801,535,873.86
borrowings
bonds payable - 11,160,000.00 65,750,000.00 3,652,150,000.00 - 3,729,060,000.00
total 2,142,613,237.16 1,119,461,822.46 3,982,345,206.93 4,494,292,074.21 397,283,135.34 12,135,995,476.10
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
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
market risks
interest rate risk
the risk of changes in market interest rates faced by the group is mainly related to
the group's long-term liabilities at floating interest rates.
the group manages interest costs by maintaining an appropriate combination of
fixed-rate debts and variable-rate debts. as of june 30, 2023, the company had
long-term borrowings of rmb 648 million among its long-term liabilities, the interest
rates of which were adjusted on an annual basis based on the benchmark loan rate
on the anniversary dates. therefore, the management believe that its risk of market
interest rate change is relatively low.
foreign exchange rate risk
semi-annual report for 2023
the group faces trading exchange rate risks. such risks are caused by sales or
purchases made by certain business units in currencies other than their
bookkeeping currency. 1.01% of the group's current sales revenue (2022: 7.94%)
was denominated in a currency other than the functional currency of the operating
unit in which the sales occurred, while 98.99% (2022: 92.06%) 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 june 30, 2023, 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 (sse) and the shenzhen stock exchange (szse),
respectively, the determination is made through discounting and adjustment using
the trading prices of similar circulating stocks of the same listed company on the
balance sheet date, combined with liquidity.
the market stock indexes of the following stock exchanges at the closing point of the
trading day that is closest to the balance sheet date, and their respective highest and
lowest closing points during the year are as follows:
end of june jan.-jun. 2023 end of 2022 year 2022
szse-a share 2,144 2,302/2,084 2,067 2,661/1,804
index
sse-a share 3,357 3,584/3,267 3,238 3,827/3,001
index
the following table indicates the sensitivity of the group’s net profits and losses and
other comprehensive income after tax to the change each 10% of the fair value of
equity instrument investment (based on the book value on the balance sheet date)
under the assumption that all other variables remain unchanged.
end of june 2023
equity
other
instrument net profits and total shareholders'
comprehensive
investment losses 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
semi-annual report for 2023
are recognized in other
comprehensive
income
shanghai - equity
instrument investment
at fair value through
profits and losses
equity
other
instrument net profits and total shareholders'
comprehensive
investment losses 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 499,200,803.85 37,440,060.29 37,440,060.29
changes in fair value
are recognized in other
comprehensive
income
shanghai - equity
instrument investment
at fair value through
profits and losses
the main objective of the group in capital management is to ensure the group’s
ability to continue operations and maintain a healthy capital ratio to support its
business development and maximize the values for shareholders.
the group manages and adjusts its capital structure based on the changes in the
economic situation and the risk characteristics of related assets. to maintain or adjust
the capital structure, the group may adjust the distribution of profits to shareholders,
return capital contribution to shareholders or issue new shares. the group is not
subject to external mandatory capital requirements. there were no changes in capital
management goals, policies, or procedures in january to june 2023, as compared
with those in 2022.
semi-annual report for 2023
xi. disclosure of fair value
√applicable □not applicable
unit: rmb
closing fair value
item level 2 fair level 3 fair
level 1 fair value total
value value
i. continuous fair value
measurement
(1) held-for-trading financial
assets
measured at fair value and whose
changes are included in the current
profits and losses
(2) investment in equity
instruments
(4) bank wealth management
- - 35,179,435.66 35,179,435.66
products
(3) other equity instruments
investment
(vi) other non-current financial
- 865,796,775.81 607,325,787.13 1,473,122,562.94
assets
total assets continuously
measured by fair value
non-continuously measured by level 1 fair value
√applicable □not applicable
the group's continuous items measured by level 1 fair value mainly include listed equity
instruments, whose fair value is determined based on the market quotation on the last trading
day in june 2023.
parameters for the items continuously and non-continuously measured by level 2
fair value
√applicable □not applicable
the group’s level-2 items continuously measured at fair value mainly include unlisted equity
investments and listed equity instruments with restricted sales conditions. the fair value of
unlisted equity investments is determined based on the information in the financial statements of
these unlisted companies as of june 30, 2023, combined with comparable information of listed
companies in the industry, using the comparable company multiplier method. in the listed equity
instruments subject to restricted sales conditions, the valuation model is used to determine the
fair value based on the market quotation, and the important observable input value is the liquidity
discount.
parameters for the items continuously and non-continuously measured by level 3
fair value
√applicable □not applicable
semi-annual report for 2023
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 june 30, 2023.
and 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
june 30, 2023
entries used in the fair value measurement
quotation in an important observable important
active market entry non-observable entry
level 1 level 2 level 3 total
bonds 3,493,989,640.68 3,493,989,640.68
payable
(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
june 30, 2023 2022 june 30, 2023 2022
financial
liabilities
bonds payable
(current part
included) 3,562,715,847.98 3,558,925,011.54 3,493,989,640.68 3,544,625,864.62
semi-annual report for 2023
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
voting
shareholding right ratio
name of parent place of registered
business ratio in the in the
company registration capital
company (%) company
(%)
yiwu china yiwu, asset 100,000 55.38 55.38
commodities city zhejiang management
holding limited
liability company
notes on the parent company of the company
semi-annual report for 2023
nil
the ultimate controller of the company is the state-owned assets supervision and
administration office of the yiwu municipal 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 co., joint
ltd. venture
yiwu guoshen shangbo property co., ltd. joint
venture
yiwu rongshang property co., ltd. joint
venture
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
zhijie yuangang associate
yiwu heimahui enterprise service co., ltd. associate
zhejiang yxe supply chain management co., ltd. associate
yiwu china commodities city trading co., ld. associate
other statements
□applicable √not applicable
√applicable □not applicable
name of other related party relationship with the company
sco parent company of controlling
semi-annual report for 2023
shareholder of the company’s
largest shareholder
controlling shareholder of the
mdg
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 controlling
zhejiang xingfuhu sports development 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
handing shangbo
largest shareholder
subsidiary of the company’s
yiwu shangbo yungu enterprise management co., ltd.
largest shareholder
subsidiary of the company’s
yiwu jinyue shangbo property co., ltd.
largest shareholder
subsidiary of the company’s
yiwu hongtu shangbo property co., ltd.
largest shareholder
yiwu tonghui shangbo property 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
semi-annual report for 2023
(1). related-party transactions of purchasing and selling goods and rendering and
accepting service
purchasing goods/accepting service
√applicable □not applicable
unit: rmb
approved whether it
contents of amount in the
amount in the transaction exceeds the
related party related-party previous
current period limit (if transaction limit
transaction period
applicable) (if applicable)
yiwu china property
commodities city service fee and
property service co., greening 98,212,858.68 not applicable not applicable 72,002,626.73
ltd. maintenance
fee
yiwu security service security
co., ltd. service fee
yiwu shangbo yungu
construction
enterprise 4,913,807.45 not applicable not applicable -
fee
management co., ltd.
zhejiang yemai data procurement
technology co., ltd. and system
development
fees
yiwu china
commodities city
creative design and design fee 384,466.02 not applicable not applicable 379,844.66
development services
co., ltd.
yourworld international
conference center procurement
company of yiwu and meeting 233,917.62 not applicable not applicable -
market development affair expenses
group co., ltd.
hangzhou microants information
co., ltd. service fee
selling goods/rendering service
√applicable □not applicable
unit: rmb
contents of amount in
amount in the
related party related-party the previous
current period
transaction period
yiwu china commodities city property product sales and
service co., ltd. system development
yourworld international conference
product sales and
center company of yiwu market 410,332.78 438,145.35
washing fees
development group co., ltd.
yiwu jinyue shangbo real estate co., advertising production
ltd costs
yiwu security service co., ltd. meal expenses 57,390.00 -
zhejiang yxe supply chain
payment for goods 36,196.94 -
management co., ltd.
semi-annual report for 2023
yiwu shangbo yungu enterprise advertising production
management co., ltd. costs
yiwu hongtu shangbo real estate co., advertising production
ltd costs
huishang micro-finance payment for goods 10,996.30 -
notes on related-party transactions of purchasing and selling goods and rendering and
accepting service
□applicable √not applicable
semi-annual report for 2023
(2). entrustment/contracting from and to related parties
entrustment/contracting to the company:
√applicable □not applicable
unit: rmb
entrustment
starting pricing of
type of ending date of income/contracting
name of name of date of entrustment
entrusted/contracted entrustment income recognized
consignor/employer consignee/contractor entrustment income/contracting
assets /contracting in the current
/contracting income
period
entrustment of other
mdg the company feb 1, 2020 jan 31, 2025 negotiated price 1,973,291.12
assets
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
entrustment/contracting from the company:
□applicable √not applicable
notes on related-party management/contracting
□applicable √not applicable
(3). related-party lease
the company as the lessor:
√applicable □not applicable
unit: rmb
rental income
confirmed in
type of leased recognized in
name of lessee this period
asset the previous
rental income
period
yiwu shanglv warehouse and 917,431.19 -
parking lot
cccp office space 494,462.28 468,572.46
yiwu market development service center parking lot 320,811.73 -
co., ltd.
yiwu shangbo yungu enterprise office space 292,115.22 -
management co., ltd.
yiwu meipinshu supply chain office space 174,028.87 -
management co., ltd.
yiwu huishang redbud capital office space 136,139.73 123,409.56
management co., ltd.
yiwu digital port technology co., ltd. office space 118,715.50 -
yiwu china commodities city property office space 97,139.70 72,225.96
service co., ltd.
huishang micro-finance auxiliary buildings 81,909.41 10,171.46
hangzhou microants co., ltd. office space 81,183.79 -
zhijie yuangang office space 74,028.00 -
semi-annual report for 2023
the company as the lessee
√applicable □not applicable
unit: rmb
variable lease
simplified treatment of
payments not
rental expenses for interest expense on
included in the increased
short-term leases and rent paid lease liability
measurement of the right-of-use assets
leases of low-value assumed
type of lease liability (if
lessor name assets (if applicable)
leased asset applicable)
amount amount amount amount amount amount amount amount amount
amount in
in the in the in the in the in the in the in the in the in the
the current
previous current previous current previous current previous current previous
period
period period period period period period period period period
ccch warehouses 7,512,968.82 - - - - - - - - -
notes on related-party lease
√applicable □not applicable
the group rent office spaces from above related parties at market prices
semi-annual report for 2023
(4). related-party guarantees
the company as the guarantor
√applicable □not applicable
unit: rmb
amount of starting date of the expiry date of the is the guarantee
the guaranteed
guarantee guarantee guarantee fulfilled in full
yiwu shanglv 75,092,248.56 jul 1, 2015 dec 15, 2026 no
the company as the guaranteed party
□applicable √not applicable
notes on related-party guarantees
√applicable □not applicable
the group provided guarantee for the borrowings of yiwu shanglv. as of june 30, 2023,
yiwu shanglv actually borrowed rmb 153.2495 million ( dec 31, 2022: rmb 193.4681 million )
from banks. according to the guarantee contract, the group assumed liability for rmb 75.0922
million (dec 31, 2022: rmb 94.7993 million). sco provided a counter-guarantee
(5). related-party lending and borrowing
√applicable □not applicable
unit: rmb
maturity
related party amount starting date remarks
date
borrowings
chengzhen 58,803,200.00 jan 18, 2022 in 2022, the group transferred a total of rmb
property 58,803,200.00 from chengzhen property, according
to the shareholding ratio, at the annual interest rate
of 0%. as of june 30, 2023, rmb 31,628,618.75 has
been transferred back, and the remaining fund
repayment date would be determined based on the
funding needs of chengzhen property projects.
yiwu guoshen 230,600,000.00 dec 31, the ggroup allocated a total of rmb
shangbo 2022 230,600,000.00 of surplus funds from guoshen
property co., shangbo in 2022 and a total of rmb 294,000,000.00
ltd. of surplus funds from guoshen shangbo in 2023.
yiwu guoshen 294,000,000.00 june 29, the allocations were based on the share holding
shangbo 2023 rate and the annual interest rates were 0%. the
property co., repayment date would be determined according to
ltd. the funding needs of guoshen shangbo projects.
yiwu rongshang 64,418,683.00 jun 30, 2022 the company received a pre-dividend of rmb
property co., 64,418,683.00 from rongshang property in 2022,
ltd. and the specific date of repayment of funds would be
determined according to the distribution of dividend
resolutions.
huishang 4,500,000.00 dec 31, the company received a pre-dividend of rmb
redbud 2021 4,500,000.00 from huishang redbud in 2021, and a
pre-dividend of rmb12,000,000.00 from huishang
huishang 12,000,000.00 dec 31, redbud in 2022. the specific date of return of funds
redbud 2022 would be determined according to the distribution of
dividend resolutions.
lending to
handing 189,904,400.00 dec 11, the group provided financial assistance to handing
shangbo 2020 shangbo totaling rmb 189,904,400.00 in 2020, and
provided financial assistance to handing shangbo
handing 17,845,800.00 may 11,
semi-annual report for 2023
maturity
related party amount starting date remarks
date
shangbo 2021 totaling rmb 17,845,800.00 in 2021, with an annual
interest rate of 6%. handing shangbo has repaid all
the funds as of june 30, 2023.
jebel ali 63,465,484.42 mar 9, 2020 in 2020, the group provided jebel ali free
free zone zone trader market development and
trader operation fzco financial assistance totaling
market rmb 63,465,484.42; in 2021, the group provided it
development with financial assistance totaling rmb
and 109,636,517.09; in 2022, the group provided it with
operation financial assistance totaling rmb 41,772,885.00, all
fzco at an annual interest rate of 6-month average
jebel ali 109,636,517.09 mar 31, eibor plus 5%. the repayment term of the financial
free zone 2021 assistance would be determined based on the
trader progress of the project.
market
development
and
operation
fzco
jebel ali 41,772,885.00 may 12,
free zone 2022
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: rmb10,000
amount in the previous
item amount in the current period
period
remunerations of key officers 1,107.37 771.29
(8). other related-party transactions
√applicable □not applicable
related party entrusted loan
unit: rmb
unit end of june 2023 2022
yisha chengdu international trade city 48,000,000.00 48,000,000.00
co., 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%.
semi-annual report for 2023
(1). receivables
√applicable □not applicable
unit: rmb
closing balance opening balance
item related party bad debt bad debt
book balance book balance
provision provision
yourworld international
accounts conference center company of
receivable yiwu market development group
co., ltd.
accounts tonghui shangbo
- - 6,200,000.00 61,573.54
receivable
total 632,338.41 6,279.89 6,368,814.20 63,250.07
other yiwu shanglv
receivables
other mdg
receivables
other yiwu china commodities city
receivables property service co., ltd.
other hangzhou microants co., ltd.
receivables
other yiwu huishang redbud capital
receivables management co., ltd.
other zhejiang xingfuhu sports
receivables development co., ltd.
other handing shangbo
- - 207,750,200.00 -
receivables
other tonghui shangbo
- - 116,036,742.09 -
receivables
other yiwu gongchen shangbo property
- - 562,755.00 -
receivables co., ltd.
total 1,272,856.68 - 324,350,985.09 -
jebel ali free zone trader
long-term
market development and 244,035,954.02 - 233,127,115.20 -
receivables
operation fzco
long-term yiwu shanglv
receivables
total 280,785,954.02 - 269,877,115.20 -
(2). payables
√applicable □not applicable
unit: rmb
item related party closing book opening book
balance balance
accounts yiwu digital port technology co., ltd. 3,384,348.68 -
payable
accounts yiwu china commodities city property service co., 2,803,038.96 6,653,942.97
payable ltd.
accounts zhejiang yemai data technology co., ltd. 132,008.28 713,020.54
payable
accounts yiwu gongchen shangbo property co., ltd. 12,829.45 -
semi-annual report for 2023
payable
accounts yiwu agriculture development co., ltd. - 1,791,720.12
payable
accounts yiwu security service co., ltd. - 919,817.45
payable
total 6,332,225.37 10,078,501.08
advance from yiwu shangbo yungu enterprise management co., 1,460,576.03 -
customers ltd.
advance from yiwu shanglv 879,204.89 -
customers
advance from yiwu china commodities city property service co., 798,003.82 -
customers ltd.
advance from mdg 710,377.35 -
customers
advance from cccp 329,641.51 583,018.86
customers
advance from yiwu huishang redbud capital management co., 226,899.53 -
customers ltd.
advance from zhijie yuangang 216,312.34 -
customers
advance from yiwu meipinshu supply chain management co., ltd. 40,688.61 -
customers
advance from yiwu digital port technology co., ltd. 39,235.28 -
customers
advance from hangzhou microants co., ltd. 32,430.42 -
customers
total 4,733,369.78 583,018.86
contract yiwu china commodities city property service co., 118,646.57 94,027.70
liabilities ltd.
contract yiwu digital port technology co., ltd. 52,808.83 35,519.71
liabilities
contract huishang micro-finance 25,943.40 11,792.46
liabilities
contract yiwu shangbo yungu enterprise management co., 5,581.64 -
liabilities ltd.
contract zhejiang yiwu rural economic development co., ltd. - 84,905.66
liabilities
contract yiwu security service co., ltd. - 974.76
liabilities
total 202,980.44 227,220.29
other payables yiwu guoshen shangbo property co., ltd. 524,600,000.00 230,600,000.00
other payables yiwu rongshang property co., ltd. 64,418,683.00 64,418,683.00
other payables yiwu chengzhen property co., ltd. 27,174,581.25 58,803,200.00
other payables yiwu huishang redbud equity investment co., ltd. 16,500,000.00 16,500,000.00
other payables zhijie yuangang 322,800.00 150,000.00
yourworld international conference center company of yiwu 307,465.55 78,908.97
other payables market development group co., ltd.
other payables cccp 240,000.00 -
yiwu shangbo yungu enterprise management co., 200,000.00 200,000.00
other payables
ltd.
other payables zhejiang yemai data technology co., ltd. 152,928.50 21,328.50
other payables yiwu meipinshu supply chain management co., ltd. 103,912.00 57,000.00
other payables yiwu heimahui enterprise service co., ltd. 100,000.00 100,000.00
other payables hangzhou microants co., ltd. 26,000.00 26,000.00
other payables yiwu digital port technology co., ltd. 25,000.00 -
semi-annual report for 2023
other payables yiwu china commodities city trading co., ld. 2,500.00 2,500.00
other payables cccp - 240,000.00
other payables yiwu shanglv - 108,333.33
other payables yiwu security service co., ltd. - 14,740.00
total 634,173,870.30 371,320,693.80
□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 13,173,600.00
exercised by the company during the current
period
the total amount of the company's equity -
instruments that have lapsed during the current
period
scope of the exercise price of other equity the grant prices were rmb 2.94 and rmb
instruments issued by the companyand the 2.39, respectively, both in 60 months from the
remaining period of the contractat the end of the date of grant registration
period
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 exercisable determined based on the number of
equity instruments incentive objects that have reached the
assessment target, through annual
assessment on the company’s financial
performance indicators and personal
performance indicators.
reason for the significant difference between the not applicable
estimates in the current period and in the previous
period
cumulative amount of equity-settled share-based 71,248,170.59
payments included in the capital reserve
total amount of expenses recognized by 7,542,361.95
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
for about 0.927% of the company's total share capital of 5,443,214,176 shares, of which
semi-annual report for 2023
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.
according to the equity incentive proposal and the completion status of the assessment
indicators, the first period for lifting the restrictions on the restricted stock incentive plan granted
by the company in 2020 expired on january 13, 2023, and the corresponding conditions for
lifting the restrictions have been met. the total number of restricted stocks that can be lifted this
time was 13.1736 million shares, which were listed for circulation on january 13, 2023.
□applicable √not applicable
□applicable √not applicable
□applicable √not applicable
semi-annual report for 2023
xiv. commitments and contingencies
√applicable □not applicable
important external commitments, nature and amount thereof as of the balance sheet dates
unit: rmb
capital commitments june 30, 2023 2022
signed but not provided 2,538,748,600.60 3,451,663,094.71
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
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
ltd. was frozen by the public security bureau of shanghai for a term from sep 6, 2018 to sep 6,
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 june 30, 2023, the group had other investment commitments totaling rmb
(1). important contingencies on the balance sheet dates
√applicable □not applicable
unit: rmb
item june 30, 2023 2022
contingent liabilities resulting from 79,830,082.22 99,645,681.29
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 june 30, 2023, the unsettled guarantee amount was rmb
after the issuance of the property ownership certificates and are thus little likely to incur losses.
semi-annual report for 2023
therefore, the management believed that it was not necessary to make provision for the
guarantees.
according to the resolution of the 15th meeting of the 7th board of directors on jul 1, 2015,
the group applied to the yiwu branch of abc for a rmb750million loan for yiwu shanglv and
provided guarantee based on its shareholding ratio. the guarantee was a joint and several
liability guarantee, the maximum amount of guarantee was rmb367.5million and the term was
(december 31, 2022: rmb 193,468,056.42) from the bank in total. according to the agreement
of the guarantee contract, it assumed the guarantee liability of rmb 75,092,248.56 (december
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
□applicable √not applicable
□applicable √not applicable
□applicable √not applicable
xvi. other important events
(1). retrospective restatement
□applicable √not applicable
(2). future applicable method
□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
semi-annual report for 2023
□applicable √not applicable
semi-annual report for 2023
(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 32 3 19 6 14 74 -
transactions
profits before tax 2,360 -26 -69 30 52 15 2,332
total assets 42,647 1,309 1,372 193 10,135 22,237 33,419
total liabilities 25,179 1,193 1,440 77 4,328 15,830 16,387
capital expenditures 852 - 3 - 404 - 1,259
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
semi-annual report for 2023
(4). other statements
□applicable √not applicable
□applicable √not applicable
□applicable √not applicable
semi-annual report for 2023
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 16,709,047.03
subtotal within 1 year 16,709,047.04
over 3 years 100,234.00
total 18,216,662.87
(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 provision
is made by
group
among them:
accounts
receivable for
which the bad
debts are
provided by
combination
of credit risk
characteristics
total 18,216,662.87 / 437,210.87 / 17,779,452.00 22,449,888.75 / 417,498.04 / 22,032,390.71
accounts receivable for which bad debt provision is made individually:
□applicable √not applicable
explanation for making bad debt provision for accounts receivable by group:
√applicable □not applicable
combined provision items: accounts receivable with provision for bad debts based on credit risk
characteristics
unit: rmb
closing balance
name
accounts bad debt provision ratio
semi-annual report for 2023
receivable provision (%)
accounts receivable for which the bad
debts are provided by combination of 18,216,662.87 437,210.87 2.40
credit risk characteristics
total 18,216,662.87 437,210.87 2.40
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
end of june 2023
account age estimated book balance expected credit loss expected credit loss in
in default rate (%) whole duration
within 1 year 16,709,047.03 1.85 308,475.64
over 3 years 100,234.00 100.00 100,234.00
total 18,216,662.87 437,210.87
(3). provisions for bad debts
√applicable □not applicable
unit: rmb
amount of change during the current
opening period
category closing balance
balance recovery or
provision
reversal
bad debt provision 417,498.04 19,712.83 - 437,210.87
for accounts
receivable
total 417,498.04 19,712.83 - 437,210.87
in which the recovered or reversed amount is important:
□applicable √not applicable
(4). accounts receivable actually written off during the current period
□applicable √not applicable
(5). accounts receivable from the five debtors with the highest closing balance
□applicable √not applicable
(6). accounts receivable derecognized due to transfer of financial assets
□applicable √not applicable
(7). amounts of assets and liabilities formed by the transfer of accounts receivable and
continuing involvement
□applicable √not applicable
semi-annual report for 2023
other notes:
□applicable √not applicable
semi-annual report for 2023
presentation of items
√applicable □not applicable
unit: rmb
item closing balance opening balance
other receivables 26,842,202.39 329,607,469.39
total 26,842,202.39 329,607,469.39
other notes:
□applicable √not applicable
interest receivable
(1).classification of interest receivable
□applicable √not applicable
(2).significant overdue interest
□applicable √not applicable
(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 25,541,878.05
subtotal within 1 year 25,541,878.05
over 3 years 1,081,535.34
bad debt provision for other receivables -767,015.93
total 26,842,202.39
(2).categorization by nature
√applicable □not applicable
unit: rmb
nature of receivable closing book balance opening book balance
semi-annual report for 2023
withholdings, deposit and 26,248,598.35 5,772,216.82
margin
reserve 593,604.04 48,340.48
financial assistance - 323,786,912.09
receivable from joint ventures
total 26,842,202.39 329,607,469.39
(3).bad debt provision
□applicable □not applicable
unit: rmb
stage 1 stage 2 stage 3
expected credit expected credit
expected credit
loss in the entire loss in the entire total
bad debt provision loss in the
duration (credit duration (credit
coming 12
has not been has been
months
impaired) impaired)
balance as of january 787,922.23 787,922.23
balance as of january
period
provision made in the 26,171.70 26,171.70
current period
current reversal 47,078.00 47,078.00
balance as of june 30, 767,015.93 767,015.93
significant changes in the book balance of other receivables with changes in loss provisions:
□applicable √not applicable
basis for the bad debt provision made in the current period and for assessing whether the credit
risk of financial instruments has increased significantly:
□applicable √not applicable
(4).provisions for bad debts
√applicable □not applicable
unit: rmb
amount of change during the
opening current period closing
category
balance recovery or balance
provision
reversal
bad debt provision for 787,922.23 26,171.70 47,078.00 767,015.93
other receivables
total 787,922.23 26,171.70 47,078.00 767,015.93
in which the recovered or reversed amount is important:
□applicable √not applicable
(5).other receivables actually written off during the current period
□applicable √not applicable
notes on the write-off of other receivables:
□applicable √not applicable
semi-annual report for 2023
(6).other receivables from the five debtors with highest closing balance
√applicable □not applicable
unit: rmb
weight in the bad debt
nature of total closing provision
debtor closing balance account age
receivable balance of other closing
receivables (%) balance
yiwu china commodities city -
current
information technology co., 13,404,904.46 within 1 year 48.55
accounts
ltd.
zhejiang yindu hotel current -
management co., ltd. accounts
zhejiang china commodities -
current
city group co., ltd. jingyue 1,083,708.32 within 1 year 3.93
accounts
dafan homestay
yiwu shanglv investment current -
development co., ltd. accounts
yiwu power transmission and -
current
transformation engineering 670,487.00 within 1 year 2.43
accounts
co., ltd.
total / 18,861,875.50 / 68.32 -
(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
semi-annual report for 2023
√applicable □not applicable
unit: rmb
closing balance opening balance
item impairment impairment
book balance book value book balance book value
provision provision
investment in subsidiaries 4,504,806,448.14 - 4,504,806,448.14 4,980,206,448.14 570,000,000.00 4,410,206,448.14
investment in associates and joint 5,841,099,515.98 - 5,841,099,515.98 4,800,215,865.20 - 4,800,215,865.20
ventures
total 10,345,905,964.12 - 10,345,905,964.12 9,780,422,313.34 570,000,000.00 9,210,422,313.34
(1) investment in subsidiaries
√applicable □not applicable
unit: rmb
current closing
increase in the decrease in the provision balance of
investee opening balance closing balance
current period current period for impairment
impairment provision
yiwu china commodities city financial 2,239,426,242.40 - - 2,239,426,242.40 - -
holdings co., ltd.
zhejiang xunchi digital technology co., ltd. 444,368,982.89 - - 444,368,982.89 - -
yiwu shangbo yuncang enterprise 300,000,000.00 - - 300,000,000.00 - -
management co., ltd.
yiwu shangbo shuzhi enterprise management 225,600,000.00 74,400,000.00 - 300,000,000.00 - -
co., ltd.
yiwu commodities city gonglian property co., 200,000,000.00 - - 200,000,000.00 - -
ltd.
zhejiang china commodities city group 120,059,576.13 - - 120,059,576.13 - -
commercial factoring co., ltd.
yiwu china commodities city big data co., 102,984,635.63 1,277,386.09 - 104,262,021.72 - -
ltd.
yiwu china commodities city import and 102,334,012.67 - - 102,334,012.67 - -
semi-annual report for 2023
export co., ltd.
yiwu china commodities city supply chain 101,265,319.13 - - 101,265,319.13 - -
management co., ltd.
yiwu china commodities city overseas 101,540,253.96 - - 101,540,253.96 - -
investment and development co., ltd.
yiwu china commodities city tourism 100,977,959.14 - - 100,977,959.14 - -
development co., ltd.
yiwu china commodities city logistics and 101,931,157.09 - - 101,931,157.09 - -
distribution co., ltd.
zhejiang huajie investment and development 74,423,097.53 3,300,000.00 - 77,723,097.53 - -
co., ltd.
yiwu comprehensive bonded zone operation 36,668,690.36 17,500,000.00 - 54,168,690.36 - -
and management co., ltd.
yiwu china commodities city information 50,965,115.90 - - 50,965,115.90 - -
technology co., ltd.
hangzhou shangbo nanxing property co., ltd. 50,000,000.00 - - 50,000,000.00 - -
yiwu china commodities city exhibition co., 19,666,060.90 - - 19,666,060.90 - -
ltd.
yiwu china commodities city assets 11,375,213.90 - - 11,375,213.90 - -
operation and management co., ltd.
zhejiang yindu hotel management co., ltd. 13,534,551.93 - - 13,534,551.93 - -
yiwu china commodities city research 11,208,192.49 - - 11,208,192.49 - -
institute co., ltd.
haicheng yiwu china commodities city 571,277,386.09 - 571,277,386.09 - - -
investment development co., ltd.
yiwu china commodities city commerce and 600,000.00 - 600,000.00 - - -
trade service training center co., ltd.
total 4,980,206,448.14 96,477,386.09 571,877,386.09 4,504,806,448.14 - -
semi-annual report for 2023
(2) investment in associates and joint ventures
√applicable □not applicable
unit: rmb
change in the current period closing
balance
decrease
investment opening amount investment gains or losses closing amount of
additional in impairment
unit balance recognized with the equity balance impairme
investment investme provision
method nt
nt
provision
yiwu shanglv 396,972,448.93 - - 20,662,266.60 - 417,634,715.53 -
yiwu rongshang property co.,
ltd.
yiwu chuangcheng property co.,
ltd.
yiwu guoshen shangbo property
co., ltd.
other 25,064,023.73 - - -1,077,279.54 - 23,986,744.19 -
sub-total 591,876,733.40 - - 884,670,680.70 - 1,476,547,414.10 -
huishang micro-finance 78,209,979.82 - - 1,067,437.11 - 79,277,416.93 -
chouzhou financial lease 489,205,549.91 - - 52,173,749.11 - 541,379,299.02 -
pujiang lvgu property co., ltd. 374,601,160.67 - - -8,975,700.27 - 365,625,460.40 -
cccp 2,984,810,019.41 - - 123,607,288.99 - 3,108,417,308.40 -
zhijie yuangang 145,563,439.33 - - -7,168,026.16 - 138,395,413.17 -
other 135,948,982.66 - - -4,491,778.70 - 131,457,203.96 -
sub-total 4,208,339,131.80 - - 156,212,970.08 - 4,364,552,101.88 -
total 4,800,215,865.20 - - 1,040,883,650.78 - 5,841,099,515.98 -
other notes:
□applicable √not applicable
semi-annual report for 2023
(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 1,778,783,417.92 476,160,908.86 1,286,870,280.06 399,897,158.60
other businesses 144,750,859.24 48,992,546.57 149,950,265.32 44,272,476.43
total 1,923,534,277.16 525,153,455.43 1,436,820,545.38 444,169,635.03
(2). incomes from contracts
√applicable □not applicable
unit: rmb
classified by type of contract total
types of goods
the use of shops in yiwu market and its 1,670,027,970.13
supporting services
hotel accommodation and catering services 124,274,970.80
revenue from use fees 5,806,042.94
other services 203,372.73
classified by business area
chinese mainland 1,800,312,356.60
classified by contract period
revenue confirmed at certain time point
hotel catering services 68,526,860.48
other services 138,903.39
revenue confirmed during certain time period
the use of shops in yiwu market and its 1,670,027,970.13
supporting services
hotel accommodation services 55,748,110.32
revenue from use fees 5,806,042.94
other services 64,469.34
total 1,800,312,356.60
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 yiwu market and its
supporting services
hotel accommodation service 7,275,513.89
other services 64,469.34
total 1,623,666,963.97
semi-annual report for 2023
(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 yiwu market and its supporting services
the contractual performance obligation is fulfilled when providing the use of shops in yiwu
market and the supporting services for business. for the use of shops in yiwu market and the
supporting services for business, the progress of contract performance is determined based on
the number of using days of the shops. customers usually need to pay in advance before the use
of shops in yiwu market and the supporting services for business are provided.
hotel accommodation business
the performance obligation is fulfilled when providing hotel accommodation services. for
the hotel accommodation business, the progress of contractual performance is determined
based on the number of days of stay. for hotel accommodation services, a partial deposit 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:
on june 30, 2023, the transaction price allocated to the remaining performance obligations
was rmb 2,213,236,702.02. 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 1,040,883,650.78 753,179,755.40
calculated with the equity method
investment income from disposal of long-term 1,296,480.56 883,324.49
equity investment
investment income from disposal of 13,602.55 29,078.03
held-for-trading financial assets
return on investment during investment holding 2,110,591.00 -
period of other non-current financial assets
total 1,044,304,324.89 754,092,157.92
other notes:
nil
□applicable √not applicable
semi-annual report for 2023
xviii. supplements
√applicable □not applicable
unit: rmb
item amount remarks
profits and losses from the disposal of non-current assets 177,251,158.26
government grants that are recognized in the current profits and losses,
excluding the government grants that are closely related to the normal
operation of the company and are provided in a fixed amount or quantity
continuously according to the national polices and certain standards
cash occupation fees charged from non-financial enterprises that are
recognized in the current profits and losses
profits and 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
-6,192,155.35
held-for-trading financial assets, derivative financial assets, financial liabilities
held for trading, derivative financial liabilities and other debt instruments,
except for effective hedging during the ordinary course of business
profits and losses arising from external entrusted loans 1,252,476.06
net income from other non-operating activities 3,021,986.99
less: effect of income tax 47,508,712.07
effect of minority interest (after-tax) 627,665.12
total 158,967,822.07
explanations shall be made for the non-recurring profits and losses identified by the company
according to the explanatory announcement no. 1 on information disclosure by companies
publicly offering securities – non-recurring profits and losses, and for the company identifying
the non-recurring profits and losses enumerated in the explanatory announcement no. 1 on
information disclosure by companies publicly offering securities – non-recurring profits and
losses as recurring profits and losses.
□applicable √not applicable
√applicable □not applicable
weighted eps
profits in the reporting period average roe
(%) basic eps diluted eps
net profits attributable to common
shareholders of the company
net profits attributable to common
shareholders of the company after
deducting non-recurring gains and
losses
□applicable √not applicable
□applicable √not applicable
chairman of board of directors: zhao wenge
semi-annual report for 2023
date of approving by the board of directors for release: august 19, 2023
amendment
□applicable √not applicable