国联股份(603613) - 2024 Q2 - 季度财报(更正)

Section 1 Definitions Common Terms and Definitions This section provides definitions for key terms used in the report, ensuring clarity and understanding of the content - Company/The Company/The Corporation/Guolian: Refers to Beijing Guolian Vsun Information Technology Co, Ltd[14] - Controlling Shareholders, Actual Controllers: Refers to Liu Quan and Qian Xiaojun[14] - Duoduo Platforms: Refers to the B2B vertical e-commerce platforms of various Duoduo e-commerce companies, focusing on B2B services for different industrial chains[18] - Guolian Cloud: The company provides various digital technology services for industries and enterprises through its Guolian Cloud technology segment[18] - Reporting Period: Refers to January 1, 2024 - June 30, 2024[18] Section 2 Company Profile and Key Financial Indicators Company Information This section presents the company's basic information, including its name and legal representative - Company Chinese Name: 北京国联视讯信息技术股份有限公司[20] - Company Chinese Abbreviation: 国联股份[20] - Company Legal Representative: Qian Xiaojun[20] Contact Persons and Methods This section provides contact information for the company's Board Secretary and Securities Affairs Representative - Board Secretary: Pan Yong, Tel: 010-63729108, Email: dongmiban@ueiibi.com[21] - Securities Affairs Representative: Wei Hongxia, Tel: 010-63729108, Email: dongmiban@ueiibi.com[21] Changes in Basic Information This section discloses the change in the company's registered address during the reporting period - Date of Change in Registered Address: April 10, 2023[22] - New Address: 9th Floor, Building 3, Zone 6, No 188 South Fourth Ring West Road, Fengtai District, Beijing[22] Changes in Information Disclosure and Document Location This section lists the designated newspapers and website for information disclosure - Information Disclosure Newspapers: "China Securities Journal", "Shanghai Securities News", "Securities Times", "Securities Daily"[23] - Website for Semi-Annual Report: http://wwwssecomcn[23](index=23&type=chunk) Company Stock Profile This section provides information on the company's stock type, listing exchange, and stock code - Stock Type: A-Share[24] - Stock Exchange: Shanghai Stock Exchange[24] - Stock Ticker: Guolian, Stock Code: 603613[24] Key Accounting Data and Financial Indicators The company's revenue and net profit grew, but net cash flow from operating activities declined significantly Key Accounting Data and Financial Indicators for H1 2024 | Indicator | Current Period (Jan-Jun) | Same Period Last Year | Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 25,728,177,242.97 | 23,632,969,337.44 | 8.87 | | Net Profit Attributable to Shareholders | 713,055,533.58 | 643,217,463.26 | 10.86 | | Net Profit Attributable to Shareholders (Excluding Non-recurring Items) | 609,231,453.45 | 566,699,042.32 | 7.51 | | Net Cash Flow from Operating Activities | -288,812,691.21 | 712,321,621.82 | -140.55 | | Basic Earnings Per Share (Yuan/Share) | 0.99 | 0.89 | 11.24 | | Diluted Earnings Per Share (Yuan/Share) | 0.99 | 0.89 | 11.24 | | Weighted Average Return on Equity (%) | 10.36 | 11.22 | Decrease of 0.86 ppt | | Weighted Average Return on Equity (Excluding Non-recurring Items) (%) | 8.86 | 9.89 | Decrease of 1.03 ppt | Balance Sheet Data as of H1 2024 vs Year-End 2023 | Indicator | End of Current Period | End of Last Year | Change (%) | | :--- | :--- | :--- | :--- | | Net Assets Attributable to Shareholders | 7,236,368,882.30 | 6,523,271,775.77 | 10.93 | | Total Assets | 15,328,352,059.60 | 15,303,297,721.31 | 0.16 | Non-recurring Profit and Loss Items and Amounts This section lists the main non-recurring profit and loss items and their amounts, totaling 103,824,080.13 Yuan Non-recurring Profit and Loss Items and Amounts | Item | Amount (Yuan) | | :--- | :--- | | Government Grants Included in Current Profit or Loss | 170,185,665.15 | | Gains and Losses on Disposal of Non-current Assets | -106,248.56 | | Gains and Losses from Entrusted Investments or Asset Management | 72,442.04 | | Other Non-operating Income and Expenses | -197,167.33 | | Less: Income Tax Effect | 42,527,020.85 | | Minority Interest Effect (After Tax) | 23,603,590.32 | | Total | 103,824,080.13 | Section 3 Management Discussion and Analysis Industry and Main Business Overview The company operates in the B2B e-commerce and industrial internet sectors, with core businesses in industrial e-commerce, business information services, and digital technology services Industry Overview The company operates in the "Internet and Related Services" industry, with the B2B e-commerce market showing continuous growth and evolving towards vertical integration and digital supply chains - Industry Classification: The company belongs to "I64 Internet and Related Services" and "6431 Internet Production Service Platform"[33] - B2B E-commerce Market Size: China's industrial e-commerce market reached 33.89 trillion Yuan in 2023, a year-on-year increase of 7.92%[34] - Development Trends: B2B vertical e-commerce platforms are driving the rapid development of industrial e-commerce, deeply integrating with digital supply chains, and promoting the implementation of industrial internet solutions[34][35][37] - Company Advantages: The company's Duoduo e-commerce platforms are rooted in the industrial sector, with a team possessing composite knowledge and extensive practical experience[34] - Supply Chain SaaS Services: The company provides free supply chain SaaS services such as Cloud ERP, smart logistics sharing systems, and digital warehousing through its Duoduo platforms[36] - Policy Recognition: The company has been recognized multiple times as a demonstration enterprise for supply chain innovation and application by national ministries[36][38] Main Business Overview The company's main businesses include industrial e-commerce, business information services, and digital technology services, emphasizing a hybrid online-offline model and industrial chain extension Company's Main Business Types and Platforms | Business Type | Business Platform | Business Segment | Business Description | | :--- | :--- | :--- | :--- | | Industrial E-commerce (Online Commodity Trading) | Duoduo Platforms (Tuduoduo, Weiduoduo, Boduoduo, etc) | Proprietary E-commerce, Third-party E-commerce, SaaS Services | Provides online trading of industrial products and raw materials, matchmaking services, and SaaS services like Cloud ERP and smart logistics | | Business Information Services | Guolian Resource Network | Business Opportunities, Exhibitions, Advertising; Data, Information | Offers online supply and demand information, marketing, offline exhibitions, industry news, data products, and advertising services | | Digital Technology Services (Internet Technology Services) | Guolian Cloud | Solution Cloud Application Services | Develops and builds digital technology and big data service systems, providing industrial internet solutions and digital supply chain platform services | - Business Model: The company operates as a B2B e-commerce and industrial internet platform, generating revenue through information services, e-commerce transactions, and SaaS services[42] - Marketing Model: Online commodity trading acquires customers through online traffic, resource conversion, and offline promotion; business information services leverage the Guolian Resource Network to attract and convert members[45][46][47][48] Core Competitiveness Analysis The company's core competitiveness lies in the synergy between its business segments, a stable management team, a unique organizational structure, and strong technological capabilities - Value Interaction Synergy: Guolian Resource Network supports Duoduo e-commerce with industry resources and customer conversion, while Guolian Cloud provides digital tools, creating efficient synergy between business segments[49][50] - Online-Offline Synergy: The company combines offline matchmaking events with online transactions to efficiently acquire seed users and expand its market presence[51] - Management Team Advantage: The management team is stable, with over 10 years of industry experience, enabling accurate trend prediction and performance growth[52] - Unique Organizational Structure: A front-middle-back office structure combines specialized industry teams with centralized technology and functional support, ensuring both agility and efficiency[53] - Technological Advantage: The company possesses a mature technology team and has independently developed 85 patents and 1,142 copyrights, focusing on cloud computing, IoT, big data, AI, and blockchain[54][55] - Customer Resource Advantage: A large member base has been accumulated through various channels, making Guolian Resource Network and Duoduo e-commerce leading platforms in their respective vertical industries[56] - Duoduo E-commerce Competitive Advantage: Leveraging over a decade of industry experience, the platforms rapidly gain market share through strategies like collective purchasing, category expansion, and deep supply chain integration[57] - Policy Support Advantage: The company has received numerous national and local recognitions and is listed in the Fortune China 500[58][59][60] Discussion and Analysis of Operating Conditions During the reporting period, the company actively implemented its industrial internet strategy, enhancing its core business capabilities and achieving rapid growth - Business Information Services: Optimized the structure of Guolian Resource Network to enhance service capabilities and member stickiness, and developed a proprietary big data algorithm and system[61][62] - Online Commodity Trading (Industrial E-commerce): Advanced the Duoduo platforms' transaction business by implementing upstream and downstream strategies, expanding market share, and exploring new profit growth points through digital factories[63] - Digital Technology Services (Internet Technology Services): Promoted the R&D of Guolian Cloud's digital technology and big data service systems, and provided digital cloud application services to clients through the Guolian Digital Economy Ecological Alliance[64] Main Operating Activities During the Reporting Period This section analyzes changes in the company's financial statements, asset and liability structure, and investment activities during the reporting period Analysis of Main Business Operations Revenue and cost of sales grew, but rising operating expenses and a significant increase in finance costs led to a sharp decline in net cash flow from operating activities Analysis of Changes in Financial Statement Items | Item | Current Period (Yuan) | Same Period Last Year (Yuan) | Change (%) | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 25,728,177,242.97 | 23,632,969,337.44 | 8.87 | Growth in online commodity trading volume on Duoduo e-commerce platforms | | Operating Cost | 24,425,357,741.08 | 22,462,078,598.72 | 8.74 | Increased procurement costs in line with business growth | | Selling Expenses | 137,347,829.04 | 119,379,837.87 | 15.05 | Increased sales staff compensation and entertainment expenses due to revenue growth | | Administrative Expenses | 65,033,597.18 | 52,532,216.65 | 23.80 | Increased depreciation, amortization, and consulting fees | | Finance Costs | 43,463,308.22 | -6,506,754.98 | 767.97 | Increased interest expenses | | R&D Expenses | 74,104,587.27 | 71,733,088.12 | 3.31 | Increased investment in research and development | | Net Cash Flow from Operating Activities | -288,812,691.21 | 712,321,621.82 | -140.55 | Increased operational difficulties | | Net Cash Flow from Investing Activities | -171,874,638.27 | 624,051,870.87 | -127.54 | Increased purchases of time deposits and structured deposits | | Net Cash Flow from Financing Activities | -517,797,953.12 | 368,988,763.64 | -240.33 | Increased loan repayments | Analysis of Assets and Liabilities Trading financial assets, inventories, and other non-current financial assets increased significantly, while notes receivable and accounts payable decreased Changes in Assets and Liabilities | Item | Current Period-End (Yuan) | % of Total Assets | Prior Period-End (Yuan) | % of Total Assets | Change (%) | Explanation | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Trading Financial Assets | 9,294,527.24 | 0.06 | 2,367,527.24 | 0.02 | 292.58 | Purchase of wealth management products and structured deposits | | Notes Receivable | 1,009,800.00 | 0.01 | 13,891,052.91 | 0.09 | -92.73 | Acceptance of matured notes | | Inventories | 574,409,072.44 | 3.75 | 393,626,555.73 | 2.57 | 45.93 | Increased stock preparation | | Other Non-current Financial Assets | 83,630,673.74 | 0.55 | 52,130,673.74 | 0.34 | 60.43 | Increased external investments | | Development Expenditures | 8,755,493.25 | 0.06 | 46,576,666.26 | 0.30 | -81.20 | Internal projects completed and transferred to intangible assets | | Accounts Payable | 239,171,892.90 | 1.56 | 492,588,029.87 | 3.22 | -51.45 | Increased payments for goods | - Overseas Assets: Overseas assets amounted to 50,289,029.22 Yuan, accounting for 0.33% of total assets[72] Major Restricted Assets | Item | Closing Book Value (Yuan) | Reason for Restriction | | :--- | :--- | :--- | | Other Monetary Funds | 2,563,637,233.92 | Pledged time deposits for guarantees | | Bank Deposits | 1,013,186.53 | Property security deposit | | Notes Receivable | 1,009,800.00 | Underecognized commercial acceptance bills | | Fixed Assets | 12,840,168.55 | Pledged for mortgage loans | | Accounts Receivable | 4,046,152.45 | Underecognized accounts receivable | Analysis of Investment Status This section discloses the company's overall external equity investments and financial assets measured at fair value - External Equity Investments: The company holds equity investments in several partnership enterprises and subsidiaries, with shareholding ratios ranging from 2.8571% to 33.30%[75][76] Financial Assets Measured at Fair Value | Asset Class | Opening Balance (Yuan) | Fair Value Change P/L (Yuan) | Purchases (Yuan) | Closing Balance (Yuan) | | :--- | :--- | :--- | :--- | :--- | | Trading Financial Assets | 2,367,527.24 | 72,442.04 | 6,854,557.96 | 9,294,527.24 | | Accounts Receivable Financing | 1,251,652,209.16 | - | 283,883,637.15 | 1,535,535,846.31 | | Other Equity Instrument Investments | 28,695,047.60 | - | 1,966,315.08 | 30,661,362.68 | | Other Non-current Financial Assets | 52,130,673.74 | - | 31,500,000.00 | 83,630,673.74 | | Total | 1,334,845,457.74 | 72,442.04 | 324,204,510.19 | 1,659,122,409.97 | Other Disclosures The company faces various risks including economic cycles, policy changes, and technology advancements, and has implemented corresponding countermeasures Potential Risks The company faces multiple risks, including macroeconomic cycles, policy changes, system security, technological advancements, and commodity price volatility - Macroeconomic Cycle Risk: The company's SME clients are susceptible to economic downturns, which could reduce their spending on B2B platform services[79] - Policy Risk: Changes in internet industry policies could affect the company's business, and business innovations may face legal risks[80] - Internet System Risk: Network infrastructure failures or cyber-attacks could disrupt website access, impacting operations and market image[82] - Risk of False or Infringing Information: Despite review procedures, the company cannot completely prevent members from posting illegal or false information, which could lead to legal liabilities[83] - Business Model Upgrade Risk: Market competition and insufficient R&D capabilities may affect the effectiveness of business model upgrades and future performance[84] - E-commerce System Security Risk: Server failures or data breaches could lead to the loss of customer information, damaging the company's reputation[85] - Technological Advancement Risk: Failure to keep pace with new technologies could diminish the company's competitiveness[87] - High Prepayment Risk: The company maintains high prepayments to secure goods supply, which could pose a risk if the economy or industry declines[88] - Commodity Price Fluctuation Risk: Price volatility of main commodities could impact profitability, a risk that persists despite mitigation strategies[89] - Countermeasures: The company will enhance its core business capabilities, strengthen platform information control systems, and ensure regulatory compliance for new business initiatives[90] Section 4 Corporate Governance Shareholders' Meeting Summary The 2023 Annual General Meeting was held, and all resolutions, including the annual report and profit distribution plan, were passed with high approval rates - Meeting Session: 2023 Annual General Meeting[92] - Meeting Date: May 21, 2024[92] - Resolution Disclosure Date: May 22, 2024[92] - Key Resolutions Passed: Included the 2023 annual report, board and supervisory committee work reports, profit distribution plan, auditor reappointment, and amendments to the Articles of Association[92][94] - Meeting Outcome: All resolutions proposed at the shareholders' meetings in the first half of 2024 were passed with high approval rates[95] Profit Distribution or Capitalization of Capital Reserve Plan The company will not distribute profits or implement a capitalization of capital reserves for the first half of 2024 - Distribution or Capitalization: No[97] - Bonus Shares per 10 Shares: 0 shares[97] - Cash Dividend per 10 Shares: 0 Yuan[97] - Capitalization Shares per 10 Shares: 0 shares[97] Section 5 Environment and Social Responsibility Environmental Information The company actively implements carbon reduction measures and helps industrial chain enterprises improve energy efficiency through digital transformation - Carbon Reduction Measures: Yes[101] - Types of Measures: Implemented green construction practices and pollution prevention measures in its projects[101] - Carbon Reduction Effects: Through its "Digital Technology + Digital Factory" model, the company has helped dozens of enterprises increase production efficiency by 15-30% and reduce energy consumption by 5-10%[101] Consolidating and Expanding Achievements in Poverty Alleviation and Rural Revitalization The company invested 1.0769 million Yuan in rural revitalization projects, focusing on e-commerce development and training, benefiting 150 people - Total Investment: 1.0769 million Yuan (in funds)[102] - Rural Revitalization Projects: Included e-commerce promotion, logistics center construction, and e-commerce training in Anyue County and Jiuzhaigou County[102] - Beneficiaries: The projects benefited 150 people[102] Section 6 Significant Matters Fulfillment of Commitments The controlling shareholders have strictly adhered to their commitments regarding share lock-ups and avoidance of horizontal competition made during the IPO - Commitment Parties: Controlling shareholders and actual controllers, Liu Quan and Qian Xiaojun[104] - Commitment Types: Share lock-up, avoidance of horizontal competition[104] - Commitment Details: Included long-term shareholding, restrictions on share sales post-lock-up period, and a pledge not to engage in businesses that compete with the company[105][106][107][108] - Fulfillment Status: Yes, commitments were strictly and timely fulfilled[104] Violations, Penalties, and Rectification of the Company and Its Management The company and its executives received disciplinary actions for information disclosure violations, and an investigation by the CSRC is ongoing - Disciplinary Action: Received a public censure for the company and key executives from the Shanghai Stock Exchange on August 8, 2023[110] - Rectification Status: The company submitted a rectification report on September 1, 2023[110] - Regulatory Measures and Investigation: Received a warning letter from the CSRC Beijing Bureau and was placed under investigation for suspected information disclosure violations on December 26, 2023[110][111] - Investigation Progress: As of the report disclosure date, the CSRC investigation is still in progress[111] Integrity Status of the Company and Its Controlling Shareholders During the reporting period, the company and its controlling shareholders had no instances of dishonesty or failure to fulfill court judgments or significant debts - Integrity Status: No instances of dishonesty[112] - Debt Fulfillment: No unfulfilled court judgments or overdue significant debts[112] Progress on the Use of Raised Funds This section details the use of raised funds, noting that some investment projects have been delayed due to macroeconomic factors and construction difficulties Overall Use of Raised Funds The company raised 2.42 billion Yuan net, with a cumulative investment progress of 62.29% as of the end of the reporting period Overall Use of Raised Funds | Indicator | Amount (Yuan) | | :--- | :--- | | Total Funds Raised | 2,466,066,635.50 | | Net Funds Raised After Expenses | 2,415,959,147.71 | | Cumulative Investment of Raised Funds (as of period-end) | 1,504,942,486.18 | | Cumulative Investment Progress of Raised Funds (%) | 62.29 | | Amount Invested This Year | 52,299,710.71 | | Percentage of Amount Invested This Year (%) | 2.17 | Details of Investment Projects Several investment projects, including the Digital Economy Headquarters, have been delayed but are proceeding without significant changes to their feasibility Progress of Investment Projects | Project Name | Committed Investment (Yuan) | Cumulative Investment (Yuan) | Investment Progress (%) | Scheduled Completion Date | Major Change in Feasibility | | :--- | :--- | :--- | :--- | :--- | :--- | | Guolian Digital Economy Headquarters Construction Project | 331,228,363.45 | 276,932,573.38 | 83.61 | Dec 2024 | No | | AI-based Big Data Production and Analysis System R&D Project | 478,281,863.45 | 220,397,636.28 | 46.08 | Dec 2024 | No | | IoT Support System R&D Project for Network Freight and Smart Supply Chain | 601,458,598.95 | 181,206,585.34 | 30.13 | Dec 2025 | No | | Cloud-based Enterprise Digital System Integration Platform R&D Project | 463,418,863.45 | 284,834,232.77 | 61.46 | Dec 2024 | No | | Supplementary Working Capital | 541,571,458.41 | 541,571,458.41 | 100.00 | N/A | N/A | - Project Delay Explanation: The Digital Economy Headquarters project was delayed by macroeconomic factors and is expected to be completed by the end of 2024; the IoT Support System project was delayed due to implementation complexities and is now expected to be completed by December 2025[119] Other Uses of Raised Funds The company used 900 million Yuan of idle raised funds to temporarily supplement working capital for a period not exceeding 12 months - Use of Idle Raised Funds for Working Capital: The company approved the use of 900 million Yuan of idle raised funds to temporarily supplement working capital for up to 12 months, starting from January 2, 2024[121] Section 7 Changes in Share Capital and Shareholders Changes in Share Capital The company's share capital structure remained unchanged during the reporting period, but total share capital decreased after the period due to the cancellation of repurchased shares - Share Capital Structure During Reporting Period: No changes occurred[125] - Post-Reporting Period Share Changes: On July 22, 2024, the company completed the cancellation of some repurchased shares, reducing the total share capital from 722,333,313 to 720,537,813 shares[126] - Impact: This change did not affect the earnings per share or net assets per share for the period up to the semi-annual report disclosure date[127] Shareholder Information As of the period-end, the company had 48,883 common shareholders, with Qian Xiaojun and Liu Quan being the controlling shareholders and acting in concert - Total Number of Common Shareholders: 48,883 as of the end of the reporting period[128] Top Ten Shareholders | Shareholder Name | Shares Held | Percentage (%) | Share Status | Quantity (Shares) | Shareholder Nature | | :--- | :--- | :--- | :--- | :--- | :--- | | Qian Xiaojun | 125,224,678 | 17.34 | Pledged | 15,720,000 | Domestic Individual | | Liu Quan | 124,000,439 | 17.17 | None | 0 | Domestic Individual | | China Merchants Anhe Bond Securities Investment Fund | 27,740,095 | 3.84 | None | 0 | Other | | Jin Leili | 11,051,266 | 1.53 | None | 0 | Domestic Individual | | China Merchants Ruiyang Equity and Bond Allocation Hybrid Securities Investment Fund | 8,540,158 | 1.18 | None | 0 | Other | | Jiang Ming | 8,394,009 | 1.16 | None | 0 | Domestic Individual | | Zhejiang Bubusheng Information Technology Co, Ltd | 7,382,236 | 1.02 | None | 0 | Other | | Kunshan Jiacheng Youxuan Venture Capital Partnership (LP) | 6,831,471 | 0.95 | None | 0 | Other | | China Merchants Anfu 1-Year Open-ended Bond Securities Investment Fund | 5,444,560 | 0.75 | None | 0 | Other | | Wei Shangyun | 5,364,395 | 0.74 | None | 0 | Domestic Individual | - Related Parties or Concerted Action: Liu Quan and Qian Xiaojun are parties acting in concert[131] Section 8 Preferred Shares Preferred Shares Information The company had no preferred shares during the reporting period - Not applicable[135] Section 9 Bonds Bond Information The company had no corporate bonds, non-financial enterprise debt financing instruments, or convertible bonds during the reporting period - Not applicable[136] Section 10 Financial Report Audit Report This semi-annual report has not been audited - This semi-annual report has not been audited[6] Financial Statements This section contains the consolidated and parent company financial statements for the first half of 2024, presenting a comprehensive view of the company's financial position and performance Consolidated Balance Sheet This statement presents the company's consolidated assets, liabilities, and equity as of June 30, 2024 Parent Company Balance Sheet This statement presents the parent company's assets, liabilities, and equity as of June 30, 2024 Consolidated Income Statement This statement presents the company's consolidated operating results for the first half of 2024 Parent Company Income Statement This statement presents the parent company's operating results for the first half of 2024 Consolidated Cash Flow Statement This statement presents the company's consolidated cash flows from operating, investing, and financing activities for the first half of 2024 Parent Company Cash Flow Statement This statement presents the parent company's cash flows from operating, investing, and financing activities for the first half of 2024 Consolidated Statement of Changes in Equity This statement presents the changes in the company's consolidated equity components during the first half of 2024 Parent Company Statement of Changes in Equity This statement presents the changes in the parent company's equity components during the first half of 2024 Company Basic Information This section provides the company's registration information, history, registered capital, legal representative, and business scope, with Liu Quan and Qian Xiaojun as the actual controllers - Company Full Name: Beijing Guolian Vsun Information Technology Co, Ltd[169] - Listing Date: July 30, 2019, on the Shanghai Stock Exchange, stock code 603613[169] - Registered Capital: 720.54 million Yuan (after cancellation of repurchased shares on July 22, 2024)[170][171] - Legal Representative: Qian Xiaojun[171] - Actual Controllers: Liu Quan, Qian Xiaojun[172] - Business Scope: Covers technology services, software development, e-commerce, advertising, exhibitions, and information consulting[171][172] Basis of Preparation of Financial Statements The financial statements are prepared in accordance with the Accounting Standards for Business Enterprises and on a going concern basis - Basis of Preparation: Prepared in accordance with the "Accounting Standards for Business Enterprises" issued by the Ministry of Finance[173] - Preparation Foundation: Going concern[174] Significant Accounting Policies and Estimates This section details the company's accounting policies for key areas such as financial instruments, inventory, revenue recognition, and government grants - Statement of Compliance with Accounting Standards: The financial statements comply with the requirements of the Accounting Standards for Business Enterprises[175] - Accounting Period: The fiscal year is from January 1 to December 31[176] - Operating Cycle: 12 months[178] - Financial Instruments Classification and Measurement: Financial assets are classified into three categories based on business models and contractual cash flow characteristics; financial liabilities are classified into two categories[192][193] - Revenue Recognition: Revenue is recognized when the customer obtains control of the related goods or services[243] - Government Grants: Grants are classified as asset-related or income-related and are recognized when conditions are met and the grants are received[254][255] Taxes This section discloses the company's main taxes and tax rates, including various preferential corporate income tax policies enjoyed by its subsidiaries Main Taxes and Tax Rates | Tax Type | Tax Rate | | :--- | :--- | | Value-Added Tax (VAT) | 13%, 9%, 6% | | Urban Maintenance and Construction Tax | 7%, 5% | | Corporate Income Tax (CIT) | 25%, 20%, 17%, 9%, Exempt | - Preferential CIT Policies: Various subsidiaries enjoy tax exemptions or reduced CIT rates of 9% or 15% due to their location in special economic zones, classification as high-tech enterprises, or status as small and micro enterprises[271][272][273][274][275] - VAT Exemption: Interest income from intra-group lending under the unified borrowing and lending arrangement is exempt from VAT[275] Notes to Consolidated Financial Statements This section provides detailed explanations for items in the consolidated financial statements, including their balances, changes, and accounting treatments - Cash and Cash Equivalents: Closing balance of 6.23 billion Yuan, with 2.56 billion Yuan restricted for pledges and guarantees[278][363] - Trading Financial Assets: Closing balance of 9.29 million Yuan, mainly consisting of bank wealth management products[280] - Notes Receivable: Closing balance of 1.01 million Yuan, a decrease of 92.73% from the beginning of the period, mainly due to the acceptance of matured notes[281][70] - Accounts Receivable: Closing book value of 997.15 million Yuan, with a bad debt provision of 17.63 million Yuan[290][291] - Inventories: Closing book value of 574.41 million Yuan, an increase of 45.93% from the beginning of the period, mainly due to increased stock preparation[319][70] - Construction in Progress: Closing balance of 335.53 million Yuan, primarily for the Guolian Digital Economy Headquarters project[342] - Intangible Assets: Closing book value of 212.60 million Yuan, with internally developed assets accounting for 14.79% of the balance[349] - Short-term Borrowings: Closing balance of 1.87 billion Yuan, a decrease from the beginning of the period[366] - Notes Payable: Closing balance of 2.70 billion Yuan, an increase from the beginning of the period[365] - Accounts Payable: Closing balance of 239.17 million Yuan, a decrease of 51.45% from the beginning of the period, mainly due to increased payments for goods[367][70] - Contract Liabilities: Closing balance of 1.15 billion Yuan, a decrease from the beginning of the period[369] - Long-term Payables: Closing balance of 747.56 million Yuan, mainly related to capital injections for subsidiaries[390][392] - Operating Revenue: 25.73 billion Yuan for the period, primarily from online commodity trading[406][405] - Operating Cost: 24.43 billion Yuan for the period, growing in line with operating revenue[406][66] - Finance Costs: 43.46 million Yuan for the period, a significant increase year-over-year, mainly due to higher interest expenses[416][67] - Other Income: 169.38 million Yuan for the period, primarily from government grants[414] - Credit Impairment Loss: 10.04 million Yuan for the period, mainly from bad debt losses on prepayments[417] - Asset Impairment Loss: 24.57 million Yuan for the period, mainly from inventory write-downs[420] - Income Tax Expense: 270.14 million Yuan for the period[424] R&D Expenses Total R&D expenditure was 82.99 million Yuan, with 74.10 million Yuan expensed and 8.88 million Yuan capitalized R&D Expenditure Composition | Item | Current Period (Yuan) | Prior Period (Yuan) | | :--- | :--- | :--- | | Technical Service Fees | 22,746,942.74 | 95,015,850.17 | | Employee Compensation | 43,230,031.36 | 41,179,429.22 | | Depreciation and Amortization | 10,584,130.71 | 10,185,822.49 | | Consulting Service Fees | 4,338,937.45 | 2,617,078.00 | | Office and Communication Fees | 2,087,425.91 | 447,417.82 | | Total | 82,987,468.17 | 149,445,597.70 | | Of which: Expensed R&D | 74,104,587.27 | 71,733,088.12 | | Capitalized R&D | 8,882,880.90 | 77,712,509.58 | - Capitalized R&D Projects: Include projects related to AI-based big data analysis systems, IoT support systems for smart supply chains, and cloud-based enterprise digital integration platforms[447] Changes in Consolidation Scope The consolidation scope changed with the deregistration of 5 subsidiaries and the establishment of 13 new ones to optimize business structure - Deregistered Companies: Included Yiyou Duoduo (Tianjin) Technology Co, Ltd and four other subsidiaries[448] - Newly Established Companies: Included Guolian Zhixuan (Shanghai) Internet Technology Co, Ltd, Wuxi Xinduoduo Technology Co, Ltd, and eleven other subsidiaries[449][450] Interests in Other Entities This section discloses the company's interests in subsidiaries, joint ventures, and associates, including their financial information - Corporate Group Structure: The company has numerous subsidiaries, such as Beijing Tuduoduo E-commerce Co, Ltd, with ownership stakes typically at 100% or over 80%[451][452] - Significant Non-wholly Owned Subsidiaries: Beijing Tuduoduo E-commerce Co, Ltd, Beijing Boduoduo E-commerce Co, Ltd, Beijing Weiduoduo E-commerce Co, Ltd, and Ningbo Liangheyou Duoduo E-commerce Co, Ltd[454] Key Financial Information of Significant Non-wholly Owned Subsidiaries | Subsidiary Name | Current Period Revenue (Yuan) | Current Period Net Profit (Yuan) | | :--- | :--- | :--- | | Beijing Tuduoduo E-commerce Co, Ltd | 13,939,805,462.85 | 568,654,427.06 | | Beijing Boduoduo E-commerce Co, Ltd | 896,595,321.79 | 48,924,201.68 | | Beijing Weiduoduo E-commerce Co, Ltd | 4,578,555,258.17 | 142,852,804.79 | | Ningbo Liangheyou Duoduo E-commerce Co, Ltd | 3,454,784,538.02 | 78,022,886.54 | - Significant Joint Ventures or Associates: Includes Xinjiang Jianzi Zhongyi Petrochemical Co, Ltd and three other entities[459] Government Grants The company recognized a total of 170.19 million Yuan in government grants, comprising 169.72 million Yuan related to income and 0.47 million Yuan related to assets Government Grants Included in Current Profit or Loss | Type | Current Period (Yuan) | Prior Period (Yuan) | | :--- | :--- | :--- | | Income-related | 169,720,665.15 | 104,603,632.18 | | Asset-related | 465,000.00 | 465,000.00 | | Total | 170,185,665.15 | 105,068,632.18 | - Deferred Income: The closing balance of deferred income was 1.58 million Yuan, representing government grants to be amortized[465] Risks Related to Financial Instruments The company faces credit, liquidity, and market risks, which are managed through a board-approved risk management framework - Financial Risks Faced: Credit risk, liquidity risk, and market risk (including currency, interest rate, and other price risks)[468][471] - Risk Management: The Board of Directors establishes the risk management framework, while the risk management committee identifies and mitigates risks[468] - Credit Risk Management: Managed by assessing customer creditworthiness and monitoring credit records[469] - Liquidity Risk: The risk of encountering difficulties in meeting obligations associated with financial liabilities that are settled by delivering cash[470] - Market Risk: The risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices[471] Fair Value Disclosure This section discloses the fair value of assets and liabilities, primarily including trading financial assets and other equity investments, and explains the valuation techniques used - Total Assets Measured at Fair Value on a Recurring Basis: 1,659,122,409.97 Yuan[478] - Fair Value Measurement Items: Includes trading financial assets (9.29 million Yuan), other equity instrument investments (30.66 million Yuan), accounts receivable financing (1.54 billion Yuan), and other non-current financial assets (83.63 million Yuan)[477] - Valuation Techniques: Fair values are determined based on closing net values for wealth management products, cost for recent equity investments, and face value for short-term accounts receivable financing[479][480] Related Parties and Related Party Transactions This section details transactions with related parties, including sales, purchases, guarantees, and outstanding balances - Related Party Purchases: Totaled 1.55 billion Yuan in the current period, primarily with entities like Xinjiang Jiantou Energy Chemical Co, Ltd[485] - Related Party Sales: Totaled 284.86 million Yuan in the current period, primarily with entities like Sichuan Shengfeng Titanium Industry Co, Ltd[486] - Related Party Guarantees: The company provided guarantees for several subsidiaries, with amounts ranging from 8 million to 100 million Yuan; all guarantees were outstanding at period-end[487][488][489] - Key Management Personnel Compensation: Totaled 9.87 million Yuan for the current period[490] - Receivables from Related Parties: Closing balance of accounts receivable was 33.62 million Yuan, and prepayments were 84.18 million Yuan[492] - Payables to Related Parties: Closing balance of accounts payable was 24.00 million Yuan, and contract liabilities were 26.44 million Yuan[494] Share-based Payment The company had no share-based payment arrangements during the reporting period - Not applicable[496] Commitments and Contingencies The company has contingent liabilities arising from providing joint liability and mortgage guarantees for loans to its subsidiaries - Intra-group Guarantees: The company provided guarantees for numerous subsidiaries, with amounts ranging from 5 million to 100 million Yuan, all of which were outstanding at the end of the period[497][499][501][504] Post-Balance Sheet Events There were no significant non-adjusting events, profit distributions, or sales returns between the balance sheet date and the financial statement approval date - Not applicable[505] Other Significant Matters This section discloses the ongoing CSRC investigation and the company's determination of reportable segments based on its internal structure - CSRC Investigation: The company was placed under investigation by the CSRC on December 26, 2023, for suspected information disclosure violations; the case is still ongoing[508] - Reportable Segments: The company has identified three types of reportable segments: product, geographical, and industry[506] - Industry Segment Financial Information: The coating and chemical industry segment generated 13.94 billion Yuan in revenue and incurred 13.14 billion Yuan in operating costs during the period[507] Notes to Parent Company Financial Statements This section provides detailed notes on key items in the parent company's financial statements, including receivables, long-term equity investments, and revenue - Accounts Receivable: Closing book value of 2.00 million Yuan, with a bad debt provision of 0.82 million Yuan[193] - Other Receivables: Closing balance of 3.14 billion Yuan, primarily consisting of inter-company current accounts[198][524] - Long-term Equity Investments: Closing book value of 552.12 million Yuan, mainly investments in subsidiaries[532] - Operating Revenue: 133.93 million Yuan for the period, primarily from internet technology and business information services[537][538] - Investment Income: -841.66 Yuan for the period, mainly from long-term equity investments accounted for using the equity method[541] Supplementary Information This section provides supplementary information, including a detailed schedule of non-recurring profit and loss and calculations for ROE and EPS - Total Non-recurring Profit and Loss: 103,824,080.13 Yuan[543] Return on Equity (ROE) and Earnings Per Share (EPS) | Item | ROE (%) | Basic EPS | Diluted EPS | | :--- | :--- | :--- | :--- | | Net Profit Attributable to Common Shareholders | 10.36 | 0.99 | 0.99 | | Net Profit Attributable to Common Shareholders (Excluding Non-recurring Items) | 8.86 | 0.85 | 0.85 |