Stock code: 600415 Stock short name: 小商品城
Zhejiang China Commodities City Group
Co. Ltd.Semi-annual Report for 2026
Important Statements
I. The Company's board of directors directors and senior management guarantee the
truthfulness accuracy and completeness of the semi-annual report ensuring there are
no false records misleading statements or material omissions and assume individual
and joint legal responsibility.II. All directors of the Company were present at the board meeting.III. This semi-annual report is unaudited.IV. CHEN Dezhan Head of the Company BAO Hua Principal in charge of accounting
and ZHAO Difang Head of the accounting department (Accounting Manager) declare
that they warrant the truthfulness accuracy and completeness of the financial report in
the semi-annual report.V. Plan for profit distribution or capital reserve into share capital for the current period
approved by the board of directors
On August 24 2026 the Company convened the 9th meeting of the 10th Board of
Directors which reviewed and approved the Proposal on the 2026 Mid-Term Profit Distribution
Plan. The profit distribution plan: based on the total share capital on the dividend distribution
equity registration date a cash dividend of RMB 1.00 (tax inclusive) will be distributed for every
10 shares. Based on the Company's total share capital as of June 30 2026 a total cash
dividend of RMB 548355922.60 will be distributed. If there is a change in the total share capital
of the Company before the equity registration date for equity distribution it is proposed to
maintain the per share distribution plan unchanged and adjust the total distribution amount
accordingly.VI. Risk statement with forward-looking representations
√Applicable □Not applicable
The forward-looking representations involved in this Report such as future plans and
development strategies do not constitute the Company’s substantial commitments to investors.Investors should pay attention to investment risks.VII. Is the Company’s cash occupied by its controlling shareholder or any of the other
affiliates for non-operational purposes
No
VIII. Has the Company provided external guarantee in violation of the prescribed
decision-making procedures
No
IX. Whether there is a circumstance that more than half of the directors cannot
guarantee the authenticity accuracy and completeness of the semi-annual report
disclosed by the Company
No
X. Reminder of major risks
During the reporting period the Company did not have any significant risks that would
affect its continued operations. The Company has provided a detailed description of the
potential risks it may face in the "Potential Risks" part in Section III "Discussion and Analysis of
Managers" of this report.XI. Other
□Applicable √Not applicable
Table of Contents
SECTION I. DEFINITIONS .............................. 5
SECTION II. COMPANY PROFILE AND FINANCIAL HIGHLIGH....6
SECTION III. DISCUSSION AND ANALYSIS OF MANAGERS .....9
SECTION IV. CORPORATE GOVERNANCE ENVIRONMENT AND S...35
SECTION V. SIGNIFICANT MATTERS ..................... 37
SECTION VI. CHANGES IN SHARES AND INFORMATION ON S...44
SECTION VII. BONDS ................................. 47
SECTION VIII. FINANCIAL REPORT ......................51
Accounting statements with the signatures and stamps of head of the
Company principal in charge of accounting and head of the
Documents for accounting department (Accounting Manager).Inspection
The originals of all company documents and announcements publicly
disclosed during the reporting period
Section I. Definitions
For the purpose of this Report unless otherwise stated in the context the following terms shall
have the following meanings:
Definitions
MDG means Yiwu Market Development Group Co. Ltd.CCCH means Yiwu China Commodities City Holdings Limited
Zhijie Yuangang means Zhejiang Zhijie Yuangang International SupplyChain Technology Co. Ltd.CCCP means Yiwu China Commodities City PropertyDevelopment Co. Ltd.CCC Property Service means Yiwu China Commodities City Property ServiceCo. Ltd.Yiwu China Commodities City Equity Investment
CCCEI means Co. Ltd. (formerly known as Yiwu China
Commodities City Financial Holding Co. Ltd.)
Yiwu Shanglv means Yiwu Shanglv Investment Development Co. Ltd.Chouzhou Financial Lease means Zhejiang Chouzhou Financial Lease Co. Ltd.Shangbo Yungu means Yiwu Shangbo Yungu Enterprise ManagementCo. Ltd.Kuaijietong Yiwu Pay means Kuaijietong Payment Service Co. Ltd. and itspayment brand
The Company the Listed
Company the Group the means Zhejiang China Commodities City Group Co.Group Company Ltd.Section II. Company Profile and Financial Highlights
I. Company profile
Chinese name 浙江中国小商品城集团股份有限公司
Chinese short name 小商品城
English name Zhejiang China Commodities City Group Co. Ltd.English short name YIWU CCC
Legal representative CHEN Dezhan
II. Contact information
Board Secretary Securities Affairs Representative
Name XU Hang HE Zhichao
Address YIWU CCC Group Building No. 567 YIWU CCC Group Building No.Yinhai Road Yiwu City 567 Yinhai Road Yiwu City
Telephone 0579-85182812 0579-85182812
Fax 0579-85197755 0579-85197755
Email Hxu@cccgroup.com.cn hezhichao@chinagoods.com
III. Introduction to changes in basic information
Registered address 567 Yinhai Road Futian Sub-district Yiwu City Jinhua City ZhejiangProvince
The registered address of the Company at the time of establishment
was “No. 51 Huangyuan Road Yiwu City”;
Historical changes in the In May 1997 it was changed to "No. 158 Binwang Road Yiwu City
registered address of the Zhejiang Province";
Company In May 2006 the address was changed to "Haiyang Business
Building No. 105 Futian Road Yiwu City Zhejiang Province"; in
January 2024 it was changed to the current registered address.Office address YIWU CCC Group Building No. 567 Yinhai Road Yiwu City
Postal code at the office
address 322000
Corporate website www.cccgroup.com.cn
Email 600415@chinagoods.com
IV. Changes in information disclosure and filing place
Newspapers selected by the Company China Securities Journal Shanghai Securities News
for information disclosure and Securities Times
Website for publishing the Semi-annual
Report www.sse.com.cn
Place for access to the Company’s
semi-annual report Securities Department of the Company
V. Stock profile
Type of stock Exchange Stock short name Stock code Stock short namebefore change
A share Shanghai StockExchange 小商品城 600415 No
VI. Other relevant information
□Applicable √Not applicable
VII. Main accounting data and financial indicators of the Company
（i） Main accounting data
Unit: RMB
Main accounting data Jan-Jun 2026 Jan-Jun 2025 YoY change (%)
Operating revenue 10281542979.96 7712799130.26 33.30
Profits before tax 2677668054.28 2147733764.28 24.67
Net profits attributable to shareholders
of the Listed Company 1979200210.15 1690936276.69 17.05
Net profits attributable to shareholders
of the Listed Company with 1823153382.74 1668174321.71 9.29
non-recurring items excluded
Net cash flow from operating activities -128795077.94 1382854487.47 -109.31
Change of Jun
Jun 30 2026 Dec 31 2025 30 2026 over
Dec 31 2025 (%)
Net assets attributable to shareholders
of the Listed Company 22102008092.63 22947911108.88 -3.69
Total assets 43179320691.10 44405436378.39 -2.76（ii） Major financial indicators
Major financial indicators Jan-Jun Jan-Jun2026 2025 YoY change (%)
Basic EPS (RMB) 0.36 0.31 16.13
Diluted EPS (RMB) 0.36 0.31 16.13
Basic EPS after deducting non-recurring gains and
losses (RMB/share) 0.33 0.30 10.00
Weighted average ROE (%) 8.28 8.03 Up 0.25 ppt
Weighted average ROE after deducting
non-recurring gains and losses (%) 7.63 7.92 Down 0.29 ppt
Explanation of the company's main accounting data and financial indicators
√Applicable □Not applicable
1. Operating revenue increased by RMB 2.569 billion compared to the same period of the
previous year mainly due to an increase in revenue of RMB 1.2 billion from the delivery of
supporting office buildings and commercial streets of the global digital trade center in this period
as well as an increase in commodity sales revenue of RMB 918 million YoY.
2. The net cash flow from operating activities decreased by RMB 1.512 billion compared to the
same period the previous year. This was primarily attributable to a YoY decrease of RMB 1.215
billion in the net cash received from sales of goods and provision of services mainly driven by
the collection of Global Digital Trade Center rental income in the prior year alongside a YoY
increase of RMB 133 million in taxes paid.VIII. Differences in accounting data under domestic and foreign accounting standards
□Applicable √Not applicable
IX. Non-recurring gains and losses
√Applicable □Not applicable
Unit: RMB
Non-recurring items Amount Remark (if applicable)
Non-current asset disposal gains and losses
including the offsetting portion of the provision for 2592703.62
impairment of assets
Government grants that are recognized in the
current profit or loss excluding the government
grants that are closely related to the normal
operation of the Company and provided in a fixed
amount or quantity and that have a continuous 13233588.51
impact on the Company's gains and losses
according to the national policies and certain
standards
Except for effective hedging business related to
the normal operation of the Company the fair
value gains and losses arising from the holding of Mainly due to the
financial assets and financial liabilities by 173088221.26 changes in fair value of
non-financial enterprises as well as the gains and held trading financial
losses arising from the disposal of financial assets assets
and financial liabilities
Cash occupation fees charged from non-financial
enterprises that are recognized in the current profit 12281917.98
or loss
Profits and losses arising from external entrusted
loans 1251786.16
Net income from other non-operating activities 1959021.11
Less: effect of income tax 47800595.93
Effect of non-controlling interest (after-tax) 559815.30
Total 156046827.41
For companies that recognize items not listed in the Explanatory Announcement No. 1 on
Information Disclosure of Companies Issuing Securities to the Public - Non-recurring Profit and
Loss as non-recurring profit and loss items with significant amounts and for companies that
define non-recurring profit and loss items listed in the Explanatory Announcement No. 1 on
Information Disclosure of Companies Issuing Securities to the Public - Non-recurring profit and
loss items as recurring profit and loss items the reasons should be explained.□Applicable √Not applicable
X. Companies implementing equity incentive plans or employee stock ownership plans
may elect to disclose net profit adjusted for the impact of share-based payments
□Applicable √Not applicable
XI. Other
□Applicable √Not applicable
Section III. Discussion and Analysis of Managers
I. Description of the industry and the Company’s main business during the reporting
period
(I) Industry Context of the Company
In accordance with the Guidelines for the Industry Classification of Listed Companies (2012
Revision) issued by the China Securities Regulatory Commission the Company falls under the
"Business Services" (L72) category within the broader "Leasing and Business Services" (L)
industry.As the world's small commodity trade hub Yiwu Market consistently ranks among China's
top comprehensive markets backed by its massive scale diverse product categories and
massive pool of Chinese and international purchasers. Leveraging robust industrial
agglomeration and supply chain integration capabilities Yiwu Market drives the development of
2.1 million micro small and medium-sized enterprises supports employment for 32 million
industrial workers and builds a solid industrial "moat". Its trade network covers 233 countries
and regions worldwide holding a core hub position in the global small commodity supply chain
system and providing critical support for China to foster the "dual circulation" development
paradigm and promote high-quality trade growth.
1. Amplified Core Advantages and Rising Industry Value
(1) Sustained Burst of Market Vitality. As a key window for China's opening-up and a
core global small commodity trade hub Yiwu Market continues to play a vital role in trade
aggregation resource allocation and industrial driving spurring coordinated development of
over 20 industrial clusters across China. Talent and market resources are converging at an
accelerated pace. In H1 2026 Yiwu newly recruited 40700 college graduates marking a
29.13% YoY increase. The total number of business entities in the city surpassed 1.28 million
ranking first among all county-level regions nationwide. Foreign visitors to the city reached
342000 up 14.4% YoY and hitting a multi-year high. The city is now home to nearly 40000
resident foreign merchants and 110000 overseas Chinese entrepreneurs with foreign-invested
business entities exceeding 10000. The market sees an average daily footfall of 294000 (up
34%) including 12000 visits by foreign buyers (up 30%). As global purchasers entrepreneurs
and innovative resources continue to pour in the driving forces behind the market's
development are constantly strengthening.
(2) Continuous Enrichment of Product Categories. As the world's largest small
commodity distribution center Yiwu Market has further improved its business formats following
the operation of the Global Digital Trade Center. It now encompasses 28 major categories and
48 industries offering over 2.2 million types of products thereby creating a more
comprehensive product supply system. Meanwhile in response to shifting consumer trends the
market leverages its robust capabilities in product innovation and supply chain integration to
continuously cultivate new China Chic and creative products. Phenomenal bestsellers emerge
one after another. Its new product development and rapid response capabilities keep improving
enabling high-quality products to connect with global markets at a faster pace.
(3) Accelerated Emergence of New Business Formats. As a frontier for innovation in
trade models and business formats the Yiwu market pioneered the "Market Procurement
Trade" model establishing a low-cost pathway for small and micro merchants to access
overseas markets. After more than a decade of practice this model has become a vital pillar of
Yiwu's foreign trade development. It has driven an almost sevenfold increase in Yiwu's export
volume accounting for approximately 80% of the city's total export value and has been
replicated and promoted across 39 specialized markets in 22 provinces nationwide. While
upgrading traditional trade models Yiwu is accelerating the integration of digital technologies
and physical markets fostering booming new formats and scenarios including digital trade
nighttime live streaming flexible supply chains and cross-border e-commerce. Drawing on its
industrial foundation and trade advantages Yiwu Market is rapidly expanding into new tracks
such as drones robots smart wearable devices and IP trendy products with active transactions
and notable export growth continuously expanding new technology-driven consumption
scenarios in the market.
(4) Diversified Iteration of Trade Ecosystem. As a critical platform for global merchants
and enterprises to conduct small commodity trade Yiwu Market is advancing in-depth
comprehensive international trade reform exploring breakthroughs in institutional innovation
digital trade open platforms and other fields to continuously unleash reform dividends. In H1
2026 Yiwu CCC further promoted the integration of digital and real economy. Relying on the
Global Digital Trade Center it continuously enriched application scenarios such as digital
technology-empowered products and digital technology-empowered trade enhancing the
market's capability to allocate digital resources. It also improved new-type trade service
systems covering market procurement trade and cross-border e-commerce boosting trade
facilitation and supply chain collaboration. To date the city has successfully implemented 21
pioneering reform achievements nationwide recognized as the "first order" "first case" or "first
initiative" of their kind.
2. Steady Growth with Strong Resilience and Sustained Industry Prosperity
In the first half of 2026 Yiwu’s foreign trade continued its robust upward trajectory with
total import and export value reaching RMB 486.42 billion up 19.9% YoY as trade volume
expanded further. Exports totaled RMB 420.72 billion up 17.3% while imports reached RMB
65.70 billion up 39.1% accounting for 18.6% and 9.3% of Zhejiang Province’s total respectively
up 1.4 and 0.4 percentage points from Q1 2026.
(1) Diversified Market Layout Strengthens Trade Resilience. In the first half of the year
amid a complex and volatile global trade environment and persistent external uncertainties
Yiwu continued to demonstrate formidable trade resilience underpinned by its globalized trade
networks well-developed industrial chains and agile supply chain capabilities. Yiwu’s market
trade networks now span 233 countries and regions worldwide. While consolidating its
traditional markets of strength the city has accelerated expansion into emerging markets such
as Africa Southeast Asia and Latin America steadily optimizing its trade partner mix. This
diversified market footprint has effectively cushioned the impact of trade environment
fluctuations. Notably in the first half of the year Yiwu's total import and export volume with
Africa ASEAN and the EU reached RMB 102.64 billion RMB 78.21 billion and RMB 45.81
billion respectively up 42.7% 63.5% and 13.7% YoY.
(2) Market Procurement Trade Fuels Trade Growth. As a distinctive model for Yiwu's
foreign trade development the market procurement trade model continued to unleash its
growth potential. In the first half of the year exports under this model reached RMB 347.25
billion up 16.4% YoY maintaining a high share of Yiwu’s total exports and continuing to anchor
overall trade growth. Leveraging the clustering advantages of the Yiwu International Trade City
platform the market procurement model has effectively lowered the barriers for small and
medium-sized enterprises to participate in international trade enhanced trade facilitation and
enabled a wider range of distinctive small commodities to enter global markets efficiently.Meanwhile with the continuous improvement of buyer resources trade service systems and
logistics support capabilities Yiwu has progressively built a comprehensive trade ecosystem
integrating exhibition procurement payment logistics and services further reinforcing the
strengths of the market procurement model and consolidating Yiwu’s leading position in the
global small commodities trade sector.
(3) Industrial Strengths Bolster Export Competitiveness. A well-developed industrial
chain system and robust supply chain coordination capabilities form the core foundation of
Yiwu’s sustained trade growth. Anchored in a complete ecosystem spanning manufacturing
commodity distribution trade services and logistics Yiwu has forged a development pattern of
“small commodities big industries and large markets” boasting abundant product supply
capacity and strong market adaptability that enables rapid responses to shifting overseas
demand. Drawing on its industrial cluster advantages and the digital capabilities of the "World
Yiwu" Commercial Large Model Yiwu enterprises are able to continuously track and swiftly
capture global consumption trends seizing market opportunities ahead of competitors. From
Chinese-style summer cooling products that have become highly popular in Europe to sports
merchandise capitalizing on the hype of the FIFA World Cup in the US Canada and Mexico
and to seasonal categories like Christmas gifts autumn/winter decorations and outdoor gear
that align with traditional overseas consumption cycles these examples fully demonstrate the
rapid adaptability of Yiwu's supply chain to global demand shifts injecting strong momentum
into the city's foreign trade growth.
(4) Digital Empowerment Opens Up New Growth Space. Digital transformation
continues to drive the upgrading of Yiwu’s trade model with cross-border e-commerce and
other new trade formats gradually becoming a key growth engine for foreign trade. On May 15
2026 the Digital Trade Port at the Global Digital Trade Center officially commenced operations.
By leveraging AI large models to unlock the value of trade data and drawing on digital trade
platforms cross-border logistics systems and overseas warehouse networks the city is
steadily helping Yiwu enterprises improve their efficiency in connecting with global markets
propelling the evolution of traditional small-commodity trade toward digitalization.(II) Business Overview of the Company
1. Core Business
Aligned with the national strategy of building China into a trading power and advancing
high-standard opening-up the Company actively integrates itself into the “dual circulation” new
development paradigm. Capitalizing on Yiwu's comprehensive international trade reform and
Zhejiang's open economy advantages the Company is committed to its strategic positioning as
a "Famous Trade Service Platform." The Company is continuously advancing the construction
of its trade service system and accelerating digital platform-based and international
development.The Company focuses on three core ecosystems: commodity display and trading market
support services and trade fulfillment services and continuously improves its digital trade
infrastructure platform. Centered on reducing trade costs and enhancing trade efficiency the
Company drives innovation in market systems and upgrades to trade models helping trade
resources connect efficiently with global markets and achieving a leap from “trading nationwide”
to “trading globally.” These efforts further strengthen the global influence and comprehensive
service capabilities of Yiwu’s small-commodity trade burnishing the city’s golden brand as the
“World Capital of Small Commodities.”
Commodity Display and Trading Ecosystem: Encompassing market operation and
self-operated trade; the core vehicle for the Company’s development.Market Support Services Ecosystem: Encompassing conventions and exhibitions hotels
and related businesses; a vital pillar underpinning trade development.Trade Fulfillment Services Ecosystem: Encompassing the Chinagoods online service
platform overseas brand expansion services warehousing and logistics payments credit
reporting and factoring the critical chain link in trade services.
2. Principal Business Models
(1) Commodity Display and Trading Ecosystem
1) Market operation. The core revenue source is market booths the ownership of which
rests with the Company. Under a paid booth-usage model the Company signs contracts with
merchants for terms of one to five years and collects the relevant fees in advance as stipulated
in the contracts. During the contract term merchants enjoy the right to use the booths and must
conduct business in accordance with the agreed-upon purposes and may not change the
designated use without authorization. The markets currently operated by the Company include
First to Fifth Districts of the International Trade City Huangyuan Market the International
Production Materials Market and the Global Digital Trade Center.
2) Self-operated trade. The Company operates a new retail business with “ICMALL”
(Aiximao) as its core brand. Leveraging Yiwu market's abundant source goods and mature
supply chain integration capabilities the Company has curated over 10000 imported premium
products and trendy domestic goods across various consumer sectors including home living
and beauty & skincare. This creates a supply chain channel brand that integrates "new fashion
new consumption and new applications." Through proprietary trading the Company further
extends the upstream and downstream segments of the market's industrial chain. While
maximizing platform resource advantages and brand influence this approach promotes the
synergistic development of trade operations and the market ecosystem fostering a virtuous
cycle.
(2) Market Support Services Ecosystem
1) Exhibition Business. The Company organizes self-operated exhibitions including the
China Yiwu International Commodities Fair China Yiwu Import Goods Expo and China Yiwu
International Forest Products Expo and operates the Yiwu International Expo Center and the
Quzhou Living Room Exhibition Center. Through sustained cultivation the exhibition segment
has built an integrated business system spanning in-house exhibition organization overseas
exhibition participation venue management supporting services and entrusted operationswithin the Group. The Company is actively exploring fusion models such as “exhibitions +cultural creativity” “exhibitions + industries” and “exhibitions + global expansion” extending
exhibition resources into industrial chains supply chains and trade chains and continuously
leveraging the role of exhibition platforms in facilitating trade exchange serving industrial
development and promoting openness and cooperation.
2) Hotel Business. Through a combination of self-operation and entrusted management
the Company runs ten hotels and serviced apartments and owns two restaurant brands
Fingertip Canteen and Yandoo Café building a comprehensive service system covering lodging
dining meetings leisure and other diverse scenarios. Revenue streams span room sales food
and beverage sales merchandise sales and venue leasing among other areas. Meanwhile
the Company continues to refine its multi-channel marketing system covering corporate
accounts conferences and wedding banquets and online bookings deepening digital
empowerment and brand building to steadily enhance hotel operational capabilities and market
competitiveness.
(3) Trade Fulfillment Services Ecosystem
1) Online Service Platform. Drawing on the resources of 80000 physical market booths
the Company continues to upgrade Chinagoods its online comprehensive international trade
service platform serving 2.1 million small medium and micro enterprises along the upstream
and downstream of industry chains worldwide. Driven by trade data integration the platform
links supply and demand connects procurement sales marketing and other trade links and
has built a B2B digital comprehensive trade service platform integrating membership-based
essential services customized services AI value-added services and digital advertising
advancing the digital upgrading of trade services and strengthening industry-chain resource
integration and coordination.2) Digital Finance Services. Relying on three major business qualifications i.e. credit
reporting factoring and payment licenses the Company has built a digital financial service
system tailored to the small commodities trade ecosystem. It fully leverages the advantages of
foreign exchange collection and settlement under the market procurement trade model
continuously enhancing the digital and intelligent service capabilities of the "Yiwu China
Commodities Index." Based on its credit reporting business the Company integrates and
analyzes data accumulated during daily commercial transactions to form an intelligent credit
evaluation system; through its factoring business it provides convenient and efficient financing
support for SMEs. Furthermore the Company has innovated the "Yiwu Pay" brand and
continuously improved its overseas payment channel layout. It has established a diversified
payment and settlement system covering "cross-border RMB + cross-border foreign exchange
+ cross-border e-CNY" promoting the deep integration of digital finance and trade services and
constantly strengthening financial empowerment for market trade development.
3) Yiwu Market Project Services. The Company continues to advance its “1+5+2+M”
Yiwu Market Project strategy: with one overseas headquarters at the core supported by five
overseas expansion models in coordination with two major categories of service providers
(digital supply chains and digital finance) and connected with M global partners deepening the
implementation of China Commodities City’s Yiwu Market Project strategy. Through model
innovation and service upgrades the Company keeps pushing beyond the boundaries of
traditional trade transforming overseas operations from standalone exhibitions to
“exhibition-and-sales hubs + warehouse-showroom synergy” upgrading from traditional
warehousing to a “global warehouse network + supply chain integration” model and expandingfrom single-mode logistics to “trunk-and-feeder combined transport + warehouse-transportationcoordination.” In doing so it has architected a more precise efficient and multifunctional globaltrade service network forming a differentiated overseas footprint of “one plan one frameworkand one portfolio per continent” and elevating its comprehensive international trade service
capabilities.
4) Warehousing and Logistics Services. Centered on warehousing services and
oriented toward international trade service needs the Company continues to refine its
three-warehouse layout (domestic consolidation warehouses overseas forward warehouses
and comprehensive bonded warehouses) while coordinating the development of its
cross-border supply chain fulfillment system creating a “two warehouses and one line” service
model linking “domestic warehouses international logistics lines and overseas warehouses.”
Meanwhile the Company is actively developing specialized fulfillment service platforms such as
the international digital logistics market cross-border e-commerce industrial parks and
cross-border e-commerce logistics parks steadily enhancing its national logistics operations
capability and warehouse resource integration. By introducing high-quality supply chain
enterprise resources and leveraging its data-intelligent logistics system the Company further
extends its trade service chain reinforcing its supply chain service advantage of “global goodsconsolidated in Yiwu distributed worldwide.”
Description of significant non-core businesses newly added during the reporting period
□Applicable √Not applicable
II. Discussion and Analysis of Operation
The year 2026 marks the inaugural year of the “15th Five-Year Plan” the 20th anniversary
of studying and applying the "Yiwu Development Experience" and an important starting point
for Yiwu’s new journey of “building a model city and recreating past glory.” During the reportingperiod the Company remained committed to its core strategy of “Becoming a Famous TradeService Platform.” Driven by the new round of international trade reform and focused on
creating a benchmark “Market of the Future” the Company accelerated innovative practices
under the “Yiwu Development Experience.” It continued to deepen the integration of digital and
real economies domestic-international coordination and supply-demand alignment propellingthe market service system toward a leap to being “always available everywhere present andall-encompassing.”
In the first half of 2026 the Company recorded operating revenue of RMB 10.282 billion up
33.30% YoY and net profit attributable to shareholders of the listed company of RMB 1.979
billion up 17.05% YoY maintaining a steady development trajectory. During the reporting
period the Company continued to advance its international capital deployment formally
submitting an application for a listing of H shares to The Stock Exchange of Hong Kong Limited
on May 29 2026. This steadily advances the construction of its overseas capital platformfurther diversifies its financing channels and supports the realization of its “comprehensiveinternational trade service provider” strategy.(I) Continuous Physical Market Iteration Sustained Dividend Release
The Company has focused on strengthening its market development capabilities
accelerating the transformation of the physical market from scale advantages into advantages
in quality and efficiency.
1. Ushering in a New Chapter in Global Digital Trade
The Global Digital Trade Center the flagship project of Yiwu’s sixth-generation market
saw its market section officially open in October 2025 while the Digital Trade Port and
remaining functional sections were progressively put into operation by May 15 2026. Significant
improvements have been achieved in digital empowerment expansion of market participants
diversification of business formats buyer clustering and supporting infrastructure. During the
reporting period the market’s fourth floor introduced two emerging categories: smart technology
products and IP-driven trend merchandise. The Digital Trade Port structured around three hubs
(the Data Circulation Center the Digital Trade Service Center and the New Product Launch
Center) has laid out 13 functional sections including a comprehensive cross-border
e-commerce service platform and an Africa digital trade service platform driving digital
technology empowerment across the full chain of commodities and trade. The Digital Trade
Port’s IP Service Center has already gathered 185 renowned IP resources including Disney
and Sanrio and more than 68% of merchants in the Global Digital Trade Center own proprietary
brands or deal in IP products. On the supporting facilities side the commercial streets have
attracted 115 commercial tenants including several well-known restaurant brands and
Michelin-starred establishments entering Yiwu for the first time. Since its opening the Global
Digital Trade Center has recorded average daily foot traffic of over 66000 visits including more
than 7000 daily visits by foreign merchants demonstrating rapid growth momentum.Figure 1: Dual-Layer Operational Architecture of the Digital Trade Port at the Global Digital
Trade Center
2. Consolidating New Advantages for the Yiwu Market
In the first half of 2026 market trade sustained a steady upward trend achieving
synchronized growth in both volume and quality. All operational indicators continued to improve
with market transaction activity merchant business confidence and buyer agglomeration rising
steadily. To attract incremental global buyers the Company focuses on five primary traffic
acquisition channels: new media events exhibitions overseas expansion and business travel.Our precise online new media marketing has reached over 200 million impressions. Offline we
hosted more than 100 exhibitions and trade promotion events attracting a total of 1.2 million
incremental buyers. These efforts have continuously consolidated and enhanced the market's
core competitive advantage as a premier global sourcing hub. Furthermore the AI navigation
and shopping guide system has achieved full coverage across the International Trade City
accelerating the digitalization and intelligent transformation of our market services. Capitalizing
on the communication impact of the CCTV Spring Festival Gala we launched the "Shop Global
Goods · Check-in for the Spring Festival Gala" campaign during the holiday. This attracted over
590000 visitors significantly boosting market consumption and brand influence.
The market's development resilience continues to strengthen. As the trade structure
and business models undergo continuous optimization the Yiwu market's ability to withstand
external environmental shifts has been further enhanced. Despite external uncertainties such
as geopolitical fluctuations in the Middle East the Group has continuously reinforced its Yiwu
Market Project. This is underpinned by Yiwu's distinct advantages including diversified trade
comprehensive industrial and supply chains and the rigid demand for small commodities.Market operators have proactively expanded into overseas markets and diversified their trade
channel layouts ensuring that the overall operations of the Yiwu market remain stable and
positive.The market's adaptability to evolving demands continues to improve. Market trade is
increasingly characterized by small order sizes diversification and high flexibility. According to
market census data foreign trade orders valued under USD 10000 currently account for 91.9%
an increase of approximately 3 percentage points compared to the average over the past three
years. Trade channels continue to expand with over 70% of merchants now participating in
online trade and more than 40% having achieved integrated online and offline operations. The
digital transformation of the industry continues to deepen; notably the hat industry now supplies
goods for over 70% of national hat-related live-streaming sessions. In the ornaments and
accessories sector over 500 merchants have established long-term partnerships with
universities. Additionally more than 700 market operators at the Global Digital Trade Center
conduct cross-border live streaming at night continuously unleashing the market's vitality for
innovation.
3. Creating New Space for Core Market Business
As a key strategic initiative to expand and upgrade the Company's core market business
the 5th District South Project at the International Trade City will further expand operational
space and enhance the supply of market resources. Focusing on the development of a "3+1"
trade system the project will establish three core platforms: the "Import-Export-Transit"
Integration Center the "Trade-Industry-City" Service Center and the
"Culture-Business-Tourism" Experience Center. These platforms are designed to attract
high-quality merchants and characteristic industries optimize the market's functional layout
and continuously elevate its resource allocation and trade service capabilities. Furthermore by
introducing new business formats innovating operational models and upgrading supporting
services the project aims to increase output per unit area and overall operational efficiency.This will cultivate new avenues for future profit growth and inject fresh momentum into the
sustainable development of the Company's core business.(II) Robust Capacity Enhancement Driven by Upgrading of Digital Trade Fulfillment
Services
The Company is deepening the integration of digital and physical realms accelerating the
comprehensive digital upgrading of trade processes and building an efficient collaborative new
digital trade ecosystem.
1. Continuous Upgrading of the Chinagoods Platform
With trade data as its core element the Chinagoods platform focuses on the efficient
matching of supply and demand. It connects key links across the entire value chain including
product design display and transaction international logistics overseas warehousing and
financial payments. This promotes the digital allocation of market resources and the
collaborative optimization of trade processes ultimately building a genuine open and
integrated comprehensive digital trade service platform.From January to June 2026 the Chinagoods platform added over 360000 registered
buyers bringing the total to more than 5.86 million. This has achieved full service coverage for
all market operators and continuously upgraded the platform's capabilities. The "World Yiwu"
Commercial Large Model app has successfully passed the filing for both its dialogue algorithm
and multi-modal content generation algorithm. It has attracted over 15000 new users reaching
a total of more than 65000 users. By constructing high-quality datasets and enhancing
multi-modal capabilities the platform fully supports the large-scale application of AI-driven
businesses. A total of 11 new AI applications were launched including "Data Insight"
"E-Commerce Link" and "AR Space" bringing the total to 25. These AI products have served
over 300000 users in total accelerating the fulfillment of core demands throughout the entire
small commodities trade process.In terms of digital-physical scenario implementation the Chinagoods platform deepens the
integration of AI technology with trade scenarios by launching the "Chinagoods AI Navigation"
mini-program. Its service coverage spans Districts 1 through 5 of the Yiwu International Trade
City and the Global Digital Trade Center. As the industry's first cross-building and cross-corridor
navigation implementation it enables intelligent location tracking across different regions and
floors improving store-finding efficiency by nearly 70%. The Company has opened up a fullcustomer acquisition funnel spanning “targeted audience selection—content reach—onlineregistration—arrival in Yiwu—user data accumulation” achieving a total of 383000 impressions
for the Chinagoods platform and through digital customer acquisition precisely attracting
13000 foreign buyers from target markets to the Yiwu International Trade City within 10 days.
Regarding digital channel empowerment the Company actively integrates resources from
e-commerce platforms trade entities and third-party service providers to build a
comprehensive empowerment system of "training + service + resource docking." We have
jointly conducted 13 cross-border e-commerce training sessions with platforms such as TikTok
Shop Xiaohongshu (RED) and Wildberries. Additionally we hosted the E-Commerce
Conference of the Global Digital Trade Center inviting 20 mainstream platforms including
Amazon DHgate and Shein to jointly launch the "Global Digital Trade Center E-CommerceGravity Acceleration Plan 2.0." The Company has also deepened its “independent website +short-video platform” marketing model creating 13 flagship independent website templates
covering industries such as home goods auto parts fashion jewelry and accessories and
small home appliances publishing 370 pieces of branded video content and generating over 1
million total visits across social media accounts.
2. Enhanced Capacity and Efficiency of Digital Finance
As the core carrier of the Company's digital financial services Yiwu Pay leverages the
scenario advantages of Yiwu's cross-border trade to continuously promote cross-border
financial innovation and service capacity building. We are deepening our global business layout
and enhancing our digital payment service standards. To date Yiwu Pay has established
partnerships with hundreds of mainstream banks worldwide. Our business covers 179 countries
and regions supports international collection and payment in 29 mainstream currencies and
our cross-border payment service capacity continues to grow. From January to June 2026 the
transaction volume of our cross-border payment business exceeded USD 2.51 billion.During the reporting period Yiwu Pay successfully obtained both the MSO (Money Service
Operator) license and the TCSP (Trust or Company Service Provider) license in Hong Kong.The MSO license received its official business permit from the Hong Kong Customs and Excise
Department in May and we have completed direct interface connections with partner banks
further enhancing our cross-border payment capabilities. In June Yiwu Pay jointly released the
"E-CNY Cross-Border E-Commerce Payment Solution" with the Industrial and Commercial
Bank of China (ICBC). This marked the first "E-CNY Arrival" business in a cross-border
e-commerce scenario significantly expanding the application scenarios for E-CNY in
cross-border payments. Relying on the E-CNY system this solution enables point-to-point
direct connections for cross-border payments effectively reducing intermediate links improving
fund settlement efficiency and lowering transaction costs. Furthermore by introducing the
E-CNY umbrella wallet system Yiwu Pay provides merchants with more standardized
transparent and efficient fund management services thereby enhancing the visibility of fund
flows and strengthening risk control capabilities.Figure 2: Yiwu Pay and ICBC Launch E-CNY Cross-Border E-Commerce Payment Solution
3. Expanding Coverage and Scale in Digital Logistics
The Company’s equity-invested entity Zhijie Yuangang is continuously enhancing its
global logistics service capabilities centered around the construction of an international supply
chain platform. It has built an end-to-end delivery system featuring "two warehouses and one
line" (domestic warehouses + overseas warehouses + international logistics dedicated line). To
date the digital supply chain platform covers 160 countries and has served over 1400 clients
cumulatively. From January to June 2026 the platform completed a cargo shipment volume of
80000 TEUs an 11% YoY increase bringing the cumulative total to over 400000 TEUs.
During the reporting period Zhijie Yuangang officially obtained the qualification for
international liner shipping operations becoming the first local cross-border supply chain
enterprise in Jinhua to secure this qualification. This grants the Company full-process
operational capabilities including independently planning ocean shipping routes coordinating
vessel schedules and filing maritime freight rates. Leveraging this qualification advantage
Zhijie Yuangang is further enhancing its cross-border logistics service capabilities. By
integrating port and shipping resources to ensure stable cabin space and optimize
transportation costs the Company is helping small and medium-sized foreign trade enterprises
reduce costs and increase efficiency accelerating its transformation from a third-party logistics
platform into a comprehensive maritime shipping service provider with independent routes and
shipping capacity.(III) Accelerating the "Trading Globally" Service Landscape
The Company continues to expand its overseas resource layout refine a global commodity
distribution network and strengthen export supply chain security thereby facilitating the quality
improvement and scale expansion of "trading globally."
1. Extending the Chain and Building Networks for Brand Overseas Expansion
During the reporting period the Company advanced its brand overseas expansion initiative
in depth accelerating the establishment of a global overseas trade service network. Tailoring to
regional market characteristics the Company finalized a pioneering layout plan for Europe and
Africa continuously refining its regionalized operational system and initially opening up digital
channels for overseas expansion aggregating over 22000 SKUs in its digital product pool.From January to June 2026 the Company added 14 Yiwu Market projects including 1 overseas
sub-market 6 FBC overseas warehouses 2 overseas websites 3 overseas showrooms and 2
overseas exhibitions continuously perfecting the overseas service network.On July 22 2026 the Tanzania Yiwu Market co-built by the Company and Weihai Huatan
Company was officially unveiled at the East Africa Commercial and Logistics Center in Dar es
Salaam. This further expands the overseas service system of the "Yiwu China Commodities
City" brand. Relying on regional market resource advantages this project will radiate to the
Tanzanian market and surrounding countries strengthening the linkage between overseas
markets and the Yiwu market. It provides robust support for merchants to expand into the East
African market and promotes the global circulation of small commodities.Figure 3: Inauguration Ceremony of the Tanzania Yiwu Market
2. Bonded Ecosystem Gathers Chain Clusters into Strong Momentum
As a key vehicle for trade fulfillment services the Yiwu Comprehensive Bonded Zone
operated by the Company has focused on cultivating “bonded +” industrial clusters successfully
attracting eight bonded processing projects covering beauty and personal care health foods
and other categories while continuously refining the industrial ecosystem. Centered on threestrategic directions (mainstream cross-border e-commerce platforms a “bonded +livestreaming” cross-border ecosystem and brand-certified warehouses) the bonded zone is
accelerating the construction of a full-chain “bonded + cross-border” industrial system. To date
15 leading cross-border e-commerce players including Tmall Global Pinduoduo and Douyin
have established operations there achieving near-complete coverage of mainstream platforms
and intensive operations under a “one warehouse for all platforms” model.From January to June 2026 the Yiwu Comprehensive Bonded Zone (CBZ) achieved a total
import and export value of RMB 45.304 billion a YoY increase of 59.3%. Currently the CBZ
has accommodated 146 enterprises with 541500 square meters of bonded warehousing
space put into operation. The zone is continuously advancing the establishment of import
supply chain headquarters for leading enterprises and major central warehouses for large
brands. To date it has successfully attracted 15 brand central warehouses with import volumes
exceeding RMB 100 million.According to the 2025 National Comprehensive Bonded Zone Development Performance
Assessment officially released by the General Administration of Customs the Yiwu
Comprehensive Bonded Zone ranked 35th (Category B) among the 161 participating CBZs
across China and 28th (Category B) in East China. This represents a significant rise of 31
places in the national ranking compared to the previous year demonstrating a substantial
enhancement in its comprehensive development capabilities and level of openness.
3. Enhancing Quality and Expanding Scope of the Positive List for Imports
As the sole whitelisted enterprise under the positive list for imports the Company continues
to drive the expansion of this management regime. We deliver high-quality management
services for categories such as daily sundries and toys and have successfully onboarded
Shenzhen Yiran E-commerce as a pilot enterprise for cosmetics which is now fully operational.In the first half of 2026 15 new models were added under the parallel import scheme for home
appliances generating 2799 platform sales orders. By enhancing the testing and certification
service system strengthening the comprehensive quality and safety management of consumer
products via digital platforms and implementing full-process traceability for listed goods the
Company has further elevated its service capabilities for imported consumer goods supporting
the overall quality upgrading of the import trade ecosystem.(IV) Enhanced Supporting Systems and Elevated Service Capabilities
Driven by a commitment to coordinated development the Company has accelerated the
expansion of its supporting service infrastructure including exhibitions and hospitality. This has
resulted in a comprehensive service ecosystem that seamlessly integrates market operations
trade services and consumer experiences.
1. Exhibition Business. Adhering to the operating philosophy of "dual empowerment and
integrated exhibition organizing" the Company’s exhibition segment continues to scale up and
professionalize its domestic exhibitions while leveraging overseas resources to drive quality and
efficiency improvements. This strategy has yielded steady enhancements in operational quality
and returns. From January to June 2026 Yiwu China Commodities City Exhibition Co. Ltd.(“CCC Exhibition”) generated revenue of RMB 81.92 million a YoY increase of 11.36% and a
net profit of RMB 24.85 million surging 45.66% YoY.During the first half of the year over 30 exhibitions were hosted including the China Yiwu
Cultural and Tourism Products Trade Fair China Yiwu Hardware & Electrical Appliances Trade
Fair and Yiwu International Fashion Jewelry Factory Exhibition. These events covered a total
exhibition area exceeding 650000 square meters attracted over 1 million professional buyer
visits and facilitated intended transactions surpassing RMB 10 billion. Notably the Yiwu
International Fashion Jewelry Factory Exhibition continued to generate strong synergistic
effects attracting 278 industrial chain enterprises to establish operations in Yiwu. Additionally
the inaugural China Yiwu Cross-border Beauty Industry Expo brought together 316 companies
showcasing products across the entire beauty industry chain. Concurrently CCC Exhibition has
systematically advanced its preparations for a listing on the Beijing Stock Exchange making
steady progress on core criteria including innovation attributes and industry standing.
2. Hotel Business. Guided by the strategy of "platform empowerment ecosystem
coordination and brand upgrading" the Company’s hotel segment is accelerating the
integration of its "accommodation + dining + supporting services" multi-format operations to
simultaneously enhance service quality and operational performance. Focusing on core
business lines such as guest rooms dining and events the segment has implemented phased
precision marketing tailored to specific customer segments. It has upgraded its online
operations system strengthened channel management across OTA platforms short-video
platforms and livestreaming and significantly improved brand visibility and conversion rates.Furthermore the segment has deepened offline partnerships introduced a "one-stop
conference butler" service model refined its comprehensive banquet service system and
expanded its base of contracted corporate clients. It continues to cultivate distinctive offerings
such as Yandoo Cafe and group catering while strategically opening new outlets to drive
multi-channel revenue growth. From January to June 2026 the Company’s self-operated hotel
business achieved operating revenue of RMB 181 million representing a 5.67% YoY increase.(V) Expanding Capital Channels to Fuel Global Strategic Expansion
To further broaden its overseas financing channels and accelerate its strategic
transformation into a "globally renowned comprehensive international trade service provider"
the Company initiated the process for an IPO of overseas-listed foreign shares (H shares) and a
listing on the Main Board of The Stock Exchange of Hong Kong Limited (HKEX) during the
reporting period. The A1 Application Form was formally submitted to HKEX on May 29 2026.The H-share listing will facilitate the Company’s integration into international capital
markets. By leveraging Hong Kong’s strengths as an international financial center the
Company aims to diversify its financing channels optimize its capital structure enhance
resource integration capabilities and accelerate its internationalization. Furthermore
capitalizing on this internationalization the Company will deepen its "capital going global"
strategic layout to attract top-tier talent and high-quality resources thereby injecting fresh
momentum into its long-term sustainable development.Significant Changes in the Company's Operations During the Reporting Period as Well
as Matters Occurring During the Reporting Period That Have or Are Expected to Have a
Significant Impact on the Company's Operations
□Applicable √Not applicable
III. Analysis of core competitiveness during the reporting period
√Applicable □Not applicable
(I) Advantages of Trade Ecosystem Aggregation
In the early years of reform and opening-up Yiwu pioneered the establishment of a small
commodity market. Through six rounds of upgrading and thirteen rounds of expansion the
market has sustained transaction volumes that consistently rank among the top comprehensive
markets nationwide forging deep first-mover advantages. As the world's largest small
commodity distribution hub the Yiwu market now brings together 28 major categories and more
than 2.2 million individual SKUs enabling "one-stop sourcing" for global trade. Powered by
smart operations and digital technology vast flows of commerce logistics capital and
information have converged around the Yiwu market building scale effects and resource
barriers that are difficult to replicate and continuously consolidating Yiwu's position as the core
hub of global small commodity trade.(II) Advantages of Digital Integration
The Company owns the world's leading physical small commodity market. Leveraging its
nearly 80000 booths it has established the Global Digital Trade Center (Digital Trade Port) as
its latest digital integration platform building a high-caliber digital trade hub structured around
"full-chain sensing intelligent decision-making and ecosystem coordination" and forming a
digital leadership advantage that traditional markets cannot match. By digitally connecting the
“full trade journey of a single commodity” the Company achieves a closed loop spanning
demand discovery design and production listing and display order management warehousingand logistics and payment settlement transforming "segmented operations" into “full-chainsensing” and accelerating product iteration. By aggregating and leveraging “the full spectrum ofdata elements in one hub” it integrates trade industry and public data turning
“experience-based decisions” into “intelligent decisions” that drive precise analytics andecosystem coordination. By integrating and optimizing the “full service ecosystem on oneplatform” it accumulates massive trade data and consolidates diverse trade tools replacing
"scattered point-to-point connections" with one-stop “ecosystem coordination” that substantially
enhances trade facilitation. This full-chain digital intelligence hub enables the Yiwu market to
transcend the constraints of time and space upgrading from the traditional "passive
fragmented and inefficient" mode of operation to a high-caliber digital trade hub characterized
by “full-scenario coverage full-chain coordination and full data connectivity” truly realizing anew paradigm of digital trade that is “always available everywhere present andall-encompassing.”
(III) Advantages of International Brand
"Yiwu China Commodities City" is the first trademark in China's commodity trading market
sector to be recognized as a well-known trademark by the former State Administration for
Industry and Commerce of China boasting outstanding brand value and high international
recognition. Through project implementation festival linkages and global deployment the
Company continues to amplify its brand effect. In 2026 the CCTV Spring Festival Gala's Yiwu
sub-venue made a stunning debut at the Global Digital Trade Center and the city brand image
of "Sincere and Loyal Yiwu for the World" went viral across the internet achieving a global
reach of 1.2 billion impressions. The "Yiwu" brand is now inextricably linked to the image of the
"World Capital of Small Commodities" with growing influence and leadership in global trade
continuously attracting quality merchants and buyers from around the world.(IV) Advantages of Trade Supply Chain
1. Advantages in Logistics Coordination. As a designated national logistics hub city of the
trade-service type Yiwu boasts a well-developed logistics network in which leading domestic
and international express and logistics companies have all established regional distribution
centers forming an efficient global cargo transport and delivery system. In the first half of 2026
the city's express parcel volume reached 646 million keeping it firmly among the top counties
(cities districts) in China with outstanding comprehensive advantages in logistics cost and
efficiency. Relying on the Zhijie Yuangang integrated logistics platform the Company has
moved beyond the traditional multi-layer freight forwarding model compressing distribution
chains and raising service standardization. Through its "dual warehouses one trunk line" layout
and smart operations it achieves highly coordinated full-chain operations covering domestic
consolidation trunk transportation overseas warehousing and last-mile delivery delivering
significant competitive advantages over traditional foreign trade models in operating costs
fulfillment efficiency and end-to-end controllability thereby providing solid support for the
smooth flow of global trade.
2. Advantages in Industrial Support. Driven by the Yiwu China Commodities City a small
commodity industrial belt centered on Yiwu and covering Jinhua-Lishui-Quzhou
Hangzhou-Jiaxing-Huzhou-Shaoxing and other areas spanning nearly 10000 square
kilometers has taken shape. Emerging industries attracted by the Global Digital Trade Center
such as drones and intelligent equipment are rapidly clustering around Yiwu by leveraging the
market's advantages. This deep linkage between the market and surrounding industrial clusters
has built a virtuous "trade-industry linkage coordinated development" mechanism providing
the market with stable sources of supply and robust industrial support.
3. Advantage in Exhibition Service. The Company's exhibition segment organizes multiple
UFI-approved events including the China Yiwu International Commodities Fair and China Yiwu
Import Goods Expo while cultivating vertical trade shows in stationery textiles and other
industries forming professional and internationally recognized exhibition brands. These events
have become national-level platforms that lead industry development consolidate the clustering
of merchants and commodities and facilitate trade matching and industrial upgrading.(V) Advantages of Business Diversification
While deepening its core business the Company has actively expanded into related fields
forming a diversified and synergistic group structure and profit model spanning "market
operations + international trade + modern logistics + conventions and hotels + financial services
+ digital technology." The business segments share resources and develop in linkage both
strengthening the Company's resilience against risks and broadening its revenue streams
thereby safeguarding long-term sustainable development.(VI) Advantages of Talent Management
As a leading enterprise in professional market operations the Company has established a
comprehensive management system and accumulated extensive experience in market
operation and management. Over years of development it has cultivated a management team
with well-balanced knowledge structures outstanding professional capabilities and strategic
vision — able to accurately grasp industry trends and efficiently advance project implementation
and business innovation providing core assurance for the Company's strategic execution and
high-quality development. In recent years with the expansion of digital technology financial
services and global brand initiatives a market-oriented professional and internationalized
talent pool is progressively emerging as a new driving force for the Company's growth.IV. Operating status during the reporting period
（i） Analysis of main business
1. Analysis of changes in the items of the financial statements
Unit: RMB
Amount in the
Subject Amount in the same report periodcurrent report period of the previous YoY change (%)
year
Operating revenue 10281542979.96 7712799130.26 33.30
Operating cost 7295331445.25 5279388914.07 38.19
Sales expenses 128955771.06 104941801.54 22.88
Administrative expenses 212619854.30 196210098.67 8.36
Financial expenses -126682.18 17153173.76 -100.74
R&D expenses 28508822.08 9884690.75 188.41
Net cash flow from operating
activities -128795077.94 1382854487.47 -109.31
Net cash flow from investing
activities -298277049.32 -891859376.41 NA
Net cash flow from financing
activities -1461941507.17 -1341812237.34 NA
Reasons for the change in operating revenue: Operating revenue increased by 33.30%
compared to the same period the previous year mainly due to an increase in revenue of RMB
1.2 billion from the delivery of supporting office buildings and commercial streets at the Global
Digital Trade Center as well as an increase of RMB 918 million in product sales revenue.Reasons for the change in operating costs: Operating costs increased by 38.19% compared to
the same period the previous year mainly due to the recognition of delivery costs for supporting
office buildings and commercial streets at the Global Digital Trade Center and the expansion of
the product sales scale.Reasons for the change in financial expenses: Financial expenses decreased by 100.74%
compared to the same period the previous year mainly due to a YoY reduction in
interest-bearing liabilities.Reasons for the change in research and development expenses: R&D expenses increased by
188.41% compared to the same period the previous year mainly due to an increase in the
Company's R&D investment.Reasons for the change in net cash flow from operating activities: The net cash flow from
operating activities decreased by RMB 1.512 billion compared to the same period the previous
year. This was primarily attributable to a YoY decrease of RMB 1.215 billion in the net cash
received from sales of goods and provision of services mainly driven by the collection of Global
Digital Trade Center rental income in the prior year alongside a YoY increase of RMB 133
million in taxes paid.Reasons for the change in the net cash flow from operating activities: Net cash flow from
operating activities increased by RMB 594 million YoY mainly due to a YoY increase of RMB
2.895 billion in net inflow from investments while cash paid for the acquisition of fixed assets
intangible assets and other long-term assets increased by RMB 2.306 billion YoY.
2. Details of material changes in the business types the components or sources of
profits of the Company in this reporting period
□Applicable √Not applicable（ii） Material changes in profits caused by non-main businesses
□Applicable √Not applicable（iii） Analysis of assets and liabilities
√Applicable □Not applicable
1. Status of assets and liabilities
Unit: RMB 10000
As a Closing As a
Amount at percentage percentage of
the end of of total
balance of the total assets at YoY change
Item the current assets at prior the end of the in percentage Reasons for changethe end of
period corresponding prior (%)the current period correspondingperiod period (%)
Mainly due to the
Held-for-trading redemption of bank wealth
financial assets 57485.11 1.33 209364.06 4.71 -72.54 management productsthat matured during this
period
Mainly due to the rise in
Prepayments 400409.16 9.27 153701.14 3.46 160.51 prepaid purchase
amounts for goods
Mainly due to investments
in T1-T2 office buildings at
the Global Digital Trade
Center and the
Inventory 140874.35 3.26 238532.95 5.37 -40.94 Company's HangzhouEnclave Project as well
as the delivery of the first
floor of commercial street
at the Global Digital Trade
Center
Mainly due to the addition
Construction in
progress 39867.72 0.92 18745.39 0.42 112.68
of the Global Service
Trade Center project
during this period
Mainly due to the addition
Intangible assets 790639.22 18.31 472296.65 10.64 67.40 of land for the GlobalService Trade Center
project during this period
Development Mainly due to the increase
expenditure 4625.76 0.11 479.33 0.01 865.05 in internal R&Dinvestment
Deferred income
tax assets 8736.77 0.20 6568.51 0.15 33.01
Employee Mainly due to the cash-out
compensation 20466.26 0.47 30556.78 0.69 -33.02 of the 2025 performance
payable bonus at the beginning ofthe year
Mainly due to the
suspension of declared
Other payables 252540.89 5.85 101398.15 2.28 149.06 but unpaid dividends of
RMB 1.546 billion during
this period
Non-current
liabilities due 7854.35 0.18 12098.80 0.27 -35.08
within one year
Long-term loan 28417.50 0.66 45622.44 1.03 -37.71
Other notes
None
2. Overseas assets
√Applicable □Not applicable
(1) Scale of assets
Among them: overseas assets amounted to RMB 608 million accounting for 1.41% of total
assets.
(2) Explanation of the high proportion of offshore assets
□Applicable √Not applicable
Other notes
None
3. Encumbrances on major assets as of the end of the reporting period
√Applicable □Not applicable
Unit: RMB
Item June 30 2026 2025
Monetary funds 35029191.03 25578290.90
Held-for-trading financial assets 474851137.20 308282354.62
Long-term equity investment 102918559.00 102918559.00
Other non-current financial assets 664361085.31 664361085.31
Other current assets 656792051.04 928684511.79
Total 1933952023.58 2029824801.62For details regarding restrictions on assets see Note VII.31 “Assets with RestrictedOwnership or Usage Rights” in Section VIII “Financial Statements.”
4. Other notes
□Applicable √Not applicable（iv） Analysis of investments
1. Overall analysis of external equity investment
√Applicable □Not applicable
As of the end of June 2026 the balance of external investments was RMB 9.1283481
billion (including trading financial assets of RMB 574.8511 million long-term equity investments
of RMB 6.4099942 billion other equity instrument investments of RMB 568.1858 million and
other non-current financial assets of RMB 1.5753170 billion) a decrease of RMB 1.6587085
billion compared to the balance of RMB 10.7870566 billion at the end of the previous year
(including trading financial assets of RMB 2.0936406 billion long-term equity investments of
RMB 6.4367734 billion other equity instrument investments of RMB 661.0021 million and other
non-current financial assets of RMB 1.5956405 billion) reflecting a decline of 15.38%. The main
changes are as follows:
I. As of the end of the reporting period the trading financial assets decreased by RMB
1.5187895 billion compared to the end of the previous year mainly due to a net decrease of
RMB 1.6853583 billion in bank wealth management and structured deposits during the
reporting period and an increase of RMB 1.665688 billion in fair value changes.II. As of the end of the reporting period long-term equity investments decreased by RMB
26.7792 million compared to the end of the previous year mainly due to:
1. Investment costs decreased by RMB 5.3855 million mainly due to the recovery of
investment principal amounting to RMB 5.2563 million from Yiwu Huishang Redbud Phase II
Investment Partnership (Limited Partnership).
2. Accruals under the equity method decreased by RMB 21.3938 million mainly due to the
investment income of RMB 104.6499 million recognized under the equity method during the
reporting period and cash dividends received amounting to RMB 126.0437 million.III. As of the end of the reporting period investments in other equity instruments decreased
by RMB 92.8162 million compared to the end of the previous year due to changes in the fair
value of Shenwan Hongyuan shares during the reporting period.IV. As of the end of the reporting period other non-current financial assets decreased by
RMB 20.3235 million compared to the end of the previous year due to the recovery of
investments in three companies including Suzhou Xiangzhong Venture Capital Partnership
(Limited Partnership) during the reporting period.(1)Major equity investments
□Applicable √Not applicable
(2)Major non-equity investments
√Applicable □Not applicable
Unit: RMB 10000
Amount invested Cumulative
Item Project during the current actualamount Progress period investmentamount
The four serviced apartments in the Market and Apartment sectors commenced operations in 2025. Five
Global high-rise commercial buildings (T3 to T7) have completed the completion acceptance filing and have been
Digital delivered. The T2 hotel in the Apartment sector and the Digital Trade Port commenced operations during the
Trade 832082.00 reporting period. The super high-rise T1 and T2 buildings are currently under construction of which: 23252.53 672840.28
Center 1. Steel structure hoisting of T1 main building crown completed at 47% and installation of 24th-floor curtainwall completed at 90%.
2. Installation of the curtain wall on the 24th floor of the T2 main building completed at 40%.
Global Phase I Project: Earthwork and support projects were 50% complete and the main structure of the basement
Service 962343.69 was 35% complete.Trade Phase II Project: Earthwork and retaining structure works: Earth removal completed (36m3) accounting for 12173.14 12173.14
Center 44% of the total volume.
(3)Financial assets measured at fair value
√Applicable □Not applicable
Unit: RMB 10000
Opening Profit and loss from Cumulative fair value Current Current Sale/redemption ClosingCategory of assets balance changes in fair value changes included in
provision for purchase amount in current Other
in the current period equity impairment amount period changes
balance of the
current period
Held-for-trading financial
assets 209364.06 16656.88 - - 140000.00 308535.83 - 57485.11
Other equity instrument
investments 66100.21 - 1092.03 - - - -9281.63 56818.58
Other non-current financial
assets 159564.05 - - - - 2032.35 - 157531.70
Total 435028.32 16656.88 1092.03 - 140000.00 310568.18 -9281.63 271835.39
Securities Investment
√Applicable □Not applicable
Unit: RMB 10000
Profit and loss Cumulative
Securities Security Security
Initial Source of Opening from changes fair value
code abbreviation investment funds book value in fair value in changes
Other Closing Accounting
cost the current included in changes book value item
period equity
Stocks 688802 MetaX 5999.99 Self-ownedfunds 30828.24 16656.88 - - 47485.12
Held-for-trading
financial assets
Other equity
Stocks 000166 Shenwan 55362.54 Self-ownedHongyuan funds 66100.21 - 1092.03 -9281.63 56818.58 instrumentinvestments
Stocks 833979 Tiantu 15519.21 Self-ownedInvestment funds 3661.35 - - - 3661.35
Other non-current
financial assets
Total / / 76881.74 / 100589.80 16656.88 1092.03 -9281.63 107965.05 /
Explanation of securities investment
□Applicable √Not applicable
PE investment
√Applicable □Not applicable
As of the end of this reporting period the book value of private equity fund investments was RMB 1.3439447 billion a decrease of RMB 20.3235
million from the balance of RMB 1.3642682 billion at the end of the previous year due to the recovery of investments in three companies including
Suzhou Xiangzhong Venture Capital Partnership (Limited Partnership).Derivatives investment
□Applicable √Not applicable
（v） Major sales of assets and equity
□Applicable √Not applicable
（vi） Analysis of major subsidiaries and associates
√Applicable □Not applicable
Information on major subsidiaries and equity investees contributing more than 10% to the Company's net profit
□Applicable √Not applicable
Acquisition and disposal of subsidiaries during the reporting period
√Applicable □Not applicable
company name Methods of acquisition and disposal of Impact on overall productionsubsidiaries during the reporting period operations and performance
Yixin Digital Wealth Management Co. Ltd. Established No Material Impact
Ningxia Yiwu China Commodities City Supply Chain Management Co. Ltd. Cancellation No Material Impact
Other notes
□Applicable √Not applicable（vii） Structured entities controlled by the Company
□Applicable √Not applicable
V. Other disclosure matters
（i） Possible risks
√Applicable □Not applicable
1. Risk of macroeconomic fluctuations. The profitability of the Company's main businesses including market operations hotels exhibitions and
goods sales is significantly correlated with the macroeconomic cycle. If global economic growth weakens and trade volume shrinks it may lead to a
decrease in the overall prosperity of the Yiwu small commodity market thereby adversely affecting booth leasing and related businesses.
2. Risk of insufficient talent reserves. With the acceleration of market transformation and the expansion of the Company’s business and with the
expansion of international trade warehousing and logistics supply chain overseas development information data industrial investment and
business operations the Company may face the risk of insufficient reserves of professional talents and inter-disciplinary talents.
3. External uncertainty risks. Geopolitical conflicts have caused increased uncertainty in international trade and the development of global market
trade is more complicated and severe than before; new technologies are accelerating to breed new opportunities and new trade models and new
formats are constantly emerging.（ii） Other disclosure matters
□Applicable √Not applicable
Section IV. Corporate Governance Environment and Society
I. Changes in directors and senior management of the Company
√Applicable □Not applicable
Description of
Name Title Change Reasons forchange reasons forchange
Director Chairman of the Audit
Committee of the Board of
HUANG Directors and Member of the
Zhongwei Remuneration and Appraisal Election Other Election
Committee of the Board of
Directors.HUANG
Yinghao Director Election Other Election
Director Chairman of the Audit Having reached
Committee of the Board of the maximum
HONG Directors and Member of the Resignation Other consecutive termJianqiao Remuneration and Appraisal of six years as an
Committee of the Board of independent
Directors. director
WANG
Zhengchao Vice general manager Hiring Other Hiring
SUN Tian Vice general manager Hiring Other Hiring
HUANG
Xiaoying Vice general manager Resignation
Job Organizational
reassignment reassignment
Changes in the Company's directors and senior management personnel
□Applicable √Not applicable
II. Plan for profit distribution or capital reserve into share capital
Plan for profit distribution or capital reserve into share capital made in the current period
Whether to distribute profit or convert capital reserve into share
capital Yes
Number of bonus shares for every 10 shares NA
Dividend payout per 10 shares (RMB) (including tax) 1.00
Number of shares converted from the capitalization of capital
reserve for every 10 shares NA
Explanation of the plan for profit distribution or capital reserve into share capital
The Company proposes to distribute a cash dividend of RMB 0.10 per share (before tax) to
all shareholders based on the total share capital registered on the record date for the equity
distribution. No bonus shares will be issued and no capital reserve will be capitalized into share
capital.As of the date of this announcement the total share capital of the Company was
5483559226 shares. Based on this figure the proposed cash dividend to be distributed
amounts to RMB 548355922.60 (before tax).From the date of this announcement until the implementation of the equity distribution
registration date if there is any change in the total share capital of the Company the Company
intends to maintain the distribution plan of 1 share per distribution unchanged and will adjust
the total amount of distribution accordingly with specific adjustment details to be announced
separately.III. 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（ii） Incentives that have not been disclosed in the temporary announcements or had
further progress
Incentive stock option
□Applicable √Not applicable
Other notes
□Applicable √Not applicable
Employee stock ownership plans
□Applicable √Not applicable
Other incentives
□Applicable √Not applicable
IV. Environmental information of listed companies and their principal subsidiaries
included in the list of enterprises required by law to disclose environmental
information
□Applicable √Not applicable
Other notes
□Applicable √Not applicable
V. Status of consolidation and expansion of the results of poverty alleviation rural
revitalization and other specific work
□Applicable √Not applicable
Section V. Significant Matters
I. Fulfillment of commitments
（i） Commitments made by the actual controller shareholders affiliates and acquirer of
the Company the Company itself and other related parties during the reporting
period or as of the reporting period
□Applicable √Not applicable
II. The Company’s funds occupied by its controlling shareholders or any of other
affiliates for non-operational purposes during the reporting period
□Applicable √Not applicable
III. Illegal guarantees
□Applicable √Not applicable
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
√ During the period the Company had major litigations or arbitrations □ During the period the
Company did not have any major litigations or arbitrations
（i） Litigations and arbitrations that have been disclosed in the temporary
announcements and have had no further progress
□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: RMB 10000
During the reporting period:
Whether the
Party litigation Results of
Plaintiff Beari Litigation Basic Value
(arbitration)
Defendant or litigation
Enforcem
(claiman ng information involved in
causes Status of ent of
t) (respondent)
Joint arbitratio of litigation litigation estimated litigation (arbitration
(arbitration) liabilitiesLiabil n (arbitration) (arbitration) ) and effect
judgment
and the
ities amount thereof
(award)
thereof
Hearings have
the Beijing Urban [(2026) Z been held but
Group Construction No Litigation MZ No. 17000.00 No no judgment / /Group Co. Ltd. 273] has been
made
Jingang Curtain
Wall Group Co. [(2026) Zthe 0782 MC Hearings have
Group Ltd. Zhejiang No Litigation 602.22 No not been held / /Qianghuang New No. yet
Materials Co. Ltd. 12726]
Zhejiang Baoye [(2026) Z
the Curtain Wall 0782 MC Hearings have
Group Decoration Co. No Litigation No. 579.42 No not been held /
Ltd. 17020] yet
Zhejiang Yiwu
Chuanglian
Market Investment
and Management
Co. Ltd. Hebei
Jiangcheng Real
the Estate [(2021) Z
Group Development Co. No Litigation 0782 MC 485.00 No Transferred / /
Ltd. Handan No. 6367]
Zheshang Yiwu
China
Commodities
Wholesale City
Co. Ltd.（iii） Other notes
□Applicable √Not applicable
VIII. Information of the listed company and its directors senior management controlling
shareholder and actual controller suspected of violations of laws and regulations
penalties and rectification
□Applicable √Not applicable
IX. Credit standing of the Company and its controlling shareholder and actual controller
√Applicable □Not applicable
There was no outstanding court judgment or overdue debt of a large amount involving the
Company or its controlling shareholder or actual controller during the reporting period.X. Significant related transactions
（i） Related transactions relating to regular corporate operation
1. Matters that have been disclosed in the temporary announcements and had no
further progress or changes
□Applicable √Not applicable
2. Matters that have been disclosed in the temporary announcements but had further
progress or changes
□Applicable √Not applicable
3. Matters that have not been disclosed in the temporary announcements
√Applicable □Not applicable
Unit: RMB
Reasons for
Percenta the large
Type of Contents Prici Price of Amount of ge in the difference
Related Relationship related-part
of
related-par ng related-part related-part
amount Settlem between the
of similar ent Market price price of thecounterparty y ty princi y y transacti transaction
transaction ple transaction transaction ons methodtransaction and(%) reference
market price
Property
Wholly-owne service
CCC Property d subsidiary Acceptance Mark
Service of the parent of labor
fee and
greening et
185665835.48 185665835.48 92.17 Account
service price transfer
185665835.48 /
company maintena
nce fee
Wholly-owne
d subsidiary Acceptance Construct MarkShangbo Yungu of labor et 8229180.21 8229180.21 4.08 Accountof the parent service ion fee price transfer
8229180.21 /
company
Yiwu Security Other related Acceptance Security Markof labor service et 6914204.49 6914204.49 3.43 AccountService Co. Ltd. parties service fee price transfer
6914204.49 /
Yourworld Entrusted
International managem
Conference Center Other related Providing ent fees Mark Account
subordinated to parties services and et 650630.85 650630.85 0.32 transfer 650630.85 /
Yiwu Market license price
Development Group fees
Total / / 201459851.03 100.00 / / /
Return of large-value goods sales
Illustration on related-party transactions The CCC Proper Service obtained the market property services andgreening maintenance contract through public bidding.（ii） Related transactions arising from asset acquisitions or equity acquisitions and sales
1. Matters that have been disclosed in the temporary announcements and had no
further progress or changes
□Applicable √Not applicable
2. Matters that have been disclosed in the temporary announcements but had further
progress or changes
□Applicable √Not applicable
3. Matters that have not been disclosed in the temporary announcements
□Applicable √Not applicable
4. If any agreement on the operating results is involved the achievement of operating
results during the reporting period shall be disclosed
□Applicable √Not applicable（iii） Related transactions arising from joint investments in external entities
1. Matters that have been disclosed in the temporary announcements and had no
further progress or changes
□Applicable √Not applicable
2. Matters that have been disclosed in the temporary announcements but had further
progress or changes
□Applicable √Not applicable
3. Matters that have not been disclosed in the temporary announcements
□Applicable √Not applicable（iv） Credits and liabilities with related parties
1. Matters that have been disclosed in the temporary announcements and had no
further progress or changes
□Applicable √Not applicable
2. Matters that have been disclosed in the temporary announcements but had further
progress or changes
□Applicable √Not applicable
3. Matters that have not been disclosed in the temporary announcements
□Applicable √Not applicable
（v） Financial business between the Company and the associated financial companies
the Company's holding financial company and the related parties
□Applicable √Not applicable（vi） Other significant related transactions
□Applicable √Not applicable（vii） Other
□Applicable √Not applicable
XI. Significant contracts and their execution
（i） Trusteeship contracting and leases
□Applicable √Not applicable
（ii） Material guarantees fulfilled or not completely fulfilled in the reporting period
√Applicable □Not applicable
Unit: RMB 10000
External guarantees provided by the Company (excluding those provided for the subsidiaries)
Relations
hip
between Amount Starting ExpiryThe Date of Whether the Whether Overdue
the of guarantee date of date ofGuarantor guarant the the Type of Principa Collateral
Counter Whether it is a
(signing date guarantee the amount of related-party
guarantor
eed guarante of the
has been guarantee the guarant Relationship
and the agreement) guarante guarant
guarantee l debts (if any)
e fulfilled fully is overdue guarantee ees
guarantee
Listed e ee
Company
Hangzhou Joint andWholly-ow
Shangbo ned House severalpurchaser 408.68 / / / liability / No No No NA No No NANanxing subsidiary guarantee
Amount of guarantees made during the reporting period (excluding the
guarantees provided for subsidiaries) -10.85
Balance of guarantees at the end of the reporting period (A) (excluding
the guarantees provided for subsidiaries) 408.68
The Company's guarantees for its subsidiaries
Amount of guarantees provided for subsidiaries during the reporting
period -
Balance of guarantees provided for subsidiaries at the end of the
reporting period (B) -
Total guarantees provided by the Company (including those provided for the subsidiaries)
Total amount of guarantees (A+B) 408.68
Ratio of the total amount of guarantees to the Company’s net assets
(%) 0.02
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 exceeds 70% (D) -
Portion of total amount of guarantees in excess of 50% of net assets (E) -
Total (C+D+E) -
Statement on the joint and several liability that may be assumed due to
outstanding guarantees NA
According to relevant regulations the Group is required to provide mortgage loan
guarantees to the bank for the sale of commercial housing before the purchaser of the
housing has completed the formalities for obtaining the property ownership certificate. The
Statement on guarantees outstanding guarantee amount as of June 30 2026 was RMB 4086827.78 (December 31
2025: RMB 4195330.16). Those guarantees would be released after the issuance of the
property ownership certificates and are thus little likely to incur losses. Therefore the
management believed that it was not necessary to make provision for the guarantees.（iii） Other significant contracts
√Applicable □Not applicable
Contract
No. Contract name Signing parties price (RMBten
thousand).Hangzhou Shangbo Nanxing
1 General Contracting for CCC Group Hangzhou Real Estate Co. Ltd. ZhejiangEnclave Project Zhong'an Construction Group 36227.90
Co. Ltd.Yiwu Yundailu Data
2 Construction Contract for the Belt and Road Technology Co. Ltd.;Artificial Intelligence Innovation Center Project Yuanyang Construction Group 18114.42
Co. Ltd.
3 Phase I project of the 5th District Market South The Company Yiwu HaoyangProject in Futian Subdistrict Construction Co. Ltd. 12523.18
Earthwork and support engineering for Block B of
4 the 5th District Market South Project in Futian The Company Zhejiang 8025.19
Subdistrict Xinhao Construction Co. Ltd.Earthwork and support engineering for Block A of The Company Zhejiang
5 the 5th District Market South Project in Futian Xiesheng Construction Co. 4849.52
Subdistrict Ltd.XII. Description of progress in the use of raised funds
□Applicable √Not applicable
XIII. Other significant matters
□Applicable √Not applicable
Section VI. Changes in Shares and Information on Shareholders
I. Changes in shares
（i） Table of changes in shares
1. Table of changes in shares
During the reporting period the total number of shares and the capital structure of the Company
remained unchanged.
2. Explanation of changes in shares
□Applicable √Not applicable
3. The impact of share changes on financial indicators such as earnings per share and
net assets per share during the period from the end of the reporting period to the
disclosure date of the semi-annual report (if any)
□Applicable √Not applicable
4. Other matters the Company deems it necessary to disclose or required by the
securities regulatory authority to be disclosed
□Applicable √Not applicable（ii） Changes in restricted shares
□Applicable √Not applicable
II. Information about shareholders
（i） Total number of shareholders:
Number of common shareholders as of the end of
the reporting period 208800
As of the end of the reporting period the total
number of preferred shareholders whose voting 0
rights have been restored（ii） Shareholdings of the top 10 shareholders and top 10 holders of tradable shares (or
shareholders not subject to trading restrictions)
Unit: share
Shareholdings of the top ten shareholders (excluding shares lent through refinancing)
Change Number of Number of Pledge mark or
Shareholder during the shares held at Propor non-tradabl freezing Ownership of
(full name) reporting the end of the tionreporting (%) e shares Status of
shareholder
period held shares Qty.period
Yiwu China State-own
Commodities City - 3091064692 56.37 - No - ed legal
Holdings Limited person
Zhejiang Zhecai State-own
Capital Management - 129392828 2.36 - No - ed legal
Co. Ltd. person
Hong Kong Central
Clearing Company -185374503 106029096 1.93 - No - Unknown
Limited
Yiwu Urban Investment State-own
and Construction - 42240394 0.77 - No - ed legal
Group Co. Ltd. person
Ruizhong Life
Insurance Co. Ltd. - 30595453 31915053 0.58 - No - Other
own funds
Zhejiang Zhexin State-own
Holdings Co. Ltd. - 22832755 0.42 - No - ed legalperson
Monetary Authority of
Macao - own funds 9033600 19993700 0.36 - No - Other
National Social
Security Fund 113 18675400 18675400 0.34 - No -- Other
Portfolio
Kuwait Investment
Authority - own funds 8023900 17783900 0.32 - No Other
Domestic
Xiao Bihong 5301200 14069698 0.26 - No - natural
person
Shareholdings of the top ten shareholders not restricted for sale (excluding shares lent through refinancing)
Shareholder Number of tradable shares held Type and quantity of sharesType Qty.RMB-deno
Yiwu China Commodities City Holdings 3091064692 minatedLimited common 3091064692
shares
RMB-deno
Zhejiang Zhecai Capital Management
Co. Ltd. 129392828
minated
common 129392828
shares
RMB-deno
Hong Kong Central Clearing Company
Limited 106029096
minated
common 106029096
shares
RMB-deno
Yiwu Urban Investment and minated
Construction Group Co. Ltd. 42240394 common 42240394
shares
RMB-deno
Ruizhong Life Insurance Co. Ltd. - own
funds 31915053
minated
common 31915053
shares
RMB-deno
Zhejiang Zhexin Holdings Co. Ltd. 22832755 minatedcommon 22832755
shares
RMB-deno
Monetary Authority of Macao - own minated
funds 19993700 common 19993700
shares
RMB-deno
National Social Security Fund 113 minated
Portfolio 18675400 common 18675400
shares
RMB-deno
Kuwait Investment Authority - own minated
funds 17783900 common 17783900
shares
RMB-deno
XIAO Bihong 14069698 minatedcommon 14069698
shares
Explanation of the special account for
repurchased shares among the top ten NA
shareholders
Explain if any of the shareholders above
were involved in entrusting/being
entrusted with voting rights or waiving NA
voting rights
Zhejiang Provincial Financial Development Co. Ltd. the controlling
Explanation on the relationship or shareholder of Zhejiang Zhecai Capital Management Co. Ltd. owns a
concerted action between the above 9.44% stake in Yiwu State-owned Capital Operation Co. Ltd. which is
shareholders the controlling shareholder of Yiwu Market Development Group Co. Ltd.in turn the controlling shareholder of Yiwu China Commodities City
Holdings Limited.Explanation on the preferred
shareholders whose voting rights had
been restituted and the quantity of NA
shares held thereby
Participation of shareholders holding more than 5% of the shares top ten shareholders and top
ten shareholders with non-restricted tradable shares in the lending of shares through
refinancing
□Applicable √Not applicable
Changes in the top ten shareholders and the top ten shareholders with non-restricted tradable
shares compared to the prior corresponding period due to lending or return of shares through
refinancing
□Applicable √Not applicable
Number of shares held by the top 10 shareholders subject to trading restrictions and the trading
restrictions
□Applicable √Not applicable（iii） Strategic investors or general corporations becoming top ten shareholders due to
placing of new shares
□Applicable √Not applicable
III. Directors and senior management
（i） Changes in shareholding of current and resigning directors and senior management
during the reporting period
□Applicable √Not applicable
Statement on other matters
□Applicable √Not applicable（ii） Equity incentives granted to directors and senior executives during the reporting
period
□Applicable √Not applicable（iii） Other notes
□Applicable √Not applicable
IV. Changes in controlling shareholder or actual controller
□Applicable √Not applicable
V. Preferred Shares
□Applicable √Not applicable
Section VII. Bonds
I. Corporate bonds (including enterprise bonds) and non-financial corporate debt financing instruments
√Applicable □Not applicable
（i） Corporate bonds (including enterprise bonds)
√Applicable □Not applicable
1. Basic information of corporate bonds
Unit: RMB 100 million Currency: RMB
The most Whether
recent Outstan Interes Method of there is a
Name of bond Abbreviat Code Issue Value redemption Maturity ding t rate principal Trading
Lead Trustee Investor Trade risk of
ion date date date after date amount (%) repayment and venue
underwrite manager Suitability mechanis delisting or
August 31 interest payment r Arrangements m termination
2026 of listing
Zhejiang China
Commodities City Simple interest is
Group Co. Ltd. calculated the
publicly issued 25 YIWU Nov Nov interest payment Shanghai Huatai Huatai Professional
corporate bonds to CCC 01 244143 13 13 /
Nov 13
2028 8 1.94 frequency is Stock United United institutional
Public No
professional 2025 2025 annual and the Exchange Securities Securities investors
trading
investors in principal is
2025(Issue 1) repaid once due.
The Company’s mitigation measures against risks of bond delisting or de-registration
□Applicable √Not applicable
2. Triggering and execution of issuer or investor choice clauses and investor protection clauses
□Applicable √Not applicable
3. Changes in credit ratings
□Applicable √Not applicable
Other notes
Shanghai New Century Credit Rating Investment Service Co. Ltd. issued the Zhejiang China Commodities City Group Co. Ltd. Credit Rating
Report [XSJQP (2026) 020276] on June 26 2026. According to the report the Company's main credit rating is AAA and the rating outlook is stable.
4. Changes variations and execution of guarantees debt repayment plans and other debt protection measures during the reporting
period and their impacts
□Applicable √Not applicable（ii） Fundraising through corporate bonds
□ The Company's bonds involved the use or rectification of the raised funds during the reporting period√ All corporate bonds of the Company did not
involve the use of raised funds or rectification during the reporting period
(1) Proceeds from fundraising are earmarked for specific projects
□Applicable √Not applicable（iii） Other matters that should be disclosed for special bond varieties
□Applicable √Not applicable（iv） Important matters related to corporate bonds during the reporting period
□Applicable √Not applicable
（v） Non-financial corporate debt financing instruments in the interbank bond market
√Applicable □Not applicable
1. Basic information of non-financial corporate debt financing instruments
Unit: RMB 100 million Currency: RMB
Trad Whether there
Outstan Method of Investor e is a risk of
Name of bond Abbreviat
terminating the
ion Code
Issue Value Maturity Interest principal Trading appropriate
date date date dingamount rate (%) repayment and venue arrangemen
mec transaction in
the stock
interest payment ts (if any) hanism market
Zhejiang China 25 Annual interest
Commodities City Zhejiang 10258135 Mar paymentGroup Co. Ltd.’s Yiwu 7 25–26
Mar 27 Mar 27 Interbank
2025 MTN (Issue CCC 2025 2025 2028
5 2.10 principal
repayment at market
No No
1) MTN001 maturity
Zhejiang China 25 Annual interest
Commodities City Zhejiang payment
Group Co. Ltd.’s Yiwu 10258182 Apr 23 Apr 24 Apr 24 10 2.09 principal Interbank
2025 MTN (Issue CCC 6 2025 2025 2028 repayment at market
No No
2) MTN 002 maturity
Zhejiang China 25 Annual interest
Commodities City Zhejiang Jul payment
Group Co. Ltd.'s Yiwu 102582917 15–16
Jul 17 Jul 17 Interbank
2025 MTN (Issue CCC 2025 2025 2028
5 1.89 principal No No
repayment at market
3) MTN 003 maturity
The Company's measures to deal with the risk of bond termination
□Applicable √Not applicable
Bonds overdue
□Applicable √Not applicable
Explanation of bonds overdue
□Applicable √Not applicable
2. Triggering and execution of issuer or investor choice clauses and investor
protection clauses
□Applicable √Not applicable
3. Changes in credit ratings
□Applicable √Not applicable
Other notes
Shanghai New Century Credit Rating Investment Service Co. Ltd. issued the Zhejiang
China Commodities City Group Co. Ltd. Credit Rating Report [XSJQP (2026) 020276] on June
26 2026. According to the report the Company's main credit rating is AAA and the rating
outlook is stable.
4. Execution and changes of guarantees debt repayment plans and other debt
protection measures during the reporting period and their impact
□Applicable √Not applicable
Other notes
None
5. Explanation of other situations regarding non-financial corporate debt financing
instruments
□Applicable √Not applicable（vi） Consolidated loss of the reporting period over 10% of net assets as at the end of last
year
□Applicable √Not applicable（vii） Violations of regulations and agreements
Violations of laws regulations self-regulatory rules articles of association information
disclosure management systems and breaches of covenants or commitments in the bond
prospectus during the reporting period and the impact of such circumstances on the rights and
interests of bond investors
□Applicable √Not applicable（viii） Main accounting data and financial indicators
√Applicable □Not applicable
Unit: RMB 10000
Major indicator Jun 30 2026 Dec 31 2025 Change of Jun 30 2026 Reasonsover Dec 31 2025 (%) for change
Current ratio 78.40% 113.92% Down 35.52 ppt
Quick ratio 68.40% 95.64% Down 27.24 ppt
Debt-to-asset ratio (%) 48.61 48.14 Up 0.47 ppt
Jan-Jun 2026 Jan-Jun 2025 YoY change (%) Reasonsfor change
Net profit after deducting non-recurring
gains and losses 182315.34 166817.43 9.29
EBITDA to total debt ratio 1.05 0.37 183.78
Interest coverage ratio 73.34 24.97 193.71
Cash interest protection multiple 13.66 22.49 -39.26
EBITDA-to-interest coverage ratio 89.30 30.41 193.65
Loan repayment rate (%) 100 100 -
Interest payment rate (%) 100 100 -
II. Convertible bonds
□Applicable √Not applicable
Section VIII. Financial Report
I. Auditor's Report
□Applicable √Not applicable
II. Financial statements
Consolidated Balance Sheet
June 30 2026
Prepared by: Zhejiang China Commodities City Group Co. Ltd.Unit: RMB
Item Notes June 30 2026 December 31 2025
Current assets:
Monetary funds 3359496577.21 6815989217.00
Held-for-trading financial assets 574851137.20 2093640647.73
Accounts receivable 404730199.98 437842602.96
Prepayments 4004091609.38 1537011402.30
Other receivables 158098409.97 188280323.27
Inventory 1408743513.20 2385329502.34
Non-current assets due within one year 48065999.99 48073333.33
Other current assets 1088029039.79 1352907210.14
Total current assets 11046106486.72 14859074239.07
Non-current assets:
Long-term receivables 268652205.76 263820453.02
Long-term equity investment 6409994208.72 6436773452.31
Other equity instrument investments 568185841.14 661002071.26
Other non-current financial assets 1575316956.32 1595640456.59
Investment Property 5796171719.61 6355807803.28
Fixed assets 7540344417.07 7695778566.77
Construction in progress 398677168.91 187453942.15
Right-of-use assets 119589044.32 133848922.89
Intangible assets 7906392214.75 4722966520.46
Among them: data resources 27387098.65 29020570.76
Development expenditure 46257613.48 4793276.48
Goodwill 284916367.87 284916367.87
Long-term deferred expenses 398427338.02 423899385.08
Deferred income tax assets 87367725.90 65685094.81
Other non-current assets 732921382.51 713975826.35
Total non-current assets 32133214204.38 29546362139.32
Total assets 43179320691.10 44405436378.39
Current liabilities:
Accounts payable 1936920569.75 1995926945.56
Advance receipts 200279463.49 238030423.42
Contract liabilities 7564884552.80 7463213194.29
Employee compensation payable 204662557.79 305567789.70
Tax payable 609346619.53 760523819.93
Other payables 2525408939.65 1013981521.93
Including: payable dividends 1546587346.00 -
Non-current liabilities due within one year 78543508.32 120988024.00
Other current liabilities 969360892.98 1144658143.19
Total current liabilities 14089407104.31 13042889862.02
Non-current liabilities:
Long-term loans 284175043.55 456224418.38
Bonds payable 2799222788.66 2799044726.49
Lease liabilities 123826782.28 129609121.91
Deferred income 114181350.49 116223417.33
Deferred income tax liabilities 167429360.83 129241774.50
Other non-current liabilities 3411651616.22 4703511721.48
Total non-current liabilities 6900486942.03 8333855180.09
Total liabilities 20989894046.34 21376745042.11
Owners’ (or Shareholders’) Equity:
Paid-in capital (share capital) 5483559226.00 5483559226.00
Capital reserve 2407539312.32 2407539312.32
Other comprehensive income 14288145.58 97611758.98
Surplus reserve 2469640355.95 2469640355.95
General risk reserve 2879083.68 2879083.68
Undistributed profit 11724101969.10 12486681371.95
Total equity attributable to owners
(shareholders) of the parent company 22102008092.63 22947911108.88
Non-controlling interest 87418552.13 80780227.40
Total owners’ equity (or shareholders’ equity) 22189426644.76 23028691336.28
Total liabilities and owners’ equity (or
shareholders’ equity) 43179320691.10 44405436378.39
Head of the Company: CHEN Dezhan Principal in charge of accounting: BAO Hua Head of the
accounting department: ZHAO Difang
Parent Company Balance Sheet
June 30 2026
Prepared by: Zhejiang China Commodities City Group Co. Ltd.Unit: RMB
Item Notes June 30 2026 December 31 2025
Current assets:
Monetary funds 2719861187.64 6112150821.15
Held-for-trading financial assets 100000000.00 1785358293.11
Accounts receivable 6348244.58 7114258.38
Prepayments 29468417.80 7708559.03
Other receivables 72918986.21 68315773.58
Inventory 798816137.70 1034771826.79
Other current assets 2948794880.92 2708433206.61
Total current assets 6676207854.85 11723852738.65
Non-current assets:
Long-term receivables 4785.99 4785.99
Long-term equity investment 10753359444.76 10423742617.62
Other equity instrument investments 568185841.14 661002071.26
Other non-current financial assets 226071150.27 226071150.27
Investment Property 4796589368.01 4941653871.66
Fixed assets 7234545090.12 7341554439.30
Construction in progress 194279301.89 98056296.95
Right-of-use assets 87226661.38 90251863.48
Intangible assets 7294288416.30 4095896105.81
Long-term deferred expenses 378016358.76 399492735.13
Deferred income tax assets 86056973.75 60943291.23
Other non-current assets 619961608.17 602113360.60
Total non-current assets 32238585000.54 28940782589.30
Total assets 38914792855.39 40664635327.95
Current liabilities:
Accounts payable 1596954677.79 1752807184.88
Advance receipts 201117516.23 211527752.55
Contract liabilities 4631577759.73 5329539614.69
Employee compensation payable 200692234.80 253063627.03
Tax payable 562324905.58 647857368.16
Other payables 2266658565.85 731173023.58
Including: payable dividends 1546587346.00 -
Non-current liabilities due within one year 57242580.34 99791845.62
Other current liabilities 2505375381.15 2185187110.81
Total current liabilities 12021943621.47 11210947527.32
Non-current liabilities:
Long-term loans 238220000.00 407230096.66
Bonds payable 2799222788.66 2799044726.49
Lease liabilities 105317288.63 101462946.38
Deferred income 86403113.73 88445180.57
Other non-current liabilities 3411651616.22 4703511721.48
Total non-current liabilities 6640814807.24 8099694671.58
Total liabilities 18662758428.71 19310642198.90
Owners’ (or Shareholders’) Equity:
Paid-in capital (share capital) 5483559226.00 5483559226.00
Capital reserve 1954316050.32 1954316050.32
Other comprehensive income 10687351.36 80299523.95
Surplus reserve 2469586880.12 2469586880.12
Undistributed profit 10333884918.88 11366231448.66
Total owners’ equity (or shareholders’ equity) 20252034426.68 21353993129.05
Total liabilities and owners’ equity (or
shareholders’ equity) 38914792855.39 40664635327.95
Head of the Company: CHEN Dezhan Principal in charge of accounting: BAO Hua Head of the
accounting department: ZHAO Difang
Consolidated Income Statement
January to June 2026
Unit: RMB
Item Notes H1 2026 H1 2025
I. Gross revenue 10281542979.96 7712799130.26
In which: operating revenue 10281542979.96 7712799130.26
II. Gross cost 7913618416.16 5697849971.22
In which: Operating cost 7295331445.25 5279388914.07
Taxes and surcharges 248329205.65 90271292.43
Sales expenses 128955771.06 104941801.54
Administrative expenses 212619854.30 196210098.67
R&D expenses 28508822.08 9884690.75
Financial expenses -126682.18 17153173.76
In which: interest expenses 32710520.75 50964708.06
Interest income 40786828.04 38102947.69
Plus: other income 13566525.44 5161514.77
Investment income (loss is indicated by “-”) 126780380.20 122900781.16
In which: income from investment in
associates and joint ventures 104649928.01 108719697.39
Changes in fair value (loss is indicated by “-”) 166568782.58 -251495.99
Credit impairment loss (loss is
indicated by “-”) -1723922.47 27423.78
III. Operating profit (loss is indicated by “-”) 2673116329.55 2142787382.76
Plus: income from non-operating activities 8440683.68 4989777.15
Less: expenses from non-operating
activities 3888958.95 43395.63
IV. Profits before tax (loss is indicated by “-”) 2677668054.28 2147733764.28
Less: income tax 691779213.42 450669584.71
V. Net profits (net loss is indicated by “-”) 1985888840.86 1697064179.57
(I) Categorized by continuity of operation
Net profits from continuing operation (net
loss is indicated by “-”) 1985888840.86 1697064179.57
(II) Categorized by ownership
Net profits attributable to shareholders of the parent
company (net loss is indicated by “-”) 1979200210.15 1690936276.69
Non-controlling interest(net loss is
indicated by “-”) 6688630.71 6127902.88
VI. Other comprehensive income net after tax -83373919.38 -24805955.52
(I) Other comprehensive income net after tax attributable
to owners of the parent company -83323613.40 -24757538.57
1. Other comprehensive income that
cannot be reclassified into profit and loss -69612172.59 -30102561.12
(3) Changes in fair value of investments in
other equity instruments -69612172.59 -30102561.12
2. Other comprehensive income that will
be reclassified into profit and loss -13711440.81 5345022.55
(6) Difference arising from the translation of
foreign currency financial statements -13711440.81 5345022.55
(II) Other comprehensive income net after tax
attributable to minority shareholders -50305.98 -48416.95
VII. Total comprehensive income 1902514921.48 1672258224.05
(I) Total comprehensive income
attributable to owners of the parent company 1895876596.75 1666178738.12
(II) Total comprehensive income
attributable to minority shareholders 6638324.73 6079485.93
VIII. Earnings per share:
(I) Basic earnings per share 0.36 0.31
(II) Diluted earnings per share 0.36 0.31
In this period if a business combination under common control occurs the net profit realized by
the transferred party before the combination was 0 and the net profit realized by the transferred
party in the previous period was 0.Head of the Company: CHEN Dezhan Principal in charge of accounting: BAO Hua Head of the
accounting department: ZHAO Difang
Parent company income statement
January to June 2026
Unit: RMB
Item Notes H1 2026 H1 2025
I. Operating revenue 3957698815.08 2548219329.59
Less: Operating cost 1285258324.15 601142197.45
Taxes and surcharges 230618795.03 78379801.54
Sales expenses 142212497.61 114514217.20
Administrative expenses 117005873.25 93509662.00
Financial expenses -4300391.48 18180241.75
In which: interest expenses 28955352.88 50092903.10
Interest income 33734857.57 33884399.12
Plus: other income 2966173.48 3038560.90
Investment income (loss is
indicated by “-”) 102006265.82 133842221.97
In which: income from investment in
associates and joint ventures 95486827.14 115710572.17
Credit impairment loss (loss is
indicated by “-”) -255440.62 25703.92
II. Operating profits (loss is indicated by “-”) 2291620715.20 1779399696.44
Plus: income from non-operating
activities 7114957.79 1340592.10
Less: expenses from non-operating
activities 3833124.39 9034.40
III. Profits before tax (loss is indicated by
“-”) 2294902548.60 1780731254.14
Less: income tax 585469465.38 406373263.03
IV. Net profits (net loss is indicated by “-”) 1709433083.22 1374357991.11
(I) Categorized by continuity of
operation(net loss is indicated by “-”) 1709433083.22 1374357991.11
V. Other comprehensive income net after
tax -69612172.59 -30102561.12
(I) Other comprehensive income that
cannot be reclassified as profit or loss -69612172.59 -30102561.12
3. Changes in fair value of
investments in other equity instruments -69612172.59 -30102561.12
VI. Total comprehensive income 1639820910.63 1344255429.99
Head of the Company: CHEN Dezhan Principal in charge of accounting: BAO Hua Head of the
accounting department: ZHAO Difang
Consolidated Cash Flow Statement
January to June 2026
Unit: RMB
Item Notes H1 2026 H1 2025
I. Cash flows generated from operating activities:
Cash received from sale of goods and
rendering of services 10083439362.54 9227217158.48
Cash received for taxes and surcharges
refunded 50713964.53 43401916.85
Other cash receipts relating to operating
activities 182095429.44 257187858.18
Sub-total of cash inflow from operating
activities 10316248756.51 9527806933.51
Cash paid for goods and services 8599549856.93 6527953072.29
Cash paid to and on behalf of employees 361601920.90 319845111.92
Payments of taxes 1105202682.97 972201028.54
Other cash payments relating to operating
activities 378689373.65 324953233.29
Sub-total of cash outflow from operating
activities 10445043834.45 8144952446.04
Net cash flow from operating
activities -128795077.94 1382854487.47
II. Cash flows generated from investing activities:
Cash received from recovery of
investment 3100017380.10 419023048.91
Cash received from investment income 154143448.24 24080119.33
Net cash received from disposal of
property plant and equipment intangible 5047965.92 163092.36
assets and other long-term assets
Other cash receipts relating to investing
activities 1532605640.79 5562422.74
Sub-total of cash inflow from investing
activities 4791814435.05 448828683.34
Cash paid to acquire and construct fixed
assets intangible assets and other 3541926484.37 1235651790.25
long-term assets
Cash paid to acquire investments 1400000000.00 88000000.00
Other cash paid related to investing
activities 148165000.00 17036269.50
Sub-total of cash outflow from investing
activities 5090091484.37 1340688059.75
Net cash flow from investing activities -298277049.32 -891859376.41
III. Cash flows generated from financing activities:
Cash received from issuing bonds - 2498964794.52
Sub-total of cash inflow from financing
activities - 2498964794.52
Cash paid for debt repayment 208684000.00 2661610000.00
Cash paid for distribution of dividends or
profits or payment of interest 1224535464.92 1167876227.37
Other cash paid related to financing
activities 28722042.25 11290804.49
Sub-total of cash outflow from financing
activities 1461941507.17 3840777031.86
Net cash flow from financing activities -1461941507.17 -1341812237.34
IV. The impact of exchange rate -2481985.24 1090768.24
fluctuations on cash and cash
equivalents
V. Net increase in cash and cash
equivalents -1891495619.67 -849726358.04
Plus: opening balance of cash and cash
equivalents 4284849911.50 5528368665.98
VI. Closing balance of cash and cash
equivalents 2393354291.83 4678642307.94
Head of the Company: CHEN Dezhan Principal in charge of accounting: BAO Hua Head of the
accounting department: ZHAO Difang
Parent Company Cash Flow Statement
January to June 2026
Unit: RMB
Item Notes H1 2026 H1 2025
I. Cash flows generated from operating activities:
Cash received from sale of goods and
rendering of services 2201154304.36 3246027153.99
Other cash receipts relating to operating
activities 113592818.47 59747542.35
Sub-total of cash inflow from operating
activities 2314747122.83 3305774696.34
Cash paid for goods and services 656838997.53 687394953.38
Cash paid to and on behalf of
employees 185015186.74 142214384.91
Payments of taxes 942406659.46 876659941.59
Other cash payments relating to
operating activities 285740090.69 163126136.74
Sub-total of cash outflow from
operating activities 2070000934.42 1869395416.62
Net cash flow from operating activities 244746188.41 1436379279.72
II. Cash flows generated from investment activities:
Cash received from recovery of
investment 3085256302.57 1560100218.91
Cash received from investment income 137921429.22 28033452.66
Net cash received from disposal of
property plant and equipment intangible 5046236.43 146812.16
asset and other long-term assets
Other cash receipts relating to investing
activities 3843330448.95 -
Sub-total of cash inflow from investing
activities 7071554417.17 1588280483.73
Cash paid to acquire and construct fixed
assets intangible assets and other 3467361121.90 886352218.97
long-term assets
Cash paid to acquire investments 1765430000.00 1819675529.10
Other cash paid related to investing
activities 2355925000.00 17036269.50
Sub-total of cash outflow from
investing activities 7588716121.90 2723064017.57
Net cash flow from investing
activities -517161704.73 -1134783533.84
III. Cash flows generated from financing activities:
Cash received from issuing bonds - 2498964794.52
Sub-total of cash inflow from financing
activities - 2498964794.52
Cash paid for debt repayment 208090000.00 2661610000.00
Cash paid for distribution of dividends or
profits or payment of interest 1223979445.37 1167876227.37
Other cash paid related to financing
activities 18297931.17 374465.75
Sub-total of cash outflow from
financing activities 1450367376.54 3829860693.12
Net cash flow from financing
activities -1450367376.54 -1330895898.60
IV. The impact of exchange rate - -
fluctuations on cash and cash
equivalents
V. Net increase in cash and cash
equivalents -1722782892.86 -1029300152.72
Plus: opening balance of cash and cash
equivalents 3737266284.11 4990598748.40
VI. Closing balance of cash and cash
equivalents 2014483391.25 3961298595.68
Head of the Company: CHEN Dezhan Principal in charge of accounting: BAO Hua Head of the
accounting department: ZHAO Difang
Consolidated Statement of Changes in Owners' Equity
January to June 2026
Unit: RMB
H1 2026
Item Equity attributable to owners of the parent company
Non-controlli Total owners’
Other
Paid-in capital General risk Undistributed ng interest equity
Capital reserve comprehensive Surplus reserve Sub-total
(share capital) reserve profit
income
I. Closing balance of the
previous year 5483559226.00 2407539312.32 97611758.98 2469640355.95 2879083.68 12486681371.95 22947911108.88 80780227.40 23028691336.28
II. Opening balance of
the current year 5483559226.00 2407539312.32 97611758.98 2469640355.95 2879083.68 12486681371.95 22947911108.88 80780227.40 23028691336.28
III. YoY change
(decrease is indicated by - - -83323613.40 - - -762579402.85 -845903016.25 6638324.73 -839264691.52
“-”)
(I) Total comprehensive
income - - -83323613.40 - - 1979200210.15 1895876596.75 6638324.73 1902514921.48
(III) Profit distribution - - - - - -2741779613.00 -2741779613.00 - -2741779613.00
3.Distribution to owners
(or shareholders) - - - - - -2741779613.00 -2741779613.00 - -2741779613.00
IV. Closing balance of
the current period 5483559226.00 2407539312.32 14288145.58 2469640355.95 2879083.68 11724101969.10 22102008092.63 87418552.13 22189426644.76
H1 2025
Equity attributable to owners of the parent company
Item
Non-controlling Total owners’
Other
Paid-in capital Less: treasury General risk Undistributed interest equity
Capital reserve comprehensive Surplus reserve Sub-total
(share capital) stocks reserve profit
income
I. Closing
balance of the 5483645926.00 2377625094.09 33828483.60 111061460.18 2161802266.09 2959744.97 10400490449.73 20503756457.46 68703426.12 20572459883.58
previous year
II. Opening
balance of the 5483645926.00 2377625094.09 33828483.60 111061460.18 2161802266.09 2959744.97 10400490449.73 20503756457.46 68703426.12 20572459883.58
current year
III. YoY
change
(decrease is - 303042.85 -32162497.20 -24757538.57 - - -118666878.89 -110958877.41 6079485.93 -104879391.48
indicated by
“-”)
(I) Total
comprehensive - - - -24757538.57 - - 1690936276.69 1666178738.12 6079485.93 1672258224.05
income
(II)Owners’
contribution to
and reduction - 303042.85 -32162497.20 - - - - 32465540.05 - 32465540.05
in capital
3. Amount of
share-based
payment into - 303042.85 -32162497.20 - - - - 32465540.05 - 32465540.05
owner’s equity
(III) Profits
distribution - - - - - - -1809603155.58 -1809603155.58 - -1809603155.58
3. Distribution
to owners (or - - - - - - -1809603155.58 -1809603155.58 - -1809603155.58
shareholders)
IV. Closing
balance of the 5483645926.00 2377928136.94 1665986.40 86303921.61 2161802266.09 2959744.97 10281823570.84 20392797580.05 74782912.05 20467580492.10
current period
Head of the Company: CHEN Dezhan Principal in charge of accounting: BAO Hua Head of the accounting department: ZHAO Difang
Statement of Changes in the Parent Company Shareholders' Equity
January to June 2026
Unit: RMB
H1 2026
Item Paid-in capital (share Other
capital) Capital reserve comprehensive Surplus reserve Undistributed profit Total owners’ equityincome
I. Closing balance of the previous year 5483559226.00 1954316050.32 80299523.95 2469586880.12 11366231448.66 21353993129.05
II. Opening balance of the current year 5483559226.00 1954316050.32 80299523.95 2469586880.12 11366231448.66 21353993129.05
III. YoY change (decrease is indicated by “-”) - - -69612172.59 - -1032346529.78 -1101958702.37
(I) Total comprehensive income - - -69612172.59 - 1709433083.22 1639820910.63
(III) Profit distribution - - - - -2741779613.00 -2741779613.00
2. Distribution to owner (or shareholders) - - - - -2741779613.00 -2741779613.00
IV. Closing balance of the current period 5483559226.00 1954316050.32 10687351.36 2469586880.12 10333884918.88 20252034426.68
H1 2025
Item Paid-in capital Capital reserve Less: treasury
Other
(share capital) stocks comprehensive Surplus reserve
Undistributed Total owners’
income profit equity
I. Closing balance of the previous year 5483645926.00 1925838418.23 33828483.60 88047505.40 2161748790.26 10405287236.14 20030739392.43
II. Opening balance of the current year 5483645926.00 1925838418.23 33828483.60 88047505.40 2161748790.26 10405287236.14 20030739392.43
III. YoY change (decrease is indicated by
“-”) - 303042.85 -32162497.20 -30102561.12 - -435245164.47 -432882185.54
(I) Total comprehensive income - - - -30102561.12 - 1374357991.11 1344255429.99
(II)Owners’ contribution to and reduction in
capital - 303042.85 -32162497.20 - - - 32465540.05
3. Amount of share-based payment into
owners’ equity - 303042.85 -32162497.20 - - - 32465540.05
(III) Profit distribution - - - - - -1809603155.58 -1809603155.58
2. Distribution to owners (or shareholders) - - - - - -1809603155.58 -1809603155.58
IV. Closing balance of the current period 5483645926.00 1926141461.08 1665986.40 57944944.28 2161748790.26 9970042071.67 19597857206.89
Head of the Company: CHEN Dezhan Principal in charge of accounting: BAO Hua Head of the accounting department: ZHAO Difang
III. Company profile
1. Company overview
√Applicable □Not applicable
Zhejiang China Commodities City Group Co. Ltd. (hereinafter referred to as the
"Company") was approved by Document ZG [1993] No. 59 of the Zhejiang Provincial
Shareholding System Pilot Work Coordination Group and registered with the Yiwu Industrial
and Commercial Administration of Zhejiang Province on December 28 1993 obtaining the
"Business License of Legal Entity" with registration number 14766708-8. The original registered
name was Zhejiang Yiwu China Commodities City Co. Ltd. On September 26 1995 the
Company was renamed Zhejiang China Commodities City Group Co. Ltd. The Company
currently holds a business license with the unified social credit code of 91330000147641689Y
with a registered capital of RMB 5483559226.00 and a total of 5483559226 shares (par
value of RMB 1 per share). Among these there are 5483559226 A-shares that are not subject
to selling restrictions (tradable shares). The Company's shares have been listed on the
Shanghai Stock Exchange since May 9 2002.The company belongs to the market management service industry. The main business
activities include industrial investment and development investment management market
development and operation market supporting services sales of metal materials building
decoration materials general merchandise textiles hardware electrical and chemical products
office equipment and communication equipment (excluding wireless) mechanical and electrical
equipment provision of online trading platforms and services online trading market
development and operation and information consulting services. Import and export business of
goods within the scope of self-operated and domestically sold commodities. Engaged in
processing with supplied materials and "processing with supplied materials processing with
supplied samples assembling with supplied parts and compensation trade" business
conducting countertrade and entrepot trade including the business scope of subordinate
branches.IV. Basis for the preparation of consolidated financial statements
1. Basis of preparation
The financial statements of the Company were prepared on a going-concern basis.
2. Operation as a going concern
√Applicable □Not applicable
The Company had no events or conditions that casted a major doubt about the
going-concern ability of the Company within 12 months from the end of the reporting period.V. Important accounting policies and accounting estimates
Reminders on specific accounting policies and accounting estimates:
√Applicable □Not applicable
Based on its actual production and operational characteristics the Company has
formulated specific accounting policies and accounting estimates for transactions or events
such as financial instrument impairment inventories depreciation of fixed assets
construction-in-progress intangible assets and revenue recognition.
1. Statement on Compliance with ASBE
The financial statements prepared by the Group comply with the requirements of the
Accounting Standards and truly and completely reflect the Company’s financial conditions
operating results changes in shareholders’ equity cash flows and other related information.2. Accounting period
The fiscal year of the Group starts from January 1 and ends on December 31 of the
Gregorian calendar.
3. Business cycle
√Applicable □Not applicable
Except for the real estate sector the Company’s operating businesses have relatively short
operating cycles; therefore a 12-month period is adopted as the criterion for classifying assets
and liabilities by liquidity. The operating cycle of the real estate industry from property
development to sales realization generally exceeds twelve months; the specific duration is
determined based on individual development projects and serves as the benchmark for
classifying assets and liabilities according to liquidity.
4. Bookkeeping base currency
The Company and its domestic subsidiaries use the Renminbi (RMB) as their functional
currency. Overseas subsidiaries including Europe Huajie Development Co. Ltd. and Hong
Kong Better Silk Road Co. Ltd. engaged in foreign operations select the currency of the
primary economic environment in which they operate as their functional currency.
5. Method for determining importance criteria and selection basis
√Applicable □Not applicable
Item Importance criteria
Significant construction projects in The total investment of a single project exceeds 0.5%
progress of the total assets
Significant prepayments aged over 1
year Individual amount exceeding 0.5% of total assets
Significant accounts payable with an
aging of over 1 year Individual amount exceeding 0.5% of total assets
Significant advance receipts with aging
over 1 year Individual amount exceeding 0.5% of total assets
Significant contractual liabilities with an
aging of over 1 year Individual amount exceeding 0.5% of total assets
Significant other payables with an
aging of over 1 year Individual amount exceeding 0.5% of total assets
Important accounts receivable with
individual provision for bad debts Individual amount exceeding 0.5% of total assets
Important debt investment Individual amount exceeding 0.5% of total assets
Significant capitalized R&D projects
and externally acquired R&D projects Individual amount exceeding 0.5% of total assets
Significant cash flows from investing
activities Single amount exceeding 5% of total assets
Significant foreign operating entities Total assets/total revenue/total profit exceeds 15% ofthe Group's total assets/total revenue/total profit
Significant subsidiaries Total assets/total revenue/total profit exceeds 15% of
non-wholly-owned subsidiaries the Group's total assets/total revenue/total profit
The book value of a single long-term equity investment
Significant joint ventures or associates exceeds 15% of the Group's net assets / Theinvestment income calculated under the equity method
for a single item exceeds 15% of the Group's total profit
6. Accounting methods for business combinations under common control and
business combinations 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.Accounting treatment method for business combination under common control
The assets and liabilities acquired by the Company in a business combination are
measured at their carrying amounts in the consolidated financial statements of the ultimate
controlling party as of the merger date. The Company adjusts capital reserve based on the
difference between the book value share of the owners' equity of the merged party in the
consolidated financial statements of the ultimate controlling party and the book value of the
merger consideration paid or the total par value of shares issued. If the capital reserve is
insufficient to offset the difference retained earnings are adjusted.Accounting treatment method for business combination not under common control
On the purchase date the Company recognizes the difference between the cost of the
combination that is greater than the fair value share of the identifiable net assets of the acquiree
obtained in the combination as goodwill; if the cost of the combination is less than the share of
the fair value of the identifiable net assets of the acquiree acquired in the combination First
review the acquired fair value of the acquiree's identifiable assets liabilities and contingent
liabilities and the measurement of the combination cost. After the review the combination cost
is still less than the fair value share of the acquiree's identifiable net assets acquired in the
combination the difference is included in the current profit and loss.
7. Judgment criteria for control and preparation methods for consolidated financial
statements
√Applicable □Not applicable
Judgment criteria for control
Control refers to the Company’s power over the investee. The Company enjoys variable
returns by participating in the investee’s related activities and is able to apply the power to the
investee to affect the amount of the returns.Method for preparing consolidated financial statements
The parent company includes all subsidiaries under its control in the consolidation scope of
the consolidated financial statements. The consolidated financial statements are prepared by
the parent company based on the financial statements of the parent and its subsidiaries in
accordance with other relevant information and Accounting Standards for Business Enterprises
No. 33—Consolidated Financial Statements.
8. Classification of joint arrangements and accounting treatment of joint operations
√Applicable □Not applicable
Joint arrangements are divided into joint operations and joint ventures.When the Company is a joint operator in a joint operation it recognizes the following items
related to its share of interests in the joint operation:
(1) Confirm individually held assets and jointly held assets based on ownership shares;
(2) Recognize individually assumed liabilities and jointly assumed liabilities based on
ownership share
(3) Recognizing revenue generated from the sale of the Company's share in the output of
joint operations;
(4) Recognition of income from jointly controlled operations' asset sales based on the
Company's ownership share;
(5) Recognition of individually incurred expenses and expenses from jointly controlled
operations based on the Company's ownership share.
9. Criteria of cash and cash equivalents
Cash presented in the cash flow statement refers to cash on hand and deposits that can be
used for payment at any time. Cash equivalents refer to investments held by a company with
short maturities strong liquidity easy conversion to known amounts of cash and minimal risk of
value changes.10. Foreign currency business and foreign currency financial statement conversion
√Applicable □Not applicable
Foreign currency business translation
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 foreign currency monetary items are translated using
the spot exchange rate on the balance sheet date. Exchange differences arising from changes
in exchange rates except for those related to the principal and interest of foreign currency loans
specifically borrowed for the acquisition or construction of assets that meet capitalization criteria
are recognized in the current period’s profit or loss. Foreign currency non-monetary items
measured at historical cost are still translated using the spot exchange rate on the transaction
date and their RMB amounts remain unchanged. For foreign currency non-monetary items
measured at fair value the spot exchange rate on the date of fair value determination is used
for translation and the difference is recognized in the current period’s profit or loss or other
comprehensive income.Foreign currency financial statement translation
Assets and liabilities items in the balance sheet are translated at the spot exchange rate on
the balance sheet date; owners' equity items except the "undistributed profit" item other items
are translated at the spot exchange rate on the transaction date; Income and expense items
shall be converted at the spot exchange rate on the transaction date. The translation
differences arising from the above conversion of foreign currency financial statements are
recorded in other comprehensive income.
11. Financial instruments
√Applicable □Not applicable
Classification of Financial Assets and Financial Liabilities
Financial assets are classified into the following three categories upon initial recognition: (1)
financial assets measured at amortized cost; (2) financial assets measured at fair value through
other comprehensive income; (3) financial assets measured at fair value through profit or loss.Financial liabilities are classified into the following four categories upon initial recognition:
(1) financial liabilities measured at fair value through profit or loss; (2) financial liabilities arising
from transfers of financial assets that do not qualify for derecognition or continuing involvement
in transferred financial assets; (3) financial guarantee contracts not falling under (1) or (2) above
and loan commitments not falling under (1) above that are made at below-market interest rates;
(4) financial liabilities measured at amortized cost.
Recognition Basis Measurement Methods and Derecognition Conditions for
Financial Assets and Financial Liabilities
(1) Recognition basis and initial measurement methods for financial assets and liabilities
The Company recognizes a financial asset or financial liability at the time of becoming a
party to a financial instrument contract. Financial assets and financial liabilities are measured at
fair value upon initial recognition: in view of financial assets and financial liabilities measured at
fair value through profit or loss related transaction costs are directly recorded in the current
profit or loss; in view of financial assets and financial liabilities of other categories related
transaction costs are recorded in the initially recognized amount. However if the Company's
initially recognized accounts receivable do not contain significant financing components or the
Company does not consider financing components in contracts not exceeding one year they
are initially measured at the transaction price as defined in Accounting Standards for Business
Enterprises No. 14 - Revenue.
(2) Subsequent measurement methods for financial assets
1) Financial assets measured at amortized cost
Subsequent measurement is carried out at amortized cost using the effective interest
method. Gains or losses arising from financial assets measured at amortized cost that are not
part of any hedging relationship are recognized in profit or loss upon derecognition
reclassification amortization using the effective interest method or impairment recognition.
2) Debt instrument investments measured at fair value through other comprehensive
income
Subsequent measurement is carried out at fair value. Interest calculated using the effective
interest method impairment losses or gains and exchange differences are recognized in profit
or loss while other gains or losses are recognized in other comprehensive income. Upon
derecognition the cumulative profit or loss previously recorded in other comprehensive income
is transferred out from other comprehensive income and recorded in the current profit or loss.
3) Equity instrument investments measured at fair value through other comprehensive
earnings
Subsequent measurement is carried out at fair value. Dividends received (excluding those
representing recovery of investment cost) are recognized in current profit or loss while other
gains or losses are recognized in other comprehensive income. Upon derecognition the
cumulative profit or loss previously recorded in other comprehensive income is transferred out
from other comprehensive income and recorded in the retained income.
4) Financial assets measured at fair value through profit or loss
Subsequent measurement at fair value results in gains or losses (including interest and
dividend income) being recognized in current profit or loss unless the financial asset is part of a
hedging relationship.
(3) Subsequent measurement methods for financial liabilities
1) Financial liabilities measured at fair value through profit or loss
Such financial liabilities include trading financial liabilities (including derivative instruments
that qualify as financial liabilities) and those designated as measured at fair value through profit
or loss. For such financial liabilities fair value is used for subsequent measurement. Changes in
the fair value of financial liabilities designated as measured at fair value through profit or loss
due to changes in the Company's own credit risk are recognized in other comprehensive
income unless such treatment would create or enlarge an accounting mismatch in profit or loss.Other gains or losses arising from such financial liabilities (including interest expenses and fair
value changes not due to changes in the Company's own credit risk) are recognized in current
profit or loss unless the financial liability is part of a hedging relationship. Upon derecognition
the cumulative profit or loss previously recorded in other comprehensive income is transferred
out from other comprehensive income and recorded in the retained earnings.
(2) Financial liabilities arising from financial asset transfers that do not meet derecognition
criteria or involve continued involvement in the transferred financial assets
Measurement shall be conducted in accordance with the relevant provisions of Accounting
Standards for Business Enterprises No. 23—Transfer of Financial Assets.
3) Financial guarantee contracts not falling under 1) or 2) above and loan commitments
not falling under 1) above that provide loans at below-market interest rates.After initial recognition subsequent measurement is based on the higher of the following
two amounts: * the amount of loss allowance determined in accordance with the impairment
provisions for financial instruments; * the initial recognition amount minus the cumulative
amortization determined in accordance with the relevant provisions of Accounting Standards for
Business Enterprises No. 14—Revenue.
4) Financial liabilities measured at amortized cost
Measured at amortized cost using the effective interest method. Gains or losses arising
from financial liabilities measured at amortized cost and not part of any hedging relationship are
recognized in current profit or loss upon derecognition or amortization using the effective
interest method.
(4) Derecognition of financial asset and financial liabilities
1) A financial asset shall be derecognized when one of the following conditions is met:
* Termination of contract rights to collect cash flows of the financial assets;
* The financial asset has been transferred and the transfer meets the derecognition
criteria for financial assets under Accounting Standard for Business Enterprises No. 23 -
Transfer of Financial Assets.Where the current obligations of the financial liabilities (or part of them) have been
extinguished the Company derecognizes the financial liabilities (or the part of financial
liabilities).The recognition basis and measurement method for the financial asset transfer
If the Company transfers substantially all the risks and rewards of ownership of the
financial asset it derecognizes the financial asset and separately recognizes any rights and
obligations created or retained in the transfer as assets or liabilities; if it retains substantially all
the risks and rewards of ownership it continues to recognize the transferred financial asset. If a
company neither transfers nor retains substantially all the risks and rewards of ownership of a
financial asset the following treatments should be applied according to different situations: (1) If
the Company does not retain control over the financial asset it should derecognize the financial
asset and separately recognize the rights and obligations arising from or retained in the transfer
as assets or liabilities. (2) If the Company retains control over the financial asset it should
recognize the relevant financial asset to the extent of its continued involvement in the
transferred financial asset and accordingly recognize the relevant liability.If the entire transfer of a financial asset meets derecognition criteria the difference
between the following two amounts is recognized in profit or loss: (1) the carrying amount of the
transferred financial asset on the derecognition date; (2) the sum of the consideration received
for transferring the financial asset and the cumulative amount of fair value changes originally
recognized in other comprehensive income attributable to the derecognized portion (for
financial assets measured at fair value through other comprehensive income such as debt
instrument investments). If a portion of a financial asset is transferred and the transferred
portion as a whole meets the derecognition criteria the carrying value of the financial asset
before the transfer is allocated between the derecognized portion and the continuing
recognized portion based on their relative fair values on the transfer date and the difference
between the following two amounts is recognized in current profit or loss: (1) the carrying value
of the derecognized portion; (2) the sum of the consideration received for the derecognized
portion and the cumulative amount of fair value changes originally directly recognized in other
comprehensive income that corresponds to the derecognized portion (for financial assets
measured at fair value through other comprehensive income such as debt instrument
investments).Determination method for the fair value of financial assets and financial liabilities
The Company uses valuation techniques that are appropriate in the current circumstances
and for which sufficient data and other information are available to determine the fair value of
relevant financial assets and financial liabilities. The Company classifies input values used in
valuation techniques into the following hierarchy and applies them sequentially:
(1) The first-level inputs are unadjusted quoted prices in active markets for identical assets
or liabilities that can be obtained on the measurement date.
(2) Level 2 inputs are inputs other than quoted prices included within Level 1 that are
observable for the asset or liability either directly or indirectly including: quoted prices for
similar assets or liabilities in active markets; quoted prices for identical or similar assets or
liabilities in markets that are not active; other observable inputs such as interest rates and yield
curves observable at commonly quoted intervals; and market-corroborated inputs
(3) Level 3 inputs are unobservable inputs for the relevant asset or liability including
interest rates stock volatility future cash flows of abandonment obligations assumed in
business combinations and financial forecasts made using the Company's own data that
cannot be directly observed or verified by observable market data.Impairment of financial instruments
The Company recognizes impairment and establishes loss allowances based on expected
credit losses for: financial assets measured at amortized cost debt instrument investments
measured at fair value through other comprehensive income contract assets lease receivables
loan commitments not classified as financial liabilities measured at fair value through profit or
loss and financial guarantee contracts that are not financial liabilities measured at fair value
through profit or loss or do not meet the derecognition criteria for transferred financial assets or
continue to be involved with the transferred financial assets.Expected credit losses refer to the weighted average value of the credit losses of financial
instruments weighted by the risk of default. Credit loss refers to the difference between all
contract cash flows receivable under the contract and all cash flows expected to be received
discounted by the Company at the original effective interest rate that is the present value of all
cash shortages. Among them the credit-impaired financial assets purchased or originated by
the Company shall be discounted at the credit-adjusted effective interest rate of the financial
assets.For purchased or originated financial assets that have experienced credit impairment the
Company recognizes only the cumulative changes in expected credit losses over the entire life
since initial recognition as loss provisions on the balance sheet date.For lease receivables receivables arising from transactions regulated by Accounting
Standards for Business Enterprises No. 14—Revenue and contract assets the Company
applies the simplified measurement method measuring the loss allowance at an amount equal
to the expected credit losses over the entire lifetime.For financial assets not measured using the above methods the Company assesses at
each balance sheet date whether their credit risk has increased significantly since initial
recognition. If the credit risk has increased significantly since initial recognition the Company
measures the loss allowance at the amount of expected credit losses over the entire lifetime; if
the credit risk has not increased significantly since initial recognition the Company measures
the loss allowance at the amount of expected credit losses over the next 12 months for the
financial instrument.The Company uses available reasonable and evidence-based forward-looking information
to determine whether the credit risk of financial instruments has been confirmed since initial
recognition by comparing the risk of default of financial instruments on the balance sheet date
with the risk of default on the date of initial recognition has increased significantly.At the balance sheet date if the Company determines that a financial instrument has only
low credit risk it is assumed that the instrument's credit risk has not increased significantly
since initial recognition.The Company assesses expected credit risk and measures expected credit loss based on
individual financial instruments or portfolios of financial instruments. When based on financial
instrument portfolios the Company classifies financial instruments into different portfolios
based on shared risk characteristics.The Company remeasures expected credit losses at each balance sheet date with
increases or reversals in loss allowances recognized as impairment losses or gains in current
period profit or loss. For financial assets measured at amortized cost loss allowances reduce
the carrying amount of the financial asset presented in the balance sheet; for debt investments
measured at fair value through other comprehensive income the Company recognizes loss
allowances in other comprehensive income without reducing the carrying amount of the
financial asset.Offset of financial assets and financial liabilities
In addition financial assets and financial liabilities are recognized separately in the balance
sheet and are not offset against each other. If the following conditions are met at the same time
financial assets and financial liabilities are listed in the balance sheet as the net amount after
offsetting each other: (1) There is a legal right to offset the recognized amount and the legal
right is currently executable; (2) Netting settlement or realizing the financial asset and paying
off the financial liability at the same time.For financial asset transfers that do not meet the derecognition criteria the Company does
not offset the transferred financial assets and related liabilities.
12. Notes receivable
√Applicable □Not applicable
Combination classification and determination basis of combined provision for bad debt
based on credit risk characteristics
√Applicable □Not applicable
The Company assesses impairment and recognizes loss allowances for financial assets
measured at amortized cost based on expected credit losses.For accounts receivable that do not contain significant financing components the Company
measures loss reserves based on the expected credit loss amount equivalent to the entire
duration.For the financial assets not measured with the simplified method the Company 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 Company will make provision for losses
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 Company 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 Company will make provision for loss equivalent to the
amount of expected credit loss during the entire term and calculate interest income based on
the amortized cost and effective interest rate.The Group evaluates the expected credit losses of financial instruments on the individual
and group bases. The Company considers the credit risk characteristics of different customers
evaluates the expected credit losses of accounts receivable based on grouping by aging and
determines the aging based on the invoicing date. Except for the aforementioned financial
instruments that are evaluated for expected credit losses on a grouping basis the Company
assesses their expected credit losses on an individual basis.The disclosure regarding the Company's criteria for determining a significant increase in
credit risk and the definition of credit-impaired assets is as follows:
The factors reflected in the Company'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 Company no longer reasonably expects to recover all or part of the contractual
cash flows of a financial asset it directly writes down the carrying amount of the financial asset.Methods for calculating aging based on the credit risk characteristics combination
confirmed by aging
□Applicable √Not applicable
Judgment criteria for individual provision for bad debt based on individual provision
√Applicable □Not applicable
For receivables and contract assets with credit risk significantly different from portfolio
credit risk the Company calculates expected credit losses on an individual basis.
13. Accounts receivable
√Applicable □Not applicable
Combination classification and determination basis of combined provision for bad debt
based on credit risk characteristics
√Applicable □Not applicable
Please refer to Note V - Important Accounting Policies and Accounting Estimates - 12.Notes Receivable.Methods for calculating aging based on the credit risk characteristics combination
confirmed by aging
□Applicable √Not applicable
Recognition criteria for individual provision of bad debt
√Applicable □Not applicable
Please refer to Note V - Important Accounting Policies and Accounting Estimates - 12.Notes Receivable.
14. Receivables Financing
□Applicable √Not applicable
15. Other receivables
√Applicable □Not applicable
Combination classification and determination basis of combined provision for bad debt
based on credit risk characteristics
√Applicable □Not applicable
Please refer to Note V - Important Accounting Policies and Accounting Estimates - 12.Notes Receivable.Methods for calculating aging based on the credit risk characteristics combination
confirmed by aging
□Applicable √Not applicable
Judgment criteria for individual provision for bad debt based on individual provision
√Applicable □Not applicable
Please refer to Note V - Important Accounting Policies and Accounting Estimates - 12.Notes Receivable.
16. Inventory
√Applicable □Not applicable
Inventory category valuation method for issuance inventory system amortization
method for low-value consumables and packaging materials
√Applicable □Not applicable
Classification of inventory
Inventory includes raw materials work-in-progress materials finished goods real estate
development costs and real estate development products.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 transferred to development product after being
completed.Valuation method of issued inventory
(1) During project development land designated for development is allocated to the
project’s development costs based on the floor area occupied by the developed products.
(2) Development products shipped are accounted for using the average method based on
gross floor area.
(3)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 projects 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.Inventory system of inventory
Hotel catering and fresh goods inventories are subject to onsite inventory while other
inventories are subject to perpetual inventory.Amortization of low-value consumables and packaging materials
(1) Low-value consumables
Amortization is carried out according to the one-time write-off method.
(2) Packaging
Amortization is carried out according to the one-time write-off method.Recognition criteria and provision methods for provision for inventory depreciation
√Applicable □Not applicable
On the balance sheet date inventories are measured at the lower of cost and net realizable
value and provision for inventory depreciation is made based on the difference between the
cost and the net realizable value. For inventories directly used for sale in the normal production
and operation process the net realizable value is determined by the estimated selling price of
the inventory minus the estimated sales expenses and related taxes; for inventories that need
to be processed in the normal production and operation process the net realizable value is
determined by the estimated selling price of the finished products produced after deducting the
estimated costs to be incurred upon completion estimated sales expenses and relevant taxes
and fees; on the balance sheet date for inventory items where a portion has a contracted price
and the remaining portion does not the net realizable value is determined separately for each
part. This value is then compared with the corresponding cost to separately determine the
amount of provision for inventory write-down or the reversal thereof.In principle provision is made for individual inventory items; for inventories with large
quantities and low unit prices inventory write-downs are provided by category.Combination classification and determination basis for combined provision for inventory
depreciation and determination basis for net realizable value of inventory of different
categories
□Applicable √Not applicable
Calculation methods and determination basis for the net realizable value of each
inventory age combination based on inventory age confirmation
□Applicable √Not applicable
17. Contract assets
□Applicable √Not applicable
18. Non-current assets or disposal groups held for sale
□Applicable √Not applicable
Recognition criteria and accounting treatment methods for non-current assets or
disposal groups classified as held for sale
□Applicable √Not applicable
Recognition criteria and reporting methods for termination of operations
□Applicable √Not applicable
19. Long-term equity investment
√Applicable □Not applicable
Determination of joint control and significant influence
Joint control refers to the control jointly owned over some arrangement according to the
related provisions and the related activities of the arrangements must be decided after being
agreed by the participant sharing control. A major impact means that the investor has the power
to participate in decision-making of the investee’s finance and operation policies but cannot
control or jointly control with other parties the formulation of these policies.Determination of investment cost
(1) Business combination under common control: If the Company pays cash transfers
non-cash assets or assumes debts and issues equity securities as the combination
consideration it shall treat its share in the book value of the owner’s equity of the acquiree listed
in the ultimate controlling party’s consolidated financial statements on the date of the
combination as the initial investment cost of long-term equity investment. The difference
between the initial investment cost of the long-term equity investment and the book value of the
combined consideration paid or the total face value of the issued shares shall be adjusted to the
capital reserve; if the capital reserve is insufficient to offset the retained earnings shall be
adjusted.The Company determines whether the long-term equity investment formed through
step-by-step transactions to achieve a business combination under common control constitutes
a "package deal." For transactions classified as a "package deal" each transaction is
accounted for as a single transaction to obtain control. For transactions not classified as
"package deals" the initial investment cost is determined on the merger date based on the
share of the net assets of the merged party in the consolidated financial statements of the
ultimate controlling party that should be enjoyed post-merger. The difference between the initial
investment cost of the long-term equity investment on the merger date and the sum of the
carrying value of the long-term equity investment before the merger plus the carrying value of
the new consideration paid for additional shares on the merger date is adjusted to capital
reserve; if the capital reserve is insufficient to offset the difference retained earnings are
adjusted.
(2) For the merger of enterprises not under the same control the fair value of the merger
consideration paid on the purchase date shall be taken as its initial investment cost.For long-term equity investments formed through step-by-step transactions achieving a
business combination not under common control the Company applies separate accounting
treatments in individual financial statements and consolidated financial statements:
1) In separate financial statements the initial investment cost under the cost method is
calculated as the sum of the carrying amount of the originally held equity investment and the
additional investment cost.
2) In consolidated financial statements determine whether it constitutes a "package deal."
For transactions classified as a "package deal" each transaction is accounted for as a single
transaction to obtain control. For transactions not qualifying as "package deals" equity interests
in the acquiree held prior to the acquisition date are remeasured at fair value on the acquisition
date with any difference between fair value and carrying amount recognized in current
investment income. Other comprehensive income related to such equity interests accounted for
under the equity method is reclassified to profit or loss in the period of acquisition. Except for
other comprehensive income arising from the investee's remeasurement of defined benefit plan
net liabilities or net assets.
(3) Other than those formed through business combinations: for those acquired by cash
payment the initial investment cost is based on the actual purchase price paid; for those
acquired by issuing equity securities the initial investment cost is based on the fair value of the
equity securities issued; for those acquired through debt restructuring the initial investment cost
is determined in accordance with Accounting Standards for Business Enterprises No. 12—Debt
Restructuring; for those acquired through non-monetary asset exchange the initial investment
cost is determined in accordance with Accounting Standards for Business Enterprises No.
7—Non-monetary Asset Exchange.
Subsequent measurement and recognition of profit and loss
Long-term equity investments in controlled entities are accounted for using the cost method;
investments in associates and joint ventures are accounted for using the equity method.Method for Step-by-Step Disposal of Subsidiary Investments Through Multiple
Transactions Until Loss of Control
(1) Judgment principles for determining whether it constitutes a "package deal"
For the step-by-step disposal of equity investments in subsidiaries through multiple
transactions until control is lost the Company determines whether the step-by-step transactions
constitute a "package deal" by considering the terms of the transaction agreements for each
step the respective disposal considerations obtained the parties to whom the equity is sold the
disposal methods the timing of disposal and other relevant information. When the terms
conditions and economic effects of multiple transactions meet one or more of the following
circumstances it typically indicates that the transactions constitute a "package deal":
1) These transactions are entered into at the same time or taken into account the influence
of each other;
2) Only these transactions as a whole can achieve a complete commercial result;
3) The occurrence of one transaction depends on the occurrence of at least one other
transaction;
4) A transaction is uneconomical on its own but it is economical when considered together
with other transactions.(2) Accounting treatment for transactions not classified as "package deals"
1) Individual financial statements
For the disposed equity the difference between its carrying amount and the actual
proceeds received is recognized in profit or loss. For the remaining equity if it still has
significant influence over the investee or is jointly controlled with other parties it is accounted
for using the equity method; if control joint control or significant influence over the investee can
no longer be exercised it is accounted for in accordance with the relevant provisions of
"Accounting Standards for Business Enterprises No. 22—Recognition and Measurement of
Financial Instruments."
2) Consolidated Financial Statements
Before losing control the difference between the disposal consideration and the share of
the subsidiary's net assets attributable to the disposed long-term equity investment calculated
from the acquisition or merger date is adjusted to capital reserve (capital surplus). If the capital
surplus is insufficient retained earnings are reduced.When the control over a subsidiary is lost the remaining equity interest is re-measured at
its fair value on the date of losing control. The difference between the sum of the consideration
obtained from the disposal of equity and the fair value of the remaining equity and the share of
the former subsidiary’s net assets calculated continuously from the acquisition date or
combination date at the original shareholding ratio is included in the investment income in the
period of loss of control. At the same time goodwill is also written down. Other comprehensive
income related to the equity investment of the original subsidiary shall be converted into
investment income for the current period when the control right is lost.
(3) Accounting treatment for "package deals"
1) Individual financial statements
Account for all transactions as a single transaction involving the disposal of a subsidiary
and loss of control. However the difference between each disposal consideration and the
carrying amount of the corresponding long-term equity investment before loss of control is
recognized in other comprehensive income in separate financial statements and transferred to
profit or loss upon loss of control.
2) Consolidated Financial Statements
Account for all transactions as a single transaction involving the disposal of a subsidiary
and loss of control. However any difference between the disposal consideration and the
disposing party's proportionate share of the subsidiary's net assets prior to loss of control is
recognized as other comprehensive income in the consolidated financial statements and
subsequently reclassified to profit or loss upon loss of control.
20. Investment Property
(1) With the cost measurement model
Depreciation or amortization method
The Company's investment property includes land use rights leased land use rights held
and ready to be transferred after appreciation leased buildings etc.Investment real estate is initially measured at cost followed by cost model and is
depreciated or amortized using the same method as fixed assets and intangible assets.
21. Fixed assets
(1) Confirmation conditions
√Applicable □Not applicable
Property plant and equipment refer to tangible assets held for the purpose of producing
commodities providing labor services leasing or operating management and with a service life
of more than one fiscal year. Fixed assets are recognized when it is probable that economic
benefits will flow in and the cost can be reliably measured.(2) Depreciation method
√Applicable □Not applicable
Category Depreciation method Depreciation period Residual Annual(number of years) value rate depreciation rate
Buildings and
structures Straight-line method 10-40 4% 2.40%-9.60%
General
equipment Straight-line method 5-10 4% 9.60%-19.20%
Transportation
equipment Straight-line method 6 4% 16.00%
22. Construction in progress
√Applicable □Not applicable
Construction in progress is recognized when it simultaneously meets the criteria that
economic benefits are probable to flow in and costs can be reliably measured. Construction in
progress is measured at the actual costs incurred before the asset reaches its intended usable
condition.When the construction in progress reaches the predetermined usable state it shall be
transferred to fixed assets according to the actual cost of the project. For those that have
reached the expected usable state but have not yet handled the final settlement of the project
they shall be transferred to fixed assets at their estimated value. After the final settlement of the
project has been handled the original provisional estimated value will be adjusted according to
the actual cost but the depreciation that has been accrued will not be adjusted.Category Criteria and timing for transferring construction in progress to fixed assets
Buildings and The main construction project and supporting works have been substantially
structures completed met the predetermined design requirements and passedacceptance inspection
Machinery Meeting design requirements or contractual standards after installation and
equipment debugging
Transportation
equipment Obtaining a transportation vehicle driving license
Other Actual start of use or completion of installation and debugging
23. Borrowing costs
√Applicable □Not applicable
Principles for recognition on capitalization of borrowing costs
If the borrowing costs incurred by the Company can be directly attributable to the
acquisition or production of assets qualified of capitalization they shall be capitalized and
included in the cost of the relevant assets; other borrowing costs shall be recognized as
expenses based on the amount incurred when they are incurred and included in current profit
and loss.Period of capitalization of borrowing costs
(1) Capitalization begins when the borrowing costs meet the following conditions at the
same time: 1) The asset expenditure has been incurred; 2) The borrowing costs have been
incurred; 3) The purchase construction or production necessary to make the asset ready for
use or sale. The event has already started.
(2) If an asset that meets the capitalization conditions is abnormally interrupted in the
process of acquisition construction or production and the interruption lasts for more than 3
consecutive months the capitalization of borrowing costs shall be suspended; the borrowing
costs incurred during the interruption period shall be recognized as current expenses until the
acquisition construction or production of the asset resumes.
(3) When the acquisition or production of assets qualified of capitalization reaches the
intended usable or saleable state the capitalization of borrowing costs shall cease.Capitalization rate of borrowing costs and capitalized amount
If a special loan is borrowed for the purchase construction or production of assets eligible
for capitalization the interest expense actually incurred in the current period of the special loan
(including the amortization of discount or premium determined according to the effective interest
rate method) minus the unused loan funds. The amount of interest income obtained by
depositing in the bank or the investment income obtained from temporary investment shall be
determined as the amount of interest that should be capitalized; if general borrowings are
occupied for the purchase construction or production of assets eligible for capitalization the
accumulated asset expenditure shall be the weighted average number of asset expenditures
exceeding special borrowings is multiplied by the capitalization rate of occupied general
borrowings to calculate and determine the amount of interest that should be capitalized on
general borrowings.
24. Biological assets
□Applicable √Not applicable
25. Oil and gas assets
□Applicable √Not applicable
26. Intangible assets
(1) Service life and its determination basis estimated situation amortization method or
review procedure
√Applicable □Not applicable
Intangible assets including land use rights software and software copyright data
resources etc. are initially measured at cost.Intangible assets with limited service life shall be amortized systematically and reasonably
within the service life according to the expected realization method of the economic benefits
related to the intangible asset. If the expected realization method cannot be reliably determined
the straight-line method shall be used for amortization. Specific provisions are as follows:
Item Useful life and its determination basis Amortization method
Land use right The useful life is determined as 40-50 years basedon the property rights registration period Straight-line method
Software and
software The useful life is determined to be 10 years based on
copyright the expected benefit period
Straight-line method
Data resources The useful life is determined to be 10 years based onthe expected benefit period Straight-line method
(2) The scope of R&D expenditure collection and related accounting treatment methods
√Applicable □Not applicable
Scope of R&D Expenditure Aggregation
(1) Personnel labor costs
Personnel labor costs include salaries and wages of the Company's R&D personnel basic
pension insurance basic medical insurance unemployment insurance work injury insurance
maternity insurance and housing provident fund as well as service fees for externally hired
R&D personnel.For R&D personnel serving multiple R&D projects simultaneously labor costs are allocated
proportionally among different R&D projects based on the working hour records provided by the
Company's management department.For personnel directly engaged in R&D activities and external R&D personnel who also
engage in non-R&D activities the Company allocates the actual incurred personnel costs
between R&D expenses and production/operating expenses based on reasonable methods
such as the proportion of actual working hours recorded for different positions.
(2) Direct input expenses
Direct input costs refer to the actual expenses incurred by the Company for conducting
research and development activities. It includes: 1) Directly consumed materials fuel and
power expenses; 2) Molds tooling development and manufacturing costs for pilot testing and
product trial production purchase costs of samples prototypes and general testing equipment
that do not constitute fixed assets and inspection fees for trial products; 3) Operation
maintenance adjustment inspection testing and repair expenses for instruments and
equipment used in R&D activities.
(3) Depreciation expense and long-term prepaid expenses
Depreciation expense refers to the depreciation of instruments equipment and buildings in
use for research and development activities.For instruments equipment and in-use buildings used for R&D activities that are also used
for non-R&D activities the Company maintains necessary records of their usage and allocates
the actual depreciation expenses between R&D expenses and production/operating expenses
based on factors such as actual working hours and usage area using a reasonable method.Long-term deferred expenses refer to those incurred during the renovation retrofitting
decoration and repair of R&D facilities which are aggregated based on actual expenditures
and amortized evenly over the specified period.
(4) Amortization expenses of intangible assets
Amortization expenses of intangible assets refer to the amortization of software intellectual
property and non-patented technologies (proprietary technologies licenses design and
calculation methods etc.) used in research and development activities.
(5) Design Expenses
Design expenses refer to costs incurred for conceptualizing developing and
manufacturing new products and processes including designing procedures technical
specifications regulations and operational characteristics as well as related expenses for
creative design activities aimed at obtaining innovative creative and breakthrough products.
(6) Equipment debugging costs and testing expenses
Equipment debugging costs refer to expenses incurred during research and development
activities in the tooling preparation process including the development of special and dedicated
production machines changes to production and quality control procedures or the formulation
of new methods and standards.Costs incurred for routine tooling preparation and industrial engineering for large-scale
batch and commercial production are not included in the aggregation scope.Testing expenses include clinical trial fees for new drug development field trial fees for
exploration and development technologies and field test fees among others.
(7) Outsourced research and development expenses
Outsourced research and development expenses refer to costs incurred by the Company
when commissioning other domestic or foreign institutions or individuals to conduct research
and development activities (the results of which are owned by the Company and are closely
related to its main business operations).
(8) Other expenses
Other expenses refer to those directly related to research and development activities
beyond the aforementioned expenses including technical book and material costs document
translation fees expert consultation fees high-tech R&D insurance premiums costs for
retrieval demonstration evaluation appraisal and acceptance of R&D results as well as fees
for intellectual property applications registrations and agency services meeting expenses
travel expenses communication costs etc.Expenses for the research phase of internal research and development projects shall be
included in the current profit and loss when 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 it 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.The Company's specific criteria for dividing the research stage expenditure and
development stage expenditure of internal research and development projects:
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 it
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.
27. Impairment of long-term assets
√Applicable □Not applicable
For long-lived assets with finite useful lives such as intangible assets if indications of
impairment exist as of the balance sheet date their recoverable amounts shall be estimated.For the goodwill formed due to the merger of enterprises and the intangible assets with
uncertain service life the Group carries out impairment tests at least at the end of each year
regardless of the impairment signs. Goodwill is tested for impairment in combination with its
related asset groups or groups of asset groups.If the recoverable amount of the aforementioned long-term assets is lower than their
carrying value the difference is recognized as an impairment loss and included in current
period profit or loss.
28. Long-term deferred expenses
√Applicable □Not applicable
Long-term prepaid expenses account for expenditures that have been incurred and are
amortized over a period longer than one year (excluding one year). Long-term deferred
expenses are recorded based on the actual amount incurred and amortized evenly over the
benefit period or specified period. If the long-term deferred expense item cannot benefit future
accounting periods the amortized value of the item that has not been amortized will be fully
transferred to the current period's profit or loss.
29. Contract liabilities
√Applicable □Not applicable
The Company presents contractual assets or contractual liabilities in the balance sheet
based on the relationship between performance obligations and customers’ payments. The
Company offsets contract assets and contract liabilities under the same contract and presents
them at net amounts.The Company presents rights to consideration receivable from customers that are
unconditional (i.e. dependent solely upon the passage of time) as accounts receivable; rights to
consideration arising from the transfer of goods to customers where such rights depend on
factors beyond the mere passage of time are presented as contract assets.Contract liabilities are the Company’s obligations to transfer products to customers since it
has received or shall receive consideration from customers.
30. Employee compensation
(1) Accounting treatment methods for short-term compensation
√Applicable □Not applicable
The Company recognizes the actual short-term employee remuneration as liabilities during
the accounting period when employees provide services to the Company and records them in
the current profit or loss or related asset costs.
(2) Accounting treatment method for post-employment benefits
√Applicable □Not applicable
The post employment welfare plan includes a defined contribution plan and a defined
benefit plan.
(1) During the accounting period in which employees provide services to the Company the
amount to be contributed as calculated under the defined contribution plan is recognized as a
liability and recorded in current profit or loss or the cost of related assets.
(2) The accounting treatment for defined benefit plans typically includes the following steps:
1) Based on the projected unit credit method unbiased and mutually consistent actuarial
assumptions are used to estimate demographic and financial variables measure the obligations
arising from defined benefit plans and determine the period to which the obligations belong. At
the same time the obligations arising from the defined benefit plan are discounted to determine
the present value of the defined benefit plan obligations and the current service cost.
2) If there are assets in a defined benefit plan the deficit or surplus formed by subtracting
the fair value of the defined benefit plan assets from the present value of the defined benefit
plan obligation is recognized as a net defined benefit liability or asset. If a defined benefit plan
has a surplus the net assets of the defined benefit plan are measured at the lower of the plan
surplus and the asset ceiling
3) At the end of the period the employee compensation costs arising from defined benefit
plans are recognized as three components: service cost net interest on the net defined benefit
liability or asset and remeasurements of the net defined benefit liability or asset. Among these
the service cost and net interest on the net defined benefit liability or asset are included in
current profit or loss or the cost of related assets while the remeasurements of the net defined
benefit liability or asset are included in other comprehensive income. These amounts
recognized in other comprehensive income cannot be reclassified to profit or loss in subsequent
periods but can be transferred within equity.
(3) Accounting treatment methods for termination benefits
√Applicable □Not applicable
Where the Group provides severance benefits to its employees the employee
compensation liabilities arising from the severance benefits will be recognized and the amount
will be recognized in the profit or loss for the current period on the earlier date below: the date
when the Group cannot unilaterally withdraw the severance benefits provided as a result of the
employment termination plan or downsizing proposal; or the date when the Group recognizes
the costs or expenses relating to the reorganization involving the payment of severance
benefits.
(4) Accounting treatment methods for other long-term employee benefits
√Applicable □Not applicable
Other long-term benefits provided to employees that meet the conditions of defined
contribution plans are accounted for in accordance with the relevant provisions of defined
contribution plans; other long-term benefits not meeting these conditions are accounted for in
accordance with the relevant provisions of defined benefit plans. To simplify the accounting
treatment the resulting employee benefit costs are recognized as service costs net interest on
net liabilities or net assets of other long-term employee benefits and changes arising from
remeasurement of net liabilities or net assets of other long-term employee benefits with the
total net amount of these components recognized in current period profit or loss or the cost of
related assets.
31. Estimated liabilities
□Applicable √Not applicable
32. Share-based payment
□Applicable √Not applicable
33. Preferred stocks perpetual bonds and other financial instruments
□Applicable √Not applicable
34. Revenue
(1) Disclosure of accounting policies adopted for revenue recognition and
measurement by business type
√Applicable □Not applicable
Revenue Recognition Principle
On the contract commencement date the Company evaluates the contract identifies each
individual performance obligation included in the contract and determines whether each
individual performance obligation is to be fulfilled over a period of time or at a point in time.When one of the following conditions is met the performance obligation is fulfilled within a
certain period of time; otherwise the performance obligation is fulfilled at a certain point in time:
(1) the customer obtains and consumes the economic benefits brought by the Company's
performance when the Company performs the contract; (2) the customer can control the
commodities under construction in the process of the Company's performance; (3) the
commodities produced by the Company during the performance of the contract have
irreplaceable purposes and the Company is entitled to collect payment for the performance part
that has been completed to date throughout the term of the Contract.In view of performance obligations fulfilled within a certain period of time the Company
recognizes revenue according to the progress of performance within that period. When the
performance progress cannot be reasonably determined if the cost incurred by the Company is
expected to be compensated the revenue shall be recognized according to the amount of the
cost incurred until the performance progress can be reasonably determined. In view of
performance obligations fulfilled at a certain point in time the Company recognizes revenue at
the point in time when the customer obtains control over the relevant goods. When judging
whether the customer has obtained the right to control the goods the Company takes into
account the following signs: the Company has the right to receive the current payment for the
goods that is the customer has the obligation to make the current payment for the goods; The
enterprise has transferred the legal ownership of the goods to the customer that is the
customer has the legal ownership of the goods; The enterprise has transferred the physical
goods to the customer that is the customer has physically occupied the goods; The enterprise
has transferred the main risks and rewards of the ownership of the goods to the customer that
is the customer has obtained the main risks and rewards of the ownership of the goods; The
customer has accepted the goods; Other signs indicating that the customer has obtained
control of the goods.Revenue Recognition Principles
(1) The Company shall measure revenue at the transaction price allocated to each
individual performance obligation. The transaction price is the amount of consideration to which
the Company expects to be entitled in exchange for transferring goods or services to a
customer excluding amounts collected on behalf of third parties and amounts expected to be
refunded to the customer.
(2) The Company determines the best estimate of the variable consideration based on the
expected value or the most likely amount but the transaction price including the variable
consideration should not exceed the accumulated recognized revenue when the relevant
uncertainty is eliminated. It is highly unlikely that a significant reversal will occur amount.
(3) If there is a significant financing component in the contract the Company shall
determine the transaction price based on the amount payable in cash assuming the customer
obtains control over the commodity or service. The difference between the transaction price and
the contract consideration shall be amortized using the effective interest method during the
contract period.
(4) For contracts containing two or more performance obligations the Company allocates
the transaction price to each performance obligation at the contract inception date based on the
relative proportion of the standalone selling prices of the goods promised under each
performance obligation.Specific methods for revenue recognition
(1) Goods Sales Contract
Sales contracts between the Company and customers typically include commitments to
transfer goods which may vary depending on the customer's agreement. As customers are
able to benefit separately from the aforementioned goods or services or use them together with
other readily available resources and there is no significant integration modification
customization or high correlation between the aforementioned goods or services the Company
considers them as clearly distinguishable goods and constitutes separate performance
obligations.On the basis of comprehensive consideration of the following factors the Company
recognizes revenue at the time when the customer obtains control over the relevant goods: the
current right to receive payment for the goods the transfer of the main risks and rewards of
ownership of the goods the transfer of legal ownership of the goods the transfer of physical
assets of the goods and the customer's acceptance of the goods.
(2) Service Provision Contract
The service contracts between the Company and customers usually include performance
obligations such as providing the use of shops in the China Commodities City markets and the
supporting services for operation providing hotel accommodation and catering services
providing paid use services for funds to external parties of the Group and providing collection
and payment services.
1) The use of shops in China Commodities City markets and its supporting services
As the customer simultaneously obtains and consumes the economic benefits brought by
the Company's performance the Company recognizes it as a performance obligation fulfilled
over a period of time and recognizes revenue based on the progress of performance except
when the progress cannot be reasonably determined. Under the output method the Company
determines the performance progress of the provision of the use of shops in the China
Commodities City markets and the supporting services for operation based on the number of
using days of the shops. When the performance progress cannot be reasonably determined if
the cost incurred by the Group is expected to be compensated the income shall be recognized
according to the amount of the cost incurred until the performance progress can be reasonably
determined.
2) Hotel accommodation business
As the customer simultaneously obtains and consumes the economic benefits brought by
the Company's performance the Company recognizes it as a performance obligation fulfilled
over a period of time and recognizes revenue based on the progress of performance except
when the progress cannot be reasonably determined. The Company determines the progress of
performance obligations for hotel accommodation services based on the output method using
the number of accommodation 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.
3) Hotel catering business
For the separate performance obligation of providing hotel catering services the Company
separately prices the hotel catering services and recognizes revenue upon completion of the
services.
4) Real Estate Sales Business
For real estate sales operations the Company recognizes revenue upon satisfaction of all
the following conditions: (i) the real estate development project has been completed and passed
inspection and acceptance by competent authorities; (ii) the buyer and seller have entered into
a legally binding sales contract; (iii) the buyer has made the agreed purchase payments in
accordance with the payment terms stipulated in the sales contract; and (iv) the buyer has
obtained control over the relevant property.
(2) Adopting different business models for similar businesses involves different
revenue recognition methods and measurement methods
□Applicable √Not applicable
35. Contract costs
√Applicable □Not applicable
The incremental costs incurred by the Company to obtain contracts that are expected to be
recovered are recognized as contract acquisition costs and recognized as an asset.If the cost incurred by the Company 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) This cost increases the resources that the Company will use in the future to fulfill its
contractual obligations;
(3) The cost is expected to be recoverable.
The Company amortizes assets related to contract costs using the same basis as the
recognition of revenue from the related goods or services and recognizes the amortization as
an expense in the current period.If the carrying amount of an asset related to contract costs exceeds the remaining
consideration expected to be received from transferring the goods or services associated with
the asset minus the estimated costs to be incurred the Company recognizes an impairment
provision for the excess amount and records it as an asset impairment loss. If changes in
factors that previously caused impairment result in the remaining consideration expected to be
received from transferring goods or services related to the asset minus estimated costs to be
incurred exceeding the asset's carrying amount the previously recognized impairment loss is
reversed and included in current profit or loss provided that the reversed carrying amount does
not exceed what the carrying amount would have been had no impairment been recognized.
36. Government subsidy
√Applicable □Not applicable
Government grants are recognized when the following conditions are simultaneously met:
(1) the Company can fulfill the conditions attached to the government grant; (2) the Company
can receive the government grant. If a government grant falls within monetary assets it will be
measured by the amount received or receivable. If a government grant does not fall within
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.Basis for judgment and accounting treatment of government grants related to assets
Government documents stipulate that grants used to purchase construct or otherwise
form long-term assets are classified as asset-related government grants. If government
documents are unclear the basic conditions required to obtain the subsidy are used as the
basis for judgment. Subsidies where the basic condition is the acquisition or construction of
long-term assets are classified as asset-related government grants. Government grants related
to assets are deducted from the carrying amount of the relevant assets or recognized as
deferred income. Asset-related government grants are recognized as deferred incomes and
included in the current profit and loss in terms within the service life of the relevant assets in a
reasonable and systematic way. Government subsidies measured in nominal amounts are
directly recognized in the current period's profit or loss. If the relevant assets are sold
transferred scrapped or damaged before the end of their useful life the undistributed balance
of relevant deferred income shall be transferred to the profit and loss of the current period of
asset disposal.Basis for judgment and accounting treatment methods of government grants related
to revenue
Government grants other than those related to assets are classified as government grants
related to income. Government subsidies containing the part related to assets and the part
related to income are accounted for separately according to different parts; if it is difficult to
distinguish the whole shall be classified as government subsidies related to income.Government grants related to income which are intended to compensate for related costs
expenses or losses incurred in future periods should be recognized as deferred income. They
are recognized in the profit or loss for the period in which the related costs expenses or losses
are recognized or they offset the related costs. For government grants that compensate for
related costs expenses or losses that have already been incurred they should be directly
recognized in the profit or loss for the current period or offset the related costs.Government subsidies related to the Company’s daily operating activities are recorded in
other income or offset related cost expenses according to the essence of the economic
substance. Government subsidies not related to the Company’s daily activities are recorded in
non-operating income and expenditure.Accounting Treatment Methods for Policy-Based Preferential Loan Interest
Subsidies
(1) When the fiscal authority allocates interest subsidy funds to the lending bank and the
lending bank provides loans to the Company at a policy-based preferential interest rate the
actual amount of the loan received shall be recorded as the loan’s book value. The related
borrowing costs shall be calculated based on the principal of the loan and the policy-based
preferential interest rate.
(2) If the finance directly transfers the discounted funds to the Company the Company will
offset the relevant borrowing costs with the corresponding discounted interest.
37. Deferred income tax assets/ deferred income tax liabilities
√Applicable □Not applicable
Based on the difference between the book value of assets and liabilities and their tax base
(if the tax base can be determined for items not recognized as assets and liabilities in
accordance with the tax law the difference between the tax base and its book value) deferred
income tax assets or deferred income tax liabilities are calculated and recognized according to
the applicable tax rate during the period when the asset is expected to be recovered or the
liability is settled.The recognition of deferred income tax assets is limited to the amount of taxable income
that is likely to be obtained to offset temporary differences. On the balance sheet date if there is
conclusive evidence that sufficient taxable income is likely to be obtained in the future period to
offset deductible temporary differences the deferred income tax assets that have not been
recognized in the previous accounting period shall be recognized.On the balance sheet date the Company reviews the book value of deferred income tax
assets. If it is likely to obtain sufficient taxable income in the future to offset the benefits of
deferred income tax assets the Group will write down the book value of deferred income tax
assets. When it is likely to obtain sufficient taxable income the Group will reverse the reduced
amount.The current income tax and deferred income tax of the Company are included in the current
profit and loss as income tax expenses or income but the income tax arising from the following
situations is not included: (1) Business combination; (2) Transactions or events directly
recognized in the owner's equity.The Company presents deferred tax assets and deferred tax liabilities as a net amount
when the following conditions are simultaneously met: (1) it has the legal right to settle current
tax assets and current tax liabilities on a net basis; (2) the deferred tax assets and deferred tax
liabilities relate to income taxes levied by the same tax authority on the same taxable entity or
different taxable entities but in each future period when significant deferred tax assets and
deferred tax liabilities are expected to reverse the relevant taxable entities intend to settle
current tax assets and current tax liabilities on a net basis or simultaneously acquire assets and
settle liabilities.
38. Lease
√Applicable □Not applicable
Judgment basis and accounting treatment methods for simplifying short-term leases
and low-value asset leases as a lessee
√Applicable □Not applicable
The Company recognizes leases with a lease term not exceeding 12 months and excluding
purchase options as short-term leases on the commencement date of the lease term; Leases
with lower value when a single leased asset is considered a brand new asset are recognized as
low-value asset leases.For all short-term leases and leases of low-value assets the Company recognizes lease
payments in each period of the lease term on a straight-line basis as related asset costs or
current period profit and loss.Except for short-term leases and leases of low-value assets accounted for using the
simplified approach mentioned above the Company recognizes right-of-use assets and lease
liabilities at the commencement date of the lease.
(1) Right-of-use assets
The right-of-use asset is initially measured at cost which includes: 1) the initial
measurement of the lease liability; 2) lease payments made on or before the commencement
date of the lease less any lease incentives received; 3) initial direct costs incurred by the lessee;
4) an estimate of the costs to be incurred by the lessee for dismantling and removing the leased
asset restoring the site on which it is located or restoring the asset to the condition required by
the lease terms.The Company depreciates the right-of-use assets using the straight-line method. Where
the ownership of the leased asset can be reasonably determined at the end of the lease term
the Company as the lessee 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 Company shall make depreciation within the shorter period of the
lease term or the remaining useful life of the leased asset.
(2)Lease liabilities
At the commencement date of the lease the Company recognizes the present value of the
unpaid lease payments as a lease liability. 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 Company's incremental borrowing rate shall
be used as the discount rate. The difference between lease payments and their present value is
recognized as unearned finance charges with interest expenses recognized during each lease
period at the discount rate used to determine the present value of lease payments and
recorded in current profit or loss. Variable lease payments that are not included in the
measurement of lease liabilities are recognized in the current period's income statement when
they actually occur.After the commencement of the lease term when there are changes in the substantive
fixed payments estimated payable amounts of the guaranteed residual value indices or ratios
used to determine lease payments or changes in the assessment results or actual exercise of
purchase options renewal options or termination options the Company remeasures the lease
liability based on the present value of the revised lease payments and adjusts the carrying
amount of the right-of-use asset accordingly. If the carrying amount of the right-of-use asset has
been reduced to zero but further reduction of the lease liability is still required the remaining
amount is recognized in current period profit or loss.
(3) After-sale leaseback transactions
The Company evaluates and determines whether the asset transfer in a
sale-and-leaseback transaction constitutes a sale in accordance with Accounting Standards for
Business Enterprises No. 14—Revenue.If the asset transfer in a sale and leaseback transaction qualifies as a sale the Company
measures the right-of-use asset arising from the leaseback based on the portion of the original
asset's carrying amount related to the right of use obtained and recognizes only the gain or loss
related to the rights transferred to the lessor.If the asset transfer in a sale and leaseback transaction does not qualify as a sale the
Company continues to recognize the transferred asset and simultaneously recognizes a
financial liability equal to the transfer proceeds accounting for this financial liability in
accordance with "Accounting Standards for Business Enterprises No. 22—Recognition and
Measurement of Financial Instruments."
Classification criteria and accounting treatment methods for leasing as a lessor
√Applicable □Not applicable
The lease that transfers virtually all the risks and rewards related to the ownership of the
leased asset on the lease commencement date is a finance lease and other leases are
operating leases.
(1)Operating Lease
The Company recognizes lease receipts as rental income on a straight-line basis over the
lease term. Initial direct costs incurred are capitalized and amortized on the same basis as the
recognition of rental income and are included in the current period's profit or loss in installments.Variable lease payments related to operating leases that are not included in lease receipts are
included in profit or loss for the current period when they are actually incurred.
(2)Financial Lease
At the commencement date of the lease the Company recognizes finance lease
receivables at the net investment in the lease (the sum of the present value of the unguaranteed
residual value and lease payments not yet received at the commencement date discounted
using the interest rate implicit in the lease) and derecognizes the finance lease assets. During
each period of the lease term the Company calculates and recognizes interest income using
the interest rate implicit in the lease.The variable lease payments obtained by the Company as the lessor which are not
recorded in the net lease investment measurement are recorded in the current profit or loss
when they are actually incurred.
(3) After-sale leaseback transactions
The Company evaluates and determines whether the asset transfer in a
sale-and-leaseback transaction constitutes a sale in accordance with Accounting Standards for
Business Enterprises No. 14—Revenue.If the asset transfer in a sale and leaseback transaction qualifies as a sale the Company
accounts for the asset purchase in accordance with other applicable accounting standards for
enterprises and accounts for the asset lease in accordance with Accounting Standards for
Business Enterprises No. 21—Leases.If the asset transfer in a sale and leaseback transaction does not qualify as a sale the
Company does not recognize the transferred asset but recognizes a financial asset equal to the
transfer proceeds and accounts for this financial asset in accordance with Accounting
Standards for Business Enterprises No. 22—Recognition and Measurement of Financial
Instruments.
39. Other important accounting policies and accounting estimates
√Applicable □Not applicable
Measurement of fair value
The Company measures equity instrument investments at fair value at each balance sheet
date. Fair value refers to the price received from the sale of an asset or paid for the transfer of a
liability by a market player in the orderly transactions on the measurement date. For the assets
and liabilities which are measured or disclosed by fair value in the financial statements the
levels of fair value are determined based on the lowest-level input of important significance for
the overall measurement of fair values: Level 1 input is the unadjusted offer price for an
identical asset or liability that can be obtained in an active market on the measurement date;
Level 2 inputs are the inputs that are directly or indirectly observable for related assets or
liabilities other than Level 1 inputs; Level 3 inputs are the inputs that are observable for related
assets or liabilities. On each balance date the Group re-evaluates the assets and liabilities that
are recognized in the financial statements and keeps 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 needs to make judgments
estimates and assumptions which will affect the presented amounts and disclosure of revenue
expenses assets and liabilities and the disclosure of contingent liabilities on the balance sheet
date. However the uncertainty of these assumptions and estimates may result in significant
adjustments to the book value of future affected assets or liabilities.Judgments
In applying the Company's accounting policies management has made the following
judgments that have a significant impact on the amounts recognized in the financial statements:
(1) Operating lease - as a lessor
The Company has signed lease contracts for investment properties. The Company
considers that based on the terms of the lease contracts it retains all significant risks and
rewards of ownership of these properties and therefore treats them as operating leases.
(2) Classification of investment properties and fixed assets
The Company classifies the buildings and structures leased out other than for the main
businesses such as market and hotel services as well as the auxiliary land use rights thereof as
investment properties including but not limited to the auxiliary banking and catering outlets for
market operation and the auxiliary service outlets for hotels. Other buildings and structures
leased out are classified as fixed assets.
(3) Business model
The classification of financial assets at initial recognition depends on the Company's
business model for managing these assets. When determining the business model the
Company considers factors including corporate evaluation methods and the way financial asset
performance is reported to key management personnel the risks affecting financial asset
performance and their management approaches as well as the methods by which relevant
business managers are compensated. When assessing whether the objective is to collect
contractual cash flows the Company needs to analyze and evaluate the reasons timing
frequency and value of the sale of financial assets before their maturity date.
(4) Contract cash flow characteristics
The classification of financial assets at initial recognition depends on the characteristics of
the contractual cash flow of the financial assets. For the judgment on whether the contractual
cash flow is the repayment of principal and the payment of interest on outstanding principal
including the evaluation of the adjustment to the time value of money it should be judged
whether it is significantly different from the benchmark cash flow; for the financial assets with
the early repayment characteristic it should be judged whether the fair value of the early
repayment characteristic is extremely low.Uncertainties of estimates
The following are key assumptions regarding the future at the balance sheet date and other
key sources of estimation uncertainty that may result in significant adjustments to the book
value of assets and liabilities in future accounting periods.
(1) Impairment of financial instruments
The Company evaluates the impairment of financial instruments with the expected credit
loss model. To apply the model the Company needs to make significant judgments and
estimates and take into account all reasonable and evidenced information including
forward-looking information. In making these judgments and estimates the Company infers
expected changes in debtor credit risk based on historical repayment data combined with
economic policies macroeconomic indicators industry risks and other factors. 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.
(2) Net realizable value of property inventory
The Company's real estate inventory is measured at the lower of cost and net realizable
value with the calculation of net realizable value requiring the use of assumptions and
estimates. If the management adjusts 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.
(3) Impairment of non-current assets other than financial assets (excluding goodwill)
The Company determines on the balance sheet date whether the non-current assets
other than financial assets have a sign of being impaired. Non-current assets other than
financial assets are subject to impairment testing when there are indications that their book
value is irrecoverable. When the book value of an asset or a group of assets is higher than its
recoverable value i.e. fair value less the disposal expenses or the present value of expected
future cash flow whichever is higher the asset or group has been impaired. For the fair value
less the disposal expenses the Group refers to the agreed selling price or observable market
price of the similar asset in a fair transaction less the cost increase directly attributable to the
disposal of the asset. When predicting the present value of future cash flows the management
must estimate the expected future cash flows of the asset or group of assets and select an
appropriate discount rate. When identifying a group of assets the management considers
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 takes into account
the way of managing or monitoring production and operating activities and the way of making
decisions on the continued use or disposal of the asset. Please refer to Note V. 27 for details.
(4) Impairment of goodwill
The Company 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
Company needs to estimate the cash flows generated by future asset groups or combinations
of asset groups and at the same time select an appropriate discount rate to determine the
present value of future cash flows. Please refer to Note V. 27 for details.
(5) Fair value of non-listed equity investments
The Company determines the fair value of non-listed equity investments based on the
expected future cash flows discounted at the current discount rate of other financial instruments
with similar contractual terms and risk characteristics. This requires the Company to estimate
expected future cash flows credit risks volatility and discount rates which introduces
uncertainty.
(6) Development expenditures
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.
(7) Deferred Tax Assets
To the extent that it is very likely for the Group to have enough taxable income to be offset
against the deductible losses the Group shall recognize deferred income tax assets in
connection with the outstanding deductible losses. This requires the management to use lots of
judgments to estimate the acquisition time and amount of the taxable income to be acquired in
the future to determine the amount of deferred income tax assets to be recognized in
consideration of the tax payment planning strategy.
(8) Lessee incremental borrowing interest rate
For leases where the interest rate implicit in the lease cannot be determined the Company
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 Company takes
the observable interest rate as the reference basis for determining the incremental borrowing
rate according to the economic environment it is in. On this basis the Company adjusts the
reference interest rate according to its own situation the underlying asset situation the lease
term the amount of lease liabilities and other specific conditions of the lease business to obtain
the applicable incremental borrowing rate.
40. Changes in important accounting policies and accounting estimates
(1) Changes in important accounting policies
□Applicable √Not applicable
(2) Changes in important accounting estimates
□Applicable √Not applicable
(3) The first execution of new accounting standards or interpretations involving
adjustments to the financial statements at the beginning of the year of
implementation starting in 2026
□Applicable √Not applicable
41. Other
□Applicable √Not applicable
VI. Taxes
1. Main tax types and tax rates
Major taxes and tax rates
√Applicable □Not applicable
Tax Base of taxation Rate
The Company is a general taxpayer and the
taxable income is calculated for output tax at the
tax rates of 13% 9% and 6%. Value added tax is
Output tax is calculated based on the calculated and paid based on the difference after
sales revenue of goods and taxable deducting the input tax allowed for deduction in
services computed in accordance this period. In addition for the sale of
VAT with tax laws and after deducting the self-developed old real estate projects (the
input tax allowed to be credited in the contract commencement date specified in the
current period the balance is the Construction Engineering Construction Permit is
payable VAT. before April 30 2016) and the rental of real estateacquired by the Group before April 30 2016 the
simplified tax calculation method is applicable
and the payable tax amount is calculated and
paid at a 5% tax rate
The appreciation arising from the
Land appreciation compensated transfer of state-owned According to the ratio of value-added to deduction
tax land use rights and the property items a four-level progressive tax rate (30% torights of above-ground buildings and 60%) will be implemented for exceeding the rate.other attachments.If the tax is levied according to price
the amount is calculated and paid at
1.2% of the balance of the original
Real estate tax value of the property after a 30%deduction; if the tax is levied 1.2%/12%
according to rental the amount is
calculated and paid at 12% of the
rental income.Urban
maintenance and Actual amount of turnover tax paid. Paid at 5% or 7% of the actual turnover tax paid.construction tax
Education
surcharge Actual amount of turnover tax paid. Paid at 3% of the actual turnover tax paid.Local education
surcharge Actual amount of turnover tax paid. Paid at 2% of the actual turnover tax paid.Except for the tax incentives listed below and the
subsidiaries registered in Prague Czech
Corporate income Republic Hong Kong Special Administrative
tax Taxable income. Region Germany Kenya Rwanda and Dubaithe corporate income tax of the Company and its
subsidiaries within the Group is calculated and
paid at 25% of the taxable income.Disclosure of taxpayers subject to different income tax rates
√Applicable □Not applicable
Taxpayer Income tax rate (%)
Huafrica (Kenya) Investment Development Co. Limited 30.00
BETTER SILK ROAD RWANDA Ltd 30.00
European Huajie Investment Development Co. Ltd. 19.00
Yiwu China Commodities City (Hong Kong) International
Trade Co. Ltd. 16.50
Hong Kong Better Silk Road Co. Ltd. 16.50
Xunchi (Hong Kong) Digital Technology Co. Ltd. 16.50
Yiwu Digital Trade Technology Co. Ltd. 16.50
Yixin Digital Wealth Management Co. Ltd. 16.50
Yiwu China Commodities City (Germany) Co. Ltd. 15.00
Yiwu China Commodities City Big Data Co. Ltd. 15.00
Kuaijietong 15.00
Zhejiang Yiwugou E-commerce Co. Ltd. 15.00
BETTER SILK ROAD FZE Not subject to corporate income tax
2. Tax incentives
√Applicable □Not applicable
1. According to the Announcement on the Filing of High-tech Enterprises recognized by
Zhejiang Provincial Accreditation Agency in 2025 issued by the Office of the National High-tech
Enterprise Accreditation Management Leading Group Yiwu China Commodities City Big Data
Co. Ltd. has been listed in the filing list of high-tech enterprises recognized by Zhejiang
Provincial Accreditation Agency in 2025 and passed the recognition of high-tech enterprises.The Certificate number is GR202533004132. Date of issue: December 19 2025. Validity period:
three years. From January 1 2025 to December 31 2027 Yiwu China Commodities City Big
Data Co. Ltd. will be subject to a reduced corporate income tax rate of 15%.
2. According to the Announcement on the Filing of High-tech Enterprises recognized by
Zhejiang Provincial Accreditation Agency in 2024 issued by the Office of the National High-tech
Enterprise Accreditation Management Leading Group Kuaijietong Payment Service Co. Ltd.has been listed in the filing list of high-tech enterprises recognized by Zhejiang Provincial
Accreditation Agency in 2024 and passed the recognition of high-tech enterprises. The
Certificate number is GR202433009630. Date of issue: December 6 2024. Valid period: three
years. Kuaijietong Payment Service Co. Ltd. will be subject to a reduced enterprise income tax
rate of 15% from January 1 2024 to December 31 2026.
3. According to the Announcement on the Filing of High-tech Enterprises recognized by
Zhejiang Provincial Accreditation Agency in 2023 issued by the Office of the National High-tech
Enterprise Accreditation Management Leading Group Zhejiang Yiwugou E-commerce Co. Ltd.has been listed in the filing list of high-tech enterprises recognized by Zhejiang Provincial
Accreditation Agency in 2023 and passed the recognition of high-tech enterprises. The
Certificate number is GR202333013352. Date of issue: December 18 2024. Valid period: three
years. The high-tech enterprise qualification of Zhejiang Yiwugou E-commerce Co. Ltd. was
valid from January 1 2023 to December 31 2025. Given that the qualification requires
re-certification upon expiration Yiwugou Company currently files and pays corporate income
tax on a provisional basis at the preferential rate of 15%. The applicable tax rate will be adjusted
in accordance with the outcome of the re-certification.
3. Other
□Applicable √Not applicable
VII. Notes to items in consolidated financial statements
1. Monetary funds
√Applicable □Not applicable
Unit: RMB
Item Closing balance Opening balance
Cash on hand 71514.22 116170.82
Bank deposits 3317604608.01 6781590975.53
Other monetary funds 41820454.98 34282070.65
Total 3359496577.21 6815989217.00
In which: amount deposited abroad 31416362.21 37475708.55
Other notes
Monetary funds with restricted ownership or usage rights are detailed in Note VII. 31.Assets with restricted ownership or usage rights.
2. Held-for-trading financial assets
√Applicable □Not applicable
Unit: RMB
Reasons and
Item Closing balance Opening balance basis for
determination
Financial assets that are
measured by fair value and of
which the changes in fair value 574851137.20 2093640647.73 /
are recognized in the profit or
loss for the current period
Among them:
Wealth management
products - 1283121904.22 /
Structured deposits 100000000.00 502236388.89
Stocks 474851137.20 308282354.62 /
Total 574851137.20 2093640647.73 /
Other notes:
□Applicable √Not applicable
3. Derivative financial assets
□Applicable √Not applicable
4. Notes receivable
(1) List of notes receivable by category
□Applicable √Not applicable
(2) Notes receivable pledged by the Company at the end of the period
□Applicable √Not applicable
(3) Notes receivable that have been endorsed or discounted by the Company at the end
of the period and have not yet matured on the balance sheet date
□Applicable √Not applicable
(4) Categorized disclosure based on the bad debt provision method
□Applicable √Not applicable
Accounts receivable for which bad debt provision is made individually:
□Applicable √Not applicable
Explanation for making bad debt provision for accounts receivable by group:
□Applicable √Not applicable
Provision for bad debts based on the general model of expected credit losses
□Applicable √Not applicable
Classification basis and bad debt provision ratio for each stage
None
Explanation of significant changes in the book balance of accounts receivable with changes in
loss provisions in this period:
□Applicable √Not applicable
(5) Provisions for bad debts
□Applicable √Not applicable
In which the recovered or reversed amount is important:
□Applicable √Not applicable
Other notes:
None
(6) Notes receivable actually written off during the current period
□Applicable √Not applicable
Important notes receivable written off:
□Applicable √Not applicable
Description of notes written off:
□Applicable √Not applicable
Other notes:
□Applicable √Not applicable
5. Accounts receivable
(1) Disclosure based on account age
√Applicable □Not applicable
Unit: RMB
Account age Closing book balance Opening book balance
Within one year (including one year) 390064734.09 424031116.49
Of which: within one year 390064734.09 424031116.49
1 to 2 years 23087017.23 16753805.37
2 to 3 years 14933428.09 20086638.67
Over 3 years 9196019.64 7740818.97
Total 437281199.05 468612379.50
(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
Amount Proportion Provision Book value Proportion Provision Book value(%) Amount ratio (%) Amount (%) Amount ratio (%)
Accounts
receivable for which
bad debt provision 31323548.18 7.16 23887584.51 76.26 7435963.67 31323548.18 6.68 23887584.51 76.26 7435963.67
is made individually
Among them:
Lease receivables 6261907.10 1.43 6261907.10 100.00 - 6261907.10 1.34 6261907.10 100.00 -
Trade receivables 25061641.08 5.73 17625677.41 70.33 7435963.67 25061641.08 5.34 17625677.41 70.33 7435963.67
Accounts
receivable for which
bad debt provision 405957650.87 92.84 8663414.56 2.13 397294236.31 437288831.32 93.32 6882192.03 1.57 430406639.29
is made by group
Among them:
Provision for bad
debts based on the
combination of credit 405957650.87 92.84 8663414.56 2.13 397294236.31 437288831.32 93.32 6882192.03 1.57 430406639.29
risk characteristics
Total 437281199.05 / 32550999.07 / 404730199.98 468612379.50 / 30769776.54 / 437842602.96
Accounts receivable for which bad debt provision is made individually:
√Applicable □Not applicable
Unit: RMB
Name Closing balanceBook balance Bad debt provision Provision ratio (%) Reason for provision
Zhejiang Jielian Network Technology Co. Ltd. 6261907.10 6261907.10 100.00 The operating conditions have deteriorated and recoveryis deemed unlikely.Trade receivables 25061641.08 17625677.41 70.33 The operating conditions have deteriorated and fullrecovery is deemed unlikely.Total 31323548.18 23887584.51 76.26 /
Explanation for making bad debt provision for accounts receivable individually:
□Applicable √Not applicable
Explanation for making bad debt provision for accounts receivable by group:
√Applicable □Not applicable
Combined provision items: combined provision for bad debts based on credit risk
characteristics
Unit: RMB
Name Closing balanceBook balance Bad debt provision Provision ratio (%)
Within 1 year 387834189.66 1967814.01 0.51
1 - 2 years 12915616.81 3127884.73 24.22
2 - 3 years 2273731.86 633603.28 27.87
Over 3 years 2934112.54 2934112.54 100.00
Total 405957650.87 8663414.56 2.13
Description of combined provision for bad debts:
□Applicable √Not applicable
Provision for bad debts based on the general model of expected credit losses
□Applicable √Not applicable
Classification basis and bad debt provision ratio for each stage
None
Explanation of significant changes in the book balance of accounts receivable with changes in
loss provisions in this period:
□Applicable √Not applicable
(3) Provisions for bad debts
√Applicable □Not applicable
Unit: RMB
Amount of change during the
Category Opening balance current periodRecovery or Closing balanceProvision reversal
Accounts receivable for which bad
debt provision is made individually 23887584.51 - - 23887584.51
Accounts receivable for which bad
debt provision is made by group 6882192.03 1781222.53 - 8663414.56
Total 30769776.54 1781222.53 - 32550999.07
In which the recovered or reversed amount is important:
□Applicable √Not applicable
Other notes:
None
(4) Accounts receivable actually written off during the current period
□Applicable √Not applicable
Information of write-off of important accounts receivable
□Applicable √Not applicable
Description of accounts receivable written off:
□Applicable √Not applicable
(5) Five debtors with the highest closing balances of accounts receivable and contract
assets
√Applicable □Not applicable
Unit: RMB
Closing Closing Closing balance Proportion in the total Closingclosing balance of
Debtor balance of balance of of accounts balance ofaccounts contract receivable and accounts receivable
assets and contract assets
bad debt
receivable contract assets (%) provision
Yiwu Xiaozici
Construction and
Development Co. 97105877.91 - 97105877.91 22.21 -
Ltd.Zhejiang Dejiang
Stone Co. Ltd. 15058000.00 - 15058000.00 3.44 -
Dalian Guanglong
Zhongbang
International Trade 12659696.23 - 12659696.23 2.90 12659696.23
Co. Ltd.Dongguan Sujin
Network Technology 10171400.42 - 10171400.42 2.33 4551400.42
Co. Ltd.Zhejiang Zhongtong
Yunpei Food Co. Ltd. 7965300.00 - 7965300.00 1.82 -
Total 142960274.56 - 142960274.56 32.70 17211096.65
Other notes
None
Other notes:
□Applicable √Not applicable
6. Contract assets
(1) Contract assets situation
□Applicable √Not applicable
(2) The amount and reasons for significant changes in book value during the reporting
period
□Applicable √Not applicable
(3) Categorized disclosure based on the bad debt provision method
□Applicable √Not applicable
Accounts receivable for which bad debt provision is made individually:
□Applicable √Not applicable
Explanation for making bad debt provision for accounts receivable individually:
□Applicable √Not applicable
Explanation for making bad debt provision for accounts receivable by group:
□Applicable √Not applicable
Provision for bad debts based on the general model of expected credit losses
□Applicable √Not applicable
Classification basis and bad debt provision ratio for each stage
None
Explanation of significant changes in the book balance of contract assets with changes in loss
provisions in this period:
□Applicable √Not applicable
(4) Provision for bad debts of contract assets in this period
□Applicable √Not applicable
In which the recovered or reversed amount is important:
□Applicable √Not applicable
Other notes:
None
(5) Actual written-off contract assets in this period
□Applicable √Not applicable
Among them important contract assets write off
□Applicable √Not applicable
Description of contract assets written off:
□Applicable √Not applicable
Other notes:
□Applicable √Not applicable
7. Receivables Financing
(1) Accounts receivable financing listed by classification
□Applicable √Not applicable
(2) Accounts receivable financing pledged by the Company at the end of the period
□Applicable √Not applicable
(3) Accounts receivable financing that has been endorsed or discounted by the
Company at the end of the period and has not yet matured on the balance sheet date
□Applicable √Not applicable
(4) Categorized disclosure based on the bad debt provision method
□Applicable √Not applicable
Accounts receivable for which bad debt provision is made individually:
□Applicable √Not applicable
Explanation for making bad debt provision for accounts receivable individually:
□Applicable √Not applicable
Explanation for making bad debt provision for accounts receivable by group:
□Applicable √Not applicable
Provision for bad debts based on the general model of expected credit losses
□Applicable √Not applicable
Classification basis and bad debt provision ratio for each stage
None
Explanation of significant changes in the financing book balance of accounts receivable with
changes in loss provisions in this period:
□Applicable √Not applicable
(5) Provisions for bad debts
□Applicable √Not applicable
In which the recovered or reversed amount is important:
□Applicable √Not applicable
Other notes:
None
(6) Accounts receivable financing actually written off in this period
□Applicable √Not applicable
Among them important accounts receivable financing written off
□Applicable √Not applicable
Explanation of writing-off:
□Applicable √Not applicable
(7) Changes in accounts receivable financing and changes in fair value in this period:
□Applicable √Not applicable
(8) Other notes:
□Applicable √Not applicable
8. Prepayments
(1) Presentation of prepayments by aging
√Applicable □Not applicable
Unit: RMB
Account age Closing balance Opening balanceAmount Proportion (%) Amount Proportion (%)
Within 1 year 3933625241.83 98.24 1482842138.79 96.48
1 to 2 years 44196647.75 1.10 29545762.53 1.92
2 to 3 years 4408352.85 0.11 284214.03 0.02
Over 3 years 21861366.95 0.55 24339286.95 1.58
Total 4004091609.38 100.00 1537011402.30 100.00
Explanation for failure to settle the prepayments with an account age longer than one year and
in important amounts:
None
(2) The five largest advances to suppliers aggregated by debtor at the end of the period
√Applicable □Not applicable
Unit: RMB
Proportion in total
Debtor Closing balance closing balance of
prepayments (%)
JBS S.A. 454197135.47 11.34
Binzhou Yellow River Oasis Agricultural
Development Co. Ltd. 348417840.00 8.70
INDUSTRIAL PESQUERA SANTA PRISCILA S.A. 247357280.78 6.18
NATURAFRIG ALIMENTOS LTDA 155593663.72 3.89
Sociedad Nacional de Galapagos C.A. SONGA 148184125.07 3.70
Total 1353750045.04 33.81
Other notes:
None
Other notes
□Applicable √Not applicable
9. Other receivables
Presentation of items
√Applicable □Not applicable
Unit: RMB
Item Closing balance Opening balance
Other receivables 158098409.97 188280323.27
Total 158098409.97 188280323.27
Other notes:
□Applicable √Not applicable
Interest receivable
(1) Classification of interest receivable
□Applicable √Not applicable
(2) Significant overdue interest
□Applicable √Not applicable
(3) Categorized disclosure based on the bad debt provision method
□Applicable √Not applicable
Accounts receivable for which bad debt provision is made individually:
□Applicable √Not applicable
Explanation for making bad debt provision for accounts receivable individually:
□Applicable √Not applicable
Explanation for making bad debt provision for accounts receivable by group:
□Applicable √Not applicable
(4) Provision for bad debts based on the general model of expected credit losses
□Applicable √Not applicable
(5) Provisions for bad debts
□Applicable √Not applicable
In which the recovered or reversed amount is important:
□Applicable √Not applicable
Other notes:
None
(6) Interest receivable actually written off in this period
□Applicable √Not applicable
Important interest receivable written off among them
□Applicable √Not applicable
Explanation of writing-off:
□Applicable √Not applicable
Other notes:
□Applicable √Not applicable
Dividend receivable
(1) Dividend receivable
□Applicable √Not applicable
(2) Important dividend receivable with an account age longer than 1 year
□Applicable √Not applicable
(3) Categorized disclosure based on the bad debt provision method
□Applicable √Not applicable
Accounts receivable for which bad debt provision is made individually:
□Applicable √Not applicable
Explanation for making bad debt provision for accounts receivable individually:
□Applicable √Not applicable
Explanation for making bad debt provision for accounts receivable by group:
□Applicable √Not applicable
(4) Provision for bad debts based on the general model of expected credit losses
□Applicable √Not applicable
(5) Provisions for bad debts
□Applicable √Not applicable
In which the recovered or reversed amount is important:
□Applicable √Not applicable
Other notes:
None
(6) Dividends receivable actually written off in this period
□Applicable √Not applicable
Important dividend receivables written off among them
□Applicable √Not applicable
Explanation of writing-off:
□Applicable √Not applicable
Other notes:
□Applicable √Not applicable
Other receivables
(1) Disclosure based on account age
√Applicable □Not applicable
Unit: RMB
Account age Closing book balance Opening book balance
Within one year (including one year) 134793203.52 169334848.99
Of which: within one year 134793203.52 169334848.99
1 to 2 years 4480119.16 2635511.17
2 to 3 years 1336785.58 1337822.13
Over 3 years 20727492.11 18268631.44
Bad debt provision for other receivables -3239190.40 -3296490.46
Total 158098409.97 188280323.27
(2) Classification based on the nature of accounts
√Applicable □Not applicable
Unit: RMB
Nature of receivable Closing book balance Opening book balance
Withholdings deposit and margin 150745297.28 160804796.10
Receivables from export tax rebate 9999550.10 30242723.85
Reserve 592752.99 529293.78
Total 161337600.37 191576813.73
(3) Bad debt provision
√Applicable □Not applicable
Unit: RMB
Stage 1 Stage 2 Stage 3
Expected credit Expected credit Expected credit
Bad debt provision loss in the loss in the entire loss in the entire
coming 12 duration (credit duration (credit
Total
months has not been has beenimpaired) impaired)
Balance on January 1
2026 3296490.46 3296490.46
Movements for the current
period
Provision made in the
current period 8529.06 8529.06
Current reversal 65829.12 65829.12
Balance on June 30 2026 3239190.40 3239190.40
Classification basis and bad debt provision ratio for each stage
None
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
Category Opening current period Closingbalance Provision Recovery or balancereversal
Bad debt provision for
other receivables 3296490.46 8529.06 65829.12 3239190.40
Total 3296490.46 8529.06 65829.12 3239190.40
Among them important recovered or reversed amounts:
□Applicable √Not applicable
Other notes
None
(5) Other receivables actually written off during the current period
□Applicable √Not applicable
Of which important write-offs of other receivables:
□Applicable √Not applicable
Notes on the write-off of other receivables:
□Applicable √Not applicable
(6) Other receivables from the five debtors with the highest closing balance
√Applicable □Not applicable
Unit: RMB
Weight in the total Closing
Debtor Closing closing balance of Nature of Account
balance
balance other receivables receivable age of bad
(%) debtprovision
Yiwu Taxation Bureau State Receivables Within 1
Administration of Taxation 9999550.10 6.20 from export tax -rebate year
Australia Alpine Group PTY LTD 8711379.42 5.40 Within 1year -
Yiwu Customs People’s Republic of
China 6074453.74 3.77 Withholdings
Within 1 -
FUNDACION PARA EL INTERCAMBIO deposit and
year
ENTRE YIWU Y ESPANA 5730821.07 3.55 margin years -
Yiwu Weiniuke Trading Co. Ltd 4555000.00 2.82 Within 1year -
Total 35071204.33 21.74 / / -
(7) Reported as other receivables due to centralized fund management
□Applicable √Not applicable
Other notes:
□Applicable √Not applicable
10. Inventory
(1) Inventory classification
√Applicable □Not applicable
Unit: RMB
Closing balance Opening balance
Provision for
Item inventory
Provision for inventory
Book balance depreciation/provisio
depreciation/provision
n for impairment of Book value Book balance for impairment of Book value
contract performance contract performance
cost cost
Raw materials 127637.49 - 127637.49 64260.94 - 64260.94
Finished goods 281493272.80 - 281493272.80 1060563849.21 - 1060563849.21
Development cost 1049804876.84 - 1049804876.84 803960383.53 - 803960383.53
Development
products 77317726.07 - 77317726.07 520741008.66 - 520741008.66
Total 1408743513.20 - 1408743513.20 2385329502.34 - 2385329502.34
(2) Data resources confirmed as inventory
□Applicable √Not applicable
(3) Provision for inventory depreciation/provision for impairment of contract
performance cost
□Applicable √Not applicable
The reason for the reversing or charging off provision for inventory depreciation in this period
□Applicable √Not applicable
Provision for inventory depreciation by combination
□Applicable √Not applicable
The provision standards for provision for inventory depreciation by combination
□Applicable √Not applicable
(4) The capitalized amount of borrowing costs contained in the closing balance of
inventory and its calculation criteria and basis
√Applicable □Not applicable
Unit: RMB
Amount of borrowing
Item costs capitalized Calculation standards andincluded in the closing basis for capitalized amount
balance
The capitalization amount is
Yiwu Global Digital Trade Center recognized based on the
Sales Project 17615018.59 borrowing interest rate andthe timing when capitalization
criteria are met.The capitalization amount is
The portion proposed to be sold recognized based on the
of the Company's Hangzhou 3566837.05 borrowing interest rate and
Enclave Project the timing when capitalization
criteria are met.Sub-total 31264713.40 /
(5) Explanation of amortization amount of contract performance cost in the current
period
□Applicable √Not applicable
Other notes:
√Applicable □Not applicable
Inventory-Development Cost Unit: RMB Currency: RMB
Item Estimated total Opening Increase in theinvestment balance current period Closing balance
Yiwu Global Digital
Trade Center
Office Building and 3662400000.00 509442083.12 207458784.56 716900867.68
Commercial Street
Project
The portion
proposed to be
sold of the
Company's 558140000.00 294518300.41 38385708.75 332904009.16
Hangzhou Enclave
Project
Total 4220540000.00 803960383.53 245844493.31 1049804876.84
Inventory-Developed Products Unit: RMB Currency: RMB
Item Opening Increase in the Decrease in the Closingbalance current period current period balance
Yiwu Global Digital
Trade Centre—Phases
T3–T7 and 520741008.66 - 443423282.59 77317726.07
Commercial Street
Project
Total 520741008.66 - 443423282.59 77317726.07
11. Held-for-sale assets
□Applicable √Not applicable
12. Non-current assets due within one year
√Applicable □Not applicable
Unit: RMB
Item Closing balance Opening balance
Entrusted Loans 48065999.99 48073333.33
Total 48065999.99 48073333.33
Debt investments due within one year
□Applicable √Not applicable
Other debt investments due within one year
□Applicable √Not applicable
Other statement for non-current assets due within one year
None
13. Other current assets
√Applicable □Not applicable
Unit: RMB
Item Closing balance Opening balance
Payment business reserve 656792051.04 928684511.79
To-be-deducted input tax 314112166.41 236032908.91
To-be-certified input tax 70284875.60 71495591.07
Prepaid value-added tax 19494401.09 91212190.51
Advance income tax 11241222.48 12238812.84
Entrusted loans to the market traders 1574401.27 1574401.27
Less: bad debt provision for entrusted loans -185500.00 -185500.00
Prepayment of other taxes 14715421.90 11854293.75
Total 1088029039.79 1352907210.14
Information related to compensatory assets
□Applicable √Not applicable
Other notes:
None
14. Debt investments
(1) Debt investments
□Applicable √Not applicable
Changes in provision for impairment of debt investments in this period
□Applicable √Not applicable
(2) Important debt investment at the end of the period
□Applicable √Not applicable
(3) Provision for impairment
□Applicable √Not applicable
Segmentation basis and provision ratio for impairment in each stage:
None
Explanation of significant changes in the book balance of debt investments with changes in loss
provisions in this period:
□Applicable √Not applicable
Amount of impairment provision for the current period and the basis for assessing whether there
is significant increase in the credit risk of financial instruments:
□Applicable √Not applicable
(4) Debt investments actually written off in this period
□Applicable √Not applicable
Important debt investments written off among them
□Applicable √Not applicable
Description of debt investments written off:
□Applicable √Not applicable
Other notes:
None
15. Other debt investments
(1) Other debt investments
□Applicable √Not applicable
Changes in provision for impairment of other debt investments in this period
□Applicable √Not applicable
(2) Other significant debt investments at the end of the period
□Applicable √Not applicable
(3) Provision for impairment
□Applicable √Not applicable
(4) Other debt investments actually written off in this period
□Applicable √Not applicable
Important other debt investments written off among them
□Applicable √Not applicable
Description of other debt investments written off:
□Applicable √Not applicable
Other notes:
□Applicable √Not applicable
16. Long-term receivables
(1) Long-term receivables
√Applicable □Not applicable
Unit: RMB
Closing balance Opening balance Range
Item ofBook balance Bad debt Bad debtprovision Book value Book balance provision Book value discountrate
Guarantee deposit 8163166.91 - 8163166.91 8554420.30 - 8554420.30
Financial assistance
receivable from joint 260489038.85 - 260489038.85 255266032.72 - 255266032.72
ventures
Total 268652205.76 - 268652205.76 263820453.02 - 263820453.02 /
(2) Categorized disclosure based on the bad debt provision method
□Applicable √Not applicable
Accounts receivable for which bad debt provision is made individually:
□Applicable √Not applicable
Explanation for making bad debt provision for accounts receivable individually:
□Applicable √Not applicable
Explanation for making bad debt provision for accounts receivable by group:
□Applicable √Not applicable
Provision for bad debts based on the general model of expected credit losses
□Applicable √Not applicable
(3) Provisions for bad debts
□Applicable √Not applicable
In which the recovered or reversed amount is important:
□Applicable √Not applicable
Other notes:
None
(4) Actual long-term accounts receivable written off in this period
□Applicable √Not applicable
Important long-term accounts receivable written off among them
□Applicable √Not applicable
Explanation of writing-off:
□Applicable √Not applicable
Other notes:
□Applicable √Not applicable
17. Long-term equity investment
(1) Long-term equity investment situation
√Applicable □Not applicable
Unit: RMB
Change in the current period
Investment gains Closing
Investee Opening balance Decrease in or losses
Declared
(Book value) distribution of
Closing balance balance of
investment recognized with (Book value) impairmentthe equity cash dividends
method or profits
provision
1. Joint ventures
Yiwu Shanglv 495087165.08 - 24817793.64 - 519904958.72 -
Yiwu Rongshang Property Co. Ltd. 65642099.07 - - - 65642099.07 -
Yiwu Chuangcheng Property 22432434.56 - 686036.15 - 23118470.71 -
Yiwu Guoshen Shangbo Property Co. Ltd. 230224100.33 - -198735.59 122500000.00 107525364.74 -
Other 34014884.69 129171.60 -2049277.52 - 31836435.57 3327216.16
Sub-total 847400683.73 129171.60 23255816.68 122500000.00 748027328.81 3327216.16
2. Associates
Yiwu Huishang Micro-finance Co. Ltd. 80417977.97 - 450350.41 - 80868328.38 -
Huishang Zijing 21735824.27 - 2292314.94 - 24028139.21 -
Chouzhou Financial Lease 616776809.63 - 74742545.92 - 691519355.55 -
Yiwu China Commodities City Investment Management Co. Ltd. - - - - - 9508049.22
Yiwu China Commodities City Fuxing Investment
Center (Limited Partnership) 102918559.00 - - - 102918559.00 -
Pujiang Lvgu Property Co. Ltd. 417546857.53 - 731079.98 - 418277937.51 -
CCCP 3005625118.73 - -565903.49 - 3005059215.24 -
Yiwu Hongyi Equity Investment Fund Partnership (Limited Partnership) 900126993.42 - 7135940.05 - 907262933.47 -
Zhijie Yuangang 150735923.03 - -2229843.83 - 148506079.20 -
Yiwu Huishang Redbud Phase II Investment Partnership
(limited partnership) 142443370.99 5256302.57 -306077.35 3543697.43 133337293.64 -
Other 151045334.01 - -856295.30 - 150189038.71 -
Sub-total 5589372768.58 5256302.57 81394111.33 3543697.43 5661966879.91 9508049.22
Total 6436773452.31 5385474.17 104649928.01 126043697.43 6409994208.72 12835265.38
(2) Impairment testing of long-term equity investments
□Applicable √Not applicable
Other notes
Unit: RMB
Investee Opening balance Increase in the Decrease in the Closingcurrent period current period balance
Yiwu China Commodities City Investment
Management Co. Ltd. [Note 1] 9508049.22 - - 9508049.22
Other 3327216.16 - - 3327216.16
Total 12835265.38 - - 12835265.38
Note 1: In 2017 the Company’s wholly-owned subsidiary CCCEI 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”). TheFOF as a limited partner invested in 12 sub-funds including Yiwu Shangfu Chuangzhi Investment Center (Limited Partnership) (“Shangfu ChuangzhiFund”). CCCEI has committed a capital contribution of RMB 998.00 million as a limited partner in the FOF accounting for 49.9% of the committed
capital with a paid-in capital of RMB 102.92 million and there is no specified deadline for the remaining unfunded commitment. The other limited
partner of the FOF is Fuxing. CCCEI also contributed RMB 9.8 million 49% of total shares to jointly establish Yiwu China Commodities City
Investment Management Co. Ltd. (hereinafter referred to as “CCCIM”) with Fuxing. CCCIM acts as the general partner of the above-mentioned FOF
and sub-funds. The FOF and CCCIM are both controlled by Fuxing and are joint ventures of CCCEI.CCCEI also serves as a limited partner in the Shangfu Chuangzhi Fund with a committed and paid-in capital contribution of RMB 617.51 million.Because this contribution is backed by a fixed-income guarantee from Fuxing it is recognized as other non-current financial assets. The above paid-in
capital contribution made by CCCEI 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 CCCEI’s capital contribution to
Shangfu Chuangzhi Fund as a limited partner Shangfu Chuangzhi Fund made capital contribution of RMB 820.54 million to subscribe for the increase
in the registered capital of Hubei Provincial Asset Management Co. Ltd. to acquire 22.667% equity therein.In 2018 during the follow-up management process CCCEI learned that Fuxing and its actual controller Zhu Yidong were suspected of criminal
activities. The 22.667% equity held in Hubei Asset Management Co. Ltd. by Shangfu Chuangzhi Fund was frozen by the Second Intermediate
People’s Court of Shanghai due to the funding source including contributions from Fuxing. As of June 30 2026 the Company considered that the
capital contributions to the FOF and the Shangfu Chuangzhi Fund are independent of Fuxing's contributions and are not impaired. However with
respect to the equity investment in CCCIM a full impairment provision has been made since 2018.18. Other equity instrument investments
(1) Investments in other equity instruments
√Applicable □Not applicable
Unit: RMB
Change in the current period Accumulated Cumulative Reason forDividend designing it as
Gains Losses
Opening income
gains losses
Item recognized in recognized in Closing recognized recognized in recognized in
measured at
balance other other balance in this other other
fair value
comprehensive comprehensive through othercomprehensive comprehensive period comprehensive
income for this income for the income income income
period current period
Shenwan
Hongyuan
Group Co. 661002071.26 -92816230.12 - 568185841.14 - 10920307.60 - Non-trading
Ltd.Total 661002071.26 -92816230.12 - 568185841.14 - 10920307.60 - /
(2) Description of termination of recognition in this period
□Applicable √Not applicable
Other notes:
□Applicable √Not applicable
19. Other non-current financial assets
√Applicable □Not applicable
Unit: RMB
Item Closing balance Opening balance
PE investment 1343944658.41 1364268158.68
Unlisted equity investment 194758798.82 194758798.82
NEEQ equity investment 36613499.09 36613499.09
Total 1575316956.32 1595640456.59
Other notes:
None
20. Investment Property
Measurement models
(1) Investment properties measured at cost
Unit: RMB
Item Buildings andstructures Land use right Total
I. Original book value
1. Opening balance 6305724772.28 1298459509.16 7604184281.44
2. Increase in the current
period - - -
(1) Purchased - - -
3. Decrease in the current
period 377976871.57 73414078.51 451390950.08
(1) Disposal 374550332.12 72038815.36 446589147.48
(2) Other transfer-out - - -
(3)Other decrease 3426539.45 1375263.15 4801802.60
4. Closing balance 5927747900.71 1225045430.65 7152793331.36
II. Accumulated depreciation and accumulated amortization
1. Opening balance 1048756372.55 199620105.61 1248376478.16
2. Increase in the current
period 113076880.13 20863207.75 133940087.88
(1) Provision or
amortization 113076880.13 20863207.75 133940087.88
3. Decrease in the current
period 13272277.73 12422676.56 25694954.29
(1) Disposal 13272277.73 12422676.56 25694954.29
4. Closing balance 1148560974.95 208060636.80 1356621611.75
III. Depreciation provision
1. Opening balance - - -
4. Closing balance - - -
IV. Book value
1. Closing book value 4779186925.76 1016984793.85 5796171719.61
2. Opening book value 5256968399.73 1098839403.55 6355807803.28
(2) Investment properties for which property ownership certificates have not been
obtained:
□Applicable √Not applicable
(3) Impairment testing of investment real estate using cost measurement model
□Applicable √Not applicable
Other notes
□Applicable √Not applicable
21. Fixed assets
Presentation of items
√Applicable □Not applicable
Unit: RMB
Item Closing balance Opening balance
Fixed assets 7540344417.07 7695778566.77
Total 7540344417.07 7695778566.77
Other notes:
None
Fixed assets
(1) Overview of fixed assets
√Applicable □Not applicable
Unit: RMB
Item Buildings and Machinery Transportationstructures equipment equipment Total
I. Original book value:
1. Opening balance 9678245974.05 4756334244.75 16743149.02 14451323367.82
2. Increase in the current period 54099040.14 71969992.06 634852.38 126703884.58
(1) Purchase - 4930322.13 634852.38 5565174.51
(2) Changeover from
construction in 54099040.14 67039669.93 - 121138710.07
progress
3. Decrease in the
current period - 39018789.05 2150.00 39020939.05
(1) Disposal or retirement - 39018789.05 2150.00 39020939.05
4. Closing balance 9732345014.19 4789285447.76 17375851.40 14539006313.35
II. Accumulated depreciation
1. Opening balance 3344044277.55 3402418355.69 9082167.81 6755544801.05
2. Increase in the current period 162473604.41 117008199.04 1124566.97 280606370.42
(1) Provision 162473604.41 117008199.04 1124566.97 280606370.42
3. Decrease in the
current period 37487211.19 2064.00 37489275.19
(1) Disposal or retirement 37487211.19 2064.00 37489275.19
4. Closing balance 3506517881.96 3481939343.54 10204670.78 6998661896.28
III. Depreciation provision
1. Opening balance - - - -
4. Closing balance - - - -
IV. Book value
1. Closing book value 6225827132.23 1307346104.22 7171180.62 7540344417.07
2. Opening book value 6334201696.50 1353915889.06 7660981.21 7695778566.77
(2) Temporarily idle fixed assets
□Applicable √Not applicable
(3) Fixed assets leased out through operating lease
□Applicable √Not applicable
(4) Fixed assets for which the ownership certificates have not been obtained
√Applicable □Not applicable
Unit: RMB
Item Book value Reasons for having not obtained the ownershipcertificate
Huangyuan 189429329.12 The property rights application process has not yetClothing Market been completed
CCC Hotel 42449858.47 The property rights application process has not yetbeen completed
Sub-total 231879187.59 /
(5) Impairment testing of fixed assets
□Applicable √Not applicable
Other notes:
□Applicable √Not applicable
Fixed asset liquidation
□Applicable √Not applicable
22. Construction in progress
Presentation of items
√Applicable □Not applicable
Unit: RMB
Item Closing balance Opening balance
Construction in progress 398677168.91 187453942.15
Total 398677168.91 187453942.15
Other notes:
None
Construction in progress
(1) Overview of construction in progress
√Applicable □Not applicable
Unit: RMB
Closing balance Opening balance
Item Book balance Impairment Book value Book balance Impairmentprovision provision Book value
"Belt and Road" Innovation
Center 169143563.04 - 169143563.04 87851862.80 - 87851862.80
Global Service Trade Center 121731375.88 - 121731375.88 - - -
Global Digital Trade Center - - - 61915685.79 - 61915685.79
Proposed retained portion of
the Company’s Hangzhou 35254303.98 - 35254303.98 1545782.40 - 1545782.40
Enclave Project
The Yiwu Comprehensive
Bonded Zone Project - - 33104153.82 - 33104153.82
Ocean Hotel Renovation and
Upgrading 24648413.80 - 24648413.80 - - -
Other projects 47899512.21 - 47899512.21 3036457.34 - 3036457.34
Total 398677168.91 - 398677168.91 187453942.15 - 187453942.15
(2) Changes to important construction in progress during the current period
√Applicable □Not applicable
Unit: RMB 10000
Amount Ratio of
transferr In which:
Increase ed to accumu Accumul capitalize Interest
Item Budget Opening in the
investme Closing lated capitalization
nt
[Note 2] balance current balanc investm
Progress ated d interest Source of
propertie e ent to of project capitalize in the
ratio for the funds
period s during budget d interest current
current
this period period (%)period (%)
Global
Digital 8698.22 - Self-owned
Trade 464866.00 6191.57 2506.65 100.00 100.00% 6268.54 - - /financing
Center
Global
Service
Trade 587643.58 - 12173.14
- 12173.14 3.14 3.14% 120.97 120.97 2.02 Self-owned/financing
Center
Total 1052509.58 6191.57 14679.79 8698.22 12173.14 / / 6389.51 120.97 / /
Note 2: The budget amount is for the project construction investment budget excluding land
acquisition costs.
(3) Provision for impairment of construction in progress in this period
□Applicable √Not applicable
(4) Impairment testing of construction in progress
□Applicable √Not applicable
Other notes
□Applicable √Not applicable
Engineering materials
□Applicable √Not applicable
23. Productive biological assets
(1) Productive biological assets measured at cost
□Applicable √Not applicable
(2) Impairment testing of productive biological assets using cost measurement model
□Applicable √Not applicable
(3) Productive biological assets measured at fair value
□Applicable √Not applicable
Other notes
□Applicable √Not applicable
24. Oil and gas assets
(1) Situation of oil and gas assets
□Applicable √Not applicable
(2) Impairment testing of oil and gas assets
□Applicable √Not applicable
Other notes:
None
25. Right-of-use assets
(1) Situation of right-of-use assets
√Applicable □Not applicable
Unit: RMB
Item Buildings and structures Land Total
I. Original book value
1. Opening balance 138979573.53 120503884.69 259483458.22
2. Increase in the
current period - - -
3. Decrease in the
current period 9364182.70 - 9364182.70
(1) Due 2123051.34 - 2123051.34
(1) Other 7241131.36 - 7241131.36
4. Closing balance 129615390.83 120503884.69 250119275.52
II. Accumulated depreciation
1. Opening balance 101432918.63 24201616.70 125634535.33
2. Increase in the
current period 9364059.20 3025202.10 12389261.30
(1) Provision 9364059.20 3025202.10 12389261.30
3. Decrease in the
current period 7493565.43 - 7493565.43
(1) Disposal - - -
(2) Due 2123051.34 - 2123051.34
(3) Other 5370514.09 - 5370514.09
4. Closing balance 103303412.40 27226818.80 130530231.20
III. Depreciation provision
1. Opening balance - - -
4. Closing balance - - -
IV. Book value
1. Closing book value 26311978.43 93277065.89 119589044.32
2. Opening book value 37546654.90 96302267.99 133848922.89
(2) Impairment testing of right-of-use assets
□Applicable √Not applicable
Other notes:
None
26. Intangible assets
(1) Intangible assets
√Applicable □Not applicable
Unit: RMB
Software and
Item Land use right software Data Total
copyright resources
I. Original book value
1. Opening balance 6815507962.33 257152422.30 33018411.60 7105678796.23
2. Increase in the
current period 3319876469.82 1613571.88 - 3321490041.70
(1) Purchase 3319876469.82 85270.00 - 3319961739.82
(2) Internal R&D - 1528301.88 - 1528301.88
3. Decrease in the
current period - 13283.67 - 13283.67
(2)Other - 13283.67 - 13283.67
4. Closing balance 10135384432.15 258752710.51 33018411.60 10427155554.26
II. Accumulated amortization
1. Opening balance 2284996104.07 93718330.86 3997840.84 2382712275.77
2. Increase in the
current period 127017052.51 9413822.79 1633472.11 138064347.41
(1) Provision 127017052.51 9413822.79 1633472.11 138064347.41
3. Decrease in the
current period - 13283.67 - 13283.67
(2)Other - 13283.67 - 13283.67
4. Closing balance 2412013156.58 103118869.98 5631312.95 2520763339.51
III. Depreciation provision
1. Opening balance - - - -
4. Closing balance - - - -
IV. Book value
1. Closing book value 7723371275.57 155633840.53 27387098.65 7906392214.75
2. Opening book value 4530511858.26 163434091.44 29020570.76 4722966520.46
The proportion of intangible assets developed internally during this period accounts for 1.57% of
the total intangible asset balance.
(2) Data resources confirmed as intangible assets
√Applicable □Not applicable
Unit: RMB
Item Self-developed dataresources as intangible assets Total
I. Original book value
1. Opening balance 33018411.60 33018411.60
4. Closing balance 33018411.60 33018411.60
II. Accumulated amortization
1. Opening balance 3997840.84 3997840.84
2. Increase in the current period 1633472.11 1633472.11
4. Closing balance 5631312.95 5631312.95
III. Depreciation provision
IV. Book value
1. Closing book value 27387098.65 27387098.65
2. Opening book value 29020570.76 29020570.76
Other notes:
Important Single Data Resource Status
Data Resource Content Closing book
Remaining
value AmortizationPeriod
The "AI Independent Website" project based on
AI-generated related technologies 8359087.27 101 months
The "AI Intelligent Translator" project based on
WEBSOCKET technology and SSM framework 5011683.97 92 months
Development of the “CCC Virtual Employee Agent” Product
Based on AI Large Language Model Technology 3409085.95 104 months
The "Xiaoshang Yingke" project based on SPRINGCLOUD
microservice framework technology 2847796.18 98 months
The "Xiaoshang Zhaohuo" project based on
SPRINGCLOUD microservice framework technology 2336521.02 95 months
Development of the “Alliance Website” System Based on
WordPress Multisite Technology 2003406.12 113 months
The "BenBen Zhaohuo" project based on SPRINGCLOUD
microservice framework technology 1758325.30 92 months
Development of the “Industry Website” System Based on
TRAE Technology 1661192.84 107 months
Sub-total 27387098.65 /
(3) Fixed assets for which the land use certificate have not been obtained
□Applicable √Not applicable
(4) Impairment testing of intangible assets
□Applicable √Not applicable
Other notes:
□Applicable √Not applicable
27. Goodwill
(1) Original book value of goodwill
√Applicable □Not applicable
Unit: RMB
Increase in the
The name of the invested current period
unit or matters forming Opening balance Formed by a Closing balance
goodwill business
combination
Zhejiang Xunchi Digital
Technology Co. Ltd. 284916367.87 - 284916367.87
Total 284916367.87 - 284916367.87
(2) Provision for impairment of goodwill
□Applicable √Not applicable
(3) Relevant information on the asset group or group of asset groups where goodwill
is located
√Applicable □Not applicable
Operating Whether it
Name The composition of the asset group or segment to which
was
combination to which it belongs and basis it belongs and consistent
basis with theprevious year
It is composed of Kuaijietong Payment Services
Co. Ltd. a subsidiary of Zhejiang Xunchi Digital
Technology Co. Ltd. Since the synergistic effect For internal
of the acquisition of Xunchi Group is reflected in management
Kuaijietong the Kuaijietong's subsidiaries the main cash purposes this
asset group flow generated by the Kuaijietong's subsidiaries asset group Yesis independent of other subsidiaries of the combination
Group and the Group manages the production belongs to other
activities of the Kuaijietong's subsidiaries segments.independently so the goodwill is allocated to
the Kuaijietong asset group.Changes in asset groups or asset group combinations
□Applicable √Not applicable
Other notes
√Applicable □Not applicable
In July 2022 the Company acquired 100% equity of Zhejiang Xunchi Digital Technology
Co. Ltd. and Kuaijietong Payment Services Co. Ltd. a wholly-owned subsidiary of Zhejiang
Xunchi Digital Technology Co. Ltd. resulting in a goodwill of RMB 284916367.87.
(4) The specific method for determining the recoverable amount
The recoverable amount is determined based on the net amount after deducting disposal
expenses from fair value
□Applicable √Not applicable
The recoverable amount is determined based on the present value of expected future cash
flows
□Applicable √Not applicable
Reasons for significant discrepancies between the aforementioned information and the
information used in previous year's impairment testing or external information
□Applicable √Not applicable
Reasons for significant discrepancies between the information used in the Company's previous
year’s impairment testing and the actual situation of that year
□Applicable √Not applicable
(5) Performance commitments and corresponding impairment of goodwill
When goodwill is formed there is a performance commitment and the reporting period or the
previous period in the reporting period is within the performance commitment period
□Applicable √Not applicable
Other notes:
□Applicable √Not applicable
28. Long-term deferred expenses
√Applicable □Not applicable
Unit: RMB
Item Opening balance Increase in the
Amortized
current period amount in the Closing balancecurrent period
Decoration of
buildings and 404194341.29 63380705.98 86806359.27 380768688.00
structures
Advertising
facilities 19705043.79 200444.17 2246837.94 17658650.02
Total 423899385.08 63581150.15 89053197.21 398427338.02
Other notes:
None
29. Deferred income tax assets/ deferred income tax liabilities
(1) Deferred income tax assets having not been offset
√Applicable □Not applicable
Unit: RMB
Closing balance Opening balance
Item Deductible Deferred Deductible Deferred
temporary income tax temporary income tax
difference assets difference assets
Provision for
impairment of assets 18343714.68 4585928.67 19419450.27 4522134.77
Recognized but
unpaid liabilities 197700828.56 49425207.14 201350270.22 50337567.56
Lease liability
temporary difference 108759978.20 27189994.55 104779642.36 26194910.59
Asset-related
government grants 67675941.67 16918985.42 69007271.67 17251817.92
Other non-current
financial assets 125015406.01 31253851.50 125015406.01 31253851.50
Changes in Fair Value
Total 517495869.12 129373967.28 519572040.53 129560282.34
(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 liabilities difference liabilities
Asset evaluation
appreciation for
merger of the 8304542.52 2076135.63 8399039.17 2099759.77
enterprises not under
common control
Change in fair value of
other equity
instruments 14560410.16 3640102.54 107376640.28 26844160.07
investment
Changes in fair value
of other non-current 324198645.68 81049661.42 324198645.68 81049661.42
financial assets
Changes in fair value
of trading financial 414851233.76 103712808.44 253640744.29 63410186.07
assets
Right-of-use asset
temporary difference 75827576.72 18956894.18 78852778.82 19713194.70
Total 837742408.84 209435602.21 772467848.24 193116962.03
(3) Deferred tax assets or liabilities presented as net amount after offsetting
√Applicable □Not applicable
Unit: RMB
Closing balance Opening balance
Balance of Balance of
Deferred deferred Deferred deferred
Item income tax income tax income tax income tax
assets and assets or assets and assets or
liabilities offset liabilities after liabilities offset liabilities after
offsetting offsetting
Deferred income tax
assets 42006241.38 87367725.90 63875187.53 65685094.81
Deferred income tax
liabilities 42006241.38 167429360.83 63875187.53 129241774.50
(4) Details of unconfirmed deferred tax assets
√Applicable □Not applicable
Unit: RMB
Item Closing balance Opening balance
Deductible temporary
difference 30281740.17 40317347.49
Deductible losses 215858368.72 170407115.70
Total 246140108.89 210724463.19
(5) The deductible losses of unconfirmed deferred tax assets will expire in the
following years
√Applicable □Not applicable
Unit: RMB
Year Closing amount Opening amount Remarks
2026 28983430.87
2027 36756442.76 41724068.72
2028 4184939.23 4184939.23
2029 68920768.74 69409690.42
2030 25197865.34 26104986.46
2031 80798352.65
Total 215858368.72 170407115.70 /
Other notes:
√Applicable □Not applicable
The Group believes that the above temporary differences in fixed asset depreciation asset
impairment provisions and deductible losses of some subsidiaries can be offset in the
foreseeable future and it is expected that the Group will have sufficient pre-tax profits to offset
during the reversal period. Therefore the Group deemed it necessary to recognize the above
deferred income tax assets.
30. Other non-current assets
√Applicable □Not applicable
Unit: RMB
Closing balance Opening balance
Item Book balance Impairment Book value Book balance Impairmentprovision provision Book value
Prepaid land
transfer fees 206500000.00 - 206500000.00 372930000.00 - 372930000.00
Large-denominatio
n Certificates of 521813107.78 - 521813107.78 316806910.24 - 316806910.24
Deposit
Long-term asset
prepayment 4608274.73 - 4608274.73 24238916.11 - 24238916.11
Total 732921382.51 - 732921382.51 713975826.35 - 713975826.35
Information related to compensatory assets
□Applicable √Not applicable
Other notes:
None
31. Assets with restricted ownership or usage rights
√Applicable □Not applicable
Unit: RMB
Closing amount Opening amount
Restri Restri RestricItem Book balance Book value Restricti ction tionon type situati Book balance Book value ction situatio
on type n
Monetary Freezi
funds 35029191.03 35029191.03
Freezing [Note
etc. 3] 25578290.90 25578290.90 ng
[Note
etc. 3]
Held-for-trad
ing financial 474851137.20 474851137.20 Restricte [Note
Restri
d sale 4] 308282354.62 308282354.62 cted
[Note
assets sale 4]
Long-term
equity 102918559.00 102918559.00 Frozen [Note5] 102918559.00 102918559.00
Froze [Note
investment n 5]
Other
non-current
financial 664361085.31 664361085.31 Frozen
[Note Froze [Note
5] 664361085.31 664361085.31 n 5]
assets
Other
current 656792051.04 656792051.04 Pledged [Note 928684511.79 928684511.79 Pledg [Note
assets 6] ed 6]
Total 1933952023.58 1933952023.58 / / 2029824801.62 2029824801.62 / /
Other notes:
[Note 3] As of June 30 2026 bank deposits with a book value of RMB 0 (December 31
2025: RMB 12613.00) were frozen by judicial order; bank deposits with a book value of RMB
6026560.76 (December 31 2025: RMB 6330105.78) were restricted in ownership or right of
use as risk reserves for express payment services; other monetary funds with a book value of
RMB 8113674.92 (December 31 2025: RMB 7256353.12) were restricted in ownership or
right of use as deposits for foreign exchange locking services; and other monetary funds with a
book value of RMB 20888955.35 (December 31 2025: RMB 11979219.00) were restricted in
ownership or right of use due to restrictions on Yiwu Pay platform.[Note 4] As of June 30 2026 stocks with a book value of RMB 474851137.20 (December
31 2025: RMB 308282354.62) are restricted in ownership or usage rights due to being under
a lock-up period;
[Note 5] As of June 30 2026 long-term equity investments with a book value of RMB
102918559.00 (December 31 2025: RMB 102918559.00) and other non-current financial
assets valued at RMB 664361085.31 (December 31 2025: RMB 664361085.31) were frozen
by the Second Intermediate People’s Court of Shanghai as detailed in Note VII.17;
[Note 6] As of June 30 2026 the reserve funds for payment business with a book value of
RMB 656792051.04 (December 31 2025: RMB 928684511.79) represent dedicated bank
deposit accounts opened by the Company in accordance with the Administrative Measures for
Payment Services of Non-Financial Institutions and the Measures for the Custody of Customer
Reserve Funds of Payment Institutions. 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 parts of the Company's business.
32. Short-term borrowings
(1) Classification of short-term loans
□Applicable √Not applicable
(2) Overdue short-term borrowings
□Applicable √Not applicable
Other notes:
□Applicable √Not applicable
33. Trading financial liabilities
□Applicable √Not applicable
Other notes:
□Applicable √Not applicable
34. Derivative financial liabilities
□Applicable √Not applicable
35. Notes Payable
□Applicable √Not applicable
36. Accounts payable
(1) Presentation of accounts payable
√Applicable □Not applicable
Unit: RMB
Item Closing balance Opening balance
Accounts payable for market and auxiliary
works projects 1496441747.87 1583931068.34
Accounts payable for logistics park projects 108618655.77 118872831.16
Accounts payable for procurement for the
hotel project 104416184.83 102983481.74
Trade payables 98365569.62 75246687.31
Other 129078411.66 114892877.01
Total 1936920569.75 1995926945.56
(2) Important accounts payable with an aging of over 1 year or overdue
□Applicable √Not applicable
Other notes:
√Applicable □Not applicable
The accounts payable are free of interest and are generally paid within two months after
receipt of the payment notice or based on the project contracts and progress of projects. The
balance payments for the projects are made after completion of settlement.
37. Advance receipts
(1) Presentation of advance receipts
√Applicable □Not applicable
Unit: RMB
Item Closing balance Opening balance
Rental advances 191048432.00 229642233.61
Advance receipt of merchant payment 2377300.00 2542249.00
Other 6853731.49 5845940.81
Total 200279463.49 238030423.42
(2) Significant advance payment with more than one year of account age
□Applicable √Not applicable
(3) The amount and reasons for significant changes in book value during the reporting
period
□Applicable √Not applicable
Other notes:
√Applicable □Not applicable
Due to advance payments primarily coming from advance rents and prepaid merchant
payments with individual amounts being relatively small there were no individual large
advance payments with aging exceeding one year as of June 30 2026.
38. Contract liabilities
(1) Contract liabilities
√Applicable □Not applicable
Unit: RMB
Item Closing balance Opening balance
Advances from customers for use fee of shops 4059552383.46 4876306790.46
Advances from customers for goods 2496591605.21 1634315793.28
Advances from customers for housing purchase 541762288.09 379334514.66
Advance receipts for digital platform usage fees 241971797.42 346041815.21
Advances from customers for advertising fee 29045809.57 39531528.81
Advances from customers for use fee of
networking cables 22430028.35 25313496.83
Other 173530640.70 162369255.04
Total 7564884552.80 7463213194.29
(2) Significant contractual liabilities with an aging of over 1 year
□Applicable √Not applicable
(3) The amount and reasons for significant changes in book value during the reporting
period
□Applicable √Not applicable
Other notes:
√Applicable □Not applicable
Collections on pre-sold properties
Unit: RMB
Closing balance
Item of the current Opening balance Presale ratio
period (%)
Yiwu Global Digital Trade Center Sales
Project 541762288.09 379334514.66 100.00
Sub-total 541762288.09 379334514.66 /
39. Employee compensation payable
(1) Employee compensation payable
√Applicable □Not applicable
Unit: RMB
Decrease in
Item Opening Increase in thebalance current period the current
Closing
period balance
I. Short-term
compensation 305407946.77 218718407.12 319463796.10 204662557.79
II. Post employment
benefits – defined 159842.93 34841820.77 35001663.70 -
contribution plan
III. Severance benefits - 1788429.84 1788429.84 -
Total 305567789.70 255348657.73 356253889.64 204662557.79
(2) List of short-term compensation
√Applicable □Not applicable
Unit: RMB
Item Opening Increase in the Decrease in thebalance current period current period Closing balance
1. Salary bonus allowance and
subsidy 305223325.74 163045644.66 264087655.96 204181314.44
2. Employee benefits - 22821453.45 22821453.45 -
3. Social security contribution 86420.62 14378518.47 14464939.09 -
In which: contribution to medical
insurance scheme 84483.35 13768614.97 13853098.32 -
Contribution to work-related
injury insurance scheme 1937.27 577328.03 579265.30 -
Contribution to maternity
insurance scheme - 32575.47 32575.47 -
4. Housing provident fund 97816.00 14041070.00 14138886.00 -
5. Contribution to trade union fund
and employee education fund 384.41 4431720.54 3950861.60 481243.35
Total 305407946.77 218718407.12 319463796.10 204662557.79
(3) List of defined contribution plans
√Applicable □Not applicable
Unit: RMB
Decrease in
Item Opening Increase in the Closingbalance current period the currentperiod balance
1. Contribution to the
basic endowment 154999.20 24824767.61 24979766.81 -
insurance scheme
2. Contribution to the
unemployment insurance 4843.73 793553.16 798396.89 -
scheme
3. Enterprise annuity
payment - 9223500.00 9223500.00 -
Total 159842.93 34841820.77 35001663.70 -
Other notes:
□Applicable √Not applicable
40. Tax payable
√Applicable □Not applicable
Unit: RMB
Item Closing balance Opening balance
VAT 6958724.00 173928580.31
Corporate income tax 401144350.04 381644638.87
Individual income tax 5681740.59 2336085.66
Urban maintenance and
construction tax 7977461.71 12772490.89
Real estate tax 56579962.72 113645002.11
Land use tax 33324369.40 63494166.67
Land appreciation tax 89516568.68 631065.89
Other 8163442.39 12071789.53
Total 609346619.53 760523819.93
Other notes:
None
41. Other payables
(1) Presentation of items
√Applicable □Not applicable
Unit: RMB
Item Closing balance Opening balance
Dividend payable 1546587346.00 -
Other payables 978821593.65 1013981521.93
Total 2525408939.65 1013981521.93
(2) Interest payable
□Applicable √Not applicable
(3) Dividend payable
√Applicable □Not applicable
Unit: RMB
Item Closing balance Opening balance
Common stock dividends 1546587346.00 -
Total 1546587346.00 -
Other explanations for important dividends payable that have not been paid for more than one
year include disclosure of the reasons for non-payment:
None
(4) Other payables
Presentation of other payables by nature
√Applicable □Not applicable
Unit: RMB
Item Closing balance Opening balance
Withholdings deposit and margin 611513215.73 543736334.35
Operating expenses payable 191010297.57 263984961.91
Pending investment refunds 159527921.86 182827484.57
Other 16770158.49 23432741.10
Total 978821593.65 1013981521.93
Significant other payables with an aging of over 1 year or overdue
□Applicable √Not applicable
Other notes:
□Applicable √Not applicable
42. Held-for-sale liabilities
□Applicable √Not applicable
43. Non-current liabilities due within one year
√Applicable □Not applicable
Unit: RMB
Item Closing balance Opening balance
Long-term borrowings due within one year 30872179.10 67669588.00
Bonds payable due within one year 25358904.11 28805561.65
Lease liabilities due within 1 year 22312425.11 24512874.35
Total 78543508.32 120988024.00
Other notes:
None
44. Other current liabilities
√Applicable □Not applicable
Unit: RMB
Item Closing balance Opening balance
Payment business transactions 684276002.12 953993548.58
Tax for items to be charged off 277120423.31 184267095.06
Dividend payable to to-be-recognized accounts 5881354.90 4314386.90
Dividend announced but not collected before
listing 2083112.65 2083112.65
Total 969360892.98 1144658143.19
Changes in short-term bonds payable:
□Applicable √Not applicable
Other notes:
□Applicable √Not applicable
45. Long-term loan
(1) Classification of Long-term loans
√Applicable □Not applicable
Unit: RMB
Item Closing balance Opening balance
Credit loans 315047222.65 523894006.38
Long-term borrowings due within one year -30872179.10 -67669588.00
Total 284175043.55 456224418.38
Notes on the classification of long-term borrowings:
None
Other notes
√Applicable □Not applicable
As of June 30 2026 the annual interest rate for the above loans was 2.1%-2.4%
(December 31 2025: 2.1%-2.7%).
46. Bonds payable
(1) Bonds payable
√Applicable □Not applicable
Unit: RMB
Item Closing balance Opening balance
Bonds payable 2824581692.77 2827850288.14
Bonds payable due within one year -25358904.11 -28805561.65
Total 2799222788.66 2799044726.49
(2) Specific situation of payable bonds: (excluding preferred stocks perpetual bonds and other financial instruments classified as
financial liabilities)
√Applicable □Not applicable
Unit: RMB
Amount
Face Coupo Interest Premium/di transferred to
Whet
Name of her it
bond value n rate Issue date
Bond
term Amount issued
Opening accrued at scount bonds due
(RMB) (%) balance face value. amortizatio within one
Closing balance was
n year during over
this period due
MTN 100.00 2.10 Mar 27 2025 3 years 500000000.00 499890397.63 2732876.71 23637.28 2732876.71 499914034.91 No
MTN 100.00 2.09 Apr 24 2025 3 years 1000000000.00 999775244.53 3836438.36 46912.79 3836438.36 999822157.32 No
MTN 100.00 1.89 Jul 17 2025 3 years 500000000.00 499876538.80 9009863.01 23548.95 9009863.01 499900087.75 No
Corporate
bonds 100.00 1.94 Nov 13 2025 3 years 800000000.00 799502545.53 9779726.03 83963.15 9779726.03 799586508.68 No
Total / / / / 2800000000.00 2799044726.49 25358904.11 178062.17 25358904.11 2799222788.66 /
(3) Description of convertible corporate bonds
□Applicable √Not applicable
Accounting treatment and judgment basis for equity conversion
□Applicable √Not applicable
(4) Explanation of other financial instruments classified as financial liabilities
Basic information of other financial instruments such as preferred shares and perpetual bonds outstanding at the end of the reporting period
□Applicable √Not applicable
Changes in other financial instruments such as preferred shares and perpetual bonds outstanding at the end of the reporting period
□Applicable √Not applicable
Explanation of the basis for classifying other financial instruments as financial liabilities
□Applicable √Not applicable
Other notes:
□Applicable √Not applicable
47. Lease liabilities
√Applicable □Not applicable
Unit: RMB
Item Closing balance Opening balance
Undiscounted amount of finance
lease payables 218672303.30 231322254.28
Unrecognized financing charges -72533095.91 -77200258.02
Lease liabilities due within 1 year -22312425.11 -24512874.35
Total 123826782.28 129609121.91
Other notes:
Note: The Group uses the incremental borrowing rate of 2.81%-7.48% as the discount rate
to calculate book value to determine the lease liability and measure right-of-use assets.
48. Long-term payables
Presentation of items
□Applicable √Not applicable
Long-term payables
□Applicable √Not applicable
Special accounts payable
□Applicable √Not applicable
49. Long-term employee compensation payable
□Applicable √Not applicable
50. Estimated liabilities
□Applicable √Not applicable
51. Deferred income
Overview of deferred income
√Applicable □Not applicable
Unit: RMB
Opening Decrease inItem balance the current
Closing Cause of
period balance formation
Asset-related
government grants 116223417.33 2042066.84 114181350.49
Commencement
rewards etc.Total 116223417.33 2042066.84 114181350.49 /
Other notes:
□Applicable √Not applicable
52. Other non-current liabilities
√Applicable □Not applicable
Unit: RMB
Item Closing balance Opening balance
Contract liabilities 3411651616.22 4703511721.48
Total 3411651616.22 4703511721.48
Other notes:
None
53. Share capital
√Applicable □Not applicable
Unit: RMB
Increase or decrease in the current
period (+ -)
Opening balance New Bonus Closing balanceshares Sub-total
issued shares
Total
number of 5483559226.00 - - - 5483559226.00
shares
Other notes:
None
54. Other equity instruments
(1) Basic information of other financial instruments such as preferred shares and
perpetual bonds outstanding at the end of the reporting period
□Applicable √Not applicable
(2) Changes in other financial instruments such as preferred shares and perpetual
bonds outstanding at the end of the reporting period
□Applicable √Not applicable
Changes in other equity instruments in the current period the reasons therefor and the basis for
relevant accounting treatment:
□Applicable √Not applicable
Other notes:
□Applicable √Not applicable
55. Capital reserve
√Applicable □Not applicable
Unit: RMB
Increase in Decrease
Item Opening balance the current in the Closing balance
period currentperiod
Capital surplus (share
premium) 1657703265.51 - - 1657703265.51
Other 749836046.81 - - 749836046.81
Total 2407539312.32 - - 2407539312.32
Other notes including those on the changes in the current period and the reasons therefor:
None
56. Treasury stocks
□Applicable √Not applicable
57. Other comprehensive income
√Applicable □Not applicable
Unit: RMB
Amount in the current period
Opening Amount before Amount afterItem balance tax incurred in Less: income tax attributable
Closing
the current tax to parent balance
period company
I. Other comprehensive
income that cannot be
reclassified into profit or 80532480.19 -92816230.12 -23204057.53 -69612172.59 10920307.60
loss
Change in fair value
of other equity 80532480.19 -92816230.12 -23204057.53 -69612172.59 10920307.60
instruments investment
II. Other comprehensive
income to be
reclassified into profit or 17079278.79 -13711440.81 - -13711440.81 3367837.98
loss
Other comprehensive
income that can be
transferred into profit 4712587.90 - - - 4712587.90
and loss under equity
method
Difference arising
from the translation of
foreign currency 12366690.89 -13711440.81 - -13711440.81 -1344749.92
financial statements
Total other
comprehensive income 97611758.98 -106527670.93 -23204057.53 -83323613.40 14288145.58
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:
None
58. Special reserves
□Applicable √Not applicable
59. Surplus reserve
√Applicable □Not applicable
Unit: RMB
Item Opening balance Increase in the Decrease in the Closing balance
current period current period
Statutory
surplus reserve 2417755659.36 - - 2417755659.36
Discretionary
surplus reserve 40195855.68 - - 40195855.68
Other 11688840.91 - - 11688840.91
Total 2469640355.95 - - 2469640355.95
Notes on surplus reserves including those on the changes in the current period and the
reasons therefor:
None
60. Undistributed profit
√Applicable □Not applicable
Unit: RMB
Item Current period The previous year
Undistributed profits at the end of the previous
reporting period before adjustment 12486681371.95 10400490449.73
Opening undistributed profits after adjustment 12486681371.95 10400490449.73
Plus: net profits attributable to shareholders of
the parent company in the current period 1979200210.15 4203546946.97
Less: withdrawal of statutory surplus reserve - 307838089.86
General risk reserve - -80661.29
Common share dividend payable 2741779613.00 1809598596.18
Closing undistributed profits 11724101969.10 12486681371.95
Details of the adjustment of opening undistributed profits:
1. Due to the retrospective adjustment of the Enterprise Accounting Standards and related new
regulations the affected undistributed profit at the beginning of the period was 0.
2. Due to changes in accounting policies the affected undistributed profit at the beginning of the
period was 0.
3. Due to significant accounting error correction the affected undistributed profit at the
beginning of the period was 0.
4. Due to changes in the scope of consolidation caused by the same control the affected
undistributed profit at the beginning of the period was 0.
5. The opening undistributed profits affected by other adjustments together amounted to RMB
0.
61. Operating revenue and operating cost
(1) Overview of operating revenue and operating cost
√Applicable □Not applicable
Unit: RMB
Item Amount in the current period Amount in the previous periodRevenue Cost of sales Revenue Cost of sales
Main
business 10034491220.18 7208462908.76 7457579779.36 5189148320.44
Other
businesses 247051759.78 86868536.49 255219350.90 90240593.63
Total 10281542979.96 7295331445.25 7712799130.26 5279388914.07
(2) Breakdown information of operating revenue and operating costs
√Applicable □Not applicable
Unit: RMB
Classified by type of contract TotalOperating revenue Operating cost
Types of goods
Sales of goods 5450835193.97 5405557636.91
The use of shops in the China Commodities
City markets and the supporting services for 2366902169.43 545020647.38
operation
Lease 328956171.41 187601413.69
Hotel accommodation and catering services 164757344.73 159012528.22
Sales of supporting real estate 1564789992.93 844120854.11
Classified by business area
Chinese Mainland 10192267648.55 7224661888.64
Overseas 89275331.41 70669556.61
Classification by time of good transfer
Recognizing revenue at a certain point in
time 7165871090.39 6372865928.12
Recognizing revenue during a certain period
of time 3115671889.57 922465517.13
Total 10281542979.96 7295331445.25
Other notes
□Applicable √Not applicable
(3) Contract performance obligations
√Applicable □Not applicable
Unit: RMB
Whether The types of
Time for Nature of the The expected quality
fulfilling Important payment goods that the
the
Company refunds to assuranceItem performance terms Companypromises to is the main
customers provided by
obligations responsibl borne by the the Companytransfer e person Company and relatedobligations
When Advance payment
Sales of goods delivering or right to receive Trade retail
goods payment after goods
Yes - No
delivery of goods
The use of shops
in the China
Commodities City When Part of the deposit Shop use right
markets and the providing will be collected in / supporting Yes - No
supporting services advance and the services for
services for remaining amount operation
operation will be collected
Hotel When upon completion of Hotel
accommodation providing the performance accommodatio Yes - No
business services n service
Hotel catering When Collection upon
business providing completion of
Catering
services performance services
Yes - No
Advance receipts or
When the right to receive
Real estate sales delivering payment upon Real estate
goods acquisition of projects
Yes - No
control over the
relevant real estate
Total / / / / - /
(4) Explanation of allocation to remaining contract performance obligations
□Applicable √Not applicable
(5) Significant contract changes or significant transaction price adjustments
□Applicable √Not applicable
Other notes:
The revenue recognized during the current period that was included in the opening carrying
amount of contract liabilities amounted to RMB 4520971401.50.62. Taxes and surcharges
√Applicable □Not applicable
Unit: RMB
Item Amount in the current period Amount in the previous period
Urban maintenance and
construction tax 8949396.83 2871213.32
Education surcharge 3836048.48 1230437.44
Real estate tax 91295638.85 66364417.31
Land use tax 32143207.72 13807737.48
Vehicle and vessel use tax 1200.00 1680.00
Stamp duty 6178349.50 4385285.48
Land appreciation tax 102630428.09 343806.24
Local education surcharge 2557365.67 820291.60
Cultural undertaking
development fee 734275.28 446423.56
Water Resource Tax 3295.23 -
Total 248329205.65 90271292.43
Other notes:
None
63. Sales expenses
√Applicable □Not applicable
Unit: RMB
Item Amount in the current Amount in the previousperiod period
Marketing expenses 88216498.95 70012778.47
Advertising expenses 9168068.77 13816076.76
Security and insurance expenses 19485019.72 12322842.69
Water electricity and fuel expenses 4640730.32 4793494.29
Depreciation and amortization 1891364.17 705001.90
Other 5554089.13 3291607.43
Total 128955771.06 104941801.54
Other notes:
None
64. Administrative expenses
√Applicable □Not applicable
Unit: RMB
Item Amount in the current Amount in the previousperiod period
Employee and uniform expenses 157043549.26 131826414.59
Depreciation and amortization 34121731.37 42696628.31
Office expenses 9551326.35 8319489.00
Intermediary expenses 7183777.81 7637615.39
Travel expenses 1999631.11 3798997.56
Start-up fee - 17957.01
Other 2719838.40 1912996.81
Total 212619854.30 196210098.67
Other notes:
None
65. R&D expenses
√Applicable □Not applicable
Unit: RMB
Item Amount in the current Amount in the previousperiod period
Labor cost 22411752.19 8533039.14
Technology development fee 4999037.18 1243375.70
Depreciation and amortization 40348.58 31519.88
Other 1057684.13 76756.03
Total 28508822.08 9884690.75
Other notes:
None
66. Financial expenses
√Applicable □Not applicable
Unit: RMB
Item Amount in the current Amount in the previousperiod period
Interest expenses 37015545.13 89599320.22
Amortization of discount on short-term
commercial papers 178062.17 1591826.10
Less: interest income 40786828.04 38102947.69
Less: capitalized amount of interest 7027814.10 38634581.13
Foreign exchange gains or losses 4323471.48 941669.16
Amortization of unrecognized financing expenses 24192.37 -2720.35
Other 6146688.81 1760607.45
Total -126682.18 17153173.76
Other notes:
None
67. Other income
√Applicable □Not applicable
Unit: RMB
Classified by nature Amount in the current Amount in the previousperiod period
Government subsidies related to income 11191521.67 2565819.95
Asset-related government grants 2042066.84 2042066.84
Refund of withheld handling fee of
personal income tax 332936.93 553627.98
Total 13566525.44 5161514.77
Other notes:
None
68. Investment income
√Applicable □Not applicable
Unit: RMB
Item Amount in the Amount in thecurrent period previous period
Income from long-term equity investment
calculated with the equity method 104649928.01 108719697.39
Interest income from debt investment during
holding period 1251786.16 1249433.96
Investment income from disposal of
held-for-trading financial assets 6519438.68 3431649.81
Income acquired from other non-current financial
assets during the holding period 14359227.35 9500000.00
Total 126780380.20 122900781.16
Other notes:
None
69. Net exposure hedging income
□Applicable √Not applicable
70. Gains from changes in fair value
√Applicable □Not applicable
Unit: RMB
Sources of income from changes Amount in the current Amount in the previous
in fair value period period
Other non-current financial assets - -251495.99
Held-for-trading financial assets 166568782.58 -
Total 166568782.58 -251495.99
Other notes:
None
71. Credit impairment loss
√Applicable □Not applicable
Unit: RMB
Item Amount in the current Amount in the previousperiod period
Bad debt loss of accounts receivable -1781222.53 -10101.46
Loss for bad debts of other
receivables 57300.06 37525.24
Total -1723922.47 27423.78
Other notes:
None
72. Asset impairment loss
□Applicable √Not applicable
73. Asset disposal income
□Applicable √Not applicable
74. Non-operating income
√Applicable □Not applicable
Unit: RMB
Amount recognized
Amount in the Amount in the in profit or loss ofItem current period previous period non-recurring itemsfor the current
period
Total gains from the disposal
of non-current assets 2697604.61 - 2697604.61
Including: gain on disposal of
fixed assets. 2697604.61 - 2697604.61
Incomes from liquidated
damages 4385216.73 3484633.02 4385216.73
Other 1357862.34 1505144.13 1357862.34
Total 8440683.68 4989777.15 8440683.68
Other notes:
□Applicable √Not applicable
75. Non-operating expenditure
√Applicable □Not applicable
Unit: RMB
Amount recognized
Item Amount in the Amount in the
in profit or loss of
current period previous period non-recurring itemsfor the current
period
Total loss for disposal of
non-current assets 104900.99 8650.50 104900.99
Including: loss for disposal of
property plant and equipment 104900.99 8650.50 104900.99
Other 3784057.96 34745.13 3784057.96
Total
3888958.95 43395.63 3888958.95
Other notes:
None
76. Income tax expense
(1) Table of income tax expenses
√Applicable □Not applicable
Unit: RMB
Item Amount in the current period Amount in the previous period
Current income tax expenses 652070200.65 439948859.51
Deferred income tax expenses 39709012.77 10720725.20
Total 691779213.42 450669584.71
(2) Adjustment process of accounting profits and income tax expenses
√Applicable □Not applicable
Unit: RMB
Item Amount in the
current period
Profits before tax 2677668054.28
Income tax expenses calculated at the statutory/applicable tax rate 669417013.57
Impact of different tax rates applied by subsidiaries -10875761.57
Effect of adjusting income tax of previous period 8063350.82
Effect of non-taxable income -29752288.84
Effect of non-deductible costs expenses and losses 956445.95
Effect of using deductible losses of unrecognized deferred income tax
assets in previous period -2304869.32
Effect of deductible temporary differences or deductible losses of
unrecognized deferred income tax assets in the current period 56275322.81
Income tax expense 691779213.42
Other notes:
□Applicable √Not applicable
77. Other comprehensive income
√Applicable □Not applicable
For details please refer to Note 57. Other comprehensive income
78. Cash flow statement items
(1) Cash related to operating activities
Other cash receipts relating to operating activities
√Applicable □Not applicable
Unit: RMB
Item Amount in the Amount in thecurrent period previous period
Deposit and margin received 140320422.24 100093000.00
Government grants received 21004458.60 1938543.60
Bank deposit interest income received 4996240.19 12165222.06
Liquidated damages received 4385216.73 -
Bank reserve received 2376349.43 4633558.46
Restricted monetary funds at the beginning of the
period recovered during the current period 458836.22 -
Global Digital Trade Center rental intention deposit
received pending return - 136200000.00
Other 8553906.03 2157534.06
Total 182095429.44 257187858.18
Notes on other cash receipts relating to operating activities:
None
Other cash payments relating to operating activities
√Applicable □Not applicable
Unit: RMB
Item Amount in the Amount in thecurrent period previous period
Major expenses paid 241431971.67 180925813.87
Deposit and security paid 109911784.74 118137600.65
Repair costs and expenses paid 14359382.76 13940877.55
Payment on behalf of others or advance payment paid 9442394.50 10943015.18
Other 3543839.98 1005926.04
Total 378689373.65 324953233.29
Notes on other cash payments relating to operating activities:
None
(2) Cash related to investment activities
Cash received related to important investment activities
√Applicable □Not applicable
Unit: RMB
Item Amount in the current Amount in the previous
period period
Recovery of trading financial
asset investments 3080000000.00 400000000.00
Recovery of other non-current
financial asset investments 14761077.53 -
Recovery of long-term equity
investments 5256302.57 19023048.91
Total 3100017380.10 419023048.91
Description of cash received related to important investment activities
None
Cash paid related to important investment activities
√Applicable □Not applicable
Unit: RMB
Item Amount in the current Amount in the previous
period period
Purchase of trading financial
assets 1400000000.00 -
Payment for debt investment - 48000000.00
Payment for other non-current
financial asset investments - 40000000.00
Total 1400000000.00 88000000.00
Description of cash paid related to important investment activities
None
Other cash receipts relating to investing activities
√Applicable □Not applicable
Unit: RMB
Item Amount in the current period Amount in the previous
period
Recovered pending investment
refunds 30494339.43 5562422.74
Recovery of time deposits and
accrued interest 1502111301.36 -
Total 1532605640.79 5562422.74
Notes on other cash receipts relating to investing activities:
None
Other cash payments relating to investing activities
√Applicable □Not applicable
Unit: RMB
Item Amount in the current period Amount in the previous
period
Purchase of time deposits 100000000.00 -
Payments paid for investment
returns pending confirmation 48165000.00 17036269.50
Total 148165000.00 17036269.50
Other cash paid related to investment activities:
None
(3) Cash related to financing activities
Other cash receipts relating to financing activities
□Applicable √Not applicable
Other cash payments relating to financing activities
√Applicable □Not applicable
Unit: RMB
Item Amount in the current period Amount in the previous
period
Lease payments paid 10424111.08 11290804.49
Payments paid for intermediary
fees related to listing on the Hong 18297931.17 -
Kong Stock Exchange.Total 28722042.25 11290804.49
Other cash paid related to financing activities:
None
Changes in liabilities arising from financing activities
√Applicable □Not applicable
Unit: RMB
Increase in the Decrease in the
Item Opening balance current period current periodNon-cash Cash changes Closing balance
changes
Long-term borrowings (including
long-term borrowings due within one 523894006.38 4591422.49 213438206.22 315047222.65
year)
Bonds payable (including bonds
payable due within one year) 2827850288.14 28131404.63 31400000.00 2824581692.77
Lease liabilities (including lease
liabilities due within one year) 154121996.26 4667162.11 12649950.98 146139207.39
Total 3505866290.78 37389989.23 257488157.20 3285768122.81
(4) Description of cash flows reported on a net basis
√Applicable □Not applicable
Item Relevant factual Basis for presentation on a net basis Financial impact
information
Cash flows related to the purchase of time
deposits in the current period which are If reported on a gross basis it
The Company characterized by quick turnover large will have the following impact
Cash flows presents cash amounts and short durations better on the Company's cash flow
related to the flows related to illustrate their impact on the Company's statement: an increase of
purchase of time the purchase of payment and debt repayment abilities RMB 1243000000.00 in
deposits time deposits on when reported on a net basis aiding in the cash received from other
a net basis evaluation of the Company’s payment investment-related activities
capacity debt repayment capability and and cash paid for other
analysis of future cash flows. investment-related activities.(5) Significant activities and financial impacts that do not involve current cash inflows
and outflows but affect the financial condition of the enterprise or may affect the
cash flow of the enterprise in the future
□Applicable √Not applicable
79. Supplementary information to the statement of cash flows
(1) Supplementary information to the statement of cash flows
√Applicable □Not applicable
Unit: RMB
Supplementary information Amount in the Amount in thecurrent period previous period
1. Adjustment of net profit to cash flow from operating activities:
Net profits 1985888840.86 1697064179.57
Plus: provision for impairment of assets - -
Credit impairment loss 1723922.47 -27423.78
Depreciation of fixed assets depletion of oil and gas
assets and depreciation of bearer biological assets 280606370.42 180692037.30
Amortization of right-of-use assets 12389261.30 21879705.60
Amortization of intangible assets 138064347.41 136817308.55
Depreciation and amortization of investment real
estate 133940087.88 115103676.24
Amortization of long-term prepaid expenses 89053197.21 70138744.80
Loss from fixed assets retirement (gains indicated by
“-”) 104900.99 8650.50
Loss from changes in fair value (gains indicated by “-”) -166568782.58 251495.99
Financial expenses (gains indicated by “-”) -126682.18 17153173.76
Investment loss (gains indicated by “-”) -126780380.20 -122900781.16
Decrease in deferred income tax assets (increase
indicated by “-”) -21682631.09 -30660092.53
Increase in deferred income tax liabilities (decrease
indicated by “-”) 38187586.33 -1219209.24
Decrease in inventory (increase indicated by “-”) 976585989.14 -49536463.42
Decrease in operating receivables (increase indicated
by “-”) -1862106363.19 -849399992.69
Increase in operating payables (decrease indicated by
“-”) -1608074742.71 197489477.98
Net cash flow from operating activities -128795077.94 1382854487.47
2. Investment and financing activities that do not involve cash income and payment:
3. Net increase in cash and cash equivalents:
Closing balance of cash 2393354291.83 4678642307.94
Less: opening balance of cash 4284849911.50 5528368665.98
Add: closing balance of cash equivalents - -
Less: opening balance of cash equivalents - -
Net increase in cash and cash equivalents -1891495619.67 -849726358.04
(2) Net cash paid for acquisition of subsidiaries in this period
□Applicable √Not applicable
(3) Net cash from disposal of subsidiaries in this period
□Applicable √Not applicable
(4) Composition of cash and cash equivalents
√Applicable □Not applicable
Unit: RMB
Item Closing balance Opening balance
I. Cash 2393354291.83 4284849911.50
In which: cash on hand 71514.22 116170.82
Bank deposit that can be used for payment at
any time 2386491513.66 4276017347.93
Other monetary funds that can be used for
payment at any time 6791263.95 8716392.75
II. Cash equivalents
Including: bond investments due within three months
III. Closing balance of cash and cash equivalents 2393354291.83 4284849911.50
Including:cash and cash equivalents with restricted
use by the parent company or its subsidiaries
(5) Situations where the scope of use is limited but still listed as cash and cash
equivalents
□Applicable √Not applicable
(6) Monetary funds that do not belong to cash and cash equivalents
√Applicable □Not applicable
Unit: RMB
Item Closing balance Opening balance Reason
Time Deposits and Transferable
Large-denomination Certificates 931113094.35 2505561014.60
of Deposit Not available for
Various business deposits 14140235.68 13586458.90 withdrawal at
Restricted Funds of Yiwu Pay
Platform 20888955.35 11979219.00
any time
Funds frozen judicially - 12613.00
Total 966142285.38 2531139305.50 /
Other notes:
□Applicable √Not applicable
80. Notes to items in the statement of changes in owners' equity
Names of “others” items whose closing balances in the previous year are adjusted and the
amounts of adjustments:
□Applicable √Not applicable
81. Foreign currency monetary items
(1) Foreign currency monetary items
√Applicable □Not applicable
Unit: RMB Yuan
Item Closing balance in
Renminbi-equivalent
foreign currency Exchange rate balance at periodend
Monetary funds
In which: USD 9878749.54 6.8231 67404137.13
EURO 1251537.26 7.7630 9715735.08
Rwandan Franc 25410591.00 0.0046 116888.72
Dirham 34714.00 1.8511 64259.09
Koruna 2282896.44 0.3188 727787.38
Hong Kong Dollar 14017042.25 0.8961 12560008.95
Accounts receivable
In which: USD 1272782.67 6.8231 8684323.44
Koruna 20877932.53 0.3188 6655884.89
Other receivables
In which: USD 69070.80 6.8231 471276.98
EURO 191943.14 7.7630 1490054.60
Koruna 45394208.13 0.3188 14471673.55
Hong Kong Dollar 124884.50 0.8961 111909.00
Accounts payable
In which: USD 6990241.55 6.8231 47695117.12
Other payables
In which: USD 75680.51 6.8231 516375.69
EURO 148474.77 7.7630 1152609.64
Koruna 26648852.61 0.3188 8495654.21
Other notes:
None
(2) The nature and financial impacts of the lack of exchangeability the spot exchange
rate adopted and its estimation process as well as the risks faced by the enterprise
arising from the lack of exchangeability
□Applicable √Not applicable
(3) Description of overseas operating entities for important overseas operating entities
includes the disclosure of principal overseas place of business functional currency and
the basis for selection and the reason for the change in functional currency.□Applicable √Not applicable
(4) Lack of exchangeability between the functional currency of a foreign operation and
the entity's presentation currency
□Applicable √Not applicable
82. Lease
(1) As a leasee
√Applicable □Not applicable
Variable lease payments not included in the measurement of lease liabilities
□Applicable √Not applicable
Simplified short-term lease or low-value assets leasing expenses
√Applicable □Not applicable
Lease expense for short-term leases applying the simplified approach and recognized in
profit or loss amounted to RMB 1768979.23.Lease expense for low-value assets applying the simplified approach and recognized in
profit or loss amounted to RMB 997033.53.Leaseback transactions and judgment basis
□Applicable √Not applicable
Total cash outflow related to leasing amounted to RMB 12991591.62
(2) As a lessor
Operating lease as lessor
□Applicable √Not applicable
Financing lease as lessor
□Applicable √Not applicable
Adjustment table for undiscounted lease receipts and net lease investments
□Applicable √Not applicable
Undiscounted lease receipts for the next five years
□Applicable √Not applicable
(3) Confirmed gains and losses of financing lease sales as a manufacturer or distributor
□Applicable √Not applicable
Other notes
The leased assets of the Group include houses buildings land use rights and other
equipment used in the operating process. The lease term for houses and buildings is usually
2-5 years and the lease term for land use rights is 10 years.
For right-of-use assets see Note VII. 25; for lease liabilities please refer to Note VII. 47.
83. Data resources
√Applicable □Not applicable
Refer to Note VII.26 Intangible Assets.
84. Other
□Applicable √Not applicable
VIII. R&D expenditure
1. Listed by nature of expenses
√Applicable □Not applicable
Unit: RMB
Item Amount in the current Amount in the previous
period period
Labor cost 32582434.32 16869003.84
Technology development fee 36469752.56 3885895.45
Depreciation and amortization 932895.83 217896.96
Other 1516378.25 83423.39
Total 71501460.96 21056219.64
Among them: Expensed R&D
expenditure 28508822.08 9884690.75
Capitalized R&D expenditure 42992638.88 11171528.89
Other notes:
None
2. R&D project development expenditure that meets capitalization criteria
√Applicable □Not applicable
Unit: RMB
Increase in
the current Decrease in the current period
Opening periodItem Closingbalance Internal Transfer toRecognized as profit or loss balancedevelopment
expenditure intangible assets for the currentperiod
Chinagoods Platform
Development Project 4093276.48 41140542.84 - - 45233819.32
Kuaijietong Core
Payment System - 173794.16 - - 173794.16
Yiwu Index Project 700000.00 150000.00 - - 850000.00
Exhibition Data Platform - 1528301.88 1528301.88 - -
Total 4793276.48 42992638.88 1528301.88 - 46257613.48
Important capitalized research and development projects
□Applicable √Not applicable
Provision for impairment of development expenditure
□Applicable √Not applicable
Other notes
None
3. Important outsourced projects under research
□Applicable √Not applicable
IX. Changes in the scope of consolidation
1. Business combinations not under common control
□Applicable √Not applicable
2. Business combinations under common control
□Applicable √Not applicable
3. Reverse acquisition
□Applicable √Not applicable
4. Disposal of subsidiaries
Whether there were any transactions or events that resulted in the loss of control over a subsidiary in this period
□Applicable √Not applicable
Other notes:
□Applicable √Not applicable
Did the Group dispose of subsidiaries through multiple transactions and lose control in the current period
□Applicable √Not applicable
Other notes:
□Applicable √Not applicable
5. Changes in consolidation scope for other reasons
Changes in the consolidation scope for other reasons (e.g. new establishment of subsidiaries liquidation of subsidiaries etc.) and the related
information:
√Applicable □Not applicable
1. Expanded combination scope
company name Equity acquisition method Equity acquisition time Contribution amount Ratio of contribution
Yixin Digital Wealth Management Co. Ltd. Newly established subsidiary April 2026 - 100.00%
2. Reduced combination scope
Point of equity Net assets on the Net profit from thecompany name Equity disposal mode disposal disposal date (RMB) beginning of the period tothe date of disposal (RMB).Ningxia Yiwu China Commodities City
Supply Chain Management Co. Ltd. Cancellation March 2026 3257187.90 -114478.73
6. Other
√Applicable □Not applicable
As of June 30 2026 Zhejiang Xunchi Digital Technology Co. Ltd. had not yet made any capital contribution to Yixin Digital Wealth Management
Co. Ltd.X. Equity in other entities
1. Equity in subsidiaries
(1) Composition of the Group
√Applicable □Not applicable
Unit: RMB 10000
Shareholding Acqui
Name of subsidiary Main place of Registered Place of Business ratio (%) sitionbusiness capital registration Direct Indirect method
Yiwu China Commodities Estab
City Import and Export Yiwu Zhejiang 10000.00 Yiwu Zhejiang Wholesale 100.00 lishm
Co. Ltd. ent
Yiwu China Commodities Estab
City Supply Chain Yiwu Zhejiang 10000.00 Yiwu Zhejiang Wholesale 100.00 lishm
Management Co. Ltd. ent
Yiwu Comprehensive Estab
Bonded Zone Operation and Yiwu Zhejiang 10000.00 Yiwu Zhejiang Business
Management Co. Ltd. service
100.00 lishm
ent
Yiwu China Commodities Estab
City Overseas Investment Yiwu Zhejiang 10000.00 Yiwu Zhejiang Business
and Development Co. Ltd. service
100.00 lishm
ent
Yiwu China Commodities Estab
City Tourism Development Yiwu Zhejiang 10000.00 Yiwu Zhejiang Businessservice 100.00 lishmCo. Ltd. ent
Yiwu China Commodities Estab
City Assets Operation and Yiwu Zhejiang 1000.00 Yiwu Zhejiang Business
Management Co. Ltd. service
100.00 lishm
ent
Zhejiang Yindu Hotel Yiwu Zhejiang 1000.00 Yiwu Zhejiang Business
Estab
Management Co. Ltd. service 100.00 lishment
Yiwu Yandoo Shangtu Business Estab
Catering Co. Ltd Yiwu Zhejiang 500.00 Yiwu Zhejiang service 100.00 lishment
Yiwu China Commodities Estab
City Research Institute Co. Yiwu Zhejiang 1000.00 Yiwu Zhejiang Business
Ltd. service
100.00 lishm
ent
Software
and
Yiwu China Commodities Yiwu Zhejiang 10000.00 Yiwu Zhejiang Information
Estab
City Big Data Co. Ltd. Technolog 100.00 lishm
y Service ent
Industry
Profession
Yiwu Xinlian Technology Yiwu Zhejiang 1000.00 Yiwu Zhejiang al technical
Estab
Service Co. Ltd. service 51.00 lishm
industry ent
Yiwu Shangcheng Gonglian Estab
Enterprise Management Yiwu Zhejiang 20000.00 Yiwu Zhejiang Business
Co. Ltd. service
100.00 lishm
ent
Yiwu Shangbo Yuncang Estab
Enterprise Management Yiwu Zhejiang 30000.00 Yiwu Zhejiang Business
Co. Ltd. service
100.00 lishm
ent
Yiwu China Commodities Estab
City Information Technology Yiwu Zhejiang 5000.00 Yiwu Zhejiang IT 100.00 lishm
Co. Ltd. ent
Yiwu China Commodities
City Equity Investment Co.Ltd. (formerly known as Estab
Yiwu China Commodities Yiwu Zhejiang 400000.00 Yiwu Zhejiang
Financial
industry 100.00 lishm
City Financial Holding Co. ent
Ltd.)
Yiwu China Commodities Yiwu Zhejiang 40000.00 Yiwu Zhejiang Multimodal 100.00 Estab
City Logistics and transport lishm
Warehousing Co. Ltd. and ent
transportati
on agency
Yiwu China Commodities Business Estab
City Exhibition Co. Ltd. Yiwu Zhejiang 3000.00 Yiwu Zhejiang service 98.00 2.00 lishment
Yiwu Yundailu Data Internet Estab
Technology Co. Ltd. Yiwu Zhejiang 50000.00 Yiwu Zhejiang and related 100.00 lishmservices ent
Incor
Zhejiang Huajie Investment porati
and Development Co. Ltd. Yiwu Zhejiang 50000.00 Yiwu Zhejiang
Business
service 96.40 on+acquisiti
on
Incor
Europe Huajie Investment Prague Czech porati
and Development Co. Ltd. Republic CZK1580.00
Prague Czech Business
Republic service 96.40 on+acquisiti
on
Zhejiang China
Commodities City Group Yiwu Zhejiang 20000.00 Yiwu Zhejiang Financial
Estab
Commercial Factoring Co. industry 60.00 40.00 lishm
Ltd. ent
Zhejiang Yiwugou Estab
E-commerce Co. Ltd. Yiwu Zhejiang 10000.00 Yiwu Zhejiang IT 51.00 lishment
Yiwu China Commodities Estab
City Advertising Co. Ltd. Yiwu Zhejiang 1000.00 Yiwu Zhejiang Advertising 100.00 lishment
Yiwu China Commodities Estab
City Credit Investigation Yiwu Zhejiang 1000.00 Yiwu Zhejiang Service 85.00 lishm
Co. Ltd. ent
Yiwu Aiximao Supply Chain Estab
Management Co. Ltd. Yiwu Zhejiang 500.00 Yiwu Zhejiang Service 100.00 lishment
Yiwu China Commodities Incor
City Internet Financial porati
Information Service Co. Yiwu Zhejiang 1000.00 Yiwu Zhejiang
Financial
industry 100.00 on+ac
Ltd. quisition
Yiwu China Commodities
City RMB and Foreign Estab
Currency Exchange Co. Yiwu Zhejiang 1000.00 Yiwu Zhejiang
Financial
industry 100.00 lishm
Ltd. ent
Hangzhou Shangbo Hangzhou Hangzhou Estab
Nanxing Property Co. Ltd. Zhejiang 40000.00 Zhejiang Real estate 100.00 lishment
Yiwu China Commodities Estab
City (Hong Kong) Hong Kong HKD 1.00 Hong Kong Wholesale 100.00 lishm
International Trade Co. Ltd. China China ent
Hong Kong Better Silk Road Hong Kong Estab
Co. Ltd. China HKD 10800.00
Hong Kong
China Service 100.00 lishment
Huafrica (Kenya) Estab
Investment Development Nairobi Kenya KES 3000.00 Nairobi Kenya Service 100.00 lishm
Co. Limited ent
Estab
BETTER SILK ROAD FZE Dubai UAE AED 5040.00 Dubai UAE Service 100.00 lishm
ent
BETTER SILK ROAD Estab
RWANDA Ltd Kigali Rwanda RWF 27000.00 Kigali Rwanda Service 100.00 lishment
Yiwu Zheqing Trading Co. Estab
Ltd. Yiwu Zhejiang 2200.00 Yiwu Zhejiang Wholesale 100.00 lishment
Bright Way Tech Tortola Island Tortola Island Financial Estab
Development Limited British Virgin USD 0.0005 British VirginIslands Islands industry
100.00 lishm
ent
Yiwu China Commodities Frankfurt EUR 100.00 Frankfurt
Estab
City (Germany) Co. Ltd. Germany Germany Service 100.00 lishment
Yiwu China Commodities Estab
City (Spain) Co. Ltd. Madrid Spain EUR 20.00 Madrid Spain Service 100.00 lishment
Zhejiang Xunchi Digital Hangzhou Hangzhou Acqui
Technology Co. Ltd. Zhejiang 19000.00 Zhejiang IT 100.00 sition
Kuaijietong Payment Hangzhou 20000.00 Hangzhou IT 100.00 AcquiService Co. Ltd. Zhejiang Zhejiang sition
Incor
Zhejiang Think Tank Co. Yiwu Zhejiang 10000.00 Hangzhou
porati
Ltd. Zhejiang Service 100.00 on+acquisiti
on
Profession
Xunchi (Hong Kong) Digital Hong Kong HKD 5000.00 Hong Kong al technical
Estab
Technology Co. Ltd. China China service 100.00 lishm
industry ent
Profession
Zhejiang Xunchi Data Hangzhou Hangzhou al technical Estab
Services Co. Ltd. Zhejiang 2000.00 Zhejiang service 100.00 lishm
industry ent
Profession
Yiwu Digital Trade Hong Kong Estab
Technology Co. Ltd. China HKD 1000.00
Hong Kong al technical
China service 100.00 lishm
industry ent
Profession
Yixin Digital Wealth Hong Kong HKD 1000.00 Hong Kong al technical
Estab
Management Co. Ltd. China China service 100.00 lishm
industry ent
Explanation for the difference between the shareholding ratio and voting right ratio in a
subsidiary:
None
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:
None
Basis for controlling important structured entities included in the consolidation scope:
None
Basis for determining whether a company is an agent or a principal:
None
Other notes:
None
(2) Important non-wholly owned subsidiaries
√Applicable □Not applicable
Unit: RMB
Shareholding Profits or losses attributable to Dividends declared to be
Name of subsidiary ratio of minority minority shareholders in the distributed to minority Closing balance of
shareholders (%) current period shareholders for the current period non-controlling interest
Zhejiang Yiwugou E-commerce
Co. Ltd. 49% 6646863.53 - 87187562.79
Explanation for the difference between the shareholding ratio and voting right ratio of minority shareholders in a subsidiary:
□Applicable √Not applicable
Other notes:
□Applicable √Not applicable
(3) Main financial information of important non-wholly-owned subsidiaries
√Applicable □Not applicable
Unit: RMB 10000
Name of Closing balance Opening balance
subsidiary Current Non-current Total Current Non-current Total Current Non-current Total Current Non-current Totalassets assets assets liabilities liabilities liabilities assets assets assets liabilities liabilities liabilities
Zhejiang Yiwugou
E-commerce Co. 20590.95 264.84 20855.79 3062.41 - 3062.41 14534.60 5077.11 19611.71 3174.83 - 3174.83
Ltd.Amount in the current period Amount in the previous period
Name of subsidiary Operating Total Cash flow from Operating Total Cash flow from
comprehensive comprehensive
revenue Net profits income operating activities revenue
Net profits
income operating activities
Zhejiang Yiwugou E-commerce
Co. Ltd. 3530.51 1356.50 1356.50 638.64 3294.44 1178.91 1178.91 -3328.51
Other notes:
None
(4) Major restrictions on the use of the Group’s assets and repayment of the Group’s
debts:
□Applicable √Not applicable
(5) Financial or other support provided to structured entities included in the scope of
consolidated financial statements:
□Applicable √Not applicable
Other notes:
□Applicable √Not applicable
2. Transactions in which the owner's equity share of a subsidiary changes while still
controlling the subsidiary
□Applicable √Not applicable
3. Equity in joint ventures or associates
√Applicable □Not applicable
(1) Important joint ventures or associates
√Applicable □Not applicable
Unit: RMB
Shareholding ratio Accounting
(%) treatment
Name of joint venture or Main place Place of method of
associate of business registration Business Direct Indirect investment inthe joint venture
or associate
Joint venture
Yiwu Shanglv Yiwu YiwuZhejiang Zhejiang Real estate 49.00 Equity method
Yiwu Huishang Redbud Capital Yiwu Yiwu Financial
Management Co. Ltd. Zhejiang Zhejiang industry 20.00 Equity method
Yiwu Rongshang Property Co. Yiwu Yiwu
Ltd. Zhejiang Zhejiang Real estate 49.00 Equity method
Yiwu Chuangcheng Property Yiwu Yiwu
Co. Ltd. Zhejiang Zhejiang Real estate 24.00 Equity method
Yiwu Guoshen Shangbo Yiwu Yiwu
Property Co. Ltd. Zhejiang Zhejiang Real estate 49.00 Equity method
Yiwu Digital Port Technology Yiwu Yiwu
Co. Ltd. [Note 7] Zhejiang Zhejiang Wholesale 51.00 Equity method
Associate
Yiwu Huishang Redbud Equity Yiwu Yiwu Commercial
Investment Co. Ltd. [Note 8] Zhejiang Zhejiang services 10.42 Equity method
Chouzhou Financial Lease Hangzhou Yiwu FinancialZhejiang Zhejiang industry 26.00 Equity method
Yiwu Huishang Redbud Phase Leasing and
II Investment Partnership Yiwu Yiwu Business
(Limited Partnership) [Note 9] Zhejiang Zhejiang Services
10.41 Equity method
Service
Yiwu Hongyi Equity Investment
Fund Partnership (Limited Yiwu Yiwu Financial
Partnership) Zhejiang Zhejiang industry
49.98 Equity method
Pujiang Lvgu Property Co. Ltd. Pujiang PujiangZhejiang Zhejiang Real estate 49.00 Equity method
CCCP Yiwu YiwuZhejiang Zhejiang Real estate 49.00 Equity method
Technology
promotion
Zhijie Yuangang Yiwu Yiwu andZhejiang Zhejiang application 23.23 Equity method
service
industry
Yiwu China Commodities City
(Chongqing) Digital Industry Chongqing Chongqing Service 10.00 Equity method
Park Co. Ltd.[Note 10]
Botong Chuhai (Yiwu) Industrial
Investment Fund Partnership Yiwu Yiwu Financial
(Limited Partnership) Zhejiang Zhejiang industry
32.42 Equity method
Explanation for the difference between the shareholding ratio and voting right ratio in a joint
venture or associate:
None
Bases for holding less than 20% of the voting rights but having significant influence or holding
20% or more of the voting rights but not having significant influence:
Note 7: The Company holds more than 50% of the shares in Yiwu Digital Port Technology
Co. Ltd. According to the relevant mechanisms established by the Company's board of
directors or similar governing body for making major business decisions approval must be
obtained unanimously by all investors before implementation. The Company does not have
substantive control over Yiwu Digital Port Technology Co. Ltd. thus treating Yiwu Digital Port
Technology Co. Ltd. as a joint venture for accounting purposes.Note 8: The Company holds 10.42% of the equity in Huishang Redbud (2025: 10.42%) but
accounts for it as an associate of the Company. In accordance with the Articles of Association
Huishang Redbud Company is engaged in investment business. Its significant financial and
operating decisions primarily involve the selection and management of investment projects all
of which have been fully delegated to the Company's joint venture Yiwu Huishang Redbud
Capital Management Co. Ltd. (hereinafter referred to as "Redbud Management Company").Redbud Management Company conducts the selection and management of investment
projects through its Investment Decision Committee. Unless special investment matters require
the approval of the board of directors of Huishang Redbud Company all other significant
financial and operating investment decisions shall be executed on behalf of the Company by
Redbud Management Company. Therefore the Company is able to exert significant influence
over Huishang Redbud in which the Company holds a 10.42% stake.Note 9: The Company holds 10.41% of the equity in Yiwu Huishang Redbud Phase II
Investment Partnership (Limited Partnership) (hereinafter referred to as “Redbud Phase II”)
(2025: 10.41%) but accounts for it as an associate of the Company. According to the
Company's articles of association Redbud Phase II engages in investment business and its
important financial and operational decision-making activities involve selecting and managing
investment projects. These activities have been fully entrusted to the Company's joint venture
Redbud Management Company. The Redbud Management Company selects and manages
investment projects through its investment decision-making committee. Unless it involves
special investment matters that require approval by the board of directors of Redbud Phase II
other important financial and operational decision-making investment matters are executed by
the Redbud Management Company on behalf of the Company. Therefore the Company could
exert significant influence on Redbud Phase II of which it held 10.41% equity.Note 10: The Company holds less than 20% of the shares in Yiwu China Commodities City
(Chongqing) Digital Industry Park Co. Ltd. According to the relevant mechanism established by
the Company's board of directors or similar governing body for making major business
decisions this company has the right to nominate 1 director and can exert significant influence
over Yiwu China Commodities City (Chongqing) Digital Intelligence Industrial Park Co. Ltd.Therefore Yiwu China Commodities City (Chongqing) Digital Intelligence Industrial Park Co.Ltd. is accounted for as an associate.(2) Key financial information of important joint ventures
√Applicable □Not applicable
Unit: RMB 10000
Closing balance/amount in the current period Opening balance/amount in the previous period
Yiwu Shanglv Guoshen Shangbo Yiwu Shanglv Guoshen Shangbo
Current assets 8720.59 12838.00 5247.24 48176.67
In which: cash and cash equivalents 3691.05 7510.20 4126.87 34151.76
Non-current assets 125633.07 9664.80 127778.58 1812.20
Total assets 134353.66 22502.80 133025.82 49988.87
Current liabilities 15850.96 558.86 19774.73 3004.36
Non-current liabilities 9546.88 - 9360.13 -
Total liabilities 25397.84 558.86 29134.86 3004.36
Shareholders’ equity attributable to parent
company 108955.82 21943.94 103890.97 46984.51
Share of net assets calculated based on
shareholding ratio 53388.35 10752.54 50906.57 23022.41
Adjustments -1397.86 - -1397.86 -
--Unrealized profits of internal transactions -1397.86 - -1397.86 -
Book value of equity investment in joint
ventures 51990.50 10752.54 49508.72 23022.41
Operating revenue 13914.89 0.18 13401.88 1111.52
Financial expenses 185.16 -8.18 210.37 -37.14
Income tax expense 2219.40 -205.85 1698.85 0.25
Net profits 5064.86 -40.56 5096.55 -1030.19
Total comprehensive income 5064.86 -40.56 5096.55 -1030.19
Dividends received from joint ventures this year - 12250.00 - 72058.82
Other notes
None
(3) Main financial information of important associates
√Applicable □Not applicable
Unit: RMB 10000
Closing balance/amount in the current period Opening balance/amount in the previous period
Chouzhou Hongyi Pujiang Zhijie Chouzhou Hongyi Pujiang Zhijie
Financial Lease Fund CCCP Lvgu Yuangang Financial Lease Fund CCCP Lvgu Yuangang
Current assets 2166917.09 24834.36 2143599.11 92731.95 113623.29 2081446.41 20241.02 2054045.80 94967.77 87373.29
Non-current assets 19089.73 148688.66 165237.70 102.32 3762.58 - 150413.35 104922.29 75.76 2959.81
Total assets 2186006.82 173523.02 2308836.81 92834.27 117385.87 2081446.41 170654.37 2158968.09 95043.53 90333.10
Current liabilities 1199637.20 - 1535190.10 7471.43 53216.57 1844224.56 - 1345329.09 9829.89 34086.62
Non-current liabilities 720400.64 - 163968.43 - 240.73 - - 203997.80 - 239.34
Total liabilities 1920037.84 - 1699158.53 7471.43 53457.30 1844224.56 - 1549326.89 9829.89 34325.96
Non-controlling interest - - -3263.11 - - - - - - -
Shareholders’ equity
attributable to parent company 265968.98 173523.02 612941.39 85362.84 63928.57 237221.85 170654.37 613068.54 85213.64 56007.14
Share of net assets calculated
based on shareholding ratio 69151.94 86709.45 300341.28 41827.79 14850.61 61677.68 85275.99 300403.59 41754.68 13007.99
Adjustments - 4016.84 164.64 - - - 4736.71 164.64 - 2065.60
--Unrealized profits of internal
transactions - 4016.84 164.64 - - - 4736.71 164.64 - 2065.60
Book value of equity
investment in joint ventures 69151.94 90726.29 300505.92 41827.79 14850.61 61677.68 90012.70 300568.23 41754.68 15073.59
Operating revenue 41838.52 - 246669.40 1326.04 92760.07 39180.57 - 159071.25 4336.90 19073.02
Net profits 28747.13 1427.90 -115.49 149.20 -825.87 25067.17 214.55 8429.38 -1259.41 72.00
Total comprehensive income 28747.13 1427.90 -115.49 149.20 -825.87 25067.17 214.55 8429.38 -1259.41 72.00
Dividend on associates
received in the current year - - - - - - - - - -
Other notes
None
(4) Summary of financial information of unimportant joint ventures and associates
√Applicable □Not applicable
Unit: RMB
Closing balance/amount in the Opening balance/amount in
current period the previous period
Joint ventures:
Total book value of
investments 120597005.35 122089418.33
Total amounts of the following items calculated based on shareholding ratio
--Net profits -1363241.37 -862392.99
--Other comprehensive
income
--Total comprehensive
income -1363241.37 -862392.99
Associates:
Total book value of
investments 491341358.94 498503951.77
Total amounts of the following items calculated based on shareholding ratio
--Net profits 1580292.70 -8893520.47
--Other comprehensive
income -25284.91
--Total comprehensive
income 1580292.70 -8918805.38
Other notes
None
(5) Explanation of significant limitations on the ability of joint ventures or associates to
transfer funds to the Company
□Applicable √Not applicable
(6) Excess losses incurred by joint ventures or associates
□Applicable √Not applicable
(7) Unconfirmed commitments related to joint venture investments
□Applicable √Not applicable
(8) Contingent liabilities relating to investment in joint ventures or associates
□Applicable √Not applicable
4. Important joint operations
□Applicable √Not applicable
5. Equity in structured entities not included in the scope of consolidated financial
statements
Notes on structured entities not included in the consolidated financial statements:
□Applicable √Not applicable
6. Other
□Applicable √Not applicable
XI. Government subsidy
1、 Government subsidies recognized by accounts receivable at the end of the reporting
period
□Applicable √Not applicable
Reasons for not receiving the expected amount of government subsidies at the expected time
point
□Applicable √Not applicable
2、 Liabilities items involving government subsidies
√Applicable □Not applicable
Unit: RMB
Financial Transferred to
statement items Opening balance other income in Closing balance
Related to
this period assets/income
Deferred income 116223417.33 2042066.84 114181350.49 Asset-related
Total 116223417.33 2042066.84 114181350.49 /
3、 Government grant included in profit or loss for the current period
√Applicable □Not applicable
Unit: RMB
Type Amount in the current period Amount in the previous period
Asset-related 2042066.84 2565819.95
Income-related 11191521.67 2042066.84
Total 13233588.51 4607886.79
Other notes:
None
XII. Risks associated with financial instruments
1. Risk of financial instruments
√Applicable □Not applicable
The Company's goal in risk management is to achieve a balance between risks and
benefits minimize the negative impact of risks on the Company's operating performance and
maximize the interests of shareholders and other equity investors. Based on this risk
management objective the basic strategy of the Company's risk management is to identify and
analyze various risks faced by the Company establish an appropriate risk tolerance bottom line
and carry out risk management and supervise various risks in a timely and reliable manner
and control risks within a limited range.In its daily operations the Company faces various risks related to financial instruments
primarily including credit risk liquidity risk and market risk. The management has reviewed and
approved policies to manage these risks.Credit risk
Credit risk refers to the risk that one party to a financial instrument cannot fulfill its
obligations resulting in financial losses for the other party.
1. Credit Risk Management Practices
(1) Credit Risk Assessment Methods
The Company 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 Company 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 historical data external credit risk rating and
forward-looking information. The Company 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 Company 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 balance sheet date rises by a certain margin from that at its initial recognition;
2) Qualitative criteria mainly include significant adverse changes in the debtor's operational
or financial conditions existing or anticipated changes in technological market economic or
legal environments that will have a material adverse impact on the debtor's ability to repay the
Company etc.
(2) Definition of Defaulted and Credit-Impaired Assets
When a financial instrument meets one or more of the following conditions the Company
classifies the financial asset as in default with criteria consistent with the definition of incurred
credit impairment:
1) The debtor is experiencing significant financial difficulties;
2) The debtor violates the restrictive terms of the contract applicable to the debtor;
3) The debtor is very likely to go bankrupt or enter into other financial reorganizations;
4) 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;
2. Measurement of Expected Credit Losses
The key parameters for measuring expected credit losses include the probability of default
loss given default and exposure at default. The Company has built the models of probability of
default loss given default and default risk exposure based on the quantitative analysis of
historical data (e.g. rating of counterparties form of guarantee and category of collaterals or
pledges form of repayment) and forward-looking information.
3. A reconciliation of the opening and closing balances of loss provisions for financial
instruments is detailed in Notes VII.4 VII.5 VII.9 VII.13 VII.16 and VII.30 to these financial
statements.
4. Credit Risk Exposure and Credit Risk Concentration
The credit risk of the Company mainly comes from monetary funds and receivables. To
control the aforementioned risks the Company has taken the following measures respectively.
(1) Monetary funds
The Company deposits bank balances and other monetary funds in financial institutions
with high credit ratings resulting in relatively low credit risk.
(2) Accounts Receivable
The Company continuously conducts credit assessments for customers engaged in
credit-based transactions. Based on the credit assessment results the Company chooses to
conduct transactions with accredited and creditworthy customers and monitors their accounts
receivable balances to ensure that the Company is not exposed to significant bad debt risks.As the Company's accounts receivable risk points are distributed among multiple partners
and customers as of June 30 2026 32.30% (December 31 2025: 31.80%) of the Company's
accounts receivable comes from the top five customers and the Company does not have
significant credit concentration risk.The maximum credit risk exposure assumed by the Company is the carrying value of each
financial asset in the balance sheet.Liquidity risk
Liquidity risk refers to the risk of a shortage of funds when the Company performs its
obligations to settle by cash or other financial assets. Liquidity risk may arise from the inability to
sell financial assets at fair value quickly; or from the counterparty's failure to repay its
contractual obligations; or from early-maturity debt; or from the inability to generate expected
cash flows.To control this risk the Company employs a comprehensive approach by utilizing various
financing methods such as bill settlements and bank loans while appropriately combining
long-term and short-term financing to optimize the financing structure thereby maintaining a
balance between financing continuity and flexibility. The Company has obtained credit lines
from multiple commercial banks to meet working capital requirements and capital expenditures.Financial liabilities classified by remaining maturity
June 30 2026
Amount at the end of the year
Item Book value Undiscountedcontract amount Within 1 year 1-3 years Over 3 years
Accounts payable 1936920569.75 1936920569.75 1936920569.75 - -
Other payables 2525408939.65 2525408939.65 2525408939.65 - -
Other current
liabilities 692240469.67 692240469.67 692240469.67 - -
Non-current
liabilities due within 78543508.32 115658786.83 115658786.83 - -
one year
Long term loan 284175043.55 332660948.44 - 70617597.85 262043350.59
Lease liabilities 123826782.28 185159785.66 - 38316974.65 147357157.80
Bonds payable 2799222788.66 2881340000.00 - 2881340000.00 -
Total 8440338101.88 8669389500.00 5270228765.90 2990274572.50 408886161.60
2025
Amount at the end of the year
Item
Book value Undiscountedcontract amount Within 1 year 1-3 years Over 3 years
Accounts payable 1995926945.56 1995926945.56 1995926945.56 - -
Other payables 1013981521.93 1013981521.93 1013981521.93 - -
Other current liabilities 960391048.13 960391048.13 960391048.13 - -
Non-current liabilities
due within one year 120988024.00 158955736.63 158955736.63 - -
Long term loan 456224418.38 535489088.26 10438706.59 129605279.80 395445101.87
Lease liabilities 129609121.91 198478346.65 - 51121188.85 147357157.80
Bonds payable 2799044726.49 2912740000.00 - 2912740000.00 -
Total 7476165806.40 7775962687.16 4139693958.84 3093466468.65 542802259.67
Market risks
Market risk refers to the risk that the fair value of financial instruments or future cash
flows may fluctuate due to changes in market prices. Market risks mainly include interest
rate risk and foreign exchange risk.Interest rate risk
Interest rate risk refers to the risk that the fair value or future cash flows of a financial
instrument will fluctuate due to changes in market interest rates. Fixed-rate interest-bearing
financial instruments expose the Company to fair value interest rate risk while floating-rate
interest-bearing financial instruments expose the Company to cash flow interest rate risk.The Company determines the proportion of fixed-rate and floating-rate financial instruments
based on market conditions and maintains an appropriate portfolio of financial instruments
through regular reviews and monitoring. The interest rate risk on cash flows faced by the
Company is mainly related to the bank loans with floating interest rates that the Company
bears.As of June 30 2026 the Company has bank borrowings at floating interest rates
amounting to RMB 314834963.03 (December 31 2025: RMB 523518963.03). Under the
assumption that other variables remain unchanged a change of 50 basis points in interest
rates will not have a significant impact on the Company's total profit and shareholders'
equity.Foreign exchange rate risk
Foreign exchange risk refers to the risk that the fair value of financial instruments or
future cash flows may fluctuate due to changes in foreign exchange rates. The exchange
rate fluctuation risks faced by the Company are mainly related to the Company’s foreign
currency monetary assets and liabilities. For foreign currency assets and liabilities if
short-term imbalances occur the Company will buy or sell foreign currencies at market
exchange rates when necessary to maintain net risk exposure at an acceptable level.For details of the Company's foreign currency monetary assets and liabilities at the end of
the period please refer to Note VII. 81 Foreign Currency Monetary Items in the notes to these
financial statements.
2. Hedging
(1) The Company conducts hedging business for risk management
□Applicable √Not applicable
Other notes
□Applicable √Not applicable
(2) The Company conducts eligible hedging business and applies hedging accounting
□Applicable √Not applicable
Other notes
□Applicable √Not applicable
(3) The Company conducts hedging business for risk management and expects to
achieve risk management goals but has not applied hedging accounting
□Applicable √Not applicable
Other notes
□Applicable √Not applicable
3. Financial asset transfer
(1) Classification of transfer methods
□Applicable √Not applicable
(2) Financial assets derecognized due to transfer
□Applicable √Not applicable
(3) Transferred financial assets in which the Group continued to be involved
□Applicable √Not applicable
Other notes
□Applicable √Not applicable
XIII. Disclosure of fair value
1. Closing fair value of assets and liabilities measured at fair value
√Applicable □Not applicable
Unit: RMB
Closing fair value
Item Level 1 fair Level 2 fairvalue value Level 3 fair value Total
measurement measurement measurement
I. Continuous fair value measurement
(I) Trading financial assets 2150168093.52 2150168093.52
1. Financial assets that are measured at
fair value and whose changes are 2050168093.52 2050168093.52
included in the current profit and loss
(2) Investment in equity instruments 2050168093.52 2050168093.52
2. Financial assets measured at fair
value through profit or loss
3. Structured deposits 100000000.00 100000000.00
(III) Other equity instrument investments 568185841.14 568185841.14
Total assets continuously measured
at fair value 568185841.14 2150168093.52 2718353934.66
2. Basis for determining the market prices of the items continuously and
non-continuously measured at Level 1 fair value
√Applicable □Not applicable
The Level 1 fair value measurement of trading financial assets held by the Company
consists of stocks traded in active markets. The Company determines their fair value based on
quoted prices in active markets.
3. Valuation techniques and qualitative and quantitative information of important
parameters for the items continuously and non-continuously measured at Level 2
fair value
√Applicable □Not applicable
The Company’s Level 2 fair value–measured trading financial assets consist of bank
wealth management products. The Company determines the fair value of wealth management
products based on the net asset value announced on their year-end valuation date.
4. Valuation techniques and qualitative and quantitative information of important
parameters for the items continuously and non-continuously measured at Level 3
fair value
√Applicable □Not applicable
The Company’s Level 3 fair value–measured trading financial assets consist of equity
instruments of listed companies subject to lock-up periods and structured deposits. For equity
instruments of listed companies subject to lock-up restrictions the Company determines their
fair value by applying a liquidity discount—calculated as a percentage reflecting illiquidity during
the lock-up period—to their active-market quotations. For structured deposits the Company
determines their fair value by estimating future cash flows using expected rates of return and
discounting them accordingly.The other equity instrument investments measured at fair value under Level 3 held by the
Company are equity interests in non-listed companies. For non-listed equity instrument
investments the Company comprehensively considers and applies methods such as the
market approach and discounted cash flow to estimate fair value. For investees whose
operating environment business conditions and financial position have not undergone
significant changes the Company measures fair value using the investment cost as a
reasonable estimate.
5. Adjustment information between the opening book value and closing book value
and the sensitivity analysis of unobservable parameters for items continuously
measured at Level 3 fair value
□Applicable √Not applicable
6. For items continuously measured at fair value if there is conversion between
different levels in the current period the reasons for the conversion and the policy
for determining the time of conversion
□Applicable √Not applicable
7. Changes in valuation techniques in the current period and reasons for changes
□Applicable √Not applicable
8. Fair value of financial assets and financial liabilities not measured at fair value
□Applicable √Not applicable
9. Other
□Applicable √Not applicable
XIV. Related parties and related transactions
1. Parent company of the Company
√Applicable □Not applicable
Unit: RMB 10000
Shareholding Voting right
Name of parent Place of Registered ratio in the ratio in the
company registration Business capital Company Company
(%) (%)
Yiwu China
Commodities City Yiwu Asset
Holdings Limited Zhejiang management
100000.00 56.37 56.37
Notes on the parent company of the Company
None
The ultimate controlling party of this enterprise is the State-owned Assets Supervision and
Administration Office of Yiwu Municipal People's Government.Other notes:
None
2. Subsidiaries of the Company
For details of the Company’s subsidiaries please refer to the Notes
√Applicable □Not applicable
Please refer to Note X. 1. Equity in Subsidiaries
3. Joint ventures and associates of the Company
For details of the Company’s important joint ventures or associates please refer to the Notes
√Applicable □Not applicable
Please refer to Note X. 3 Equity in Joint Ventures or Associates
Other joint ventures or associates that have related-party transactions with the Company in the
current period or had related-party transactions with the Company in the prior year which
resulted in an outstanding amount are as follows.√Applicable □Not applicable
Relationship
Name of joint venture or associate with the
Company
Yiwu Shanglv Joint venture
Yiwu China Commodities City Creative Design and Development Services Co. Ltd. Joint venture
Yiwu Guoshen Shangbo Property Co. Ltd. Joint venture
Yiwu Rongshang Property Co. Ltd. Joint venture
Zhejiang Yemai Data Technology Co. Ltd. Associate
Yiwu Meipinshu Supply Chain Management Co. Ltd. Associate
JEBEL ALI FREE ZONE TRADER MARKET DEVELOPMENT AND OPERATION FZCO Associate
Yiwu Digital Port Technology Co. Ltd. Associate
CCCP Associate
Hangzhou MicroAnts Co. Ltd. Associate
Huishang Zijing Associate
Zhijie Yuangang Associate
Yiwu Heimahui Enterprise Service Co. Ltd. Associate
Zhejiang YXE Supply Chain Management Co. Ltd. Associate
Other notes
□Applicable √Not applicable
4. Other related parties
√Applicable □Not applicable
Name of other related party Relationship with the Company
MDG Controlling shareholder of the Company’s largestshareholder
Yiwu Market Development Service Center Co. Ltd. Subsidiary of controlling shareholder of the Company’slargest shareholder
Yourworld International Conference Center
Company of Yiwu Market Development Group Co. Branch of Controlling shareholder of the Company’s
Ltd. largest shareholder
Zhejiang Xingfuhu Sports Development Co. Ltd. Subsidiary of controlling shareholder of the Company’slargest shareholder
Yiwu Agriculture Development Co. Ltd. Subsidiary of controlling shareholder of the Company’slargest shareholder
Yiwu Security Service Co. Ltd. Subsidiary of controlling shareholder of the Company’slargest shareholder
Zhejiang Yiwu Baixian Wanpin Agricultural Subsidiary of controlling shareholder of the Company’s
Assistance Supply Chain Co. Ltd. largest shareholder
CCCP Enterprises controlled by the largest shareholder
Shangbo Yungu Enterprises controlled by the largest shareholder
CCC Property Service Enterprises controlled by the largest shareholder
Yiwu Jinlong Shangbo Property Co. Ltd. Enterprises controlled by the largest shareholder
Yiwu Jinhong Shangbo Enterprise Management
Co. Ltd. Enterprises controlled by the largest shareholder
Yiwu Shangbo Enterprise Management Co. Ltd. Enterprises controlled by the largest shareholder
Yiwu Gongchen Shangbo Property Co. Ltd. A subsidiary of a joint venture of the Company
Yiwu Chengzhen Property Co. Ltd. A subsidiary of a joint venture of the Company
Yisha Chengdu International Trade City Co. Ltd. Minority shareholder of major subsidiaries
Other notes
None
5. Related transactions
(1) Related transactions for purchasing and selling commodities providing and
receiving labor services
Purchasing goods/accepting service
√Applicable □Not applicable
Unit: RMB
Approved Whether the
Related party Contents of Amount in the transaction transaction limit is Amount in therelated-party transaction current period amount (if exceeded (if previous period
applicable) applicable)
Property service fee and
CCC Property Service greening maintenance 185665835.48 NA NA 112328185.22
fee
Shangbo Yungu Construction fee 8229180.21 NA NA 4576200.00
Yiwu Security Service Co.Ltd. Security service fee 6914204.49 NA NA 8752841.39
Zhijie Yuangang Service fees 3011908.43 NA NA -
Yiwu Digital Port Technology Platform operation and
Co. Ltd. maintenance fees 1320754.72 NA NA 1320754.72
Zhejiang Yemai Data Procurement and
Technology Co. Ltd. system development 1035309.44 NA NA 1592.92fees
Yiwu China Commodities City
Creative Design and
Development Services Co. Design fee 574280.00 NA NA 560673.27
Ltd.Yourworld International
Conference Center Company Procurement and
of Yiwu Market Development meeting affair expenses 119842.22 NA NA 1620.00
Group Co. Ltd.Yiwu Shangdu International
Travel Agency Co. Ltd. Event Organization Fee 38400.00 NA NA 79200.00
Selling goods/rendering services
√Applicable □Not applicable
Unit: RMB
Contents of Amount in
Related party related-party Amount in thecurrent period the previoustransaction period
Zhijie Yuangang Warehousing cost 4830218.08 -
Yiwu Shanglv Product sales 446726.17 -
CCC Property Service Product sales andsystem development 179355.48 328877.36
Yourworld International Conference Center Company of Product sales and
Yiwu Market Development Group Co. Ltd. washing fees 156391.89 1877848.97
Yiwu Meipinshu Supply Chain Management Co. Ltd. Product sales 88495.58 -
CCCP Information servicefee 18867.92 20000.00
Yiwu Digital Port Technology Co. Ltd. Advertising productioncosts - 5158.49
Zhejiang Xingfuhu Sports Development Co. Ltd. Laundering fees - 1530.20
Notes on related-party transactions of purchasing and selling goods and rendering and
accepting service
□Applicable √Not applicable
(2) Entrustment/contracting from and to related parties
Entrustment/contracting to the Company:
√Applicable □Not applicable
Unit: RMB
Starting Ending Entrustment
Name of Name of Type of date of date of Pricing of income/contr
consignor/em consignee/cont entrusted/contr entrustm entrustm entrustment acting income
ployer ractor acted assets ent ent income/contr recognized in/contract /contract acting income the current
ing ing period
MDG The Company Entrustment of 2025-02 2030-01 Negotiatedother assets -01 -31 price 650630.85
Notes on entrustment/contracting from related parties
√Applicable □Not applicable
According to the management contract signed with the Market Development Group for the
Yiwu Yourworld International Conference Center the Company is entrusted to manage the
Yourworld International Conference Center Hotel located at No. 100 Xingfuhu Road Yiwu City.The hotel management fee received by the Company during this reporting period amounted to
RMB 650630.85 (January to June 2025: RMB 371726.38 ).Entrustment/contracting from the Company:
□Applicable √Not applicable
Notes on related-party management/contracting
□Applicable √Not applicable
(3) Related leasing
The Company as the lessor:
√Applicable □Not applicable
Unit: RMB
Name of lessee Type of leased asset Rental income recognized in the Rental income recognized in thecurrent period previous period
CCCP Office space 367373.40 367373.34
Yiwu Market Development Service Center Co.Ltd. Parking lot 297960.54 308009.66
CCC Property Service Office space 240671.58 469929.36
Zhijie Yuangang Office space 145303.36 523239.45
Yiwu Digital Port Technology Co. Ltd. Office space 108509.64 108509.64
Yiwu Shanglv Warehouse and parkinglot - 191131.49
Yiwu Meipinshu Supply Chain Management Co.Ltd. Office space - 107716.98
Yiwu Huishang Micro-finance Co. Ltd. Auxiliary buildings - 78360.00
The Company as the lessee
√Applicable □Not applicable
Unit: RMB
Amount in the current period Amount in the previous period
Simplified treatment of rental Simplified treatment of rental
lessor name Type of leased asset expenses for short-term leases Rent expenses for short-term leases Rent
and leases of low-value assets (if paid and leases of low-value assets (if paid
applicable) applicable)
CCCH Warehouses - - 7512968.82 -
Notes on related-party lease
□Applicable √Not applicable
(4) Related guarantees
The Company as the guarantor
□Applicable √Not applicable
The Company as the guaranteed party
□Applicable √Not applicable
Notes on related-party guarantees
□Applicable √Not applicable
(5)Related-party fund lending
√Applicable □Not applicable
Unit: RMB
Related party Amount Starting date Maturitydate Description of transaction
Borrowings
In 2022 the Group allocated surplus funds of RMB
20182421.25 from Yiwu Chengzhen Real Estate
Yiwu Co. Ltd. with an allocation proportionate to
Chengzhen
Property Co. 20182421.25 Jan 18 2022
shareholding and an annual interest rate of 0%.According to the supplementary agreement for this
Ltd. period the borrowed funds were transferred to its
parent company Yiwu Chuangcheng Real Estate
Co. Ltd.In 2022 the Group received a pre-dividend
Yiwu payment of RMB 53717292.23 from Rongshang
Rongshang 53717292.23 2022-06-30 Property. As of June 30 2026 RMB 48165000.00Property Co. has been repaid and the remaining repayment
Ltd. date will be determined according to the funding
needs of Rongshang Property 's projects.Related party Amount Starting Maturity Description of transaction
date date
Lending to
JEBEL ALI FREE ZONE In 2020 the Group provided
TRADER MARKET
DEVELOPMENT AND 63465484.42 2020-3-9
JEBEL ALI FREE ZONE
TRADER MARKET
OPERATION FZCO DEVELOPMENT AND
JEBEL ALI FREE ZONE OPERATION FZCO financial
TRADER MARKET 109636517.09 Mar 31 assistance totaling RMBDEVELOPMENT AND 2021 63465484.42; in 2021 the
OPERATION FZCO Group provided it with financial
assistance totaling RMB
109636517.09; in 2022 the
Group provided it with financial
JEBEL ALI FREE ZONE assistance totaling RMB
TRADER MARKET May 12 41772885.00 all at an annual
DEVELOPMENT AND 41772885.00 2022 interest rate of 6-month average
OPERATION FZCO EIBOR plus 5%. The repayment
term of the financial assistance
would be determined based on
the progress of the project.(6) Asset transfer and debt restructuring of related parties
□Applicable √Not applicable
(7) Compensation for key officers
√Applicable □Not applicable
Unit: RMB 10000
Item Amount in the current period Amount in the previousperiod
Compensation for key officers 689.45 717.34
(8) Other related transactions
□Applicable √Not applicable
6. Unsettled items such as accounts receivable and related party payable
(1) Receivable items
√Applicable □Not applicable
Unit: RMB
Closing balance Opening balance
Item Related party Book balance Bad debt Bad debtprovision Book balance provision
Accounts Yiwu Meipinshu Supply Chain
receivable Management Co. Ltd. 4815325.23 24432.96 4915325.23 18678.24
Accounts Yiwu Shangdu International Travel
receivable Agency Co. Ltd. 696000.00 3531.50 - -
Accounts Yourworld International Conference
receivable Center Company of Yiwu Market 324507.17 1646.55 189862.89 721.48Development Group Co. Ltd.Accounts Zhejiang Yiwu Liming Lake Training
receivable Service Co. Ltd. 49145.35 249.36 - -
Accounts
receivable Yiwu Digital Port Technology Co. Ltd. 546.80 2.77 151.20 0.57
Accounts
receivable Yiwu Shanglv - - 19580.89 74.41
Total 5885524.55 29863.14 5124920.21 19474.70
Advance
payments Shangbo Yungu 2407154.73 - 5040543.41 -
Advance
payments CCC Property Service - - 73676.50 -
Total 2407154.73 - 5114219.91 -
Other
receivables MDG 1014449.83 - 363907.92 -
Other
receivables Yiwu Shanglv 2405.67 - 2405.67 -
Other
receivables CCC Property Service - - 58369.35 -
Other Yiwu Market Development Service Center
receivables Co. Ltd. - - 43170.40 -
Other
receivables Yiwu Digital Port Technology Co. Ltd. 25000.00 - 25000.00 -
Other
receivables Yiwu Security Service Co. Ltd. 19800.00 - 19800.00 -
Other Zhejiang Xingfuhu Sports Development
receivables Co. Ltd. - - 417.30 -
Total 1061655.50 - 513070.64 -
Closing balance Opening balance
Item Related party Book balance Bad debt Book balance Bad debtprovision provision
Long-term JEBEL ALI FREE ZONE TRADER
receivables MARKET DEVELOPMENT AND 260489038.85 - 255266032.72 -OPERATION FZCO
Total 260489038.85 - 255266032.72 -
(2) Payable items
√Applicable □Not applicable
Unit: RMB
Item Related party Closing book Opening book
balance balance
Accounts
payable CCC Property Service 1121519.80 2410.77
Accounts
payable Zhijie Yuangang 991630.69 -
Accounts
payable Shangbo Yungu 879725.81 2104411.81
Accounts
payable Zhejiang Yemai Data Technology Co. Ltd. 246128.45 223228.45
Accounts
payable Yiwu Security Service Co. Ltd. 76183.49 495800.00
Accounts Zhejiang Yiwu Baixian Wanpin Agricultural Assistance
payable Supply Chain Co. Ltd. 6651.40 16152.77
Accounts Yiwu China Commodities City Creative Design and
payable Development Services Co. Ltd. - 764910.89
Accounts
payable Zhejiang YXE Supply Chain Management Co. Ltd. - 5755.50
Accounts
payable Yiwu Agriculture Development Co. Ltd. - 307.00
Total 3321839.64 3612977.19
Advance from
customers CCCP 329641.51 824103.79
Advance from
customers CCC Property Service 317335.50 -
Advance from
customers Yiwu Digital Port Technology Co. Ltd. 50539.92 202153.56
Advance from
customers Zhijie Yuangang 37015.97 142536.99
Total 734532.90 1168794.34
Contract
liabilities CCC Property Service 69188.08 83706.57
Contract
liabilities Yiwu Digital Port Technology Co. Ltd. 56983.83 43353.25
Contract
liabilities Yiwu Huishang Micro-finance Co. Ltd. 47169.81 -
Total 173341.72 127059.82
Other
payables Yiwu Rongshang Property Co. Ltd. 5552292.23 53717292.23
Other
payables Zhijie Yuangang 2750000.00 2900000.00
Other
payables CCCP 240000.00 240000.00
Other Yiwu Heimahui Enterprise Service Co. Ltd. 111080.00 111080.00
Item Related party Closing book Opening book
balance balance
payables
Other
payables Yiwu Meipinshu Supply Chain Management Co. Ltd. 57000.00 57000.00
Other Yourworld International Conference Center Company of
payables Yiwu Market Development Group Co. Ltd. 51008.00 50900.00
Other
payables Yiwu Digital Port Technology Co. Ltd. 32000.00 32000.00
Other
payables Hangzhou MicroAnts Co. Ltd. 11080.00 11080.00
Other
payables Zhejiang Yemai Data Technology Co. Ltd. 6790.00 6790.00
Other
payables CCC Property Service 3500.00 6220.22
Other
payables Yiwu Chengzhen Property Co. Ltd. - 20182421.25
Total 8814750.23 77314783.70
(3) Other projects
□Applicable √Not applicable
7. Related-party commitments
□Applicable √Not applicable
8. Other
□Applicable √Not applicable
XV. Share-based payment
1. Various equity instruments
(1) Details
□Applicable √Not applicable
(2) Stock options or other equity instruments issued to the public as of the end of the
period
□Applicable √Not applicable
2. Share-based payments settled in equity
□Applicable √Not applicable
3. Share-based payments settled in cash
□Applicable √Not applicable
4. Share-based payment expenses in this period
□Applicable √Not applicable
5. Modification and termination of share-based payment
□Applicable √Not applicable
6. Other
□Applicable √Not applicable
XVI. Commitments and contingencies
1. Important commitments
√Applicable □Not applicable
Important external commitments nature and amount thereof as of the balance sheet dates
Unit: RMB Yuan
Capital commitments June 30 2026 2025
Signed but not paid 1055000016.09 1512446398.43
(1) Capital Commitment for the Project Located South of the 5th District Market in Futian
Subdistrict Yiwu City
On April 30 2026 the Company participated in the land listing auction organized by the
Yiwu Bureau of Natural Resources and Planning and successfully won the right to use the
state-owned construction land for the plot located on the northeast side of the intersection of
Shangcheng Avenue and Shangbo Road Futian Sub-district Yiwu City at a transaction price
of RMB 413 million. According to the resolution passed at the fifth meeting of the 10th board of
directors held on April 28 2026 the estimated total investment for the project is RMB 1.76
billion of which the land cost is RMB 426 million (including deed tax). Funding sources consist
of the Company’s own funds and certain bank loans. As of June 30 2026 the Company has
paid related land payments of RMB 206.5 million.
(2) Investment Commitment to Shangfu Chuangzhi Fund
In 2017 the Company’s wholly-owned subsidiary Yiwu China Commodities City Equity
Investment Co. Ltd. (“CCCEI”) 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”). CCCEI has committed a capital contribution of RMB
998.00 million as a limited partner in the FOF accounting for 49.9% of the total committed
capital with a paid-in capital of RMB 102.92 million and an unfunded commitment of RMB
895.08 million with no contribution deadline. CCCEI also contributed RMB 9.8 million 49% of
total shares to jointly establish Yiwu China Commodities City Investment Management Co. Ltd.(hereinafter referred to as “CCCIM”). CCCIM acts as the general partner of the
above-mentioned FOF and sub-funds. Fuxing made a capital contribution of 51% to and had
control over CCCIM.The Shangfu Chuangzhi Fund has raised a total of RMB 823.36 million. As a limited partner
the FOF has committed and paid in RMB 205.84 million (including the aforementioned RMB
102.92 million paid in by CCCEI with the remaining portion contributed by Fuxing Group
another limited partner of the FOF). In addition CCCEI has separately committed and paid in
RMB 617.51 million as a limited partner in the Shangfu Chuangzhi Fund. All of the
aforementioned contributions have been fully paid. Other than the above neither the Group nor
CCCEI has participated in the investments of other subsidiary funds under the FOF. Shangfu
Chuangzhi Fund subsequently subscribed to the increased registered capital of Hubei Asset
Management Co. Ltd. for RMB 820.54 million holding 22.6667% of its equity. In 2019 9 out of
the 12 sub-funds mentioned above were cancelled.In 2018 during the follow-up management process CCCEI learned that Fuxing and its
actual controller Zhu Yidong were suspected of criminal activities. The 22.667% equity held in
Hubei Asset Management Co. Ltd. by Shangfu Chuangzhi Fund was frozen by the Second
Intermediate People’s Court of Shanghai due to the funding source including contributions from
Fuxing Group. As of the date of approval for the financial statements the relevant equity was
still frozen.As of the date when the financial statements were approved for release the Group has not
received any contribution notices other than the already contributed portions mentioned above
or any litigation notices involving the Group CCCEI the FOF and the sub-funds.(3) Other Investment Commitments
As of June 30 2026 the Group had other investment commitments totaling RMB 382.8028
million (December 31 2025: RMB 336.7670 million).
2. Contingencies
(1) Important contingencies on the balance sheet date
√Applicable □Not applicable
Unit: RMB Yuan
Item June 30 2026 2025
Contingent liabilities resulting from
the guarantee provided externally 4086827.78 4195330.16
According to relevant regulations the Group is required to provide mortgage loan
guarantees to the bank for the sale of commercial housing before the purchaser of the housing
has completed the formalities for obtaining the property ownership certificate. The outstanding
guarantee amount as of June 30 2026 was RMB 4086827.78 (December 31 2025: RMB
4195330.16). 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.
(2) The Company should also provide an explanation if there are no important or
contingent matters that need to be disclosed:
□Applicable √Not applicable
3. Other
□Applicable √Not applicable
XVII. Matters after the balance sheet date
1. Important non-adjustment events
□Applicable √Not applicable
2. Profit distribution
√Applicable □Not applicable
Unit: RMB
Profits or dividends to be distributed 548355922.60
Profits or dividends announced through deliberation and approval 548355922.60
3. Sales return
□Applicable √Not applicable
4. Other events after the balance sheet date
□Applicable √Not applicable
XVIII. Other important matters
1. Correction of previous accounting errors
(1) Retrospective restatement
□Applicable √Not applicable
(2) Prospective application
□Applicable √Not applicable
2. Significant debt restructuring
□Applicable √Not applicable
3. Exchange of assets
(1) Non-monetary asset exchange
□Applicable √Not applicable
(2) Exchange of other assets
□Applicable √Not applicable
4. Pension plan
□Applicable √Not applicable
5. Termination of operations
□Applicable √Not applicable
6. Information of divisions
(1) Determination basis and accounting policy of reporting divisions
√Applicable □Not applicable
The Company determines its reporting segments based on internal organizational structure
management requirements internal reporting systems and other relevant factors with the
business segments serving as the foundation for the determination of reporting segments.Performance evaluations are conducted separately for market operation services trade service
business supporting service business merchandise sales segment and supporting real estate
business. Assets and liabilities that are jointly used by various segments shall be allocated
among the different segments according to their scale proportions.
(2) Financial information of reporting divisions
√Applicable □Not applicable
Unit: RMB million
Market Comple Trade Supporti Product Set-offsItem operatio mentaryreal service ng sales among Totaln estate s services divisions
Revenue from external
transactions 2578.52 1556.29 378.75 317.14 5450.84 10281.54
Among which: Revenue
generated from contracts 2407.17 1556.29 221.16 317.14 5450.84 9952.60
with customers
Revenue from inter-division
transactions 30.03 8.50 51.86 52.28 0.09 142.76 -
Profits before tax 1717.66 580.90 374.56 1.57 2.98 2677.67
Total assets 55467.20 1465.54 8280.24 1714.36 4571.42 28319.44 43179.32
Total liabilities 32889.66 427.31 2629.84 1435.37 4409.21 20801.50 20989.89
Capital expenditures 3576.36 33.72 85.43 26.70 0.79 3723.00
Long-term equity investment in
joint ventures and associates 95.49 - 9.02 - 0.14 104.65
(3) If the Company does not have reporting divisions or is unable to disclose the total
assets and total liabilities of each division please explain
□Applicable √Not applicable
(4) Other notes
□Applicable √Not applicable
7. Other important transactions and events that have influence on investors’ decisions
□Applicable √Not applicable
8. Other
□Applicable √Not applicable
XIX. Notes to Main Items in the Financial Statements of the Parent Company
1. Accounts receivable
(1) Disclosure based on account age
√Applicable □Not applicable
Unit: RMB
Account age Closing book balance Opening book balance
Within one year (including one year) 6733960.85 7138901.32
Of which: within one year 6733960.85 7138901.32
2 to 3 years 1650.46 56211.60
Over 3 years 1423112.54 1474184.11
Total 8158723.85 8669297.03
(2) Categorized disclosure based on the bad debt provision method
√Applicable □Not applicable
Unit: RMB
Closing balance Opening balance
Book balance Bad debt Bad debt
Category provision
Book balance provision
Propor Provisi Book value Propor Provisi Book value
Amount tion Amount onratio Amount tion Amount
on
(%) (%) ratio(%) (%)
Accounts
receivable for
which bad debt 8158723.85 100.00 1810479.27 22.19 6348244.58 8669297.03 100.00 1555038.65 17.94 7114258.38
provision is made
by group
Among them:
Provision for bad
debts based on
the combination of 8158723.85 100.00 1810479.27 22.19 6348244.58 8669297.03 100.00 1555038.65 17.94 7114258.38
credit risk
characteristics
Total 8158723.85 / 1810479.27 / 6348244.58 8669297.03 / 1555038.65 / 7114258.38
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: combined provision for bad debts based on credit risk
characteristics
Unit: RMB
Closing balance
Name Book balance Bad debt Provision ratioprovision (%)
Provision for bad debts based on the
combination of credit risk 8158723.85 1810479.27 22.19
characteristics
Total 8158723.85 1810479.27 22.19
Description of combined provision for bad debts:
□Applicable √Not applicable
Provision for bad debts based on the general model of expected credit losses
√Applicable □Not applicable
Unit: RMB
Stage 1 Stage 2 Stage 3
Expected credit Expected credit Expected credit
Bad debt provision loss in the loss in the entire loss in the entire Total
coming 12 duration (credit duration (credit
months has not been has beenimpaired) impaired)
Balance on January 1
2026 1555038.65 1555038.65
Movements for the current
period
Provision made in the
current period 255440.62 255440.62
Balance on June 30 2026 1810479.27 1810479.27
Classification basis and bad debt provision ratio for each stage
None
Explanation of significant changes in the book balance of accounts receivable with changes in
loss provisions in this period:
□Applicable √Not applicable
(3) Provisions for bad debts
√Applicable □Not applicable
Unit: RMB
Amount of change during the
Category Opening current periodbalance Recovery or Closing balanceProvision reversal
Bad debt provision for
accounts receivable 1555038.65 255440.62 - 1810479.27
Total 1555038.65 255440.62 - 1810479.27
In which the recovered or reversed amount is important:
□Applicable √Not applicable
Other notes
None
(4) Accounts receivable actually written off during the current period
□Applicable √Not applicable
Information of write-off of important accounts receivable
□Applicable √Not applicable
Description of accounts receivable written off:
□Applicable √Not applicable
(5) Five debtors with the highest closing balances of accounts receivable and contract
assets
√Applicable □Not applicable
Unit: RMB
Closing Closing Closing
Proportion in the
total closing Closing
Debtor balance of balance of
balance of
accounts balance of balance ofaccounts contract accountsreceivable and bad debt
receivable assets receivable andcontract assets contract assets (%) provision
Zhejiang Zheli Football Industry
Development Co. Ltd. 508942.30 - 508942.30 6.24 29241.82
Shenzhen Sanhang General
Aviation Co. Ltd. 500000.00 - 500000.00 6.13 28728.03
Yiwu Aoxiang Stationery Co. Ltd. 388354.00 - 388354.00 4.76 22313.29
Zhejiang Chouzhou Professional
Basketball Club Co. Ltd. 385330.00 - 385330.00 4.72 22139.54
Yiwu Fusheng Cultural
Communication Co. Ltd. 300908.00 - 300908.00 3.69 17288.99
Total 2083534.30 - 2083534.30 25.54 119711.67
Other notes
None
Other notes:
□Applicable √Not applicable
2. Other receivables
Presentation of items
√Applicable □Not applicable
Unit: RMB
Item Closing balance Opening balance
Other receivables 72918986.21 68315773.58
Total 72918986.21 68315773.58
Other notes:
□Applicable √Not applicable
Interest receivable
(1) Classification of interest receivable
□Applicable √Not applicable
(2) Significant overdue interest
□Applicable √Not applicable
(3) Categorized disclosure based on the bad debt provision method
□Applicable √Not applicable
Accounts receivable for which bad debt provision is made individually:
□Applicable √Not applicable
Explanation for making bad debt provision for accounts receivable individually:
□Applicable √Not applicable
Explanation for making bad debt provision for accounts receivable by group:
□Applicable √Not applicable
(4) Provision for bad debts based on the general model of expected credit losses
□Applicable √Not applicable
(5) Provisions for bad debts
□Applicable √Not applicable
In which the recovered or reversed amount is important:
□Applicable √Not applicable
Other notes:
None
(6) Interest receivable actually written off in this period
□Applicable √Not applicable
Important interest receivable written off among them
□Applicable √Not applicable
Explanation of writing-off:
□Applicable √Not applicable
Other notes:
□Applicable √Not applicable
Dividend receivable
(1) Dividend receivable
□Applicable √Not applicable
(2) Important dividend receivable with an account age longer than 1 year
□Applicable √Not applicable
(3) Categorized disclosure based on the bad debt provision method
□Applicable √Not applicable
Accounts receivable for which bad debt provision is made individually:
□Applicable √Not applicable
Explanation for making bad debt provision for accounts receivable individually:
□Applicable √Not applicable
Explanation for making bad debt provision for accounts receivable by group:
□Applicable √Not applicable
(4) Provision for bad debts based on the general model of expected credit losses
□Applicable √Not applicable
(5) Provisions for bad debts
□Applicable √Not applicable
In which the recovered or reversed amount is important:
□Applicable √Not applicable
Other notes:
None
(6) Dividends receivable actually written off in this period
□Applicable √Not applicable
Important dividend receivables written off among them
□Applicable √Not applicable
Explanation of writing-off:
□Applicable √Not applicable
Other notes:
□Applicable √Not applicable
Other receivables
(1) Disclosure based on account age
√Applicable □Not applicable
Unit: RMB
Account age Closing book balance Opening book balance
Within one year (including one
year) 72198415.20 66786891.36
Of which: within one year 72198415.20 66786891.36
1 to 2 years 522380.00 1226187.89
2 to 3 years 74828.00 294644.93
Over 3 years 167045.31 51731.70
Bad debt provision for other
receivables -43682.30 -43682.30
Total 72918986.21 68315773.58
(2) Classification based on the nature of accounts
√Applicable □Not applicable
Unit: RMB
Nature of receivable Closing book balance Opening book balance
Withholdings deposit and
margin 72660068.51 67830332.88
Reserve 302600.00 529123.00
Total 72962668.51 68359455.88
(3) Bad debt provision
√Applicable □Not applicable
Unit: RMB
Stage 1 Stage 2 Stage 3
Expected credit Expected credit loss in Expected credit loss
Bad debt provision loss in the the entire duration in the entire duration Total
coming 12 (credit has not been (credit has been
months impaired) impaired)
Balance on January 1
2026 43682.30 43682.30
Movements for the current
period
Provision made in the
current period - -
Balance on June 30
2026 43682.30 43682.30
Classification basis and bad debt provision ratio for each stage
None
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
Category Opening periodbalance Closing balanceProvision Recovery orreversal
Bad debt provision for
other receivables 43682.30 - - 43682.30
Total 43682.30 - - 43682.30
Among them important recovered or reversed amounts:
□Applicable √Not applicable
Other notes
None
(5) Other receivables actually written off during the current period
□Applicable √Not applicable
Of which important write-offs of other receivables:
□Applicable √Not applicable
Notes on the write-off of other receivables:
□Applicable √Not applicable
(6) Other receivables from the five debtors with highest closing balance
√Applicable □Not applicable
Unit: RMB
Weight in the total Closing
Debtor Closing balance closing balance of Nature of Account
balance
other receivables receivable age of bad
(%) debtprovision
Yiwu China Commodities City Within 1
Information Technology Co. Ltd. 20448075.59 28.03 year -
Jiangdong Sub-district Office Yiwu City 2831845.00 3.88 Within 1year -
Yiwu Market Development Group Co. Withholdings
Ltd. 991949.83 1.36 deposit and
Within 1
margin year
-
Yiwu Power Transmission and 926910.00 1.27 Within 1Transformation Engineering Co. Ltd. year -
Yiwu China Commodities City Within 1
Advertising Co. Ltd. 752608.08 1.03 year -
Total 25951388.50 35.57 / / -
(7) Reported as other receivables due to centralized fund management
□Applicable √Not applicable
Other notes:
□Applicable √Not applicable
3. Long-term equity investment
√Applicable □Not applicable
Unit: RMB
Closing balance Opening balance
Item Book balance Impairment Book value Book balance Impairmentprovision provision Book value
Investment in subsidiaries 5411705076.36 - 5411705076.36 5046275076.36 - 5046275076.36
Investment in associates and joint
ventures 5341654368.40 - 5341654368.40 5377467541.26 - 5377467541.26
Total 10753359444.76 - 10753359444.76 10423742617.62 - 10423742617.62
(1) Investment in subsidiaries
√Applicable □Not applicable
Unit: RMB
Change in the
Opening balance (book Opening balanceInvestee of impairment current period Closing balance (book
Closing balance of
value). impairmentprovision Additional value) provisions
investment
Yiwu China Commodities City Equity Investment
Co. Ltd. 2239875113.66 - - 2239875113.66 -
Yiwu Shangbo Yuncang Enterprise Management
Co. Ltd. 500000000.00 - - 500000000.00 -
Zhejiang Xunchi Digital Technology Co. Ltd. 444552181.40 - - 444552181.40 -
Yiwu Shangcheng Gonglian Enterprise
Management Co. Ltd. 200000000.00 - - 200000000.00 -
Zhejiang China Commodities City Group
Commercial Factoring Co. Ltd. 120228576.29 - - 120228576.29 -
Yiwu China Commodities City Big Data Co. Ltd. 106073169.94 - - 106073169.94 -
Yiwu China Commodities City Import and Export
Co. Ltd. 102682623.42 - - 102682623.42 -
Yiwu China Commodities City Logistics and
Warehousing Co. Ltd. 402791028.68 - - 402791028.68 -
Yiwu China Commodities City Overseas
Investment and Development Co. Ltd. 102070785.49 - - 102070785.49 -
Yiwu China Commodities City Supply Chain
Management Co. Ltd. 102004023.69 - - 102004023.69 -
Yiwu China Commodities City Tourism
Development Co. Ltd. 101336968.55 - - 101336968.55 -
Zhejiang Huajie Investment and Development
Co. Ltd. 118114109.26 - 1600000.00 119714109.26 -
Yiwu Comprehensive Bonded Zone Operation
and Management Co. Ltd. 60972389.75 - - 60972389.75 -
Yiwu China Commodities City Information
Technology Co. Ltd. 51161932.29 - - 51161932.29 -
Hangzhou Shangbo Nanxing Property Co. Ltd. 50000000.00 - 350000000.00 400000000.00 -
Yiwu China Commodities City Exhibition Co.Ltd. 21306906.66 - - 21306906.66 -
Zhejiang Yindu Hotel Management Co. Ltd. 16023261.89 - - 16023261.89 -
Yiwu China Commodities City Assets Operation
and Management Co. Ltd. 12296220.02 - - 12296220.02 -
Yiwu China Commodities City Research Institute
Co. Ltd. 11908026.08 - - 11908026.08 -
Yiwu Yundailu Data Technology Co. Ltd. 277300000.00 - 12000000.00 289300000.00 -
Zhejiang Think Tank Co. Ltd. 5577759.29 - 1830000.00 7407759.29 -
Total 5046275076.36 - 365430000.00 5411705076.36 -
(2) Investment in associates and joint ventures
√Applicable □Not applicable
Unit: RMB
Change in the current period
Opening Investment Closing
Investment Opening balance balance of gains or losses Declared Closing balance balance of
Unit (Book value) impairment Decrease in distribution of
provisions investment
recognized
with the equity cash dividends
(Book value) impairment
method or profits
provision
1. Joint ventures
Yiwu Shanglv 495087165.08 - 24817793.64 - 519904958.72
Yiwu Rongshang Property Co. Ltd. 65642099.07 - - - 65642099.07
Change in the current period
Opening Investment Closing
Investment Opening balance balance of DeclaredDecrease in gains or losses distribution of Closing balance balance ofUnit (Book value) impairment
provisions investment
recognized
with the equity cash dividends
(Book value) impairment
provision
method or profits
Yiwu Chuangcheng Property Co. Ltd. 22432434.56 - 686036.15 - 23118470.71
Yiwu Guoshen Shangbo Property Co. Ltd. 230224100.35 - -198735.59 122500000.00 107525364.76
Other 22329847.63 - -2077706.30 - 20252141.33
Sub-total 835715646.69 - 23227387.90 122500000.00 736443034.59
2. Associates
Yiwu Huishang Redbud Phase II Investment
Partnership (limited partnership) 142443370.99 5256302.57 -306077.35 3543697.43 133337293.64
Huishang Micro-finance 80417977.97 - 450350.41 - 80868328.38
Chouzhou Financial Lease 616776809.63 - 74742545.92 - 691519355.55
Pujiang Lvgu Property Co. Ltd. 417546857.51 - 731079.98 - 418277937.49
CCCP 3010405181.86 - -565903.49 - 3009839278.37
Zhijie Yuangang 150735923.03 - -2229843.83 - 148506079.20
Other 123425773.58 - -562712.40 - 122863061.18
Sub-total 4541751894.57 5256302.57 72259439.24 3543697.43 4605211333.81
Total 5377467541.26 5256302.57 95486827.14 126043697.43 5341654368.40
(3) Impairment testing of long-term equity investments
□Applicable √Not applicable
Other notes:
□Applicable √Not applicable
4. Operating revenue and operating cost
(1) Overview of operating revenue and operating cost
√Applicable □Not applicable
Unit: RMB
Item Amount in the current period Amount in the previous periodRevenue Cost of sales Revenue Cost of sales
Main business 3754525392.67 1212473500.44 2310224197.36 522622745.89
Other
businesses 203173422.41 72784823.71 237995132.23 78519451.56
Total 3957698815.08 1285258324.15 2548219329.59 601142197.45
(2) Breakdown information of operating revenue and operating costs
√Applicable □Not applicable
Unit: RMB
Classified by type of contract TotalOperating revenue Operating cost
Types of goods
The use of shops in the China Commodities
City markets and the supporting services for 2368268373.95 538382228.65
operation
Hotel accommodation and catering services 135014960.47 131440657.20
Lease 200000444.82 172901601.84
Other services 1254415035.84 442533836.46
Classified by business area
Chinese Mainland 3957698815.08 1285258324.15
Classified by contract term
Recognizing revenue at a certain point in
time 72778425.61 70851734.20
Recognizing revenue during a certain period
of time 3884920389.47 1214406589.95
Total 3957698815.08 1285258324.15
Other notes
□Applicable √Not applicable
(3) Contract performance obligations
√Applicable □Not applicable
Unit: RMB
The types of
Nature of the Whetherthe The expected qualityTime for fulfilling Important payment goods that theItem performance Company Company
refunds to assurance
terms customers provided by theobligations promises to is the main
transfer responsible
borne by the Company and
person Company relatedobligations
Advance payment or
Sales of goods When delivering right to receive Trade retailgoods payment after goods Yes - No
delivery of goods
The use of shops in
the China Part of the deposit Shop use right /
Commodities City When providing will be collected in supporting
markets and the services advance and the services for Yes - No
supporting services remaining amount will operation
for operation be collected upon
Hotel When providing completion of the Hotelaccommodation services performance accommodation Yes - Nobusiness service
Hotel catering When providing Collection upon
business services completion of Catering services Yes - Noperformance
Advance receipts or
the right to receive
Real estate sales When delivering payment upon Real estategoods transfer of control projects Yes - No
over the relevant real
estate
Total / / / / - /
(4) Explanation of allocation to remaining contract performance obligations
□Applicable √Not applicable
(5) Significant contract changes or significant transaction price adjustments
□Applicable √Not applicable
Other notes:
The revenue recognized during the current period that was included in the opening carrying
amount of contract liabilities amounted to RMB 398679184.72.
5. Investment income
√Applicable □Not applicable
Unit: RMB
Item Amount in the Amount in thecurrent period previous period
Income from long-term equity investments
accounted for under the cost method - 14700000.00
Income from long-term equity investment
calculated with the equity method 95486827.14 115710572.17
Investment income from disposal of
held-for-trading financial assets 6519438.68 3431649.80
Total 102006265.82 133842221.97
Other notes:
None
6. Other
□Applicable √Not applicable
XX. Supplementary information
1. Detailed statement of non-recurring items for the current period
√Applicable □Not applicable
Unit: RMB
Item Amount Description
Non-current asset disposal gains and losses including
the offsetting portion of the provision for impairment of 2592703.62
assets
Government grants that are recognized in the current
profit or loss excluding the government grants that are
closely related to the normal operation of the Company
and provided in a fixed amount or quantity and that have 13233588.51
a continuous impact on the Company's gains and losses
according to the national policies and certain standards
Except for effective hedging business related to the Mainly due to
normal operation of the Company the fair value gains 173088221.26 the changes in
Item Amount Description
and losses arising from the holding of financial assets fair value of held
and financial liabilities by non-financial enterprises as trading financial
well as the gains and losses arising from the disposal of assets
financial assets and financial liabilities
Cash occupation fees charged from non-financial
enterprises that are recognized in the current profit or 12281917.98
loss
Profits and losses arising from external entrusted loans 1251786.16
Net income from other non-operating activities 1959021.11
Less: effect of income tax 47800595.93
Effect of non-controlling interest (after-tax) 559815.30
Total 156046827.41
For companies that recognize items not listed in the Explanatory Announcement No. 1 on
Information Disclosure of Companies Issuing Securities to the Public - Non-recurring Profit and
Loss as non-recurring profit and loss items with significant amounts and for companies that
define non-recurring profit and loss items listed in the Explanatory Announcement No. 1 on
Information Disclosure of Companies Issuing Securities to the Public - Non-recurring Profit and
Loss items as recurring profit and loss items the reasons should be explained.□Applicable √Not applicable
Other notes
□Applicable √Not applicable
2. Return on equity and earnings per share
√Applicable □Not applicable
EPS
Profits in the reporting period Weightedaverage ROE (%) Basic EPS Diluted EPS
Net profits attributable to common
shareholders of the Company 8.28 0.36 0.36
Net profits attributable to common
shareholders of the Company after
deducting non-recurring gains and 7.63 0.33 0.33
losses
3. Differences in accounting data under domestic and foreign accounting standards
□Applicable √Not applicable
4. Other
□Applicable √Not applicable
Legal Representative: CHEN Dezhang
Date of approval by the Board of Directors for release: August 26 2026.Amendment
□Applicable √Not applicable
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