ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021 (Summary)

Stock Code: 000011 200011 Stock Name: PRD PRD-B Announcement No. 2022-08

SHENZHEN PROPERTIES & RESOURCES DEVELOPMENT

(GROUP) LTD.ANNUAL REPORT 2021 (SUMMARY)

Part I Important Notes

This Summary is based on the full Annual Report of ShenZhen Properties & Resources Development (Group) Ltd. (together with its

consolidated subsidiaries the “Company” except where the context otherwise requires). In order for a full understanding of the

Company’s operating results financial position and future development plans investors should carefully read the aforesaid full text

which has been disclosed together with this Summary on the media designated by the China Securities Regulatory Commission (the

“CSRC”).Except for the following directors all the other directors attended in person the Board meeting for the review of this Report and its

summary.Reason for not attending the Proxy entrusted to attend the

Name Office title

meeting in person meeting

Independent auditor’s modified opinion:

□ Applicable √ Not applicable

Board-approved final cash and/or stock dividend plan for ordinary shareholders for the Reporting Period:

√ Applicable □ Not applicable

Bonus issue from capital reserves:

□ Yes √ No

The Board has approved a final dividend plan for ordinary shareholders as follows: based on the share capital of 595979092 shares

a cash dividend of RMB6.80 (tax inclusive) per 10 shares is to be distributed to the shareholders with no bonus issue from either

profit or capital reserves.Board-approved final cash and/or stock dividend plan for preferred shareholders for the Reporting Period:

□ Applicable √ Not applicable

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.

1ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021 (Summary)

Part II Key Corporate Information

1. Stock Profile

Stock name PRD PRD-B Stock code 000011 200011

Stock exchange for

Shenzhen Stock Exchange

stock listing

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

Fax 0755-82210610 82212043 0755-82210610 82212043

Tel. 0755-82211020 0755-82211020

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

2. Principal Activities or Products 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. In the past four decades of trials and hardships generations of 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".The year 2021 is the opening year of the 14th Five-Year Plan. During the Reporting Period facing the abrupt COVID-19 and deep

regulation and control in real estate the Company faced up to the difficulties and continued to make efforts in four business sectors

including industry-city space development property management services industrial ecosystem operation and main business

ecosystem investment in its main business. The Company endeavored to further consolidate and highlight its advantages of

industry-city integration and the whole industry chain through expanding the main business and making breakthroughs.

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 the Urban

Renewal Company Dongguan Company Xuzhou Company and Yangzhou 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 multiple

efforts for this segment. For instance it expanded its land bank steadily advanced the project development inside and outside

Shenzhen accelerated the sales of projects in Xuzhou and Yangzhou and sped up the recovery of investment. 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

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

2ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021 (Summary)

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". During the Reporting Period through its own marketing efforts and M&As

ITC Property Management saw an addition of over 7000000 square meters to its property management business with the total

managed area exceeding 30000000 square meters. In particular the industrial park area has reached 10000000 square meters

making the company one of the top property management provider for high-end industrial parks in China.

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 domestic and overseas political VIPs 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.(II) Industry Developments Market Competition and the Company’s Position in the Industry

1. Industry development status

In 2021 the macro-economic operation continued the development trend of overall stability and progress leading macroeconomic

indicators remained within a reasonable range and the structural reform on the supply side was continuously promoted. Besides

reform and opening up continued to deepen people's living standards and quality kept improving and an increasing number of

positive factors were driving high-quality development. Since the principle that "houses are for living in not for speculating on" was

first put forward at the Central Economic Work Conference in 2016 the central government's position on this principle has been

deepened constantly. To prevent risks in the real estate sector the real estate market has been under strict regulation over the past few

years and relevant policies have exerted a series of effects on the demand side the supply side and the financing side of the market

posing higher challenges to the operating capabilities of real estate enterprises. During the Reporting Period as the main stance on

real estate policies including the principle that "houses are for living in not for speculating on" and "three stabilities" remained

unchanged the real estate market experienced a transition from the high popularity in the first half of the year to the profound

adjustment in the second half with the scale remaining high throughout the year.The year-round sales were high in the first half and low in the second and the sales in the second half continued to decline.According to the data from the National Bureau of Statistics the sales area of commercial housing throughout 2021 was 1794

million square meters nationwide a year-on-year increase of 1.9% and the sales amount was RMB18.19 trillion up 4.8% from the

previous year. However such an increase was mainly attributable to the good sales in the first half of the year while sales have

dropped significantly since the second half. Specifically the sales of commercial housing continued the boom of the second half of

2020 with sustained double-digit growth in both sales amount and sales area and the average sales price remained above

RMB10000 per square meter. The sales of the new housing market plummeted after June and the sales area and sales amount

suffered double-digit negative growth from August and maintained such a trend until the end of the year.New starts weakened and development investment continued to fall. The development investment completed throughout the year

was RMB14.7 trillion an increase of 4.4% year-on-year. It remained low in the second half of the year and began to show negative

growth in September. The development investment completed in December saw a year-on-year decrease of 13.9%. Real estate

enterprises had a low willingness to start construction due to great financial pressure and stringent regulation of advance sales. The

area of new starts in 2021 was 1989 million square meters a decrease of 11.4% year-on-year marking the largest drop since 2016.With the slowdown in land acquisition the land market cooled rapidly in the second half of the year. The overall land

acquisition momentum of real estate enterprises slackened. Throughout the year land transactions amounted to RMB1.78 trillion up

2.8% from the previous year and the land acquisition area was 216 million square meters down 15.5% from the previous year. There

was a pattern of "first hot then cold and finally stable" in the centralized land supply of 22 cities. Due to the sales boom and loose

financing environment in the first half of the year real estate enterprises had a strong willingness to acquire land and competed

fiercely for land. As a result the overall performance of the first group of centralized land supply was fiery and its turnover and

3ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021 (Summary)

premium rate ranked first among the three groups of centralized land supply much higher than the latter two. Affected by factors

such as the dramatic tightening of financing regulation the cliff-like decline in sales caused by tightening mortgage limits as well as

insufficient market confidence due to frequent credit incidents of real estate enterprises the second group of centralized land supply

encountered a cold season. Although the land supply plans were collectively halted and postponed in many places the rates of

canceled auctions and abortive auctions still increased significantly on the whole and the transaction premium rate plummeted. With

the gradual loosening of central policies at the end of Q3 the slight recovery in market confidence the moderate relaxation of land

transfer rules the third group of centralized land supply was in a stable state. The transaction premium rate was the lowest for the

whole year but the decline was not significant and the rate of abortive auctions dropped as well.Regulation has not been relaxed and no obvious improvement in funds has been seen. Due to the appearance of effects from

policies such as loan concentration management and the gradual exposure of credit risks in real estate enterprises their financing

channels shrank completely the extension of mortgage loans was under negative influence and the sales payment collection of real

estate enterprises was negatively affected to varying degrees. According to the data from the National Bureau of Statistics the

amount of funds collected by real estate enterprises in the whole year was RMB20.11 trillion up 4.2% from the previous year

bringing the scale to an all-time high. But the growth rate hit a new low in nearly six years and declined month by month. The

monthly value of the collected funds showed negative growth year-on-year from the second half of 2021 and the year-on-year decline

in September reached up to 11.2%. Since the end of September the central government and ministerial departments continuously

released signals of stability maintenance the credit environment saw marginal improvements and the financing environment for real

estate enterprises gradually improved. However the growth of collected funds did not perform well at the end of the year. This is

because it takes time for the marginal improvements in the credit environment to reach the market side as well as for the extension of

funds such as mortgage loans and development loans.

2. Policy environment of the industry

In 2021 upholding the fundamental principle that "houses are for living in not for speculating on" and aiming at "stabilizing house

prices land prices and expectations" policy adjustments were underway depending on market popularity. When the market was high

in the first half of the year policies were comprehensively tightened and increased. After a continuous downward trend there was

marginal relaxation and the release of some benefits in the second half. From the perspective of the supply and demand sides the

demand side focused on the strengthening of credit regulation price control and the optimization and upgrading of policies restricting

housing purchases and loans; the supply side focused on land and financial control for risk mitigation and deleveraging purposes.More than 400 real estate regulatory policies were issued by provinces and cities nationwide in 2021. The regulation policies of the

real estate market have seen constant improvements and upgrading and produced significant effects. Looking forward to 2022 the

central government will still uphold the general principle that "houses are for living in not for speculating on" and try to achieve

"three stabilities". At a time when the adjustment trend of the real estate market continues to deepen the credit environment is

expected to improve significantly but is less likely to relax substantially. Moreover the pilot work on real estate tax reform will be

postponed which will in the short term or further affect the expectations of house buyers and the property market will embrace a

foreseeable recovery.

3. Regional market pattern

From the perspective of regional markets the Shenzhen real estate market continued to maintain the development trend of increased

regulation and strengthened supervision in 2021. In February Shenzhen issued a guide price for second-hand houses disguised as an

increase in the down payment ratio for second-hand house transactions. The second-hand house market transactions and price

increases were both suppressed. In March Shenzhen Municipal Bureau of Housing and Urban-Rural Development required all

residential projects to be listed by the "iShenzhen" for registration and online house selection. At the same time Shenzhen fully

implemented the points ranking policy for new subscriptions strictly investigated the source of funds for down payments and

cracked down on acts such as crowdfunding and holding (house purchase). Additionally business loans mortgage loans and other

illegal funds were stringently prohibited from flowing into the property market. The strict implementation of various policies reduced

the financial investment attributes of real estate and the market rapidly cooled with a strong wait-and-see mood.

4. Industry position of the Company

SZPRD arises together with Shenzhen's reform and opening up and devotes itself to real estate property management and other

fields for nearly four decades. It has achieved gradual improvements in its comprehensive capacity brand influence and industry

position and won many honors and awards over the years. During the Reporting Period the Company won the title of "2021

Shenzhen Top 500 Enterprises" and ranked 170th on the list was appraised as a Shenzhen municipal headquarters enterprise for

three consecutive years and won the top award of contribution award. ITC Property Management a subsidiary of the Company won

the following awards: "2021 Top 100 Enterprises in Property Service Capacity in the Greater Bay Area" "2021 Top 5 Enterprises in

Property Service Capacity in Industrial Parks of the Greater Bay Area" "2021 Top 100 China Property Service Enterprises with

Comprehensive Strength" "2021 Top 100 China Property Service Enterprises in Brand Value" "2021 Quality Benchmark Enterprise

in Guangdong Province" and "2021 China Property Service Brand Characteristic Enterprise - A World-leading Property Management

Ecological Operator". The Shenzhen International Trade Center Building was listed in the first group of Shenzhen historical

buildings announced by the People's Government of Shenzhen Municipality. The historical exhibition of Shenzhen International

Trade Center was selected as a case for the development and utilization of national economic and technological archives resources in

2021 by the National Archives Administration of China. These awards and honors demonstrated the Company's comprehensive

strength and reflected the high recognition of the Company's comprehensive strength by the industry customers and government

departments.During the Reporting Period despite the changes in the real estate industry the Company gained a comparative advantage with stable

operation status and good financial position seized the opportunities of the land market and won the bid for the land plots of

2021WR023 in Humen Town of Dongguan and A606-0258 in Guangming District of Shenzhen. It marked a breakthrough in the

Group's acquisition of zero land resources from the secondary market over the years and provided a solid guarantee for the Group's

sustainable development during the "14th Five-year Plan" period as well as symbolized the full opening of the era of complete

4ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021 (Summary)

marketization of the Group's development business.

3. Key Financial Information

(1) Key Financial Information of the Past Three Years

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

Unit: RMB

Change of 31

December 2021 over

31 December 2021 31 December 2020 31 December 2019

31 December 2020

(%)

Total assets 14581897151.76 12207356912.54 19.45% 10772491740.53

Equity attributable to the listed

4486110790.393727917440.0320.34%3147949009.38

company’s shareholders

2021-over-2020

202120202019

change (%)

Operating revenue 4491965643.71 4104374646.02 9.44% 3961669942.44

Net profit attributable to the

1003969842.33798572121.7425.72%817805780.12

listed company’s shareholders

Net profit attributable to the

listed company’s shareholders

983778096.90788377322.3924.79%695675201.19

before exceptional gains and

losses

Net cash generated from/used in

-1813313008.58385497782.12-570.38%939789565.96

operating activities

Basic earnings per share

1.68461.339925.73%1.3722

(RMB/share)

Diluted earnings per share

1.68461.339925.73%1.3722

(RMB/share)

Weighted average return on

24.69%23.47%1.22%20.46%

equity (%)

(2) Key Financial Information by Quarter

Unit: RMB

Q1 Q2 Q3 Q4

Operating revenue 891026732.66 1649838406.59 640625548.94 1310474955.52

Net profit attributable to the

214420219.16461955304.5998290796.67229303521.91

listed company’s shareholders

Net profit attributable to the

listed company’s shareholders

208303080.57461555410.6497412536.02216507069.67

before exceptional gains and

losses

Net cash generated from/used in

83213087.801054357692.93-1680581358.73-1270302430.58

operating activities

Indicate by tick mark whether any of the quarterly financial data in the table above or their summations differs materially from what

have been disclosed in the Company’s quarterly or interim reports.□ Yes √ No

5ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021 (Summary)

4. Share Capital and Shareholder Information at the Period-End

(1) Numbers of Ordinary Shareholders and Preferred Shareholders with Resumed Voting Rights as well as

Holdings of Top 10 Shareholders

Unit: share

Number of Number of preferred

Number of ordinary

Number of preferred shareholders with

shareholders at the

ordinary shareholders resumed voting rights

47113 month-end prior to 46391 0 0

shareholders at with resumed at the month-end prior

the disclosure of this

the period-end voting rights at to the disclosure of

Report

the period-end this Report

Top 10 shareholders

Sharehold Shares in pledge

Total shares

Nature of ing Restricted marked or frozen

Name of shareholder held at the

shareholder percentag shares held

period-end

e Status Shares

Shenzhen Investment Holdings State-owned legal

50.57%3014146373326

Co. Ltd. person

Domestic

Shenzhen State-owned Equity

non-state-owned 6.38% 38037890 0

Management Co. Ltd.legal person

China Orient Asset Management State-owned legal

3.90%232364000

Co. Ltd. person

Hong Kong Securities Clearing Foreign legal

0.69%41363330

Company Ltd. person

Domestic natural

Li Xinyi 0.60% 3550100 0

person

Domestic natural

Duan Shaoteng 0.29% 1755565 0

person

Shenzhen Duty-Free Domestic

Commodity Enterprises Co. non-state-owned 0.29% 1730300 1730300

Ltd. legal person

Domestic natural

Yang Yaochu 0.25% 1500384 0

person

Domestic natural

Wu Wenkai 0.21% 1252800 0

person

Domestic natural

Su Weipeng 0.19% 1120300 0

person

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

controlling shareholder of the Company and Shenzhen State-owned

Related or acting-in-concert parties among the

Equity Management Co. Ltd. And the Company does not know

shareholders above

whether there are related parties or acting-in-concert parties among the

other shareholders.Shareholders involved in securities margin trading (if

N/A

any)

(2) Number of Preferred Shareholders and Shareholdings of Top 10 of Them

□ Applicable √ Not applicable

No preferred shareholders in the Reporting Period.

6ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021 (Summary)

(3) Ownership and Control Relations between the Actual Controller and the Company

5. Outstanding Bonds at the Date when this Report Was Authorized for Issue

□ Applicable √ Not applicable

Part III Significant Events

(I) Matters on the completion of registration of the subsidiary in Vietnam

Shenzhen International Trade Center Property Management Co. Ltd. a wholly-owned subsidiary of the Company intends to invest

in and establish a wholly-owned subsidiary in China-Vietnam (Shenzhen-Haiphong) Economic and Trade Cooperation Zone in

Haiphong City Vietnam to carry out property management services in the Park with a registered capital of USD200000. During the

Reporting Period the subsidiary in Vietnam completed its registration and received the Enterprise Registration Certificate from the

Business Registration Office of the Haiphong Department of Planning and Investment Decision. For details please refer to the

Announcement on the Completion of Registration of the Subsidiary in Vietnam (Announcement No. 2021-01) disclosed by the

Company on Cninfo (www.cninfo.com.cn) on 6 January 2021.(II) Matters on transfer for free of part of state-owned equity of the controlling shareholder to replenish the social security

fund

During the Reporting Period SIHC the controlling shareholder of the Company transferred 38037890 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. Before and after the transfer of equity the controlling

shareholder and actual controller of the Company remained unchanged. On March 15 the share transfer registration procedures for

the aforementioned transfer of state-owned shares for free were completed. For more details please refer to the Suggestive

Announcement on the Free Transfer of Parts of State-owned Equity of the Controlling Shareholder to Replenish the Social Security

Fund (Announcement No. 2021-02) and the Announcement on the Completion of Free Transfer Registration of Parts of State-owned

Equity of the Controlling Shareholder to Replenish the Social Security Fund (Announcement No. 2021-05) disclosed by the

Company on Cninfo (www.cninfo.com.cn) on 29 January and 18 March 2021 respectively.(III) Matters on entering into Entrusted Operation and Management Agreement and related party transaction

During the Reporting Period Shenzhen SZPRD Commercial Operation Co. Ltd. a wholly-owned subsidiary of the Company and

Shenzhen Shentou Property Development Co. Ltd. a wholly-owned subsidiary of the controlling shareholder Shenzhen Investment

Holdings Co. Ltd. (SIHC) entered into the Entrusted Operation and Management Agreement. Shentou Development transferred the

81775.57 square meters of its properties entrusted by Shenzhen Investment Holdings to the commercial operation company for

operation and management. The transaction will help promote the handling of historical legacy issues improve the efficiency of the

operation and management of state-owned assets and contribute to the improvement of the Company's operation and management

capabilities which is in line with the long-term interests of the Company. For details please refer to the Announcement on Entering

into Entrusted Operation and Management Agreement and Related Party Transactions (Announcement No. 2021-13) disclosed by

the Company on Cninfo (www.cninfo.com.cn) on 31 March 2021.(IV) Matters on the wholly-owned subsidiary winning the bid of the land use right

On 27 August 2021 Shenzhen SZPRD Urban Renewal Co. Ltd. a wholly-owned subsidiary of the Company became the selected

7ShenZhen Properties & Resources Development (Group) Ltd. Annual Report 2021 (Summary)

bidder for the construction land use right of No. 2021WR023 in Humen Town Dongguan City in the online listing auction of

state-owned construction land use right held by Dongguan City Public Resources Trading Website. On 2 September 2021 Urban

Renewal signed the Confirmation of Transaction Results with Dongguan Public Resources Trading Center and won the land plot at a

price of RMB2070606666. For details please refer to the Announcement on the Wholly-owned Subsidiary Winning the Bid of

State-owned Land Use Right (Announcement No. 2021-27) disclosed by the Company on Cninfo (www.cninfo.com.cn) on 3

September 2021.(V) Matters on the controlling shareholder of the Company applying for changing the commitment to avoiding horizontal

competition

During the Reporting Period the Company received the Letter on Changing the Commitment to Avoiding Horizontal Competition

from its controlling shareholder SIHC. For more details see the Announcement on the Application by the Company's Controlling

Shareholder for Changing the Commitment to Avoiding Horizontal Competition (Announcement No.: 2021-32) disclosed by the

Company on www.cninfo.com.cn on 11 September 2021. Such commitment change matter was approved at the first extraordinary

general meeting of 2021 held on 27 September 2021.(VI) Matters on the completion of the general election of the Board of Directors and the Board of Supervisors

On 27 September 2021 the Company held the First Extraordinary General Meeting of Shareholders in 2021 at which the Proposal

on the Election of the Company's Ninth Board of Directors and Nomination of Non-independent Directors for the Company's Tenth

Board of Directors the Proposal on the Election of the Company's Ninth Board of Directors and Nomination of Independent

Directors for the Company's Tenth Board of Directors and the Proposal on the Election of the Company's Ninth Board of

Supervisors were deliberated and approved. Meanwhile the Company held the third meeting of the Seventh Workers and Employees'

Congress on 8 September 2021 to elect the employee representative supervisors of the Tenth Board of Supervisors of the Company

and successfully completed the general election of the Tenth Board of Directors and Board of Supervisors of the Company. For

details please refer to the Announcement on the Completion of the General Election of the Board of Directors and the Board of

Supervisors and the Appointment of the Secretary of the Board of Directors and the Securities Representative of the Company

(Announcement No. 2021-37) disclosed by the Company on Cninfo (www.cninfo.com.cn) on 28 September 2021.

(VII) Matters on winning the bid of the land use right

On 25 November 2021 the Company won the state-owned land use right of Plot No. A606-0258 in Guangming Shenzhen at

RMB1621 million in the online listing auction of state-owned construction land use right in Shenzhen. The bid winning of the land

use right will effectively replenish the Company's land reserve and provide resources to further expand and strengthen the Company's

main business and promote the sustainable development of the real estate business segment. For details please refer to the

Announcement on the Winning the Bid of State-owned Land Use Right (Announcement No. 2021-43) disclosed by the Company on

Cninfo (www.cninfo.com.cn) on 26 November 2021.(VIII) Matters on acquisition by the wholly-owned subsidiary of 100% equity in Shenzhen Property Management Co. Ltd.Shenzhen Foreign Trade Property Management Co. Ltd. and three enterprises owned by Shenzhen Shenfubao (Group) Co.Ltd. and related party transactions

During the Reporting Period in order to effectively enhance the overall market competitiveness of the property management segment

build a benchmarking property management platform in Shenzhen further expand and strengthen the Company's property

management business and enhance the development momentum of the listed company Shenzhen International Trade Center Property

Management Co. Ltd. a wholly-owned subsidiary of the Company intends to acquire 100% equity in 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.Limited in cash. The aforementioned matters have been deliberated and approved at the Fifth Meeting of the Tenth Board of

Directors and the Second Extraordinary General Meeting of Shareholders in 2021. For details please refer to the Announcement on

the Acquisition by the Wholly-Owned Subsidiary of 100 Percent of the Equity of Shenzhen Property Management Co. Ltd. and

Related Party Transactions (Announcement No. 2021-45) Announcement on the Acquisition by the Wholly-Owned Subsidiary of 100

Percent of the Equity of Shenzhen Foreign Trade Property Management Co. Ltd. and Related Party Transactions (Announcement

No. 2021-46) Announcement on the Acquisition by the Wholly-Owned Subsidiary of 100 Percent of the Equity of Three Enterprises

Owned by Shenzhen Shenfubao (Group) Co. Ltd. and Related Party Transactions (Announcement No. 2021-47) Announcement on

the Progress of the Acquisition by the Wholly-Owned Subsidiary of 100 Percent of the Equity of Shenzhen Property Management Co.Ltd. and Related Party Transactions (Announcement No. 2021-50) Announcement on the Progress of the Acquisition by the

Wholly-Owned Subsidiary of 100 Percent of the Equity of Shenzhen Foreign Trade Property Management Co. Ltd. and Related

Party Transactions (Announcement No. 2021-51) and Announcement on the Progress of the Acquisition by the Wholly-Owned

Subsidiary of 100 Percent of the Equity of Three Enterprises Owned by Shenzhen Shenfubao (Group) Co. Ltd. and Related Party

Transactions (Announcement No. 2021-52) disclosed by the Company on Cninfo (www.cninfo.com.cn) on 14 December and 24

December 2021.

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