TigerResearch/tigerbot-earning-plugin huggingface dataset:
The investees over which the Group has significant influence are accounted for under the equity method. In judging the significant influence over an investee, management considers based on one or more of the following circumstances and all facts and circumstances: (1) the shareholding in the investee; (2) whether it appoints representative in the Board of Directors or a similar authority of the investee; (3) whether it participates in making decisions on financial and operating policies of the investee; (4) whether it has significant transaction with the investee; (5) whether it assigns management personnel to the investee; (6) whether it provides key technical materials to the investee, and all facts and circumstances are considered.
(ii) Determination of the scope of consolidation
As stated in Note 2(6), the Group consolidates a subsidiary from the date of obtaining actual control, and excludes it out of the scope of consolidation from the date of losing the actual control. Control exists when the Group has all three of the following elements: (1) the investor possesses power over the investee and the degree of dispersion of equity in other non-controlling interests; (2) has exposure to variable returns from its involvement with the investee’s related activities; and (3) the ability to use the power over the investee to affect the returns. Where variations in relevant facts and circumstances cause a change of these factors, a reassessment will be made.
(30) Significant changes in accounting policies
The Ministry of Finance released the Circular on Issuing Interpretation No. 15 of Accounting Standards for Business Enterprises (hereinafter“Interpretation No. 15”) in 2021, in 2022 and 2023 released the Circular on Issuing Interpretation No. 16 of Accounting Standards for Business Enterprises (hereinafter “Interpretation No. 16”), and Q&A on Implementation of Accounting Standards for Business Enterprises. The financial statements for the year ended 31 December 2022 have been prepared by the Group and the Company in accordance with the above circulars and Q&A, and the above amendments have no significant impacts on the financial statements of the Group and the Company.
3. Taxation
The main categories and rates of taxes applicable to the Group are set out below:
Category|| Tax rate|| Tax base
 Enterprise income tax| Note (1)|| Taxable income|
 Value-added tax (“VAT”)| Note (2)|| Taxable value-added amount (Tax payable is calculated using the taxable sales amount/taxable service income multiplied by the applicable tax rate less deductible VAT input of the current period or taxable turnover amount multiplied by the VAT rate)|
 City maintenance and construction tax|7%, 5%, 1%|| Amount of VAT paid|
 Educational surcharge|3%|| Amount of VAT paid|
 Local educational surcharge|2%|| Amount of VAT paid|
 Customs duty| At applicable tax rate|| Customs dutiable value through examination and approval of the Customs|
In addition, pursuant to the Interim Measures for the Collection, Use and Management of the Civil Aviation Development Fund (Cai Zong[2012] No. 17) issued by the Ministry of Finance, SF Airlines Company Limited (“SF Airlines”) pays the civil aviation development fund based on classification of flight routes, maximum take-off weight, flight mileage and applicable collection standards, and includes such payment in cost.
The Announcement on the Cancellation of Port Construction Fees and Adjustment to Relevant Policies of the Civil Aviation Development Fund(Announcement [2021] No. 8) was issued by the Ministry of Finance on 19 March 2021. Since 1 April 2021, the collection standard for the civil aviation development fund payable by airlines has been reduced by 20% in accordance with the Notice of the Ministry of Finance on Adjusting the Relevant Policies of Certain Government Funds (Cai Shui [2019] No. 46) on the basis of a 50% reduction.
(1) Enterprise income tax
According to the Enterprise Income Tax Law of the People’s Republic of China and the Regulations on the Implementation of Enterprise Income Tax Law, except for some subsidiaries enjoying the preferential tax rates, the Company and other subsidiaries established in the Chinese mainland are subject to the enterprise income tax rate of 25%.
The Group’s overseas subsidiaries recognise their income taxes in accordance with the laws and regulations of the countries or regions where they operate. Specifically, the subsidiaries located in Hong Kong SAR, Macao SAR, Singapore, Japan, South Korea, USA and Thailand are subject to enterprise income tax at the rates of 16.5%, 12%, 17%, 23.2%, 25%, 21% and 20%, respectively in the reporting period.
Pursuant to the Announcement on Implementation of the Policy of Deduction of Relevant Enterprise Income Tax for Equipment and Appliance(Cai Shui [2018] No. 54), and the Announcement on Extending the Implementation Period of Certain Preferential Tax Policies (Cai Shui [2021] No. 6) issued by the Ministry of Finance and the State Taxation Administration, for equipment newly purchased from 1 January 2018 to 31 December 2023 and with a unit value of less than RMB5 million, the one-time period cost can be deducted against the taxable income in the following month after the asset is put into use, instead of being deducted annually in its useful life.
The preferential enterprise income tax policies to which the Group is entitled mainly include:
(a) Pursuant to the Notice on the Policies and Catalogue of Income Tax Preferences for Enterprises in Guangdong Hengqin New Area, Fujian Pingtan Comprehensive Experimental Zone, and Shenzhen Qianhai Shenzhen-Hong Kong Modern Service Industry Cooperative Zone (Cai Shui [2014] No. 26) and the Notice on Continuing the Policies of Income Tax Preferences for Enterprises in Shenzhen Qianhai Shenzhen-Hong Kong Modern Service Industry Cooperative Zone (Cai Shui [2021] No. 30) jointly issued by the Ministry of Finance and the State Taxation Administration, Shenzhen S.F. Supply Chain Co., Ltd. and other 7 subsidiaries as below are subject to enterprise income tax at the preferential rate of 15% from 2014 to 2025.
(b) Pursuant to the Notice on Tax Policy Issues Concerning Further Implementing the Western China Development Strategy (Cai Shui [2011] No. 58) and the Notice on Issues Concerning the Implementation of the Tax Policies for the Development of Western China by Ganzhou City (Cai Shui [2013] No. 4) jointly issued by the Ministry of Finance, the General Administration of Customs and the State Taxation Administration, and the Announcement on Continuing the Enterprise Income Tax Policies for the Development of Western China (Announcement [2020] No. 23) jointly issued by the Ministry of Finance, the State Taxation Administration and the National Development and Reform Commission on 23 April 2020, Xi’an Shunlu Logistics Co., Ltd. and other 27 subsidiaries as below are subject to enterprise income tax at the preferential rate of 15% until the end of 31 December 2030.
(c) Pursuant to the Announcement on Continuing the Enterprise Income Tax Policies for the Development of Western China(Announcement [2020] No. 23) jointly issued by the Ministry of Finance, the State Taxation Administration and the National Development and Reform Commission on 23 April 2020, Tibet S.F. Express Co., Ltd. (“Tibet Express”), which is registered in Tibet Autonomous Region, is subject to enterprise income tax at the preferential rate of 15% from 1 January 2011 to 31 December2030. Pursuant to the Notice of the People’s Government of the Tibet Autonomous Region on Issuing the Regulations on Preferential Policies for Investment Promotion of the Tibet Autonomous Region(Zang Zheng Fa [2021] No. 9), Tibet Express is temporarily exempt the region’s share of entitlement to enterprise income tax payable. In other words, the region’s share of entitlement to 40% in the enterprise income tax payable at the rate of 15% is exempted during the above period.
(d) In accordance with Article 2 of the Notice on Implementing the Inclusive Tax Deduction and Exemption Policies for Micro and Small Enterprises (Cai Shui [2019] No. 13) jointly issued by the Ministry of Finance and the State Taxation Administration, during the period from 1 January 2019 to 31 December 2021, the annual taxable income of a small low-profit enterprise that is not more than RMB1 million shall be recognised at 25% of income and be subject to the enterprise income tax rate of 20%; In accordance with the Announcement on Implementing the Preferential Income
Tax Policies for Micro and Small Enterprises and Individual Industrial and Commercial Households (Cai Shui [2021] No. 12) issued by the Ministry of Finance and the State Taxation Administration, during the period from 1 January 2021 to 31 December 2022, the annual taxable income of a small low-profit enterprise that is not more than RMB1 million shall be subject to one-half reduced enterprise income tax on the basis of the above preferential policies.
In accordance with the Announcement on Further Implementing the Preferential Income Tax Policies for Micro and Small Enterprises(Announcement [2022] No. 13) jointly issued by the Ministry of Finance and the State Taxation Administration, during the period from 1 January 2022 to 31 December 2024, the annual taxable income of a small low-profit enterprise that is more than RMB1 million but less than RMB3 million shall be recognised at 25% of income and be subject to the enterprise income tax rate of 20%.
Therefore, the portion of annual taxable income of Ningbo Shuncheng Logistics Co., Ltd. and other 50 subsidiaries as below not exceeding RMB1 million is recognised at 12.5%, and they are subject to enterprise income tax at the rate of 20%; the portion of annual taxable income of the Group’s subsidiaries exceeding RMB1 million but not exceeding RMB3 million is recognised at 25%, and they are subject to the enterprise income tax rate of 20%.
(e) As per Article 28 of the Enterprise Income Tax Law of the People’s Republic of China, the high and new technology enterprises eligible for key support from the State are entitled to a reduced tax rate of 15%. Through filing with local taxation bureaus, SF Technology Co., Ltd. (“SF Technology”) and other 5 subsidiaries as below are qualified as high and new technology enterprises, and entitled to the preferential tax rates for high and new technology enterprises eligible for key support from the State. The subsidiaries as below are subject to a tax rate of 15% in the reporting period (2021: 15%).
In addition, pursuant to the provisions of the Announcement on Increasing Support of Pre-tax Deductions for Scientific and Technological Innovation (announcement of the Ministry of Finance, the State Taxation Administration and the Ministry of Science and Technology [2022] No. 28) issued by the Ministry of Finance, the State Taxation Administration and the Ministry of Science and Technology, during the period from 1 October 2022 to 31 December2022, the newly purchased equipment of the above companies could be fully deducted in 2022 against taxable profit, and the additional deduction of 100% was approved before tax. The pre-tax deduction ratio of R&D expenses of the above companies is 75% from 1 January2022 to 31 September 2022; the proportion of additional pre-tax deduction will be increased to 100% from 1 October 2022 to 31 December 2022.
(f) Pursuant to the Notice on the Policies of Income Tax Preferences for Enterprises in Hainan Free Trade Port (Cai Shui [2020] No. 31) jointly issued by the Ministry of Finance and the State Taxation Administration, Hainan S.F. Express Co., Ltd. and other 3 subsidiaries, which are registered in Hainan Free Trade Port, are subject to enterprise income tax at the preferential rate of 15% from 1 January2020 to 31 December 2024.
(2) VAT
According to different businesses, VAT rates applicable to those subsidiaries located in the Chinese mainland of the Group include:
Business type|| Applicable VAT rates
 Sales of goods and leasing of tangible movable assets|13%|
 Transportation service (i), Property leases|9%|
 Logistics supporting service (i)(ii), Research and development and technical service, Information technology service|6%|
(i) Pursuant to the Announcement on Policies for Deepening the Value-Added Tax Reform (Cai Shui [2019] No. 39), the Announcement on Clarifying the Additional Value-Added Tax Credit Policy for the Life Service Industry (Cai Shui [2019] No. 87) and the Announcement on the Value-Added Tax Policies for Promoting the Poverty-relief Development of Service Industries (Cai Shui [2022] No. 11), the enterprises in taxpayers of productive and consumer service industry qualify for additional 10% or 15% deduction of input VAT from output VAT from 1 April 2019 to 31 December 2022, respectively.
(ii) Pursuant to the Announcement on the Exemption of Value-Added Tax of Express Delivery Service, revenue from express delivery service of essential living materials for residents shall be exempted from VAT from 1 May 2022 to 31 December 2022.
4. Notes to the consolidated financial statements
||31 December 2022|31 December 2021
 Cash on hand||18,437|48,513
 Cash at bank (c)||16,629,310|16,067,702
 Balances with central bank from Group Finance Company||848,392|548,204
 Including: –|statutory reserve (a)|837,242|540,300
–|excess reserve (b)|11,150|7,904
 Balances with other banks from Group Finance Company||23,378,727|18,569,253
Other cash balances (c)||165,126|76,182
 Interest receivable||22,758|5,197
||41,062,750|35,315,051
 Including: Overseas deposits||9,471,675|9,330,693
(a) On 18 September 2016, the Group incorporated S.F. Holding Group Finance Co., Ltd. (“Group Finance Company”). Statutory reserve of Group Finance Company deposited with the central bank represents required statutory reserve paid by Group Finance Company in the People’s Bank of China (“PBOC”) at 5% of deposits from customers denominated in RMB. Statutory reserve deposits are not available for use by the Group in its daily operations, which are restricted cash.
(b) Excess reserve of Group Finance Company deposited with the central bank represents the excess over the required statutory reserve deposited by financial institutions in the central bank, and it is bank deposit that can be readily drawn on demand.
(c) As at 31 December 2022, the bank deposits of RMB11,086,000 (31 December 2021: RMB9,600,000) were deposits in commercial banks to guarantee general bank credit (Note 4(23)(c)). Other cash balances of RMB1,832,000 (31 December 2021: RMB1,832,000) is the security deposit for the Group to apply for a letter of guarantee from the bank; RMB24,759,000 (31 December 2021: RMB25,194,000) is the security deposit received by the Group from a third party. According to the contract, the security deposit needs to be returned after the cooperation is completed. These funds are all restricted funds.
|31 December 2022|31 December 2021
 Structured deposits|7,351,158|9,730,665
 Fund investments|34,221|653,828
|7,385,379|10,384,493
|31 December 2022|31 December 2021
 Accounts receivable|27,120,677|31,476,627
 Less: Provision for bad debts|(1,560,244)|(1,034,869)
|25,560,433|30,441,758
The Group adopts regular settlement method for logistics and freight forwarding services provided to some customers. At each month-end, the outstanding part becomes accounts receivable.
|31 December 2022|31 December 2021
 Within 1 year (inclusive)|26,162,778|31,027,603
1 to 2 years (inclusive)|653,524|236,070
 Over 2 years|304,375|212,954
|27,120,677|31,476,627
(b) As at 31 December 2022, the five largest accounts receivable aggregated by debtor were summarised and analysed as follows:
||31 December 2022|
| Book balance| Provision for bad debts|% of total balance
 Sum of the five largest accounts receivable|2,281,021|(3,937)|8.41%
(c) Provision for bad debts
For accounts receivable, the Group recognises the lifetime expected credit loss provision.
As at 31 December 2022, accounts receivable for which the related provision for bad debts was provided on the individual basis were analysed as follows:
|| Book balance|| Lifetime expected credit loss rate|| Provision for bad debts| Reason
 Receivables from related parties|–||–||–||
 Receivables from non-related parties|719,588||100.00%||(719,588)|| The debtor encountered financial distress, etc.
|719,588||||(719,588)||
As at 31 December 2021, accounts receivable for which the related provision for bad debts was provided on the individual basis were analysed as follows:
|| Book balance|| Lifetime expected credit loss rate|| Provision for bad debts| Reason
 Receivables from related parties|–||–||–||
 Receivables from non-related parties|559,591||100.00%||(559,591)|| The debtor encountered financial distress, etc.
|559,591||||(559,591)||
As at 31 December 2022, accounts receivable for which the related provision for bad debts was provided on the grouping basis were analysed as follows:
| Book balance|| Lifetime expected credit loss rate| Provision for bad debts
 Related party grouping|237,028|–||–
 Non-related party grouping|26,164,061|3.21%||(840,656)
|26,401,089|||(840,656)
As at 31 December 2021, accounts receivable for which the related provision for bad debts was provided on the grouping basis were analysed as follows:
| Book balance|| Lifetime expected credit loss rate| Provision for bad debts
 Related party grouping|278,423|–||–
 Non-related party grouping|30,638,613|1.55%||(475,278)
|30,917,036|||(475,278)
(d) In 2022, the Group’s provision for bad debts amounted to RMB760,520,000 (2021: RMB605,865,000), and the Group’s provision for bad debts reversed amounted to RMB90,559,000 (2021: Nil) (Note 4(22)).
(e) In 2022, the provision for bad debts of accounts receivable that were written off amounted to RMB169,984,000 and no accounts receivable with amounts that were individually significant were written off (Note 4(22)).
(4) Advances to suppliers
|31 December 2022||31 December 2021|
 Ageing||||
| Amount|% of total balance| Amount|% of total balance
 Within 1 year (inclusive)|3,339,817|96.39%|2,826,165|96.25%
1 to 2 years (inclusive)|94,873|2.74%|73,490|2.50%
 Over 2 years|30,221|0.87%|36,591|1.25%
|3,464,911|100.00%|2,936,246|100.00%
As at 31 December 2022, advances to suppliers with ageing over one year were mainly prepaid materials, transportation expenses, etc. That is because relevant business transactions were still being performed.
(b) As at 31 December 2022, the five largest advances to suppliers aggregated by debtor were summarised and analysed as follows:
||31 December 2022
| Amount|% of total balance
 Sum of the five largest advances to suppliers||798,742 23.05%
|31 December 2022|31 December 2021
 Receivables from related parties (Note 8(4)(d))|521,494|492,057
 Guarantees and deposits|1,532,034|1,413,769
 Cash to collect on behalf of customers|330,427|689,476
 Tax paid on behalf of others|208,441|154,965
 Employee borrowings and advances|106,828|95,564
 Receivables from airlines subsidies and financial rebates|99,389|105,652
Receivables from equity transfer|77,455|344,662
 Prepaid social insurance premium|33,519|23,515
 Entrusted loan principal receivables|27,000|27,000
 Others|643,773|999,967
|3,580,360|4,346,627
 Less: Provision for bad debts|(239,123)|(108,109)
3,341,237 4,238,518
(a) The ageing of other receivables based on the point of occurrence is analysed as follows:
|31 December 2022|31 December 2021
 Within 1 year (inclusive)|2,572,195|3,638,859
1 to 2 years (inclusive)|385,523|297,337
 Over 2 years|622,642|410,431
|3,580,360|4,346,627
As at 31 December 2022, other receivables with ageing over 1 year mainly represented deposits and guarantees, entrusted loans receivable and receivables from equity transfer.
(b) Provision for bad debts and changes in balance statements
(i) The Group measures the loss provision for other receivables based on the expected credit losses for the next twelve months or the entire
duration. The statement of changes in provisions for bad debts is as follows: Stage 1|| Stage 3 Total||
| Expected credit losses in the following 12 months(grouping)| Lifetime expected credit losses (credit impaired)| Total|
31 December 2021|14,454|93,655||108,109
 Provision in the current year|5,481|152,554||158,035
 Write-off in the current year|–|(18,814)||(18,814)
 Transfer to Stage 3|(730)|730||–
 Disposal and other reductions|(8,207)|–||(8,207)
31 December 2022|10,998|228,125||239,123
The book balance of other receivables transferred to Stage 3 is RMB145,958,000. (2021: Nil)
As at 31 December 2022 and 31 December 2021, the Group did not have any other receivables at Stage 1 for which the related provision for bad debts was provided on the individual basis.
(ii) As at 31 December 2022, other receivables at Stage 1 for which the related provision for bad debts was provided on the grouping basis were analysed as follows:
| Book balance| Expected credit loss rate in the following12 months|| Provision for bad debts| Reason
 Provided on the grouping basis:|||||
 Related party grouping|521,494|–|–||
 Non-related party grouping|2,808,453|0.39%|(10,998)|| Expected credit loss method
|3,329,947||(10,998)||
(iii) As at 31 December 2021, other receivables at Stage 1 for which the related provision for bad debts was provided on the grouping basis were analysed as follows:
| Book balance| Expected credit loss rate in the following12 months|| Provision for bad debts| Reason
 Provided on the grouping basis:|||||
 Related party grouping|492,057|–|–||
 Non-related party grouping|3,750,115|0.39%|(14,454)|| Expected credit loss method
|4,242,172||(14,454)||
As at 31 December 2022 and 31 December 2021, the Group did not have any other receivables at Stage 2.
(iv) As at 31 December 2022, other receivables at Stage 3 for which the related provision for bad debts was provided on the individual basis were analysed as follows:
| Book balance| Lifetime expected credit losses| Provision for bad debts| Reason
 Provided on the individual basis: Receivables from equity transfer|77,455|100.00%|(77,455)| The debtor encountered financial distress
 Guarantees and deposits|49,425|76.76%|(37,937)| The debtor encountered financial distress
 Entrusted loans receivable|27,000|60.00%|(16,200)| The debtor encountered financial distress
 Others|96,533|100.00%|(96,533)| The debtor encountered financial distress
|250,413||(228,125)|
As at 31 December 2021, other receivables at Stage 3 for which the related provision for bad debts was provided on the individual basis were analysed as follows:
| Book balance| Lifetime expected credit losses| Provision for bad debts| Reason
 Provided on the individual basis: Entrusted loans receivable|27,000|60.00%|(16,200)| The debtor encountered financial distress
 Receivables from equity transfer|77,455|100.00%|(77,455)| The debtor encountered financial distress
|104,455||(93,655)|
As at 31 December 2022 and 31 December 2021, the Group did not have any other receivables at Stage 3 for which the related provision for bad debts was provided on the grouping basis.
(c) In 2022, the Group’s provision for bad debts amounted to RMB158,035,000 (2021: RMB7,472,000), and no provision for bad debts was reversed (2021: RMB15,000,000) (Note 4(22)).
(d) In 2022, the provision for bad debts of other receivables that were written off amounted to RMB18,814,000 (2021: RMB12,154,000) (Note4(22)) and no other receivables with amounts that were individually significant were written off (2021: Nil).
(e) As at 31 December 2022, the five largest other receivables aggregated by debtor were summarised and analysed as follows:
||||31 December 2022|
| Nature of business| Ageing| Book balance| Provision for bad debts|% of total balance
 Shenzhen Hive Box Technology Co., Ltd. (“Hive Box Technology”) and its subsidiaries| Agency collection and payment| Within 1 year|405,621|–|11.33%
 Goodear Development Co., Ltd.| Guarantees and deposits|1 to 3 years|51,607|–|1.44%
 Wuhan TianHe International Airport| Airline subsidies and financial rebates| Within 1 year|45,041|–|1.26%
 Hangzhou International Airport| Airline subsidies and financial rebates| Within 1 year、1 to 3 years|41,412|–|1.16%
 Suzhou Lake District Development Co., Ltd.| Guarantees and deposits|2 to 3 years|40,000|–|1.12%
|||583,681|–|16.31%
(6) Inventories