StockCode:600415StockShortName:小商品城

ZhejiangChinaCommoditiesCityGroup

Co.,Ltd.2024AnnualReport

ImportantNote

I.TheBoardofDirectors,theBoardofSupervisorsandthedirectors,supervisorsandseniormanagementoftheCompanyherebywarrantthetruthfulness,accuracyandcompletenessofthecontentsoftheAnnualReport,guaranteethattherearenofalserepresentations,misleadingstatementsormaterialomissionscontainedinthisAnnualReport,andarejointlyandseverallyresponsiblefortheliabilitiesoftheCompany.II.AlldirectorsoftheCompanywerepresentattheboardmeeting.III.Pan-ChinaCertifiedPublicAccountantsLLPhasissuedanauditor'sreportwithanunqualifiedopinionfortheCompany.IV.WANGDong,HeadoftheCompany,BAOHua,Principalinchargeofaccounting,andZHAODifang,Headoftheaccountingdepartment(AccountingManager),declarethattheywarrantthetruthfulness,accuracyandcompletenessofthefinancialreportintheannualreport.V.TheprofitdistributionplanforthereportingperiodortheplanforpublicreservefundsintosharecapitalthatwasapprovedbytheboardofdirectorsBasedonthetotalsharecapitalontheequityregistrationdateforthe2024profitdistribution,acashdividendofRMB3.30(includingtax)willbedistributedforevery10shares.BasedonthetotalsharecapitaloftheCompanyattheendof2024,atotalofRMB1,809,603,155.58(includingtax)incashdividendswillbedistributed.IfthereisachangeinthetotalsharecapitaloftheCompanybeforetheequityregistrationdateforequitydistribution,itisproposedtomaintainthepersharedistributionplanunchangedandadjustthetotaldistributionamountaccordingly.VI.Riskstatementwithforward-lookingrepresentations

√Applicable□NotapplicableTheforward-lookingrepresentationsinvolvedinthisReportsuchasfutureplansanddevelopmentstrategiesdonotconstitutetheCompany’ssubstantialcommitmentstoinvestors.Investorsshouldpayattentiontoinvestmentrisks.VII.IstheCompany’scashoccupiedbyitscontrollingshareholderoranyofotheraffiliatesfornon-operationalpurposes?No

VIII.HastheCompanyprovidedexternalguaranteeinviolationoftheprescribeddecision-makingprocedures?NoIX.Whethermorethanhalfofthedirectorscannotwarrantthetruthfulness,accuracyandcompletenessoftheannualreportdisclosedbytheCompanyNoX.ReminderofmajorrisksTheCompanyhasdescribedtherisksthatmayexistinthisReportindetails.Pleasereferto“PotentialRisks”in“SectionIIIDiscussionandAnalysisofManagers”ofthisReport.XI.Other

□Applicable√Notapplicable

TableofContents

SectionI.Definitions................................................................................................................5

SectionII.CompanyProfileandFinancialHighlights..............................................................6

SectionIII.DiscussionandAnalysisofManagers...................................................................13

SectionIV.CorporateGovernance..........................................................................................59

SectionV.EnvironmentalandSocialResponsibilities...........................................................87

SectionVI.SignificantMatters.................................................................................................89

SectionVII.ChangesinSharesandShareholders................................................................104

SectionVIII.PreferredShares..................................................................................................115

SectionIX.Bonds...................................................................................................................116

SectionX.FinancialReport...................................................................................................128

SectionI.Definitions

I.DefinitionsForthepurposeofthisReport,unlessotherwisestatedinthecontext,thefollowingtermsshallhavethefollowingmeanings:

SectionII.CompanyProfileandFinancialHighlights

I.Companyprofile

II.Contactinformation

III.BasicInformation

IV.Placesforinformationdisclosureandaccesstotheannualreport

V.Stockprofile

VI.Otherrelevantinformation

VII.Majoraccountingdataandfinancialindicatorsinthepastthreeyears(i)Majoraccountingdata

Unit:RMB

(ii)Majorfinancialindicators

ExplanationofmainaccountingdataandfinancialindicatorsoftheCompanyinthepreviousthreeyearsattheendofthereportperiod

√Applicable□Notapplicable

1.TheoperatingrevenueincreasedbyRMB4.438billionYoY,mainlyduetotheYoYincreaseintherevenuefrommarketoperations,andnewbusinessessuchasChinagoodsandYiwuPay,aswellassalesofgoods.

2.ThenetprofitattributabletoshareholdersofthelistedcompanyincreasedbyRMB397millionYoY,mainlyduetoaYoYincreaseofRMB1.389billioninthenetprofitfrommarketoperationsandnewbusinesses,aYoYdecreaseofRMB805millionintheinvestmentincome,andaYoYdecreaseofRMB187millioninthenetprofitduetothereversalofanticipatedliabilitiesfromthepreviousperiodandtheexpropriationofBinwangDigitalCity.

3.ThenetprofitattributabletoshareholdersofthelistedCompanyafterdeductionofnon-recurringgainsandlossesincreasedbyRMB514millionYoY,mainlyduetoaYoYincreaseofRMB397millioninthenetprofitattributabletoshareholdersofthelistedCompanyandaYoYdecreaseofRMB117millioninnon-recurringgainsandlosses.

4.ThenetcashflowgeneratedfromoperatingactivitiesincreasedbyRMB2.646billionYoY,mainlyduetoaYoYnetincreaseofRMB3.286billionincashreceivedfromthesaleofgoodsandtheprovisionofservices,andaYoYincreaseofRMB494millioninvarioustaxespaid.VIII.DifferencesinaccountingdatabetweenforeignandChineseaccountingstandards(i)DifferencesbetweenthenetprofitandnetassetsattributabletoshareholdersoftheCompanydisclosedinaccordancewithinternationalaccountingstandardsandChinaaccountingstandardsinthefinancialreport

□Applicable√Notapplicable(ii)DifferencesbetweenthenetprofitandnetassetsattributabletoshareholdersoftheCompanydisclosedinaccordancewithoverseasaccountingstandardsandChinaaccountingstandardsinthefinancialreport

□Applicable√Notapplicable(iii)Explanationofdifferencesbetweendomesticandoverseasaccountingstandards

□Applicable√NotapplicableIX.Keyfinancialindicatorsbyquarterin2024

Unit:RMB

Explanationofdifferencebetweenquarterlydataanddiscloseddatainregularreports

□Applicable√Notapplicable

X.Non-recurringitemsandamountsthereof

√Applicable□Notapplicable

Unit:RMB

ForcompaniesthatrecognizeitemsnotlistedintheExplanatoryAnnouncementNo.1onInformationDisclosureofCompaniesIssuingSecuritiestothePublic-NonrecurringProfitandLossasnonrecurringprofitandlossitemswithsignificantamounts,andforcompaniesthatdefinenonrecurringprofitandlossitemslistedintheExplanatoryAnnouncementNo.1onInformationDisclosureofCompaniesIssuingSecuritiestothePublic-NonrecurringProfitandLossitemsasrecurringprofitandlossitems,thereasonsshouldbeexplained.

□Applicable√Notapplicable

XI.Itemsmeasuredatfairvalue

√Applicable□Notapplicable

Unit:RMB10,000

XII.Other

□Applicable√Notapplicable

SectionIII.DiscussionandAnalysisofManagers

I.Discussionandanalysisofoperation2024markedatransformativeperiodforYiwuastheinauguralyear,acriticalyear,andayearofrelentlessprogressinitsmissionto"forgenewparadigmsandreinvigorateprosperity".Duringthisperiod,Yiwu'smarketssustainedrobustgrowthmomentum,withtheGlobalDigitalTradeCenterunveilingfiveprioritysectorsandlaunchingcomprehensiveglobaltenantrecruitmentinitiatives.The"OverallPlanforDeepeningComprehensiveInternationalTradeReformsinYiwu,ZhejiangProvince"(G.B.H.[2024]No.93)receivedofficialapprovalfromtheStateCouncil,presentingsignificantdevelopmentalopportunitiesfortheCompany.

Withinthereportingperiod,adheringtoitscorporatemissionof"BecomingaGloballyRenownedComprehensiveInternationalTradeServiceProvider",theCompanyfocusedonfourcorestrategies:upgradingphysicalmarkets,enhancingtradeservices,buildingdigitalecosystems,andexpandingglobalpresence.Theseeffortsdeliveredall-roundimprovementsinoperationalscale,businessquality,profitability,andglobalbrandinfluence.In2024,theCompanyachievedanannualrevenueofRMB15.737billion,up39.27%YoY;thenetprofitattributabletoshareholdersreachedRMB3.074billion,up14.85%YoY;andtheweightedaveragereturnonequity(ROE)stoodat16.10%,withcorefinancialindicatorscontinuouslyreachingrecordhighsyearafteryear.

(i)Focusonthemainbusiness,shoulderthemainresponsibilities,and

acceleratetheiterationandupgradationofthephysicalmarket

1.Themarketremainsprosperous

YiwuInternationalTradeCityrecordedacustomerflowof224,300person-times,up

12.15%YoY;dailyvehicletrafficreached99,000times,up5.48%YoY;anddailyforeignbusinessvisitsexceeded3,900,up17.22%YoY.Theannualmarketattractedover1millionglobalbuyersfrommorethan230countriesandregions,withkeyvisitormetricshittingdecade-highrecords.TheprocurementsharefromemergingmarketssuchastheMiddleEast,SoutheastAsia,andLatinAmericacontinuedtorise.

(Figure1.YiwuInternationalTradeCityCustomerFlowfrom2021to2024)TheCompanypersistentlypromotedproductstandardizationandinnovation-drivendevelopmentinthemarket.Itdeepenedtheimplementationofthenational-levelserviceindustrystandardizationpilotprogram,added5newindustrygroupstandardsand10Englishstandardsforsmallcommodities,whilecompletingcertificationforover20,000products.The7thInternationalSmallCommoditiesCreativeDesignCompetitionattractedparticipationfrom355universitiesworldwide,collectingover5,900entries.Itincubatedover50blockbusterdesigns,drivingsalesgrowthexceedingRMB10millionincategorieslikehouseholditemsandfashionaccessories,demonstratingremarkabledesignpremiumeffects.

2.TheconstructionoftheGlobalDigitalTradeCenterhasbeencomprehensivelyacceleratedTheGlobalDigitalTradeCenterprojectintegratesfivefunctionalmodules:markets,commercialofficebuildings,DigitalBrain,apartments,andcommercialdistrict.Itincorporatesdigitalinfrastructureandservices,integratingdesign,manufacturing,exhibition,trading,tradefulfillment,andupstream/downstreamlinksofthesmallcommodityindustrychaintojointlyformanewdigitaltradeecosystem.Duringthereportingperiod,theconstructionoftheGlobalDigitalTradeCenterhasbeencomprehensivelyaccelerated,withkeyprogressmilestonesasfollows:

(1)Market:Mainstructureshavebeenfullycapped.Industriallayoutplanninghasbeencompleted.ItsopeningisscheduledforOctober2025.

(2)CommercialOfficeBuildings:Buildings3-7madetheirdebutinNovember2024,creatingasensationwithasold-outperformanceimmediatelyuponlaunch.

(3)DigitalBrain:Basicinfrastructurehasbeenestablished.Designedasaglobalsmallcommoditytradedatatradingcenter,digitaltradescenarioexhibitioncenter,andnewproductlaunchcenter,itisscheduledtobeputintooperationinApril2026.

(4)Apartments:Mainstructureshavebeencapped.ItisscheduledtobeputintoservicebyQ12026.

(5)Commercialdistrict:63%ofthetotalconstructionworkhasbeencompleted.Allprimaryandsecondarystructureshavebeenfullycompleted.Itsfinalcompletionisscheduledforearly

2026.

(Figure2.DiagramofFiveFunctionalSectorsofGlobalDigitalTradeCenter)

(ii)Focusontransformation,seizeopportunitiesindigitaltrade,andspeedupempowermentthroughnewtechnologiesandapplications

Duringthereportingperiod,theChinagoodsplatformsawitsregisteredbuyersexceed4.8million.TheCompanyleveragedAI-generatedcontent(AIGC)toempowersmallcommoditytradingapplications,coveringkeytradelinkssuchasproductdisplay,tradematching,andtrafficmarketing,helpingmerchantsreducecostsandincreaseefficiencywhilepromotingdeepintegrationoftraditionalmarketswithforeigntradeecosystems.

TheAI-powered"DigitalLadyBoss"persona,createdbyAI-empoweredphysicalbusinessoperators,hasbecomeawell-knownIP,recognizedbyCCTVasarepresentativecaseofneweconomictransformation.Over19,000newmerchantshaveadoptedAIproductsdevelopedbytheCompany,withover220,000servicedeliveriesprovided.Sixdigitaltoolssuchas"intelligentproductrecommendation"and"AImultilingualcustomerservice"wereindependentlydevelopedbytheCompany.

SinceOctober2023,theChinagoodsplatformhasreleasedaseriesofAI-powereddigitalapplications,includingXiaoshangAIVideoTranslation,XiaoshangAITranslator,XiaoshangAI

StoreAssistant,XiaoshangAIDesigner,AIIndependentWebsite,XiaoshangAIBusinessCard,andXiaoshangAIVideoCreation.Theseapplicationshaveaccumulatedover1billionusageandaccessinstances,withover200,000users.Privatedomaintrafficactivityamongbusinessoperatorsincreasedby72%,andordersfromintensiveusersgrewbyover20%.TheChinagoodsplatformhasestablishedaunifiedmembersystem,linkingtheCompany'ssixbusinessscenariosincludingthemarketsector,exhibitionsector,hotelsector,ICMALLandFingerCanteenbrands,aswellasforeignbusinessrestaurantservices,anddevelopedthe"YiwuCCCMembership"seriesofserviceapplications.In2024,YiwuChinaSmallCommoditiesCityBigDataCo.,Ltd.(operatoroftheChinagoodsplatform)achievedoperatingrevenueofRMB341millionandoperatingnetprofitofRMB165million,aYoYgrowthof

102.05%.

(Figure3.ChronologyofYiwuas"AIForeignTradeCapital")(iii)Focusonservices,expandscenarios,andstrengthenthecoordinationand

supportofrelatedbusinesses

1.ExhibitionbusinessDuringthereportingperiod,YiwuChinaCommoditiesCityExhibitionCo.,Ltd.(hereafterreferredtoas"CCCExhibition")achievedoperatingrevenueofRMB141millionandnetprofitofRMB32million.Adheringtothebusinessphilosophyof"two-wayempowermentandintegratedexhibitionhosting",CCCExhibitiondeepeneddomestic-foreignlinkageanddigitalinnovation,achievingdualbreakthroughsinscaleexpansionandqualityimprovement.Throughouttheyear,55exhibitioneventswereheldwithatotalexhibitionareaexceeding1millionsquaremeters,attractingover1.8millionbuyersandgeneratingintendedtransaction

volumeexceedingRMB30billion,furtherenhancingYiwu'sreputationasaleadingcityintheexhibitionindustry.MajordomesticexhibitionssuchastheChinaYiwuInternationalCommoditiesFair,ChinaYiwuCulturalandTourismProductsTradeFair,andChinaYiwuInternationalHardware&ElectricalAppliancesTradeFairwereheld.Amongthem,the30thChinaYiwuInternationalCommoditiesFairsetup3,900internationalstandardbooths,withover2,500exhibitingenterprises,covering100,000squaremetersofexhibitionarea,andattracting174,000professionalbuyers(including19,000overseasbuyers),generatingintendedtransactionvolumeofRMB20.472billion,markingarecordhighinexhibitionscale.Theinfluenceofdomesticallycultivatedprojectshasbeenenhanced,within-depthdevelopmentofculturalderivativesservingleadingclientssuchasYiwuMuseumandJinchuanGroup.ProductslikeHuangshanBamianHallSachetsandJimingPavilionFoldingLampswonthe"ZhejiangStyleGift"BronzeAwardandZhejiangCulturalandCreativeDesignEmergingAward,promotingtheformationofanintegrated"exhibition+culturalcreativity"ecosystem.In2024,CCCExhibitionwasratedasa"LeadingEnterpriseinZhejiang'sServiceIndustry".

2.HotelbusinessDuringthereportingperiod,theCompany'shotelbusinessfocusedon"resourceintegration,platformempowerment,andinnovativebreakthroughs",deepeningbusinesssynergyanddigitalupgradestoenhancebrandvalueandoperationalquality.In2024,thehotelbusiness(includingentrustedhotels)achievedrevenueofRMB464million.ThroughESGactivities,IPderivativedevelopment,andbeveragescenariomarketing,thebrandimagewasstrengthened.Servicequalitywasupgradedwiththelaunchofacustomizedservicemodel,refiningservicestandardsto300itemsandcompletingthefilmingof200visualizedSOPprocesses,establishingabenchmarkforservicecultureinthehotelindustry.Thetotalnumberofhotelmembersexceeded150,000,anincreaseof32%YoY.Memberdayactivities,privatedomainmarketing,anddirecte-commercechannelconnectionscontributedRMB10milliontothehotelbusinessrevenue,witha21%increaseinchannelmarketing.Thecentralizedprocurementplatformachievedsignificantcostreduction,within-depthdigitaloperationsandPMSsystemupgrades.Themarket's"One-codePass"andChinagoodsplatformcoveredallscenarios,settinganewbenchmarkforplatformuseroperations.Basedontheconceptof"culture+tourism+food",the"OneStore,OneSpecialty;OneStore,OneDelicacy"themedactivitieswerelaunchedtobuildthe"YandooFood"brandandcontributetotheconstructionofaglobalfoodiecity.TheFingertipCanteenecologicalchainachievedstandardizedandscaledupgrades,withtheonlineconsumptionratioincreasingto49.24%.

(iv)Focusoninnovation,improvequalityandupgrade,andacceleratethe

deploymentofnewcommercialfacilities

1.UpgradingsmartlogisticssystemIn2024,theCompany'scross-bordere-commercelogisticspark,spanningover300,000squaremeters,commencedfull-capacityoperations.The"SharedCloudWarehouse"model

achievedabusinessvolumegrowthexceeding70%.TheZhijieYuangangdigitalsupplychainplatformofficiallylaunchedits"Zuhuopai"serviceinMarch.In2024,itprovidedYiwumarketwithover100,000TEUofinternationallogisticsservicesfeaturingenhancedqualityandstablecapacity,markingaYoYgrowthofover100%.Thedigitalcross-bordersupplychainservicefulfillmentplatformwaslistedasa"2024KeyProjectforHigh-QualityDevelopmentofDigitalTradeinZhejiangProvince."

2.CapacityimprovementoftheComprehensiveBondedZone(CBZ)In2024,YiwuComprehensiveBondedZoneachievedanimportvolumeofRMB51.3billion,up35%YoY,ranking3rdamongCBZsinZhejiangProvinceandranking1stamongCBZsapprovedin2020.Fivenewbondedprocessingprojectsand15leadingcross-bordere-commerceplatformsweresigned.Fivemajorsupplychainbrandwarehouses,eachwithaninvestmentexceedingRMB100million,wereestablished.TheYiwuComprehensiveBondedZoneGlobalCentralWarehouseDigitalSupervisionPlatformprojectwasincludedinthe"2024ZhejiangProvinceImportHigh-QualityDevelopmentProjectPlan."TheComprehensiveBondedZonecontinuedexpandingits"One-TimeInspection"initiative,involving27enterprisesandcompletingpre-inspectionsfor86batchesofimportedfood.Inspectionefficiencywasenhancedthroughoptimizedprocesses,enablinglocalizedtestingofbird'snestandcoffee,significantlyreducingturnaroundtime(localizedtestingrateincreasedbyover70%,andexternaltestingwasshortenedfrom30daystounder10days).PhaseIIoftheComprehensiveBondedZonesuccessfullypassedthefinalacceptanceinspectionforcustomslockdown,layingasolidfoundationforfutureimporttradeexpansion.

3.Re-upgradingcross-borderpaymentsystemBytheendofthereportingperiod,YiwuPayachievedmultiplebreakthroughsincross-borderfinance.In2024,totalcross-bordercollectionexceededUSD4billion,up233%YoY,withnetprofitreachingRMB61.044million,a274.67%increase,surpassingoperationalexpectations.Sincelaunchingcross-borderpaymentservicesin2023,theplatformhasbuiltaglobalnetworkcoveringover160countriesandregions,openingcross-borderaccountsfor23,000foreigntradeenterprisesandcompletingover37,000cross-borderpaymenttransactions,withcumulativetransactionvolumeexceedingUSD5billion.Incross-borderfinancialinnovation,YiwuPaypartneredwithBankofChinatoestablishChina'sfirst"e-CNYB2BCross-BorderSettlementPlatform,"upgradingcross-bordertradesettlementstoadigitalcurrencysystem.CollaborationwithIndustrialandCommercialBankofChinacompletedthefirstreal-timesettlementtransactionconvertingUAEDirham(AED)toChineseYuan(CNY)viatheMonetaryBridge,markinganeweraof"zeroexchangeloss,real-timesettlement"forcross-bordertradebetweentheMiddleEastandChina.

Intermsoftechnologicalinnovationsystem,theplatformintegratesbigdataandmachinelearningalgorithmstobuilda"Trinity"intelligentpaymentecosystem.Attheinfrastructurelayer,encryptiontechnologyensuressecureend-to-endtransactiondatatransmission.Attherisk

controllayer,anintelligentriskmanagementsystemswiftlyidentifiessuspicioustransactions.Attheoperationalsupportlayer,acompliance,riskcontrol,andanti-moneylaunderingexpertteamprovides7×24emergencyresponse,safeguardingpaymentsecurity.TheseinnovationsdemonstratethatYiwuPayhasestablishedafull-chaindigitalfinancialecosystemcoveringcross-bordersettlements,currencyhedging,tradefinancing,anddataservices,providingrobustfinancialinfrastructureforSMEs'globalexpansion.

(Figure4.GlobalcurrenciesonYiwuPayandlocalaccount-supportedcurrencies)(v)Focusonopenness,expandscopeandincreaseefficiency,andaccelerate

thepaceofmarketbrandsglobalizationIn2024,theCompanyfurtheradvancedtheYiwuMarketProject,preciselyaligningwithinternationalmarketdynamicstofullypromotethereachofsmallcommoditiestobroadermarkets:

1.ContinuouslyexpandinggloballayoutofYiwuMarketProject.In2024,therewere23newoverseasprojects,including4overseaswarehousesinLosAngeles(U.S.),Tokyo(Japan),Madrid(Spain),etc.;5overseasshowroomsinMoscow(Russia),S?oPaulo(Brazil),etc.;7internationalexhibitionsheldinSouthKorea,Cambodia,Mexico,etc.,withover300exhibitorsandexhibitionareasexceeding12,000squaremeters;and5overseaswebsitesofSouthKorea,Russia,Brazil,Vietnam,andTanzanialaunched.Duringthereportingperiod,atotalof46YiwuMarketProjectsweredeployedacross20countriesandregions,cumulativelyassistingover5,000businessestoaccessglobalmarketsandenablingpreciseproductexposureof700,000+SKUstooverseasbuyers.

2.OptimizingandupgradingYiwuMarketProjectwitha"comboapproach"Focusedonexploringthewarehouse-styleexhibitionandsalescentermodel,theCompanynewlyopened2centersinDubai(UAE)andHoChiMinhCity(Vietnam).TheCompanyalsoorganizedover9,000SKUsamplesacross2,500+m?,introduced"YiwuGoodProducts"brands,attractedinnovativeindustries,optimizedbusinessmodels,andunlockednewgrowthpotential.

(Figure5.GlobalLayoutofYiwuMarketProjects)(vi)FocusonYiwuIndex,iteratemodels,anddeepentheopenutilizationofdata

resourcesIn2024,the“YiwuIndex”modelunderwentoptimizationandupgradeByintegratinginternalandexternalresources,theYiwuIndexteamexpandedmodelindicators,optimizedweighting,formulatedsamplingproductrotationrules,andadjustedthecommodityclassificationsystem.Theupgraded"YiwuIndex"modelbroadeneddatasources,enrichingitwithover30modelindicators,expandingsmallcommoditycategoriesfromtheoriginal15Level-1categoriesand1,964Level-4categoriesto16Level-1categoriesand3,508Level-4categories,providingamorecomprehensiveandaccuratereflectionofsmallcommoditypricesandmarketconditions.Bytheendofthereportingperiod,theupgradedindexinformationnewsletterhadpublished2issues,featuringover20originalin-deptharticlesand1industry-specificresearchreport,withover6,000copiesdistributedtorelevantgovernmentdepartments,researchinstitutions,ChinaYiwuInternationalCommoditiesFairclients,marketchambersofcommerce,purchasers,andbusinessoperators.TheYiwuIndex2.0websitewasconstructedtofurthercategorizeandclassifydatagranularityandaccesspermissions.TheYiwuIndexofficialWeChataccountwasrestructuredtoachieveprecisecontentdeliveryandefficientdisseminationthroughtheplatform,providingcomprehensivebusinessinformationtogovernmententitiesandtradeprofessionalstohelpthemstayupdatedonglobalmarkettrends.

In2023,theCompanysignedastrategiccooperationagreementwithPeople'sData,successfullycompletingdatarightsconfirmationforYiwuIndex-relateddatawiththesupportofthe"People'sChain"andobtainingthe"FirstCertificateforDataonSmallCommodities."In2024,theGroupcollaboratedwiththird-partyinstitutionstosortoutdataassetcardsacross

variousbusinesslinesandconductedmeasurementandanalysisforon-balancesheetdataresources.Bytheendofthereportingperiod,recognizeddataresourceoftheCompanyamountedtooverRMB26million.(vii)Focusonsharing,leveragepilotprograms,andenhancetheinnovative

developmentofimporttradeIn2024,theCompanyproactivelyadvancedthepilotprogramforinnovativedevelopmentofimporttrade,launchingthe"PositiveListSupervisionPlatformforImportedGoods."OnDecember25,thefirsttransactionundertheimporttradeinnovationpilotprogramwassuccessfullyexecuted.Withintheyear,theCompanyobtainedqualificationsforusedvehicleexports,integratedautomotivebrandresourcestoestablishurbanshowrooms,andsteadilyincreasedbusinessvolumes.Additionally,the"ICMALLGlobalGoodsCollectionStores"expandedby11locations,reachingatotalof24stores.

(viii)Focusongreeninitiatives,energyconservation,andconsumptionreduction,

andstrengthenthefoundationforsustainableandstabledevelopment.Throughout2024,98internalcontrolprocesseswereoptimized,and100%ofpaymentoperationspassedthecentralbank'santi-moneylaunderingaudit,withnocomplianceincidentsreported.SignificantprogresswasmadeinestablishingtheEnvironmental,Social,andGovernance(ESG)managementsystem.Bytheendofthereportingperiod,theCompany'srooftopdistributedphotovoltaicpowerstationshadaninstalledcapacityof65MWp,generatingover46.9millionkWhofelectricityandreducingCO?emissionsby38,500tons.Annualgreenelectricitypurchasesexceeded120millionkWh,andrecycledwaterusagesurpassed1milliontons,demonstratingtheintegrationofgreendevelopmentprinciplesintoalloperationalaspects.

Forthefiscalyear2024,theCompanyproposedadividendofRMB3.30per10shares(tax-inclusive),reflectingadividendpayoutratioof58.87%.Overthethree-yearperiodfrom2022to2024,atotalofRMB3.263billionindividendsweredistributed(the2024profitdistributionplanissubjecttoapprovalbytheCompany'sshareholders'meeting).II.DescriptionoftheindustryoftheCompanyduringthereportingperiod

AccordingtothedefinitionsintheGuidelinesforIndustryClassificationofListedCompanies(revisedin2012)releasedbytheCSRC,theCompanyisengagedin“BusinessService”(L72)in“LeaseandBusinessService”(L).

Asagloballyrenownedsmallcommoditytradingcenter,YiwuInternationalTradeCityhasmaintainedaleadingpositioninthecomprehensivemarketinChinaformanyyearsduetoitshugemarkettransactionvolumeandwidevarietyofgoods.TheYiwumarkethasnotonlyformedastrongindustrialclustersupportinthefieldofsmallcommoditycirculation,butalsodriventhedevelopmentof2.1millionsmallandmedium-sizedenterprisesandemploymentof32millionindustrialworkersthroughitsinfluencein233countriesandregionsworldwide.

ThesignificantcharacteristicsoftheYiwumarketcanbesummarizedfromthefollowingaspects:

1.Activemarketentities:TheYiwumarketisanimportantpracticalplatformfortheconceptof"massentrepreneurshipandinnovation".Itnotonlydrivesthedevelopmentofmorethan20industrialclustersand2.1millionsmallandmedium-sizedenterprisesacrossChina,butalsoattractsover20,000residentforeignmerchantsandnearly9,000foreign-ownedentities.ThesenumbersmakeYiwuanimportantgatheringplaceforglobalmerchants,knownasthe"WorldSupermarket".Thereareover200,000marketpractitioners,75,000operatingshops,andatotalofover1.15millionmarketentities.

2.Awiderangeofgoods:Astheworld'slargestsmallcommoditydistributioncenter,Yiwumarketgathers26majorcategoriesand2.1milliontypesofproducts,formingan"oceanofsmallcommoditiesandparadiseforshoppers".Morethantenthousandnewproductsarelaunchedeveryday,andthequality,brandandstandardofsmallcommoditiesareexportedtotheworld,becomingtherepresentativeof"China-chictrend"and"supplyplaceforbestsellinggoods".

3.Innovativebusinessscenarios:TheYiwumarketisanimportantbirthplaceofinnovationintradebusinessscenarios.Thepioneeringmarketprocurementtrademethod(withacustomssupervisionmethodcodeof"1039")hasdrivena7-foldgrowthinYiwu'sforeigntradeexportsinthepastdecadeandhasbeenpromotedto39pilotunitsinChina.Newbusinessformssuchasimporttransshipment,internetcelebritylivestreaming,andcross-bordere-commerceareconstantlyemerging,formingane-commerceecosystemforthefullindustrychain.TheintegrationanddevelopmentoftherealeconomyanddigitaleconomyhaveenabledYiwutocontinuetoleadthenewtrendofglobaltrade.

4.High-qualitytradeecology:Yiwumarketisthepreferredplaceformerchantsandenterprisestotradesmallcommodities.Sincethepilotprogramofcomprehensivereformininternationaltrade,Yiwuhasformedmultiplenational-levelopenplatforms,includingtheFreeTradeZone,ComprehensiveBondedArea,Cross-borderE-commerceComprehensivePilotArea,andImportTradePromotionInnovationDemonstrationArea.InDecember2024,Yiwuwasapprovedforanewroundofpilotreformsininternationaltrade.Thelogisticsnetworkhascoveredover1,500countiesandcitiesacrossChinaandover700hubcitiesworldwide.Government,business,andlifeservicesareinlinewithinternationalstandards,providingcomprehensive"customs,taxation,currencyexchange,transportation,warehousingandfinancing"services,withcontinuouslyoptimizedthebusinessenvironment.

TheYiwumarket,asakeyplatformconnectingdomesticandinternationaltradesupplychains,occupiesacorepositionintheglobalsmallcommoditysupplychainandplaysacrucialroleinpromotinginternalcirculation,enhancingexternalcirculation,andservingthenewdevelopmentpatternof"dualcirculation".Asaleaderanddemonstrationsiteofnationalmarketprocurementtrademethod,Yiwuhasmaintainedhigh-speedgrowthfor10consecutiveyears,

effectivelystimulatingthevitalityofmarketentitiesandfurtherimprovingtheleveloftradefacilitation.In2024,Yiwurecordedatotalimport-exportvolumeofRMB668.93billion,surging18.2%YoY.ThiscomprisedexportsofRMB588.96billion,up17.7%YoY,andimportsofRMB79.97billion,up22.2%YoY.Thesefiguresrepresented12.7%,15.1%,and5.9%oftheprovincialtotalsforoveralltrade,exports,andimportsrespectively.Notably,Yiwucontributed26.1%toZhejiangProvince’sexportgrowth,rankingNo.1amongallregions.Yiwucontinuouslygathersnewmomentuminforeigntradebyexploringemergingmarkets,buildinghigh-levelopenplatforms,andcultivatingandstrengtheningadvantageousindustries.In2024,Yiwu’stradewithAfrica,LatinAmerica,andASEANreachedRMB122.09billion,RMB111.67billion,andRMB64.05billionrespectively,postingYoYgrowthratesof16.4%,24.4%,and26.2%.Overthesameperiod,totaltradewithBeltandRoadInitiative(BRI)countriesamountedtoRMB413.34billionup18.2%YoY,accountingfor61.8%ofYiwu’soverallimport-exportvalue.Themarketprocurementtrademodeldeliveredremarkableresultsin2024,withexportsreachingRMB471.76billion,up21.5%YoY,representing80.1%ofYiwu’stotalexports.YiwuistransitioningfromanationalhubfordailyconsumergoodstradetoaregionalcomprehensivetradehubservingmemberstatesoftheRegionalComprehensiveEconomicPartnership(RCEP).

TheCompanyintegratesmarketresourcesthroughdigitalmeans,connectsvariouslinksinthesupplychain,improvestheefficiencyofcommoditycirculation,andpromotestheiterativeupgradeofmarketprocurementtrademethodtoVersion2.0.MarketprocurementtrademethodhasbecomethemainforcedrivingthegrowthofYiwu'sexports.SoutheastAsia,theMiddleEast,andLatinAmericacontinuedtodominateYiwu’stradepartnerships,whileAfricaandASEANemergedasfast-growingmarkets.CountriesintheBeltandRoadInitiative(BRI)andRCEPregionsremainkeydriversofnewopportunitiesforYiwu.“AIGlobalization”,“RMBInternationalization”and"YiwuMarketProject"havebecomenewhighlightsoftheYiwumarket.In2024,Yiwuattracted53,000collegegraduatesandadded75,000skilledworkers,bothNo.1inZhejiangProvince.Thecityalsorecorded569,000inboundforeignbusinessvisits,up55%YoY,ahistorichigh.Theexpressdeliveryvolumereached12.6billionpieces,rankingsecondinChina.Duringtheyear,Yiwuopenednewair-to-aircustomstransitroutes:

Yiwu-Chengdu-LosAngelesandYiwu-Manila.Itwasapprovedasa10-daytransitvisa-freeport(240hours),whileitsairportachieved3millionannualpassengersforthefirsttime,withaircargovolumeup49%andinternationalcargoup141.2%.

Bytheendof2024,Yiwuhadover1.15millionregisteredmarketentities,rankingfirstamongChina’scounty-levelcities.Intermsofsectoraldistribution,themajorityofmarketentitiesinYiwuareengagedinthewholesaleandretailtradesector,whichconstitutes74.55%ofthetotal.TheYiwuInternationalTradeCity,withover2.1millionSKUofproducts,coversnearlyeveryaspectofdailylife,providingarobustsupplyfoundationforthedevelopmentof

wholesaleandretailsectors.Byleveragingitsmarketadvantages,diverseproductrange,industrialheritage,policy-drivenbusinessenvironment,logisticsconnectivity,e-commerceanddigitalinnovation,andglobalizationstrategies,Yiwu’swholesaleandretailindustriesmaintainstronggrowthmomentum.

Regardingtheentitytype,72.04%ofbusinessesareindividual-owned,reflectingYiwu’svibrantgrassrootsentrepreneurialspirit.

(Figure6.ClassificationofbusinessesinYiwuin2024)

III.DescriptionofthebusinessoftheCompanyduringthereportingperiod

(1)MainbusinessoftheCompanyTheCompanyiscommittedtobuildingasharedtradeserviceplatformforsmallandmedium-sizedenterprisesinChina,withastrategicpositioningofa"GloballyRenownedIntegratedServiceProviderforInternationalTrade",continuouslyenrichingandimprovingthethreemajorecosystems:commoditydisplayandtradingecosystem,supportingservicesecosystem,andtradeservicesecosystem,inordertoreducetradecosts,shortentradechains,improvetradeefficiency,continuouslycreatevalueforthecirculationofsmallcommodities,strengthenandconsolidatetheadvantageouspositionofChina'sdailyconsumergoodssupplychaininglobaltrade,andservethenewdevelopmentpatternofdomestic-internationaldualcirculation.

Thecommoditydisplayandtradingecosystemincludeson-sitemarketoperationandself-operatedtradeproductsales,supportingserviceecosystemincludesexhibitionandhotelsectors,andtradeserviceecosystemincludesChinagoodsonlineserviceplatform,warehousinglogisticsandpayment,creditreporting,factoringandotherbusinesses.

(2)ThemainbusinessmodeloftheCompany

1.Commoditydisplayandtradingecosystem

(1)Marketoperation

ThemarketoperationbusinessismainlyoperatedandmanagedbythesubordinatemarketoperationcompaniesoftheCompany.Themainbusinessincomeofthemarketoperationsegmentismainlytheincomefromtheuseofshops.TheCompanyadoptsashoprentalmodel,thatis,theownershipoftheshopsbelongstotheCompany,andmarkettradersonlyhavetherighttousetheshopwithinthecontractperiod.TheCompanyandmarkettraderssignacontracttoclearlystipulatetheuseperiod,usagefeeandbusinesspurposeoftheshops.Themerchantshallnotchangetheagreedbusinesspurpose,andshallnotsubletwithouttheCompany’sconsent.Thepaymentfortheusagefeeshallbemadeannuallyorbienniallyasstipulatedinthecontract.TheCompanycurrentlyoperatesadiverserangeofmarkets,whichencompasstheFirsttoFifthDistrictMarkets,theFirstDistrictEastExpansionMarket,theSecondDistrictEastMarketwithintheInternationalTradeCity,inadditiontotheHuangyuanMarketandtheInternationalProductionGoodsMarket.

(2)Self-operatedtrade

ICMALListheinitialsofinternationalcommoditymall,whichisasubsidiaryofthewell-knownChinesetrademark"YiwuChinaSmallCommoditiesCity"."爱喜猫"istheChinesetransliterationofICMALL.Withthebrandvisionof"discoveringthebestproductsintheworld",ICMALLcombinesover20,000high-qualityproductsfromimportedgoodsandtrendydomesticproducts,coveringsixcategories:homelife,beautyandskincare,motherandbabyproducts,snacksandbeverages,entertainmentandculturalcreativity,andtoydigital.ICMALLstrivesto

createasupersupplychainchannelbrandinnewfashion,newconsumption,andnewexperienceapplicationscenarios.

TheCompanyenterstheupstreamanddownstreamofmarkettradethroughself-operatedtrade,fullyleveragingitsplatformandbrandadvantages,linkingtradewiththemarketandnurturingthemarket,andformingavirtuousandorderlycycle.

2.Supportingservicesecosystem

(1)Exhibition

TheCompany'sexhibitionsectorhasdevelopedintoaprofessionalexhibitionenterprisewithone-stopservicethatintegratesdomesticexhibitionorganization,overseasexhibition,exhibitionhallmanagement,andexhibitionsupportingservices.Theexhibitionbusinessmainlyundertakesself-operatedexhibitionprojectsbothinChina(ChinaYiwuInternationalSmallCommodity(Standard)Expo(UFI),ChinaYiwuImportGoodsExpo(UFI),ChinaYiwuInternationalForestProductsExpo(UFI),etc.)andoverseas(KoreanImportGoodsExhibition,ChinaConsumerGoods(Russia)BrandExhibition,Benin(WestAfrica)ChinaCommodityExhibition,etc.),andalsoengagesinexhibitionhalloperation,development,leasingandotherexhibitionindustrychainservices.ItalsoundertakestheoperationandmanagementoftheYiwuInternationalExpoCenter.

(2)Hotel

ThehotelservicebusinessismainlyoperatedandmanagedbytheCompany'ssubsidiaryZhejiangYandooHotelManagementCompany.Therearecurrently7star-ratedhotels,1high-endhomestay,andtwocateringbrands,FingertipCanteenandYandooCafe.TheCompany'shotelsmainlyprovidecomprehensiveservicessuchasaccommodation,catering,leisureandentertainment,andconferences.Thehotel'smainrevenueincludesroomsales,cateringsales,commoditysales,andvenueleasing.Salesofguestroomsandcateringmainlyrelyonchannelssuchasclientsagreement,conferences,weddingbanquetsandrecommendationbyoperatorsofonlinebookingplatforms.

3.Tradeservicesecosystem

(1)Onlineserviceplatform

TheChinagoodsplatformoftheCompanyisaB2BdigitaltradecomprehensiveserviceplatformthatreliesontheCompany's75,000physicalshopsinthemarket,serving2.1millionsmallandmedium-sizedenterprisesintheupstreamanddownstreamoftheindustrialchain.Itisdrivenbytradedataintegrationandconnectswiththeneedsofbothsupplyanddemandsides.Thecurrentrevenuemodeloftheplatformistocollectservicefeesbyprovidingbasicservicesandvalue-addedservicesformembers,digitaladvertisingbusinessservices,digitalservicesforfinancialinstitutions,andfourth-partyservices.

(2)Warehousingandlogistics

TheCompany'swarehousingsectorisledbywarehousing,strengtheningtheservicecapacityofYiwufreightwarehouses,regionalwarehouses,andoverseaswarehouses,and

deeplyenteringvariouslinksofthetradechain.TheCompanycurrentlyhasfourparks:

ChinagoodsSharedCloudWarehouse,InternationalDigitalLogisticsMarket,HuanqiuYidaSupplyChainIndustrialPark,andCross-BorderE-CommerceLogisticsPark.ChinagoodsSharedCloudWarehouseismarket-orientedandusesdigitalmeanstoformafullyvisiblewarehousesystem.Itcombinespublicwarehouses,expresspackagedistribution,andinternationalconsolidationtoprovideconvenientwarehousingservicesformarketoperators,domesticandforeignbuyers,logisticsandexpressdeliverycompanies,aswellasfreightforwardersandforeigntradecompanies.InternationalDigitalLogisticsMarketandHuanqiuYidaSupplyChainIndustrialParkarebasedonwarehousingsystems,providingefficient,convenient,andthree-dimensionalwarehousingservicesystemsformarketoperators.

(3)Payment,creditreporting,factoringandotherbusinessesTheCompany's"YiwuPay"isalicensedthird-partypaymentinstitutionsupervisedbythePeople'sBankofChina,providingconvenientandsecureelectronicpaymentsolutionsformerchantsthroughinternetpaymenttechnology.YiwuPaywasestablishedin2012.Withitsprofessionalglobalpaymentservicecapabilities,financialcompliancecapabilities,andsecurityriskcontrolcapabilities,YiwuPayprovidesaone-stopcross-borderpaymentsolutionfordomesticandforeigncustomers,enablingthemtoreceivepaymentsincompliance,settleforeignexchangeeasily,improvefundutilizationefficiency,andensuresafereceiptoffunds.TheCompany’sbusinesscoversvariousscenariossuchasonlineandon-siteB2Bpayments,cross-borderpayments,etc.Domesticpaymentbusiness:Asalicensedpaymentinstitution,YiwuPaylinksmajordomesticbankinginstitutionsthroughclearingorganizationssuchasUnionPayandNetsUnionClearingCorporation,providingmerchantswithcollectionservicessuchasbankcardfastpayment,QRcodescanningpayment,walletpayment,ande-CNYpayment,andobtainspaymentfee.Cross-borderpaymentbusiness:YiwuPayprovidesone-stopcross-borderfundservicessuchasglobalcollectionandpayment,foreignexchangemanagement,etc.forimportandexportenterprises,andobtainscross-borderpaymentfee.Paymentservicebusiness:YiwuPaycollaborateswithCCCCredit,banksandotherinstitutionstoprovidemerchantswithafinancingcreditmodelbasedonpaymentdataastheunderlyinglayer,andCCCCredituniformlyencapsulatesandoutputsittofinancialinstitutionssuchasbanks,providingfinancingservicesandobtainscorrespondingservicefees.

CCCCreditwasestablishedinJuly2014,collaboratingwithgovernmentdepartmentstopromotetheconstructionofthecity'ssocialcreditsystem.Ithasestablishedadatasystemcenteredonpublicdata,commercialdata,ande-commercedata.Byconstructingpreciseenterpriseportraits,itprovidestechnicalsupportincreditverification,jointrewardsandpunishments,inclusivefinance,andotherfieldsofgovernmentandfinancialinstitutions,andempowerstradeecologicalvaluewithdataelements.Currently,itcovers1.08millionlegalentities,withatotalofover164millionpiecesofdata.Throughtheenterprisecreditinformationqueryplatform,CCCCreditprovidesfinancialinstitutionswithenterprisecreditinformation

queryservicesandcarriesoutdatamanagementforinclusivefinanceofbanks.Currently,therearemorethan30,000creditsubjects,withatotalcreditamountofRMB9.93billion.CCCCreditchargesservicefeesthroughtechnologydevelopment,systeminterfacedocking,anddatasupportbasedoninclusivefinanceforbankingandinsuranceinstitutions.

EstablishedinJanuary2022,ZhejiangChinaCommoditiesCityGroupCommercialFactoringCo.,Ltd.isalocalfinancialinstitutionapprovedbytheZhejiangProvincialLocalFinancialRegulatoryAdministration.Itprimarilyengagesintradefinanceactivitiesbyfactoringaccountsreceivable,includingsettlement,management,andcollectionofaccountsreceivable;clientcreditinvestigationandassessment;andnon-commercialbaddebtguarantees.ZhejiangChinaCommoditiesCityGroupCommercialFactoringCo.,Ltd.mainlyservesmerchantsattheYiwuInternationalTradeCity,withitsprimaryrevenuederivedfrominterestincomeonfactoringfinancingandservicefeeincome.Aftertheexpansionofbusinessscaleinthelaterstage,ChinaCommoditiesCityFactoringcancooperatewithbanksandotherfundingpartiestoobtainservicefees.IV.Analysisofcorecompetenciesduringthereportingperiod

√Applicable□Notapplicable

1.First-moveradvantages

IntheearlydaysofChina'sreformandopening-up,Yiwutooktheleadinestablishingitssmallcommoditymarket.Overthepastfourdecades,theYiwumarkethasundergonefivemajorupgradesandtwelveexpansions,consistentlyrankingamongthetopcomprehensivemarketsnationwideintransactionvolumes,demonstratingitssignificantfirst-moveradvantage.Asthelargestcommoditiesdistributioncenterintheworld,theYiwucommoditiesmarketprovidesmorethan2.1millionproducts,whichfallin26categoriesandsupportsone-stoppurchase.Themarketboastsenormousresourcesandhugebusinessflow,goodsflow,cashflowandinformationflow.

2.Brandadvantages

“YiwuChinaCommoditiesCity”isthefirstmarketidentifiedbytheSAICasawell-knowntrademarkamongthenationalcommoditiestradingmarkets.TheCompanyhastakenmultiplemeasurestogiveplaytothebrandof“YiwuChinaCommoditiesCity”andiscommittedtoimprovingitsinfluenceandleadingroleintheindustry.Itsbrandadvantagesandinfluencehavekeptenhancing.

3.Supportingservicesadvantages

ThePeople’sGovernmentofYiwuhasbeenprovidingpolicysupportforthedevelopmentofthemarketforyears,andtheauxiliaryindustriesaredevelopingrapidlyinYiwu.

(1)Advancedlogisticsservicesystem

Yiwuhasinplaceperfectcommerceandtradeauxiliaryfacilitiesandadvantageouslogisticsservice.ThelogisticsnetworkhasfullcoverageinYiwu.Alargenumberoflarge-sizedinternationalanddomesticexpressdeliveryandlogisticscompanieshaveregionaldistribution

centersinYiwu,andaworld-orientedgoodstransportanddistributionnetworkhasbeenestablished.Yiwuhasbeenlistedamongthe“commerceandtrade-orientednationallogisticshubs”bytheNationalDevelopmentandReformCommissionandtheMinistryofTransport.AccordingtotheoperationaldataofChina'spostalindustryreleasedbytheStatePostBureauin2024,Yiwu'sexpressdeliveryvolumereached12.6billionpiecesthatyear,firmlysecuringitspositionasthesecond-largestcourierhubinChina.

(2)StrongindustrysupportDuringtherecentyears,thankstotheYiwuChinaCommoditiesCity,theYiwu-centeredmanufacturingindustryclusterhasbeendevelopingfast,ancommoditiesindustrialbeltthatiscenteredinYiwuandcoversJinhua,Lishui,Quzhou,Hangzhou,Jiaxing,Taihu,Shaoxing,Ningbo,WenzhouandTaizhouwithanareaofnearly10,000km

hasbeenestablished,andabenignmechanismunderwhichtheYiwuwholesalesmarketandtheperipheralindustryclusterdeveloptogetherhasbeenformed.

(3)RobustexhibitionserviceThemajorinternationaltradeexhibitionsheldbytheCompany’sexhibitionbusinessdivisionsuchasChinaYiwuInternationalCommoditiesFair,ChinaYiwuInternationalForestProductsFair,ChinaYiwuInternationalImportedCommoditiesFairandChinaYiwuHardwareandElectricalExposupportandcultivateverticalexhibitioninmultipleindustriessuchasstationeryandtextiles,havedevelopedmultipleprofessionalandinternationalexhibitionbrands,andareimportantnationalplatformsfortheChinaCommoditiesCitytoleadindustrydevelopment,developthecityeconomyandmaintaintheclustersoftradersandcommodities.

4.AdvantagesofdiversifiedbusinessesTheCompanyhasstrengtheneditspresenceintherelatedindustries,madeeffortsonfinancialinvestment,keptdevelopingtheexhibitionbusiness,createdanewe-commercemodel,developedthehotelbusinessandalsoruninternationaltrade,modernlogistics,advertisinginformation,shoppingandtourismbusinesses.Ithascreatedagroupstructureandprofit-makingmodelofsharedandinteractivedevelopmentofmarketresources.

5.ManagementadvantagesIntermsofpersonnel,managementandtechnology,excellentoperationandmanagementabilityisoneofthecorecompetencesoftheCompanyasaprofessionalmarketoperatingcompany.TheCompanyhasdevelopedaseriesofperfectmanagementsystemsformarketoperationandmanagement,accumulatedrichexperienceinoperationandmanagement,andhascultivatedaprofessionalmanagementteamwithreasonableknowledgeandexpertisestructuresandstrategicdevelopmentinsights.

6.AdvantagesofonlineandofflineplatformintegrationTheCompany’sinternationaltradecityisthegloballeadingcommoditymarket.TheCompany’sofficialYiwuCCCwebsite,Chinagoodsplatform,relyingontheCompany’s75,000off-lineshops,throughintegrationofonlineandofflineservices,serves2.1millionsmall,

mediumandmicroenterprisesintheupperreachesoftheindustrychain.Withtradedataintegrationasthecoredriver,itmeetstheneedsofbothsupplyanddemandpartiesinmanufacturing,displaytransactions,warehousingandlogistics,financialcredit,marketmanagementandotherlinks.

7.AdvantagesofinternationallogisticsTheCompany'sZhijieYuanganginternationallogisticsbusiness,establishesalogisticsplatformtoreplacethemulti-layerfreightforwardersystem,thusshorteningtheleveloffreightforwarderdistribution,andimprovinglogisticsefficiency.Incontrast,thetraditionalforeigntradefreightforwardersaredividedintomultiplelevels,thelogisticsandtransportationservicesarenotstandardized,andtheservicepricesvarywidelyandareusuallynotthelowestprice.V.Operatingstatusduringthereportingperiod

Duringthereportingperiod,themainoperatingstatusoftheCompanyisasfollows:

(i)Analysisofmainbusiness

1.Analysisofchangesinrelatedaccountingsubjectsofincomestatementandcashflowstatement

Unit:RMB

Reasonsforthechangeinoperatingrevenue:Theoperatingrevenueincreasedby39.27%YoY,mainlyduetotheYoYincreaseintherevenuefrommarketoperations,andnewbusinessessuchasChinagoodsandYiwuPay,aswellassalesofgoods.

Reasonsforthechangeinoperatingcost:theCompany’soperatingcostincreasedby

30.01%YoY,mainlyduetotheincreaseinthesalesofgoodsduringthecurrentperiod.

Reasonsforthechangeinnetcashflowgeneratedfromoperatingactivities:mainlyduetoaYoYnetincreaseofRMB3.286billionincashreceivedfromthesaleofgoodsandtheprovisionofservices,andaYoYincreaseofRMB494millioninvarioustaxespaid.

Reasonsforthechangeinthenetcashflowfromfinancingactivities:mainlyduetoaYoYdecreaseofRMB2.741billioninthenetinflowfromfinancinginthecurrentperiod.

Detailsofmaterialchangestothebusinesstypes,thecomponentsorsourcesofprofitsoftheCompanyinthisreportingperiod

□Applicable√Notapplicable

2.Revenueandcostanalysis

√Applicable□NotapplicableTheCompany'soperatingrevenuefor2024wasRMB15.737billion,anincreaseofRMB

4.438billionYoY,andoperatingcostswereRMB10.798billion,anincreaseofRMB2.492billionYoY;Amongthem,themainbusinessrevenuewasRMB15.023billion,up37.38%YoY,andthemainbusinesscostwasRMB10.385billion,up27.23%YoY.

(1).Mainbusinessbyindustry,product,region,andsalesmodel

Unit:RMB10,000

Explanationofmainbusinessbyindustry,product,regionandsalesmode

1.Therevenuefrommarketoperationsincreasedby48.92%YoY,mainlyduetotheadditionofnewshopsinthemarketinthecurrentperiod,whichcontributedtohigherrevenue.

2.Thetradeservicecostsdecreasedby37.52%YoY,mainlyduetotheYoYdecreaseininformationservicecostsoftheChinagoodsplatformandotherplatformsinthecurrentperiod.

3.Salesrevenueandcostofgoodsincreasedby36.30%and36.04%YoY,respectively,mainlyduetothesignificantYoYincreaseinsalesofgoodsinthecurrentperiod.

(2).Tableofproductionandsalesanalysis

□Applicable√Notapplicable

(3).Theperformanceofmajorpurchasecontractsandmajorsalescontracts

□Applicable√Notapplicable

(4).CostAnalysisTable

Unit:RMB10,000

ExplanationoncostanalysisandotherinformationNo

(5).Changesinconsolidationscopeduetothechangesinmainsubsidiaries'shareownershipduringthereportperiod

□Applicable√Notapplicable

(6).MajorchangesoradjustmentintheCompany'sbusiness,productsorservices

□Applicable√Notapplicable

(7).MainsalescustomersandsuppliersA.MainsalescustomersoftheCompany

□Applicable√NotapplicableCaseinwhichthesalestoasinglecustomeraccountedforover50%ofthetotalsales,newcustomerswereaddedtothelistoftop5customersortheCompanyreliedheavilyonafewcustomersduringthereportperiod

□Applicable√Notapplicable

B.MainsuppliersoftheCompany

□Applicable√NotapplicableCaseinwhichthepurchaseamountforasinglesupplieraccountedforover50%ofthetotalpurchaseamount,newsupplierswereaddedtothelistoftop5suppliersortheCompanyreliedheavilyonafewsuppliersduringthereportperiod

□Applicable√NotapplicableOthernotes:

No

3.Costs

√Applicable□Notapplicable

Unit:RMB10,000

Unit:

RMB10,000

1.Humanresourcesexpenditureincreasedyear-on-year,mainlyduetohighersalariesdrivenbyperformance-linkedadjustments.

2.Advertisingexpensesincreasedyear-on-year,mainlyduetopublicitycampaignsfortheGlobalDigitalTradeCenterandYiwuMarketProject.

3.Promotionandbusinessattractionexpensesincreasedyear-on-year,mainlyduetopromotioncampaignsforYiwuMarketProjectandtenantrecruitmenteventsfortheGlobalDigitalTradeCenter.

4.R&DInvestment

(1).TableofR&Dinvestmentstatus

√Applicable□Notapplicable

Unit:RMB10,000

(2).TableofR&Dpersonnelstatus

√Applicable□Notapplicable

(3).Reasonsforchange

□Applicable√Notapplicable

(4).ReasonsformajorchangesinthecompositionoftheR&DpersonnelandtheirinfluenceontheCompany'sfuturedevelopment

□Applicable√Notapplicable

5.Cashflow

√Applicable□Notapplicable

Unit:RMB10,000

1.ThenetcashflowgeneratedfromoperatingactivitiesincreasedbyRMB2.646billionYoY.MainlyduetoaYoYnetincreaseofRMB3.286billionincashreceivedfromthesaleofgoodsandtheprovisionofservices,andaYoYincreaseofRMB494millioninvarioustaxespaid.

2.ThenetcashflowgeneratedfrominvestmentactivitiesincreasedbyRMB2.598billionYoY.MainlyduetoaYoYdecreaseofRMB1.317billioninnetinvestmentoutflow,aYoYdecreaseofRMB1.127billionincashpaidfortheacquisitionoffixedassets,intangibleassets,andotherlong-termassets,andaYoYincreaseofRMB108millionincashreceivedfrominvestmentincome.

3.ThenetcashflowgeneratedfromfinancingactivitiesdecreasedbyRMB3.556billionYoY.MainlyduetoaYoYdecreaseinnetinflowfromfinancinginthisperiod.(ii)Materialchangestoprofitscausedbynon-mainbusinesses

□Applicable√Notapplicable(iii)Analysisofassetsandliabilities

√Applicable□Notapplicable

1.Assetsandliabilities

Unit:RMB10,000

Othernotes:

No

2.Overseasassets

√Applicable□Notapplicable

(1)ScaleofassetsAmongthem,theoverseasassetswereRMB565million,accountingfor1.44%ofthetotalassets.

(2)Explanationofthehighproportionofoffshoreassets

□Applicable√Notapplicable

3.Encumbrancesonmajorassetsasoftheendofthereportingperiod

√Applicable□Notapplicable

Unit:RMB

ThesituationofrestrictedassetscanbefoundinFinancialReportNoteVII.31.RestrictedAssetsofOwnershiporUseRightsinSectionX.

4.Otherstatements

□Applicable√Notapplicable(iv)Analysisofbusinessinformationofindustry

√Applicable□Notapplicable

Fordetails,pleasereferto"II.ThesituationoftheindustryoftheCompany"inthissection

(v)AnalysisofinvestmentsOverviewofexternalequityinvestment

√Applicable□Notapplicable

AsofDecember31,2024,thebalanceofexternalinvestmentswasRMB9.5003522billion(includingtradingfinancialassetsofRMB400.317million,long-termequityinvestmentsofRMB6.9471166billion,otherequityinstrumentinvestmentsofRMB671.0363million,andothernon-currentfinancialassetsofRMB1.4818823billion),anincreaseofRMB483.9745million,or5.37%,comparedtothebalanceofRMB9.0163777billionattheendofthepreviousyear(includingtradingfinancialassetsofRMB15.1309million,long-termequityinvestmentsofRMB7.0227795billion,otherequityinstrumentinvestmentsofRMB556.8974million,andothernon-currentfinancialassetsofRMB1.4215699billion).Themainchangesareasfollows:

I.Attheendofthereportingperiod,tradingfinancialassetsincreasedbyRMB385.1861millioncomparedtotheendofthepreviousyear,duetoanincreaseofRMB400.317millionforthepurchaseofwealthmanagementproductsandadecreaseofRMB15.1309millionforthesaleofOrientalVenturesharesduringthereportingperiod.

II.Attheendofthereportingperiod,long-termequityinvestmentdecreasedbyRMB75.6629millionfromtheendofthepreviousyear,mainlydueto:

1.ThenetinvestmentcostdecreasedbyRMB22.1909million,andtheinvestmentcapitalwasincreasedbyRMB148.0591million,mainlyduetoanincreaseofRMB125millioninBotongChuhai(Yiwu)IndustrialInvestmentFundPartnership(LimitedPartnership)andRMB17.4591millioninJEBELALIFREEZONETRADERMARKETDEVELOPMENTANDOPERATIONFZCO;adecreaseofRMB170.25million,mainlyduetoadecreaseofRMB165.25millioninYiwuHongyiEquityInvestmentFundPartnership(LimitedPartnership)andadecreaseofRMB5millioninYiwuHuishangRedbudPhaseIIInvestmentPartnership(LimitedPartnership).

2.AccrualsundertheequitymethoddecreasedbyRMB53.472millioncomparedtothebeginningoftheyear,mainlyduetotherecognitionofRMB159.7103millionininvestmentincomeandthereceiptofRMB212.9131millionincashdividendsundertheequitymethodduringthereportingperiod.III.Attheendofthereportingperiod,otherequityinstrumentinvestmentsincreasedbyRMB114.1389millionfromtheendofthepreviousyear,duetochangesinfairvalueofShenwanHongyuanGroupCo.,Ltd.duringthereportingperiod.IV.Attheendofthereportingperiod,othernon-currentfinancialassetsincreasedbyRMB60.3124millioncomparedtotheendofthepreviousyear,mainlyduetotheincreaseofRMB60millionininvestmentsinSuzhouXiangzhongVentureCapitalPartnership(LimitedPartnership)andRMB

21.7182millioninMASAIMARATECHNOLOGYLTD.,therecoveryofRMB34.198millionfrominvestmentsinSuzhouXiangzhongVentureCapitalPartnership(LimitedPartnership)andNantongRedbudHuatongEquityInvestmentPartnership(LimitedPartnership),aswellastheincomefromfairvaluechangesofRMB12.7922million.

1.Majorequityinvestments

□Applicable√Notapplicable

2.Majornon-equityinvestments

√Applicable□Notapplicable

Unit:RMB10,000

3.Financialassetsmeasuredatfairvalue

√Applicable□Notapplicable

Unit:RMB10,000

SecuritiesInvestment

√Applicable□Notapplicable

Unit:RMB10,000

Explanationofsecuritiesinvestment

□Applicable√NotapplicablePEinvestment

√Applicable□Notapplicable

Asoftheendofthereportingperiod,thebookvalueofprivateequityfundinvestmentswasRMB1.2420316billion,anincreaseofRMB19.5482millioncomparedtothatofRMB1.2224834billionattheendofthepreviousyear.ThiswasmainlyduetotheincreaseofRMB60millionininvestmentsinSuzhouXiangzhongVentureCapitalPartnership(LimitedPartnership)andtherecoveryofRMB32.998millionfrominvestmentsin

SuzhouXiangzhongVentureCapitalPartnership(LimitedPartnership)andNantongRedbudHuatongEquityInvestmentPartnership(LimitedPartnership),etc.,andgainsandlossesfromfairvaluechangesofRMB-7.4538million.Derivativesinvestment

□Applicable√Notapplicable

4.Specificprogressofmajorassetrestructuringsduringthereportperiod

□Applicable√Notapplicable(vi)Majorsalesofassetsandequity

√Applicable□Notapplicable

Duringthereportingperiod,YiwuChinaSmallCommoditiesCityBigDataCo.,Ltd.,awholly-ownedsubsidiaryoftheCompany,transferred100%ofitsequityinYiwuXingchenEnterpriseManagementCo.,Ltd.toYiwuChinaSmallCommoditiesCityHoldingCo.,Ltd.,thecontrollingshareholderoftheCompany.Asoftheendofthereportingperiod,theCompanyhascompletedtheequitytransfer,thechangeregistrationwiththeAdministrationforIndustryandCommerce,andtheequitydelivery.Formoredetails,pleaserefertotheAnnouncementontheProposedEquityTransferandRelatedPartyTransactionbyaWholly-ownedSubsidiary(L2024-020)andtheAnnouncementontheProgressoftheProposedEquityTransferbyaWholly-ownedSubsidiary(L2024-028).

(vii)Analysisofmajorsubsidiariesandassociates

√Applicable□Notapplicable

Unit:RMB10,000

Note1:ThefigurementionedhereinpertainstotheoperatingnetprofitofYiwuChinaCommoditiesCityBigDataCo.,Ltd.

(viii)StructuredentitiescontrolledbytheCompany

□Applicable√NotapplicableVI.DiscussionandAnalysisoftheCompany'sFutureDevelopment(i)Industrylandscapeandtrends

√Applicable□NotapplicableCurrently,theglobaltradelandscapeisacceleratingitstransformationtowarddigitizationandregionalization,withtherestructuringofinternationaltraderulesandenhancingsupplychainresilienceemergingasoneofthecoretopics.China'scontinuouspromotionofhigh-levelopening-uppolicieshasprovidedsignificantpolicydividendsforcross-bordertradeinnovation.Meanwhile,Chineseconsumers'demandforhigh-qualityimportedgoodsiscontinuouslygrowing,andthesupervisionmechanismforimporttradeurgentlyneedsoptimization,creatingopportunitiesforindustryparticipants.

Since2011,Yiwuhasundertakenthenationalcomprehensivereformpilotprogramfocusedoninternationaltrade.Overadecadeofreformpractices,Yiwuhaspioneeredinnovativemarketprocurementtrademodelsandpromotedthemin39marketsacross22provincesacrossChina.TheYiwu-Xinjiang-EuropeRailwayExpressandtheYiwu-Ningbo-ZhoushanOpenCorridornowconnectover1,000overseascities.Thankstothesereforms,YiwuhasrapidlydevelopedintoaTypeIImetropoliswitharesidentpopulationnearing2million,increasingitsexportscalefrom

0.1‰to20‰ofChina'stotal,whileitsexpressdeliveryvolumesurgednearly30-foldoveradecade,accountingfor1/12ofthenationalshare.TheseachievementshavelaidasolidfoundationforYiwu'sfuturedeepenedreformsandinstitutionalinnovationexploration.

OnDecember6,2024,theStateCouncilofficiallyapprovedtheOverallPlanforDeepeningComprehensiveInternationalTradeReformsinYiwuCity,ZhejiangProvince(hereinafterreferredtoasthe"OverallPlan").OnJanuary27,2025,theZhejiangProvincialDevelopmentandReformCommission,withprovincialgovernmentapproval,issuedtheImplementationPlanforDeepeningComprehensiveInternationalTradeReformsinYiwuCity,ZhejiangProvince(2025–2027).OnFebruary6,2025,theZhejiangProvincialPartyCommitteeandProvincialGovernmentheldahigh-profilemobilizationanddeploymentmeetingforinternationaltradereformsinYiwu.Subsequently,onFebruary12,2025,theYiwuMunicipalPartyCommitteeandMunicipalGovernmentconvenedacitywidecadreconferenceandpromotionmeetingfordeepeningcomprehensiveinternationaltradereforms.Thisseriesofmeetingshasgarneredwidespreadpublicattentionandpositiveresponses,unitingcadresandthepublicwithhighmoraleanddeterminationtopropelYiwutowardhigher-levelinternationalization,marketization,qualityenhancement,andmodernization.

TheOverallPlaniscomprehensiveandaction-oriented,proposingfivekeyreformareaswithatotalof97specificmeasures,includingdeepeningmarketprocurementtradereforms,acceleratingdomestic-foreigntradeintegration,improvingmoderntradelogisticssystems,enhancingfactormarketinstitutionsandregulations,andfosteringa

world-classbusinessenvironment.ThisreformnotonlyrecognizesYiwu'sachievementsintradefacilitationbutalsoentrustsitwithnewmissionstodeepenholisticreforms,exploreinstitutionalinnovations,andbuildopenplatforms,markinganewhistoricalchapterinYiwu'sreformanddevelopment.

(Figure7.Threemajorgoalsofthenewroundofinternationaltradereforms)Theonsitemarkets,Chinagoodsplatform,comprehensivebondedzones,paymentplatforms,logistics,warehousing,financialservices,andothersupportingsoftwareandhardwarefacilitiesoperatedbytheCompanyareimportantcarriersoftheYiwumarket.InaccordancewiththerequirementsoftheOverallPlan,theCompanywillfocusonpromotingthefollowingfivereformtasks:

1.Buildinganewgenerationofdigitaltrademarketcomplexanddrivingfull-chaindigitizationGoalsandMilestones:TheGlobalDigitalTradeCenter’smarketsectionwillbeputintoservicebyOctober2025;themainconstructionoftheCommercialArtificialIntelligenceInnovationCenterwillbecompletedbytheendof2025;andtheChinagoodsplatformwillbepromotedtoachievefull-linkdigitizationintransactions,logistics,andpayments.

CoreMeasures:Expandingdedicatedinternationalinternetdatachannels,upgradingthefunctionsofthedigitaltradecomprehensiveserviceplatform,attractingmorethan600foreigntradeecosystemserviceproviderstosettlein,andstrengtheningtheapplicationofartificialintelligenceinsupplychainmanagement.

2.Acceleratingbrandglobalizationandbuildinganindependentoverseasmarketingnetwork

GoalsandMilestones:In2025,morethan20overseasprojectswillbeadded,including4overseassub-markets;completingthefundraisingfortheBotongChuhaiIndustrialFund(byJune2025);andpromotingtheinclusionoftheChinaYiwuInternationalCommoditiesFairintheprovincialbusinessexhibitiondirectory.

CoreMeasures:Strengthentheinternationaldisseminationofthe"YiwuChinaSmallCommoditiesCity"brandandstandardizethebrandmanagementsystem;forma

"market+merchant"collaborativeoverseasexpansionmechanismthroughmodelssuchasoverseaswarehouses,branchmarkets,andindustrialfunds.

3.Upgradingthecross-borderpaymentsystemandexpandingtheglobalinfluenceof"YiwuPay"

GoalsandMilestones:By2025,achievingcoverageofmarketprocurementforeignexchangesettlement,withasingletransactionlimitexceedingUSD50,000.

CoreMeasures:Expandingthescopeofdirectcollectionserviceentities,optimizingtheauthenticityreviewprocess,andenhancingtheefficiencyofcross-bordercapitalflows.

4.Improvingcross-bordere-commerceregulationsandbuildingacomplianceserviceplatform

GoalsandMilestones:CompletingtheupgradingofcompliancefunctionssuchastaxmanagementanddataaccessbyNovember2025.

CoreMeasures:Establishingafull-processdigitalsupervisionplatform,integratingmodulessuchasforeignexchangecollectionandsettlementande-commerceplatformrules,andreducingenterprisecompliancecosts.

5.Innovatingimporttrademechanismsandunleashingconsumptionpotential

GoalsandMilestones:Completingtrialinclusioninthepositivelistfor19categoriesofgoodsandestablishingsupportingsystemsby2025;graduallyincludingcosmetics,healthproducts,etc.,inthepositivelistforimportswithinthreeyears.

CoreMeasures:Optimizingthe3Ccertificationprocess(suchaslocalagencycertificationandrapidfactoryinspections),buildinga"144full-processsupervisionsystem"(oneplatform,fourrestrictions,fourmechanisms),andrealizingfull-chainmanagementofimportedgoodsfromtraceabilitytoconsumptionguarantee.

Positivelistpilotfordailyconsumergoods

Currently,theimportchannelsfordailyconsumergoodsmainlyincludethefollowingthree:generaltradeimports,cross-bordere-commerceimports,andgraychannelimports,suchasoverseastravelshoppingand"personal"shoppers.Therefore,itisparticularlynecessarytoexploretheestablishmentofanimportmechanismthatcanbothpromoteimportgrowthandensuresafetysupervision.

(Figure8.Currentimportchannelsfordailyconsumergoods)PromotingtheinnovativedevelopmentofimporttradeandcarryingoutpilotprogramsarekeyelementsoftheOverallPlan.Atpresent,Yiwuisimplementingtwokeyreforms:thepositivelistmanagementofimporteddailyconsumergoodsandtheparallelimportofhouseholdappliances.Ithasestablishedalistofthefirstbatchof35pilotcommodities,exploredtheoptimizationofthepre-eventlicenseapplicationprocess,andutilizedthe"144"supervisionsystemtoachieveafull-processsupervisionimporttrademechanismduringandaftertheevent.

Underthe3Ccertificationframework,bysimplifyingandoptimizingthecertificationprocessandrequirements,thetimeandcostrequiredforcertificationhavebeeneffectivelyreduced.Inthefieldoftoys,theCompanyhasachievedlocalagencycertificationandrapidoverseasfactoryinspections.Inthefieldofhouseholdappliances,theCompanyhasinnovativelylaunchedanewcertificationmodel.Thefirstbatchofproductcertificationsforhouseholdappliancesandtoyshasbeencompleted,andalllicensesrequiredforcustomsclearanceofthethreetypesofreformcommodities,includingtoys,householdappliances,anddailygroceries,havebeendigitized.

Inordertoachievefull-processsupervision,theCompanyhasestablisheda"144"comprehensivesupervisionsystem.Oneplatformreferstotheestablishmentofafull-processdigitalsupervisionplatform.Thefourrestrictionsrefertorestrictingentities,commodities,amounts,channels,andregions.Thefourmechanismsincludeatraceabilitymanagementmechanismtoachieveoneproduct,onecode,andonecodetraceability;adualsupervisionmechanismtoachievecomprehensivelocalsupervisionandplatformdigitalsupervision;acreditmanagementmechanismtoimplementcreditmanagementforparticipatingpilotenterprises;andahigheststandardconsumerprotectionmechanism,includinga7-dayno-reasonreturnandexchangepolicy,advancecompensation,and"threeguarantees"serviceprotection.

TheCompanypromotesinnovativereformstoachieve"openingup"whileensuring"manageability",attractingmorehigh-qualityimportedconsumergoodstoenterthedomesticmarketinacompliantmanner,stimulatingconsumptionpotential,enhancingcirculationvitality,andmakingimportsmoreconvenient,contributingtotheinnovativedevelopmentofthecountry'simporttrade.

i.GlobalDigitalTradeCenter:TransitioningfromTraditionalTradetoaDigitalTradeEcosystem

1.LookingBack:TheMarket'sEvolutionThroughSixRelocations

Overthepast40years,theYiwumarkethasundergonesixrelocations,twelveexpansions,andfivegenerationsoftransformation.Itsformhasevolvedfromthefirstgeneration(streetmarket),secondgeneration(stallmarket),thirdgeneration(canopymarket),fourthgeneration(indoormarket),tothefifthgeneration(theInternationalTradeCity).

(Figure9.EvolutionoffivegenerationsofYiwuMarket)

2.TheCurrentMarket:InaStageofRapidIterationandTransformation

Withthecontinuousiterationofneweconomies,models,andbusinessformats,globalconsumerdemandisalsoconstantlyupgrading.Thesixth-generationmarket,theGlobalDigitalTradeCenter,focusesonthreemainthemes:newtrade,newmarkets,andnewlandmarks.Itcoordinatesproduction,living,andecologicalspacestoachievecomprehensiveupgradesincommercialspace,marketform,andbusinessformats.Thelayoutincludesfivefunctionalsections:markets,commercialofficebuildings,commercialdistricts,apartments,andadigitalbrain.WithChinagoodsasthecore,itpromotesthedigitaltransformationofmarkets,trade,andcontractfulfillment,attractsnewdigitaltradeentitiessuchasdesignagencies,e-commerceplatforms,andAIcompanies,andclustersnewdigitaltradeformatssuchasdigitaltrade,servicetrade,andcross-bordere-commerceexports.Itintegratesdigitaltradefulfillmentservicessuchaswarehousingandlogistics,financialpayments,andcustomsclearanceandforeignexchangesettlementstoacceleratetheupgradetodigitaltradeandformnewmomentumforthedevelopmentoftheGlobalDigitalTradeCenter.

TheGlobalDigitalTradeCenterprojectislocatedinthecoreareaofmarkettrade,eastofChunfengAvenueintheFifthDistrictoftheInternationalTradeCity,withafloorareaof374,666.6854squaremetersandaconstructionareaof1.25millionsquaremeters(includingundergroundarea).

(Figure10.DevelopmenttimelineoftheGlobalDigitalTradeCenterProject)

(1)Market:410,000m?Asafullyupgradednewmarket,theGlobalDigitalTradeCenterhaslargerstalls,morereasonableconfigurations,andabetterbusinessenvironment.Orientedtowardsconsumptionscenarios,themarketintegratesscenario-basedoperationsandconvenientcommunication,adaptstotherequirementsofmultiplesaleschannels,andprovidesfull-processtradeservices.

Basedonconsumptiontrends,theGlobalDigitalTradeCenterselectsindustrydirections.Thespecificindustrylayoutincludes:

1)Fashionjewelry,skincareandmedicalbeautyproducts,andwomen'sfashion

apparelandaccessoriesindustries;

2)Infantandchildlivingproducts,andinfantandchildgrowthproductsindustries;

3)Travelessentials,healthandmedicalproducts,andhouseholdlivingproducts

industries;

4)Dronesandunmannedequipment,roboticsandartificialintelligence

equipment,andAR/VRequipmentindustries;

5)Fashionapparelfabricindustry.

(2)Commercialofficebuildings:310,000m?

Thecommercialofficebuildingsectionprovidesexhibition,office,andhospitalityspacesformarketoperatingenterprisesthataregrowingupwards,clustersindustrytradeservices,andcreatesamulti-formatintegratedbusinessmodel.

TheprojectfocusesontheupstreamanddownstreamofinternationaltradeandtheentiretradechaintoattractR&Danddesignagencies,digitaltrade,servicetrade,andotherentities.Throughtheinnovativecombinationmodelof"marketdownstairs+officebuildingupstairs",anew"market+officebuilding"modelisformed,breakingthroughthelimitationsoftraditionalmarketsintermsoftimeandspace,creatinga"three-dimensionalmarket",andleadingthenewtrendof"marketsmovingupstairsandindustriesmovingupstairs".

(3)Commercialdistrict:38,000m?

Thecommercialdistrictwillintegratecommercial,living,andsocialfunctions,bringingtogetherinternationalcuisine,tourismshopping,leisureandentertainment,andtrendybrandstocreateacommercial,cultural,andtourismlandmarkfeaturingcuisinefromaroundtheworldthatmeetstheneedsofbusinesssupportingfacilities.

(4)Apartments:84,000m?Theapartmentsectionwillprovidemorethan1,200apartments,alldeliveredwithfinedecoration,andhotel-styleapartmentservicestoprovidealivablelivingexperienceforenterprisetalents.Theapartmentsmainlyserveenterprisesinthepark,creatinganexclusiveresidentialcommunitywitha"beautifulenvironment,excellentservices,andawonderfullife"forglobalbusinesspeople.

(5)DigitalBrain:7,000m?TheDigitalBrainwillcarryoutdigitaloperationsfocusingon"datatrading,digitaltradescenariodisplay,andnewproductlaunches".Amongthem,thedatatradingcenterwillstrivetocooperatewithleadingdigitaltradeplatformstocreateaunifiedportalforYiwu'stradedata,formdataassets,andconductdatatrading.Thedigitaltradescenariodisplaycenterwillcreateanever-ending"digitaltradefair".Cooperatingwithleadingtechnologyplatforms,itwillcentrallydisplayAIserviceproductsandcutting-edgetechnologiescoveringkeytradelinkssuchasproductdisplay,customerattraction,andtransactionfulfillment,promotethedeepintegrationoftraditionalmarketsandforeigntradeecologicalscenarios,buildalargecommerciallanguagemodel,exploretheapplicationofartificialintelligenceinthefieldofdigitaltrade,andimprovetheefficiencyandqualityoftheentirecommercialprocess.ThenewproductlaunchcenterwillbuildanimportantlaunchsiteforChinesedailyconsumergoods.Throughdiversifiedcommunicationstrategiessuchasbrandevents,contentmarketing,IPcreation,socialmediamatrix,anddigitalmarketing,itwillattractglobalbuyerstopurchaseintheYiwumarket,helpbrandsgooverseas,andletmoreChinese-madeproductsgototheworld.

ii.AITransformingBusiness:TheCompany’sStrategicBlueprint

1.IndustryTrendInsightsandtheCompany’sStrategicPositioning

(1)GlobalAIIndustryTrends:FromTechnologicalBreakthroughstoDemocratizationRevolutionIn2024,artificialintelligencecontinuestoleadtheglobaldigitaltradetransformation,withtechnologicaldemocratizationandcommercializationclosed-loopemergingascoretrends.China'sAIindustryhasachievedbreakthroughsinthreekeyareas:

TechnologicalBreakthroughs:TakingthedomesticallydevelopedlargemodelDeepSeekR1asanexample,throughitsMixture-of-Experts(MoE)architectureandalgorithmicoptimization,inferenceefficiencyhasreached1.7timesthatofleadinginternationalmodels,whiletrainingcostshavebeenreducedto1/70ofcomparableproducts.ThismarksaparadigmshiftintheAIindustryfrom"highcomputingpowerdependence"to"low-costdemocratization."

ScenarioImplementation:ThedeepintegrationofAIwith5Gandsmartterminalshasspawnedlarge-scaleapplicationscenariossuchasintelligentcustomerservice,multilingualtranslation,andcommoditydigitization,drivingtherestructuringoftheglobaltradevaluechain.

EcosystemConstruction:AIhasevolvedfroma"tool"toa"digitallaborforce,"empoweringrealeconomiestoachieveefficiencyleapsandbecomingacorepathwayforenterprisestoreducecostsandincreaseefficiency.

(2)TheCompany’sStrategicResponse:Full-StackCapabilityBuildingandEcosystemCo-Prosperity

Basedonindustrytrends,theCompanylauncheditsfive-yearstrategicplanfor"AIEmpoweringTraditionalMarkets"in2023,focusingonthreecoreobjectives:

TechnologicalFoundation:IndependentlydevelopinganAIinfrastructureframeworkcoveringfull-stackcapabilitiesacrossmodel,inference,andapplicationlayers.ThisframeworkiscompatiblewithmainstreamlargemodelslikeDeepSeekandTongyiQianwen,integratesthird-partyintelligentagentssuchasDifyandKouzi,andconstructsanopentechnologyecosystem.

ScenarioBreakthroughs:Focusingoncorescenariosincludingintelligentcustomerservice,multilingualtranslation,andcommoditydigitizationtopromotethedeepintegrationofAItechnologywithsmallcommoditytrade.

EcosystemCo-Prosperity:CollaboratingwithindustrychainpartnerstobuildanAIempowermentsystemcoveringtechnology,applications,andhardware,formingaclosedloopofsustainablebusiness.

2.AIEmpoweringSmallCommodityTrade:InnovativeScenariosandTechnologicalImplementation

(1)IntelligentOperationsPlatformYapping:RedefiningMerchantManagementEfficiency

TheCompanyhaslaunchedtheAI-drivenintelligentoperationsplatformYapping,whichenhancesmerchantefficiencythroughthreecorecapabilities:

OpenEcosystemArchitecture:Compatiblewithmultimodaldatalakes,breakingdownbarriersbetweenstructuredandunstructureddata,andsupportingseamlessintegrationwithmainstreamlargemodelsandthird-partyintelligentagents.

VisualWorkflowEngine:Providingend-to-endcontroltoolsfromAPIschedulingtomodeldeployment,enablingtheleapfromindividualintelligencetocollectiveintelligence.Forexample,itcanrapidlydeploy"virtualemployees"forautomaticresponsesand"virtualsalesperson"forintelligentguidance,enhancingcustomeracquisition,retention,andconversionrates.

Scenario-BasedApplications:Coveringhigh-frequencyneedssuchasautomaticsocialplatformresponses,orderinquiryguidance,andcustomerdataanalysis,savingmerchants'humanresourcecosts.

(Figure11.HierarchicalarchitectureofYappingPlatform)

(2)AIBrandUpgradeServices:IntegratedDesignandMarketingSolutionsAddressingmerchants'painpointsonbrandupgrade,theCompanyprovidescustomizedAIservices:

IntelligentDesignandContentGeneration:Generatingexclusivebrandmodelimagesandmarketingrenderingsbasedonnaturallanguage,parameterizingpackagingdesignsolutions,andreducingdesigncosts.Data-DrivenDecision-Making:Generatingprecisemarketingstrategiesthroughuserbehavioranalysisandmarkettrendforecasting,helpingmerchantsincreasecustomertransactionvalues.

(3)Edge-SideAIHardware:DrivingTransformationtowards"IntelligentManufacturing"

PartneringwithcompanieslikeModelBest,theCompanyisdeployingedge-sideAIhardwaretoempowersmallcommoditymanufacturingupgrades:

TechnologicalAdvantages:Edge-sidemodelsaredeeplyadaptedtoterminalchips,withresponsespeedsupgradedtomillisecondlevels,anddatalocalizeddeploymentensuresprivacysecurity.

ScenarioImplementation:Jointlydevelopingterminalproductssuchasintelligentrobotsandsmartpets,enhancingtheinteractivestabilityandcommercialconfidentialityprotectionlevelsoftoyproducts,anddrivingthetransformationofYiwusmallcommoditiesfrom"low-pricewholesale"to"highvalue-addedintelligentmanufacturing."

3.FutureOutlook:BuildinganAI-DrivenGlobalTradeNeo-Ecosystem

TheCompanywillcontinuetodeepenitsthreestrategicdirections:

(1)TechnologicalIteration:Optimizinglargemodeltrainingefficiency,exploringlow-codedevelopmenttools,andloweringAIapplicationbarriers.

(2)ScenarioExpansion:Expandingintonewscenariossuchascross-bordertradeandsupplychainfinance,andbuildinganAI-empowered"digitaltradehub."

(3)EcosystemSynergy:Collaboratingwithchipmanufacturers,cloudserviceproviders,andverticalindustryleaderstoconstructa"technology-hardware-scenario"integratedecosystemandachieveAIdemocratizationintheglobaltradesector.

AItechnologywillnotonlybringoperationalefficiencyimprovementsandcostreductionstotraditionalforeigntradebutalsocreatenewbusinessopportunitiesformarketparticipantsanddrivebusinessmodelinnovation.AIistransformingcommerce.Wewillalwaysmaintainouracuityandsenseofcrisis,embracechange,andpursueinnovation.Webelievethatthroughthe"dual-wheeldrive"of"lowcost+commercialclosedloop,"AIwillserveasthecoredrivingforceforrestructuringtheglobaltradevaluechain,unlockinggreatermarketpotential,andopeninginnovativetracksfortheglobalbusinessecosystem.

(ii)DevelopmentstrategiesoftheCompany

√Applicable□Notapplicable

AttheFifthChina-AfricaEntrepreneursConference,GeneralSecretaryXiJinpingcalledYiwutheworld"CapitalofSmallCommodities",pointingoutthedirectionforthedevelopmentofthemarketandtheCompany.AsthebuilderandserviceproviderofYiwumarket,theCompanyshouldersthehistoricalmissionofbuildingtheworld's"CapitalofSmallCommodities"withhighqualityandhighlevel.TheCompanyputsforwardthedevelopmentstrategyof“takingthemarketasthemainbusiness,takingthedigitalasthelink,takingtheplatformasthesupport,buildinganinternationaltradecomprehensiveserviceprovider”.

Withthegoalofbuildingtheworld's"CapitalofSmallCommodities"withhighqualityandhighstandards,focusingonthemainmarketbusiness,promotingvariousresourceelementstoconcentrateinthemainbusiness,openingupalllinksofthedomesticandforeigntradesupplychainthroughvigorouslydevelopingdigitaltrade,andcontinuouslyenhancingandupgradingthecorecompetitivenesstoempowerthesmallcommodityindustrychainandecosystem,promotingthetransformationofthephysicalmarketintoaglobaltradeserviceplatformforsmall,mediumandmicroenterprises,andthetransformationoftheCompanyfromamarketmanagertoacomprehensivetradeserviceprovider.(iii)Businessplan

√Applicable□Notapplicable

In2025,theCompanywillanchoritsstrategicgoalasa"GloballyRenownedComprehensiveInternationalTradeServiceProvider,"shouldertheresponsibilityofconstructingtheWorld'sCapitalofSmallCommoditieswithhighqualityandstandards,andpromotemarketinnovationandenterprisetransformationwithintheframeworkofChina'sunifiednationalmarket.Byleveragingdigitalreformtobreakthroughphysicallimitationsof

traditionalbusinessmodels,weaimtoaccelerateourtransformationintoaglobalcommerceleaderempoweringmasstradeofsmallcommodities.

1.PromotingStrategicInfrastructureConstructionandMarketUpgradationIn2025,theCompanywillprioritizethedevelopmentoftheGlobalDigitalTradeCenter,aimingtoinaugurateitsmarketfacilitiesinOctoberwhilecompletingconnectivityandsupportingprojectsinthefivedistrictsoftheInternationalTradeCity.Thisinitiativewillcreateanew-generationmarketcomplexcenteredondigitaltrade,integratingfashion,internationalization,andlow-carbonfeatures.Simultaneously,wewillacceleratetheconstructionoftheBeltandRoadAIInnovationCenter,implementinfrastructurerenovationsanddigitalupgradesintraditionalmarkets,enhancetheexperientialtourismIPof"YiwuEnjoyableTour,"andcomprehensivelyimprovemarketcompetitiveness.

2.EnhancingElementQualityandStrengtheningCompetitiveAdvantagesFocusingonecosystemdevelopmentforglobalbuyersandmerchants,theCompanyplanstoattractover1millionoverseasbuyersannually,host30industry-specificexhibitionsand"MarketRoadshow"promotionalevents,organize200trainingsessionsformerchantscovering35,000participants,andestablish10newuniversitytrainingbases.Throughstrengtheningproductstandardizationandbrandempowerment,wewillcompletefinalassessmentsforthenationalservicestandardizationpilotprogram,introduce5newgroupstandards,launchover20,000standardizedproducts,expandtheICMALLGlobalGoodsCollectionStoresto40locations,anddeepenglobalmarketpenetration.EmphasiswillbeplacedonemergingmarketssuchastheMiddleEast,SouthAmerica,andAfrica,withplanstolaunchover25overseasprojectsincludingbranchmarkets,FBCoverseaswarehouses,andexhibitionhalls,acceleratingtheinternationalizationofthe"YiwuChinaCommoditiesCity"brand.

3.UpgradingDigitalFulfillmentandSupplyChainCapabilitiesToenhancedigitalfulfillmentandsupplychaincapabilities,theCompanywillaccelerateintelligentupgradesoftheChinagoodsplatform,applyingAIsolutionstoover30,000merchants,andfacilitateUSD6billionincross-borderpaymentsviatheYiwuPayplatform.Concurrently,theCompanywilldevelopstar-ratedwarehousingparks,optimizethe"merchantorderfulfillmentthroughcloudwarehousing"model,provideover120,000TEUofinternationallogisticsservicesannually,andpromotetheComprehensiveBondedZone’sexpansionbyattractingleadingcross-bordere-commerceandsupplychainenterprisestoprovidediversifiedtradesupportforthemarket.(iv)Potentialrisks

√Applicable□Notapplicable

1.Marketoperationrisk.Large-sizedshoppingmalls,hypermarkets,warehousestoresande-commerceplatformsarestrongcompetitorsinthecommoditiestradingmarket.Large-sizedshoppingmallsofferproductsofreliablequalityandwell-knownbrands;hypermarketsorwarehousestoressupplydiversifiedproductsatlowprices;e-commerceplatformsprovidenew

tradingmeansandfacilitateconsumers.Purchasersorconsumersmayalsochoosetomakeprocurementorconsumptionviae-commerceplatformsforconvenience.Therefore,theCompanymaycompetewithotherformsofbusiness.Inaddition,affectedbytherisingspecializedmarket,robustdevelopmentoftheindustrymarketandrapiddevelopmentofthecentralandwesternregions,theCompanymayalsofacecompetitionfromothersimilarspecializedmarkets.

2.Riskofinsufficientreservesoftalents.Asmarkettransformationacceleratesandbusinessexpands,theCompanymayfaceshortagesinexperiencedprofessionalsandinterdisciplinarytalentacrossinternationaltrade,warehousinglogistics,supplychain,overseasdevelopment,informationdata,industrialinvestment,andbusinessoperations.

3.Externaluncertainty.Internationalpoliticalconflictshavecausedincreaseduncertaintyininternationaltrade,andthedevelopmentofglobalmarkettradeismorecomplicatedandseverethanbefore;newtechnologiesareacceleratingtobreednewopportunities,andnewtrademodelsandnewformatsareconstantlyemerging.(v)Other

□Applicable√NotapplicableVII.TheCompanyfailedtodiscloseandexplainthereasonsinaccordancewiththe

standardsduetospecialreasonssuchasnon-applicablestandardsorstatesecrets

andtradesecrets.

□Applicable√Notapplicable

SectionIV.CorporateGovernance

I.Descriptionofcorporategovernance

√Applicable□NotapplicableDuringthereportingperiod,theCompanystrictlyadheredtotherequirementsofthe“CompanyLawofthePeople’sRepublicofChina,”the“SecuritiesLawofthePeople’sRepublicofChina,”the“StandardsforCorporateGovernanceofListedCompanies,”aswellasrelevantlawsandregulationsissuedbytheChinaSecuritiesRegulatoryCommissionandtheShanghaiStockExchange.Itcontinuouslyestablishedandimprovedrelevantsystems,strivingtoenhancethecorporategovernancestructure,standardizeoperations,andconductbusinessincompliancewiththelaw.ThereisnodifferencebetweentheactualstatusoftheCompany'slegalpersongovernancestructureandthenormativedocumentsrelatedtothegovernanceofthelistedcompany.(I)ShareholdersandgeneralmeetingsofshareholdersTheCompanyconvenesandholdsageneralmeetingofshareholdersinstrictaccordancewiththeRulesofProcedurefortheGeneralMeetingofShareholdersofListedCompaniestoensurethatallshareholdersoftheCompanyfullyexercisetheirrights,especiallythoseofsmallandmediumshareholders.Inpeacetime,theCompanyearnestlyreceivesvisitsandcallsfromshareholderstoensuretheshareholders’rightstoknow,participateandvoteonmajorcompanyissues,sothatshareholderscantrulyenjoyequalrights.

(II)ControllingshareholdersandthelistedcompanyThecontrollingshareholderoftheCompanyexercisedtherightsofinvestorsthroughthegeneralmeetingofshareholdersinaccordancewiththelaw,anddidnotdirectlyorindirectlyinterveneintheCompany'sdecision-makingandbusinessactivitiesbeyondthegeneralmeetingofshareholders.TheCompanyhasachievedthefiveindependencesofpersonnel,assets,finances,institutionsandbusinesses.TheCompany'sboardofdirectors,boardofsupervisorsandinternalinstitutionscanoperateindependently.ThecontrollingshareholderoftheCompanycanstrictlyabidebythepromisemadetotheCompanytoavoidhorizontalcompetition.WhentheCompanyhasconnectedtransactionswithitscontrollingshareholders,itstrictlyfollowstherelevantlawsandregulationstoensurethattheconnectedtransactionsarefair,justandequitable.

(III)DirectorsandBoardofDirectorsTheCompanyselectsdirectorsinstrictaccordancewiththeproceduresstipulatedinthe"ArticlesofAssociation",andconvenesandholdsboardmeetingsinstrictaccordancewiththe"CodeofCorporateGovernanceforListedCompanies".AlldirectorsoftheCompanycanconscientiouslyattendtheboardofdirectorsandshareholders'meetings,activelyparticipateintraining,andconscientiouslyperformtheirdutiesasdirectors.Thethreeindependentdirectorscanconscientiouslyperformthedutiesandobligationsentrustedbylaws,regulationsandtheCompany'sarticlesofassociation,expressindependentopinionsandsuggestionsonimportant

mattersoftheCompany,andeffectivelyprotectthelegitimaterightsandinterestsofshareholders.

(IV)SupervisorsandBoardofSupervisorsDuringthereportingperiod,theCompanyheldfivesupervisorymeetings,andtheconveningproceduresofeachmeetingcompliedwithrelevantlawsandregulations.Companysupervisorscanearnestlyperformtheirduties,supervisemajorcompanymatters,supervisethelegalityandcomplianceoftheCompany'sdirectorsandseniormanagersinperformingtheirduties,safeguardingthelegitimaterightsandinterestsoftheCompanyandshareholders.

(V)InformationdisclosureandinvestorrelationshipmanagementTheCompanydisclosedrelevantinformationinatrue,accurate,completeandtimelymannerinaccordancewiththe"AdministrativeMeasuresforInformationDisclosureofListedCompanies".InvestorscanlearnabouttheCompany'ssituationthroughmediapublicityandtelephoneconsultation.Inadditiontocompletingmandatoryregularreportsanddisclosureoftemporaryannouncements,theCompanyproactivelyconductscompliantandvoluntaryinformationdisclosure,allowinginvestorstohaveacontinuousunderstandingofthebusinessconditionstheycareabout,andtrulyprotectingshareholders'righttoknow.Whethertherearemajordifferencesbetweenthecorporategovernanceandtherequirementsofthelaw,administrativelawsandregulations,andrelevantregulationsoftheChinaSecuritiesRegulatoryCommission;iftherearemajordifferences,thereasonsshouldbeexplained.

□Applicable√NotapplicableII.SpecificmeasuresforensuringtheindependenceoftheCompany'scontrollingshareholderandactualcontrollerincompanyassets,personnel,finance,organization,businessandothers,andsolutionstakenaftertheyinfluencedtheindependencyoftheCompany,theprogressthereofandfollow-upworkplan

□Applicable√NotapplicableCasesinwhichtheCompany'scontrollingshareholder,actualcontrollerandotherunitscontrolledbythemconductbusinessassameasorsimilartothatoftheCompany,theinfluenceontheCompanyduetomajorchangesinhorizontalcompetitorsorhorizontalcompetition,measurestaken,progressthereofandfollow-upsolutionplan

□Applicable√NotapplicableIII.Generalmeetingofshareholders

Thepreferredshareholderswhosevotingrightshadbeenrestitutedtheconveningofanextraordinarygeneralmeetingofshareholders

□Applicable√NotapplicableStatementonshareholders’meetings

√Applicable□Notapplicable

1.Thefirstextraordinarygeneralmeetingofshareholdersin2024approvedtheproposalsonchangingregisteredcapitalandrevisingtheArticlesofAssociation,revisingtheRulesofProcedureforDirectors’Meeting,revisingtheExternalGuaranteeManagementSystem,revisingtheRulesofProcedureforShareholders'Meetings,revisingtheDecisionandImplementationSystemforRelated-partyTransactions,andformulatingtheIndependentDirectorWorkSystem.

2.The2023Shareholders'Meetingapprovedthe2023BoardofDirectorsWorkReport,2023BoardofSupervisorsWorkReport,2023AnnualReportandSummary,2023FinalAccountReport,2024FinancialBudgetReport,2023ProfitDistributionPlan,ProposalontheIssuanceofVariousDebtFinancingInstrumentsintheNext12Months,ProposalontheRedemptionofRemunerationforSomeDirectorsoftheCompanyin2022,andProposalonWholly-ownedSubsidiary’sProposedEquityTransferandRelatedTransaction.

3.The2024SecondExtraordinaryGeneralMeetingreviewedandapprovedthe"ProposalonChangingtheAccountingFirm"andthe"ProposalontheBy-electionofCompanyDirectors."

IV.Directors,supervisorsandseniormanagement(i)Changesinshareholdingandremunerationofcurrentandresigneddirectors,supervisorsandseniorexecutivesduringthereportingperiod

√Applicable□Notapplicable

Unit:10,000shares

Name

HeiscurrentlythedeanoftheAccountingDepartmentoftheSchoolofManagement,FudanUniversity,andconcurrentlyservesasanIndependentDirectoroftheCompany.

Statementonothermatters

□Applicable√Notapplicable

(ii)Appointmentsofcurrentandresigneddirectors,supervisorsandseniorexecutivesduringthereportingperiod

1.Positionsheldinshareholderunits

√Applicable□Notapplicable

2.Positionsheldinotherunits

√Applicable□Notapplicable

(iii)Remunerationofdirectors,supervisorsandseniormanagementpersonnel

√Applicable□Notapplicable

(iv)Changesindirectors,supervisorsandseniorofficersoftheCompany

√Applicable□Notapplicable

(v)Explanationofpunishmentsbysecuritiesregulatoryagenciesinthepastthreeyears

□Applicable√Notapplicable(vi)Other

□Applicable√NotapplicableV.DescriptionofthemeetingsoftheBoardofDirectorsheldduringthereportingperiod

VI.Dutiesperformedbydirectors(i)BoardofDirectorsandShareholdersMeetingsattendedbyDirectors

Explanationofnotattendingtheboardmeetinginpersonfortwoconsecutivetimes

□Applicable√Notapplicable

(ii)Objectionsraisedbydirectorsoncompany-relatedmatters

□Applicable√Notapplicable(iii)Other

□Applicable√NotapplicableVII.CommitteesundertheBoardofDirectors

√Applicable□Notapplicable(i)MembersofCommitteesundertheBoardofDirectors

(ii)7meetingswereheldbytheAuditCommitteeoftheBoardofDirectorsduringthe

reportingperiod

(iii)1meetingwasheldbytheNominationCommitteeoftheBoardofDirectorsduring

thereportingperiod

(iv)3meetingswereheldbytheRemunerationandAssessmentCommitteeoftheBoard

ofDirectorsduringthereportingperiod

ApprovedtheProposalontheSatisfactionoftheUnlockingConditionsfortheSecondUnlockingPeriodoftheReservedGrantPartofthe2020RestrictedStockIncentive

ApprovedtheProposalontheSatisfactionoftheUnlockingConditionsfortheThirdUnlockingPeriodoftheFirstGrantPartofthe2020RestrictedStockIncentivePlan

(v)Thespecificsofobjection

□Applicable√NotapplicableVIII.ExplanationoftheCompanyriskthattheboardofsupervisorsfounds

□Applicable√NotapplicableTheBoardofSupervisorshasnoobjectiontothesupervisionmattersduringthereportingperiod.IX.Employeesoftheparentcompanyandmajorsubsidiaries(i)Employees

NoNumberofemployeesintheparentcompany

(ii)Salarypolicy

√Applicable□NotapplicableI.Principlesofremunerationsystem

(1)Combinationofduties,powers,responsibilities,andbenefits;

(2)Itshallbefairinternallyandcompetitiveexternally;

(3)Distributionaccordingtowork,prioritytoefficiency,fairnessandsustainabledevelopment;

(4)Adoptionofthedistributionformof"salarydeterminedbypost,gradedeterminedbyability,andawarddeterminedbyperformance"toreasonablywidentheincomegap.

2.Basisofsalarysystem

Positionimportance,performancecontribution,ability,workattitudeandspiritofcooperation.

(1)Asfarastheoveralllevelisconcerned,theCompanydeterminestheremunerationbasedonthecurrenteconomicbenefitsandsustainabledevelopment;

(2)TheCompany'sremunerationsystemincludestwodifferenttypes.

1)Theannualsalarysystem,whichisapplicabletomanagersanddeputymanagersoftheCompany'sheadquarters,aswellasmembersofthemanagementteamofbranchesandsubsidiaries;

2)Thestructuredsalarysystem,whichisapplicabletoemployeeswhohavesignedlaborcontractsfortwoyearsandabove.Includinggrassrootsmanagementpersonnel,functionaldepartmentpersonnel,engineeringmanagementpersonnel,logisticsmanagementpersonnelandequipmentmaintenancepersonnel.

(3)Theremunerationofspeciallyhiredstaff,staffwaitingforduty,retiredstaffandtimingpieceworkstaffshallbestipulatedseparately.

(4)TheCompany'semployeeincomegenerallyincludesfourparts:jobskillwages,bonuses,benefits,andallowances.(iii)Trainingprogram

√Applicable□Notapplicable

Basedonthetrainingorganizationmethods,companyemployeetrainingcanbecategorizedinto:OJT(OntheJobTraining),in-housetraining,externaltraining,andonlinetraining.

1.On-the-JobTraining(OJT).Thetrainingofordinaryemployeesandnewemployeesbyleadersofvariousdepartments,experiencedorskilledemployeesbelongstoOJTtraining,includingtheCompany'sadministrativemanagementseriestraining,businessmanagementseriestraining,engineeringtechnologyseriestraining,andsecuritylogisticsseriestraining.

2.Enterpriseinternaltraining.AccordingtotheCompany'strainingneeds,theCompanyorganizesinternaltrainersorinvitesexternaltraininginstitutionstotailortrainingcoursesfortheCompany,allowingemployeestoreceivesystematictraining,includingcorporateculture,companyorganizationalstructureandrulesandregulations,industrystatusandprospects,andprofessionalethics,etiquette,codeofconduct,language,computerskills,etc.

3.Expatriatetraining.InaccordancewiththeneedsoftheCompany'sbusinessdevelopmentandjobskills,theCompanyorganizespersonnelinspecificpositionstogoouttoparticipateinthetrainingoftraininginstitutions,includingfinancialsecuritiesseriestraining,humanresourcemanagementtraining,andenterprisemanagementseriestraining.

4.Networktraining.ItisanonlinetrainingforemployeesthroughtheapplicationofinformationtechnologyandInternettechnology,anddifferenttrainingcontentissetfordifferentpositions,sothattrainingandlearningareindependentandpersonalized,andtheuseofresourcesismaximized.(iv)Laboroutsourcing

√Applicable□Notapplicable

X.Planforprofitdistributionorcapitalreserveintosharecapital(i)Formulation,implementationoradjustmentofcashdividendpolicy

√Applicable□Notapplicable

AccordingtotheChinaSecuritiesRegulatoryCommission'sNoticeonFurtherImplementationofCashDividendsbyListedCompanies(ZJF[2012]37)andZhejiangSecuritiesRegulatoryBureauNoticeonForwardingandFurtherImplementationofListedCompanies'CashDividends(ZZJSSZ[2012]138)Regulations,theCompanyheldthe24thmeetingofthesixthboardofdirectorsonAugust15,2012,andreviewedandapprovedtheProposalonAmendingtheArticlesofAssociation,whichrevisedtheCompany’sprofitdistributionpolicyandadjustmentdecision-makingmechanism.ThesecondextraordinarygeneralmeetingofshareholdersheldonSeptember3,2012wasdeliberatedandapproved.InordertofurtherimplementthenewrequirementsoftheChinaSecuritiesRegulatoryCommission'sGuidelinesfortheSupervisionofListedCompaniesNo.3-CashDividendDistributionofListedCompanies(November30,2013)andtheGuidelinesforCashDividendDistributionofListedCompaniesoftheShanghaiStockExchange,theforty-fourthmeetingofthesixthboardofdirectorsoftheCompanyheldonApril17,2014reviewedandapprovedtheProposalonAmendingtheProfitDistributionClausesintheArticlesofAssociationoftheCompany.TheCompanyfurtherclarifiedthebasicprinciples,distributionforms,specificpolicies,decision-makingmechanismsandproceduresoftheCompany'sprofitdistribution,whichwerereviewedandapprovedbythe2013AnnualGeneralMeetingofShareholdersheldonMay12,2014.ThenineteenthmeetingoftheseventhboardofdirectorsoftheCompanyheldonDecember25,2015reviewedandapprovedthePlanofZhejiangChinaCommoditiesCityGroupCo.,Ltd.onShareholderDividendReturnPlan.The11thMeetingofthe9thBoardofDirectorsheldbytheCompanyonJune19,2023reviewedandapprovedtheProposalonShareholderDividendReturnPlanningfortheNextThreeYears(2023-2025).

The2023AnnualGeneralMeetingofShareholdersoftheCompanyheldonMay23,2024approvedtheprofitdistributionplanfortheyear2023.Basedonthetotalsharecapitalof5,484,334,176shares,acashdividendofRMB2(includingtax)wouldbedistributedforevery

10shares,withatotaldistributionofRMB1,096,866,835.20.TheCompany'sboardofdirectorspublishedtheAnnouncementontheImplementationoftheDistributionofRightsandInterestsin2023onthewebsiteoftheShanghaiStockExchangeandtheChinaSecuritiesJournal,ShanghaiSecuritiesNewsandSecuritiesTimesonJune20,2024.TheprofitshavebeendistributedbeforeJune26,2024.TheformulationandimplementationoftheCompany'sprofitdistributionplancompliedwiththerequirementsoftheCompany'sArticlesofAssociationandtheresolutionsoftheshareholders'meeting.Thedividendstandardsandproportionswereclearandspecific,andtherelevantdecision-makingproceduresandmechanismswerecomplete.TheCompanylistenedtotheopinionsanddemandsofsmallandmedium-sizedshareholders,andprofitdistributiontookintoaccountfactorssuchastheCompany'sindustrycharacteristics,developmentstage,profitabilitylevel,andfundingneeds.ItalsotookintoaccounttherequirementsofinvestorssharingtheachievementsoftheCompany'sdevelopmentandgrowth,andachievingreasonableinvestmentreturns.(ii)Specialexplanationofcashdividendpolicy

√Applicable□Notapplicable

(iii)Duringthereportingperiod,iftheparentcompanyisprofitableandtheprofitavailablefordistributiontoshareholdersispositive,butdoesnotproposeaplanforthedistributionofcashprofits,theCompanyshalldiscloseindetailsthereason,theapplicationandusingplanoftheundistributedprofits.

□Applicable√Notapplicable(iv)Planforprofitdistributionandconversionofcapitalreservesintosharecapital

duringthereportingperiod

√Applicable□Notapplicable

Unit:RMB

(v)CashDividendDistributionintheLastThreeFiscalYears

√Applicable□Notapplicable

Unit:RMB

XI.Incentivestockoptionplans,employeestockownershipplansandotheremployee

incentivesgrantedbytheCompanyandtheimpactthereof(i)Relevantincentivemattershavebeendisclosedinthetemporaryannouncementand

thereisnoprogressorchangeinsubsequentimplementation.

√Applicable□Notapplicable

(ii)Incentivesthathavenotbeendisclosedinthetemporaryannouncementsorhad

furtherprogressIncentivestockoption

□Applicable√NotapplicableOthernotes:

□Applicable√NotapplicableEmployeestockownershipplans

□Applicable√NotapplicableOtherincentives

□Applicable√Notapplicable(iii)Equityincentivesgrantedtodirectorsandseniorexecutivesduringthereporting

period

√Applicable□Notapplicable

Unit:share

(iv)Theevaluationmechanismforseniormanagersduringthereportingperiod,aswell

astheestablishmentandimplementationofincentivemechanisms

√Applicable□Notapplicable

Intermsoftheremunerationevaluationofseniormanagementpersonnel,performanceassessmentresultswerebasedontheperformanceevaluationmethodsforenterpriseleaders,theCompany'soperatingconditions,andrelevantassessmentindicators.Theremunerationwasdeterminedbytheperformanceassessmentresults.XII.Constructionandimplementationofinternalcontrolsystemduringthereportingperiod

√Applicable□Notapplicable

Pleaserefertothe2024InternalControlEvaluationReportdisclosedbytheCompanyontheShanghaiStockExchangewebsitefordetails.Explanationofmajordeficienciesininternalcontrolduringthereportingperiod

□Applicable√NotapplicableXIII.Managementandcontrolofsubsidiariesduringthereportingperiod

√Applicable□Notapplicable

Pleaserefertothe2024InternalControlEvaluationReportdisclosedbytheCompanyontheShanghaiStockExchangewebsitefordetails.XIV.Explanationoftheinternalcontrolauditreport

√Applicable□Notapplicable

Pan-ChinaCertifiedPublicAccountantsLLPwashiredbytheCompanytoconductanauditoftheeffectivenessofinternalcontrolovertheCompany'sfinancialreportsfortheyear2024andissuedaninternalcontrolauditreportwithstandardunqualifiedopinion.ItisbelievedthattheCompanyhasmaintainedeffectiveinternalcontroloverfinancialreportinginallmaterialaspectsasofDecember31,2024,inaccordancewiththeBasicNormsforEnterpriseInternal

Controlandrelevantregulations.PleaserefertothewebsiteofShanghaiStockExchange(www.sse.com.cn)fordetailsofthe"InternalControlAuditReport".Disclosureofinternalcontrolauditreport:YesOpiniontypeofinternalcontrolauditreport:standardunqualifiedopinionXV.Self-examinationandrectificationoftheListedCompany'sgovernancespecialactionsNAXVI.Other

□Applicable√Notapplicable

SectionV.EnvironmentalandSocialResponsibilities

I.Environmentalissues

(i)DescriptionoftheenvironmentalprotectionstatusoftheCompanyanditsmain

subsidiariesthatarekeypollutantdischargingunitsannouncedbytheenvironmentalprotectionauthorities

□Applicable√Notapplicable(ii)DescriptionoftheenvironmentalprotectionstatusoftheCompanyotherthanthekeypollutantdischargingunits

□Applicable√Notapplicable(iii)Relevantinformationthatisconducivetoprotectingecology,preventingpollution,andfulfillingenvironmentalresponsibilities

□Applicable√Notapplicable(iv)Measurestakentoreducetheircarbonemissionsduringthereportingperiodand

theeffect

Specificinstructions

□Applicable√NotapplicableII.Socialresponsibility(i)Whethertodisclosesocialresponsibilityreport,sustainabledevelopmentreportorESGreportseparately

√Applicable□NotapplicableFordetails,pleaserefertothe2024AnnualESGReportdisclosedbytheCompanyontheShanghaiStockExchangewebsite(ii)Socialresponsibility

□Applicable√NotapplicableSpecificinstructions

□Applicable√NotapplicableIII.Statusofconsolidationandexpansionoftheresultsofpovertyalleviation,rural

revitalizationandotherspecificwork

□Applicable√NotapplicableSpecificinstructions

□Applicable√Notapplicable

SectionVI.SignificantMatters

I.Fulfillmentofcommitments(i)Commitmentsmadebytheactualcontroller,shareholders,affiliatesandacquirerof

theCompany,theCompanyitselfandotherrelatedpartiesduringthereportingperiodorasofthereportingperiod

□Applicable√Notapplicable(ii)IfthereisaprofitforecastfortheCompany’sassetsorprojects,andthereportingperiodisstillintheprofitforecastperiod,theCompanywillexplainwhethertheassetsorprojectshavereachedtheoriginalprofitforecastandthereason.

□已达到□未达到√Notapplicable(iii)Completionofperformancecommitmentsanditsimpactontheimpairmenttestofgoodwill

□Applicable√NotapplicableII.Non-operatingcapitaloccupationbycontrollingshareholdersandotherrelatedpartiesduringthereportingperiod

□Applicable√NotapplicableIII.Illegalguarantees

□Applicable√NotapplicableIV.TheCompany'sexplanationonthe‘non-standardopinionauditreport’ofthe

accountingfirm

□Applicable√NotapplicableV.TheCompany'sanalysisandexplanationonthereasonsandeffectsofchangesin

accountingpolicies,accountingestimatesorcorrectionsofmajoraccountingerrors(i)TheCompany'sanalysisandexplanationonthereasonsandeffectsofchangesinaccountingpoliciesandaccountingestimates

□Applicable√Notapplicable(ii)TheCompany'sanalysisandexplanationonthereasonsandeffectsofmajor

accountingerrorscorrection

□Applicable√Notapplicable(iii)Communicationwiththeformeraccountingfirm

√Applicable□Notapplicable

TheCompanyhascommunicatedinadvancewiththeformerauditor,Ernst&YoungHuaMingCertifiedPublicAccountantsLLP,regardingthechangeofaccountingfirm,andErnst&YoungHuaMingCertifiedPublicAccountantsLLPhasnoobjectiontothismatter.Thepredecessorandsuccessoraccountingfirmshaveactivelyconductedrelevantcommunicationandcoordinationworkinaccordancewiththerequirementsof"ChineseCertifiedPublicAccountantAuditingStandardNo.1153—CommunicationBetweenPredecessorandSuccessorAuditors"andotherregulations.ThischangeofaccountingfirmwillnotaffecttheCompany'sannualreportauditwork.(iv)Approvalproceduresandothernotes

□Applicable√NotapplicableVI.Engagementandterminationofengagementofaccountingfirm

Unit:RMB10,000

Name

Statementontheengagementorterminationofengagementofaccountingfirm

√Applicable□Notapplicable

AstheoriginallyappointeddomesticaccountingfirmErnst&YoungHuaMingCertifiedPublicAccountantsLLPhascontinuouslyprovidedauditservicestotheCompanyforover8years,reachingthemaximumallowableconsecutiveengagementperiodforanaccountingfirmasstipulated.In2024,theCompanywasrequiredtochangeitsaccountingfirm.TheCompanyhasnodisagreementswiththeformeraccountingfirmregardingworkarrangements,fees,opinions,etc.Fordetails,refertothe"AnnouncementontheChangeofAccountingFirm"(L2024-035)publishedbytheCompanyonAugust16,2024,ontheShanghaiStockExchangewebsite(www.sse.com.cn).

TheCompanyheldthesecondextraordinarygeneralmeetingofshareholdersin2024onSeptember2,2024,andreviewedandapprovedthe"ProposalontheChangeofAccounting

Firm,"agreeingtoappointPan-ChinaCertifiedPublicAccountantsLLPasthefinancialauditandinternalcontrolauditinstitutionfortheCompanyin2024.Fordetails,pleaserefertothe"AnnouncementofResolutionsoftheSecondExtraordinaryGeneralMeetingofShareholdersin2024"(L2024-039)publishedbytheCompanyontheShanghaiStockExchangewebsite(www.sse.com.cn)onSeptember3,2024.Statementonreplacingtheaccountingfirmduringtheaudit

□Applicable√NotapplicableExplanationofauditfeesdecreasingbymorethan20%(including20%)comparedtothepreviousyear

□Applicable√NotapplicableVII.Situationsatriskofdelisting(i)Reasonsforthedelistingriskwarning

□Applicable√Notapplicable(ii)TheCompany'sproposedresponsemeasures

□Applicable√Notapplicable(iii)Terminationoflistingandreasons

□Applicable√NotapplicableVIII.Mattersrelatingtobankruptcyandreorganization

□Applicable√NotapplicableIX.Materiallitigationsandarbitrations

√Duringtheyear,theCompanyhadmajorlitigationsorarbitrations□Duringtheyear,theCompanydidnothaveanymajorlitigationsorarbitrations(i)Litigationsandarbitrationshavebeendisclosedinthetemporaryannouncements

andhavehadnofurtherprogress

□Applicable√Notapplicable

(ii)Litigationsandarbitrationsthathavenotbeendisclosedinthetemporaryannouncementsorhavehadfurtherprogress

√Applicable□Notapplicable

Unit:RMB10,000

(iii)Otherstatements

□Applicable√NotapplicableX.Informationofthelistedcompanyanditsdirectors,supervisors,seniormanagement,controllingshareholder,andactualcontrollersuspectedofviolationsoflawsandregulations,penaltiesandrectification

□Applicable√NotapplicableXI.CreditstandingoftheCompanyanditscontrollingshareholderandactualcontroller

√Applicable□NotapplicableTherewasnooutstandingcourtjudgmentoroverduedebtofalargeamountinvolvingtheCompanyoritscontrollingshareholderoractualcontrollerduringthereportingperiod.XII.Materialrelated-partytransactions(i)Related-partytransactionsrelatingtoregularcorporateoperation

1.Mattersthathavebeendisclosedinthetemporaryannouncementsandhadnofurtherprogressorchanges

□Applicable√Notapplicable

2.Mattersthathavebeendisclosedinthetemporaryannouncementsbuthadfurtherprogressorchanges

√Applicable□Notapplicable

The10thMeetingofthe9thBoardofDirectorsoftheCompanyreviewedandapprovedtheProposalonProjectConstructionEntrustmentManagementandRelatedPartyTransactions,andagreedtosignanengineeringprojectentrustmentmanagementcontractwithShangboYungu,awholly-ownedsubsidiaryoftheCompany’scontrollingshareholder,CCCH.Fordetails,pleaserefertotheAnnouncementonProjectConstructionEntrustmentManagementandRelatedPartyTransactions(L2023-019)disclosedbytheCompanyontheShanghaiStockExchangewebsite(www.sse.com.cn)onMay12,2023.Asoftheendofthereportingperiod,theYiwuGlobalDigitalTradeCenterprojectwasunderconstruction.

3.Mattersthathavenotbeendisclosedinthetemporaryannouncements

√Applicable□Notapplicable

Unit:RMB

(ii)Relatedtransactionsintheacquisitionorsaleofassetsorequity

1.Mattersthathavebeendisclosedinthetemporaryannouncementsandhadno

furtherprogressorchanges

□Applicable√Notapplicable

2.Mattersthathavebeendisclosedinthetemporaryannouncementsbuthadfurtherprogressorchanges

√Applicable□Notapplicable

Duringthereportingperiod,theCompany'swholly-ownedsubsidiaryYiwuChinaCommoditiesCityBigDataCo.,Ltd.transferredits100%equityinterestinYiwuXingchenEnterpriseManagementCo.,Ltd.totheCompany'scontrollingshareholder,CCCH.Asoftheendofthisreportingperiod,theCompanyhascompletedtheequitytransfer,industrialandcommercialregistrationchanges,andtheequitydelivery.Fordetails,pleaserefertothe"AnnouncementontheProposedEquityTransferofaWholly-OwnedSubsidiaryandRelatedPartyTransaction"(L2024-020)andthe"ProgressAnnouncementontheProposedEquityTransferofaWholly-OwnedSubsidiary"(L2024-028).

3.Mattersthathavenotbeendisclosedinthetemporaryannouncements

□Applicable√Notapplicable

4.Ifanyagreementontheoperatingresultsisinvolved,theachievementofoperating

resultsduringthereportingperiodshallbedisclosed

□Applicable√Notapplicable(iii)Related-partytransactionsarisingfromjointexternalinvestment

1.Mattersthathavebeendisclosedinthetemporaryannouncementsandhadno

furtherprogressorchanges

□Applicable√Notapplicable

2.Mattersthathavebeendisclosedinthetemporaryannouncementsbuthadfurther

progressorchanges

□Applicable√Notapplicable

3.Mattersthathavenotbeendisclosedinthetemporaryannouncements

□Applicable√Notapplicable

(iv)Related-partycreditsanddebts

1.Mattersthathavebeendisclosedinthetemporaryannouncementsandhadno

furtherprogressorchanges

□Applicable√Notapplicable

2.Mattersthathavebeendisclosedinthetemporaryannouncementsbuthadfurtherprogressorchanges

□Applicable√Notapplicable

3.Mattersthathavenotbeendisclosedinthetemporaryannouncements

□Applicable√Notapplicable(v)FinancialbusinessbetweentheCompanyandtheassociatedfinancialcompanies,theCompany'sholdingfinancialcompanyandtherelatedparties

□Applicable√Notapplicable(vi)Other

□Applicable√NotapplicableXIII.Materialcontractsandperformancethereof(i)Trusteeship,contractingandleases

1.Hosting

□Applicable√Notapplicable

2.Contracting

□Applicable√Notapplicable

3.Renting

□Applicable√Notapplicable

(ii)Guarantees

√Applicable□Notapplicable

Unit:RMB10,000

(iii)Managementofcashassetsentrustedtoothers

1.Entrustedfinancialmanagement

(1)Thetotalityofentrustedfinancialmanagement

√Applicable□Notapplicable

Unit:RMB10,000

Otherinformation

□Applicable√Notapplicable

(2)Individualentrustedfinancialmanagement

□Applicable√NotapplicableOtherinformation

□Applicable√Notapplicable

(3)Entrustedfinancialmanagementimpairmentprovision

□Applicable√Notapplicable

2.EntrustedLoan

(1)Totalentrustedloan

□Applicable√NotapplicableOtherinformation

□Applicable√Notapplicable

(2)Individualentrustedloan

□Applicable√NotapplicableOtherinformation

□Applicable√Notapplicable

(3)Entrustedloanimpairmentprovision

□Applicable√Notapplicable

3.Otherinformation

□Applicable√Notapplicable(iv)Othermaterialcontracts

√Applicable□Notapplicable

XIV.Descriptionofprogressintheuseofraisedfunds

□Applicable√NotapplicableXV.Explanationonothermajoreventsthathaveasignificantimpactoninvestors'value

judgmentsandinvestmentdecisions

√Applicable□Notapplicable

Duringthereportingperiod,theCompanycontinuouslyexpandeditscooperationwithcommoditytradingpartnersintheindustrialchain,whilealsoexpandingitspresenceinthesupplychain,YiwuMarketProjectandbigdatafields.Theaimistosolidifythetradefoundation,assistChineseenterprisesingoingglobal,captureincrementalglobaltrade,andcontinuouslyempowertheupgradingofthesmallcommoditiesindustry.Thespecificstatusofstrategiccooperationframeworkagreementssignedduringthereportingperiodisasfollows:

SectionVII.ChangesinSharesandShareholders

I.Changesinequity(i)Exhibitionofchangesinshares

1.Exhibitionofchangesinshares

Unit:share

2.Descriptionofchangesinshares

√Applicable□NotapplicableOnJanuary15,2024,atotalof12,414,600restrictedsharesforthesecondunlockingperiodofthefirstgrantpartoftheCompany's2020RestrictedStockIncentivePlanwerereleasedforcirculation.OnOctober28,2024,dueto7incentiverecipientsinthe2020restrictedstockincentiveplannotmeetingtheCompany'sincentiveplanrequirementsregardingincentiverecipients,theCompanyrepurchasedandcanceled688,250shares

thathadbeengrantedbutnotyetreleasedfromrestrictions.OnNovember4,2024,702,900restrictedsharesfromthesecondreleaseperiodofthereservedportionofthe2020RestrictedStockIncentivePlanwereunlockedandbecametradable.

3.Theimpactofchangesinsharesonfinancialindicatorssuchasearningspershareandnetassetspershareinthemostrecentyearand

themostrecentperiod(ifany)

□Applicable√Notapplicable

4.OthermatterstheCompanydeemsitnecessarytodiscloseorrequiredbythesecuritiesregulatoryauthoritytobedisclosed

□Applicable√Notapplicable(ii)Changesinnon-tradableshares

√Applicable□Notapplicable

Unit:share

OnOctober28,2024,dueto7incentiverecipientsunderthe2020RestrictedStockIncentivePlanwhoweretransferred,resigned,orretirednotmeetingtheCompany'sincentiveplanrequirements,theboardofdirectorsdecidedtodisqualifythese7recipientsandrepurchaseandcancelall688,250restrictedsharestheyhadbeengrantedbutnotyetreleased.

II.Securitiesissuanceandlisting(i)Securitiesissuanceasofthereportingperiod

√Applicable□Notapplicable

Unit:Shares,Currency:RMB

Notesontheissuanceofsecuritiesasofthereportingperiod(forbondswithdifferentinterestratesduringtheduration,pleasespecifyseparately):

□Applicable√Notapplicable(ii)ChangesinthetotalnumberofsharesoftheCompany,theshareholderstructure,andchangesintheCompany'sassetsandliabilities

structure

√Applicable□Notapplicable

OnOctober28,2024,dueto7incentiverecipientsunderthe2020RestrictedStockIncentivePlanwhoweretransferred,resigned,orretirednotmeetingtheCompany'sincentiveplanregulations,theboardofdirectorsresolvedtodisqualifytheserecipientsandrepurchaseandcancelall688,250restrictedsharestheyhadbeengrantedbutnotyetreleasedfromrestrictions,resultinginadecreaseof688,250sharesintheCompany'stotalsharecountattheendofthereportingperiodcomparedtothebeginning.

(iii)Existinginternalemployeeshares

□Applicable√NotapplicableIII.Shareholdersandactualcontrollers(i)Totalnumberofshareholders

(ii)Shareholdingsofthetop10shareholdersandtop10holdersoftradableshares(or

shareholdersnotsubjecttotradingrestrictions)

Unit:share

Participationofshareholdersholdingmorethan5%oftheshares,toptenshareholders,andtoptenshareholderswithnon-restrictedtradablesharesinthelendingofsharesthroughrefinancing

□Applicable√NotapplicableChangesinthetoptenshareholdersandthetoptenshareholderswithnon-restrictedtradablesharescomparedtothepriorcorrespondingperiodduetolendingorreturnofsharesthroughrefinancing

□Applicable√NotapplicableNumberofsharesheldbythetop10shareholderssubjecttotradingrestrictionsandthetradingrestrictions

□Applicable√Notapplicable(iii)Strategicinvestorsorgenerallegalpersonsbecamethetop10shareholdersduetotheplacementofnewshares.

□Applicable√Notapplicable

IV.Controllingshareholderandactualcontroller(i)Controllingshareholder

1.Legalperson

√Applicable□Notapplicable

2.Naturalperson

□Applicable√Notapplicable

3.SpecialstatementthattheCompanydoesnothaveacontrollingshareholder

□Applicable√Notapplicable

4.ExplanationonChangesinControllingShareholdersDuringtheReportingPeriod

□Applicable√Notapplicable

5.BlockdiagramofthepropertyrightsandcontrolrelationshipbetweentheCompany

andthecontrollingshareholder

√Applicable□Notapplicable

(ii)Theactualcontroller

1.Leg

alperson

√Applicable

□Notapplicable

2.Naturalperson

□Applicable√Notapplicable

3.SpecialexplanationthattheCompanydoesnothaveanactualcontroller

□Applicable√Notapplicable

4.ExplanationonchangesintheCompany'scontrolduringthereportingperiod

□Applicable√Notapplicable

5.BlockdiagramofthepropertyrightsandcontrolrelationshipbetweentheCompany

andtheactualcontroller

√Applicable□Notapplicable

6.TheactualcontrollercontrolstheCompanythroughtrustorotherasset

managementmethods.

□Applicable√Notapplicable(iii)Otherintroductionsofcontrollingshareholdersandactualcontrollers

□Applicable√Notapplicable

V.ThecontrollingshareholderorthelargestshareholderoftheCompanyanditspersonsactinginconcerthaveaccumulativelypledgedsharesthataccountformorethan80%oftheCompany'ssharesheldbythem

□Applicable√NotapplicableVI.Othercorporateshareholdersholdingmorethan10%oftheshares

□Applicable√NotapplicableVII.Descriptionofsharerestrictionreduction

□Applicable√NotapplicableVIII.Thespecificsofimplementationofsharerepurchaseduringthereportingperiod

□Applicable√Notapplicable

SectionVIII.PreferredShares

□Applicable√Notapplicable

SectionIX.Bonds

I.Corporatebonds(includingenterprisebonds)andnon-financialcorporatedebtfinancinginstruments

√Applicable□Notapplicable(i)Corporatebonds(includingenterprisebonds)

√Applicable□Notapplicable

1.Basicinformationoncorporatebonds

Unit:RMB100millionCurrency:RMB

TheCompany'smeasurestodealwiththeriskofbondtermination

□Applicable√NotapplicableBondinterestpaymentduringthereportingperiod

√Applicable□Notapplicable

2.Triggeringandexecutionofissuerorinvestorchoiceclausesandinvestorprotectionclauses

□Applicable√Notapplicable

3.Intermediariesprovidingservicesforbondissuanceanddurationbusiness

Changestotheaboveintermediaries

□Applicable√Notapplicable

4.Adjustmentincreditratingresults

□Applicable√NotapplicableOthernotes:

√Applicable□NotapplicableShanghaiNewCenturyCreditRatingInvestmentServiceCo.,Ltd.issuedtheZhejiangChinaCommoditiesCityGroupCo.,Ltd.CreditRatingReport[XSJQP(2024)020213]onJune26,2024.Accordingtothereport,theCompany'smaincreditratingisAAA,andtheratingoutlookisstable.

5.Changes,variations,andexecutionofguarantees,debtrepaymentplans,andotherdebtprotectionmeasuresduringthereportingperiodandtheirimpacts

□Applicable√Notapplicable

(ii)Fundraisingthroughcorporatebonds

□TheCompany’sbondsinvolvedtheuseofraisedfundsorrectificationduringthereportingperiod.

√NoneoftheCompany’sbondsinvolvedtheuseofraisedfundsorrectificationduringthereportingperiod.(iii)Othermattersthatshouldbedisclosedforspecialbondvarieties

□Applicable√Notapplicable(iv)Importantmattersrelatedtocorporatebondsduringthereportingperiod

□Applicable√Notapplicable(v)Non-financialcorporatedebtfinancinginstrumentsintheinter-bankbondmarket

√Applicable□Notapplicable

1.Non-financialcorporatedebtfinancinginstruments

Unit:RMB100millionCurrency:RMB

TheCompany'smeasurestodealwiththeriskofbondtermination

□Applicable√NotapplicableBondsoverdue

□Applicable√NotapplicableBondinterestpaymentduringthereportingperiod

√Applicable□Notapplicable

OnOctober10,2024,theCompanypaidtheholdersof"23ZhejiangYiwuCCCSCP004"theinterestfortheperiodfromSeptember13,2023toApril10,2024ontime.

2.Triggeringandexecutionofissuerorinvestorchoiceclausesandinvestorprotectionclauses

□Applicable√Notapplicable

3.Intermediariesprovidingservicesforbondissuanceanddurationbusiness

Changestotheaboveintermediaries

□Applicable√Notapplicable

4.Useofraisedfundsattheendofthereportingperiod

√Applicable□Notapplicable

Unit:RMB100millionCurrency:RMB

Theprogressandoperationalbenefitsofraisedfundsusedforconstructionprojects

□Applicable√NotapplicableExplanationonchangingtheuseoftheabove-mentionedbondsraisedduringthereportingperiod

□Applicable√NotapplicableOthernotes:

□Applicable√Notapplicable

5.Adjustmentincreditratingresults

□Applicable√NotapplicableOthernotes:

√Applicable□NotapplicableShanghaiNewCenturyCreditRatingInvestmentServiceCo.,Ltd.issuedtheZhejiangChinaCommoditiesCityGroupCo.,Ltd.CreditRatingReport[XSJQP(2024)020213]onJune26,2024.Accordingtothereport,theCompany'smaincreditratingisAAA,andtheratingoutlookisstable.

6.Theimplementationandchangesofguarantees,debtrepaymentplansandotherdebtrepaymentprotectionmeasuresduringthe

reportingperiodandtheirimpacts

□Applicable√Notapplicable

7.Explanationonothersituationsrelevanttonon-financialcorporatedebtfinancinginstruments

□Applicable√Notapplicable

(vi)Duringthereportingperiod,theCompany'slossinthescopeofconsolidated

statementsexceeded10%ofitsnetassetsasoftheendofthepreviousyear.

□Applicable√Notapplicable(vii)Interest-bearingdebtsotherthanbondsoverdueattheendofthereporting

periodAuditor’sReport

□Applicable√Notapplicable(viii)Theimpactofviolationsoflawsandregulations,companyarticlesofassociation,informationdisclosuremanagementsystem,andprovisionsorcommitmentsinthebondprospectusontherightsandinterestsofbondinvestorsduringthereportingperiod

□Applicable√Notapplicable(ix)TheCompany'saccountingdataandfinancialindicatorsforthepast2yearsasoftheendofthereportingperiod

√Applicable□Notapplicable

Unit:RMB10,000

II.Convertiblecorporatebonds

□Applicable√Notapplicable

SectionX.FinancialReport

I.Auditor’sReport

√Applicable□Notapplicable

Auditor’sReportTianJianShenNo.[2025]999AlltheshareholdersofZhejiangChinaCommoditiesCityGroupCo.,Ltd.I.AuditopinionWeauditedthefinancialstatementsofZhejiangChinaCommoditiesCityGroupCo.,Ltd.(hereinafterreferredtoas"YiwuCCC"),includingtheconsolidatedandparentcompanybalancesheetsasofDecember31,2024,theconsolidatedandparentcompanyincomestatements,consolidatedandparentcompanycashflowstatements,consolidatedandparentcompanystatementsofchangesinequityfortheyear2024,andtherelatednotestothefinancialstatements.

WebelievethattheattachedfinancialstatementsarepreparedinaccordancewiththeprovisionsoftheEnterpriseAccountingStandardsinallmaterialrespectsandfairlyreflecttheconsolidatedandparentcompanyfinancialpositionofZhejiangChinaCommoditiesCityGroupCo.,Ltd.asofDecember31,2024,aswellastheconsolidatedandparentcompanyoperatingresultsandconsolidatedandparentcompanycashflowsfor2024.II.BasisofauditopinionWeconductedourauditinaccordancewiththeAuditingStandardsforChineseCertifiedPublicAccountants.Thesection“CPAs’ResponsibilityforAuditofFinancialStatements”intheauditreportfurtherdescribesourresponsibilitiesunderthesestandards.InaccordancewiththeCodeofProfessionalEthicsforCertifiedPublicAccountantsinChina,weareindependentofZhejiangChinaCommoditiesCityGroupCo.,Ltd.andfulfillotherresponsibilitiesregardingprofessionalethics.Webelievethattheauditevidencewehaveacquiredissufficientandeffective,providingareasonablebasisforouropinion.

III.Keyauditmatters

Keyauditmattersaremattersthatwebelievearethemostimportantmattersfortheauditofthefinancialstatementsfor2024basedonprofessionaljudgment.Theresponsetosuchmattersisbasedonthebackgroundofauditingthefinancialstatementsasawholeandforminganauditopinion.Wedonotexpressindependentopinionsonsuchmatters.

(I)ImpairmentofLong-termAssetswithFiniteUsefulLivesOtherThanGoodwill

1.Descriptionofthematter

TherelevantinformationhasbeendisclosedinNoteV.27andNoteVII.20,21,22,25,26,and28tothefinancialstatements.

AsofDecember31,2024,thebookvalueofnon-goodwilllong-livedassets(hereinaftercollectivelyreferredtoas"long-termassets")suchasfixedassets,investmentrealestate,landuserights,constructioninprogress,intangibleassetsandlong-termprepaidexpensesattributabletothemarketsandsupportinghotels,exhibitionhallsandbusinessbuildingsofZhejiangChinaCommoditiesCityGroupCo.,Ltd.wasRMB19.6586617billion,accountingfor50.19%ofthetotalconsolidatedassetsofZhejiangChinaCommoditiesCityGroupCo.,Ltd.Duetothesignificantamountoflong-termassetsofZhejiangChinaCommoditiesCityGroupCo.,Ltd.andthematerialjudgmentsinvolvedintheimpairmenttestingoftheseassetsbytheCompany'smanagement(hereinafterreferredtoas"management"),weidentifiedtheimpairmentofnon-goodwilllong-termassetswithfiniteusefullivesasakeyauditmatter.

2.AuditResponse

Forimpairmentoflong-termassetswithfiniteusefullivesexcludinggoodwill,ourauditproceduresmainlyinclude:

(1)Understandkeyinternalcontrolsrelatedtolong-termassetmanagement,evaluatethedesignofthesecontrols,determinewhethertheyareimplemented,andtesttheoperatingeffectivenessofrelevantinternalcontrols;

(2)ReviewtheassessmentdocumentsofZhejiangChinaCommoditiesCityGroupCo.,Ltd.todeterminewhetherthereareanyindicatorsofpotentialimpairmentoflong-termassetsatthebalancesheetdate,andevaluatewhethertheimpairmentassessmentmethodsareappropriate;

(3)Performanalyticalproceduresontheprofitabilityofoperatinglong-termassets,identifyanysignificantorunusualfluctuations,anddeterminewhetherthereisanyriskoflong-termassetimpairment;

(4)Reviewpost-periodoperationalconditions,includingpost-periodsalesrevenue,grossprofit,andoperatingcosts,toassesswhetherthereareunidentifiedrisksoflong-termassetimpairment

(5)Checkwhetherinformationrelatedtolong-termassetimpairmenthasbeenappropriatelypresentedinthefinancialstatements.

(II)RecognitionofRevenuefromSalesofGoods

1.Descriptionofthematter

Fordetailsofrelevantinformationdisclosure,pleaserefertoNoteV.34,NoteVII.61,NoteXVIII.6,andNoteXIX.4tothefinancialstatements.

TheoperatingrevenueofZhejiangChinaCommoditiesCityGroupCo.,Ltd.mainlycomesfromcommoditysales,shopuserightandsupportingservicesforoperation,hotelaccommodationandcateringservices,leasingbusiness,etc.,amongwhichcommoditysalesrevenueaccountsforarelativelyhighproportion.

In2024,theoperatingrevenueofZhejiangChinaCommoditiesCityGroupCo.,Ltd.amountedtoRMB15.7373839billion,ofwhichmerchandisesalesrevenuewasRMB9.2546008billion,accountingfor58.81%oftheoperatingrevenue.ZhejiangChinaCommoditiesCityGroupCo.,Ltd.recognizesrevenuewhentheCompanyhasfulfilleditsperformanceobligationsinthecontract,i.e.,whenthecustomerobtainscontrolovertherelevantcommoditiesorservices(referredtoascommodities).SincerevenueisoneofthekeyperformanceindicatorsofZhejiangChinaCommoditiesCityGroupCo.,Ltd.,theremaybeaninherentriskthatthemanagementoftheCompanymayachievespecificgoalsorexpectationsthroughinappropriaterevenuerecognition.WeidentifiedtherevenuerecognitionoftheCompany'sgoodssalesbusinessasakeyauditmatter.

2.AuditResponse

Fortherecognitionofrevenuefromsalesofgoods,ourauditproceduresmainlyinclude:

(1)Understandkeyinternalcontrolsrelatedtorevenuerecognition,evaluatethedesignofthesecontrols,determinewhethertheyareimplemented,andtesttheoperatingeffectivenessofrelevantinternalcontrols;

(2)Reviewsalescontracts,understandkeycontracttermsorconditions,andevaluatewhethertherevenuerecognitionmethodisappropriate;

(3)Performanalyticalproceduresonrevenueandgrossmarginbymonth,product,customer,etc.,toidentifyanysignificantorunusualfluctuationsanddeterminethereasons;

(4)Fordomesticsalesrevenue,selectitemstoinspectrelevantsupportingdocuments,includingsalescontracts,orders,salesinvoices,deliveryorders,shippingdocuments,customeracceptancerecords,etc.;forexportrevenue,obtainelectronicportinformationandreconcileitwithbookrecords,andselectitemstoinspectrelevantsupportingdocuments,includingorders,acceptancerecords,bankreceipts,invoices,andimport/exportdatafromtheelectronicportdatasystem

(5)Selectitemstoconfirmsalesamountsinconjunctionwithaccountsreceivableconfirmations;

(6)Selectkeycustomersforbackgroundchecksandconductvisits;

(7)Performcutoffteststoverifywhetherrevenueisrecognizedintheappropriateperiod;

(8)Obtainrecordsofsalesreturnsafterthebalancesheetdateandcheckwhethertherewerecaseswheretherevenuerecognitioncriteriawerenotmetasofthebalancesheetdate;

(9)Checkwhetherinformationrelatedtooperatingrevenuehasbeenappropriatelypresentedinthefinancialstatements.

IV.Otherinformation

Managementisresponsibleforotherinformation.Suchinformationincludestheinformationcoveredbytheannualreport,butthefinancialstatementsandtheauditreportprovidedbyusareexcluded.

Ourauditopinionreleasedinthefinancialstatementsdonotcoverotherinformationandwedonotreleaseanyformofassuranceconclusiononotherinformation.

Ourresponsibilityistoreadotherinformationinconjunctionwithourauditofthefinancialstatements.Duringtheprocess,weconsiderwhetherthereisamaterialinconsistencyorothermaterialmisstatementinthefinancialstatementswiththeknowledgeacquiredbyusduringtheauditprocess.

Basedontheworkwehaveperformed,ifwedeterminethatthereisamaterialmisstatementofotherinformation,weshouldreportthefact.Wehavenothingtoreportinthisaspect.

V.Responsibilityofmanagementandgovernanceforfinancialstatements

ThemanagementisresponsibleforpreparingfinancialstatementsinaccordancewiththeprovisionsoftheAccountingStandardsforBusinessEnterprisestoachievefairreflection,anddesigning,implementingandmaintainingnecessaryinternalcontrolstopreventthesefinancialstatementsfrommaterialmisstatementarisingfromfraudorerror.

Inpreparingthefinancialstatements,themanagementisresponsibleforassessingthegoingconcernabilityofZhejiangChinaCommoditiesCityGroupCo.,Ltd.,disclosingmattersrelatingtogoingconcern,asapplicable,andapplyingthegoingconcernassumption,unlessmanagementplanstoliquidateZhejiangChinaCommoditiesCityGroupCo.,Ltd.,terminateoperationsorhasnootherrealisticalternative.

ThegovernancelayerofZhejiangChinaCommoditiesCityGroupCo.,Ltd.(hereinafterreferredtoas"governance")isresponsibleforoverseeingtheCompany'sfinancialreportingprocess.

VI.CertifiedPublicAccountants’responsibilityforauditoffinancialstatements

Ourgoalistoobtainreasonableassuranceaboutwhetherthefinancialstatementsarefreefrommaterialmisstatementcausedbyfraudorerrorandexpressanopiniononthesefinancialstatementsbasedonouraudits.Thereasonableassuranceisaguaranteeatahighlevel,butthereisnoguaranteethatanauditperformedinaccordancewiththeauditingstandardswillalwaysidentifyexistingmaterialmisstatement.Misstatementsmaybecausedbyfraudorerror.Misstatementisgenerallyconsideredtobematerialifitisreasonablyexpectedthatthemisstatement,aloneoraggregated,mayaffectthefinancialdecisionmadebytheusersofthefinancialstatementsbasedonthefinancialstatements.

WeappliedprofessionaljudgmentandprofessionalskepticismduringconductingauditworkinaccordancewiththeAuditingStandardsforCPAwhileperformingfollowingworks:

(1)Identifyingandassessingtheriskofmaterialmisstatementoftheconsolidatedfinancialstatementsduetofraudorerror,designingandimplementingauditprocedurestoaddresstheserisks,andobtainingsufficientandappropriateauditevidenceasabasisforissuingauditopinions.Asfraudmayinvolvecollusion,forgery,willfulomission,misrepresentationoroverrideofinternalcontrol,theriskofnotdiscoveringamaterialmisstatementduetofraudishigherthantheriskofnotdiscoveringamaterialmisstatementresultingfromanerror.

(2)Understandtheinternalcontrolsrelevanttotheauditinordertodesignappropriateauditprocedures.

(3)Evaluatingtheappropriatenessoftheaccountingpolicyselectedbythemanagementlayerandtherationalityofaccountingestimatesandrelevantdisclosure.

(4)Drawingconclusionsontheappropriatenessofthecontinuousoperationhypothesisusedbythemanagementlayer.Atthesametime,basedontheauditevidenceobtained,todrawconclusionsregardingwhethertherearesignificantuncertaintiesaboutmattersorconditionsthatcouldraisesubstantialdoubtsaboutZhejiangChinaCommoditiesCityGroupCo.,Ltd.'sabilitytocontinueasagoingconcern.Ifweconcludethatthereisasignificantuncertainty,theauditingstandardsrequireustoreminduserofthestatementsoftherelevantdisclosuresinthefinancialstatementsintheauditreport.Ifthedisclosuresareinadequate,weshouldreleaseanunqualifiedopinion.Ourconclusionisbasedontheinformationavailablebythedateoftheauditreport.However,futureeventsorcircumstancesmayresultinZhejiangChinaCommoditiesCityGroupCo.,Ltd.beingunabletocontinueoperating.

(5)Evaluatingtheoverallpresentation,structureandcontent(includingdisclosures)oftheconsolidatedfinancialstatements,andevaluatingwhethertheconsolidatedfinancialstatementsfairlyreflecttherelevanttransactionsandevents.

(6)ObtainingsufficientandappropriateauditevidenceonthefinancialinformationoftheentitiesorbusinessactivitiesofZhejiangChinaCommoditiesCityGroupCo.,Ltd.inordertoexpressauditopinionsonthefinancialstatements.We

areresponsiblefordirecting,supervisingandimplementingtheGroup’sauditandassumefullresponsibilityfortheauditopinion.Wehavecommunicatedwiththegovernanceonthematterssuchasthescopeandtimingofauditandmajorauditfindings,includingthenotabledefectsofinternalcontrolidentifiedinouraudit.

Wealsoprovidedastatementtothegovernancethatwehadcompliedwiththeprofessionalethicsrequirementsrelatedtoindependence,andcommunicatedwiththegovernanceallrelationshipsandothermattersthatmaybereasonablybelievedtoaffectourindependence,andrelatedpreventivemeasures(ifapplicable).Inthematterscommunicatedwiththegovernance,wedeterminedwhichmattersshouldbethemostimportanttotheauditofthefinancialstatementsofthecurrentperiod,andshouldconstitutethekeyauditmattersaccordingly.Wedescribedsuchmattersintheauditreport,unlesslawsandregulationshadprohibitedpublicdisclosureofthesematters,orinrarecases,wedeterminedthatsuchmattersshouldnotbecommunicatedintheauditreportifthenegativeconsequencesofcommunicatingamatterintheauditreportarereasonablyexpectedtooutweighthepublicinterests.

Pan-ChinaCertifiedPublicAccountantsLLPChineseCPA:

(ProjectPartner)Hangzhou,ChinaChineseCPA:

ChineseCPA:

March25,2025

II.Financialstatements

ConsolidatedBalanceSheetDecember31,2024Preparedby:ZhejiangChinaCommoditiesCityGroupCo.,Ltd.

Unit:RMB

HeadoftheCompany:WANGDong,Principalinchargeofaccounting:BAOHua,Headoftheaccountingdepartment:ZHAODifang

BalanceSheetofParentCompany

December31,2024Preparedby:ZhejiangChinaCommoditiesCityGroupCo.,Ltd.

Unit:RMB

HeadoftheCompany:WANGDong,Principalinchargeofaccounting:BAOHua,Headoftheaccountingdepartment:ZHAODifang

ConsolidatedIncomeStatement

JanuarytoDecember2024

Unit:RMB

Inthisperiod,ifabusinesscombinationundercommoncontroloccurs,thenetprofitrealizedbythetransferredpartybeforethecombinationwas0,andthenetprofitrealizedbythetransferredpartyinthepreviousperiodwas0.HeadoftheCompany:WANGDong,Principalinchargeofaccounting:BAOHua,Headoftheaccountingdepartment:ZHAODifang

IncomeStatementofParentCompany

JanuarytoDecember2024

Unit:RMB

HeadoftheCompany:WANGDong,Principalinchargeofaccounting:BAOHua,Headoftheaccountingdepartment:ZHAODifang

ConsolidatedCashFlowStatement

JanuarytoDecember2024

Unit:RMB

HeadoftheCompany:WANGDong,Principalinchargeofaccounting:BAOHua,Headoftheaccountingdepartment:ZHAODifang

CashFlowStatementofParentCompany

JanuarytoDecember2024

Unit:RMB

HeadoftheCompany:WANGDong,Principalinchargeofaccounting:BAOHua,Headoftheaccountingdepartment:ZHAODifang

StatementofChangesinConsolidatedOwners’Equity

JanuarytoDecember2024

Unit:RMB

HeadoftheCompany:WANGDong,Principalinchargeofaccounting:BAOHua,Headoftheaccountingdepartment:ZHAODifang

StatementofChangesinOwners’EquityofParentCompany

JanuarytoDecember2024

Unit:RMB

Item

HeadoftheCompany:WANGDong,Principalinchargeofaccounting:BAOHua,Headoftheaccountingdepartment:ZHAODifang

III.BasicinformationoftheCompany

1.Companyprofile

√Applicable□NotapplicableZhejiangChinaCommoditiesCityGroupCo.,Ltd.(hereinafterreferredtoasthe"Company")wasapprovedbyDocumentZG[1993]No.59oftheZhejiangProvincialShareholdingSystemPilotWorkCoordinationGroupandregisteredwiththeYiwuIndustrialandCommercialAdministrationofZhejiangProvinceonDecember28,1993,obtainingthe"BusinessLicenseofLegalEntity"withregistrationnumber14766708-8.TheoriginalregisterednamewasZhejiangYiwuChinaCommoditiesCityCo.,Ltd.OnSeptember26,1995,theCompanywasrenamedZhejiangChinaCommoditiesCityGroupCo.,Ltd.TheCompanycurrentlyholdsabusinesslicensewiththeunifiedsocialcreditcodeof91330000147641689Y,witharegisteredcapitalofRMB5,483,645,926.00andatotalof5,483,645,926shares(parvalueofRMB1pershare).Amongthem,thereare13,413,000A-shareswithrestrictedcirculationconditionsand5,470,232,926A-shareswithunrestrictedcirculationconditions.TheCompany'sshareshavebeenlistedontheShanghaiStockExchangesinceMay9,2002.

TheCompanybelongstothemarketmanagementserviceindustry.Themainbusinessactivitiesincludeindustrialinvestmentanddevelopment,investmentmanagement,marketdevelopmentandoperation,marketsupportingservices,salesofmetalmaterials,buildingdecorationmaterials,generalmerchandise,textiles,hardware,electricalandchemicalproducts,officeequipmentandcommunicationequipment(excludingwireless),mechanicalandelectricalequipment,provisionofonlinetradingplatformsandservices,onlinetradingmarketdevelopmentandoperation,andinformationconsultingservices.Importandexportbusinessofgoodswithinthescopeofself-operatedanddomesticallysoldcommodities.Engagedinprocessingwithsuppliedmaterialsand"processingwithsuppliedmaterials,processingwithsuppliedsamples,assemblingwithsuppliedparts,andcompensationtrade"business,conductingcountertradeandentrepottrade,includingthebusinessscopeofsubordinatebranches.

Thesefinancialstatementswereapprovedforexternalreleasebythe28thmeetingofthe9thBoardofDirectorsonMarch25,2025.AccordingtotheCompany'sarticlesofassociation,thesefinancialstatementsaretobesubmittedtothegeneralmeetingofshareholdersfordeliberation.IV.Basisofpreparationoffinancialstatements

1.Basisofpreparation

ThefinancialstatementsoftheCompanywerepreparedonagoing-concernbasis.

2.Goingconcern

√Applicable□Notapplicable

TheCompanyhadnoeventsorconditionsthatcastedamajordoubtaboutthegoing-concernabilityoftheCompanywithin12monthsfromtheendofthereportingperiod.V.ImportantAccountingPoliciesandAccountingEstimatesRemindersonspecificaccountingpoliciesandaccountingestimates:

√Applicable□Notapplicable

TheCompanyhasformulatedspecificaccountingpoliciesandestimatesbasedontheactualproductionandoperationcharacteristics,mainlyreflectedinbaddebtprovisionsforaccountsreceivable,inventoryvaluationmethods,provisionforinventorydepreciation,fixedassetdepreciation,intangibleassetamortization,revenuerecognitionandmeasurement,classificationofinvestmentpropertiesandfixedassets,andtheusefullifeandresidualvalueoffixedassets.

1.StatementofcompliancewiththeAccountingStandards

ThefinancialstatementspreparedbytheCompanycomplywiththerequirementsoftheAccountingStandards,andtrulyandcompletelyreflecttheCompany’sfinancialconditions,operatingresults,changesinshareholders’equity,cashflowsandotherrelatedinformation.

2.Accountingperiod

ThefiscalyearoftheGroupstartsfromJanuary1andendsonDecember31oftheGregoriancalendar.

3.Operatingcycle

√Applicable□Notapplicable

Theoperatingcycleofourcompanyisrelativelyshort,with12monthsastheliquidityclassificationstandardforassetsandliabilities.

4.Functionalcurrency

TheCompanyusesRMBasitsaccountingstandardcurrency.

5.Methodfordeterminingimportancecriteriaandselectionbasis

√Applicable□Notapplicable

6.Accountingmethodsforbusinesscombinationundercommoncontrolandbusiness

combinationnotundercommoncontrol

√Applicable□Notapplicable

Thebusinesscombinationsaredividedintothebusinesscombinationsundercommoncontrolandbusinesscombinationsnotundercommoncontrol.

Accountingtreatmentmethodforbusinesscombinationundercommoncontrol

TheassetsandliabilitiesacquiredbytheCompanyinabusinesscombinationaremeasuredattheircarryingamountsintheconsolidatedfinancialstatementsoftheultimate

controllingpartyasofthemergerdate.TheCompanyadjustscapitalreservebasedonthedifferencebetweenthebookvalueshareoftheowners'equityofthemergedpartyintheconsolidatedfinancialstatementsoftheultimatecontrollingpartyandthebookvalueofthemergerconsiderationpaidorthetotalparvalueofsharesissued.Ifthecapitalreserveisinsufficienttooffsetthedifference,retainedearningsareadjusted.

AccountingtreatmentmethodforbusinesscombinationnotundercommoncontrolOnthepurchasedate,theCompanyrecognizesthedifferencebetweenthecostofthecombinationthatisgreaterthanthefairvalueshareoftheidentifiablenetassetsoftheacquireeobtainedinthecombinationasgoodwill;ifthecostofthecombinationislessthantheshareofthefairvalueoftheidentifiablenetassetsoftheacquireeacquiredinthecombination,First,reviewtheacquiredfairvalueoftheacquiree'sidentifiableassets,liabilitiesandcontingentliabilitiesandthemeasurementofthecombinationcost.Afterthereview,thecombinationcostisstilllessthanthefairvalueshareoftheacquiree'sidentifiablenetassetsacquiredinthecombination.,thedifferenceisincludedinthecurrentprofitandloss.

7.Judgmentcriteriaforcontrolandpreparationmethodsforconsolidatedfinancial

statements

√Applicable□Notapplicable

JudgmentcriteriaforcontrolControlreferstotheCompany’spowertotheinvestee.TheCompanyenjoysvariablereturnsbyparticipatingintheinvestee’srelatedactivities,andisabletoapplythepowertotheinvesteetoaffecttheamountofthereturns.MethodforpreparingconsolidatedfinancialstatementsTheparentcompanyincludesallsubsidiariesunderitscontrolintheconsolidationscopeoftheconsolidatedfinancialstatements.Theconsolidatedfinancialstatementsarepreparedbytheparentcompanybasedonthefinancialstatementsoftheparentanditssubsidiaries,inaccordancewithotherrelevantinformationandAccountingStandardsforBusinessEnterprisesNo.33—ConsolidatedFinancialStatements.

8.Classificationofjointarrangementsandaccountingtreatmentofjointoperations

√Applicable□NotapplicableJointarrangementsaredividedintojointoperationsandjointventures.WhentheCompanyisajointoperatorinajointoperation,itrecognizesthefollowingitemsrelatedtoitsshareofinterestsinthejointoperation:

(1)Confirmindividuallyheldassetsandjointlyheldassetsbasedonownershipshares;

(2)Recognizeindividuallyassumedliabilitiesandjointlyassumedliabilitiesbasedonownershipshare

(3)RecognizingrevenuegeneratedfromthesaleoftheCompany'sshareintheoutputofjointoperations;

(4)Recognitionofincomefromjointlycontrolledoperations'assetsalesbasedontheCompany'sownershipshare;

(5)RecognitionofindividuallyincurredexpensesandexpensesfromjointlycontrolledoperationsbasedontheCompany'sownershipshare.

9.Criteriafortheidentificationofcashandcashequivalents

Cashpresentedinthecashflowstatementreferstocashonhandanddepositsthatcanbeusedforpaymentatanytime.Cashequivalentsrefertoinvestmentsheldbyacompanywithshortmaturities,strongliquidity,easyconversiontoknownamountsofcash,andminimalriskofvaluechanges.

10.Foreigncurrencytransactionsandtranslationofforeigncurrencyfinancial

statements

√Applicable□Notapplicable

Foreigncurrencybusinesstranslation

Intheinitialrecognitionofaforeigncurrencytransaction,theforeigncurrencyamountistranslatedtoafunctionalcurrencyamountaccordingtothespotexchangerateonthedateoftransaction.Onthebalancesheetdate,foreigncurrencymonetaryitemsaretranslatedusingthespotexchangerateonthebalancesheetdate.Exchangedifferencesarisingfromchangesinexchangerates,exceptforthoserelatedtotheprincipalandinterestofforeigncurrencyloansspecificallyborrowedfortheacquisitionorconstructionofassetsthatmeetcapitalizationcriteria,arerecognizedinthecurrentperiod’sprofitorloss.Foreigncurrencynon-monetaryitemsmeasuredathistoricalcostarestilltranslatedusingthespotexchangerateonthetransactiondate,andtheirRMBamountsremainunchanged.Forforeigncurrencynon-monetaryitemsmeasuredatfairvalue,thespotexchangerateonthedateoffairvaluedeterminationisusedfortranslation,andthedifferenceisrecognizedinthecurrentperiod’sprofitorlossorothercomprehensiveincome.ForeigncurrencyfinancialstatementtranslationAssetsandliabilitiesitemsinthebalancesheetaretranslatedatthespotexchangerateonthebalancesheetdate;owners'equityitemsexceptthe"undistributedprofit"item,otheritemsaretranslatedatthespotexchangerateonthetransactiondate;Incomeandexpenseitemsshallbeconvertedatthespotexchangerateonthetransactiondate.Thetranslationdifferencesarisingfromtheaboveconversionofforeigncurrencyfinancialstatementsarerecordedinothercomprehensiveincome.

11.Financialinstruments

√Applicable□Notapplicable

ClassificationofFinancialAssetsandFinancialLiabilities

Financialassetsareclassifiedintothefollowingthreecategoriesuponinitialrecognition:(1)financialassetsmeasuredatamortizedcost;(2)financialassetsmeasuredatfairvaluethroughothercomprehensiveincome;(3)financialassetsmeasuredatfairvaluethroughprofitorloss.

Financialliabilitiesareclassifiedintothefollowingfourcategoriesuponinitialrecognition:

(1)financialliabilitiesmeasuredatfairvaluethroughprofitorloss;(2)financialliabilitiesarisingfromtransfersoffinancialassetsthatdonotqualifyforderecognitionorcontinuinginvolvementintransferredfinancialassets;(3)financialguaranteecontractsnotfallingunder(1)or(2)above,andloancommitmentsnotfallingunder(1)abovethataremadeatbelow-marketinterestrates;

(4)financialliabilitiesmeasuredatamortizedcost.

RecognitionBasis,MeasurementMethods,andDerecognitionConditionsforFinancialAssetsandFinancialLiabilities

(1)Recognitionbasisandinitialmeasurementmethodsforfinancialassetsandliabilities

TheCompanyrecognizesafinancialassetorfinancialliabilityatthetimeofbecomingapartytoafinancialinstrumentcontract.Financialassetsandfinancialliabilitiesaremeasuredatfairvalueuponinitialrecognition:inviewoffinancialassetsandfinancialliabilitiesmeasuredatfairvaluethroughprofitorloss,relatedtransactioncostsaredirectlyrecordedinthecurrentprofitorloss;inviewoffinancialassetsandfinancialliabilitiesofothercategories,relatedtransactioncostsarerecordedintheinitiallyrecognizedamount.However,iftheCompany'sinitiallyrecognizedaccountsreceivabledonotcontainsignificantfinancingcomponentsortheCompanydoesnotconsiderfinancingcomponentsincontractsnotexceedingoneyear,theyareinitiallymeasuredatthetransactionpriceasdefinedinAccountingStandardsforBusinessEnterprisesNo.14-Revenue.

(2)Subsequentmeasurementmethodsforfinancialassets

1)Financialassetsmeasuredatamortizedcost

Subsequentmeasurementiscarriedoutatamortizedcostusingtheeffectiveinterestmethod.Gainsorlossesarisingfromfinancialassetsmeasuredatamortizedcostthatarenotpartofanyhedgingrelationshiparerecognizedinprofitorlossuponderecognition,reclassification,amortizationusingtheeffectiveinterestmethod,orimpairmentrecognition.

2)Debtinstrumentinvestmentsmeasuredatfairvaluethroughothercomprehensiveincome

Subsequentmeasurementiscarriedoutatfairvalue.Interestcalculatedusingtheeffectiveinterestmethod,impairmentlossesorgains,andexchangedifferencesarerecognizedinprofit

orloss,whileothergainsorlossesarerecognizedinothercomprehensiveincome.Uponderecognition,thecumulativeprofitorlosspreviouslyrecordedinothercomprehensiveincomeistransferredoutfromothercomprehensiveincomeandrecordedinthecurrentprofitorloss.

3)Equityinstrumentinvestmentsmeasuredatfairvaluethroughothercomprehensiveincome

Subsequentmeasurementiscarriedoutatfairvalue.Dividendsreceived(excludingthoserepresentingrecoveryofinvestmentcost)arerecognizedincurrentprofitorloss,whileothergainsorlossesarerecognizedinothercomprehensiveincome.Uponderecognition,thecumulativeprofitorlosspreviouslyrecordedinothercomprehensiveincomeistransferredoutfromothercomprehensiveincomeandrecordedintheretainedincome.

4)Financialassetsmeasuredatfairvaluethroughprofitorloss

Subsequentmeasurementatfairvalueresultsingainsorlosses(includinginterestanddividendincome)beingrecognizedincurrentprofitorloss,unlessthefinancialassetispartofahedgingrelationship.

(3)Subsequentmeasurementmethodsforfinancialliabilities

1)Financialliabilitiesmeasuredatfairvaluethroughprofitorloss

Suchfinancialliabilitiesincludetradingfinancialliabilities(includingderivativeinstrumentsthatqualifyasfinancialliabilities)andthosedesignatedasmeasuredatfairvaluethroughprofitorloss.Forsuchfinancialliabilities,fairvalueisusedforsubsequentmeasurement.ChangesinthefairvalueoffinancialliabilitiesdesignatedasmeasuredatfairvaluethroughprofitorlossduetochangesintheCompany'sowncreditriskarerecognizedinothercomprehensiveincome,unlesssuchtreatmentwouldcreateorenlargeanaccountingmismatchinprofitorloss.Othergainsorlossesarisingfromsuchfinancialliabilities(includinginterestexpensesandfairvaluechangesnotduetochangesintheCompany'sowncreditrisk)arerecognizedincurrentprofitorloss,unlessthefinancialliabilityispartofahedgingrelationship.Uponderecognition,thecumulativeprofitorlosspreviouslyrecordedinothercomprehensiveincomeistransferredoutfromothercomprehensiveincomeandrecordedintheretainedincome.

(2)Financialliabilitiesarisingfromfinancialassettransfersthatdonotmeetderecognitioncriteriaorinvolvecontinuedinvolvementinthetransferredfinancialassets

MeasurementshallbeconductedinaccordancewiththerelevantprovisionsofAccountingStandardsforBusinessEnterprisesNo.23—TransferofFinancialAssets.

3)Financialguaranteecontractsnotfallingunder1)or2)above,andloancommitmentsnotfallingunder1)abovethatprovideloansatbelow-marketinterestrates.

Afterinitialrecognition,subsequentmeasurementisbasedonthehigherofthefollowingtwoamounts:①theamountoflossallowancedeterminedinaccordancewiththeimpairmentprovisionsforfinancialinstruments;②theinitialrecognitionamountminusthecumulativeamortizationdeterminedinaccordancewiththerelevantprovisionsofAccountingStandardsforBusinessEnterprisesNo.14—Revenue.

4)Financialliabilitiesmeasuredatamortizedcost

Measuredatamortizedcostusingtheeffectiveinterestmethod.Gainsorlossesarisingfromfinancialliabilitiesmeasuredatamortizedcostandnotpartofanyhedgingrelationshiparerecognizedincurrentprofitorlossuponderecognitionoramortizationusingtheeffectiveinterestmethod.

(4)Derecognitionoffinancialassetsandfinancialliabilities

1)Afinancialassetshallbederecognizedwhenoneofthefollowingconditionsismet:

①Terminationofcontractrightstocollectcashflowsofthefinancialassets;

②Thefinancialassethasbeentransferred,andthetransfermeetsthederecognitioncriteriaforfinancialassetsunderAccountingStandardforBusinessEnterprisesNo.23-TransferofFinancialAssets.

Wherethecurrentobligationsofthefinancialliabilities(orpartofthem)havebeendissolved,theCompanyderecognizesthefinancialliabilities(orthepartoffinancialliabilities).

Therecognitionbasisandmeasurementmethodforthefinancialassetstransfer

IftheCompanytransferssubstantiallyalltherisksandrewardsofownershipofthefinancialasset,itderecognizesthefinancialassetandseparatelyrecognizesanyrightsandobligationscreatedorretainedinthetransferasassetsorliabilities;ifitretainssubstantiallyalltherisksandrewardsofownership,itcontinuestorecognizethetransferredfinancialasset.Ifacompanyneithertransfersnorretainssubstantiallyalltherisksandrewardsofownershipofa

financialasset,thefollowingtreatmentsshouldbeappliedaccordingtodifferentsituations:(1)IftheCompanydoesnotretaincontroloverthefinancialasset,itshouldderecognizethefinancialassetandseparatelyrecognizetherightsandobligationsarisingfromorretainedinthetransferasassetsorliabilities.(2)IftheCompanyretainscontroloverthefinancialasset,itshouldrecognizetherelevantfinancialassettotheextentofitscontinuedinvolvementinthetransferredfinancialasset,andaccordinglyrecognizetherelevantliability.Iftheentiretransferofafinancialassetmeetsderecognitioncriteria,thedifferencebetweenthefollowingtwoamountsisrecognizedinprofitorloss:(1)thecarryingamountofthetransferredfinancialassetonthederecognitiondate;(2)thesumoftheconsiderationreceivedfortransferringthefinancialassetandthecumulativeamountoffairvaluechangesoriginallyrecognizedinothercomprehensiveincomeattributabletothederecognizedportion(forfinancialassetsmeasuredatfairvaluethroughothercomprehensiveincome,suchasdebtinstrumentinvestments).Ifaportionofafinancialassetistransferredandthetransferredportionasawholemeetsthederecognitioncriteria,thecarryingvalueofthefinancialassetbeforethetransferisallocatedbetweenthederecognizedportionandthecontinuingrecognizedportionbasedontheirrelativefairvaluesonthetransferdate,andthedifferencebetweenthefollowingtwoamountsisrecognizedincurrentprofitorloss:(1)thecarryingvalueofthederecognizedportion;(2)thesumoftheconsiderationreceivedforthederecognizedportionandthecumulativeamountoffairvaluechangesoriginallydirectlyrecognizedinothercomprehensiveincomethatcorrespondstothederecognizedportion(forfinancialassetsmeasuredatfairvaluethroughothercomprehensiveincome,suchasdebtinstrumentinvestments).DeterminationmethodforthefairvalueoffinancialassetsandfinancialliabilitiesTheCompanyusesvaluationtechniquesthatareappropriateinthecurrentcircumstancesandforwhichsufficientdataandotherinformationareavailabletodeterminethefairvalueofrelevantfinancialassetsandfinancialliabilities.TheCompanyclassifiesinputvaluesusedinvaluationtechniquesintothefollowinghierarchyandappliesthemsequentially:

(1)Thefirst-levelinputsareunadjustedquotedpricesinactivemarketsforidenticalassetsorliabilitiesthatcanbeobtainedonthemeasurementdate.

(2)Level2inputsareinputsotherthanquotedpricesincludedwithinLevel1thatareobservablefortheassetorliability,eitherdirectlyorindirectly,including:quotedpricesforsimilarassetsorliabilitiesinactivemarkets;quotedpricesforidenticalorsimilarassetsorliabilitiesinmarketsthatarenotactive;otherobservableinputssuchasinterestratesandyieldcurvesobservableatcommonlyquotedintervals;andmarket-corroboratedinputs

(3)Level3inputsareunobservableinputsfortherelevantassetorliability,includinginterestrates,stockvolatility,futurecashflowsofabandonmentobligationsassumedinbusinesscombinations,andfinancialforecastsmadeusingtheCompany'sowndatathatcannotbedirectlyobservedorverifiedbyobservablemarketdata.

Impairmentoffinancialinstruments

TheCompanyrecognizesimpairmentandestablisheslossallowancesbasedonexpectedcreditlossesfor:financialassetsmeasuredatamortizedcost,debtinstrumentinvestmentsmeasuredatfairvaluethroughothercomprehensiveincome,contractassets,leasereceivables,loancommitmentsnotclassifiedasfinancialliabilitiesmeasuredatfairvaluethroughprofitorloss,andfinancialguaranteecontractsthatarenotfinancialliabilitiesmeasuredatfairvaluethroughprofitorlossordonotmeetthederecognitioncriteriafortransferredfinancialassetsorcontinuetobeinvolvedwiththetransferredfinancialassets.

Expectedcreditlossesrefertotheweightedaveragevalueofthecreditlossesoffinancialinstrumentsweightedbytheriskofdefault.Creditlossreferstothedifferencebetweenallcontractcashflowsreceivableunderthecontractandallcashflowsexpectedtobereceived,discountedbytheCompanyattheoriginaleffectiveinterestrate,thatis,thepresentvalueofallcashshortages.Amongthem,thecredit-impairedfinancialassetspurchasedororiginatedbytheCompanyshallbediscountedatthecredit-adjustedeffectiveinterestrateofthefinancialassets.

Forpurchasedororiginatedfinancialassetsthathaveexperiencedcreditimpairment,theCompanyrecognizesonlythecumulativechangesinexpectedcreditlossesovertheentirelifesinceinitialrecognitionaslossprovisionsonthebalancesheetdate.

Forleasereceivables,receivablesarisingfromtransactionsregulatedbyAccountingStandardsforBusinessEnterprisesNo.14—Revenue,andcontractassets,theCompanyappliesthesimplifiedmeasurementmethod,measuringthelossallowanceatanamountequaltotheexpectedcreditlossesovertheentirelifetime.Forfinancialassetsnotmeasuredusingtheabovemethods,theCompanyassessesateachbalancesheetdatewhethertheircreditriskhasincreasedsignificantlysinceinitialrecognition.Ifthecreditriskhasincreasedsignificantlysinceinitialrecognition,theCompanymeasuresthelossallowanceattheamountofexpectedcreditlossesovertheentirelifetime;ifthecreditriskhasnotincreasedsignificantlysinceinitialrecognition,theCompanymeasuresthelossallowanceattheamountofexpectedcreditlossesoverthenext12monthsforthefinancialinstrument.TheCompanyusesavailablereasonableandevidence-basedforward-lookinginformationtodeterminewhetherthecreditriskoffinancialinstrumentshasbeenconfirmedsinceinitialrecognitionbycomparingtheriskofdefaultoffinancialinstrumentsonthebalancesheetdatewiththeriskofdefaultonthedateofinitialrecognition.hasincreasedsignificantly.Atthebalancesheetdate,iftheCompanydeterminesthatafinancialinstrumenthasonlylowcreditrisk,itisassumedthattheinstrument'screditriskhasnotincreasedsignificantlysinceinitialrecognition.TheCompanyassessesexpectedcreditriskandmeasuresexpectedcreditlossbasedonindividualfinancialinstrumentsorportfoliosoffinancialinstruments.Whenbasedonfinancialinstrumentportfolios,theCompanyclassifiesfinancialinstrumentsintodifferentportfoliosbasedonsharedriskcharacteristics.TheCompanyremeasuresexpectedcreditlossesateachbalancesheetdate,withincreasesorreversalsinlossallowancesrecognizedasimpairmentlossesorgainsincurrentperiodprofitorloss.Forfinancialassetsmeasuredatamortizedcost,lossallowancesreducethecarryingamountofthefinancialassetpresentedinthebalancesheet;fordebtinvestmentsmeasuredatfairvaluethroughothercomprehensiveincome,theCompanyrecognizeslossallowancesinothercomprehensiveincomewithoutreducingthecarryingamountofthefinancialasset.

Offsetoffinancialassetsandfinancialliabilities

Inaddition,financialassetsandfinancialliabilitiesarerecognizedseparatelyinthebalancesheetandarenotoffsetagainsteachother.Ifthefollowingconditionsaremetatthesametime,financialassetsandfinancialliabilitiesarelistedinthebalancesheetasthenetamountafteroffsettingeachother:(1)Thereisalegalrighttooffsettherecognizedamount,andthelegalrightiscurrentlyexecutable;(2)Nettingsettlement,orrealizingthefinancialassetandpayingoffthefinancialliabilityatthesametime.

Forfinancialassettransfersthatdonotmeetthederecognitioncriteria,theCompanydoesnotoffsetthetransferredfinancialassetsandrelatedliabilities.

12.Notesreceivable

√Applicable□NotapplicableCombinationclassificationanddeterminationbasisofcombinedprovisionforbaddebtbasedoncreditriskcharacteristics

√Applicable□Notapplicable

TheCompanyassessesimpairmentandrecognizeslossallowancesforfinancialassetsmeasuredatamortizedcostbasedonexpectedcreditlosses.

Foraccountsreceivablethatdonotcontainsignificantfinancingcomponents,theCompanymeasureslossreservesbasedontheexpectedcreditlossamountequivalenttotheentireduration.

Forthefinancialassetsnotmeasuredwiththesimplifiedmethod,theCompanyevaluatesoneachbalancesheetdatewhethertheircreditriskshaveincreasedsignificantlysincetheinitialrecognition.Ifthecreditriskofafinancialassethasnotincreasedsignificantlysincetheinitialrecognition,theassetisinthefirststageandtheCompanywillmakeprovisionforlossbasedontheamountofexpectedcreditlosswithinthecoming12monthsandcalculateinterestincomebasedonthebookbalanceandeffectiveinterestrate;ifthecreditriskhasincreasedsignificantlysincetheinitialrecognition,butcredithasnotbeenimpaired,theassetisinthe

secondstageandtheCompanywillmakeprovisionforlossequivalenttotheamountofexpectedcreditlossduringtheentiretermandcalculateinterestincomebasedonthebookbalanceandeffectiveinterestrate;ifcredithasbeenimpairedaftertheinitialrecognition,theassetisinthethirdstageandtheCompanywillmakeprovisionforlossequivalenttotheamountofexpectedcreditlossduringtheentiretermandcalculateinterestincomebasedontheamortizedcostandeffectiveinterestrate.TheGroupevaluatestheexpectedcreditlossesoffinancialinstrumentsontheindividualandgroupbases.TheCompanyconsidersthecreditriskcharacteristicsofdifferentcustomers,evaluatestheexpectedcreditlossesofaccountsreceivablebasedongroupingbyaging,anddeterminestheagingbasedontheinvoicingdate.Exceptfortheaforementionedfinancialinstrumentsthatareevaluatedforexpectedcreditlossesonagroupingbasis,theCompanyassessestheirexpectedcreditlossesonanindividualbasis.ThedisclosureregardingtheCompany'scriteriafordeterminingasignificantincreaseincreditriskandthedefinitionofcredit-impairedassetsisasfollows:

ThefactorsreflectedintheCompany'smethodofmeasuringexpectedcreditlossesoffinancialinstrumentsinclude:unbiasedprobability-weightedaverageamountdeterminedbyevaluatingaseriesofpossibleoutcomes;timevalueofmoney;nounnecessaryadditionalcostoreffortonthebalancesheetdateReasonableandevidence-basedinformationthatisreadilyavailableaboutpastevents,currentconditionsandforecastsoffutureeconomicconditions.

WhentheCompanynolongerreasonablyexpectstorecoverallorpartofthecontractualcashflowsofafinancialasset,itdirectlywritesdownthecarryingamountofthefinancialasset.Methodsforcalculatingagingbasedonthecreditriskcharacteristicscombinationconfirmedbyaging

□Applicable√NotapplicableJudgmentcriteriaforindividualprovisionforbaddebtbasedonindividualprovision

√Applicable□Notapplicable

Forreceivablesandcontractassetswithcreditrisksignificantlydifferentfromportfoliocreditrisk,theCompanycalculatesexpectedcreditlossesonanindividualbasis.

13.Accountsreceivable

√Applicable□NotapplicableCombinationclassificationanddeterminationbasisofcombinedprovisionforbaddebtbasedoncreditriskcharacteristics

√Applicable□Notapplicable

PleaserefertoNoteV-ImportantAccountingPoliciesandAccountingEstimates-12.NotesReceivable.Methodsforcalculatingagingbasedonthecreditriskcharacteristicscombinationconfirmedbyaging

□Applicable√NotapplicableRecognitioncriteriaforindividualprovisionofbaddebt

√Applicable□Notapplicable

PleaserefertoNoteV-ImportantAccountingPoliciesandAccountingEstimates-12.NotesReceivable.

14.Accountsreceivablefinancing

□Applicable√Notapplicable

15.Otherreceivables

√Applicable□Notapplicable

Combinationclassificationanddeterminationbasisofcombinedprovisionforbaddebtbasedoncreditriskcharacteristics

√Applicable□NotapplicablePleaserefertoNoteV-ImportantAccountingPoliciesandAccountingEstimates-12.NotesReceivable.Methodsforcalculatingagingbasedonthecreditriskcharacteristicscombinationconfirmedbyaging

□Applicable√NotapplicableJudgmentcriteriaforindividualprovisionforbaddebtbasedonindividualprovision

√Applicable□NotapplicablePleaserefertoNoteV-ImportantAccountingPoliciesandAccountingEstimates-12.NotesReceivable.

16.Inventory

√Applicable□NotapplicableInventorycategory,valuationmethodforissuance,inventorysystem,amortizationmethodforlow-valueconsumablesandpackagingmaterials

√Applicable□Notapplicable

ClassificationofinventoryInventoryincludesrawmaterials,work-in-progressmaterials,finishedgoods,realestatedevelopmentcostsandrealestatedevelopmentproducts.Developmentcostsrefertothepropertiesthathavenotbeencompletedandaredevelopedforthepurposeofbeingsold.Developmentproductsrefertothepropertiesthathavebeencompletedandarereadyforsale.Theactualcostsofrealestatedevelopmentcostsanddevelopmentproductsincludethelandacquisitioncost,expendituresonconstructionandinstallationworks,capitalizedinterestandotherdirectandindirectdevelopmentexpenses.Theuserightofthelandfordevelopmentpurposeatthedevelopmentofaprojectisamortizedandrecognizedasthedevelopmentcostoftheprojectbasedonthesiteareaofthedevelopmentproduct,andthedevelopmentcostwillbechangedovertodevelopmentproductafterbeingcompleted.

Ifthepublicauxiliaryfacilitiesarecompletedearlierthantherelateddevelopmentproduct,thefacilitieswillbeallocatedtoandrecognizedinthedevelopmentcostofrelateddevelopmentprojectbasedonthefloorspaceoftheprojectafterfinalaccountingofthefacilitiesuponcompletion;ifthepublicauxiliaryfacilitiesarecompletedlaterthantherelateddevelopmentproduct,theywillberecognizedinthedevelopmentcostofrelateddevelopmentprojectbasedonthepredictedcostofthepublicauxiliaryfacilities.

Valuationmethodofissuedinventory

Hotel,cateringandfreshgoodsinventoriesaresubjecttoonsiteinventory,whileotherinventoriesaresubjecttoperpetualinventory.

Inventorysystemofinventory

Theinventorysystemforinventoryistheperpetualinventorysystem.

Amortizationoflow-valueconsumablesandpackagingmaterials

(1)Low-valueconsumables

Amortizationiscarriedoutaccordingtotheone-timewrite-offmethod.

(2)Packaging

Amortizationiscarriedoutaccordingtotheone-timewrite-offmethod.Recognitioncriteriaandprovisionmethodsforprovisionforinventorydepreciation

√Applicable□Notapplicable

Onthebalancesheetdate,inventoriesaremeasuredatthelowerofcostandnetrealizablevalue,andprovisionforinventorydepreciationismadebasedonthedifferencebetweenthecostandthenetrealizablevalue.Forinventoriesdirectlyusedforsale,inthenormalproductionandoperationprocess,thenetrealizablevalueisdeterminedbytheestimatedsellingpriceoftheinventoryminustheestimatedsalesexpensesandrelatedtaxes;forinventoriesthatneed

tobeprocessed,inthenormalproductionandoperationprocess,thenetrealizablevalueisdeterminedbytheestimatedsellingpriceofthefinishedproductsproducedafterdeductingtheestimatedcoststobeincurreduponcompletion,estimatedsalesexpensesandrelevanttaxesandfees;onthebalancesheetdate,forinventoryitemswhereaportionhasacontractedpriceandtheremainingportiondoesnot,thenetrealizablevalueisdeterminedseparatelyforeachpart.Thisvalueisthencomparedwiththecorrespondingcosttoseparatelydeterminetheamountofprovisionforinventorywrite-downorthereversalthereof.

Inprinciple,provisionismadeforindividualinventoryitems;forinventorieswithlargequantitiesandlowunitprices,inventorywrite-downsareprovidedbycategory.Combinationclassificationanddeterminationbasisforcombinedprovisionforinventorydepreciation,anddeterminationbasisfornetrealizablevalueofinventoryofdifferentcategories

□Applicable√NotapplicableCalculationmethodsanddeterminationbasisforthenetrealizablevalueofeachinventoryagecombinationbasedoninventoryageconfirmation

□Applicable√Notapplicable

17.Contractassets

□Applicable√Notapplicable

18.Non-currentassetsordisposalgroupsheldforsale

□Applicable√NotapplicableRecognitioncriteriaandaccountingtreatmentmethodsfornon-currentassetsordisposalgroupsclassifiedasheldforsale

□Applicable√NotapplicableRecognitioncriteriaandreportingmethodsforterminationofoperations

□Applicable√Notapplicable

19.Long-termequityinvestment

√Applicable□Notapplicable

Determinationofjointcontrolandsignificantinfluence

Jointcontrolreferstothecontroljointlyownedoversomearrangementaccordingtotherelatedprovisions,andtherelatedactivitiesofthearrangementsmustbedecidedafteragreedbytheparticipantsharingcontrol.Amajorimpactmeansthattheinvestorhasthepowertoparticipateindecision-makingoftheinvestee’sfinanceandoperationpolicies,butcannotcontrolorjointlycontrolwithotherpartiestheformulationofthesepolicies.

Determinationofinvestmentcost

(1)Businesscombinationundercommoncontrol:IftheCompanypayscash,transfersnon-cashassetsorassumesdebts,andissuesequitysecuritiesasthecombinationconsideration,itshalltreatitsshareinthebookvalueoftheowners’equityoftheacquireelistedintheultimatecontrollingparty’sconsolidatedfinancialstatementsonthedateofthecombinationastheinitialinvestmentcostoflong-termequityinvestment.Thedifferencebetweentheinitialinvestmentcostofthelong-termequityinvestmentandthebookvalueofthecombinedconsiderationpaidorthetotalfacevalueoftheissuedsharesshallbeadjustedtothe

capitalreserve;ifthecapitalreserveisinsufficienttooffset,theretainedearningsshallbeadjusted.

TheCompanydetermineswhetherthelong-termequityinvestmentformedthroughstep-by-steptransactionstoachieveabusinesscombinationundercommoncontrolconstitutesa"packagedeal."Fortransactionsclassifiedasa"packagedeal,"eachtransactionisaccountedforasasingletransactiontoobtaincontrol.Fortransactionsnotclassifiedas"packagedeals,"theinitialinvestmentcostisdeterminedonthemergerdatebasedontheshareofthenetassetsofthemergedpartyintheconsolidatedfinancialstatementsoftheultimatecontrollingpartythatshouldbeenjoyedpost-merger.Thedifferencebetweentheinitialinvestmentcostofthelong-termequityinvestmentonthemergerdateandthesumofthecarryingvalueofthelong-termequityinvestmentbeforethemergerplusthecarryingvalueofthenewconsiderationpaidforadditionalsharesonthemergerdateisadjustedtocapitalreserve;ifthecapitalreserveisinsufficienttooffsetthedifference,retainedearningsareadjusted.

(2)Forthemergerofenterprisesnotunderthesamecontrol,thefairvalueofthemergerconsiderationpaidonthepurchasedateshallbetakenasitsinitialinvestmentcost.

Forlong-termequityinvestmentsformedthroughstep-by-steptransactionsachievingabusinesscombinationnotundercommoncontrol,theCompanyappliesseparateaccountingtreatmentsinindividualfinancialstatementsandconsolidatedfinancialstatements:

1)Inseparatefinancialstatements,theinitialinvestmentcostunderthecostmethodiscalculatedasthesumofthecarryingamountoftheoriginallyheldequityinvestmentandtheadditionalinvestmentcost.

2)Inconsolidatedfinancialstatements,determinewhetheritconstitutesa"packagedeal."Fortransactionsclassifiedasa"packagedeal,"eachtransactionisaccountedforasasingletransactiontoobtaincontrol.Fortransactionsnotqualifyingas"packagedeals,"equityinterestsintheacquireeheldpriortotheacquisitiondateareremeasuredatfairvalueontheacquisitiondate,withanydifferencebetweenfairvalueandcarryingamountrecognizedincurrentinvestmentincome.Othercomprehensiveincomerelatedtosuchequityinterestsaccountedforundertheequitymethodisreclassifiedtoprofitorlossintheperiodofacquisition.Exceptforothercomprehensiveincomearisingfromtheinvestee'sremeasurementofdefinedbenefitplannetliabilitiesornetassets.

(3)Otherthanthoseformedthroughbusinesscombinations:forthoseacquiredbycashpayment,theinitialinvestmentcostisbasedontheactualpurchasepricepaid;forthoseacquiredbyissuingequitysecurities,theinitialinvestmentcostisbasedonthefairvalueoftheequitysecuritiesissued;forthoseacquiredthroughdebtrestructuring,theinitialinvestmentcostisdeterminedinaccordancewithAccountingStandardsforBusinessEnterprisesNo.12—DebtRestructuring;forthoseacquiredthroughnon-monetaryassetexchange,theinitialinvestment

costisdeterminedinaccordancewithAccountingStandardsforBusinessEnterprisesNo.7—Non-monetaryAssetExchange.SubsequentmeasurementandrecognitionofprofitandlossLong-termequityinvestmentsincontrolledentitiesareaccountedforusingthecostmethod;investmentsinassociatesandjointventuresareaccountedforusingtheequitymethod.MethodforStep-by-StepDisposalofSubsidiaryInvestmentsThroughMultipleTransactionsUntilLossofControl

(1)Judgmentprinciplesfordeterminingwhetheritconstitutesa"packagedeal"Forthestep-by-stepdisposalofequityinvestmentsinsubsidiariesthroughmultipletransactionsuntilcontrolislost,theCompanydetermineswhetherthestep-by-steptransactionsconstitutea"packagedeal"byconsideringthetermsofthetransactionagreementsforeachstep,therespectivedisposalconsiderationsobtained,thepartiestowhomtheequityissold,thedisposalmethods,thetimingofdisposal,andotherrelevantinformation.Whentheterms,conditions,andeconomiceffectsofmultipletransactionsmeetoneormoreofthefollowingcircumstances,ittypicallyindicatesthatthetransactionsconstitutea"packagedeal":

1)Thesetransactionsareenteredintoatthesametimeortakingintoaccounttheinfluenceofeachother;

2)Onlythesetransactionsasawholecanachieveacompletecommercialresult;

3)Theoccurrenceofonetransactiondependsontheoccurrenceofatleastoneothertransaction;

4)Atransactionisuneconomicalonitsown,butitiseconomicalwhenconsideredtogetherwithothertransactions.

(2)Accountingtreatmentfortransactionsnotclassifiedas"packagedeals"

1)Individualfinancialstatements

Forthedisposedequity,thedifferencebetweenitscarryingamountandtheactualproceedsreceivedisrecognizedinprofitorloss.Fortheremainingequity,ifitstillhassignificantinfluenceovertheinvesteeorisjointlycontrolledwithotherparties,itisaccountedforusingtheequitymethod;ifcontrol,jointcontrol,orsignificantinfluenceovertheinvesteecannolongerbeexercised,itisaccountedforinaccordancewiththerelevantprovisionsof"AccountingStandardsforBusinessEnterprisesNo.22—RecognitionandMeasurementofFinancialInstruments."

2)ConsolidatedFinancialStatements

Beforelosingcontrol,thedifferencebetweenthedisposalconsiderationandtheshareofthesubsidiary'snetassetsattributabletothedisposedlong-termequityinvestment,calculatedfromtheacquisitionormergerdate,isadjustedtocapitalreserve(capitalsurplus).Ifthecapitalsurplusisinsufficient,retainedearningsarereduced.

Whenthecontroloverasubsidiaryislost,theremainingequityinterestisre-measuredatitsfairvalueonthedateoflosingcontrol.Thedifferencebetweenthesumoftheconsideration

obtainedfromthedisposalofequityandthefairvalueoftheremainingequity,andtheshareoftheformersubsidiary’snetassetscalculatedcontinuouslyfromtheacquisitiondateorcombinationdateattheoriginalshareholdingratioisincludedintheinvestmentincomeintheperiodoflossofcontrol.Atthesametime,goodwillisalsowrittendown.Othercomprehensiveincomerelatedtotheequityinvestmentoftheoriginalsubsidiaryshallbeconvertedintoinvestmentincomeforthecurrentperiodwhenthecontrolrightislost.

(3)Accountingtreatmentfor"packagedeals"

1)IndividualfinancialstatementsAccountforalltransactionsasasingletransactioninvolvingthedisposalofasubsidiaryandlossofcontrol.However,thedifferencebetweeneachdisposalconsiderationandthecarryingamountofthecorrespondinglong-termequityinvestmentbeforelossofcontrolisrecognizedinothercomprehensiveincomeinseparatefinancialstatementsandtransferredtoprofitorlossuponlossofcontrol.

2)ConsolidatedFinancialStatementsAccountforalltransactionsasasingletransactioninvolvingthedisposalofasubsidiaryandlossofcontrol.However,anydifferencebetweenthedisposalconsiderationandthedisposingparty'sproportionateshareofthesubsidiary'snetassetspriortolossofcontrolisrecognizedasothercomprehensiveincomeintheconsolidatedfinancialstatementsandsubsequentlyreclassifiedtoprofitorlossuponlossofcontrol.

20.Propertyinvestment

(1).Incostmeasurementmodel:

Depreciationoramortizationmethods

TheCompany'sinvestmentrealestateincludeslanduserightsleased,landuserightsheldandreadytobetransferredafterappreciation,leasedbuildings,etc.Investmentrealestateisinitiallymeasuredatcost,followedbycostmodel,andisdepreciatedoramortizedusingthesamemethodasfixedassetsandintangibleassets.

21.Fixedassets

(1).Recognitionrequirements

√Applicable□Notapplicable

Property,plantandequipmentrefertotangibleassetsheldforthepurposeofproducingcommodities,providinglaborservices,leasingoroperatingmanagement,andwithaservicelifeofmorethanonefiscalyear.Fixedassetsarerecognizedwhenitisprobablethateconomicbenefitswillflowinandthecostcanbereliablymeasured.

(2).Depreciationmethods

√Applicable□Notapplicable

22.Constructioninprogress

√Applicable□Notapplicable

Constructioninprogressisrecognizedwhenitsimultaneouslymeetsthecriteriathateconomicbenefitsareprobabletoflowinandcostscanbereliablymeasured.Constructioninprogressismeasuredattheactualcostsincurredbeforetheassetreachesitsintendedusablecondition.Whentheconstructioninprogressreachesthepredeterminedusablestate,itshallbetransferredtofixedassetsaccordingtotheactualcostoftheproject.Forthosethathavereachedtheexpectedusablestatebuthavenotyethandledthefinalsettlementoftheproject,theyshallbetransferredtofixedassetsattheirestimatedvalue.Afterthefinalsettlementoftheprojecthasbeenhandled,theoriginalprovisionalestimatedvaluewillbeadjustedaccordingtotheactualcost,butthedepreciationthathasbeenaccruedwillnotbeadjusted.

Themainconstructionprojectandsupportingworkshavebeensubstantiallycompleted,metthepredetermineddesignrequirements,andpassedacceptanceinspection

23.Borrowingcosts

√Applicable□Notapplicable

Principleforrecognitiononcapitalizationofborrowingcosts

IftheborrowingcostsincurredbytheCompanycanbedirectlyattributabletotheacquisitionorproductionofassetsqualifiedofcapitalization,theyshallbecapitalizedandincludedinthecostoftherelevantassets;otherborrowingcostsshallberecognizedasexpensesbasedontheamountincurredwhentheyareincurredandincludedincurrentprofitandloss.

Periodofcapitalizationofborrowingcosts

(1)Capitalizationbeginswhentheborrowingcostsmeetthefollowingconditionsatthesametime:1)Theassetexpenditurehasbeenincurred;2)Theborrowingcostshavebeenincurred;3)Thepurchase,constructionorproductionnecessarytomaketheassetreadyforuseorsaleTheeventhasalreadystarted.

(2)Ifanassetthatmeetsthecapitalizationconditionsisabnormallyinterruptedintheprocessofacquisition,constructionorproduction,andtheinterruptionlastsformorethan3consecutivemonths,thecapitalizationofborrowingcostsshallbesuspended;theborrowingcostsincurredduringtheinterruptionperiodshallberecognizedascurrentexpensesuntilTheacquisition,constructionorproductionoftheassetresumes.

(3)Whentheacquisitionorproductionofassetsqualifiedofcapitalizationreachestheintendedusableorsaleablestate,thecapitalizationofborrowingcostsshallcease.

Capitalizationrateofborrowingcostsandcapitalizedamount

Ifaspecialloanisborrowedforthepurchase,constructionorproductionofassetseligibleforcapitalization,theinterestexpenseactuallyincurredinthecurrentperiodofthespecialloan(includingtheamortizationofdiscountorpremiumdeterminedaccordingtotheeffectiveinterestratemethod),minustheunusedloanfundsTheamountofinterestincomeobtainedbydepositinginthebankortheinvestmentincomeobtainedfromtemporaryinvestmentshallbedeterminedastheamountofinterestthatshouldbecapitalized;ifgeneralborrowingsare

occupiedforthepurchase,constructionorproductionofassetseligibleforcapitalization,theaccumulatedassetexpenditureshallbeTheweightedaveragenumberofassetexpendituresexceedingspecialborrowingsismultipliedbythecapitalizationrateofoccupiedgeneralborrowingstocalculateanddeterminetheamountofinterestthatshouldbecapitalizedongeneralborrowings.

24.Biologicalassets

□Applicable√Notapplicable

25.Oilandgasassets

□Applicable√Notapplicable

26.Intangibleassets

(1).Servicelifeanditsdeterminationbasis,estimatedsituation,amortizationmethodorreviewprocedure

√Applicable□Notapplicable

Intangibleassets,includinglanduserights,softwareandsoftwarecopyright,etc.,areinitiallymeasuredatcost.Intangibleassetswithlimitedservicelifeshallbeamortizedsystematicallyandreasonablywithintheservicelifeaccordingtotheexpectedrealizationmethodoftheeconomicbenefitsrelatedtotheintangibleasset.Iftheexpectedrealizationmethodcannotbereliablydetermined,thestraight-linemethodshallbeusedforamortization.Specificprovisionsareasfollows:

(2).ThescopeofR&Dexpenditurecollectionandrelatedaccountingtreatmentmethods

√Applicable□Notapplicable

ScopeofR&DExpenditureAggregation

(1)Personnellaborcosts

PersonnellaborcostsincludesalariesandwagesoftheCompany'sR&Dpersonnel,basicpensioninsurance,basicmedicalinsurance,unemploymentinsurance,workinjuryinsurance,maternityinsurance,andhousingprovidentfund,aswellasservicefeesforexternallyhiredR&Dpersonnel.

ForR&DpersonnelservingmultipleR&Dprojectssimultaneously,laborcostsareallocatedproportionallyamongdifferentR&DprojectsbasedontheworkinghourrecordsprovidedbytheCompany'smanagementdepartment.

ForpersonneldirectlyengagedinR&DactivitiesandexternalR&Dpersonnelwhoalsoengageinnon-R&Dactivities,theCompanyallocatestheactualincurredpersonnelcostsbetweenR&Dexpensesandproduction/operatingexpensesbasedonreasonablemethodssuchastheproportionofactualworkinghoursrecordedfordifferentpositions.

(2)Directinputexpenses

DirectinputcostsrefertotheactualexpensesincurredbytheCompanyforconductingresearchanddevelopmentactivities.Includes:1)Directlyconsumedmaterials,fuel,andpowerexpenses;2)Molds,toolingdevelopment,andmanufacturingcostsforpilottestingandproducttrialproduction,purchasecostsofsamples,prototypes,andgeneraltestingequipmentthatdo

notconstitutefixedassets,andinspectionfeesfortrialproducts;3)Operation,maintenance,adjustment,inspection,testing,andrepairexpensesforinstrumentsandequipmentusedinR&Dactivities.

(3)Depreciationexpensesandlong-termprepaidexpensesDepreciationexpensereferstothedepreciationofinstruments,equipment,andbuildingsinuseforresearchanddevelopmentactivities.Forinstruments,equipment,andin-usebuildingsusedforR&Dactivitiesthatarealsousedfornon-R&Dactivities,theCompanymaintainsnecessaryrecordsoftheirusageandallocatestheactualdepreciationexpensesbetweenR&Dexpensesandproduction/operatingexpensesbasedonfactorssuchasactualworkinghoursandusagearea,usingareasonablemethod.Long-termdeferredexpensesrefertothoseincurredduringtherenovation,retrofitting,decoration,andrepairofR&Dfacilities,whichareaggregatedbasedonactualexpendituresandamortizedevenlyoverthespecifiedperiod.

(4)AmortizationexpensesofintangibleassetsAmortizationexpensesofintangibleassetsrefertotheamortizationofsoftware,intellectualproperty,andnon-patentedtechnologies(proprietarytechnologies,licenses,designandcalculationmethods,etc.)usedinresearchanddevelopmentactivities.

(5)DesignExpensesDesignexpensesrefertocostsincurredforconceptualizing,developing,andmanufacturingnewproductsandprocesses,includingdesigningprocedures,technicalspecifications,regulations,andoperationalcharacteristics,aswellasrelatedexpensesforcreativedesignactivitiesaimedatobtaininginnovative,creative,andbreakthroughproducts.

(6)EquipmentdebuggingcostsandtestingexpensesEquipmentdebuggingcostsrefertoexpensesincurredduringresearchanddevelopmentactivitiesinthetoolingpreparationprocess,includingthedevelopmentofspecialanddedicatedproductionmachines,changestoproductionandqualitycontrolprocedures,ortheformulationofnewmethodsandstandards.

Costsincurredforroutinetoolingpreparationandindustrialengineeringforlarge-scalebatchandcommercialproductionarenotincludedintheaggregationscope.

Testingexpensesincludeclinicaltrialfeesfornewdrugdevelopment,fieldtrialfeesforexplorationanddevelopmenttechnologies,andfieldtestfees,amongothers.

(7)Outsourcedresearchanddevelopmentexpenses

OutsourcedresearchanddevelopmentexpensesrefertocostsincurredbytheCompanywhencommissioningotherdomesticorforeigninstitutionsorindividualstoconductresearchanddevelopmentactivities(theresultsofwhichareownedbytheCompanyandarecloselyrelatedtoitsmainbusinessoperations).

(8)Otherexpenses

Otherexpensesrefertothosedirectlyrelatedtoresearchanddevelopmentactivitiesbeyondtheaforementionedexpenses,includingtechnicalbookandmaterialcosts,documenttranslationfees,expertconsultationfees,high-techR&Dinsurancepremiums,costsforretrieval,demonstration,evaluation,appraisal,andacceptanceofR&Dresults,aswellasfeesforintellectualpropertyapplications,registrations,andagencyservices,meetingexpenses,travelexpenses,communicationcosts,etc.

Expensesfortheresearchphaseofinternalresearchanddevelopmentprojectsshallbeincludedinthecurrentprofitandlosswhenincurred.Developmentexpenditurescanbecapitalizedonlywhenallofthefollowingconditionsaremetatthesametime,thatis,itistechnicallyfeasibletocompletetheintangibleassettomakethemusableorsaleable;thereisanintentiontocompletetheintangibleassetanduseorsellit;thewayforintangibleassetstogenerateeconomicbenefits,includingtheabilitytoprovethattherearemarketsfortheproductsgeneratedbytheintangibleassetsortheintangibleassetsthemselves.Intangibleassetsthatwillbeusedinternallycanprovetheirusefulness;therearesufficienttechnology,financialresourcesandotherresourcesupportstocompletethedevelopmentoftheintangibleassetandabilitytouseorselltheintangibleasset;theexpenditureattributabletothedevelopmentofsuchintangibleassetcanbereliablymeasured.

TheCompany'sspecificcriteriafordividingtheresearchstageexpenditureanddevelopmentstageexpenditureofinternalresearchanddevelopmentprojects:

Developmentexpenditurescanbecapitalizedonlywhenallofthefollowingconditionsaremetatthesametime,thatis,itistechnicallyfeasibletocompletetheintangibleassettomakethemusableorsaleable;thereisanintentiontocompletetheintangibleassetanduseorsellit;thewayforintangibleassetstogenerateeconomicbenefits,includingtheabilitytoprovethattherearemarketsfortheproductsgeneratedbytheintangibleassetsortheintangibleassetsthemselves.Intangibleassetsthatwillbeusedinternallycanprovetheirusefulness;therearesufficienttechnology,financialresourcesandotherresourcesupportstocompletethedevelopmentoftheintangibleassetandabilitytouseorselltheintangibleasset;theexpenditureattributabletothedevelopmentofsuchintangibleassetcanbereliablymeasured.

27.Impairmentoflong-termassets

√Applicable□Notapplicable

Forlong-termassetssuchaslong-termequityinvestments,investmentpropertiesmeasuredatcost,fixedassets,constructioninprogress,right-of-useassets,andintangibleassetswithfiniteusefullives,ifthereareindicationsofimpairmentatthebalancesheetdate,theirrecoverableamountsareestimated.Forthegoodwillformedduetothemergerofenterprisesandtheintangibleassetswithuncertainservicelife,theGroupcarriesoutimpairmenttestsatleastattheendofeachyear,regardlessoftheimpairmentsigns.Goodwillistestedforimpairmentincombinationwithitsrelatedassetgroupsorgroupsofassetgroups.

Iftherecoverableamountoftheaforementionedlong-termassetsislowerthantheircarryingvalue,thedifferenceisrecognizedasanimpairmentlossandincludedincurrentperiodprofitorloss.

28.Long-termprepaidexpenses

√Applicable□Notapplicable

Long-termprepaidexpensesaccountforexpendituresthathavebeenincurredandareamortizedoveraperiodlongerthanoneyear(excludingoneyear).Longtermdeferredexpensesarerecordedbasedontheactualamountincurredandamortizedevenlyoverthebenefitperiodorspecifiedperiod.Ifthelong-termdeferredexpenseitemcannotbenefitfutureaccountingperiods,theamortizedvalueoftheitemthathasnotbeenamortizedwillbefullytransferredtothecurrentperiod'sprofitorloss.

29.Contractliabilities

√Applicable□Notapplicable

TheCompanypresentscontractualassetsorcontractualliabilitiesinthebalancesheetbasedontherelationshipbetweenperformanceobligationsandcustomers’payments.TheCompanyoffsetscontractassetsandcontractliabilitiesunderthesamecontractandpresentsthematnetamounts.

ContractliabilitiesaretheCompany’sobligationstotransferproductstocustomerssinceithasreceivedorshallreceiveconsiderationfromcustomers.

30.Employeecompensations

(1).Accountingtreatmentofshort-termcompensations

√Applicable□Notapplicable

TheCompanyrecognizestheactualshort-termemployeeremunerationasliabilitiesduringtheaccountingperiodwhenemployeesprovideservicestotheCompany,andrecordstheminthecurrentprofitorlossorrelatedassetcosts.

(2).Accountingtreatmentofpost-employmentbenefits

√Applicable□Notapplicable

Thepostemploymentwelfareplanincludesadefinedcontributionplanandadefinedbenefitplan.

(1)DuringtheaccountingperiodinwhichemployeesprovideservicestotheCompany,theamounttobecontributedascalculatedunderthedefinedcontributionplanisrecognizedasaliabilityandrecordedincurrentprofitorlossorthecostofrelatedassets.

(2)Theaccountingtreatmentfordefinedbenefitplanstypicallyincludesthefollowingsteps:

1)Basedontheprojectedunitcreditmethod,unbiasedandmutuallyconsistentactuarialassumptionsareusedtoestimatedemographicandfinancialvariables,measuretheobligationsarisingfromdefinedbenefitplans,anddeterminetheperiodtowhichtheobligationsbelong.Atthesametime,theobligationsarisingfromthedefinedbenefitplanarediscountedtodeterminethepresentvalueofthedefinedbenefitplanobligationsandthecurrentservicecost

2)Ifthereareassetsinadefinedbenefitplan,thedeficitorsurplusformedbysubtractingthefairvalueofthedefinedbenefitplanassetsfromthepresentvalueofthedefinedbenefitplanobligationisrecognizedasanetdefinedbenefitliabilityorasset.Ifadefinedbenefitplanhasasurplus,thenetassetsofthedefinedbenefitplanaremeasuredattheloweroftheplansurplusandtheassetceiling

3)Attheendoftheperiod,theemployeecompensationcostsarisingfromdefinedbenefitplansarerecognizedasthreecomponents:servicecost,netinterestonthenetdefinedbenefitliabilityorasset,andremeasurementsofthenetdefinedbenefitliabilityorasset.Amongthese,theservicecostandnetinterestonthenetdefinedbenefitliabilityorassetareincludedincurrentprofitorlossorthecostofrelatedassets,whiletheremeasurementsofthenetdefinedbenefitliabilityorassetareincludedinothercomprehensiveincome.Theseamountsrecognizedinothercomprehensiveincomecannotbereclassifiedtoprofitorlossinsubsequentperiodsbutcanbetransferredwithinequity.

(3).Accountingtreatmentofseverancebenefits

√Applicable□Notapplicable

WheretheGroupprovidesseverancebenefitstoitsemployees,theemployeecompensationliabilitiesarisingfromtheseverancebenefitswillberecognized,andtheamountwillberecognizedintheprofitorlossforthecurrentperiodontheearlierdatebelow:thedatewhentheGroupcannotunilaterallywithdrawtheseverancebenefitsprovidedasaresultoftheemploymentterminationplanordownsizingproposal;orthedatewhentheGrouprecognizesthecostsorexpensesrelatingtothereorganizationinvolvingthepaymentofseverancebenefits.

(4).Accountingtreatmentofotherlong-termemployeebenefits

√Applicable□Notapplicable

Otherlong-termbenefitsprovidedtoemployeesthatmeettheconditionsofdefinedcontributionplansareaccountedforinaccordancewiththerelevantprovisionsofdefinedcontributionplans;otherlong-termbenefitsnotmeetingtheseconditionsareaccountedforinaccordancewiththerelevantprovisionsofdefinedbenefitplans.Tosimplifytheaccountingtreatment,theresultingemployeebenefitcostsarerecognizedasservicecosts,netinterestonnetliabilitiesornetassetsofotherlong-termemployeebenefits,andchangesarisingfromremeasurementofnetliabilitiesornetassetsofotherlong-termemployeebenefits,withthetotalnetamountofthesecomponentsrecognizedincurrentperiodprofitorlossorthecostofrelatedassets.

31.Estimatedliabilities

√Applicable□Notapplicable

Obligationsarisingfromexternalguarantees,litigationmatters,productqualityguarantees,loss-makingcontractsandothercontingencieshavebecomethecurrentobligationsoftheCompany.TheperformanceofsuchobligationsislikelytocauseeconomicbenefitstoflowoutoftheCompany,andtheamountofsuchobligationscanbereliable.Whenmeasuring,theCompanyrecognizestheobligationasanestimatedliability.

TheCompanyinitiallymeasurestheestimatedliabilitiesaccordingtothebestestimateoftheexpendituresrequiredtoperformtherelevantcurrentobligations,andreviewsthebookvalueoftheestimatedliabilitiesonthebalancesheetdate.

32.Share-basedpayment

√Applicable□NotapplicableTypesofShare-basedPaymentsIncludingequity-settledandcash-settledshare-basedpayments.Accountingtreatmentrelatedtotheimplementation,modification,andterminationofshare-basedpaymentplans

(1)Share-basedpaymentssettledinequityEquity-settledshare-basedpaymentsforemployeeservicesthatareexercisableimmediatelyaftergrantarerecognizedatthefairvalueoftheequityinstrumentsonthegrantdateasrelatedcostsorexpenses,withcorrespondingadjustmentstocapitalreserves.Equity-settledshare-basedpaymentsforemployeeservicesthatvestuponcompletionoftheserviceperiodormeetingspecifiedperformanceconditionsarerecognizedateachbalancesheetdateduringthevestingperiodbasedonthebestestimateofthenumberofvestedequityinstruments,usingthefairvalueatthegrantdate,withtheservicesobtainedinthecurrentperiodrecordedasrelatedcostsorexpensesandcorrespondingadjustmentstocapitalreserves.Forequity-settledshare-basedpaymentsforservicesfromotherparties,ifthefairvalueoftheservicescanbereliablymeasured,theyaremeasuredatthefairvalueoftheservicesontheacquisitiondate;ifthefairvalueoftheservicescannotbereliablymeasuredbutthefairvalueoftheequityinstrumentscan,theyaremeasuredatthefairvalueoftheequityinstrumentsontheserviceacquisitiondate,recordedasrelatedcostsorexpenses,withacorrespondingincreaseinowners'equity.

(2)Share-basedpaymentssettledincashEquity-settledshare-basedpaymentsthatareexercisableimmediatelyaftergrantforemployeeservicesarerecordedatthefairvalueoftheliabilityassumedbytheCompanyonthegrantdateasrelatedcostsorexpenses,withacorrespondingincreaseinliabilities.Cash-settledshare-basedpaymentsforemployeeservicesthatvestuponcompletionoftheserviceperiodormeetingspecifiedperformanceconditionsarerecognizedateachbalancesheetdateduringthevestingperiodbasedonthebestestimateofthevestingsituation,usingthefairvalueoftheliabilityassumedbytheCompany,withtheservicesobtainedinthecurrentperiodrecordedasrelatedcostsorexpensesandthecorrespondingliability.

(3)Modificationandterminationofshare-basedpaymentplansIfamodificationincreasesthefairvalueoftheequityinstrumentsgranted,theCompanyrecognizesacorrespondingincreaseinservicesreceivedbasedontheincreaseinfairvalue.Ifamodificationincreasesthenumberofequityinstrumentsgranted,theCompanyrecognizesthefairvalueoftheadditionalinstrumentsasanincreaseinservicesreceived.IftheCompanymodifiesvestingconditionsinamannerfavorabletoemployees,itconsidersthemodifiedvestingconditionswhenapplyingthevestingconditions.

Ifamodificationreducesthefairvalueofthegrantedequityinstruments,theCompanycontinuestorecognizetheamountofservicesobtainedbasedonthefairvalueoftheequityinstrumentsonthegrantdate,withoutconsideringthereductioninfairvalue;ifamodificationreducesthenumberofgrantedequityinstruments,theCompanytreatsthereducedportionasacancellationofthegrantedequityinstruments;ifthevestingconditionsaremodifiedinamannerunfavorabletoemployees,themodifiedvestingconditionsarenotconsideredwhenprocessingthevestingconditions.

IftheCompanycancelsorsettlesthegrantedequityinstrumentsduringthevestingperiod(exceptforcancellationsduetofailuretomeetvestingconditions),thecancellationorsettlementistreatedasanaccelerationofvesting,andtheamountthatwouldhavebeenrecognizedovertheremainingvestingperiodisimmediatelyrecognized.However,ifanewequityinstrumentisgrantedandifitisdeterminedthatthenewequityinstrumentgrantedisusedtoreplacethecanceledequityinstrumentonthegrantdateofthenewequityinstrument,thereplacementequityinstrumentsgrantedinthesamewayshallbetreatedinthesamewayasthatforthemodificationofthetermsandconditionsfortheoriginalequityinstrument.

33.Preferredshares,perpetualbondsandotherfinancialinstruments

□Applicable√Notapplicable

34.Revenue

(1).Disclosureofaccountingpoliciesadoptedforrevenuerecognitionandmeasurementbybusinesstype

√Applicable□NotapplicableRevenueRecognitionPrincipleOnthecontractcommencementdate,theCompanyevaluatesthecontract,identifieseachindividualperformanceobligationincludedinthecontract,anddetermineswhethereachindividualperformanceobligationistobefulfilledoveraperiodoftimeoratapointintime.Whenoneofthefollowingconditionsismet,theperformanceobligationisfulfilledwithinacertainperiodoftime;otherwise,theperformanceobligationisfulfilledatacertainpointintime:

(1)thecustomerobtainsandconsumestheeconomicbenefitsbroughtbytheCompany'sperformancewhentheCompanyperformsthecontract;(2)thecustomercancontrolthecommoditiesunderconstructionintheprocessoftheCompany'sperformance;(3)thecommoditiesproducedbytheCompanyduringtheperformanceofthecontracthaveirreplaceablepurposes,andtheCompanybeentitledtocollectpaymentfortheperformancepartthathasbeencompletedtodatethroughoutthetermoftheContract.Inviewofperformanceobligationsfulfilledwithinacertainperiodoftime,theCompanyrecognizesrevenueaccordingtotheprogressofperformancewithinthatperiod.Whentheperformanceprogresscannotbereasonablydetermined,ifthecostincurredbytheCompanyisexpectedtobecompensated,theincomeshallberecognizedaccordingtotheamountofthecostincurreduntiltheperformanceprogresscanbereasonablydetermined.Inviewofperformanceobligationsfulfilledatacertainpointintime,theCompanyrecognizesrevenueatthepointintimewhenthecustomerobtainscontrolovertherelevantcommodities.Whenjudgingwhetherthecustomerhasobtainedtherighttocontrolthegoods,theCompanytakesintoaccountthefollowingsigns:theenterprisehastherighttoreceivethecurrentpaymentforthegoods,thatis,thecustomerhastheobligationtomakethecurrentpaymentforthegoods;Theenterprisehastransferredthelegalownershipofthegoodstothecustomer,thatis,thecustomerhasthelegalownershipofthegoods;Theenterprisehastransferredthephysicalgoodstothecustomer,thatis,thecustomerhasphysicallyoccupiedthegoods;Theenterprisehastransferredthemainrisksandrewardsoftheownershipofthegoodstothecustomer,thatis,thecustomerhasobtainedthemainrisksandrewardsoftheownershipofthegoods;Thecustomerhasacceptedthegoods;Othersignsindicatingthatthecustomerhasobtainedcontrolofthegoods.

RevenueRecognitionPrinciples

(1)TheCompanyshallmeasurerevenueatthetransactionpriceallocatedtoeachindividualperformanceobligation.ThetransactionpriceistheamountofconsiderationtowhichtheCompanyexpectstobeentitledinexchangefortransferringgoodsorservicestoacustomer,excludingamountscollectedonbehalfofthirdpartiesandamountsexpectedtoberefundedtothecustomer.

(2)TheCompanydeterminesthebestestimateofthevariableconsiderationbasedontheexpectedvalueorthemostlikelyamount,butthetransactionpriceincludingthevariableconsiderationshouldnotexceedtheaccumulatedrecognizedrevenuewhentherelevantuncertaintyiseliminated.Itishighlyunlikelythatasignificantreversalwilloccuramount.

(3)Ifthereisasignificantfinancingcomponentinthecontract,theCompanyshalldeterminethetransactionpricebasedontheamountpayableincashassumingthecustomerobtainscontroloverthecommodityorservice.Thedifferencebetweenthetransactionpriceandthecontractconsiderationshallbeamortizedusingtheeffectiveinterestmethodduringthecontractperiod.

(4)Forcontractscontainingtwoormoreperformanceobligations,theCompanyallocatesthetransactionpricetoeachperformanceobligationatthecontractinceptiondatebasedonthe

relativeproportionofthestandalonesellingpricesofthegoodspromisedundereachperformanceobligation.Specificmethodsforrevenuerecognition

(1)SalesGoodsContractSalescontractsbetweentheCompanyandcustomerstypicallyincludecommitmentstotransfergoods,whichmayvarydependingonthecustomer'sagreement.Ascustomersareabletobenefitseparatelyfromtheaforementionedgoodsorservicesorusethemtogetherwithotherreadilyavailableresources,andthereisnosignificantintegration,modification,customization,orhighcorrelationbetweentheaforementionedgoodsorservices,theCompanyconsidersthemasclearlydistinguishablegoodsandconstitutesseparateperformanceobligations.

Onthebasisofcomprehensiveconsiderationofthefollowingfactors,theCompanyrecognizesrevenueatthetimewhenthecustomerobtainscontrolovertherelevantgoods:thecurrentrighttoreceivepaymentforthegoods,thetransferofthemainrisksandrewardsofownershipofthegoods,thetransferoflegalownershipofthegoods,thetransferofphysicalassetsofthegoods,andthecustomer'sacceptanceofthegoods.

(2)ServiceProvisionContract

TheservicecontractsbetweentheCompanyandcustomersusuallyincludeperformanceobligationssuchasprovidingtheuseofshopsintheChinaCommoditiesCitymarketsandthesupportingservicesforoperation,providinghotelaccommodationandcateringservices,providingpaiduseservicesforfundstoexternalpartiesoftheGroup,andprovidingcollectionandpaymentservices.

1)TheuseofshopsinChinaCommoditiesCitymarketsanditssupportingservices

AsthecustomersimultaneouslyobtainsandconsumestheeconomicbenefitsbroughtbytheCompany'sperformance,theCompanyrecognizesitasaperformanceobligationfulfilledoveraperiodoftimeandrecognizesrevenuebasedontheprogressofperformance,exceptwhentheprogresscannotbereasonablydetermined.Undertheoutputmethod,theCompanydeterminestheperformanceprogressoftheprovisionoftheuseofshopsintheChinaCommoditiesCitymarketsandthesupportingservicesforoperationbasedonthenumberofusingdaysoftheshopsWhentheperformanceprogresscannotbereasonablydetermined,ifthecostincurredbytheGroupisexpectedtobecompensated,theincomeshallberecognizedaccordingtotheamountofthecostincurreduntiltheperformanceprogresscanbereasonablydetermined.

2)Hotelaccommodationbusiness

AsthecustomersimultaneouslyobtainsandconsumestheeconomicbenefitsbroughtbytheCompany'sperformance,theCompanyrecognizesitasaperformanceobligationfulfilledoveraperiodoftimeandrecognizesrevenuebasedontheprogressofperformance,exceptwhentheprogresscannotbereasonablydetermined.TheCompanydeterminestheprogressofperformanceobligationsforhotelaccommodationservicesbasedontheoutputmethod,usingthenumberofaccommodationdays.Whentheperformanceprogresscannotbereasonablydetermined,ifthecostincurredbytheGroupisexpectedtobecompensated,theincomeshallberecognizedaccordingtotheamountofthecostincurreduntiltheperformanceprogresscanbereasonablydetermined.

3)Hotelcateringbusiness

Fortheseparateperformanceobligationofprovidinghotelcateringservices,theCompanyseparatelypricesthehotelcateringservicesandrecognizesrevenueuponcompletionoftheservices.

4)Terminablepaiduseoffundsservices

AsthecustomersimultaneouslyobtainsandconsumestheeconomicbenefitsbroughtbytheCompany'sperformance,theCompanyrecognizesitasaperformanceobligationfulfilledoveraperiodoftimeandrecognizesrevenuebasedontheprogressofperformance,exceptwhentheprogresscannotbereasonablydetermined.TheCompanydeterminestheperformanceprogressofprovidingfundsforterm-basedpaiduseservicesbasedonthenumberofdaysthefundsareused,followingtheoutputmethod.Whentheperformanceprogresscannotbereasonablydetermined,ifthecostincurredbytheGroupisexpectedtobecompensated,theincomeshallberecognizedaccordingtotheamountofthecostincurreduntiltheperformanceprogresscanbereasonablydetermined.

(2).Adoptingdifferentbusinessmodelsforsimilarbusinessesinvolvesdifferent

revenuerecognitionmethodsandmeasurementmethods

□Applicable√Notapplicable

35.Contractcost

√Applicable□NotapplicableTheincrementalcostsincurredbytheCompanytoobtaincontractsthatareexpectedtoberecoveredarerecognizedascontractacquisitioncostsandrecognizedasanasset.Iftheamortizationperiodforthecostsincurredinobtainingacontractdoesnotexceedoneyear,theyshouldbedirectlyrecognizedasanexpenseinthecurrentperiod.IfthecostincurredbytheCompanyfortheperformanceofthecontractdoesnotapplytothescopeoftherelevantstandardssuchasinventory,fixedassetsorintangibleassets,andmeetsthefollowingconditionsatthesametime,itisrecognizedasanassetasthecostofcontractperformance:

(1)Thecostisdirectlyrelatedtoacurrentorexpectedcontract,includingdirectlabor,directmaterials,manufacturingexpenses(orsimilarexpenses),costsclearlybornebythecustomer,andothercostsincurredonlybecauseofthecontract;

(2)ThiscostincreasestheresourcesthattheCompanywilluseinthefuturetofulfillitscontractualobligations;

(3)Thecostisexpectedtoberecoverable.

TheCompanyamortizesassetsrelatedtocontractcostsusingthesamebasisastherecognitionofrevenuefromtherelatedgoodsorservices,andrecognizestheamortizationasanexpenseinthecurrentperiod.

Ifthecarryingamountofanassetrelatedtocontractcostsexceedstheremainingconsiderationexpectedtobereceivedfromtransferringthegoodsorservicesassociatedwiththeassetminustheestimatedcoststobeincurred,theCompanyrecognizesanimpairmentprovisionfortheexcessamountandrecordsitasanassetimpairmentloss.Ifchangesinfactorsthatpreviouslycausedimpairmentresultintheremainingconsiderationexpectedtobereceivedfromtransferringgoodsorservicesrelatedtotheasset,minusestimatedcoststobeincurred,exceedingtheasset'scarryingamount,thepreviouslyrecognizedimpairmentlossisreversedandincludedincurrentprofitorloss,providedthatthereversedcarryingamountdoesnotexceedwhatthecarryingamountwouldhavebeenhadnoimpairmentbeenrecognized.

36.Governmentgrants

√Applicable□Notapplicable

Governmentgrantsarerecognizedwhenthefollowingconditionsaresimultaneouslymet:

(1)theCompanycanfulfilltheconditionsattachedtothegovernmentgrant;(2)theCompanycanreceivethegovernmentgrant.Ifagovernmentgrantfallsinmonetaryassets,itwillbemeasuredbytheamountreceivedorreceivable.Ifagovernmentgrantdoesnotfallinmonetaryassets,itwillbemeasuredbyfairvalue.Ifthefairvalueofagrantcannotbedeterminedreliably,itwillbemeasuredbyitsnominalamount.

Basisforjudgmentandaccountingtreatmentofgovernmentgrantsrelatedtoassets

Governmentdocumentsstipulatethatgrantsusedtopurchase,construct,orotherwiseformlong-termassetsareclassifiedasasset-relatedgovernmentgrants.Ifgovernmentdocumentsareunclear,thebasicconditionsrequiredtoobtainthesubsidyareusedasthebasisforjudgment.Subsidieswherethebasicconditionistheacquisitionorconstructionoflong-termassetsareclassifiedasasset-relatedgovernmentgrants.Governmentgrantsrelatedtoassetsaredeductedfromthecarryingamountoftherelevantassetsorrecognizedasdeferredincome.Asset-relatedgovernmentgrantsarerecognizedasdeferredincomesandincludedinthecurrentprofitandlossintermswithintheservicelifeoftherelevantassetsinareasonableandsystematicway.Governmentgrantsmeasuredinnominalamountsaredirectlyrecognizedinthecurrentperiod'sprofitorloss.Iftherelevantassetsaresold,transferred,scrappedordamagedbeforetheendoftheirusefullife,theundistributedbalanceofrelevant

deferredincomeshallbetransferredtotheprofitandlossofthecurrentperiodofassetdisposal.Basisforjudgmentandaccountingtreatmentmethodsofgovernmentgrantsrelatedtorevenue

Governmentgrantsotherthanthoserelatedtoassetsareclassifiedasgovernmentgrantsrelatedtoincome.Governmentgrantscontainingthepartrelatedtoassetsandthepartrelatedtoincomeareaccountedforseparatelyaccordingtodifferentparts;ifitisdifficulttodistinguish,thewholeshallbeclassifiedasgovernmentgrantsrelatedtoincome.Governmentgrantsrelatedtoincome,whichareintendedtocompensateforrelatedcosts,expenses,orlossesincurredinfutureperiods,shouldberecognizedasdeferredincome.Theyarerecognizedintheprofitorlossfortheperiodinwhichtherelatedcosts,expenses,orlossesarerecognized,ortheyoffsettherelatedcosts.Forgovernmentgrantsthatcompensateforrelatedcosts,expenses,orlossesthathavealreadybeenincurred,theyshouldbedirectlyrecognizedintheprofitorlossforthecurrentperiodoroffsettherelatedcosts.GovernmentgrantsrelatedtotheCompany’sdailyoperatingactivitiesarerecordedinotherincomeoroffsetrelatedcostexpensesaccordingtotheessenceoftheeconomicbusiness.GovernmentgrantsnotrelatedtotheCompany’sdailyactivitiesarerecordedinnon-operatingincomeandexpenditure.

AccountingTreatmentMethodsforPolicy-BasedPreferentialLoanInterestSubsidies

(1)Whenthefiscalauthorityallocatesinterestsubsidyfundstothelendingbank,andthelendingbankprovidesloanstothecompanyatapolicy-basedpreferentialinterestrate,theactualamountoftheloanreceivedshallberecordedastheloan’sbookvalue.Therelatedborrowingcostsshallbecalculatedbasedontheprincipaloftheloanandthepolicy-basedpreferentialinterestrate.

(2)IfthefinancedirectlytransfersthediscountedfundstotheCompany,theCompanywilloffsettherelevantborrowingcostswiththecorrespondingdiscountedinterest.

37.Deferredincometaxassetsanddeferredincometaxliabilities

√Applicable□Notapplicable

Basedonthedifferencebetweenthebookvalueofassetsandliabilitiesandtheirtaxbase(ifthetaxbasecanbedeterminedforitemsnotrecognizedasassetsandliabilitiesinaccordancewiththetaxlaw,thedifferencebetweenthetaxbaseanditsbookvalue),Deferredincometaxassetsordeferredincometaxliabilitiesarecalculatedandrecognizedaccordingtotheapplicabletaxrateduringtheperiodwhentheassetisexpectedtoberecoveredortheliabilityissettled.

Therecognitionofdeferredincometaxassetsislimitedtotheamountoftaxableincomethatislikelytobeobtainedtooffsettemporarydifferences.Onthebalancesheetdate,ifthereisconclusiveevidencethatsufficienttaxableincomeislikelytobeobtainedinthefutureperiodtooffsetdeductibletemporarydifferences,thedeferredincometaxassetsthathavenotbeenrecognizedinthepreviousaccountingperiodshallberecognized.

Onthebalancesheetdate,theCompanyreviewsthebookvalueofdeferredincometaxassets.Ifitislikelytoobtainsufficienttaxableincomeinthefuturetooffsetthebenefitsofdeferredincometaxassets,theGroupwillwritedownthebookvalueofdeferredincometaxassets.Whenitislikelytoobtainsufficienttaxableincome,theGroupwillreversethereducedamount.

ThecurrentincometaxanddeferredincometaxoftheCompanyareincludedinthecurrentprofitandlossasincometaxexpensesorincome,buttheincometaxarisingfromthefollowingsituationsisnotincluded:(1)Businesscimbination;(2)Transactionsoreventsdirectlyrecognizedintheowner'sequity.

TheCompanypresentsdeferredtaxassetsanddeferredtaxliabilitiesasanetamountwhenthefollowingconditionsaresimultaneouslymet:(1)ithasthelegalrighttosettlecurrenttaxassetsandcurrenttaxliabilitiesonanetbasis;(2)thedeferredtaxassetsanddeferredtaxliabilitiesrelatetoincometaxesleviedbythesametaxauthorityonthesametaxableentityordifferenttaxableentities,butineachfutureperiodwhensignificantdeferredtaxassetsanddeferredtaxliabilitiesareexpectedtoreverse,therelevanttaxableentitiesintendtosettle

currenttaxassetsandcurrenttaxliabilitiesonanetbasisorsimultaneouslyacquireassetsandsettleliabilities.

38.Lease

√Applicable□NotapplicableJudgmentbasisandaccountingtreatmentmethodsforsimplifyingshort-termleasesandlow-valueassetleasesasalessee

√Applicable□NotapplicableTheCompanyrecognizesleaseswithaleasetermnotexceeding12monthsandexcludingpurchaseoptionsasshort-termleasesonthecommencementdateoftheleaseterm;Leaseswithlowervaluewhenasingleleasedassetisconsideredabrandnewassetarerecognizedaslow-valueassetleases.Forallshort-termleasesandleasesoflow-valueassets,theCompanyrecognizesleasepaymentsineachperiodoftheleasetermonastraight-linebasisasrelatedassetcostsorcurrentperiodprofitandloss.

Exceptforshort-termleasesandleasesoflow-valueassetsaccountedforusingthesimplifiedapproachmentionedabove,theCompanyrecognizesright-of-useassetsandleaseliabilitiesatthecommencementdateofthelease.

(1)Right-of-useassets

Theright-of-useassetisinitiallymeasuredatcost,whichincludes:1)theinitialmeasurementoftheleaseliability;2)leasepaymentsmadeonorbeforethecommencementdateofthelease,lessanyleaseincentivesreceived;3)initialdirectcostsincurredbythelessee;

4)anestimateofthecoststobeincurredbythelesseefordismantlingandremovingtheleasedasset,restoringthesiteonwhichitislocated,orrestoringtheassettotheconditionrequiredbytheleaseterms.

TheCompanydepreciatestheright-of-useassetsusingthestraight-linemethod.Wheretheownershipoftheleasedassetcanbereasonablydeterminedattheendoftheleaseterm,theCompanyasthelesseeshalltakedepreciationduringtheremainingusefullifeoftheleasedasset.Whereitisnotreasonablycertainthatownershipoftheleasedassetwillbeacquiredattheendoftheleaseterm,theCompanyshallmakedepreciationwithintheshorterperiodoftheleasetermortheremainingusefullifeoftheleasedasset.

(2)Leaseliabilities

Atthecommencementdateofthelease,theCompanyrecognizesthepresentvalueoftheunpaidleasepaymentsasaleaseliability.Incalculatingthepresentvalueoftheleasepayments,theGroupusestheleaseembeddedinterestrateasthediscountrate;Iftheinherentinterestrateoftheleasecannotbedetermined,theCompany'sincrementalborrowingrateshallbeusedasthediscountrate.Thedifferencebetweenleasepaymentsandtheirpresentvalueisrecognizedasunearnedfinancecharges,withinterestexpensesrecognizedduringeachleaseperiodatthediscountrateusedtodeterminethepresentvalueofleasepayments,andrecordedincurrentprofitorloss.Variableleasepaymentsthatarenotincludedinthemeasurementofleaseliabilitiesarerecognizedinthecurrentperiod'sincomestatementwhentheyactuallyoccur.

Afterthecommencementoftheleaseterm,whentherearechangesinthesubstantivefixedpayments,estimatedpayableamountsoftheguaranteedresidualvalue,indicesorratiosusedtodetermineleasepayments,orchangesintheassessmentresultsoractualexerciseofpurchaseoptions,renewaloptions,orterminationoptions,theCompanyremeasurestheleaseliabilitybasedonthepresentvalueoftherevisedleasepaymentsandadjuststhecarryingamountoftheright-of-useassetaccordingly.Ifthecarryingamountoftheright-of-useassethasbeenreducedtozerobutfurtherreductionoftheleaseliabilityisstillrequired,theremainingamountisrecognizedincurrentperiodprofitorloss.

(3)After-saleleasebacktransactions

TheCompanyevaluatesanddetermineswhethertheassettransferinasale-and-leasebacktransactionconstitutesasaleinaccordancewithAccountingStandardsforBusinessEnterprisesNo.14—Revenue.

Iftheassettransferinasaleandleasebacktransactionqualifiesasasale,theCompanymeasurestheright-of-useassetarisingfromtheleasebackbasedontheportionoftheoriginal

asset'scarryingamountrelatedtotherightofuseobtained,andrecognizesonlythegainorlossrelatedtotherightstransferredtothelessor.Iftheassettransferinasaleandleasebacktransactiondoesnotqualifyasasale,theCompanycontinuestorecognizethetransferredassetandsimultaneouslyrecognizesafinancialliabilityequaltothetransferproceeds,accountingforthisfinancialliabilityinaccordancewith"AccountingStandardsforBusinessEnterprisesNo.22—RecognitionandMeasurementofFinancialInstruments."Classificationcriteriaandaccountingtreatmentmethodsforleasingasalessor

√Applicable□NotapplicableTheleasethattransfersvirtuallyalltherisksandrewardsrelatedtotheownershipoftheleasedassetontheleasecommencementdateisafinancelease,andotherleasesareoperatingleases.

(1)OperatingLeaseTheCompanyrecognizesleasereceiptsasrentalincomeonastraight-linebasisovertheleaseterm.Initialdirectcostsincurredarecapitalizedandamortizedonthesamebasisastherecognitionofrentalincome,andareincludedinthecurrentperiod'sprofitorlossininstallments.Variableleasepaymentsrelatedtooperatingleasesthatarenotincludedinleasereceiptsareincludedinprofitorlossforthecurrentperiodwhentheyareactuallyincurred.

(2)FinancialLeaseAtthecommencementdateofthelease,theCompanyrecognizesfinanceleasereceivablesatthenetinvestmentinthelease(thesumofthepresentvalueoftheunguaranteedresidualvalueandleasepaymentsnotyetreceivedatthecommencementdate,discountedusingtheinterestrateimplicitinthelease)andderecognizesthefinanceleaseassets.Duringeachperiodoftheleaseterm,theCompanycalculatesandrecognizesinterestincomeusingtheinterestrateimplicitinthelease.

ThevariableleasepaymentsobtainedbytheCompanyasthelessorwhicharenotrecordedinthenetleaseinvestmentmeasurementarerecordedinthecurrentprofitorlosswhentheyareactuallyincurred.

(3)After-saleleasebacktransactions

TheCompanyevaluatesanddetermineswhethertheassettransferinasale-and-leasebacktransactionconstitutesasaleinaccordancewithAccountingStandardsforBusinessEnterprisesNo.14—Revenue.

Iftheassettransferinasaleandleasebacktransactionqualifiesasasale,theCompanyaccountsfortheassetpurchaseinaccordancewithotherapplicableaccountingstandardsforenterprisesandaccountsfortheassetleaseinaccordancewithAccountingStandardsforBusinessEnterprisesNo.21—Leases.

Iftheassettransferinasaleandleasebacktransactiondoesnotqualifyasasale,theCompanydoesnotrecognizethetransferredassetbutrecognizesafinancialassetequaltothetransferproceedsandaccountsforthisfinancialassetinaccordancewithAccountingStandardsforBusinessEnterprisesNo.22—RecognitionandMeasurementofFinancialInstruments.

39.Otherimportantaccountingpoliciesandaccountingestimates

√Applicable□Notapplicable

Measurementoffairvalue

TheCompanymeasuresequityinstrumentinvestmentsatfairvalueateachbalancesheetdate.Fairvaluereferstothepricereceivedfromthesaleofanassetorpaidforthetransferofaliabilitybyamarketplayerintheorderlytransactionsonthemeasurementdate.Fortheassetsandliabilitieswhicharemeasuredordisclosedbyfairvalueinthefinancialstatements,thelevelsoffairvaluearedeterminedbasedonthelowest-levelinputofimportantsignificancefortheoverallmeasurementoffairvalues:Level1inputistheunadjustedofferpriceforanidenticalassetorliabilitythatcanbeobtainedinanactivemarketonthemeasurementdate;Level2inputsaretheinputsthataredirectlyorindirectlyobservableforrelatedassetsorliabilitiesotherthanLevel1inputs;Level3inputsaretheinputsthatareobservableforrelatedassetsorliabilities.Oneachbalancedate,theGroupre-evaluatestheassetsandliabilitiesthat

arerecognizedinthefinancialstatementsandkeepbeingmeasuredbyfairvaluesoastodeterminewhethertochangethemeasurementlevelsoffairvalue.SignificantaccountingjudgmentsandestimatesInthepreparationoffinancialstatements,themanagementneedtomakejudgments,estimatesandassumptions,whichwillaffectthepresentedamountsanddisclosureofrevenue,expenses,assetsandliabilitiesandthedisclosureofcontingentliabilitiesonthebalancesheetdate.However,theuncertaintyoftheseassumptionsandestimatesmayresultinsignificantadjustmentstothebookvalueoffutureaffectedassetsorliabilities.

JudgmentsInapplyingtheCompany'saccountingpolicies,managementhasmadethefollowingjudgmentsthathaveasignificantimpactontheamountsrecognizedinthefinancialstatements:

(1)Operatinglease-asalessorTheCompanyhassignedleasecontractsforinvestmentproperties.TheCompanyconsidersthat,basedonthetermsoftheleasecontracts,itretainsallsignificantrisksandrewardsofownershipofthesepropertiesandthereforetreatsthemasoperatingleases.

(2)ClassificationofinvestmentpropertiesandfixedassetsTheCompanyclassifiesthebuildingsandstructuresleasedoutotherthanforthemainbusinessessuchasmarketandhotelservicesaswellastheauxiliarylanduserightsthereofasinvestmentproperties,includingbutnotlimitedtotheauxiliarybankingandcateringoutletsformarketoperationandtheauxiliaryserviceoutletsforhotels.Otherbuildingsandstructuresleasedoutareclassifiedasfixedassets.

(3)BusinessmodelTheclassificationoffinancialassetsatinitialrecognitiondependsontheCompany'sbusinessmodelformanagingtheseassets.Whendeterminingthebusinessmodel,theCompanyconsidersfactorsincludingcorporateevaluationmethodsandthewayfinancialassetperformanceisreportedtokeymanagementpersonnel,therisksaffectingfinancialassetperformanceandtheirmanagementapproaches,aswellasthemethodsbywhichrelevantbusinessmanagersarecompensated.Whenassessingwhethertheobjectiveistocollectcontractualcashflows,theCompanyneedstoanalyzeandevaluatethereasons,timing,frequency,andvalueofthesaleoffinancialassetsbeforetheirmaturitydate.

(4)ContractcashflowcharacteristicsTheclassificationoffinancialassetsatinitialrecognitiondependsonthecharacteristicsofthecontractualcashflowofthefinancialassets.Forthejudgmentonwhetherthecontractualcashflowistherepaymentofprincipalandthepaymentofinterestonoutstandingprincipal,includingtheevaluationoftheadjustmenttothetimevalueofmoney,itshouldbejudgedwhetheritissignificantlydifferentfromthebenchmarkcashflow;forthefinancialassetswiththeearlyrepaymentcharacteristic,itshouldbejudgedwhetherthefairvalueoftheearlyrepaymentcharacteristicisextremelylow.UncertaintiesofestimatesThefollowingarekeyassumptionsregardingthefutureatthebalancesheetdateandotherkeysourcesofestimationuncertaintythatmayresultinsignificantadjustmentstothebookvalueofassetsandliabilitiesinfutureaccountingperiods.

(1)ImpairmentoffinancialinstrumentsTheCompanyevaluatestheimpairmentoffinancialinstrumentswiththeexpectedcreditlossmodel.Toapplythemodel,theCompanyneedstomakesignificantjudgmentsandestimatesandtakeintoaccountallreasonableandevidencedinformation,includingforward-lookinginformation.Inmakingthesejudgmentsandestimates,theCompanyinfersexpectedchangesindebtorcreditriskbasedonhistoricalrepaymentdatacombinedwitheconomicpolicies,macroeconomicindicators,industryrisks,andotherfactors.Differentestimatesmayaffecttheprovisionsforimpairmentandtheprovisionthathasbeenmadeforimpairmentmaynotnecessarilybeequaltotheactualamountofimpairmentlossinthefuture.

(2)NetrealizablevalueofpropertyinventoryTheCompany'srealestateinventoryismeasuredatthelowerofcostandnetrealizablevalue,withthecalculationofnetrealizablevaluerequiringtheuseofassumptionsandestimates.Ifthemanagementadjusttheestimatedpriceandthecostsandexpensestobeincurreduntilthecompletion,itwillaffecttheestimateofthenetrealizablevalueoftheinventoryandthedifferencewillaffecttheprovisionforinventorydepreciation.

(3)Impairmentofnon-currentassetsotherthanfinancialassets(excludinggoodwill)TheCompanydetermines,onthebalancesheetdate,whetherthenon-currentassetsotherthanfinancialassetshaveasignofbeingimpaired.Non-currentassetsotherthanfinancialassetsaresubjecttoimpairmenttestingwhenthereareindicationsthattheirbookvalueisirrecoverable.Whenthebookvalueofanassetoragroupofassetsishigherthanitsrecoverablevalue,i.e.fairvaluelessthedisposalexpensesorthepresentvalueofexpectedfuturecashflow,whicheverishigher,theassetorgrouphasbeenimpaired.Forthefairvaluelessthedisposalexpenses,theGroupreferstotheagreedsellingpriceorobservablemarketpriceofthesimilarassetinafairtransaction,lessthecostincreasedirectlyattributabletothedisposaloftheasset.Whenpredictingthepresentvalueoffuturecashflows,themanagementmustestimatetheexpectedfuturecashflowsoftheassetorgroupofassetsandselectanappropriatediscountrate.Whenidentifyingagroupofassets,themanagementconsiderwhetherthesmallestidentifiablegroupofassetscangenerateincomeandcashflowsindependentlyfromotherdepartmentsorunits,ortheincomeandcashinflowsgeneratedtherebyaremostlyindependentfromotherdepartmentsorunits,andalsotakeintoaccountthewayofmanagingormonitoringproductionandoperatingactivitiesandthewayofmakingdecisionsonthecontinueduseordisposaloftheasset.PleaserefertoNoteV.27fordetails.

(4)ImpairmentofgoodwillOurcompanytestsgoodwillforimpairmentatleastannually.Thisrequiresestimatingthepresentvalueofthefuturecashflowsoftheassetgrouporcombinationofassetgroupstowhichthegoodwillisallocated.Whenestimatingthepresentvalueoffuturecashflows,theCompanyneedstoestimatethecashflowsgeneratedbyfutureassetgroupsorcombinationsofassetgroups,andatthesametimeselectanappropriatediscountratetodeterminethepresentvalueoffuturecashflows.PleaserefertoNoteV.27fordetails.

(5)Fairvalueofnon-listedequityinvestmentsTheCompanydeterminesthefairvalueofnon-listedequityinvestmentsbasedontheexpectedfuturecashflowsdiscountedatthecurrentdiscountrateofotherfinancialinstrumentswithsimilarcontractualtermsandriskcharacteristics.ThisrequirestheCompanytoestimateexpectedfuturecashflows,creditrisks,volatility,anddiscountrates,whichintroducesuncertainty.

(6)DevelopmentexpendituresWhendeterminingtheamountofcapitalization,managementmustmakeassumptionsontheexpectedfuturecashflow,theapplicablediscountrate,andtheexpectedbenefitperiodoftheasset.

(7)DeferredTaxAssetsTotheextentthatitisverylikelyfortheGrouptohaveenoughtaxableincometobeoffsetagainstthedeductiblelosses,theGroupshallrecognizedeferredincometaxassetsinconnectionwiththeoutstandingdeductiblelosses.Thisrequiresthemanagementtouselotsofjudgmentstoestimatetheacquisitiontimeandamountofthetaxableincometobeacquiredinthefuturetodeterminetheamountofdeferredincometaxassetstoberecognized,inconsiderationofthetaxpaymentplanningstrategy.

(8)LesseeincrementalborrowinginterestrateForleaseswheretheinterestrateimplicitintheleasecannotbedetermined,theCompanyusesthelessee'sincrementalborrowingrateasthediscountratetocalculatethepresentvalueoftheleasepayments.Whendeterminingtheincrementalborrowingrate,theCompanytakestheobservableinterestrateasthereferencebasisfordeterminingtheincrementalborrowingrateaccordingtotheeconomicenvironmentitisin.Onthisbasis,theCompanyadjuststhereferenceinterestrateaccordingtoitsownsituation,theunderlyingassetsituation,theleaseterm,theamountofleaseliabilitiesandotherspecificconditionsoftheleasebusinesstoobtaintheapplicableincrementalborrowingrate.

40.Changesinimportantaccountingpoliciesandaccountingestimates

(1).Changesinimportantaccountingpolicies

√Applicable□Notapplicable

Unit:RMB

Othernotes:

No

(2).Changesinimportantaccountingestimates

□Applicable√Notapplicable

(3).From2024,thefirstimplementationofnewaccountingstandardsorstandardinterpretationswouldinvolveadjustmentstothefinancialstatementsatthebeginningofthefirstimplementationyear

□Applicable√Notapplicable

41.Other

√Applicable□NotapplicableTheCompanyhasimplementedthe"InterimProvisionsonAccountingTreatmentofEnterpriseDataResources"issuedbytheMinistryofFinance,effectivefromJanuary1,2024,andappliestheprovisionsprospectively.VI.Taxes

1.MajortaxesandtaxratesMajortaxesandtaxrates

√Applicable□Notapplicable

Disclosureoftaxpayerssubjecttodifferentincometaxrates

√Applicable□Notapplicable

1.Taxpreference

√Applicable□Notapplicable

1.AccordingtotheAnnouncementontheFilingofHigh-techEnterprisesrecognizedbyZhejiangProvincialAccreditationAgencyin2022issuedbytheOfficeoftheNationalHigh-techEnterpriseAccreditationManagementLeadingGroup,YiwuChinaCommoditiesCityBigDataCo.,Ltd.hasbeenlistedinthefilinglistofhigh-techenterprisesrecognizedbyZhejiangProvincialAccreditationAgencyin2022andpassedtherecognitionofhigh-techenterprises.TheCertificatenumberisGR202233004297.Dateofissue:December24,2022.Validperiod:

threeyears.FromJanuary1,2022toDecember31,2024,YiwuChinaCommoditiesCityBigDataCo.,Ltd.willbesubjecttoareducedcorporateincometaxrateof15%.

2.AccordingtotheAnnouncementontheFilingofHigh-techEnterprisesrecognizedbyZhejiangProvincialAccreditationAgencyin2024issuedbytheOfficeoftheNationalHigh-techEnterpriseAccreditationManagementLeadingGroup,KuaijietongPaymentServiceCo.,Ltd.hasbeenlistedinthefilinglistofhigh-techenterprisesrecognizedbyZhejiangProvincialAccreditationAgencyin2024andpassedtherecognitionofhigh-techenterprises.TheCertificatenumberisGR202433009630.Dateofissue:December6,2024.Validperiod:threeyears.KuaijietongPaymentServiceCo.,Ltd.willbesubjecttoareducedenterpriseincometaxrateof15%fromJanuary1,2024toDecember31,2026.

3.AccordingtotheAnnouncementontheFilingofHigh-techEnterprisesrecognizedbyZhejiangProvincialAccreditationAgencyin2023issuedbytheOfficeoftheNationalHigh-techEnterpriseAccreditationManagementLeadingGroup,ZhejiangYiwugouE-commerceCo.,Ltd.hasbeenlistedinthefilinglistofhigh-techenterprisesrecognizedbyZhejiangProvincialAccreditationAgencyin2023andpassedtherecognitionofhigh-techenterprises.TheCertificatenumberisGR202333013352.Dateofissue:December18,2024.Validperiod:threeyears.ZhejiangYiwugouE-commerceCo.,Ltd.willbesubjecttoareducedcorporateincometaxrateof15%fromJanuary1,2023toDecember31,2025.

2.Other

□Applicable√NotapplicableVII.Notestoitemsinconsolidatedfinancialstatements

1.Monetaryfunds

√Applicable□Notapplicable

Unit:RMB

Othernotes:

MonetaryfundswithrestrictedusagerightsaredetailedinNoteVII.31.Assetswithrestrictedownershiporusagerights.

2.Held-for-tradingfinancialassets

√Applicable□Notapplicable

Unit:RMB

Othernotes:

□Applicable√Notapplicable

3.Derivativefinancialassets

□Applicable√Notapplicable

4.Notesreceivable

(1).Categorizedpresentationofnotesreceivable

√Applicable□Notapplicable

Unit:RMB

(2).NotesreceivablehavingbeenpledgedbytheCompanyasofthecloseofthe

reportingperiod

□Applicable√Notapplicable

(3).NotesreceivablehavingbeenendorsedordiscountedbytheCompanyasofthecloseofthereportingperiodandhavingnotbeendueasofthebalancesheetdate

□Applicable√Notapplicable

(4).Categorizeddisclosurebasedonthebaddebtprovisionmethod

√Applicable□Notapplicable

Unit:RMB

Accountsreceivableforwhichbaddebtprovisionismadeindividually:

□Applicable√NotapplicableExplanationformakingbaddebtprovisionforaccountsreceivablebygroup:

□Applicable√NotapplicableProvisionforbaddebtsbasedonthegeneralmodelofexpectedcreditlosses

□Applicable√NotapplicableClassificationbasisandbaddebtprovisionratioforeachstageNoExplanationofsignificantchangesinthebookbalanceofaccountsreceivablewithchangesinlossprovisionsinthisperiod:

□Applicable√Notapplicable

(5).Provisionsforbaddebts

□Applicable√NotapplicableInwhichtherecoveredorreversedamountisimportant:

□Applicable√NotapplicableOthernotes:

No

(6).Notesreceivableactuallywrittenoffduringthecurrentperiod

□Applicable√NotapplicableImportantnotesreceivablewrittenoff:

□Applicable√NotapplicableDescriptionofnoteswrittenoff:

□Applicable√NotapplicableOthernotes:

□Applicable√Notapplicable

5.Accountsreceivable

(1).Disclosurebasedonaccountage

√Applicable□Notapplicable

Unit:RMB

(2).Categorizeddisclosurebasedonthebaddebtprovisionmethod

√Applicable□Notapplicable

Unit:RMB

Accountsreceivableforwhichbaddebtprovisionismadeindividually:

√Applicable□Notapplicable

Unit:RMB

Explanationformakingbaddebtprovisionforaccountsreceivableindividually:

□Applicable√Notapplicable

Explanationformakingbaddebtprovisionforaccountsreceivablebygroup:

√Applicable□NotapplicableCombinedprovisionitems:combinedprovisionforbaddebtsbasedoncreditriskcharacteristics

Unit:RMB

Descriptionofcombinedprovisionforbaddebts:

□Applicable√NotapplicableProvisionforbaddebtsbasedonthegeneralmodelofexpectedcreditlosses

□Applicable√NotapplicableClassificationbasisandbaddebtprovisionratioforeachstageNoExplanationofsignificantchangesinthebookbalanceofaccountsreceivablewithchangesinlossprovisionsinthisperiod:

□Applicable√Notapplicable

(3).Provisionsforbaddebts

√Applicable□Notapplicable

Unit:RMB

Inwhichtherecoveredorreversedamountisimportant:

□Applicable√NotapplicableOthernotes:

No

(4).Accountsreceivableactuallywrittenoffduringthecurrentperiod

□Applicable√NotapplicableInformationofwrite-offofimportantaccountsreceivable

□Applicable√NotapplicableDescriptionofaccountsreceivablewrittenoff:

□Applicable√Notapplicable

(5).Fivedebtorswiththehighestclosingbalancesofaccountsreceivableandcontract

assets

√Applicable□Notapplicable

Unit:RMB

Othernotes:

NoOthernotes:

□Applicable√Notapplicable

6.Contractassets

(1).Overviewofcontractassets

□Applicable√Notapplicable

(2).Amountofandreasonsformaterialchangestobookvalueduringthereporting

period

□Applicable√Notapplicable

(3).Categorizeddisclosurebasedonthebaddebtprovisionmethod

□Applicable√NotapplicableAccountsreceivableforwhichbaddebtprovisionismadeindividually:

□Applicable√NotapplicableExplanationformakingbaddebtprovisionforaccountsreceivableindividually:

□Applicable√NotapplicableExplanationformakingbaddebtprovisionforaccountsreceivablebygroup:

□Applicable√Notapplicable

Provisionforbaddebtsbasedonthegeneralmodelofexpectedcreditlosses

□Applicable√NotapplicableClassificationbasisandbaddebtprovisionratioforeachstageNoExplanationofsignificantchangesinthebookbalanceofcontractassetswithchangesinlossprovisionsinthisperiod:

□Applicable√Notapplicable

(4).Provisionforbaddebtsofcontractassetsinthisperiod

□Applicable√NotapplicableInwhichtherecoveredorreversedamountisimportant:

□Applicable√NotapplicableOthernotes:

No

(5).Actualwritten-offcontractassetsinthisperiod

□Applicable√NotapplicableAmongthem,importantcontractassetswriteoff

□Applicable√NotapplicableDescriptionofcontractassetswrittenoff:

□Applicable√NotapplicableOthernotes:

□Applicable√Notapplicable

7.Accountsreceivablefinancing

(1).Accountsreceivablefinancinglistedbyclassification

□Applicable√Notapplicable

(2).AccountsreceivablefinancingpledgedbytheCompanyattheendoftheperiod

□Applicable√Notapplicable

(3).Accountsreceivablefinancingthathasbeenendorsedordiscountedbythe

Companyattheendoftheperiodandhasnotyetmaturedonthebalancesheetdate

□Applicable√Notapplicable

(4).Categorizeddisclosurebasedonthebaddebtprovisionmethod

□Applicable√NotapplicableAccountsreceivableforwhichbaddebtprovisionismadeindividually:

□Applicable√NotapplicableExplanationformakingbaddebtprovisionforaccountsreceivableindividually:

□Applicable√NotapplicableExplanationformakingbaddebtprovisionforaccountsreceivablebygroup:

□Applicable√NotapplicableProvisionforbaddebtsbasedonthegeneralmodelofexpectedcreditlosses

□Applicable√NotapplicableClassificationbasisandbaddebtprovisionratioforeachstageNoExplanationofsignificantchangesinthefinancingbookbalanceofaccountsreceivablewithchangesinlossprovisionsinthisperiod:

□Applicable√Notapplicable

(5).Provisionsforbaddebts

□Applicable√NotapplicableInwhichtherecoveredorreversedamountisimportant:

□Applicable√NotapplicableOthernotes:

No

(6).Accountsreceivablefinancingactuallywrittenoffinthisperiod

□Applicable√NotapplicableAmongthem,importantaccountsreceivablefinancingwrittenoff

□Applicable√NotapplicableExplanationofwriting-off:

□Applicable√Notapplicable

(7).Changesinaccountsreceivablefinancingandchangesinfairvalueinthisperiod:

□Applicable√Notapplicable

(8).Otherstatements

□Applicable√Notapplicable

8.Prepayments

(1).Presentationofprepaymentbyage

√Applicable□Notapplicable

Unit:RMB

Explanationforfailuretosettletheprepaymentswithanaccountagelongerthanoneyearandinimportantamounts:

No

(2).Prepaymentstothefivesupplierswiththehighestclosingbalance

√Applicable□Notapplicable

Unit:RMB

Othernotes:

NoOthernotes:

□Applicable√Notapplicable

9.OtherreceivablesPresentationofitems

√Applicable□Notapplicable

Unit:RMB

Othernotes:

□Applicable√NotapplicableInterestreceivable

(1).Classificationofinterestreceivable

□Applicable√Notapplicable

(2).Significantoverdueinterest

□Applicable√Notapplicable

(3).Categorizeddisclosurebasedonthebaddebtprovisionmethod

□Applicable√NotapplicableAccountsreceivableforwhichbaddebtprovisionismadeindividually:

□Applicable√NotapplicableExplanationformakingbaddebtprovisionforaccountsreceivableindividually:

□Applicable√Notapplicable

Explanationformakingbaddebtprovisionforaccountsreceivablebygroup:

□Applicable√Notapplicable

(4).Provisionforbaddebtsbasedonthegeneralmodelofexpectedcreditlosses

□Applicable√NotapplicableClassificationbasisandbaddebtprovisionratioforeachstageNoExplanationofsignificantchangesinthebookbalanceofinterestreceivableduetochangesinlossprovisionsinthisperiod:

□Applicable√Notapplicable

(5).Provisionsforbaddebts

□Applicable√NotapplicableInwhichtherecoveredorreversedamountisimportant:

□Applicable√NotapplicableOthernotes:

No

(6).Interestreceivableactuallywrittenoffinthisperiod

□Applicable√NotapplicableImportantinterestreceivablewrittenoffamongthem

□Applicable√NotapplicableExplanationofwriting-off:

□Applicable√NotapplicableOthernotes:

□Applicable√NotapplicableDividendreceivable

(1).Dividendreceivable

□Applicable√Notapplicable

(2).Importantdividendreceivablewithanaccountagelongerthan1year

□Applicable√Notapplicable

(3).Categorizeddisclosurebasedonthebaddebtprovisionmethod

□Applicable√NotapplicableAccountsreceivableforwhichbaddebtprovisionismadeindividually:

□Applicable√NotapplicableExplanationformakingbaddebtprovisionforaccountsreceivableindividually:

□Applicable√Notapplicable

Explanationformakingbaddebtprovisionforaccountsreceivablebygroup:

□Applicable√Notapplicable

(4).Provisionforbaddebtsbasedonthegeneralmodelofexpectedcreditlosses

□Applicable√NotapplicableClassificationbasisandbaddebtprovisionratioforeachstageNoExplanationofsignificantchangesinthebookbalanceofdividendsreceivableduetochangesinlossprovisionsinthisperiod:

□Applicable√Notapplicable

(5).Provisionsforbaddebts

□Applicable√NotapplicableInwhichtherecoveredorreversedamountisimportant:

□Applicable√NotapplicableOthernotes:

No

(6).Dividendsreceivableactuallywrittenoffinthisperiod

□Applicable√NotapplicableImportantdividendreceivableswrittenoffamongthem

□Applicable√NotapplicableExplanationofwriting-off:

□Applicable√NotapplicableOthernotes:

□Applicable√NotapplicableOtherreceivables

(1).Disclosurebasedonaccountage

√Applicable□Notapplicable

Unit:RMB