[中报]小商品城(600415):2024年半年度报告（英文版）
原标题:小商品城:2024年半年度报告（英文版） Zhejiang China Commodities City Group Co., Ltd. Semi-annual Report for 2024 Important Statements I. The Board of Directors, the Board of Supervisors and the directors, supervisors and senior management of the Company hereby warrant the truthfulness, accuracy and completeness of the contents of this semi-annual report, guarantee that there are no false representations, misleading statements or material omissions contained in this semi-annual report, and are jointly and severally responsible for the liabilities of the Company. II. Directors’ absence from directors’ meetings
III. This semi-annual report has not been audited. IV. WANG Dong, Head of the Company, WANG Dong, Principal in charge of accounting, and ZHAO Difang, Head of the accounting department (Accounting Manager), declare that they warrant the truthfulness, accuracy and completeness of the financial report in the semi-annual report. V. The profit distribution plan for the reporting period or the plan for public reserve funds into share capital that was approved by the board of directors No VI. Risk statement with forward-looking representations √Applicable □Not applicable The forward-looking representations involved in this Report such as future plans and development strategies do not constitute the Company’s substantial commitments to investors. Investors shall watch out for the investment risks. VII. Is the Company’s cash occupied by its controlling shareholder or any of other affiliates for non-operational purposes? No VIII. Has the Company provided external guarantee in violation of the prescribed decision-making procedures? No IX. Whether there is circumstance that more than half of the directors cannot guarantee the authenticity, accuracy and completeness of the semi-annual report disclosed by the Company No X. Reminder of major risks During the reporting period, the Company did not have any significant risks that would affect its continued operations. The Company has provided a detailed description of the potential risks it may face in the "Potential Risks" part in Section III " Discussion and Analysis of Managers" of this report. XI. Others □ Applicable √Not applicable Table of Contents SECTION I. DEFINITIONS ...................................................................................................... 5 SECTION II. COMPANY PROFILE AND FINANCIAL HIGHLIGHTS .................................... 6 SECTION III. DISCUSSION AND ANALYSIS OF MANAGERS ............................................. 9 SECTION IV. CORPORATE GOVERNANCE ........................................................................ 32 SECTION V. ENVIRONMENTAL AND SOCIAL RESPONSIBILITIES ................................ 39 SECTION VI. SIGNIFICANT MATTERS ................................................................................. 40 SECTION VII. CHANGES IN SHARES AND INFORMATION OF SHAREHOLDERS .......... 52 SECTION VIII. PREFERRED SHARES .................................................................................... 59 SECTION IX. BONDS .............................................................................................................. 60 SECTION X. FINANCIAL REPORT ....................................................................................... 66
Section I. Definitions For the purpose of this Report, unless otherwise stated in the context, the following terms shall
Section II. Company Profile and Financial Highlights I. Company profile
II. Contact information
III. Introduction to changes in basic information
IV. Changes in information disclosure and filing place
V. Stock profile
VI. Other relevant information □ Applicable √Not applicable VII. Main accounting data and financial indicators of the Company (i) Main accounting data
(ii) Major financial indicators
Illustration on major accounting data and financial indicators √Applicable □Not applicable 1. The operating revenue increased by RMB 1.605 billion YoY, mainly due to the growth of market operations, commodity sales, and trade services, which increased by RMB 468 million, RMB 1.057 billion, and RMB 87 million respectively, with growth rates of 25.99%, 37.24%, and 30.63%. 2. The net profit attributable to shareholders of the Listed Company decreased by RMB 550 million YoY, due to a decrease of RMB 1.051 billion in investment income and asset disposal income, and an increase of RMB 501 million in net profit from market operations and trade services. VIII. Differences in accounting data under domestic and foreign accounting standards □ Applicable √Not applicable IX. Non-recurring gains and losses √Applicable □Not applicable Unit: RMB
If the Company recognizes non-recurring profit and loss items that are not listed in the Explanatory Announcement No. 1 on Information Disclosure of Companies Issuing Securities to the Public as non-recurring profit and loss items with significant amounts, and define non-recurring profit and loss items listed in the Explanatory Announcement No. 1 on Information Disclosure of Companies Issuing Securities to the Public as recurring profit and loss items, the reasons should be explained. □ Applicable √Not applicable X. Other □ Applicable √Not applicable Section III. Discussion and Analysis of Managers I. Description of the industry and the Company’s main business during the reporting period (I) Main business of the Company The Company is committed to building a shared trade service platform for small and medium-sized enterprises in China, with a strategic positioning of a "world-class international trade comprehensive service provider", continuously enriching and improving the three major ecosystems: commodity display and trading ecosystem, trade services ecosystem, supporting service ecosystem, and trade service ecosystem, in order to reduce trade costs, shorten trade chains, improve trade efficiency, continuously create value for the circulation of small commodities, strengthen and consolidate the advantageous position of China's daily consumer goods supply chain in global trade, and serve the new development pattern of domestic-international dual circulation. The commodity display and trading ecosystem includes offline market operation and self-operated trade product sales, trade service ecosystem includes Chinagoods online service platform, warehousing logistics and payment, credit reporting, factoring and other businesses, and supporting service ecosystem includes exhibition and hotel sectors. (II) Industry situation According to the definitions in the Guidelines for Industry Classification of Listed Companies (revised in 2012) released by the CSRC, the Company is engaged in “Business Service” (L72) in “Lease and Business Service” (L). 1. Situation of Yiwu market As a prestigious global hub for small commodity trade, Yiwu International Trade City has consistently held a dominant position in China's comprehensive market sector for several years. Boasting substantial market turnover and an extensive array of products, it has established a robust industrial cluster that underpins the circulation of small commodities. The influence of Yiwu market spans across 233 countries and regions globally, propelling the growth of 2.1 million small and medium-sized enterprises. In turn, this economic engine generates employment opportunities for a staggering 32 million industrial workers. This far-reaching influence not only solidifies Yiwu's status as a pivotal center for the global small commodity trade but also ensures that consumers across the globe have access to an eclectic and varied assortment of products. 2. Significant characteristics of Yiwu market (1) Active market entities: The Yiwu market is an important practical platform for the concept of "mass entrepreneurship and innovation". It not only drives the development of more than 20 industrial clusters, but also attracts over 15,000 resident foreign merchants and nearly 9,000 foreign-owned entities. These numbers make Yiwu an important gathering place for global merchants, known as the "World Supermarket". (2) A wide range of goods: As the world's largest small commodity distribution center, Yiwu market gathers 26 major categories and 2.1 million types of products, forming an "ocean of small commodities and paradise for shoppers ". More than ten thousand new products are launched every day, and the quality, brand and standard of small commodities are exported to the world, becoming the representative of "China-chic trend" and "supply place for bestselling goods". (3) Innovative business scenarios: The Yiwu market is an important birthplace of innovation in trade business scenarios. The pioneering market procurement trade method (with a customs supervision method code of "1039") has driven a huge growth in Yiwu's foreign trade exports in the past decade and has been promoted to 39 pilot units in China. New business forms such as import transshipment, internet celebrity live streaming, and cross-border e-commerce are constantly emerging, forming an e-commerce ecosystem for the full industry chain. The integration and development of the real economy and digital economy have enabled Yiwu to continue to lead the new trend of global trade. (4) High-quality trade ecology: Yiwu market is the preferred place for merchants and enterprises to trade small commodities. Since the pilot of the comprehensive reform of international trade, Yiwu has formed multiple national level open platforms, including the Free Trade Zone, Comprehensive Bonded Zone, Cross-border E-commerce Comprehensive Pilot Zone, and Import Trade Promotion Innovation Demonstration Zone. The logistics network has covered over 1,500 counties and cities across China and over 700 hub cities worldwide. Government, business, and life services are in line with international standards, providing comprehensive "customs, taxation, currency exchange, transportation, warehousing and financing" services, with continuously optimized the business environment. 3. Situation of Yiwu market in the first half of 2024 The Yiwu market, as a key platform connecting domestic and international trade supply chains, occupies a core position in the global small commodity supply chain and plays a crucial role in promoting internal circulation, enhancing external circulation, and serving the new development pattern of "dual circulation". As a leader and demonstration site of national market procurement trade method, Yiwu has maintained high-speed growth for years, effectively stimulating the vitality of market entities and continuously improving the level of trade facilitation. From January to June 2024, the total import and export value of Yiwu reached RMB 324.77 billion, a YoY increase of 20.7%; Among them, exports amounted to RMB 288.03 billion, a YoY increase of 21.3%; Imports amounted to RMB 36.74 billion, a YoY increase of 16.4%. Building on a high base in 2023, Yiwu's total import and export volume sustained a high growth rate. Yiwu continuously gathers new momentum in foreign trade by exploring emerging markets, building high-level open platforms, and cultivating and strengthening advantageous industries. From the perspective of trade regions, in the first half of 2024, Yiwu's imports and exports to Africa, Latin America, and ASEAN amounted to RMB 57.83 billion, RMB 53.95 billion, and RMB 33.08 billion, respectively, up 17.1%, 32.4%, and 40.2% YoY, respectively; Imports and exports to India and Saudi Arabia amounted to RMB 16.09 billion and RMB 7.9 billion respectively, up 23.5% and 17.2% YoY, respectively. The Company integrates market resources through digital means, connects various links in the supply chain, improves the efficiency of commodity circulation, and promotes the iterative upgrading of the market procurement trade method to "Version 2.0 ". Market procurement trade has become the main force driving Yiwu's export growth. In the first half of 2024, Yiwu exported RMB 232.87 billion through market procurement trade, a YoY increase of 28.7%, accounting for 80.8% of the total export value. In terms of regional trade, Southeast Asia, the Middle East and Latin America continue to occupy a high market share in the trade with Yiwu. Countries in the "Belt and Road" initiative and the RCEP region continue to bring new opportunities to the Yiwu market. “AI Internationalization” and “RMB Internationalization” have become new highlights of the Yiwu market. From the perspective of export categories, some categories have strong overseas demand. In the first half of the year, Yiwu exported RMB 8.39 billion of household appliances, a YoY increase of 51.9%; The export of automotive spare parts reached RMB 3.61 billion, a YoY increase of 33.3%; The export of sports goods and equipment reached RMB 5.02 billion, a YoY increase of 42.3%. In 2024, the Yiwu market has undergone the following changes due to the impact of the domestic and overseas trade environment (data sourced from related statistics of Yiwu Index): (1) The effect of the "Olympic Economy" continued to gain steam. Benefiting from major sports events such as the European Cup and the 2024 Paris Olympic Games, the sales of sports and related products such as Olympic bracelets, trophies, flags, and jerseys in the market have been steadily increasing. In particular, the sports equipment industry in the Third District of the International Trade City has seen significant growth in orders, with orders from Europe accounting for over 30%. (2) The phenomenon of "summer economy" has been thoroughly ignited. As temperatures climb, the demand for summer consumer goods among shoppers is intensifying. Small appliances, apparel, and sun protection cosmetics are witnessing a surge in popularity, hitting a minor sales high in the market. In the realm of finished goods, since the onset of the second quarter, market sales of products like sun-protective apparel, sun-blocking masks, and ice sleeves have seen a remarkable upswing, with MoM growth rates surpassing 50% and YoY increases exceeding 30%. As for raw materials, there has been a significant surge in demand for zippers used in sun-protective clothing, with the market witnessing a YoY rise of more than 20%. (3) The peak season for Christmas supplies procurement has started ahead of schedule. Due to the prolonged sea freight duration and the strain on transportation capacity, some international buyers have opted to purchase ahead of schedule. Middle Eastern and European clients, in particular, have been proactive in their approach, beginning to place advance orders and build up their inventories as early as February, facilitated by online sample viewings. In the first half of 2024, the Yiwu market has seen a consistent strong performance in the sales of traditional products, including Christmas costumes, Christmas trees, and Christmas decorations. Additionally, there has been a growing demand for more upscale products, such as Christmas lights and electric Christmas ornaments. (4) The heat of the "beauty economy" continued to escalate. Since the dawn of 2024, press-on nails have gradually gained popularity worldwide due to its convenience in application and removal, as well as its re-usability, making it highly favored by consumers. A group of top merchants such as Yanxue and Diefei have gathered in the market, significantly improving the competitiveness of nail products. According to the latest statistics, a range of trendy nail art styles, including the cat eye light luxury style, the Maillard style, and the sweet cool style, have become particularly popular among new customers in South American countries, with order volumes from these regions increasing by more than 30% YoY. From January to June 2024, the express delivery volume in Yiwu reached 6.007 billion pieces, a YoY increase of 16.7%. Yiwu's express delivery volume accounted for about 7% of China’s national total, ranking first among county-level cities in China. Notably, the volume of express deliveries destined for overseas countries and for Hong Kong, Macau, and Taiwan, reached 25.354 million pieces, a YoY increase of 17.7%. Relying on the advantages of being a national comprehensive transportation hub and a national level logistics hub, Yiwu's express delivery industry integrates various transportation resources such as sea, land, air, and rail to create a safe, reliable, independent and controllable international logistics supply chain system, providing richer and more convenient services for export of China's goods and import of overseas goods. As Citywalk tourism gains popularity, Yiwu has emerged as a prime destination for travelers seeking to "roam" thanks to its rich and varied array of tourist attractions. During the May Day holiday in 2024, Yiwu became one of the most popular county-level tourist destinations in Zhejiang Province. Tourists flocked to Yiwu International Trade City to purchase global goods, tasted the "delicacies of various countries" and experienced exotic flavors in every mouthful. Just on Chouzhou Road in Yiwu City, there’s a wide range of Middle Eastern restaurants, each with its own distinct style. The barbecue offerings here encompass a variety of styles, including Afghan, Syrian, Iranian, Jordanian, Yemeni, Turkish, Egyptian, Pakistani, and more. It's like "the thousand and one nights" of flavors, right on the tip of your tongue. Yiwu is a dynamic city renowned for its robust B-end commercial exchanges. It has also demonstrated significant potential in C-end sectors like food and tourism, indicating a broad scope for future growth and development. II. Analysis of core competitiveness during the reporting period √Applicable □Not applicable (I) First-mover advantages At the start of China’s reform and opening-up, Yiwu took the lead in establishing the commodities market. During the recent forty years, the market has been upgraded five times and expanded ten times and has been among the top comprehensive national markets with the highest turnover, pointing to its remarkable first-mover advantages. As the largest commodities distribution center in the world, the Yiwu commodities market provides more than 2.1 million products, which fall in 26 categories and supports one-stop purchase. The market boasts enormous resources and huge business flow, goods flow, cash flow and information flow. (II) Brand advantages “Yiwu China Commodities City” is the first market identified by the SAIC as a well-known trademark among the national commodities trading markets. The Company has taken multiple measures to give play to the brand of “Yiwu China Commodities City” and is committed to improving its influence and leading role in the industry. Its brand advantages and influence have kept enhancing. (II) Supporting services advantages The People’s Government of Yiwu has been providing policy support for the development of the market for years, and the auxiliary industries are developing rapidly in Yiwu. 1. Convenient logistics system Yiwu has in place perfect commerce and trade auxiliary facilities and advantageous logistics service. The logistics network has full coverage in Yiwu. A large number of large-sized international and domestic express delivery and logistics companies have regional distribution centers in Yiwu, and a world-oriented goods transport and distribution network has been established. Yiwu has been listed as a "national logistics hub carrier city for commercial and trade services" by the National Development and Reform Commission and the Ministry of Transport of the PRC. 2. Industry Support During the recent years, thanks to the Yiwu China Commodities City, the Yiwu-centered manufacturing industry cluster has been developing fast, an commodities industrial belt that is centered in Yiwu and covers Jinhua, Lishui, Quzhou, Hangzhou, Jiaxing, Taihu, Shaoxing, 2 Ningbo, Wenzhou and Taizhou with an area of nearly 10,000 km has been established, and a benign mechanism under which the Yiwu wholesales market and the peripheral industry cluster develop together has been formed. 3. Support from exhibition service The major international trade exhibitions held by the Company’s exhibition business division such as China Yiwu International Commodities Fair, China Yiwu International Forest Products Fair, China Yiwu International Imported Commodities Fair and China Yiwu Hardware stationery and textiles, have developed multiple professional and international exhibition brands, and are important national platforms for the China Commodities City to lead industry development, develop the city economy and maintain the clusters of traders and commodities. (IV) Advantages of diversified businesses The Company has strengthened its presence in the related industries, made efforts on financial investment, kept developing the exhibition business, created a new e-commerce model, developed the hotel business and also run international trade, modern logistics, advertising information, shopping and tourism businesses. It has created a group structure and profit-making model of shared and interactive development of market resources. (V) Management advantages In terms of personnel, management and technology, excellent operation and management ability is one of the core competences of the Company as a professional market operating company. The Company has developed a series of perfect management systems for market operation and management, accumulated rich experience in operation and management, and has cultivated a professional management team with reasonable knowledge and expertise structures and strategic development insights. (VI) Advantage of online and offline platform integration The Company’s international trade city is the global leading commodity market. The Company’s official Yiwu CCC website, chinagoods platform, relying on the Company’s 75,000 off-line shops, through integration of online and offline services. With trade data integration as the core driver, it meets the needs of both supply and demand parties in manufacturing, display transactions, warehousing and logistics, financial credit, market management and other links. (VII) Advantage of international logistics The Company establishes a logistics platform to replace the multi-layer freight forwarder system, thus shortening the level of freight forwarder distribution, and improving logistics efficiency. In contrast, the traditional foreign trade freight forwarders are divided into multiple levels, the logistics and transportation services are not standardized, and the service prices vary widely and are usually not the lowest price. III. Discussion and analysis of operating status 2024 marks the year of start, the year of breakthroughs, and the year of tireless efforts for the entire city of Yiwu as it embarks on a mission to “set a model and reclaim glory.” During the reporting period, the Company's main business entered an era of simultaneous increase in quantity and price, while its innovative business ventures continued to follow a robust growth trajectory. The Company has anchored its strategic goal of becoming a "world-class international trade comprehensive service provider", taking it as its responsibility to build the unified national market, it coordinates the promotion of market innovation and enterprise transformation and upgrading, and accelerates to become a global leading enterprise in commerce and trade that empowers the mass trade of small commodities. During the reporting period, the daily average customer flow in Yiwu market was 218,800; The daily average number of foreign merchants exceeded 3,600, with a YoY growth of over 80%. The number of foreign merchants has significantly increased, and the main traffic indicators of the market have all exceeded those of the same period in 2019. According to the data released by Yiwu City, in the first half of 2024, the total volume of road, railway, and air passenger traffic in Yiwu City reached approximately 12 million trips, a YoY increase of about 15%. The number of inbound foreign merchant visits was about 250,000, showing a YoY increase of about 95%. (I) Market operation 1. Digitalization of market operation During the reporting period, the Company collaborated with universities to update the index model, iterate the index platform website, and achieve inter-connectivity with the Chinagoods platform, completed the asset sorting of index data and promoted the entry of data resources into the balance sheet. “Empowering Small Commodity Digital Trade Facilitation with Data Elements” has been selected as one of the first 20 typical cases of “Data Element X” by the National Data Bureau. In response to the goal of building the Dow Jones Index in the field of small commodity circulation in China, the Company has formulated a three-year action plan: In 2024, the Company will strive to improve its index model, comprehensively upgrade its index data system, and expand its index publishing channels, actively establishing closer cooperation with domestic and foreign media. At the same time, the Company will continue to promote the entry of data assets into the balance sheet, and generate new quality productivity in the field of "data elements x commercial circulation". In 2025, the Company will further expand its index system, innovate and develop more sub indices to meet the needs of different levels, develop more diversified index application products for governments, industries, and enterprises, and attempt to develop short-term index prediction functions to gradually expand the integration and application scope of artificial intelligence. By 2026, the Company will strive to promote the internationalization of small commodity classification standards and realize the trading of data assets, making the Yiwu China Small Commodity Index a new business card in the Yiwu market and achieving Yiwu's leading position in the global small commodity circulation field. (Yiwu Index 3-year Action Plan Outline) During the reporting period, the Company continuously explored the potential of data elements, continued to leverage their empowering role, and promoted the digital transformation and reshaping of the entire chain, scenario, and format of small commodity trade. The Market Operation Branch and the Financial Management Branch took the "Shop Management System" as the core, relied on resource information collaboration to achieve system integration in version 4.0, classified and constructed business tags, to establish a rich and detailed market "resource library", thus achieving asset data management, further optimizing operational efficiency, and driving market upgrade. 2. Steadily advance of the construction of the Global Digital Trade Center In the first half of the year, 62% of the total project volume for the first phase has been completed, and roof-topping works for the market section main structure of the second phase have been completed. About 68% of the above-ground main structure of the commercial office building section has been completed, and the construction of super high-rise buildings has started. The Company clarifies the network infrastructure construction plan for the global digital trade center in the construction of intelligent markets in the digital market; actively promotes cross-border network construction and advances cross-border access product testing; jointly promotes the AI collaboration project with the Tsinghua ModelBest team; further supplements and improves the digitalization plan of the Global Digital Trade Center. Based on the Company's digital solution, the Company improves the overall construction and operation plan of the smart park, and uses the property cloud platform as the digital base to achieve the transition from existing single-scenario intelligence to overall intelligence. (Progress Map of the Global Digital Trade Center Project in June 2024) (II) Self-operated trade In the process of building a "good foreign trade product" trade service ecosystem, the Company promotes brand layout and improves the level of trade facilitation for small and medium-sized entities. During the reporting period, the self-operated trade volume reached RMB 3.895 billion, a YoY increase of 37.27%. 4 new ICMALL Global Good Goods Collection Stores were opened, bringing the total number to 19. In terms of innovative foreign trade business models, the Company has successfully obtained the qualification for exporting second-hand cars. (III) Online platform The Company continues to explore the integration model of AI and small commodity trade business, promoting the transformation and upgrading of traditional markets. In the first half of the year, 45 new third-party digital service products were added, bringing the total number of digital service products listed to 194. These products cover multiple fields such as content creation, trade services, warehousing and logistics, operational support, marketing strategies, enterprise management, and software tools. The Chinagoods platform has collaborated with top teams such as Tsinghua University, iFlytek, and Baidu to build a 100-member AI R&D team. Targeting the characteristics of the Yiwu market, the team has launched 5 self-developed AI products, covering functions such as intelligent translation, video generation, and product publishing, including "AI digital human matrix" that enables 24-hour interactive operation; AI intelligent translator that supports 36 languages for mutual translation, breaking down language barriers; AI intelligent product release and AI intelligent image factory that help merchants deal with complex and professional problems; and Xiaoshang AI that can accurately capture the needs of buyers through intelligent Q&A, improving order fulfillment rates. At present, 17,000 users on the Chinagoods platform have deeply experienced the Xiaoshang AI series, which helps market merchants achieve digital upgrades in their business. (Display of Some AI Applications) During the reporting period, the net profit of the Big Data Company was RMB 72.7937 million, a YoY increase of 56.89%, and the GMV of Chinagoods was RMB 45 billion, a YoY increase of 40.6%. There were 40,0000 new registered buyers on the Chinagoods platform, bringing the total to over 4.45 million. (IV) Digital payment Kuaijietong is committed to solving the core pain points and bottlenecks in the field of cross-border foreign exchange settlement, continuously optimizing its payment platform functions, and taking practical actions to help small and medium-sized enterprises in the Yiwu market achieve compliance in their funding channels. During the reporting period, Kuaijietong successfully partnered with Industrial and Commercial Bank of China Abu Dhabi Branch to complete the first direct currency settlement business in the Dubai market. This signifies that Kuaijietong has achieved a full-process closed-loop practice in the integrated cross-border RMB settlement services both at home and abroad. In addition, Kuaijietong also works with Bank of China to promote the cross-border application of e-CNY (i.e., the Digital Currency Bridge project). The application was officially launched on May 30, 2024. The core goal of the Digital Currency Bridge project is to build a bridge connecting central banks around the world with digital currencies, aiming to promote efficient inter-connectivity of global financial systems. With the widespread application of digital currencies, cross-border payment processes will become more convenient and efficient, and fund flows will enjoy unprecedented freedom, significantly enhancing the inclusiveness of financial services. The operation of Digital Currency Bridge project not only brings substantial convenience to market participants, but also provides valuable practical opportunities and experience accumulation for central banks of various countries. This will help central banks of various countries to have a deeper understanding of the development trajectory and laws of digital currencies, providing solid data support and theoretical basis for the formulation of their future financial policies. As of June 30, the transaction volume of cross-border RMB payment business in 2024 exceeded RMB 12 billion, supporting 25 different currencies and covering more than 150 countries and regions. All transactions have not involved any risk dispute funds, and there have been no frozen card incidents, providing a solid financial infrastructure guarantee for business owners to smoothly go overseas. During the reporting period, the net profit of Kuaijietong Company was RMB 27.381 million, a significant increase from RMB -5.7202 million for the same period of the previous year. (V) Trade performance Zhijie Yuangang has accelerated the layout of FBC "two warehouses and one route" commercial infrastructure, enhancing its digital cross-border logistics service capabilities. In March, it held the 2024 Cross-border Logistics Ecological Transformation and Upgrading Summit Forum and the "Zuhuopai Platform" brand launch event. The "Zuhuopai" digital logistics fulfillment platform was launched, connecting international logistics enterprises and providing multiple supports such as routes, warehousing, and systems for small and medium-sized enterprises. In the first half of 2024, Zhijie Yuangang has provided 35,000 TEUs of more stable international logistics services with higher quality for the Yiwu market. The digital cross-border supply chain service fulfillment platform (Zhijie Yuangang) has been included as a key project for high-quality development of digital trade in Zhejiang Province in 2024. (VI) Exhibition During the reporting period, the driving effect of exhibitions on trade continued to strengthen. Driven by the drainage effect of professional exhibitions such as the China Import and Export Fair and China Yiwu International Hardware & Electrical Appliances Fair, the number of buyers from outside Zhejiang Province and abroad visiting and purchasing in the market increased. In April alone, the number of foreign merchants entering Yiwu reached 61,991, exceeding that of the same period in 2019. The 8th China Yiwu International Hardware & Electrical Appliances Fair attracted 83,643 buyers, including 3,024 foreign merchants, with a total offline transaction volume of RMB 560 million. As of the end of June, Yiwu China Commodities City Exhibition Co., Ltd. held a total of 23 domestic exhibitions such as the China Yiwu International Hardware & Electrical Appliances Fair and the Yiwu Fashion Jewelry Factory Exhibition, as well as 3 overseas exhibitions in countries such as Indonesia and Cambodia, attracting over 770,000 buyers. The exhibition area was 380,000 square meters, and the intended transaction volume was RMB 4.3 billion. The China Yiwu Imported Commodities Fair project has been included in the 2024 Zhejiang Province Import High-quality Development Project Plan. (VII) Hotel During the reporting period, the hotel business segment (including entrusted hotels) achieved revenue of RMB 227 million, a YoY increase of 1.3%, and GOP of RMB 24.7138 million, a YoY increase of 4.51%. The hotel segment actively implements the integrated development strategy of "market+cultural tourism" and "food+shopping", relying on the Yiwu market to build a comprehensive consumption scene integrating shopping, food, and tourism. It is committed to creating a unique market cultural tourism IP to significantly enhance the attractiveness and popularity of the market cultural tourism. The "Taste Global Delicacies, Buy Global Products" food festival held at the end of June attracted 17 well-known foreign flavor catering units in Yiwu city to participate. The event was brimming with attendees, and its overwhelming popularity led to a scarcity of tickets. The mesmerizing fusion of live dance, music, and lighting elicited exuberant cheers from the crowd, as the array of delectable food, beer, and snacks provided a veritable feast for the guests. The event surpassed all expectations. Significant changes in the Company's operations during the reporting period, as well as events that have a significant impact or are expected to have a significant impact in the future on the Company's operations （未完）  |