深物业B:2023年半年度报告（英文版）

ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023

SHENZHEN PROPERTIES & RESOURCES DEVELOPMENT (GROUP) LTD.INTERIM REPORT 2023

（Announcement No. 2023-16）

August 2023

1ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023

Part I Important Notes Table of Contents and Definitions

The Board of Directors (or the “Board”) the Supervisory Committee as well as the directors

supervisors and senior management of ShenZhen Properties & Resources Development

(Group) Ltd. (hereinafter referred to as the “Company”) hereby guarantee the factuality

accuracy and completeness of the contents of this Report and its summary and shall be

jointly and severally liable for any misrepresentations misleading statements or material

omissions therein.Liu Shengxiang the Company’s legal representative Cai Lili the Company’s head of

financial affairs and Liu Qiang head of the Company’s financial department (equivalent to

financial manager) hereby guarantee that the Financial Statements carried in this Report are

factual accurate and complete.All the Company’s directors have attended the Board meeting for the review of this Report

and its summary.The Company has no interim dividend plan either in the form of cash or stock.This Report and its summary have been prepared in both Chinese and English. Should there

be any discrepancies or misunderstandings between the two versions the Chinese versions

shall prevail.

2ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023

Table of Contents

Part I Important Notes Table of Contents and Defin... 2

Part II Corporate Information and Key Financial In... 6

Part III Management Discussion and Analysis...........9

Part IV Corporate Governance.........................27

Part V Environmental and Social Responsibility...... 29

Part VI Significant Events.......................... 31

Part VII Share Changes and Shareholder Information...41

Part VIII Preferred Shares...........................45

Part IX Bonds....................................... 46

Part X Financial Statements..........................47

3ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023

Documents Available for Reference

I. The financial statements with the signatures and stamps of the Company’s legal representative

head of financial affairs and head of the financial department; and

II. The originals of all the Company’s documents and announcements disclosed to the public via

newspapers designated by the CSRC in the Reporting Period.

4ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023

Definitions

Term Definition

The “Company” the “Group” “SZPRD” or “we” ShenZhen Properties & Resources Development (Group) Ltd. and itsconsolidated subsidiaries except where the context otherwise requires

SIHC Shenzhen Investment Holdings Co. Ltd.Huangcheng Real Estate Shenzhen Huangcheng Real Estate Co. Ltd.Dongguan Company Dongguan ITC Changsheng Real Estate Development Co. Ltd.Xuzhou Company SZPRD Xuzhou Dapeng Real Estate Development Co. Ltd.Yangzhou Company SZPRD Yangzhou Real Estate Development Co. Ltd.Jinghengtai Shenzhen Jinghengtai Real Estate Development Co. Ltd.Rongyao Real Estate Shenzhen Rongyao Real Estate Development Co. Ltd.ITC Property Management Shenzhen International Trade Center Property Management Co. Ltd.ITC Technology Park Shenzhen ITC Technology Park Service Co. Ltd.Guomaomei Life Shenzhen Guomaomei Life Service Co. Ltd.Commercial Operation Company Shenzhen SZPRD Commercial Operation Co. Ltd.Guomao Catering Shenzhen Guomao Catering Co. Ltd.Supervision Company Shenzhen Property Engineering and Construction Supervision Co. Ltd.Wuhe Company Shenzhen Wuhe Industry Investment Development Co. Ltd.Urban Renewal Company Shenzhen Wuhe Urban Renewal Co. Ltd.Shenzhen Property Management Shenzhen Property Management Co. Ltd.Foreign Trade Property Management Shenzhen Foreign Trade Property Management Co. Ltd.Shenfubao Property Development Shenzhen Shenfubao Property Development Co. Ltd.Hydropower Company Shenzhen Shenfubao Hydropower Municipal Service Co. Ltd.Security Service Company Shenzhen Free Trade Zone Security Service Co. Ltd.FMC Shenzhen Facility Management Community Technology Co. Ltd.RMB RMB’0000 RMB’00000000 Expressed in the Chinese currency of Renminbi expressed in tens ofthousands of Renminbi expressed in hundreds of millions of Renminbi

5ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023

Part II Corporate Information and Key Financial Information

I Corporate Information

Stock name PRD PRD-B Stock code 000011 200011

Changed stock name (if any) N/A

Stock exchange for stock listing Shenzhen Stock Exchange

Company name in Chinese 深圳市物业发展(集团)股份有限公司

Abbr. (if any) 深物业集团

Company name in English (if

any) ShenZhen Properties & Resources Development (Group) Ltd.Abbr. (if any) SZPRD

Legal representative Liu Shengxiang

II Contact Information

Board Secretary Securities Representative

Name Zhang Gejian Ding Minghua and Chen Qianying

20/F International Trade Center Renmin South 39/F International Trade Center Renmin South

Address Road Luohu District Shenzhen Guangdong Road Luohu District Shenzhen Guangdong

Province P.R.China Province P.R.China

Tel. 0755-82211020 0755-82211020

Fax 0755-82210610 82212043 0755-82210610 82212043

Email address 000011touzizhe@szwuye.com.cn 000011touzizhe@szwuye.com.cn

III Other Information

1. Contact Information of the Company

Indicate by tick mark whether any change occurred to the registered address office address and their zip codes website address

email address and other contact information of the Company in the Reporting Period.□ Applicable□ Not applicable

No change occurred to the said information in the Reporting Period which can be found in the 2022 Annual Report.

2. Media for Information Disclosure and Place where this Report is Kept

Indicate by tick mark whether any change occurred to the information disclosure media and the place for keeping the Company’s

periodic reports in the Reporting Period.□ Applicable□ Not applicable

The website of the stock exchange media and other websites where the Company’s periodic reports are disclosed as well as the

place for keeping such reports did not change in the Reporting Period. The said information can be found in the 2022 Annual

Report.

6ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023

3. Other Information

Indicate by tick mark whether any change occurred to other information in the Reporting Period.□ Applicable□ Not applicable

IV Key Financial Information

Indicate by tick mark whether there is any retrospectively restated datum in the table below.□ Yes□ No

H1 2023 H1 2022 Change (%)

Operating revenue (RMB) 1905464632.85 1988299840.24 -4.17%

Net profit attributable to the

listed company’s shareholders 220903444.63 250802157.71 -11.92%

(RMB)

Net profit attributable to the

listed company’s shareholders

before exceptional gains and 220844711.14 256650611.05 -13.95%

losses (RMB)

Net cash generated from/used

in operating activities (RMB) -580021658.15 -395994231.09 -46.47%

Basic earnings per share

(RMB/share) 0.3707 0.4208 -11.91%

Diluted earnings per share

(RMB/share) 0.3707 0.4208 -11.91%

Weighted average return on

equity (%) 4.92% 5.40% -0.48%

30 June 2023 31 December 2022 Change (%)

Total assets (RMB) 15499537209.75 15800287610.40 -1.90%

Equity attributable to the

listed company’s shareholders 4418069737.97 4412555547.97 0.12%

(RMB)

V Accounting Data Differences under China’s Accounting Standards for Business

Enterprises (CAS) and International Financial Reporting Standards (IFRS) and Foreign

Accounting Standards

1. Net Profit and Equity Differences under CAS and IFRS

□Applicable□ Not applicable

No such differences for the Reporting Period.

2. Net Profit and Equity Differences under CAS and Foreign Accounting Standards

□Applicable□ Not applicable

No such differences for the Reporting Period.

7ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023

VI Exceptional Gains and Losses

□Applicable □ Not applicable

Unit: RMB

Item Amount Note

Gain or loss on disposal of non-current assets (inclusive of

impairment allowance write-offs) 174379.69

Government subsidies through profit or loss (exclusive of

government subsidies consistently given in the Company’s

ordinary course of business at fixed quotas or amounts as per 501658.00

governmental policies or standards)

Non-operating income and expense other than the above -562616.42

Less: Income tax effects 31670.01

Non-controlling interests effects (net of tax) 23017.77

Total 58733.49

Particulars about other gains and losses that meet the definition of exceptional gain/loss:

□ Applicable□ Not applicable

No such cases for the Reporting Period.Explanation of why the Company reclassifies as recurrent an exceptional gain/loss item listed in the Explanatory Announcement

No. 1 on Information Disclosure for Companies Offering Their Securities to the Public—Exceptional Gain/Loss Items:

□ Applicable□ Not applicable

No such cases for the Reporting Period.

8ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023

Part III Management Discussion and Analysis

I Principal Activity of the Company in the Reporting Period

(I) Core Business Overview

Established in 1982 the Company was originally known as "Luohu Engineering and Construction Headquarters" and renamed

"Shenzhen Municipal Property Development Corporation" in August 1985. The Company was determined as the second batch of

pilot units for joint-stock reform of state-owned enterprises in 1988. Approved by the municipal government the Company renamed

to ShenZhen Properties & Resources Development (Group) Ltd. in 1990. The stock of the group company (stock name: SZPRD A/B;

stock code: 000011 200011) was officially listed in Shenzhen Stock Exchange in March 1992.The Company contracted and built Shenzhen International Trade Center Building as Party A and created planned and organized the

world-famous "Shenzhen Speed". The building was the place where Chairman Deng Xiaoping gave talks in his inspection to the

south. SZPRD came into being because of the building and has risen amid the Reform and Opening up campaign. Emerging and

growing together with Shenzhen a city of miracles the Company has been “a loyal practitioner of the spirit of the ox” and overcome

difficulties in proposing new services in the new era. SZPRD employees have manifested the enterprise spirit of "going ahead and

reforming" and centered on the functional positioning as state assets of "serving national economic and social development the city

the industry and the people". The Company has adhered to the original aspiration and striven ahead to be a pioneer. Therefore it has

made remarkable achievements in development speed and quality. So far the Company has grown into a large comprehensive

industrial group from the project company that built Shenzhen International Trade Center Building. In the new era the Company

sizes up the situation seizes the momentum and forges ahead toward the goal and vision of becoming a "leading smart operator of

industry-city space in China".

2023 is a new starting point for the Group upon four decades of development. During the Reporting Period the Company continued

to make efforts in four business sectors including industry-city space development property management services industrialecosystem operation and main business ecosystem investment in its main business. Also it continued to work on “faster growthbetter operating performance empowerment and effectiveness” with smooth and orderly progress in various aspects. Meanwhile

the Company endeavored to further consolidate and highlight the advantages of industry-city integration and the whole industrial

chain with respect to its products and services.

1. Industrial & urban space development

In terms of the space development segment the Company is specialized in developing the residence the hi-end apartment the office

building and the industrial park and has developed a batch of brand projects including Shenzhen International Trade Center

Building Huanggang Port Tian'an International Building Qianhai Gangwan Garden and Golden Collar Holiday. Based on its

present real estate development business the Company will improve its existing portfolio and plan for new businesses. It will engage

a number of subsidiaries in property development and urban renewals including Huangcheng Real Estate Rongyao Real Estate and

the Urban Renewal Company strengthen capital operation via the listing platform and make a reasonable layout of the city space

development segment. In the Reporting Period SZPRD made greater efforts for land acquisition in this segment. For instance it

steadily advanced the development projects inside and outside Shenzhen accelerated the sales of projects and sped up cash inflow.Moreover it focused on the development and construction of industry-city complexes and accelerated to create an integrated and co-

existing model for the development of boutique urban residences and high-end industry space.

2. Property management services

The Company's property management segment takes ITC Property Management as its platform. As China’s first batch of first-class

qualified enterprises in property management ITC Property Management after more than 30 years of development has become a

domestic first-class property service provider with diversified business capabilities and technological strength and has been awarded

"Top 100 National Property Management Enterprises" and "Excellent Enterprise of Property Management in China's Industrial

9ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023

Parks" for many years in a row. The projects under its management are all over the country and its business radiates to various

regions in China such as South China Southwest China East China and North China as well as the China-Vietnam Cooperation

Zone in Vietnam. The Company's existing business has covered industrial parks cultural tourism scenic spots government agencies

rail transportation housing hospitals schools hotels and other various business models and is planning to develop the business of

grassroots social governance. The Company collaborated with the government to create a safe harmonious civilized and orderly

urban environment basically forming a pattern of integrated development of multiple business models. There are more than 20

subsidiaries under ITC Property Management and with the functional departments of the headquarters as the platform it has actively

built three centers of "market empowerment and supervision" and formed three business centers and profit centers of specialized

business model companies specialized companies and companies in other regions so as to continuously and effectively realize the

new pattern of coordinated development of "1+1>2". The total managed properties have exceeded 35 million square meters of which

the managed industrial parks surpassing 10 million square meters. Notably the scale of operational management for high-end

industrial parks is predicted to retain its exalted status among domestic industrial park operations.

3. Industrial ecosystem operation

With respect to the industrial ecosystem operation segment the Company gave full play to its foundation in the three basic industries

namely real estate development property management and leasing and the advantage of the whole industry chain focused on the

two major strategies of “value-added operation of existing assets” and “light-asset operation output” and deepened internal and

external strategic cooperation. It is committed to creating a closed loop of the whole industrial ecosystem covering project

development services park operation services and supporting rental operations and keeping improving the space service and rental

ecosystem in the industrial park. A unique and mature business development model has been put in place with the capability and

experience of the whole chain of planning dismantling construction control business invitation operation and on-site management

with respect to various assets. The Company is expediting the stock taking and assessment of its properties in stock and strengthening

the management over them. In the future it will gradually expand the scope of leasing and raise the development capability of

property rental. Moreover the Company gradually shifts the focus of industrial ecosystem operation to sci-tech parks provides

supporting services covering the whole value chain such as the import of industrial ecosystem project development services and

park operation services and serves the role of "space service provider" centering on sci-tech parks.

4. Other business

In the Reporting Period the Company's businesses also included catering service and project supervision service. The catering

service is operated by Shenzhen Guomao Catering Co. Ltd. Guomao Catering Co. Ltd. established in 1986 became famous at

home and abroad as it was the place where President Deng Xiaoping gave talks during his inspection to the south in 1992. Since its

establishment it has received more than 600 country leaders famous people and numerous domestic and overseas guests with its

reputation spreading all over the world. The project supervision service is handled by the subordinated supervision company of the

Group. The company has the Grade A supervision qualification of building works of the Ministry of Housing and Urban-Rural

Development (MOHURD). It was originally known as Shenzhen Property Engineering Management Department and takes part in

the construction and management work of Shenzhen International Trade Center Building. It is a witness of the whole process of

"Shenzhen speed" and mainly serves for the development project of the Group.The Company is subject to the information disclosure requirements for the real estate industry in the Self-Disciplinary and

Regulatory Guideline No. 3 of the Shenzhen Stock Exchange for Listed Companies—Industry-specific Information Disclosure.(II) Industry Review

1. Real estate industry

In the first half of 2023 the macro-economic operation continued the development trend of overall stability and steady progress.As the economy and society fully returned to normal macro policies took effect and the national economy rebounded with high-

quality development being boosted steadily. Since 2021 real estate regulation has maintained the orientation that "houses are for

living in not for speculation" and clearly upheld the principles of "implementing city-specific policies" and "supporting people's

10ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023

demand for housing improvement". The real estate policies as a whole continued to present a loose landscape that had existed

since the end of last year and adhered to the synergy of five endeavours i.e. boosting demands preventing risks guaranteeing

people's livelihood transforming development patterns and standardising administration. In January the People's Bank of China

(PBC) and the China Banking and Insurance Regulatory Commission (CBIRC) announced a decision to establish a dynamic

adjustment mechanism for first-home loan rate policy. According to the mechanism prescribed minimum first-home loan rate can

be further lowered temporarily if the price of new homes plunges for three months in a row. In addition CBIRC made a proposal

during the work meeting for the year 2023 to adhere to the orientation that "houses are for living in not for speculation"

implement the measures of "16 Articles concerning Finance" uphold the principle of "implementing city-specific policies" and

adopt differentiated credit policies and endeavour to facilitate the normal circulation of finance and real estate. In February China

Securities Regulatory Commission (CSRC) started the pilot project of privately offered fund for real asset. Under the existing

framework of privately equity fund CSRC provided "privately offered fund for real asset" as a new category and took

differentiated policies of regulation in expectation to further leverage the advantages of privately offered fund in diversified asset

allocation and professional investment operation thus meeting rational financing demands in real asset. During the regular

meeting of the first quarter in 2023 the Monetary Policy Committee of PBC proposed once again that all work related to

completion guarantee guaranteeing people's livelihood and guaranteeing stability should be advanced soundly city-specific

policies should be implemented to boost rigid and improved housing demand the improvement of financial policies system for

housing lease should be sped up and the sector of real estate should be advanced steadily toward a new development pattern. In

May PBC released the China Monetary Policy Report Q1 and proposed that M&A across the sector of real estate should be

promoted to prevent and resolve the risks faced by high-quality leading real estate companies effectively and the status quo of

their assets and liabilities should be improved to advance the implementation of the re-lending dedicated to easing the companies'

difficulties and the supporting plans for housing lease loan.From the regional market in the first half of 2023 the regulatory policies for the real estate market in Shenzhen remained prudent.In January Housing and Construction Bureau of Shenzhen Municipality and other five departments jointly released the Scheme

for Extensive Adoption of the Model Featuring "Ownership Transfer with Collateral" of Second-hand Houses in Shenzhen City to

popularise the model and reduce transaction costs. In March Housing and Construction Bureau of Shenzhen Municipality released

the Regulations for the Administration of Housing Fund Loan in Shenzhen City and proposed that more efforts should be made to

support the purchase of houses for first-time buyers families with several children green building buyers etc. in housing fund

loan. In May Housing and Construction Bureau of Shenzhen Municipality released the Implementation Plan for Housing

Development in Shenzhen in 2023 (hereafter referred to as "the Implementation Plan"). According to the goals of housing supply

stipulated in the Implementation Plan in 2023 the government of Shenzhen City plans to provide and allocate 80000 affordable

houses covering a building area around 4190400 square meters. The presales and cash sales of 60000 commercial houses

covering a building area of 6000000 square meters have been approved in the Implementation Plan.In the first half of 2023 with numerous positive policy incentives such as adjustment of reference price policy housing loan rate

cut and extensive adoption of ownership transfer with collateral the real estate market weathered its record low and stepped upon

a path of slow but steady recovery. During the process the transfer number of second-hand houses reached 16236 up 63% year

on year. In terms of land market in the first half of the year Shenzhen launched a total of 37 land plots with a total planned area

of 7675600 square meters including seven residential land plots with a planned building area of 755300 square meters. In the

first half of the year the land auction in Shenzhen evidently proved that the local land market was recovering and surging and

some of local private real estate companies had overcome the dilemma and were regaining their vitality marking the resurge of

confidence in the real estate market.In the face of changes in industry policies and development trends mainstream real estate enterprises are gradually making efforts in

diversified business layouts. At present mainstream real estate enterprises have already entered and formed stable industry pattern in

many relevant fields other than residential development and sales such as property management commercial property long-term

rental and logistics real estate. Additionally sub-industries such as elderly care education and agency construction have also

11ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023

achieved rapid development. The industry has accelerated its transformation from real estate to immovable property gradually

shifting from the scale-driven advantage formed by residential development and sales to the integration of development operation

and service.

2. Property management industry

In recent years driven by continued urbanization consumption upgrade and encouraging policies and overlaid with technological

empowerment and capital dividends the property management industry has entered a period of rapid development. In 2022 national

and local governments promulgated numerous policies to encourage the development of community elder care childcare property

management domestic services catering retail and other diversified life services. Community elder care in particular was mentioned

for many times as a business direction facilitated vigorously by the policies. In May 2023 General Office of the CPC Central

Committee and State Council released the Opinions on Advancing the Development of Basic Elder Care Service System according

to which private sectors should be encouraged to participate in supply of basic elder care service and enterprises of property

management services should be supported in supply of home-based community elder care services in light of local realities.Apparently elder care remains a priority of the policies. Community elder care as an important component of value-added

community services is both an opportunity and a challenge for suppliers of property management services. Scale and boundary

expansion remains the main theme in the development of the property management industry. From the perspective of M&A events in

the first five months of the year a total of six M&A events of listed real estate companies were disclosed which involved less than

RMB400 million. The figures marked a plunge compared with that of the same period of last year. The M&A cases of listed real

estate companies in the first half of 2023 occurred mainly to improve operation capability of diversified business patterns and

facilitate high-quality expansion of business scale which were rational. In terms of property management enterprises as at 30 June

2023 a total of 64 enterprises were listed including 59 on the Main Board of Hong Kong and five on the A-share and one listed

company was added to the segment of property management services.Under the impact of changes in real estate market environment and other factors the expansion rate of management scale of the

property management industry slowed down and how to improve smart management and forge smart communities became one of

the major development directions for the enterprises. Therefore the property management enterprises should enrich their knowledge

of the market and the industry and adjust their strategies and business patterns promptly to adapt to changes in market and customers'

demands. Meanwhile they should strengthen the introduction of talents proficient in management and technology and improve their

training and management to enhance their core competitiveness and innovation capability.(III) Operating Performance of the Company in the Reporting Period

In 2023 the Company closely focuses on the implementation of the key work deployment formulated at the beginning of the year

with the first half of the year seeing smooth and orderly progress in various aspects. The Real Estate Company took expansion as

the goal and made efforts to seek a breakthrough in project expansion. The Property Management Company took strategic

transformation as the guide to enhance the empowerment value and brand value. The Commercial Operation Company aimed at

improving quality and efficiency and continued to innovate the operation and management mode and each business segment has

maintained a stable and healthy development trend. During the Reporting Period the Company achieved operating revenue of

approximately RMB1.9 billion and a gross profit of approximately RMB0.29 billion and all other indicators such as expenses and

total remunerations were under effective control.First the industry-city space development segment maintained stable performance with project construction being

actively promoted. In the first half of the year the real estate business recorded operating revenue of approximately RMB1.05

billion accounting for 55% of the total revenue. During the Reporting Period the real estate segment of the Company continued to

strengthen the synergy of nodal targets and resource guarantee to coordinate the sales collection of real estate projects as well as

development and construction in a comprehensive manner. Seizing the time window the Company started channel referral for the

at-the-close order of Golden Collar project launched the openness demonstration area of Sea Bay project and realised the

marketing of Yutang Shangfu project successfully. Fuchang Phase II project was completed and delivered with recognised revenue

of approximately RMB960 million which laid a solid foundation for the Group's fulfilment of its annual operating indicators. The

12ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023

announcement on transfer of Yupin Luanshan project is scheduled to be completed at the end of the year which will vigorously

facilitate the Group to fulfil its annual profit target. The schedule as a whole is in order and under control with Shenyang Digital

and Smart City project Tianjun Industrial Park Fuyuan Industrial Area Huuiyang Danshui project and other projects being

advanced steadily.Second the property management segment grew steadily and numerous measures were taken to improve the core

competitiveness in priority. In the first half of the year the property management business recorded operating revenue of

approximately RMB770 million accounting for 41% of the total revenue. With a total of 21 expanded projects added in the

property management segment Shenzhen International Trade Center Property Management Co. Ltd. (ITC Property Management)

was awarded numerous honours including "Top 100 Comprehensive Strength of Chinese Property Service Enterprises in 2022" for

seven years in a row whose brand influence continued to increase. In the first half of the year ITC Property Management

highlighted internal construction and optimise its organisation framework to build a more scientific and rational management

system; further improved the synergy if internal components of the system expanded SH-STIC Openness Centre and

Comprehensive Service Centre projects incorporated International Trade Industry Space Company in the joint venture with

Shenzhen Construction Development (Group) Company ("Shenzhen Construction Development") and advanced business related

to entry and takeover of Shenzhen Construction Development Yunqi Building and other comprehensive projects; continued to

advance the integration of five property management enterprises recently merged and acquired into the Group and formulated

development strategies according to the integration thinking pattern featuring professionalism systematicness and maximum

synergy.Third quality and efficiency were improved and core operating capabilities were cultivated for the industrial ecological

operation and other segments. In the first half of the year the lease operating business recorded operating revenue of

approximately RMB80 million accounting for 4% of the total revenue. In recent years the Company has taken various steps to

accelerate its transformation and upgrading explored the establishment of an incremental sharing mechanism and intensified

project expansion. Besides core operating capabilities were cultivated in multiple paths and the transformation of the current

simple leasing business mode to a commercial operation mode was promoted thereby boosting the development and growth of the

industrial ecological operation segment and enhancing the Group's layout of suppliers of smart operation of industrial and urban

space operation. In terms of industrial investment promotion the Group built a "1+2+3+N" industrial strategy system through

multiple channels explored the in-depth property development strategy and vigorously promoted investment promotion work for

Yangzhou and International Trade Mall upgrade projects according to the Industrial Operation White Paper released last year.New additions to the land bank:

Considerati

Name of Floor area Total land on of the

land lot or Location Planned Site area with plot

How the The

land is Company’s price Company’s

project use of land （㎡） ratio obtained interest (RMB’000 interest

（㎡） 0) (RMB’000

None None None None None None

Cumulative land bank:

Name of project/area Site area（0000 Floor area 0000 Floor area available for㎡）（㎡） development（0000㎡）

Land in Danshui Huiyang

District Huizhou City 1.77 4.25 4.25

Land in Hongqi Town

Haikou City 15.80 - -

Total 17.57 4.25 4.25

Development status of major projects:

13ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023

Floor

area Cumu

that lative

compl floorarea

Ci The Time for Planned eted Estimat Cumulat

ty/ Loc Comp commen %cement deve % that has Site area floor area

constr that ed total ive

re Name of uction

has investm investm

gi project

atio Usage any’s of lope completed with plot（㎡） ratio in the compln interes ent ent

on t construc d

construction

（㎡） Curre

eted (RMB’0 (RMB’0

tion nt constr 000) 000)

Period uction

（㎡（㎡）

）

Sh Futi

en FuhuiHuayu an Resident Co

zh an Dist ial 100% 2018.12 mpl 100% 4274 33430 0

4352

29113377396

en rict eted

The main

Gua

Sh Und construction

ngm

en Yutang Resident 100.0 er above ground

ing 2022.03 cons reaches 30 14901 81960 0 0 265868 191086

zh Shangfu ial 0%

Dist truct floors and has

rict ion been opened

for pre-sale

Phase I has

obtained the

land use

permit; the

main body of

Resident Lot 02# inPhase II has

ial

Gua reached 7-12

Sh industria Und

ngm er floors Loten Lanhu l 69.00

ing 2020.10 cons 03# has beenconstructed to 68298 433640 0 0 840000 462294zh Shidai commer %

Dist truct

en cial and plus or minus

rict ion

apartme 0 and Lot04# and Lot

nt 06# are

working on

the ground

floor and

anchor cable

construction.The main

D body has beencompletely

Hu Und roofed and it

Sea Bay men Resident 100.0 er is undergoing

ua 2022.03 cons construction 51687 113713 0 0 321759 251861

Garden Tow ial 0%

n truct of doors

Ci ion windows

ty railingsdecoration

etc.Resident Und Phase I LotYa Ping

Shenyang ial

ng shan 67.00 er

D is

Digital industria 2022.09 cons undergoing

zh Vill % truct above ground

23161237025800377479109548

Town l and

ou age ion mainoffice construction

Sales status of major projects:

14ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023

Pre- Pre-

Floor sale/sal sale/sal

Floor Floor Cumulative area es Cumula

Floor

area esCit area area pre- revenue tive revenue

y/r Name of The with availabl pre- sold/sol settled settled

egi project Location Usage Company sold/sol

generat settled

plot e for d in the e in the floor in the in the

on ’s interest ratio sale d floor Current Current area Currentarea Period Current

（㎡）（㎡） Period Period (㎡) Period

（㎡） (RMB’ （㎡）（㎡） (RMB’

0000)0000)

Intersection

Sh Golden of Futian Residential

en Collar’s South Road studio

zh Resort and Binhe apartments

1338001252311200311026.39281.5119773

100.00%768.956635.4.6.07.3124.46

en apartments Road in andFutian commercial

District

Ya Residential

ng Hupan Intersection units shopszh Yujing of Shouxihu apartments 36141. 48870. 43057. 43057.ou Road and parking 100.00% 33.44 12.8 33.44 11.74

Cit Phase I

28982525

Hangou Road garages and

y lots

Ya Residential

zh Hupan

Intersection units shops

ou Yujing

of Shouxihu apartments 56935. 73121. 70116.9 70097.Road and parking 100.00% 66.97 27.35 66.97 25.09Phase II 75 96 9 88Cit Hangou Road garages and

y lots

ng Dalang

gu Songhu Town Residential 147139 149446

an Langyuan Dongguan and 100.00% 140911 140911 96 82.09 96 82.09.96 .95

Cit City commercial

Rental status of major projects:

The Cumulative

Name of project Location Usage Company’ Rentable areas working rented area

Average

（㎡） occupancy rate

interest （㎡）

Xi Apartments Apartments

(Longyuan) Shenzhen for long-term 100.00% 3967.05 3967.05 100.00%rental

Apartments

Xi Apartments (Longhua) Shenzhen for long-term 100.00% 1609.42 1609.42 100.00%

rental

Apartments

Xi Apartments (Xinhu) Shenzhen for long-term 100.00% 1626.4 1130.6 69.52%

rental

Food Court in the

International Trade Center Shenzhen Commercial 100.00% 4152.47 1676.97 40.38%

Fumin Complex Shenzhen Commercialapartments 100.00% 5900.19 4766.49 80.79%

Tower A of Wenjindu Port

Building Shenzhen

Office

building 75.00% 5904.3 5604.3 94.92%

Commercial

Haiwai Lianyi Building Shenzhen units and 75.00% 8262.88 8002.88 97.00%

offices

Anhua Building Shenzhen Offices 75.00% 1414 1414 100.00%

Pengfu Building Shenzhen Offices 75.00% 6494 6494 100.00%

Jinfu Building ShenzhenShenzhen Commercial 75.00% 1652.7 1535.7 92.92%

Jinfu Building ShenzhenShenzhen Commercial 100.00% 567.56 567.56 100.00%

15ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023

Fuxing Garden Shenzhen Residential/commercial 75.00% 5787.22 5787.22 100.00%

Fuxing Garden Shenzhen Commercial 100.00% 1417.15 1417.15 100.00%

Plant area in Tangxia Dongguan

Town Dongguan City City Plant 75.00% 21135.12 21135.12 100.00%

Pacific Business Building Shenzhen Commercialunits/offices 75.00% 3149.03 2676.54 85.00%

Pacific Business Building Shenzhen Commercialunits/offices 15.00% 14888.76 14319.54 96.17%

Kangti Building Shenzhen Commercialunits/offices 75.00% 2095.87 1925.47 91.87%

Kangti Building Shenzhen Commercialunits/offices 15.00% 1146.81 1146.81 100.00%

Lyuhua Building Shenzhen Commercialand residential 75.00% 7106.95 6588.41 92.70%

Shops on the ground floor

of Tower 48 in Lianhua Shenzhen Shops 75.00% 1000.34 1000.34 100.00%

North Village

Apartments

Haonianhua Building Shenzhen andcommercial 100.00% 1802.61 1802.61 100.00%

units

Apartments

Haonianhua Building Shenzhen andcommercial 75.00% 2277.9 2277.9 98.37%

units

Kaifeng Garden in

Shangmeilin Shenzhen Residential 100.00% 1568.85 916.92 58.45%

Fuyuan Industrial Zone Shenzhen Plant area 75.00% 47131.4 47131.4 100.00%

Tonglu Industrial Zone Shenzhen Plant area 100.00% 76886.26 73198.67 95.20%

Jiangling Industrial Zone Shenzhen Plant area 75.00% 10396.64 10396.64 100.00%

Zone 21 Shenzhen Commercial/offices 75.00% 9514.3 9438.7 99.20%

Baoli Community Shenzhen Residential 75.00% 9020.07 8079.79 89.57%

Songgang Plant Shenzhen Plant area 75.00% 5700 5700 100.00%

Longbu Plant Shenzhen Plant area 75.00% 7471.36 7471.36 100.00%

Gonglu Building in

Huanggang Shenzhen Offices 75.00% 4599.72 4527.18 98.42%

Yuetong Complex Shenzhen Offices 75.00% 3044 3044 100.00%

Department Store Plaza Shenzhen Offices 33.00% 12751.15 12751.15 100.00%

Southern Securities

Building Shenzhen Offices 33.00% 8809.8 4395.4 49.89%

Building 409 Sangda

Industrial Zone Shenzhen Plant area 33.00% 3309.2 3309.2 100.00%

Mianshui Studio

Apartment Shenzhen Apartment 33.00% 3440.12 3440.12 100.00%

Xiangfu Building Shenzhen Commercial 33.00% 3109.4 3109.4 100.00%

Primary land development:

□Applicable□ Not applicable

Financing channels:

Unit: RMB

Financing Ending balance of Financing

channel financings cost Maturity structure

16ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023

range/aver

age

financing Within 1 year 1-2 years 2-3 years Over 3 years

cost

Bank

loans 4368583592.17 3%-5% 196133324.00 3438133324.00 67302463.17 667014481.00

Total 4368583592.17 3%-5% 196133324.00 3438133324.00 67302463.17 667014481.00

Development strategy and operating plan for the coming year:

In terms of land reserves SZPRD plans to expand and boost its land reserves through market competition and capital operations.The group's focus will remain on the Guangdong-Hong Kong-Macao Greater Bay Area the Yangtze River Delta and other

regions with promising economic development prospects. To expedite project execution the group will actively facilitate market-

oriented bidding auctioning and listing as well as pursue industrial land acquisition urban renewal and project cooperation. In

terms of project development the group will focus on the core goal of “cash inflow”. To coordinate development and businessoperations effectively the group's headquarters will work hard on “faster growth better operating performance empowermentand effectiveness”. The group will deepen the management functions of the platform company continuously enhance development

capabilities in product planning project operation accelerated destocking and centralized procurement establish unified

standards deepen lean management and further strengthen the overall advantages of the group's real estate sector. To begin with

it is essential to coordinate the development of major and complex projects. This involves expediting the construction and

development of various projects such as the Humen Project Guangming Project Guanlan Bengling Urban Renewal Project and

Yangzhou Project. The second objective is to promote the preliminary work of urban renewal projects and ensure the group's

future success. In terms of the Pingshan Tianjun Industrial Park Project the group will sign the Relocation Compensation and

Resettlement Agreement and other relevant documents with Tianjun as soon as possible upon negotiation efforts while the Fuyuan

Industrial Park Project should focus on updating the unit scope unit change plan approval and special planning preparation. The

third priority is to enhance marketing and trading capabilities to meet sales targets. Opportunities in the market should be seized to

promote the sales liberalization of residential properties in Sea Bay GardenYutangShangfu and LanhuaShidai projects and finish

the payment collection associated with the transfer of equity interests in the Yupin Luanshan Project.The above business plan and business objectives do not represent the listed Company’s profit forecast for 2023. Whether it can be

achieved depends on various factors including changes in market conditions and the effort made by the management team. Investors

must pay special attention to that because there exists great uncertainty.Provision of guarantees for homebuyers on bank mortgages:

□Applicable □ Not applicable

As a usual practice for real estate developers the Company has been providing guarantees and security deposits for its homebuyers

on their bank mortgages. As at 30 June 2023 security deposits for such outstanding guarantees amounted to RMB63292452.99

of which RMB1132452.99 will be returned upon the expiry of the guarantees i.e. when the relevant homebuyers paid off their

bank mortgages and RMB62160000 will be returned after the customer has obtained the property and other title deeds and

transferred them to the bank.Joint investments by directors supervisors and senior management and the listed company (applicable for such

investments where the directors supervisors and senior management are the investment entities):

□ Applicable □ Not applicable

Compatibilit

Amount of % of As % of the y of actualName of Type of investment investment investment peak of the Cumulative Disinvestm investmentproject entity (RMB’000

0) amount

project income ent amount and

funds distributed

income

17ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023

Mandatory

Urban investment entities

Renewal of (including directors 2647.00 66.18% N/A None None N/A

Bangling and seniormanagement)

Section at

Guanlan Voluntary

Street 1 investment entities 1353.00 33.82% N/A None None N/A

Note: 1. Since this is an ongoing project the peak of the project funds cumulative income and disinvestment are unknown. For

details please refer to the relevant announcements disclosed by the Company on www.cninfo.com.cn dated 9 November 2019.II Core Competitiveness Analysis

Advantages in brand and cultural accumulation: SZPRD a state-owned enterprise in Shenzhen has forged an

unparalleled legacy of pioneering development over the past four decades. The company has crafted a diversified development

pattern with real estate development at the forefront accompanied by urban renewal property management asset operation and

industrial investment. The brand value and comprehensive strength of "Shenzhen Property" imbued with the spirit of reform and

opening up in international trade have garnered significant market recognition. Born from the World Trade Building the company

has flourished through reform and opening up coexisting and flourishing alongside the miraculous city of Shenzhen. The

corporate culture of "daring to be the first and striving for transformation" intermingles with the "pioneering spirit" of surmounting

challenges providing guidance in advancing the remarkable progress of SZPRD from "Shenzhen speed" to "Shenzhen quality."

Market-oriented advantages: In accordance with the market-oriented pace of a small change in a year and a big change in three

years the Group continues to innovate institutional mechanisms deepen internal reforms and actively benchmark with industry

models for market-oriented operation which significantly stimulates the vitality and momentum of the Group's high-quality

development. In recent years the Guanlan Bangling project pioneered the cooperation between state-owned enterprises and private

enterprises in developing urban renewal projects marking the first fully market-oriented urban renewal project in the history of the

Group and took the lead in implementing the follow-on investment system for urban renewal projects in the city's state-owned

capital system. With regard to the property management segment the Company actively explores projects outside Guangdong

Province and enhances market-oriented expansion which has effectively increased the Company’s competitiveness in China’s

property management market. The Company has simultaneously established a multi-level incentive and restraint mechanism

including follow-on investment and long-term incentives allocating resources selecting talents and assessing rewards and

punishments according to the market-oriented approach.Whole industry chain advantage: Over the years the Group has formed the advantage of the whole industry chain in the whole

process of project acquisition development and construction investment and sales leasing management and property management

especially in the area of high-end park basic services and property management quality services which has formed obvious

segmentation advantages and forged the core competitive ability of the Company.City-industry integration advantage: The Company's space development division endeavors to develop a

abundance of business types encompassing residential high-end apartments office buildings and industrial parks. From the

earliest urban complex of Shenzhen International Trade Center Building Huanggang Port area development to the development

and operation of large city-industry complex project of Guanlan Bangling urban renewal project the Group's advantages of city-

industry complex development products have been highlighted and with the implementation of a series of urban renewal projects

and industrial projects the advantages of city-industry complex will be further consolidated and enhanced.Advantages as a holding subsidiary of a Fortune Global 500 company: Shenzhen Investment Holdings Co. Ltd. the

controlling shareholder of the Company has been committed to building a world-leading state-owned capital investment and

operation company and a financial holding group. It has now developed into a state-owned capital investment company focusing

on fintech technology parks infant industries and high-end services. It has been listed in the Fortune Global 500 for four

18ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023

consecutive years and ranked 391st in 2023. Relying on the controlling shareholder's advantages in the whole industrial chain of

technology parks the Company carries out active transformation and upgrading and concentrates on the development and

construction of industry-city complexes heralding a broader development prospect.III Core Business Analysis

Overview

See contents under the heading “I Principal Activity of the Company in the Reporting Period”.Year-on-year changes in key financial data:

Unit: RMB

H1 2023 H1 2022 Change (%) Main reason for change

Operating revenue 1905464632.85 1988299840.24 -4.17%

Cost of sales Increased cost carryforwards in1372159884.25 1068652583.32 28.40%

real estate in the current period

Selling expense 13087297.05 11358858.51 15.22%

Administrative expense 149188184.18 143701058.05 3.82%

Finance costs 24192404.94 28092277.76 -13.88%

Income tax expense 78819275.76 92655204.26 -14.93%

Decreased compensation cost due

R&D investments 1711051.44 2689725.40 -36.39% to structural adjustment of R&D

staff in the current period

Net cash generated

from/used in operating Decreased cash inflows and tax-580021658.15 -395994231.09 -46.47%

activities payments in the current period

Net cash generated

from/used in investing Payments for equity transfer in the-4097141.76 -248809261.38 98.35%

activities same period of last year

Net cash generated

from/used in financing Increased bank loans in the449035955.58 151572890.35 196.25%

activities current period

Net increase in cash

and cash equivalents -133028374.78 -490792510.62 72.90%

Increased VAT of lands accrued in

Taxes and surcharges 45190786.03 394230719.81 -88.54%

the same period of last year

Asset impairment loss 2045.93 3302.47 -38.05%

Credit impairment loss -13610779.58 -14462076.54 5.89%

Return on investment Increased net profits of joint1857388.32 946914.05 96.15%

ventures in the current period

Reversal of non-operating income

Non-operating income -204898.03 2546068.46 -108.05% recognized in previous period in

the current period

Liquidated damages for delayed

Non-operating expense 357718.39 1417586.84 -74.77% delivery paid in the same period

of last year

Other comprehensive

income-changes in the Influenced by changes in the fair

-275978.56-118365.58-133.16%

fair value of other value

equity instruments

19ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023

Other comprehensive

income –differences

arising from the

1679998.832181645.00-22.99%

translation of foreign

currency-demoninated

financial statements

Material changes to the profit structure or sources of the Company in the Reporting Period:

□ Applicable□ Not applicable

No such changes in the Reporting Period.Breakdown of operating revenue:

Unit: RMB

H1 2023 H1 2022

As % of total As % of total Change (%)

Operating revenue operating revenue Operating revenue operating revenue

(%)(%)

Total 1905464632.85 100% 1988299840.24 100% -4.17%

By operating division

Property

development 1053881874.68 55.31% 1156147570.46 58.15% -8.85%

Property

management 773181325.02 40.58% 778342112.81 39.15% -0.66%

Property rental 78401433.15 4.11% 53810156.97 2.71% 45.70%

By product category

Property

development 1053881874.68 55.31% 1156147570.46 58.15% -8.85%

Property

management 773181325.02 40.58% 778342112.81 39.15% -0.66%

Property rental 78401433.15 4.11% 53810156.97 2.71% 45.70%

By operating segment

Shenzhen 1736158823.32 91.11% 1570922892.64 79.01% 10.52%

Other 169305809.53 8.89% 417376947.60 20.99% -59.44%

Operating Division Product Category or Operating Segment Contributing over 10% of Operating Revenue or Operating Profit

□Applicable □ Not applicable

Unit: RMB

Operating Cost of sales Gross profit

YoY change in YoY change in YoY change in

revenue margin operating cost of sales gross profitrevenue (%) (%) margin (%)

By operating division

Property 1053881874.development 695191661.52 34.04% -8.85% 107.70% -37.01%68

Property

management 773181325.02 635461652.02 17.81% -0.66% -5.81% 4.49%

By product category

Property 1053881874.development 695191661.52 34.04% -8.85% 107.70% -37.01%68

Property

management 773181325.02 635461652.02 17.81% -0.66% -5.81% 4.49%

20ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023

By operating segment

Core business data of the prior year restated according to the changed statistical caliber for the Reporting Period:

□ Applicable□ Not applicable

IVAnalysis of Non-Core Businesses

□Applicable □ Not applicable

Unit: RMB

Amount As % of total profit Main source/reason Recurrent or not

Share of profits of joint

Return on investment 1857388.32 0.63% Yes

ventures

Asset impairments Inventory valuation2045.93 0.00% Not

allowances

Reversal of non-

Non-operating income operating income-204898.03 -0.07% Not

recognized in previous

period

Non-operating expense Payment of small non-357718.39 0.12% Not

operating expense

Credit impairment loss Allowances for-13610779.58 -4.64% Not

doubtful accounts

VAnalysis of Assets and Liabilities

1. Significant Changes in Asset Composition

Unit: RMB

30 June 2023 31 December 2022 Change in Reason for any

As % of As % of percent significant

Amount total Amount total age change

assets assets (%)

Monetary Payment for

assets 1392204627.76 8.98% 1517528893.83 9.60% -0.62% land

Accounts

receivable 416925839.15 2.69% 419933915.30 2.66% 0.03%

Operating

Contract assets 110384064.37 0.71% 1094632.90 0.01% 0.70% revenue

carryforwards

Inventories 10848296900.64 69.99% 10975334223.37 69.46% 0.53%

Investment

property 405664937.06 2.62% 405762739.18 2.57% 0.05%

Long-term Increased

equity 81575705.63 0.53% 79781437.31 0.50% 0.03% returns from

investments joint ventures

Fixed assets 72977952.16 0.47% 82745172.12 0.52% -0.05%

Right-of-use

assets 55776458.18 0.36% 70168415.65 0.44% -0.08%

Operating

Contract

liabilities 119759723.57 0.77% 920828040.81 5.83% -5.06% revenue

carryforwards

21ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023

Long-term

borrowings 4172450268.17 26.92% 3618782344.00 22.90% 4.02% New bank loan

Lease liabilities 62925499.87 0.41% 77963283.55 0.49% -0.08%

Recovery of

certain current

accounts and

Other

receivables 624876343.49 4.03% 639903523.33 4.05% -0.02% increased

allowances for

doubtful

accounts

Increased debit

Other current balance of

70987410.260.46%65655266.270.42%0.04%

assets reclassified tax

payable

Deferred

income tax Decreased land1353238186.66 8.73% 1383050586.04 8.75% -0.02%

assets VAT provisions

Increased

Other non- prepayments

3926873.080.03%2750873.080.02%0.01%

current assets for fixed asset

purchase

Decreased

Accounts accounts

497515760.203.21%608283388.523.85%-0.64%

payable payable for

engineering

Advances from Decreased

1209185.480.01%2260847.310.01%0.00%

customers rental advances

Increased

Other payables 1704126936.52 10.99% 1515085832.45 9.59% 1.40% dividends

payable

Other non-

current 128251841.93 0.83% 128008919.79 0.81% 0.02%

liabilities

2. MajorAssets Overseas

□Applicable□ Not applicable

3. Assets and Liabilities at Fair Value

□Applicable □ Not applicable

Unit: RMB

Gain/loss

on fair- Impairment Purchas Sold invalue Cumulative fair-

Item Beginning changes in value changes allowance ed in the

the Other Ending

amount the charged to equity for the Reportin

Reporti

ng changes amount

Reporting Reporting g Period Period

Period Period

Financial

assets

Investment

s in other 887838.64 -275978.56 23495.57 635355.65

equity

instruments

22ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023

Total of the

above 887837.64 -275978.56 23495.57 635355.65

Financial

liabilities 0.00 0.00

Contents of other changes:

Other changes were resulted from exchange rate movements.Significant changes to the measurement attributes of the major assets in the Reporting Period:

□ Yes□ No

4. Restricted Asset Rights as at the Period-End

Item Ending carrying value Reason for restriction

Monetary assets 15539145.06 [Note 1]-[Note 9]

Land use rights at Fumin New Village Futian District

Shenzhen 542507314.43 [Note 10]

Total 558046459.49

Note 1: In terms of monetary assets with restricted right to use at the period-end there was a bank guarantee money of

RMB2200000.00 of the subsidiary company Shenzhen Shenfubao Property Development Co. Ltd.Note 2: In terms of monetary assets with restricted right to use at the period-end there was an advance payment guarantee deposit of

RMB459627.50 issued by the subsidiary company Shenzhen Facility Management Community Technology Co. Ltd. in December

2021 for the upgrading and reconstruction of the smart park of Shenzhen Bay Eco-Technology Park and the software platform

development contract.Note 3: In terms of monetary assets with restricted right to use at the period-end there was RMB3000000.00 of the subsidiary

company Shenzhen Facility Management Community Technology Co. Ltd. frozen by a court of law due to pre-litigation

preservation for contract disputes.Note 4: In terms of monetary assets with restricted right to use at the period-end there was a loan deposit of RMB1132452.99

provided as mortgage loan guarantees for commercial housing purchasers and paid by the Company as a real estate developer

according to real estate business practices.Note 5: In terms of monetary assets with restricted right to use at the period-end there was RMB5270833.33 of interest on term

deposits accrued at the period-end.Note 6: In terms of monetary assets with restricted right to use at the period-end there was RMB90000.00 of the subsidiary SZPRD

Xuzhou Dapeng Real Estate Development Co. Ltd. frozen due to house sale contract dispute case.Note 7: In terms of monetary assets with restricted right to use at the period-end there was RMB129315.23 in the account of the

subsidiary company Shenzhen Property Engineering and Construction Supervision Co. Ltd. The account was in a receiving-only

status because the legal person change formalities had not been completed by the period-end.Note 8: In terms of monetary assets with restricted right to use at the period-end there was a POS security deposit of RMB1500.00

of subsidiary Shandong Shenguomao Real Estate Management Co. Ltd.Note 9: In terms of monetary assets with restricted right to use at the period-end there was RMB3255416.01 of supervision funds

for real estate projects of the subsidiary Shenzhen Guangming Wuhe Real Estate Co. Ltd.Note 10: Due to the needs of daily business activities the Company applied for a loan from Bank of Communications Co. Ltd.Shenzhen Branch and mortgaged the land use right of Fumin New Village Futian District. The loan has a duration from November

27 2020 to November 27 2023 and applies floating interest rates.

23ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023

VI Investments Made

1. Total Investment Amount

□Applicable□ Not applicable

2. Major Equity Investments Made in the Reporting Period

□Applicable□ Not applicable

3. Major Non-Equity Investments Ongoing in the Reporting Period

□Applicable□ Not applicable

4. Financial Investments

(1) Securities Investments

□Applicable □ Not applicable

Unit: RMB

Gain/

Loss

on Accum

Na Accou fair ulated Purc Gain/Initial

me nting Begin value fair hased

Sold

in loss Endin Source

Variety of Code of of invest measur ning chan value in Repo in g Accou of

security security sec ment ement carryi ges change Repo rting Repo carryi nting invest

urit cost metho ng in s rting rting ng title ment

y d value Repo charge Perio

Perio Perio value funds

rting d to d

d d

Perio equity

Jinti Invest Obtain

an Fair ments

Domestic - 234 ed in

400016 A 3565 value 8878 6353 in

/Foreign 0.00 27597 0.00 0.00 95.5 other Jintian

420016 Jinti 856.06 metho 38.64 55.65 ’s debt

stock 8.56 7 equity

an d instru restruc

B ments turing

-234

356588786353

Total -- 0.00 27597 0.00 0.00 95.5 -- --

856.0638.6455.65

8.567

(2) Investments in Derivative Financial Instruments

□Applicable□ Not applicable

No such cases in the Reporting Period.

5. Use of Funds Raised

□Applicable□ Not applicable

No such cases in the Reporting Period.

24ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023

VII Sale of Major Assets and Equity Investments

1. Sale of Major Assets

□Applicable□ Not applicable

No such cases in the Reporting Period.

2. Sale of Major Equity Investments

□Applicable□ Not applicable

VIII Principal Subsidiaries and Joint Stock Companies

□Applicable □ Not applicable

Principal subsidiaries and joint stock companies with an over 10% effect on the Company’s net profit

Unit: RMB

Relationshi Principal

Name p with the Registered Total assets Net assets Operating Operatingactivity Net profit

Company capital revenue profit

Shenzhen

Huangchen Developme

g Real Subsidiary nt and sales 30000000. 79287992 29831461 77467506. 16115613. 10982642.Estate Co. of real 00 88.86 16.24 32 20 51

Ltd. estate

Shenzhen

Internation

al Trade Property

Center Subsidiary manageme 20000000. 17549934 35271797 78627146 59099970. 41591766.Property nt services 00 00.24 7.70 6.76 86 73

Manageme

nt Co. Ltd.Subsidiaries obtained or disposed in the Reporting Period

□Applicable □ Not applicable

Subsidiary How subsidiary was obtained or disposed Effects on overall operations andin the Reporting Period operating performance

Revenue: RMB0

Zhanjiang Branch of SZPRD Deregistration

Net profit: RMB61400

Notes to the principal subsidiaries and joint stock companies:

IX Structured Bodies Controlled by the Company

□Applicable□ Not applicable

X Risks Facing the Company and Countermeasures

1. Market risk

Under the guidance of the policy that "houses are for living in not for speculating on" the demand side of the real estate market

remains in the downward channel. Consequently the development space of the property industry has been constantly compressed

industry profits have fallen sharply and there has been a shift from land dividends to management dividends. In particular it poses

unprecedented challenges to business capabilities such as cost design and engineering. The advancement of urban renewal projects is

25ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023

confronted with complicated conditions and formidable obstacles and the Company's business and development face opportunities

and challenges.Under grim circumstances the Company thoroughly studied the opportunities and challenges brought about by macroeconomic

trends and policy movements actively sought the strategic breakthrough direction and adhered to prudent operation. Additionally it

raised funds from multiple channels focused on enhancing the management level and seized opportunities in the land market. Based

in Shenzhen the Company aims to extend its presence to the Guangdong-Hong Kong-Macao metropolitan area and surrounding

areas and strives to improve its sustainable development capabilities.

2. Land Reserve Risk

As a matter of fact the Company still lacks enough land reserves and development power at later stages. In recent years the supply

of residential land on Shenzhen Market has continuously declined. Various large-scale real estate enterprises have enlarged their

market shares and accelerated their M&A pace. While the real estate industry is centralizing the degree of centralization of the land

reserve scale has also been enhanced. As the external environment and the industry’s trend become much more complicated and

severe the increment market scale will further shrink and the market competition will become increasingly fierce.Facing the challenges the Company will continue to expand through market competition capital operation and urban renewal

increase land reserves and promote the launch of projects. In respect to property type residential projects will focus on Guangdong-

Hong Kong-Macao Greater Bay Area Yangtze River Delta metropolitan area and areas where existing projects locate and gradually

turn to central urban agglomeration surrounding Wuhan key cities in Chengdu- Chongqing in the West and those in Beijing Tianjin

and Hebei. Urban renewal projects will focus on Shenzhen Dongguan and Huizhou and follow-up of urban renewal projects in

Guangzhou. Comprehensive industry and urban projects will focus on Guangdong-Hong Kong-Macao Greater Bay Area Yangtze

River Delta region Wuhan region in the central part and Chengdu-Chongqing area in the West.

3. Financing Risk

In the process of actively increasing land reserves and accelerating the business development in the recent years the Company needs

to invest a large amount of funds for land acquisition and project development. In addition to its own funds the Company’s project

development funds need to be externally financed through bank loans and issuing securities.Currently the Company has steady financial situation and good credit condition and will further strictly control financial risks

actively explore various financing channels so as to raise funds for project development in the future.

26ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023

Part IV Corporate Governance

I Annual and Extraordinary General Meeting Convened during the Reporting Period

1. General Meetings Convened during the Reporting Period

Investor

Meeting Type participati Convened date Disclosure date Resolution of the meeting

on ratio

The Meeting considered and

approved the Report on the Work

of the Board of Directors for

2022 the Report on the Work of

the Supervisory Committee for

2022 the Annual Report 2022

the Report on the Financial

Accounts for 2022 the Report on

the Financial Budget for 2023 the

Proposal on the Distribution of

Profits and Capitalization of

The 2022 Capital Reserve for 2022 the

Annual Annual General

General Meeting 60.01% 19 May 2023 20 May 2023 Proposal on the Comprehensive

Meeting Credit Line and Financing Limit

for 2023 the Proposal to Expect

Continuing Related-party

Transactions for 2023 and the

Proposal to Renew the

Appointment of Accounting Firm

etc. For details please refer to the

Announcement of Resolutions of

the Annual General Meeting of

Shareholders for 2022 with the

number 2023-12 on Cninfo

(www.cninfo.com.cn).

2. Extraordinary General Meetings Convened at the Request of Preference Shareholders with Resumed

Voting Rights

□Applicable□ Not applicable

II Changes in Directors Supervisors and Senior Management

□Applicable□ Not applicable

No such cases in the Reporting Period. See the Annual Report 2022 for details.III Interim Dividend Plan

□Applicable□ Not applicable

The Company has no interim dividend plan either in the form of cash or stock.

27ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023

IV Equity Incentive Plans Employee Stock Ownership Plans or Other Incentive Measures

for Employees

□Applicable□ Not applicable

No such cases in the Reporting Period.

28ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023

Part V Environmental and Social Responsibility

I Major Environmental Issues

Indicate by tick mark whether the Company or any of its subsidiaries is a heavily polluting business identified by the environmental

protection authorities of China.□ Yes□ No

Administrative penalties imposed for environmental issues during the Reporting Period

Name of the Impact on the

company or Remediation

subsidiary Penalty reason Violation situation Penalty result

production and

operation of the measures of the

company listed companies Company

N/A N/A N/A N/A N/A N/A

Other environmental information disclosed with reference to key emission units

The Company attaches great importance to environmental protection and strictly implements relevant laws and regulations. During

the Reporting Period no major environmental violations occurred and no administrative penalties were imposed on environmental

protection.Actions taken to reduce carbon dioxide emissions during the Reporting Period and the impact:

□ Applicable□ Not applicable

Reasons for not disclosing other environmental information

Neither the Company nor any of its subsidiaries is a heavily polluting business identified by the environmental protection

authorities of China.II Social Responsibility

(I) Visit Party members and employees in difficulty.In order to strengthen the people-centred development philosophy and implement the Group's work mechanism of assistance in

depth on the afternoon of 16 January the Party Committee of the Shenzhen Property Group held a symposium to extend regards

to the Party members and employees in difficulty before the Spring Festival. Before the visit the Group conducted overall and

scrupulous investigation identification and category-based registration and record and confirmed 55 persons as the targets in need

of assistance including 12 Party members in difficulty. During the symposium Group leaders communicated earnestly with Party

members and representatives of employees in difficulty and learned about their work and life in detail. Liu Shengxiang Secretary

of the Party Committee of the Group and Chairman of the Group introduced the Group's progress made in the major projects in

2022 and the Group's deployment of key tasks for 2023 while sincerely thanking all the Party members and employees in

difficulty for their performance of duties in spite of numerous difficulties. He encouraged the Party members and employees in

difficulty to stay confident in life and to overcome their difficulties as soon as possible. Besides he said the Party organisations at

all levels of the Group would establish a long-term mechanism to assist the Party members and employees in difficulty.On the occasion of upcoming Spring Festival the Party Committee of the Group combined the publicity of the guiding principles

of the 20th CPC National Congress effectively with the visit thereby enabling the Party members and employees in difficulty to

feel warmth and care from the Party organisations. After the symposium Group leaders delivered supplies and funds to the Party

members and employees in difficulty to help them have a peaceful and comfortable Spring Festival.(II) Carry out blood donation activity.

29ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023

In the first half of 2023 the Party Committee of ITC Property Management organised its affiliated Party organisations and

enterprises under its administration to carry out a month of nationwide blood donation activity themed "red flag red action" for the

year 2023 in order to further the learning and implementation of Xi Jinping Thought on Socialism with Chinese Characteristics for

a New Era and the guiding principles of the 20th CPC National Congress conduct the task "I do practical things for the masses" in

detail and effect continue to advance ITC Property Management's Party building brand development featuring "Perfect ITC"

adhere to the guidance of "Consummate Culture" give full play to the social responsibility of ITC Property Management and

demonstrate the amicability and sympathy of the Company's employees. So far 15 enterprises have carried out the blood donation

activity covering Shandong Chongqing Baoding Hangzhou Manzhouli Hulun Buir Yangzhou and other cities. 617 employees

joined the activity 472 of whom donated 159900 millilitres of blood in total.(III) Carry out beverage delivery activity for workers on constructions sites

On 14 July 2023 to ensure the safe work of front-line workers at high temperature and facilitate the completion of dismantling and

relocation project of Tianjun Industrial Park site on schedule the general Party branch of Wuhe Urban Renewal Company carried

out the activity themed by "deliver beverages to construction sites pool solidarity and strength to facilitate development" and

delivered cool and refreshing tea drink to the front-line workers on sites of the dismantling project enabling the workers to feel

cool and comfortable in the intense heat.III Efforts in Poverty Alleviation and Rural Revitalization

SZPRD and its affiliated business organisations organised and carried out consumption assistance activity and spent RMB980000

in total on the procurement of agricultural products through consumption assistance in the first half of 2023.

30ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023

Part VI Significant Events

I Commitments of the Company’s De Facto Controller Shareholders Related Parties and

Acquirers as well as the Company Itself and Other Entities Fulfilled in the Reporting

Period or Ongoing at the Period-End

□Applicable□ Not applicable

No such cases in the Reporting Period.II Occupation of the Company’s Capital by the Controlling Shareholder or any of Its

Related Parties for Non-Operating Purposes

□Applicable□ Not applicable

No such cases in the Reporting Period.III Irregularities in the Provision of Guarantees

□Applicable□ Not applicable

No such cases in the Reporting Period.IV Engagement and Disengagement of Independent Auditor

Are the interim financial statements audited?

□Yes□ No

This Interim Report is unaudited.V Explanations Given by the Board of Directors and the Supervisory Committee Regarding

the Independent Auditor's “Modified Opinion” on the Financial Statements of the

Reporting Period

□Applicable□ Not applicable

VI Explanations Given by the Board of Directors Regarding the Independent Auditor's

“Modified Opinion” on the Financial Statements of Last Year

□Applicable□ Not applicable

VII Insolvency and Reorganization

□Applicable□ Not applicable

No such cases in the Reporting Period.

31ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023

VIII Legal Matters

Significant lawsuits and arbitrations:

□Applicable □ Not applicable

Involve Index

d Executi Disclo to

General information amount Provision Progress Decisions and effects

on of sure disclo

(RMB’0 decision date sed

000) s information

Arbitration awards on

two cases were given

on 23 and 24 March

2023 successively.

According to the

conclusion of

arbitration awards the

High-tech Zone

Branch should return

approximately

RMB540000 of

Arbitration case of property public revenue to the

contract dispute between the Owners' Committee

Fourth Owners' Committee of of Shenzhen Nanshan

Shenzhen Nanshan District District Software Park

Software Park (Applicant) and (in spite of RMB32

Shenzhen ITC Technology Park The arbitral million requested by

Service Co. Ltd. (Respondent 1) tribunal has the Owners'

73.53 Not executio

the Branch in High-Tech Zone rendered an Committee) and bear

(Respondent 2) for Software Park arbitral award a part of arbitration

Phase I. The Applicant requested fee; in regard to the

an award to the Respondent 1 and arbitration case

2 to return the owners' public between the ITC

revenue and bear the attorney's Technology Park

fees. Company and the

Owners' Committee

of Shenzhen Nanshan

District Software

Park all requests of

the latter have been

rejected by the

arbitration tribunal (in

spite of RMB13

million requested by

the Owners'

Committee).Shenzhen Qitian Sunshine Hotel

Management Co. Ltd. (plaintiff)

sued ShenZhen Properties &

Resources Development (Group) The court has The court has rejected

Ltd. (defendant) for property rendered a the appeal request of In

leasing contract dispute 105.09 Not judgment of Qitian Sunshine Hotel executio

requesting the defendant to pay second and upheld the n

compensation for interior instance original verdict

decoration of the relocated house

and relocation fee of the leased

house and to return the subsidy

32ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023

fee of the leased house etc. The

first instance judgment reads that

the plaintiff Shenzhen Qitian

Sunshine Hotel Management Co.Ltd. shall pay rent of

RMB1050913.6 to the defendant

ShenZhen Properties & Resources

Development (Group) Ltd. within

10 days from the effective date of

this judgment. Shenzhen Qitian

Sunshine Hotel Management Co.Ltd. filed an appeal against the

judgment.The case has

proceeded to

the stage of

appointment

of arbitrators

who will

constitute the

arbitration

tribunal.Recently the

Since the violation of the Equity respondent

Transfer Contract for the Urban has filed an

Renewal Project in Bangling appeal for

Community Guanlan Subdistrict confirmation

Longhua District Shenzhen City of force of the

committed by the Shenzhen arbitration

Xinhai Rongyao Real Estate agreement to

Development Co. Ltd. the Shenzhen

constituted material breach of Intermediate

contract according to provisions 17133.6 People's

Not Not yet Not yet

of the contract the Company is 8 Court

entitled to require Shenzhen resulting in

Xinhai Rongyao Real Estate suspension of

Development Co. Ltd. to pay the arbitration

compensation for its investment court's trial on

loss at an annual interest rate of the case. After

11% of the capital the Company the

invested in the Lanhushidai confirmation

project. Therefore the Company of force of the

filed an arbitration. arbitration

agreement is

concluded by

the court the

arbitration

court will

inform both

parties of

recovery of

the arbitration

proceedings.

33ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023

On 26 February 2019 the

Company signed Repayment

Agreement with Rongyao Real

Estate Shenzhen Xinhai Rongyao

Real Estate Development Co.Ltd. and Shenzhen Xinhai

Holding Co. Ltd. For details see

Announcement on the Signing of

Repayment Agreement

(Announcement No.: 2019-9)

disclosed by the Company on

http://www.cninfo.com.cn.According to provisions of the

Enter the

Repayment Agreement Shenzhen

stage of

Xinhai Rongyao Real Estate No.

72218.2 appointing 9 June

Development Co. Ltd. and Not Not yet Not yet 2023-

2 arbitrator to 2023

Shenzhen Xinhai Holding Co. 13

set up arbitral

Ltd. acknowledge to settle their

tribunal

debts to Rongyao Real Estate.However Shenzhen Xinhai

Investment Development Co.Ltd. Shenzhen Chengjian Real

Estate Management Co. Ltd.Shenzhen Lianghong Industry

Co. Ltd. and Shenzhen Huaye

Tiancheng Investment Co. Ltd.as their guarantors who assume

joint and several liability failed to

settle all debts as required by the

agreement. Therefore Rongyao

Real Estate filed an arbitration.See

See Part

Part X

Financ See Part X

Summary of other contract See Part X Financial Financia

9757.66 ial Financial

disputes Report-XIV-2 l

Report Report-XIV-2

Report-

-XIV-

XIV-2

Other legal matters

□ Applicable□ Not applicable

IX Punishments and Rectifications

□Applicable□ Not applicable

X Credit Quality of the Company as well as its Controlling Shareholder and De Facto

Controller

□Applicable□ Not applicable

34ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023

XI Major Related-Party Transactions

1. Continuing Related-Party Transactions

□Applicable □ Not applicable

As % Obtai

Relati of Approv Over nable

onship Type Specifi Prici Total total ed the Meth marke Index to

Relate with of c ng Trans value transac appr t price Discl disclose

d party the transa transac prin action

value

(RMB’ of all tion oved

od of

settle for osure d

Comp ction tion ciple price 0000) same- line line ment same- date informat

any type (RMB’ or type iontransa 0000) not transa

ctions ctions

Relate

Wholl party

Shenzh y- transa

en Bay owned ctions

Techno subsidi gover

Proper

Mar

ning ty Agreelogy ary of manag ket 3376.7 6904.2 3376.Develo the salesof ement

ment 4.37% No Cash

prin 2 5 72

pment Comp price

Co. any as comm

service ciple

Ltd. the odity

parent andprovid

ing of

labors

Relate Announ

d- cement

Proper

Hebei party on

Sub-

Shenba transa

ty Estimat

subsidi ctions manag

o ed

ary of gover ement Mar

Invest Agree Continu

the ningsales service ket 3012.6 3574.0 3012.ment ment 3.90% No Cash ing

Comp s and prin 8 1 68 25

Develo of price Related-

any as comm engine ciple

Marc

pment party

the odity ering hCo. Transact

parent and service 2023

Ltd. ions inprovid s

ing of 2023

labors (No.:

Relate 2023-

d- 05)

Wholl party disclose

Shenzh y- transa d on

en Bay owned ctions Cninfo

Techno subsidi gover Manag Mar

logy ary of ning ement ket Agreepurch 3767.3Develo the service prin ment 5.93% 8160 No Cash

3767.

737

pment Comp ase ofcomm s ciple

price

Co. any as

Ltd. the odity

parent andprovid

ing of

labors

Shenzh Wholl Truste

en y- e Mar Agree

Shento owned Trusteeship manag

ket ment 3067.8 39.13 6361.6 No Cash 3067.u Real subsidi ement prin price 7 % 1 87

Estate ary of service ciple

35ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023

Develo the s of

pment Comp houses

Co.Lt any as

d. the

parent

13224.24999.

Total -- -- -- -- -- -- -- --

6487

Large-amount sales return in detail N/A

Give the actual situation in the

Reporting Period (if any) where an The total amount of continuing related-party transactions of the Company in 2023 is

estimate had been made for the total

value of continuing related-party expected to be RMB342640300 and actual total amount of continuing related-party

transactions by type to occur in the transactions in H1 2023 is lower than the approved line.Reporting Period

Reason for any significant difference

between the transaction price and the N/A

market reference price (if applicable)

2. Related-Party Transactions Regarding Purchase or Disposal of Assets or Equity Investments

□Applicable□ Not applicable

No such cases in the Reporting Period.

3. Related-Party Transactions Regarding Joint Investments in Third Parties

□Applicable□ Not applicable

No such cases in the Reporting Period.

4. Credits and Liabilities with Related Parties

□Applicable □ Not applicable

Indicate by tick mark whether there were any credits and liabilities with related parties for non-operating purposes.□Yes □ No

Amounts due from related parties:

Capital Amount

Relations occupatio Beginnin newly

Amount

added in received Current EndingRelated hip with Reason n for non- g balance current in current Interest interest balanceparty the operating (RMB’00 period period rate (RMB’00 (RMB’00Company purposes 00) (RMB’00 00) 00)

(yes/no) (RMB’0000) 00)

The

parent

company

of the Business

Shenzhen subsidiary circulatin

Xinhai Rongyao g funds

Holdings Real before No 20150 20150

Co. Ltd. Estate’s acquisitio

minority n

sharehold

er Xinhai

Rongyao

36ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023

Shenzhen

Xinhai Minority Business

Rongyao sharehold

Real er of the

circulatin

Estate subsidiary

g funds

Rongyao before

No 33047.29 33047.29

Develop

ment Co. Real

acquisitio

Ltd. Estate

Influence on the

Company’s operating All were within the risks control of the Company and not influenced the operating results and the

results and financial financial conditions.condition

Amounts due to related parties:

Amount Amount

Relation Beginning

newly returned in Current Ending

Related with the Formation balance

added in

current current Interest rate interest balanceparty Company reason (RMB’000 period period (RMB’000 (RMB’0000) (RMB’000 (RMB’000 0) 0)

0)0)

Shenzhen

Jifa Joint ventur Current

Warehouse e account 4229.67 4229.67

Co. Ltd.Shenzhen

Tian’an

Internation

al Building Joint ventur Current

Property e account

521.43521.43

Manageme

nt Co. Ltd.Influence on the

Company’s operating All were within the risks control of the Company and not influenced the operating results and the

results and financial financial conditions.condition

5. Transactions with Related Finance Companies

□Applicable□ Not applicable

The Company did not make deposits in receive loans or credit from and was not involved in any other finance business with any

related finance company or any other related parties.

6. Transactions with Related Parties by Finance Companies Controlled by the Company

□Applicable□ Not applicable

The finance company controlled by the Company did not make deposits receive loans or credit from and was not involved in any

other finance business with any related parties.

7. Other Major Related-Party Transactions

□Applicable□ Not applicable

No such cases in the Reporting Period.

37ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023

XII Major Contracts and Execution thereof

1. Entrustment Contracting and Leases

(1) Entrustment

□Applicable□ Not applicable

No such cases in the Reporting Period.

(2) Contracting

□Applicable□ Not applicable

No such cases in the Reporting Period.

(3) Leases

□Applicable□ Not applicable

No such cases in the Reporting Period.

2. Major guarantees

□Applicable □ Not applicable

Unit: RMB'0000

Guarantees provided by the Company as the parent and its subsidiaries for external parties (exclusive of those for subsidiaries)

Disclosu

re date Guarante

of the Line of Actual Actual

Obligor guarante guarante occurren guarante

Type of Counter- Term of Having e for a

e guarante

Collatera

l (if any) guarante guarante expired relatede line e ce date amount e e (if any) e or not party orannounc not

ement

Guarantees provided by the Company for its subsidiaries

Disclosu

re date Guarante

of the Line of Actual Actual Type of Counter- Term of Having e for a

Obligor guarante guarante occurren guarantee guarante

Collatera

l (if any) guarante guarante expired relatede line e ce date amount e e (if any) e or not party orannounc not

ement

Shenzhe

n 27

Rongyao Novemb27

Real 18October Joint- er 2019Estate 500000 Novemb 305877 No Yes2019 liability to 20Develop er 2019 Novemb

ment

Co. Ltd. er 2024

Total approved line Total actual amount

for such guarantees of such guarantees in

in the Reporting the Reporting Period 5947

Period (B1) (B2)

Total approved line Total actual balance

for such guarantees 500000 of such guarantees at 305877

at the end of the the end of the

38ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023

Reporting Period Reporting Period

(B3) (B4)

Guarantees provided between subsidiaries

Disclosu

re date Actual Guaranteof the Line of Actual guarante Type of Counter- Term of Having e for aObligor guarante guarante occurren guarante Collaterae l (if any) guarante guarante expired relatede line e ce date amount e e (if any) e or not party orannounc not

ement

Total guarantee amount (total of the three kinds of guarantees above)

Total guarantee line Total actual

approved in the guarantee amount in

Reporting Period the Reporting Period 5947

(A1+B1+C1) (A2+B2+C2)

Total approved Total actual

guarantee line at the guarantee balance at

end of the Reporting 500000 the end of the 305877

Period (A3+B3+C3) Reporting Period(A4+B4+C4)

Total actual guarantee amount (A4+B4+C4)

69.23%

as % of the Company’s net assets

Of which:

Balance of debt guarantees provided directly

or indirectly for obligors with an over 70% 305877

debt/asset ratio (E)

Total of the three amounts above (D+E+F) 305877

Compound guarantees:

3. Cash Entrusted for Wealth Management

□Applicable□ Not applicable

No such cases in the Reporting Period.

4. Other Major Contracts

□Applicable□ Not applicable

No such cases in the Reporting Period.XIII Other Significant Events

□Applicable □ Not applicable

Significant arbitration event of subsidiary: During the Reporting Period Shenzhen International Arbitration Court formally

accepted the case of civil loan dispute between the Company’s subsidiary Shenzhen Rongyao Real Estate Development Co. Ltd.and Shenzhen Xinhai Rongyao Real Estate Development Co. Ltd. etc. which involves a provisional total amount of

RMB722182200. As of the disclosure date of this report the case has not yet come to trial. The influence of this arbitration

matter on the Company’s profit for the current period or profit after the period is still uncertain and the final actual impact shall be

subject to the decision of the Arbitration Court. The Company will carry out the corresponding accounting treatment based on the

process and results of the case and in accordance with the requirements of relevant accounting standard as well as the actual

situation and fulfil its information disclosure obligation in a timely manner. See the Announcement on Significant Arbitration

Event of Subsidiary (Announcement No.: 2023-13) disclosed by the Company on Cninfo dated 9 June 2023 for details.

39ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023

XIV Significant Events of Subsidiaries

□Applicable□ Not applicable

40ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023

Part VII Share Changes and Shareholder Information

I Share Changes

1. Share Changes

Unit: share

Before Increase/decrease in the Reporting Period(+/-) After

Shares as

as divide

divide nd

Percentag New nd conver Oth Subt Percentag

Shares Shares

e (%) issues conver ted er otal e (%)

ted from

from capital

profit reserv

I. Restricted shares 1898306 0.32% 0 0 0 0 0 1898306 0.32%

1. Shares held by State 0 0.00% 0 0 0 0 0 0 0.00%

2. Shares held by state-

owned legal person 3326 0.00% 0 0 0 0 0 3326 0.00%

3. Shares held by other

domestic investors 1894980 0.32% 0 0 0 0 0 1894980 0.32%

Among which: Shares

held by domestic legal 1894980 0.32% 0 0 0 0 0 1894980 0.32%

person

held by domestic natural 0 0.00% 0 0 0 0 0 0 0.00%

person

4. Shares held by foreign

investors 0 0.00% 0 0 0 0 0 0 0.00%

Among which: Shares

held by foreign legal 0 0.00% 0 0 0 0 0 0 0.00%

person

held by foreign natural 0 0.00% 0 0 0 0 0 0 0.00%

person

II. Unrestricted shares 594080786 99.68% 0 0 0 0 0 594080786 99.68%

1. RMB common shares 526475543 88.34% 0 0 0 0 0 526475543 88.34%

2. Domestically listed

foreign shares 67605243 11.34% 0 0 0 0 0 67605243 11.34%

3. Overseas listed foreign

shares 0 0.00% 0 0 0 0 0 0 0.00%

4. Others 0 0.00% 0 0 0 0 0 0 0.00%

III. Total shares 595979092 100.00% 0 0 0 0 0 595979092 100.00%

Reasons for share changes:

□ Applicable□ Not applicable

Approval of share changes:

41ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023

□ Applicable□ Not applicable

Transfer of share ownership:

□ Applicable□ Not applicable

Progress on any share repurchases:

□ Applicable□ Not applicable

Progress on reducing the repurchased shares by means of centralized bidding:

□ Applicable□ Not applicable

Effects of share changes on the basic and diluted earnings per share equity per share attributable to the Company’s ordinary

shareholders and other financial indicators of the prior year and the prior accounting period respectively:

□ Applicable□ Not applicable

Other information that the Company considers necessary or is required by the securities regulator to be disclosed:

□ Applicable□ Not applicable

2. Changes in Restricted Shares

□Applicable□ Not applicable

II Issuance and Listing of Securities

□Applicable□ Not applicable

III Shareholders and Their Holdings as at the Period-End

Unit: share

Total number of preference

Total number of ordinary shareholders

43195 shareholders with resumed voting rights 0

at the period-end

at the period-end (if any)

5% or greater ordinary shareholders or the top 10 ordinary shareholders

Shareho Increase/d Number Number of Pledged

Name of Nature of lding Total shares ecrease of non- marked or

shareholder shareholder percenta held at the during the restrictedperiod-end Reporting shares restricted

frozen shares

ge (%) Period held shares held Status

Numb

Shenzhen

Investment State-ownedlegal person 50.57% 301414637 0 3326 301411311Holdings Co. Ltd.Shenzhen State-

owned Equity Domestic non-

Management Co. state-owned 6.38% 38037890 0 0 38037890

Ltd. legal person

China Orient Asset

Management Co. State-ownedlegal person 2.77% 16491402 0 0 16491402Ltd.Domestic

Wang Zhong 0.32% 1878100 1878100 0 1878100

natural person

Duan Shaoteng Domesticnatural person 0.29% 1755565 0 0 1755565

Shenzhen Duty-Free

Commodity Domestic non-

Enterprises Co. state-owned 0.29% 1730300 0 1730300 0

Ltd. legal person

42ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023

Industrial and

Commercial Bank

of China Limited－

Southern China

Securities Full

Index Real Estate Other 0.29% 1728434 616900 0 1728434

Trading Open-

ended Index

Securities

Investment Fund

Yang Yaochu Domesticnatural person 0.28% 1640984 0 0 1640984

Li Xinyi Domesticnatural person 0.25% 1500000 0 0 1500000

Hong Kong

Securities Clearing Foreign legalperson 0.23% 1369074 396561 0 1369074Company Ltd.Strategic investor or general legal

person becoming a top-10 ordinary N/A

shareholder due to rights issue (if any)

The largest shareholder Shenzhen Investment Holdings Co. Ltd. is the controlling

Related or acting-in-concert parties shareholder of the Company and Shenzhen State-owned Equity Management Co. Ltd.among the shareholders above And the Company does not know whether there are related parties or acting-in-concert

parties among the other shareholders.Explain if any of the shareholders

above was involved in entrusting/being

entrusted with voting rights or waiving N/A

voting rights

Special account for share repurchases

(if any) among the top 10 shareholders N/A

Top 10 unrestricted shareholders

Shares by type

Name of shareholder Unrestricted shares held at the period-end

Type Shares

Shenzhen Investment Holdings Co.Ltd. 301411311 RMB ordinary share

3014113

Shenzhen State-owned Equity RMB ordinary share 3803789Management Co. Ltd. 38037890 0

China Orient Asset Management Co.Ltd. 16491402 RMB ordinary share

1649140

Wang Zhong 1878100 RMB ordinary share 1878100

Duan Shaoteng 1755565 RMB ordinary share 1755565

Industrial and Commercial Bank of

China Limited－Southern China

Securities Full Index Real Estate 1728434 RMB ordinary share 1728434

Trading Open-ended Index Securities

Investment Fund

Yang Yaochu 1640984 Domestically listedforeign share 1640984

Li Xinyi 1500000 RMB ordinary share 1500000

Hong Kong Securities Clearing

Company Ltd. 1369074 RMB ordinary share 1369074

Mai Furong 1244596 Domestically listedforeign share 1244596

Related or acting-in-concert parties The largest shareholder Shenzhen Investment Holdings Co. Ltd. is the controlling

43ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023

among top 10 unrestricted public shareholder of the Company and Shenzhen State-owned Equity Management Co. Ltd.shareholders as well as between top 10 And the Company does not know whether there are related parties or acting-in-concert

unrestricted public shareholders and top parties among the other shareholders.

10 shareholders

Top 10 ordinary shareholders involved

in securities margin trading (if any) N/A

Indicate by tick mark whether any of the top 10 ordinary shareholders or the top 10 unrestricted ordinary shareholders of the

Company conducted any promissory repo during the Reporting Period.□ Yes□ No

No such cases in the Reporting Period.IV Change in Shareholdings of Directors Supervisors and Senior Management

□Applicable□ Not applicable

There were no changes in shareholdings of directors supervisors and senior management in the Reporting Period. For details see

the 2022 Annual Report.V Change of the Controlling Shareholder or the Actual Controller

Change of the controlling shareholder in the Reporting Period

□ Applicable□ Not applicable

The controlling shareholder remained the same in the Reporting Period.Change of the actual controller in the Reporting Period

□ Applicable□ Not applicable

The actual controller remained the same in the Reporting Period.

44ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023

Part VIII Preference Shares

□Applicable□ Not applicable

No preference shares in the Reporting Period.

45ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023

Part IX Bonds

□Applicable□ Not applicable

46ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023

Part X Financial Statements

I. Auditor’s Report

Are these interim financial statements audited by an independent auditor?

□ Yes□ No

These interim financial statements have not been audited by an independent auditor.II Financial Statements

Currency unit for the financial statements and the notes thereto: RMB

1. Consolidated Balance Sheet

Prepared by Shenzhen Properties & Resources Development (Group) Ltd.

30 June 2023

Unit: RMB

Item 30 June 2023 1 January 2023

Current assets:

Monetary assets 1392204627.76 1517528893.83

Settlement reserve

Interbank loans granted

Held-for-trading financial assets

Derivative financial assets

Notes receivable 0.00 0.00

Accounts receivable 416925839.15 419933915.30

Accounts receivable financing

Prepayments 10207824.31 100341806.56

Premiums receivable

Reinsurance receivables

Receivable reinsurance contract reserve

Other receivables 624876343.49 639903523.33

Including: Interest receivable 0.00 0.00

Dividends receivable 0.00 0.00

Financial assets purchased under resale

agreements

Inventories 10848296900.64 10975334223.37

Contract assets 110384064.37 1094632.90

Assets held for sale

Current portion of non-current assets

Other current assets 70987410.26 65655266.27

Total current assets 13473883009.98 13719792261.56

Non-current assets:

Loans and advances to customers

Investments in debt obligations

Investments in other debt obligations

Long-term receivables 21920095.92 22651454.07

Long-term equity investments 81575705.63 79781437.31

Investments in other equity

instruments 635355.65 887838.64

Other non-current financial assets

47ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023

Investment property 405664937.06 405762739.18

Fixed assets 72977952.16 82745172.12

Construction in progress

Productive living assets

Oil and gas assets

Right-of-use assets 55776458.18 70168415.65

Intangible assets 946082.32 1269382.91

Development costs

Goodwill 9446847.38 9446847.38

Long-term prepaid expense 19591506.08 21980602.46

Deferred income tax assets 1353192386.31 1383050586.04

Other non-current assets 3926873.08 2750873.08

Total non-current assets 2025654199.77 2080495348.84

Total assets 15499537209.75 15800287610.40

Current liabilities:

Short-term borrowings

Borrowings from the central bank

Interbank loans obtained

Held-for-trading financial liabilities

Derivative financial liabilities

Notes payable

Accounts payable 497515760.20 608283388.52

Advances from customers 1209185.48 2260847.31

Contract liabilities 119759723.57 920828040.81

Financial assets sold under repurchase

agreements

Customer deposits and interbank

deposits

Payables for acting trading of securities

Payables for underwriting of securities

Employee benefits payable 193072434.89 239126392.02

Taxes payable 3925399672.99 3917278346.81

Other payables 1704126936.52 1515085832.45

Including: Interest payable 0.00 0.00

Dividends payable 227351128.25 12202676.04

Handling charges and commissions

payable

Reinsurance payables

Liabilities directly associated with

assets held for sale

Current portion of non-current liabilities 222669043.37 218858766.82

Other current liabilities 3392989.52 83991786.83

Total current liabilities 6667145746.54 7505713401.57

Non-current liabilities:

Insurance contract reserve

Long-term borrowings 4172450268.17 3618782344.00

Bonds payable

Including: Preferred shares

Perpetual bonds

Lease liabilities 62925499.87 77963283.55

Long-term payables 0.00 0.00

Long-term employee benefits payable 0.00 0.00

Provisions 766612.52 766612.52

Deferred income 0.00 0.00

Deferred income tax liabilities 174168.87 241978.54

Other non-current liabilities 128251841.93 128008919.79

Total non-current liabilities 4364568391.36 3825763138.40

Total liabilities 11031714137.90 11331476539.97

48ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023

Owners’ equity:

Share capital 595979092.00 595979092.00

Other equity instruments

Including: Preferred shares

Perpetual bonds

Capital reserves 80488045.38 80488045.38

Less: Treasury stock 0.00 0.00

Other comprehensive income -2450357.68 -3854377.95

Specific reserve

Surplus reserves 48886605.81 48886605.81

General reserve

Retained earnings 3695166352.46 3691056182.73

Total equity attributable to owners of the

Company as the parent 4418069737.97 4412555547.97

Non-controlling interests 49753333.88 56255522.46

Total owners’ equity 4467823071.85 4468811070.43

Total liabilities and owners’ equity 15499537209.75 15800287610.40

Legal representative: Liu Shengxiang Head of financial affairs: Cai Lili

Head of the financial department: Liu Qiang

2. Balance Sheet of the Company as the Parent

Unit: RMB

Item 30 June 2023 1 January 2023

Current assets:

Monetary assets 732674528.27 532263736.63

Held-for-trading financial assets

Derivative financial assets

Notes receivable

Accounts receivable 2719055.69 5137042.71

Accounts receivable financing

Prepayments

Other receivables 4596372355.43 5162396869.45

Including: Interest receivable

Dividends receivable 151433108.41 151433108.41

Inventories 93126982.22 793075051.53

Contract assets 109392112.37

Assets held for sale

Current portion of non-current assets

Other current assets 1025446.90 18130015.97

Total current assets 5535310480.88 6511002716.29

Non-current assets:

Investments in debt obligations

Investments in other debt obligations

Long-term receivables

Long-term equity investments 1449541586.02 1447747317.70

Investments in other equity

instruments 865855.65 1118338.64

Other non-current financial assets

Investment property 264768426.75 260599477.89

Fixed assets 26787980.94 31577309.67

Construction in progress

49ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023

Productive living assets

Oil and gas assets

Right-of-use assets 3413718.30 3238351.85

Intangible assets

Development costs

Goodwill

Long-term prepaid expense 580220.67 860115.06

Deferred income tax assets 90295008.03 152942094.59

Other non-current assets 2511552650.86 2362376650.86

Total non-current assets 4347805447.22 4260459656.26

Total assets 9883115928.10 10771462372.55

Current liabilities:

Short-term borrowings

Held-for-trading financial liabilities

Derivative financial liabilities

Notes payable

Accounts payable 54032590.97 41228778.20

Advances from customers 0.00 952186.65

Contract liabilities 0.00 840878470.63

Employee benefits payable 50427323.40 56425731.67

Taxes payable 4149081.01 1783757.84

Other payables 7341237233.98 7258663180.38

Including: Interest payable

Dividends payable 215178094.61 29642.40

Liabilities directly associated with

assets held for sale

Current portion of non-current

liabilities 190309485.27 190431469.82

Other current liabilities 0.00 75679062.35

Total current liabilities 7640155714.63 8466042637.54

Non-current liabilities:

Long-term borrowings 431200000.00 462000000.00

Bonds payable

Including: Preferred shares

Perpetual bonds

Lease liabilities 2481170.16 1947178.87

Long-term payables

Long-term employee benefits payable

Provisions

Deferred income

Deferred income tax liabilities

Other non-current liabilities 40000000.00 40000000.00

Total non-current liabilities 473681170.16 503947178.87

Total liabilities 8113836884.79 8969989816.41

Owners’ equity:

Share capital 595979092.00 595979092.00

Other equity instruments

Including: Preferred shares

Perpetual bonds

Capital reserves 53876380.11 53876380.11

Less: Treasury stock

Other comprehensive income -3018820.21 -2742841.65

50ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023

Specific reserve

Surplus reserves 48886605.81 48886605.81

Retained earnings 1073555785.60 1105473319.87

Total owners’ equity 1769279043.31 1801472556.14

Total liabilities and owners’ equity 9883115928.10 10771462372.55

3. Consolidated Income Statement

Unit: RMB

Item H1 2023 H1 2022

1. Revenue 1905464632.85 1988299840.24

Including: Operating revenue 1905464632.85 1988299840.24

Interest income

Insurance premium income

Handling charge and

commission income

2. Costs and expenses 1605529607.89 1648725222.85

Including: Cost of sales 1372159884.25 1068652583.32

Interest expense

Handling charge and

commission expense

Surrenders

Net insurance claims paid

Net amount provided as

insurance contract reserve

Expenditure on policy

dividends

Reinsurance premium

expense

Taxes and surcharges 45190786.03 394230719.81

Selling expense 13087297.05 11358858.51

Administrative expense 149188184.18 143701058.05

R&D expense 1711051.44 2689725.40

Finance costs 24192404.94 28092277.76

Including: Interest

expense 31827441.32 36281087.17

Interest income 7930755.87 9179453.97

Add: Other income 5670088.91 6806445.99

Return on investment (“-” for loss) 1857388.32 946914.05

Including: Share of profit or loss

of joint ventures and associates 1857388.32 859534.38

Income from the derecognition

of financial assets at amortized cost (“-”

for loss)

Exchange gain (“-” for loss)

Net gain on exposure hedges (“-”

for loss)

Gain on changes in fair value (“-”

for loss)

Credit impairment loss (“-” for

loss) -13610779.58 -14462076.54

51ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023

Asset impairment loss (“-” for

loss) 2045.93 3302.47

Asset disposal income (“-” for

loss) 174379.69 -41452.49

3. Operating profit (“-” for loss) 294028148.23 332827750.87

Add: Non-operating income -204898.03 2546068.46

Less: Non-operating expense 357718.39 1417586.84

4. Profit before tax (“-” for loss) 293465531.81 333956232.49

Less: Income tax expense 78819275.76 92655204.26

5. Net profit (“-” for net loss) 214646256.05 241301028.23

5.1 By operating continuity

5.1.1 Net profit from continuing

operations (“-” for net loss) 214584900.22 241301028.23

5.1.2 Net profit from discontinued

operations (“-” for net loss) 61355.83 0.00

5.2 By ownership

5.2.1 Net profit attributable to

shareholders of the Company as the 220903444.63 250802157.71

parent (“-” for net loss)

5.2.2 Net profit attributable to non-

controlling interests (“-” for net loss) -6257188.58 -9501129.48

6. Other comprehensive income net of

tax 1404020.27 2063279.42

Attributable to owners of the

Company as the parent 1404020.27 2063279.42

6.1 Items that will not be

reclassified to profit or loss -275978.56 -118365.58

6.1.1 Changes caused by

remeasurements on defined benefit 0.00 0.00

schemes

6.1.2 Other comprehensive

income that will not be reclassified to 0.00 0.00

profit or loss under the equity method

6.1.3 Changes in the fair value of

investments in other equity instruments -275978.56 -118365.58

6.1.4 Changes in the fair value

arising from changes in own credit risk 0.00 0.00

6.1.5 Other 0.00 0.00

6.2 Items that will be reclassified to

profit or loss 1679998.83 2181645.00

6.2.1 Other comprehensive

income that will be reclassified to profit

or loss under the equity method

6.2.2 Changes in the fair value of

investments in other debt obligations

6.2.3 Other comprehensive

income arising from the reclassification

of financial assets

6.2.4 Credit impairment

allowance for investments in other debt

obligations

6.2.5 Reserve for cash flow

hedges

6.2.6 Differences arising from the

translation of foreign currency- 1679998.83 2181645.00

denominated financial statements

6.2.7 Other

Attributable to non-controlling

interests 0.00 0.00

7. Total comprehensive income 216050276.32 243364307.65

52ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023

Attributable to owners of the

Company as the parent 222307464.90 252865437.13

Attributable to non-controlling

interests -6257188.58 -9501129.48

8. Earnings per share

8.1 Basic earnings per share 0.3707 0.4208

8.2 Diluted earnings per share 0.3707 0.4208

Where business combinations under common control occurred in the Current Period the net profit achieved by the acquirees

before the combinations was RMB0 with the amount for the same period of last year being RMB0.Legal representative: Liu Shengxiang Head of financial affairs: Cai Lili

Head of the financial department: Liu Qiang.

4. Income Statement of the Company as the Parent

Unit: RMB

Item H1 2023 H1 2022

1. Operating revenue 1003621923.84 31589670.59

Less: Cost of sales 698031149.77 17210314.74

Taxes and surcharges 8373564.71 3188103.66

Selling expense 406096.84 189424.71

Administrative expense 47358840.75 45512068.89

R&D expense 0.00 0.00

Finance costs 6675706.20 4842416.19

Including: Interest expense 13125188.51 13164271.45

Interest income 3531500.73 5221428.26

Add: Other income 252975.99 182349.33

Return on investment (“-” for loss) 1857388.32 77583669.56

Including: Share of profit or loss

of joint ventures and associates 1857388.32 859534.38

Income from the derecognition

of financial assets at amortized cost (“-”

for loss)

Net gain on exposure hedges (“-”

for loss)

Gain on changes in fair value (“-”

for loss)

Credit impairment loss (“-” for

loss) 482276.30 47995.81

Asset impairment loss (“-” for

loss)

Asset disposal income (“-” for

loss) 111000.73 0.00

2. Operating profit (“-” for loss) 245480206.91 38461357.10

Add: Non-operating income 413371.19 0.00

Less: Non-operating expense 15573.60 23576.47

3. Profit before tax (“-” for loss) 245878004.50 38437780.63

Less: Income tax expense 62647086.56 8672460.66

53ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023

4. Net profit (“-” for net loss) 183230917.94 29765319.97

4.1 Net profit from continuing

operations (“-” for net loss) 183230917.94 29765319.97

4.2 Net profit from discontinued

operations (“-” for net loss)

5. Other comprehensive income net of

tax -275978.56 -118365.58

5.1 Items that will not be reclassified

to profit or loss -275978.56 -118365.58

5.1.1 Changes caused by

remeasurements on defined benefit

schemes

5.1.2 Other comprehensive income

that will not be reclassified to profit or

loss under the equity method

5.1.3 Changes in the fair value of

investments in other equity instruments -275978.56 -118365.58

5.1.4 Changes in the fair value

arising from changes in own credit risk

5.1.5 Other

5.2 Items that will be reclassified to

profit or loss

5.2.1 Other comprehensive income

that will be reclassified to profit or loss

under the equity method

5.2.2 Changes in the fair value of

investments in other debt obligations

5.2.3 Other comprehensive income

arising from the reclassification of

financial assets

5.2.4 Credit impairment allowance

for investments in other debt obligations

5.2.5 Reserve for cash flow hedges

5.2.6 Differences arising from the

translation of foreign currency-

denominated financial statements

5.2.7 Other

6. Total comprehensive income 182954939.38 29646954.39

7. Earnings per share

7.1 Basic earnings per share 0.3074 0.0499

7.2 Diluted earnings per share 0.3074 0.0499

5. Consolidated Cash Flow Statement

Unit: RMB

Item H1 2023 H1 2022

1. Cash flows from operating activities:

Proceeds from sale of commodities

and rendering of services 1134538536.26 1508257820.26

Net increase in customer deposits and

interbank deposits

Net increase in borrowings from the

central bank

Net increase in loans from other

financial institutions

Premiums received on original

insurance contracts

54ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023

Net proceeds from reinsurance

Net increase in deposits and

investments of policy holders

Interest handling charges and

commissions received

Net increase in interbank loans obtained

Net increase in proceeds from

repurchase transactions

Net proceeds from acting trading of

securities

Tax rebates 15030885.06 9187939.90

Cash generated from other operating

activities 126769873.68 461787150.96

Subtotal of cash generated from

operating activities 1276339295.00 1979232911.12

Payments for commodities and services 1075770309.73 1486656535.01

Net increase in loans and advances to

customers

Net increase in deposits in the central

bank and in interbank loans granted

Payments for claims on original

insurance contracts

Net increase in interbank loans granted

Interest handling charges and

commissions paid

Policy dividends paid

Cash paid to and for employees 495986685.15 503751276.86

Taxes paid 157276244.25 278354981.59

Cash used in other operating activities 127327714.02 106464348.75

Subtotal of cash used in operating

activities 1856360953.15 2375227142.21

Net cash generated from/used in

operating activities -580021658.15 -395994231.09

2. Cash flows from investing activities:

Proceeds from disinvestment

Return on investment 63120.00 0.00

Net proceeds from the disposal of fixed

assets intangible assets and other long- 73664.52 33054.00

lived assets

Net proceeds from the disposal of

subsidiaries and other business units

Cash generated from other investing

activities

Subtotal of cash generated from

investing activities 136784.52 33054.00

Payments for the acquisition of fixed

assets intangible assets and other long- 2589103.59 8208285.38

lived assets

Payments for investments 1644822.69 240634030.00

Net increase in pledged loans granted

Net payments for the acquisition of

subsidiaries and other business units

Cash used in other investing activities

Subtotal of cash used in investing 4233926.28 248842315.38

55ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023

activities

Net cash generated from/used in

investing activities -4097141.76 -248809261.38

3. Cash flows from financing activities:

Capital contributions received 0.00 1260000.00

Including: Capital contributions by

non-controlling interests to subsidiaries 0.00 1260000.00

Borrowings raised 590984586.17 286832330.00

Cash generated from other financing

activities

Subtotal of cash generated from

financing activities 590984586.17 288092330.00

Repayment of borrowings 32316662.00 30900000.00

Interest and dividends paid 94407905.77 93476441.56

Including: Dividends paid by

subsidiaries to non-controlling interests 245000.00

Cash used in other financing activities 15224062.82 12142998.09

Subtotal of cash used in financing

activities 141948630.59 136519439.65

Net cash generated from/used in

financing activities 449035955.58 151572890.35

4. Effect of foreign exchange rates

changes on cash and cash equivalents 2054469.55 2438091.50

5. Net increase in cash and cash

equivalents -133028374.78 -490792510.62

Add: Cash and cash equivalents

beginning of the period 1509693857.48 1963988756.69

6. Cash and cash equivalents end of the

period 1376665482.70 1473196246.07

6. Cash Flow Statement of the Company as the Parent

Unit: RMB

Item H1 2023 H1 2022

1. Cash flows from operating activities:

Proceeds from sale of commodities

and rendering of services 65620304.10 25384592.62

Tax rebates 0.00 0.00

Cash generated from other operating

activities 720171786.00 1332729141.98

Subtotal of cash generated from

operating activities 785792090.10 1358113734.60

Payments for commodities and services 30896291.92 31342993.24

Cash paid to and for employees 31086528.03 35011651.40

Taxes paid 39797238.94 25455041.33

Cash used in other operating activities 294025250.18 1183602910.44

Subtotal of cash used in operating

activities 395805309.07 1275412596.41

Net cash generated from/used in

operating activities 389986781.03 82701138.19

2. Cash flows from investing activities:

56ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023

Proceeds from disinvestment 0.00 0.00

Return on investment 63120.00 0.00

Net proceeds from the disposal of fixed

assets intangible assets and other long- 0.00 209.00

lived assets

Net proceeds from the disposal of

subsidiaries and other business units 0.00 0.00

Cash generated from other investing

activities 0.00 0.00

Subtotal of cash generated from

investing activities 63120.00 209.00

Payments for the acquisition of fixed

assets intangible assets and other long- 152169.34 390961.75

lived assets

Payments for investments 148000000.00 389000000.00

Net payments for the acquisition of

subsidiaries and other business units 0.00 0.00

Cash used in other investing activities 0.00 0.00

Subtotal of cash used in investing

activities 148152169.34 389390961.75

Net cash generated from/used in

investing activities -148089049.34 -389390752.75

3. Cash flows from financing activities:

Capital contributions received

Borrowings raised 0.00 125000000.00

Cash generated from other financing

activities

Subtotal of cash generated from

financing activities 0.00 125000000.00

Repayment of borrowings 30800000.00 30800000.00

Interest and dividends paid 13132759.86 13015483.64

Cash used in other financing activities 0.00 1227250.00

Subtotal of cash used in financing

activities 43932759.86 45042733.64

Net cash generated from/used in

financing activities -43932759.86 79957266.36

4. Effect of foreign exchange rates

changes on cash and cash equivalents 38215.73 20809.20

5. Net increase in cash and cash

equivalents 198003187.56 -226711539.00

Add: Cash and cash equivalents

beginning of the period 528268054.39 808411401.68

6. Cash and cash equivalents end of the

period 726271241.95 581699862.68

7. Consolidated Statements of Changes in Owners’ Equity

H1 2023

Unit: RMB

H1 2023

Equity attributable to owners of the Company as the parent Non Tota

Item Shar Other equity Capi Less Oth Spe Surp Gen Reta - l

e instruments tal : er cific lus eral ined Oth Subt cont own

capi Pref Perp Oth rese Trea com rese rese rese earn er otal rolli ers’

57ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023

tal erre etua er rves sury preh rve rves rve ings ng equi

d l stoc ensi inter ty

shar bon k ve ests

es ds inco

1. Balance as

at the end of 595 804 - 488 369 441 562 446

the 979 880 385 866 105 255 555 881

Reporting 092. 45.3 437 05.8 618 554 22.4 107

Period of the 00 8 7.95 1 2.73 7.97 6 0.43

prior year

Add:

Adjustment

for change in

accounting

policy

Adjustment

for

correction of

error

Adjustment

for business

combination

under

common

control

Other

adjustments

2. Balance as

at the 595 804 - 488 369 441 562 446

beginning of

the 979 880 385 866 105 255 555 881

Reporting 092. 45.3 437 05.8 618 554 22.4 107

Period of the 00 8 7.95 1 2.73 7.97 6 0.43

year

3. Increase/ - -

decrease in 140 411 551the period (“- 650 9870.00 0.00 402 0.00 0.00 0.00 016 419” for 218 998.0.27 9.73 0.00

decrease) 8.58 58

3.1 Total 140

comprehensi 903 307 625 050402

ve income 444. 464. 718 276.0.27

63908.5832

3.2 Capital - - -

increased 164 164 164

and reduced 0.00 0.00 0.00 0.00 0.00 0.00 482 482 482

by owners 2.69 2.69 2.69

3.2.1

Ordinary

shares 0.00 0.00

increased by

owners

3.2.2

Capital

increased by

holders of 0.00 0.00

other equity

instruments

3.2.3

Share-based

payments 0.00 0.00

included in

owners’

58ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023

equity

---

3.2.4164164164

Other 482 482 482

2.692.692.69

---

215215215

3.3 Profit 245

distribution 148 148 393000.

452.452.452.

212121

3.3.1

Appropriatio

n to surplus 0.00 0.00

reserves

3.3.2

Appropriatio

n to general 0.00 0.00

reserve

3.3.3----

Appropriatio 215 215 215

n to owners 245148 148 393

(or 000.452. 452. 452.shareholders) 0021 21 21

3.3.4

Other 0.00 0.00

3.4

Transfers

within 0.00 0.00

owners’

equity

3.4.1

Increase in

capital (or

share capital) 0.00 0.00

from capital

reserves

3.4.2

Increase in

capital (or

share capital) 0.00 0.00

from surplus

reserves

3.4.3 Loss

offset by

surplus 0.00 0.00

reserves

3.4.4

Changes in

defined

benefit

schemes 0.00 0.00

transferred to

retained

earnings

3.4.5

Other

comprehensi

ve income 0.00 0.00

transferred to

retained

earnings

3.4.6

Other 0.00 0.00

3.50.000.00

59ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023

Specific

reserve

3.5.1

Increase in 0.00 0.00

the period

3.5.2 Used

in the period 0.00 0.00

3.6 Other 0.00 0.00

595804-488369441497446

4. Balance as

at the end of 979 880 245 866 516 806 533 7820.00 0.00 0.00 0.00 0.00 0.00

the period 092. 45.3 035 05.8 635 973 33.8 307

0087.6812.467.9781.85

H1 2022

Unit: RMB

H1 2022

Equity attributable to owners of the Company as the parent

Other equity Oth Non Tota

instruments Less er - l

Item Shar Pref Perp Capi : com Spe Surp Gen Reta

cont own

e erre etua tal Trea preh cific lus eral ined Oth Subt

rolli ers’

capi d l Oth rese sury ensi rese rese rese earn er otal

ng equi

tal shar bon er rves stoc ve rve rves rve ings

inter ty

es ds k inco

ests

1. Balance as

at the end of 595 146 - 475 380 458 468 463

the 979 986 817 749 090 326 196 008

Reporting 0.00 0.00 0.00 0.00 0.00 0.00092. 167. 465 40.1 141 695 13.1 657

Period of the 00 70 3.66 8 3.35 9.57 9 2.76

prior year

Add:

Adjustment

for change in

accounting

policy

Adjustment

for

correction of

error

Adjustment

for business

combination

under

common

control

Other

adjustments

2. Balance as

at the 595 146 - 475 380 458 468 463

beginning of

the 979 986 817 749 090 326 196 0080.00 0.00 0.00 0.00 0.00 0.00

Reporting 092. 167. 465 40.1 141 695 13.1 657

Period of the 00 70 3.66 8 3.35 9.57 9 2.76

year

3. Increase/ - - - - --

decrease in 664 206 179 362 445 453the period (“- 824981 0.00 327 0.00 373 0.00 926 298 540” for 11222.3 9.42 91.7 701. 936. 065.decrease) 9.482 1 89 50 98

3.1 Total

comprehensi 206 250 252 - 243

ve income 327 802 865 950 364

60ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023

9.42157.437.112307.

71139.4865

-----

3.2 Capital 664 179 208 292 126 291

increased

and reduced 981 0.00 0.00 0.00 373 0.00 463 898 000 638

by owners 22.3 91.7 077. 591. 0.00 591.

21040707

3.2.1

Ordinary 126 126

shares 0.00 000 000

increased by 0.00 0.00

owners

3.2.2

Capital

increased by

holders of 0.00 0.00

other equity

instruments

3.2.3

Share-based

payments

included in 0.00 0.00

owners’

equity

-----

664179208292292

3.2.4

Other 981 373 463 898 898

22.391.7077.591.591.

21040707

---

405405405

3.3 Profit

distribution 265 265 265

782.782.782.

565656

3.3.1

Appropriatio

n to surplus 0.00 0.00

reserves

3.3.2

Appropriatio

n to general 0.00 0.00

reserve

3.3.3---

Appropriatio 405 405 405

n to owners 265 265 265

(or 782. 782. 782.shareholders) 56 56 56

3.3.4

Other 0.00 0.00

3.4

Transfers

within 0.00 0.00

owners’

equity

3.4.1

Increase in

capital (or

share capital) 0.00 0.00

from capital

reserves

3.4.2

Increase in 0.00 0.00

capital (or

61ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023

share capital)

from surplus

reserves

3.4.3 Loss

offset by

surplus 0.00 0.00

reserves

3.4.4

Changes in

defined

benefit

schemes 0.00 0.00

transferred to

retained

earnings

3.4.5

Other

comprehensi

ve income 0.00 0.00

transferred to

retained

earnings

3.4.6

Other 0.00 0.00

3.5

Specific 0.00 0.00

reserve

3.5.1

Increase in 0.00 0.00

the period

3.5.2 Used

in the period 0.00 0.00

3.6 Other 0.00 0.00

595804-296343413385417

4. Balance as

at the end of 979 880 611 375 797 796 784 6540.00 0.00 0.00 0.00 0.00 0.00

the period 092. 45.3 137 48.4 471 802 83.7 650

0084.2471.463.0716.78

8. Statements of Changes in Owners’ Equity of the Company as the Parent

H1 2023

Unit: RMB

H1 2023

Other equity instruments Other

Capita Less: compr Specif Surplu Retain Total

Item Share Prefer Perpet l Treasu ehensi ic s ed Other ownercapital red ual Other reserv ry ve reserv reserv earnin s’

shares bonds es stock incom e es gs equity

1. Balance as

at the end of -5959 5387 4888 1105 1801

the 2742

Reporting 7909 6380. 6605. 4733 4725841.6

Period of the 2.00 11 81 19.87 56.145

prior year

Add:

Adjustment

for change in

accounting

policy

Adjustment

for

correction of

62ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023

error

Other

adjustments

2. Balance as

at the -

beginning of 5959 5387 4888 1105 1801

the 27427909 6380. 6605. 4733 4725

Reporting 841.62.00 11 81 19.87 56.14

Period of the 5

year

3. Increase/ - -

decrease in -the period (“- 3191 32192759” for 7534. 3512.78.56

decrease) 27 83

3.1 Total - 1832 1829

comprehensi 2759 3091 5493

ve income 78.56 7.94 9.38

3.2 Capital

increased

and reduced

by owners

3.2.1

Ordinary

increased by

owners

3.2.2

Capital

increased by

holders of

other equity

instruments

3.2.3

Share-based

payments

included in

owners’

equity

3.2.4

Other

3.3 Profit 2151 2151

distribution 4845 4845

2.212.21

3.3.1

Appropriatio

n to surplus

reserves

3.3.2--

Appropriatio

n to owners 2151 2151

(or 4845 4845

shareholders) 2.21 2.21

3.3.3

Other

3.4

Transfers

within

owners’

equity

3.4.1

Increase in

capital (or

63ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023

share capital)

from capital

reserves

3.4.2

Increase in

capital (or

share capital)

from surplus

reserves

3.4.3 Loss

offset by

surplus

reserves

3.4.4

Changes in

defined

benefit

schemes

transferred to

retained

earnings

3.4.5

Other

comprehensi

ve income

transferred to

retained

earnings

3.4.6

Other

3.5

Specific

reserve

3.5.1

Increase in

the period

3.5.2 Used

in the period

3.6 Other

4. Balance as 5959 5387 4888 1073 1769

at the end of 30187909 6380. 6605. 5557 2790

the period 820.22.00 11 81 85.60 43.31

H1 2022

Unit: RMB

H1 2022

Other equity instruments Other

Capita Less: compr Specif Surplu Retain Total

Item Share Prefer Perpet l Treasu ehensi ic s ed owner

capital red ual Other reserv ry ve reserv reserv earnin

Other s’

shares bonds es stock incom e es gs equity

1. Balance as

at the end of -5959 5387 2963 1337 2014

the 2574

Reporting 7909 6380. 7548. 4975 4164121.5

Period of the 2.00 11 47 86.41 85.454

prior year

Add:

Adjustment

for change in

accounting

policy

64ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023

Adjustment

for

correction of

error

Other

adjustments

2. Balance as

at the -

beginning of 5959 5387 2963 1337 2014

the 25747909 6380. 7548. 4975 4164

Reporting 121.52.00 11 47 86.41 85.45

Period of the 4

year

3. Increase/ - -

decrease in -the period (“- 3755 37561183” for 0046 188265.58

decrease) 2.59 8.17

3.1 Total - 2976 2964

comprehensi 1183 5319. 6954.ve income 65.58 97 39

3.2 Capital

increased

and reduced

by owners

3.2.1

Ordinary

increased by

owners

3.2.2

Capital

increased by

holders of

other equity

instruments

3.2.3

Share-based

payments

included in

owners’

equity

3.2.4

Other

3.3 Profit 4052 4052

distribution 6578 6578

2.562.56

3.3.1

Appropriatio

n to surplus

reserves

3.3.2--

Appropriatio

n to owners 4052 4052

(or 6578 6578

shareholders) 2.56 2.56

3.3.3

Other

3.4

Transfers

within

owners’

equity

65ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023

3.4.1

Increase in

capital (or

share capital)

from capital

reserves

3.4.2

Increase in

capital (or

share capital)

from surplus

reserves

3.4.3 Loss

offset by

surplus

reserves

3.4.4

Changes in

defined

benefit

schemes

transferred to

retained

earnings

3.4.5

Other

comprehensi

ve income

transferred to

retained

earnings

3.4.6

Other

3.5

Specific

reserve

3.5.1

Increase in

the period

3.5.2 Used

in the period

3.6 Other

4. Balance as 5959 5387 2963 9619 1638

at the end of 26927909 6380. 7548. 9712 7976

the period 487.12.00 11 47 3.82 57.28

III Company Profile

Shenzhen Properties & Resources Development (Group) Ltd. (hereinafter referred to as “the Company” or “Company”) was

incorporated based on the reconstruction of Shenzhen Properties & Resources Development Co. Ltd. after obtaining approval of

ZFBF [1991] No. 831 from People’s Government of Shenzhen Municipality. It was registered with Shenzhen Industrial and

Commercial Administration Bureau on 17 January 1983 with Shenzhen as its headquarters. Now the Company holds the business

license for legal person with the registration number/unified social credit code of 91440300192174135N. The registered capital was

RMB595979092 with the total shares of 595979092 (RMB1 face value per share) among which restricted public shares:

1898306 A shares and 0 B shares; unrestricted public shares: 526475543 A shares and 67605243 B shares. The stock of the

Company has been listed on the Shenzhen Stock Exchange on 30 March 1992.The Company is in the real estate sector. Its main business includes development of real estate and sale of commercial housing

construction and management of buildings house rent supervision of construction domestic trading and materials supply and

66ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023

marketing (excluding exclusive dealing and monopoly sold products and commodities under special control to purchase). Main

products or services rendered mainly include the development and sales of commercial residential housing; property management;

buildings and the building devices maintenance garden afforest and cleaning service; property leasing; supervise and management of

the engineering; retails of the Chinese food Western-style food and wines and etc.The financial statements were approved and authorized for issue by the 19th Meeting of the 10th Board of Directors of the Company

on 25 August 2023.The consolidation scope of the Company’s consolidated financial statements was determined based on the control. There were 62

subsidiaries including Shenzhen Huangcheng Real Estate Co. Ltd. Dongguan Guomao Changsheng Real Estate Development Co.Ltd. Shenzhen International Trade Center Property Management Co. Ltd. included in the consolidation financial statements in this

report. Please refer to the Note VIII and Note IX of the financial report for details.IV Basis for Preparation of Financial Statements

1. Preparation Basis

Based on the continuing operation the financial statements of the Company are prepared in accordance with the actual

transactions governing provisions of the Accounting Standards for Business Enterprises and the following major accounting

policies and estimates.

2. Continuation

There was no such case where the sustainable operation ability within 12 months since the end of the Reporting Period was highly

doubted.V. Important Accounting Policies and Estimations

Indication of specific accounting policies and estimations:

1. Statement for Complying with the Accounting Standard for Business Enterprise

The financial statement prepared by the Company complies with the requirements of the latest accounting standards for business

enterprises as well as the application guidelines interpretations and other relevant regulations (hereinafter referred to as the

“accounting standards for business enterprises”) issued by the Ministry of Finance. It reflects the Company’s financial conditions

operating results cash flow and other related information in a truthful and complete manner.In addition in the preparation of the financial report reference was made to the presentation and disclosure requirements of the Rule

for Information Disclosure by Companies Offering Securities to the Public No. 15 - General Provisions on Financial Reports (2014

Revision) and the Notice on Related Matters of the Implementation of New Accounting Standards for Business Enterprises by Listed

Companies (KJBH [2018] No. 453).

2. Fiscal Period

The fiscal year of the Company is a solar calendar year which is from 1 January to 31 December.

3. Operating Cycle

Except for the real estate industry other businesses run by the Company have relatively short operating cycles according to the

classification standard of 12-month’s liquidity of assets and liabilities. The operating cycle of the real estate industry shall be

generally more than 12 months from real estate development to cash the sales. The specific cycle shall be determined by the

67ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023

development project and classified by the assets and liabilities liquidity.

4. Standard Currency of Accounts

The Company adopts Renminbi as a standard currency of accounts.

5. Accounting Process of Business Combinations under the Same Control and not under the Same Control

1. Accounting Process of Business Combinations under the Same Control

For business combination under the same control achieved through one transaction or step by step through multiple transactions by

the Company the assets and liabilities acquired in a business combination are measured at the carrying value of the acquiree in the

consolidated financial statements of the ultimate controlling party at the date of combination. The difference between the carrying

value of net assets acquired by the Company and the carrying value of the combination consideration paid (or the total nominal value

of shares issued) is referred to for adjusting capital reserve; if capital reserve is not sufficient to offset the difference then retained

earnings are adjusted.

2. Accounting Process of Business Combinations not under the Same Control

The Group shall recognize the positive balance between the combination costs and the fair value of the identifiable net assets

obtained from the acquiree on purchase date as goodwill. If the combination costs are less than the fair value of the identifiable net

assets obtained from the acquire the Company shall recheck the various identifiable assets and liabilities obtained from the acquire

fair value with liabilities and measurement of combination costs. If the combination costs are less than the fair value of the

identifiable net assets obtained from the acquire after recheck the Company shall the record the balance into the profit and loss of the

current period.Business combinations not under the same control achieved step by step through multiple transactions should be treated in the

following order:

(1) Adjusting the initial investment cost of long-term equity investment If the equity held prior to the date of purchase is accounted

under the equity method the equity is remeasured at the fair value on the purchase date and the difference between the fair value and

its carrying value is included in the investment income of the current period; if the equity in the acquiree held prior to the purchase

date involves other comprehensive income or changes in other owners' equity under the equity method of accounting it is converted

into income for the current period on the purchase date except for other comprehensive income arising from the re-measurement of

the investee's net liabilities of the defined benefit pension plan or changes in net assets of the defined benefit plan and changes in the

fair value of investments in other equity instruments held.

(2) Determining the goodwill (or the amount included in the profit or loss for the current period) When comparing the initial

investment cost of long-term equity investments adjusted in the first step with the share of the fair value of the identifiable net assets

of the subsidiary on the purchase date if the former is more than the latter the difference between the former and the latter is

recognized as goodwill; if the former is less than the latter the difference is included in profit or loss for the current period.Step-by-step disposal of equity through multiple transactions that results in loss of control over the subsidiary

(1) Principles for determining whether transactions in the process of step-by-step disposal of equity that results in the loss of control

over a subsidiary constitute a "package deal"

The multiple transactions are generally regarded as a "package deal" in accounting treatment if the clauses conditions and economic

impacts of various transactions fall under one or more of the following circumstances:

1) These transactions are reached concurrently or after the impact thereof on each other is taken into consideration.

2) These transactions may achieve a complete business result only as a whole.

68ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023

3) The occurrence of a transaction depends on the occurrence of at a minimum one another transaction.

4) A transaction is considered uneconomical separately but is considered economical when other transactions are also taken into

consideration.

(2) Accounting treatment when transactions in the process of step-by-step disposal of equity that results in the loss of control over a

subsidiary constitute a "package deal"

If the transactions in the disposal of equity of a subsidiary that results in the loss of control constitute a package deal each transaction

should be accounted for as a transaction that disposes of and loses control over a subsidiary; however the difference between the

disposal price and the share of the net assets of the subsidiary corresponding to the disposal of the investment for each disposal prior

to the loss of control should be recognized as other comprehensive earnings in the consolidated financial statements and transferred

to profit or loss for the current period when the Company lost the control.In the consolidated financial statements the remaining equity should be remeasured at fair value on the date of loss of control. The

sum of the consideration obtained from the disposition of equity and the fair value of the residual equity minus the Company's

portion of net assets in the former subsidiary calculated from the date of combination on an ongoing basis at the original shareholding

ratio is included in the return on investment for the current period when the Company lost the control. Other comprehensive income

related to the equity investments in the former subsidiary should be included in the return on investment or retained earnings for the

current period when the Company lost the control.

(3) Accounting treatment when transactions in the process of step-by-step disposal of equity that results in the loss of control over a

subsidiary do not constitute a "package deal"

If the Company disposes of investments made in its subsidiary without losing control over the subsidiary in the consolidated

financial statements the difference between the payment for equity disposed of and the Company's corresponding portion of net

assets in the subsidiary is included in the capital reserve. If the capital reserve is insufficient for offset the retained earnings should

be adjusted.If the disposal of investments made in its subsidiary results in a loss of control over the subsidiary in the consolidated financial

statements the remaining equity should be remeasured at the fair value on the date of loss of control. The sum of the consideration

obtained from the disposition of equity and the fair value of the residual equity minus the Company's portion of net assets in the

former subsidiary calculated from the date of combination on an ongoing basis at the original shareholding ratio is included in the

return on investment for the current period when the Company lost the control. Other comprehensive income related to the equity

investments in the former subsidiary should be included in the return on investment or retained earnings for the current period when

the Company lost the control.

6. Methods for Preparing Consolidated Financial Statements

Based on the financial statements of the Company as the parent and its subsidiaries and other related materials the consolidated

financial statements were prepared by the Group as the parent according to Accounting Standards for Enterprises No. 33 –

Consolidated Financial Statements.

7. Classification of Joint arrangements and Accounting Treatment of Joint Operations

1. Identification and classification of joint arrangements

A joint arrangement is an arrangement over which two or more parties have joint control. A joint arrangement has the following

characteristics: (1) Each participant is bound by the arrangement; (2) two or more parties of the joint arrangement exercise joint

69ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023

control over the arrangement. No one party can control the arrangement alone and any party with joint control over the arrangement

can prevent the other party or combination of parties from controlling the arrangement alone.Joint control refers to the common control over a particular arrangement according to relevant agreement and that the decisions on

relevant activities under such arrangement are subject to unanimous consent from the parties sharing the joint control.Joint arrangements are divided into joint operations and joint ventures. A joint operation is a joint arrangement whereby the party to

joint arrangement has rights to the assets and obligations for the liabilities related to the arrangement. A joint venture is a joint

arrangement whereby the party to joint arrangement has rights to the net assets of the arrangement.

2. Accounting treatment of joint arrangements

A party to a joint operation shall recognize the following items related to its share of interest in the joint operation and conduct

accounting treatment for them in accordance with the relevant provisions of the Accounting Standard for Business Enterprises: (1)

Recognition of assets held separately and of assets held jointly in proportion to its share; (2) recognition of liabilities incurred

separately and of liabilities incurred jointly in proportion to its share; (3) recognition of revenue from the sale of its share of the

output of the joint operation; (4) recognition of revenue from the sale of output of the joint operation in proportion to its share; (5)

recognition of expenses incurred separately and of expenses incurred in the joint operation in proportion to its share.The party to a joint venture should conduct accounting treatment in accordance with relevant provisions of the Accounting Standards

for Business Enterprises No. 2 - Long-term Equity Investment.

8. Recognition Standard for Cash and Cash Equivalents

In the Company’s understanding cash and cash equivalents include cash on hand any deposit that can be used for cover and short-

term (usually due within 3 months since the day of purchase) and high circulating investments which are easily convertible into

known amount of cash and whose risks in change of value are minimal.

9. Foreign Currency Businesses and Translation of Foreign Currency Financial Statements

(1) Accounting treatments for translation of foreign currency business

As for a foreign currency transaction in its initial recognition the amount in the foreign currency shall be translated into the amount

in the Renminbi at the spot exchange rate of the transaction date. On balance sheet date the foreign currency monetary items shall be

translated as the spot exchange rate on the balance sheet date the balance occurred thereof shall be recorded into the profits and

losses at the current period except that the balance of exchange arising from the principal and interests of foreign currency

borrowings for the purchase and construction or production of assets eligible for capitalization. The foreign currency non-monetary

items measured at the historical cost shall still be translated at the spot exchange rate on the transaction date of which the amount of

functional currency shall not be changed. The foreign currency non-monetary items measured at the fair value shall be translated at

the spot exchange rate on the confirming date of fair value of which the balance of exchange shall be included into the profit and

loss of the current period or other comprehensive income.

(2) Translation of foreign currency financial statements

The asset and liability items in the balance sheets shall be translated at a spot exchange rate on the balance sheet date. Among the

owner’s equity items except for the items as “retained earnings” other items shall be translated at the spot exchange rate at the time

when they are incurred. The income and expense items in the income statements shall be translated at the spot exchange rate at the

time when they are incurred. The difference from translation of foreign currency financial statements thereof shall be recognized as

comprehensive income.

70ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023

10. Financial Instruments

1. Recognition and derecognition of financial instruments

When the Group becomes a party to a financial instrument contract it recognizes relevant financial assets or financial liabilities.All regular acquisition or sales of financial assets are recognized and derecognized on a trading day basis. Regular acquisition or

sales of financial assets means delivering financial assets within the time limit of laws regulations and usual market practices and in

line with contract terms. The trading day refers to the date when the Group promises to acquire or sell financial assets.Financial assets (or part of financial assets or part of a set of similar financial assets) are derecognized i.e. written off from its

account and balance sheet if the following conditions are met:

(1) The right to receive cash flows from financial assets has expired;

(2) The right to receive cash flows from the financial assets is transferred or the obligation to pay the full amount of cash flows

received to a third party in a timely manner is assumed under a "pass-through agreement"; and (a) substantially almost all the risks

and rewards of its ownership of the financial assets are transferred or (b) control over the financial asset is relinquished although

substantially all the risks and rewards of its ownership of the financial assets are neither transferred nor retained.

2. Classification and measurement of financial assets

At initial recognition according to the business model of managing financial assets and the contractual cash flow characteristics of

financial assets financial assets of the Group are classified into the following categories: Financial assets measured at the amortized

cost financial assets measured at fair value through other comprehensive income of the current period and financial assets measured

at fair value through profit and loss for the current period. The subsequent measurement of financial assets depended on their

categories.The Group's classification of financial assets is based on the Group's business model for managing financial assets and the cash flow

characteristics of the financial assets.

(1) Financial assets measured at amortized cost

Financial assets that meet both of the following conditions shall be classified as financial assets measured at amortized cost: The

Group's business model of managing the financial assets aims at obtaining contractual cash flows; and as stipulated by contract

clauses of the financial assets the cash flows generated on a specific date are merely for the payment of principal or interest from the

unpaid principal. Such financial assets are subsequently measured at amortized cost using the effective interest method. Gain or loss

arising from derecognition or amortization using the effective interest method is included in profit and loss for the current period.

(2) Debt instrument investment measured at fair value through other comprehensive income

Financial assets that meet all the following conditions shall be classified as financial assets measured at fair value through other

comprehensive income: The Group's business model of managing the financial assets aims at obtaining contractual cash flows as well

as selling financial assets; and as stipulated by contract clauses of the financial assets the cash flows generated on a specific date are

merely for the payment of principal or interest from the unpaid principal. Such financial assets shall be subsequently measured at fair

value. The discount or premium is amortized using the effective interest method and recognized as interest income or expense.Except for impairment losses or gains and exchange differences that are recognized as profit and loss for the current period changes

in the fair value of such financial assets shall be recognized as other comprehensive income until the financial assets are

derecognized when accumulative gains or losses shall be transferred to profit and loss for the current period. Interest income related

to such financial assets is included in profit or loss for the current period.

(3) Equity instrument investment measured at fair value through other comprehensive income

71ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023

For financial assets measured at fair value through other comprehensive income that are irrevocably chosen and designated by the

Group from some non-trading equity instruments the relevant dividend income shall be included in profit and loss for the current

period and changes in the fair value shall be recognized as other comprehensive income until the financial assets are derecognized

when accumulative gains or losses shall be transferred to retained earnings.

(4) Financial assets measured at fair value through profit and loss for the current period

The aforementioned financial assets measured at amortized cost and financial assets other than those measured at fair value through

other comprehensive income are classified as financial assets measured at fair value through profit and loss for the current period. At

initial recognition in order to eliminate or significantly reduce accounting mismatch financial assets can be designated as financial

assets measured at fair value through profit or loss for the current period. Such financial assets shall be measured at fair value and all

changes in fair value are included in the profit and loss for the current period.When and only when the Group changes its business model of managing financial assets all relevant financial assets affected will be

re-classified.For financial assets measured at fair value through profit and loss for the current period transaction costs are directly included in

profit and loss for the current period. For other types of financial assets related transaction costs are included in their initial

recognized amounts.

3. Classification and measurement of financial liabilities

At initial recognition the financial liabilities of the Group are classified into the following categories: Financial liabilities measured

at the amortized cost and financial liabilities measured at fair value through profit and loss for the current period.Financial liabilities can be designated as financial liabilities measured at fair value through profit or loss for the current period at

initial measurement if one of the following conditions is met: (1) The designation can eliminate or significantly reduce accounting

mismatch; (2) the management and performance evaluation of a portfolio of financial liabilities or a portfolio of financial assets and

financial liabilities are based on fair value in accordance with the Group's risk management or investment strategy as set out in a

formal written document and are reported to key management personnel on this basis within the Group; (3) The financial liabilities

contain embedded derivatives require splitting.The Group determines the classification of financial liabilities at initial recognition. For financial liabilities measured at fair value

through profit and loss for the current period transaction costs are directly included in profit and loss for the current period. For other

types of financial liabilities related transaction costs are included in their initial recognized amounts.The subsequent measurement of financial liabilities depended on their categories:

(1) Financial liabilities measured at amortized cost

Such financial liabilities shall be subsequently measured at amortized cost using the effective interest method.

(2) Financial liabilities measured at fair value through profit and loss for the current period

Financial liabilities measured at fair value through profit or loss for the current period include trading financial liabilities (including

derivatives that are financial liabilities) and financial liabilities designated as at fair value through profit or loss at initial recognition.

4. Financial instrument offset

The net amount after financial assets and financial liabilities offset each other is reported in the balance sheet if both of the following

conditions are met: The Group had a currently enforceable legal right to offset the recognized amounts; the Group planned to settle

them on a net basis or to realize the financial assets and pay off the financial liabilities simultaneously.

5. Impairment of financial instrument

72ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023

(1) Impairment measurement and accounting handling of financial instrument

Based on expected credit loss the Company conducts impairment handling and confirms loss reserve for financial assets which is

measured by amortized cost debt instrument investment which is measured by fair value and whose change is calculated into other

comprehensive profits accounts receivable of rental loan commitment which is beyond financial debt classified as the one which is

measured by fair value and whose change is calculated into current profits and losses financial debt which does not belong to the one

which is measured by fair value and whose change is calculated into current profits or losses or financial guarantee contract of

financial debt which is formed when it does not belong to financial asset transfer and doesn’t conform to confirmation condition of

termination or keeps on being involved in transferred financial asset.Expected credit loss refers to weighted average of credit loss of financial instrument which takes the risk of contract breach

occurrence as the weight. Credit loss refers to the difference between all contract cash flow which is converted into cash according to

actual interest rate and receivable according to contract and all cash flow which to be charged as expected i.e. current value of all

cash shortage. Among it as for financial asset purchased or original which has had credit impairment it should be converted into

cash according actual interest rate of this financial asset after credit adjustment.As for financial asset purchased or original which has had credit impairment the Company only confirms cumulative change of

expected credit loss within the whole duration after initial confirmation on the balance sheet date as loss reserve.As for accounts receivable which don’t include major financing contents or the Company does not consider financing contents in

contract which is less than one year the Company applies simplified measurement method and measures loss reserve according to

amount of expected credit loss within the whole duration.As for account receivable of rental and accounts receivable including major financing contents the Company applies simplified

measurement method and measure loss reserve according to amount of expected credit loss within the whole duration.As for financial asset beyond above mentioned measurement methods the Company evaluates whether its credit risk has increased

obviously since the initial confirmation on each balance sheet date. In case credit risk has increased obviously the Company

measures the loss reserve according to amount of expected credit loss within the whole duration; in case the credit risk does not

increase obviously the Company measures loss reserve according to the amount of expected credit loss in next 12 months.By utilizing obtainable rational and well grounded information including forward-looking information comparing the risk of

contract breach on balance sheet date and risk of contract breach on initial confirmation date the Company confirms whether the

credit risk of financial instrument has increased obviously from initial confirmation.On balance sheet date in case the Company judges that the financial instrument just has relatively low credit risk then it will be

assumed that credit risk of the financial instrument has not increased obviously.Based on single financial instrument or financial portfolio the Company evaluates expected credit risk and measures expected credit

loss. When based on financial instrument portfolio the Company takes common risk characteristics as the basis and divides financial

instruments into different portfolios.The Company measures expected credit loss again on each balance sheet date the increase of loss reserve or amount which is

transfer back generated by it is calculated into current profits and losses as impairment profits or losses. As for financial asset which

is measured by amortized cost loss reserve offsets the carrying value of the financial asset listed in the balance sheet; as for debt

investment which is measured by fair value and whose change is calculated into other comprehensive profits the Company confirms

its loss reserve in other comprehensive profits and does not offset the carrying value of the financial asset.

(2) Financial instruments assessing expected credit risk by groups and measuring expected credit losses

Item Recognition basis Method of measuring expected credit losses

Other receivables-intercourse funds among Accounts nature Consulting historical experience in credit losses

related party group within the consolidation combining actual situation and prediction for future

scope economic situation the group’s expected credit loss

Other receivables-interest receivable group rate shall be accounted through exposure at default

and the expected credit loss rate within the next 12

Other receivables-other intercourse funds months or the entire life

among related party group

Other receivables-credit risk characteristics Aging group Consulting historical experience in credit losses

73ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023

group combining actual situation and prediction for future

economic situation the group’s expected credit loss

rate shall be accounted through exposure at default

and the expected credit loss rate within the next 12

months or the entire life

(3) Accounts receivable with expected credit losses measured by groups

* Specific groups and method of measuring expected credit loss

Item Recognition basis Method of measuring expected credit losses

Bank’s acceptance bills receivable Bill type Consulting historical experience in credit losses

combining actual situation and prediction for future

Trade acceptance bills receivable economic situation the group’s expected credit loss

rate shall be accounted through exposure at default

and the expected credit loss rate within the entire life

Accounts receivable-other intercourse funds Account nature Consulting historical experience in credit losses

among related party group combining actual situation and prediction for future

economic situation the group’s expected credit loss

rate shall be accounted through exposure at default

and the expected credit loss rate within the entire life

Accounts receivable-credit risk characteristics Aging group Prepare the comparative list between aging of

group accounts receivable and expected credit loss rate

over the entire life by consulting historical

experience in credit losses combining actual

situation and prediction for future economic

situation

* Accounts receivable-the comparative list between aging of common customer group and expected credit loss rate over the entire

life

Aging Expected credit loss rate of accounts receivable (%)

Within 1 year (inclusive the same below) 3.00

1 to 2 years 10.00

2 to 3 years 30.00

3 to 4 years 50.00

4 to 5 years 80.00

Over 5 years 100.00

6. Financial asset transfer

Financial assets are derecognized if the Group has transferred almost all the risks and rewards of its ownership transferred to the

transferor; financial assets are not derecognized if the Group has retained almost all the risks and rewards of its ownership.If the Group has neither transferred nor retained almost all the risks and rewards of its ownership of the transferred financial assets it

will be treated respectively according to the following circumstances: If the control over the financial assets is waived relevant

financial assets shall be derecognized and the assets and liabilities arising from them shall be recognized; if the control over the

financial assets is not waived relevant financial assets shall be recognized based on the extent of continuing involvement with

transferred financial assets and related liabilities shall be recognized accordingly.If continuing involvement is provided by way of financial guarantee for the transferred financial assets the assets resulting from the

continuing involvement are recognized at the lower of the carrying value of the financial assets and the financial guarantee amount.The financial guarantee amount refers to the maximum amount of the consideration received that will be required to be repaid.

11. Notes Receivable

Refer to Note V 10 Financial Instruments of the financial statements for details.

12. Accounts Receivable

Refer to Note V 10 Financial Instruments of the financial statements for details.

74ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023

13. Accounts Receivable Financing

Not applicable.

14. Other Receivables

Recognition and accounting treatment methods regarding expected credit losses of other receivables

Refer to Note V 10 Financial Instruments of the financial statements for details.

15. Inventory

(1) Inventories Classification

Inventories include development land held for sale or consumption in the process of development and operation development

products temporarily leased development products which intended for sale relocation housing stock materials inventory equipment

and low-value consumables etc. as well as development costs in the process of development.

(2) Cost Flow Assumption

1) Send-out materials shall adopt the moving weighted average method.

2) During the development of the project the development land shall be included in the development cost of the project by the floor

area apportion of the developed products.

3) Send-out developed products shall be accounted by specific identification method.

4) The temporarily leased development products which intended for sale and relocation housing shall be amortized averagely by

stages according to the expected useful life of the same kind of fixed assets of the Company.

5) If the public supporting facilities are completed earlier than the relevant development products after the final account of the public

supporting facilities， it shall be account into the development cost of the relevant development projects according to the buildingarea; If the public supporting facilities are completed later than the relevant development products the relevant development products

shall withhold the public supporting facilities fees and adjust the relevant development product costs according to the difference

between the actual occurrence and the withhold amount after the completed public supporting facilities' final accounts.

(3) Recognition basis of Net Realizable Value of Inventory

On the balance sheet date inventory shall be measured at the lower of cost or net realizable value and provision shall be made for

falling price of inventories on the ground of the difference between the cost of each item of inventories and the net realizable value.Inventories directly for sale under normal producing process to the amount after deducting the estimated sale expense and relevant

taxes from the estimated sell price of the inventory the net realizable value has been recognized; inventories which need to be

processed under normal producing process to the amount after deducting the estimated cost of completion estimated sale expense

and relevant taxes from the estimated sale price of produced finished goods the net realizable value has been recognized; on the

balance sheet date in the same item of inventories if some have contractual price agreement while others do not the net realizable

value shall be recognized respectively and compared with their cost and the amount of provision withdrawal or reversal for falling

price of inventories shall be recognized respectively.

(4) Inventory System for Inventories

Inventory system: Perpetual inventory system

(5) Amortization Method of the Low-value Consumption Goods and Packing Articles

1) Low-value Consumption Goods

One-off amortization method

2) Packing Articles

One-off amortization method

16. Contract Assets

The Company presents contract assets or contract liabilities on the balance sheet according to the relationship between the fulfillment

of its contract performance obligations and its customers’ payment. Considerations that the Company has the right to collect for

75ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023

commodities transferred or services provided to customers (except for accounts receivable) are presented as contract assets.For contract assets that do not contain significant financing components the Company uses the simplified model of expected credit

loss measuring the loss provision according to an amount that is equivalent to the amount of expected credit loss of the entire

duration. The increased loss provision or reversed amount thereof shall be recorded into the current profit or loss as impairment

losses or gains.For contract assets that contain significant financing components the Company has made the accounting policy choice and selected

the simplified model of expected credit loss measuring the loss provision according to an amount that is equivalent to the amount of

expected credit loss of the entire duration. The increased loss provision or reversed amount thereof shall be recorded into the current

profit or loss as impairment losses or gains.

17. Contract Costs

Contract costs comprise contract performance cost and contract acquisition cost.The cost incurred by the Company from performing a contract is recognized into an asset as contract performance cost when it meets

the following conditions:

This cost directly relates to an existing contract or a contract expected to be acquired. It consists of direct labor direct materials

manufacture costs (or similar costs) costs specified to be borne by the customer and other costs incurred from this contract solely.This cost has increased the Company’s sources that are used to fulfill its contract performance obligations in the future.This cost is expected to be recovered.An incremental cost that is incurred by the Company for acquiring a contract and expected to be recovered is recognized into an asset

as contract acquisition cost. However for such asset with an amortization period of less than one year the Company recognizes them

into current profit/loss at their occurrence.Assets related to contract costs are amortized on the same basis for recognizing the revenue from commodities or services related to

such assets.When the carrying value of an asset related to contract costs is higher than the difference between the following two items the

Company will withdraw impairment provision for the exceeded part and recognize it as asset impairment loss:

Residual consideration expected to be gained from transferring commodities and services related to this asset;

Costs expected to be incurred from transferring such commodities or services.When the aforementioned asset impairment provision is reversed later the carrying value of the asset after the reversal should not

exceed its carrying value on the reversal date under the assumption of no withdrawal of impairment provision.

18. Assets Held for Sale

The Company divides its components (or non-current assets) meeting the following conditions into available for sale assets: (1)

Assets can be sold immediately under the current conditions according to the practice of selling such assets or disposal groups in

similar transactions; (2) The sale is likely to occur and a resolution has been made on a sale plan and a firm purchase commitment is

obtained (a firm purchase commitment refers to a legally binding purchase agreement signed between an enterprise and other parties

which contains important terms such as transaction price time and severe penalty for breach of contract to minimize the possibility

of major adjustment or cancellation of the agreement. The sale is expected to be completed within a year. It has been approved by

relevant authorities or regulatory authorities according to relevant regulations.The Company adjusts the estimated net residual value of available for sale assets to the net amount of its fair value minus the selling

expenses (which shall not exceed the original book value of the assets available for sale). The difference between the original book

value and the adjusted estimated net residual value shall be included in the current profit and loss as the loss of asset impairment and

provisions for impairment of assets available for sale shall be made. For the amount of impairment loss of disposal group available

for sale recognized the book value of goodwill of the disposal group shall be offset first and then the book value of disposal group

shall be offset in proportion according to the share of the book value of non-current assets in the disposal group measured according

to relevant Standard.

76ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023

When the net amount of fair value of non-current assets available for sale minus the selling expenses increases on the subsequent

balance sheet date the amount previously written down shall be restored and reversed within the amount of asset impairment loss

recognized after being classified as available for sale assets and the reversed amount shall be included in the current profits and

losses. The impairment loss of assets recognized before being classified as available for sale assets shall not be reversed. When the

net amount of fair value of disposal group available for sale minus the selling expenses increases on the subsequent balance sheet

date the amount previously written down shall be restored and reversed within the amount of asset impairment loss recognized as

non-current assets in the disposal group measured according to this Standard after being classified into the categories available for

sale assets and the reversed amount shall be included in the current profits and losses. The book value of goodwill that has been

offset and the impairment loss of non-current assets measured according to relevant Standard shall not be reversed before they are

classified as available for sale assets. The subsequent reversal amount of asset impairment loss recognized as disposal group

available for sale shall be increased in proportion to the share of the book value of non-current assets in the disposal group except

goodwill which are measured according to relevant Standard. In case that an enterprise loses its control over a subsidiary due to sale

of its investment in the subsidiary the investment in the subsidiary to be sold shall be divided into the available for sale category in

individual financial statement of the parent company when the proposed investment in the subsidiary meets the conditions for

classification of available for sale category and all assets and liabilities of the subsidiary shall be classified into available for sale

category in the consolidated financial statements no matter whether the enterprise retains part of equity investment after the sale.

19. Investments in Debt Obligations

Not applicable.

20. Investments in other Debt Obligations

Not applicable.

21. Long-term Receivable

Refer to Note V-10. Financial Instrument for details.

22. Long-term Equity Investments

(1) Judgment of Joint Control and Significant Influences

The term "joint control" refers to the joint control over an arrangement in accordance with the related agreements which does not

exist unless the participants sharing the control power agree with each other about the related arranged activity. The term "significant

influences" refers to the power to participate in making decisions on the financial and operating policies of an enterprise but not to

control or do joint control together with other parties over the formulation of these policies.

(2) Recognition of Investment Cost

1) If the business combination is under the common control and the acquirer obtains long-term equity investment in the consideration

of cash non-monetary asset exchange bearing acquiree’s liabilities or the issuance of equity securities the initial cost is the carrying

amount of the proportion of the acquiree’s owner’s equity at the acquisition date. The difference between the initial cost of the long-

term equity investment and the carrying amount of the paid combination or the total amount of the issued shares should be adjusted

to capital surplus. If the capital surplus is not sufficient for adjustment retained earnings are adjusted respectively.When a long-term equity investment is formed from the business combination under common control through the Company’s

multiple transactions step by step the treatment shall be carried out based on whether the transactions constitute the “package deal”.If they do the accounting treatment shall be carried out on the basis of assuming all transactions as one transaction with the

acquisition of control. If they do not the initial investment cost shall be the portion of the carrying value of acquiree’s net assets

entitled in the consolidated financial statements of the final controller after the consolidation. The difference between the initial

investment cost of the long-term equity investment on the combination date and the carrying value of the investment before the

combination plus the carrying value of the newly-paid consideration for the acquisition of the shares on the consolidation date shall

be adjusted to capital reserve; if the capital reserve is insufficient for the adjustment retained earnings should be adjusted accordingly.

77ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023

2) For those formed from the business combination under different control the initial investment cost is the fair value of the

combination consideration paid on the acquisition date.When a long-term equity investment is formed from the business combination under different control through the Company’s

multiple transactions step by step the accounting treatment shall be carried out based on whether the financial statements are

individual or consolidated:

* In individual financial statements the initial investment cost accounted in cost method is the sum of the carrying value of the

equity investment originally held and the cost of new investment.* In consolidate financial statements judge whether the transactions constitute the “package deal”. If they do the accounting

treatment shall be carried out on the basis of assuming all transactions as one transaction with the acquisition of control. If they do

not for the acquiree’s equity held before the acquisition date re-measurement shall be carried out according to the fair value of the

equity on the acquisition date and the difference between the fair value and the carrying value shall be recorded into current

investment income; if the acquiree’s equity held before the acquisition date involves other comprehensive income accounted in

equity method other comprehensive income related to it shall be transferred into the income for the period in which the acquisition

date falls with the exception of the other comprehensive incomes occurred because of the changes of net liabilities or net assets of

the defined benefit pension plans be re-measured for setting by the investees.* For those formed other than from business combination: If they are acquired in cash payment the initial investment cost is the

purchase price actually paid; if they are acquired in the issue of equity securities the initial investment cost is the fair value of the

issued equity securities; if they are acquired in debt restructuring the initial investment cost shall be recognized according to the

Accounting Standards for Enterprises No. 12 - Debt Restructuring; if they are acquired in the exchange of non-monetary assets the

initial investment shall be recognized according to the Accounting Standards for Enterprises No. 7 - Exchange of Non-Monetary

Assets.

(3) Method of subsequent measurement and recognition of profits and losses

Long-term equity investment with control over investees shall be accounted in cost method; long-term equity investment on

associated enterprises and joint ventures shall be accounted in equity method.

(4) Method of treating the disposal of the investment in a subsidiary stem by step through multiple transactions until the loss

of the controlling right

1) Individual financial statements

For the disposed equity the difference between its fair value and the actually obtained price shall be recorded into current profits or

losses. For the residual equity the part that still has significant effects on investees or with common control jointly with other parties

shall be accounted in equity method; the part that has no more control common control or significant effects on investees shall be

accounted in accordance with the relevant regulation of the Accounting Standards for Enterprises No. 22 - Recognition and

Measurement of Financial Instruments.

2) Consolidated financial statements

* For the disposal of the investment in subsidiaries step by step until the loss of the controlling right through multiple transactions

which do not constitute the “package deal”

Before the loss of the controlling right for the balance between the disposal remuneration and the shares of net assets in the

subsidiaries that have been calculated since the acquisition date or combination date corresponding to the disposal of long-term

equity investment capital reserve (capital premium) shall be adjusted and if the capital premium is not sufficient for the write-down

the retained earnings shall be written down.At the loss of the controlling right over the original subsidiaries the residual equity shall be re-measured at its fair value on the date

of losing the controlling right. The difference between the consideration obtained in the equity disposal plus the fair value of the

remaining equities less the Company’s share of net assets enjoyed of the former subsidiary that has been calculated since the

acquisition date or combination date according to the former shareholding ratio shall be recorded into the investment gains for the

period when the control ceases; meanwhile goodwill shall be written down. Other comprehensive income related to former

78ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023

subsidiary's equity investment shall be transferred into current investment income when the control ceases.* For the disposal of the investment in subsidiaries step by step until the loss of the controlling right through multiple transactions

which constitute the “package deal”

The accounting treatment shall be carried out on the basis of considering each transaction as a transaction of disposing the subsidiary

and losing control. However before losing control the difference between each disposal price before losing the control and the

corresponding net assets share enjoyed of subsidiary when disposing long-term equity investment shall be recognized as other

comprehensive income in the consolidated financial statements and when the control ceases transferred into current profits or losses

of the period of losing control.

(5) Impairment test method and impairment provision method

When there is objective evidence indicating impairment of the investment in subsidiaries joint ventures and cooperative enterprises

on the balance sheet date corresponding provision for impairment shall be made according to the difference between the book value

and recoverable amount.

23. Investment Property

Measurement mode of investment real estates

Measurement of cost method

Depreciation or amortization method

1. The term "investment real estate" includes the right to use any land which has already been rented the right to use any land which

is held and prepared for transfer after appreciation and the right to use any building which has already been rented.

2. The Company initially measures the investment property according to the costs and adopts the cost method in the subsequent

measurement of investment property and adopts the same methods with fixed assets and intangible assets to withdraw depreciation

or amortization. When there is any indication of impairment of investment property on the balance sheet date corresponding

provision for impairment shall be made according to the difference between the book value and recoverable amount.

24. Fixed Assets

(1) Recognized Standard of Fixed Assets

The term "fixed assets" refers to the tangible assets that simultaneously possess the features as follows: they are held for the sake

of producing commodities rendering labor service renting or business management; and their useful life is in excess of one fiscal

year. No fixed asset may be recognized unless it simultaneously meets the conditions as follows: (1) The economic benefits are

likely to flow into the enterprise; (2) The cost of the fixed asset can be measured reliably.

(2) Depreciation Method

Category Depreciation method Useful life (year) Expected net salvagevalue Annual deprecation

Houses and buildings Straight-linedepreciation 20-25 5-10 3.6-4.75

Transportation Straight-linedepreciation 5 5 19

Other equipment Straight-linedepreciation 5 5 19

Machinery equipment Straight-linedepreciation 5 5 19

Decoration of fixed Straight-line

assets depreciation 5 0 20

79ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023

(3) Recognition Basis Pricing and Depreciation Method of Fixed Assets by Finance Lease

Not applicable.

25. Construction in Progress

1. No construction in progress may be recognized unless it simultaneously meets the conditions as follows: (1) The economic

benefits are likely to flow into the enterprise; (2) The cost of the fixed asset can be measured reliably. Construction in progress shall

be measured according to the occurred actual costs before the assets available for the intended use.

2. When the construction in progress is available for the intended use it shall be transferred to fixed assets according to the actual

cost of the project. For construction in progress available for the intended use but not dealing with final accounts of completed

project it shall be transferred to fixed assets according to the estimated value first and then adjust original temporarily estimated

value based on the actual costs after the final accounts of completed project but not adjust the depreciation that was already

calculated.

26. Borrowing Costs

1. Recognition Principle of Capitalization of Borrowing Costs

Where the borrowing costs incurred to the Company can be directly attributable to the acquisition and construction or production of

assets eligible for capitalization it shall be capitalized and recorded into the costs of relevant assets. Other borrowing costs shall be

recognized as expenses when it occurred and shall be recorded into the current profits and losses.

2. Capitalization Period of Borrowings Costs

(1) The borrowing costs shall not be capitalized unless they simultaneously meet the following requirements: 1) The asset

disbursements have already incurred; 2) The borrowing costs have already incurred; 3) The acquisition and construction or

production activities which are necessary to prepare the asset for its intended use or sale have already started.

(2) Where the acquisition and construction or production of a qualified asset is interrupted abnormally and the interruption period

lasts for more than 3 months the capitalization of the borrowing costs shall be suspended. The borrowing costs incurred during such

period shall be recognized as expenses and shall be recorded into the profits and losses of the current period till the acquisition and

construction or production of the asset restarts.

(3) When the acquisition and construction or production of a qualified asset eligible for capitalization are available for its intended

use or sale the capitalization of borrowing costs shall be stopped.

3. Capitalized rate and amount of borrowing costs

To the extent that funds are borrowed specifically for the purpose of acquiring or constructing a qualifying asset the amount of

borrowing costs eligible for capitalization on that asset is determined as the actual interest costs (including amortization of discount

and premium confirmed according to effective interest method) incurred on that borrowing during the period less any investment

income on the temporary investment of the borrowing. To the extent that funds are borrowed generally and used for the purpose of

acquiring or constructing a qualifying asset the amount of borrowing costs eligible for capitalization shall be determined by applying

a capitalization rate to the weighted average of excess of accumulated expenditures on qualifying asset over that on specific purpose

borrowing.

27. Biological Assets

Not applicable.

80ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023

28. Oil and Gas Assets

Not applicable.

29. Right-of-use Assets

On the start date of the lease term the Group deems the right-of-use assets and lease obligations except for the simplified short-term

lease and low-value leases.The Group initially measures right-of-use assets at cost. The cost includes:

1. The initial measurement amount of the lease obligation.

2. If a lease incentive exists for lease payments made on or before the commencement date of the lease term the amount related to

the lease incentive already taken is deducted.

3. Initial direct costs incurred.

4. Costs expected to be incurred by the Group for dismantling and removing the leased asset(s) restoring the premises where the

leased asset(s) is/are located or restoring the leased asset(s) to the status agreed in the leasing clauses. If the aforementioned costs are

incurred for inventory production relevant provisions of Accounting Standard for Business Enterprises No.1 - Inventory is applicable.The Group recognizes and measures the costs described in Item 4 above in accordance with relevant provisions of the Accounting

Standards for Business Enterprises No. 13 - Contingencies. The initial direct costs incurred refer to the incremental costs incurred to

achieve the lease. Incremental costs are costs that would not have been incurred had the business not acquired the lease.The Group depreciates the right-of-use assets in accordance with relevant depreciation provisions of the Accounting Standards for

Business Enterprises No. 4 - Fixed Assets. If it is reasonably certain that the ownership of the leasehold property will be obtained at

the end of the lease term the Group will depreciate the leasehold property over its remaining service life. If it is not reasonably

certain that the ownership of the leasehold property will be obtained at the end of the lease term the Group will depreciate the leased

asset(s) over the lease term or the remaining service life whichever is shorter.The Group determines the impairment of the right-of-use assets and conducts accounting treatment of the impairment losses already

identified in accordance with relevant provisions of the Accounting Standards for Business Enterprises No. 8 - Asset Impairment.

30. Intangible Assets

(1) Pricing Method Useful Life and Impairment Test

1. Intangible assets include right to use land sites use right of software etc. and conduct the initial measurement according to the

costs.

2. With regard to intangible assets with limited service life it shall be amortized systematically and reasonably within their service

life according to the expected implementation of economic interests related to the intangible assets. If it can’t recognize the expected

implementation reliably it shall be amortized by straight-line method. The specific useful lives are as follows:

Items Useful life for amortization (years)

Use right of lands Statutory life of land use right

Use right of software 5

The intangible assets with uncertain service life shall not be amortized and the Company rechecks the service life of the intangible

assets in every accounting period. For intangible assets with uncertain service the recognition basis is without certain service life and

expected benefit life.

3. For intangible assets with definite service life when there is any indication of impairment on the balance sheet date corresponding

provision for impairment shall be made according to the difference between the book value and recoverable amount; for intangible

assets with uncertain service life and those not ready for service impairment test shall be conducted every year no matter whether

there is any indication of impairment.

81ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023

(2) Accounting Policies of Internal R&D Expenses

Not applicable.

31. Impairment of Long-term Assets

For long-term assets such as long-term equity investment investment property measured by cost model fixed assets construction in

progress and intangible assets with limited service life the Company shall estimate the recoverable amount if there are signs of

impairment on balance sheet date. For intangible assets with uncertain goodwill or service life formed by enterprise combination

whether or not there is sign of impairment impairment test shall be conducted every year. Goodwill combination and its related

assets group or combination of assets group shall be conducted the impairment test.If the recoverable amount of the above-mentioned long-term assets is lower than its carrying value it shall make the preparation for

assets impairment based on its balance and be recorded into current profits and losses.

32. Long-term Prepaid Expenses

Long-term deferred expenses refer to general expenses with the amortized period over one year (one year excluded) that have

occurred. Long-term prepaid expense shall be recorded into the account according to the actual accrual. Long-term prepaid expense

shall be amortized averagely within benefit period or specified period. In case of no benefit in the future accounting period the

amortized value of such project that fails to be amortized shall be transferred into the profits and losses of the current period.

33. Contract Liabilities

The Company presents contract assets or contract liabilities on the balance sheet according to the relationship between the fulfillment

of its contract performance obligations and its customers’ payment. Obligations to be fulfilled by the Company of transferring

commodities or providing services to customers as the Company has received or should receive customers’ considerations are

presented as contract liabilities.

34. Payroll

(1) Accounting Treatment of Short-term Compensation

During the accounting period when the employees providing the service for the Company the actual short-term compensation shall

be recognized as liabilities and be recorded into the current profits and losses or related assets costs.

(2) Accounting Treatment of the Welfare after Demission

The Company's welfare after demission plans is divided into defined contribution plans and defined benefit plans (1) During the

accounting period when the employee providing service for the Company the amount paid in line with the setting drawing plan will

be recognized as liabilities and recorded into current profits or losses or cost of relevant assets.

(2) The accounting treatment of defined benefit plans usually consists of the following steps:

1) According to the expected cumulative welfare unit method adopt unbiased and mutually consistent actuarial assumptions to

evaluate related demographic variables and financial variables measure the obligations generated from defined benefit plans and

recognize the period in respect of related obligations. Meanwhile discount the obligations generated from defined benefit plans to

recognize their present value and the current service costs;

2) If there are any assets in a defined benefit plan the deficit or surplus formed from the present value of the defined benefit plan

obligations less the fair value of the defined benefit plan assets shall be recognized as net liabilities or net assets of a defined benefit

plan. If there is any surplus in a defined benefit plan the net assets of the plan shall be measured at the lower of the surplus or the

upper asset limit;

3) At the end of the period the staff remuneration costs generated from a defined benefit plan shall be recognized as services costs

net interests of the net liabilities or net assets of the plan and changes from the re-measurement of the net liabilities or net assets of

the plan. Service costs and net interests of the net liabilities or net assets of the plan shall be recorded into the current profits or losses

or related asset costs while changes from the re-measurement of the net liabilities or net assets of the plan shall be recorded into

other comprehensive income and shall not be transferred back to profits or losses in subsequent accounting periods. But the amounts

82ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023

recognized in other comprehensive income may be transferred within the equity scope.

(3) Accounting Treatment of Demission Welfare

When the Company is unable to unilaterally withdraw the plan on the cancellation of labor relationship or the layoff proposal or

when recognizing the costs or expenses (the earlier one between the two) related to the reorganization of paying the demission

welfare should recognize the payroll liabilities from the demission welfare and include in the current gains and losses.

(4) Accounting Treatment of Other Welfare of the Long-term Employees

The Company provides the other long-term employee benefits for the employees and for those met with the defined contribution

plans accounting treatment should be conducted according to the related regulations of the defined contribution plans; the for the

others long-term employee benefits except for the former accounting treatment should be conducted according to the related

regulations of the defined benefit plans. In order to simplify the related accounting treatment the payrolls shall be recognized as

service costs the net amount of interest of net liabilities and net assets of other welfare of the long-term employees. The total net

amounts made up from the changes of measuring the net liabilities and net assets of other welfare of the long-term employees again

shall be recorded into the current profits and losses or related assets costs.

35. Lease Liabilities

On the start date of the lease term the Group deems the right-of-use assets and lease obligations except for the simplified short-term

lease and low-value leases.The Group initially measures the lease obligation at the present value of the lease payments outstanding at the commencement date of

the lease term.The term "lease payments" refers to the payments made by the Group to the lessor in terms of the use of the leased asset(s) within the

lease term including:

(1) fixed lease payments and substantial fixed lease payments (if a lease incentive exists deduct the amount related to the lease

incentive);

(2) the variable lease payments that depend on indexation or ratio which are determined according to the indexation or ratio on the

commencement date of the lease term in the initial measurement;

(3) the exercise price of the purchase option when applicable if the Group is reasonably certain that the option will be exercised;

(4) payments required to be made for exercising the option to terminate the lease if the lease term reflects that the Group will exercise

such an option;

(5) estimated amount payable based on the residual value of the guarantee provided by the Group.

When calculating the present value of lease payments the Group uses the interest rate implicit in lease as the rate of discount. If the

interest rate implicit in lease cannot be determined the Group’s incremental lending rate is used as the rate of discount.

36. Provisions

1. The obligation such as external guaranty litigation or arbitration product quality assurance loss contract pertinent to a

contingencies shall be recognized as the provisions when the following conditions are satisfied simultaneously: * That obligation is

a current obligation of the enterprise; * It is likely to cause any economic benefit to flow out of the enterprise as a result of

performance of the obligation; and* The amount of the obligation can be measured in a reliable way.

2. The Company shall conduct the initial measurement to provisions according to the best estimate number needed for performing the

related current obligation and recheck the carrying value of accrued liabilities on balance sheet date.

37. Share-based Payment

Not applicable.

38. Other Financial Instruments such as Preference Shares and Perpetual Bonds

Not applicable.

83ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023

39. Revenue

The Accounting Policy Adopted for Recognition and Measurement of Revenue

1. Recognition of revenue

The Company gains revenue mainly from property sales property management sales of software and property leasing (refer to 42.Leasing for more detail).The Company recognizes revenue when it has fulfilled the obligation of contract performance namely when it has acquired the

control of the related commodity. The acquisition of control over a commodity refers to the capacity to control the use of the

commodity and to gain almost all economic interests thereof.

2. The Company judges whether a contract performance obligation is “a contract performance obligation fulfilled in a timeperiod” or “a contract performance obligation fulfilled at a time point” according to the terms in revenue standards and

recognizes revenue according to the following principles.

(1) When the Company meets one of the following conditions the obligation should be classified as a contract performance

obligation fulfilled in a specific time period:

1) The customer gains and consumes the economic interests brought by the Company’s contract performance when the Company

performs the contract.

2) The customer is able to control the assets in progress during the Company’s contract performance.

3) The assets produced during the Company’s contract performance have irreplaceable use and the Company has the right to collect

payment in respect of its completed contract performance accumulated as of now throughout the entire contract period.For a contract performance obligation fulfilled in a time period the Company recognizes revenue according to the progress towards

contract completion in that period but excluding the case when such progress cannot be reasonably determined. The Company uses

the output or input method to determine the right progress towards contract completion by considering the nature of the commodity.

4) For one that is classified as a contract performance obligation fulfilled at a time point instead of in a time period the Company

recognizes revenue when the customer acquires the control over the related commodity.In judging whether the customer has acquired the control over a commodity the Company considers the following signs:

1) The Company is entitled to the current right of payment collection in respect of the commodity. In other words the customer has

the current obligation to pay for the commodity.

2) The Company has transferred the legal ownership of the commodity to the customer. In other words the customer has owned the

legal ownership of the commodity.

3) The Company has transferred the physical commodity to the customer. In other words the customer has taken physical possession

of the commodity.

4) The Company has transferred the major risks and remunerations in respect of the ownership of the commodity. In other words the

customer has acquired the major risks and remunerations in respect of the ownership of the commodity.

5) The customer has accepted the commodity.

6) Other signs indicating that the customer has acquired control over the commodity.

Specific policies of the Company for recognizing revenue:

1) Real Estate Sales Contracts

The realization of sales revenue shall be recognized under the following conditions: the developed products have been completed and

accepted the sales contract has been signed and the obligations stipulated in the contract have been fulfilled the main risks and

rewards of ownership of the developed products have been transferred to the buyer at the same time the Company shall no longer

retain the continuous management rights normally associated with ownership and effectively control the sold developed products the

revenue amount can be measured reliably the related economic benefits are likely to flow in and the related costs that have occurred

or will occur can be measured reliably. For the sale of self-occupied housing the realization of sales income shall be recognized

under the following conditions: the main risks and rewards of ownership of self-occupied houses are transferred to the buyer the

Company will no longer retain the continuous management rights normally associated with ownership and effectively control the

84ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023

sold development products the amount of income can be measured reliably relevant economic benefits are likely to flow in the

relevant costs that have occurred or will occur can be measured reliably. Only recognizing the sales income realization under the

following conditions: acquired the real estate completed and accepted as qualified (the completion and acceptance reports) signed an

irreversible sales contract obtained the buyer's payment certificate (for those who chose bank mortgage the first installment and the

full amount of bank mortgage must be required; All housing payment should be paid in case of refusal to adopt automatic payment

for bank mortgage loan). The earlier one of house delivery time designated in the House Delivery Notice delivered (the delivery will

be deemed completed if the owners fail to conduct pertinent procedures for their personal reasons within a designated period) and

time when the owners complete the procedures of delivery in effect should be determined as the time when the revenue is recognised.

2) Providing Labor Services

If the provision of labor services can be reliably estimated (all the following conditions are met: * The amount of income can be

measured reliably; * The relevant economic benefits are likely to inflow to the Company; * The progress of the transaction can be

reliably determined; * The cost incurred and to be incurred in the transaction can be measured reliably) it shall recognize the

revenue from providing services employing the percentage-of-completion method and confirm the completion of labor service

according to the costs incurred as a percentage of the total estimated costs. If the Company can’t on the date of the balance sheet

reliably estimate the outcome of a transaction concerning the labor services it provides it shall be handled under the following

conditions: If the cost of labor services incurred is expected to be compensated the revenue from the providing of labor services shall

be recognized in accordance with the amount of the cost of labor services incurred and the cost of labor services shall be carried

forward at the same amount; If the cost of labor services incurred is not expected to compensate the cost incurred should be included

in the current profits and losses and no revenue from the providing of labor services may be recognized.Property management revenue shall be recognized when property management services have been provided economic benefits

related to property management services can flow into the enterprise and costs related to property management can be reliably

measured.

3) Transferring the Right to Use Assets

The revenue of transferring the right to use assets may not be recognized unless the following conditions are both met: the relevant

economic benefits are likely to inflow to the Company; and the revenue can be reliably measured. The interest income shall be

recognized according to the time and actual interest rate in which other people use the Company’s monetary funds. Royalty revenue

shall be recognized according to the chargeable time and method stipulated in related contracts and agreements.According to the lease date and lease amount agreed in the lease contract and agreement the realization of rental property income

shall be recognized when relevant economic benefits are likely to flow in.

4) Software sales revenue

* Revenue recognition and measurement methods for sales of custom software and independent software products

Custom software refers to the special software designed and developed after the full on-site investigation of the user's business

according to the software development contract signed with the customer based on the actual needs of the user and the resulting

developed software is not universal. Revenue is recognized over time based on the progress of completed performance obligations

over the contract period only if the goods produced by the Company in the course of performance have an irreplaceable use and the

Company is entitled to receive payment for the cumulative portion of performance completed to date throughout the contract period

with the progress of completed performance obligations determined by the proportion of the contract costs actually incurred to

complete the performance obligations to the total estimated contract costs. Otherwise the revenue is recognized at a certain point in

time.For sales contracts of independent software products signed with the customer the customer directly purchases the standard version

of the software i.e. the real estate and facilities management platform and the corresponding modules are deployed by

implementation personnel according to the customer's requirements. In this case the performance obligations are to be performed at

a certain point in time. The revenue is recognized after the Company delivers the product to the customer and the customer accepts

the product.

85ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023

* Revenue recognition and measurement methods for systems integration contracts

System integration includes the sale and installation of purchased merchandise and software products. The revenue is recognized

when the Company has transferred the primary risks and rewards of the ownership of the purchased merchandise to the purchaser;

the Company neither retained the continued management rights usually associated with the ownership nor effectively controlled the

sold goods; the installation and commissioning of the system have been completed and the system has been put into trial operation

or the initial inspection report of the purchaser is obtained; the economic benefits relevant to the transaction are likely to flow into the

Company the relevant costs can be reliably measured.* Revenue recognition and measurement methods for technical service revenue

Technical service revenue mainly refers to the business of providing consulting implementation and after-sales services of products

to customers as required by contracts. If a service period is agreed upon in a contract it is considered as a performance obligation to

be performed within a certain period of time and revenue is recognized for services settled with the customer in accordance with the

contracted service period during the service provision period.

5) Other Business Income

According to the stipulations of relevant contracts and agreements when the economic benefits related to the transaction can flow

into the enterprise and the costs related to the income can be reliably measured the realization of other business income shall be

confirmed.

3. Measurement of Revenue

The Company should measure revenue according to the transaction prices apportioned to each of the individual contract performance

obligations. In determining a transaction price the Company considers the impact of a number of factors including variable

consideration significant financing components in contracts non-cash consideration and consideration payable to customers.

(1) Variable consideration

The Company determines the best estimate of variable consideration according to the expected value or the amount most likely to

occur. But a transaction price containing variable consideration should not exceed the amount from the accumulated recognized

revenue that will probably not have any significant reversal when related uncertainties are eliminated. When assessing whether the

significant reversal of accumulated recognized revenue is almost impossible or not a company should concurrently consider the

possibility and weight of the revenue reversal.

(2) Significant financing component

When a contract contains any financing component the Company should determine the transaction price according to the amount

payable that is assumed to be paid in cash by the customer when it acquires control over the commodity. The difference between the

transaction price and the contract consideration should be amortized in the effective interest method during the contract period.

(3) Non-cash consideration

When a customer pays non-cash consideration the Company should determine the transaction price according to the fair value of the

non-cash consideration. When such fair value cannot be reasonably estimated the Company will indirectly determine the transaction

price by reference to the individual price committed by the Company for transferring the commodity to the customer.

(4) Consideration payable to a customer

For consideration payable to a customer the Company should deduct the transaction price from the consideration payable and

deduct the revenue for the current period at either the recognition of related revenue or the payment (or committed payment) of the

consideration to the customer whichever is earlier but excluding the case in which the consideration payable to the customer is for

the purpose of acquiring from the customer other commodities that can be obviously distinguished.If the Company’s consideration payable to a customer is for the purpose of acquiring from the customer other commodities that can

be obviously distinguished the Company should confirm the commodity purchased in the same way as in its other purchases. When

the Company’s consideration payable to a customer exceeds the fair value of the commodity that can be obviously distinguished the

exceeded amount should be used to deduct the transaction price. If the fair value of the commodity acquired from the customer that

can be obviously distinguished cannot be reasonably estimated the Company should deduct the transaction price from the

86ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023

consideration payable to the customer.Differences in accounting policies for the recognition of revenue caused by different business models for the same type of business

Not applicable.

40. Government Grants

1. If the government subsidies meet with the following conditions at the same it should be recognized: (1) The entity will

comply with the condition attaching to them; (2) The grants will be received from government. If a government subsidy is a

monetary asset it shall be measured according to the amount received or receivable. If a government subsidy is a non-monetary asset

it shall be measured at its fair value and shall be measured at a nominal amount when the fair value cannot be obtained reliably.

2. Judgment basis and accounting methods of government subsidies related to assets

The government subsidies that are acquired for construction or form long-term assets in other ways according to government

documents shall be defined as asset-related government subsidies. For those not specified in government documents the judgment

shall be made based on the compulsory fundamental conditions for acquiring the subsidies. If the subsidies are acquired with

construction or the formation of long-term assets in other ways as fundamental conditions they shall be recognized as asset-related

government subsidies. For asset-related government subsidies the carrying value of related assets shall be written down or

recognized as deferred income. If asset-related government subsidies are recognized as deferred income it shall be recorded into

profits or losses by period in a reasonable and systemic manner within the life of related assets. Government subsidies measured at

the nominal amount shall be directly recorded into current profits or losses. If related assets are sold transferred disposed of or

destroyed before the end of their life the undistributed balance of related deferred income shall be transferred into the profits or

losses for the period of the asset disposal.

3. Judgment basis and accounting treatment of profits-related government subsidies

Government subsidies other than asset-related government subsidies shall be defined as profits-related government subsidies. For

government subsidies consisting of both asset-related parts and profits-related parts which are difficult to judge whether they are

related to assets or profits the entirety shall be classified as profits-related government subsidies. Profits-related government

subsidies that are used to compensate the related future expenses or losses shall be recognized as deferred income and shall be

included into the current profit/losses during the period when the relevant expenses or losses are recognized; those subsidies used to

compensate the related expenses or losses incurred shall be directly included into the current profits/losses.

4. Government subsidies related to the Company’s routine operating activities shall be included into other income or write down

related costs according to the economic business nature. Government subsidies not related to the Company’s routine activities shall

be included into non-operating income and expenditure.

41. Deferred Income Tax Assets/Deferred Income Tax Liabilities

1. In accordance with the balance (the item not recognized as assets and liabilities can confirm their tax bases according to the tax law

the balance between the tax bases and its carrying amount) between the carrying amount of assets or liabilities and their tax bases

deferred tax assets and deferred tax liabilities should be recognized at the tax rates that are expected to apply to the period when the

asset is realized or the liability is settled.

2. A deferred tax asset shall be recognized within the limit of taxable income that is likely to be obtained to offset the deductible

temporary differences. At the balance sheet date where there is strong evidence showing that sufficient taxable profit will be

available against which the deductible temporary difference can be utilized the deferred tax asset unrecognized in prior period shall

be recognized.

3. The Company assesses the carrying amount of deferred tax asset at the balance sheet date. If it’s probable that sufficient taxable

profit will not be available against which the deductible temporary difference can be utilized the Company shall write down the

carrying amount of deferred tax asset or reverse the amount written down later when it’s probable that sufficient taxable profit will

be available.

87ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023

4. The current income tax and deferred income tax of the Company are recorded into the current gains and losses as income tax

expenses or revenue except in the following circumstances: (1) Business combination; (2) The transaction or event directly included

in owner’ equity.

42. Lease

(1) Accounting Treatment of Operating Lease

1. Lessee

The Group shall when as the lessee on the commencement date of the lease term recognize the right-of-use assets and lease

obligations for the lease unless it is a simplified short-term lease or low-value asset lease.After the commencement date of the lease term the Group uses the cost model for subsequent measurement of right-of-use assets.The Group depreciates the right-of-use assets in accordance with relevant depreciation provisions of the Accounting Standards for

Business Enterprises No. 4 - Fixed Assets. If the lessee can reasonably ascertain that the ownership of the leasehold property will be

obtained at the end of the lease term it shall depreciate the leasehold property over its remaining service life. If it is not reasonably

certain that the ownership of the leasehold property will be obtained at the end of the lease term it shall depreciate the leased asset(s)

over the lease term or the remaining service life whichever is shorter. The Group will determine the impairment of the right-of-use

assets and conduct accounting treatment of the impairment losses already identified in accordance with relevant provisions of the

Accounting Standards for Business Enterprises No. 8 - Asset Impairment.The Group calculates the interest expenses of the lease obligations during each period of the lease term at a fixed periodic interest

rate and includes them in profit or loss for the current period. Where the Accounting Standards for Business Enterprises No. 17 -

Borrowing Costs and other standards provide that such interest expenses shall be included in the cost of related assets such

provisions shall be observed.The Group does not recognize the right-of-use assets and lease liabilities for short-term leases and low-value asset leases. In each

period within the lease term the relevant lease payments for short-term leases and low-value asset leases are included in cost of the

related assets or profit or loss for the current period on a straight-line basis.

2. Lessor

In the case of the Group is the lessor it recognizes the receipts of the operating lease incurred during each period of the lease term as

rentals by the straight-line method. The Group capitalizes the initial direct costs related to the operating lease upon incurrence thereof

and within the lease term apportions and includes such costs in the current profit or loss on the basis same as the recognition of

rentals.For the fixed assets in the assets under operating lease the Group shall adopt the depreciation policy of similar assets to calculate and

distill depreciation. For other assets under operating lease the Group shall amortize them in a systematic and reasonable manner in

accordance with the accounting standards for enterprises applicable to the assets. The Group will determine the impairment of assets

under operating lease and conduct accounting treatment in accordance with relevant provisions of the Accounting Standards for

Business Enterprises No. 8 - Asset Impairment.

(2) Accounting Treatments of Financial Lease

The Group shall when as the lessor on the commencement date of the lease term recognize the finance lease receivables for the

finance lease and derecognize the leased asset(s) of the finance lease. The Group shall also calculate and confirm the interest income

at a fixed periodic interest rate in each period in the lease term.

88ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023

43. Other Important Accounting Policies and Accounting Estimations

1. Confirmation standard and accounting handling method for operation termination

Components which meet one of the following conditions have been disposed or divided as held for sale category and can be

distinguished separately are confirmed as operation termination.

1) The component represents one important independent main business or one single main operation area.

2) The component is one part of a related plan which plans to dispose one independent main business or one single main operation

area.

3) The component is a subsidiary which is obtained for resale specially.

44. Changes in Main Accounting Policies and Estimates

(1) Change of Accounting Policies

□Applicable□ Not applicable

(2) Changes in Accounting Estimates

□Applicable□ Not applicable

(3) Adjustments to Financial Statement Items at the Beginning of the Year of the First Implementation of the New

Accounting Standards Implemented since 2023

□Applicable□ Not applicable

45. Other

In the Note of the financial statements the data of the period-beginning refers to the financial statement data on 1 January 2023;

the data of the period-end refers to the financial statement data on 30 June 2023; the Reporting Period refers to the H1 2023; the

same period of last year refers to the H1 2022. The same to the Company as the parent.VI Taxes

1. Main Taxes and Tax Rates

Category of taxes Tax basis Tax rate

VAT Sales of goods or provision of taxableservices Note 1

Urban maintenance and construction tax Turnover tax payable Applied to 7% 5% 1% separately

according to the regional level

Enterprise income tax Taxable income 25% 20% 15% 16.5%

Added value generated from paid transfer

VAT of land of the use right of state-owned lands andproperty right of above-ground buildings 30%-60%

and other attachments

Levied according to price: paid according

Real estate tax to 1.2% of the residual value of the real 1.2% 12%

estate’s original value after deducted

89ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023

30% at once; levied according to lease:

paid according to 12% of the rental

income

Education surcharge Turnover tax payable 3%

Local education surcharge Turnover tax payable 2%

Notes of the disclosure situation of the taxpaying bodies with different enterprises income tax rate

Name Income tax rate

Chongqing Shenzhen International Trade Center Property

15%

Management Co. Ltd.Shenzhen International Trade Center Property Management

15%

Co. Ltd. Chongqing Branch

Shenzhen Facility Management Community Co. Ltd 15%

Shenzhen Guomao Catering Co. Ltd. 20%

Shenzhen Property Engineering and Construction Supervision

Co. Ltd. 20%

Shenzhen Julian Human Resources Development Co. Ltd. 20%

Shenzhen Huazhengpeng Property Management Development

Co. Ltd. 20%

Shenzhen Jinhailian Property Management Co.Ltd. 20%

Shenzhen Zhongtongda House Xiushan Service Co.Ltd. 20%

Shenzhen Kangping Industry Co.Ltd. 20%

Shenzhen Teacher Family Training Co. Ltd. 20%

Shenzhen Education Industry Co. Ltd. 20%

Shenzhen Yufa Industry Co. Ltd. 20%

Chongqing Aobo Elevator Co. Ltd. 20%

Shenzhen SZPRD Yanzihu Development Co. Ltd. 20%

Shenzhen SZPRD Fuyuantai Development Co. Ltd. 20%

Shenzhen Social Welfare General Company 20%

Shenzhen Fuyuanmin Property Management Co. Ltd. 20%

Shenzhen Meilong Industrial Development Co. Ltd. 20%

Shenzhen Sports Service Co. Ltd. 20%

Shenzhen Penghongyuan Industrial Development Co. Ltd. 20%

Shenzhen Tianque Elevator Technology Co. Ltd. 20%

Shenzhen Guoguan Electromechanical Device Co. Ltd. 20%

Shenzhen Shenshan Special Cooperation Zone Guomao

Property Development Co. Ltd. 20%

Shenzhen Helinhua Construction Management Co. Ltd. 20%

Shenzhen Guomao Tongle Property Management Co. Ltd. 20%

Shenzhen International Trade Industry Space Service Co. Ltd. 20%

Shenzhen Foreign Trade Property Management Co. Ltd. 20%

Shenzhen Fubao Urban Resources Management Co. Ltd. 20%

Shenzhen Shenwu Elevator Co. Ltd. 20%

90ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023

Shenzhen Shenfang Property Cleaning Co. Ltd. 20%

Shandong International Trade Center Hotel Management Co.Ltd. 20%

Beijing Facility Home Technology Co. Ltd. 20%

Subsidiaries registered in Hong Kong area 16.50%

Subsidiaries registered in Vietnam area 20%

Other taxpaying bodies within the consolidated scope 25%

2. Tax Preference

According to the regulations of No. 2 Property Service of No. 37 Commercial Service among the encouraging category of the

Guidance Catalogue of Industry Structure Adjustment (Y2011) the western industry met with the conditions should be collected

the corporate income tax according to 15% of the tax rate. The subsidiaries of the Group Chongqing Shenzhen International Trade

Center Property Management Co. Ltd. and Shenzhen International Trade Center Property Management Co. Ltd. Chongqing

Branch applied to above policy.On 19 December 2022 Shenzhen Facility Management Community Technology Co. Ltd. successfully passed the re-evaluation

for its High-tech Enterprise Certificate. The company has been assigned certificate number GR202244204675 and the certificate

is valid for three years. As per the tax laws and regulations the company will be eligible for a preferential enterprise income tax

rate of 15% for the year 2023.As per the "Announcement on Income Tax Preferential Policies for Small and Micro Enterprises and Individual Industrial and

Commercial Taxpayers" (Announcement No. 6 of 2023 of the Ministry of Finance and the State Taxation Administration) and the

"Announcement of the State Taxation Administration on Matters Related to Collection and Administration of Income Tax

Preferential Policies for Small Enterprises with Low Profits" (Announcement No. 6 of 2023 of the State Taxation Administration)

for small and micro-profit enterprises if their annual taxable income does not exceed RMB1 million from 1 January 2023 to 31

December 2024 the taxable income will be reduced by 12.5% and the enterprise income tax rate will be 20%. Furthermore as per

the "Announcement on Further Implementing the Preferential Income Tax Policy for Small and Micro Enterprises"

(Announcement No. 13 of 2022 of the Ministry of Finance and the State Taxation Administration) for small and micro-profit

enterprises if their annual taxable income exceeds RMB1 million but does not exceed RMB3 million from 1 January 2022 to 31

December 2024 the taxable income will be reduced by 25% and the enterprise income tax rate will be 20%. This policy applies to

30 subsidiaries including Shenzhen Guomao Catering Co. Ltd. (Guomao Catering) and Shenzhen Property Engineering and

Construction Supervision Co. Ltd.

3. Other

[Note 1]: Taxable items and tax rate of the VAT of the Company and its subsidiaries are as follows:

Type of the revenue General rate Percentage charges of

Sales of house property 9% 5%

Rent of real estate 9% 5%

91ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023

Property service 6% 3%

Catering service 6% 3%

Others 13% --

VII. Notes to Main Items of Consolidated Financial Statements

1. Monetary Assets

Unit: RMB

Item Ending balance Beginning balance

Cash on hand 42693.32 43833.00

Bank deposits 1385485202.97 1512202363.19

Other monetary funds 6676731.47 5282697.64

Total 1392204627.76 1517528893.83

Of which: total amount deposited

overseas 63964312.71 66436595.66

Total amount of restriction in use by

guaranteed pledged or frozen 15539145.06 7835036.35

Other notes:

Among other monetary assets the funds with limited use rights mainly include the margin and interest of RMB3332452.99; the

funds with limited use rights in bank deposits mainly include the bank frozen funds of RMB6476231.24 and the interest on time

deposits of RMB5270833.33 plus the balance of the bank margin account of RMB459627.50. The above amount is not regarded as

cash and cash equivalents due to restrictions on use.

2. Trading Financial Assets

Unit: RMB

Item Ending balance Beginning balance

Of which:

Other notes:

3. Derivative Financial Assets

Unit: RMB

Item Ending balance Beginning balance

Other notes:

4. Notes Receivable

(1) Notes Receivable Listed by Category

Unit: RMB

Item Ending balance Beginning balance

Total 0.00 0.00

Unit: RMB

Ending balance Beginning balance

Category Carrying amount Bad debt provision Carrying amount Bad debt provisionCarrying Carrying

Amount Proportion Amount Withdrawal value Withdrawal valueproportion Amount Proportion Amount proportion

Of which:

Please refer to the relevant information of disclosure of bad debt provision of other accounts receivable if adopting the general mode

of expected credit loss to withdraw bad debt provision of notes receivable.□Applicable□Not applicable

92ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023

(2) Bad Debt Provision Withdrawal Reversed or Recovered in the Current Period

Withdrawal of bad debt provision:

Unit: RMB

Changes in the current period

Category Beginningbalance Reversed or Ending balanceWithdrawal recovered Verification Others

Of which significant amount of recovered or transferred-back bad debt provision for the current period:

□Applicable□Not applicable

(3) Notes Receivable Pledged by the Company at the Period-end

Unit: RMB

Item Ending pledged amount

(4) Notes Receivable which Had Endorsed by the Company or had Discounted and had not Due on the

Balance Sheet Date at the Period-end

Unit: RMB

Item Amount of recognition termination at the Amount of not terminated recognition atperiod-end the period-end

(5) Notes Transferred to Accounts Receivable because Drawer of the Notes Failed to Execute the Contract

or Agreement

Unit: RMB

Item Amount of the notes transferred to accounts receivable at theperiod-end

Other notes:

(6) Notes Receivable with Actual Verification for the Current Period

Unit: RMB

Item Written-off amount

Of which verification of significant notes receivable:

Unit: RMB

Reason for Verification Whether occurredName of the entity Nature Written-off amount verification procedures because of related-performed party transactions

Notes of the verification of notes receivable

5. Accounts Receivable

(1) Listed by Category

Unit: RMB

Ending balance Beginning balance

Category Carrying amount Bad debt provision Carrying amount Bad debt provision

Carrying value

Amount Proportion Amount Withdrawal Amount Proportion Amount Withdrawal

Carrying value

proportion proportion

Accounts

receivable

withdrawal

of bad debt 131145425.55 23.32% 110207671.91 84.03% 20937753.64 111808371.14 20.01% 109689294.54 98.10% 2119076.60

provision

separately

accrued

Of which:

Accounts

receivable

withdrawal

of bad debt 431328190.78 76.68% 35340105.27 8.19% 395988085.51 447078385.18 79.99% 29263546.48 6.55% 417814838.70

provision

of by

group

Of which:

93ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023

Total 562473616.33 100.00% 145547777.18 25.88% 416925839.15 558886756.32 100.00% 138952841.02 24.86% 419933915.30

Bad debt provision separately accrued: 110207671.91

Unit: RMB

Ending balance

Name

Carrying amount Bad debt provision Withdrawalproportion Reason for withdraw

Shenzhen Jiyong Properties

& Resources Development 93811328.05 93811328.05 100.00% Involved in lawsuit and

Company unrecoverable

Shenzhen Tewei Industry

Co. Ltd. 2836561.00 2836561.00 100.00%

Expected to be

unrecoverable

Lunan Industry Corporation 2818284.84 2818284.84 100.00% Expected to beunrecoverable

Shenzhen Hampoo Science Expected to be

& Technology Co. Ltd. 1436020.29 1433070.29 99.79% unrecoverable

Those with insignificant

single amount for which bad

debt provision separately 30243231.37 9308427.73 30.78%

Uncollectible for a long

period

accrued

Total 131145425.55 110207671.91

Withdrawal of bad debt provision by group: 35340105.27

Unit: RMB

Ending balance

Name

Carrying amount Bad debt provision Withdrawal proportion

Portfolio of credit risk features 253508004.18 25162778.29 9.93%

Portfolio of transactions with

other related parties 177820186.60 10177326.98 5.72%

Total 431328190.78 35340105.27

Notes to the determination basis for the group:

Please refer to the relevant information of disclosure of bad debt provision of other accounts receivable if adopting the general mode

of expected credit loss to withdraw bad debt provision of accounts receivable.□Applicable□Not applicable

Disclosure by aging

Unit: RMB

Aging Ending balance

Within one year (including 1 year) 312921794.00

One to two years 88024382.29

Two to three years 15229615.66

More than three years 146297824.38

Three to four years 5415310.89

Four to five years 2471780.12

Over 5 years 138410733.37

Total 562473616.33

(2) Bad Debt Provision Withdrawal Reversed or Recovered in the Current Period

Withdrawal of bad debt provision:

Unit: RMB

Category Beginningbalance Changes in the current period Ending balance

94ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023

Withdrawal Reversed orrecovered Verification Others

Bad debt

provision 109689294.54 518377.37 110207671.91

accrued by item

Withdrawal of

bad debt

provision by 29263546.48 6076558.79 35340105.27

group

Total 138952841.02 6594936.16 145547777.18

Of which significant amount of recovered or transferred-back bad debt provision for the current period:

Unit: RMB

Name of the entity Amount reversed or recovered Way of recovery

(3) Accounts Receivable Written-off in Current Period

Unit: RMB

Item Written-off amount

Of which the verification of significant accounts receivable:

Unit: RMB

Verification Whether occurred

Name of the entity Nature Written-off amount Reason forverification procedures because of related-performed party transactions

Notes to verification of accounts receivable:

(4) Top 5 of the Ending Balance of the Accounts Receivable Collected according to Arrears Party

Unit: RMB

Proportion to total

Name of the entity Ending balance ending balance of Ending balance of bad

accounts receivable debt provision

Shenzhen Bay Technology Development Co. Ltd. 107824285.09 19.17% 6743517.22

Shenzhen Jiyong Properties & Resources Development

93811328.0516.68%93811328.05

Company

Hebei Shenbao Investment Development Co. Ltd. 29580856.88 5.26% 887425.71

ShenZhen Special Economic Zone Real Estate &

Properties (Group) Co. Ltd. 10072563.13 1.79% 1252620.81

Shenzhen Shenfubao (Group) Co. Ltd. 4153519.42 0.74% 159605.58

Total 245442552.57 43.64%

(5) Accounts Receivable Derecognized due to the Transfer of Financial Assets

(6) The Amount of the Assets and Liabilities Formed due to the Transfer and the Continued Involvement of

Accounts Receivable

6. Accounts Receivable Financing

Unit: RMB

Item Ending balance Beginning balance

The changes of accounts receivable financing in the Current Period and the changes in fair value

□Applicable□Not applicable

Please refer to the relevant information of disclosure of bad debt provision of other accounts receivable if adopting the general mode

of expected credit loss to withdraw bad debt provision of accounts receivable financing.

95ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023

□Applicable□Not applicable

Other notes:

7. Prepayment

(1) Prepayment Listed by Aging Analysis

Unit: RMB

Ending balance Beginning balance

Aging

Amount Proportion Amount Proportion

Within 1 year 7015536.66 68.73% 98477532.46 98.14%

One to two years 1807120.94 17.70% 1652279.14 1.65%

Two to three years 1173932.28 11.50% 1438.19 0.00%

More than three years 211234.43 2.07% 210556.77 0.21%

Total 10207824.31 100341806.56

Notes of the reasons of the prepayment aging over 1 year with significant amount but failed settled in time:

(2) Top 5 Prepayment in Ending Balance Collected according to the Prepayment Target

Name of the entity (fill in the full name) Carrying amount As % of the total ending balanceof the prepayments (%)

Beijing Jingdong Century Information Technology

Co. Ltd. 1260657.76 12.35%

China State Construction & Engineering 4th Bureau

5th Corp Limited 614940.37 6.02%

Huaxia International Communications Engineering

Supervision Co. Ltd. 510389.00 5.00%

Jinan Electric Power Company of State Grid

Shandong Electric Power Company 435734.43 4.27%

Foshan Diousdragon Furniture Co. Ltd. 289230.00 2.83%

Total 3110951.56 30.48%

Other notes:

8. Other Receivables

Unit: RMB

Item Ending balance Beginning balance

Interests receivable 0.00 0.00

Dividends receivable 0.00 0.00

Other receivables 624876343.49 639903523.33

Total 624876343.49 639903523.33

(1) Interest Receivable

1) Category of Interest Receivable

Unit: RMB

Item Ending balance Beginning balance

Total 0.00 0.00

96ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023

2) Significant Overdue Interest

Unit: RMB

Whether occurred

Entity Ending balance Overdue time Overdue reason impairment and its

judgment basis

Other notes:

3) Withdrawal of Bad Debt Provision

□Applicable□Not applicable

(2) Dividend Receivable

1) Category of Dividend Receivable

Unit: RMB

Project (or investee) Ending balance Beginning balance

Total 0.00 0.00

2) Significant Dividends Receivable Aging over 1 Year

Unit: RMB

Whether occurred

Project (or investee) Ending balance Aging Reason impairment and its

judgment basis

3) Withdrawal of Bad Debt Provision

□Applicable□Not applicable

Other notes:

(3) Other Receivables

1) Category of Other Receivables by Account Nature

Unit: RMB

Nature Ending carrying amount Beginning carrying amount

Security deposit 10178809.17 14333480.59

Margin 34107085.10 33052554.40

Reserve fund 669713.78 315131.82

Payment on behalf 4524986.31 7861406.33

External intercourse funds 647238111.03 645712452.33

Others 22522486.45 26868828.99

Total 719241191.84 728143854.46

2) Withdrawal of Bad Debt Provision

Unit: RMB

First stage Second stage Third stage

Expected loss in the

Bad debt provision Expected credit loss in duration (credit Expected loss in the Total

the next 12 months impairment not duration (credit

occurred) impairment occurred)

Balance as at 1 January

58445816.2029794514.9388240331.13

2023

Balance as at 1 January

2023 in the current

period

Amount accrued for the

6103555.4320961.796124517.22

current period

Balance as at 30 June 64549371.63 29815476.72 94364848.35

97ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023

2023

Changes of carrying amount with significant amount changed of loss provision in the current period

□Applicable□ Not applicable

Disclosure by aging

Unit: RMB

Aging Ending balance Carrying amount

Within one year (including 1 year) 37662808.00 45898989.35

One to two years 49059147.91 582305977.29

Two to three years 547938076.57 32848373.42

More than three years 84581159.36 67090514.40

Three to four years 32976097.34 1460635.19

Four to five years 1176811.01 1563169.64

Over 5 years 50428251.01 64066709.57

Total 719241191.84 728143854.46

3) Bad Debt Provision Withdrawn Reversed or Recovered in the Current Period

Withdrawal of bad debt provision:

Unit: RMB

Changes in the current period

Category Beginningbalance Ending balance

Withdrawal Reversed orrecovered Verification Others

Bad debt provision

accrued by item 29794514.93 20961.79 29815476.72

Withdrawal of bad

debt provision by 58445816.20 6103555.43 64549371.63

group

Total 88240331.13 6124517.22 94364848.35

Of which the bad debt provision recovered or transferred-back with significant amount during the current period:

Unit: RMB

Name of the entity Amount reversed or recovered Way of recovery

4) Particulars of the Actual Verification of Other Receivables during the Current Period

Unit: RMB

Item Written-off amount

Of which the verification of significant other receivables:

Unit: RMB

Verification Whether occurred

Name of the entity Nature Written-off amount Reason forverification procedures because of related-performed party transactions

Notes to the verification of other receivables:

5) Top 5 of the Ending Balance of Other Receivables Collected according to the Arrears Party

Unit: RMB

Proportion to total

Name of the entity Nature Ending balance Aging ending balance of Ending balance of

other receivables % bad debt provision

Shenzhen Xinhai

Within 1 year one

Holding Co. Ltd. Intercourse funds 576568974.73 80.16% 17297069.25

to five years

and the related

98ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023

party Shenzhen

Xinhai Rongyao

Real Estate

Development Co.Ltd.Shenzhen Bangling

Security deposit

Stock Cooperative 30000000.00 Three to four years 4.17% 15000000.00

and margin

Company

Shenzhen Bay

Technology Performance risk

16342327.84 Within 1 year 2.27% 490269.84

Development Co. fund margin

Ltd.Shenzhen Qianhai

Advanced Within 1 year one

Intercourse funds 10720575.27 1.49% 321617.26

Information to two years

Service Co. Ltd.Shenzhen Tianjun

Intercourse funds 10000000.00 Two to three years 1.39% 0.00

Industrial Co. Ltd.Total 643631877.84 89.48% 33108956.35

6) Accounts Receivable Involving Government Subsidies

Unit: RMB

Name of the entity Project of government Ending balance Ending aging Estimated recoveringsubsidies time amount and basis

7) Derecognition of Other Receivables due to the Transfer of Financial Assets

8) The Amount of the Assets and Liabilities Formed due to the Transfer and the Continued Involvement of

Other Receivables

Other notes:

9. Inventories

Whether the Company needs to comply with the disclosure requirements for the real estate industry

Yes

(1) Category of Inventory

The Company shall comply with the disclosure requirements for the real estate industry in the Self-regulatory Guidelines No. 3 for

Companies Listed on Shenzhen Stock Exchange - Industry Information Disclosure.Classification by nature:

Unit: RMB

Ending balance Beginning balance

Depreciation Depreciation

reserves of reserves of

Item inventories or inventories or

Carrying amount impairmentprovision for Carrying value Carrying amount

impairment

provision for Carrying value

contract contract

performance performance

costs costs

R&D

expenses 10608749592.61 6648404.13 10602101188.48 10778950699.23 6648404.13 10772302295.10

Developing

properties 242794704.84 242794704.84 199674693.59 199674693.59

Contract

performance 1975995.10 1975995.10 1965933.85 1965933.85

99ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023

costs

Raw

materials 1509262.79 818559.41 690703.38 1891354.81 1040612.30 850742.51

Inventory

goods 2557484.48 2094300.39 463184.09 2536973.19 2094300.39 442672.80

Low-value

consumables 271124.75 271124.75 97885.52 97885.52

Total 10857858164.57 9561263.93 10848296900.64 10985117540.19 9783316.82 10975334223.37

Disclose main items of “R&D expenses” and interest capitalization in the following format:

Unit: RMB

Transferred Other Increase

Estimate to decreas Accumulate

Of which:

Project Time for d date of Estimated total Beginning developing ed

(R&D d amount of amount of

commencem expenses)

Capital

name completi investment balance properties amount for the Ending balance interest

capitalized

interests for resourcent on for the for the capitalizatio escurrent current current n the current

period period period period

Lanhu Era 7 January 8400000000. 4686202152. 166311560. 4852513713. 298611761. 60308251. Bank

Septemb

project 2021 00 53 57 10 36 38 loans

er 2026

SZPRD-

Fuchang

Garden 15 May 747287571.December 911330000.00 747287571.94 0.00 Others

Phase II 2023 94

2018

(Fuhui

Huayuan)

Humen Sea 22 March 30 April 3217590000. 2361567910. 129568909. 2491136820. 2782538.7 Bank

2782538.76

Bay project 2022 2024 00 93 22 15 6 loans

Guangming

Yutang 7 March 2658680000. 1792278782. 46065390.7 1838344173. Bank

October 583458.34 583458.34

Shangfu 2022 00 42 9 21 loans

2024

project

Yupinluans

han

(commercia

l and

residential 236433505.64 412752.52 236846258.16 Others

construction

project of

No. A117-

12 land)

Land of

Hongqi

6648404.13 6648404.13 Others

Town

Haikou

Shenhui

37256048.16 31716.38 37287764.54 Others

Garden

Fuyuantai

12754337.65 1468717.00 14223054.65 Others

project

Yangzhou

Shouxihu

Ecological 6 March 3774790000. 231250626. 1095216931.August 863966304.45 Others

Health 2023 00 85 30

2026

Valley

project

Others 34555681.38 1976791.99 36532473.37 Others

100ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023

1896239000010778950699747287571.577086465.10608749592301977758.63674248.

Total 0.00.00.239432.614648

Disclose main items of “Developing properties” in the following format:

Unit: RMB

Of which:

Accumulated amount of

Project name Time of Beginning Increase for the Decrease for thecompletion balance current period current period Ending balance

amount of capitalized

interest interests for

capitalization the current

period

SZPRD-

1 December

Langqiao 3447316.75 3447316.75 83077702.96

2012

International

SZPRD-Hupan

1 June 2015 56815090.28 90123.14 56724967.14

Yujing Phase I

SZPRD-

12 January

Banshan 3607397.06 64327.91 47625.68 3624099.29 10446911.43

2022

Yujing Phase II

SZPRD-

Songhu 1 July 2017 24200327.47 271385.28 23928942.19 27205315.95

Langyuan

SZPRD-Hupan 1 November

30517813.23135678.1630382135.0730539392.65

Yujing Phase II 2017

SZPRD-

2 December

Golden 72260564.44 4270881.01 8633730.49 67897714.96

2019

Collar’s Resort

International

1 December

Trade Center 4839083.10 4839083.10 26385636.29

1995

Plaza

Huangyuyuan

1 June 2001 790140.58 790140.58

AArea

Podium

Building of 1 November

645532.65645532.65

Fuchang 1999

Building

Other items 2551428.03 2551428.03

SZPRD-

Fuchang

Garden Phase 15 May 2023 747287571.94 699324226.86 47963345.08

II (Fuhui

Huayuan)

Total 199674693.59 751622780.86 708502769.61 242794704.84 177654959.28

Classification of “Developing properties with the collection of payments in installments” “Renting developing properties” and

“Temporary Housing”:

Unit: RMB

Project name Beginning balance Increase for the current Decrease for the currentperiod period Ending balance

(2) Falling Price Reserves of Inventory and Impairment Reserves for Contract Performance Costs

Disclosure of falling provision withdrawal of inventory in the following format:

Classification by nature:

Unit: RMB

Increased amount of the Decreased amount for the

current period current period

Item Beginning Endingbalance Transferred- balance Notes

Withdrawal Others back or Others

charged-off

101ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023

R&D

expenses 6648404.13 6648404.13

Raw

materials 1040612.30 222052.89 818559.41

Inventory

goods 2094300.39 2094300.39

Total 9783316.82 222052.89 9561263.93

Classification by nature:

Unit: RMB

Increased amount of the Decreased amount for the

current period current period

Project name Beginning Endingbalance Transferred- balance Notes

Withdrawal Others back or Others

charged-off

Land of

Qiongshan 6648404.13 6648404.13

Hainan

Total 6648404.13 6648404.13

(3) Notes to the Ending Balance of Inventories Including Capitalized Borrowing Expense

Project name Period-begin Current period Carry-over incurrent period Period-end

SZPRD-Golden

Collar’s Resort 341681.06 - 31076.48 310604.58

Lanhushidai

Project 238303509.98 60308251.38 - 298611761.36

SZPRD-

Langqiao 2971986.54 - - 2971986.54

International

SZPRD-Hupan

Yujing Phase I 1249515.42 - 7148.32 1242367.10

Humen Sea Bay

project - 2782538.76 - 2782538.76

Guangming

Yutang Shangfu - 583458.34 - 583458.34

project

Total 242866693.00 63674248.48 38224.80 306502716.68

(4) Inventory Restrictions

Disclosing restricted inventory by project:

Unit: RMB

Project name Beginning balance Ending balance Reason for restriction

10. Contract Assets

Unit: RMB

Ending balance Beginning balance

Item

Carrying amount Impairment Carrying Impairmentprovision Carrying value amount provision Carrying value

SZPRD-Fuchang

Garden Phase II 109392112.37 109392112.37

(Fuhui Huayuan)

Municipal

engineering 991952.00 991952.00 1094632.90 1094632.90

retention money

102ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023

Total 110384064.37 110384064.37 1094632.90 1094632.90

Amount of significant changes in carrying value of contract assets in the Current Period and reasons thereof:

Unit: RMB

Item Change in amount Reason(s)

If the impairment provision for contract assets in accordance with the general model of expected credit losses the information related

to the impairment provision shall be disclosed by reference to the disclosure method of other receivables:

□Applicable□Not applicable

Withdrawal of impairment provision for contract assets in the Current Period:

Unit: RMB

Withdrawal of the Amount transferred-Item current period back for the current

Write-off/verified for Reason

period the current period

Other notes:

11. Held-for-sale Assets

Unit: RMB

Item Ending carrying Impairment Ending carrying

Estimated

amount provision amount Fair value disposal

Estimated

expense disposal time

Other notes:

12. Current Portion of Non-current Assets

Unit: RMB

Item Ending balance Beginning balance

Significant investments in debt obligations/other investments in debt obligations

Unit: RMB

Ending balance Beginning balance

Item

Par value Coupon Actual Maturityrate interest rate date Par value

Coupon Actual Maturity

rate interest rate date

Other notes:

13. Other Current Assets

Unit: RMB

Item Ending balance Beginning balance

Prepaid VAT 12232463.61 16846758.27

Deducted input tax 58657816.56 28950002.85

Prepaid income tax 33200.38 1436395.15

Prepaid land VAT 0.00 16438505.72

Prepaid urban construction tax 37292.33 1156118.20

Prepaid education surcharge 26637.38 825798.74

Immediate rebate of receivable software

sales VAT 0.00 1687.34

Total 70987410.26 65655266.27

Other notes:

14. Investments in Debt Obligations

Unit: RMB

103ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023

Ending balance Beginning balance

Item Carrying Impairment Carrying Impairment

amount provision Carrying value amount provision Carrying value

Significant investments in debt obligations

Unit: RMB

Ending balance Beginning balance

Item

Par value Coupon Actual Maturity Coupon Actual Maturityrate interest rate date Par value rate interest rate date

Status of accrued depreciation reserves

Unit: RMB

First stage Second stage Third stage

Expected loss in the

Bad debt provision Expected credit loss in duration (credit Expected loss in the Total

the next 12 months impairment not duration (credit

occurred) impairment occurred)

Balance of 1 January

2023 in the current

period

Changes of carrying amount with significant amount changed of loss provision in the current period

□Applicable□Not applicable

Other notes:

15. Other Investments in Debt Obligations

Unit: RMB

Accumulated

Change in provision for

Beginning Accrued fair value Ending Accumulated lossesItem balance interest in the balance Cost changes in recognized in Notesreporting fair value other

period comprehensive

income

Significant other investments in debt obligations

Unit: RMB

Ending balance Beginning balance

Item

Par value Coupon Actual Maturity Coupon Actual Maturityrate interest rate date Par value rate interest rate date

Status of accrued depreciation reserves

Unit: RMB

First stage Second stage Third stage

Expected loss in the

Bad debt provision Expected credit loss in duration (credit Expected loss in the Total

the next 12 months impairment not duration (credit

occurred) impairment occurred)

Balance of 1 January

2023 in the current

period

Changes of carrying amount with significant amount changed of loss provision in the current period

□Applicable□Not applicable

Other notes:

16. Long-term Receivables

(1) List of Long-term Receivables

Unit: RMB

Item Ending balance Beginning balance Interval of

104ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023

Carrying amount Bad debt Carrying value Carrying Bad debt

discount rate

provision amount provision Carrying value

Financing

lease accounts 21920095.92 21920095.92 22651454.07 22651454.07 0.14

Of which:

unrealized

financing 11607188.38 11607188.38 13169492.65 13169492.65

income

Total 21920095.92 21920095.92 22651454.07 22651454.07

Impairment of bad debt provision

Unit: RMB

First stage Second stage Third stage

Expected loss in the

Bad debt provision Expected credit loss in duration (credit Expected loss in the Total

the next 12 months impairment not duration (credit

occurred) impairment occurred)

Balance of 1 January

2023 in the current

period

Changes of carrying amount with significant amount changed of loss provision in the current period

□Applicable□Not applicable

(2) Derecognition of Long-term Receivables due to the Transfer of Financial Assets

(3) The Amount of the Assets and Liabilities Formed due to the Transfer and the Continued Involvement of

Long-term Receivables

Other notes:

17. Long-term Equity Investment

Unit: RMB

Increase/decrease for the current period

Beginning Gains and Cash Ending Ending

balance Addition Reduced losses Adjustment Chang bonus or

Withdra

Investee balance balance of(carrying al

wal of

investm investm

recognize of other es of profits Othe (Carrying depreciatio

value) ent d under comprehens other announc

impairme rs Value) n reserve

ent the equity ive income equity ed to nt

method issue provision

I. Joint ventures

Shenzhen Real

Estate Jifa 44730585. 1722873. 46453459.Warehousing 29 98 27

Co. Ltd.Tian’an

International

Building

Property 7037952.3 7120847.682895.33

Management 1 4

Company of

Shenzhen

Subtotal 51768537. 1805769. 53574306.

603191

II. Associated enterprises

Shenzhen 18983614. 18983614. 18983614

Wufang 14 14 .14

Ceramics

105ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023

Industrial Co.Ltd.Shenzhen

Kangfu Health

Products Co. 165000.00 165000.00 165000.00

Ltd.Shenzhen

Xinghao

Imitation 756670.68 756670.68 756670.68

Porcelain Co.Ltd.Shenzhen

Social Welfare

Company Fuda 326693.24 326693.24 326693.24

Electronics

Factory

Shenzhen

Fulong

Industry 1684350.0 1684350.0 1684350.Development 0 0 00

Co. Ltd.Haonianhua 2733570.0 2733570.0 2733570.Hotel 5 5 05

Shenzhen

Education

Fund Longhua 500000.00 500000.00 500000.00

Investment

Shenzhen

Kangle Sports

Club Huangfa 540060.00 540060.00 540060.00

Branch

Dankeng

Village Plants

of Fumin in 1168973.2 1168973.2 1168973.Guanlan Town 0 0 20

Shenzhen City

Shenzhen Bull

Entertainment 500000.00 500000.00 500000.00

Co. Ltd.Shenzhen

Lianhua

Caitian 1475465.9 1475465.9 1475465.Property 1 1 91

Management

Co. Ltd.Shenzhen

Yangyuan 1030000.0 1030000.0 1030000.Industrial Co. 0 0 00

Ltd.Jiakaifeng Co.Ltd. Bao’an 600000.00 600000.00 600000.00

Company

Guiyuan

Garage 350000.00 350000.00 350000.00

Shenzhen

Wuweiben

Roof Greening 500000.00 500000.00 500000.00

Co. Ltd.ShenzhenYuan

ping Plastic 240000.00 240000.00 240000.00

Steel Doors

106ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023

Co. Ltd.ShenzhenYoufa

ng Printing 100000.00 100000.00 100000.00

Co. Ltd.Shenzhen

Lusheng

Industrial 100000.00 100000.00 100000.00

Development

Co. Ltd.CSCEC

Intelligent

Parking 28012899. 63120.0 28001398.51619.01

Technology 71 0 72

Co. Ltd.Subtotal 59767296. 63120.0 59755795. 3175439751619.01

93094.22

Total 111535834 1857388. 63120.0 113330102 31754397.53320.85.22

Other notes:

18. Other Equity Instrument Investment

Unit: RMB

Item Ending balance Beginning balance

Gintian Industry (Group) Co. Ltd. 635355.65 887838.64

Total 635355.65 887838.64

Non-trading equity instrument investment in the Current Period disclosed by items

Unit: RMB

Amount of Reason forassigning to Reason forother

Dividend comprehensive measure in fair

other

comprehensive

Project name income Accumulative Accumulative value of which

recognized gains losses

income

transferred to changes

income

included other transferred toretained comprehensive retainedearnings income earnings

Gintian Industry Not for business

(Group) Co. 2955000.66 transaction

Ltd. purposes

Other notes:

19. Other Non-current Financial Assets

Unit: RMB

Item Ending balance Beginning balance

Other notes:

20. Investment Property

(1) Investment Property Adopting the Cost Measurement Mode

□Applicable □Not applicable

Unit: RMB

Item Houses and buildings Land use right Construction inprogress Total

I. Original carrying

value

1. Beginning balance 861702509.37 14495902.20 37192716.83 913391128.40

107ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023

2. Increased amount for

the current period 20847883.84 0.00 0.00 20847883.84

(1) Outsourcing

(2)Transfer from

inventory/fixed

assets/construction in 20847883.84 0.00 0.00 20847883.84

progress

(3) Business

combination increase

3. Decreased amount

for the current period -393459.16 0.00 0.00 -393459.16

(1) Disposal

(2) Other transfer

(3) Exchange

adjustment -393459.16 0.00 0.00 -393459.16

4. Ending balance 882943852.37 14495902.20 37192716.83 934632471.40

II. Accumulative

depreciation and

accumulative

amortization

1. Beginning balance 472271039.79 13360585.89 21996763.54 507628389.22

2. Increased amount for

the current period 17963132.97 0.00 3002225.94 20965358.91

(1) Withdrawal or

amortization 17963132.97 0.00 3002225.94 20965358.91

3. Decreased amount

for the current period -373786.21 0.00 0.00 -373786.21

(1) Disposal

(2) Other transfer

(3) Exchange

adjustment -373786.21 0.00 0.00 -373786.21

4. Ending balance 490607958.97 13360585.89 24998989.48 528967534.34

III. Depreciation

reserves

1. Beginning balance

2. Increased amount for

the current period

(1) Withdrawal

3. Decreased amount

for the current period

(1) Disposal

(2) Other transfer

4. Ending balance

IV. Carrying value

1. Ending carrying

value 392335893.40 1135316.31 12193727.35 405664937.06

2. Beginning carrying

value 389431469.58 1135316.31 15195953.29 405762739.18

108ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023

(2) Investment Property Adopting the Fair Value Measurement Mode

□Applicable□Not applicable

The Company shall comply with the disclosure requirements for the real estate industry in the Self-regulatory Guidelines No. 3 for

Companies Listed on Shenzhen Stock Exchange - Industry Information Disclosure.Investment properties measured in fair value by project disclosure:

Unit: RMB

Lease Reason for

Project income Range of fair value

name Location

Time of Floor area

completion (m2) during this

Beginning Closing fair

fair value value fair value changesreporting changes and report

period index

Whether the Company has new investment properties in construction period measured in fair value

□Yes□No

Whether the Company has new investment properties measured in fair value

□Yes□No

(3) Investment Property Failed to Accomplish Certification of Property

Unit: RMB

Item Carrying value Reason

The house is used for property

management once occupied by the third

507 Unit Block No. 6 Maguling 23334.11 party a property management company

now has been recovered but hasn’t

handled the warrant yet.Obtained after the success in the last

Meilin land instance in 2017 relevant certifications of

property are in the procedure

Total 23334.11

Other notes:

Note: As at 30 June 2023 the original carrying value of Meilin land was RMB3885469.40 the accumulated accrued depreciation

was RMB3885469.40 and the carrying value was RMB0.

21. Fixed Assets

Unit: RMB

Item Ending balance Beginning balance

Fixed assets 72977952.16 82745172.12

Total 72977952.16 82745172.12

(1) List of Fixed Assets

Unit: RMB

Item Houses and Machinery Transportation Decoration ofbuildings equipment vehicle the fixed assets Other machinery Total

I. Original

carrying value:

1. Beginning

balance 129859285.29 6457738.92 19461561.97 37715645.88 57075135.08 250569367.14

2. Increased

amount for the 100458.85 405630.12 1921221.97 2427310.94

current period

(1) Purchase 100458.85 405630.12 1921221.97 2427310.94

(2) Transfer from

construction in

progress

(3) Business

combination

increase

109ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023

3. Decreased

amount for the 5482998.10 15950.00 304900.00 933964.58 6737812.68

current period

(1) Disposal or

scrap 15950.00 304900.00 933964.58 1254814.58

(2) Others 5482998.10 5482998.10

4. Ending

balance 124376287.19 6542247.77 19562292.09 37715645.88 58062392.47 246258865.40

II. Accumulative

depreciation

1. Beginning

balance 95882680.45 2648956.94 13790571.17 18649255.82 36777013.48 167748477.86

2. Increased

amount for the 1073376.55 368465.41 899185.22 3739759.14 3329303.47 9410089.79

current period

(1) Withdrawal 1073376.55 368465.41 899185.22 3739759.14 3329303.47 9410089.79

3. Decreased

amount for the 2751867.91 15950.00 265516.90 844319.60 3877654.41

current period

(1) Disposal or

scrap 15950.00 265516.90 844319.60 1125786.50

(2) Others 2751867.91 2751867.91

4. Ending

balance 94204189.09 3001472.35 14424239.49 22389014.96 39261997.35 173280913.24

III. Depreciation

reserves

1. Beginning

balance 75717.16 75717.16

2. Increased

amount for the

current period

(1) Withdrawal

3. Decreased

amount for the 75717.16 75717.16

current period

(1) Disposal or

scrap 75717.16 75717.16

4. Ending

balance

IV. Carrying

value

1. Ending

carrying value 30172098.10 3540775.42 5138052.60 15326630.92 18800395.12 72977952.16

2. Beginning

carrying value 33900887.68 3808781.98 5670990.80 19066390.06 20298121.60 82745172.12

(2) List of Temporarily Idle Fixed Assets

Unit: RMB

Item Original carrying Accumulated Impairmentvalue depreciation provision Carrying value Notes

110ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023

(3) Fixed Assets Leased out by Operation Lease

Unit: RMB

Item Ending carrying amount

(4) Fixed Assets Failed to Accomplish Certification of Property

Unit: RMB

Item Carrying value Reason

Room 406 2 units Hulunbuir Guangxia 2274041.26 Property rights disputes before now have won a lawsuit withDigital Building certification of the property being processed.The office building will be removed due to the project

Room 401 402 Sanxiang Business adjustment and a high-rise office building will be established

Building Office Building 614187.20 nearby the present address. The existing property shall bereplaced after the completion of the new office building. Thus

the certification of the property is failed to transact.Total 2888228.46

Other notes:

(5) Proceeds from Disposal of Fixed Assets

Unit: RMB

Item Ending balance Beginning balance

Other notes:

22. Construction in Progress

Unit: RMB

Item Ending balance Beginning balance

(1) List of Construction in Progress

Unit: RMB

Ending balance Beginning balance

Item Carrying Impairment Carrying Impairment

amount provision Carrying value amount provision Carrying value

(2) Changes in Significant Construction in Progress during the Current Period

Unit: RMB

Other Proportion of Of which: Capitalization

Increased decreased accumulated Accumulated amount of rate of

Project name Budget Beginning amount of the Transferred in Ending amount of capitalized Capitalbalance current period fixed assets

amount for balance investment in Job schedule interests forthe current constructions interest interests for resources

period to budget capitalization the current

the current

period period

(3) List of the Withdrawal of the Depreciation Reserves for Construction in Progress

Unit: RMB

Item Amount withdrawn Reason for withdrawal

Other notes:

(4) Engineering Materials

Unit: RMB

Ending balance Beginning balance

Item Carrying Impairment

amount provision Carrying value

Carrying Impairment

amount provision Carrying value

Other notes:

23. Productive Living Assets

(1) Productive Living Assets Adopting Cost Measurement Mode

□Applicable□Not applicable

111ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023

(2) Productive Living Assets Adopting Fair Value Measurement Mode

□Applicable□Not applicable

24. Oil and Gas Assets

□Applicable□Not applicable

25. Right-of-use Assets

Unit: RMB

Item Houses and buildings Total

I. Original carrying value

1. Beginning balance 96978273.81 96978273.81

2. Increased amount for the current period 10643690.71 10643690.71

(1) New Leases 10643690.71 10643690.71

3. Decreased amount for the current

period 17761164.68 17761164.68

(1) Expiration of lease contract 1297675.17 1297675.17

(2) Lease termination 10175574.13 10175574.13

(3) Others 6287915.38 6287915.38

4. Ending balance 89860799.84 89860799.84

II. Accumulative depreciation

1. Beginning balance 26809858.16 26809858.16

2. Increased amount for the current period 10342761.89 10342761.89

(1) Withdrawal 10342761.89 10342761.89

3. Decreased amount for the current

period 3068278.39 3068278.39

(1) Disposal

Lease termination 3068278.39 3068278.39

4. Ending balance 34084341.66 34084341.66

III. Depreciation reserves

1. Beginning balance

2. Increased amount for the current period

(1) Withdrawal

3. Decreased amount for the current

period

(1) Disposal

4. Ending balance

IV. Carrying value

1. Ending carrying value 55776458.18 55776458.18

2. Beginning carrying value 70168415.65 70168415.65

Other notes:

26. Intangible Assets

(1) List of Intangible Assets

Unit: RMB

Item Land use right Patent right Non-patenttechnologies Software use rights Total

I. Original carrying value

112ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023

1. Beginning balance 3060312.13 3060312.13

2. Increased amount for the

current period

(1) Purchase

(2) Internal R&D

(3) Business combination

increase

3. Decreased amount for the

current period

(1) Disposal

4. Ending balance 3060312.13 3060312.13

II. Accumulated amortization

1. Beginning balance 1790929.22 1790929.22

2. Increased amount for the

current period 323300.59 323300.59

(1) Withdrawal 323300.59 323300.59

3. Decreased amount for the

current period

(1) Disposal

4. Ending balance 2114229.81 2114229.81

III. Depreciation reserves

1. Beginning balance

2. Increased amount for the

current period

(1) Withdrawal

3. Decreased amount for the

current period

(1) Disposal

4. Ending balance

IV. Carrying value

1. Ending carrying value 946082.32 946082.32

2. Beginning carrying value 1269382.91 1269382.91

The proportion of intangible assets formed from the internal R&D of the Company at the Period-end to the ending balance of

intangible assets

(2) Land Use Right Failed to Accomplish Certification of Property

Unit: RMB

Item Carrying value Reason

Other notes:

27. Development Costs

Unit: RMB

Item Beginning Increased amount of the current period Decreased amount for the current period Ending

113ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023

balance Transferred balance

Internal Recognized into the

development Others asintangible currentcosts assets profit orloss

Total

Other notes:

28. Goodwill

(1) Original Carrying Value of Goodwill

Unit: RMB

Name of the Increase for the current period Decrease for the current period

invested units or

events Beginning Formed by Ending balance

generating balance business Disposal

goodwill combination

Shenzhen

Facility

Management

Community 9446847.38 9446847.38

Technology

Co. Ltd.Total 9446847.38 9446847.38

(2) Depreciation Reserves of Goodwill

Unit: RMB

Name of the Increase for the current period Decrease for the current period

invested units or

events Beginning

generating balance

Ending balance

Withdrawal Disposal

goodwill

Total

Information on the Assets Groups or Combination of Assets Groups which Goodwill Belongs to

Carrying Assets group or combination of assets groups

value of

goodwill Main composition Carrying value Recognition method Changes in current

period

9446847.38 Shenzhen Facility 21490611.97 Assets group or combination of assets No

Management groups capable of generating cash flows

Community independently in consideration of benefits

Technology Co. Ltd. from synergies of business combination and

the management’s administration and

monitoring of production and operating

activities.Notes of the testing process of goodwill impairment parameters (such as growth rate of the forecast period growth rate of stable

period rate of profit discount rate forecast period and so on for prediction of future present value of cash flows) and the recognition

method of goodwill impairment losses:

Influence of goodwill impairment testing

Other notes:

29. Long-term Prepaid Expense

Unit: RMB

Increased amount Amortization

Item Beginning balance of the current amount of the Other decreased Ending balance

period current period amount

114ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023

Decoration fee 21980602.46 1990869.21 4357979.80 21985.79 19591506.08

Total 21980602.46 1990869.21 4357979.80 21985.79 19591506.08

Other notes:

30. Deferred Income Tax Assets/Deferred Income Tax Liabilities

(1) Deferred Income Tax Assets Had Not Been Off-set

Unit: RMB

Ending balance Beginning balance

Item Deductible temporary Deferred income tax Deductible temporary Deferred income tax

differences assets differences assets

Provision for

impairment of assets 91518925.24 19529639.19 72321489.09 15066804.41

Internal unrealized

profit 438745107.84 109686276.96 439263809.16 109815952.29

Deductible losses 930939553.18 232593025.59 1159867308.26 288683459.58

Accrued land VAT 3865285968.24 966321492.06 3838271429.24 959567857.31

Estimated profit

calculated at pre-sale

revenue of property 94559293.40 23639823.35 35766814.24 8941703.56

enterprises

Other accrued expenses 6301806.64 1422129.16 4512525.55 974808.89

Total 5427350654.54 1353192386.31 5550003375.54 1383050586.04

(2) Deferred Income Tax Liabilities Had Not Been Off-set

Unit: RMB

Ending balance Beginning balance

Item Taxable temporary Deferred income tax Taxable temporary Deferred income tax

difference liabilities difference liabilities

The carrying value of

fixed assets was larger 696675.48 174168.87 967914.16 241978.54

than the tax basis

Total 696675.48 174168.87 967914.16 241978.54

(3) Deferred Income Tax Assets or Liabilities Had Been Off-set Listed in Net Amount

Unit: RMB

Ending off-set amount Ending balance of Beginning off-setamount of deferred Beginning balance ofItem of deferred income tax deferred income tax income tax assets and deferred income taxassets and liabilities assets and liabilities liabilities assets and liabilities

Deferred income tax

assets 1353192386.31 1383050586.04

Deferred income tax

liabilities 174168.87 241978.54

(4) List of Unrecognized Deferred Income Tax Assets

Unit: RMB

Item Ending balance Beginning balance

Deductible temporary differences 48268108.72 52448071.36

Deductible losses 515895750.67 508734563.66

Total 564163859.39 561182635.02

(5) Deductible Losses of Unrecognized Deferred Income Tax Assets will Due in the Following Years

Unit: RMB

115ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023

Year Ending amount Beginning amount Notes

2023 265603820.64 265603820.64 The deductible losses of 2018

2024 124895242.05 124895242.05 The deductible losses of 2019

2025 22711013.85 22711013.85 The deductible losses of 2020

2026 14238807.00 14238807.00 The deductible losses of 2021

2027 81285680.12 81285680.12 The deductible losses of 2022

2028 7161187.01 The deductible losses of 2023

Total 515895750.67 508734563.66

Other notes:

31. Other Non-current Assets

Unit: RMB

Ending balance Beginning balance

Item Carrying Impairment Carrying value Carrying Impairmentamount provision amount provision Carrying value

Prepayment for

purchase of

fixed assets

investment 1291779.31 1291779.31 115779.31 115779.31

properties and

intangible assets

Others 2635093.77 2635093.77 2635093.77 2635093.77

Total 3926873.08 3926873.08 2750873.08 2750873.08

Other notes:

32. Short-term Borrowings

(1) Category of Short-term Borrowings

Unit: RMB

Item Ending balance Beginning balance

Notes of the category for short-term loans:

(2) List of the Short-term Borrowings Overdue but not Returned

The amount of the overdue unpaid short-term borrowings at the period-end was RMBXXX of which the significant overdue unpaid

short-term borrowings are as follows:

Unit: RMB

Entity Ending balance Interest rate Overdue time Overdue charge rate

Other notes:

33. Trading Financial Liabilities

Unit: RMB

Item Ending balance Beginning balance

Of which:

Other notes:

34. Derivative Financial Liabilities

Unit: RMB

Item Ending balance Beginning balance

116ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023

Other notes:

35. Notes Payable

Unit: RMB

Category Ending balance Beginning balance

The total amount of notes payable due but unpaid was RMBXXX.

36. Accounts Payable

(1) List of Accounts Payable

Unit: RMB

Item Ending balance Beginning balance

Engineering construction expense payable 353407806.68 484123042.01

Estimated payables 2712921.63 32863907.25

Others 141395031.89 91296439.26

Total 497515760.20 608283388.52

(2) Significant Accounts Payable Aged over 1 Year

Unit: RMB

Item Ending balance Unpaid/Un-carry-over reason

Shenzhen Municipal Bureau of Planning

and Land 25000000.00 Historical problems

China Construction Fourth Engineering

Division Corp. Ltd. 12017672.83 Unsettled

Shanghai Mingpeng Construction Group

Co. Ltd. 5976705.79 Unsettled

Shenzhen Ruihe Construction Decoration

2753369.98 Unsettled

Co. Ltd.Shenzhen HONGTAO Group Co. Ltd. 2569572.34 Unsettled

Total 48317320.94

Other notes:

37. Advances from Customers

(1) List of Advances from Customers

Unit: RMB

Item Ending balance Beginning balance

Rental 1209185.48 2260847.31

Total 1209185.48 2260847.31

(2) Significant Advances from Customers Aged over 1 Year

Unit: RMB

Item Ending balance Unpaid/Un-carry-over reason

Other notes:

38. Contract Liabilities

Unit: RMB

Item Ending balance Beginning balance

House payment in advance 47733616.21 857317217.99

Property fee in advance 33209460.24 15740950.87

Other payments in advance 38816647.12 47769871.95

Total 119759723.57 920828040.81

Significant changes in the amount of carrying value and the reason in the Reporting Period

Unit: RMB

117ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023

Item Change in amount Reason(s)

SZPRD-Fuchang Garden The carried down qualified for revenue carried forward was carried

-840878470.63

Phase II (Fuhui Huayuan) forward to income from principal businesses.SZPRD-Golden Collar’s

28343180.03 Sales payment collection from the project in the current period

Resort

Total -812535290.60

The Company shall comply with the disclosure requirements for the real estate industry in the Self-regulatory Guidelines No. 3 for

Companies Listed on Shenzhen Stock Exchange - Industry Information Disclosure.The proceeds information of top five advance sale amount:

Unit: RMB

No. Project name Beginning balance Ending balance Estimated date of Advance salecompletion proportion

1 SZPRD-Golden 15574706.92 43917886.95 25 December 2019 96.00%

Collar’s Resort

2 Guangming Yutang 0.00 2986620.19 1 December 2024 1.70%

Shangfu project

3 SZPRD-HupanYujing Phase II 716422.02 707247.71 30 November 2017 96.00%

4 SZPRD-BanshanYujing Phase II 110921.17 74430.17 12 January 2022 100.00%

5 SZPRD-HupanYujing Phase I 36697.25 36697.25 1 June 2015 88.24%

39. Payroll Payable

(1) List of Payroll Payable

Unit: RMB

Item Beginning balance Increase for the current Decrease for the currentperiod period Ending balance

I. Short-term salary 234726107.97 423623999.36 467829214.52 190520892.81

II. Post-employment

benefit-defined 1650684.05 35124716.34 34223858.31 2551542.08

contribution plans

III. Termination

benefits 2749600.00 2749600.00

Total 239126392.02 458748715.70 504802672.83 193072434.89

(2) List of Short-term Salary

Unit: RMB

Item Beginning balance Increase for the current Decrease for theperiod current period Ending balance

1. Salary bonus allowance

subsidy 216273079.86 371317457.31 413685247.77 173905289.40

2. Employee welfare 1408479.54 530327.31 809484.30 1129322.55

3. Social insurance 71070.35 15509848.67 15281606.04 299312.98

Of which: Medical insurance

premiums 60059.54 13198732.10 12994566.26 264225.38

Work-related injury insurance

premiums 1263.70 643673.04 626227.56 18709.18

Maternity insurance 2154.62 786269.22 779285.91 9137.93

Other commercial insurances 7592.49 881174.31 881526.31 7240.49

4. Housing fund 1279643.31 13741572.37 13742470.35 1278745.33

5. Labor union budget and

employee education budget 11352966.60 8376367.18 8179570.54 11549763.24

118ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023

8. Non-monetary benefits 4340868.31 14148426.52 16130835.52 2358459.31

Total 234726107.97 423623999.36 467829214.52 190520892.81

(3) List of Defined Contribution Plans

Unit: RMB

Item Beginning balance Increase for the current Decrease for the currentperiod period Ending balance

1. Basic pension

insurance 145676.75 29593189.67 29245239.63 493626.79

2. Unemployment

insurance premiums 4125.03 711810.87 700545.89 15390.01

3. Supplementary

pension payment 1500882.27 4797985.48 4256342.47 2042525.28

Others 21730.32 21730.32

Total 1650684.05 35124716.34 34223858.31 2551542.08

Other notes:

40. Taxes Payable

Unit: RMB

Item Ending balance Beginning balance

VAT 14088568.40 15392042.91

Consumption tax 0.00 0.00

Enterprise income tax 32630161.71 57096046.69

Personal income tax 4576871.47 3141049.35

Urban maintenance and construction tax 1132969.70 1464551.01

Land appreciation tax 3865285968.16 3838271429.24

Land use tax 941954.40 153626.98

Property tax 5712733.63 600966.66

Educational surcharge 464449.41 707668.15

Local educational fee 432570.90 383745.82

Others 133425.21 67220.00

Total 3925399672.99 3917278346.81

Other notes:

41. Other Payables

Unit: RMB

Item Ending balance Beginning balance

Interest payable 0.00 0.00

Dividends payable 227351128.25 12202676.04

Other payables 1476775808.27 1502883156.41

Total 1704126936.52 1515085832.45

(1) Interest Payable

Unit: RMB

Item Ending balance Beginning balance

Total 0.00 0.00

List of the significant overdue unpaid interest:

Unit: RMB

119ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023

Entity Overdue amount Overdue reason

Other notes:

(2) Dividends Payable

Unit: RMB

Item Ending balance Beginning balance

Ordinary stock dividends 227351128.25 12202676.04

Total 227351128.25 12202676.04

Other notes: including significant dividends payable unpaid for over one year the unpaid reason shall be disclosed:

Item Amount unpaid Reason

Shenzhen Greening Department 10869036.68 Company restructured without clearingpayment object

Labor Union of Shenzhen Greening Department 1300000.00 Company restructured without clearingpayment object

Others 33639.36 Without access to its account and the finalpayment is unpaid

Total 12202676.04

(3) Other Payables

1) Other Payables Listed by Nature of Account

Unit: RMB

Item Ending balance Beginning balance

Security deposit 339025828.61 316108932.91

Margin 19211060.35 13585641.99

Collection on behalf 4350525.30 3596458.33

Intercourse funds 814319067.66 855267729.70

Accrued expenses 237339978.52 224646116.70

Payment on behalf 14727817.67 19052869.33

Others 47801530.16 70625407.45

Total 1476775808.27 1502883156.41

2) Significant Other Accounts Payable Aging over One Year

Unit: RMB

Item Ending balance Unpaid/Un-carry-over reason

Shenzhen Pason Aluminum Technology 196416155.45 Did not submit the payment applicationCo. Ltd. for historical reasons

Shenzhen Hengyu (Group) Co. Ltd. 162000000.00 Unsettled

Shenzhen Bay Technology Development

Co. Ltd. 154415543.77 Unsettled

Shenzhen Real Estate Jifa Warehousing 42296665.14 Intercourse fund without specific paymentCo. Ltd. term

Shenzhen Toutiao Technology Co. Ltd. 12424072.07 Lease term not expired

Total 567552436.43

Other notes:

42. Held-for-sale Liabilities

Unit: RMB

Item Ending balance Beginning balance

Other notes:

120ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023

43. Current Portion of Non-current Liabilities

Unit: RMB

Item Ending balance Beginning balance

Current portion of long-term borrowings 201663040.96 196645408.45

Lease obligation matured within 1 Year 21006002.41 22213358.37

Total 222669043.37 218858766.82

Other notes:

44. Other Current Liabilities

Unit: RMB

Item Ending balance Beginning balance

Tax to be charged off 3392989.52 83991786.83

Total 3392989.52 83991786.83

Increase/decrease of the short-term bonds payable:

Unit: RMB

Amortization

Name Par value Issue date Bond Issue Beginning

Issued in Interest of premium Repaid in Ending

duration amount balance the current accrued at and the currentperiod par value period balancedepreciation

Total

Other notes:

45. Long-term Borrowings

(1) Category of Long-term Borrowings

Unit: RMB

Item Ending balance Beginning balance

Pledged loans 3187796390.00 3156782344.00

Mortgage loans 553453878.17

Credit loan 431200000.00 462000000.00

Total 4172450268.17 3618782344.00

Note to the category of long-term borrowings:

The pledged borrowings at the period-end [1] were used to develop the Lanhushidai project of Shenzhen Rongyao Real Estate

Development Co. Ltd. a subsidiary of the Company (hereinafter referred to as “Rongyao Real Estate”) with the duration from 29

November 2019 to 20 November 2024. And 69% equity of Rongyao Real Estate held by the Company was pledged and the

guarantee mode was the joint liability guaranty.The pledge borrowings at the period-end [2] were used to acquire 100% of five property management enterprises. They are Shenzhen

Property Management Co. Ltd. Shenzhen Foreign Trade Property Management Co. Ltd. Shenzhen Shenfubao Property

Development Co. Ltd. Shenzhen Shenfubao Hydropower Municipal Service Co. Ltd. and Shenzhen Free Trade Zone Security

Service Co. Ltd. by the Company's subsidiary Shenzhen International Trade Center Property Management Co. Ltd. with the

duration from 18 May 2022 to 26 April 2027. And the 100% equity of these five enterprises held by Shenzhen International Trade

Center Property Management Co. Ltd.The pledged loans [3] at the period-end were used to develop the Humen Sea Bay Garden project of Dongguan Wuhe Real Estate Co.Ltd. a subsidiary of the Company with the duration from 30 March 2023 to 5 August 2027. All accounts receivable of Dongguan

Wuhe Real Estate Co. Ltd. in next five years was pledged.The mortgage loans [1] at the period-end were used to develop the Humen Sea Bay Garden project of Dongguan Wuhe Real Estate

Co. Ltd. a subsidiary of the Company with the duration from 30 March 2023 to 5 August 2027. The land use right of Humen Sea

Bay Garden project held by Dongguan Wuhe Real Estate Co. Ltd. was pledged.The mortgage loans [2] at the period-end were used to develop the Guangming Yutang Shangfu project of Shenzhen Guangming

Wuhe Real Estate Co. Ltd. a subsidiary of the Company with the duration from 24 May 2023 to 25 April 2028. The land use right

of Guangming Yutang Shangfu project held by Shenzhen Guangming Wuhe Real Estate Co. Ltd. was pledged.The mortgage loans [3] at the period-end were used to develop the Lanhushidai project of Shenzhen Rongyao Real Estate

Development Co. Ltd. a subsidiary of the Company (hereinafter referred to as “Rongyao Real Estate”) with the duration from 30

March 2023 to 30 March 2026.The land use right of Lanhushidai project held by Rongyao Real Estate was pledged and the Company

provided joint and several liability guarantee..

121ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023

The credit borrowings at the period-end were used for the transaction payment of equity of Shenzhen Toukong Property Management

Co. Ltd. with the duration from 18 May 2020 to 10 May 2025.Other notes including interest rate range:

46. Bonds Payable

(1) Bonds Payable

Unit: RMB

Item Ending balance Beginning balance

(2) Changes of Bonds Payable (Excluding Other Financial Instruments Divided as Financial Liabilities such

as Preferred Shares and Perpetual Bonds)

Unit: RMB

Amortization

Name Par value Issue date Bond Issue Beginning

Issued in Interest Repaid in

duration amount balance the current accrued at

of premium

and the current

Ending

period par value period balancedepreciation

Total —

(3) Convertible Conditions and Time for Convertible Corporate Bonds

(4) Notes to Other Financial Instruments Classified as Financial Liabilities

Basic information about other outstanding financial instruments such as preferred shares and perpetual bonds at the period-end

Changes of outstanding financial instruments such as preferred shares and perpetual bonds at the period-end

Unit: RMB

Outstanding Period-beginning Increase for the current period

Decrease for the current

period Period-end

financial

instruments Number Carrying Carryingvalue Number value Number

Carrying Number Carryingvalue value

Notes to basis for the classification of other financial instruments as financial liabilities

Other notes:

47. Lease Liabilities

Unit: RMB

Item Ending balance Beginning balance

Lease payments 99694102.14 119208080.55

Less: Unrecognized financing expense -15762599.86 -19031438.63

Less: Lease liabilities due within 1 year

(filled in with negative number) -21006002.41 -22213358.37

Total 62925499.87 77963283.55

Other notes:

48. Long-term Payables

Unit: RMB

Item Ending balance Beginning balance

Total 0.00 0.00

(1) Long-term Payables Listed by Nature

Unit: RMB

Item Ending balance Beginning balance

Total 0.00 0.00

Other notes:

(2) Specific Payables

Unit: RMB

Item Beginning balance Increase for the Decrease for the Ending balance Reason for

122ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023

current period current period formation

Other notes:

49. Long-term Payroll Payable

(1) List of Long-term Payroll Payable

Unit: RMB

Item Ending balance Beginning balance

(2) Changes in Defined Benefit Plans

Obligation present value of defined benefit plans:

Unit: RMB

Item Amount for the current period Amount for the previous period

Plan assets:

Unit: RMB

Item Amount for the current period Amount for the previous period

Net liabilities (net assets) of defined benefit plans:

Unit: RMB

Item Amount for the current period Amount for the previous period

Notes of influence of content of defined benefit plans and its relevant risks to the future cash flow time and uncertainty of the

Company:

Notes to the results of significant actuarial assumptions and sensitivity analysis of defined benefit plans:

Other notes:

50. Provisions

Unit: RMB

Item Ending balance Beginning balance Reason for formation

Pending litigation 766612.52 766612.52 Xuansheng propertymanagement fee lawsuit

Total 766612.52 766612.52

Other notes including notes to related significant assumptions and evaluation of significant provisions:

Refer to Note XIV-2 for details.

51. Deferred Income

Unit: RMB

Item Beginning balance Increase for the Decrease for the Ending balance Reason forcurrent period current period formation

Total 0.00 0.00

Item involving government grants:

Unit: RMB

Amount

Amount of recorded Amount

newly into non- recorded

Amount

offset cost Related to

Item Beginning subsidy for operating into other Other Endingbalance the current income in income in

in the assets/related

the current current

changes balance income

period the current period

period period

Other notes:

52. Other Non-current Liabilities

Unit: RMB

Item Ending balance Beginning balance

123ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023

Utility specific fund 636774.81 634414.79

Housing principle fund 16201175.98 15105690.42

House warming deposit 6466131.01 7058030.03

Electric Equipment Maintenance fund 4019415.44 4019415.44

Deputed maintenance fund 53418040.46 53798172.96

Follow-up investment of employees for

Lanhushidai project 40000000.00 40000000.00

Others 7510304.23 7393196.15

Total 128251841.93 128008919.79

Other notes:

53. Share Capital

Unit: RMB

Increase/decrease (+/-)

Beginning

balance New shares Bonus issue Ending balance

issued Bonus shares from profit Others Subtotal

Total shares 595979092.00 595979092.00

Other notes:

54. Other Equity Instruments

(1) Basic Information about Other Outstanding Financial Instruments such as Preferred Shares and Perpetual Bonds at the

Period-end

(2) Changes of Outstanding Financial Instruments such as Preferred Shares and Perpetual Bonds at the Period-end

Unit: RMB

Period-beginning Increase for the current Decrease for the currentOutstanding period period Period-end

financial

instruments Number Carrying Number Carryingvalue value Number

Carrying

value Number

Carrying

value

Changes of other equity instruments in the Current Period reasons thereof and basis of related accounting treatment:

Other notes:

55. Capital Reserve

Unit: RMB

Item Beginning balance Increase for the Decrease for the currentcurrent period period Ending balance

Other capital reserves 80488045.38 80488045.38

Total 80488045.38 80488045.38

Other notes including a description of the increase or decrease for the current period and the reasons for the change:

56. Treasury Shares

Unit: RMB

Item Beginning balance Increase for the current Decrease for the currentperiod period Ending balance

Total 0.00 0.00

Other notes including a description of the increase or decrease for the current period and the reasons for the change:

124ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023

57. Other Comprehensive Income

Unit: RMB

Amount for the current period

Less: recorded Less: recorded

in other in other

Amount before comprehensive comprehensive

Item Beginning balance deducting income income in income in Less: Income Attributable to the

Attributable

Ending balance

tax for the current prior period prior period

minority

and transferred and transferred tax expense

Company as the parent

period after tax

shareholders

in profit or in retained after tax

loss in the earnings in the

current period current period

I. Other

comprehensive

income that may

not be -2742841.65 -275978.56 -275978.56 -3018820.21

reclassified to

profit or loss

Changes in fair

value of other

equity -2742841.65 -275978.56 -275978.56 -3018820.21

instrument

investment\

II. Other

comprehensive

income that may

subsequently be -1111536.30 1679998.83 1679998.83 568462.53

reclassified to

profit or loss

Differences

arising from

translation of

foreign

currency- -1111536.30 1679998.83 1679998.83 568462.53

denominated

financial

statements

Total of other

comprehensive -3854377.95 1404020.27 1404020.27 -2450357.68

income

Other notes including the adjustment of the effective gain/loss on cash flow hedges to the initial recognized amount:

58. Specific Reserve

Unit: RMB

Item Beginning balance Increase for the current Decrease for the currentperiod period Ending balance

Other notes including a description of the increase or decrease for the current period and the reasons for the change:

59. Surplus Reserves

Unit: RMB

Item Beginning balance Increase for the current Decrease for the currentperiod period Ending balance

Statutory surplus

reserves 48521202.68 48521202.68

Discretional surplus

reserves 365403.13 365403.13

Total 48886605.81 48886605.81

Notes including changes and reason of change:

60. Retained Earnings

Unit: RMB

Item Current period Previous period

Beginning balance of retained profits

before adjustments 3691056182.73 3800901413.35

Beginning balance of retained profits after 3691056182.73 3800901413.35

125ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023

adjustments

Add: Net profit attributable to owners of

the Company as the parent 220903444.63 250802157.71

Dividends of common shares payable 215148452.21

Others -1644822.69 -208463077.04

Ending retained profits 3695166352.46 3437974711.46

List of adjustment of beginning retained profits:

1) RMBXXX beginning retained earnings was affected by retrospective adjustment conducted according to the Accounting Standards

for Business Enterprises and relevant new regulations.

2) RMBXXX beginning retained earnings was affected by changes in accounting policies.

3) RMBXXX beginning retained earnings was affected by correction of significant accounting errors.

4) RMB beginning retained profits was affected by changes in combination scope arising from same control.

5) RMBXXX beginning retained earnings was affected totally by other adjustments.

61. Operating Revenue and Cost of Sales

Unit: RMB

Amount for the current period Amount for the previous period

Item

Revenue Cost Revenue Cost

Principal business 1838535192.23 1348203616.26 1972677481.97 1067980872.62

Others 66929440.62 23956267.99 15622358.27 671710.70

Total 1905464632.85 1372159884.25 1988299840.24 1068652583.32

Relevant information of revenue:

Unit: RMB

Category of contracts Segment 1 Segment 2 Total

Product categories 1905464632.85 1905464632.85

Of which:

Real estate 1053881874.68 1053881874.68

Property management 773181325.02 773181325.02

Leasing business 78401433.15 78401433.15

Classification by

operating region 1905464632.85 1905464632.85

Of which:

Shenzhen 1736158823.32 1736158823.32

Other regions 169305809.53 169305809.53

Market or customer

type

Of which:

Contract type

Of which:

Classification by time

of commodity transfer

Of which:

Classification by

contract term

Of which:

Classification by sales

channel

126ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023

Of which:

Total

Information about performance obligations:

On 30 June 2023 the transaction price assigned to unfulfilled (or partially fulfilled) performance obligations was estimated to be

RMB120 million which is mainly expected future revenue of transaction prices that have not met the delivery conditions stipulated

in sales contracts of real estate. The Company is expected to achieve the planned sales revenue within one or two years when the

house property is completed and passes the acceptance which meets the delivery conditions stipulated in sales contracts and when

the customers acquire the control rights of relevant goods or services on a pilot basis.Information in relation to the transaction price apportioned to the residual contract performance obligation:

The amount of revenue corresponding to performance obligations of contracts signed but not performed or not fully performed yet

was RMB119759723.56 at the period-end among which RMB62270248.99 was expected to be recognized in 2023

RMB12104375.25 was expected to be recognized in 2024 and RMB45385099.32 was expected to be recognized in 2025.Other notes:

The Company shall comply with the disclosure requirements for the real estate industry in the Self-regulatory Guidelines No. 3 for

Companies Listed on Shenzhen Stock Exchange - Industry Information Disclosure.The top 5 accounts received with confirmed amount in the Reporting Period:

Unit: RMB

No. Project name Income balance

1 Fuchang Garden Phase II 965944812.30

2 Golden Collar’s Resort 66354012.36

3 Songhu Langyuan 781769.51

4 Hupan Yujing Phase II 250872.47

5 Banshan Yujing Phase II 57027.52

62. Taxes and Surtaxes

Unit: RMB

Item Amount for the current period Amount for the previous period

Urban maintenance and construction tax 5234580.49 6451246.20

Educational surcharge 2245496.54 2793502.94

Property tax 5879679.55 2296167.11

Land use tax 1017014.81

Vehicle and vessel usage tax 18361.26 14176.80

Stamp duty 531098.01 1998247.74

Land appreciation tax 28694726.98 378694384.75

Local educational fee 1500541.14 1827584.76

Other taxes 69287.25 155409.51

Total 45190786.03 394230719.81

Other notes:

63. Selling Expense

Unit: RMB

Item Amount for the current period Amount for the previous period

Agency fee 26078.00 989571.51

Consultancy and sales service charges 2385496.26 2384890.28

Advertising expenses 3855726.14 954193.61

Employee remuneration 4649571.85 3422942.15

127ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023

Others 2170424.80 3607260.96

Total 13087297.05 11358858.51

Other notes:

64. Administrative Expense

Unit: RMB

Item Amount for the current period Amount for the previous period

Employee remuneration 109945612.07 107934307.26

Administrative office cost 14020387.30 13369249.80

Assets amortization and depreciation

expense 13134121.00 12231294.86

Litigation costs 5611455.50 1823824.81

Others 6476608.31 8342381.32

Total 149188184.18 143701058.05

Other notes:

65. Development Expense

Unit: RMB

Item Amount for the current period Amount for the previous period

Employee remuneration 1466686.36 2511310.90

Office cost 47920.50 3395.00

R&D material expense 1592.92 25050.00

Others 194851.66 149969.50

Total 1711051.44 2689725.40

Other notes:

66. Finance Costs

Unit: RMB

Item Amount for the current period Amount for the previous period

Finance costs 31827441.32 36281087.17

Less: Interest income (filled in with

negative number) -7930755.87 -9179453.97

Foreign exchange gains or losses -523791.38 -1610359.72

Others 819510.87 2601004.28

Total 24192404.94 28092277.76

Other notes:

67. Other Income

Unit: RMB

Sources Amount for the current period Amount for the previous period

Government grants related to income 950093.18 3006828.76

Return of auxiliary expense for individual

income tax withheld 390379.71 240710.82

Additional deduction of VAT 2741411.22 3186192.45

Rebate of VAT 738782.96 372713.96

Tax and fee relief 812133.08

128ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023

Others 37288.76

Total 5670088.91 6806445.99

68. Investment Income

Unit: RMB

Item Amount for the current period Amount for the previous period

Long-term equity investment income

accounted by equity method 1857388.32 859534.38

Interest income earned on other

investment in debt obligations during the 87379.67

holding period

Total 1857388.32 946914.05

Other notes:

69. Net Gain on Exposure Hedges

Unit: RMB

Item Amount for the current period Amount for the previous period

Other notes:

70. Gain on Changes in Fair Value

Unit: RMB

Sources Amount for the current period Amount for the previous period

Other notes:

71. Credit Impairment Loss

Unit: RMB

Item Amount for the current period Amount for the previous period

Bad debt loss -13610779.58 -14462076.54

Total -13610779.58 -14462076.54

Other notes:

72. Asset Impairment Loss

Unit: RMB

Item Amount for the current period Amount for the previous period

II. Inventory falling price loss and impairment

provision for contract performance costs 2045.93 3302.47

Total 2045.93 3302.47

Other notes:

73. Asset Disposal Income

Unit: RMB

Sources Amount for the current period Amount for the previous period

Gains on disposal of fixed assets 115810.85 -41452.49

Gains on disposal of other assets 58568.84

74. Non-operating Income

Unit: RMB

129ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023

Amount recorded in the

Item Amount for the current period Amount for the previousperiod current non-recurring profit orloss

Government grants 17500.00

Gains on damage and scrap of

non-current assets 5568.23 5568.23

Confiscated income 652311.27 916961.90 652311.27

Payments unable to clear 56282.77 874963.88 56282.77

Others -919060.30 736642.68 -919060.30

Total -204898.03 2546068.46 -204898.08

Government grants recorded into current profit or loss

Unit: RMB

Whether

Item Distribution Distribution

influence the Special Related to

entity reason Nature profits or losses subsidy or

Amount for the

current period Previous period assets/relatedof the year or not income

not

Subsidies obtained from the

state by undertaking the

Others Subsidies sustainability of public utilitiesthe supply of socially necessary No No 17500.00

Related to

revenue

products or the function of

price control

Other notes:

75. Non-operating Expense

Unit: RMB

Amount recorded in the

Item Amount for the current period Amount for the previousperiod current non-recurring profit orloss

Donation 19300.00

Losses from damage and scrap

of non-current assets 17136.15 101068.85 17136.15

Penalty and fine for delaying

payment 78886.53 1050960.64 78886.53

Others 261695.71 246257.35 261695.71

Total 357718.39 1417586.84 357718.39

Other notes:

76. Income Tax Expense

(1) List of Income Tax Expense

Unit: RMB

Item Amount for the current period Amount for the previous period

Current income tax expense 48971626.96 173064812.19

Deferred income tax expense 29847648.80 -80409607.93

Total 78819275.76 92655204.26

(2) Adjustment Process of Accounting Profit and Income Tax Expense

Unit: RMB

Item Amount for the current period

Total profit 293465531.81

Current income tax expense accounted at statutory/applicable tax rate 73366382.95

130ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023

Influence of applying different tax rates by subsidiaries -2534219.08

Influence of income tax before adjustment 5804661.91

Influence of non-deductible costs expenses and losses 392153.23

Effect of deductible temporary differences or deductible losses on deferred income

tax assets not recognized in the current period 1790296.75

Income tax expense 78819275.76

Other notes:

77. Other Comprehensive Income

Refer to Note for details.

78. Cash Flow Statement

(1) Cash Generated from Other Operating Activities

Unit: RMB

Item Amount for the current period Amount for the previous period

Large intercourse funds received 49072300.25 376141428.59

Interest income 7930755.87 8168660.77

Net margins security deposit and various

special funds received 45287205.39 47722607.40

Other small receivables 24479612.17 29754454.20

Total 126769873.68 461787150.96

Notes:

(2) Cash Used in Other Operating Activities

Unit: RMB

Item Amount for the current period Amount for the previous period

Paying administrative expense in cash 30693136.34 24801083.99

Paying selling expense in cash 8054091.33 9594684.62

Payment of utility expense and various

collecting payments on behalf of others 49083846.80 70071543.78

Other small payments 34041223.54 1997036.36

Amount of newly limited funds 5455416.01

Total 127327714.02 106464348.75

Notes:

(3) Cash Generated from Other Investing Activities

Unit: RMB

Item Amount for the current period Amount for the previous period

Notes:

(4) Cash Used in Other Investing Activities

Unit: RMB

Item Amount for the current period Amount for the previous period

Notes:

(5) Cash Generated from Other Financing Activities

Unit: RMB

131ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023

Item Amount for the current period Amount for the previous period

Notes:

(6) Cash Used in Other Financing Activities

Unit: RMB

Item Amount for the current period Amount for the previous period

Payment for lease liabilities 15224062.82 12142998.09

Total 15224062.82 12142998.09

Notes:

79. Supplemental Information for Cash Flow Statement

(1) Supplemental Information for Cash Flow Statement

Unit: RMB

Supplemental information Amount during the currentperiod Previous period

1. Reconciliation of net profit to net cash flows generated from operating

activities:

Net profit 214646256.05 241301028.23

Add: Provision for impairment of assets 13608733.65 14458774.07

Depreciation of fixed assets oil-gas assets and productive biological

assets 30375573.61 46813436.13

Depreciation of right-of-use assets 10342761.89 11367505.45

Amortization of intangible assets 323300.59 390983.97

Amortization of long-term prepaid expenses 4357979.80 3085317.14

Losses from disposal of fixed assets intangible assets and other long-lived assets (gains represented by “-") -174379.69 41452.49Losses from scrap of fixed assets (gains represented by “-") 17136.15 101068.85Losses from changes in fair value (gains represented by “-")Finance costs (gains represented by “-") 24192404.94 28092277.76Investment loss (gains represented by “-") -5385588.91 -6806445.99Decrease in deferred income tax assets (gains represented by “-") 29858199.73 -80319053.48Increase in deferred income tax liabilities (decrease represented by “-") -67809.67 -68469.92Decrease in inventory (gains represented by “-") 127259375.62 -761934290.05Decrease in accounts receivable generated from operating activities(gains represented by “-") -13839646.61 -44432489.46Increase in accounts payable used in operating activities (decreaserepresented by “-") -1015535955.30 151914673.72Others

Net cash flows from operating activities -580021658.15 -395994231.09

2. Significant investing and financing activities without involvement of

cash receipts and payments

Conversion of debt to capital

Convertible corporate bonds matured within one year

Fixed asset under finance lease

3. Net increase/decrease of cash and cash equivalent:

Closing balance of cash 1376665482.70 1473196246.07

Less: Opening balance of cash 1509693857.48 1963988756.69

Add: Closing balance of cash equivalents

132ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023

Less: Opening balance of cash equivalents

Net increase in cash and cash equivalents -133028374.78 -490792510.62

(2) Net Cash Paid for Acquisition of Subsidiaries

Unit: RMB

Amount

Of which:

Add: Cash or cash equivalents paid in the current period for

business combinations incurred in prior periods 1644822.69

Of which:

Shenzhen Property Management Co. Ltd. 1644822.69

Net cash paid for acquisition of subsidiaries 1644822.69

Other notes:

(3) Net Cash Received from Disposal of the Subsidiaries

Unit: RMB

Amount

Of which:

Other notes:

(4) Cash and Cash Equivalents

Unit: RMB

Item Ending balance Beginning balance

I. Cash 1376665482.70 1509693857.48

Of which: Cash on hand 42693.32 43833.00

Bank deposits on demand 1373278510.90 1506148081.54

Other monetary assets on demand 3344278.48 3501942.94

III. Ending balance of cash and cash

equivalents 1376665482.70 1509693857.48

Other notes:

80. Notes to Items of the Statements of Changes in Owners' Equity

Notes to the name of "Other" of closing balance of the same period of last year adjusted and the amount adjusted:

Not applicable.

81. Assets with Restricted Ownership or Right of Use

Unit: RMB

Item Ending carrying amount Reason for restriction

Monetary capital 15539145.06 Note 1 - Note 9

Land use right of Fumin New Village

Futian District 542507314.43 Note 10

Total 558046459.49

Other notes:

[Note 1]: In terms of monetary assets with restricted right to use at the period-end there was RMB2200000.00 as the banker's letter

of margin for Shenzhen Shenfubao Property Development Co. Ltd. a subsidiary of the Company.

133ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023

[Note 2]: In terms of monetary assets with restricted right to use at the period-end there was an advance payment guarantee of

RMB459627.50 issued by the subsidiary company Shenzhen Facility Management Community Technology Co. Ltd. in December

2021 for the upgrading and reconstruction of the smart park of Shenzhen Bay Eco-Technology Park and the software platform

development contract.[Note 3]: In terms of monetary assets with restricted right to use at the period-end there was RMB3000000.00 in the subsidiary

company Shenzhen Facility Management Community Technology Co. Ltd. blocked by the court due to pre-litigation preservation

for contract disputes.[Note 4]: In terms of monetary assets with restricted right to use at the period-end there was a loan deposit of RMB1132452.99

provided as mortgage loan guarantees for commercial housing purchasers and paid by the Company as a real estate developer

according to real estate business practices.[Note 5]: In terms of monetary assets with restricted right to use at the period-end there was RMB5270833.33 of interest on

unexpired term deposits accrued at the period-end.[Note 6]: In terms of monetary assets with restricted right to use at the period-end there was RMB90000.00 of blocked fund in a

dispute over a house purchase and sales contract for Shenzhen Property Group Xuzhou Dapeng Real Estate Development Co. Ltd. a

subsidiary of the Company.[Note 7]: In terms of monetary assets with restricted right to use at the period-end there was RMB129315.23 in the account of the

subsidiary company Shenzhen Property Engineering and Construction Supervision Co. Ltd. The account was in a receiving-only

status because the legal person change formalities had not been completed by the period-end.[Note 8]: In terms of monetary assets with restricted right to use at the period-end there was an deposit for POS of RMB1500.00 in

the Shandong Shenguomao Real Estate Management Co. Ltd.[Note 9]: In terms of monetary assets with restricted right to use at the period-end there was RMB3255416.01 of regulated pre-sale

proceeds for the real estate projects of Shenzhen Guangming Wuhe Real Estate Co. Ltd. a subsidiary of the Company.[Note 10]: Due to the needs of daily business activities the Company applied for a loan from Bank of Communications Co. Ltd.Shenzhen Branch and mortgaged the land use right of Fumin New Village Futian District. The loan has a duration from 27

November 2020 to 27 November 2023 and applies floating interest rates.

82. Foreign Currency Monetary Items

(1) Foreign Currency Monetary Items

Unit: RMB

Item Closing foreign currency Exchange rate Ending balance converted tobalance RMB

Monetary capital 65099169.94

Of which: USD 120000.00 7.2208 866496.00

EUR

HKD 62829561.91 0.9218 57916290.17

VND 20574539964.00 0.000307 6316383.77

Accounts prepaid 9221.19 8500.09

Of which: HKD 9221.19 0.9218 8500.09

Other payables 3506725.97 3232500.00

Of which: HKD 3506725.97 0.9218 3232500.00

Accounts receivable

Of which: USD

EUR

HKD

Long-term borrowings

Of which: USD

EUR

HKD

Other notes:

(2) Notes to Overseas Entities Including: for Significant Oversea Entities Main Operating Place Recording

Currency and Selection Basis Shall Be Disclosed; if there Are Changes in Recording Currency Relevant

Reasons Shall Be Disclosed.□Applicable □Not applicable

134ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023

Main operating StandardItem place currency for Basis for choosingaccounting

Shum Yip Properties Development Co.Ltd. and its subsidiary Hong Kong HKD Located in HK settled by HKD

Vietnam Shenguomao Property

Management Co. Ltd. Vietnam VND Located in Vietnam settled by VND

83. Arbitrage

Qualitative and quantitative information of relevant arbitrage instruments hedged risk in line with the type of arbitrage to disclose:

84. Government Grants

(1) Basic Information on Government Grants

Unit: RMB

Category Amount Listed items Amount recorded in thecurrent profit or loss

Financial assistance for high-

120000.00 Other income 120000.00

tech enterprise training

Waste classification subsidy 156000.00 Other income 156000.00

Employment subsidy 99950.19 Other income 99950.19

The subsidy for stabilizing

34254.40 Other income 34254.40

employment

Other subsidies 89888.59 Other income 89888.59

Bonus for "Beautiful Home" 450000.00 Other income 450000.00

Total 950093.18 950093.18

(2) Return of Government Grants

□Applicable□Not applicable

Other notes:

85. Other

VIII. Change of Consolidation Scope

1. Business Combination Not under the Same Control

(1) Business Combination Not under the Same Control during the Current Period

Unit: RMB

Time and Income of Net profits of

Name of place of Cost ofgaining the Proportion of Way to gain

Recognition acquiree from acquiree from

acquiree gaining equity equity equity

Purchase date basis of the purchase the purchase

equity purchase date date to date toperiod-end period-end

Other notes:

(2) Combination Cost and Goodwill

Unit: RMB

Combination cost

-Cash

-Fair value of non-cash assets

-Fair value of debt issued or assumed

-Fair value of equity securities issued

-Fair value of contingent consideration

-Fair value of equity interests held before the purchase date

-Other

135ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023

Total combination costs

Less: share in the fair value of identifiable net assets acquired

The amount of goodwill/combination cost less than the share in

the fair value of identifiable net assets acquired

Note to determination method of the fair value of the combination cost consideration and changes:

The main formation reason for the large goodwill:

Other notes:

(3) The Identifiable Assets and Liabilities of Acquiree on Purchase Date

Unit: RMB

Fair value on purchase date Carrying value on purchase date

Assets:

Monetary capital

Accounts receivable

Inventories

Fixed assets

Intangible assets

Liabilities:

Borrowings

Accounts payable

Deferred income tax liabilities

Net assets

Less: non-controlling interests

Net assets acquired

The determination method of the fair value of identifiable assets and liabilities:

Contingent liability of acquiree undertaken in the business combination:

Other notes:

(4) Gains or Losses from Re-measurement of Equity Held before the Purchase Date at Fair Value

Whether there is a transaction that through multiple transaction step by step to realize business combination and gaining the control

during the Reporting Period

□Yes□No

(5) Notes to Reasonable Consideration or Fair Value of Identifiable Assets and Liabilities of the Acquiree that Cannot Be

Determined on the Acquisition Date or during the Period-end of the Merger

(6) Other Notes

2. Business Combination under the Same Control

(1) Business Combination under the Same Control during the Current Period

Unit: RMB

Recognition Income from the Net profits from Income of the Net profits of the

Combined Proportion of Basis Combination basis of period-begin to the

the period-begin acquiree during acquiree during

party the equity date combination combination date of to thecombination date the period of the period ofdate the acquiree of the acquiree comparison comparison

Other notes:

136ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023

(2) Combination Cost

Unit: RMB

Combination cost

--Cash

--Carrying value of

non-cash assets

--Carrying value of

debt issued or assumed

--Denomination value

of equity securities

issued

--Contingent

consideration

Contingent liabilities and changes thereof:

Other notes:

(3) The Carrying Value of Assets and Liabilities of the Combined Party on the Combination Date

Unit: RMB

Combination date End of the previous period

Assets:

Monetary capital

Accounts receivable

Inventories

Fixed assets

Intangible assets

Liabilities:

Borrowings

Accounts payable

Net assets

Less: non-controlling interests

Net assets acquired

Contingent liabilities of the combined party undertaken in the business combination:

Other notes:

3. Counter Purchase

Basic information of trading the basis of transactions constitute counter purchase the retain assets liabilities of the listed companies

whether constituted a business and its basis the determination of the combination costs the amount and calculation of adjusted rights

and interests in accordance with the equity transaction process:

4. Disposal of Subsidiary

Whether there was a single disposal of an investment in a subsidiary that resulted in a loss of control

□Yes□No

Whether there was a step-by-step disposal of investment in a subsidiary through multiple transactions and loss of control during the

current period

□Yes□No

137ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023

5. Changes in Combination Scope for Other Reasons

Notes of other changes in the combination scope (e.g. new subsidiaries liquidation of subsidiaries etc.) and relevant situations:

Zhanjiang Branch of Shenzhen Properties & Resources Development (Group) Ltd. was deregistered in the current period.

6. Other

IX. Equity in Other Entities

1. Equity in Subsidiaries

(1) Compositions of the Group

Main Shareholding percentage

Name of subsidiaries operating Place of Business nature (%) Way of

place registration gainingDirectly Indirectly

Shenzhen Huangcheng Real Estate Co. Ltd. Shenzhen Shenzhen Real estate 100.00% Set-up

Shenzhen Wuhe Industry Investment

Development Co. Ltd. Shenzhen Shenzhen Real estate 100.00% Set-up

Software and Business

Shenzhen Facility Management Community information

Technology Co. Ltd. Shenzhen Shenzhen technology 35.00%

combination

not under the

services same control

Software and Business

Beijing Facility Home Technology Co. Ltd. Beijing Beijing information combinationtechnology 17.85% not under the

services same control

SZPRD Xuzhou Dapeng Real Estate

Development Co. Ltd. Xuzhou Xuzhou Real estate 100.00% Set-up

Dongguan ITC Changsheng Real Estate

Development Co. Ltd. Dongguan Dongguan Real estate 100.00% Set-up

SZPRD Yangzhou Real Estate Development

Co. Ltd. Yangzhou Yangzhou Real estate 100.00% Set-up

Shenzhen International Trade Center Property

Management Co. Ltd. Shenzhen Shenzhen Real estate 100.00% Set-up

Shenzhen Guomaomei Life Service Co. Ltd. Shenzhen Shenzhen Real estate 100.00% Set-up

Shandong Shenguomao Real Estate

Management Co. Ltd. Jinan Jinan Real estate 100.00% Set-up

Chongqing Shenguomao Real Estate

Management Co. Ltd. Chongqing Chongqing Real estate 100.00% Set-up

Chongqing Aobo Elevator Co. Ltd. Chongqing Chongqing Service industry 100.00% Set-up

Chongqing Tianque Elevator Technology

Co. Ltd. Shenzhen Shenzhen Service industry 100.00% Set-up

Shenzhen Guoguan Electromechanical

Device Co. Ltd. Shenzhen Shenzhen Service industry 100.00% Set-up

Shenzhen Guomao Catering Co. Ltd. Shenzhen Shenzhen Accommodationand catering 100.00% Set-up

Shenzhen Property Engineering and

Construction Supervision Co. Ltd. Shenzhen Shenzhen Service industry 100.00% Set-up

SZPRD Commercial Operation Co. Ltd. Shenzhen Shenzhen Service industry 100.00% Set-up

Shum Yip Properties Development Co. Ltd. Hong HongKong Kong Real estate 100.00% Set-up

Wayhang Development Co. Ltd. Hong HongKong Kong Real estate 100.00% Set-up

Chief Link Properties Co. Ltd. Hong Hong Real estate 70.00% Set-up

138ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023

Kong Kong

Business

Syndis Investment Co. Ltd. Hong HongKong Kong Real estate 70.00%

combination

not under the

same control

Yangzhou Shouxihu Jingyue Property

Development Co. Ltd. Yangzhou Yangzhou Real estate 51.00% Set-up

Shandong International Trade Center Hotel

Management Co. Ltd. Jinan Jinan Real estate 100.00% Set-up

Shenzhen Shenshan Special Cooperation

Zone Guomao Property Development Co. Shenzhen Shenzhen Real estate 65.00% Set-up

Ltd.Shenzhen Guomao Tongle Property

Management Co. Ltd. Shenzhen Shenzhen Real estate 51.00% Set-up

Business

Shenzhen Rongyao Real Estate Development combination

Co. Ltd. Shenzhen Shenzhen Real estate 69.00% not under the

same control

Business

Shenzhen ITC Technology Park Service Co. Shenzhen Shenzhen Real estate 100.00% combinationLtd. under the

same control

Business

Shenzhen Julian Human Resources

Development Co. Ltd. Shenzhen Shenzhen Service industry 100.00%

combination

under the

same control

Business

Shenzhen Huazhengpeng Property

Management Development Co. Ltd. Shenzhen Shenzhen Real estate 100.00%

combination

under the

same control

Business

Shenzhen Jinghengtai Real Estate

Development Co. Ltd. Shenzhen Shenzhen Real estate 100.00%

combination

under the

same control

Business

Shenzhen Penghongyuan Industrial Accommodation combination

Development Co. Ltd. Shenzhen Shenzhen and catering 100.00% under the

same control

Business

Shenzhen Jinhailian Property Management

Co. Ltd. Shenzhen Shenzhen Real estate 100.00%

combination

under the

same control

Business

Shenzhen Social Welfare Co. Ltd. Shenzhen Shenzhen Sanitation and 100.00% combinationsocial work under the

same control

Business

Shenzhen Fuyuanmin Property Management combination

Limited Liability Company Shenzhen Shenzhen Real estate 100.00% under the

same control

Business

Shenzhen Meilong Industrial Development combination

Co. Ltd. Shenzhen Shenzhen Service industry 100.00% under the

same control

Public facilities Business

Shenzhen Guomao Shenlv Garden Co. Ltd. Shenzhen Shenzhen management 90.00% combination

services under thesame control

Shenzhen Jiayuan Property Management Co. Shenzhen Shenzhen Real estate 54.00% Business

139ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023

Ltd. combination

under the

same control

Business

Shenzhen Helinhua Construction

Management Co. Ltd. Shenzhen Shenzhen Real estate 90.00%

combination

under the

same control

Business

Shenzhen Zhongtongda House Xiushan

Service Co. Ltd. Shenzhen Shenzhen

Construction combination

industry 90.00% under the

same control

Business

Shenzhen Kangping Industrial Co. Ltd. Shenzhen Shenzhen Retail trade 90.00% combinationunder the

same control

Business

Shenzhen Sports Service Co. Ltd. Shenzhen Shenzhen Manufacturing 100.00% combinationindustry under the

same control

Business

Shenzhen Teacher’s Home Training Co. Ltd. Shenzhen Shenzhen Retail trade 100.00% combinationunder the

same control

Business

Shenzhen Education Industrial Co. Ltd. Shenzhen Shenzhen Service industry 100.00% combinationunder the

same control

Business

Shenzhen Yufa Industrial Co. Ltd. Shenzhen Shenzhen Retail trade 80.95% combinationunder the

same control

SZPRD Fuyuantai Development Co. Ltd. Shenzhen Shenzhen Real estate 100.00% Set-up

Xiamen Shenguomao Industrial City Smart

Service Co. Ltd. Xiamen Xiamen Service industry 51.00% Set-up

Vietnam Shenguomao Property Management

Co. Ltd. Shenzhen Shenzhen Service industry 100.00% Set-up

Shenzhen SZPRD Yanzihu Development Co.Ltd. Shenzhen Shenzhen Real estate 100.00% Set-up

Shenzhen Guangming Wuhe Real Estate Co.Ltd. Shenzhen Shenzhen Real estate 100.00% Set-up

Dongguan Wuhe Real Estate Co. Ltd. Dongguan Dongguan Real estate 100.00% Set-up

Business

Shenzhen Property Management Co. Ltd. Shenzhen Shenzhen Real estate 100.00% combinationunder the

same control

Business

Shenzhen Shenwu Elevator Co. Ltd. Shenzhen Shenzhen Real estate 100.00% combinationunder the

same control

Business

Shenzhen Shenfang Property Cleaning Co. Shenzhen Shenzhen Real estate 100.00% combinationLtd. under the

same control

Business

Shenzhen Foreign Trade Property combination

Management Co. Ltd. Shenzhen Shenzhen Real estate 100.00% under the

same control

Shenzhen Shenfubao Property Development Shenzhen Shenzhen Real estate 100.00% Business

140ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023

Co. Ltd. combination

under the

same control

Business

Shenzhen Fubao Urban Resources

Management Co. Ltd. Shenzhen Shenzhen Real estate 60.00%

combination

under the

same control

Business

Shenzhen Shenfubao Hydropower Municipal Shenzhen Shenzhen Real estate 100.00% combinationService Co. Ltd. under the

same control

Business

Shenzhen Free Trade Zone Security Service

Co. Ltd. Shenzhen Shenzhen Real estate 100.00%

combination

under the

same control

Shenzhen Wuhe Urban Renewal Co. Ltd. Shenzhen Shenzhen Real estate 100.00% Set-up

Yangzhou Wuhe Real Estate Co. Ltd. Yangzhou Yangzhou Real estate 67.00% Set-up

Shenzhen Tonglu Wuhe Investment

Development Co. Ltd. Shenzhen Shenzhen Real estate 100.00% Set-up

Shenzhen International Trade Industry Space

Service Co. Ltd. Shenzhen Shenzhen Real estate 55.00% Set-up

Notes of shareholding percentage in subsidiaries different from voting percentage:

In May 2021 Shenzhen Wuhe Industry Investment Development Co. Ltd. (hereinafter referred to as “Wuhe Company”) a

subsidiary of the Company acquired 35% of the equity of Shenzhen Facility Management Community Technology Co. Ltd.(hereinafter referred to as “FMC") through acquisition of equity and directional capital increase. Meanwhile according to theagreement of the cooperation framework on equity acquisition signed by Wuhe Company and the original shareholders 16% of the

voting rights that the original shareholders hold or actually control in the equity of FMC shall be unconditionally granted to Wuhe

Company to exercise after the transaction date. There are no prerequisites for the granting of voting rights and the term of the voting

rights is not stipulated in the contract.Basis of holding half or less voting rights but still controlling the investee and holding more than half of the voting rights but not

controlling the investee:

Basis of controlling significant structural entities incorporated in the scope of combination:

Basis of determining whether the Company is the agent or the mandatory:

Other notes:

(2) Significant Non-wholly-owned Subsidiary

Unit: RMB

The profit or loss Declaring dividends

Shareholding attributable to the distributed to non- Balance of non-

Name of subsidiaries proportion of non- non-controlling controlling interests controlling

controlling interests interests for the for the current interests at the

current period period period-end

Shenzhen Rongyao Real Estate

Development Co. Ltd. 31.00% -6632248.29 -2083026.51

Yangzhou Wuhe Real Estate Co. Ltd. 33.00% -658432.42 14920336.76

Yangzhou Shouxihu Jingyue Property

Development Co. Ltd. 49.00% 670563.20 7168978.90

Shenzhen Guomao Shenlv Garden

Co. Ltd. 10.00% 274411.75 3911252.10

Holding proportion of non-controlling interests in subsidiary different from voting proportion:

Other notes:

141ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023

(3) The Main Financial Information of Significant Not Wholly-owned Subsidiary

Unit: RMB

Ending balance Beginning balance

Name of

subsidiaries Current assets Non-current Total assets Current Non-current Non-current Current Non-currentassets liabilities liabilities Total liabilities Current assets assets Total assets liabilities liabilities Total liabilities

Shenzhen

Rongyao

Real Estate 5745977117.37 155181308.75 5901158426.12 237999312.86 5567005771.06 5805005083.92 5566299658.85 148957829.54 5715257488.39 237683829.61 5360025967.25 5597709796.86

Development

Co. Ltd.Yangzhou

Wuhe Real

1099431037.381648461.141101079498.521055866356.821055866356.821003117568.27923562.281004041130.55956832739.09956832739.09

Estate Co.Ltd.Yangzhou

Shouxihu

Jingyue

20731894.92924279.0621656173.986847326.21178278.597025604.8020620873.64957140.5321578014.178192080.81123860.508315941.31

Property

Development

Co. Ltd.Shenzhen

Guomao

Shenlv 38909502.76 667055.47 39576558.23 29390561.94 213213.97 29603775.91 37872874.87 687238.86 38560113.73 31146187.72 185261.19 31331448.91

Garden Co.Ltd.Unit: RMB

Amount for the current period Amount for the previous period

Name of Total Total

subsidiaries Operating Revenue Net profit comprehensive Cash flows fromoperating activities Operating Revenue Net profit comprehensive

Cash flows from

income income operating activities

Shenzhen Rongyao

Real Estate

-21394349.33-21394349.33-132065318.90-23400642.21-23400642.21-33317053.14

Development Co.Ltd.Yangzhou Wuhe

Real Estate Co. -1995249.76 -1995249.76 -48773537.38 -473135.33 -473135.33 97048.38

Ltd.Yangzhou

Shouxihu Jingyue

Property 20845157.30 1368496.32 1368496.32 -186738.66 18564214.66 497456.52 497456.52 -2196922.04

Development Co.Ltd.Shenzhen Guomao

Shenlv Garden 10211925.25 2744117.50 2744117.50 2459431.35 7774594.39 -54237.49 -54237.49 -676213.24

Co. Ltd.Other notes:

(4) Significant restrictions on leveraging the assets and liquidating the liabilities of the business consortium

(5) Financial support or other support provided to structural entities incorporated into the scope of consolidated financial

statements

Other notes:

142ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023

2. The Transaction of the Company with Its Owner's Equity Share Changing but the Company Still

Controls the Subsidiary

(1) Note to the Owner's Equity Share Changed in Subsidiary

(2) The Transaction’s Influence on the Equity of Non-controlling Interests and the Owner's Equity Attributable to the

Company as the Parent

Unit: RMB

Purchase cost/disposal consideration

-Cash

-Fair value of non-cash assets

Total purchase cost/disposal consideration

Less: Share of net assets of subsidiaries based on percentage of

equity acquired/disposed of

Difference

Of which: Adjusting capital reserve

Adjusting surplus reserve

Adjusting retained profits

Other notes:

3. Equity in Joint Ventures or Associated Enterprises

(1) Significant Joint Ventures or Associated Enterprises

Shareholding percentage Accounting

Main (%) treatment of the

Name operating Place of investment to

place registration

Business nature joint venture or

Directly Indirectly associated

enterprise

Shenzhen Real Estate Jifa Warehousing Shenzhen Shenzhen WarehouseCo. Ltd. service 25.00% 25.00% Equity method

Tian’an International Building Property Property

Management Company of Shenzhen Shenzhen Shenzhen management 50.00% Equity method

CSCEC Intelligent Parking Technology Commercial

Co. Ltd. Shenzhen Shenzhen services 10.00% Equity method

Notes to holding proportion of joint venture or associated enterprise different from voting proportion:

Basis of holding less than 20% of the voting rights but has a significant impact or holding 20% or more voting rights but does not

have a significant impact:

(2) Main Financial Information of Significant Joint Ventures

Unit: RMB

Closing balance/amount of the current period Opening balance/amount of the previous period

Tian’an International Tian’an International

Shenzhen Jifa Building Property Shenzhen Jifa Building Property

Warehouse Co. Ltd. Management Company Warehouse Co. Ltd. Management Company

of Shenzhen of Shenzhen

Current assets 10055352.57 59891252.36 6110801.95 58848700.91

Of which: Cash and

cash equivalents 9263658.15 38883807.33 4923260.32 37841255.88

Non-current assets 85788615.62 42049.96 86342531.70 46757.57

Total assets 95843968.19 59933302.32 92453333.65 58895458.48

Current liabilities 2937049.65 29200886.66 2992163.07 28404537.12

143ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023

Non-current liabilities 16490720.38 16415016.74

Total liabilities 2937049.65 45691607.04 2992163.07 44819553.86

Equity of non-

controlling interests

Equity attributable to

shareholders of the 92906918.54 14241695.28 89461170.58 14075904.62

Company as the parent

Net assets shares

calculated at the 46453459.27 7120847.64 44730585.29 7037952.31

shareholding proportion

Adjusted items

- Goodwill

--Unrealized profit of

intra-company

transaction

--Other

Carrying value of

equity investment to 46453459.27 7120847.64 44730585.29 7037952.31

joint ventures

Fair values of equity

investments of joint

ventures with quoted

prices

Operating Revenue 6690430.68 8731790.54 4516455.33 8483323.41

Financial expenses -7666.55 43267.67 -5293.01 41255.86

Income tax expense 1154005.86 55263.55 523182.56 54163.40

Net profit 3445747.96 165790.66 1569547.71 149521.04

Net profit from

discontinued operations

Other comprehensive

income

Total comprehensive

income 3445747.96 165790.66 1569547.71 149521.04

Dividends received

from the joint venture

in the current period

Other notes:

(3) Main Financial Information of Significant Associated Enterprises

Unit: RMB

Closing balance/amount of the current Opening balance/amount of the previous

period period

CSCEC CSCEC

Current assets 267993271.29 235089462.02

Non-current assets 6672968.51 3014735.77

Total assets 274666239.80 238104197.79

Current liabilities 112739886.93 77303723.18

Non-current liabilities 34777.90 24777.90

Total liabilities 112774664.83 77333501.08

Equity of non-controlling interests

Equity attributable to shareholders of the 161891574.97 160770696.71

144ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023

Company as the parent

Net assets shares calculated at the

shareholding proportion 16189157.50 16077069.67

Adjusted items

- Goodwill

--Unrealized profit of intra-company

transaction

--Other

Carrying value of investment to

associated enterprises 16189157.50 16077069.67

Fair value of equity investments in

associated enterprises with publicly

quoted prices

Operating Revenue 48983120.89

Net profit 516190.10

Net profit from discontinued operations

Other comprehensive income

Total comprehensive income 516190.10

Dividends received from the associates in

the current period 63120.00

Other notes:

(4) Summary Financial Information of Insignificant Joint Ventures or Associated Enterprises

Unit: RMB

Closing balance/amount of the current Opening balance/amount of the previous

period period

Joint venture:

Sum calculated by shareholding ratio of

each item

Associated enterprises:

Sum calculated by shareholding ratio of

each item

Other notes:

(5) Note to the Significant Restrictions on the Ability of Joint Ventures or Associated Enterprises to

Transfer Funds to the Company

(6) The Excess Loss of Joint Ventures or Associated Enterprises

Unit: RMB

The cumulative recognized The derecognized losses (or The accumulative

Name losses in previous the share of net profit) in unrecognized losses in current

accumulatively derecognized current period period

Other notes:

(7) The Unrecognized Commitment Related to Investment to Joint Ventures

(8) Contingent Liabilities Related to Investment to Joint Ventures or Associated Enterprises

4. Significant Common Operation

Name Main operating Place of Business nature Proportion/Share portion

145ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023

place registration Directly Indirectly

Notes to holding proportion or share portion in common operation different from voting proportion:

For common operation as a single entity basis of classifying as common operation

Other notes:

5. Equity in the Structured Entity Excluded in the Scope of Consolidated Financial Statements

Notes to the structured entity excluded in the scope of consolidated financial statements:

6. Others

X. Risks Associated with Financial Instruments

The Company is engaged in risk management to achieve balance between risks and returns minimizing the negative effects of risks

on its operation performance and maximizing the interests of its shareholders and other equity investors. Based on that risk

management goal the fundamental strategy of its risk management is to identify and analyze various risks facing the Company

establish an appropriate risk bottom line carry out risk management and monitor various risks in a timely and reliable manner to

control them within a restricted scope.The Company faces various risks related to financial instruments in its routine activities mainly including credit risk liquidity risk

market risk. The management has reviewed and approved the policies of managing those risks which are summarized as follows.i. Classification of financial instruments

1. The carrying value of financial assets on the balance sheet date

(1) 30 June 2023

Financial assets Financial assets at fair value Financial assets measured at

Financial asset project measured at the through profit or loss for the fair value through other Total

amortized cost current period comprehensive income

Monetary assets 1392204627.76 1392204627.76

Notes receivable

Accounts receivable 416925839.15 416925839.15

Other receivables 624876343.49 624876343.49

Long-term receivables 21920095.92 21920095.92

Other equity investments 635355.65 635355.65

(2) 31 December 2022

Financial assets Financial assets at fair value

Financial assets at fair value

Item measured at and changes included in other Total

through profit or loss

amortized cost comprehensive income

Monetary capital 1517528893.83 1517528893.83

Notes receivable

Accounts receivable 419933915.30 419933915.30

146ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023

Financial assets Financial assets at fair value

Financial assets at fair value

Item measured at and changes included in other Total

through profit or loss

amortized cost comprehensive income

Other receivables 639903523.33 639903523.33

Long-term receivables 22651454.07 22651454.07

Other equity instrument

investments 887838.64 887838.64

2. The carrying value of financial liabilities on the balance sheet date

(1) 30 June 2023

Financial liabilities at fair Other financial

Item Total

value through profit or loss liabilities

497515760.20497515760.20

Accounts payable

1704126936.521704126936.52

Other payables

201663040.96201663040.96

Current portion of non-current liabilities

4172450268.174172450268.17

Long-term borrowings

(2) 31 December 2022

Financial liabilities at fair Other financial

Item Total

value through profit or loss liabilities

Accounts payable 608283388.52 608283388.52

Other payables 1515085832.45 1515085832.45

Current portion of non-current liabilities 196645408.45 196645408.45

Long-term borrowings 3618782344.00 3618782344.00

ii. Credit risk

Credit risk means the risk of financial losses incurred to the other party when one party of a financial instrument is unable to fulfill its

obligations.

1. Credit Risk Management Practice

(1) Credit Risk Evaluation Method

On each balance sheet date the Company shall evaluate whether the credit risk of relevant financial instruments has increased

significantly since the initial recognition. After determining whether the credit risk has increased significantly since the initial

recognition the Company shall consider obtaining reasonable and reliable information without paying unnecessary extra costs or

efforts including qualitative and quantitative analysis based on historical data external credit risk rating and forward-looking

information. On the basis of the single financial instrument or combination of financial instruments with similar credit risk

characteristics the Company compares the risk of default of financial instruments on the balance sheet date with the risk of default

on the initial recognition date to determine the change of default risk of financial instruments during their expected duration.When one or more of the following quantitative and qualitative criteria prevails the Company shall believe the credit risk of financial

instruments has increased significantly:

1) For the quantitative standard it can be mainly analyzed from the probability of default for the remaining duration on the balance

sheet date rises by more than a certain proportion compared with the initial confirmation.

2) For the qualitative standard it can be mainly analyzed from the major adverse changes in the debtor’s operation or financial

situation changes in existing or expected technology market economy or legal environment which shall have major adverse impacts

on the debtor’s repayment ability of the Company etc.

3) The upper limit is that the debtor’s contract payment (including principal and interest) is overdue for more than 90 days.

147ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023

(2) Definition of Default and Credit Impairment-Assets

When a financial instrument meets one or more of the following conditions the Company shall define the financial asset as having

defaulted and its criteria are consistent with the definition of having incurred credit impairment:

1) Quantitative Standard

The debtor fails to make the payment after the contract payment date for more than 90 days;

2) Qualitative Criteria

a. The debtor has major financial difficulties;

b. The debtor violates the binding provisions on the debtor in the contract;

c. The debtor is likely to go bankrupt or carry out other financial restructurings;

d. The creditor shall give the debtor concessions that will not be made in any other circumstances due to the economic or contractual

considerations related to the debtor’s financial difficulties.

2. Measurement of Expected Credit Loss

The key parameters for measuring expected credit loss included default probability loss given default and exposure at default. The

Company considers the quantitative analysis and forward-looking information of historical statistical data (such as counterparty

rating guarantee method collateral type repayment method etc.) to establish exposure models of default probability loss given

default and default risk.

3. Refer to Note VII-i VII-v VII-viii for details of the reconciliation statements of beginning balance and ending balance of financial

instrument loss provision.

4. Credit Risk Exposure and Credit Risk Concentration

The Company's credit risk mainly comes from monetary assets and accounts receivable. To control the aforementioned relevant risks

the Company has adopted the following measures.

(1) Monetary assets

The Company places its monetary assets with financial institutions of high credit ratings. Thus its credit risk is low.

(2) Accounts receivable

The Company conducts credit assessments on the customers trading in the mode of credit on a regular basis. Based on the credit

assessment result the Company chooses to trade with recognized customers with good credit and monitor the balance of the accounts

receivable from them to ensure that the Company will not face any significant bad debt risk.Due to the Company merely trades with the authorized third party with good credit the guarantee is not required. Credit risk

concentration is managed in accordance with the customers. As at 30 June 2023 there were certain credit concentration risks in the

Company and 43.64% of the accounts receivable of the Company (54.09% on 31 December 2022) came from the top 5 customers by

balance. The Company hasn’t held any guarantee or other credit enhancement for balance of accounts receivable.The maximum credit risk exposure the Company undertook shall be the carrying value of each financial asset on balance sheet.iii. Liquidity risk

Liquidity risk refers to the risk of fund shortage occurring when the Company fulfills the settlement obligation in the mode of cash

delivery or other financial assets. Liquidity risk may originate from the failure to sell financial assets at fair value as soon as possible;

or from the other party’s failure to pay off its contractual debts; or from the earlier maturity of debts; or from the failure to generate

the expected cash flow.To control the risk the Company comprehensively adopts bank loans as financing approach appropriately combines long-term and

short-term financing modes and optimizes the financing structure to maintain the balance between financing sustainability and

flexibility. The Company has obtained the line of credit from a number of commercial banks to satisfy its operation fund needs and

capital expenditure.Financial liabilities classified by remaining maturity

Amount at the end of this current period

Item

Carrying value Undiscountedcontract amount Within 1 year 1-3 years

More than three

years

Banking borrowings 4172450268.17 4537732044.74 200674442.04 3641854238.12 695203364.58

Accounts payable 497515760.20 497515760.20 497515760.20

Other payables 1704126936.52 1704126936.52 1691924260.48 12202676.04

Other non-current

liabilities due within 201663040.96 201663040.96 201663040.96

1 year

Total 6575756005.85 6941037782.42 2591777503.68 3641854238.12 707406040.62

(Continued)

Opening balance

Item

Carrying value Undiscountedcontract amount Within 1 year 1-3 years

More than three

years

Banking borrowings 3618782344.00 3998835011.38 190669039.72 3648297102.30 159868869.36

148ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023

Accounts payable 608283388.52 608283388.52 608283388.52

Other payables 1515085832.45 1515085832.45 1502883156.41 12202676.04

Current portion of

other non-current 196645408.45 196645408.45 196645408.45

liabilities

Total 5938796973.42 6318849640.80 2498480993.10 3648297102.30 172071545.40

iv. Market risk

Market risk refers to the risk of fluctuations in the fair value or future cash flows of financial instruments arising from changes in

market prices. Market risk mainly includes interest rate risk and foreign exchange risk.

1. Interest rate risk

Interest rate risk refers to the risk of fluctuations in the fair value or future cash flows of financial instruments arising from changes in

market interest rates. Interest-bearing financial instruments with fixed interest rates may bring the fair value interest rate risk to the

Company while those with floating interest rate may bring the cash flow interest rate risk to the Company. The Company will

determine the proportion between the financial instruments with fixed interest rate and those with floating interest rate in

combination with market environment and maintain an appropriate portfolio of financial instruments through regular review and

monitoring. The interest rate risk of cash flows facing the Company is mainly related to the bank loans calculated by floating interest

rate of the Company.As at 30 June 2023 under the assumption of other fixed variables with 50 basis points changed in interest rate the bank loan of

RMB4368583592.17 (RMB3809915668.00 on 31 December 2022) calculated at floating rate would not result in significant

influence on total profit and shareholders’ equity of the Company.

2. Foreign exchange risk

Foreign exchange risk refers to the risk that may lead to the changes of fair value of financial instruments or future cash flows due to

fluctuation in exchange rate. The risk of changes of exchange rate facing the Company is mainly related to foreign currency

monetary assets and liabilities of the Company. The Company operates in mainland China and the main activities are recorded by

RMB. Thus the foreign exchange market risk undertaken is insignificant for the Company.XI. Disclosure of Fair Value

1. Ending Fair Value of Assets and Liabilities at Fair Value

Unit: RMB

Closing fair value

Item Fair value measurement Fair value measurement Fair value measurement

items at level 1 items at level 2 items at level 3 Total

I. Consistent Fair Value

Measurement -- -- -- --

(III) Other equity instrument

investment 635355.65 635355.65

The total amount of assets

consistently measured at fair 635355.65 635355.65

value

II. Inconsistent Fair Value

Measurement -- -- -- --

2. Basis for Determining the Market Price of Continuous and Non-continuous Level 1 Fair Value

Measurement Items

The other equity instrument held by the Company was shares of listed companies whose fair value was

determined based on the closing price on the stock exchange as of 30 June 2023.

3. Continuous and Non-continuous Level 2 Fair Value Measurement Items Valuation Techniques Used and

The Qualitative and Quantitative Information of Important Parameters

4. Continuous and Non-continuous Level 3 Fair Value Measurement Items Valuation Techniques Used and

The Qualitative and Quantitative Information of Important Parameters

149ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023

5. Continuous and Non-continuous Level 3 Fair Value Measurement Items Information On The

Adjustment Between The Opening and Closing Carrying Value and Sensitivity Analysis of Unobservable

Parameters

6. Explain the Reason for Conversion and the Governing Policy when the Conversion Happens if

Conversion Happens among Consistent Fair Value Measurement Items at Different Levels

7. Changes in the Valuation Technique in the Current Period and the Reason for Such Changes

8. The Fair Value of Financial Assets and Financial Liabilities not Measured at Fair Value

9. Others

XII. Related Party and Related-party Transactions

1. Information Related to the Company as the Parent of the Company

Proportion of share Proportion of

Name of the Place of held by the

voting rights

Company as the registration Business nature Registered capital Company as the

owned by the

parent parent against the Company as the

Company (%) parent against theCompany (%)

Shenzhen Limited liability

Investment Shenzhen company (solely- RMB31859 56.96% 56.96%

Holdings Co. Ltd. owned by the state) million

Notes: Information on the Company as the parent

(1) The parent company of the Company is Shenzhen Investment Holdings Co. Ltd. (hereinafter referred to as “SIHC”) a newly-

established and organized state-owned capital investment company based on the original three state-owned assets management

companies in October 2004 and its main function is to manage the partial municipal state-owned companies according to the

authorization of Municipal SASAC. As a government department Shenzhen State-owned Assets Supervision and Administration

Bureau manages Shenzhen Investment Holdings Co. Ltd. on behalf of People’s Government of Shenzhen Municipality.

(2) During the Reporting Period SIHC the controlling shareholder of the Company transferred 38037890 ordinary shares of the

Company in unlimited circulation (representing 6.382% of the total share capital of the Company) held by SIHC to Shenzhen State-

owned Equity Management Co. Ltd. for free to replenish the social security funds. Shenzhen State-owned Equity Management Co.Ltd. is a newly established wholly-owned subsidiary of SIHC to manage the transferred state-owned equity in a special account.After the registration of the free transfer SIHC held 301414637 shares of the Company accounting for 50.575% of the total share

capital of the Company and Shenzhen State-owned Equity Management Co. Ltd. held 38037890 shares of the Company

accounting for 6.382% of the total share capital of the Company.The final controller of the Company is Shenzhen State-owned Assets Supervision and Administration Committee of Shenzhen

Government.Other notes:

2. Subsidiaries of the Company

Refer to Note IX-1.

3. Information on the Joint Ventures and Associated Enterprises of the Company

Refer to Note IX-3.Information on other joint venture or associated enterprise of occurring related-party transactions with the Company in Current

Period or forming balance due to related-party transactions made in previous period:

Name Relationship with the Company

Other notes:

4. Information on Other Related Parties

Name of other related party Relationship with the Company

Shenzhen Xinhai Holding Co. Ltd. The Company as the parent of Xinhai Rongyao of subsidiaryRongyao Real Estate by non-controlling interests

Shenzhen Xinhai Rongyao Real Estate Development Co. Ltd. Subsidiary Rongyao Real Estate by non-controlling interests

150ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023

Yangzhou Lvfa Real Estate Co. Ltd. Subsidiary Yangzhou Wuhe by non-controlling interests

Shenzhen Wufang Ceramics Industrial Co. Ltd. Associated enterprise of the Company

Shenzhen Real Estate Jifa Warehousing Co. Ltd. Joint venture of the Company

Tian’an International Building Property Management Company

of Shenzhen Joint venture of the Company

Shenzhen Shenfubao (Group) Co. Ltd. Wholly-owned subsidiary of the Company as the parent of theCompany

Shenzhen Xiangmihu International Exchange Center Wholly-owned subsidiary of the Company as the parent of the

Development Co. Ltd. Company

Shenzhen Bay Area Urban Construction and Development Co. Wholly-owned subsidiary of the Company as the parent of the

Ltd. Company

Shenzhen Environmental Protection Technology Group Co. Ltd. Subsidiary of the Company as the parent of the Company

Shenzhen Shenzhen Hong Kong Science and Technology

Innovation Cooperation Zone Development Co. Ltd. Subsidiary of the Company as the parent of the Company

Shenzhen Bay Technology Development Co. Ltd. Wholly-owned subsidiary of the Company as the parent of theCompany

Shenzhen Guarantee Group Co. Ltd. Subsidiary of the Company as the parent of the Company

Shenzhen Infinova Limited Subsidiary of the Company as the parent of the Company

Shenzhen Convention & Exhibition Center Management Co. Wholly-owned subsidiary of the Company as the parent of the

Ltd. Company

Shenzhen Sports Center Operation Management Co. Ltd. Wholly-owned subsidiary of the Company as the parent of theCompany

China Shenzhen Foreign Trade (Group) Corp. Ltd. Wholly-owned subsidiary of the Company as the parent of theCompany

Shenzhen Special Economic Zone Real Estate & Properties

(Group) Co. Ltd. and its consolidated subsidiaries except where Subsidiary of the Company as the parent of the Company

the context otherwise requires

GUOREN PROPERTYAND CASUALTY INSURANCE CO.LTD. Subsidiary of the Company as the parent of the Company

Shenzhen Branch of GUOREN PROPERTYAND CASUALTY

INSURANCE CO. LTD. Parent company’s sub-subsidiary

Shenzhen Shentou Property Development Co. Ltd. Wholly-owned subsidiary of the Company as the parent of theCompany

Shenzhen General Institute of Architectural Design and Research Wholly-owned subsidiary of the Company as the parent of the

Co. Ltd. Company

Shenzhen Water Planning and Design Institute Co. Ltd. Subsidiary of the Company as the parent of the Company

Shenzhen Large Industrial Zone (Shenzhen Export Processing Wholly-owned sub-subsidiary of the Company as the parent of

Zone) Development Management Group Co. Ltd. the Company

Shenzhen Fubao Industrial Park Operation Co. Ltd. Wholly-owned sub-subsidiary of the Company as the parent ofthe Company

Shenzhen Shenfubao Eastern Investment Development Co. Ltd. Wholly-owned sub-subsidiary of the Company as the parent ofthe Company

Shenzhen Shenfubao (Group) Tianjin Industrial Development Wholly-owned sub-subsidiary of the Company as the parent of

Co. Ltd. the Company

Shenzhen Bay Area International Hotel Co. Ltd. Wholly-owned sub-subsidiary of the Company as the parent ofthe Company

Shenzhen SME Venture Capital Co. Ltd. Wholly-owned sub-subsidiary of the Company as the parent ofthe Company

Shenzhen Hi-tech Zone Development Construction Co. Ltd. Wholly-owned sub-subsidiary of the Company as the parent ofthe Company

Shenzhen Bay (Baoding) Innovation Development Co. Ltd. Wholly-owned sub-subsidiary of the Company as the parent ofthe Company

Shenyue United Investment Co. Ltd. Wholly-owned sub-subsidiary of the Company as the parent of

151ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023

the Company

Shenzhen Shenfubao (Group) Tianjin Investment Development Wholly-owned sub-subsidiary of the Company as the parent of

Co. Ltd. the Company

Shenzhen Shantou Special Cooperation Zone Branch of Shenzhen Wholly-owned sub-subsidiary of the Company as the parent of

Water Planning and Design Institute Co. Ltd. the Company

Shenzhen Infinova Smart Park Technology Co. Ltd. Wholly-owned sub-subsidiary of the Company as the parent ofthe Company

Shenzhen Meibainian Garment Co. Ltd. Wholly-owned sub-subsidiary of the Company as the parent ofthe Company

Shenzhen Tianjun Industrial Co. Ltd. Parent company’s grandson company

Shenzhen Shendan Credit Enhancement Financing Guarantee

Co. Ltd. Parent company’s grandson company

Shenzhen Foreign Service Group Co. Ltd. Wholly-owned sub-subsidiary of the Company as the parent ofthe Company

Shenzhen Free Trade Zone Life Service Co. Ltd. Parent company’s grandson company

Hebei Shenbao Investment Development Co. Ltd. Parent company’s grandson company

Shenzhen Bay Wanli Hotel Branch of Shenzhen Wuzhou Hotel Wholly-owned sub-subsidiary of the Company as the parent of

Management Co. Ltd. the Company

Shenzhen Bay Wanyi Hotel Branch of Shenzhen Wuzhou Hotel Wholly-owned sub-subsidiary of the Company as the parent of

Management Co. Ltd. the Company

Shenzhen Infinova Renyong Information Co. Ltd. Wholly-owned sub-subsidiary of the Company as the parent ofthe Company

Shenzhen Total Logistics Service Co. Ltd. Parent company’s grandson company

Shenzhen SDG Service Co. Ltd. Parent company’s grandson company

Research Institute of Tsinghua University in Shenzhen Parent company’s subsidiary

Wholly-owned sub-subsidiary of the Company as the parent of

Shenzhen Talent Recruitment International Co. Ltd.the Company

Wholly-owned subsidiary of the Company as the parent of the

Shenzhen People's Congress Cadre Training Center

Company

Wholly-owned sub-subsidiary of the Company as the parent of

Shenzhen Rule of Law Training Center

the Company

Shenzhen South Certification Co. Ltd. Parent company's sub-subsidiary

Shenzhen Properties Group (SPG) Longgang Development Co.Parent company's sub-subsidiary

Ltd.Shenzhen Eternal Asia Deep Supply Chain Management Co. Ltd. Parent company's sub-subsidiary

Shenzhen Petrel Hotel Co. Ltd. Parent company's sub-subsidiary

Wholly-owned sub-subsidiary of the Company as the parent of

Shenzhen Cultural Business Development Co. Ltd.the Company

Shenzhen Construction Development (Group) Company Subsidiary of the Company as the parent of the Company

China Kunpeng Industry Source Innovation Center (Shenzhen) Wholly-owned sub-subsidiary of the Company as the parent of

Co. Ltd. the Company

Wholly-owned sub-subsidiary of the Company as the parent of

Shenzhen Special Zone Literature Magazine Co. Ltd.the Company

Shenzhen Investment Holdings Development Co. Ltd. Parent company's sub-subsidiary

Wholly-owned sub-subsidiary of the Company as the parent of

Shenzhen Transportation Station Development Co. Ltd.the Company

Shenzhen High-tech Invest and Venture Capital Co. Ltd. Parent company's sub-subsidiary

Shenzhen Xingye Logistics Co. Ltd. Parent company's sub-subsidiary

Wholly-owned sub-subsidiary of the Company as the parent of

Shenzhen Investment Building Hotel Co. Ltd.the Company

Shantou Huafeng Real Estate Development Co. Ltd. Parent company's sub-subsidiary

Shantou Hualin Real Estate Development Co. Ltd. Parent company's sub-subsidiary

152ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023

Shantou Branch of Shenzhen Special Economic Zone Real Estate

Parent company's sub-subsidiary

& Properties (Group) Co. Ltd.Guangdong Jianbang Group (Huiyang) Industrial Co. Ltd. Parent company's sub-subsidiary

Other notes:

5. List of Related-party Transactions

(1) Information on Acquisition of Goods and Reception of Labor Service

Information on acquisition of goods and reception of labor service

Unit: RMB

Content of the

Related parties related-party Amount for the The approval trade Whether exceed Amount for the

transaction current period credit trade credit or not previous period

Shenzhen Bay

Technology Management

Development Co. service fee 37673707.61 81600000.00 No 43219580.55

Ltd.Shenzhen General

Institute of Project

Architectural Design architectural 2809568.52

and Research Co. design service

Ltd.Shenzhen Branch of

GUOREN

PROPERTYAND Insurance 1647215.68 2582000.00 No 909945.52

CASUALTY

INSURANCE CO.LTD.Shenzhen Shendan

Credit Enhancement Guarantee fee 1061950.00

Financing Guarantee

Co. Ltd.Shenzhen Guarantee

Guarantee fee 13656.60

Group Co. Ltd.Shenzhen Shenfubao

Catering service 71780.00 26911.00

(Group) Co. Ltd.Shenzhen Special

Economic Zone

Management

Real Estate & 1262625.00

service fee

Properties (Group)

Co. Ltd.Shenzhen Foreign

Outsourcing

Service Group Co. -521707.00 2650014.74

service charges

Ltd.Shenzhen

Meibainian Garment Apparel

Co. Ltd. procurement

2241.00

Shenzhen Water

Consultant service

Planning and Design 53320.00

expense

Institute Co. Ltd.Shenzhen SDG Property service

107804.2629165.85

Service Co. Ltd. fee

Shenzhen Talent

Recruitment Recruitment

51686.00

International Co. service fee

Ltd.Shenzhen People's Training service

1780.00378811.00

Congress Cadre fee

153ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023

Training Center

Shenzhen Rule of Training service

2070.00

Law Training Center fee

Shenzhen South

Consultant service

Certification Co. 24528.30

expense

Ltd.Shenzhen Properties

Group (SPG)

Management

Longgang 1088750.00 1033370.00

service fee

Development Co.Ltd.Shenzhen Eternal

Asia Deep Supply Beverage

41916.0029940.00

Chain Management procurement

Co. Ltd.Shenzhen Infinova

Intelligent

Renyong

engineering 358900.00

Information Co.expense

Ltd.Information of sales of goods and provision of labor service

Unit: RMB

Content of the

Related parties related-party Amount for the current period Amount for the previous

transaction period

Shenzhen Branch of GUOREN PROPERTY Property service

AND CASUALTY INSURANCE CO. LTD. fee 170719.10

Hebei Shenbao Investment Development Project payment

Co. Ltd. for water and 23027002.91 6583247.61electricity

Hebei Shenbao Investment Development Property service

Co. Ltd. fee 7099846.48 4607506.85

Shenyue United Investment Co. Ltd. Property servicefee 406380.98 241740.58

Shenzhen Guarantee Group Co. Ltd. Property servicefee 2084729.13

Shenzhen Hi-tech Zone Development Property service

Construction Co. Ltd. fee 1404545.54 875587.86

Shenzhen Convention & Exhibition Center Property service

Management Co. Ltd. fee 2753262.17 1884845.11

ShenZhen Special Economic Zone Real

Estate & Properties (Group) Co. Ltd. and its Property service

consolidated subsidiaries except where the fee 16981.15 1326301.15

context otherwise requires

Shenzhen Total Logistics Service Co. Ltd. Property servicefee 2986212.81 1530379.26

Shenzhen Shenzhen Hong Kong Science and

Technology Innovation Cooperation Zone Property service

Development Co. Ltd. fee

531066.72516023.58

Shenzhen Large Industrial Zone (Shenzhen Project payment

Export Processing Zone) Development for water and 232110.15 1359633.03

Management Group Co. Ltd. electricity

Shenzhen Large Industrial Zone (Shenzhen

Export Processing Zone) Development Property servicefee 37938.18 36227.22Management Group Co. Ltd.Shenzhen Fubao Industrial Park Operation Project payment

Co. Ltd. for water and 4954.72 87654.97electricity

154ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023

Shenzhen Fubao Industrial Park Operation Property service

Co. Ltd. fee 36566.00 41148.39

Shenzhen Environmental Protection Project payment

Technology Group Co. Ltd. for water and 90016.79 41030.00electricity

Shenzhen Environmental Protection Property service

Technology Group Co. Ltd. fee 3031960.52 2642172.56

Shenzhen Shenfubao (Group) Tianjin Project payment

Industrial Development Co. Ltd. for water and 46550.75electricity

Shenzhen Shenfubao (Group) Tianjin Property service

Investment Development Co. Ltd. fee 800000.00 3529946.35

Project payment

Shenzhen Shenfubao (Group) Co. Ltd. for water and 2538287.16 1064220.19

electricity

Shenzhen Shenfubao (Group) Co. Ltd. Property servicefee 1626536.11 2957378.73

Shenzhen Shenfubao Eastern Investment Project payment

Development Co. Ltd. for water and 53761.47electricity

Shenzhen Shenfubao Eastern Investment Property service

Development Co. Ltd. fee 78872.95 38550.76

Shenzhen Shantou Special Cooperation Zone

Branch of Shenzhen Water Planning and Property servicefee 11025.00 11025.00Design Institute Co. Ltd.Shenzhen Sports Center Operation Property service

Management Co. Ltd. fee 2224191.34

Project payment

Shenzhen Investment Holdings Co. Ltd. for water and 352220.28

electricity

Shenzhen Investment Holdings Co. Ltd. Property servicefee 3160290.91 7169148.87

Shenzhen Bay Area International Hotel Co. Property service

Ltd. fee 5408353.56 14100000.00

Shenzhen Bay Wanli Hotel Branch of

Shenzhen Wuzhou Hotel Management Co. Property servicefee 184818.24Ltd.Shenzhen Bay Wanyi Hotel Branch of

Shenzhen Wuzhou Hotel Management Co. Property servicefee 117789.97Ltd.Shenzhen SME Venture Capital Co. Ltd. Property servicefee 654516.23

Shenzhen Bay (Baoding) Innovation Property service

Development Co. Ltd. fee 284223.66 163100.40

Shenzhen Bay Technology Development Co. Property service

Ltd. fee 33767155.69 19066931.69

Shenzhen Bay Area Urban Construction and Property service

Development Co. Ltd. fee 1113311.43 1323523.65

Shenzhen Xiangmihu International Exchange

Center Development Co. Ltd. Project payment 699857.70

Shenzhen Xiangmihu International Exchange Project payment

Center Development Co. Ltd. for water and 3355528.67 1211630.16electricity

Shenzhen Infinova Limited Property servicefee 207342.68 117241.67

Shenzhen Infinova Smart Park Technology Software service

Co. Ltd. expense 143838.00

155ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023

China Shenzhen Foreign Trade (Group) Property service

Corp. Ltd. fee 1337989.45

China Shenzhen Foreign Trade (Group) Supervision

Corp. Ltd. service fee 332075.47

Shenzhen Tsinghua University Research Property service

Institute fee 497261.99 508363.77

Property service

Shenzhen Xingye Logistics Co. Ltd. 5504.59

fee

Shenzhen Investment Building Hotel Co. Supervision

35377.36

Ltd. service fee

China Kunpeng Industry Source Innovation Property service

687677.12209433.96

Center (Shenzhen) Co. Ltd. fee

Shenzhen Special Zone Literature Magazine Property service

25692.4824826.42

Co. Ltd. fee

Shenzhen Investment Holdings Development Property service

56628.6146157.46

Co. Ltd. fee

Shenzhen Cultural Business Development Property service

187580.44215394.13

Co. Ltd. fee

Shenzhen Talent Recruitment International Property service

186707.86167823.58

Co. Ltd. fee

Shenzhen Construction Development Property service

85617.9285786.57

(Group) Company fee

Property service

Shenzhen South Certification Co. Ltd. 30931.60 30875.00

fee

Shenzhen High-tech Invest and Venture Property service

279021.13

Capital Co. Ltd. fee

Shantou Huafeng Real Estate Development Property service

1167500.691200494.18

Co. Ltd. fee

Shantou Hualin Real Estate Development Property service

1761.75

Co. Ltd. fee

Shantou Branch of Shenzhen Special

Property service

Economic Zone Real Estate & Properties 219.45

fee

(Group) Co. Ltd.Property service

Shenzhen Petrel Hotel Co. Ltd. 150943.40 169811.35

fee

Guangdong Jianbang Group (Huiyang) Property service

102532.66

Industrial Co. Ltd. fee

Notes to acquisition of goods and reception of labor service

(2) Information on Related-party Trusteeship/Contract

Lists of trusteeship/contract of the Company:

Unit: RMB

Name of the IncomeName of the

entruster/contractee entrustee/ Type Start date Due date

Pricing recognized in

contractor basis this currentperiod

Shenzhen Shentou ShenZhen

Property Properties &

Development Co. Resources

Investment Market

Development properties

6 November 2019 5 November 2025 pricing 30678719.66

Ltd. (Group) Ltd.Shenzhen

Shenzhen Shenfubao

Shenfubao (Group) Hydropower Property 1 January 2023 31 December 2023 Market 1191399.36

Co. Ltd. Municipal pricing

Service Co. Ltd.Notes:

156ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023

Lists of entrust/contractee

Unit: RMB

Charge

Name of the Name of the

entruster/contractee entrustee/ Type Start date Due date Pricing basis

recognized in

contractor this currentperiod

Notes:

(3) Information on Related-party Lease

The Company was lessor:

Unit: RMB

Name of lessee Category of leased assets The lease income confirmed The lease income confirmedin the current period in the previous period

Shenzhen Bay Wanli Hotel

Branch of Shenzhen Wuzhou Investment properties 906136.48 957280.87

Hotel Management Co. Ltd.Shenzhen Bay Wanyi Hotel

Branch of Shenzhen Wuzhou Investment properties 656167.79 693203.39

Hotel Management Co. Ltd.The Company was lessee:

Unit: RMB

Variable lease

Rental expense of payments that are

simplified short-term not covered in the Interest expense on Added right-of-use

leases and low-value asset measurement of the Rent payable lease liabilities borne assets

Category of leases (if applicable) lease liabilities (if

Name of lessor leased applicable)

assets

Amount for Amount for Amount Amountfor the for the Amount for Amount for

Amount Amount Amount Amount

the current the previous the current the previous for the for the for the for the

period period current previous period period current previous current previousperiod period period period period period

Shenzhen

Shentou

Property Investmentproperties 341790.05 132734.00 32655.78 57353.26Development

Co. Ltd.Shenzhen Hi-

tech Zone

Development Investmentproperties 54243.00 4765.04Construction

Co. Ltd.Shenzhen

Large

Industrial Zone

(Shenzhen

Export

Processing Investmentproperties 7381.56Zone)

Development

Management

Group Co.Ltd.ShenZhen

Special

Economic

Zone Real

Estate &

Properties Investment

(Group) Co. properties 104000.00 435714.27 330000.00 44091.30

Ltd. and its

consolidated

subsidiaries

except where

the context

157ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023

otherwise

requires

Shenzhen

Investment

Petrel Hotel 24048.77 14898.50

property

Co. Ltd.Notes:

(4) Information on Related-party Guarantee

The Company was guarantor:

Unit: RMB

Secured party Amount of guarantee Start date End date Executionaccomplished or not

The Company was secured party

Unit: RMB

Guarantor: Amount of guarantee Start date End date Executionaccomplished or not

Guoren P&C 82093413.89 26 June 2022 30April 2024 Not

Shenzhen Shendan

Zengxin Financing 16750000.00 29 March 2022 28 March 2025 Not

Guarantee Co. Ltd.Shenzhen Shendan

Zengxin Financing 36850000.00 29 March 2022 28 March 2026 Not

Guarantee Co. Ltd.Shenzhen Shendan

Zengxin Financing 13400000.00 29 March 2022 28 March 2027 Not

Guarantee Co. Ltd.Shenzhen Credit

Guarantee Group Co. 2895117.51 1 May 2022 1 May 2023 Yes

Ltd.Notes:

(5) Information on Inter-bank Lending of Capital of Related Parties

Unit: RMB

Related parties Amount Start date Maturity date Note

Borrowing

Lending

(6) Information on Assets Transfer and Debt Restructuring by Related Party

Unit: RMB

Related parties Content of the related- Amount for the current Amount for the previousparty transaction period period

(7) Information on Remuneration for Key Management Personnel

Unit: RMB

Item Amount for the current period Amount for the previous period

Remuneration for key management

personnel 5467228.36 5059171.07

(8) Other Related-party Transactions

6. Accounts Receivable and Payable of Related Party

(1) Accounts Receivable

Unit: RMB

158ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023

Ending balance Beginning balance

Project name Related parties

Carrying amount Bad debt provision Carrying amount Bad debt provision

Accounts Hebei Shenbao Investment

receivable Development Co. Ltd. 29580856.88 887425.71 15856697.13 475700.91

Shenyue United

Investment Co. Ltd. 1880281.69 89321.49 1545493.83 46364.81

Shenzhen Guarantee

Group Co. Ltd. 69764.97 2092.95

Shenzhen Hi-tech Zone

Development Construction 2955686.43 255635.55 3292961.84 177657.15

Co. Ltd.Shenzhen Convention &

Exhibition Center 311415.85 23213.48 1379512.79 55256.38

Management Co. Ltd.ShenZhen Special

Economic Zone Real

Estate & Properties

(Group) Co. Ltd. and its 10072563.13 1252620.81 10072563.13 674112.86

consolidated subsidiaries

except where the context

otherwise requires

Shenzhen Total Logistics

Service Co. Ltd. 842576.52 25277.30 779745.46 23392.36

Shenzhen Shenzhen Hong

Kong Science and

Technology Innovation 114435.00 3433.05

Cooperation Zone

Development Co. Ltd.Shenzhen Large Industrial

Zone (Shenzhen Export

Processing Zone) 1063169.24 82335.08 1811138.85 104774.17

Development Management

Group Co. Ltd.Shenzhen Fubao Industrial

Park Operation Co. Ltd. 306960.04 9208.80 307714.39 9231.43

Shenzhen Environmental

Protection Technology 2325047.53 69751.43 1331881.42 39956.44

Group Co. Ltd.Shenzhen Shenfubao

(Group) Tianjin Industrial 917263.67 66998.66 917263.67 66998.66

Development Co. Ltd.Shenzhen Shenfubao

(Group) Tianjin Investment 3254324.58 112615.34 2454324.58 88615.34

Development Co. Ltd.Shenzhen Shenfubao

(Group) Co. Ltd. 4153519.42 159605.58 3699118.44 145973.55

Shenzhen Shenfubao

Eastern Investment 13983.54 419.51 55.70 1.67

Development Co. Ltd.Shenzhen Shentou

Property Development Co. 3607013.37 108210.40 1500297.75 45008.93

Ltd.Shenzhen Investment

Holdings Co. Ltd. 3991522.56 139974.08 6623892.25 218945.16

Shenzhen Bay Area

International Hotel Co. 51312666.65 1539380.00

Ltd.

159ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023

Shenzhen Bay (Baoding)

Innovation Development 156427.62 4692.83 116061.39 3481.84

Co. Ltd.Shenzhen Bay Technology

Development Co. Ltd. 107824285.09 6746937.22 131203332.93 3936099.99

Shenzhen Bay Area Urban

Construction and 220039.50 6601.19

Development Co. Ltd.Shenzhen Xiangmihu

International Exchange

Center Development Co. 1743182.23 52295.47 811111.70 24333.35

Ltd.Shenzhen Infinova Smart

Park Technology Co. Ltd. 140000.00 9600.00 320000.00 9600.00

Shenzhen Tsinghua

University Research 84632.14 3393.22 113107.19 3393.22

Institute

China Shenzhen Foreign

607166.5018215.00

Trade (Group) Corp. Ltd.China Kunpeng Industry

Source Innovation Center 366352.02 10990.56 226669.33 6800.08

(Shenzhen) Co. Ltd.Shenzhen Special Zone

Literature Magazine Co. 27234.00 817.02

Ltd.Shenzhen Investment

Holdings Development 9675.93 217.56 7251.89 217.56

Co. Ltd.Shenzhen Bay Wanli Hotel

Branch of Shenzhen

846991.6925409.75

Wuzhou Hotel

Management Co. Ltd.Shenzhen Bay Wanyi

Hotel Branch of Shenzhen

452061.0213561.83

Wuzhou Hotel

Management Co. Ltd.Shenzhen Infinova Limited 11792.64 353.78

Shenzhen Talent

Recruitment International 41516.85 1245.51

Co. Ltd.Shenzhen South

7986.28239.59

Certification Co. Ltd.Shenzhen Transportation

Station Development Co. 4608.64 138.26

Ltd.Shenzhen High-tech Invest

and Venture Capital Co. 50.00 5.00 50.00 1.50

Ltd.Total 177820186.60 10177326.98 235867112.28 7700823.36

Contract Hebei Shenbao Investment

298930.06373225.04

assets Development Co. Ltd.Shenzhen Large Industrial

Zone (Shenzhen Export

Processing Zone) 337422.67 337422.67

Development Management

Group Co. Ltd.

160ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023

Shenzhen Fubao Industrial

26457.1526457.15

Park Operation Co. Ltd.Shenzhen Environmental

Protection Technology 28385.93

Group Co. Ltd.Shenzhen Shenfubao

43500.0043500.00

(Group) Co. Ltd.Shenzhen Shenfubao

Eastern Investment 14649.15 14649.15

Development Co. Ltd.Shenzhen Investment

139004.56139004.56

Holdings Co. Ltd.Shenzhen Bay Area Urban

Construction and 50169.55 50169.55

Development Co. Ltd.Shenzhen Xiangmihu

International Exchange

46418.8646418.86

Center Development Co.Ltd.Total 956552.00 1059232.91

Other Shenzhen Hi-tech Zone

receivables Development Construction 199678.53 10458.60 121714.92 5080.85Co. Ltd.ShenZhen Special

Economic Zone Real

Estate & Properties

(Group) Co. Ltd. and its 100000.00 10000.00 100000.00 10000.00

consolidated subsidiaries

except where the context

otherwise requires

Shenzhen Large Industrial

Zone (Shenzhen Export

Processing Zone) 102583.54 3077.51 2583.54 77.51

Development Management

Group Co. Ltd.Shenzhen Qianhai

Advanced Information 10720575.27 321617.26 10720575.27 321617.26

Service Co. Ltd.1

Shenzhen Shenfubao

Eastern Investment 350000.00 10500.00

Development Co. Ltd.Shenzhen Shentou

Property Development Co. 81233.00 81233.00 81233.00 81233.00

Ltd.Shenzhen Investment

Holdings Co. Ltd. 685740.90 157127.32 685740.90 112893.70

Shenzhen Xinhai Holding

Co. Ltd. 201499990.18 6044999.71 201499990.18 6044999.71

Shenzhen Xinhai Rongyao

Real Estate Development 375068984.55 11252069.54 375068984.55 11252069.54

Co. Ltd.Shenzhen Tianjun

Industrial Co. Ltd. 10000000.00 10000000.00

Shenzhen Bay Technology

Development Co. Ltd. 16342327.84 490269.84 4159687.50 124790.63

Shenzhen Wufang

Ceramics Industrial Co. 1747264.25 1747264.25 1747264.25 1747264.25

Ltd.

161ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023

China Shenzhen Foreign

Trade (Group) Corp. Ltd. 3734.83 373.48

Shenzhen Convention &

Exhibition Center 1000.00 30.00

Management Co. Ltd.Total 616899378.06 20128647.03 604191508.94 19700399.93

Note 1: The other receivables of the Company to Shenzhen Qianhai Advanced Information Service Co. Ltd. (hereinafter referred to

as “Qianhai Advanced”) are advance money paid in advance due to the demolition of Lanhushidai Project. According to the joint and

several guarantee commitment letter signed by Shenzhen Xinhai Rongyao Real Estate Development Co. Ltd. Xinhai Rongyao is

jointly and severally liable for the tax and interest advanced by the Company. Out of prudence the Company's transactions to

Qianhai Advanced are disclosed.

(2) Accounts Payable

Unit: RMB

Project

name Related parties Ending carrying amount Beginning carrying amount

Accounts

payable Shenzhen Shentou Property Development Co. Ltd. 891120.88 787002.77

Shenzhen Infinova Renyong Information Co. Ltd. 25203.84 25203.84

Shenzhen General Institute of Architectural Design

and Research Co. Ltd. 527200.00 1199653.20

Shenzhen SDG Service Co. Ltd. 282144.00 282144.00

Total 1725668.72 2294003.81

Other

payables Shenzhen Guarantee Group Co. Ltd. 1494841.29 1494841.29

Shenzhen Free Trade Zone Life Service Co. Ltd. 4850.00 4850.00

Shenzhen Fubao Industrial Park Operation Co. Ltd. 6951.26 11579.00

Shenzhen Shenfubao (Group) Co. Ltd. 2835952.63 2503870.62

Shenzhen Shentou Property Development Co. Ltd. 8793493.79 10126517.16

Shenzhen Bay Wanli Hotel Branch of Shenzhen

Wuzhou Hotel Management Co. Ltd. 687525.00 687525.00

Shenzhen Bay Wanyi Hotel Branch of Shenzhen

Wuzhou Hotel Management Co. Ltd. 562521.00 562521.00

Shenzhen SME Venture Capital Co. Ltd. 339760.59

Shenzhen Bay Technology Development Co. Ltd. 154415543.77 179966045.36

Shenzhen Bay Area Urban Construction and

Development Co. Ltd. 360752.18 360752.18

Shenzhen Infinova Limited 144219.02 144219.02

China Shenzhen Foreign Trade (Group) Corp. Ltd. 132509.60 265018.43

Shenzhen Real Estate Jifa Warehousing Co. Ltd. 42296665.14 42296665.14

Tian’an International Building Property

Management Company of Shenzhen 5214345.90 5214345.90

Shenzhen Investment Holdings Co. Ltd. 868934.14

Shenzhen Foreign Service Group Co. Ltd. 1101949.83

Yangzhou Lvfa Real Estate Co. Ltd. 345072717.79 313705372.89

Shenzhen Cultural Business Development Co. Ltd. 773680.00 773680.00

Shenzhen Construction Development (Group)

152227.00152227.00

Company

162ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023

Shenzhen Talent Recruitment International Co. Ltd. 147132.37 147132.37

Shenzhen South Certification Co. Ltd. 34002.15 34002.15

Shenzhen Shenfubao Eastern Investment

225912.89

Development Co. Ltd.Total 563355842.78 560761809.07

7. Commitments of Related Party

8. Other

XIII. Stock Payment

1. The Overall Situation of Share-based Payments

□Applicable□ Not applicable

2. Equity-settled Share-based Payments

□Applicable□ Not applicable

3. Cash-settled Share-based Payments

□Applicable□ Not applicable

4. Modification and Termination of Share-based Payments

5. Others

XIV. Commitments and Contingency

1. Significant Commitments

Significant commitments on balance sheet date

Signed large amount contract under performing or to be performed

Item Amount of Current Period Same period of last year

Commitments signed but hasn’t been recognized in large

amount 2132088014.66 1034954205.35

2. Contingency

(1) Significant Contingency on Balance Sheet Date

(1) The action about transferring Jiabin Building contentious matter

In 1993 the Company signed Right of Development Transfer Contract of Jiabin Building with Shenzhen Jiyong Property

Development Co. Ltd. (hereinafter referred to as “Jiyong Company”). Since the contract was not effectively executed the Company

subsequently filed a series of lawsuits against the parties involved in the project but the outcome was not favorable to the Company.Therefore the Company calculated and withdrew bad-debt provisions for accounts receivable amounting to RMB93.81 million from

Jiyong Company in full in past years for the transfer of Jiabin Building. On 31 October 2018 Shenzhen Intermediate People’s Court

made a civil award and ruled that the Company's application for the bankruptcy of Jiyong Company would not be accepted. The

Company appealed against the ruling. On 29 April 2019 the Guangdong Provincial Higher People’s Court ruled to reject the

Company's appeal and maintain the original ruling. As of the issuance date of the report there is no new progress in the case.

(2) The arbitration case of property contract dispute of Software Park Phase I between the Fourth Owners’ Committee of Shenzhen

Nanshan District Software Park (Applicant) and Shenzhen ITC Technology Park Service Co. Ltd. (Respondent 1 hereinafter

referred to as the "ITC Technology Park Company") and its High-tech Zone Branch (Respondent 2) for Software Park I

In February and March 2021 High-tech Zone Branch of ITC Technology Park Company and Shenzhen ITC Technology Park

Service Co. Ltd. received arbitration notices respectively of the case [2021] Shenguozhongshou No. 541 and [2021]

Shenguozhongshou No. 1063. The Fourth Owners’ Committee of Shenzhen Nanshan District Software Park applied for the

following award: 1. Respondent 1 shall return RMB9893677.82 and fund occupation fee of RMB3272665.99 (temporarily

calculated from 1 July 2012 to 31 January 2021) totaling RMB13166343.81; Respondent 1 shall bear the attorney’s fee of

RMB30000.00; Respondent 2 shall return RMB31077017.59 and RMB635929.44 of fund occupation fee (temporarily calculated

from 1 July 2020 to 31 January 2021) totaling RMB31712947.03; Respondent 2 shall bear the attorney's fee of RMB300000.00.The total amount of the above is RMB45209290.84.On 21 August 2022 the Arbitration Tribunal held the second hearing to inquire about the audit report issued by the third-party

auditor and the details of the case on 5 September 2022 Jun & Partners responded to the Special Audit Report of Case No. 541 and

Case No. 1063. The arbitration awards on two cases were given on 23 and 24 March 2023 respectively. According to the conclusion

of arbitration awards the High-tech Zone Branch of Shenzhen ITC Technology Park Service Co. Ltd. should return approximately

163ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023

RMB540000 of public revenue to the Owners' Committee of Shenzhen Nanshan District Software Park (in spite of RMB32 million

requested by the Owners' Committee) and bear a part of arbitration fee; in regard to the arbitration case between the ITC Technology

Park Company and the Owners' Committee of Shenzhen Nanshan District Software Park all requests of the latter have been rejected

by the arbitration tribunal (in spite of RMB13 million requested by the Owners' Committee). The Owners' Committee which is

carrying out election of new members cannot provide any receipt account. Therefore the respondents are communicating with the

applicant's attorney on details of execution.

(3) Litigation case about Shenzhen Basepoint Intelligent Co. Ltd.

On 20 August 2017 Shenzhen Facility Management Community Technology Co. Ltd. signed Software Service Contract on China

Merchants Property Intelligent Facility Management Platform with China Merchants. Meanwhile the company procured a RMB3

million facility management system (consisting of 31 items) from Basepoint for the project. During delivery of the project only 11

items of the system delivered by Basepoint passed the acceptance inspection leaving the full delivery unfinished. Therefore the

Company failed to reach a consensus with Basepoint on payment and the latter sued the Company in 2021 making RMB3 million of

the Company's fund locked up. According to the judgment of first instance on 10 August 2022 the Company should compensate

RMB3 million to Basepoint. The Company refused to accept the first instance judgment and instituted an appeal for second instance

in 2022. The second instance is expected to start on 11 August 2023.

(4) Property management fee litigation case regarding Shenzhen Xuansheng Industrial Development Co. Ltd.

Haiwai Lianyi Building No. 12 Yingchun Road Luohu District Shenzhen City is partly owned by the United Front Work

Department of the Shenzhen Municipal Committee and Shenzhen Jinhailian Property Management Co. Ltd. is authorized by the

United Front Work Department of the Shenzhen Municipal Committee to manage the property. On 31 December 2006 Jinhailianand Shenzhen Xuansheng Industrial Development Co. Ltd. signed the Property Management Agreement of “Haiwai LianyiBuilding” which agreed that Xuansheng would provide property management services to Jinhailian and Jinhailian would pay the

corresponding property management fees to Xuansheng.On 7 January 2020 Xuansheng signed the Agreement with Jinhailian and the outsider Shenzhen Shengxin Hotel Management Co.Ltd. and agreed that the three parties reached an agreement on the management fee principal maintenance fee and electricity fee

owed to Xuansheng from 1 July 2017 to 31 December 2019 on the 5th-8th floor of Haiwai Lianyi Building by Jinhailian as follows:

1) The management fee principal The amount of maintenance fee and electricity fee is RMB696033.73; 2) Jinhailian will return the

above arrears repayment date before 22 January 2020; 3) Out of friendly relationship if Jinhailian cannot return the above arrears

before 22 January 2020 then Shengxin Hotel is willing to advance from the rent payable to Jinhailian; 4) If due to objective reasons

Shengxin Hotel cannot complete the lease surrender Xuansheng will refund this advance in total and Jinhailian will still return the

outstanding amount. However both Jinhailian and Shengxin Hotel failed to fulfill their payment obligations as agreed in the said

agreement. In this regard Xuansheng issued a Notice of Demand for Payment of Arrears on 13 January 2022 and an Attorney’s

Letter to Jinhailian on 15 August 2022 demanding to fulfill its obligation to pay a property management fee principal maintenance

fee and electricity fee totaling RMB696033.73. On 1 September 2022 Xuansheng appealed to the Shenzhen Luohu District

People’s Court.As of 31 December 2022 Jinhailian expects to pay RMB766612.52 (including: property management fee principal maintenance fee

and electricity fee totaling RMB696033.73 and overdue interest of RMB70578.79).On 12 January 2023 the People’s Court of Luohu District Shenzhen issued a judgment of first instance which ruled that Shenzhen

Jinhailian Property Management Co. Ltd. shall pay Shenzhen Xuansheng Industrial Development Co. Ltd. a total of

RMB696033.73 for a property management fee principal maintenance fee and electricity fee for the period from 1 July 2017 to 31

December 2019 and interest for late payment. Jinhailian appealed against the result of the first trial. During the second trial

conducted on line Shenzhen Intermediate People’s Court rejected all requests appealed by Jinhailian and upheld the judgment of the

first trial.

(5) Others

As a real estate developer the Company provides mortgage loan guarantees and pays loan deposits for commercial housing

purchasers according to the operation practice of the real estate industry. By 30 June 2023 the balance of the deposit not discharged

with guarantee was RMB63292452.99 which would be discharged when the mortgage loans are paid off.

(2) Explanation shall be given even if there is no significant contingency for the Company to disclose

There was no significant contingency in the Company to disclose.

3. Others

XV. Events after Balance Sheet Date

1. Significant Non-adjustment Matters

Unit: RMB

Influence number to the

Item Contents financial position and Reason of inability to estimate

operating results influence number

2. Distribution of Profit

3. Sales Return

164ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023

4. Notes to Other Events after Balance Sheet Date

XVI. Other Significant Events

1. The Accounting Errors Correction in Previous Period

(1) Retrospective Restatement

Unit: RMB

Name of the influenced report

Content Processing program items during comparison Accumulative impact

period

(2) Prospective Application

Content Processing program Reason for adopting prospectiveapplication

2. Debt Restructuring

3. Assets Replacement

(1) Non-monetary Assets Exchange

(2) Other Assets Replacement

4. Pension Plans

5. Discontinued Operations

Unit: RMB

Profit from

discontinued

Item Revenue Costs Total profit Income tax

operations

expense Net profit attributable toowners of the

Company as the

parent

Zhanjiang

Branch of

Shenzhen

Properties &

0.00-5073.0661355.830.0061355.8361355.83

Resources

Development

(Group) Ltd.deregistered

Other notes:

6. Segment Information

(1) Determination Basis and Accounting Policies of Reportable Segment

In accordance with the internal organization structure management requirements and internal report system the

Company identifies the reportable segment based on the business segment and assesses the operational

performance of real estate sales property management and catering service. The assets and liabilities sharing with

other segments shall be proportionally distributed among segments by scales.

(2) The Financial Information of Reportable Segment

Unit: RMB

Offset

Item Real estate Property management Leasing business among Total

segment

Operating Revenue 1053881874.68 773181325.02 78401433.15 1905464632.85

165ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023

Operating cost 695191661.52 635461652.02 41506570.71 1372159884.25

Total assets 13299291495.21 1710738121.43 489507593.11 15499537209.75

Total liabilities 10449500028.22 511639802.46 70574307.22 11031714137.90

(3) If there Was no Reportable Segment or the Total Amount of Assets and Liabilities of Each Reportable

Segment Could not Be Reported Relevant Reasons Shall Be Clearly Stated

(4) Other notes

7. Other Significant Transactions and Events with Influence on Investors’ Decision-making

8. Other

XVII. Notes of Main Items in the Financial Statements of the Company as the Parent

1. Accounts Receivable

(1) Listed by Category

Unit: RMB

Ending balance Beginning balance

Category Carrying amount Bad debt provision Carrying amount Bad debt provisionCarrying Carrying

Amount Proportion Amount Withdrawal value Amount Proportion Amount Withdrawal valueproportion proportion

Accounts

receivable

withdrawal

of Bad

debt 96702269.40 96.80% 96702269.40 100.00% 96702269.40 94.67% 96702269.40 100.00%

provision

separately

accrued

Of which:

Accounts

receivable

withdrawal

of bad debt 3201456.76 3.20% 482401.07 15.07% 2719055.69 5447776.99 5.33% 310734.28 5.70% 5137042.71

provision

of by

group

Of which:

Total 99903726.16 100.00% 97184670.47 97.28% 2719055.69 102150046.39 100.00% 97013003.68 94.97% 5137042.71

Bad debt provision separately accrued: RMB96702269.40

Unit: RMB

Ending balance

Name

Carrying amount Bad debt provision Withdrawalproportion Reason for withdraw

Shenzhen Jiyong Properties &

Resources Development 93811328.05 93811328.05 100.00% Involved in lawsuit and

Company unrecoverable

Shenzhen Tewei Industry Co. 2836561.00 2836561.00 100.00% Long aging and expectedLtd. unrecoverable

Luohu District Economic 54380.35 54380.35 100.00% Long aging and expectedDevelopment Company unrecoverable

Total 96702269.40 96702269.40

Withdrawal of bad debt provision by group: 482401.07

Unit: RMB

166ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023

Ending balance

Name

Carrying amount Bad debt provision Withdrawal proportion

Portfolio of credit risk features 3201456.76 482401.07 15.00%

Portfolio of transactions with

other related parties

Total 3201456.76 482401.07

Notes to the determination basis for the group:

Withdrawal of bad debt provision by group: RMB482401.07

Unit: RMB

Ending balance

Name

Carrying amount Bad debt provision Withdrawal proportion

Within 1 year 1413114.27 42393.43 3.00%

1-2 years 604586.55 60458.66 10.00%

2-3 years 1061644.99 318493.50 30.00%

3-4 years 122110.95 61055.48 50.00%

Total 3201456.76 482401.07

Notes to the determination basis for the group:

Please refer to the relevant information of disclosure of bad debt provision of other accounts receivable if adopting the general mode

of expected credit loss to withdraw bad debt provision of accounts receivable.□Applicable□Not applicable

Disclosure by aging

Unit: RMB

Aging Ending balance

Within one year (including 1 year) 1413114.27

One to two years 604586.55

Two to three years 1061644.99

More than three years 96824380.35

Three to four years 122110.95

Over 5 years 96702269.40

Total 99903726.16

(2) Bad Debt Provision Withdrawal Reversed or Recovered in the Current Period

Withdrawal of bad debt provision:

Unit: RMB

Changes in the current period

Category Beginningbalance Ending balanceWithdrawal Reversed orrecovered Verification Others

Bad debt

provision 96702269.40 96702269.40

accrued by item

Withdrawal of

bad debt

provision by 310734.28 171666.79 482401.07

group

Total 97013003.68 171666.79 97184670.47

Of which significant amount of recovered or transferred-back bad debt provision for the current period:

Unit: RMB

Name of the entity Amount reversed or recovered Way of recovery

167ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023

(3) Accounts Receivable Written-off in Current Period

Unit: RMB

Item Written-off amount

Of which the verification of significant accounts receivable:

Unit: RMB

Verification Whether occurred

Name of the entity Nature Written-off amount Reason forverification procedures because of related-performed party transactions

Notes to verification of accounts receivable:

(4) Top 5 of the Ending Balance of the Accounts Receivable Collected according to Arrears Party

Unit: RMB

Name of the entity Ending balance Proportion to total ending balance of Ending balance of badaccounts receivable debt provision

Shenzhen Jiyong Properties &

Resources Development 93811328.05 93.90% 93811328.05

Company

Shenzhen Tewei Industry Co.Ltd. 2836561.00 2.84% 2836561.00

Shenzhen Feihuang Industrial

769919.050.77%230975.72

Co. Ltd.Shenzhen Meige Xiazi Catering

542366.400.54%162709.92

Management Co. Ltd.Shenzhen Pengxin Property

255875.000.26%7676.25

Management Co. Ltd.Total 98216049.50 98.31%

(5) Accounts receivable derecognized due to the transfer of financial assets

(6) The Amount of the Assets and Liabilities Formed due to the Transfer and the Continued Involvement of

Accounts Receivable

Other notes:

2. Other Receivables

Unit: RMB

Item Ending balance Beginning balance

Dividend receivable 151433108.41 151433108.41

Other receivables 4444939247.02 5010963761.04

Total 4596372355.43 5162396869.45

(1) Interest Receivable

1) Category of Interest Receivable

Unit: RMB

Item Ending balance Beginning balance

2) Significant Overdue Interest

Unit: RMB

Whether occurred

Entity Ending balance Overdue time Overdue reason impairment and its

judgment basis

Other notes:

168ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023

3) Withdrawal of Bad Debt Provision

□Applicable□Not applicable

(2) Dividend Receivable

1) Category of Dividend Receivable

Unit: RMB

Project (or investee) Ending balance Beginning balance

Shenzhen Jinghengtai Real Estate

Development Co. Ltd. 151433108.41 151433108.41

Total 151433108.41 151433108.41

2) Significant Dividends Receivable Aging over 1 Year

Unit: RMB

Whether occurred

Project (or investee) Ending balance Aging Reason impairment and its

judgment basis

3) Withdrawal of Bad Debt Provision

□Applicable□Not applicable

Other notes:

(3) Other Receivables

1) Category of Other Receivables by Account Nature

Unit: RMB

Nature Ending carrying amount Beginning carrying amount

Guaranteed deposit 2240927.00 2537789.00

Payment on behalf

External intercourse funds 23202397.67 23374171.34

Intercourse funds to subsidiary 4451506190.80 5017542623.59

Total 4476949515.47 5043454583.93

2) Withdrawal of Bad Debt Provision

Unit: RMB

First stage Second stage Third stage

Bad debt provision Expected credit loss

Expected loss in the Expected loss in the

Total

in the next 12 duration (credit duration (credit

months impairment not impairmentoccurred) occurred)

Balance of 1 January 2023 8997495.81 23493327.08 32490822.89

Balance of 1 January 2023 in the

current period

Withdrawal of the current period 31429.94 -511984.38 -480554.44

Balance as at 30 June 2023 9028925.75 22981342.70 32010268.45

Changes of carrying amount with significant amount changed of loss provision in the current period

□Applicable□Not applicable

Disclosure by aging

Unit: RMB

Aging Ending balance

Within one year (including 1 year) 4444878230.56

One to two years 11200.00

Two to three years 40849.05

More than three years 32019235.86

Three to four years 69600.00

Over 5 years 31949635.86

Total 4476949515.47

169ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023

3) Bad Debt Provision Withdrawn Reversed or Recovered in the Current Period

Withdrawal of bad debt provision:

Unit: RMB

Changes in the current period

Category Beginningbalance Withdrawal Reversed or

Ending balance

recovered Verification Others

Other

receivables 32490822.89 -480554.44 32010268.45

Total 32490822.89 -480554.44 32010268.45

Of which the bad debt provision recovered or transferred-back with significant amount during the current period:

Unit: RMB

Name of the entity Amount reversed or recovered Way of recovery

4) Particulars of the Actual Verification of Other Receivables during the Current Period

Unit: RMB

Item Written-off amount

Of which the verification of significant other receivables:

Unit: RMB

Verification Whether occurred

Name of the entity Nature Written-off amount Reason forverification procedures because of related-performed party transactions

Notes to the verification of other receivables:

5) Top 5 of the Ending Balance of Other Receivables Collected according to the Arrears Party

Unit: RMB

Proportion to

total ending Ending

Name of the entity Nature Ending balance Aging balance of balance of

other bad debt

receivables % provision

Dongguan Wuhe Real Estate Co. Intercourse funds to Within 1

Ltd. subsidiary 2113760170.00 47.21%year

Shenzhen Guangming Wuhe Real Intercourse funds to Within 1

Estate Co. Ltd. subsidiary 1471000000.00 32.86%year

Yangzhou Wuhe Real Estate Co. Intercourse funds to Within 1

Ltd. subsidiary 700614325.72 15.65%year

SZPRD Xuzhou Dapeng Real Estate Intercourse funds to Within 1

Development Co. Ltd. subsidiary 40568374.85 0.91%year

Shum Yip Properties Development Intercourse funds to Over 5

Co. Ltd. subsidiary 106409390.56 2.38% 6652394.80years

Total 4432352261.13 99.01% 6652394.80

6) Accounts Receivable Involving Government Subsidies

Unit: RMB

Name of the entity Project of governmentsubsidies Ending balance Ending aging

Estimated recovering

time amount and basis

7) Derecognition of Other Receivables due to the Transfer of Financial Assets

8) The Amount of the Assets and Liabilities Formed due to the Transfer and the Continued Involvement of Other Receivables

Other notes:

170ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023

3. Long-term Equity Investment

Unit: RMB

Ending balance Beginning balance

Item

Carrying amount Impairmentprovision Carrying value Carrying amount

Impairment

provision Carrying value

Investment

to 1433799880.39 65834000.00 1367965880.39 1436329880.39 68364000.00 1367965880.39

subsidiaries

Investment

to joint

ventures

and 100559319.77 18983614.14 81575705.63 98765051.45 18983614.14 79781437.31

associated

enterprises

Total 1534359200.16 84817614.14 1449541586.02 1535094931.84 87347614.14 1447747317.70

(1) Investment to Subsidiaries

Unit: RMB

Increase/decrease for the current period

Beginning Withdrawal Ending balance of

Investee balance (carrying Ending balanceAdditional Reduced of

value) (Carrying value)

depreciation

investment investment impairment Others reserve

provision

Shenzhen Huangcheng Real

Estate Co. Ltd. 35552671.93 35552671.93

Shenzhen Wuhe Industry

Investment Development 44950000.00 44950000.00

Co. Ltd.SZPRD Yangzhou Real

Estate Development Co. 50000000.00 50000000.00

Ltd.Dongguan ITC Changsheng

Real Estate Development 20000000.00 20000000.00

Co. Ltd.Shenzhen International

Trade Center Property 195337851.23 195337851.23

Management Co. Ltd.Shenzhen Property

Engineering and

Construction Supervision 3000000.00 3000000.00

Co. Ltd.SZPRD Commercial

Operation Co. Ltd. 63509120.32 63509120.32

Shum Yip Properties

Development Co. Ltd. 15834000.00

SZPRD Xuzhou Dapeng

Real Estate Development 50000000.00

Co. Ltd.Shenzhen Rongyao Real

Estate Development Co. 508000000.00 508000000.00

Ltd.Shenzhen ITC Technology

Park Service Co. Ltd.SZPRD Urban Renewal Co.Ltd. 77474479.29 77474479.29

Dongguan Wuhe Real Estate

Co. Ltd. 50000000.00 50000000.00

171ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023

Shenzhen Guangming Wuhe

Real Estate Co. Ltd. 50000000.00 50000000.00

Shenzhen Wuhe Urban

Renewal Co. Ltd. 236641757.62 236641757.62

Yangzhou Wuhe Real Estate

Co. Ltd. 33500000.00 33500000.00

Total 1367965880.39 1367965880.39 65834000.00

(2) Investment to Joint Ventures and Associated Enterprises

Unit: RMB

Increase/decrease for the current period

Beginning Gains and Cash Withdraw Ending Ending

balance Addition Reduced losses Adjustment Chang bonus orInvestee al al of

balance balance of

(carrying

investme investme

recognized of other es of profits impairme Other (Carrying depreciation

value) nt under the comprehensi other announc s value) reservent equity ve income equity ed to nt

method issue provision

I. Joint ventures

Shenzhen

Real Estate

Jifa 44730585. 1722873. 46453459.Warehousi 29 98 27

ng Co.Ltd.Tian’an

Internation

al Building

Property

Manageme 7037952.3 7120847.682895.33

nt 1 4

Company

Shenzhen

Subtotal 51768537. 1805769. 53574306.

603191

II. Associated enterprises

Shenzhen

Wufang

Ceramics 18983614.Industrial 14

Co. Ltd.CSCEC

Intelligent

Parking 28012899. 63120.0 28001398.51619.01

Technolog 71 0 72

y Co. Ltd.Subtotal 28012899. 63120.0 28001398. 18983614.51619.01

7107214

Total 79781437. 1857388. 63120.0 81575705. 18983614.

313206314

(3) Other Notes

4. Operating Revenue and Cost of Sales

Unit: RMB

Amount for the current period Amount for the previous period

Item

Revenue Cost Revenue Cost

Principal business 995033423.48 697320050.39 23251320.73 16550326.74

Others 8588500.36 711099.38 8338349.86 659988.00

172ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023

Total 1003621923.84 698031149.77 31589670.59 17210314.74

Relevant information of revenue:

Unit: RMB

Category of contracts Segment 1 Segment 2 Total

Product categories

Of which:

Real estate business 974533312.66 974533312.66

House leasing business 29088611.18 29088611.18

Classification by

operating region

Of which:

Shenzhen 1003621923.84 1003621923.84

Market or customer type

Of which:

Contract type

Of which:

Classification by time of

commodity transfer

Of which:

Classification by contract

term

Of which:

Classification by sales

channel

Of which:

Total 1003621923.84 1003621923.84

Information about performance obligations:

The income of the parent company in current period was income from the business of real estate and lease.Information in relation to the transaction price apportioned to the residual contract performance obligation:

The amount of revenue corresponding to performance obligations of contracts signed but not performed or not fully performed yet

was RMB0.00 at the period-end among which RMB__ was expected to be recognized in __ RMB__ was expected to be recognized

in __ and RMB__ was expected to be recognized in __.Other notes:

5. Investment Income

Unit: RMB

Item Amount for the current period Amount for the previous period

Long-term equity investment income

accounted by equity method 1857388.32 859534.38

Entrusted loans interest 76724135.18

Total 1857388.32 77583669.56

6. Other

173ShenZhen Properties & Resources Development (Group) Ltd. Interim Report 2023

XVIII. Supplementary Materials

1. Items and Amounts of Non-recurring Profit or Loss

□Applicable □Not applicable

Unit: RMB

Item Amount Note

Gains/losses from the disposal of non-

current assets (inclusive of provision for 174379.69

impairment of assets write-offs)

Government grants recorded in the current

profit or loss (except for those acquired in

the ordinary course of company’s

business in line with national policies and 501658.00

regulations or granted continuously

according to certain standard quotas or

amounts)

Other non-operating income and expense

other than the above -562616.42

Less: Income tax effects 31670.01

Non-controlling interests effects 23017.77

Total 58733.49 --

Details of other profit and loss items in line with the definition of non-recurring gains and losses:

□Applicable□Not applicable

There are no other profit and loss items in line with the definition of non-recurring gains and losses in the Company.Note to defining the non-recurring profit and loss items listed in the Explanatory Notice of Information Disclosure by Companies

Offering Securities to the Public No. 1 - Non-recurring Profit and Loss Items as recurring profit and loss items

□Applicable□Not applicable

2. Return on Equity and Earnings Per Share

Profit as of reporting period Weighted average ROE

EPS

(%) EPS-basic EPS-diluted

Net profit attributable to ordinary

shareholders of the Company 4.92% 0.3707 0.3707

Net profit attributable to ordinary

shareholders of the Company after

deduction of non-recurring profit or 4.92% 0.3706 0.3706

loss

3. Accounting Data Differences under PRC GAAP and Those under IFRSs

(1) Differences between Disclosed Net Profits and Net Assets in Financial Report in accordance with

International Accounting Standards and Chinese Accounting Standards

□Applicable□Not applicable

(2) Differences between Disclosed Net Profits and Net Assets in Financial Report in accordance with

Domestic Accounting Standards and Chinese Accounting Standards

□Applicable□Not applicable

(3) Explain Reasons for the Differences between Accounting Data Under Domestic and Overseas

Accounting Standards; for Any Adjustment Made to the Difference Existing in the Data Audited by the

Foreign Auditing Agent Such Foreign Auditing Agent's Name Shall Be Clearly Stated.

4. Others

174

行情