Since June 2016, we have launched our commission-free online auction services on Taobao Judicial Auction Platform. With its established procedures, regulations and efficient management, our auctions have seen increasingly better efficiency and results. By 22 December 2017, we have auctioned off 47 items on the platform. Since 2017, we have put up 36 items for online auction, obtained 51 online bids, and achieved a transaction volume of CNY 122.3 million. The success rate has increased from 48% to 77%, the failure rate has dropped from 52% to 23%, and the highest premium rate is 232%. Below are the main measures we have taken to achieve these results:

First, stronger regulatory support. Based on the practices of the court, we have implemented the Methods of Haikou Maritime Court of Online Judicial Auction (Sale) Practices. These methods regulate online judicial auction and sale as well as their processes. They set out the roles and approval procedures of the auction appraisal department, the finance department, and the hearing and enforcement department. The coordination between departments has been well regulated.

Second, better staffing. Our Enforcement Bureau is in charge of auction appraisals, and it has selected a team of competent and experienced enforcement officers with internet proficiency to run the operations of online judicial auctions. They make preparations for online auctions, and answer inquiries from and provide technical guidance for bidders. This facilitates the combined management of appraisals and auctions, and helps to keep track of progress in the auctions and the enforcement.

Third, more information transparency. When an item for auction is under appraisal, the appraisal agency is under guidance and on-site supervision in each case. This ensures that it issues a detailed, objective and truthful appraisal report. At the early stage of an auction, an investigation is conducted into the ownership, condition, fault, and tenancy etc. of the item to be put up for auction. Efforts are made to meticulously verify the appraisal report and auction (sale) ruling, the examination, control and evacuation of the item, and information about any known buyers with the right of first refusal. Photos and condition of the item are fully displayed on Taobao.com to ensure the transparency of accurate information on the item.

Fourth, better application of information technology. We have integrated our self-developed judicial appraisal system into the online auction platform, allowing litigants to log on the system and help themselves to select appraisal agencies online. They can also browse the appraisal results and watch the whole auction process. This has efficiently improved the efficiency and transparency of appraisals and judicial auctions. The comprehensive cloud-base supervision has optimized the interests of litigants.