深物业B:2021年半年度报告（英文版）

SHENZHEN PROPERTIES & RESOURCES DEVELOPMENT (GROUP) LTD.INTERIM REPORT 2021

（Announcement No. 2021-25）

August 2021

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 is subject to the Guideline No. 3 of the Shenzhen Stock Exchange on

Information Disclosure by Industry—for Listed Companies Engaging in Real Estate.The Company has described in detail in this Report the possible risks facing it along with

countermeasures. Please refer to “X Risks Facing the Company and Countermeasures” in

“Part III Management Discussion and Analysis” of this Report.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.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.........................29

Part V Environmental and Social Responsibility...... 31

Part VI Significant Events.......................... 33

Part VII Share Changes and Shareholder Information...43

Part VIII Preferred Shares...........................49

Part IX Bonds....................................... 50

Part X Financial Statements..........................51

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.Definitions

Term Definition

ShenZhen Properties & Resources Development (Group) Ltd. and its

The “Company” the “Group” “SZPRD” or “we”

consolidated 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 SZPRDYangzhou Real Estate Development Co. Ltd.Rongyao Real Estate Shenzhen Rongyao Real Estate Development Co. Ltd.Urban Renewal Company Shenzhen SZPRD Urban Renewal Co. Ltd.ITC Property Management Shenzhen International Trade Center Property Management 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.Expressed in the Chinese currency of Renminbi expressed in tens of

RMB RMB’0000 RMB’00000000

thousands of Renminbi expressed in hundreds of millions of Renminbi

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

Shenzhen Stock Exchange

listing

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

ShenZhen Properties & Resources Development (Group) Ltd.any)

Abbr. (if any) SZPRD

Legal representative Liu Shengxiang

II Contact Information

Board Secretary Securities Representative

Name Zhang Gejian Ding Minghua and Chen Qianying

39/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 and

email address 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 2020 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 newspapers designated by the Company for information disclosure the website designated by the CSRC for disclosing the

Company’s periodic reports and the place for keeping such reports did not change in the Reporting Period. The said information can

be found in the 2020Annual Report.IV Key Financial Information

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

H1 2021 H1 2020 Change (%)

Operating revenue (RMB) 2540865139.25 1421077767.83 78.80%

Net profit attributable to the listed

676375523.75 211967734.76 219.09%

company’s shareholders (RMB)

Net profit attributable to the listed

company’s shareholders before 669858491.21 210621623.38 218.04%

exceptional gains and losses (RMB)

Net cash generated from/used in

1137570780.73 -1623182138.90 170.08%

operating activities (RMB)

Basic earnings per share (RMB/share) 1.1349 0.3557 219.06%

Diluted earnings per share

1.1349 0.3557 219.06%

(RMB/share)

Weighted average return on equity (%) 16.98% 6.66% 10.32%

30 June 2021 31 December 2020 Change (%)

Total assets (RMB) 13283680708.37 12207356912.54 8.82%

Equity attributable to the listed

4159122838.45 3727917440.03 11.57%

company’s shareholders (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.VI Exceptional Gains and Losses

√ Applicable □ Not applicable

Unit: RMB

Item Amount Note

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

-14448.90

impairment allowance write-offs)

Government grants through profit or loss (exclusive of

government grants given in the Company’s ordinary course of

226082.01

business at fixed quotas or amounts as per the government’s

uniform standards)

Gain or loss on contingencies that do not arise in the

-114571.79 Lawsuit-related compensation

Company’s ordinary course of business

Demolition compensation

Non-operating income and expense other than the above 8061224.33

received

Less: Income tax effects 1836539.53

Non-controlling interests effects (net of tax) -195286.42

Total 6517032.54 --

Explanation of why the Company reclassifies as recurrent an exceptional gain/loss item defined or 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.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. 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 steadily advanced the existing 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 the second property management

enterprise established in China and the 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 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".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 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. 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 will gradually shift the focus of industrial ecosystem operation to sci-tech

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

services and park operation services and serve 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 state heads 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 Development Progress

1. Real estate industry

In the first half of 2021 the development trend of macroeconomic operation was generally stable and steady. The main

macroeconomic indicators remained in a reasonable range. The structural reform on the supply side continued to advance. Reform

and opening up continued to deepen. People's living standards and quality continued to improve and the positive factors to promote

high-quality development increased. Real estate regulation and control remain tight and in 2021 the central government has

repeatedly emphasized in important meetings to adhere to the positioning that "houses are for living in not for speculating on" and to

clarify the "three stabilities" goals. In terms of stabilizing expectations the "three red lines" policy for real estate enterprises and the

"two concentrations" policy for banks were introduced to prevent the disorderly expansion of real estate enterprises from the capital

level and the regulatory authorities cracked down on irregularities of business loans and consumer loans into the property market. In

terms of stabilizing housing prices local governments introduced "ceiling price" and "purchase limits". In terms of stabilizing land

prices a centralized land supply policy was introduced to directly control the premium rate of land prices from the land level so as to

further stabilize housing price levels. In the context of financial policies maintaining prudence continued fermentation of risk events

and concentrated land sales the overall financing ability of real estate enterprises continues to be inhibited and the land market is

expected to cool down marginally while real estate enterprises with soundness and strong capital advantages are expected to usher in

a window of land acquisition.From the regional market in the first half of 2021 the real estate market in Shenzhen continued to maintain the development trend of

increased regulation and enhanced supervision. 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 new subscriptions in

Shenzhen are subject to the points sorting policy. The source of funds for a down payment is strictly investigated to crack down on

crowdfunding holding (house purchase) and other acts to prevent business loans mortgage loans and other funds 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.Despite the continued tightening of the policy the fundamentals still show strong resilience from the industry data. The sales area of

commercial properties in the first half of 2021 was 886.35 million square meters and up 27.7% year-on-year; up 17.0% from January

to June 2019 and sales of commercial properties were RMB9293.1 billion up 38.9% year-on-year and up 31.4% from January to

June 2019.In the face of changes in industry policies and development trends mainstream real estate enterprises are gradually making efforts in

diversified business layouts. According to the statistics of CRIC mainstream real estate enterprises are currently involved in

non-residential development and sales among which property management commercial property long-term rental and logistics real

estate have formed a more stable industry pattern in addition sub-sectors such as service for the aged education and construction are

developing rapidly. 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 characteristics of both development operation and

service.2. Property management industry

In recent years the property management industry has entered a period of rapid development driven by continued urbanization

consumer upgrading and encouraging policies overlaid with technological empowerment and capital dividends. With the increasing

social status of the property management industry in the first half of 2021 the relevant state departments issued a number of policy

documents one after another to continuously promote the development of the industry. At the beginning of the year after the Ministry

of Housing and Urban-Rural Development issued the Notice on Strengthening and Improving Residential Property Management with

ten ministries and departments local governments in various provinces and cities have successively issued new policies on property

management to implement the policy guidance of the central government in the details and a consensus has been reached from the

central to the local level to support and encourage the development of the property management industry. On May 28 2021 the

Ministry of Commerce and other 12 departments issued the Opinions on Promoting the Building of Urban One-Quarter Convenient

Living Circle also clearly proposed to encourage property management enterprises to develop business in the field of the services for

the aged child care housekeeping postal express to promote "property services + life services". It also proposed to give preferential

policies in finance taxes and fees creating unprecedented favorable conditions for the rapid growth and standardized development of

the property management industry.Expanding scale and boundaries are still the main theme of the development of the property management industry. In the first half of

2021 M&A in the property management industry occurred frequently and the industry integration was accelerated. According to the

statistics of China Index Academy in the first half of the year M&A events in the property management industry exceeded 40. The

total amount of mergers and acquisitions has been nearly RMB13.3 billion exceeding RMB10 billion in 2020. In the medium and

long term mergers and acquisitions will vigorously promote the further increase of industry concentration and property management

companies with developer backgrounds have more advantages in this regard. The property management enterprise listing boom

continues with four more property management enterprises entering the capital market in the first half of the year. As at June 30

2021 a total of 46 property management enterprises were listed including 42 on the Main Board of Hong Kong and four on the

A-share with a total market capitalization of over RMB1 trillion. Improving the level of intelligence and building smart communities

is still one of the important directions for enterprise development. In the first half of the year major property management companies

launched and upgraded their new intelligent property management systems to implement integrated property management and

provide services such as property notification warranty visitor notification and life payment in a more convenient way. Some

enterprises actively cooperated with Internet companies to explore the application of smart technology in property service scenarios

and improve value-added services.(III) Operating Performance of the Company in the Reporting Period

2021 is the opening year of the comprehensive implementation of the 14th Five-Year Plan. The Company closely focused on the

implementation of the key work plans formulated at the beginning of the year based on "long-term goals medium-term expectations

short-term results" to promote the overall efficiency of long-term sustainable development. 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

RMB2.541 billion up 78.80% year-on-year; a gross profit of RMB863 million up 222.86% year-on-year; and a net profit

attributable to the Company as the parent of RMB676 million up 219.09% year-on-year. The cash to short term debt ratio net

obligation ratio and asset-liability ratio excluding pre-receipts did not exceed the red line and all other indicators such as expenses

and total compensation were under effective control.First the performance of the industry-city space development segment was outstanding and the project construction was

actively promoted. In the first half of the year the real estate business achieved operating revenue of RMB1.897 billion accounting

for 74.66% of total revenue and a significant increase of 120.82% year-on-year. The gross profit margin reached 86.49% an increase

of about 4 percentage points over the same period of the previous year. During the Reporting Period the real estate business of the

Company continued to strengthen the synergy of nodal targets and resource guarantee to achieve a comprehensive speedy turnaround

of projects under construction and fully coordinated the annual sales of the Golden Collar Holiday project grasping the rhythm of

market entry. The final sales of Building B and C were successfully liquidated and the sales of Building A were opened on May 14 at

the node of stable control of the pandemic achieving good results and providing strong support for the growth of revenue and profit.In addition the Fuhui Huayuan project the Banshan Yujing Phase II project the Guanlan Bangling project and the Fuyuan Industry

Park urban renewal project are all progressing in an orderly manner. Among them the Guanlan Bangling project as the first

industrial-city complex project of the Company in a market-oriented way in the Guanlan area of Longhua District was included in

the first batch of key industrial and major livelihood projects in Longhua District in 2021 with a planned total investment of over

RMB8 billion and a total construction area of about 620000 square meters. The project will introduce digital manufacturing digital

culture and education digital health financial services and other intelligent technology industries and build a large industry-city

complex integrating industrial office residential and commercial services which will help the Group's transformation and leapfrog

development.Second the property management segment grew steadily and continued to accelerate market expansion. In the first half of the

year the property management business achieved operating revenue of RMB542 million accounting for 21.32% of the total revenue

and representing an increase of approximately 10.44% year-on-year and remained the Group's second-largest revenue source. The

gross profit margin was 16.66% representing an increase of approximately 2 percentage points over the same period of the previous

year. The property management segment expanded 16 projects in the first half of the year including Jinan Citizen Service Center

Shenzhen Bay (Baoding) Innovation Center Yangzhou Shugang Tangzicheng Scenic Area and Luohu Administration Bureau of

Shenzhen Municipal Transportation Bureau expanding an area of about 1.1 million square meters. As at the end of the half-year the

total area under management was about 23.56 million square meters with 196 projects under management of which the area of

industrial parks was about 8.27 million square meters with 46 projects under management. In the field of high-end value-added

services the Company acquired part of the equity interest of the high-end value-added service provider FMC and jointly cooperated

to actively explore value-added services such as small-scale property management and customized business services for park-type

enterprises and accelerated the launch of the construction of a nationwide whole-scene multi-model control platform which became

an important driver for the transformation and development of the informationization digitalization and intelligence of the property

management segment.Third the industrial ecological operation and other segments improved quality and efficiency and cultivated core operational

capabilities. In the first half of the year the lease operation business achieved operating revenue of RMB102 million an increase of

42.90% year-on-year mainly due to the implementation of the rent-free policy in the same period of the previous year. In recent years

the Company has taken multiple measures to accelerate the transformation and upgrading exploring measures such as establishing an

incremental sharing mechanism and increasing project expansion cultivating core operational capabilities in multiple paths

promoting the transformation of the current leasing business to a commercial operation mode and helping to realize the development

and growth of the industrial ecological operation segment. In the first half of the year the Company signed an agreement with the

Shenzhen Investment Holdings Co. Ltd. to trust 97 properties with about 82000 m2 of assets which is expected to increase the

annual income by about RMB7 million and at this stage the Company can lease an area of about 430000 m2 and adhere to the core

of improving quality and efficiency and accelerate the transformation and upgrading of assets revitalization and utilization and

disposal of inefficient assets. In terms of industrial investment the Company has done a lot of work from scratch contacted more

than 20 cooperation units over the past six months laid out in advance the investment work of industries such as Guanlan Bangling

formulated the Industrial Investment Operation Strategy White Paper and so on and the industrial investment system has taken

initial shape. The supervision work of the finishing works of Building A of Golden Collar Holiday Phase II of Fuchang and Guanlan

Bangling Project was carried out in an orderly manner and the work was carried out in strict accordance with the supervision work

specification process and the relevant requirements of the Company's internal control to ensure the successful completion of the

supervision work of the existing projects.(IV) Progress of key construction in progress

The Company is subject to the Guideline No. 3 of the Shenzhen Stock Exchange on Information Disclosure by Industry—for Listed

Companies Engaging in Real Estate.1. New additions to the land bank

There were no new additions to the land bank in the current period.2. Cumulative land bank

Floor area available for

Name of project/area Site area（0000 ㎡） Floor area（0000 ㎡）

development（0000 ㎡）

Yupinluanshan Garden

2.19 7.89 7.89

project

Baolu project 3.24 8.16 8.16

Land in Danshui Huiyang

1.77 6.20 6.20

District Huizhou City

Land in Hongqi Town

15.8 - -

Haikou City

Total 23 22.25 22.25

3. Development status of major projects

Cit Name of The Time % % that has Site Planned Floor Cumulati Estimated Cumulati

Location Usage

y/re project Comp for dev completed area floor area ve floor total ve

gio any’s comme elo constructio （㎡） area that area that investment investmen

n interes ncemen ped n with plot comp has (RMB’00 t

t t of ratio leted complete 00) (RMB’00

constru （㎡） const d 00)

ction ructio construct

n in ion（㎡）

the

Curre

Perio

（㎡）

Golden

She Collar’s Fine

Futian Resident 2014.0 100

nzh Resort 100% decoration of 12598 133800 0 183295 145190 117310

District ial 3 % Tower A

en apartmen underway

der 16-storey

She Afforda

Fuhui Futian 2018.1 con structures in

nzh ble 100% Section 1 and 4274 33430 0 0 80109 62813

Huayuan District 2 stru

en housing Section 2

ctio completed

Un External

comprehensiv

der

Xu e pipe

Banshan con network

zho Tongsha

Yujing Resident 2019.0 stru landscaping

u n 100%

ctio etc. in final

31537 22795 0 0 23581 18843

(Phase ial 3

Cit District stage going

II) n through check

and

acceptance

formalities

She Guanlan Longhua Resident Un

nzh Bangling District ial der

en commer con

cial 2020.1 stru 90.77%

69% completed for 68300 433640 0 0 694150 361865

apartme 0 ctio demolition

nts and n

industria

4. Sales status of major projects

City Name Location Usage The Floor area Floor area Cumulati Floor Pre-sale/sal Cumulativ Floor area Pre-sale/

/reg of Com with plot available ve area es revenue e settled settled in sales

ion projec pany ratio for sale pre-sold/s pre-sold/s generate in floor area the revenue

t ’s （㎡）（㎡） old floor old in the the Current (㎡) Current settled

inter area Current Period Period in the

est （㎡） Period (RMB’000 （㎡） Current

（㎡） 0) Period

(RMB’0

000)

Intersecti

Reside

Golde on of

ntial

n Futian

studio

She Collar South

apartm 100

nzh ’s Road and 133800.6 125231.07 95239.04 26915.60 241773.79 85793.79 21506.72 194158

ents %

en Resort Binhe

and

apart Road in

comm

ments Futian

ercial

District

Don Songh Reside

ggu u Dalang ntial 100 147134.0

140911 140911 0 0 145443 0 0

an Langy Town comm % 5

City uan ercial

Intersecti

on of

SZPR Yueliang

D-Qia wan

She nhai Boulevar

Reside 100

nzh Gang d and 64625.13 63448.26 63448.26 0 0 63336.29 0 0

ntial %

en wan Xinghai

Garde Boulevar

n d in

Nanshan

District

Reside

ntial

units

Intersecti

shops

Yan Hupan on of

apartm

gzh Yujing Shouxihu 100

ents 36141.28 48870.98 42718.16 368.9 139.8 42484.43 268.58 92.02

ou Phase Road and %

parkin

City I Hangou

Road

garage

s and

lots

Reside

ntial

units

Intersecti

shops

Yan Hupan on of

apartm

gzh Yujing Shouxihu 100

ents 56935.75 73121.96 69214.05 1690.68 2442.36 64927.94 750.05 940.44

ou Phase Road and %

parkin

City II Hangou

Road

garage

s and

lots6

Huashan

Bansh Road

Xuz an Tongshan100

hou Yujing District Villa 54589.12 85652.81 85652.81 0 0 85652.81 0 0

City (Phase Xuzhou

I) City

Jiangsu

Province6

Huashan Reside

Bansh Road ntial

Xuz an Tongshan (elevat100

hou Yujing District or 22794.76 21720.72 21720.72 0 0 0 0 0

City (Phase Xuzhou houses

II) City of 4-7

Jiangsu floors)

Province

5. Rental status of major projects

The

Cumulative Average

Company’s Rentable area

Name of project Location Usage rented area occupancy

working （㎡）

（㎡） rate

interest

Xi Apartments Apartments for

Shenzhen 100.00% 3967 3967 100.00%

(Longyuan) long-term rental

Xi Apartments Apartments for

Shenzhen 100.00% 1609 1609 100.00%

(Longhua) long-term rental

Apartments for

Xi Apartments (Xinhu) Shenzhen 100.00% 1600 1600 100.00%

long-term rental

Food Court in the

Shenzhen Commercial 100.00% 4049 2468.4 60.96%

International Trade

Center

Commercial

Fumin Complex Shenzhen 100.00% 6450 4688.5 72.69%

apartments

Tower A of Wenjindu

Shenzhen Office building 75.00% 5884 5703 97.00%

Port Building

Commercial

Haiwai Lianyi Building Shenzhen 75.00% 9788 9314 95.16%

units and offices

Anhua Building Shenzhen Offices 75.00% 1414 1414 100.00%

Residential

Training

Shenzhen units/offices/co 75.00% 4244 4244 100.00%

Building/Dormitory

mmercial units

Pengfu Building Shenzhen Offices 75.00% 6494 6494 100.00%

Shenzhen

Jinfu Building Commercial 75.00% 1702 1702 100.00%

Shenzhen

Jinfu Building Commercial 100.00% 568 568 100.00%

Shenzhen

Residential/com

Fuxing Garden Shenzhen 75.00% 5877 5877 100.00%

mercial

Fuxing Garden Shenzhen Commercial 100.00% 1417 1417 100.00%

Plant area in Tangxia Dongguan

Plant 75.00% 22034 22034 100.00%

Town Dongguan City City

Pacific Business Commercial

Shenzhen 75.00% 3199 3199 100.00%

Building units/offices

Pacific Business Commercial

Shenzhen 15.00% 14889 14718 99.00%

Building units/offices

Commercial

Kangti Building Shenzhen 75.00% 2096 2096 100.00%

units/offices

Commercial

Kangti Building Shenzhen 15.00% 1147 1147 100.00%

units/offices

Commercial and

Lyuhua Building Shenzhen 75.00% 6960 6585 95.00%

residential

Shops on the ground

floor of Tower 48 in Shenzhen Shops 75.00% 1000 1000 100.00%

Lianhua North Village

Apartments and

Haonianhua Building Shenzhen commercial 100.00% 1803 1803 100.00%

units

Haonianhua Building Shenzhen Apartments and 75.00% 2278 2278 100.00%

commercial

units

Hostel 2 at Yuxin School Shenzhen Hostel 75.00% 3000 3000 100.00%

Kaifeng Garden in

Shenzhen Residential 100.00% 1307 878.06 67.18%

Shangmeilin

Fuyuan Industrial Zone Shenzhen Plant area 75.00% 47130 47130 100.00%

Tonglu Industrial Zone Shenzhen Plant area 100.00% 76886 74954 97.49%

Commercial/offi

Gonglu Building Shenzhen 75.00% 317 317 100.00%

ces

Gonglu Building Shenzhen Offices 100.00% 89 89 100.00%

Jiangling Industrial Zone Shenzhen Plant area 75.00% 10397 10397 100.00%

Commercial/offi

Zone 21 Shenzhen 75.00% 9514 9213.70 96.84%

ces

Baoli Community Shenzhen Residential 75.00% 9020 8913.07 99.00%

Songgang Plant Shenzhen Plant area 75.00% 5700 5700 100.00%

Longbu Plant Shenzhen Plant area 75.00% 7471 7471 100.00%

Gonglu Building in

Shenzhen Offices 75.00% 4600 4553.6 99.00%

Huanggang

Yuetong Complex Shenzhen Offices 75.00% 3044 3044 100.00%

Department Store Plaza Shenzhen Offices 33.00% 13515 13515 100.00%

Southern Securities

Shenzhen Offices 33.00% 8809.8 2847.96 32.33%

Building

Building 409 Sangda

Shenzhen Plant area 33.00% 3309.2 3309.2 100.00%

Industrial Zone

Mianshui Studio

Shenzhen Apartment 33.00% 3440.12 3440.12 100.00%

Apartment

Xiangfu Building Shenzhen Commercial 33.00% 3104.9 3104.9 100.00%

6. Primary land development

□Applicable √ Not applicable

7. Financing channels

Financing cost Maturity structure

Ending balance of

Financing channel range/average

financings Within 1

financing cost 1-2 years 2-3 years Over 3 yearsyear

Bank loans 3618700000.00 4%-6% 3000000.00 3615700000.00

Total 3618700000.00 4%-6% 3000000.00 3615700000.00

8. Development strategy and operating plan for the coming year

Efforts will be put on "expansion acceleration transformation empowerment and effectiveness". In terms of land reserve the

Company will expand its capacity through market competition and capital operation continue to focus on areas with economic

development potentials such as the Guangdong-Hong Kong-Macao Greater Bay Area and the Yangtze River Delta and actively

facilitate the implementation of projects as soon as possible through market-based bid invitation auction and listing industrial land

application project cooperation and other means. In terms of development the Company will promote the construction of key

projects continue to strengthen the overall control of project goals nodal targets progress schedules and investment plans

strengthen the synergy of nodal targets and resource guarantees and achieve a speedy turnaround of projects under construction. In

terms of sales the company will focus on the sales target of Building A of the Golden Collar Holiday project and launch various

marketing organizations while vigorously promoting the liquidation of Yangzhou Hupan Yujing project. As for the property

management business the Company will vigorously expand the acquisition of new property management projects and independent

expansion and promote the acquisition of high-end value-added services or new industries.9. 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 2021 security deposits for such outstanding guarantees amounted to RMB196.67 million

which will be returned upon the expiry of the guarantees i.e. when the relevant homebuyers paid off their bank mortgages. On the

ground that there have been no default by the homebuyers so far and that the market prices of the relevant properties are currently

higher than the trading prices the Company believes the risk associated with such guarantees is low.10. 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

Amount Compatibility

of of actual

% of As % of the

Name of Type of investme Cumulati Disinvest investment

investment peak of the

project investment entity nt ve income ment amount and

amount project funds

(RMB’0 distributed

000) income

Mandatory

Urban investment entities

Renewal of (including 2647.00 66.18% N/A 0 None N/A

Bangling directors and

Section at senior

Guanlan management)

Street Voluntary

1353.00 33.82% N/A 0 None N/A

investment entities

Note: 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

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. The property management segment with 90% projects outside the province and 90% market-oriented expansion

demonstrates the strong competitiveness of the Company's property management business in the national 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: From the earliest urban complex of Shenzhen International Trade Center Building Luohu

Commercial City 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.III Core Business Analysis

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

Unit: RMB

H1 2021 H1 2020 Change (%) Main reason for change

Operating revenue Increase in revenue

2540865139.25 1421077767.83 78.80% carryforwards in the property

development business

Cost of sales 754285026.24 611694943.80 23.31%

Selling expense 10417216.57 11544060.19 -9.76%

Administrative

104914523.61 88433004.35 18.64%

expense

Decrease in expensed interest

Finance costs 1119878.49 53446318.38 -97.90%

expenditures

Income tax expense 194243514.06 89394015.71 117.29% Increase in taxable income

The current period saw an

Net cash generated increase in cash inflows while

from/used in operating 1137570780.73 -1623182138.90 170.08% a large amount of taxes and

activities levies was paid in the same

period of last year

Net cash generated The current period saw no

from/used in investing -12868420.27 -482080259.37 97.33% expenditure on equity

activities acquisition

Net cash generated -338997821.33 1874915831.86 -118.08% There were no new bank

from/used in financing loans in the current period

activities

Net increase in cash

785134732.14 -229275462.50 444.04%

and cash equivalents

Increase in land value-added

Taxes and levies 813982050.89 394743480.61 106.21%

tax

Increase in net profit of joint

Return on investment 3218483.17 157061.79 1949.18%

venture

Increase in compensation

Non-operating income 9872472.19 4244175.90 132.61% received for building

demolition

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 2021 H1 2020

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

Operating revenue operating revenue Operating revenue operating revenue

(%) (%)

Total 2540865139.25 100% 1421077767.83 100% 78.80%

By operating division

Property

1897026889.73 74.66% 859089927.67 60.45% 120.82%

development

Property rental and

102026517.70 4.02% 71395976.18 5.02% 42.90%

operation

Property

541811731.82 21.32% 490591863.98 34.52% 10.44%

management

By product category

Property

1897026889.73 74.66% 859089927.67 60.45% 120.82%

development

Property rental and

102026517.70 4.02% 71395976.18 5.02% 42.90%

operation

Property

541811731.82 21.32% 490591863.98 34.52% 10.44%

management

By operating segment

Shenzhen 2327869659.69 91.62% 1210034426.64 85.15% 92.38%

Other 212995479.56 8.38% 211043341.19 14.85% 0.92%

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

√ Applicable □ Not applicable

Unit: RMB

YoY change in YoY change in YoY change in

Gross profit

Operating revenue Cost of sales operating cost of sales gross profit

margin

revenue (%) (%) margin (%)

By operating division

Property

1897026889.73 256248450.98 86.49% 120.82% 71.02% 3.94%

development

Property

541811731.82 451542753.54 16.66% 10.44% 7.94% 1.93%

management

By product category

Property

1897026889.73 256248450.98 86.49% 120.82% 71.02% 3.94%

development

Property

541811731.82 451542753.54 16.66% 10.44% 7.94% 1.93%

management

By operating segment

Shenzhen 2327869659.69 572845462.96 75.39% 92.38% 36.31% 10.12%

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

□ Applicable √ Not applicable

Any over 30% YoYmovements in the data above and why:

√ Applicable □ Not applicable

Revenue carryforwards from the project of Golden Collar’s Resort in Shenzhen amounted to RMB1.849 billion resulting in a

consideration increase in operating revenue and gross profit in the current period.IV Analysis of Non-Core Businesses

√ Applicable □ Not applicable

Unit: RMB

Amount As % of total profit Source/Reason Exceptional or recurrent

Return on Return on investment in joint

3218483.17 0.37% Recurrent

investment ventures

Gain/loss on

0.00%

changes in fair value

Reversal of inventory valuation

Asset impairments -33715.66 0.00% Recurrent

allowances

Non-operating 9872472.19 1.14% Compensation received for Exceptional

income building demolition

Non-operating Fines compensation for early

1940268.55 0.22% Exceptional

expense termination of lease contract

V Analysis of Assets and Liabilities

1. Significant Changes in Asset Composition

Unit: RMB

30 June 2020 31 December 2020

Change in

As % of As % of Reason for any significantpercentag

Amount total Amount total changee (%)

assets assets

Monetary assets 4971044275.19 37.42% 4206266629.32 34.46% 2.96% Increase in sales recognized

Accounts Increase in property

259902999.98 1.96% 187697631.47 1.54% 0.42%

receivable management fees receivable

Contract assets 0.00%

Recognition of cost of the

Golden Collar project and

Inventories 5289628100.91 39.82% 5312489258.20 43.52% -3.70% increase in capitalized expense

of the Bangling and other

projects

Investment

467004332.18 3.52% 484738506.83 3.97% -0.45% Depreciation allowances

property

Long-term

equity 48928703.96 0.37% 45710220.79 0.37% 0.00%

investments

Fixed assets 108878082.57 0.82% 116233936.04 0.95% -0.13% Depreciation allowances

Construction in

0.00%

progress

Right-of-use Adoption of the new accounting

12757538.12 0.10% 0.10%

assets standard governing leases

Short-term

0.00%

borrowings

New sales revenue and revenue

Contract

853367394.63 6.42% 666893629.72 5.46% 0.96% carryforwards of the property

liabilities

development business

Long-term

3556900000.00 26.78% 3587800000.00 29.39% -2.61%

borrowings

Adoption of the new accounting

Lease liabilities 13025535.53 0.10% 0.10%

standard governing leases

Other Increase in security deposits

803760748.21 6.05% 789050350.51 6.46% -0.41%

receivables paid

Deferred

Increase in deductible losses in

income tax 1176247431.17 8.85% 950681245.50 7.79% 1.06%

the taxation term

assets

Accounts Decrease in accounts payable

365584409.13 2.75% 468269685.65 3.84% -1.09%

payable for engineering

Other

non-current 107705623.13 0.81% 108778327.45 0.89% -0.08%

liabilities

2. Major Assets Overseas

□Applicable √ Not applicable

3. Assets and Liabilities at Fair Value

√ Applicable □ Not applicable

Unit: RMB

Gain/loss

Impairmen

on Cumulative Sold in

t Purchased

fair-value fair-value the

Beginning allowance in the Other Ending

Item changes changes Reporti

amount for the Reporting changes amount

in the charged to ng

Reporting Period

Reporting equity Period

Period

Financial

assets

4.Investments

in other 1044905.12 -265258.45 -5942.67 773704.00

equity

instruments

Total of the

1044905.12 -265258.45 -5942.67 773704.00

above

Financial

0.00 0.00 0.00 0.00

liabilities

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

(1) In term of monetary assets with restricted right to use at the period-end there was limited capital of frozen account with

RMB11031.58 in the subsidiary company Shenzhen Huazhengpeng Property Management Co. Ltd.

(2) In term of monetary assets with restricted right to use at the period-end there was custody deposit account with RMB44554.35 in

the subsidiary company Catering Branch of Shandong Shenguomao Real Estate Management.

(3) In term of monetary assets with restricted right to use at the period-end there was RMB1148647.30 which is the Company as a

real estate developer and historically provided mortgage guarantees and paid loan guarantees for commercial housing purchasers in

accordance with real estate business practices.

(4) In term of monetary assets with restricted right to use at the period-end there was payment guarantee with RMB11213310.06

(principal of RMB11075002.60 and interest of RMB138307.46) in the subsidiary company Xuzhou Company which signed the No.Xingyin Xubao (2020) 25 payment guarantee with Jiangsu Hanjian Group on 1 June 2020.

(5) In term of monetary assets with restricted right to use at the period-end there was RMB4948119.51 which is the interest of fixed

deposits accrued at the end of the period.

(6) In term of monetary assets with restricted right to use at the period-end there was an guarantee letter of RMB400000.00 issued

by the subsidiary company Supervision Company for the second phase project supervision and service project of Bangling District

Guanlan Street Longhua District of Rongyao Real Estate in 2020.

(7) The Company applied for a loan from Shenzhen Branch of Bank of Communication Co. Ltd. with the land use right of Fumin

New Village Futian District as the pledge due to the needs of its daily business activities. The period of the loan is from 27

November 2020 to 27 November 2023. The interest of the loan is a floating interest rate and the first execution interest rate is

4.655%.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 Accu

Initial Acco on mulat Purch

Variet Code Name unting Begin fair ed Sold Gain/l

Sourc

invest measu ning value fair

ased in oss in Endin Acco e of

y of of of

remen carryi chang value

Repor Repor Repor

carryi unting invest

securi securi securit ment t ng es in chang ting ting ting ng

ty ty y cost metho value Repor

es Perio Perio Perio value title ment

d ting charg d d ded to fundsPerio

d equity

Obtai

Invest

ned in

ments

Dome 40001 Gintia Fair Gintia

3565 1044 -265 in

stic/F 6、 n A value -5942 7737 n’s856.0 905.1 258.4 0.00 0.00 other

oreign 42001 Gintia metho .67 04.00 debt

6 2 5 equity

stock 6 n B d restru

instru

cturin

ments

3565 1044 -265

-5942 7737

Total 856.0 -- 905.1 258.4 0.00 0.00 0.00 -- --.67 04.00

6 2 5

Disclosure date of

announcement on

Board’s consent for

securities investment

Disclosure date of

announcement on

shareholders’ meeting’s

consent for securities

investment (if any)

(2) Investments in Derivative Financial Instruments

□Applicable √ Not applicable

No such cases in the Reporting Period.VII Sale of Major Assets and Equity Interests

1. Sale of Major Assets

□Applicable √ Not applicable

No such cases in the Reporting Period.2. Sale of Major Equity Interests

□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

Relationship Principal Registered Total Operating Operatin

Name with the activity Net assets Net profitcapital assets revenue g profit

Company

Shenzhen

Developm

Huangchen

ent and 30000000 6129008 2194875 1859058 801842 602866601.g Real Subsidiary

sales of .00 423.19 336.52 422.14 606.64 68

Estate Co.real estate

Ltd.Subsidiaries obtained or disposed in the Reporting Period

√ Applicable □ Not applicable

How subsidiary was obtained or Effects on overall operations and

Subsidiary

disposed in the Reporting Period operating performance

Xiamen Shenguomao Industrial City Revenue: 0

Newly established

Smart Service Co. Ltd. Profit: 0

Vietnam Shenguomao Property Revenue: RMB3.45 million

Newly established

Management Co. Ltd. Net profit: RMB1.58 million

Shenzhen SZPRD Yanzihu Development Revenue: 0

Newly established

Co. Ltd. Net profit: RMB-487.3 thousand

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

Although the spread of the pandemic in the country has been effectively controlled there are still some new confirmed cases in some

cities recently bringing uncertainty to the overall industry operation. In the context of "houses are for living in not for speculating

on" the real estate market has been affected by a series of control policies such as the increase of down payment ratio the

government's strict investigation of illegal inflow of funds into the property market such as consumer loans and business loans and

the increase of mortgage interest rates which have a certain impact on the market situation. Real estate industry policies are expected

to remain tight in the second half of the year.Countermeasures: In the face of the severe situation the Company deeply studied the opportunities and challenges brought by

macroeconomic trends and policy trends actively sought the direction of strategic breakthrough and sought to expanding the main

business and making breakthroughs in accordance with the "12345" overall development idea of "1 Vision + 2 Major Sectors + 3

Driving Factors + 4 Businesses + 5 Value-added Services" and strived to enhance sustainable development capacity.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. As the price of each single plot increases year after year 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.Countermeasures: In the face of challenges the Company will continue to expand its capacity through market competition capital

operation and urban renewal grasp the investment opportunities and marketing model under the "two concentrations" actively

increase the expansion of land reserves and promote the implementation of projects as soon as possible.3. Financing Risk

As the central government tightened financial supervision over real estate and implemented the “three red lines” in the second half of

2020 financing of real estate enterprises are further restricted. In the process of actively increasing land reserves and accelerating the

business development 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.Countermeasures: First based on the advantages of a lower cost of construction of security housing stable demand lower proportion

of own funds and less capital pressure the Company can expand the resources of housing construction through multiple channels

thus avoiding the pressure of real estate regulation to a certain extent. Second after the introduction of the "two red lines" for housing

loans banks will tighten their development loans making it more difficult for real estate companies to raise funds and the mode of

joint land acquisition and cooperative development will help reduce own funds expenditure. Third the Company will continue to

improve the operational capacity of real estate companies speed up project turnover and quickly recover the fund.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 participation Convened date Disclosure date Resolution of the meeting

ratio

The Meeting considered

and approved the Report

on the Work of the Board

of Directors for 2020 the

Report on the Work of

the Supervisory

Committee for 2020 the

Annual Report 2020 the

Report on the Financial

Accounts for 2020 the

Report on the Financial

Budget for 2021 the

Proposal on the

Distribution of Profits

The 2020 and Capitalization of

Annual

Annual Capital Reserve for 2020

General 61.23% 21 April 2021 22April 2021

General the Proposal on the

Meeting

Meeting Comprehensive Credit

Line for 2021 the

Proposal to Use Part of

Own Funds to Purchase

Wealth Management

Products the Proposal to

Issue Commercial

Property Mortgage

Asset-Backed

Securitization Products

the Proposal to Expect

Daily Connected

Transactions for 2021

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 2020

with the number 2021-19

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

The directors supervisors and senior management of the Company remained the same during the Reporting Period. For their

information see the 2020Annual Report.III Interim Dividend Plan

□Applicable √ Not applicable

The Company has no interim dividend plan either in the form of cash or stock.IV Equity Incentive Plans Employee Stock Ownership Plans or Other Incentive Measures for

Employees

□Applicable √ Not applicable

No such cases in the Reporting Period.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

Remediation

company or production and

Penalty reason Violation situation Penalty result measures of the

subsidiary operation of the

Company

company listed companies

None None None None None None

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.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) Visiting the seriously ill employees in difficulty

In order to ensure that the Group's Party members in need and employees in need have a warm and peaceful Spring Festival on

January 29 the Party Committee of the Group carried out a symposium to extend regards to the employees in need before the Spring

Festival. Liu Shengxiang Secretary of the Party Committee of the Group and Chairman of the Group Wang Hangjun Deputy

Secretary of the Party Committee of the Group and General Manager of the Group Wei Xiaodong Deputy Secretary of the Party

Committee of the Group and Chairman of the Labor Union of the Group and other leaders brought gifts and money to

representatives of Party members and employees in need with a total amount of about RMB102000.At the symposium the leaders talked with the representatives of the employees in need learned their living conditions and practical

difficulties in detail listened to their opinions encouraged them to maintain an optimistic attitude face difficulties and life positively

and establish confidence to overcome difficulties.Liu Shengxiang Secretary of the Party Committee of the Group and Chairman of the Group introduced the achievements of the

Group in 2020 and the strategic plan of the 14th Five-Year Plan and affirmed the positive contribution made by all of them to the

development of the Group by performing their duties based on their positions and overcoming difficulties. He stressed that the Group

should actively build a harmonious enterprise in the process of development timely understand the living conditions of employees in

need map their practical difficulties and try their best to solve their problems so that they can effectively feel the warmth of the

enterprise family.(II) Conducting blood donation activities to celebrate the 100th anniversary of the founding of the Communist Party of China

On June 29 the 10th "Red Flag Red Action" blood donation activity was jointly organized by Shenzhen Blood Center the joint Party

branch of Guomaomei Life Service and Shenzhen International Trade Center Building and the Party Committee of Luohu Branch of

Bank of China Shenzhen Branch. Party members members of Chinese Communist Youth League volunteers and citizens responded

positively and enthusiastically participated in blood donation to celebrate the 100th anniversary of the founding of the Party.In accordance with the requirements of pandemic prevention and control the blood donation activity adopted the approach of blood

donation in different time slots to ensure the diversion of personnel. With the assistance of medical staff and volunteers blood donors

orderly carried out preparatory work such as registration and filling vaccination inquiry blood pressure measurement and blood

collection and testing. Among the blood donors were both long-time donors and first-time donors as well as those who had

participated in previous events and had driven dozens of kilometers to attend the activity. On the day of the activity there were 124

blood donors 108 of whom successfully donated a total of 39150 ml of blood.The Party Committee of Guomaomei Life Service insists on carrying out the Party building activities themed with "Red Flag Red

Action" every year to commemorate the birthday of the Party and let the Party members volunteer to play an exemplary role which

has received positive responses from the owners and tenants of Shenzhen International Trade Center Building the Renminnan

Commercial Area the Party organizations at all levels of the Jiabei Community workstation and people from all walks of life and

has become a Party building project with the characteristics of "the secretary takes charge of the project the branch creates its brand

and the Party members play the exemplary role". The activity has been held continuously for ten years and over 800 people have

participated in the blood donation over the years with the total amount of blood donated exceeding 300000 ml.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.VIII Legal Matters

Significant lawsuits and arbitrations:

□ Applicable √ Not applicable

No such cases in the Reporting Period.Other legal matters:

√ Applicable □ Not applicable

Basic Amount Lawsuit Execution of

Whether there Lawsuit

information on involved (arbitration) lawsuit Date of Disclosur

are accrued (arbitration)

lawsuit (RMB’000 results and (arbitration) disclosure e index

liabilities progress

(arbitration) 0) influences judgment

Feng Shuiping

and others sued

the Second

Construction

Co. Ltd. of

China

The second

Construction The Company

trial has No

Third is not liable for

815.4 No been implementatio

Engineering any

decided n required

Bureau and compensation

(final)

SZPRD for

environmental

pollution

liability dispute

(180 cases in

total)

The

arbitration

has been

Arbitration case heard and is

of property currently in

service contract the judicial

of subordinate audit stage

3230.1 No No ruling implementatio

High-tech Zone pending

n required

property additional

management evidentiary

行情