1. ORGANIZATION AND BUSINESS DESCRIPTION TD Holdings, Inc. ("TD" or "the Company"), is a holding company that was incorporated under the laws of the State of Delaware on December 19, 2011. On January 11, 2019, the Company changed its name to China Bat Group, Inc. and on June 3, 2019, further changed its name to Bat Group, Inc. On March 6, 2020, the Company amended its Certificate of Incorporation with the Secretary of State of Delaware to effect a name change to TD Holdings, Inc. On April 2, 2020, HC High Summit Holding Limited ("HC High BVI"), the Company's wholly owned subsidiary, established Tongdow Block Chain Information Technology Company Limited ("Tongdow Block Chain"), a holding company incorporated in accordance with the laws and regulations of Hong Kong. Tongdow Block Chain is wholly owned by HC High BVI. On April 2, 2020 and July 16, 2020, Tongdow Block Chain established Shanghai Jianchi Supply Chain Company Limited ("Shanghai Jianchi") and Tongdow Hainan Digital Technology Co., Ltd. ("Tondow Hainan"), respectively, as its wholly owned subsidiaries. Both Shanghai Jianchi and Tongdow Hainan are holding companies incorporated in accordance with the laws and regulations of People's Republic of China ("PRC"). On June 25, 2020, Hao Limo Technology (Beijing) Co. Ltd. ("Hao Limo"), the Company's wholly owned subsidiary incorporated in PRC, and Shenzhen Huamucheng Trading Co., Ltd. ("Huamucheng"), a former VIE of the Company, entered into certain VIE Termination Agreement (the "VIE Termination Agreement") to terminate the Huamucheng VIE Agreements. As such, Hao Limo will no longer have the control rights and rights to the assets, property and revenue of Huamucheng. On the same date, Shanghai Jianchi, Huamucheng and the shareholders of Huamucheng (the "Huamucheng Shareholders") entered into certain Share Acquisition Agreement (the "Acquisition Agreement") pursuant to which Shanghai Jianchi acquired 100% equity interest of Huamucheng from the Huamucheng Shareholders for nominal consideration. As a result of the above reorganization, Huamucheng transitioned from being a variable interest entity ("VIE") controlled by Company into a wholly owned subsidiary of the Company. The Company remained in control of Huamucheng both before and after the reorganization and its operating results are consolidated into the Company's consolidated financial statements. On August 28, 2020, the Company closed the sales of HC High Summit Limited and its subsidiaries and Beijing Tianxing Kunlun Technology Co. Ltd. ("Beijing Tianxing"), the VIE with Vision Loyal Limited ("Vision Loyal"), at a nominal consideration of $1.00 based on a valuation report presented by a third party valuation firm. On September 11, 2020, the Company acquired Zhong Hui Dao Ming Investment Management Limited ("ZHDM HK") and its wholly owned subsidiary, Tongdow E-trading Limited ("Tongdow HK"). Both entities were holding companies incorporated in accordance with the laws and regulations of Hong Kong. The consideration was zero because both entities have not commenced any operations before the date of acquisition. As of September 30, 2020, the Company conducts business through Huamucheng, a subsidiary of the Company, which is engaged in the commodity trading business and providing supply chain management services to customers in the PRC. Supply chain management services consist of loan recommendation services and commodity product distribution services. The accompanying consolidated financial statements reflect the activities of Huamucheng and each of the following holding entities: Name Background Ownership HC High Summit Holding Limited ("HC High BVI")  A BVI company  Incorporated on March 22, 2018  A holding company 100% owned by the Company Tongdow Block Chain Information Technology Company Limited ("Tongdow Block Chain")  A Hong Kong company  Incorporated on April 2, 2020  A holding company 100% owned by HC High BVI Shanghai Jianchi Supply Chain Company Limited ("Shanghai Jianchi")  A PRC company and deemed a wholly foreign owned enterprise ("WFOE")  Incorporated on April 2, 2020  Registered capital of $10 million  A holding company WFOE, 100% owned by Tongdow Block Chain Shenzhen Huamucheng Trading Co., Ltd. ("Huamucheng")  A PRC limited liability company  Incorporated on December 30, 2013  Registered capital of $1,417,736 (RMB 10 million) with registered capital fully paid-up  Engaged in commodity trading business and providing supply chain management services to customers VIE of Hao Limo before June 25, 2020, and a wholly owned subsidiary of Shanghai Jianchi Tongdow Hainan Digital Technology Co., Ltd. ("Tondow Hainan")  A PRC limited liability company  Incorporated on July 16, 2020  Registered capital of $1,417,736 (RMB 10 million) with registered capital fully paid-up  Engaged in commodity trading business and providing supply chain management services to customers A wholly owned subsidiary of Shanghai Jianchi Zhong Hui Dao Ming Investment Management Limited ("ZHDM HK")  A Hong Kong company  Incorporated on March 28, 2007  A holding company 100% owned by HC High BVI Tongdow E-trading Limited ("Tongdow HK")  A Hong Kong company  Incorporated on November 25, 2010  A holding company 100% owned by HC High BVI DISPOSITION OF HC High Summit Limited Historically, one of the Company's core businesses had been the used luxurious car leasing business conducted through Beijing Tianxing Kunlun Technology Co. Ltd. ("Beijing Tianxing"), an entity that the Company controlled via certain contractual arrangements. On August 28, 2020, the Company entered into certain share purchase agreement (the "Disposition SPA") with Vision Loyal, HC High Summit Limited ("HC High HK") and HC High BVI. Pursuant to the Disposition SPA, Vision Loyal agreed to purchase HC High HK in exchange for nominal consideration of $1.00 based on a valuation report presented by an independent third party valuation firm, Beijing North Asia Asset Assessment Firm. The Company's board of directors (the "Board") approved the transaction contemplated by the Disposition SPA (the "Disposition"). The Disposition closed on August 28, 2020. HC High HK is the sole shareholder of Hao Limo, and controls Beijing Tianxing via a series of contractual arrangements. The list of disposed entities are as follows: Name Relationship HC High Summit Limited ("HC High HK") 100% owned by HC High BVI before August 28, 2020 Hao Limo Technology (Beijing) Co. Ltd. ("Hao Limo") WOFE, 100% owned by HC High HK Beijing Tianxing Kunlun Technology Co. Ltd. ("Beijing Tianxing")* VIE of Hao Limo * Upon disposition, Beijing Tianxing' six wholly owned subsidiaries and one 60% owned subsidiary were also disposed.  Beijing Tianrenshijia Apparel Co., Ltd.  Beijing Blue Light Marching Technology Co., Ltd.  Beijing Eighty Weili Technology Co., Ltd.  Beijing Bat Riding Technology Co., Ltd  Beijing Blue Light Riding Technology Co., Ltd., and  Car Master (Beijing) Information Consulting Co., Ltd.  Beijing Blue Light Supercar Technology Co., Ltd. (over which the Company previously held 60% equity interest) Upon closing of the Disposition on August 28, 2020, Vision Loyal became the sole shareholder of HC High HK and as a result, assumed all assets and obligations of all the subsidiaries and VIE entities owned or controlled by HC High HK. See Note 4 for details of assets and liabilities of discontinued operations. The following diagram illustrates our corporate structure as of the date of this report, reflecting the Disposition and acquisition of Qianhai Baiyu as discussed further in "Note 14. Subsequent Events" .