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

Stock Code: 000011 200011 Stock Name: PRD PRD-B Announcement No. 2023-08

SHENZHEN PROPERTIES & RESOURCES DEVELOPMENT

(GROUP) LTD.FIRST QUARTERLY REPORT 2023

ShenZhen Properties & Resources Development (Group) Ltd. (hereinafter referred to as the “Company”) and all the members of

the Company’s Board of Directors hereby guarantee that the contents of this Report are true accurate and complete and free of any

misrepresentations misleading statements or material omissions.Important Notes:

1. The Board of Directors the Supervisory Committee as well as the directors supervisors and senior management of the Company

hereby guarantee that the contents of this Report are true accurate and complete and free of any misrepresentations misleading

statements or material omissions and collectively and individually accept legal responsibility for such contents.

2. The Company’s legal representative head of financial affairs and head of the financial department (equivalent to financial

manager) hereby guarantee that the financial statements carried in this Report are true accurate and complete.

3. Indicate whether the financial statements in this Report have been audited by an independent auditor.

□Yes □ No

This Report has been prepared in both Chinese and English. Should there be any discrepancies or misunderstandings between the

two versions the Chinese version shall prevail.I Key Financial Information

(I) Key Accounting Data and Financial Indicators

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

Q1 2023 Q1 2022 Change (%)

Operating revenue (RMB) 411469619.15 1255811600.03 -67.23%

Net profit attributable to the listed company’s

13216750.95219440470.15-93.98%

shareholders (RMB)

Net profit attributable to the listed company’s

shareholders before exceptional gains and 13335100.35 226479051.98 -94.11%

losses (RMB)

Net cash generated from/used in operating

-419149918.25-762389016.8345.02%

activities (RMB)

Basic earnings per share (RMB/share) 0.0222 0.3682 -93.97%

Diluted earnings per share (RMB/share) 0.0222 0.3682 -93.97%

Weighted average return on equity (%) 0.30% 5.61% -5.31%

31 March 2023 31 December 2022 Change (%)

Total assets (RMB) 15779473033.85 15800287610.40 -0.13%

Equity attributable to the listed company’s

4426728112.944412555547.970.32%

shareholders (RMB)

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

(II) Exceptional Gains and Losses

□ Applicable □ Not applicable

Unit: RMB

Item Q1 2023 Note

Gain or loss on disposal of non-current assets

(inclusive of impairment allowance write- 692.45

offs)

Government grants through profit or loss

(exclusive of government grants continuously

given in the Company’s ordinary course of 660340.61 One-time bounty received

business at fixed quotas or amounts as per the

government’s policies and standards)

Non-operating income and expense other Reversal of non-operating income

-1111715.40

than the above recognized in prior period

Other gains and losses that meet definition of

327260.97

nonrecurring gain/loss

Less: Income tax effects -57712.13

Non-controlling interests effects (net of

52640.16

tax)

Total -118349.40

Other items that meet the definition of exceptional gain/loss:

□Applicable □ Not applicable

No such cases in 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 in the Reporting Period.(III) Changes in Key Financial Statement Line Items and Explanation of why

□ Applicable □ Not applicable

Balance sheet line

31 March 2023 1 January 2023 Change (%) Main reasons for the change

items

Prepayments 146425179.45 100341806.56 45.93% Payment for lands

Increase in debit balance of reclassified

Other current assets 100019405.28 65655266.27 52.34%

tax payable

Accounts payable 424879548.32 608283388.52 -30.15% Decrease in project money payable

Advances from

1256391.62 2260847.31 -44.43% Decrease in rent received in advance

customers

Income statemnet

Q1 2023 Q1 2022 Change (%) Main reasons for the change

line items

Decrease in carry-over of real estate

Operating revenue 411469619.15 1255811600.03 -67.23%

revenue

Decrease in carry-over of real estate

Cost of sales 310287854.20 628064409.56 -50.60%

costs

Increase in VAT of land accrued in the

Taxes and levies 6838102.09 264764712.67 -97.42%

same period of last year

Credit impairment

-88003.56 - 100.00% Increase in bad debt provision

loss

Non-operating Reversal of non-operating income

-377546.96193104.68-295.51%

income recognized in prior period

Non-operating 283475.99 184355.58 53.77% Increase in small non-operating

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

expense expense paid in the Reporting Period

Income tax expense 3202392.63 65957243.88 -95.14% Decrease in total profit

Other comprehensive

income- Changes in

the fair value of -129311.06 -12045.80 -973.49% Influence of changes in fair value

investments in other

equity instruments

Other comprehensive

income- Differences

arising from the

translation of foreign 1085125.08 404100.07 168.53% Influence of changes in exchange rates

currency-

denominated

financial statements

Cash flow statement

Q1 2023 Q1 2022 Change (%) Main reasons for the change

line items

Net cash generated

Payment for lands in the same period

from/used in -419149918.25 -762389016.83 45.02%

of last year

operating activities

Net cash generated

Equity transfer payment paid in the

from/used in -1096439.52 -241934054.45 99.55%

same period of last year

investing activities

Net cash generated

from/used in 196357157.11 36943224.39 431.51% New bank loan

financing activities

II Shareholder Information

(I) Numbers of Ordinary Shareholders and Preference Shareholders with Resumed Voting Rights as well

as Holdings of Top 10 Shareholders

Unit: share

Number of ordinary shareholders at the Number of preferred shareholders with resumed

454410

period-end voting rights at the period-end (if any)

Top 10 shareholders

Sharehold Shares in pledge marked or frozen

Nature of ing Total shares Restricted

Name of shareholder

shareholder percentag held shares held Status Shares

e

Shenzhen Investment State-owned

50.57%3014146373326

Holdings Corporation corporation

Domestic

Shenzhen State-Owned

non-state-

Equity Operation and 6.38% 38037890 0

owned legal

Management Co. Ltd.person

China Orient Asset State-owned

2.77%164914020

Management Co. Ltd. legal person

Domestic

Duan Shaoteng natural 0.29% 1755565 0

person

Domestic

Shenzhen Duty-Free

non-state-

Commodity Enterprises Co. 0.29% 1730300 1730300

owned legal

Ltd.person

Domestic

Yang Yaochu natural 0.27% 1640984 0

person

Domestic

Li Xinyi natural 0.25% 1500000 0

person

Industrial and Commercial Other 0.23% 1389034 0

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

Bank of China Limited －

Southern China Securities

Full Index Real Estate

Trading Open-ended Index

Securities Investment Fund

Domestic

Mai Furong natural 0.20% 1244596 0

person

Hong Kong Securities Foreign

0.18%10683110

Clearing Company Ltd. legal person

Top 10 unrestricted shareholders

Shares by class

Name of shareholder Unrestricted shares held

Class Shares

RMB-

Shenzhen Investment Holdings Corporation 301411311 denominated 301411311

ordinary stock

RMB-

Shenzhen State-Owned Equity Operation and

38037890 denominated 38037890

Management Co. Ltd.ordinary stock

RMB-

China Orient Asset Management Co. Ltd. 16491402 denominated 16491402

ordinary stock

RMB-

Duan Shaoteng 1755565 denominated 1755565

ordinary stock

Domestically

Yang Yaochu 1640984 listed foreign 1640984

stock

RMB-

Li Xinyi 1500000 denominated 1500000

ordinary stock

Industrial and Commercial Bank of China

RMB-

Limited － Southern China Securities Full

1389034 denominated 1389034

Index Real Estate Trading Open-ended Index ordinary stock

Securities Investment Fund

Domestically

Mai Furong 1244596 listed foreign 1244596

stock

RMB-

Hong Kong Securities Clearing Company

1068311 denominated 1068311

Ltd. ordinary stock

Domestically

He Simo 1011750 listed foreign 1011750

stock

The first largest shareholder Shenzhen Investment Holding

Corporation is the actual controlling shareholder of the Company and

Related or acting-in-concert parties among the shareholders

Shenzhen State-Owned Equity Operation and Management Co. Ltd.above

And the Company does not know whether there are related parties or

acting-in-concert parties among the other 8 shareholders.Top 10 ordinary shareholders involved in securities margin

N/A

trading (if any)

(II) Number of Preference Shareholders and Shareholdings of Top 10 of Them

□Applicable □ Not applicable

III Other Significant Events

□Applicable □ Not applicable

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

IV Quarterly Financial Statements

(I) Financial Statements

1. Consolidated Balance Sheet

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

31 March 2023

Unit: RMB

Item 31 March 2023 1 January 2023

Current assets:

Monetary assets 1294112476.80 1517528893.83

Settlement reserve

Loans to other banks and financial

institutions

Held-for-trading financial assets

Derivative financial assets

Notes receivable

Accounts receivable 404086870.42 419933915.30

Receivables financing

Prepayments 146425179.45 100341806.56

Premiums receivable

Reinsurance receivables

Receivable reinsurance contract reserve

Other receivables 658575446.66 639903523.33

Including: Interest receivable

Dividends receivable

Financial assets purchased under resale

agreements

Inventories 11106509106.85 10975334223.37

Contract assets 1064005.07 1094632.90

Assets held for sale

Current portion of non-current assets

Other current assets 100019405.28 65655266.27

Total current assets 13710792490.53 13719792261.56

Non-current assets:

Loans and advances to customers

Debt investments

Other debt investments

Long-term receivables 22292127.37 22651454.07

Long-term equity investments 80798891.32 79781437.31

Investments in other equity

758527.58887838.64

instruments

Other non-current financial assets

Investment property 396785785.35 405762739.18

Fixed assets 78818591.73 82745172.12

Construction in progress

Productive living assets

Oil and gas assets

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

Right-of-use assets 63452759.65 70168415.65

Intangible assets 974222.92 1269382.91

Development costs

Goodwill 9446847.38 9446847.38

Long-term prepaid expense 22104628.41 21980602.46

Deferred income tax assets 1390497288.53 1383050586.04

Other non-current assets 2750873.08 2750873.08

Total non-current assets 2068680543.32 2080495348.84

Total assets 15779473033.85 15800287610.40

Current liabilities:

Short-term borrowings

Borrowings from the central bank

Loans from other banks and financial

institutions

Held-for-trading financial liabilities

Derivative financial liabilities

Notes payable

Accounts payable 424879548.32 608283388.52

Advances from customers 1256391.62 2260847.31

Contract liabilities 950151023.07 920828040.81

Financial assets sold under repurchase

agreements

Customer deposits and deposits from

other banks and financial institutions

Payables for acting trading of securities

Payables for underwriting of securities

Employee benefits payable 199128150.85 239126392.02

Taxes and levies payable 3872677504.17 3917278346.81

Other payables 1488142735.12 1515085832.45

Including: Interest payable

Dividends payable 12202676.04 12202676.04

Fees and commissions payable

Reinsurance payables

Liabilities directly associated with

assets held for sale

Current portion of non-current liabilities 218456766.65 218858766.82

Other current liabilities 79539635.66 83991786.83

Total current liabilities 7234231755.46 7505713401.57

Non-current liabilities:

Insurance contract reserve

Long-term borrowings 3868882344.00 3618782344.00

Bonds payable

Including: Preference shares

Perpetual bonds

Lease liabilities 70419433.29 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

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

Deferred income tax liabilities 174168.87 241978.54

Other non-current liabilities 125716075.26 128008919.79

Total non-current liabilities 4065958633.94 3825763138.40

Total liabilities 11300190389.40 11331476539.97

Owners’ equity:

Share capital 595979092.00 595979092.00

Other equity instruments

Including: Preference shares

Perpetual bonds

Capital reserves 80488045.38 80488045.38

Less: Treasury stock

Other comprehensive income -2898563.93 -3854377.95

Specific reserve

Surplus reserves 48886605.81 48886605.81

General reserve

Retained earnings 3704272933.68 3691056182.73

Total equity attributable to owners of the

4426728112.944412555547.97

Company as the parent

Non-controlling interests 52554531.51 56255522.46

Total owners’ equity 4479282644.45 4468811070.43

Total liabilities and owners’ equity 15779473033.85 15800287610.40

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

Head of the financial department: Liu Qiang

2. Consolidated Income Statement

Unit: RMB

Item Q1 2023 Q1 2022

1. Revenues 411469619.15 1255811600.03

Including: Operating revenue 411469619.15 1255811600.03

Interest revenue

Insurance premium income

Fee and commission

income

2. Costs and expenses 401084780.60 977118589.24

Including: Cost of sales 310287854.20 628064409.56

Interest costs

Fee and commission

expense

Surrenders

Net insurance claims paid

Net amount provided as

insurance contract reserve

Expenditure on policy

dividends

Reinsurance premium

expense

Taxes and levies 6838102.09 264764712.67

Selling expense 4848217.44 3937994.28

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

Administrative expense 64973120.40 65085375.46

Development costs 1197579.33 1267710.00

Finance costs 12939907.14 13998387.27

Including: Interest costs 15853484.32 17192333.07

Interest

3282400.584135325.97

revenue

Add: Other income 2309886.58 2171231.11

Return on investment (“-” for loss) 1017454.01 849549.56

Including: Share of profit or loss

1017454.01714020.44

of joint ventures and associates

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

-88003.56

loss)

Asset impairment loss (“-” for

loss)

Asset disposal income (“-” for

loss)

3. Operating profit (“-” for loss) 13624175.58 281713791.46

Add: Non-operating income -377546.96 193104.68

Less: Non-operating expense 283475.99 184355.58

4. Gross profit (“-” for loss) 12963152.63 281722540.56

Less: Income tax expense 3202392.63 65957243.88

5. Net profit (“-” for net loss) 9760760.00 215765296.68

5.1 By operating continuity

5.1.1 Net profit from continuing

9760760.00215765296.68

operations (“-” for net loss)

5.1.2 Net profit from discontinued

operations (“-” for net loss)

5.2 By ownership

5.2.1 Net profit attributable to

13216750.95219440470.15

owners of the Company as the parent

5.2.2 Net profit attributable to non-

-3455990.95-3675173.47

controlling interests

6. Other comprehensive income net of

955814.02392054.27

tax

Attributable to owners of the

955814.02392054.27

Company as the parent

6.1 Items that will not be

-129311.06-12045.80

reclassified to profit or loss

6.1.1 Changes caused by

remeasurements on defined benefit

schemes

6.1.2 Other comprehensive

income that will not be reclassified to

profit or loss under the equity method

6.1.3 Changes in the fair value of

-129311.06-12045.80

investments in other equity instruments

6.1.4 Changes in the fair value

arising from changes in own credit risk

6.1.5 Other

6.2 Items that will be reclassified to

1085125.08404100.07

profit or loss

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

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

other debt investments

6.2.3 Other comprehensive

income arising from the reclassification

of financial assets

6.2.4 Credit impairment

allowance for other debt investments

6.2.5 Reserve for cash flow

hedges

6.2.6 Differences arising from the

translation of foreign currency- 1085125.08 404100.07

denominated financial statements

6.2.7 Other

Attributable to non-controlling

interests

7. Total comprehensive income 10716574.02 216157350.95

Attributable to owners of the

14172564.97219832524.42

Company as the parent

Attributable to non-controlling

-3455990.95-3675173.47

interests

8. Earnings per share

8.1 Basic earnings per share 0.0222 0.3682

8.2 Diluted earnings per share 0.0222 0.3682

Where business combinations under common control occurred in the current period the net profit achieved by the acquirees before

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

Head of the financial department: Liu Qiang

3. Consolidated Cash Flow Statement

Unit: RMB

Item Q1 2023 Q1 2022

1. Cash flows from operating activities:

Proceeds from sale of commodities

477368068.71505056812.76

and rendering of services

Net increase in customer deposits and

deposits from other banks and financial

institutions

Net increase in borrowings from the

central bank

Net increase in loans from other

financial institutions

Premiums received on original

insurance contracts

Net proceeds from reinsurance

Net increase in deposits and

investments of policy holders

Interest fees and commissions received

Net increase in loans from other banks

and financial institutions

Net increase in proceeds from

repurchase transactions

Net proceeds from acting trading of

securities

Tax and levy rebates 101125.67 523079.87

Cash generated from other operating 109438389.88 393205832.81

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

activities

Subtotal of cash generated from

586907584.26898785725.44

operating activities

Payments for commodities and services 583398323.24 949559047.62

Net increase in loans and advances to

customers

Net increase in deposits in the central

bank and other banks and financial

institutions

Payments for claims on original

insurance contracts

Net increase in loans to other banks and

financial institutions

Interest fees and commissions paid

Policy dividends paid

Cash paid to and for employees 259582400.88 258508367.52

Taxes and levies paid 100157319.11 242002874.71

Cash used in other operating activities 62919459.28 211104452.42

Subtotal of cash used in operating

1006057502.511661174742.27

activities

Net cash generated from/used in

-419149918.25-762389016.83

operating activities

2. Cash flows from investing activities:

Proceeds from disinvestment

Return on investment

Net proceeds from the disposal of fixed

assets intangible assets and other long- 254.95

lived assets

Net proceeds from the disposal of

subsidiaries and other business units

Cash generated from other investing

activities

Subtotal of cash generated from

254.95

investing activities

Payments for the acquisition of fixed

assets intangible assets and other long- 1096694.47 1300024.45

lived assets

Payments for investments 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

1096694.47241934054.45

activities

Net cash generated from/used in

-1096439.52-241934054.45

investing activities

3. Cash flows from financing activities:

Capital contributions received

Including: Capital contributions by

non-controlling interests to subsidiaries

Borrowings received 250100000.00 86200000.00

Cash generated from other financing

activities

Subtotal of cash generated from

250100000.0086200000.00

financing activities

Repayment of borrowings

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

Interest and dividends paid 53355811.48 48154777.50

Including: Dividends paid by

subsidiaries to non-controlling interests

Cash used in other financing activities 387031.41 1101998.11

Subtotal of cash used in financing

53742842.8949256775.61

activities

Net cash generated from/used in

196357157.1136943224.39

financing activities

4. Effect of foreign exchange rates

-967133.01-438124.09

changes on cash and cash equivalents

5. Net increase in cash and cash

-224856333.67-967817970.98

equivalents

Add: Cash and cash equivalents

1509693857.481963966564.41

beginning of the period

6. Cash and cash equivalents end of the

1284837523.81996148593.43

period

(II) Independent Auditor’s Report

Indicate by tick mark whether the financial statements above have been audited by an independent auditor.□Yes □ No

These financial statements have not been audited by such an auditor.Board of Directors

Shenzhen Properties & Resources Development (Group) Ltd.

28 April 2023

11