TigerResearch/tigerbot-earning-plugin huggingface dataset:
The Group granted some equities or share options of several subsidiaries, to the senior management and other employees of the aforesaid companies or other subsidiaries within the Group respectively.
As at 31 December 2022, the equity-settled share-based payments of these companies recognised by the Group accumulated to RMB508,035,000(31 December 2021: RMB619,314,000), including accumulated amounts attributable to shareholders of the parent company of RMB431,320,000(31 December 2021: RMB528,557,000). In 2022, expenses which were offset against the reversal of equity-settled share-based payments amounted to RMB111,279,000 (2021: RMB349,308,000). The fair value at the grant date was recognised based on the discount cash flow model and the binomial tree model.
(3) Information on cash-settled share-based payments
Certain subsidiaries of the Group use their shares or the Company’s shares as the calculation basis to grant cash-settled share-based payments to eligible employees of those subsidiaries.
As at 31 December 2022, liabilities arising from the cash-settled share-based payments accumulated to RMB334,757,000 (31 December 2021: RMB328,607,000). In 2022, the Group’s expenses confirmed for cash-settled share-based payments amounted to RMB48,111,000 (2021: RMB199,021,000). The fair value at the balance sheet date was recognised based on the discount cash flow model and the binomial tree model.
10. Commitments
(1) Capital commitments
(a) Capital expenditures contracted for by the Group but are not yet necessary to be recognised on the balance sheet as at the balance sheet date are as follows:
||31 December 2022|31 December 2021
 Buildings, machinery and equipment||3,571,632|10,432,197
 Investment contracts that have been signed but not fulfilled or not absolutely fulfilled||1,811,611|2,525,587
 Acquisition of minority shareholders’|interests|–|609,252
 Others||–|11,067
||5,383,243|13,578,103
(2) Other commitments
(i) In November 2020, the Group issued asset-backed securities through the Special Scheme set up by Huatai Securities (Shanghai) Asset Management Co., Ltd. by using five logistics industrial parks held by it as underlying assets. Yiwu Fengyutai Enterprise Management Co., Ltd., Quanzhou Fengyutai Enterprise Management Co., Ltd., Wuxi Jietai Enterprise Management Co., Ltd. and Huai’an Fengtai Enterprise Management Co., Ltd. (collectively “Property Operators”), wholly-owned subsidiaries of the Group, worked as the property operators of the Special Scheme. In case that the actual operating income of the property assets does not reach 90% but is not lower than 80% of the target amount, the Property Operators were committed to compensate the insufficient part of the target amount with Taisen Holdings providing guarantee for the compensation obligation.
At the end of each three years, the manager of the above Special Scheme accepts open-ended withdrawal and subscription of preferred securities within the withdrawal registering period. If the preferred securities shares that have not completed open-ended withdrawal are less than 20% of total undistributed principal of the preferred securities of RMB788 million at the extension operation announcement date. Taisen Holdings will purchase such preferred securities.
11. Contingency
As stated in Note 8(3)(g), subsidiaries of the Group provide loan guarantees to related parties. On 31 December 2022, the total guarantee amount was RMB895,374,000 (31 December 2021: RMB402,420,000).
12. Events after the balance sheet date
(1) Profit distribution after the balance sheet date
On 28 March 2023, the Board of Directors of the Company agreed that the Company would pay a cash dividend of RMB2.5 (including tax) for every 10 shares to all shareholders, based on the total share capital on the record date of the future implementation of the 2022 annual profit distribution plan, minus the number of shares repurchased by the Company on that day. The remaining undistributed profits are carried forward to subsequent years for distributions. This time, the conversion of provident fund into share capital and the issuance of bonus shares will not be given. The proposal is subject to approval by the General Meeting of Shareholders. Cash dividends proposed after the balance sheet date are not recognized as liabilities at the balance sheet date.
13. Operating lease proceeds after the balance sheet date
As the lessor, the Group’s undiscounted lease proceeds receivable after the balance sheet date are as follows:
|31 December 2022|31 December 2021
 Within 1 year (inclusive)|228,038|206,427
1 to 2 years (inclusive)|185,848|157,562
2 to 3 years (inclusive)|134,539|104,871
3 to 4 years (inclusive)|179,036|46,772
4 to 5 years (inclusive)|60,581|32,972
 Over 5 years|246,444|15,104
|1,034,486|563,708
14. Business combinations
Refer to Note 5(1).
15. Financial instruments and relevant risks
The Group’s activities expose it to a variety of financial risks: market risk (primarily including foreign exchange risk, interest rate risk and other price risk), credit risk and liquidity risk. The above financial risks and the Group’s risk management policies to mitigate the risks are as follows:
The Board of Directors is responsible for planning and establishing the Group’s risk management framework, formulating the Group’s risk management policies and related guidelines, and supervising the implementation of risk management measures. The Group has established risk management policies to identify and analyse the risks faced by the Group. These risk management policies specify the risks such as market risk, credit risk and liquidity risk management. The Group regularly evaluates the market environment and changes in the Group’s operating activities to determine whether to update the risk management policies and systems or not. The Group’s risk management is carried out by the Risk Management Committee under policies approved by the Board of Directors. The Risk Management Committee encourages the departments of the Group to work closely together to identify, evaluate and avoid relevant risks. The internal audit department of the Group conducts periodical audit to the controls and procedures for risk management and reports the audit results to the Audit Committee of the Group.
(1) Market risk
(a) Foreign exchange risk
The Group’s major operational activities are carried out in the Chinese mainland and a majority of the transactions are denominated in RMB. Some operational activities are carried out in regions/countries including Hong Kong SAR, USA, Korea and Europe and relevant transactions are settled in HKD, USD, KRW and EUR. Therefore, the Group is exposed to foreign exchange risk arising from the recognised financial assets and liabilities denominated in non-recording currencies, and future transactions denominated in foreign currencies. Management is responsible for monitoring the amount of financial assets and liabilities, and transactions denominated in non-recording currencies to reduce foreign exchange risk to the greatest extent.
(i) Foreign exchange risk of companies with RMB as recording currency
As at 31 December 2022 and 31 December 2021, the Group’s companies whose recording currency is RMB held financial assets and liabilities denominated in non-recording currencies held by companies, of which the equivalent amounts in RMB Foreign exchange exposure such as(Note 4(58)(a)), mainly from USD, HKD and EUR.
As at 31 December 2022, for the above various US dollar financial assets and US dollar financial liabilities, if the RMB appreciates or depreciates by 5% against the US dollar and other factors remain unchanged, the Group will reduce or increase its pre-tax profit by approximately RMB74,507,000 (31 December 2020:RMB35,628,000). Other foreign currencies of changes have no significant impact on foreign exchange risk.
(ii) Foreign exchange risk of companies with HKD as recording currency
As at 31 December 2022 and 31 December 2021, the foreign exchange exposure of financial assets and liabilities denominated in non-recording currencies held by companies located in Hong Kong SAR with HKD being their recording currency was mainly derived from the USD (Note4(58)(b)). Because the HKD and the USD are linked exchange rates, the foreign exchange risks faced by the above-mentioned companies using HKD as their recording currency are not significant.
(iii) As at 31 December 2022 and 31 December 2021, the Group’s overseas subsidiaries, except for those operating in Hong Kong SAR, held no significant financial assets or liabilities denominated in non-recording currencies.
(iv) In view of the different functional currencies of subsidiaries within the Group, there is still foreign exchange risk arising even if transactions and balances within the Group are offset. As at 31 December 2022 and 31 December 2021, such foreign exchange risks are not material.
(b) Interest rate risk
The Group’s interest rate risk arises from long-term interest bearing debts including long-term bank borrowings and debentures payable. Financial liabilities issued at floating rates expose the Group to cash flow interest rate risk. Financial liabilities issued at fixed rates expose the Group to fair value interest rate risk. The Group determines the relative proportions of its fixed rate and floating rate contracts depending on the prevailing market conditions. As at 31 December 2022, the Group’s long-term interest bearing debts were mainly related to floating rate long-term borrowings, and fixed rate debentures payable. Among them, floating rate long-term borrowings amounted to RMB7,472,010,000(31 December 2021: RMB3,510,829,000); the contract amount of fixed rate debentures payable denominated in RMB was RMB1,000,000,000(31 December 2021: RMB500,000,000), and the contract amount of fixed rate debentures payable denominated in USD was USD2,600,000,000, equivalent to RMB18,107,960,000 (31 December 2021: USD2,400,000,000, equivalent to RMB15,301,680,000).
The Group continuously monitors the interest rate position of the Group. Increases in interest rates will increase the cost of new interest bearing borrowings and the interest expenses with respect to the Group’s outstanding floating rate borrowings, and therefore could have a material adverse effect on the Group’s financial performance. Management makes adjustments timely with reference to the latest market conditions and may enter into interest rate swap agreements to mitigate its exposure to interest rate risk.
As at 31 December 2022, if interest rates on borrowings had increased/decreased by 50 basis points while all other variables had been held constant, the Group’s profit before tax would have decreased/increased by approximately RMB37,360,000 (31 December 2021: RMB17,554,000).
(c) Other price risk
The Group’s other price risk arises mainly from movements in price of various investments in equity instruments measured at fair value that will not be sold within 1 year.
As at 31 December 2022, if the price of various investments in equity instruments had risen/fallen by 10% while all other variables had been held constant, the Group’s profit before tax and other comprehensive income before tax would have been approximately RMB101,221,000(31 December 2021: approximately RMB87,802,000) and RMB736,568,000 (31 December 2021: approximately RMB681,077,000) higher/ lower, respectively.
(2) Credit risk
The Group’s credit risk mainly arises from cash at bank and on hand, notes receivable, accounts receivable, receivables financing, loans and advances, other receivables, contract assets, current portion of non-current assets, long-term receivables, investments in debt instruments measured at fair value through profit or loss that are not included in the assessment of impairment, etc. At the balance sheet date, the Group’s maximum exposure to credit risk represents the carrying amount of the Group’s financial assets, except that the maximum exposure to credit risk of long-term receivables represents the aggregate of its undiscounted contractual cash flows.
The Group expects that there is no significant credit risk associated with cash at bank and on hand since they are mainly deposits at state- owned banks and other medium or large size listed banks with good reputation and a higher credit rating. The Group does not expect that there will be any significant losses from non-performance by these counterparties.
The Group’s notes receivable, accounts receivable, receivables financing, other receivables, contract assets, current portion of non-current assets and long-term receivables include receivables from related parties and receivables from non-related parties. In respect of receivables from related parties, the Group considers that they have low credit risk; in respect of receivables from non-related parties, the Group will develop relevant policies to control the exposure to credit risk. The Group evaluates customers’credit quality based on their financial position, possibility of obtaining guarantees from third parties, credit history and such other factors as current market conditions and determines the credit term based on the evaluation results. The credit term of accounts receivable ranges from 30 days to 90 days. The Group monitors customers’credit history on a regular basis. In respect of customers with a poor credit history, the Group will use payment reminders, or shorten or cancel credit terms, to ensure the overall credit risk of the Group is limited to a controllable extent.
The Group’s notes receivable, accounts receivable, receivables financing and contract assets mainly arise from rendering of logistics and freight forwarding services and other related services or sales of goods, while other receivables, current portion of non-current assets and long-term receivables represent advances, cash on delivery service, deposits and guarantees, loans to employees and finance lease receivables arising from rendering of logistics and freight forwarding services. Management maintains ongoing evaluation on debtors’financial position, but generally does not require debtors’mortgage for outstanding debts. The Group monitors and reviews expected credit losses on outstanding amounts on a regular basis, and takes into account important macroeconomic assumptions and parameters in the calculation of expected credit losses, including the risk of economic downturn, external market conditions, changes in customer conditions, gross domestic product and the consumer price index. Management makes the provision for bad debts based on the evaluation results thereof. Where it is impossible for the Group to reasonably estimate the recoverable amount, the relevant outstanding amount shall be written off accordingly. Indicators for impossibility to reasonably estimate the recoverable amount include debtors’failure to make contract payments as planned or make overdue contract payments, significant financial difficulties, bankruptcy liquidation, etc.
For loans and advances, the Group developed credit policies and operational implementation rules in accordance with the requirements of relevant state regulatory authorities, and implemented standardised management over the entire process of credit granting. In addition, the Group further improved the systems for credit risk monitoring and early warning and defective credit extension management. The Group actively responded to the changes in the credit environment, regularly analysed the situation and dynamic of credit risks and took risk control measures on a forward-looking basis. The Group also established an optimisation management mechanism for defective credit and accelerated the optimisation progress of defective credit to avoid non-performing loans.
As at 31 December 2022, the Group had no significant collateral or other credit enhancements held as a result of the debtor’s mortgage (31 December 2021: Nil).
(3) Liquidity risk
(a) Cash flow forecasting is performed by each subsidiary of the Group and aggregated by the Group. The Group monitors rolling forecasts of the Group’s short-term and long-term liquidity requirements to ensure it has sufficient cash and securities that are readily convertible to cash to meet operational needs, while maintaining sufficient headroom on its undrawn committed borrowing facilities from major financial institutions so that the Group does not breach borrowing limits or covenants on any of its borrowing facilities to meet the short-term and long-term liquidity requirements.
The financial liabilities of the Group at the balance sheet date are analysed by their maturity date below at their undiscounted contractual cash flows:
|||||31 December 2022||||
| Within 1 year||1 to 2 years||2 to 5 years|| Over 5 years|| Total
 Deposits from customers|20,670|–||–||–||20,670|
 Accounts payable|24,715,352|–||–||–||24,715,352|
 Other payables|13,346,595|–||–||–||13,346,595|
 Short-term borrowings|12,963,318|–||–||–||12,963,318|
 Other current liabilities|5,118,489|–||–||–||5,118,489|
Current portion of non-current liabilities|11,448,352|–||–||–||11,448,352|
 Long-term borrowings|161,001|3,101,351||4,660,180||85,488||8,008,020|
 Debentures payable|581,461|1,068,586||7,373,540||13,179,071||22,202,658|
 Long-term payables|–|210,501||–||–||210,501|
 Lease liabilities|–|4,179,191||3,797,852||1,976,864||9,953,907|
|68,355,238|8,559,629||15,831,572||15,241,423||107,987,862|
|||||31 December 2021||||
| Within 1 year||1 to 2 years||2 to 5 years|| Over 5 years|| Total
 Deposits from customers|13,723|–||–||–||13,723|
 Accounts payable|23,467,675|–||–||–||23,467,675|
 Other payables|11,520,282|–||–||–||11,520,282|
 Short-term borrowings|18,754,425|–||–||–||18,754,425|
 Other current liabilities|4,069,757|–||–||–||4,069,757|
 Current portion of non-current liabilities|9,018,284|–||–||–||9,018,284|
Long-term borrowings|66,341|1,143,643||2,524,231||4,472||3,738,687|
 Debentures payable|500,343|3,674,510||4,098,421||10,640,242||18,913,516|
 Long-term payables|2,464|302,162||85,412||31,890||421,928|
 Lease liabilities|–|4,374,170||5,158,881||2,590,999||12,124,050|
|67,413,294|9,494,485||11,866,945||13,267,603||102,042,327|
(b) Cash flows derived from leases not yet commenced to which the Group was committed were analysed by maturity at the balance sheet date (Note 4(33)):
|31 December 2022|31 December 2021
 Within 1 year (inclusive)|986,197|888,382
1 to 2 years (inclusive)|259,841|182,883
2 to 3 years (inclusive)|200,248|131,357
 Over 3 years|192,415|109,290
|1,638,701|1,311,912
16. Fair value estimates
The level in which fair value measurement is categorised is determined by the level of the fair value hierarchy of the lowest level input that is significant to the entire fair value measurement:
Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities.
Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. Level 3: Unobservable inputs for the asset or liability.
(1) Financial assets and liabilities measured at fair value on a recurring basis
As at 31 December 2022, the financial assets measured at fair value on a recurring basis by the above three levels were analysed below:
|| Level 1|| Level 2| Level 3| Total
 Financial assets held for trading: Structural deposits|–||–||7,351,158|7,351,158
 Fund investments|77||34,144||–|34,221
 Receivables financing: Notes receivable|–||63,310||–|63,310
 Other non-current financial assets: Industry fund investments|–||–||770,637|770,637
 Special Scheme equity-class securities|–||–||116,286|116,286
 Others|–||–||125,286|125,286
 Investments in other equity instruments: Equity instruments available for sale|158,936||127,564||7,079,184|7,365,684
 Total financial assets|159,013||225,018||15,442,551|15,826,582
As at 31 December 2021, the financial assets measured at fair value on a recurring basis by the above three levels were analysed below:
|| Level 1|| Level 2| Level 3| Total
 Financial assets held for trading: Structural deposits|–||–||9,730,665|9,730,665
 Fund investments|76||653,752||–|653,828
 Other non-current financial assets: Industry fund investments|–||–||552,130|552,130
 Special Scheme equity-class securities|–||–||235,821|235,821
 Others|–||–||90,072|90,072
 Investments in other equity instruments: Equity instruments available for sale|241,936||401,726||6,167,109|6,810,771
 Total financial assets|242,012||1,055,478||16,775,797|18,073,287
As at 31 December 2022, the financial liabilities measured at fair value on a recurring basis by the above three levels were analysed below:
Level 1 Level 2 Level 3 Total
Derivative financial liabilities:
Others –96,647 –96,647
As at 31 December 2021, the financial liabilities measured at fair value on a recurring basis by the above three levels were analysed below:
| Level 1|| Level 2|| Level 3|| Total|
 Derivative financial liabilities: Others||–||7,658||–||7,658
The Group takes the date on which events causing the transfers between the levels take place as the timing specific for recognising the transfers. There were no transfers between different levels for the year.
The fair value of financial instruments traded in an active market is determined at the quoted market price; and the fair value of those not traded in an active market is determined by the Group using valuation technique. The valuation models used mainly comprise discounted cash flow model and market comparable company model. The inputs of the valuation technique mainly include risk-free interest rate, benchmark rate, exchange rate, credit spread, liquidity premium, EBITDA multiplier and liquidity discount.
| Financial assets held for trading|| Other non-current financial assets|| Other non-current financial assets|| Other non-current financial assets||| Other equity instruments
|–| Structural deposits|–| Special Scheme|–| Industry fund investments|–| Others|–| Equity instruments available for sale
|||equity-class securities|||||||
31 December 2021||9,730,665||235,821||552,130||90,072||6,167,109
 Increase in the current year||151,418,127||–||220,144||32,039||345,378
 Decrease in the current year||(154,421,228)||(137,660)||(24,173)||–||–
 Gains or losses recognised in profit for the current year||623,594||18,125||2,705||(87)||–
Gains recognised in other comprehensive income||–||–||–||–||(32,291)
 Exchange differences on translation of foreign currency financial statements||–||–||19,831||3,262||598,988
31 December 2022||7,351,158||116,286||770,637||125,286||7,079,184
| Financial assets held for trading|| Other non-current financial assets|| Other non-current financial assets|| Other non-current financial assets||| Other equity instruments
|–| Structural deposits|–| Special scheme|–| Industry fund investments|–| Others|–| Equity instruments available for sale
|||equity-class securities|||||||
31 December 2020||6,276,848||390,391||441,135||–||4,136,330
Business combination involving enterprises not under common control||–||–||–||4,854||244,045
 Increase in the current year||117,935,200||–||28,943||85,242||–
 Decrease in the current year||(114,905,490)||(167,705)||(25,572)||–||(208,230)
 Gains recognised in profit or loss for the current year||424,107||13,135||108,635||–||–
 Gains recognised in other comprehensive income||–||–||–||–||2,101,185
 Exchange differences on translation of foreign currency financial statements||–||–||(1,011)||(24)||(106,221)
31 December 2021||9,730,665||235,821||552,130||90,072||6,167,109
(2) Financial assets and liabilities not measured at fair value but disclosed
The Group’s financial assets and liabilities measured at amortised cost mainly include cash at bank and on hand, receivables, loans and advances, current portion of non-current assets, long-term receivables, short-term borrowings, payables, lease liabilities, long-term borrowings, debentures payable, current portion of non-current liabilities, other current liabilities and long-term payables.